Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1INDUSTRY PROFILE
polypropylene,
polystyrene,
polyvinyl
chloride
and
polytetrafluoroethylene (PTFE). Thermosets can melt and take shape once; after they
have solidified, they stay solid.
The raw materials needed to make most plastics come from petroleum and natural
gas.
trustworthy
vendors.
Our
business
new
technologies
and
certified
colour
combination,
this
adjustable
Table
that
accordance
current
trends
have
These
&
Chair
chairs
with
both
customized
shapes,
standard
the
&
Security.
The company has a trade mark and a trade name that gives the
company an exclusive right by government policies to use it and enter
compulsory by Government.
The company is bound to follow workers safety regulations as laid
Economic Factors
consumers.
Large market share due to fine quality and brand name.
The rising in the utilities increased cost of production.
The rise in service charges and interest rates on loans of Banks is a
Technological Factors
prices from China and Pradip Industries is taking full benefit from it.
The manufacturing department has also different types of dyes for
The Indian plastic industry has taken great strides. In the last few decades, the
industry has grown to the status of a leading sector in the country with a sizable
base. The material is gaining notable importance in different spheres of activity
and the per capita consumption is increasing at a fast pace. Continuous
advancements and developments in polymer technology, processing machineries,
expertise, and cost effective manufacturing is fast replacing the typical materials
in
different
segments
with
plastics.
On the basis of value added, share of India's plastic products industry is about
0.5% of India's GDP. The export of plastic products also yield about 1% of the
country's exports. The sector has a large presence of small scale companies in the
industry, which account for more than 50% turnover of the industry and provides
employment to an estimate of about 0.4 million people in the country.
Approximately Rs 100 billion are invested in the form of fixed assets in the plastic
processing
industry.
History
Indian plastic industry has made significant achievements in the country ever
since it made a promising beginning with the start of production of polystyrene in
1957. The industry is growing at a rapid pace and the per capita consumption of
plastics in the country has increased several times as compared to the earlier
decade. The chronology of production of polymers is summarized as under
1957 - Polystyrene
1959 - LDPE
1961 - PVC
1968 - HDPE
7
1978 - Polypropylene
Currently, the Indian plastic industry is highly fragmented with an estimate of around
25,000 firms and over 400,000 employees. The top 100 players of Indian plastic
industry account for just 20% of the industry turnover. Barring 10 to 15% of the firms
that can be categorized as medium scale enterprises, most of the units operate on a
small
scale
basis.
The immense potential of Indian plastic industry has motivated Indian manufacturers
to acquire technical expertise, achieve superior quality standards and build capacities
in different facets of the booming plastic industry. Substantial developments in the
plastic machinery sector coupled with matching developments in the petrochemical
sector, both of which support the plastic processing industry, have facilitated the
plastic processors to develop capacities to cater both the domestic as well as overseas
exports.
Exports
In the calendar year 2006, the value of world plastic export was US$ 375 billion.
However the share of India was less than 1 % with exports of worth US$ 3.187
billion. The percentage of growth in export was 21 %. During this trend of growth in
exports, the export of plastics raw material increased from 55 % to 60 % of the total
export of plastic goods, while the export of processed plastic goods has registered a
negative growth from 45 % to 9 %. According to recent reports, the industry is said to
be losing an opportunity of USD 300 million through value addition on the raw
materials
that
are
exported.
USA
UAE
Italy
UK
Belgium
Germany
Singapore
Saudi Arabia
China
Hong Kong
The Indian plastic exports were valued at about US$ 532 million during FY 2004 (1st
half FY2005 exports US $ 295 million). With significant capacity additions leading to
over-capacity in domestic markets during FY2001 and beyond, polymer exports have
increased considerably. However, due to the lower competitiveness of the plastic
products
industry,
polymers
have
been
exported
directly.
Products
The
major
plastic
products
that
India
export
are
urea
phenol
formaldehyde,
master
batches,
additives,
etc
Packaging - PP / HDPE woven sacks / bags / fabrics, poly-lined jute goods, box
strapping, BOPP tapes, a range of plastic sheeting / films (of PVC, PP, HDPE, nylon,
FRP, PTFE, acrylic, etc.), pouches, crates, bottles, containers, barrels, cans, carboys,
shopping
carrier
garbage
bags.
Films - Polyester film, BOPP film, mesh, metallised / multilayer films and photo films
Consumer Goods - Toothbrushes, cleaning brushes, hair brushes, nail / cosmetic
brushes, combs, molded furniture (chairs, tables, etc.) house ware, kitchenware,
insulated molded house ware, microwave re-heatable containers, mats and mattresses,
water bottles, gifts and novelties, a range of stationery items like files, folders,
mathematical
instrument
etc.
Writing Instruments - Pens, ball pens, markers, sign pens, refills, etc.
Travel ware - Molded luggage, soft luggage, a range of bags like school bags / ladies
handbags,
wallets,
etc.
Leather Cloth / Artificial Leather Floor Coverings - Vinyl floor coverings and
linoleums
Foam Boards Drip Irrigation Systems / Components Pipes & Pipe Fittings - Made of
PVC,
HDPE,
PP,
FRP,
nylon
Water Storage Tanks Toys and Games Engineering Plastics - Auto components, parts
for various machinery / equipment in telecommunications, railways, electronics, etc.
Electrical Accessories FRP / GRP Products - Safety helmets / equipment, pipes,
storage
Sanitary
tanks,
Fittings
Construction
Cisterns,
PVC
toilet
etc.
seats,
profiles,
bathroom
doors,
fittings,
windows,
etc.
etc.
Tarpaulins Laminates Fishnets / Fishing Lines Cordage / Ropes / Twins Eyewear Lenses,
spectacle
frames,
goggles,
etc.
Laboratory Ware Surgical / Medical - Disposable syringes, blood / urine bags, I.V.
sets,
etc.
10
Future
Forecast
The Indian plastic industry clearly has the potential to continue its fast growth.
However, over the next few years, competition in the industry is expected to increase
11
12
13
needless to say that he is one of the foundation pillar of the company on which the
growth & progress of the company is ensured
Mr.Karan Ramsisaraia (MBA) is young and aspiring and taking the initiative with
his academic skills and present information technology tools to make this business
compatible with the present environment.
Activity and line of Business:Since its Incorporation the Company has been in the
business of Importing of Polymers (Plastic Granules) and its distribution in the Local
Markets since its incorporation. Present the company has stopped imports and procure
the material from domestic market.
The company is also in the business of Mosquito Net fabrics. The company gets
these mosquito net fabrics manufactured through its Job Workers.
The Company is also a Del Credere and Consignment stockist (DCA & CS Agent)
of M/s. Indian Oil Corporation LTd (IOCL) A Public Sector Undertaking (PSU), for
the Karnataka Region
(Bangalore) for its Polymers products. The Agency from one of the renowned refinery
gives the company an abundant opportunity.
Brief Category of Polymers
.
c) PP Polypropylene
These in themselves have wide varieties of grades, which are applicable in
manufacturing of various plastic items. Each grade have its own technical
specifications and usage.
14
15
Managing
Director
Director
Director
Head of
General
Administration
Head of
Research and
Development
Creative
Manager
Head of
Information
Technology
Head of Human
Resource
Head of
Finance
Head of
Production
Accounts
Manager
Head of
Technology
Facotr
Inspect
Employee
Trainees
Employee
Trainees
Employee
Trainees
Invento
Manag
Employee
Trainees
Person
Inchar
Qualit
Inspect
16
3.1 FINANCE
The company comprises pf a very skilled and efficient finance department as the
companys major operations were related to the import and export of polymer plastics.
Initially , I started off with the analysis of the financial statements of Pradeep
industries for the last three financial years starting from 2012-2013. I found out that
the company was earning good profits by purchasing the raw material in the domestic
market rather than importing it. The reason behind this was that the demand for
polymers is very high in the international due to which the prices have shown a rising
trend in the past few years. the mentor also taught me how to control risk through
currency hedging. The finance department had a total of ten people under the finance
head. I had a chance to interact with each one of them. All of these individuals were
qualified and had immense knowledge on the various aspects of finance. The finance
department of the company works on the amount of working capital required by the
company for its day to day operations. Being a trading firm , the company has to
manage its day to day cash flows in a very efficient manner. The fixed capital
management is very minimal or negligible for the company. The analysts also keep a
track of the forex market on a day to day basis. They also ensure the necessary
procurement and allocation of funds in the correct avenues to ensure optimum
utilization of funds of.the department ensured that the company has enough funds to
facilitate instant orders or purchase of raw materials. The finance department of
Pradeep industries works closely with the departments of other subsidiaries under
Shyam Plastics.
At the base level, your finance department will be responsible for all the day to day
transactional accounting for the business. This will include the tracking of all
transactions and the management of any government reporting. In very small ownermanaged businesses this role is often filled by a family member with accounting
experience. An outside accounting firm is usually used for annual financial statements
and returns. In larger organizations this role will extend right through to preparing the
financial statements with an external auditor engaged for assurance purposes.
The finance department is also responsible for management of the organizations cash
flow and ensuring there are enough funds available to meet the day to day payments.
This area also encompasses the credit and collections policies for the companys
17
customers, to ensure the organization is paid on time, and that there is a payment
policy for the companys suppliers. In most organizations there will be some form of
forecast prepared on a regular basis to systematically calculate the ongoing cash
needs.
Where there are cash needs beyond the day to day working capital, the finance
department is responsible for advising and sourcing longer term financing. Financing
may be obtained though bank or private lender debt or, in applicable firms, share
issues to private investors. If the organization is ready to target angel investors or
venture capitalists the finance department will be key in preparing the documents
required
for
thesepresentationsandmayworkwithoutsideconsultantsonacompanyvaluation. In larger
firms considering public share offerings the finance department will assist with the
preparation of the offering documents but will likely also use outside consultants to
advise on this complicated process.
With the must-dos taken care of, the finance department can now start to contribute
to the management and improvement of the operations by measuring and reporting
regularly on key numbers crucial to the success of the organization. Management
accounting information is information that managers can use to monitor the
operations and decide where further attention may be required. It will likely include
some non- financial information and should be communicated to managers in a way
that is easy to understand. In smaller owner-managed businesses this resource, though
extremely important, is often overlooked or ignored.
Looking forward, the finance department will work with managers to prepare the
organizations budgets and forecasts, and to report back on the progress against these
throughout the year. This information can be used to plan staffing levels, asset
purchases and expansions and cash needs, before they become necessary. Some
organizations often plan by the seat of their pants, while organizations know it is
important to have some idea of where you want to go before you start going there.
Finally, the finance department should be called upon to provide information to assist
managers in making key strategic decisions, such as which markets or projects to
pursue or the payback periods for large capital purchases. The finance department can
18
19
3.2 MARKETING
The senior member of the marketing department takes responsibility for setting
marketing strategy in line with overall company strategy and objectives. The strategy
may be to increase share in a specific market sector, for example, to enter a new
sector, or to open a new channel of distribution, such as the Internet, to reach a wider
geographical market. The marketing department reaches agreement on strategy with
the board or senior management team before planning campaigns in detail.
Market Research
Market research is a key responsibility for the marketing department. Research helps
the company identify market opportunities and gain a better understanding of
customer needs. It also helps them understand competitors strengths and weaknesses
so they can take action to protect business with existing customers or win business
from weaker competitors. The department can carry out its own research by studying
industry reports, market data on websites, or by contacting customers and prospects to
survey their needs and attitudes. Alternatively, they can brief a market research firm to
carry out the research.
Product Development
The marketing department works with Internal or external product development teams
to develop new products or improve existing ones. The department analyzes sales of
existing products and identifies gaps in the product range where there may be
opportunities for the company. Marketing employees provide development teams with
information on customer needs and preferences to help them identify the features or
improvements to incorporate in new products. Later in the product development
process, the marketing department sets prices and prepares plans to launch the
product.
Communications
Marketing departments plan campaigns and develop communications material to
promote products and services to customers and prospects. Depending on their
20
available budgets, they may plan advertising campaigns, develop e-mail marketing
programs, create promotional content for the company website, write press releases or
product publications, such as product leaflets, company brochures, product data sheets
or customer newsletters. They may write and design the promotional material if they
have skills within the department or they may appoint advertising agencies or design
firms to produce the work.
Sales Support
Cooperation between the sales and marketing departments can improve sales
performance and speed up business growth. The marketing department can provide
sales teams with high-quality leads by running advertisements that include a reply
mechanism, such as a coupon or telephone number, or by encouraging visitors to the
company website to register their details in return for a free newsletter or special
report. Marketing also prepares presentations for the sales team and supplies them
with stocks of promotional material to give to customers and pros
21
22
23
3.4 PRODUCTION
The production department is responsible for converting inputs into outputs through
the stages of production processes. The Production Manager is responsible for making
sure that raw materials are provided and made into finished goods effectively. He or
she must make sure that work is carried out smoothly, and must supervise procedures
for making work more efficient and more enjoyable.
There are five production sub-functions
Production and planning.They will set the standards and targets at each stage of
the production process. The
quantity and quality of products coming off a production line will be closely
monitored.
Purchasing department
This department will provide the materials, components and equipment required. An
essential part of this responsibility is to ensure that stocks arrive on time and are of
good quality
The stores departmentThe stores department are responsible for stocking all the
necessary tools, , raw
materials and equipment required to service the manufacturing process.
The design and technical support departmentThey are responsible for the
design and testing of new product processes and product
types, together with the development of prototypes through to the final product.
The works department
This department is concerned with the manufacture of products. This will include the
maintenance of the production line and other necessary repairs. The works department
24
25
The net sales have reduced in the last quarter, which is a negative sign for
the company as the sales for a company are expected to increase in every quarter. This
downfall is due to the low operations of the company and also due to a decreased
demand in the international market. Although, the turnover has increased in the
financial year, the increase is very minimal as compared to the turnovers of the
company in the past few years prior to 2014=15/ this reduction is also due to the
underperformance of a few segments in the current year. Sectors like cotton yarn have
produced revenues way below the expected results.
The cost of raw materials has increased has almost increased by 5% due to
the increase in the price of the raw materials required by the company for production.
A positive sign for the company is that increase in the cost of materials is
approximately 3% less than the net increase in revenue from sales.
The major increase on the expenses side has been seen in the purchase of
stock- in trade which has resulted in the cut down in profits in 2015-16.
26
The EBIT of the company has increased by 20% in the year 2015-16.
Despite operating a relatively low scale , the company has shown a decent growth in
its earnings.
The finance cost of the company has come down by 40%. This is a really
positive sign for the company as it shows that the company has repaved a huge
amount of its borrowings. This also helps in reducing the fixed interest liability and
thus also adds to the profit of the company.
The PAT has shown an increase of 35% from the year 2014-15 to 2015-16.
This indicates that the company has shown a reasonable growth inspite of the
underperformance of a few sectors.
The Equity share capital is same in both the years which indicates that no
new shares have been issued during the year.
The company has ensured a stable earnings per share over the years. this
indicates that the company is maximizing their shareholders wealth and thus fulfilling
the most important objective of financial management. Analysis of the Segment
Wise Results
The cotton yarn segment has shown decline of about 5% in the year 201516 as compared to the previous year. This segment has been underperforming for the
past 2-3 years due to a fall in the demand in the international market, one of the other
reasons is the rise in the price of the inputs used for the manufacturing process.
Although , the total cost of raw materials has reduced marginally by about 1% which
has helped in compensating for the decline in revenue to a small extent.
27
The maize processing sector has proved to be one of the most lucrative
sectors for the company. The company has shown a growth of almost 17% in 201516. Although, the total cost involved in the maize processing sector has increased by
almost 2%. This has reduced the total profit that could have been achieved by a small
margin.
The agro processing has produced the highest absolute revenue in the current year
but has shown an increase of only 3.5% from the previous year.
Capital Employed
The capital employed has seen a positive trend in all sectors of the company .
N
- The cotton yarn segment has seen a growth of 28% in the current year
- The power division has seen a decline in the capital employed by about 2%.
- The companys net capital employed has increased by about 11%. 4.2
N
N
N
N
SUMMARY
The company has shown a constant growth during the year. Although , the
company was operating of margin and earnings were almost similar compared to the
previous years. the cotton yarn decision saw a slack period during the year but all the
28
other produced increased revenues as compared to the previous year/ the company has
also maintained a stable earnings per share , hence ensuring satisfaction of the
shareholders. The companys last quarter was showing a downward trend as it saw a
declined in the net sales as compared to the last year. In spite of this, the company
showed reasonable growth during the I also analyzed the maize processing report
during my internship. The report included all the relevant information related to the
project. This report was prepared at the time when the project was going to be started
so I also got an idea about the Indian economy at that point of time. The following
was the project report that I was given to analyze.
29
CHAPTER 5
SWOT ANALYSIS
30
31
32
33
CHAPTER 6
FINDINGS AND SUGGESTION
34
FINDINGS
35
SUGGESTIONS
The company should buy more raw materials from the domestic market rather than
importing a major part of it. The company can also go for investments in short term
and long term securities as it has a god chunk of reserves with itself. The company has
set up its manufacturing unit also which shows that the company wants to gain cost
effectiveness by producing its own raw materials as well as goods for trading. This
will help the company to make huge profits in the future. The company should also
recruit more employees in order to expand their operations and increase work
efficiency. The company should diversify into other avenues also as the regulations
set by the government for the manufacturing of plastic are very stringent. The
company can also turn into a public limited company rather than a private limited
company as the accounting and auditing laws pertaining to a private limited company
are quite complicated and extensive in nature.
36
CHAPTER 7
CONCLUSION
37
The internship was a great learning experience and one of the most exciting six weeks
of my life. I saw how the corporate world works. I specialized in the area of finance
and also worked with the international markets department. I learnt how to apply the
theoretical aspects that we learn in college to the practical life of the corporate world.
I had a great experience in working with my mentor at Pradeep industries. I gained a
lot of knowledge in the area of Polymer Plastic Trading and Manufacturing. As my
mentor was a Chartered Accountant, he also taught me various different aspects about
Accounting and Auditing. He gave me valuable information on the tax audit as well as
the compliance function of the company. Except this, I also learnt to prepare a Cross
Monitoring Assessment Data. I also learnt to make projections for the financial
statements of a company and analyze them in a critical manner. Overall, the
experience was very knowledgeable and I learnt how to apply theory in the practical
life of the corporate world. I would love to have work for longer period of time and
learn from my mentor. It was very difficult to live the work premises as I was used to
it. It was an unforgettable experience as a whole.
38