A Summer Training Project Report on

Gujarat Narmada Valley Fertilizers and Chemicals

Company Pvt. Ltd.

Submitted to:
S.G.M English medium
college of commerce and
Management (SEMCOM)
Vallabh Vidyanagar.

Submitted by:
Hormaz M. Kavina
Class: B.B.A (General)Sem
S.G.M English Medium
College of Commerce and
Management (SEMCOM),
Vallabh Vidyanagar

Page 1

PREFACE
A student of management has at this level having only theoretical knowledge is not enough as
there is difference between bookish knowledge and actual practical knowledge. For this
purpose practical training has been incorporated as a part of B.B.A(general) course. To
survive in this highly competitive world practical studies are given much more importance as
compared to theoretical knowledge to certain extent.
I did my summer internship at the G.N.F.C unit at Bharuch and I am very thankful to them as
they gave me practical training which was very challenging for me to understand and acquire
practical knowledge.
This training was provided to me spas to have the lucrative experience to fill up the gap
between theory and practice of different field. This project is carried out on the topic
employee training and development in the G.N.F.C.

Page 2

Page 3

ACKNOWLEDGEMENT
Nothing is ever complete without the help of others

My training experience at GUJARAT NARMADA VALLEY FERTILIZERS AND

CHEMICALS LIMITED (GNFC LTD.), BHARUCH, GUJARAT has been truly a fulfilling
and rewarding one. Many people have contributed towards making this summer internship
project a success. Therefore it is my humble and heartfelt expression of gratitude to all those
who have contributed to this project by their valuable suggestions, inspiration, support and
co-operation.
I express my deep sense of gratitude to my College and our Principal Dr. Nikhil Zaveri Sir as
well as my class counsellors Renil Thomas Sir and Komal Parikh Madam for giving me such
an opportunity to flourish. I would like to thank Shri. I.P Bhatt, Chief Manager (HR) & Shri.
G.VAmin, Manager (HR), without whose encouraging guidance and co-operation this project
would not have been possible.
I also thank Shri M. M. Upadhyaya, Chief Manager, (Marketing I.P), Shri Raju Patel,
Manager (Marketing I.P), Shri Y.N Mangrola, Sr. Manager (Marketing I.P) & Shri. K.K.
Shah, Addl. General Manager, (Marketing). All of them proved to be an excellent source of
knowledge and gave their precious time to make me understand the working of their
department and the Company.
Lastly, it would be unfair on my part if I fail to thank all the respondents for their cooperation
despite the time constraints. I owe more than what I can express.
Hormaz Kavina

Page 4

TABLE OF CONTENTS

Page 5

Cover Page

Pag
e
No.
1

Preface

Certificate

Acknowledgement

Table of content

Company Profile

CH
No.

Chapter Name

1.
1.
1
1.
2
1.
3

History of the Company

Organisational structure of the company
Products of the company
16

Marketing Department
2.
1
2.
2

Regional marketing areas

Marketing Brief
Human Resource Department

3.
1
3.
2
3.
3
3.
4
3.
5
4

HR Introduction
Total no. of employees
Total no. of Leaves
Avg. Salary
Time Keeping System

22

Finance Department
4.
1
4.
2
4.
3

18

Introduction to Finance department

Functions of Finance Department
Balance Sheet of Last year

Page 6

Conclusions

26

Bibliography

27

COMPANY PROFILE
Name of the company:

Gujarat Narmada Fertilizer and Chemical Company Pvt. Ltd.

Logo:

Address:

Gujarat Narmada valley Fertilizers & Chemicals Limited

P.O.:
Narmadanagar

392
015
District: Bharuch, Gujarat, INDIA
Phone +91 - 2642 - 247001, 247002

E-mail
Type of Company
Scale of Operation
Type of Industry

Board of Director

industrialproducts@gnfc.com
Joint-sector company promoted by Govt of Gujarat
National and International
Industrial Products, Fertilizers, Information Technology
MD- Dr Rajiv Kumar Gupta

Board of director- 1)Atanu Chakrobarty

2) D.J Pandian
3) D.C Ajaria
4) Ram Mohan
5) Ashok Shah
Executive Director: R.A Shah
Executive Director(I.T): J.S Kochar

GNFC Believes
G Good, safety approach
N Never be absent minded
F Full Proof safety
Page 7

C Cleaner place is safer place.

HISTORY OF G.N.F.C
1976

The Company was Incorporated on 10th May, in Bharuch, Gujarat. The Company was
promoted by Government of Gujarat and Gujarat State Fertilisers Co., Ltd. (GSFC).
The Company Manufacture chemical fertilisers, particularly ammonia and urea and
petrochemicals.
- Contracts were entered into by GSFC and were transferred in the name of the
Company; (i) with Texaco Development Corporation, U.S.A. (Texaco) for synthesis
gas generation process; (ii) with Haldor Topsoe, Denmark (Topsoe) for ammonia
synthesis process; (iii) with Linde Aktiengesellschaft, West Germany (Linde) for
Ractisol wash process and (iv) with Snamprogetti, Italy for know-how and licence
agreement with Linde which was subsequently transferred in the name of the
Company.
- GSFC entered into a supply and engineering contract with Linde which was
subsequently transferred in the name of the Company. Under this agreement, Linde
was to supply all the imported equipments to the Company for its ammonia plant.
- GSFC entered into know-how agreement, supply agreement and engineering
agreement with Snamprogetti, Italy for the urea plant. These agreements were
subsequently
transferred
in
the
name
of
the
Company.
1981
- 2,530 shares subscribed for by the signatories to the Memorandum of Association,
2,31,41,010 shares allotted to Gujarat Govt. (of which 3,010 shares held jointly in the
name of directors and Gujarat Govt.), 2,22,50,000 shares allotted to Gujarat State
Fertilisers Co. Ltd., 1,50,00,000 shares reserved and allotted to NRIs and NRI
investors from Oil Exporting Developing countries with repatriation rights and
50,00,000 shares reserved and allotted to agriculturists, co-operative societies,
directors, employees of the Company and business associates. 2,36,06,460 shares
offered
at
par
to
the
public
in
May
1981.
1983
- Technical collaboration agreements for the supply of imported equipment, knowhow, technical services, etc., were executed with Kemira of Finland and Leonard of
U.S.A.

Page 8

1984
-38,205

shares

forfeited.

1985
- A letter of intent was received for the establishment of a nitrophosphate plant with a
capacity of 1,42,500 tonnes per annum, a calcium ammonium nitrate plant with a capacity of
1,42,500 tonnes per annum and a concentrated nitric acid plant with a capacity of 33,000
tonnes
per
annum.
- The Company undertook a project to manufacture 30,000 sq. metres. per annum of printed
circuit boards. For this purpose, a Memorandum of Understanding was signed with PCK
technology
division
of
Kollmorge,
U.S.A.
-

Forfeiture

on

1,825

No.

of

Equity

shares

annualled.

1986
- Agreements were entered into with Toyo Engineering Corporation of Japan, for the
acquisition of technical know-how, basic engineering and imported equipments, etc for this
expansion.
- A letter of intent was received for the manufacture of 10,000 tonnes per year of formic acid.
- An EPABX project with a capacity to manufacture 20,000 lines of digital electronic
automatic exchange with C-dot technology was commissioned at Roopnagar, Valia. The
Company undertook to produce an enhanced model i.e. V - III system of EPABX.
- The Memorandum of Understanding for the project was signed with Mozak International
Inc., and a new Company in the name of `Emirates Narmada Industries p.l.c.' was registered
in
U.K.
1987
- Agreements were signed between M/s. Lurgi of W. Germany and the joint venture Company
U.
Emirates
Narmada
Industries
PLC.
1989
- The overall financial performance of the Company was adversely affected due to adverse
changes in the Retention Price Scheme with respect to normative capacity utilisation and
depreciation.
- GIIC was implementing through Gujarat Amino Chem Ltd., a project for the manufacture of
methanol
with
a
capacity
of
20,000
tonnes
per
annum.
- The Company selected M/s. Linde of West Germany for the supply of basic engineering and
Page 9

certain imported equipments. The Company also selected M/s. ICI for the supply of process
know-how and Tata Consulting Engineers of Mumbai for detailed engineering.
- The licensed capacity of methanol was re-endorsed from 20,000 tonnes to 1,00,000 tonnes
per
annum.
- GNAL was declared a `sick unit' by BIFR. A rehabilitation package was being prepared in
consultation
with
financial
institutions/banks.
-

Forfeiture

on

200

No.

of

equity

shares

annualled.

- The Company undertook to implement a captive power project of 50 MW in two phases.

- The Company undertook a project to manufacture 30,000 sq. meters. per annum of printed
circuit boards. For this purpose, a Memorandum of Understanding was signed with PCK
technology
division
of
Kollmorge,
U.S.A.
1990
- The Company received a letter of Intent for setting up a 50,000 TPA acetic and projects as a
100%
Export
Oriented
Unit.
- "Gujarat Narmada Electronics, Ltd., was incorporated for the implementation of TV Glass
Shell Project. As shareholders agreement was entered into between the Company and
Videocon International Ltd. (VIL), by which the promoters' equity was to be provided.
- The name Narmada Electronics Ltd., was changed to "Videocon Narmada Electronics,
Ltd.," with effect from 30th June, 1992. The Company made a public issue of secured fully
convertible
debentures
for
an
aggregate
amount
of
Rs
240
crores.
1991
- "Narmada Chematur Petrochemicals, Ltd.", was incorporated jointly with Chematur AB and
IBI Chematur as equity partners, for the implementation of 10,000 TPA TDI and 20,000 TPA
Aniline projects with Du-pont technology provided by Chematur AB.
-

28,350

forfeited

share/re-issued.

1992
- The Company offered 296,66,667 - 15.5% non-convertible debentures of Rs 40 each with
detachable warrants on Rights basis in the proportion 1 deb.: 3 equity shares held. Additional
44,50,000
debentures
were
allotted
to
retain
oversubscription.
- Another 14,83,300 - 15%, debentures together with detachable warrants were offered to
employees'. Only 8,98,350 debentures taken up. The balance of 5,84,950 debentures were
allotted to Mutual Funds/Financial Institutions/Banks. The Debentures are redeemable in 3
equal annual instalments on the expiry of 7th, 8th and 9th year from the date of allotment.
1993
Page 10

- `Gujarat Narmada Auto Ltd.' (GNAL) is a wholly owned subsidiary of the Company which
is
manufacturing
two-wheelers
three-whellers.
- As at 31st March, all the 51,55,207 No. of equity shares of Rs 10 each were held by the
holding
company,
i.e.
Gujarat
Narmada
Valley
Fertilizers
Co.,
Ltd.
1994
- The Company offered 47,93,000 GDRs representing 239,65,000 No. of equity shares of Rs
10 each at a price of US $ 12.75 per GDR i.e. (1 GDR = 5 equity shares).
- 333,24,492 No. of Equity shares issued against detachable warrants attached with 15.5%
NCDs of Rs 40 each. 1,86,223 No. of equity shares of Rs 10 each (prem. Rs 25 per shares)
allotted
on
exercise
of
option
attached
to
Detachable
warrants.
1996
- The Company was planning to set up a 10,000 MTPA of the polyhacetal project with an
estimated
investment
of
Rs.
240
crores.
-

499

No.

of

equity

shares

on

exercise

of

warrants

issued.

1997
- The Company undertook to expand the plant's capacity by putting up a new plant of 100
million tonnes per day capacity with an investment of Rs 32 crores.
- The Company undertook to set up a third gasifier train to augment ammonia capacity by
addition of 20,000 MTA of additional ammonia at a cost of Rs 50 crores.
- The Gujarat Narmada Valley Fertilisers Company (GNFC) is seriously contemplating
withdrawal from Videocon Narmada Electronics Limited, GNFC's joint venture with the
Videocon
group.
- The company has an installed capacity of 17 lakh glass shells for colour picture tubes. CRT
displays and monitors and 2.5 lakh glass parts (panels and funnels) and glass bulbs for black
and
white
television
picture
tubes
and
monochrome
monitor
tubes.
- The joint venture between Videocon and GNFC manufactured only 2.9 lakh glass shells
(panels and funnels) for colour picture tubes during the last financial year (1994-95) as
against the installed capacity of 17 lakh shells and there was no production of glass parts
(panels
and
funnels)
for
black
and
white
television
picture
tubes.
- Gujarat Narmada Valley Fertilisers Company Ltd (GNFC), Bharuch, engaged in the
manufacture of chemical fertilisers viz Narmada Urea, Phos and CAN, chemicals of like
acetic acid, formic acid, methanol, nitric acid and electronics products such as printed circuit
boards and digital switching systems, has reported encouraging performance for the year
1996-97.

Page 11

- GNFC has signed an agreement with Plinke for technology and supply of equipment.
- Gujarat Narmada Valley Fertilizers Company (GNFC) has entered into an agreement with
Plinke of Germany to set up a 33,000 tpa concentrated nitric acid plant at its Bharuch
complex in Gujarat. The total capacity will now be doubled to 66,000 tpa.
- The Bharuch-based Rs 1,200 crore Gujarat Narmada Valley Fertiliser Co Ltd (GNFC),
market leader in acetic acid, methanol and formic acid, is doubling its acetic acid production
capacity from 50,000 to one lakh tonnes per annum (TPA) in technical collaboration with B P
Chemicals
of
the
UK.
- Its subsidiary company, Narmada Chematur Petrochemicals Ltd (NCPL), has successfully
commissioned 20,000 million tonnes per annum (mtpa) aniline plant operating at more than
100
per
cent
capacity.
1998
- The company undertook to enhance the capacity of weak nitric acid plant capacity from 630
MTD
to
750
MTD.
- Gujarat Narmada Valley Fertilizers Company Ltd has signed a pact with Uhde of Germany
for undertaking engineering and construction of its nitric acid expansion plans at Bharuch.
- GNFC is doubling its capacity of concentrated nitric acid (CNA) by 33,000 tpa for which
technical knowhow will be provided by Plinke of Germany. GNFC is also expanding the
capacity
of
weak
nitric
acid
(WNA)
by
24,750
tpa
this
year.
- Gujarat Narmada Valley Fertilizers Co Ltd (GNFC) plans to double total urea capacity, by
setting up 2,330 mtd urea and 1,350 mtd ammonia plant at an investment facility at Bharuch
in
Gujarat.
- GNFC also proposes to set up a world class 400 tpd pet project based on PTA and MEG as
principal
raw
material.
- GNFC recently entered into an agreement with GAIL to increase the supply of natural gas
for
three
years.
1999
- The proposed fertiliser unit will have an installed capacity to produce 1,350 tonnes per day
(tpd) of ammonia and 2,330 tpd of urea. The new plant is also slated within the existing
premises
of
GNFC.
- Gujarat Pipavav LNG Company Ltd (GPLCL) has signed a memorandum of understanding
(MoU) with Gujarat Narmada Fertiliser Corporation (GNFC), Indian Farms, Fertiliser Cooperative (IFFCO) and Gujarat Gas Company Ltd (GGCL) for the supply of regassified
liquefied
natural
gas
(LNG).
- Gujarat Narmada Valley Fertilisers Company (GNFC) is considering a proposal to market
products of BP Chemicals, UK through its vast marketing and distribution network.
Page 12

- Gujarat Narmada Valley Fertilizers Co Ltd (GNVFC), will offer about four per cent of
equity to foreign companies and non-resident Indians (NRIs) in its existing company for the
very
small
aperture
terminals
(Vsat)
business.
2000
- Ideal Data Electronic Applications has signed a Memorandum of Understanding with
Gujarat Narmada Valley Fertiliser Company for the purpose of setting up a 100 per cent
Export
Oriented
Unit
at
the
GNFC
Infortower.
- The Company has entered into a business alliance with Hyderabad-based global software
and systems integration major Cybermate Infotek Ltd. to set up digital certificate based
system
and
security
management.
- AD Desai has been appointed as the MD of the Broach-based Gujarat Narmada Valley
Fertilisers
Company
Ltd.
- The Company proposed to double the capacity of the acetic acid plant to 1,00,000 tonnes
per annum, commission the third gasifier plant and install the wet scrubbing system all by
December
2001.
- Mr. Sudhir Mankad has been appointed as Director on the board effective from October 24.
- The Company has commissioned its international private leased circuit (IPLC) at its GNFC
Infotower
in
Ahmedabad.
2002
- Gujarat Narmada Valley Fertilizer Company Ltd (GNFC) has informed that Shri R C
Sharma has ceased to be a Director of the Company wef January 16, 2002 vide his
resignation.
-Gujarat Narmada Valley Fertilizers Company Ltd has informed that consequent upon the
retirement of Shri A D Desai from the services of Government of Gujarat (GOG) upon
attaining the age of superannuation, GOG has withdrawn his nomination from the Board of
the company. As such he ceased to be the Director and Managing Director of the company.
Shri Balwant Singh, Director of the company has assumed the additional charge of Managing
Director with effect from October 31, 2002. He will be formally appointed Managing
Director
of
the
company
in
due
course.
-Gujarat Narmada Valley Fertilizers Ltd has informed that consequent upon the withdrawal of
Nomination by Government of Gujarat, Shri Pradipsinh Jadeja ceased to be a Non-rotational
Director as also the Chairman of the company with effect from November 21, 2002. Further,
Shri G Subbarao has been nominated by Government of Gujarat as Non-rotational Director
on the Board of the company with effect from November 22, 2002.
2003
- Gujarat Narmada Valley Fertilizers Company Ltd has informed BSE that consequent upon
Page 13

the withdrawal of Nomination by Govt of Gujarat Shri G Subba Rao ceased to be a Director
as also the Chairman of the company. Shri P K Laheri has been nominated by Govt of Gujarat
as
Director
on
the
Board
of
the
company.
-Shri Shrirish Bengali has ceased to be the Non-Rotational Director of the company.
-Shri Koshi has been appointed as the director on the board of the company in the casual
vacancy.
-Government has withdrawn the nomination of Shri Subba Rao, ceased to the director as also
the chairman of the company and Shri P K Laheri has been nominated by the government on
the
board
of
the
company.
-GNFC has witnessed a turnover of 1464 cr and profit before tax of Rs.136.39cr, which has
been
increased
over
the
years.
-GNFC has announced the closure of PCB plant operations of the company since it did not
reach
up
to
the
desired
expectation
of
the
company.
-GNFC has informed that Shri Manu Shroff, ceased to be the director of the company.
-4 persons were killed and 26 were injured in a major blast at the nitrogen phosphorus
ammonia plant of Gujarat Narmada Valley Fertilisers Corporation Limited in Bharuch
District.
2004
-Delists

the

equity

shares

from

Ahmedabad

&

Delhi

stock

exchanges

-Gujarat Narmada Valley Fertilizers Company Ltd has informed that Dr. Manjula
Subramaniam has resigned as a director of the Company with effect from August 5, 2004
2006
-Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has informed that Shri. PK
Taneja, IAS has been appointed as Additional Director on the Board of the Company w.e.f.
November
27,
2006.
2007
- Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has appointed Shri. V L Joshi,
IAS as Additional Director on the Board of the Company w.e.f. May 19, 2007.
2008
-Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has appointed Shri. T Natarajan
as
Director
of
the
Company
w.e.f.
August
28,
2008.
2009

Page 14

- Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has informed BSE about the
change
taken
place
in
the
Company's
Directorate:
-

Name

Date
Brief

of
of

Particulars

Director

Appointment

or

of

change

Shri.

Change

Ceased

to

be

:
a

Rajagopalan,
January
Director

vide

21,

IAS
2009

resignation.

-Gujarat Narmada Valley Fertilizers Company Ltd (GNFC) has informed BSE about the
change taken place in the Company's Directorate as mentioned hereunder :
Name
of
Director
:
Shri.
Guruprasad
Mohapatra,
IAS
Date
of
Appointment:
July
28,
2009.
- Brief Particulars of Change : The Board has at its meeting held on July 28, 2009 taken note
of the nomination of Shri Guruprasad Mohapatra, IAS, Managing Director, Gujarat Alkalies
& Chemicals Ltd as Government Director and has appointed him to hold additional
charge of the post of Managing Director of the Company effective July 01, 2009.
2011
-Gujarat Narmada Valley Fertilizers Company Ltd has 300 MTPD Weak Nitric Acid-II
Project of the Company has been completed at a cost of about Rs. 262 Crores. WNA-II
Projecthas
started
its
operation.
-Shri Atanu Chakraborty, IAS is appointed as Additional Director on the Board of the
Company.
2012
-The Change of Name of the Company from Gujarat Narmada Valley Fertilizers Company
Limited to "Gujarat Narmada Valley Fertilizers & Chemicals Limited"
2013
-Ammonia syn gas generation plant for neem coated Urea has been commissioned
2014
-TDI Dahej plant started production on July 2014

Page 15

PRODUCTS OF THE COMPANY

Here is the information of the products of G.N.F.C along with its installed capacity and its
technical colloborator
Plant

Installed Capacity

Technical Collaborator

Ammonia

Air separation, Rectisol and Nitrogen wash units as well as total engineering of the integrated plant
- Linde AG, Germany
4,45,500 MTA
- Fuel Oil Gasification - GE, USA
- CO Shift Conversion-BASF, Germany.
- Ammonia Synthesis - Haldor Topsoe, Denmark.

Urea

6,36,900 MTA

Saipem, Italy

Ammonium Nitrophosphate

1,42,500 MTA

BASF - Germany

Calcium-Ammonium Nitrate

1,42,500 MTA

UHDE, Germany

Methanol-I

50,000 MTA

ICI, UK & Linde AG, Germany

Formic Acid

10,000 MTA

Kemira OY, Finland

Methanol-II

1,88,100 MTA

ICI, UK & Toyo Engg., Japan

30,600 MTA

In-House

Weak Nitric Acid (I & II)

3,47,500 MTA

UHDE, Germany

Concentrated-Nitric Acid (I & II & III)

1,16,000 MTA

Plinke, Germany

Acetic Acid

1,00,000 MTA

BP Chemicals, UK

201.960 Million NM3 per annum

Jacob, UK and H & G

3,96,000 MWH per annum

BHEL, India

Nitrobenzene (NB)

47250 MTPA

Chematur Engineering AB, Sweden

Aniline

35000 MTPA

Chematur Engineering AB, Sweden

Toluene Di-isocynate (TDI)

14000 MTPA

Chematur Engineering AB, Sweden

Di Nitro Toluene (DNT)

18356 MTPA

Chematur Engineering AB, Sweden

Meta Toluene Di-amine (MTD)

11804 MTPA

Chematur Engineering AB, Sweden

2,84,515 MWH

BHEL, India

MSU

Synthesis Gas Generation Unit

Captive Power Plant I & II

CPSU

Page 16

Ethyl Acetate

ASGP

TDI-II Dahej Project

50,000 MTA

KBK, India

369,600 MTA Eq. Ammonia

Haldor Topsoe, Denmark

50,000 MTA

Chematur Engineering AB, Sweden

MARKETING DEPARTMENT
Marketing is the process of communicating the value of a product or service to customers, for
the purpose of selling that product or service.
Marketing can be looked at as an organizational function and a set of processes for creating,
delivering and communicating value to customers, and customer relationship
management that also benefits the organization. Marketing is the science of choosing target
markets through
market
analysis
and market
segmentation,
as
well
as
understanding consumer behaviour and providing superior customer value. From a societal
point of view, marketing is the link between a society's material requirements and
its economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships.
Marketing may be defined in several ways, depending on the role of the advertised enterprise
in relation to the strategic role in positioning the firm within its competitive market. The main
definition is often credited to Philip Kotler, recognized as the originator of the most recent
developments in the field, for the works that appeared from 1967 to 2009, with the latest
work born from the last economic crisis: Chaotic.
Recent approaches in marketing include relationship marketing with focus on the
customer, business marketing or industrial marketing with focus on an organization or
institution and social marketing with focus on benefits to society. New forms of marketing
also use the internet and are therefore called internet marketing or more generally emarketing, online marketing, "digital marketing", search engine marketing, or desktop
advertising. It attempts to perfect the segmentation strategy used in traditional marketing. It
targets its audience more precisely, and is sometimes called personalized marketing or one-toone marketing. Internet marketing is sometimes considered to be broad in scope, because it
not only refers to marketing on the Internet, but also includes marketing done via e-mail,

Page 17

wireless media as well as driving audience from traditional marketing methods like radio and
billboard to internet properties or landing page.
A firm in the market economy survives by producing goods that persons are willing and able
to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and
even existence as a going concern. Many companies today have a customer focus (or market
orientation). This implies that the company focuses its activities and products on consumer
demands. Generally, there are three ways of doing this: the customer-driven approach, the
market change identification approach and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing
decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of
a market offering, including the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for this approach is that
there is no reason to spend R&D (research and development) funds developing products that
people will not buy. History attests to many products that were commercial failures in spite of
being technological breakthroughs.
A formal approach to this customer-focused marketing is known as SIVA (Solution,
Information, Value, and Access). This system is basically the four Ps renamed and reworded
to provide a customer focus. The SIVA Model provides a demand/customer-centric
alternative to the well-known 4Ps supply side model (product, price, placement, promotion)
of marketing management.
If any of the 4Ps were problematic or were not in the marketing factor of the business, the
business could be in trouble and so other companies may appear in the surroundings of the
company, so the consumer demand on its products will decrease. However, in recent years
service marketing has widened the domains to be considered, contributing to the7P's of
marketing in total. The other 3P's of service marketing are: process, physical environment
and people.
Regional Offices of GNFC:

Page 18

HUMAN RESOURCE DEPARTMENT

Organisation is made up of people and function of people. Without manpower, organisation
cannot exist. The resources of man, money, material and machinery are collected,
coordinated, and utilised through people. There resources are effectively utilised for the
attainment of common objective.
One of the most useful definitions of Human Resource Department (HRM) is provided by
fisher, Schoenfelt and show in their book Human resource management involves all
management decisions and practices that directly affect or influence the people or Human
resources who work for the organisation.
HRM is clearly based on the foundation of behavioural science knowledge relating to the
handling of employees to motivate organisational goals.
The role of human resource management is to plan, develop, and administer policies and
programmes designed to make expeditious use of an organisations human resources. It is that
part of management which is concerned with the people at work and with their relationship
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within an enterprise.
Its objectives are:
1. Effective utilisation of human resources;
2. Desirable working relationships among all members of the organisation; and
3. Maximum individual development.
The major functional areas in human resource management are:
1. Planning,
2. Staffing,
3. Employee development, and
4. Employee maintenance.
These four areas and their related functions share the common objective of an adequate
number of competent employees with the skills, abilities, knowledge, and experience needed
for further organisational goals. Although each human resource function can be assigned to
one of the four areas of personnel responsibility, some functions serve a variety of purposes.
For example, performance appraisal measures serve to stimulate and guide employee
development as well as salary administration purposes. The compensation function facilitates
retention of employees and also serves to attract potential employees to the organisation. A
brief description of usual human resource functions are given below:
Human Resource Planning: In the human resource planning function, the number and type
of employees needed to accomplish organisational
goals are determined. Research is an important part of this function because planning requires
the collection and analysis of information in order to forecast human resources supplies and
to predict future human resources needs. The basic human resource planning strategy is
staffing and employee development.
Job Analysis: Job analysis is the process of describing the nature of a job and specifying the
human requirements, such as skills, and experience needed to perform it. The end product of
the job analysis process is the job description. A job description spells out work duties and
activities of employees. Job descriptions are a vital source of information to employees,
managers, and personnel people because job content has a great influence on personnel
programmes and practices.
Staffing: Staffing emphasises the recruitment and selection of the human resources for an
organisation. Human resources planning and recruiting precede the actual selection of people
for positions in an organisation. Recruiting is the personnel function that attracts qualified
applicants to fill job vacancies. In the selection function, the most qualified applicants are
selected for hiring from among those attracted to the organisation by the recruiting function.
On selection, human resource functionaries are involved in developing and administering
methods that enable managers to decide which applicants to select and which to reject for the
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given jobs.
Orientation: Orientation is the first step toward helping a new employee adjust himself to
the new job and the employer. It is a method to acquaint new employees with particular
aspects of their new job, including pay and benefit programmes, working hours, and company
rules and expectations.
Training and Development: The training and development function gives employees the
skills and knowledge to perform their jobs effectively. In addition to providing training for
new or inexperienced employees, organisations often provide training programmes for
experienced employees whose jobs are undergoing change. Large organisations often have
development programmes which prepare employees for higher level responsibilities within
the organisation. Training and development programmes provide useful means of assuring
that employees are capable of performing their jobs at acceptable levels.
Performance Appraisal: Performance appraisal function monitors employee performance to
ensure that it is at acceptable levels. Human resource professionals are usually responsible for
developing and administering performance appraisal systems, although the actual appraisal of
employee performance is the responsibility of supervisors and managers. Besides providing a
basis for pay, promotion, and disciplinary action, performance appraisal information is
essential for employee development since knowledge of results (feedback) is necessary to
motivate and guide performance improvements.
Career Planning: Career planning has developed partly as a result of the desire of many
employees to grow in their jobs and to advance in their career. Career planning activities
include assessing an individual employees potential for growth and advancement in the
organisation.
Compensation: Human resource personnel provide a rational method for determining how
much employees should be paid for performing certain jobs. Pay is obviously related to the
maintenance of human resources. Since compensation is a major cost to many organisations,
it is a major consideration in human resource planning. Compensation affects staffing in that
people are generally attracted to organisations offering a higher level of pay in exchange for
the work performed. It is related to employee development in that it provides an important
incentive in motivating employees to higher levels of job performance and to higher paying
jobs in the organisation.
Benefits: Benefits are another form of compensation to employees other than direct pay for
work performed. As such, the human resource function of administering employee benefits
shares many characteristics of the compensation function. Benefits include both the legally
required items and those offered at employers discretion. The cost of benefits has risen to
such a point that they have become a major consideration in human resources planning.
However, benefits are primarily related to the maintenance area, since they provide for many
basic employee needs.
Labour Relations: The term labour relations refers to interaction with employees who are
represented by a trade union. Unions are organisation of employees who join together to
obtain more voice in decisions affecting wages, benefits, working conditions, and other
aspects of employment. With regard to labour relations, the personnel responsibility primarily

Page 21

involves negotiating with the unions regarding wages, service conditions, and resolving
disputes and grievances.
Record-keeping: The oldest and most basic personnel function is employee record-keeping.
This function involves recording, maintaining, and retrieving employee related information
for a variety of purposes. Records which must be maintained include application forms,
health and medical records, employment history (jobs held,promotions, transfers, lay-offs),
seniority lists, earnings and hours of work, absences, turnover, tardiness, and other employee
data. Complete and up-to-date employee records are essential for most personnel functions.
More than ever employees today have a great interest in their personnel records. They want to
know what is in them, why certain statements have been made, and why records may or may
not have been updated.
Personnel records provide the following:
1.

A store of up-to-date and accurate information about the companys employees.

2.

A guide to the action to be taken regarding an employee, particularly by comparing

him with other employees.

3.

A guide when recruiting a new employee, e.g. by showing the rates of pay received by
comparable employees.

4.

A historical record of previous action taken regarding employees.

5.

The raw material for statistics which check and guide personnel policies.

6.

The means to comply with certain statutory requirements.

Personnel Research: All personnel people engage in some form of research activities. In a
good research approach, the object is to get facts and information about personnel specifics in
order to develop and maintain a programme that works. It is impossible to run a personnel
programme without some pre-planning and post-reviewing. For that matter, any survey is, in
a sense, research. There is a wide scope for research in the areas of recruitment, employee
turnover, terminations, training, and so on. Through a well-designed attitude survey,
employee opinions can be gathered on wages, promotions, welfare services, working
conditions, job security, leadership, industrial relations, and the like. Inspite of its importance,
however, in most companies, research is the most neglected area because personnel people
are too busy putting out fires. Research is not done to put out fires but to prevent them.
Research is not the sole responsibility of any one particular group or department in an
organisation. The initial responsibility is that of the human resource department, which
however should be assisted by line supervisors and executives at all levels of management.
The assistance that can be rendered by trade unions and other organisations should not be
ignored, but should be properly made use of.
Apart from the above, the HR function involves managing change, technology, innovation,
and diversity. It is no longer confined to the culture or ethos of any single organisation; its
Page 22

keynote is a cross-fertilisation of ideas from different organisations. Periodic social audits of

HR functions are considered essential.
HR professionals have an all-encompassing role. They are required to have a thorough
knowledge of the organisation and its intricacies and complexities. The ultimate goal of every
HR person should be to develop a linkage between the employee and the organisation
because the employees commitment to the organisation is crucial. The first and foremost role
of HR functionary is to impart continuous education to employees about the changes and
challenges facing the country in general, and their organisation in particular. The employees
should know about their balance sheet, sales progress, diversification plans, restructuring
plans, sharp price movements, turnover and all such details. The HR professionals should
impart education to all employees through small booklets, video films, and lectures.
The primary responsibilities of a human resource manager are:
1. To develop a thorough knowledge of corporate culture, plans and policies.
2. To act as an internal change agent and consultant.
3. To initiate change and act as an expert and facilitator.
4. To actively involve himself in companys strategy formulation.
5. To keep communication lines open between the HRD function and individuals and
groups both within and outside the organisation.
6. To identify and evolve HRD strategies in consonance with overall business strategy.
7. To facilitate the development of various organisational teams and their working
relationship with other teams and individuals.
8. To try and relate people and work so that the organisation objectives are achieved
effectively and efficiently.
9. To diagnose problems and to determine appropriate solution particularly in the human
resources areas.
10. To provide co-ordination and support services for the delivery of HRD programmes
and services.
11. To evaluate the impact of an HRD intervention or to conduct research so as to
identify, develop or test how HRD in general has improved individual or
organisational performance.
Total number of employees working in GNFC are approximately 3000.
40 Leaves per year is granted to each employee.

Page 23

Average salary given to each employee is approximately 30-50000 INR Various workshops
and training and development programmes are arranged by the company for the development
of skills and knowledge of the employee.

Finance Department
Finance is a field closely related to accounting that deals with the allocation
of assets and liabilities over time under conditions of certainty and uncertainty. Finance also
applies and uses the theories of economics at some level. Finance can also be defined as the
science of money management. A key point in finance is the money, which states that
purchasing power of one unit of currency can vary over time. Finance aims to price assets
based on their risk level and their expected rate of return. Finance can be broken into three
different sub-categories: public finance, corporate finance and personal finance.
Corporate finance is the area of finance dealing with the sources of funding and the capital
structure of corporations and the actions that managers take to increase the value of the firm
to the shareholders, as well as the tools and analysis used to allocate financial resources.
Although it is in principle different from managerial finance which studies the financial
management of all firms, rather than corporations alone, the main concepts in the study of
corporate finance are applicable to the financial problems of all kinds of firms. Corporate
finance generally involves balancing risk and profitability, while attempting to maximize an
entity's wealth and the value of its stock, and generically entails three primary areas of capital
resource allocation. In the first, "capital budgeting", management must choose which
"projects" (if any) to undertake. The discipline of capital budgeting may employ
standard business valuation techniques or even extend to real options valuation; see Financial
modelling. The second, "sources of capital" relates to how these investments are to be
funded: investment capital can be provided through different sources, such as by
shareholders, in the form of equity (privately or via an initial public offering), creditors, often
in the form of bonds, and the firm's operations (cash flow). Short-term funding or working
capital is mostly provided by banks extending a line of credit. The balance between these
elements forms the company's capital structure. The third, "the dividend policy", requires
management to determine whether any inappropriate profit (excess cash) is to be retained for
future investment / operational requirements, or instead to be distributed to shareholders, and
if so in what form. Short term financial management is often termed "working capital
management", and relates to cash-, inventory- and debtors management.
Corporate finance also includes within its scope business valuation, stock investing,
or investment management. An investment is an acquisition of an asset in the hope that it will
maintain or increase its value over time. In investment management in choosing
a portfolio one has to use financial analysis to determine what, how much and when to
invest. To do this, a company must:
Page 24

Identify relevant objectives and constraints: institution or individual goals, time

horizon, risk aversion and tax considerations;

Identify the appropriate strategy: active versus passive hedging strategy

Measure the portfolio performance

Financial management overlaps with the financial function of the Accounting profession.
However, financial accounting is the reporting of historical financial information, while
financial management is concerned with the allocation of capital resources to increase a
firm's value to the shareholders.
Financial risk management, an element of corporate finance, is the practice of creating and
protecting economic value in a firm by using financial instruments to manage exposure
to risk, particularly credit risk and market risk. (Other risk types include Foreign exchange,
Shape, Volatility, Sector, liquidity, Inflation risks, etc.) It focuses on when and how to
hedge using financial instruments; in this sense it overlaps with financial engineering. Similar
to general risk management, financial risk management requires identifying its sources,
measuring it (see: Risk measure: Well known risk measures), and formulating plans to
address these, and can be qualitative and quantitative. In the banking sector worldwide,
the Basel Accords are generally adopted by internationally active banks for tracking,
reporting and exposing operational, credit and market risks.

Page 25

BALANCE-SHEET OF GNFC

Standalone Balance Sheet

------------------- in Rs. Cr. -------------------

Mar '13

Mar '12

Mar '11

Mar '10

Mar '09

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

155.42

155.42

155.42

155.42

155.44

Equity Share Capital

155.42

155.42

155.42

155.42

155.44

Share Application Money

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

2,561.52

2,352.06

2,131.45

1,923.63

1,858.68

0.00

0.00

0.00

0.00

0.00

Networth

2,716.94

2,507.48

2,286.87

2,079.05

2,014.12

Secured Loans

2,063.36

1,050.46

920.89

290.01

102.85

767.28

200.30

218.64

265.05

253.05

Total Debt

2,830.64

1,250.76

1,139.53

555.06

355.90

Total Liabilities

5,547.58

3,758.24

3,426.40

2,634.11

2,370.02

Mar '13

Mar '12

Mar '11

Mar '10

Mar '09

12 mths

12 mths

12 mths

12 mths

12 mths

Sources Of Funds

Reserves

Revaluation Reserves

Unsecured Loans

Application Of Funds

Page 26

Gross Block

4,079.51

3,724.33

3,247.27

3,084.25

3,028.00

Less: Accum. Depreciation

2,272.03

2,119.18

2,034.33

1,914.90

1,798.51

Net Block

1,807.48

1,605.15

1,212.94

1,169.35

1,229.49

Capital Work in Progress

2,752.45

1,867.20

1,606.68

1,029.80

419.67

Investments

129.84

97.56

86.63

89.51

332.63

Inventories

636.99

599.20

463.53

405.03

430.76

1,176.99

778.64

437.48

16.68

288.72

221.19

299.90

12.77

40.61

52.02

2,035.17

1,677.74

913.78

462.32

771.50

297.03

441.72

1,508.52

1,379.21

1,246.18

0.00

0.00

170.93

282.78

3.40

2,332.20

2,119.46

2,593.23

2,124.31

2,021.08

0.00

0.00

0.00

0.00

0.00

1,250.64

1,745.68

689.43

536.73

500.66

223.76

185.46

1,383.64

1,242.15

1,132.19

1,474.40

1,931.14

2,073.07

1,778.88

1,632.85

857.80

188.32

520.16

345.43

388.23

0.00

0.00

0.00

0.00

0.00

5,547.57

3,758.23

3,426.41

2,634.09

2,370.02

Contingent Liabilities

399.16

965.04

1,144.98

1,102.17

440.04

Book Value (Rs)

174.81

161.34

147.14

133.77

129.59

Sundry Debtors

Cash and Bank Balance

Total Current Assets

Loans and Advances

Fixed Deposits

Total CA, Loans & Advances

Deffered Credit

Current Liabilities

Provisions

Total CL & Provisions

Net Current Assets

Miscellaneous Expenses

Total Assets

Page 27

CONCLUSION
The Stress levels at GNFC are not very high.
A decent work life balance is witnessed at GNFC and is acknowledged by employees.
There are numerous steps taken by GNFC to ensure that employees are satisfied and
motivated to work at their peak performance.
GNFC is a healthy organization with a good worker management balancing ratio.
GNFC is determined for optimising productivity and grow into a world class
organisation
The personnel of the company is its most valuable asset till date.
The brand image of the company is spreaded far & wide.

Page 28

BIBLIOGRAPHY

INTERNET WEBSITES
www.google.com/images
www.gnfc.org
www.moneycontrol.com
www.wikipedia.com

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