Recent Trend In Capital

Recent trends Capital Market In the Year of 2009-10 •

NSE Following the pherwani committee recommendation the government have

inititated steps for NMS and recognized the NSE in 1993 for setting of national market system in which electronic trading and the settlement is possible throughbout the country on the basis of standard price and a fix margin service charge of commission for the broker NSE was the 23rd stock exchange to be recognised under SC (R) act. With increasing regulation by SEBI on exchange the future role of exchange will be radically different from the present , as their development role will be increasing much faster than there regulatory role not only stock exchange but all the players in the market, namely, companies , brokers , intermediaries and investors have come under the supervision and control of SEBI and along with increasing self regulation and stricter enforcement of a code of conduct on the member the stock exchange will have to emerge as public service institutions catering to increasing demands of investors in the country. Listed companies have also a role in this process to collaborate and extend all help for more efficient functioning of exchange. To improve the quality and efficiency of service, trained and professional category of intermediaries and broker is also necessary. education and training and research would be the hallmark of future stock brokers and other intermediaries, in the market •

NATIONAL MARKET SYSTEM

the pherwani committee recommended the setting up of the national market system based on the new stock exchange which was already set up in Mumbai. To make the national market system effective, the committee recommended several support agencies to provide high quality trading, settlement and depository services. In this context, it has recommended that there should be three tires, namely, stock exchange at Mumbai, Calcutta etc. regional stock exchange like those in major state capitals

1

and additional trading floors sponsored or managed by principal or regional stock exchange. The structure of securities markets was on the following lines: (1) regular stock market which are 21 in number at present. (2) National market system with a separate set of licensed broker all over the country mostly banks and corporate units, attached to NSE. (3) Retail broking trough a series of registered sub-broker attached to the regular stock markets or to NMS. (4) OTCEI for risky and venturesome companies and companies which can not satisfy the listing requirements of regular stock exchange, such as small companies. Most of those recommendation have already been implemented

•

NEED FOR LARGER FINANCIAL BASE

Although pherwani committee on stock market reforms recommended the opening of four more stock exchange in addition to the existing 21 exchange, the trading floors recognized by SEBI can operate in those place linked to a main regional exchange. Because the stock exchanges in the future cannot function without better infrastructure, computerization, etc, this recommendation is not implemented. But in sept.1996 Visakhapatnam stock exchange is recognized for electronic trading. For brokers also capital adequacy norms have been laid down by SEBI but not yet implemented Not only there is need for better infrastructure in the form of space, telecommunications, electronic network connecting all broker firms but also the broker firms shall themselves need a better capital base.

2

A PROJECT REPORT OF GENERAL MANAGEMENT STUDY AT SACHIN PAPER MILL PVT. LTD

Bhagwan Mahavir College Of Business administration Veer Narmad South Gujarat University, SURAT.

BATCH: 2009.

Submitted By

Patel Yatin Patel Pratik 3

Shah Hemil Shah Moxit Tanawala Sandip

Declaration

We the undersigned declare that this project report entitled “a project report on Sachin paper mill” is result of our own training work carried out during may-june 09 & have not been previously submitted to any other institutions & for any other purposes by any other person. We will not use the project report in future to use as submission to any other university, institutions or any other publications without written permission of any guide. We also promise not to all of any other person to copy from this report in any form. If we are found or caught as defaulter of our declaration, we know that our present or further submission may become invalid or we may not be permitted to appear in the final exam.

4

Signature---

Acknowledgement

We would like to thank B.M.E.F College for providing this opportunity for summer training in this organization. It was great pleasure to complete our summer training in healthy & co-operative atmosphere of Sachin paper mill, Surat. We enjoyed our training under the guidance of well experienced, intelligent, hard working & ambitious team, which will be a memory for ever. We are greatly indebted to all the management & staff members of Sachin paper mill for the valuable guidance provided by them during the training. We wish to represent our deep sense of gratitude to or director Dr Manoj Joshi & General Manager Pravin without whose valuable co-operation this training would have been practically incompleted. We would like to show genuine appreciation for the support given by Marketing, Finance Management, Human Resource Management, Production Department, & also the staff of Sachin paper mill needed from time to time changing the course of our training.

5

INDEX:

Chapter Particulars No. 1

P.g. n.o.

INTRODUCTION • COMPANY DETAILS

8

• LOCATIONS

10

2

HISTORY OF PAPER

11

3

PRODUCTION MANAGEMENT

16

•

DEFINATION

18

•

ORGANIZATION STRACTURE OF A PRODUCTON

19

•

DEPARTMENT PRODUCTION PLAN

20 6

4

• •

MRP AND PURCHASE PLAN PLANT LAYOUT OF A COMPANY :

20 21

•

PLANT LAYOUT OF PRODUCTION DEPERTEMENT

22

•

PRODUCTION PROCESS :

23

•

MATERIAL HANDLING :

38

•

INVENTORY CONTROL SYSTEM

39

• •

CLASSIFICATION OF INVENTORIES QUALITY CONTROL SYSTEM

40 41

MARKETING MANAGEMENT

45

•

DEFINATION

47

•

TYPES AND CLASSIFICATION OF SALES

48

•

FUNCTION UNIQUE FEATURES OF VARIOUS PRODUCTS

48

•

CUSTOMER SEGMENTATION AND TARGET

50

MARKET :

5

•

DISTRIBUTION NETWORK :

51

•

SALE PROCEDURE / HOW CUSTOMER ORDER

52

•

ARE PROESSED COMPARISON OF 4Ps

53

•

FORCASTING AND SALES PREPARATION :

55

•

PRICING POLICIES :

55

•

PROMOTION AND ADVERTISING POLICIES :

56

•

TAXES APPLICABLE ON SALE ACVTIVITY

57

FINANCE MANAGEMENT

58

•

CLASSIFICATION OF COSTS :

60

•

ACCOUNTING POLICIES :

61

•

CAPITAL STRUCTURE OF SACHIN PAPER MILL

62

•

WORKING CAPITAL MANAGEMENT

64

•

INTERNAL AUDIT POLICIES & FINANCIAL CONTROL SYSTEM

65

•

METHOD TO CALCULATE DEPRECIATION

66

7

•

STATEMENT OF DEPRECIATION

67

•

TREND ANALYSIS

68

•

RAW MATERIAL DETAILS

69

•

BALANCESHEET

70

•

PROFIT AND LOSS ACCOUNT

71

•

RATIOS

72

HUMAN RESOURCE MANAGEMENT

77

•

INTRODUCTION:

79

•

DEFINATION

79

•

HUMAN RESOURCE PLANNING

82

•

RECUITMENT

83

•

SELECTION

87

•

JOB DESCRIPTION AND JOB SPECIFICATION

90

•

PERFORMANCE APPRAISAL

91

•

PROMOTION, DEMOTION AND INCREMENT

91

•

POLICIES WELFARE

92

•

HUMAN RESOURCE INFORMATION SYSTEM

93

•

TRAINING

94

•

WAGES AND SALARY

94

•

INCENTIVE PLAN

94

6

8

9

INTRODUCTION

COMPANY DETAILS

The Sachin paper mill was established in 1996. The intention on investment was about 2.5crore. It is a continuous production plant. There is only one product MG craft paper. The raw material used to produced the paper are waste paper, husks paper, Polytubes, corrugated boxes etc. the main point to notice hear is all these raw material are made up of MG craft paper itself. We can say that they used MG craft paper as a recycle use. It make used of waste material, which is beneficial to country like India, Sri-Lanka where resources are limited. The water is used in the process is used again and again after recycling. Because of that there is no requirement of trees and bamboo sticks. It proves to be beneficial from environmental point of view. This MG Kraft paper is produced in different qualities based on different bust factors and gram. Generally the highest production in the mill is of sixteen bust factors Kraft paper there if of 70% of total production. There are mainly seven departments in the company namely Purchase, Production, Personnel, Sales, Finance, Electrical and Mechanical. But their main emphasis lies on production department.

10

LOCATION OF OFFICES, BRANCHES & FACTORIES

REGISTERED OFFICE Sachin Paper Mill Pvt. Ltd. Hojiwala Estate, Sachin Udyog Nagar Sahkari Mandli ltd, Sachin Palsana Road, Near Vanz gaon, Dist. - SURAT.

HEAD OFFICE 103, J.R.House, Opp, Vakharia Market, Ring Road, Surat.

BRANCH OFFICE 66, Rushab Market, Beside Millennium Market, Ring road, Surat.

11

12

HISTORY OF PAPER INDUSTRY A PAPER historical place EGYPT When we think of the origins of paper, our minds might wander back over 5000 years ago to the Nile river valley in Egypt. It was there that a marsh grass called Cyperous Papyrus flourished. The Egyptians cut thin strips from the plant's stem and softened them in the muddy waters of the Nile. These strips were then layered in right angles to form a kind of mat. The mat was then pounded into a thin sheet and left in the sun to dry. The resulting sheets were ideal for writing on. Since they were also lightweight and portable they became the writing medium of choice of Egyptians, Greeks and Romans for record keeping, spiritual texts and works of art.

It is from papyrus that the word paper comes from. Although papyrus sheets were similar to paper in terms of function, being laminated sheets they were technically more like a mat and therefore not the same as the papers of today. Similar processes were developed in other lands - in Central America during the 2nd Century AD the Mayans fashioned a similar product for bookmaking. In the Pacific Islands, a paper was made by beating a fine bark over specially shaped logs to make clothes and ritual objects. However, none of these sheets would qualify as true paper today.

13

The father of true paper - T'sai Lun

Paper as we know it today comes from another source - China. Excavations of tombs of the former Han Dynasty (207BC-9AD) have revealed silk cloth bearing the texts of Lao Tzu - the father of Taoism (born in 604BC). In 105 AD, Han Emperor HoTi's chief eunuch T'sai Lun experimented with a wide variety of materials and refined the process of macerating the fibre of plants until each filament was completely separate. The individual fibres were mixed with water in a large vat. Next, a screen was submerged in the vat and lifted up through the water, catching the fibers on its surface. When dried, this thin layer of intertwined fiber became what today we call paper. T'sai Lun's thin, yet flexible and strong paper with its fine, smooth surface was known as T'sai Ko-Shi, meaning: "Distinguished T'sai's Paper" and he became revered as the patron saint of papermaking.

What Is Paper? True paper is characterized as thin sheets made from fiber that has been macerated until each individual filament is a separate unit. Medieval paper was made of diluted cotton, linen fiber. The fibers are then intermixed with water and by the use of a sieve-like Screen; the fibers are lifted from the water leaving a sheet of matted fiber on the screen. The thin layer of intertwined fiber is paper. Many people include think of papyrus and rice paper as paper. They are not. Papyrus is not made from macerated fiber so, it is not true paper. Papyrus is made from a grass like aquatic plant in the sedge family called Cyprus papyrus. It has woody, bluntly triangular stems that are cut or sliced end to end with metal knife. Then these thin "boards" are pasted together much like laminated wood. Rice paper is not paper. It is made from strips of the cut spirally from the pith of the rice paper tree, a small Asiatic tree or shrub, Tetrapanax papyriferum that is widely cultivated in China and Japan. The pith is cut into a thin layer of ivory-like texture by means of a sharp knife. Parchment and vellum are also not paper. They are made from the skins of animals.

14

Where It Began? Paper as we know it, was invented in China, AD 105, by the Chinese Eunuch T’sai Lun. It was thin, feted, formed, and flat made in porous molds from macerated vegetable fiber. Before the 3rd century AD, the first paper was made of disintegrating cloth- bark of trees and vegetation such as mulberry, hemp, china grass. Paper was used in China from AD 868, for engraving religious pictures and reached its height of in 1634 with the wooden block prints made popular by Sung Ying-hsing. The technology of making paper moved from China to Japan and then to Korea in AD 610 where it was commonly made from mulberry bark and Gampi. Later it was made from bamboo and rice straw. Marco Polo gave one of the first descriptions of Chinese papermaking in his 'Milione'. He mentions that the Chinese emperors jealously guard the secrets of papermaking and that fine paper is manufactured from vegetable fiber: rice or tea straw, bamboo canes and hemp rag cloth. Chinese paper made from bark and the fibers of rags and hemp may have traveled on caravans following the Gobi Desert, the Desert of Takla Makan and the Tarim Valley and finally arrived in Samarkan. But papermaking was a closely guarded secret and it was not actually made there until after 751 AD. In 751 the Chinese lost a battle in Turkistan on the banks of the Tharaz River. It was recorded that among the Chinese prisoners were skilled papermakers. The craftsmen began making paper in Samarkan. Samarkan was a good place to make paper because it had an abundant supply of hemp and flax and pure water. The first wire mold for making paper is identified in Spain dating to 1150. Bamboo molds were common in China, but it was not readily available in Europe. The bamboo allowed the mold to be flexible, but the European rigid wire mold, was better suited to the formation of rag fiber. Europeans also invented the Fence or Deckle, which keeps the paper within bonds. The earliest paper was called 'cloth parchment', but it often contained wood and straw in addition to cloth. All these raw materials were beaten to a fine pulp and mixed with water. Sheets of paper were then pressed out, dried and hardened. The demand for paper was slight in the 1st Century Europe. Paper cost more than vellum, it was more fragile than parchment and it was associated with 15

Jews and Arabs who were not trusted. In fact, The Church in Western Europe initially banned the use of paper calling it a 'pagan art' believing that animal parchment was the only thing 'holy' enough to carry the Sacred Word. It was only with the advent of printing in the middle of the 15th Century that the demand became greater. The first representation of the printing process is the 1568 wood print Der Papierer by Jost Amman in the Little Book of trades.

16

17

PRODUCTION MANAGEMENT

No.

Particulars

P.g. n.o.

1

DEFINATION

18

2

ORGANIZATION STRACTURE OF A PRODUCTON

19

DEPARTMENT 3

PRODUCTION PLAN

20

4

MRP AND PURCHASE PLAN

20

5

PLANT LAYOUT OF A COMPANY :

21

6

PLANT LAYOUT OF PRODUCTION DEPERTEMENT

22

7

PRODUCTION PROCESS :

23

8

MATERIAL HANDLING :

38

9

INVENTORY CONTROL SYSTEM

39

10

CLASSIFICATION OF INVENTORIES

40

11

QUALITY CONTROL SYSTEM

41

18

PRODUCTION MANAGEMENT

DEFINATION: According to Russian writer Alexander Solzenstyn, "In relation to physical goods, production means manufacturing of an object using various inputs like raw material, labour, power, land, capital equipments and technical know-how. In relation to services, production means discharge of any function which has got some Utility.

According to Everett Adams, "Production management is defined as management of conversion process in which various inputs like material, labour, land, machines & technical knowledge are converted in value added goods and services."

19

ORGANIZATION STRACTURE OF A PRODUCTON DEPARTMENT

Production General Manager Production Manager

Mechanical Electrical Mech. Incharge

Foreman

Employees

Wireman Senior fitter Employees Fitter

Post

Name

General manager

Mr.Panchal

Production manager

Mr.Pradip jain

Foreman

Mr.S.N.verma, Mr.Gyaneshwar

Mech.Incharge

Mr. Nilesh Patel

Senior fitter

Mr.Somnath yadav

Fitter

Mr.Rajesh

Assistant

Mr.Manahar Khalashi

Turner

Mr. Pradip Waghela

Welder

Mr. Mohan patil

Wireman

Mr. Mata Prasad,Mr. Jairam gupta

Assistant Turner Welder

20

PREPARATION OF PRODUCTION PLAN TO SALES PLAN : Firstly, Sales department received an order. On the basis of that order sales department gives an order to production department. As per customers’ order, production department know about various manufacturing product about how much quantity to be manufactured. In that order, Information of orders given like how much quantity they want, which kind of product they want. Which kind of paper they want and which size paper they want. After receiving order, Sachin paper mill start to make a product. And after given to the customer has better quality than its competitors. So customer need not to worry about their products’ quality.

PREPARING MRP AND PURCHASE PLAN: Material requirement planning is defined as, “Technique for determining quality and timing for the acquisition of dependent demand items needed to satisfy master schedule requirement.” For preparing material requirement plan, it is necessary to convert manufacturing quantity of finished product into raw material requirement. This process of converting is known Bill of Material. This Bill of Material is always there with the production department. The raw material requirements are never considered as generated by MRP. Following logic is considered:

Requirement generated by MRP

Less: Present stock of material Less: Pending purchase order = Balance (new order quantity)

21

ANALYSIS OF PLANT LOCATION CONSIDIARING VARIOUS FACTORS :

Sachin paper mill is located in a Sachin Udyog Nagar away from GIDC. Most of mills are located in the GIDC. In Sachin paper mill, workers come from the village area. In GIDC, workers come from city areas. So their salary is high then worker who working in Sachin Udyog Nagar. It is the main advantage of a company. Generally Sachin paper mill is located in a nearby a market, so they easily buy a raw material from market paying a less charge. Mostly raw material like paper tubes and paper rills are mostly get from the looms units so here is a less transportation charge and no need to pay Octroi. This is main advantage from them. The raw material is easily gets from city area.

PLANT LAYOUT OF A COMPANY :

22

PLANT LAYOUT OF PRODUCTION DEPARTMENT : ENTRY

MACHINE WARE HOUSE SENDY CLENER

REWINDER DRYER CONTRO {POST} L ROOM MG CYLINDER PULP SECTONN FIRT PRESS CHEST REFINER SECOND THICKNER 3 F PRESS SCREEN HIDH WIREDENSITY PLANT CLENER PULPER HEAD BOX CONVYER BELT

RAW MATERIAL PLANT

RAW MATERIAL PLANT

PRODUCTION PROCESS: 1. Raw material Yard The main raw materials for paper are waste Kraft paper, waste paper, corrugated boxed, POY tubes, paper tubes etc. stored in raw material yard. All these material comes in mixture so workers differentiate them into their categories and they remove polythene from it.

23

2. Conveyer Belt Conveyer belt is placed between the raw material yard and pulper machines, so all the material can be easily carried and provide to pulper fro process. Mainly three workers engaged with it. One worker for putting materials on one side and other for collecting that material from another side.

3. Pulper Pulper is a machine which grinds raw material like waste paper corrugated boxes etc with adding water in it, so we can say that it is a big grinder machine. It makes a primary pulp by materials.

24

4. Dumpid Dumped is a big storage tank which stores pulp came from pulper. From the Dumped pulp goes for other stage of process.

5. Send draft Send draft is divided in three channels. These send draft machine collects the pulp from the dumped. Then pulp passes through 3 channels. In this process all the foreign materials are settle at down and other fibrous material go for next process.

25

6. Chest no. 5 After removing sand, heavy material, the pulp comes in chest through pump. It is another storage tank, which collects pulps and sends for other process.

7. High density cleaner High density cleaner removes the maximum heavy particles like metal from the pulp. Its work is same as send draft. 8. Saper plats Here pulp is screens. 9. 3F screen It works same as sapper plats. Here pulp is screened between three dishes. Screened fibrous materials are goes through small holes to the thickener.

26

10. Refiner Here all the extra useless material is restricted and remaining pulp is going for the next stage of production.

27

11. Chest Chest is another storage tank. It collects the pulp coming from refiner. Pulp stored in chest and chemicals like alum, silicate, gum added in it. Different colour also included in the pilp of the chest. But these colour are added according to customers.

12 SR Box SR Box is also called as a controller box. It maintains the level of the pulp when it sends for process.

28

13. Fan Pump Fan pump is them is the machine which push the pulp with pressure and send the pulp to Sandi cleaner.

14. Sandi cleaner Sandi cleaner is like big injections. There are three Sandi cleaners. Fan pump come from Sandi cleaners with lots of forces. Sandi cleaner helps to remove all remaining dusts, sands and other minor unusual objects from the pulp.

29

15. Head Box FN screen is connected with head box. FN Screen received spiral pulp from Sandi cleaner and sends it to head box. It spreads the pulp on the synthetic net which is called as wire part.

16. Wire part It consists of suction boxes, foils, table rolls, formation board and vacuum box. Here the water from the pulp and then it is converted into paper.

30

17. First press and Second press In first press there are two types of roll named top roll and bottom roll. Paper come from last stage is pressed between these two rolls and by this excess water is drained.

18. Dryer There are three sub parts in second press named PN dryer, MG cylinder is large dryer, which provide lots of steam and heat to make a paper drier. Almost 75% papers become dry in MG cylinder and pass it to post dryer. Post dryer has 4 dryer rollers, which makes a paper completely dry and send it to pop rill.

31

19. Pop rill In dryer, paper becomes completely dry and then come at pop rill. Pop rill is useful for rapping the paper. It makes a huge roll of papers.

20. Reminder When a huge roll of paper rapped on pop rill then with the help of crane these rolls are put on reminder. Reminder helps to cut the paper according to customers demand.

32

21. Finished product After the whole production process mentioned above, finished product that is paper comes out which is tied up with plastic string and also distributed to distributors through logistics.

Water Plant : 1. Collection of water In different stages of production process, there is a lot of wastages of water. The channels for water recycling process collect this water.

33

2. Storage in tank The second stage in the process is storage water in tank.

3. Screen From the tank, the flow of water is passed through the screen. Here with the help of screen some pulp and water is divided. Divide pulp is send to pulper for process. And remaining water sends to the next stage of process.

34

4. Slug water Slug water pond collects all non fibrous and fibrous material. And send for process is pulp section. With the help of pipeline water is provide for the next stage of process. 5. Lamella In lamella water is collected and overflow of the water goes to sand filter. In lamella heavy materials s removed and overflow with some fibrous materials goes for other process in sand filter.

6. Sand filter Water come from the last stage is filtered in sand filter. All the types of dust sand and other objects are removed in this stage of process. Then the clean water is sent for the process in mill and one overflow of water is sent for the next stage of process.

35

7. Erosion tank Erosion tank look like a pond. This tank is helpful in absorbed the oxygen from climate and maintains the level. Then send to the next step.

8. Secondary filter Water comes in secondary filter or last stage. All the remaining send, dust is removed and then it sent in process house.

36

Boiler House In production process of paper at some stage steam is required to make paper dry. So boiler is most important for making steam by coal. 1. COAL YARD In boiler house there is a coal yard. There are at least 500-ton coals in yard. This coal is provided for boiler.

2. COAL CRUSHER Coal crusher is a machine which crushes the pieces of big coal in to the small pieces and sent that small pieces for boiler.

37

3. BOILER Boiler is machine in which with the help of fire and coal steam is produced. The fire is manually started.

38

4. IN PRODUCATION PROCESS The steam produced in boiler. This steam provide in production process with the help of pipeline, which is attached between boiler and production house.

MATERIAL HANDLING: Defination “Material handling is defined as Control movement of material from receipt of material, through storage & production & shipment of finished product. In other word, Material handling means a movement of equipments from one place to another.”

MATERIAL HANDLING EQUIPMENT -

In Sachin paper mill following equipments are use as material handling equipments. 1. Conveyer belt 2. Pipe line 3. Wire part 4. Electrical cranes.

1 Conveyor Belt: Conveyer belt is most useful equipment in Sachin paper mill. It moves raw material from raw material yard to a pulper. Conveyor belts are designed to handle material between 2 fixed locations.

39

2 Pipelines Pipeline is one of the most important equipment. In Sachin Paper mill whole production process done through pipe line. Pipelines are used for vertical movement of material. For example Raw material go in a pulpur, in pulper raw material mixed, that mixed material moves in dump pit through pipe line, dump pit to sand trap, sand trap to high density cleaner. These way pulpur to head box whole process done through pipe line.

3 Wire Part Wire part is a small material handling equipment. Mixed material comes in head box and that material dropped on a wire part. That is final mixed material which is going in a first press.

4 Electric Cranes Electric cranes is use to handle heavy equipment like Poprill.

INVENTORY CONTROL SYSTEM : “Inventory control means the process of controlling timings and quantities of two inventory transactions.” In which the first is purchase or acquisition of inventory and the second is usage of inventory. It is neither possible nor advisable to exercise equal degree of inventory control on all items. So it is essential to classify inventories and then to exercise inventory control. In Sachin paper mill, there is also arrangement for proper inventory control. The movement of inventory are also considering in the inventory control system. The record keeps on the basis of the movement of inventory both inside or outside the inventory.

40

CLASSIFICATION OF INVENTORIES: There are two type of classification of inventory in Sachin paper mill are as follows. 1. Raw material inventory 2. Maintenance inventory

Inventory Classification

Raw material inventory Maintenance inventory

Carton boxes Part of machine Poy tubes Nuts bolt Waste Crane Paper tubes Ball bearing

ABC is ALWAYS BETTER IN CONTROL. ABC analysis and VED (VITAL ESSENTIAL AND DESIRABLE) analysis is the method of classification of inventory and apply inventory control measures selectively. In ABC analysis the inventory is classified on monetary basis in to A, B, C, CLASS. While in VED analysis the items are classified in to V, E, D.

In Sachin paper mill, the classification of ABC and VED are as follows.

A CLASS: ball bearings, spare parts of machine B CLASS: nuts bolt, valve, cranes plate and rings C CLASS: LUBRICANTS, OIL V CLASS: nut bolt and bearing E CLASS: valve and etc D CLASS: oil, grease 41

DIFFERENT RECORDS KEPT IN STORE :

There are many records are kept in store which is related to movement of material, taxes, expenditures. They also take care of the movement of material. They keep records of quantities which entered in store and go outside the store also determined. Various expenses which are applicable while doing a production activity. Various expenses related to safety of the material, various taxes which are regulated on the production inputs and finished products.

MATERIAL RECEIPT PROCEDURE :

When any raw material is required, production department gives order to the supplier on phone, email, and fax. Generally SACHIN PAPER MILL is having a continuous production system raw material is ordered on a daily basis. When the order is received from supplier, truck driver delivered our order with a CHALAN. SACHIN PAPER MILL also having a weight bridge. Before unloading the truck, it is weighted on the weight and it also weighted after unloading too. After checking all this things, CHALAN is signed by one who received the order. The quality and quantity of material are checked and then entered into store. The delay occurs may be loss in the production of various inputs.

MATERIAL ISSUED PROCEDURE Material issued procedure is a very simple procedure which is done in Sachin paper mill. Whenever material is unloaded it is note in a register by a store manager. It is a long time record, which store manager presents this record to production manager. Material issued procedure may be same as material receipt procedure but difference

42

is that the former is related to the material receipt and latter is related to the material issue in the store.

PURCHASE PROCEDURE :

The raw material mainly required by Sachin paper mill are coal, waste paper, corrugated boxes, POY tubes, paper tubes, colour chemicals etc. they follow a very informal and short purchase procedure. Their monthly requirement of waste paper, corrugated boxes etc. is approximately 800-900 tones and they pay different prices for materials. These types of materials are easily available in market. They have no fixed dealers; they buy it from any dealer and in any quantity according to daily price. In Sachin paper mill raw material like west paper poy tubes and so are easily get by a neighbors firm in HOJIWALA ESTATE. Mainly small dealers want a cash payment but big dealers give a 30 days credit. But Sachin paper mill believed in cash payment. Sometime Sachin paper mill import their material from Dubai, or Netherlands. Coal is also an important raw material for Sachin paper mill monthly requirement for coal is 500 tones. Coal is also an easily available material in market. Generally price for coal is Rs.2900 per ton. The order for coal is placed from head office. There are many dealers of coal in local market. Colour chemical are also a useful material which is easily available in local market. So Sachin paper mill purchase chemicals as per the need in business. List of the some Suppliers of Raw Materials: • S.K.Corporation. • Aishwarya Cartoons. 43

• Saroj Textiles.

QUALITY CONTROL SYSTEM : Generally in Sachin paper mill, quality control procedure is very simple. The whole production procedure is done by machine so there is no need to check a quality.

•

They check which type of paper is manufacture means paper is in a different colour. For example: XYZ company wants a yellow colour paper. They check that they manufacture a product is complete or not which xyz company want.

•

They check paper which is rewind carefully or not. They check that paper is successfully rewind on rill which is not cut to one end to another end or not spoiled groom one end to another.

•

They check that final product is cut on the requirement of a consumer.

•

They check a weight of each rill.

44

•

They check that final product is cut on the requirement of a consumer.

45

•

They check a weight of each paper sample.

Weight Checking Machine

RECORDS RELATED TO PRODUCTION OPERATIONS : There are some records which are related to the production operations at different machines. For example, the time period when the material kept near the machine for further production, when worker loaded the material and kept on machine, material processed time, time when worker unloaded the finished product and worker packing the finished product in a box etc.

46

The records within different department also kept. For example, electricity, wages, incentives, bonus, maintenance charges, depreciation etc. are considered for various departments.

.

47

MARKETING MANAGEMENT:

No.

Particulars

P.g. n.o.

1

DEFINATION

47

2

TYPES AND CLASSIFICATION OF SALES

48

3

FUNCTION UNIQUE FEATURES OF VARIOUS PRODUCTS

48

4

CUSTOMER SEGMENTATION AND TARGET

50

5

MARKET : DISTRIBUTION NETWORK :

51

6

SALE PROCEDURE / HOW CUSTOMER

52

7

ORDER ARE PROESSED COMPARISON OF 4Ps

53

8

FORCASTING AND SALES PREPARATION :

55

9

PRICING POLICIES :

55

10

PROMOTION AND ADVERTISING POLICIES :

56

48

11

TAXES APPLICABLE ON SALE ACVTIVITY

57

MARKETING AND SALES FUNCTION DEFINATION : According to American Marketing Association

“Marketing is an organizational

function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders.” “Marketing management is as the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.”

TYPES AND CLASSIFICATION OF SALES FUNCTION : The main product of Sachin paper mills is making of MG Kraft paper. They have produce different size of MG Kraft paper on the bases of GSM and BF. Various kind of paper size is follows:

Material used Type of Kraft paper

Weight age In GSM

49

100% local

12 BF

waste paper

80 90 100 180 220 250

100% Local

14 BF

west paper 5 to20%

110 120

16 BF

imported

100 120

waste paper

150 180 20 to 22%

18 BF

imported

100 120

waste paper

150 180

20 to 22%

20 BF

imported

100 120

waste paper

130 150 180

20 to 22% imported waste paper

22 BF

120 140 180

50

Shades of paper:-

They are produce different kind of paper shades and colours etc., are follow: 1. Natural paper 2. Pink paper 3. Yellow shades

These are the three kind of basic shades of the paper. If customers want any other paper they are provided with it. Generally monthly sales volume of Sachin paper mill is 300 tones. But the sales of Sachin paper mill changes with the change in demand in textile industry. When the textile business is facing a boom period the sales of Sachin paper mill is high and vice versa. So here we can say that when there is need of product they produce more, or they produce only on the consumer order. If order is more so they produce more. Overall there production system produce more than their competitors.

UNIQUE FEATURES OF VARIOUS PRODUCTS : Product means converting various inputs into particular items by producer. There is only one product manufactured by the company is MG Kraft paper. This MG Kraft various qualities based on grams and bust factor. It is a recycling unit. The raw materials used are the wastes of the textile industry, which are recycled to manufacture MG Kraft paper. 51

To produce product, Sachin paper mills use POY tubes, wastages, etc., as a raw material. There is no requirement wood for making of paper. In short they use recycling method to produce the product. Generally paper is made from the wood pulp but this company use wastages to help to prevent the environmental Pollution.

CUSTOMER SEGMENTATION AND TARGET MARKET : Customer segmentation means dividing the entire market into smaller segment, so that the company can give concentration to its main customers. Customer segmentation can be divided into geographic, demographic, psychographic, and behavioural. Mg Kraft paper is an industrial product. Manufacturers of corrugated boxes, POY tubes, paper tube, paper bag, core pipes etc. are their main customers. For doing so firstly they have decided what type of paper to be produced. There two types of machine design, which produces different types of paper. 1. wire design 2. mould design They selected wire design machine. In this machine they are manufacturing light weight paper. While in Mould design machine heavy weight papers are produced. The customers of light weight paper are mainly corrugated boxed manufacturer and very few customer of POY tubes, paper bags manufacturers etc. 80% of their customers are corrugated box manufactures and remaining 20% consist of POY tubes, paper bags manufacturers etc. Customers are allowed credit depending on their reputation in the market and their previous payment records. If any new costumer is there they are not providing credit policy.

DISTRIBUTION NETWORK : The producer and final customer are part of every channel. There are the four types of channel which a company can adopt. Sachin paper mill has adopted 0-level channel for their product. It also called as “direct marketing”. This means that they don’t have any dealer or agent or any other mediator selling their products on their 52

behalf. It means that they sell their product directly to their customers. So, here we can say that they are mainly 0-level channel use.

By using 0-level channel it of distribution the SPM is able to capture local market. But if it uses1-level distribution channel it will be able to capture markets at other places too. E.g. Right now they are planning to go to Goa as they see a very good opportunity over there. But in case they have had 1-level distribution channel it would help them to expand their market earn more as well as save their personal time and expenses fort traveling frequently to distant places. SALE PROCEDURE / HOW CUSTOMER ORDER ARE PROCESSED: Generally, Sachin paper mill majority of the orders are received through phone, fax, e-mail. Sometimes the customers do visit the mill to place their orders. Customers give all the details of the quantity, quality, colour, weight, and size etc. required. All these details required by the customer are register in the order book along with his name. The details of customer’s order are also considered while delivering product to the customer. This order is then given to the programming department, where it is decided that on which day which order is to be processed. The size is also set there only. Then this 53

whole program is given to production department to produce the final product. The order is completed within 3 to 7 days. Sometimes if the order is urgent it is also completed in 1 day. The customer is not dissatisfied about quality of their product. They are taken well care about new customers.

Some of the important consumers name is bellow whose order is more than the others.

List of some customers of Sachin paper mill

1. Siddhi Packaging 2. Sai Lamination 3. Jayesh Packaging

DETAILS OF COMPETITORS / GENETIC LEVEL OF COMPETITION : Generally, there are no close competitors of Sachin paper mill in the same area. So Sachin paper mill can cover entire the local market well enough. But there are some paper mills in different areas, which are proved as competitors. This all competitors are in small and make different product. The level of competition can be lower in the same regions, but it may be high in different regions. Name of the competitors; 1. HariOm paper Mill

Dastan Fatak, Gangadhara, Surat - Bardoli Road. Dist. - SURAT. 2. Akshat paper Mill

Mahuwa, Dist. - SURAT. 54

COMPARISON OF 4Ps

The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. Marketing mix consist of 4Ps are price, promotion, product, and place. Here is diagram of 4ps.

MARKETING MIX

P ro d u c t

P r ic e

P r o m o t io n

Product Quality

List Price

Sales Promotion

Locations

Quality

Discounts

Advertising

Assortments

Design

Allowances

Sales Force

Coverage

Features

Payment Period

Public Relations

Channels

Brand Name

Credit terms

Direct Marketing

Inventory

Packaging

Transport

Sizes Services Warranties Returns 55

The 4Ps represent the seller’s view of the marketing tools available for influencing buyers. From a buyer’s point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the sellers 4Ps correspond to the customers 4Cs. 4Ps

4Cs

Product

customer solution

Price

customer cost

Place

convenience

Promotion

communication

The product manufactured by Sachin Paper Mill does not vary from the quality asked by the customer. GSM does not vary. The company also temporarily pays Octroi and freight. This facility provides the customer with the credit on the purchase as well as on government charges like freight and Octroi. They have their own tempos so that they can deliver the product to the customer any time. There are no warranties and returns in this product. The price of the mg Kraft paper produced by Sachin paper mill is the highest compared to their competitors. Though its price is highest the quality is also the best. They give discounts for early payments. Payment period is generally 30-45 days. There is no need felt by the company for promotion of its product as orders are received on their own. But sometimes when there is slack period, it does use some promotion techniques. Sachin paper mill is located in Sachin Udyognagar. The mill is near to the customer as well as to the raw material market. So the transportation cost of bringing the raw material and delivering the finish good is also has as compared to their competitors...

56

FORCASTING AND SALES PREPARATION:

Here, Sachin paper mills’ Production depends upon the textile industry. The main customer of MG Kraft paper is the whole textile market. So the marketing department forecast the demand of Graft paper by keeping in mind the situation of textile market. Like in the month of May and June the textile business generally remain weak in that time the sale of Sachin paper mill also remain low. At the same time in the month of August to November the textile business increases at that time the sale of Sachin paper mill also remain high. Having complete information of future demand well in advance the management can make planning of buying the raw material at a cheap rate and also make maintenance planning to avoid machine break down in season. They take good care about the price of the material. They buy material at very cheapest price.

PRICING POLICIES: Sachin paper mill has some pricing policies. There are some points which the directors of Sachin paper mills are keep in mind while making of pricing policies.

•

Then directors discuss about the factor which effect on demand of Graft paper, like market situation of textile business. Sometimes they also analyze past price and quantity sold on that price.

•

The main objective of any organization is to get maximum profit. All the directors weather to get maximum profit or to get maximum market share.

•

Then directors have to estimate the cost of raw material like waste paper, coal, colour chemicals and some variable cost like labour, salary etc.

•

Then directors make a price range and compare it with the competitors.

57

At last from the above discussion the directors decide the best price for their product. This price is beneficial for organization as well as customers. PROMOTION AND ADVERTISING POLICIES: Sachin paper mill is a private limited company. Their customers are very satisfied with the product and the services they provide. And we know that best advertising is done by satisfied customer. Most of the time, their customer themselves are advertising about the product in their business circle. No other advertising policy is followed by such, because they never felt the need of doing so. For promoting their product, they make use of customer direct channels to reach and deliver goods and services to the coauthor without using any middlemen. These channels include telephones and faxes. Generally they receive orders in abundance, but doing slack season they call upon to their customer and ask them to replace thief order. They try to tempt them by saying that production 0of so-so paper is going on and if they place their orders soon then they will get prompt delivery or else they will have wait for 4-5 days to get the delivery. E.g. During our summer training, we found that during first week of May. There were quite a few orders with company. They called up to their customers and ask them to give their orders by tempting them as they are very busy and if they give their orders now they will get delivery soon. This type of direct marketing helps them to build continuous relationship with each customer and also make their offers and strategies less visible to their competitors. Also they provide the booklet containing samples of their varieties of paper to their customers. TAXES APPLICABLE ON SALE ACVTIVITY In every business it is necessary to pay taxes. By paying taxes, we do not help government in fact we help ourselves because the government use these money for our development only. Sachin paper mills pay all kind of tax during the production and take proper care of the records. They have to pay various taxes like VAT, EXCISE DUTY, EDUCATION TAX, SECONDARY EDUCATION TAX etc.

58

Sachin paper mill have to pay 4 % Sales Tax and 8% Excise Duty.

CONTROL AND REPORTING SYSTEM In every company, sales staff should be properly organized. If sales staff is not proper and not well organized the company has to lose their customers. This situation leads the industry in darkness. It means their loyalty towards customer, goodwill, market prices of their shares may be lost. Sachin paper mill is small unit. That’s why in every department they have put camera to see what kind of activity worker is doing. In every department, they have two managers in production department manager’s name is sunilbhai who is in charge of this department. Sachin paper mill has well organized sales staff. In sales staff, they have sales in charge and two helpers under sales in charge. If any new customer arises then sales in charge provide them full information about the product, price, delivery dates, payment dates, terms and conditions. Some regular and big customers make direct contact with directors. First of all customer came and place their order then sales in charge give the report to the assistant manager of production department about the quality and quantity of the paper. The sales in charge have to provide order to the customer on given delivery date. He also controls the due dates of payment.

59

60

FINANCE INDEX

No

Particulars

p.g no

1

CLASSIFICATION OF COSTS :

60

2

ACCOUNTING POLICIES :

61

3

CAPITAL STRUCTURE OF SACHIN PAPER MILL

62

4

WORKING CAPITAL MANAGEMENT

64

5

INTERNAL AUDIT POLICIES & FINANCIAL CONTROL SYSTEM

65

6

METHOD TO CALCULATE DEPRECIATION

66

7

STATEMENT OF DEPRECIATION

67

8

TREND ANALYSIS

68

9

RAW MATERIAL DETAILS

69

10

BALANCESHEET

70

11

PROFIT AND LOSS ACCOUNT

71

12

RATIOS

72

61

FINANCE & ACCOUNTS

CLASSIFICATION OF COSTS :

Material Cost: Ascertainment of material cost is fundamental important in any cost accounting system. This is because of the fact that material cost constitutes the large member of cases, the most important element of cost. It is depend upon not merely on the purchase price of the material but also there issue price. The purchase price of the material knows from the invoice.

Labour Cost: Wages of the worker constitutes the second important element of cost. labour is also distinguish as direct and indirect. All labour engages in the production of work order or job is direct in nature. These costs are direct labor cost, like wages paid to machine operator. Indirect wages are paid to workers who are not engage directly in the work of converting material in the finished product. Salaries and wages are supervisory staff for instance, constitutes in indirect wages. Direct & Indirect Cost: The total cost of finished product is made up of prime costs and overhead. While prime cost is sum of direct material, direct labor and direct expenses and overhead comprises all indirect costs it is made of indirect material, indirect labor and indirect expenses.

62

ACCOUNTING POLICIES : Following accounting policies has been followed in presentation and preparation of financial statement.

(a) Basis of Accounting: Accrual basis of accounting

has been

followed in preparation

&

presentation of financial statement .

(b) Fixed Assets: Fixed Assets are stated at cost

of acquisition including installation /

incidental cost, wherever applicable.

(c) Depreciation: Depreciation on depreciable fixed assets has been provided at the rates and in the manner prescribed in schedule 15 to. The companies Act, 1956 under written down value method basis considering single shift working, wherever applicable .

(d) Investment: Investments are stated at cost of acquisition including acquisition / transfer cost, if any.

(e) Revenue reorganization: Sales have been recognized as and, when signification risk reward of ownership

&

has been transferred to the buyer. Sales have

been accounted net of excise duty, sales tax & other taxes. Otherincome has been recognized on accrual basis.

( f )Inventories : 63

(a) Finished Goods: Finished goods have been valued at net realizable value,

cost or

whichever IS lower on FIFO Method basis.

(b) Raw Materials & Other Stores: Raw "materials and Other Stores

&

Spares have been valued at cost on FIFO method basis.

(g) Taxation: Deferred lax assets resulting from brought forward losses has not been recognized in absence of virtual

certainty created by supported

convincing evidence that sufficient future taxable income which arises against which the asset can be set off.

(h) Retirement Benefits: Company's contribution to provident fund & other fund have been charged to Profit & Loss Account.No provision for gratuity has been made as it has not accruedtill date.

(1) Borrowing Cost: Borrowing cost other than directly attributable to acquisition or construction of qualifying assets has been charged to Profit & Loss Account. The rebate available on loan is accounted for on cash basis.

(j) Miscellaneous Expenditure: Miscellaneous expenditure has been written off over period of ten years.

64

CAPITAL STRUCTURE OF SACHIN PAPER MILL :

Authorized

2008-2009

2007-2008

30000000

30000000

Fully Paid-Up

29000000

29000000

Total

29000000

29000000

3000000 Equity shares of Rs. 10/-each

Issued, Subscribed and Paid–Up

2900000 Equity shares of Rs. 10/-each

It is a private limited. So hear we can see only a total equity share capital.

Capital structure during the year (Amount in Rs. Thousands) Public issue -------- NIL Bonus issue --------- NIL Rights issue --------- NIL Private Placement --------- NIL

65

WORKING CAPITAL MANAGEMENT:

“Working capital refers to that part of capital which is not tied up in fixed assets but is used to meet the day-to-day requirements of business.” Working capital signifies money required for day-to-day operation of an organization. No business can run without the provision of adequate working capital. The requirement of working capital may differ from organization to organization.

Formula to calculate Operation Cycle is OP = R + W +F + D – C

1) Raw Material Storage period R = Average stock of raw material / Average raw material consumption per day. = 15 Days

2) Finished Goods Storage period F = Average finished stock inventory / Average cost of goods sold. = 1 Day

3) Debtors Collection period D = Average debtors / Average credit sales per day = 36 Days

(4) Creditors Payment period C = Average creditors / Average credit purchases per day 66

= 20 Days Operating Cycle = R + F + D – C = 15 +1 +36 – 20 = 32 Days

INTERNAL AUDIT POLICIES & FINANCIAL CONTROL SYSTEM :

Internal audit system is very important for any industry. By the audit, management can know where the industry stands. This is the best way to control and remove difficulties. Audit is an evaluation of policies, procedures and practices in all phases of a business. The object of audit is to report on financial position of undertaking as disclosed by its balance sheet and the profit and loss account. The balance sheet and profit and loss account of Sachin paper mill is audited every year at the end of the March. An audit of Sachin paper mill is conducted in accordance with auditing standards generally accepted in India. Audit is planned and performed to obtain reasonable assurance about weather the financial statements are free or material misstatement. An audit includes examining on test basis evidence supporting the amount and disclosure in the financial statement. An audit above includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. Here auditing is done half yearly. The balance sheet and profit and loss account comply with the accounting standards referred to in subsection 3C of section 211 of the company’s Act 1956. Balance Sheet of Sachin Paper Mill Pvt. Ltd. have audited by:-

Sethia and Bohra associates Chartered accountants 501, HiraPanna Market, 67

Ring Road, Surat.

Types of Payment to Audits

CURRENT

PREVIOUS

YEAR

YEAR

Audit Fees

15000

15000

Tax Audit Fess

5000

5000

Other Matters

5000

5000

Service Tax

3090

3060

METHOD TO CALCULATE DEPRECIATION : Each asset in the business has its own useful life. The main base of such useful life depends upon the period for which the asset can be used. Because of the usage of the asset the working capacity of it is decreasing continuously and therefore the utility price of the asset. The useful value of the asset will also decrease because of the factors like passage of time, new inventories etc. The reduction in the useful value of any asset is known as depreciation. With reference to above, depreciation can be understood as the amount to be written off, out of the cost price and asset during its useful life is known as depreciation.

DEFINITION : According to Carter, “Gradual and permanent reduction in price of the asset is known as depreciation.” According to Spicer and Pegler, “Depreciation is a measurement of the reduction in the effective life of the asset due to certain reason during the given period of time.

68

In Sachin paper mill, depreciation has been provided according to the Company’s Act 1956 considering Written down value method (W.D.V.) using single working in respect of plant and machineries. It means every year, the value of asset can be decrease. For other assets depreciation is provided according to rates prescribed in Schedule VI of Company’s Act 1956. In case of addition during the year depreciation is provided on private basis

Statement of Depreciation for the year ended on 31/03/2009

Sr.

Block of

Rate of

Bal. On

No.

Asset

Deprecia

1/4/2008

1

Staff

tion. 10%

31089

2

Quarter Factory

10%

3

Building Plant &

4

Depreciatio

Bal. On

n.

31/3/2009

0

3109

27980

3482727

0

348273

3134454

15%

4812709

3146990

1156629

6803070

Machinery Office

10%

19394

0

1939

17455

5 6 7

Equipment Shop Computer Fax

5% 60% 15%

225492 774 17615

0 0 0

11275 464 2642

214217 310 14973

8

Machine Electric

15%

795036

0

119255

675781

9 10

Installation Land Vehicles

00 15%

350000 105413

0 723503

00 124337

3500000 704579

11

(NFW) Vehicles

15%

0

45831

6875

38956

12

(TW) Vehicles

15%

1250098

0

187515

1062583

13

(FW) WiP-

0%

352714

434668

119255

675781

10

(building) Total

11217569

Addition

4350992

1951038

13617523

TREND ANALYSIS :

69

Particular

2007-08

2008-09

Amount

Amount

Sales

87121896

133167320

Administrative

1813783

1561423

967361

843469

Current liability

10538980

13670488

Selling ex.

461578

1029329

ex. Profit before tax

Quantitative details in respect of quantities: (1)

Licensed Capacity: Not Applicable

70

(2) Installed Capacity: 30 Metric Tones per Day (P. Y. 30 Metric Tones per Day) (3) Actual Production: Kraft Paper 9058100 Kgs. (P. Y. 615345 Kgs.) Particulars

Unit

Quantity

Amount(in Rs.)

Current Year

Previous Year

Current Year

Previous Year

9488265

7035302

133167320

87121896

Turnover Kgs. Kraft Paper Purchases Kgs.

9488265

7035302

61271540

33441942

Kgs

194828 706848

263584 1269612

3127052 5209332

3426592 4301474

Kgs. Kgs.

79249 348930

194828 706848

1089677 2408223

3127052 5209332

Kgs.

9846185

7598066#

64072649

32534084

Kgs.

788085

501237

WastePaper Opening Stock • •

Kraft Paper Waste Paper

Kgs..

Closing Stock • K raft Paper • Waste Paper Consumption:

Waste Paper Shortage: WastePaper Kraft Paper

SACHIN PAPER MILLS PRIVATE LIMITED BALANCESHEET AS AT 31 ST MARCH2008: 71

NO

PARTICULARS

1

Shareholder’s funds

CURRENTYEAR

PREVIOUS YEAR

2

II

•

Share capital

•

Share application money

Loan funds • Secured loans

29000000

29000000

11675000 Total 40675000

8800000 37800000

19616608 Total 19616608

21312502 21312502

Application of funds: 1. Fixed assets Gross block less: depreciation Net block (Total) Work in progress Net block 2. Investments 3. Current assets, loans &advances • Inventories • Sundry debtors • Cash & bank balances • Loans & advances Less Total Current liabilities & provisions • Liabilities • Provisions Net current assets P&L A/C

41561886 27121552 14440334 14440334 505100

36973615 25434566 11539043 352714 11891763 505100

8647900 25792361 387265 5595767 40423293

11707384 15208913 370451 10568674 37855422

13670488 115000 26637805 18708369 Total 60261608

10538980 35000 27281442 19434197 59112502

SACHIN PAPER MILLS PRIVATE LIMITED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2008 No Particulars Current year Previous year A INCOMES •

Sales

133,167,320

87,121,896

•

Increase/(Decrease) in Finished Stock Other Income-Total Other Income-Total

2,037,375

299,540

1,110,968

582,418

132,240,913

87,404,774

• Total

72

B

EXPENDITURES •

Consumption of Raw Material

75,509,339

41,156,198

•

Manufacturing and Other Direct Expenses

48,818,900

41,432,975

•

Administrative Expenses

1,561,423

1,813,783

•

Financial Expenses

2,427,967

1,706,268

•

Selling & Distribution Expenses

1,029,329

461,578

•

Depreciation

2,050,486

1,801,333

131,397,444

88,372,135

843,469

(967,361)

Total A-B

Profit/(loss) Profit/(Loss) Before Taxation Less: Tax Expense •

Current

85,000

•

Fringe Benefit Tax

30,000

35,000

•

Deferred

-

-

•

Short/(Excess) Provision of Income Tax

2,641

18,202

Total

725,828

1,020,563

Balance B/F from Previous Year

(19,434,197)

(18,413,634)

(18,708,369)

(19,434,197)

2,900,000

2,900,000

Total Weighted Average Number of Equity Shares of Rs. 10/ each outstanding during the year

RATIOS

NO

PARTICULARS

2008-2009

2007-2008

73

1

Current Ratio:--

Current Ratio = Assets

Current Current

Liabilities

2.96

IN 2008-2009 = 40423293 136704

3.59

88 IN 2007-2008 =

37855422 10538

980 2

Quick Ratio

Quick Ratio =

Quick Assets Current

Liabilities IN 2008-2009 = 31775393

2.32

13,670, 488 1.11

IN 2007-2008 =

11707384 10,538,9

80

74

NO

PARTICULARS

2008-

2007-

2009

2008

3 Capital gearing ratio

Capital gearing ratio = fixed int. or dividend bearing Share holders’ fund 0.48

IN 2008-2009

=

IN 2007-2008 =

19616608 40675000 0.56

21312502 37800000

4 Debt Equity ratio

Debt Ratio =

Total Debt Share holders’ fund

IN 2008-2009 =

19616608 40675000

0.48

IN 2007-2008 = 21312502 37800000

NO

PARTICULARS

0.56

2008-

2007-

2009

2008 75

5

Gross profit ratio:

Gross Profit ratio = *100

Gross Profit Net Sales

IN 2008-2009 =

7240706 *100 133167320

5.44%

4.86%

IN 2007-2008 = 4230983 *100 133167320 6

Net profit ratio

Net Profit ratio = Tax * 100

Profit after Sales

IN 2008-2009 =

843469 *100 133167320

0.63

1.11

IN 2007-2008 =

NO

967361 *100 49384026

PARTICULARS (ACTIVITY RATIO)

2008-

2007-

2009

2008

76

7

Debtor’s turnover ratio Debtors Turnover Ratio = Sales

Credit Average

Debtors 5.16

In 2008-2009 =

133167320 25792361 5.72

IN 2007-2008 = 87121896 15208913

8

debtors conversion period 365

=

DTOR 70

NO

In 2008-2009

= 365 5.16

IN 2007-2008

= 365 5.72

PARTICULARS (ACTIVITY RATIO)

days 63 days

2008-

2007-

2009

2008

77

9

Creditors Turnover Ratio

Creditors Turnover Ratio = Credit Purchases Average Creditors

5.52

In 2008-2009 = 75509339 136 70488

3.89

IN 2007-2008 = 41156198 105 68674 Note: creditors are not given so we take creditor as a liability.

78

79

HUMAN RESOURCE MANAGEMENT:

NO

PARTICULAR

P.g. NO.

1

INTRODUCTION:

79

2

DEFINATION

79

3

HUMAN RESOURCE PLANNING

82

4

RECUITMENT

83

5

SELECTION

87

6

JOB DESCRIPTION AND JOB SPECIFICATION

90

7

PERFORMANCE APPRAISAL

91

8

PROMOTION, DEMOTION AND INCREMENT

91

9

POLICIES WELFARE

92

10

HUMAN RESOURCE INFORMATION SYSTEM

93

11

TRAINING

94

12

WAGES AND SALARY

94

13

INCENTIVE PLANS

94

80

Human resources Management INTRODUCTION: -

Organizations are not only the building, machineries or inventories. They are people who run and operate organization. "Managing people is the heart and essence of being a manager." Human resource management involves the application of management functions and principles to acquire, develop, maintain and remunerate employees in the organization. Personnel function covers all levels of personnel including not only blue collared employees like craft men, foremen, operatives and labours but also white collared employees like professional, technical, kindred workers, managers, officials and proprietors, clerical workers and sales workers.

DEFINATION: -

"Personnel management is planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished.

81

Departmentation in Sachin paper mill is done according to the work. In total there are seven departments.

Departmentation

The basic purpose of departmentalization is to make the size of each departmental unit manageable and to secure advantage of specialization. Departmentation is the delegation of responsibility in which each and every individual is responsible for his or her performance. Because of departmation each and every big organization divides in individual flexible administrative units, which help to personnel to facilitate administrative control.

Purchase: In purchase department they handle all kind of purchase activity like purchasing of POY tubes, wastage materials, Kraft paper, etc. It includes raw material, electrical parts, machinery parts, coal, diesel for generator etc.

82

Production: In this department the production manager has to look after quality of the finished good as per the requirement of the customer, also to minimize the cost.

Personnel function: The personnel manager keeps the record of the employees. Here employees are hired on contract loading unloading. In plant unit there are permanent employees .

Sales: The function of sales department is to generate sales and to keep records of sales

Finance: The function of finance department is keep records of accounts therefore no misappropriation can be done.

Electrical and Mechanical:If any electrical or mechanical problem arises then this is the duty of the in charge of these departments to seek them out.

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HUMAN RESOURCE PLANNING DEFINITION It is a process of forecasting, developing and controlling human resource in an enterprise to ensure that it has right no. and right kind of people at right place and right time, performing task to meet individual and organizational goals. '

Human resource planning in Sachin paper mill: Sachin paper mill is established in 1996, at times they calculate a total manpower required in different department. And SACHIN paper mill having a continuous production plan with 24 hour and 365 working days. So they divide worker working in three shifts each having a 8 hour {6 am to 2 pm to 10 pm and, 10 pm to 6 am} The directors then differentiated the workers required as skilled, unskilled. They then decided the required educational qualifications, skills, experience and responsibilities of each and every worker, foremen, manager and assistance manager needed for the job. Finally they decided to hire unskilled worker on contract basis as well as some of them on fixed salary.

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RECUITMENT:

DEFINATION: Recruitment is the process of identifying the sources of potential employees and encouraging them to apply for jobs in the organization. According to McFarland, "The term recruitment applies to the process of attracting potential employees to the company". In other word recruitment is the process of hired right person at right job. The directors then differentiated the workers required as skilled, unskilled. They then decided the required educational qualifications, skills, experience and responsibilities of each and every worker, foremen, manager and assistance manager needed for the job. Finally they decided to hire unskilled worker on contract basis as well as some of them on fixed salary.

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Steps of recruitment process

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STEPS OF RECRUITMENT IN SACHIN PAPER MILL: Every organization work with different policies. Sachin paper mill also having a different Recruitment policy.

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1. Find out employee need: Recruitment process only starts when organization has a heavy load of work; crises of worker, when organization is expand. There is a vacancy in a particular department or some employee left the job, this time organization recruit the employee

2. Check the alternative: In Sachin paper mill manager has checks stable person, who can do other work along with his work. This is the source of internal recruitment. Or hired from outside it means a external source of recruitment. These situations only arise when employees are absent.

3. Select the alternative Now the management analysis the alternative and select the most efficient alternative to perform the work. They mostly try to recruit most internal source as it improve the moral of employees. And the growth of organization

4. Employee selection: After selection of the alternative they prepare a list of people, which they can select a person which are already doing work in organization and also select the person out of the organization.

5. Check the performance: Manager check the performance of employee, mostly manager must know a internal recruit person so they check a performance of a externally recruit employees

6. Evaluation: After

evaluating

the

whole

process,

manager

never

recruit

a

wrong

employee for the job.

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SELECTION Selection is the process of picking individuals with requisite qualifications and competence to fill jobs in the organization.

DEFINATION: "It is the process of differentiating between applicants in order to identify those with a greater likelihood of success in a job." Recruitment is said to be positive in its approach as it seeks to attract as many candidates as possible. Selection is negative in its application as it’s seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates.

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STEPS IN SELECTON IN SACHIN PAPER MILL: In sachin paper mill there is a very dimple selection process. Selection process of sachin paper mill are as follows.

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1. Application received { employee received} It is the first step of selection process. In the meaning of application received, in Sachin paper mill mostly employees are recommended by other and they select those person which a bought by a present employee. 2. Interview It is the second steps of a production process. In Sachin paper mill employee is mostly a recommended so there is no need to take a selection test, screening the applicant temporary selection. In Sachin paper mill it is the major part of a selection process. 3. selection : After application received and interview as mentioned above organization select an employee and directly recruit for a job

JOB DESCRIPTION AND JOB SPECIFICATION There is no need for job description and job specification in Sachin paper mill because the majority of workers are from the same industry so they are aware of the kind of work they have to perform. If a worker is new to the industry then he is kept under the guidance of well-trained employee.

PERFORMANCE APPRAISAL "Performance appraisal is formal structured system of measuring and evaluating an employee’s job related to behavior and outcomes to discover how and why the employee is presently performing on the job and how an employee can perform more efficiently in the future so that the employee organization and society all benefit."

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Performance is measured against factors as: job knowledge, quality and quantity of output, initiative, leadership ability, dependability, co-operation, decision-making, versatility, and health.

PERFORMANCE APPRAISAL IN SACHIN PAPER MILL: The Performance appraisal process in Sachin paper mill is very informal. They don't follow particular criteria to analysis the employee's Performance. In Sachin paper mill performance should be check on the basis of a record of an employee. This record such as attendance sheet, working hour report behavior with other employees etc. While conducting the above process they try to gather information, which would help them to decide whether to promote or to demote the worker. PROMOTION, DEMOTION AND INCREMENT POLICIES

Definition Promotion may be defined as an increase in pay, prestige, position in the organization or out of the organization. Promotion is motivating the employee to do better work in organization, and improve his or her work ability to get a promotion. Promotion may also useful to increase the prestige of organization.

Importance of promotion: • To motivate employees to higher productivity. • To attract and retain the services of qualified and competent people. • To increase the effectiveness of the employee and of the organization’s • To fill up higher vacancies from within the organization. • To increase the position and prestige of an organization.

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WELFARE

DEFINATION Labour welfare is a term, which must necessarily be elastic, bearing a somewhat different interpretation in one country from another, according to the different social customers, the degree of industrialization and educational level of the workers.

WELF ARE ACTIVITIES IN SACHIN PAPER MILL

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Cleanliness and safety is ensured for the workers in the workplace

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They provide a better physical enviournment to employee.

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Safety equipments like gloves, helmet, first aid equipment etc.

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There is a good facility for urinals, washbasins, and bathroom.

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They provide a onetime meal for each worker

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Paper mill give a housing facilities to his employee which is in the campus of organization.

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The company bears rent for the houses, water bill, and light bill, maintenance charges.

•

Sachin paper mill having a continuous production process so there is no holidays given. Normally holidays are granted on big festival like DIWALI, HOLI etc. if worker is absent on other day it’s on his own risk.

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HUMAN RESOURCE INFORMATION SYSTEM A Human Resource Information System is a systematic procedure for collecting, storing, maintaining, retrieving and validating data needed by an organization about its human resources. Every organization must have a human resource information system. Sachin paper mill do HRIS on the basis of the record of an employees and on the other employees feedback. In Sachin paper mill they keep the records in file in written form and a prepare a employment card which is given below.

Name Address Date of birth Date of joining mill Two photo Shift of employee

Hear shift of employee should be changed. If shift may change, employment card also change.

Attendance record Attendance record is also a important data to maintain HRIS properly.

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Training: Definition Training may be defined as a process of improving a skills, knowledge and attitude of an employee for a particular job. Sachin paper mill is a continuous system so there is no need to updating new machines. The present employees are a well trained and full of skills so there is no need to training. In the case if a new employee the existing employee can trained for particular job.

Wage and salary: Definition Wage and salary can be defined as a basic or a primary return as a worker refuse for his contribution in the company. Wage and salary refers to the establishment and implementation of sound policy and practice for employee compensation. Different organization has a different wage and salary compensation policy. Sachin paper mill have his own salary structure. In Sachin paper mill give a satisfactory salary on the basis of job position. (They not give us a statement of a employee salary). Sachin paper mill also gives an occasionally bonus.

Incentive plan Incentive means an extra pay in a salary. Incentive refers a both primary and secondary too.

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It is not compulsory to have incentive plan for the all organization. Sachin paper mill not having an incentive plan & and no planning to take action in future.

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