ICT Role in 21st Century Education & its Challenges.pptx
Dharmesh varmora ceramic report
1. A
PROJECT REPORT
ON
VARMORA
WALL TILES
Prepared By
Aghera Pranav R.
S. Y. B. B. A.
Roll No. 2
Academic Year = 2013-2014
College
Harivandana college Rajkot
Submitted To
Saurashtra University
Guided By
Mr. ram sir
1
2. DECLARATION
I, the undersigned Mr. Aghera Pranav R. student of
T.Y.B.B.A. hereby declare that the project work presented in
this report is my own work and has been carried out under the
supervision of Mr. ram sir of harivandana college Rajkot.
This work has not been submitted previously to any
other university for examination or any other purpose.
Date:
Place: Rajkot
-----------------------
(Aghera Pranav R..)
PREFACE
2
3. Today, in almost all fields, management has become an
integral part. We need to manage over daily routine. BBA, the
stream of management teaches us and helps us to apply it
practically.
In this project work, I have carried all the areas of
management like production, personnel, marketing and finance.
One needs to keep equally balanced all the departments to run
the entire company smoothly. I have thus tried to prepare this
project taking into consideration all the areas and aspects of the
company.
3
4. ACKNOWLEDGEMENT
First I would like to thank Harivandana college for providing
me an opportunity to flourish my knowledge apart from theory. I
would also thank Professor Mr.ram sir, who has constantly guided
me for the project.
I am thankful to “Varmora Industries” for granting me
permission to prepare a report on their firm and also for their
excellent guidance with complete interest. I am also thankful to
the owners, whole staff of this industry for their valued co-operation
and helped me to complete this project on the industrial
visit.
Date:
Place: Rajkot
-----------------------
(Aghera Pranav
4
5. INDEX
Sr.
No. PARTICULARS PAGE
NO.
1. GENERAL INFORMANTION 06
2. PRODUCTION DEPARTMENT 16
3. PERSONNEL DEPARTMENT 28
4. MARKETING DEPARTMENT 48
5. FINANCE DEPARTMENT 63
6. SWOT ANALYSIS 80
7. FUTURE PLANE 83
8. SUGGESTION 85
9. CONCLUSION 87
10. BIBLIOGRAPHY 89
5
7. Sr.
No. PARTICULARS PAGE
NO.
1. BIO-DATA OF COMPANY 08
2. HISTORY & DEVELOPMENT OF
ORG’Z
09
3. ORGANISATION CHART 11
4. SIZE OF THE FIRM 12
5. FORM OF ORGANIZATION 13
6. LOCATION AND SIZE
PREFERENCE
14
7. TIME KEEPING SYSTEM 15
BIO DATA OF COMPANY
Name of the Firm Varmora Granite Pvt. Ltd.
Year of Establishment 1994
Form of Organisation Private Limited
Size of Organisation Large Scale
7
8. Location of Office Priya Darshini Complex,
Office No. 415,
Savsar Plot,
Morbi – 363 641
Location of Factory Varmora Granite Pvt. Ltd.
8/A, National Highway,
Dhuva
Phone Number Office 02822 – 220213, 227171
Phone Number Factory 02822– 287745
Fax Number 02822 – 287826
E-Mail info@varmora.com
Web Site www.varmora.com
Registered Certificate No. U26914GJ2002 PPC 43194
Sales Tax No. 0922008001
CST No. 99984063
Excise Registration No. AABCV7523MXM001
Product WALL Tiles
No. of Employees 107
Bankers SBS Main Branch, Morbi
Auditors SBS Main Branch, Morbi
Name of Promoters Shri Vallabhbhai J Patel
Shri Jagjivanbhai G Patel
Shri Pramodbhai P Patel
Board of Directors Mr. V J Patel
Mr. T J Patel
Mr. P P Patel
Investment 15 Crores
Area Covered 17 Acres
Market National and International
HISTORY & DEVELOPMENT
OF ORGANISATION
8
9. The varmora group is a private limited company which
produces different kinds of things. Each and every unit has got
other industries of its town. It contained when the firm was
incorporated, who were the raise, what way its purpose, what are
the products manufactured by them, etc.
This group all promoters are mostly from the Village Sara,
which comes under the District Surendranagar. They
incorporated to cultivation and they have good business of cotton
and other products in Village Sara. It is established in 1984.
They started a unit of manufacturing of roofing tiles under name
and style M/s. Sunshine Tiles and potteries at Morbi. They have
secured mill from SBS Main Branch, Morbi.
In 1987, they have organised another roofing tiles unit at
Lilapur Road, Morbi under the name and style of M/s. Jaystar
Industries. The workers are very familiar to work in this industry.
In 1991, they have organised another unit of manufacture of
nuts and bolts of MS and SS at Vadhwan GIDC under the name
and style of varmora Fasteners.
In 1994, they have started the other products. They
manufacture of ceramic glazed wall tiles under the name and
style of M/s. Sunshine Ceramics. In 1998, they have also started
9
10. another industry, under the name and style of M/s. Jayson
Ceramics
Looking to the demand of ceramic floor tiles experience in
this line is most important and the group has more than 60
dealers network, which is necessary to business. So, they have
also started another industry, under the name and style of M/s.
varmora Ceramics Pvt. Ltd.
In 2002, they have also started another industry, under the
name and style of M/s. Varmora Granite Pvt. Ltd. This industry’s
product is to manufacture vitrified tiles only.
It is good for them that they don’t have to find another young
team because it is already well equipped with the family
members.
10
12. SIZE OF THE FIRM
According to the definition given by Government of India, the
size of the industry can be divided into three main types.
Small Scale Organisation
Medium Scale Organisation
Large Scale Organisation
If company’s investment in plant and machinery is more than
15 crores, it is called large scale organisation.
The investment of “Varmora Pvt. Ltd.” in fixed assets is of
Rs. 180,100,000. Therefore, it is coming under the category of
large scale organisation. It also uses manpower, electronic
machinery and having more than 1700 workers.
12
13. FORM OF ORGANISATION
According to the form of organisation, the organisation can be
divided as follows:
Private sector unit
Public sector unit
Joint sector unit
In this firm, it is a private limited firm.
13
14. LOCATION AND
SITE PREFERENCE
The site of this unit is located at 8/A – National Highway, at
Dhuva, which is only 18 Kms. away from Morbi City. It is in
ceramic zone with numbers of other ceramic units. It is a main
and most important part of industry has chosen very simple and
suitable location. It plays a vital role for location.
Land
In Dhuva at Morbi, land and labour are found very cheap, so
Varmora Wall tiles started at this place.
Labour
In big city labour cost is very high, but in Dhuva at Morbi
provide cheap and educated skilled labour because of the
ceramic zone is situated.
Transport
In Dhuva at Morbi is situated in ceramic zone, so
transportation facilities are also available.
14
15. TIME KEEPING SYSTEM
Time keeping system is very important as all the workers
should arrive at reporting time and start their work immediately.
If they are irregular than there would be less outcome and
expected target will not be achieved. Therefore, the workers are
given cards in which their arrival and departure time is written
regularly and therefore punctuality is maintained.
Industry
This industry is running for continuous process i.e. 24
hours. It is working in 3 shifts. They are:
08:00 AM to 04:00 PM
04:00 PM to 12:00 Midnight
12:00 Midnight to 08:00 AM
Office
Office hours for industry are as under.
08:00 AM to 12:00 Noon
02:00 PM to 06:00 PM
15
17. Sr.
No. PARTICULARS PAGE
NO.
1. INTRODUCTION 18
2. RAW MATERIAL AVAILABLE 19
3. RAW MATERIAL USED 20
4. INSPECTION OF RAW MATERIAL 21
5. TYPES OF MACHINES 22
6. PROCESS OF PRODUCTION 24
7. ABOUT PRODUCTS 26
8. QUALITY MANAGEMENT 27
17
18. INTRODUCTION
The production of a firm is concerned with the creation of a
product or services required to satisfy customer needs. In any
business, suppliers are needed for product or service, it is quite
obvious that activities of production system must be related to the
customer demand or reflected in the continuous flow of order.
It is the most important department amongst the other
departments of an organisation. Personnel department, finance
department, marketing department are very much depended on
production department.
18
19. RAW MATERIAL AVAILABILITY
Raw materials are the basic requirement for any industry.
Raw materials are converted into finished goods after various
processes on it.
Raw materials are available with help of roadways if
purchased from the country. If the materials are purchased from
other countries than it is available with help of railways.
19
20. RAW MATERIAL USED
List of raw materials used for production of Wall tiles
Raw Material Place where it is
obtained
Pots feldspar Rajasthan
Soda feldspar Rajasthan
Quartz Rajasthan
Ball Clay Rajasthan
Ashapura Clay Kutch
Kadappa Clay Andhra Pradesh
China Clay Gujarat
Ukraine Clay Import from Europe
STPP Import from China
Body Stain Import from Italy
Soluble Salts Import from China
LPG Madhya Pradesh
Gujarat
Zircon Import from Australia
20
21. INSPECTION
OF RAW MATERIAL
Raw materials are inspected and checked before they are
sent to production department. It is maintained in Varmora as per
guidelines of ISO-9002.
Flow chart for inspection of raw material can be showed as
follows.
Sampling from truck
MC% content
Grinding
Drying
Powder preparation
MC% addition
Pressing
Drying
Firing
Loss on ignition
Fired colour
Water absorption
21
22. TYPES OF MACHINES
90% of machineries used in Varmora Wall Tiles are imported from
Japan.
List of Machineries
Weighing hopper
Conveyor
Wader
Ball mill
Stirrer
Bungler
Spray drier
Slip pump
Silos
Vibrator with magnet
Elevator
Hydraulic press (h600 mt)
Chilling plant
Loading machine
Horizontal dryer cooler box
Glaze line
Unloading machine
Screen printing machine
22
23. Compensator
Head polishing line
Fast single layer roller kiln
Chamfering line
Souring line
Plastic strapping machine
Fork lift
Air compressor
Vertical drier
Generators
23
24. PROCESS OF PRODUCTION
Production process is very important process as the product
manufactured in the company should satisfy the need of the
customer. The quality is also to be maintained and the given
target should be achieved in the given time period. The following
are the main production stages.
Processing of raw material
The first and foremost step to manufacture Wall tiles is
batching i.e. feeding the box with different types of clay according
to the percentage decided. Batching includes following types of
clay.
Ukraine Clay 16%
Ball Clay 5%
China Clay 20%
Soda Feldspar 19%
Potash Feldspar 35%
Quartz 5%
Formation of tile body and drying
The powder is taken from the silos and after sieving on a
vibrator fitted with a magnet, it is fed into hoppers of the
hydraulic press where the powder is pressed in the shape of a tile
24
25. of specific size as per the cavity of the die. Green tiles coming
out of the press are sent to the horizontal roller dryer where they
are heated to a specified temperature to remove the moisture.
Preparation of designs and screen printing of tiles
In the glaze line and printing section, various types of
designs are prepared and printed on the dried tiles by applying
colours on the screen printing machine.
Firing
The tiles thereafter are fed into the fast single layer roller
kiln in which the tiles are fired. The kiln has different
temperatures ranging from 5000C to 15000C in different zones.
Polishing
The baked tiles are subjected to polishing by using 32 head
polishing line. The tiles are also side chamfered. Multi finish
tiles do not need polishing operation.
Sorting and packing
The polished tiles are subjected to quality checking and
sorting, where an operation marks out tiles with defects and
different grades quality. Different grades of finished tiles are
then packed into different types of packing box which are marked
accordingly.
25
26. ABOUT PRODUCTS
Varmora Wall Tiles are manufacturing vitrified tiles having
various categories and sizes. They manufacture tiles of different
plain colours like:
Terry cotton
Mushroom
Ruby pink
Jaisalmer
Dove gray
Ivory
Jet black
White
Aqua marina, etc.
In marble series, they are having following range.
Vogue
Venice
Valerie
Vixen
Volcano
Virgin
Vital
Allun
26
27. QUALITY MANAGEMENT
Quality control means checking the quality, size, shape,
capacity and usefulness of some of the samples selected from lot
of the finished product. If any variations are there than they are
to be corrected or that useless product is send to scrap yard. A
well defined quality management system satisfying ISO 9001-
2000 quality standard and continual improved.
27
31. Personnel management has a vital importance in modern
industrial organisation. Personnel department is the part of
management, which is primarily concerned with establishment and
maintenance of personnel relations.
In this company, there is a separate personnel department,
where all the decision regarding the personnel’s is taken by
personnel manager. He has the final authority. The personnel
manager of this firm is Shri Pramodkumar P. Patel.
31
32. ORGANISATION CHART
In Varmora Wall Tiles Pvt. Ltd., separate department for
personnel for the achievement of goals and the personnel manager
has authority and higher status in the organisation in his own
department.
32
33. RECRUITMENT
AND SELECTION
Recruitment
Every firm or company needs persons to perform different
works. In this shifting process only manpower have been
determined, recruitment is next logical step. It is a linking activity
bringing together those with job and those seeking job.
According to one author, “Recruitment is the process of
finding and attracting capable applicants for employment. The
process begins when new results are sought and ends when their
applications are submitted. The result is a pool of applicants
from which new employees are selected.”
Selection
Selection is a process of carefully choosing the candidates
who offer themselves for appointment. In selection many
processes applies on raw material but unit wants few persons.
This is one of the most important responsibilities. In selection,
the person who is having knowledge as well as experience is
selected.
33
34. According to one author, “It is the process of differentiating
between applicants in order to identify those with a greater
livelihood of success in a job.”
Here in case of Varmora Granito, the co-selection process
includes basic four main steps.
Preliminary searching interview
Checking of reference
Comprehensive interview
Final employment decision.
34
35. HUMAN
RESOURCE PLANNING
Human resource planning is understood as the process of
forecasting an organisation’s future demand for and supply of the
right type of people in the right number. It is only after this that
the human resource department can initiate a recruitment and
selection process. Human resource planning is a sub-system in
the total organisational planning. Organisational planning
includes management activities that set the company’s objectives
for the future and determine the appropriate means for achieving
those objectives. Human resource planning facilitates the
capitalisation of the company’s objectives by providing the right
type and right number of personnel. Human resource planning is
like material planning that estimate the type and annuity of the
materials and supplies needed to facilitate the manufacturing
activities of the organisation. Human resource planning is
variously called manpower planning or employment planning.
In case of this industry, human resource planning is done as per
the need.
35
36. PLACEMENT & INDUCTION
An applicant who has cleared all the hurdles in the selection
procedure is offered a job. The main problem after final selection
is to place him on some suitable job. The out of offering the job
to a finally selecting candidate is called placement. The selection
procedure comes with placement of workers on the job.
Induction is a technique by which a new employee is
rehabituated into the changed surrounding and introduced to the
practices, policies and purpose of the organisation. In other
words, induction means introducing or orienting a new employee
to the organisation and to follow up for his adjustment in the
organisation.
In this industry, when a new employee is selected, he is
kept under the supervision of his superior where he is trained.
The new employee is provided with the operational knowledge
that is specific to the position and location.
36
37. TRAINING OF EMPLOYEE
Training refers to the imparting of specific skills abilities
and knowledge to an employee.
It is any attempt to improve current or future employee’s
performance by increasing an employee’s ability to perform
through learning, usually by changing the employee’s attitude or
increasing his/her skills and knowledge. The need for training is
determined by the employee’s performance deficiency.
At present training of workers is necessary because many
jobs have assumed highly technological character and under
automation. We require highly skilled operatives. In Varmora
Granito, the workers who need training are kept under their
supervisors who give them training while training for staff
members or managerial level is given on the job.
37
38. PERFORMANCE
APPRAISAL SYSTEM
Performance appraisal is the assessment of an individual’s
performance in a systematic way. The performance being
measured against such factors as job knowledge, quality and
quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgement, versatility, health and
like assessment should not be confined to past performance
alone. Potentials of the employee for future performance must
also be assessed.
In Varmora Granito, the supervisor sees the employee’s
ability to do work properly and efficiently, whether he understand
his responsibility or not, how is his behaviour towards his
colleagues, etc.
38
39. WAGE & SALARY
ADMINISTRATION
Wage and Salary Administration refers to the establishment
and implementation of sound policies and practices of employee
compensation.
Wages are the economic compensation paid to the workers
for services derived by them. It can be divided into two types i.e.
piece wage and time wage. In Varmora, there is time wage
system and it is paid on monthly basis. There wages are
calculated as per monthly wage rate according to the minimum
wages act of government. Salaries are paid on monthly basis and
its amount is by the company according to working efficiency of
the employee.
39
40. TRADE UNION
Trade union means the union of the workers who are
permanent or temporary in the unit, where they are working.
In Varmora Granito, there is no special trade union. The
purpose to make these unions is maintaining the interest of
workers and management. These unions do not disturb without
any special problem and interfere in routine work. They always
try to maintain relations between employees and management
staff.
40
41. COLLECTIVE BARGAINING
Collective bargaining means the process in which conditions
of employment are determined by agreement between
representative of the union on one hand and those of the
employer on the other hand. It is called “collective” because both
the employer and employee act as a group rather than
individuals. It is described as “bargaining” because the method
of reaching an agreement involves proposals and counter
proposals, offers and counter offers. In the highly industrialized
democratic societies of the west, more than 90% of the disputes
are between labour and management which are settled through
collective bargaining process.
In Varmora Granito, management is having agreement with
the employees regarding wage, working conditions, promotion,
transfer and other facilities like medical facility, etc.
41
42. RECORD KEEPING SYSTEM
It is very much necessary for an organisation to keep the
reward of its workers and many other details related to it.
The reward contains personnel as well as on the job
efficiency information of an employers or workers. In Varmora
Granito, the supervisor sees the employee ability to do work
properly and effectively whether he understands his responsibility
or not, how is his behaviour towards his colleagues, etc.
42
43. EMPLOYEE BENEFITS
Now a day, most of the firms provide the provident fund
scheme or other facilities to their workers. It is important as it is
one kind of security of a worker.
Varmora Granite provides various monitory and non monitory
benefits and services like:
Bonus 10% extra bonus is paid to workers.
Allowances Various types of allowances are given to
workers. Varmora provides two wheeler facilities (Honda &
Splendor) and 100% expense of petrol.
Statutory Welfare Measures Under this, the company
provides first aid facility, cold water facility, company
distributes sweets and other eatables on the festivals like
Dashera, Diwali, etc.
Loan Facility Loan is provided to employees when in need.
They are not charging any type of interest on the loan. It is
repaid in installments.
43
44. PROVIDENT FUND SCHEME
Provident fund scheme is facility provided to every
employee may be at high post or low post. In this scheme, a
certain percent of employee’s salary is oriented by the firm and
on that 12% of interest is paid and employee adds very certain
fixed percent to it, the interest is paid on both employee and
employers amount.
This industry has adopted this scheme. They are putting
12% salary as Provident Fund, which is refundable after the
retirement of employee or when he is going abroad for permanent
settlement or when he is going for another job.
44
45. PROMOTION & TRANSFER
Promotion
The promotion means to do upliftment within the
organisation. At this stage employee’s wage and salary status,
prestige moves towards the top level. Their thinking is also
increasing up in his duties and responsibilities.
Transfer
The transfer is a process of planning the employees in the
position where they are likely to be more effective, or where they
are likely to get more job satisfaction or it is movement of an
employee from one job to another without involving any
substantial changes in his duties, responsibility, status, etc.
Therefore, transfer is exchange in job where new job is
substantially equal to old in terms of pay, status and
responsibilities.
This company is only 2 years old, so there is no such policy
and programs formulated for promotion as well as transfer.
45
46. GRIEVANCE
HANDLING SYSTEM
Grievance is any discount or dissatisfaction, whether
expressed or not, whether valid or not, arising out of anything
connected with the company, which an employee thinks or
believes or even feels to be unfair, unjust or inequitable.
In case of Varmora Granito, most of employees are satisfied
and management always tries to satisfy needs of employees as
quickly as possible. If any problem arises than related manager
will try to solve it.
46
47. INDUSTRIAL RELATION
Industrial relation refers to the relation of management with
the employees. This is one important factor, which affects the
success of any industry. The relation between management and
workers should be namely so as to run the industry smoothly.
Internal Relation
Varmora Granito Industry is concerned with the
management and workers share breathing relations. They are
united and consider their unit as a second family.
External Relation
External relation means the relation of unit members of
external society like other industries, government, customers, etc.
Varmora Granito has good external relations.
47
50. Market is the place where buying and selling is carried out
by buyers and sellers i.e. trading activity are carried out.
Marketing is a social and management process that involves
identifying unsatisfied needs or wants of the consumers,
producing goods or services to satisfy those needs or wants,
determining appropriate price, promotion and distributing and
maintaining relation with the market.
In today’s modern area each and every firm gives priority to
have a different marketing department. Marketing involves the
activities such as advertising, publishing, market research,
distribution aspect, sales promotion, etc.
50
52. MARKET SIZE
As per VARMORA INDUSTRIAL DIGEST, JUNE 1996, size
of Wall tiles is as under.
The Wall tiles market size is established at Rs. 525 Crores,
where as floor tiles segment is Rs. 300 Crores. The demand for
this tile is growing at pace of 30%. The production capacity is
expected to bulge by nearly 5.35 Lacs tones
52
53. MARKET SEGMENTATION
Market segmentation is based upon the market oriented
strategies and philosophy segmentation gives special emphasis
on the demand size of the market.
“Market segmentation is a method of achieving maximum
market response from limited marketing resources” by the
markets for to identify the target customer. Generally, there are
two types of market segmentation.
People oriented approach
Consumer demand or product oriented approach.
In case of Varmora, there is no need for market segmentation.
Their market is fixed, so they think that there is no need of
market segmentation. They produce the item according to orders
they receive.
53
54. PRICING
Price is the amount charged for the product or service
including any warranties or guarantees, delivery, discounts,
services or other items that are paid of the conditions of sale and
are not paid for separately. To the buyer price is a package or
expectations and satisfactions.
Pricing is an important decision that every company has to
take high price or low price may create a bad reputation of
company. The price of a product is a crucial decision.
In Varmora Granito, pricing policy is cost + profit. Whatever
expenses have incurred during the manufacturing of product is
considered + profit is too included. Competitors price are also
considered, their prices are higher than their competitors.
54
55. ADVERTISEMENT
Now a day, marketing plays an important role for the entire
organisation. Marketing is very much necessary for all the products
as without marketing the consumer will have lack of information about
the products. Thus, to make the consumers aware of the product,
marketing is done.
Varmora advertise their products on very large scale. They
advertise their products on television and also do wall paintings all
over India. They also distribute pamphlets for the same.
55
56. CHANNEL
OF DISTRIBUTION
The word “Channel” has its origin to the French word used for
“Canal”. Thus, channel is route through which goods passes from
one end to another. In other words, the route through which goods
move from the place of production to the place of consumption is
called “Channel Distribution”. Channel of distribution is the pathway
or route through which goods are transferred from the hands of
producer to the consumers or from the seller to the buyer.
According to one author, “A channel of distribution for a product
is the route taken by the title to the goods as they move from the
producer to ultimate consumer.”
In this industry, the distribution channel is
T
here are about 300 dealers in all states of country.
56
57. MARKET RESEARCH
Market research is the systematic and intelligent
investigation or study of the “who, what, where, when, why and
how of actual and potential buyers.”
It is the systematic gathering rewarding and analyzing of
data about problems connected with the market place. It is the
scientific and controlled process of gathering of non routine
marketing information helping management to solve marketing
problems. It acts as the investigative aims of marketing manager
and management tool in planning control cycle.
In this industry, first of all they study about customers
requirements. They try to introduce good facilities every time,
they have a marketing research team which goes all over country.
57
58. CREDIT FACILITY
To run the business smoothly and regular cash flow,
company gives some credit facility to the buyers.
Varmora also does the same thing. They sell those
products in the market on cash and credit basis. They give 3
crores credit facility to the buyers.
58
59. SALES PROMOTION
Sales promotion consists of short term incentives to
encourage purchase or sales of a product or service. It is
demand stimulating devices designed to supplement advertising
and facilitate personal selling. It is a direct inducement which
offers an extra value and incentive for the product to and sales
force distributors to ultimate customers.
In this industry, they do not adopt any technique because of
potential marketing and potential customers.
59
60. EXPORT POTENTIAL
With major market operating up and gap of technological
advancement in the manufacturing being narrowed the market for
products will grow. However, in mainly depend upon the
conformity to develop countries strict standards shall determine
growth. The increased production capacities shall see the
companies moving towards developed export market. Indian
ceramic industry in spite of advantages according out of low
labour costs is wrought with the problem of quality and design
companies are fortifying their R&D designs.
60
61. COMPETITORS
It is rightly said that, “Without competitors market does not
survive.”
Varmora is also starving in to sale its products in the
competitive market by continuous development of a product
finding new areas of consumption.
Their competitors are
Kajaria
Bell
H R Johnson, etc.
61
62. CONSUMER
PROBLEM HANDLING
“Customer is the king” of the market, is a very attractive
slogan. Consumers generally never face any problem for
Varmora but in spite of this, if any problem arises than following
hierarchies of problem handling is followed.
62
64. Sr.
No. PARTICULARS PAGE
NO.
1. INTRODUCTION 65
2. ORGANIZATION CHART 66
3. CAPITAL STRUCTURE 67
4. ACCOUNTING POLICY 68
5. WORKING CAPITAL
REQUIREMENT
69
6. SOURCES OF FUNDS 70
7. FINANCIAL PLANNING 71
8. PROJECT COST 72
9. HIGHLIGHTS OF PROFITABILITY 73
10 RATIO ANALYSIS
11. LEVERAGE ANALYSIS
INTRODUCTION
64
65. Finance plays a very important role in any type of the firm.
From the initial stage awards money is needed for the information
registration of the firms, listing of the firm. Finance is needed for
making necessary documents.” FINANCE IS THE LUBRICANT
WHICH RUNS THE ENTIRE ORGANISATION “
Finance consists of procuring funds, managing and utilizing
them efficiently in order to maximize the profit, which is ultimate
goal of any organisation.
In Varmora Tiles, the capital is procured by issuing equity
shares. The secured loan of this industry is 94000000 and the
unsecured loan of 2012-13 is deposits from relatives of directors
i.e. of Rs. 20000000.
65
67. CAPITAL STRUCTURE
Procurement of capital is the most important process of an
organisation. Capital can be of two types i.e. ownership capital
and borrowed capital. Ownership capital can be procured by
issuing equity shares and sometimes preference shares and
borrowed capital can be procured by issuing debentures, bank
loan, etc.
The capital structure of Varmora is very simple as it has
issued desirable equity debt ration of.
67
68. ACCOUNTING POLICY
Accounting policy of Varmora Granito as under:
The company maintains its accounts on historical cost
basis. The current assets, loans, and advances, liabilities are
approximately of value stated if realised in ordinary course of
business.
The company follows the accrual method of accounting and
all claims, receivables and liabilities are provided on that basis.
Depreciation is provided during year at prevailing rates
prescribed by company’s act 1956.
68
69. WORKING
CAPITAL REQUIREMENT
Working capital requirement means it is necessary to
maintain stocks of raw materials and to finance the funds blocked
in goods in process, finished goods, overheads, etc. Total
working capital requirement for first year has been estimated at
Rs. 458 Lacs. The working capital is proposed to be through
Bank finance to the tune Rs. 2300 Lacs and promotions funds at
Rs. 160 Lacs.
69
70. SOURCES OF FUNDS
A manufacturing company requires capital for these purposes.
To achieve or create fixed assets
Working capital for financing day to day manufacturing and
marketing operations.
Capital for expansion, modernization, etc.
A company has two main sources of capital
Internal sources
External sources
Varmora Granito Pvt. Ltd. is having internal source of finance.
The company has its own share capital and have taken loan from
the bank.
70
71. FINANCIAL PLANNING
Financial management also requires managing for effective
management of finance as it is the part of management.
Financial planning means decisions to be taken to achieve basic
objectives of the firm.
The basic objective of finance planning is to raise the
necessary funds as and when needed. At minimum cost cash
should be controlled properly. There are three types of financial
planning.
Short term planning
Medium term planning
Long term planning
In Varmora Granito Pvt. Ltd. there is long term financial
planning.
71
72. PROJECT COST
Sr. Particulars Amount
(thousand)
1 Land 200.00
2 Factory Building 110.00
3 Imported Machinery New 559.00
4 Indigenous Machineries 238.00
5 Electrical Installations 54.00
6 Tools 40.00
7 Installations 50.00
8 Bank Guarantee for EPG 35.00
9 GEB Deposit 40.00
10 Computers 30.00
11 Furniture 25.00
12 Other Miscellaneous Assets 40.00
13 Preliminary and pre-operative
expenses
20.00
14 Provision for contingencies 20.00
15 Total capital cost of project 1401.00
16 Margin money for working capital 158.00
Total Project Cost 3020.00
72
74. Projected Trading Account [1 s t yr]
PARTICULARS AMOUNT PARTICULARS AMOUNT
To purchase
4,00,00,000
To direct labour
1,58,00,000
To utilities
43,40,000
To GROSS
9,66,80,000
PROFIT
By Sales 15,68,20,000
Total 15,68,20,00
0
15,68,20000
Projected Trading Account [2 nd yr]
PARTICULARS AMOUNT PARTICULARS AMOUNT
To purchase
4,50,50,000
To direct labour
2,00,00,000
To utilities
21,12,000
To GROSS
10,52,38,00
PROFIT
0
By Sales 17,24,00,000
Total 17,24,00,00
0
17,24,00,000
74
75. Projected Trading Account [3 rd yr]
PARTICULARS AMOUNT PARTICULARS AMOUNT
To purchase
5,00,60,100
To direct labour
2,00,50,000
To utilities
10,94,700
To GROSS
11,00,56,00
PROFIT
0
By Sales 18,12,60,800
Total 18,12,60,80
0
18,12,60,800
75
76. Projected Profit and loss account [1 s t yr]
PARTICULARS AMOUNT PARTICULARS AMOUNT
To Salaries
To Repair &
Maintenance
To Depn on
Building &
Machine
To Depn on
Computer,
furniture & A/C
To Telephone
To Post &
Stationary
To Miscellaneous
exp
To Insurance
To Advertisement
exp
To Packaging exp
To Traveling exp
To income tax
To NET PROFIT
1,20,68,00
0
15,00000
15,06,500
30,00000
10,00000
900,000
15,08,000
25,00,000
10,00,000
20,20,000
1,50,60,00
0
--------
91,84,600
45,43,2,900
By GROSS
PROFIT
9,66,80,000
Total 9,66,80,00
0
9,66,80,000
76
77. Projected Profit and loss account [2 nd yr]
PARTICULARS AMOUNT PARTICULARS AMOUNT
To Salaries
To Repair &
Maintenance
To Depn on
Building &
Machine
To Depn on
Computer,
furniture & A/C
To Telephone
To Post &
Stationary
To Miscellaneous
exp
To Insurance
To Advertisement
exp
To Packaging exp
To Travelling exp
To Interest on
borrowed loan
To NET PROFIT
1,30,89,000
20,00,330
15,10,546
5,22,050
5,00,052
4,50,000
4,58,000
5,58,000
6,56,000
98,75,278
1,00,36,526
98,69,350
5,57,12,868
By GROSS
PROFIT
10,52,38,000
77
78. Total ,
10,52,38,000
10,52,38,000
Projected Profit and loss account [3 rd yr]
PARTICULARS AMOUNT PARTICULARS AMOUNT
To Salaries
To Repair &
Maintenance
To Depn on
Building &
Machine
To Depn on
Computer,
furniture & A/C
To Telephone
To Post &
Stationary
To Miscellaneous
exp
To Insurance
To Advertisement
exp
To NET PROFIT
1,44,21,365
21,53,452
17,56,235
5,78,235
5,08,000
4,20,000
2,58,000
5,82,000
5,32,000
97,45,500
1,02,36,552
99,45,235
5,89,19,426
By GROSS
FPROIT
11,00,56,000
Total 11,00,56,00 11,00,56,000
78
79. 0
PROJECTED BALANCE SHEET (3 yrs)
PARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR
Capital – Liability
Own Capital
Add: Interest on capital
Add: Net profit
Less: Drawings
Borrowed Loan
Add: Interest
Creditors
(a)
Property – Assets
Land
Building less depreciation
Machinery less depreciation
Computer less depreciation
A/C less depreciation
Furniture less depreciation
Pre-operating and preliminary
exp
Cash [NP+DEPn – installment]
Debtors
Total
12,00,45,00
0
1,08,04,050
4,54,32,900
45,80,450
18,08,62,40
0
15,97,000
1,75,670
17,72,670
1,50,000
18,27,85,07
0
6,50,20,000
2,35,50,000
6,15,22,500
6,27,355
1,080,000
8,45,0000
47,03,000
47,67,860
59,23, 455
18,27,85,07
12,00,45,000
1,08,04,050
5,57,12,868
42,45,445
18,23,16,473
17,37,000
19,1070
19,28,070
2,25,000
18,44,69,543
7,45,20,000
3,15,50,000
6,98,45,555
8,60,670
9,33,015
9,45,000
50,0000
52,67,567
13,07,991
18,44,69454
3
12,00,45,000
1,08,04,050
5,89,19,426
4,37,368
18,92,95,108
16,77,000
184470
18,61,470
3,00,000
19,14,56,578
7,45,20,000
3,62,99,174
7,16,52,552
9,61,698
10,37,584
11,55,256
5,06,856
53,23,458
13,88,248
19,14,56,578
79
81. SWOT ANALYSIS
SWOT Analysis means the analysis of
S Strength
W Weakness
O Opportunity
T Threat
Strength
Varmora Granito Pvt. Ltd. is giving employment around 200
employees.
Strong market presence
Develop rural area to reach at the global position.
Weakness
Irregularity in time cost.
Varmora industry entered late in the market
81
82. Opportunity
Rapidly and continuous growth in the market, so company will
think about expansion.
Threat
Highly competitive market against imported Wall tiles
particularly the Chinese manufacturer with their aggressive low
cost manufacturing advantage.
82
84. FUTURE PLAN
Future plan of Varmora Granito is to become leading
companies in the Wall tiles all over the world.
They will be installing new latest machines for increasing
production and various designs and ranges to meet the upcoming
market needs. Also, they wanted to try serving backward class
by giving them services.
84
86. SUGGESTION
Actually, we are just students. It is not our capacity to give
suggestions. Varmora Granito Pvt. Ltd. is having smooth
relation, nice organisation and sincere workers.
There is no requirement to give any kind of suggestion, but as
a part of study it is necessary to give suggestions, which are as
under:
Having a wide market itself in India, only little is exported.
Instead of if they increase their export and step into wide
international market to compete their quality, through this
profit increases.
86
88. CONCLUSION
From this unit, I learn as many things, I am very much
happy to visit the company. Deep study of Varmora Granito Pvt.
Ltd, I came to give my conclusion that its future is very bright and
they will progress well.
The co-operation of the employees is good. The
management is also effective and efficient. All the departments
are also handled by authorised person who have great experience
and it is one of the response of success of the firm.
So, I wish the company makes more and more profit, fulfill
the future plans and get good and global market.
88
