Project Detail

ROADTECH EQUIPMENTS PVT.LTD

1.

GENERAL

INFORMATION

COLLEGE OF BUSINESS ADMINISTRATION, UNJHA 1


1.1 HISTORY AND DEVELOPMENT

This company was incorporated on 7th October 1991 in the State of Gujarat as a

Private Limited Company. The certificate of commencement of business was obtained from

the Registrar of Companies. Gujarat on 7th October 1991 ROADTECH EQUIPMENTS

PVT.LTD. was promoted by equipments Pvt. Ltd Belonging to the GROUP of Gujarat in

association with Gujarat Industrial companies of which ROADTECH EQUIPMENTS

PVT.LTD. is the flagship, is India’s No.1 manufacturer of road construction & maintenance

equipment.

From a modest beginning in the year 1991, the group today almost the entire range of

equipment that lends them admirably to the road building industry. Roadtech equipment is a

Bombay stock exchange listed company. The group has modern manufacturing facilities.

Roadtech equipment investment in R & D and quality manpower help in continuous

improvement in product quality that more then meets the existing quality Standards of

Ministry of Surface Transport (M.O.S.T.). Indian roads congress irrigation projects.

International consultants and customers. The manifestation of customers’ Confidence on the

quality of the products and serves of Apollo lies in the customer base of over 500,a

equipment population of over 1200 and a market share of 75% With sales and Service office

at all the important locations in the country, spare parts and services are available on call

The group started business in 1991 by establishing this firm with wet mix paver finisher.

The company business grew steadily and its products earned a good reputation in the market.

In the year 2001, the Company Started Manufacturing Kerb laying machine

(kp-40), Slipform Kerb paver (kp-1200 SF), Road Marking machine, paver finishers under a

technical system. And in the 2007-08, company stay with growth stage. In the future

company thinking on manufacturing swipper machine for cleaning purpose. Crusher Machine

for drilling purpose.



1.2 ABOUT THE COMPANY

NAME OF THE COMPANY

ROADTECH EQUIPMENTS PVT.LTD. is the name of the

Company located at Mehsana.

ADDERESS OF THE COMPANY

151, G.I.D.C, Phase-1,

State Highway,

Mehsana- 384002, India.

REGISTERED OFFICE

151, G.I.D.C, Phase-1,

State Highway,

Mehsana- 384002, Gujarat (India).

DATE OF ESTABLISHMENT

The company was established on 7th October 1991.

FORM OF ORGANIZATION

Private Limited company.

SCALE OF ORGANIZATION

Small Scale Industry.

BANKERS

1) Bank of Baroda.

Industrial Estatate Branch,

Highway, Mehsana.

2) Axis Bank Mehsana

3) Kotak Mahindra Bank Mehsana

AUDITORS

M/s, Virendra Chinubhai & Co.



Visnagar- 384 315

1.3 GOALS OF THE COMPANY

LONG TERM GOALS FOR THREE YEARS

Maintain mkt. Presence among international competitors

Substance market leadership in product line

Develop capable manpower for industrial needs.

SHORT-TERM GOALS ONE YEAR

Bring all a great vender to quality level of excellent grade.

To provide quick delivery and providing nation wide service

To bring new technology to the customers

To launch swipper machine & crusher machine.



1.4 BOARD OF DIRECTORS

Chairman & Managing Director Mr. Rashmikant H.Patel

Director Mr. Mananbhai M. Patel

Director Mrs. Sonaliben A. patel

General Manager Mr. Satishbhai M. Patel

Production Manager Mr. Mukeshbhai C.Patel

Sales & Service Manager Mr. Sailesh P. Prajapati

H.R.Manager Mr.Jagdishbhai J. Patel

Marketing Manager Mr. Bharat B. Parmar

Finance Manager Mr. Deepakbhai C. Shah

1.5 ORGANIZATION CHART



Managing Director

Management Representative

Production Human Resource Marketing manager General Manager

Manager Manager In Charge Finance

Sales Accountant

In charge In charge In charge in chargeaccountant Purchase Production Account Assistant & stores In charge

Maintains Stores Supervisor Assistance Private Government

Marketing Marketing Workers

Manufacture Customers In charge In charge In charge Mechanic planning personnel shop and Administrator Dealer

production Workers

Customers



]

1.6 LOCATION CHART

A M

E D A B ROADTECH A EQUIPMENT D PVT.LTD. R O

A D

Mehsana City Road Modhera Road

Mehsana Road Radhanpur Road

UNJHA ROAD



1.7 LAY OUT CHART

1.8 REASONS FOR SELECTING LOCATION



The raw material required by the company is easily available.

Infrastructure facility & power supply are also easily available because of G.I.D.C.

area.

There is a easily available cheap unskilled, semi skilled & skilled labors.

The company is situated near National High Way No.8 so that there is no

Transportation Problem.

The weather is good for producing company’s product.

Government provides subsidiary & some other benefit.



2.

PRODUCTION

DEPARTMENT

2.1 INTRODUCTION

Production department is one of the important units in any organization whether it is

small-scale unit or large-scale unit. Production department is a unit in which the

conversation of the raw material in to finished product is done. Its process of the every unit is

depending upone the size and nature of the company and quality of the product. Production

included all the activity of acquirement distribution of all the means of income ROADTECH

EQUIPMENTS PVT.LTD. produced five types of construction equipments.



Types of construction equipments:-

Web Mix Paver Finisher (WM-6)

Slip Form Kerb paver (Kp-1200 SF)

Kerb Laying Machine (KP-40)

Heater

Road Martine Machine.

The Work done by the company is paying very important role in the development.

2.2 ORGANIZATION CHART

Managing Director




Production Manager

In charge In charge In charge Accountant Purchase & stores Production

Stores Assistance Supervisor

Workers

2.3 ABOUT RAW MATERIAL

The details of raw materials and components are required for manufacturing of construction

equipments briefly as under....

The basic important raw-material for all product of construction

M.S. Flat

M.S. Angle



M.S.Channel

M.S. Round bar

M.S. Plate

M.S. Drill

M.S. Polish bar

M.S. Square

M.S. Checker plate

M.S. Square pipe

M.S. Rectangle pipe

RAW MATERIALS

The main raw materials required for the product range are mild sheets, Square Bars,

polish Bars, Chakel plat, Rectangle pipe and Square Pipes. The requisite steel is available

from SAIL’S stock yard Ahmedabad. At he presents level of operations about 1160 tones of

steel was consumed. After the proposed expansion the company of optimum capacity

utilization would require 2070 tones of steel.

The bought out components includes diesel engines, Worm box, canwas belt weathers,

Wheel plate, Hose pipe, Nipples, M.S.Band, Chain wheel, Plain washer, Radiator, sprocket

Shaft, types, Battery, Bolts, Pedestal, Gear boxes, Driver seat, Oils, Fuse box, and chains.



These are available indigenously and can be sourced from manufactures like Larsen & Turbo,

Ashok Leyland, Dunlop, SKF bearing ABL bearing & others.

The critical item like hydraulics motor, valves and pumps; grade and slope controllers

asphalt metering pump are imported from USA,Germany, Netherland, Japan,. The company

has been able to indigenes some of these components thus saving foreign exchange, the in

digitization would depend on domestic manufacturers’ ability to produce them. The company

has already submitted drawing to reputed many manufacturers viz. L & T, Rexthroth

Dynamatic, Hydralics Yuken and other to develop these components.

The consumption of imported raw material is 25% of the total consumption raw

material. The company has not entered into a long arrangement for the procurement of its raw

material and proposes to buy from the open market.

Raw material for Slipform kerb laying machine (KP-1200 SF)

Hydraulic cylinders :-

Front cylinder

Steering cylinder

Two for jacking

Sensors:-

Steering sensor



Grade sensor

Slope sensor

Assemblies :-

Track assly

Track support post assly

Frame assly

Rear wheel assly

Mould assly

Hopper assly

Main frame assly

Vibrator assly

Raw material for kerb laying machine (KP-40)

Petrol engine

Hydraulic pump

Solenoid D.C. valve for hydraulic function

Cut-off valve

Pannel board for operating function

Three hydraulic cylinders

Rear wheel screw jack assembly

Front type assembly

Duel sensor box assembly for grade and stearing cylinder

Cross level sensor box for R.H. cylinder



Push and pull table assembly

Battery for engine start

Sensors;

Cross level sensor

Bevel sensor

2.4 NAME OF THE PRODUCT

The company‘s main product is paver, finisher, and heater, laying machine are road

markers. All these products fall under the category of capital goods involve investing large

funds.

THE MAJOR PRODUCTS OF THE COMPANY ARE AS UNDER:-

Web Mix Paver Finisher (WM-6)

Slip Form Kerb paver (Kp-1200 SF)

Kerb Laying Machine (KP-40)



Heater

Road Marking Machine

2.5 PRODUCTION PROCESS CHART

Raw material

Incoming Inspection

Store



Assembling

Testing

Painting

Packing

Dispatch

2.6 PRODUCTION PROCESS

Roadtech equipment Pvt. Ltd. Manufacture Road Construction Machinery. For all the

products, there is not fix process is job type. General manufacturing process involves

following stages.

First of all company purchase the raw material according to requisition. Company

make drawing for the entire different product are make.

1. Fabrication where sheets and plates are straightened, cut, bent and welded.



In the fabrication shop, cutting and welding of sheet metal and sub assembly of

components is undertaken. The hydraulic drive, parching, shearing and cropping

machine, plate straightening machine, semi automatic machine, submerge are welding

machines, welding machines welding petitioners and other allied equipment.

2. Machining where bars, structural and casting would be cut, turned, milled, shaped,

slotted & drilled.

Machine shop has general-purpose machine tools like lathes, horizontal boring

machine’s universal milling machine, racial drilling machined, shopping machine and

planning machine. The components required for the various products are being

manufactured on the basis of design and drawings supplied by Own Company.

3. Tool Room

Tool room is equipped with surface grinders; vertical milling machine and other allied

equipments and is supplementary to machine shop.

4. Assembly & Testing

The sub-assembled components are assembled in this shop to form final product. The

basic Facilities comprise a paint shop and productions testing equipments. Therefore the

machines are tested, dismantled, Packed and shipped to customers.

2.7 PAVER`S PROCESS CHART

CHAIN ROLLER ASSLY

GUIDE ROLLER ASSLY

CONVEYOR CHAIN MOUNTING

64 T CHAIN WHEEL ASSLY



FRONT AXLE WITH TYRE ASSLY

HYD. CONTROL VALVE BOARD WITH HYD. PIPES

12×12 TYRES MOUNTING

CONV. GEAR BOX MOUNTING

COUNTER SHAFT ASSLY WITH CHAIN

ENGINE MOUNTING WITH RADIATOR

ENGINE DRIVE SHAFT WITH HYD. PUMP

CONVEYOR DRIVE SHAFT

DIFF. GEAR BOX MOUNTING & 1 ½” P CHAIN

STEERING UNIT WITH TIE RODS

BRAKE ASSLY

DRIVER SEAT MOUNTING

DIESEL TANK MOUNTING

HYD. TANK MOUNTING

SCREED CYLINDER MOUNTING

HOPPER MOUNTING WITH CYLINDER

FRONT BUMPER ASSLY WITH PUSH ROLLER



WORM BOX, WORM SHAFT ASSLY WITH WORM AND EXTENSIONS & CHAIN

CHAIN GUARD / LEVER ASSLY / BATTERY STAND ENGINE COVER MOUNTING

TOTAL COVER MOUNTING

HOOD FRAME

PENAL BOARD MOUNTING

GEAR OIL, HYD. OIL, ENGINE OIL, BRAKE OIL, WATER FILLING

LIGHT MOUNTING

SCREED MOUNTING

TESTING

COLOUR

ASSLY

STICKER & NAME PLATE

TOOL BOX & ACCESSORIES

DISPATCH



2.8 LIST OF MACHINES

1. Milling Machine.

2. Lathe Machine.

3. Shaping Machine.

4. Drilling Machine.

5. CNC Machine.

6. Tapping Machine.

7. Mig Welding Machine.

8. Hexo Machine.

9. Shearing Machine.

10. Banding Machine.

2.9 Features of KP-1200 SF:



1) The KP-1200 SF is mounted on steel tracks to ensure maximum stability and

gradability.

2) A technically advanced hydrostatic direct traction drive eliminates the need for a large

number of mechanical drive train components, there by ensuring lower maintenance

costs and smoother operations.

3) The KP-1200 SF is equipped with fully proportional automatic electronic controls.

4) The KP-1200 SF is integrated with a host of built-in-design features for enhanced

productivity and a wide range of applications adorned with a heavy duty, field proven

engine, world class hydraulic components & control systems.

5) The KP-1200 SF has been so ergonomically designed in orders to offer the operator

easy accessibility to machine components, high visibility on kerb forming, easy

machine operations and machine controls always on finger tips.

2.10 Features of Wet mix paver finisher (WM-6):



1) WM-6 offers the most economical and efficient solution for laying wet mix macadam

(WMM) and Dry lean concrete (DLC) in line with M.O.S.T. specifications.

2) It is simple in construction, versatile and reliable.

3) WM-6 is the most popular paver in this class.

2.11 Features of KP-40:



1) Apollo Kerber is a compact machine for laying concrete, kerb of different dimensions

through extrusion process.

2) An automatic sensor device provides steering and height control.

3) The use of a zero slum concrete ensures shape true to the mould design.

4) The concrete can be fed into the machine from a concrete transit mixer or a flat bed

truck (tractor trolley) by shoveling process.

2.12 UTILISED CAPACITY

Years 2006-07 2007-08 2008-09

Capacity Utilized 18% 30% 59%

Number of

Machines(units)

80 133 267

Turnover (Cr) 12crs 18crs 34crs

Total Plant capacity = 450 Number of Machines

2.13 QUALITY POLICY .



We, the ROADTECH EQUIPMENTS PVT.LTD. shall strive to enhance customer

satisfaction by manufacturing products of excellent quality with customer requirements in

focus, quick delivery and providing nation wide service.

We shall continually improve our quality management system, customer satisfaction

index and bring new technology to the customers.



3.

HUMAN

RESOURCE

DEPARTMENT



3.1 INTRODUCTION

In the general terms human resource means knowledge, skill,creative,and talent of an

organization work force as well as the value of attitude and belief of an individual involved.

earlier the employees of organization are to be considered as valuable assets of the firm. in

the firm employees are working efficiently.

Human resources management means employing people, developing their resources,

utilizing, maintaining and compensating their resources in tune with the job and organization

requirement.

For any business or firm, human resources is required. Without it, the firm cannot run.

What is the important of men, machine, material and money if there are no men? Roadtech

equipment (p) ltd. is too much strike about the management at human resource department.

Human Resource Department is called body of any organization. In this company worker are

working always continuously in their manner.

Human resource management is that face of management which deals with the

efffective control and use of man power as different from other sources of power.



3.2 ORGANISATION STRUCTURE

Managing Director


Human Resource Manager

In charge In charge In charge In charge Maintains mechanic shop planning personnel and Administrator Production

Workers



3.3 NUMBER OF WORKERS &THEIR CLASSIFICATION

Sr.No. Description Nos.

1. Administrative Staff

(Including Commercial Manager, Sales Executive

Manager, Marketing Accountant)

18

2. Technical Staff

(Including G.M. Material manage, All

Departmental H.O.D.)

20

3. Workman ( Including skilled, Semi skilled) 42

4. Contractual workman

( Including House keeping, Watchman)

TOTAL

50

130



3.4 FACILITY TO THE EMPLOYEE

The Company provides some facilities to the employees are as under.

Uniform Facilities

Medical Facilities

Provident Fund

Parking Facility

Insurance Facilities

3.5 SELECTION

The success of the Roadtech equipment depends upon the skill and capability of its

application towards company’s growth. Management selects employees or management.

They keep interview program for selecting right and efficient candidates. Different kinds of

Interview are organized according to the specific recruitment different department.

Selection procedure of “Roadtech Equipment Pvt Ltd. is as under: -

Inviting application

Reception of application

Interview

Investigation of reference

Placement



3.6 TRAINING AND DEVELOPMENT

TRAINING:

Training is the skill and increase of the workers efficiency to the perform a specific so

in the industrial production. Training is short term processes utilizing systematic and

organized procedure by which move managerial personal acquire technique knowledge and

skill for a definite purpose.

In “Roadtech equipment (p) ltd.” there must be highly skilled and specialized

knowledgeable employees so training and development is must in provides training to its new

employees.

DEVELOPMENT:

Management development is generous and a systematic process to control the

development of the managerial resources in the organization for the achievement of goal and

strategies. In Roadtech equipment (p) ltd. training and development activities have assumed

high important in the recent years because of their contribution to the achievement of

organization activities and goaled.

In “Roadtech equipment (p) ltd.” there must be highly skilled and specialized

knowledgeable employees so training and development is must in provides training to its new

employees.



3.7 PROMOTION AND TRANSFER

PROMOTION:

Promotion is a term which to get designation in he organization alone with an increment

in the salary and responsibility is basically known as promotion

“Roadtech equipment (p) ltd.” promotes the employee on the bases of records, general

efficiency, ability, loyalty, honesty and number of years in services at “Roadtech equipment

(p) ltd.”

Promotion is an essential part of the organization because promotion encourages the

moral of the employee and after imposing the promotion to the person in an organization we

get the person or worker with inspiration and ability to do their work very efficiently and

always remain in the favors of the firm.

TRANSFER:

Transfer is horizontal movement of an employee from the job selection department shift

plant or position to another at same or another place. In the “Roadtech equipment (p) ltd”the

employee is transferred only adjust the work force.



3.8 WAGES AND SALARY STRUCTURE

As a matter of fact wage and salary administration is one of the major responsibility

of modern manpower management. Wages and salary structure are different at different

stage such as top level, middle level, and lower level and at different qualification.

The Roadtech equipment (p) ltd. Pays wages mostly on monthly basis. There is also

policy of daily wages only for unskilled labor up to Rs, 120/- to 140/- per day. Salary

normally paid to clerical administration and professional employees on monthly basis.

SKILLED EMPLOYEES

Managing Director Rs, 1, 00,000.00

Production Manager Rs, 30,000.00

Human Resource Manager Rs, 30,000.00

Marketing Manager Rs, 30, 000, 00

Finance Manager Rs, 30, 000, 00

Office Staff Rs, 15, 000, 00

Technical Staff Rs, 15, 000, 00

Sub-Staff Rs, 5, 000, 00

Semi-skilled Employees Rs 3, 000, 00

Wages & salaries are paid to the officers on monthly basis in first week of every

month.



3.9 TIME KEEPING SYSTEM

Time is most crucial future for any organization because all activity of a concern will

be done in this way only. They are for a good time keeping system play a vital role in units

efficient and for achieving objective. The time keeping system of “Roadtech equipment (p)

Ltd., is Follow.

Time:

8.30 am to 12.30 pm

12.30 pm to 1.30 pm (Recess time)

1.30 pm to 5.30 pm.

Company will give one holiday in a week & also give public Holiday.



4.

MARKETING

DEPARTMENT



4.1 INTRODUCTION

Marketing is typically seen as the creating promotion and delivering goods and services

to customer and business. Mainly the marketing of any company involve the different entire,

their goods, services, experience, properties, organization, information and idea.

Marketing is social process by which individual satisfies their need and want through

creating, offering and freely exchanging product and value with each other. Market is one

type of place where customer and seller meet to each other for purchase or sales of product.

The Marketing concept holds that the achieve organizational goals that the key task of

the organization is to determine needs & wants of target market and to adopt the organization

to provide desirable product and give more satisfaction in the product than the competitors.

Marketing department includes product planning, Market segmentation, pricing policies,

channel of distribution and advertising, thus every company has different size of marketing

department. It means size of marketing is differ from company to company.

In ROADTECH EQUIPMENTS PVT.LTD. Distant there is a separate

marketing department, which is handled by the chief executive officer of the marketing

department. The chart shows the actual position of the marketing department and sub

department in it.



4.2 ORGANISATION CHART

Managing Director

Marketing manager

Marketing Department

Sales in charge Accountant

Private Marketing Government Marketing

Manufacture Customers

Dealer

Customers



4.3 SALES OF THREE YEARS

YEAR SALES (Rs)

2006-07 84481642

2007-08 158445225

2008-09 331545421

2006-07

2007-08

2008-09

SALES (Rs)0

50000000100000000

150000000200000000

250000000

300000000

350000000

SALES (Rs)

SALES (Rs)



4.4 DISTRIBUTION CHNNEL

Distribution is another important element of marketing mix. This stands for various

activities the company undertakes to make the product easily available to customers. In

today’s economy, the producers and customers are separated by vast distance so it is

necessary to fill this place gap through channel of distribution as well as physical distribution.

The products produced by ROADTECH EQUIPMENTS PVT.LTD is

capital product so it requires more funds to invest in the industry and they sates their products

to the customers and in this type of industries the customer are in few so they sales their

products directly to the customers. So they adopt the zero level of distribution channel or

one level distribution channel. The customers directly contact to the company for

purchasing any machinery or plants as per their requirements. There are not any middleman

persons.

Thus the company and customers directly or by dealer come in to contact and sales

become possible.

COMPANY

DEALERS

CUSTOMER



4.5 SALES PROMOTION

“Sales promotion is a short-term incentive gives to customer to create a maximums sale

or to increase a sale.”

“ROADTECH EQUIPMENTS PVT.LTD.” gives promotion decision

consists of the following elements.

ADVERTISING

Advertising is the most important means for promoting sales of the product by

advertising the knowing well about the quality and prices of the product. Advertisement

attractive the customer towards the product. By that way the sales of product is increased

advertisement bombarding on the minds of the customer and ultimately the sales of the

company or business has to spend crores of rupees after advertisement because he is knowing

well. The rupees incurred after the advertisement retune from the sales promotion.

Company gives the advertisement in the following ways:

INTERNET

NEWSPEPAR

CONSULTATION

CD

DVD

MAGAZINES



PERSONNEL SELLING

For Personnel selling the company has following organization chart.

HEAD OFFICE

(AHMEDABAD)

Bangalore Bhubuneswar Chennai Delhi

Hyderabad Kolkata Mumbai

(Region Office) (Region Office) (Region Office)

The regional officers report to the head office. The company gives profit margin

to its distributors and retailers basis of sales.

EXPORTS IN THE WORLD

Algeria

Jambia

Bhutan

Afghanistan



Nigeria

Company’s export in the world is very best

4.6 ABOUT THE COMPETITORS

Let we all are aware about the global world. In each country there are manufactures

producing general necessary of the general people. There are very tough competition in the

market each product arise having substitute, comprising same feature and same satisfaction

utility.

Company is facing competition from the mehsana based local companies like.

Himalaya Engineering co. Mehsana

Vijay Engineering Mehsana

Dhruve Equipments. Mehsana

Shitla Road Equipments Mehsana.

It facing also competition from the district level as under.

Maruti Road Equipments. Ahmedabad

Wilson Engineering Kolkata

Copious Road Equipments. Ahmedabad

Macront Equipments. Ahmedabad



4.7 DISTRIBUTORS

The distributors are those people who are distribute the product among consumer. The

distributors of the company are as follows:

Dhirubhai vyas & sons.

Rajasthan Tractor Machine

4.8 TRANSPORTERS

The transporters are those people who deliver the product at that destiny place as one

place to another place. The transporters of the company as follows:

Reason Trailer Organization.

Delhi Trailer Transport.

Green line career



5.FINANCE

DEPARTMENT



5.1 INTRODUCTION

Financial planning is the process of estimating the financial requirement of the

business. Finance is the blood of company. Management concern s with raising of funds in

most economic and suitable manner, using the funds as profitable as possible, planning for

future operations and controlling the current performance and future development through

financial accounting, cost accounting.

Finance department is very important part of company by which company use capital

in systematic way. In current every place competition is increase so industry must have to

expand the business finance is most useful resources.

.



5.2 ORGANISATION STRUCTURE

Managing Director


General Manager

Finance Manager

Account Assistant



5.3 RATIO ANALYSIS

1) GROSS PROFIT RATIO: - It is a ratio expressing relationship between gross profit earned to net sales. It is an

useful indication of the profitability of business.

Gross profit ratio = Gross Profit * 100 Sales

Gross Profit Ratio for year 2007= 8874803 * 100 110950633

= 7.99% Gross Profit Ratio for year 2008= 18623190 * 100 165082647

= 11.67%

Gross Profit Ratio for year 2009= 13409578 * 100 117633034

= 11.40%



Jun-10Jul-10

Aug-10

ratio0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

ratio

ratio

Interpretation:Gross profit ratio is higher in year 2007-08 and 2008-09 compare to 2006-07

2) NET PROFIT RATIO:- = Net Profit * 100 Net Sales

Net Profit Ratio for year 2007 = 6149916 * 100 110950633

= 5.45%

Net Profit Ratio for year 2008 = 15476655 *100 165082647

= 9.38%

Net Profit Ratio for year 2009 = 10255543* 100 115675067

=8.87 %

year ratio

2006-07 5.45%

2007-08 9.38%

2008-09 8.87%

COLLEGE OF BUSINESS ADMINISTRATION, UNJHA

year ratio06-07 7.99%

07-08 11.67%

08-09 11.67%

49


2006-072007-08

2008-09

ratio0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

ratio

ratio

Interpretation:After the observation we can conclude that net profit ratio in year 2007-08 is higher than 2006-07 and 2008-09.

3) CURRENT RATIO:-

It is also known as ‘Working capital ratio ’ as it a measure of working capital available at a particular time. The ratio is obtained by dividing current assets by the current liabilities.

= Current Assets Current Liabilities

Current Ratio for year 2007 = 43090554 21391757 = 2.01:1




year ratio2006-07 2.01:1

2007-08 1.35:1

2008-09 1.11:1

50


2006-072007-08

2008-09

ratio0

0.5

1

1.5

2

2.5

ratio

ratio

Interpretation:

After the observation we can conclude that current profit ratio in year 2007-08 is higher than 2006-07 and 2008-09

5) LIQUID RATIO:- A variant of current ratio is the liquid ratio which is designed to show the amount of

cash available to meet immediate payments. It is obtained by dividing the liquid assets by

liquid liabilities.

= Liquid Assets Liquid Liabilities Liquid Ratio for year 2007 = 430990554-5680500 21391757

= 37410054 21391757 = 1.75:1

Liquid Ratio for year 2008 = 90228287-7970693 66633718

= 32257594 66633718 = 0.484:1



Liquid Ratio for year 2009 = 61402995-0 55260886

= 61402995 55260886 = 1.11:1

2006-072007-08

2008-09

ratio0

0.20.4

0.6

0.81

1.2

1.4

1.6

1.8

ratio

ratio

Interpretation:After the observation we can conclude that liquid ratio in year 2006-07 is higher than 2007-08 and 2008-09.

6) OPERATING RATIO:-

It is ratio showing relationship between costs good sold plus operating expenses and net

sales. It shows the efficiency of the manager.

= COGS + Operating exp.*100Net Sales

Operating ratio for 2007 - 102075830+21908218*100110950633=112%

Operating ratio for 2008- 146459457+36188355*100165082647=111%

Operating ratio for 2009- 104223456+25748468*100117633034

=110%year ratio2006-07 112.00%

2007-08 111.00%

2008-09 110.00%


year ratio

2006-07 1.75:1%

2007-08 0.484:1%

2008-09 1.11:1%

52


2006-072007-08

2008-09

ratio10900.00%

10950.00%

11000.00%

11050.00%

11100.00%

11150.00%

11200.00%

ratio

ratio

Interpretation:After the observation we can conclude that Operating ratio in year 2006-07 is higher than 2007-08 and 2008-09.

7) EXPENSE RATIO :-

Expense ratio means ascertaining relationship between operating expenses and net

sales.

= Expenses

Net sales *100

Expense ratio for 2007- 21908218*100110950633

=19.74%

Expense ratio for 2008- 36188355*100 165082647=21.92%

Expense ratio for 2009– 25748468*100 117633034=21.88%

year ratio



2006-07 19.74%

2007-08 21.92%

2008-09 21.88%

2006-072007-08

2008-09

ratio1850.00%

1900.00%

1950.00%

2000.00%

2050.00%

2100.00%

2150.00%

2200.00%

ratio

ratio

Interpretation:Expense ratios indicate that in year 2007-08 is higher than 2006-07 and 2008-09.

8) RETURN ON CAPITAL EMPLOYEED :-

It is an index of profitability of business and it is obtained by comparing net profit

with capital employed. The ratio is normally expressed in the percentage.

Net profit before interest and tax*100

Capital Employed

Return on capital employed ratio for 2007 = 6780794*100

44499899=15.24%


63756543=25.37%


63067898=17.22%



year ratio

2006-07 15.24%

2007-08 25.37%

2008-09 17.22%

2006-072007-08

2008-09

ratio0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

ratio

ratio

Interpretation:After observation of all result we can conclude that Return on capital employed ratio in year 2007-08 is higher than 2006-07 and 2008-09

8) RETURN ON SHARE HOLDER ‘S FUND:-The ratio is obtained by dividing net profit after deduction of preference dividend by the

amount of ordinary share capital plus free reserves.

Net profit after tax*100

Share holder’s fund

Return on share holder’s fund ratio for 2007 = 6149916*100

39129487=15.72%

Return on share holder’s fund ratio for 2008 = 15476655*100

53687206=28.8%

Return on share holder’s fund ratio for 2009= 10255543*100

63067898=16.26%



year ratio

2006-07 15.72%

2007-08 28.80%

2008-09 16.26%

2006-072007-08

2008-09

ratio0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

ratio

ratio

Interpretation: The Return on share holder’s fund ratio of 2007-08 is higher than 2006-07 and 2008-09.so, investor would be template to invest in 2007-08.thus this ratio give guidance to investors.

9) ACID TEST RATIO:-The measure of absolute liquidity may be obtained by comparing only cash and bank balance

as well as readily marketable securities with liquid liabilities.

= Quick assets Liquid liability

Quick ratio for 2007 = 757882521391757=0.35:1

Quick ratio for 2008 = 5223606466633718=0.78:1

Quick ratio for 2009 = 4199893355260886=0.76:1

year ratio

2006-07 0.35%

2007-08 0.78%

2008-09 0.76%



2006-072007-08

2008-09

ratio0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

ratio

ratio

Interpretation: The ACID TEST RATIO of 2007-08 is higher than 2006-07 and 2008-09.so,investor would be template to invest in 2007-08.thus this ratio give guidance to investors.

9) LONG TURM FUND TO FIXED ASSETS RATIO:-

The ratio shows the relationship between fixed capital and fixed assets. The long term

Funds are divided by fixed assets its called long term fund to fixed assets ratio.

=Long term fundFixed assets

Long term fund to fixed assets ratio for 2007= 444998993734864=11.91



year ratio

2006-07 11.91%

2007-08 16.36%



2008-09 21.88%

2006-072007-08

2008-09

ratio0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

ratio

ratio

Interpretation: The Long term fund to fixed assets ratio of 2008-09 is higher than 2006-07 and 2007-08.so, investor would be template to invest in 2007-08.thus this ratio give guidance to investors.

10) DEBTOR’S RATIO:- The ratio s

Whose the number of days taken to collect the dues of credit sales. It means that

dividing the amount of debtors and bills receivable by the credit sales. The credit sales

is obtained by dividingthe total annual sales by 365.

= Debtors bills receivable*365

credit sales

Debtor’s ratio for 2007 = 22318529*365

110950633

=74 days


159621142

=59days




116733034

=61days

year days

2006-07 74

2007-08 59

2008-09 61

2006-072007-08

2008-09

days0

10

20

30

40

50

60

70

80

days

days

Interpretation: The Debtor’s ratio of 2006-07 is higher than 2008-09 and 2007-08.so, investor would be template to invest in 2007-08.thus this ratio give guidance to investors.

12) FIXED ASSETS TURN OVER RATIO:-

= SalesFixed assets

Fixed assets ratio for 2007 = 1109506333734864

=29.71 times


=40.97 times


=40.49 times

year ratios



2006-07 29.71%

2007-08 40.97%

2008-09 40.49%

2006-072007-08

2008-09

ratios0.00%5.00%

10.00%

15.00%

20.00%25.00%

30.00%

35.00%

40.00%

45.00%

ratios

ratios

Interpretation: The Fixed assets ratio of 2007-08 is higher than 2006-07 and 2008-09.so, investor would be template to invest in 2007-08.thus this ratio give guidance to investors. 13) WORKING CAPITAL TURNS OVER RATIO:-

= SalesWorking capital

Working capital turns over ratio for 2007 = 11095063321698797

=5.11 times


=6.76 times


=19.00 times

year ratios

2006-07 5.11%



2007-08 6.76%

2008-09 19.00%

2006-072007-08

2008-09

ratios0.00%

5.00%

10.00%

15.00%

20.00%

ratios

ratios

Interpretation: The Working capital turns over ratio of 2008-09 is higher than 2006-07 and 2007-08.so,

investor would be template to invest in 2007-08.thus this ratio give guidance to investors.

14) TOTAL ASSETS TURNOVER RATIO:-

= Total Sales

Total Assets

Total Assets Turnover for year 2007 = 110950633 90559233

= 1.22:1


= 1.69:1


= 1.70:1

year ratios



2006-07 1.22%

2007-08 1.69%

2008-09 1.70%

2006-072007-08

2008-09

ratios0.00%0.20%0.40%

0.60%

0.80%1.00%

1.20%

1.40%

1.60%

1.80%

ratios

ratios

Interpretation: The Total Assets Turnover ratio of 2008-09 is higher than 2006-07 and 2007-08.so, investor would be template to invest in 2007-08.thus this ratio give guidance to investors.

15) RETURN ON INVESTMENT RATIO:- = Net Profit * 100 Investment

Return on Investment for year 2007 = 6149916* 100 43733815

= 14.06%

Return on Investment for year 2008 = NIL

Return on Investment for year 2009 = 10255543 * 100 4924380

= 208.26%

year ratios

2006-07 14.06%



2007-08 0.00%

2008-09 208.26%

2006-072007-08

2008-09

ratios0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

ratios

ratios

Interpretation: The RETURN ON INVESTMENT RATIO of 2008-09 is higher than 2006-07 and 2007-08.so, investor would be template to invest in 2008-09.thus this ratio give guidance to investors.16) STOCK TURN OVER RATIO:

= CogsAverage stock

1) Stock turn over ratio for 2007 = 75294299

9694370

=7.77


9063225

=11.14


39853465

=1.76

year ratios

2006-07 7.77%

2007-08 11.14%



2008-09 1.76%

2006-072007-08

2008-09

ratios0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

ratios

ratios

Interpretation:After the observation we can conclude that Stock turn over ratio in year 2007-08 is higher than 2006-07 and 2008-09



6. CONCLUSION

CONCLUSION:

It was remember able movement to undertake an industrial visit in Roadtech equipment (P)

Ltd. By undertaking an industrial training at the above organization I learned lot many new

things in relation to practical side of the organization. I took training in various departments

like marketing, finance, human resource and production. I got insights regarding the

production process, technology, their product mix, pricing policy, sales promotion, some key

issues of HRM and also capital structure, information and analysis of key ratios.

Indeed, this industrial training proves very beneficial to me and definitely helps me in my

study of business administration.



7 BIBLIOGRAPHY

REFERENCE BOOKS:-

Marketing management –by Philip kotlar & Kevin lane Keller

Finance management – by m.y.khan & p.k.jain



8.ANNEXURE



Balance Sheet of Roadtech Equipment Pvt. Ltd. As on 31 st March 09

PARTICULARS SCHEDULE

AS ON 31sMARCH -09

AS ON 31st MARCH -08

1 SOURCES OF FUNDS :

(A) SHARE HOLDERS' FUNDS

Share Capital A 20,00,000 20,00,000 Reserve & Surplus B 5,16,87,206 3,71,29,487 5,36,87,206 3,91,29,487 (B) LOAN FUNDS : Secured Loans C. 1,00,69,337 53,70,412 Unsecured Loans D. 59,07,084 2,34,50,483 Deferred Tax Liability 8,66,183 10,27,309 7,05,29,810 6,89,77,691

2APPLICATION OF FUNDS :

(A) FIXED ASSETS :



Gross Block 1,07,55,886 1,01,91,556 Less : Depreciation 68,59,794 64,56,692

NET BLOCK E. 38,96,092 37,34,864

(B) INVESTMENT F. 0 4,37,33,815

(C) DEFERRED TAX ASSETS 0 1,17,255

(D) CURRENT ASSETS,LOANS & ADVANCE

Inventories G. 1,24,45,950 1,31,93,200 Sundry Debtors F. 2,55,46,273 2,23,18,529 Cash & Bank Balance I. 8,69,756 2,73,232 Loans & Advance J. 5,13,66,308 73,05,593 9,02,28,287 4,30,90,554Less :-

CURRENT LIABILITES & PROVISIONS:

Current Liabilities Expenses Payable & Provisions K. 1,77,20,331 1,60,84,512 Proposed Dividend & Tax L. 58,74,238 50,44,160 0 5,70,125

NET CURRENT ASSETS ….. 6,66,33,718 2,13,91,757

7,05,29,810 6,89,77,691 Accounting Policies and Notes to Accounts in term of our Attached report of even date. AS PER OUR REPORT OF EVEN DATE

For Roadtech Equipments Pvt. Ltd.,

For Virendra Chinubhai & Co.,

Profit & Loss A/C of ROADTECH EQUIPMENT PVT.LTD. for the year ended 31st march 09


AS ON 31stMARCH-09

AS ON 31stMARCH-08

INCOME :

Income from Operations M. 159621142 110950633

Other Income N. 8522651 19007 168143793 110969640

Increase (Decrease) in inventories O. (-3061146) 2940677

165082647 113910317

EXPENDITURE :

Raw-materials & other consumption P. 104035181 77445968

Other expenses Q. 36188355 21908218 Personal Related Exp. R. 2290925 2168745 Financial charges (Net) S. 2945808 2566867



Depreciation E. 499594 472858 145959863 104562656 PROFIT BEFORE TAX 19122784 9347661 Less : Provision for Taxation 3690000 3315000

Deferred Tax Liabilities (Assets) (-43871) (-117255)

PROFIT AFTER TAX FOR THE YEAR 15476655 6149916

Add : Prior period Adjustments (-918936) 515085

Balance B/F from P.Y. 22209486 17114610

PROFIT AVAILABLE FOR APPROPRIATION 36767205 23779611

APPROPRIATION General Reserve 0 1000000

Proposed Dividend & Tax 0 570125

Balance Carried to B/S. 36767205 22209486

36767205 23779611 Accounting Policies and Notes to Accounts in term of our T. Attached reports of even dates. AS PER OUR REPORT OF EVEN DATE


AS ON 31sMARCH -09


1 SOURCES OF FUNDS :

(A) SHARE HOLDERS' FUNDS

Share Capital A 2000000 2000000 Reserve & Surplus B 61067898 51687206 63067898 53687206 (B) LOAN FUNDS : Secured Loans C. 0 10069337 Unsecured Loans D. 0 5907084 Deferred Tax Liability 0 866183 63067898 70529810

2APPLICATION OF FUNDS :

(A) FIXED ASSETS : Gross Block 9271478 10755886



Less : Depreciation 6388846 6859794

NET BLOCK E. 2882632 3896092

(B) INVESTMENT F. 4924380 0

(C) DEFERRED TAX ASSETS 0 0

(D) CURRENT ASSETS,LOANS & ADVANCE

Inventories G. 0 12445950 Sundry Debtors F. 19404062 25546273 Cash & Bank Balance I. 526619 869756 Loans & Advance J. 41472314 51366308 61402995 90228287Less :-

CURRENT LIABILITES & PROVISIONS:

Current Liabilities K. 30000 17720331 Expenses Payable & Provisions L. 6112109 5874238 Proposed Dividend & Tax 0 0

NET CURRENT ASSETS ….. 55260886 66633718

63067898 70529810 Accounting Policies and Notes to Accounts in term of our T. Attached report of even date. AS PER OUR REPORT OF EVEN DATE

For Roadtech Equipments Pvt. Ltd., For Virendra Chinubhai & Co.,

Profit & Loss A/C of ROADTECH EQUIPMENT PVT. LTD. for the year ended 31st march 09

PARTICULARS SCHEDULEAS ON 31stMARCH-09

AS ON 31stMARCH-08

INCOME :

Income from Operations M. 116733034 159621142

Other Income N. 3227787 8522651 119960821 168143793

Increase (Decrease) in inventories O. -4285754 -3061146

TOTAL 115675067 165082647



….,

EXPENDITURE :

Raw-materials & other consumption P. 72348389 104035181

Other expenses Q. 25748468 36188355 Personal Related Exp. R. 3079068 2290925 Financial charges (Net) S. 0 2945808 Depreciation E. 544782 499594 101720707 145959863 PROFIT BEFORE TAX 13954360 19122784 Less : Provision for Taxation 4565000 3690000

Deferred Tax Liabilities (Assets) 866183 43871

Prior period Adjustments 874851 918936

PROFIT AFTER TAX FOR THE YEAR 9380692 14557719

Balance B/F from P.Y. 36767205 22209486

PROFIT AVAILABLE FOR APPROPRIATION 46147897 36767205

APPROPRIATION

Proposed Dividend & Tax 0 0

Balance Carried to B/S. 46147897 36767205

T. 46147897 36767205 Accounting Policies and Notes to Accounts in term of our Attached reports of even dates. AS PER OUR REPORT OF EVEN DATE

PARTICULARS

AS ON 31stMARCH-09


SHARE CAPITAL

AUTHORISED SHARE CAPITAL

300000 Equity shares of Rs. 10/- each. 3000000 3000000

SCHEDULE - A ISSUED, SUBSCRIBED



& PAIDUP :

200000 Equity Shares of Rs. 10 /- each 2000000 2000000

2000000 2000000

SCHEDULE - B

RESERVE & SURPLUS :

General Reserve Opening Balance 148920001 13920001 Transfer from PLA 0 1000000 14920001 14920001 Profit & Loss A/c. 36767205 22209486 51687206 37129487 SCHEDULE - C SECURED LOAN :

CC Hypothecation from the Bank 10069337 5370412

10069337 5370412

* ( Against hypothecation of stock & book debts

Also Secured by equitable mortgage of land &

building & plant & machinery - & personal guarantee

Of directors.) SCHEDULE -D UNSECURED LOAN :

Deposit from Shareholders & directors' relatives 0 13111754

ICD 5907084 10338729 5907084 23450483 SCHEDULE -F INVESTMENT :

Following Equity Share of Rs. 10/- each fully paid-up.

UNQUOTED SHARES :

1080000 Apollo Ind. & Proj. Ltd. 0 6733815

270000 Apollo Earthmovers Pvt. Ltd. 0 27000000

680000 Zamzam Exports Ltd. 0 10000000 0 43733815 SCHEDULE -G INVENTORIES Raw Materials 7970693 5680500 Consumable Stores 189503 165800 Finished Goods 4285754 7346900 (As Certified and valued by



the management) 12445950 13193200

PARTICULARS

AS ON 31stMARCH-09


SCHEDULE - H SUNDRY DEBTORS :

(Unsecured, Unconfirmed & considered goods)

Outstanding for more than six months 14528312 4648189

Others 11017961 17670340 25546273 22318529 SCHEDULE - I

CASH & BANK BALANCES :

Cash on hand 213168 137748

Current account With Schedule Bank 656588 135484

869756 273232 SCHEDULE - J LOANS & ADVANCES :

(Unsecured, Unconfirmed & Considered Goods)

Sundry Advances 46314853 3013212 Advance Income tax & TDS 4608331 4027391

Sundry Deposits & Taxes Receivable 443124 264990

51366308 7305593 SCHEDULE - K

I) CURRENT LIABILITES :

Creditors for Goods & others 17720331 1684512

17720331 1684512 SCHEDULE - L I) PROVISIONS : Fringe Benefit tax 0 7000 Water charges 562 562 Audit & Legal Fees 50000 80000 Commission to Directors 854283 491982 ESIC 7786 7761 Electric Bill 55013 59113 Providend Fund 29427 22229



Sale tax / Vat 445000 193000

Salaries & Apprentice Salary 47896 46989

Professional tax 0 520 Bonus & Gratuity 229853 188941 Wages 83827 83771 Telephones bill 23756 6183 Salaries to Directors 50000 50000 TDS 298435 484572 Director Bonus 8400 6000 Income tax Provisions 3690000 3315000 IT TCS 0 537 5874238 5044160

PARTICULARS

AS ON 31stMARCH-09


SCHEDULE - M

INCOME FROM OPERATIONS :

Sales 142012858 106699083 Resale’s 17113472 3930726 Sale of Scraps 494812 320824 159621142 110950633

SCHEDULE - N

OTHER INCOMES : Kasar - Vatav 20782 0 Profit on sale of Shares 8246185 0 Rate Difference 99375 19007 Vat 156309 0 8522651 19007

SCHEDULE - O

INCREASE / DECREASE IN INVENTORIES :

CLOSING STOCK : Finished Goods 4285754 7346900 OPENING STOCK : Finished Goods

Increase (Decrease) in inventories 7346900 4406223

(-30611146) 2940677

SCHEDULE - P

RAW-MATERIAL & OTHER CONSUMPTION :

Opening stock 5680500 6195540 Purchases 103249644 74779259



108930144 80974799 Stock at Close 7970693 5682500

RM CONSUMPTION 100959451 75294299

Store & Tools Consumption 3068815 2149922

Packing Materials 6915 1747 104035181 77445968

SCHEDULE - Q

OTHER EXPENSES :


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