Internship Report on

R S INDUSTRIES, Davangere.

Submitted By
ARPITHA S
USN: 4UB17MBA06
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELAGAVI-590018

In partial fulfilment of the requirements for the degree of

MASTER OF BUSSINESS ADMINISTRATION
Under the Guidance of

Internal Guide External Guide

Mr Rakesh H Mr Raju. S
Assistant Professor CEO
Dept. of MBA R S Industries
UBDT College of Engineering Doddabudhihal Village
Davangere-577004 Davangere.

DEPARTMENT OF MBA
UNIVERSITY B.D.T COLLEGE OF ENGINEERING,
(A Constituent college of VTU, Belagavi)
DAVANAGERE-577004
2018
 University B.D.T. College of Engineering,
(Constituent College of VTU, Belagavi)
Davanagere - 577 004

Off. : 08192-233414 Fax: 08192-233412

CERTIFICATE

This is to certify that Ms ARPITHA.S bearing USN: 4UB17MBA06 is a bona fide

student of Master of Business Administration Programme of the institute batch 2017-19
affiliated to Visvesvaraya Technological University, Belagavi. Internship report on
“R S INDUSTRIES, Davangere” is prepared under the guidance of Mr. Rakesh .H
Assistant Professor, Dept. of MBA in partial fulfilment of the requirements for the
award of the degree of Master of business Administration of Visvesvaraya
Technological University, Belagavi, Karnataka.

Mr. Rakesh. H Dr. T. Manjunatha

Assistant Professor Professor &HOD
Department of MBA Department of MBA

Principal
U.B.D.T. College of Engineering
Davangere

External Viva-voce
Examiners Signature with date
1. 2.
 DECLARATION

I, Arpitha. S. hereby declare that the internship report entitled “A study on R. S. Industries,
Davangere” prepared by me under the guidance of Mr Rakesh. H. Assistant Professor,
Department of MBA, University B.D.T. College of Engineering and External Assistance by
Mr Raju S, CEO , R.S. Industries, Davangere.

I also declare that Internship work is towards the partial of the university regulation for the
award of degree of Master of Business Administration by Visvesvaraya Technological
University, Belgaum.

I have undergone a summer project for a period of five week I further declare that project
report is based on the original study undertaken by me and not been submitted for the award
of any degree from any other University/ Institution.

Place: Davangere signature of the student

Date:
 ACKNOWELDGEMENT

It gives me immense pleasure to extend my thanks and gratitude to those who have been
instrumental in the completion of this project report.

I am grateful to respected Dr. Shivaprasad B Dandagi, Principal, University B.D.T. College

of Engineering, Davangere, for the constant inspiration rendered to me in my project work.

I wish to express my gratitude to all my lecturers who have helped me especially

Dr. T. Manjunatha, Professor and HOD, Dept. of MBA, in the completion of this project
successfully.

I express my sincere thanks to my beloved internal guide Mr. Rakesh H., Assistant Professor,
Dept.of MBA, without whom this project would have been impossible. I thank for his
constant guidance in every aspect of this project.

I am thankful to external guide Mr Raju.S. CEO, R.S. Industries, Davangere, for providing
me the opportunity to undertake this project, without which this project would not have been
possible.

I would also like to express my gratitude to VTU for including this internship programme in
the course of curriculum which has enriched me in terms of experience and knowledge.
Lastly I thank my family and friends for their continues support to complete this project.

ARPITHA. S
 TABLE OF THE CONTENTS

CHAPTER PARTICULARS PAGE NO

1 Introduction-Industrial Profile 1-2

2 Organizational Profile 3-9

3 McKinney’s 7 S Model 10-12

4 SWOT Analysis 13-14

5 Analysis of Financial Statement 15-23

6 Learning Experience 24

Conclusion 25

Bibliography 26
 EXECUTIVE SUMMARY

Visvesvararya Technological University has designed the internship program for the final
year MBA students, it would be helpful to the student for gain practical experience of the
corporate world, this internship program has the duration of 4 weeks, students carry
internship program between the 2 semester and 3 semester of MBA.

I have done my 4 weeks internship program dated 19 June 2018 to 18 July 2018 at “R.S.
Industries”. And the concept is “An organization study at R.S. Industries, Davangere”.

During my internship program, I tried my best understand the organizational model at R.S.
Industries, and my main Moto of the study is to identify and analyse the financial operations
though an organization study.

I have collected data through primary and secondary sources to understand the concept of
organization. As per collection of source analysis customers are satisfied with the service
provided by the R.S. Industries, according to the standards, as per my suggestions the right
service provided to the customer at the right time.
 CHAPTER – 1

INTRODUCTION

Introduction about the internship

It is an opportunity for students to undergo internship for one month duration. It helps
students to experience the corporate culture. It is unpaid and immeasurable amount of
experience that students never receive in the classroom. It helps in gaining practical
knowledge rather than theoretical knowledge.

In this program study will be conducted on particular topic. The detailed analysis will be
done on that topic. The internship will be conducted in R S industries information required
for the study will be collected from the company and from other source.

The experience in the company was good with the support from the company staff. The first
week of internship was all about introduction about the topic and later on the study is done on
the important aspects related to topic.

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 Industry Profile

Company name R S Industries

Plot no 111/P1, Doddabudhihal village, Davangere-

Address 577001

E-mail rajus.gowdar@gmail.com

Phone no 9844609069

Year of incorporated 2007

No of Employees 15

Key person Siddesh , Raju, Siddappa, Ramesh

Industry Manufacturing

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 CHAPTER-2

Organisation Profile

Introduction of pre-stressed concrete

The pre-stressing and pre-casting of concrete are inter-related features of the modem building
industry. Through the application of imaginative design and quality control, they have, since
the 1930’s, had an increasing impact on architectural and construction procedures.

Pre-stressing of concrete is the application of the compressive force to concrete members and
may be achieved by either pre-tensioning high tensile steel strands before the concrete as set,
or by post tensioning the strands after the concrete.

Pre-stressed concrete

Pre-stressed concrete is a form of concrete used in construction which is “Pre-stressed” by

being placed under compression prior to supporting any loads beyond its own dead weight.

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Pre-stressed concert is used in a wide range of building and civil structures where its
improved performance can allow longer spans, reduced structural thicknesses, and material
savings compared to simple reinforced concrete.

Pre-stressed can be applied in two ways-pre-tensioning andpost tensioning.

Pre-tensioning concrete

It is the application, before casting, of a tensile force to high tensile steel tendons around
which the concrete is to be cast. When the placed concrete has developed sufficient
compressive strength a compressive force is imparted to it by releasing the tendons, so that
the concrete member is in a permanent state of pressers.

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Post-tensioned concrete

It is a variant of pre-stressed concrete where the tendons are tensioned after the surrounding
concrete structure has been cast. It is the application of compressive force to the concrete at
some point in time after casting. When the concrete has gained strength a state of Pre-stress is
induced by tensioning steel tendons passed through ducts cast into the concrete, and locking
the stressed tendons with mechanical anchors. The tendons are then normally grouted in
place.

Advantages of pre-stressing

General Advantages:

The use of pre-stressed concrete offers distinct advantages over ordinary reinforced concrete.
These advantages can be briefly listed as follows:

Pre-stressing minimizes the effect of cracks in concrete elements by holding the

concrete in compression.
Pre-stressed allows reduced beam depths to be achieved for equivalent design
strengths.

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 Pre-stressed concrete is resilient and will recover from the effects of a greater degree
of overload than any other structural material.
If the member is subject to overload, cracks, which may develop, will close up on
removal of the overload.
Pre-stressing enables both entire structural elements and structures to be formed from a
number of precast units, e.g. Segments and modular construction.
The ability to control deflection in pre-stressed beams and slabs permits longer spans to
be achieved.
Pre-stressing permits a more efficient usage of steel and enables the economic use of
high tensile steels and high strength concrete.

Limitations of pre-stressing

The limitations of Pre-stressed concrete are few and really depend only upon the imagination
of the designer solution may be the cost providing moulds for runs of limited quantity of
small numbers of standard units.

Materials used

Cement

The cement used in the manufacture of pre-stressed concrete poles shall be any of the
following:

Portland slag cement conforming to IS 455 but with not more than 50 present slag
content,
Rapid hardening Portland cement conforming to IS 8041,
43 grade ordinary Portland cement conforming to IS 8112,
53 grade ordinary Portland cement conforming to 12269.

Aggregates:

Aggregates used for the manufacture of reinforced concrete poles shall conform to IS where
specified; a sample of the aggregate shall be submitted by the manufacture to the purchaser
for approval.

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Pre-stressing Steel:

The pre-stressing steel shall be one the following:-

Plain hard drawn steel wire conforming to either IS 1785(part) or IS 1785.

Cold drawn indented wire conforming to IS 6003.
Uncoated stress relieved strand conforming to IS 6006 or IS 14268.

Reinforcement:

Reinforcement bars and wires shall conform to IS 432(part 1) or IS 432(part 2) or IS 1786, as

the case may be all reinforcement shall be free loose scale, rust and coats of paint, oil, grease,
clay, or other material that may have deteriorating effect on the bond between the
reinforcement and the concrete. Slight rust may be permitted provided there is no surface
pitting visible to the naked eye.

Concrete:

The grade of concrete shall be not less than M 40.

Admixture:

Admixture may be used with the approval of the purchaser. However, any admixture
containing chlorides in any form shall not be used.

Procedure for pole manufacturing

All reinforcement and ducts shall be accurately placed and maintained in position
during manufacture. Grouping of high tensile wires may be permitted as long as the
diameter of the wire is between 3 mm and 5 mm.

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 For pre-stressed pretension system, all wires shall be accurately stretched with
uniform pre-stress in each wire. Each wire or group of wires shall be anchored
positively during casting. Care shall be see that the anchorages do not yield before
the concrete attains the necessary strengths.

For post tensioned poles, the relative position of wires in cables, whether curved or
straight, shall be accurately maintained by suitable means to ensure the free flow of
grout.

Vision and mission

Vision

“Produce high quality concrete in industry in an environmental friendly background

with 100% customer satisfaction.”
Always be the leading global provider and most trusted source of superior engineered
composite poles.
We want to offer our customers the best service in the industry and to be praised as a
fair partner with high values and unwilling to compromise on quality of services and
products.

Mission

Provide the world’s safest and most reliable utility poles.

To have an experience and well trained staff for production, whilst they ensure to
maintain all equipment to high standards, to achieve our goals whilst protecting the
environment
We are committed to provide high quality products at a reasonable price and with
excellent customer service.
We want to leave a positive heritage and we respectfully value our environment and
our community.

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Quality policy

We are committed to achieve customer satisfaction by supplying quality products of world

national and international standards on time, this we achieve through total team involvement
and continual improvement.

Quality objective

Achieve total customer satisfaction.

On time delivery of products.
Supply of defect free products.
Continual improvement.

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 CHAPTER-3

McKensy’s 7S framework

The 7S framework for management analysis was developed by McKinney and company in
late 1970s to help managers address the difficulties of change. The model shows the
organizational immune system and many inter-connected variables involved in making
change complex in which an effective change effort must address many of this issue
simultaneously.

The 7-s frame provides an effective way of analysing an organization, in terms of dynamic
relationship among 7 key elements, namely –Structure, System, Strategy, Style, Staff, Skill
and shared values.

The McKensy’s 7’s model only a tool available to the managers to study the organization. A
major premise of the model is that many performance-related issues are rooted The goal of
the model is to show how 7 element of the company –Structure, Strategy, Skill, style,
Systems, and shared values, can be aligned together to achieve effectiveness in a company.

Among 7 factors outlined. These 7 s are inter- connected and aligned.

All seven areas are inter-connected.

Definition:

McKensy’s 7 s model is a tool that analysis firms organizational design by looking at 7 key
internal elements –strategy, structure, system, shares values, style, staff, and skill, in order to
identify if they are effectively aligned and allow organization to achieve its objectives.

The most common uses of the model are:

To facilitate organization change

To help implement new strategy
To identify how each area may change in a future
To facilitate the merger of organization.

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Strategy: It is a plan developed by a firm to achieve sustained competitive advantage
and successfully compete in the market. institutions are experiencing increased pressure
to achieve and sustain growth.

Structure: It represents the way business division and units are organized and include
the information of who is accountable to whom. Framework within the organisation
formulation members are co-ordinate.

Systems: These are the processes and procedures of the company, which reveal
business daily activities and how decisions are made.

Skills: These are the abilities that firms’ employees perform very well. They also include
capabilities and competencies. Without proper skills, neither of them can use the billions
of R S Industries optimally. Skill important or skill transfers should be considered as
important elements in the strategy.

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Style: It represents the way the company is managed by top-level managers, how they
interact, what an actions do they take and their symbolic value. The leadership approach
of management effective in working with community is achieved through participative
management.

Staff: elements is concerned with what type and how many employees an organization
will need and how they will be recruited, trained, motivated and rewarded.

Shared Values: These are the core of McKinney 7 s model. They are the norms and
standards that guide employee’s behaviour and company actions and thus, are the
foundation of every organization.

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 CHAPTER-4

SWOT Analysis

Strengths:

High market value.

Reduce work cost.
Skilled work force.
A worker quality of around 50000 in individuals.
Technological progression and aptitude in various fields.

Weakness:

Competitive market.
Lack of marking experience.
Lack of financial suppliers.
Limited liquidity option.

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Opportunities:

Development of market.
Provide more security and effective database environment.
Growing economy and demand.
Growth rate and profitability.
Global markets.

Threats:

New technology problems.

Global economy insecurity.
Fluctuation in the cost of raw material.

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 CHAPTER-5

Analysis of financial statement

Presentation of financial statements is the important part of accounting process. To provide

more meaningful information to enable the owners, investors, creditors or users of financial
statements to evaluate the operational efficiency of the concern during the particular period.
More useful information is required from the financial statements to make the purposeful
decisions about the profitability and financial soundness of the concern. In order to fulfil the
needs of the above. It is essential to consider analysis and interpretation of financial
statements.

Every business concern wants to know the various financial aspects for effective decision
making. The preparation of financial statement is required in order to achieve the objectives
of the firm as a whole. The term financial statement refers to an organized collection of data
on the basis of accounting principles and conventions to disclose its financial information.
Financial statements are broadly grouped in to two statements:

1. Income Statements (Trading, Profit and Loss Account)

2. Balance Sheets

(1) Income Statements: The term 'Income Statements' is also known as Trading, Profit and
Loss Account. This is the first stage of preparation of final accounts in accounting cycle. The
purpose of preparing Trading, Profit and Loss Accounts to ascertain the Net Profit or Net
Loss of a business concern during the accounting period.

(2) Balance Sheet: Balance Sheet may be defined as "a statement of financial position of any
economic unit disclosing as at a given moment of time its assets, at cost, depreciated cost, or
other indicated value, its liabilities and its ownership equities." In other words, it is a
statement which indicates the financial position or soundness of a business concern at a
specific period of time. Balance Sheet may also be described as a statement of source and
application of funds because it represents the source where the funds for the business were
obtained and how the funds were utilized in the business.

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Financial ratio analysis
The most popular way to analyse the financial statements is computing ratios it is an
important and widely used tool of financial statements. While developing a meaningful
relationship between the individual items or group of items of balance sheet and income
statement, it highlights the key performance indicators. Such as, liquidity, solvency and
profitability of a business entity. The tool of ratio analysis performs in a way that it makes the
process of comprehension of financial condition of business entity.

Ratio analysis related to working capital

Current ratio: Current ratio is defined as the relationship between current assets and
current liabilities. This ratio is also known as working ratio. It is calculated by dividing
current assets by current liabilities.

Current ratio = current assets/current liabilities

Table no: 5.1 shows current ratio 2016 to 2017

Particulars 2017 2016
Current assets 4857.54 3911.83
Current liabilities 4497.55 3848.81
Current ratio 1.08 1.02

As per the above table values of both year current ratio is good. Because ratio is more than
1.02. In 2017 ratio is increased to 1.08 and also they are having sufficient working capital.

Acid test ratio or quick ratio: This ratio establishes the relationship between
quick or liquid assets and current liabilities. An assets is liquid if it can be converted it
cash immediately or reasonably soon without a loss or value. Cash is the most liquid
asset. The other assets, which are considered to be relatively liquid and included in
quick assets, are debtors, bills receivables, and short term marketable securities. The
quick ratio is calculated by dividing quick assets by quick liabilities.

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 Current assets-inventories
Acid test ratio= -------------------------------------
Current liabilities

Table no: 5.2 shows quick ration 2016 to 2017

Particulars 2017 2016
Current assets 4857.54 3911.83
Inventories 1052.50 937.54
Total 3805.04 2974.29
Current liabilities 4497.55 3848.81
Ratio 0.85 0.77

The Company having more quick assets which can be easily converted into cash the
company is able to get short term credit facilities for their business and their business and
compare to last year quick ratio is increased to 0.85.

Debt equity ratio: It is the ratio computed by dividing the external liabilities by
internal liabilities; the ratio established the relationship between external equities. While
external equities belong to outsiders.

Long term debt

Debt equity ratio= -------------------------------

Shareholders fund

Table no: 5.3 shows debt equity ratio 2016 to 2017

Particulars 2017 2016
Long term debts 307.97 395.77
Shareholder’s funds 397.13 397.13
Ratio 0.78 0.996

From the analysis of the above table the debt equity ratio of the company is decreasing from
0.996 in 2016, 0.78 in 2017. The debt equity ratio of 2017 is less than previous years.

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 Net profit ratio: The net profit ratio is the ratio that expresses relationship between net
profit and sales. The net profit means final balance of operating and non-operating
incomes after meeting all expenses. It refers to net profit before taxes sales means net
sales that are sales minus sales returns. This ratio includes the quantum of the profit
earned by a concern. Like a gross profit ratio, a high net profit indicates that a concern
has a good profitability.

Net profit
Net profit ratio= ----------------------*100
Net sales

Table no: 5.4 shows net profit ratio 2016 to 2017

Particulars 2017 2016
Profit after tax 1932.11 1422.76
Sales 25282.30 22932.22
Ratio 7.64 6.20

It indicates the relation between sales and profit and it is sign of management efficiency in
manufacturing selling’s administrating of the products from the last years the company’s it
show that firm has profit of satisfactory return on the shareholder’s funds. That is 7.64 and
6.20 in 2016 to 2017 and 2015 to 2016 and it is increased compare to last year.

Gross profit ratio: This ratio expenses relationship between gross profit and net
sales and formula as follows:

Gross profit
Gross profit ratio= --------------------------- *100

Net sales

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Table no: 5.5 shows gross profit ratio 2016 to 2017
Particulars 2017 2016

Gross profit 25686.95 23365.65

Net sales 25282.30 22932.22

Gross profit ratio 101.60 101.89

Above the table show that the gross profit of the company the ratio of 2 years is reflecting
how best a company manages an efficiency with which management produce each unit of
Production higher the gross profit ratio indicates the good management and low gross profit
indicates that higher cost of goods sold due to the firm enability and compare to last year it
start a negative in2017 that is 101.60.

Inventory turnover ratio: This ratio indicates the number of times inventory is
replaced during the year. It measures the relationship between the cost of goods sold and
the inventory level.

Cost of goods sold

Inventory turnover ratio = -------------------------
Average inventory

o Cost of goods sold means, sales – gross profit

o Average inventory

Opening stock + closing stock

-----------------------------------------

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Table no: 5.6 shows Inventory turnover ratio 2016 to 2017

Particulars 2017 2016

Sales 25282.30 22932.22

Average inventory 995.02 916.50

Inventory turnover ratio 25.40 25.02

It is indicating that the inventory turnover ratio is increased by 25.40 in 2017 from 2016 that
is 25.02. Inventory turnover ratio is better than the previous year. It indicates that company
compare to last year sales will slow down.

Debtor turnover Ratio: The receivables turnover ratio is an activity ratio

measuring how efficiently a firm uses its assets. Receivables turnover ratio can be
calculated by dividing the net value of the credit sales during a given period by the
average accounts receivable during the same period.

sales
Debtor turnover ratio = ----------------------------
Sundry debtors

Table no: 5.7 shows debtor turnover ratio 2016 to 2017

Particulars 2017 2016

Sales 25282.30 22932.22
Sundry debtors 307.97 395.77

Ratio 82.09 57.94

Above the table reflects the account receivables of a company it means how many times
receivables are collected during a particular period the higher ratio indicates of receivables
are more liquid and are collected very promptly and it is increases to 57.94 to 82.09.

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 Fixed asset ratio: The fixed assets turnover ratio formula is calculated by dividing
net sales by the total property plant and equipment net of accumulated depreciation as
you can see simple equation.

Fixed assets
Fixed asset = ------------------------------------
Ratio long term funds

Working capital Turnover Ratio: The working capital turnover ratio is the ratio
that expresses the relationship between working capital and net sales. Working capital is
the excess of current assets over current liabilities. This ratio indicates the efficient or
inefficient utilisation of working capital of an enterprise. The working capital ratio is
generally expressed as a proportion and it can be calculated using the following formula:

Net sales
Working capital turnover =
Ratio Working capital

Table no: 5.8 shows working capital turnover ratio 2016 to 2017

Particulars 2017 2016

Net sales 25282.30 22932.22

Working capital 1.08 1.01

Turnover Ratio 23409.54 22705.17

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From the analysis of the above table the working capital turnover ratio of the company is
increased in 23409.54 in 2017. It indicates the company have an effective utilisation.

Inventory ratio: The inventory turnover ratio is calculated by dividing the cost of
goods sold for period by the average inventory for that period. Average inventory is
used instead of ending inventory because much company merchandise fluctuates greatly
throughout the year.

sales
Inventory ratio= ---------------------------
Inventory

Table no: 5.9 shows inventory ratio 2016 to 2017

Particulars 2017 2016

Sales 25282.30 22932.22

Inventory 1052.50 937.54

Ratio 24.02 24.46

From the analysis of the above table the inventory ratio of the company is decreased
from 24.46 to 24.02 times in 2016 and 2017 and not so good. Compare to last year
which means sales are inventory cost is increasing.

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Fixed Assets Turnover Ratio: The fixed assets turnover ratio is that ratio that
expresses the relationship between net sales and fixed assets. Net sales refer to the total
sales minus sales returns. Fixed assets refer to net assets i.e., fixed assets minus
depreciation. The fixed assets turnover ratio indicates as to what extent the fixedassets
of a concern have contributed to sales. The fixed assets turnover ratio is generally
expressed as a rate. It can be calculated using the following formula.

Net sales
Fixed turnover ratio= ----------------------------
Fixed assets

2323
 CHAPTER-6

Learning experience

It is an opportunity to test drive career without making any serious commitments. The
knowledge gained and skills acquired through this internship are things that complemented
and enhanced the education I obtained in the classroom.

I have learned the organization structure of the company. I have gained knowledge about all
round view of the management operation. I got the knowledge about the analysis of the
present status and future strategies of the company.

The 4 weeks financial exposure and learning program conducted by the VTU University had
gained me a lot. This program helped me in understanding the various functions R S
Industries and the 7s frame work model showed the organization aspects.

I also understood the application of theoretical concept into business decision in the
organization and I understand the aspects of delegation of authority, responsibility, co-
ordination and team work in the organization. I have gained knowledge about all round view
of the management operation.

Learning from the project:

Various strategies of market.

Business model.
Industry management, critical analysis.
Practical learning of how industries are formed.
Practical learning of how the MFIs work.

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 CONCLUSION

It has been great opportunity for me carry out the study of an organization at R.S .Industries,
Davangere. It has helped to a great extent to have an insight in to the practical realities of the
internship. I have done my best effort for completion of my organization study.

R.S. Industries, Davangere. Is providing an excellent service to the public of dvg through its
effective and efficient distribution of qualitative and quantitative goods and services. This is
because the organization structure adopted and followed good facilities for smooth
functioning of the organization.

In R.S. Industries, Davangere, further changes are not required. But, regarding technical
adoption and quicker servicing it must go for further research and development.

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 BIBLIOGRAPHY

Text books referred:

Pre-stressed concrete, N Krishna Raju, Tata McGraw Hill Publications.

Design of Pre-stressed concrete structures, Lin T Y & Ned Burns John Wiley.
Pre-stressed concrete, Evans R H &Bennett E W, Chapman & Hall.

Web sites:

http://www.ndt.net
http://www.fpcaweb.org
http://www.ice.org.uk

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