AN

INDUSTRIAL TRAINING REPORT

UNDERGONE AT

PREPARED BY: GUIDED BY:

PAVSIYA CHINTAN B. MR.SHAHEZAD BODILA

S.Y.B.B.A. LECTURER

+91 9277503367

SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT

BHAVNAGER UNIVERSITY

BHAVNAGAR

BATCH: 2009-2012

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PREPARED BY GUIDED BY

PAVSIYA CHINTAN B. SHAHEZAD BODILA

S.Y B.B.A (LECTURER)

ROLL:-NO:-145

+91 9277503367

SWAMI SAHAJANAND COLLAGE OF COMMERCE & MANAGMENT

BHAVNAGER UNIVERSITY

BHAVNAGAR

ACADEMIC YEAR 2009-2012

CANDIDATE’S STATEMENT

I undersign PAVSIYA CHINTAN.B the student of S.Y.B.B.A hereby declare

the project work presented in this report in my own work and has carried it out

under the guidance of SHAHEZAD BODILA of SWAMI SAHAJANAND

COLLEGE OF COMMERCE AND MANAGEMENT the data contain in the project

report is authentic and not copied from any project report.

DATE:…………. SIGNATURE:……………..

PLACE:-BHAVNAGAR (PAVSIYA CHINTAN B)

.

PREFACE

B.B.A is management course and as a part of S.Y.B.B.A. I am student S.Y.B.B.A

of SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT

BHAVNAGAR. The main objective behind this is to get practical knowledge about

industry and environment. Now I can say confidently that this report will be

inclined my practical knowledge and improve my not only managerial skills but

also personal skills.

As a part of the curriculum the industrial training was to be taken in an

industry and a report was to be prepared the report basically comprises of :-

General information and history

Human resource department

Marketing department

Finance department

According to our syllabus prescribed by BHAVNAGAR UNIVERSITY, I have

finished my practical study. With a great zeal and gaiety, I put this report before

you. I have presented information of four subjects according to S.Y.B.B.A.

syllabus. this report is the reflect of which I have tried my level best to present

information regarding NAVBHARAT.

For this purpose I had visited NAVBHARAT STEEL RE- ROLLING MILL

Bhavnagar- Rajkot highway, sihor. Bhavnagar.

ACKNOWLEDGEMENT

The phenomenon remains same that no project report ever can be executed

proficiently and efficiently without sharing the meticulous ideas managerial

expertise and innovative thought put forwards by the managerial and non

managerial veterans by the managerial veterans.

Knowledge in itself is a continuous process at this moment of my substain

encasement. I ready find enough words to expressed my gratitude towards those

who were constantly involve with me during my project report. I would like to

place on records my grateful thanks to people who have help me through the

successful competitions of my project report.

In this regard first of all I would like express deep gratitude to our college trust

managing directors Dr. SURESHBHAI SAVANI and principal Miss. HETALBEN

MEHTA and B.B.A coordinator Mrs. POOJABEN MEHTA and SHAHEZAD

BODILA for sharing their precious knowledge with me and helpful to me.

I would like to thanks AJAYSINH SARVAIYA of NAVBHARAT STEEL RE-

RONG MILL who give us the permission of training in NAVBHARAT STEEL RE-

ROLLING MILL and all the other staff members who have been helpful to us

either directly or indirectly.

I am thankful to all the other faculties of my ssccm college for providing me

support either directly or indirectly.

The practical knowledge which is necessary in this world which I got through

this project report by studying B.B.A in such a good ssccm.

DATE: NAME:-PAVSIYA CHINTAN B.

PLACE:-BHAVNAGAR. SIGN:-

INDEX

SR. NO PARTICULAR PAGE NO.

1 GENERAL INFORMATION 1-12

2 HUMAN RESOURCE MANAGEMENT 13-35

3 MARKETING MANAGEMENT 36-46

4 FINANCE MANAGEMENT 47-62

5 BIBLIOGRAPHY 63.

CONTENT

NO PARTICULAR PAGE NO

1 INTRODUCTION 1-2

2 HISTORY OF THE COMPANY 3

3 PROFILE OF THE COMPPANY 4

4 SIZE OF THE UNIT 5

5 FORM OF THE ORGANIZATION 6

6 MENUFACTURE PROCESS 7-8

7 ORGANIZATION STRUCTURE OF THE

UNIT

9-10

8 TIME KEEPING SYSTEM 11

9 INDUSTRIAL CONTRIBUTION OF THE

UNIT

12

INTRODUCTION

I have completed my industrial training In NAVBHARAT, for the

practical knowledge as part of management and general information of industry, in

that HUMAN RESOURCE MANAGEMENT, MARKETING MANAGEMENT,

FINANCE MANAGEMENT.

A rolling mill is a machine for factory for shaping metal by passing it

between rollers. Rolling mills are often incorporated into integrated steel works, but

also exist as separate plants and can be used for other materials.

Rolling mills historical have been of several kinds.

A slitting mill was used to cut flat bar iron into rods for nall marking.

From the industrial resolution, peddled iron, after consolidation with a

powered hammer , was rolled into bar iron using a rolling mill with grooved

rolls, the droves provided were progressively smaller, so that on successive

of the bar became smaller and the bar itself longer. By designing the rolls

appropriately, it is possible to obtain iron or steel with and railway rails,

electrics and steels are normally used in every industrial unit but iron is also

very important and necessary in industrial unit.

The main products of the companies are.

1- M.S.Flat bar.

2- M.S.Angle bar.

3- M.S.Round bar.

4- M.S.Square bar.

-1-

-2-

HISTORY & DEVELOPMENT OF THE UNIT

The history of NAVBHARAT defines that how it progressed and how it got

success.

NAVBHARAT STEEL RE-ROLLING MILL Established in the year 1994

having the purpose to manufacturing various products of steel bars. The

production of the company has started with the help of single rolling mill is that

with 7 stands with and also with well furnished.

Then, in the year, 1999-2000 company has installed another set of

machinery with further develop with the production of M.S. Angle, M.S. Flat,

Square and Round Bar and also produce various sizes bars like 6, 8, 10, 12, and

16. Initially production of the unit was 4000 increased capacity the company has

got ISI mark and ISO 9001-2000 certificates.

-3-

FORMATION OF THE COMPANY

Company Name : - NAVBHARAT STEEL RE-ROLLING MILL

Address : - Survey No:-268/1

Rajkot-Bhavnagar highway

Sihor-364240

Dist. Bhavnagar-(guj)

Office : - 12, sagardeep, lokhand bazaar

Bhavnagar.

Managing director :- Mr.Bhagirathsinh G. sarvaiya

Promoter of the company: - Mr.Bhagirathsinh G. sarvaiya

Manager : - Mr.Ajaysinh

Banker : - state bank of India

E-mail add : - Navbharatsteel@gmail.com

Web site : - www.navbharatsteel.com

Auditors of company: - V.M.Shah & co. Bhavnagar.

Establishment year : - 1994

Accounting year : - 1st April to 31stMarrch

-4-

SIZE OF THE UNIT

Size of the unit means, how much the investment of company and how

much the turnover is. According to Indian government rules or say policy, this is

recognizing by the government.

THERE ARE MAINLY 3 TYPES (SCALE) OF INDUSTRIES:-

1. SMALL SCALE: -Investment is up to Rs. 1 to 5 corers.

2. MEDIUM SCALE: - Investment is between Rs. 5 to 10 corers.

3. LARGE SCALE: -Investment is more than Rs. 10 corers.

According to India government rules NAVBHARAT STEEL RE-

ROLLING MILL is small scale industry, because the investment is of

Rs.40 lacks. Small scale industry plays a vital role in the country‟s

economy.

-5-

FORM OF ORGANISATION

There are various types of organization structures

are as under:-

Sole proprietorship:- only one owner

Partnership:- minimum 2 & maximum 20

Joint stock company:- artificial person created for carrying

one some business by an association of person

Co-operative organization:-minimum 2 & maximum 10

Government department:-public undertaking that is directly

under the control of the minister

Public corporation :- public corporation is a form of

organization established for public welfare

Government company:- Gov. Company is a company

where in 51% of shares held by the central government and

a state government jointly.

Form of organization means weather the company is sole

proprietor firm or partnership firm. Here NAVBHARAT is a

partnership firm. The reason to choose the partnership firm is

the investment is not to be done by only the single person and

also an idea is not of the one person.

According to Indian partnership Act.1932

“Where two or more persons make an agreement to

start a business & share profits & loss of the business can

stated as partnership firm.

-6-

MANUFACTURING PROCESS

Manufacturing process means in what way the product is

to be produce:-

The most time raw material comes from along ship

breaking yard. Generally production process should be short, fair and

speedy, because cost, price, and quality are depend upon the production

process and technology. Therefore, manufacturing process is an

important factor and plays vital role for profitability of firm.

NAVBHARAT is producing items like M. S. Flat bar,

M. S. square, M. S. round bar, M. S. angle bar, so the manufacturing

process should not be very slow. The company is making this type of

product at different size like 6, 8, 12, 16, 18 gage etc according to the

demand.

The company NAVBHARAT is produces. So, they use different

ingredients for different products the whole process of the company may

be classified in following stages:

MANUFACTURING PROCESS CHART

Raw material

(M.S.Billets / M.S.Ingots, M.S.Bars)

↓

Breaking in required size

↓

Pieces of billets & ingots heated in furnace at require temperature.

(Furnace heating by coal)

↓

Hot pieces of metal entered in to rolling mill stand.

↓

After passing hot pieces through rolling mill stand

↓

For Achieving Final product

(Final products = M.S.Angle, M.S. Flats, Square bar, Round bar, etc.)

-7-

EXPLANATION OF MANUFACTURING PROCESS

1) we are producer of angle, flats, round & square , etc

2) M.S. Billets is IS: 2830 is over basic Raw Material.

3) Purchased M.S. Billets are bracken into required sizes with help

of hammer.

4) The pieces of Billets are heated to the require temperature in

heating furnace running by coal.

5) The hot metal is then entered into rolling stand where rolls are

fitted according to the required size and type of the final product.

6) After passing through the six rolls in rolling mill stand accordingly

we achieve the required size and type of final product.

Moreover it is note that this process is carried out

under supervision of three skilled persons like foreman and his

assistants. The entire process is been worked in the same time

table.

-8-

ORGANIZATION STRUCTURE

Generally, the organization structure mainly depends upon the size

& the form of the form of the company. The organization structure of

NAVBHARAT Includes Three Levels.

1) Top level

2) Middle level

3) Lower level

CHART

Now, let‟s look at the organization structure of the NAVBHARAT STEEL

RE-R OLLING MILL.

PARTNER

↓

OFFICE ADMINISTRATOR

↓

FACTORY AMINISTRATOR

↓

LABOUR

From the above organization chart we can see that the proprietor of

the company is at the beginning by office administrator, factory

administrator and labor.

-9-

TOP LEVEL

TOP LEVEL MANAGEMENT mainly consists of Board Of Director, Chief

Executive, Managing Director Etc... They manage the whole business unit & take

decision about right policy, business promotion, legal provision & all liabilities of a

business unit. They also look after Human Resource Management, Marketing

Management as well as Finance Management of company.

In NAVBHARAT STEEL RE-ROLLING MILL Company in Top Level

Bhagirathsinh G. Sarvaiya. He is director of the company

MIDDLE LEVEL

MIDDLE LEVEL MANAGEMENT is the link between the Top

Management& The Lower Management. It consists of function like production,

sales account &personnel officers. They are experts of specific field and try to

accomplish work by preparing programs for different section.

In NAVBHARAT STEEL RE ROLLING MILL, the Middle Level

Management consists of finance head, production head, and sales

LOWER LEVEL

Generally, BOTTOM LEVEL MANAGEMENT of Jobbers, Workers,

Foreman etc...These people are important to the company as they are persons

who produce the different products of the company, which the company

producing on the Large Scale.

IN NAVBHARAT STEEL RE ROLLING MILL

INDUSTRY, the bottom level consists of many workers who take the

guidelines for middle level, who is instructed by the top level.

-10-

TIME KEEPING SYSTEM

Time keeping system is very important for each and every person organized

for any small or large scale unit. It is basic requirement of all units. If we want to

be success in our business we need to be very time punctual system. The

organization can obtain their Goal If They Are Working in a Time System Set by

the Firm.

Time is very important in business and also our life one times its goes

than they never return. In the same way NAVBHARAT STEEL RE ROLLING

MILL is very strict in this matter. The manager director of the unit is very

conscious that here aches in time. So, its employees and workers needs to reach

at firm in time or before time but should not be late. The unit has been runner in a

single shift only but if the demand of product is increased and if they are to be

sent earlier than they go for two shift also. The regular shift is only one shift and

the time is 10:00P.M. To 6:00A.M.

It does not allow to workers, visitors or trainees to enter without the

permission of higher authority and they keep attendance register for the record of

its employees. The employees have to signed into that register when they enter

in NAVBHARAT STEEL RE ROLLING MILL and when they leave the unit.

The attendance register has been checked by the manager and it any

loop poles are there they are rectified and checked upon

-11-

INDUSTRIAL CONTRIBUTION OF THE UNIT It is necessary for each and every organization to maintain a

healthy relationship not only with their employees or customers but

also with the industry situated in surrounding area of the industry.

For getting such success in the market this relation should be

maintain by a good organization. The following is being taken into

consideration by the unit:

The unit has maintained a good relationship with a view to

developing its marketing channel.

The unit a leading part in the industrial association and also in

marketing such decision.

The unit tries their level best to fulfill the demand of its

customer by providing them better quality product and by

providing employment the unit helpful by reducing such

unemployment.

-12-

HUMAN

RESOURCES

MANAGEMET

CONTENT

NO PARTICULAR PAGE NO

1 INTRODUCTION 15

2 DEFINITION OF HUMAN RESOURCE MANAGEMENT

16

3 ORGANIZATION OF HUMAN RESOURCE DEPARTMENT

17

4 RECRUITMENT 18

5 SELECTION & INDUCTION 19-20

6 TRAINING AND DEVELOPMENT 21-22

7 JOB DESCRIPTION 23

8 HEALTH AND SAFETY 24

9 PROMOTION & TRANSFER POLICIES 25-26

10 PERFORMANCE APPRAISAL SYSTEM 27

11 WAGE & SALARY 28

12 WORKING OF E.S.L SCHEME 29

13 GRIEVANCE HANDLING AT NAVBHARAT 30

14 COLLECTION BARGAINING & AGREEMENT 31

15 EMPLOYEE WELFARE 32

16 TRADE UNION 33

17 PERSONNEL RECORD 34

18 PROVIDENT FUND SCHEME 35

19 MANAGERIAL DEVLOPMETNT 36

INTRODUCTION

The term Human Resource can be defined as the total

knowledge, skill, creative abilities talents and attitudes of an

organization work force as well as the value attitudes and believe of the

individual involved. The term human resource can also be explained in

the since that it is resource like any natural resource It does mean that

the management can get and use the skills., knowledge, ability etc.

through the development of skills, taping, and utilizing them again and

again.

Now a day for any company it is important that personnel department

should effective developed. Effective development of personnel

department helps the organization to accomplish the goal of the unit

and its success. Without co-operation of the people achieve met of goal

cannot be done. Personnel department deals with the planning

organizing directing and controlling the human resource.

There is a famous proverb that “MIND YOUR MEN AND MEN WILL

MIND ALL OTHER THINGS”.

For getting the best out of people they must be managed well. This is

where human resource management plays at critical role in bringing

gaps between employee expectations and organization needs by

adopting appropriate human resources strategies and practices.

NAVBHARAT STEEL RE-ROLLING MILL is havening a human

resource department in which the manager tries to understand the

problem of the employees. It tries to motivate its employees to work in a

better way and with full energy. They try to maintain unity with the

employees.

-15-

DEFINITION OF HUMAN RESOURCE MANAGEMENT

DEFINANTION:-

“Human resource management means employing people,

developing their resources, utilizing, maintaining and compensating

their services in tune with job and organizational requirement.”

It is required that the workers are given essential training for the

work so that the work can be done easily. Training is not only task

properly.

This is the only resource which can produce unlimited amounts

through better ideas. Human resource is most complex & unpredictable

in its behavior. Thus, personnel management is the most important

function & useful to any company or industry.

The NAVBHARAT Steel Re-Rolling Mill itself a

partnership unit. In the unit managing director used to handle the

authority and responsibility of this department. The personnel

department‟s staff member comes under this and the workers take

place at the end. Being a small scale industry the unit NAVBHARAT

Steel Re-Rolling Mill doesn‟t has such a big human resource

department. It can be representing in the chart as follow:

PARTNER

↓

STAFF MEMBERS

↓

WORKERS

From the above chart we can easily understand that partner of the unit

is the authorized person who handles the department. After him staff of

the unit comes. An as said before the workers of the unit takes their

place at the end.

-16-

ORGANIZATION OF HUMAN RESOURCE DEPARTMENT

The success or failure of the managerial planning is

depends upon the organization department. The main actual and

practical work is done by employee.

The human resource management is handled by the

president and personnel management. He is the person. Who looks

after the whole personnel department.

The organization of personnel department is done as the step

of the work is suitable for company band society organizations.

The organization structure of personnel department of

NAVBHARAT is quite easy to understand and it should be put on your

mind carefully. The organization structure of personnel department is

listed below:

CHART

MANA GING DIRECTOR

↓

PERSONNEL MANAGER

↓

PERSONNEL ASSISTANT

↓

WORKERS

All the work activity is done by employee with the co-ordination.

All the function related to the company‟s are concerned with personnel

department with the help of personnel manager.

-17-

RECRUITMENT

Recruitment, Selection and Induction are the operating of the

personnel department which is as follows.

RECRUITMENT:-

Recruitment is the process of searching for and attracting applicants for

the various jobs position which arise from time to time in the

organization. There are two main sources of recruitment which are as

follow:

(1) INTERNAL SOURCES:-

1. Promotion

2. Transfer

3. Demotion

4. Deputation

5. Lay-Off

(2) EXTERNAL SOURCES:-

1. Employees recommendation

2. in campus interview

3. Employment exchange

4. Advertisement in newspaper

5. Personnel consultant

NAVBHARAT STEEL RE-ROLLING MILL Has To Recruit Other

Persons through Following Reasons :->

1. If somebody recommends or obliges anyone then he is recruited

2. If a person has special skills for then he is recruited.

3. If employees believe that there will be a shortage of employees in

future.

They will recruit employees in advance.

-18-

SELECTION & INDUCTION

Selection starts when recruitment ends. The process of recruitment is

open invitation to all concerned. While selection is only welcome

process. Candidates who are suitable & qualified for the position for

which there are invited. So selection is a process of offering job to the

one or more proper candidates from all those who have applied for

services.

Selection is the process of choosing the most suitable candidates

from among the applications for jobs. The need for scientific selection is

appreciated by its impact on work performance and employee cost.

SELECTION PROCESS:-

1. Collection of application

2. Selection of application

3. Personal interviews

4. Final selections

In NAVBHARAT STEEL RE-ROLLING MILL the selection and

recruitment is done internally hence they do not have to give any

advertisement in the newspaper and also there is no chance for calling

people from outside.

In NAVBHARAT STEEL RE-ROLLING MILL selection process is as

llow:

1. first to all they take those people who are in contact with

NAVBHARAT STEEL RE-ROLLING MILL employees and mostly the

children‟s of employees are taken.

2. the selection committee will take their personal interviews and if they

pass the final interviews will be taken.

3. they see their qualification, age, eligibility etc..

4. then the selection person will be given his joining date and his time

and his work will be showed.

-19-

INDUCTION:-

Induction is the process of receiving and welcoming an

employee when he first joins a company and giving him basic information. He

needs to settle down quickly and happily and start work. New employee who Is

selected for the job must be introduced in the organization.

In simple word induction means introduction the new employees

are given general information about the management and the work to be

undertaken by him. In other word induction means when a new employee is been

employed than he has been awareness about his work and rules and regulation.

In NAVBHARAT STEEL RE ROLLING MILL the head of the

department does the induction program. He shows the new employee his job

specification its duties and responsibilities. The supervisor is given the authority

to help the employee and teach him his work with cool and mind and he tries to

motivate the new employee to achieve the targeted goal of the firm.

In the introduction general information rules his work job

description are given to the workers. The new employees are made familiar with

other employee‟s supervisor his superior subordinate etc.

-20-

TRAINING AND MANAGEMENT DEVELOPMENT

Training and development is the basic necessity for each and

every firm by this process. By training a person will be able to work

more efficiently.

In other words training is the art of developing skill and

knowledge for performing particular job.

F.W. Taylor the father of modern management emphasized the

need of training to optimize productivity and development of the

organization in today‟s fast moving a world training & development is

basic necessity for each & every firm to achieve organization goals

training is not only enables the organization.

Training is the process of acquisition & development of those

knowledge, skills, techniques, attitude and experience which enable and

individual to make his most effective contribution to combine efforts to

team.

Training is a short-term process utilizing a systematic and

organization procedure by which non-managerial personnel learn

technical knowledge and skill for definite purpose.

While development is long-term education process utilizing a

system and organized procedure by which managerial learn conceptual

and theoretical knowledge for general purpose.

NAVBHRAT STELL RE-ROLLING MILL gives training to

the new recruited people and tries to explain their work in a very easy

way. The new employees are given training under the higher authority

people who have experienced and knowledge.

-21-

METHOD OF TRAINING

There are so many method of training based on the needs. the two

main types of training method are.

On the job training

Off the job training

(1) ON THE JOB TRAINING:-

In this types of training the trainee will be trained directly

but not in the working hrs means after completing of the will be

trained. This types of training is given by conducting lecture or

seminar. In short training which is not given in the job time is called

“OFF THE JOB TRAINING”.

(2) OFF THE JOB TRAINING:-

In this types of training the trainee will be trained

directly but not in the working hrs means when they are working they

will be trained so when any new person join the company he will

have to stay with other experienced person for few days 0 when he

was performing his job he will be instructed by other person then it is

known as on the job training.

In NAVBHARAT they are not following any specific training. But

they are given training to their employee on the job.

-22-

JOB DESCTIPTION

Job description is statement containing items such job

title, location, job summary, duties, machine, tools, and equipment

material and firm user supervision given or receive working condition.

Job is their responsibility? What is authority? Job description is a part of

job analyzes. It gives information about the job itself.

This is a written statement that describe the main features

of the job as well as the qualification, activities which the job process.

Job description is prepared on the bases of the data

collection through job analysis. The results of job analysis are set down

in job description of the activities and duties to be performing in a job. “it

is a statement containing items such as, job title, location, duties,

machines, tools and equipments and forms used supervision given or

receive and hazards.”

The title indicates nature and constitutes records of existing

and pertinent job facts. Its document discusses what, how, and why it is

to be done.

In NAVBHARAT STEEL RE-ROLLING MILL company they have a

completely written document of job description and perfect

implementation also. Therefore work for the manager is being very easy

and comfortable.

-23-

HEALTH AND SEFATY

SAFETY :-

Safety is the state of being "safe" (from French sauf), the condition of being

protected against physical, social, spiritual, financial, political, emotional,

occupational, psychological, educational or other types or consequences of

failure, damage, error, accidents, harm or any other event which could be

considered non-desirable. Safety can also be defined to be the control of

recognized hazards to achieve an acceptable level of risk. This can take the form

of being protected from the event or from exposure to something that causes

health or economical losses. It can include protection of people or of

possessions.

“Every twenty seconds of every working minute of every hour throughout

the world, someone dies as a result of an industrial accident.” This was how the

seriousness of industrial accidents was described by the director-general of the

British council, in his massage of good wishes to the seventh national conference

on industrial safety and health organized by the national safety council, India.

In other word safety mean there also are two slightly different meanings of safety.

For example, home safety may indicate a building's ability to protect against

external harm events (such as weather, home invasion, etc.), or may indicate that

its internal installations (such as appliances, stairs, etc.) are safe (not dangerous

or harmful) for its inhabitants

HEALTH:-

Health is a state of complete physical, mental and social well-being and not

merely the absence of disease or infirmity.

Health is the general condition of a person in all aspects. It is also a level of

functional and/or metabolic efficiency of an organism, often implicitly human.

The well-being of the employee in an industrial establishment is affected by

accidents and by ill health physical as well as mental. In this section, we shall

discuss the need for healthy workers and health services to be provided by the

management to ensure the continuing good health of their employees.

In NAVBHARAT STEEL-RE ROLLING MILLS provide safety and health

facility in various types.

-24-

PROMOTION AND TRANSFER POLICY

Promotion and transfer of the employee is the major factor affecting in the

work of employees. Promotion means to increase post of the employee. Not only

has this but also increased the duties and responsibilities of the employees

(A) PROMOTION :-

Promotion is the way to motive an employee but this motivation must be

on certain strong base. The basic criteria on which employees are promoted are

as under.

It consider seniority of employee

Qualification opinion

Supervisor‟s opinion towards employee

Performance of employee

Extra efforts of work

The term promotion may be explaining an up word advancement of an

employee in an organization to another job which commands better pay, better

status, and higher opportunity, responsibility, and authority better working

environment hour‟s rank.

In NAVBHARAT STEEL RE ROLLING MILL there is the policy to give

promotion on the basis of performance & experience. The organization believes

that efficiency of the employee increase along with time and experience. At the

same time quality of work and performance approved is also taken into

consideration. In the company worker has promotion to increment salary bases

so he do work efficient way

B) TRANSFER:-

A transfer is a horizontal of lateral movement of an employment from one

job, department shift plant of position to another at the same or another place

where his salary status and responsibility are the same.

Transfer is the movement of employee from position to other. Usually

involving and marked change is the duties responsibilities skill needed or

compensation.

In NAVBHARAT STEEL RE ROLLING MILL there is no transfer policy in

the unit as it is only one production site so there is no question of transferring

employee. Some employee transfer internally For E.G.:- from one department to

other. This is also when some adjustment is to be done regarding the running of

some equipment or adjust the employee who are on leave or are absent.

-25-

C) DEMOTION:-

Demotion refers to the lowering down the studies, salary and

responsibilities of and employee. It is used as a measure where there are

services branches of duty on the part of an employee when it is after a

preliminary to a dismiss it defines as “The assignment of an individual to a bob of

cover rank and day usually involving lower level of difficulties and

responsibilities.”

A demotion is a reduction in an employee's rank or job title within the

organizational hierarchy of a company, public service department, or other body.

A demotion may also lead to the loss of other privileges associated with a more

senior rank and/or a reduction in salary or benefits.

In NAVBHARAT STEEL RE ROLLING MILL recruitment and selection are

done very carefully and promotion is also given after same measurement so

there is no caution of demotion. In this industry demotion is happened in very rare

case

-26-

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is the systematic, periodic and an impartial

rating of an employee‟s excellence in matters pertaining to his present job and its

potential for a better job. Performance appraisal is required for the purpose of

placement, selection, transfer, promotion, giving also motivate them towards

work. Sometimes performance system is received constant feedback on their

performance to be inputted to their continued development.

to appraise is to asset the work or value in the content of

individual organization. Performance appraisal is the systematic evaluation of

personnel by the supervisor of those familiar with their performance appraisal is

the systematic way of judgment the relative work of an employee in performing

their task performance appraisal has many different dimensions. It is the

feedback process as well as an emotion process.

NAVBHARAT STEEL RE ROLLING MILL performance appraisal system

which helps its employees to overcome some times they are given bonus or

some token for their good performance.

The procedure for performance appraisal is as follows:

Established performance standard

Communication of performance expectations to employees

Measures actual performance

Compare actual performance with standards

Discuss the appraisal with the employees

Initiate corrective actions

In NAVBHARAT STEEL RE - ROLLING MILL having a

well managed performance appraisal of its employee. Each and every

department head is given deviation to work discipline, quality of work,

co-operation etc…

-27-

WAGE AND SALARY ADMINISTRATION

Wage and salary is the compensation to the employee for their

daily work. Wage and salary of an employee can be determined

according to their work and their category. It is determined according to

his grade filling under different categories.

The basic purpose of wage and salary is to establish and

maintain an equitable wage and salary structure. Wage and salary

should be inter namely equitable externally competitive and should pay

individually on the basis of their skill and performance.

A wage is the remuneration paid for the service of labor in production

periodically to an employee or worker thus wages usually refer to the hourly rate

paid to such groups as production and maintenance of employees.

On the other hand, salary normally refers to the weekly or monthly rates

paid to clerical, administrative and professional employee‟s worker.

In NAVBHARAT STEEL RE-ROLLING MILL wages and salaries

are distributed on the 5th of every month and if employees wants salary

in advance, company give advance salary in between at Date 1st to 15th

of the month.

-28-

WORKING OF E.S.I. SCHEME

E.S.I. act was established in 1948 by the E.S.I. Corporation and autonomous

body consisting of representative of the central and state government.

E.S.I is an abbreviation of employee state insurance

scheme. This is compulsory for the company. According to the “employee stat

insurance act 1948.: E.S.I scheme is applicable on those companies in which

there are more than 20 workers working according to factory act; this scheme

covers those employees who have salary less than RS.7500 per month. This

scheme provides them health and sound benefits of this scheme.

Under this scheme employees have to contribute 1.75% of their

total salary while the company contributes 4.75% of their total salary. That total

amounts that is 6.25% are sent at E.S.I. head office in Ahmedabad.

In NAVBHARAT STEEL RE-ROLLING MILL the employee‟s state

insurance (E.S.I) scheme is applicable to such employees as government per

rules.

-29-

GRIEVANCE HANDLING PROCEDUR

A grievance may be understood as an employee‟s dissatisfaction or feeling of

personal injustice relating her or his employment relationship.

Grievance producer is another method of resolving disputes. All labors light

magnesium carbonate contains some form of grievance provide. And if the

producer is followed strictly, and any dispute can easily be slowed.

is it rather difficult to define a grievance when dissatisfaction which is

mostly related to work, is brought to the notice of the management through

grievance procedure channels, grievance handling procedures means how to

make out the solution of the problem.

In NAVBHARAT STEEL RE – ROLLING MILL there is no specific

treatment for the grievance. It means if the problems is occurred, the officer take

out the solution of this.

-30-

COLLECTIVE BARGAINING AND AGREEMENT

When many employees have complaints of particular things and they

collectively revolt against then it is the COLLECTIVE BARGAINING. If a

large numbers of employees have problems then they have to first inform

the director. The chain will be followed by the requirements which depend

on the size of the problems faced. The head tries to solve the problem faced

by the employees by analysis same person‟s problems, the complaint are to

be jointly said and the action is made to it.

Collective bargaining is the resolution of industrial

problem between the representative of employer and freely designated

representative of employees acting collectively with a minimum of

government dictation. Collective bargaining is an essential element of

economic democracy is a „Two Party‟ procedure to arrive at mutually agreed

solution.

IN NAVBHARAT STEEL RE – ROLLING

MILL, try to provide their level best to fulfill worker and management.

NAVBHARAT STEEL RE – ROLLING MILL industry provides many facilities

to their worker. Here the whole work is do manual so there is on major

problems create between worker and management

-31-

EMPLOYEE WELFARE

Why welfare activity is important? Employees are the value able assets

of the organization with employee any activity cannot be conduct. We

can get work from machinery as we want and as we like but in sense of

employee we have to respect their emotion, behavior and take care of

their financial status.

To give motivation to work effective and more extra facility should be

provided like school for children and transportation facility. In welfare

activity we have to care about the refreshment during the job is also

included in welfare activity.

Employees are the capital of the organization. It is necessary to provide

such services and benefits to their employees with a view to improving

the output and morale of employees towards works. The objective of the

organization is not only the profit oriented but also to do the work by

employee‟s satisfaction.

Employee services means to take care of the employees. If we see the

most of entrepreneur‟s history, who achieves the success they take

care of their employees for E.g. Dhirubhai Ambani used to meet all their

employee & ask them about improvement so that all his employee

would feel good & part of his business.

NAVBHARTA STEEL RE-ROLLING MILL Give various benefits

provided to the workers for their welfare. There are no fixed uniform for

workers. During special occasion and festival, the workers are provided

with a lump sum of money.

The company is providing facilities for first-aid medical services.

The company is also take insurance of every employee.

If in any case any employee needs drawings company provide it.

Company also provides provident facility.

On diwali festival they distribute sweets to all the employees.

On uttrayan festival they distribute threat and kites to the

employees.

Company also gives tea coupon in cartain limits.

They give extra bonus to some worker‟s if they had done a good

work.

-32-

TRAND UNION

”the Trade union indicates the combination of persons, A trade union is

an association of employees & of independent worker. The reason for

trade union is that they want steady employment with an adequate

income. The Trade union works for the satisfaction of their worker. This

type of union puts the problem of worker against the management. They

sometimes put pressure on management team satisfy the worker‟s

demand.”

Trade union is combination of persons, whether temporary

permanents primarily for the purpose of regulating the relationship

between workers and employees or between workers and workers.

Trade unions are voluntary organization of employees or

employers formed to promote and protect their interest through

collective action though he terms employees and employers are used

when we say trade unions. They generally refers to employees trade

union must be,

1. A combination of workers or employers

2. Such a combination could be permanent temporary

3. Could include federation of two or more unions

4. To regulate relations or among employers.

In NAVBHARAT STEEL RE-ROLLING MILL relation of

the staff member workers is like family member they are only 70 to

80 workers. They work with co-operation. So here there is no trade

union.

-33-

PERSONNEL RECORDS

A record is piece of writing or a chart which provides ready

information and which preserves evidence for feature reference or use

records provides tangible evidence of the past activities of an organization.

It also provides the information relating to various aspects of human

resources of an organization viz. wages and salary productivity social

security absenteeism employee welfare, job satisfaction etc…

Personnel records contain each and every information of the

employee. It is maintained in files and registers.

In NAVBHARAT STEEL RE - ROLLING MILL personnel department

maintains a wide range of records consisting details information about each

every aspects of organization. This firm adopts computer system as well as

manual system for keeping all the data about employees.

In NAVBHARAT STEEL RE - ROLLING MILL the personnel records

of all the employees are maintain through personnel department. Such as,

Name and addresses of employees.

Telephone no. Of employees.

Name of parents.

Date of joining.

Designation and nature of work.

Salary and allowances rate.

Monthly attendance, leave and salary position.

Service disciplinary action report.

Remarks.

So, personnel record is a very essential part of the every

organization. Through the personnel record the management can know all the

things of employee.

-34-

PROVIDENT FUND SCHEME

According to provident fund act 1952, “provident fund means collection

of money from the salary of workers and it is repaid to them at the time

of retirement with interest.”In this scheme the company who is having

more than 20 employees is eligible to contribute under provident

scheme. The year followed by the head office is March to February and

also company must the amount provident fund in bank after 15 days of

salary.

An employee‟s-employer hast to fill the provident fund withdraw

from which is available at provident fund office on retirement. Provident

fund is also paid for need of any employee himself or his family member

as a form of loan on the occasion of operation etc…

As per this scheme, employees get benefit of the pension after his or

her retirement and other amount is refunded at the time of his or her

retirement.

The NAVBHARAT STEEL RE-ROLLING MILL also follows

provident fund act. It provides as government‟s rules provident fund to

its employees.

-35-

MANAGERIAL DEVELOPMENT

Development is the activity associated with the managerial personnel such

as executives. Development is concern with theoretical and conceptual

knowledge. The human resource department gives high attention and

development of each and every employee for the following purpose.

1. Increasing efficiency

2. Increasing productivity

3. Increasing morals of employees

4. Reduce supervision

5. Reducing in learning time

6. Reducing in operational problem.

7. Effective utilization of resources

Development of employees refers to those activities that prepare them for

future jobs or positions. The main difference between training and development is

that training is generally linked with the operational tasks and development is

linked with the future needs of the organization. Both training and development

programmer are necessary for any organization. But not all organization show

awareness of the need for the development. This is perhaps due to the fact that

fruits of training programmer are more apparent and can be obtained more

quickly.

In NAVBHARAT STEEL RE ROLLING MILL workers are trained by the

method of on the job training. A supervisor goes with the workers and gives

detailed information about his work then asks him to do it practically. Supervisors

supervise the process and guide the worker by giving suggestions he also solves

the problem which worker faces in the process. The basic purpose of giving

training is that worker get full information about his job in a practical way which is

very necessary. It is useful in development of worker and workers and also be

motivated. Visual training is very good type of training. In this type of training,

employees are very best way to understand that what he should actually do in

their job.

-36-

MARKETING

MANAGEMENT

CONTENT

NO PARTICULAR PAGE NO

1 INTRODUCTION 39

2 ORGANIZATION OF MARKETING MANAGEMENT 40

3 PRODUCT PLANNING 41

4 MARKET SEGMENTATION 42

5 PRICING POLICY 43

6 PROPOTION MIX 44-45

7 MARKETING RESEARCH 46

8 PRODUCT PORTFOLIO 47

9 CHANNELS OF DISTRIBUTION 48

INTRODUCTION

Man is a bundle of desire his needs increases day by

day. As one need is satisfied another need emerges. Producer

produces things for the consumers, but how the things do reach from

the producers to the consumers there are so many barriers which

comes between these two, so there should be a chain which removes

all barriers.

When producer has finished manufacturing of product it

is necessary to bring that product in the market so that producer can go

on marking that product constantly. In between the product and

consumer many things come like transport, decision relating to price,

related to the quality and quantity, packing and much more. Market is

the set of actual and potentials baggers of product of service.

DEIFINATION:-

According to Malcomm Mc Nair, “Marketing is the

creation and delivering of a standard of living.”

Market is the place where buyer and seller come

together to exchange their goods.

Marketing is a social and managerial process by which

individuals or group of persons obtain what they want and need through

creating, offering, exchanging product of value with other.

NAVBHARAT STEEL RE-ROLLING MILL is a leading

manufacturer of bars. They identify the needs and want to satisfy the

customer through providing them better product quality of the product

and customer services their customer.

-39-

ORGANISATION OF MARKETING MANAGEMENT

In the competitive business word of today, marketing of any

product is very important. Important every product produced must have

a market for sale.

This until takes this well info accounts and thus running it

effectively.

To achieve various objective and goals marketing managers has to

organization his department on the basis of sound modern principles of

organization. it also requires sound organization structure. There

shouldn‟t be any over lapping of responsibility and obligation of the

person.

ORGANIZATION CHART OF MARKETING DEPARTMENT

MARKETING MANGER

↓

DISTRIBUTORS

↓

DEALERS

-40-

PRODUCT PLANNING

Product planning is the process of determining that line

products which can secure maximum net realization from the intended

markets.

In other word Product planning means,”introduces a new

product in the market. In other word it is adding a new product to

existing line of the company.” The products may be as per the needs

and the requirements of consumers or may be introducing due to a

technological and development new product development. A new

product development is different from product innovation or product

modification. In any company, they follow customer-oriented planning

process, which is as follow.

Idea generation

Screening

Business analysis

Product development

Test marketing

Commercialization

NAVBHARAT STEEL RE-ROLLING MILL the product

planning is done by taking care so that the product can easily available

to its user. As the unit is making the bars they plan about their product

in advance regarding its cost, quality, raw material and time duration,

quantity to be produced etc.

-41-

MARKET SEGMENTATION

Market consists of buyers and buyers differ

in one or more ways. They differ in their wants, resources locations,

buying attitude and buying practices through market segmentation.

Segmentation at market is necessary to serve better to the target

market for any produces market is not a single market, but it is

composite of various sub markets. Market is divided into distinct groups

of buyers of marketing mixes.

THE MAIN THREE REASON FOR WHY FIRMS GOING FOR

SEGMENTATION ARE:

1. Some market is heterogeneous.

2. Market segment respond differently to different promotional

appeals.

3. Market segmentation consists with the marketing concept.

3. There Are Some Bases For Segmentation Of Market Such as:

1. Geographical segment:-

Dividing the market into different geographical units such as

nations, states, regions, countries, cities and climate.

2. Demographical segment:-

Demographical segmentation division of their variables like

generates family style, family size, age, sex, education and nationality.

3. Behavior segment:-

Behavior segmentation divides market into group based on

customer knowledge attitude use or response to.

4. Psycho graphical segmentation:-

Divides the market into group based on consumer knowledge,

attitude, use or response to a product.

5. Social economic segment:-

Divides market in group based on income level, consumption

level, religion, culture etc.

In NAVBHARAT manufacturing unit there is Geographic market

segment.

-42-

PRICING POLICY

Price may be defined as the value of product. Price is

therefore a link that binds consumer and the company. Price is the sum

of the values that customers exchange for the benefit of having or using

the product or service. Price I the process of determining the price of

the product considering all the factors and polices of the firm. Price I the

most favorable element of marketing mix.

Internal factors affecting pricing includes the company‟s

marketing objective, marketing mix, strategy coasts and organization

goal.

In NAVBHARAT, it depends upon the demand and supply.

And it is one type of open price system.

-43-

PRAMOTION MIX

THE TOP 4 PROMOTION MIX TACTICS:->

PERSONAL SELLING

is one of the most common of the promotion tactics. Most companies

will hire people to do the selling: sales representatives, account managers, inside

sales representatives, retail sales, sales agents, or telemarketers. Face-to-face

selling is one of the most common methods of selling, although sales by phone,

and more recently, sales by email, are becoming well used. These are not

necessarily as effective, but they are low cost sales tactics

SALES PROMOTION

Sales promotion is the marketing activity other than advertising. It is a

short term incentives to encourage purchase/sales of product and

service.

In simple words, sales promotion may define as those activities other

than advertising and personal selling‟s which aim at sales promotion. In

broader sense the terms refers to almost all activities tempts to improve

relations with distributors and customers of which essentially aim an

increasing sales.

PURPOSE OF SALES PROMOTION:-

To attract new consumer.

To know customers about the introduction of new policy.

To encourage present customers to buy more.

Sales promotion is an important activity being performed by

the marketing department. In NAVBHARAT to increase the sales

volume, they use some good credit for sales promotion. This unit allows

30 days credit facility and this limit is increase if needed.

-44-

PUBLIC RELATIONS (PR)

is another common promotion tactic. Public relations includes writing and

distributing press releases (to the local newspaper, the national newspapers, to

online PR sites, to radio and television, to magazines, and more). The key for

effective PR is to identify and understand your target audience, the key message

or messages you want to deliver, the credibility of your organization, and the

recognition that PR is not a sales tactic but an identity (whether corporate, brand

or product) building tactic.

ADVERTISING

“Advertising is any paid from of non-personnel presentation and

promotion of ideas, goods and services by identifiers sponsor.”

In today most competitive world, advertising is most useful way

of communication between the manufacturers and the consumers.

Advertisement usually provides information about the

advertising firm, its product qualities place of availability etc, to the

prospective buyers.

In the unit NAVBHARAT STEEL RE-ROLLING MILL. However, to

highlight the name of our company. We distribute every year diary and calendar

to our customer and broker or relatives and friends and they are attached the

ribbon of aluminum with product which is indicate the benchmark & logo of

company.

-45-

MARKETING RESEARCH

“Marketing research is the systematic gathering recording

and analyzing of data about problems relating to the marketing of goods

and services.”

AMERICAN MARKETING ASSOCIATION (AMA)

Through market research, the company can have all the

information related to its product market share information about

competitors etc. all the activities are necessary to collect the information

about the market situation.

Marketing research is the systematic decision collection, analysis

and reporting of date finding relevant to a specific marketing situation

facing the company.

The success of marketing research is as under

Define the problem and research objecting

Develop the research plan

Collection the information

Present the finding.

In NAVBHARAT, through market research the

company can have up to date information about its products, market

share, information about competitors etc.

-46-

PRODUCT PORTFOLIO

INTRODUCTION:-

The business portfolio is the collection of businesses and products that make up

the company. The best business portfolio is one that fits the company's strengths

and helps exploit the most attractive opportunities.

The company must:

(1) Analyse its current business portfolio and decide which businesses should

receive more or less investment, and

(2) Develop growth strategies for adding new products and businesses to the

portfolio, whilst at the same time deciding when products and businesses should

no longer be retained.

BUYER AND SALER INFORMATION

BUYERS

“Buyer is one who purchases the product from other by giving them value”.

When we purchase the raw material, we have to take care of many things like cost,

defectiveness etc. so that we can make best product with cheapest cost and ultimately

our profit will be high.

SELLERS

“Seller is one who sells the product to other by obtaining value from them”.

To sell the product, we have to take care of making good quality of product with

reasonable price because people want those products which are of good quality and

reasonable price.

-47-

CHANNELS OF DISTRIBUTION

Distribution channels are the set of intermediaries of

independent department involved in the process of making a product or

service available for the use of consumption by the goods and service

form producers to customers. Channel of marketing research.

1) DIRECT CHANNEL:-

The direct or short channel is one where in the company chooses to

sell direct to consumers without engaging any intermediary.

Manufacturing ↓ Consumers

2) INDIRECT CHANNEL:-

In direct of long channel is one where in the company chooses to

engage intermediaries in order to channelize its product and services to

consumers.

Manufacturing ↓ Agent ↓ Wholesaler ↓ Retailer ↓ Consumer

from the above channel of distribution, NAVBHARAT does its

production its production through third channel i.e. manufacture, trader,

broker, retailer and consumer.

Thus, the rational for having a distribution channel is to create value for

consumer through the generation of form, possession, time and

availability, utility.

MANUFACTURER ↓ TRADER ↓ BROKER ↓ RETAILER ↓ CONSUMER

-48-

CONTANT

NO PARTICULAR Page no

1 INTRODUCTION 51

2 ORGANIZATION OF FINANCE & ACCOUNT 52

3 CAPITAL BUDGETING 53

4 CAPITAL STRUCTURE 54

5 MANAGEMENT OF WORKING CAPITAL 55

6 INVENTORY MANAGEMENT 56

7 RECEIVABLE 57

8 CASH MANAGEMENT 58

9 RATIO ANALYSIS 59-60

10 LEVERAGE 61

11 CAPITALIZATION 62

12 FINANCIAL PLANNING 63

13 MANAGEMENT OF FIXED ASSETS 64

14 CONCLUSION 65

INTRODUCTION

The scope of financial management, that is, the views about Finance

function have undergone remarkable changes over time. till1950,

Finance function was regarded as the function only of raising Finance

for business, and consequently the discussion centered round different

sources of Finance, financial institutions and financial documents. In a

modern life cycle, money using economy finance may be defined as the

provision of money at the time it is wanted.

Finance is the regarded as the life blood of a business enterprise.

It has rightly been said that business needs money to make more

money hence applicant management every business enterprise is

closely link with efficient management of its finance.

Finance management is mainly concern with the proper

management of funds the finance manger must see that the funds

properly balanced in a given situation and there is optimum utilization of

funds.

DEFINITION:-

Hoagland says “Financial management is concerned mainly with such

matters as, how a business corporation raises its finance and how it

makes use of it”

The financial management has therefore been assigned the task of

planning and controlling long and short term financial needs of the firm.

-51-

ORGANISATION OF FINANCEANDACCOUNTS

ACCORDING TO HENRY FORD REMARKED:-

“Money is an arm or leg. You either use it”

This remark explains the significance of money or cash. The

finance is very popular and one of the most important factors for

established any company.

In simple word financial management means, raising of adequate fund

at the minimum cost and using them effective in business. Financial

management does not stop at procuring they require finance. It has also

to see that it is effectively utilized in business.

“Money is the soul and of coarse the blood of any share of

business.”

Organization of finance of at NAVBHARAT unit is totally done at sihor,

Bhavnagar. Mr. Bhagiratsinh and also two assistants are

(Mr.Rajendrasinh & Mr.Kanaksinh) handle the department of finance. All

the decision regarding finance taken with the help of accountant, while

management of finance looks after by directors are meeting in which

take the decision.

THE ORGANIZATION CHART OF FINANCE DEPARTMENT

IS AS UNDER:-

Finance manager

↓

Accountant manager

↓

ASSISTANT A/C manager

↓ ↓

Chief accountant assistant accountant

-52-

CAPITAL BUDGETING

ACCORDING TO R. M. LYNCH

“Capital budgeting consists of planning and budgeting of available

capital for the purpose of maximizing long term profitability of the firm.”

Capital budgeting decision may be defined as the decision to

invest its current funds most effectively in the long term assets in

anticipation and expected flow of benefits over a series of years.

A number of capital budgeting techniques are in use are classified into

two categories:-

DISCOUNT AT CASH FLOW CRITERIA:-

Net present value

Internal rate of return

Profitability index

Discount payback period

NON-DISCOUNT CASH FLOW CRITERIA:-

Payback period

Accounting rate of return

In NAVBHARAT at present most of the important and

heavy investment decision have been taken in part.

-53-

CAPITAL STRUCTURE

A mix of a company's long-term debt, specific short-term debt,

common equity and preferred equity. The capital structure is how a firm

finances its overall operations and growth by using different sources of

funds.

Debt comes in the form of bond issues or long-term notes

payable, while equity is classified as common stock, preferred stock or

retained earnings. Short-term debt such as working capital requirements is

also considered to be part of the capital structure.

In finance, capital structure refers to the way a corporation

finances its assets through some combination of equity, debt, or hybrid

securities. A firm's capital structure is then the composition or 'structure'

of its liabilities. For example, a firm that sells $20 billion in equity and

$80 billion in debt is said to be 20% equity-financed and 80% debt-

financed. The firm's ratio of debt to total financing, 80% in this example

is referred to as the firm's leverage. In reality, capital structure may be

highly complex and include tens of sources.

NAVBHARAT STEEL RE-ROLLING MILL is Partnership

Company so the company is not issued any equity, preference and

debenture.

-54-

MANAGEMENT OF WORKING CAPITAL

Capital, which required for day to day functioning of its business. It is

require for purchase of raw material, semi-finished goods, payment of

was. The goal of working capital management the firm‟s current assets

and liabilities in such a way that a satisfactory level of working capital is

maintains. Interaction between current assets and current liabilities is

main theme of working capital.

Working capital management may be need optimum level of current

assets, the tradeoff between profitability and risk which associated with

the level of current assets and liabilities, financing-mix structure and

soon.

There Are Two Concept Of Working Capital A Under:-

1. GROSS WORKING CAPITAL:-

According to gross concept the total investment of working capital

in current assets. While net working capital refers to the difference

between current assets and current liabilities.

2. NET WORKING CAPITAL:-

In net working capital there are two concepts. First positive and

second negative, when current assets exceed current liabilities. It is

called positive net working capital. While current liabilities exceed from

current assets it‟s called negative net working capital.

the working capital consists of three phases.

Inventories

Receivables

Cash & bank

-55-

INVENTORY MANAGEMENT TECHNIQUES

Inventory is composed of assets that will be solving in

future in the normal cause of business. In the finance inventory

means the value of raw materials, consumables, spares, work in

progress, finished goods and scraps in which a company‟s fund

have been invested. he considers Inventory as a blockage of money.

The marketing manager prefers to have reserves if finished goods

and for production manager favors relatively a higher level of

Inventory. Inventories are higher-level Inventory. Inventory is thus

one of the major elements, which help the firm is obtaining the

desire level of scales and smooth running business.

In management of Inventories in NAVBHARAT STEEL RE-

ROLLING MILL, the record of Inventory is maintained of factory

premises according to rules and regulation.

-56-

RECEIVABLE

Receivables are a direct result of credit sales. Credit sales is restored to by a

firm to push up its sales which ultimately result in pushing up the profits earned

by the firm

“Receivables are assets accounts representing amounts owed to the firm

as a result of the sale of goods or services in the ordinary course of business.”

Receivables management is an essential tool in modern business trade.

When firm will sale goods for cash, when a firm sales food or services on credit,

payment are received only at a future date & receivable are created. A firm grants

credit to its customers so that its customers so that its sales are not lost to

competitors.

Receivables or book debt is created by the trade and arises out of credit

transaction. The basic objective of receivables or credit. Management is to

maximize the value of the firmly obtaining optimum volume of sales by controlling

the cost or credit and keep it at minimum.

-57-

CASH MANAGEMENT

Cash a liquid and assets is the basic input required to run the business. It

includes cash and near cash assets like c both cash management is concerned

with the managing of cash flows into and out or within the firm. The basic

objective of cash management is to reduce the operating cash requirement to the

minimum possible extent without affecting the routine transaction.

Generally cash is handled by director, his family member and show self.

While bank is also operate by director. However, it has been maintained with the

help of accountant and their staffs.

In NAVBHARAT STEEL RE-ROLLING MILL petty cash book is managed

and most of the transaction is done by cash.

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RATIO ANALYSIS

Financial ratios are calculated from one or more pieces of information

from a company's financial statements. For example, the "gross margin"

is the gross profit from operations divided by the total sales or revenues

of a company, expressed in percentage terms. In isolation, a financial

ratio is a useless piece of information. In context, however, a financial

ratio can give a financial analyst an excellent picture of a company's

situation and the trends that are developing.

A ratio gains utility by comparison to other data and standards. Taking

our example, a gross profit margin for a company of 25% is

meaningless by itself. If we know that this company's competitors have

profit margins of 10%, we know that it is more profitable than its industry

peers which is quite favorable. If we also know that the historical trend

is upwards, for example has been increasing steadily for the last few

years, this would also be a favorable sign that management is

implementing effective business policies and strategies.

Financial ratio analysis groups the ratios into categories which tell us

about different facets of a company's finances and operations. An

overview of some of the categories of ratios is given below.

Leverage Ratios which show the extent that debt is used in a

company's capital structure.

Liquidity Ratios which give a picture of a company's short term

financial situation or solvency.

Operational Ratios which use turnover measures to show how efficient

a company is in its operations and use of assets.

Profitability Ratios which use margin analysis and show the return on

sales and capital employed.

Solvency Ratios which give a picture of a company's ability to

generate cash flow and pay it financial obligations.

These alternative methods of expressing items that are related to

each other are, for purposes of financial analysis, referred to as ratio

analysis.

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TYPES OF RATIO ANALYSIS 1. GROSS PROFIT RATIO:- DESCRIPTION:-

The gross profit ratio indicates how much of each sales Rupees is

available to meet expenses and profits after merely paying for the

goods that were sold. This interactive tutorial explains the gross profit

ratio by walking you through the steps, including where Sales and Cost

of Goods Sold are on the Income Statement. It lets you use your own

numbers -- great for checking homework answers

The gross profit ratio indicates how much of each sales dollar is

available to meet expenses and profits after merely paying for the

goods that were sold. This interactive tutorial explains the gross profit

ratio by walking you through the steps, including where Sales and Cost

of Goods Sold are on the Income Statement.

OPERATING RATIO

A ratio that shows the efficiency of a company's management by

comparing operating expense to net sales.

EXPLAINS OPERATING RATIO...

The smaller the ratio, the greater the organization's ability to

generate profit if revenues decrease. When using this ratio,

however, investors should be aware that it doesn't take debt repayment

or expansion into account. Calculated as:

X 100

Where,

Cost of goods sold = Net sales – Gross profit

Operating exp. = Administrative – interest + selling. exp

Out of sales of Rs. 100, Rs.72 is taken away by cost of goods sold

and other expenses and Rs.23 is left in the hands of proprietors. This

ratio therefore suggests that a particular share of selling price is

absorbed by cost of sales and the remainder is left for the owner‟s of

the business. Hence the higher the ratio, lower the profitable it is.

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LEVERAGE

MEANING :-

The dictionary meaning of leverage to an increase means for

accomplishment some purpose. Leverage help us lifting heavy, which may not be

otherwise possible

DEFINITION:-

“Leverage may be defined as the employment of assets of fund for

which firms paid fix cost or fix returns.”

ACCORDING TO SOLOMAN:-

“Leverage is the ratio of the net rate of return equity share and net rate

of return of total capitalization.”

THERE ARE 3 TYPES OF LEVERAGE:-

1. Operating Leverage

2. Financial Leverage

3. Combined Leverage

But NAVBHARAT STEEL RE- ROLLING MILL does not follow leverage.

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CAPITALIZATION

The term “capital” plays an important role in any organization

because more is the turnover more is the profit .it is necessary to know from how

much capital they had started the business and now where are they?

In any business first of all the finance manager has to decide which

amount is require. This decision include estimation of total funds require by a

business unit. The capitalization is of three types.

If capitalization of a company is just equal to its capital requirement, it is

considers to be property capitalized. If it is more than require, profit per share will

fall and its capitalization is said to be in appropriate, similarly if capitalization is

less than require, it is not desirable.

1. OVER CAPITALIZATION:-

A business is said to be over capitalize when there is over estimation of fund.

It can be also being said like there excess investment in assets and require. It

said to be over capitalization i.e. book value greater than real value.

2. UNDER CAPITALIZATION:-

A business is said to be under capitalization when there is under

estimation of fund. So, the investment in the assets is also less than. In under

capitalization there is book value is less than the real value.

3. FAIR CAPITALIZATION:-

Total amount of capital should be enough to meet its future needs

it called fair capitalization.

In regard to NAVBHARAT STEEL RE-ROLLING MILL,

are very near to fair capitalization i.e. it has adequate capital in relation to its

requirement.

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FINANCIAL PLANNING

Planning is very necessary for smooth running of the business. Financial

planning may be referred to as assessment of financial requirements and clear

arrangement of various sources of capital so as to optimize on the cost and

increase return to shareholders and accommodate at all times the carrying of the

assets. Financial planning is one of the pre-requisites for the success of an

enterprise. Finance manager is consumed in financial planning i.e. co-ordination

of a series of interdependent and interconnected decisions over a period of time,

including the process of forecasting.

As a short term measure, it ensures timely and balanced flow of funds to

all segments of the organization. As a long term aspect, it is one of the basic

tools for efficient use of financial resources.

The basic objective of the firm is to get maximum profits out of minimum

efforts or to maximize the wealth of the corporation to its shareholder in an

efficient manner. So the basic purpose of the financial planning is to make sure

that adequate funds are raised at the minimum cost and that they are used

wisely. Thus planners of financial policies must see that adequate finances are

available with the concern when they are required because an inadequate supply

of funds will hamper operations and may lead to difficulties.

Financial planning is basically of three types-short term, middle term, and

long term. The unit has no separate department for financial planning, but these

functions are performed by the account department. They make the plan for the

stock of goods amount of maintenance of stock etc. planning of the company is

extremely good. So the financial planning is most important for each and every

company.

Important to both long term as well as short term financial planning. The unit

basically concerned with 3 types of planning.

o Short term planning: for one month to one year.

o Meddle term planning: for one year to five year.

o Long term planning: more than five year.

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MANAGEMENT OF FIXED ASSETS

Those assets, which are purchased by the company because of their long uses

period, are termed as fixed assets. It does not include items offered for sale fixed

assets management

Is the most important task, which a management has to face. The decision

regarding investment in fixed assets should be taken effectively and effectively

because it converted into cash easily except as considerably loss.

The management of fix assets should be done very accurately in every firm. It is

done for some specific purpose like to know the size of reward of return that will

set after a period of time, or to know whether the firm is going profitable or not

also for taxpaying purpose.

THE DETAIL OF INVESTMENT IN FIX ASSETS BY NAVBHARAT

IS AS FOLLOW:-

FIXED ASSETS

AMUNT IN RS.(APPROX)

MACHINERY 50 TO 60 LACKS

LAND 25 LACKS

BUILDING 30 LACKS

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CONCLUSION

In the overall conclusion, I observed that the company has well laid out

human resources development. Marketing and financial department

The quality of people was found to be very good and rightly placed. The

organization Chart was well defied. Constant training of the staff was keeping

people‟s performance up to the mark for their post. Perhaps, work allocated to

some individual was less than the working time available

Finally, I am extremely thankful to the management of

NAVBHARAT STEEL RE-ROLLING MILL top import extensive practical training

to me.

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BIBLIOGRAPHY

HUMAN RESOURCE MANAGEMENT:-

Prof. Udai Parikh C.B. Mamori, S.V. Gankar, Himmaliya

publishing house, Mumbai. And Human resources management by

S.S.khanka, 11 editions 2002-03

MARKETING:-

Philip Kotler. Kevin lane Kller, Abraham koshy,

Mithileswar Jha, „marketing management‟, 12 editions 2002-03

FINACIAL MANAGEMENT:-

Prof. S.P. Shah, Dr.Paresh Shah, Dr P.K.Priyam, Dr. Hitesh Shukla,

„finance management 1st edition 2002-03, and financial management by

prof. s.p.shah

WEB SITE:- www.navbharatsteel.com

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