SAUKEM

A

REPORT ON

SAURASHTRA CHEMICALS LTD.

PORBANDAR.

Student’s Signature

(SADIA JAYSUKH)

31-

Declaration

1

SAUKEM

I, the undersigned, SADIA JAYSUKH the student of

F.Y.BBA here by declared that project work presented in this

report is my own work and has been created by me.

This has not been previously submitted to any other

university.

Date :-

Place :- PORBANDAR

Roll no. :- 102

Student’s Signature

2

SAUKEM

This is to certify that Mr. JAYSUKH C

SADIA Student of F.Y. BBA has carried out

project work embodied in this project report

under my guidance and supervision and it is

his own contribution.

Guided By

Date:-

Place :-

3

SAUKEM

Preface

This report has been prepared on the basis of practice

training undergone at “Saurashtra Chemicals Ltd”… the various

departments visited by me are Marketing Department, Personnel

Department, Research and Development departments etc. The

information printed in this report is a perfect math of theoretical

concepts and practical applications. Most of the information has

been received directly from the concerned officers. Information has

also been received taking interviews from the Managers and

Departmental Heads of the organisation. .

4

SAUKEM

Acknowledgement

I feel great pleasure to present this report before you. I am

thankful to all the members of the unit, who has helped me in

guidance and collecting necessary information.

I am very much thankful to manager, officers and workers of

“Saurashtra Chemicals Ltd” who have provided as proper guide

and gave necessary information about the unit which I am

incorporating in this report.

Date :-

Place :-

Student’s Signature

5

SAUKEM

INDEX

Sr. No. Particular Page No.

01 General Information About Industry 8

02 General Information 9

03 Personnel department 17

04 Production Department 41

05 Marketing Department 49

06 Research And Development Department 61

07 Financial Department 62

08 Summary & Finding 83

09 Conclusion 85

10 Bibliography 86

6

SAUKEM

GENERAL INFORMATION ABOUT

INDUSTRY

This industry is mainly in private sector. The Hindustan organic

chemicals ltd. is the only central public sector unit engaged in the manufacture

of basic chemicals on a barely large scale used in the manufacture process of

drugs and pharmaceuticals, pesticides, dyes, dye intermediates and plastics.

The public sector unit manufactures a wide range of chemicals. The order of

10,000 tones phenol projects were to be commissioned by 85.86.

In India chemical industry has a high rate of technological obsolesces

and there is an urgent need for up gradation of technology. A major trust also

requires to be given in R & D activities in chemical industry in seventh plan to

bring improvements in the existing process and technology, and also to obtain

higher yields. Production control and safety measures are other vital aspects of

chemical industry, which requires careful consideration.

Thus there are many important aspects, which heed improvement in

his field.

7

SAUKEM

GENERAL INFORMATION

Sr. No. Particulars Page No.

01 Introduction 10

02 History And Development 11

03 Location Factors 12

04 Company’s Organisation Structure 13

05 Size Of The Organisation 14

06 Company’s Mission 15

07 Corporate Goals And Objectives 16

8

SAUKEM

INTRODUCTION

NAME :- SAURASHTRA CHEMICALS LTD.

(NIRMA GROUP)

LOCATION :- PORBANDAR

PRODUCT :- Soda Ash, Bromine

Regd. Office & Works :- NIRMA LTD.

Porbandar - 360575

GUJARAT

Regd. Trade Mark :- SAUKEM

Motto :- “The Name That Inspires Trust”

Bankers :- UCO Bank

State Bank Of Saurashtra

State Bank Of India

Union Bank Of India

Central Bank Of India

Auditors :- M/S. Lodha & Co.

Chartered Accountants

12, Bhagat Singh Marg,

New Delhi—110 001

Solicitors :- M/S. Khaitan & Co. Kolkata

9

SAUKEM

HISTORY AND DEVELOPMENT

“Saurashtra Chemicals Ltd.” Porbandar which is known as

SAUKHEM is one of the largest Soda Ash manufacturing units in the country.

SAUKEM situated besides the Arabian Sea of Porbandar (Gujarat), well

known as the birth place of Mahatma Gandhi. It was established in 1956

under flagship of Jiyaji Rao Cotton Mill Gwalior. It started its production

December 1959.

As far as position is concerned Tata chemicals starts first, then GHCL

is second and SAUKEM stands third in India. SAUKEM has come a long way

since then firmly establishing itself in high quality product and making

remarkable improvements both in service and quality of products.

Its main products are Soda Ash (Dense & Light), Soda Bicarb, Caustic

Lye and Bromine. It started with installed capacity of 66,000 tones per year.

Today is has achieved 3,65,000 tones per year.

10

SAUKEM

LOCATION FACTORS

Selection of Porbandar as a site for the location of this

factory was easy availability of raw material. The factors are:-

Main raw material, which is obtained from limestone’s, is

near to factory.

Other necessary Raw Material like Salt & Sea water are near

due to sea cost.

Basic need like electricity is cheaper in Gujarat as compare

to other states.

Porbandar is well connected by road, sea rail, & airways to

major cities.

11

SAUKEM

COMPANY’S ORGANISATION

STRUCTURE

E.D :- Executive Director

Jt. P. (O) :- Joint President Operation

Sr. V.P. (P) :- Senior Vice President

Sr. V.P. (P&A) :- Senior Vice President Personnel and Administration

G.M :- General Manager

E.V.P. (O) :- Executive Vice President

12

TechnicalDept.

Legal/ Adm

Quarry

HRD/ Personnel ant Adm

MarketingSales

Commercial Finance

E.D

Salt work

J t. P. (o) Sr. V. P (P)

Sr. V. P. (P/A)

G. M. G. M.

E.V.P. (o)

Process

Maintains R. & D. T. P. S. Project

SAUKEM

SIZE & FORM OF THE

ORGANISATION

Every industry is divided into three size,

S.S.I

(Small Scale Industry)

M.S.I

(Medium Scale Industry)

L.S.I

(Large Scale Industry)

This organisation is large-scale industry (L.S.I) with huge investment

in machineries.

This organisation has adopted line & staff type of organisation.

13

SAUKEM

COMPANY’S MISSION

(1) To provide ultimate value satisfaction to its customers in terms of

Quality commensurate with price through:-

Excellence In Technology

Management Expertise

Total Quality Management

(2) To make it a preferred organisation for its, both present and future:-

Employees

Suppliers/Customers

Related Agencies And Society At Large

Continue its march towards progress and retain its front line position.

14

SAUKEM

CORPORATE GOALS AND

OBJECTIVES

Company has its own culture & identity in business world. It is the

effort of company to maintain this identity & be No. 1 in global market.

Company has fixed its goals and laid down some certain missions to achieve

them.

CORPORATE GOALS

Maximum return to shareholders.

To improve company’s position from No.3 to No. 2 in Soda Ash

business.

To keep a slim & trim but fully satisfied management term to operate

faster and to achieve higher levels of growth effectively.

Bench mark SAUKEM products, processes, systems and results with

international best towards KAIZEN which means continual improvement and

ZII i.e. Zero Investment Improvements.

15

SAUKEM

PERSONNEL DEPARTMENT

Sr. No. Particular Page No.

01 Introduction 18

02 Personnel Departments Org, Structure 19

03 Recruitment, Selection And Induction 20

04 Job Description 22

05 Performance Appraisal System 23

06 Training And Management Development 27

07 Promotion And Transfer Policy 29

08 Motivation Tools 30

09 Wage And Salary Administration 31

10 Welfare Activities 32

11 Grievance Handling Procedure 40

16

SAUKEM

INTRODUCTION

Management is development of people sand not the direction of things.

Management of personnel and administration is one and the same, they should

never be separated.

In modern industrial system, the production is the result of the joint

effort of all factor of p0roduction i.e. Land, Labor, Unlike other factor of

production is an active factor and control all other factors and co-ordinates

them to get the maximum output at minimum cost. Layout is unimportant

element of cost also and we can very easily reduce the cost of layout buy the

best necessary to seek the co-operation of the human farce to get the

maximum benefit out of the efforts it puts in.

This aspect can only be satisfied by personnel management.

17

SAUKEM

PERSONAL DEPARTMENT’S ORG.

STRUCTURE

18

Sr. V.P.(P.&A)

HRD PO/TO/First Aid

Legal

Sr. Mgr Dy. Gm(P & IR)

Dy. GMLegal

ASST. Mgr

PO First Aid TO Sr. Dy.Mgr

Officer Staff Jt. Mgr Officer

Staff Dy. Mgr

Officer

Jt. Officer

Staff

SAUKEM

RECRUITMENT, SELECTION &

INDUCTION

Recruitment :-

Recruitment is the process or searching for prospective employees and

stimulates them to apply for job in the organisation.

It means recruitment deals with discovering potential employees for

actual organisation vacancies. Therefore, it has been regarded as the most

important function of the personnel department because it is necessary that

proper person hold proper position.

The recruitment policy of the company is—

1) Publication In Newspaper

2) Campus Interview

3) Internal Recruitment

4) Consultants (Placement Agencies)

Selection :-

Selection means putting right person at the right place. The company’s

selection procedure is:-

1) Screening Of Application

2) Preliminary Interview

3) Written Test

4) Group Discussion

5) Final Interview

6) Offer Letter

7) Reference Check

19

SAUKEM

Induction:-

When a new staff joins an organisation, he enters in the new

surroundings. He has always confusion. To overcome the rovlem, the

induction technique is followed, by which new employees are rehabilitated

into the changed situation and introduced to the practices, policies and

purposes of the organisation.

Induction process followed by SAUKEM is as follows:-

1) Introduction In Department

2) Introduction With Head

3) Introduction In Interrelated Department

4) To Inform About Rules And Regulations.

20

SAUKEM

JOB DESCRIPTION

Job description is a written record of the duties, responsibilities and

requirement of particular job. It is a statement describing the job in terms of its

duties, working condition and hazard. So the job description means providing

guidance and the information to the candidates about their job for which they

are selected.

SAUKEM the H.R. Manager of the company for all types of

employees middle level employees as well as executive employees at

managerial level gives job description.

The statement of job description of SAUKEM is very useful to the

employees of the company. They can easily aware the organisation

relationship and duties on a given job.

Thus, job description provides knowledge about what, where and how

to perform the job.

21

SAUKEM

PERFORMANCE APPRAISAL

SYSTEM

The performance appraisal form of the company is as under:-

PERFORMANCE APPRAISAL FROM

NAME OF THE ASSESSED:

DESIGNATION:

DEPARTMENT:

Employee’s personnel particulars

(to be filled by assesses himself)

(1) Name (In Full)

(2) Father’s Name

(3) Date Of Joining

(4) Present Designation

(5) Date Of Birth

(6) Qualification

(7) Present Address

(8) Permanent Address

(9) Date Of Last Promotion

(10) Experience Before Joining This Org.

SI No. Name Of The Org. From The Designation

(11) Training Attended

Internal;

External;

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SAUKEM

(12) Family Details

SI No. Name Birth Date Qualification Relationship

PART 1

(TO BE FILLED BY ASSESSES)

(1) YOUR STRENGTH:

(2) YOUR WEAKNESS:

(3) DO YOU FEEL YOUR POTENTIAL TAPPED PROPERLY. IF

NOT/AREA WHERE YOUR OPTIMUM POTENTIAL SHOULD BE

UTILIZED.

(4) DO YOU FEEL YOUR PERFORMANCE IS 100% O.K. IF NOT

WHAT ARE THE CONSTRAINTS.

(5) DO YOU NEED TRAINING TO IMPROVE YOUR

PERFORMANCE? IF YES WRITE THE FIELD.

Signature

23

SAUKEM

PART 2

A

(To be filled by assessor)

Expec-

Tation

(8—10)

Good

(7—8)

Satisfa-

Ctory

(5—6)

Unsatis-

factory

(A) knowledge of company’s

philosophy

(1) know the company’s goal &

mission

(2) contribute to achieve the goal

(3) follow the company’s mission in

his day to day working

15

(B) customer delight

(1) does he know his customers

(2) he make effort to delight his

customers

(3) right first time approach in his

day to day working

15

(C) cost consciousness

(1) does he differentiate cost and

value

(2) value addition in his work

(3) use “JUST IN TIME” in his area

(D) quality of work

(1) know quality parameter

(2) stick quality of work

Apply SPC & SQC in his Area

24

SAUKEM

Part 2

B

Marks Espec-

tation

Good Sarisf-

Actory

Unsatis

factory

(A) Job performance 16

(1) job knowledge

(a) acknowledge of his job

(b) work accuracy

(c) Achievement in

assigned jog

(2) Professional Approach

(a) Pro-activeness

(b) Effective resource

utilization

(c) Waste elimination

(B) personality & behavior 24

(1) leadership 6

(a) Decision making

(b) listening capability

(c) stimulation

(2) communication 6

(a) Clarity in comm..

(written & verbal)

(b) Listening capability

(c) Interpretation of

massage

(4) Adaptability

(a) Open mind

(b) Flexibility

(c) Transparency

25

SAUKEM

TRAINING AND DEVELOPMENT

OBJECTIVE

The organisation has abundance of human resources as the BRAIN

TRUST of the company. Company’s objective is to convert these human

resources in to its assets. To make it happen, company is continuously

recycling the human resources through formal and informal training and

development activities o update professional/technical knowledge and raise

the sill level veracity and adaptability of its employees. It is the company’s

objective to have a result oriented effective and efficient team in the

organisation. Management is developing a team having clear vision of

company and individual goals. To meeting this objective management also

developing an ethical and supportive culture in the organisation as well as

employees development.

NEED ASSESSMENT

To achieve the above objective, training need for various levels of

employee is identified to enhance the potential of employees and improve

their strength by removal of their weaknesses. Following methods are adopted

by the company for training need assessment.

Through Appraisal System

Through Employee Data Bank

Through Department Head’s Recommendation

On the basis of the above data HRD department analyze the need of

training to individual as well as department. After proper analysis the HRD

department decide the training need on given parameter.

Behavioral financial

Technical quality system

Mgt. Inf. Sys. Mgt. Dev. Prog.

TRAINING CALENDAR

26

SAUKEM

After assessing the training need HRD department collects information

from various external Training Institutes/Agencies regarding availability

training facility in different areas, competence of the faculty based on proven

recorded and programmed cost. After collection of such information HRD

department prepares the annual training calendar. While preparing such

training calendar senior management team involved to make the

implementation of the training calendar successful. Company has also

developed its internal faculty to impart training to various levels of employees.

APPROVAL OF TRAINING PROGRAMMED

HRD department will prepare proposal containing following details.

Training Brochure

Expenses Involved

Organizing Body

All proposals for external training containing the above said details

shall be forwarded to it Head through V.P (HRD & IR ) for approval.

FEED BACK

After completion of external training, participants are required to

submit a feed back report in writing to HRD department through V.P. (HRD &

IR) about the contents of training, participation and usefulness and shall

deposit the training material if any with HRD department, such material shall

be kept in the Training Center library for reference of other staff member.

27

SAUKEM

PROMOTION AND TRANSFER

POLICY

Promotion :-

Promotion involve movement of a person to higher status, more pay,

increased responsibilities and increased benefits in the same organisation there

are many bases to promote the workers.

So far as SAUKEM is concerned, the personnel department has their

performance appraisal system, with the help of this technique the employee

are promoted to higher jobs.

Only the company’s employees are promoted to higher jobs and not

the person from external sources. The promotion is given on the need basis as

per the vacancy and employees performance.

Transfer:-

Transfer is a movement of an employee from one job to another

without involving any substantial charges in his duties, responsibilities,

required kills, status and compensation

In this company transfers are also on the need base. If a person is not

suitable at one place or deparm4ent then he is given transfer.

28

SAUKEM

MOTIVATIONAL TOOLS

“Motivation is the result of processes, internal or external to the

individual that arouses enthusiasm and persistence to pursue a certain course

of action.”

Motivation is an important concept that has been receiving

considerable attention from academicians, research and practicing HR

mangers. In its essence, motivation comprised important elements such as the

need or content, search and choice of strategies, goal-detected behavior, social

comparison of rewards, reinforcement, and performance-satisfaction.

The increasing attention paid towards motivation is justified because of

several reasons. Motivated employees come out with new ways of doing jobs.

They are quality oriented. They are more productive. Any technology needs

motivated employees to adopt it successfully.

Motivation tools of the company are……………..

On The Spot Recognition

Certificate

KAIZEN System (ZII)

Special Increments

Cong Service Awards Like Silver Coins

Vector Service Award

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SAUKEM

WAGE AND SALARY

ADMINISTRATION

Wage is the remuneration paid against the service of the labor in the

productive process whether salary refers to the administrative and professional

level. Generally, wage is calculated on the basis of working hours or quality of

work done. It depends upon the policy of the company. A sound wage and

salary plan helpful in mai9ntaining good industrial relations.

At the time of selection of an employee, basis wage rate is fixed. In

addition to the basic wage rate various allowances as dearness allowance,

medical allowance etc. are added.

The company is giving regular bonus @ 20% each year.

Salary and wages are paid to the employees as per the government

rules & regulations.

30

SAUKEM

WELFARE FACILITIES

UNIFORM

With a view of maintain discipline in the factory and to streamline the

administration all staff members are being issued uniforms (permanent as well

as probationers).

QUANTUM OF UNIFORM

Staff members entitled for 2 pairs of uniform of prescribed colors in a

year.

COLOR CODE

Level of staff members Color of Shirt/Bushirt Color of trouser

(a) GM and above Off white Dark Gray

(b) By GM and below Dark Sky Blue Dark Navy Blue

Sukem Logo is to be got stitched at top on the right side of the left

pocked of the shirt / Bushirt.

STITCHING CHARGES

(I) Stitching charges of uniforms will be borne by the concerned

staff members.

(II) Incase of staff members who were being issued top coat by the

company earlier, the stitching charges of shirt in respect of such

staff members will be born by the company and the stitching

charges of trousers shall have to be borne by the staff members.

In case of any staff member leaves the employment of the

31

SAUKEM

company due to resignation before expiry of the six month s

from the date of issue of such uniform, a token amount of Rs.

200/- shall be deducted from the dues of such staff members

towards the cost of uniform. No staff member will be allowed

to come on duty without wearing the prescribed uniform.

RAINCOAT

One raincoat is issued to probationers/trainees and permanent staff

members once in four year.

If a staff member leaves the employment of the company before expiry

of 2 years from the date is issue of raincoat to him, such staff member is

required to deposit back the raincoat in the Stores Dept. failing which 50% of

the cost of raincoat shall be recovered from his dues.

CANTEEN

Tea, Nasta and Lunch are supplied to the staff members in the canteen

being in the factor at subsidized rates as under :-

Tea 0.18 Paisa Per Cup

Nasta 0.60 Paisa Per 100 Gram

Lunch 1.10 Rs. Per Thali

TOWN SHIP

Company has built a very big and well-furnished colony

BIRKASAGAR on the sea shore of Arabian sea about 1 km. away from the

works. The colony has a cosmopolitan base having residents from all parts of

32

SAUKEM

country where plenty of amenities for human life are available. Colony

consists of the following types of accommodation.

Executive Bungalows 11

B – Type quarters 100

C – type quarters 128

S – type quarters 100

G – type quarters 4

D – type quarters 294

------

Total 637

Bachelor accommodation 52

33

SAUKEM

AMENITIES IN THE COLONY

The colony provides all basic amenities to the residents of the colony

like English medium School. Consumer copping-Operative store, nationalized

Bank (branch of Central Bank Of India). Post Office, Medical centre,

Laxminarayan Temple, club for staff members and welfare centre for workers,

dairy farm etc.

BIRLASAGAR EDUCATION COMPLEX

Birla Sagar Education comprises comprised the following education

institutions.

English Medium School from KG to 12th standard (affiliated

to CBSE, Board Delhi)

Hindi Medium School from KG 10th standard ( affiliated to

CBSE, Board Delhi)

Around 1350 students belonging to the employees of the company as

well as residents of Porbandar are getting education in Birlasagar Education

complex. Staff and teacher are 65 in number, student of the institution have

been performing well in CBSE Board exams and have also secured positions.

Very nominal fees are being charged from children of the employees.

MEDICAL FACILITIES

SUKEM MEDICAL CENTRE

Sukem Medical Centre is running a dispensary it provides primary

treatment for minor ailments to the employees and their family members. This

medical centre has a team of experienced doctors in various fields. It is well

equipped with the facility for various pathological test, ECG, X-rays etc. this

medical Centre provides its service to around 30,000 patients in a years.

34

SAUKEM

SUSHILA BIRLA CHILD CARE

MOBILE UNIT

This mobile unit provides free of cost medical facilities to children of

surrounding villages. This mobile unit has a team of qualified medical

practitioners. The term visits the surrounding village once in a week and

provides treatment to child patients. This mobile unit is also well equipped

with pathological and portable x-rays facilities.

FAIR PRICE SHOP

Fair price shop is also running is Birlasagar Copping-op. Consumers

society where ration items like wheat, sugar, kerosene are sold to the ration

card holders in and around Birlasagar Colony.

TEMPLE

There is a LAXMINARAYAN TEMPLE in the colony. Here colony

residents come for their spiritual acquirement. It is an example of religious

harmony since festivals of different religions are celebrated here such as

Janmashtami, Ram Navmi, Ayyappa Pooja, and saraswati Pooja etc.

PLANTATION

Company is quite conscious about maintating pollution free

environment and ecological balance in the surrounding area of the factory as

well as colony. With this objective in mind, company has planted around 60

thousand plants with a view to motivate the residents of the colony for

plantation company has provident of the colony for plantation company had

provided tree guards free of cost in the colony.

WELFARE ACTIVITIES

All level of employees and their family members with the objective of

overall development of the colony residents.

35

SAUKEM

(1) SAUKEM CLUIB :-

Company has provided a very good club building for staff members

and this family with the facility of all types of indoor and out door games like

Badminton, TT, Carom, Billiard, Lawn tennis etc, Games & sports are being

arranged in the staff club on regulation programs at least once in a month.

Staff club also organizes annual competition in all out door sports and games

and gives prizes to the winners. Club also organizes picnic and excursions for

the members periodically.

Staff Club maintains a well-equipped Library containing a large

number of books in English, Hindi and Gujrati languages. It has also Reading

Room with the facility of daily newspapers and magazines.

(2) SUKEM LADIES CLUB :-

Membership of the Ladies ins on voluntary basis. Apart from

subscription of the members, company is also giving contribution to Ladies

Club is organizing regular recreational and cultural activities for its member.

(3) SUKEM WELFARE CENTRE :-

Under the chairmanship of Vice President (HRD & IR), Saukem

welfare Centre is organizing welfare activities for the worker and their family

members on regular basis. Its main activities are as under:-

LIBRARY

A large number of gooks in Gujrati and Hindi have been provided in

the library which opens for one from 6.00 p.m. to 7.00 p.m. on alternate days

and a large numbers of employees and their family members are availing this

facility.

36

SAUKEM

READING ROOM

Hindi, Gujrati and English newspaper and several magazines in Hindi

and Gujrati languages are provided in the Reading room. A large number of

employees and their family members are making use of this reading room

regularly. This reading room opens in the morning as well as in the evening.

TABLE TENNIS

Around 25 to 30 children of the workers and staff members are making

use of this TT facility in the evening daily.

CAROM

Carom boards are provided in welfare centre and many staff members,

workers and their fami9ly members are utilizing this facility.

FACILITY OF COMMUNITY HALL

Workers are provided to facility of using the community has at the

welfare centre on the occasions of marriage of their son/daughter and for

social and religious function.

GAME & ATHLETICS

Saukem welfare center provides the facility of outdoor games like

football. Holly ball and Cricket. Staff members, workers and their children are

playing these outdoor games in the Birlasagar Higher Secondary School’s

ground in the colony. Saukem welfare centre provides all infrastructure

required for outdoor games.

37

SAUKEM

ANNUAL TOURNAMENTS

Saukem welfare centre arranges annual tournaments at a very large

scale where in around 1000 participants takes active part in the games.

MAHILA UPKENDRA (LADIES SEWING CENTRE)

Company provided two D type quarter for running sewing centre in the

workers colony on regular basis where in around 15 sewing machines have

been provided.

CHILDREN PARK

A well-maintained children park is also provided in the colony for

recreation of colony children.

38

SAUKEM

GRIEVANCE HANDLING

PROCEDURE

Grievance handling is one of the most important tasks of management.

Grievance arises in the company due to un satisfaction among employees and

employers that results in disputes. There may be several reasons for arising

such disputes.

This company had adapted following grievance handling procedure

There is three Tier System.

FIRST TIER

If there is any grievance, the workers will report to the superior. On the

sport he head and the person concerned would discuss and solve the problem

SECOND TIER

If the problem is yet not solved then the department head will

immediately report to the management.

THIRD TIER

Even after the second tier, the problem is not solved, and then the labor

union and management will discuss and try to solve it.

The grievance handling procedure should be so smooth that the

industrial peace is maintained.

39

SAUKEM

PRODUCTION DEPARTMENT

Sr. No. Particulars Page No.

01 Main Products & Raw Material And

Sources Of Raw Material

42

02 Use Of Product 44

03 Manufacturing Process 45

04 Electricity & Power Plant 48

40

SAUKEM

MAIN PRODUCTION & RAW

MATERIALS AND SOURCES OF

RAW MATERIALS

Production of company.

The main production of Saurashtra chemicals Ltd. (SAUKEM) are

Soda Ash (Dense And Light)

Soda Bicarb

Caustic Lye

Bromine

The use of the product

Soda Ash Light Soda Ash is mainly used in soap, detergents, Sodium

glass, textile and dying units etc.

Soda Ash Dense Dense soda Ash mainly used in the manufacture of

glass.

Bromine Bromine is mainly used in pesticides and

Pharmaceutical Industry.

Refined Bicarbonate Refined Bicarbonates is mainly used in Bakery

and other Chemicals Industries.

Raw materials for manufacturing of the product :-

The main raw materials for manufacturing of Soda Ash are lime Stone,

Salt Hard Coke and Ammonia Gas. SAUKEM has its own Lime Stone

Quarries in the vicinity of around 20-25 kilometers away from the factory and

41

SAUKEM

also has its own Salt Works in Jamnagar District. SAUKEM has its won

power House of 15 Megawatt capacity for captive consumption.

Main sources of raw material for this company are

SALT :-

Salt is the important raw material in manufacturing of Soda Ash. The

Salt Works of SAUKEM are

Saurashtra Chemicals Ltd. Salts Works Vadinar

Saurashtra Chemicals Ltd. Salts Works Khejadia

Saurashtra Chemicals Ltd. Salts Works Gagva

Saurashtra Chemicals Ltd. Salts Works Bedi

Saurashtra Chemicals Ltd. Salts Works Sikka

Saurashtra Chemicals Ltd. Salts Works Parodia

LIME STONE

The mines for the limestone, which is th source for the raw material for

the SAUKEM , are

Adityana

Dharampur

Bhakharala

Bharwada

Bhos

Boricha (Zinjarka)

Ranavav

Kajavadri

ARD COKE

Hard Coke is also important raw material for manufacturing of Soda

Ash. This raw material is important from Indonesia and also obtained from

various mines few of them are mines in Dhanbad, Ranigani etc.

42

SAUKEM

USES OF PRODUCT

The uses of the product of this company are as under :-

Soda Ash light Soda Ash is mainly used in soap, detergents,

glass, textile and dying units.

Soda Ash Dense Dense is mainly used in the manufacture of

glass.

Bromine Bromine is mainly used in the Bakery and other

Chemical Industries.

Refined Bicarbonate Refined Bicarbonate is mainly used in the

Bakery and other Chemical Industries.

43

SAUKEM

MANUFACTURING PROCESS

The manufacturing process for the products of the company is

as under.

Two main raw materials are used viz. Salt (Sodium Chloride) and lime

Stone brine at a concentration of 304 gms / ltr. Of Sodium Chloride. The brine

thus produced is called crude Brine, which further required the purification to

remove calcium and magnesium impurities, magnesium is removed by adding

Milk of lime and Calcium is removed by adding Soda Ash. These impurities

removed in the form of sludge. The purified brine is first taken to Carbonating

Tower exit gas scrubber in order to remove the ammonia and unrelated Co2 in

a unit called LCL. Form LCL brine is taken to the absorber, where ammonia

(recycled and make up) is injected to reaction hence the brine is cooled at

various stage before it taken to the Carbonation Tower for Carbonation.

Lime is calcined in the Biotical shaft Lime Kiln By feeding the mixture

of limestone and coke from the top and blowing air from the bottom. The

calcined limestone is taken from the bottom of the lime kiln and stored in the

carbonating Tower. Carbonating Tower the main equipment or the conversion

of Sodium Chloride to Sodium Bicarbonate. the main reaction is as follows:

NH40H+CO2 NH4HCO3

Nacl+NH4HCO3 NaHCO3 NH4CI

The above reaction can take place only at low temperature. If the

temperature is high then the reaction will be reversible, thereby the efficiency

of conversion becomes poor.

44

SAUKEM

Sodium Bicarbonate is taken out form the Carbonating Tower in the

form of slurry called Magma. Magma consists of a moisture of sodium

bicarbonate in Solid form and other components viz. Ammonium Chloride,

Sodium Carbonate, Ammonium Carbonate, Bicarbonate, Sulphide and Iron is

traces, in addition to unrelated Sodium Chloride. the magma is taken filtration

for converting it into Sodium Bicarbonate (Crude Bicarb) is taken to Calcined

distiller for recovering ammonia and take to Ammonia Absorber.

2NaHCO3+ ∆ Ns2CO3+H2O+CO2

Co2 and water vapor are cooled in RGS gas cooler and gas is taken

back to carbonating Tower through compressor and Ammonia Condensate is

recovered back for the process in Distiller Columns.

Sodium Carbonate (Soda Ash) from Calcined is taken and stored in

silos land paced in gunny, HDPE bags of various sizes. For bulk consumption

675 kg packing is also being done.

DENSE SODA ASH

Dense sod ash in being manufactured by compacting light soda ash in

Briquetting Machine and disintegrated by crusher and is packed in 100kg

packing in gunny bags.

REFINED SODA ASH

Since the Sodium Bicarbonate coming from the filter (mentioned

above) contains ammonia and chloride impurities, this grade is not suitable for

consumption. Hence it is dissolved and calcined in DCB towers by using

steam i.e. Sodium carbonate is converted back to sodium carbonate. This

sodium carbonate solution is further carbonate in Refined Bicarbonate Tower

by using Co2 gas Sodium Bicarbonate thus produced inn the form crystals and

separated in Centrifuge and dried in the Drier before storing in refined

Bicarbonate silo.

45

SAUKEM

BROMINE

During the production of Salt from Sea Water Solar Evaporation the

spent brine also called Bittern (Brine left after the harvest of Sodium Chloride

Crystals) contains dilute Sodium Bromide. This sodium bromide is

concentrated by distillated and converted to sodium chloride by chlorination

(displacement method) and the pre-bromine is distilled and condensed before

bottled in 2kgs packing.

46

SAUKEM

ELECTRICITY AND POWER PLANT

SAUKEM has its own power plant of 15-magawatt capacity for captive

consumption.

Moreover, the unit often gets electricity from GEB.

The company started the power generation, with 200 employees in the power

plant.

CAPACITY

There are 4 generators with 5-magawatt capacity. So overall, capacity

is 20 megawatt.

47

SAUKEM

MARKETING DEPARTMENT

Sr. No Particulars Page No.

01 Introduction 50

02 Organisation Structure 51

03 Main Products And Its Market & It’s

Customers

52

04 Pricing Policy 53

05 Packing 54

06 Channel Of Distribution 55

07 Transportation 57

08 Advertising 58

09 Marketing Research 59

10 Other Information 60

48

SAUKEM

INTRODUCTION

”The success of the organisation is very

much depends upon the efficiency of marketing

department of an organisation.”

Marketing is analysis of organization, planning and controlling of

firms customers – impinging resources, policies, activities with a view to

satisfying the need and wants of chosen customer group at profit.

In other words marketing is the process of planning and executing he

conception, pricing, promotion and distribution of ideas, gods to create

exchanges that satisfy individual and organisation goals.

In short marketing is an idea or thinking or philosophy that concern

with satisfying the needs and wants of customers through exchange of goods

and services.

Marketing is working as heart of business. It is the performance of

business. The term marketing is quite broad and comprehensive, and includes

the techniques and methods required for selling. It is the duty of marketing

department of formulate systematic policies concerning distribution channel,

market segmentation, marketing research, packing, pricing etc.

49

SAUKEM

ORGANISATION STRUCTURE OF

MARKETING DEPARTMENT

Marketing / Sales

50

GM Marketin

g

Export Marketing Excise

Porbandar Zonal

Bombay Zonal

DelhiZonal

Kanpur Zonal

CalculattaZonal

Madras Zonal

SAUKEM

MAIN PRODUCTS, ITS MARKET &

ITS CUSTOMERS The main products of the company are

Soda Ash Light

Soda Ash Dense (NA2CO3)

Bromine

Sodium Bi Carbonate (NAHCO3)

These products are industrial products and use as raw materials for

further production in many other industries.

The Soda Ash Dense and Light are used in Soap And detergent

industries . while Soda Bicarb is used in food industries and bakeries.

Main customers are

Hindustan Lever Limited (HLL)

Ghadi Detergent

Glass Industries As Year Glasses

Reliance Petro-Chemicals Ltd.

Other Chemical Industries.

In India, about 60% of the market of this company is covered by

Hindustan Liver Limited. Nirma was the major customer of this company. But

now they have started their won plant of soda ash.

EXPORT :-

SAUKEM has vast market in foreign countries. SAUKEM exports its

product in Bangladesh, Srilanka, Nepal, Kuwait, Dubai, Oman etc.

51

SAUKEM

PRICING POLITY & PRICE OF THE

PRODUCTS

Pricing is an important element of the marketing mix. It is one of the

four Ps of marketing mix. Company set ups it pricing policy considering

various aspects such as demand, competition, government interference etc.

pricing policy should be such which generates demand and stands in the

competition. Every company has its own pricing policy.

The company has adopted “Going Rate Pricing Policy”. So price of the

products are formulated considering the competition in the market.

The objective of the pricing policy are

For The Survival Of The Firm

Maximum Current Profit

Maximum Sales Growth

Maximum Market Skimming

Product Quality Leadership

The main objective of the company is product quality leadership.

52

SAUKEM

PACKING

The packing of the product of this company is done as under:-

For Soda Ash Light

(1) 50 Kg. High Density Polythene Bags (HDPE)

(2) 75 Kg. Gunny Bags.

For Soda Ash Dense

(1) 100 Kg. HDPE

(2) 50 Kg. Gunny Bags

For Soda Bicarbonate

(1) 50 Kg. HDPE

(2) 50 Kg. Gunny Bags

Soda Ash refined is packed in HDPE bags.

The product of the company needs extra care for packing because soda

ash is hygroscopic.

53

SAUKEM

CHANNEL OF DISTRIBUTION

The company sales its product by tow ways as

They deal with customers directly form the head office. As these are

large customers or contract based customers.

The regional office of this company are

Porbandar

Ahemedabad

Mumbai

Delhi

Kanpur

Kolkata

Chennai

There are four zones and these regional offices are divided in to these

zones.

Regional Sales Manager

Stockiest

Dealers Direct Customers

Sub Dealers

Customers

54

SAUKEM

North Zone Kanpur, Delhi

West Zone Mumbai, Ahemedabad

East Zone Kolkata

South Zone Chennai

The company has appointed many consignees. So, when there is strike

or stock pilling, the consignees continue to sale and the company’s image is

not adversely affected.

55

SAUKEM

TRANSPORTATION

Transportation is an integral part of commerce. In today’s business

world, the importance of transportation can’t be overlooked.

SAUKEM has very excellent transportation service. The transportation

media for this company are

Trucks i.e. By Road

Containers i.e. By Railway

Wagons I.E. Also By Railway

Country Crafts i.e. By Sea (Port

Vassals

SAUKEM is located near to Porbandar. Here port facility is easily

available. The railway facility is also available. The trucks are available fro

outside the company premises from Transportation Company.

56

SAUKEM

ADVERTISING

Advertising is spreading of information. In communication

about the product and service but before the consumer and also

the firm which manufactures the products. In the present

marketing advertisement has become an inseparable part of

business.

In other word, advertisement is the media through which the customers

come to know about the products of the company.

This company doesn’t advertise directly. The stockiest and dealers

employed by the company mostly advertise at regional level.

They give advertisement in industrial pamphlets, in chemical

magazines etc.

57

SAUKEM

MARKETING RESEARCH

Marketing research is the systematic design, collection, analysis and

reporting of data and findi8ng relevant to a specific marketing situation facing

the company. Through marketing research the company can obtain the

information about market treads.

SAUKEM has employed many dealers and marketing experts who take

care about marketing tends.

58

SAUKEM

OTHER INFORMATION

There is a facility of suggestion box, which invites the suggestions of

the employees.

More over the production capacity of this company is about 900 tones

per day.

59

SAUKEM

3 RESEARCH AND

DEVELOPMENT DEPARTMENT

SAUKEM has full-fledged research and development department

where following activities are being carried out on regular basis:

fixing specifications for Raw Materials and their review

from time to time to economies consumption.

Evaluation of efficiencies of equipments installed.

Work on energy conservation and material

conservation.

De-bottlenecking and trouble shooting of the process.

Study of environmental aspects for reduction in

pollution levels.

Efforts for conservation of water.

Conceptualization and development of new products

and by-products.

60

SAUKEM

FINANCE DEPARTMENT

Sr. No Particulars Page. No

01 Introduction 63

02 Organisation Structure Of The Finance

Department

64

03 Financial Planning 65

04 Balance sheet 66

05 P/L A/L 67

06 Capital Structure 68

07 Capital Budgeting 69

08 Management Of Fixed Assets 70

19 Management Of Working Capital 73

10 Management Of Inventory 74

11 Management Of Receivables 76

12 Ratio Analysis& Interpretation 77

13 Leverage Analysis 81

61

SAUKEM

INTRODUCTION

Finance is the most important for the business because finance is the

life Blood of any organisation. Without finance we cannot run our business

efficiently and efficiently.

Finance management is the specified function of general management,

which is related to the procurement of finance and its effective utilization for

the achievement of the common goal of the organisation. It includes every

aspect of financial activities in the business.

Finance management is the operational activity of a business i.e.

responsible for obtaining and utilizing the funds necessary for efficient

operation.

In the modern age of organisation there is necessity to management of

finance. If the proper management is done, we can do all the work of company

in a food manner. So finance is very important for the company.

62

SAUKEM

ORGANISATION STRUCTURE OF

FINANCE DEPARTMENT

63

GM Finance

Report section

Accounts EmployeeDate

process

Costing Sales Accounts

SAUKEM

FINANCIAL PLANNING

In each and every field of management the planning is required. Not

only in management but planning in necessary everywhere.

Financial planning is one of the most important functions of finance

department. Financial planning means to decide in advance the financial

activities to be carried, on the basis of objectives determined. The main

objective of the firm is to get maximum profit out of minimum efforts from its

available resources.

The basic purpose of financial planning is to make sure the required

funds would be getting in time. And where such finance is to be invested?

While planning about the finance. We have to take care that there should no be

much capital or shortage capital.

So far as SAUKEM is concerned, there are three types of financial

planning based on time period.

SHORT TERM PLANNING

The short term is made to keep an eye on cash, sales, purchase, use of

funds, cash flow etc. the duration of short term planning generally for one

year.

MEDIUM TERM PLANNING

In medium term planning, company takes decision regarding the

circulating capital i.e. the working capital cycle to operate the business and

current assets of the company. The time limit for medium term planning is five

years.

LONG TERM PLANNING

In long term, plans about expansion, modernization, technological

changes etc. are done. The duration is five to ten years.

64

SAUKEM

BALANCE SHEET(Lacs Rs.)

Schedule As at30.09.2004

As at31.03.2003

I

II

Sources Of Funds Shareholder’s Funds

Shares CapitalReserve & Surpivs

Loan FundsSecured Loans

Unsecured LoansTotal

Application Of Funds Fixed Assets

Gross BlackLess: Depreciation

Net BlockCapital Work – In – Progress

Current Assets. Loans And Advances Inventories

Sundry DebtorsCash & Bank Balances

Loans & Advances

Less: Current Liabilities & Provisions

Current LiabilitiesProvisions

Net Current Assets Miscellaneous Expenditure (To The Extent Not Written Off Or Adjusted Profit & Lass Account

12

34

5

6789

1011

12

18,428.221,611.74

28,754.30472.96

49,267.24

31,646.609,241.16

22,405.447,058.05

29,463.49

6,477.972,902.82

91.851,707.07

11,179.71

12,523.13238.31

12,761.44(1,581.73)

93.32

21,292.16

18,428.221,611.74

21,122.694,820.9845,983.63

30,083.006,875.9323,207.077,097.1230,304.19

5,387.223,182.7484.491,598.6410,253.08

9,711.67360.0110,71.68181.41227.67

15,270.37

TOTAL 49,267.24 45,983.63

65

SAUKEM

P/L – A/L

(Lacs Rs)

INCOME SCHED For The 18 Months Period For The 18 Months 01.04.2003 To 30.03.2004 Period 01.04.2002

Sales Less: Excise Duty Recovered Other Income

ExpenditurePurchases Materials Manufacturing Other Expenses Prorate Premium On RedemptionOf-Preference Shares Interest

Profit/ (Loss) Before Deprecation & Exceptional Items Depreciation Profit/ (Loss) After Depreciation But Before Exceptional Items.Exceptional Items (Returned No.17 Of Schedule 17)Profit/(Loss) For The PeriodAdd: Loss Brought ForwardBalance Carried Forward To Balance SheetEarnings Per Shares (Basis & Diluted ) ( Refer Not No. 2007 Schedule 17)

13

1415

16

41,276.67 5,174.87 36,201.80

1.671.1837,872.98

370.0410,591.9324,523.20

43.916,163.23

41,692.31

3,819.332,387.32

6,206.65

184.866,021.79

15,270.37

21,292.16

(20.66)

27,350.903,548.23

23,802.67885.21

24,687.88

47.985,523.76

16,866.3329.27

3,117.9925,585.33

899.451,539.15

2,436.60

195.282,241.32

13,029.05

15,270.37

(8.34)

66

SAUKEM

CAPITAL STRUCTURE

Capital structure of a company is the make up on form an composition

of capitulation’s i.e. the type of securities to be issued and the relative

proportion of each type at scarily in the total capitulation. The nature at capital

structure depends marrly on the circumstances and the environmental factors

that a company is facing. The capital structure of SAIKIM limited is as

follows.

Capital structure

Particulars As on 31-3-04

(In Lakns)

Ason 31-3-03

(In Lakns)

Share capital

Reserve & surpivs

Funded Debt

Secured loan

Unsecured loans

18428.22

1611.74

21122.69

4820.98

18428.22

1611.74

19640.93

4895.80

Total capital 45983.63 44576.69

67

SAUKEM

CAPITAL BUDGETING

Capital budgeting is a very important financial and investment decision

of any firm. It relates to selection of an asset, as investment proposal benefits

of which are likely to be available in future.

Capital budgeting is employed to evaluate capital expenditure decision

which involves current outlay but are likely to produce benefits over a peril of

time longer than one year.

The methods of capital budgeting used by SAIKEM are as under: -

1. Average Rate Of Return.

2. Net Present Value

3. Pay Back

In SAUREM manager prepares capital budgeting and company it with

previous year for evaluating their financial decision they have consider

interment and benefits of the project.

68

SAUKEM

MANAGEMENT OF FIXED

ASSETS

Fixed assets means those assets. Which are somewhat, fixed on

permanent nature and remain with organisation for long duration. But the

management of fixed assets. We mean the efficiency issue to manage only

because large amount of fund is block into them.

SAUKEMS fixed assets include goodwill, trademark, tree hold land,

factor building, plant & machinery, furniture & fixture, equipment, vehicle

and computers etc.

Two important ratios will clear the fixed assets management.

(1) Level Of Fixed Assets:-

Level of fixed asses = Net fixed assets X 100

Total assets

2002-2003 = 30,304.19 X 100

40,557.27

= 74.72%

2003-2004

Net Fixed assets = 29,463.49

Total Assets = 40,643.20

69

SAUKEM

Transfer into 12 months are as under.

18 month net fixed assts = 29,463.49

12 month net fixed assts = ?

29,463.49 x 12 = 19642.33

18

18 month net fixed assts = 40,643.20

12 month net fixed assts = ?

40,643.33x 12 = 270,95.47

18

= Net fixed assets X 100

Total assets

= 19,642.33 X 100

27,095.47

= 72.49%

Comment:-

This ratio indicates percentage of fixed assets in total assets.

Hear as compared to last year his parentage is decreased. It indicates that

declare in the amount o fixed assets in the current year.

70

SAUKEM

(2) Assets turn over ratio:-

Assets turn over ration = sales X 100

Net Fixed Assets.

2002-2003 = 27,350.90 X 100

30304.19

= 0.90 times

2003-2004

= 27,51778

19,642.33

= 1.40 Times

Comment :-

This is ratio shows how many times fixed asset have been

turnover daring the year in comparison with sale this is activity ratio. It

indicates efficiency of the company to make the sales and recover investment

in fixed assets.

71

SAUKEM

MANAGEMENT OF WORKING

CAPITAL

Working capital is the most important need of every company.

Management of working capital usually involves in management or

administration i.e. planning and controlling current assets namely cash and

marketable securities, account receivable and inventories and also the

administration of current liabilities.

Whit the help of working capital management company can maintain

right cash balance so that flow of funds is maintain at derirable speed not

allowing any slow down an stop pages so objectives are achieves.

“Working capital is the amount of funds necessary to cover the cost of

operating the enterprise.”

In SAUKEM

Net working capital = Current Assets – Current liabilities

2002-2003 = 10,253.80 – 10,077.68

= 181.4

2003-2004 = 7453.14 – 8507.63

= - 1054.49

72

SAUKEM

MANAGEMENT OF INVENTORY

A large part of working capital in inventories. Inventories held the

prime position among the current assets in any organisation. In order to

minimize the cash revilements, inventory should be turned over as promptly as

possible. Inventory turnover ratio indicates how many time stock is purchases

during the year.

The purpose of inventory management is to keep stock in such a way

that heather there is overstocking not under stocking. Inventory helps in

smooth and efficient running of business. Following is the calculation. of this

ratio.

Inventory turnover Ration = Net sales

Average stock

Average stock = Opening stock + closing stock

2

2002-2003 = 1259.29 + 1340.64 = 1299.96

2

2003-2004 = 1340.64 + 912.09 = 1126.36

2

2002-2003 = Net sales (Sales – G.P.)

Average stock

= 25,986.30

1299.96

= 19.99

73

SAUKEM

20 times

2003-2004 = 27,040.03

750.70

= 36 times

This ratio indicates the speed which the stock is turnover. In the year

2002-2003 it is 20 times and in the year 2003-2004 it is 36 time which indicate

the more efficient is the mant of sales.

74

SAUKEM

MANAGEMENT OF RECEIVABLES

Receivables rater to selling good. Son credit on different payment

basis. Management of receivable is essential or it affects the profitability and

liquidity of the firm. Management of receivable is a part of working capital

management. It is an effective tool of marketing and aids and bridge tar the

management of goods. To understand management of receivable, there is

average collection period ratio.

Average collection period ratio = Debtors x 365

sales

2002-2003 = 3182.74 x 365

27350.90

= 42.4

42 days

2003-2004 = 1935.21x 365

27517.78

= 25.66

26 days

75

SAUKEM

RATIO ANALYSIS &

INTERPRETATION

Ratio analysis is the technique with the help of which interpretation of

financial statement is made. It is tool of evaluating profitability. Liquidity,

stock turnover etc measure the efficiency of the unit company a to last year.

Profitability Ration:-

(1) Gross Profit Ratio:-

Gross profit Ratio = Gross Profit x 100

Net Sales

2002-2003 = 1364.60 x 100

27350.90

= 4.99 %

2003-2004 = 477.75 x 100

27517.78

= 1.74 %

This ratio expressing relationship between gross profit earn in relation

to net sales. This ratio is low; it indicates that cost of sales is high or that the

purchasing is in efficient. Both the year’s ration is so low so, it indicates

company must investigate the causes and they to bring up this ratio.

76

SAUKEM

(2) Net Profit Ratio:-

Net Profit Ratio = Net Profit x 100

Sales

2002-2003 = -2241.32 x 100

27350.90

= -8.19 %

2003-2004 = -4014.53 x 100

27517.78

= -14.58 %

The company doesn’t make the profit because it’s parses from heavy

losses. So mgmt. at company 15 required to improvement.

(3) Operating Profit Ratio:-

Operating profit Ratio= Operating Profit x 100

Sales

2002-2003 = 2285.75 x 100

27350.90

= 8.36 %

2003-2004 = 1756.11 x 100

27517.78

= 6.38 %

This ratio shows a boat the management efficiency of the business.

Here, this ratio decrease company to previous year ratio. So its managerial

efficiency is not good.

77

SAUKEM

Liquidity Ratio:-

(1) Current Ratio:-

Current Ratio = Current Assets

Current liabilities

2002-2003 = 10253.08

10071.68

= 1.02 %

2003-2004 = 7453.14

8507.63

= 0.88 %

This ratio indicate the working capital position. Its standard is 2 :1 but

in the previous year there 1.02: 1 and current year 0.88 : 1. This show the

position of marking capital.

(2) Liquid Ratio:-

Liquid Ratio = Liquid Assets

Current liabilities

2002-2003 = 8912.44

10071.68

= 0.88 %

2003-2004 = 6845.08

8507.63

= 0.80 %

78

SAUKEM

Liquid Ratio is a better indication of liquid position of the company.

The desirable liquid ratio 15:7:1 against which in 2002-2003 this ratio comes

0.88 : 1 where as in 2003-2004 the position has been versant by giving this

ration of 0.80 : 1

(3) Acid Test Ratio:-

Acid Test Ratio = Quick Assets

Liquid Liabilities

2002-2003 = 1683.12

10071.68

= 0.17 %

2003-2004 = 1199.28

8507.63

= 0.14 %

The standers acid test ration is 0.50:1 against this for these company it

sis 0.17:1 shows deteriorating position for the company.

Net Working Capital Turnover:-

Working capital turnover = Sales

Net working capital

2002-2003 = 27350.90

181.4

= 150.78 times

2003-2004 = 27517.78

-1054.49

= -26.09 times

79

SAUKEM

LEVERAGE ANALYSIS

The term leverage refers to “an increased means for accomplishing

some purpose”. However, in the area of finance, the4 term leverage has a

special meaning. It is used to describe the firm’s ability to magnify the retune

to its owners.

James Harne has defined leverage as “The employment at an asset or

fords for which the firm pays a fixed cost or fixed return”.

Following the leverage ration calculator.

Proprietary Ratio:-

(1) Proprietary Ratio = Proprietary Funds x 100

Total Assets

2002-2003 = 20039.96 x 100

40557.27

= 49.41%

2003-2004 = 13359.97 x 100

27095.47

= 49.31 %

This ratio shows the proportion of proprietors funds to total assets

employed in the business. The higher the ratio, the stranger financial position

of the company. Here, this ratio is little clecrearecl compared so good

situation.

80

SAUKEM

Assets turn over ratio:-

(1) Assets turn over Ratio = sales

Net fixed assets

2002-2003 = 27350.90

30304.19

= 0.90 times

2003-2004 = 27517.78

19642.33

= 1.40 times

This ratio shows how many times fixed assets have been turnover

daring the year in comparison with sale. This is activity ratio. It indicates

efficiency of the company to make the sales and recover investment in fixed

assets.

81

SAUKEM

SUMMARY AND FINDING

I had visited the saurashtra chemicals ltd. of Porbandar. Which is also

known as saukem. I had visualized all the department of this company.

This company was established in 1956 and started its production in

1959. it start’s whit installed capacity of 66000, tones per year. The company

had mode much progress during all these years.

The companies started with few workers and staff member who have

now reached to 2400 employees including staff members, direct workers, of

the company and contract, workers a part from engaging employees in it

queries and salt works.

Soda ash is the main product manufactured here salt is one if the main

raw material in the manufacturing of soda ash saukem has its own salt works

situated in Vadinar, Khejadia, Bedi, Gagva, Sikka And Salaya.

Soda ash is mainly used in soap, detergent, sodium glass, textile and

dying units. Dense soda ash is mainly used in the manufacturing of glass.

The products of this company are supplied in vast amount in Kanpur,

Delhi, Mumbai, Ahemedabad, Kolkata, Hyderabad and in many other parts of

the country.

The company is running in good profit and has a turn over 236 crores

yearly. So as for as I am concerned the company is in good state and is

running on the right track.

82

SAUKEM

FINDING

The future of saukem is very bight the future plans of this company are

as follows:-

1. It is trying to improve company’s position from no. 3 to no. 2 soda

ash business.

2. It is trying to keep a slim and trip but fully satisfied management

tern to operate faster and to achiever higher levels of business and

growth effectively.

3. It is trying to improve ultimate value satisfaction to its customers in

terms of quality commensurate

A. Excellence in technology breach through

B. Management expertise

C. Total quality management

4. It is trying to make it a preferred organization for its, both present

and future

A. Employees

B. Suppliers /Customers

C. Share holders

D. Belated agencies and society at large.

5. Continue its march to wards progress and retain its front line

position.

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SAUKEM

CONCLUSION

I had visited the saurashtra chemical Ltd. of Porbandar it is continuing

its production maintenance it has created a very good reputation in national as

well as in international market.

This unit has maintained its quality image. So well that Dr. Manmohan

Singh, the finance minister. Presented an award for “industrial relationship” to

Saurashtra Chemicals in 1983.

Although from last few years saukem has suffered little bit of loss

because of earthquake and other factors. But having a look at it sales and

quality maintenance and also co-ordination among the management and its

employees. I conclude that in further years. Saukem can attain the goals

predetermined by it. And I also hope that the future years will be prosperous

for them.

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SAUKEM

BIBLIOGRAPHY

I had mad use of many books of accountancy and management for

preparing this practical study report. The names of the books and author are as

follows:-

1. Company Accounts:- Prin. T.J. Rana Prof. A.B.

Savjani, Prin. V.S. Dalar.

Prof. K. N. Bhavsara And

Prof. J. M. Shah.

B. S. Shah Prahashan.

2. Financial Management:- Prin – T. J. Rana. Prof. Naresh Jain

B. S. Shah Prakashan.

3. H. R. Management And

Industrial Relations:- Prof. S. P. Shah Prof. R. K. Balyan

Dr. Jayshree B. Thakore

Prin. V. M. Patel

Mahajan Publishing House

4. Marketing Management:- S. A. Sherlekar

Himalaya Publishing House

All sort of management problems are solved by management related

books and gross profit ratio, not profit ration and current ration are found out

with the hop of company accounts.

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