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AN

INDUSTRIAL TRAINING REPORT

UNDERGONE AT

AN INDUSTRIAL TRAINING REPORT UNDERGONE AT PREPARED BY: PAVSIYA CHINTAN B. S.Y.B.B.A. +91 9277503367 GUIDED BY:

PREPARED BY:

PAVSIYA CHINTAN B.

S.Y.B.B.A.

+91 9277503367

GUIDED BY:

MR.SHAHEZAD

LECTURER

BODILA

SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT

BHAVNAGER UNIVERSITY

BHAVNAGAR

BATCH: 2009-2012

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PREPARED BY

PAVSIYA CHINTAN B.

S.Y B.B.A

ROLL:-NO:-145

+91 9277503367

GUIDED BY

SHAHEZAD BODILA

(LECTURER)

SWAMI SAHAJANAND COLLAGE OF COMMERCE & MANAGMENT BHAVNAGER UNIVERSITY BHAVNAGAR ACADEMIC YEAR 2009-2012

CANDIDATE’S STATEMENT

I undersign PAVSIYA CHINTAN.B the student of S.Y.B.B.A hereby declare the project work presented in this report in my own work and has carried it out under the guidance of SHAHEZAD BODILA of SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT the data contain in the project report is authentic and not copied from any project report.

DATE:………….

PLACE:-BHAVNAGAR

.

SIGNATURE:……………

(PAVSIYA CHINTAN B)

PREFACE

B.B.A is management course and as a part of S.Y.B.B.A. I am student S.Y.B.B.A of SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT BHAVNAGAR. The main objective behind this is to get practical knowledge about industry and environment. Now I can say confidently that this report will be inclined my practical knowledge and improve my not only managerial skills but also personal skills.

As a part of the curriculum the industrial training was to be taken in an industry and a report was to be prepared the report basically comprises of :-

General information and historywas to be prepared the report basically comprises of :- Human resource department Marketing department Finance

Human resource departmentbasically comprises of :- General information and history Marketing department Finance department According to our

Marketing department:- General information and history Human resource department Finance department According to our syllabus prescribed by

Finance departmentand history Human resource department Marketing department According to our syllabus prescribed by BHAVNAGAR

According to our syllabus prescribed by BHAVNAGAR UNIVERSITY, I have finished my practical study. With a great zeal and gaiety, I put this report before you. I have presented information of four subjects according to S.Y.B.B.A. syllabus. this report is the reflect of which I have tried my level best to present information regarding NAVBHARAT.

For this purpose I had visited NAVBHARAT STEEL RE- ROLLING MILL Bhavnagar- Rajkot highway, sihor. Bhavnagar.

ACKNOWLEDGEMENT

The phenomenon remains same that no project report ever can be executed proficiently and efficiently without sharing the meticulous ideas managerial expertise and innovative thought put forwards by the managerial and non managerial veterans by the managerial veterans.

Knowledge in itself is a continuous process at this moment of my substain encasement. I ready find enough words to expressed my gratitude towards those who were constantly involve with me during my project report. I would like to place on records my grateful thanks to people who have help me through the successful competitions of my project report.

In this regard first of all I would like express deep gratitude to our college trust managing directors Dr. SURESHBHAI SAVANI and principal Miss. HETALBEN MEHTA and B.B.A coordinator Mrs. POOJABEN MEHTA and SHAHEZAD BODILA for sharing their precious knowledge with me and helpful to me.

I would like to thanks AJAYSINH SARVAIYA of NAVBHARAT STEEL RE- RONG MILL who give us the permission of training in NAVBHARAT STEEL RE- ROLLING MILL and all the other staff members who have been helpful to us either directly or indirectly.

I am thankful to all the other faculties of my ssccm college for providing me support either directly or indirectly.

The practical knowledge which is necessary in this world which I got through this project report by studying B.B.A in such a good ssccm.

DATE:

PLACE:-BHAVNAGAR.

NAME:-PAVSIYA CHINTAN B.

SIGN:-

INDEX

SR. NO

PARTICULAR

PAGE NO.

1

GENERAL INFORMATION

1-12

2

HUMAN RESOURCE MANAGEMENT

13-35

3

MARKETING MANAGEMENT

36-46

4

FINANCE MANAGEMENT

47-62

5

BIBLIOGRAPHY

63.

CONTENT

NO

PARTICULAR

PAGE NO

1

INTRODUCTION

1-2

2

HISTORY OF THE COMPANY

3

3

PROFILE OF THE COMPPANY

4

4

SIZE OF THE UNIT

5

5

FORM OF THE ORGANIZATION

6

6

MENUFACTURE PROCESS

7-8

7

ORGANIZATION STRUCTURE OF THE

9-10

UNIT

8

TIME KEEPING SYSTEM

11

9

INDUSTRIAL CONTRIBUTION OF THE

12

UNIT

INTRODUCTION

I have completed my industrial training In NAVBHARAT, for the practical knowledge as part of management and general information of industry, in that HUMAN RESOURCE MANAGEMENT, MARKETING MANAGEMENT, FINANCE MANAGEMENT.

A rolling mill is a machine for factory for shaping metal by passing it between rollers. Rolling mills are often incorporated into integrated steel works, but also exist as separate plants and can be used for other materials.

Rolling mills historical have been of several kinds.as separate plants and can be used for other materials. A slitting mill was used to

A slitting mill was used to cut flat bar iron into rods for nall marking.Rolling mills historical have been of several kinds. From the industrial resolution, peddled iron, after

From the industrial resolution, peddled iron, after consolidation with a powered hammer , was rolled into bar iron using a rolling mill with grooved rolls, the droves provided were progressively smaller, so that on successive of the bar became smaller and the bar itself longer. By designing the rolls appropriately, it is possible to obtain iron or steel with and railway rails, electrics and steels are normally used in every industrial unit but iron is also very important and necessary in industrial unit.was used to cut flat bar iron into rods for nall marking. The main products of

The main products of the companies are.is also very important and necessary in industrial unit. 1- M.S.Flat bar. 2- M.S.Angle bar. 3-

1-

M.S.Flat bar.

2-

M.S.Angle bar.

3-

M.S.Round bar.

4-

M.S.Square bar.

-1-

-2-

-2-

HISTORY & DEVELOPMENT OF THE UNIT

The history of NAVBHARAT defines that how it progressed and how it got success.

NAVBHARAT STEEL RE-ROLLING MILL Established in the year 1994 having the purpose to manufacturing various products of steel bars. The production of the company has started with the help of single rolling mill is that with 7 stands with and also with well furnished.

Then, in the year, 1999-2000 company has installed another set of machinery with further develop with the production of M.S. Angle, M.S. Flat, Square and Round Bar and also produce various sizes bars like 6, 8, 10, 12, and 16. Initially production of the unit was 4000 increased capacity the company has got ISI mark and ISO 9001-2000 certificates.

-3-

FORMATION OF THE COMPANY

Company Name

: -

NAVBHARAT STEEL RE-ROLLING MILL

Address

:

-

Survey No:-268/1

 

Rajkot-Bhavnagar highway

Sihor-364240

Dist. Bhavnagar-(guj)

Office

:

-

12, sagardeep, lokhand bazaar

Managing director

:-

Promoter of the company: -

Bhavnagar.

Mr.Bhagirathsinh G. sarvaiya

Mr.Bhagirathsinh G. sarvaiya

Manager

:

-

Mr.Ajaysinh

Banker

:

-

state bank of India

E-mail add

:

-

Navbharatsteel@gmail.com

Web site

:

-

www.navbharatsteel.com

Auditors of company: -

V.M.Shah & co. Bhavnagar.

Establishment year

:

-

1994

Accounting year

:

-

1 st April to

31 st Marrch

-4-

SIZE OF THE UNIT

Size of the unit means, how much the investment of company and how much the turnover is. According to Indian government rules or say policy, this is recognizing by the government.

THERE ARE MAINLY 3 TYPES (SCALE) OF INDUSTRIES:-

1. SMALL SCALE: -Investment is up to Rs. 1 to 5 corers.

2. MEDIUM SCALE: - Investment is between Rs. 5 to 10 corers.

3. LARGE SCALE: -Investment is more than Rs. 10 corers.

According to India government rules NAVBHARAT STEEL RE- ROLLING MILL is small scale industry, because the investment is of Rs.40 lacks. Small scale industry plays a vital role in the country‟s economy.

-5-

FORM OF ORGANISATION

There are various types of organization structures are as under:-

Sole proprietorship:- only one owner only one owner

Partnership:- minimum 2 & maximum 20 minimum 2 & maximum 20

Joint stock company:- artificial person created for carrying one some business by an association of person artificial person created for carrying one some business by an association of person

Co-operative organization:-minimum 2 & maximum 10 minimum 2 & maximum 10

Government department:-public undertaking that is directly under the control of the minister public undertaking that is directly under the control of the minister

Public corporation :- public corporation is a form of organization established for public welfare public corporation is a form of organization established for public welfare

Government company:- Gov. Company is a company where in 51% of shares held by the central government Gov. Company is a company where in 51% of shares held by the central government and a state government jointly.

Form of organization means weather the company is sole proprietor firm or partnership firm. Here NAVBHARAT is a partnership firm. The reason to choose the partnership firm is the investment is not to be done by only the single person and also an idea is not of the one person. According to Indian partnership Act.1932 “Where two or more persons make an agreement to start a business & share profits & loss of the business can stated as partnership firm.

-6-

MANUFACTURING PROCESS

Manufacturing process means in what way the product is to be produce:-

The most time raw material comes from along ship breaking yard. Generally production process should be short, fair and speedy, because cost, price, and quality are depend upon the production process and technology. Therefore, manufacturing process is an important factor and plays vital role for profitability of firm. NAVBHARAT is producing items like M. S. Flat bar, M. S. square, M. S. round bar, M. S. angle bar, so the manufacturing process should not be very slow. The company is making this type of product at different size like 6, 8, 12, 16, 18 gage etc according to the demand. The company NAVBHARAT is produces. So, they use different ingredients for different products the whole process of the company may be classified in following stages:

MANUFACTURING PROCESS CHART

Raw material (M.S.Billets / M.S.Ingots, M.S.Bars)

Breaking in required size

Pieces of billets & ingots heated in furnace at require temperature.

(Furnace heating by coal)

Hot pieces of metal entered in to rolling mill stand.

After passing hot pieces through rolling mill stand

For Achieving Final product (Final products = M.S.Angle, M.S. Flats, Square bar, Round bar, etc.)

-7-

EXPLANATION OF MANUFACTURING PROCESS

1) we are producer of angle, flats, round & square , etc

2) M.S. Billets is IS: 2830 is over basic Raw Material.

3) Purchased M.S. Billets are bracken into required sizes with help of hammer.

4) The pieces of Billets are heated to the require temperature in heating furnace running by coal.

5) The hot metal is then entered into rolling stand where rolls are fitted according to the required size and type of the final product.

6) After passing through the six rolls in rolling mill stand accordingly we achieve the required size and type of final product.

Moreover it is note that this process is carried out under supervision of three skilled persons like foreman and his assistants. The entire process is been worked in the same time table.

-8-

ORGANIZATION STRUCTURE

Generally, the organization structure mainly depends upon the size & the form of the form of the company. The organization structure of NAVBHARAT Includes Three Levels.

1) Top level

2)

3) Lower level

Middle level

CHART

Now, let‟s look at the organization structure of the NAVBHARAT STEEL RE-R OLLING MILL.

PARTNER

OFFICE ADMINISTRATOR

FACTORY AMINISTRATOR

LABOUR

From the above organization chart we can see that the proprietor of the company is at the beginning by office administrator, factory administrator and labor.

-9-

TOP LEVEL

TOP LEVEL MANAGEMENT mainly consists of Board Of Director, Chief

They manage the whole business unit & take

decision about right policy, business promotion, legal provision & all liabilities of a business unit. They also look after Human Resource Management, Marketing Management as well as Finance Management of company.

Executive, Managing Director Etc

In NAVBHARAT STEEL RE-ROLLING MILL Company in Top Level Bhagirathsinh G. Sarvaiya. He is director of the company

MIDDLE LEVEL

MIDDLE LEVEL MANAGEMENT is the link between the Top Management& The Lower Management. It consists of function like production, sales account &personnel officers. They are experts of specific field and try to accomplish work by preparing programs for different section.

In NAVBHARAT STEEL RE ROLLING MILL, the Middle Level Management consists of finance head, production head, and sales

LOWER LEVEL

Generally, BOTTOM LEVEL MANAGEMENT of Jobbers, Workers,

people are important to the company as they are persons

who produce the different products of the company, which the company

Foreman etc

These

producing on the Large Scale.

IN NAVBHARAT STEEL RE ROLLING MILL INDUSTRY, the bottom level consists of many workers who take the guidelines for middle level, who is instructed by the top level.

-10-

TIME KEEPING SYSTEM

Time keeping system is very important for each and every person organized for any small or large scale unit. It is basic requirement of all units. If we want to be success in our business we need to be very time punctual system. The organization can obtain their Goal If They Are Working in a Time System Set by the Firm.

Time is very important in business and also our life one times its goes than they never return. In the same way NAVBHARAT STEEL RE ROLLING MILL is very strict in this matter. The manager director of the unit is very conscious that here aches in time. So, its employees and workers needs to reach at firm in time or before time but should not be late. The unit has been runner in a single shift only but if the demand of product is increased and if they are to be sent earlier than they go for two shift also. The regular shift is only one shift and the time is 10:00P.M. To 6:00A.M.

It does not allow to workers, visitors or trainees to enter without the permission of higher authority and they keep attendance register for the record of its employees. The employees have to signed into that register when they enter in NAVBHARAT STEEL RE ROLLING MILL and when they leave the unit.

The attendance register has been checked by the manager and it any loop poles are there they are rectified and checked upon

-11-

INDUSTRIAL CONTRIBUTION OF THE UNIT

It is necessary for each and every organization to maintain a healthy relationship not only with their employees or customers but also with the industry situated in surrounding area of the industry. For getting such success in the market this relation should be maintain by a good organization. The following is being taken into consideration by the unit:

The unit has maintained a good relationship with a view to developing its marketing channel.

The unit a leading part in the industrial association and also in marketing such decision.

The unit tries their level best to fulfill the demand of its customer by providing them better quality product and by providing employment the unit helpful by reducing such unemployment.

-12-

HUMAN

HUMAN RESOURCES MANAGEMET

RESOURCES

HUMAN RESOURCES MANAGEMET

MANAGEMET

HUMAN RESOURCES MANAGEMET
HUMAN RESOURCES MANAGEMET

CONTENT

NO

PARTICULAR

PAGE NO

1

INTRODUCTION

15

2

DEFINITION OF HUMAN RESOURCE MANAGEMENT

16

3

ORGANIZATION OF HUMAN RESOURCE DEPARTMENT

17

4

RECRUITMENT

18

5

SELECTION & INDUCTION

19-20

6

TRAINING AND DEVELOPMENT

21-22

7

JOB DESCRIPTION

23

8

HEALTH AND SAFETY

24

9

PROMOTION & TRANSFER POLICIES

25-26

10

PERFORMANCE APPRAISAL SYSTEM

27

11

WAGE & SALARY

28

12

WORKING OF E.S.L SCHEME

29

13

GRIEVANCE HANDLING AT NAVBHARAT

30

14

COLLECTION BARGAINING & AGREEMENT

31

15

EMPLOYEE WELFARE

32

16

TRADE UNION

33

17

PERSONNEL RECORD

34

18

PROVIDENT FUND SCHEME

35

19

MANAGERIAL DEVLOPMETNT

36

INTRODUCTION

The term Human Resource can be defined as the total knowledge, skill, creative abilities talents and attitudes of an organization work force as well as the value attitudes and believe of the individual involved. The term human resource can also be explained in the since that it is resource like any natural resource It does mean that the management can get and use the skills., knowledge, ability etc. through the development of skills, taping, and utilizing them again and again.

Now a day for any company it is important that personnel department should effective developed. Effective development of personnel department helps the organization to accomplish the goal of the unit and its success. Without co-operation of the people achieve met of goal cannot be done. Personnel department deals with the planning organizing directing and controlling the human resource.

There is a famous proverb that “MIND YOUR MEN AND MEN WILL MIND ALL OTHER THINGS”.

For getting the best out of people they must be managed well. This is where human resource management plays at critical role in bringing gaps between employee expectations and organization needs by adopting appropriate human resources strategies and practices.

NAVBHARAT STEEL RE-ROLLING MILL is havening a human resource department in which the manager tries to understand the problem of the employees. It tries to motivate its employees to work in a better way and with full energy. They try to maintain unity with the employees.

-15-

DEFINITION OF HUMAN RESOURCE MANAGEMENT

DEFINANTION:-

Human

resource

management

means

employing

people,

developing their resources, utilizing, maintaining and compensating their services in tune with job and organizational requirement.”

It is required that the workers are given essential training for the work so that the work can be done easily. Training is not only task properly.

This is the only resource which can produce unlimited amounts through better ideas. Human resource is most complex & unpredictable in its behavior. Thus, personnel management is the most important function & useful to any company or industry.

The NAVBHARAT Steel Re-Rolling Mill itself a partnership unit. In the unit managing director used to handle the authority and responsibility of this department. The personnel department‟s staff member comes under this and the workers take place at the end. Being a small scale industry the unit NAVBHARAT Steel Re-Rolling Mill doesn‟t has such a big human resource department. It can be representing in the chart as follow:

PARTNER

STAFF MEMBERS

WORKERS

From the above chart we can easily understand that partner of the unit is the authorized person who handles the department. After him staff of the unit comes. An as said before the workers of the unit takes their place at the end.

-16-

ORGANIZATION OF HUMAN RESOURCE DEPARTMENT

The success or failure of the managerial planning is depends upon the organization department. The main actual and practical work is done by employee.

The human resource management is handled by the president and personnel management. He is the person. Who looks after the whole personnel department.

The organization of personnel department is done as the step of the work is suitable for company band society organizations.

The organization structure of personnel department of NAVBHARAT is quite easy to understand and it should be put on your mind carefully. The organization structure of personnel department is listed below:

CHART

MANA GING DIRECTOR

PERSONNEL MANAGER

PERSONNEL ASSISTANT

WORKERS

All the work activity is done by employee with the co-ordination. All the function related to the company‟s are concerned with personnel department with the help of personnel manager.

-17-

RECRUITMENT

Recruitment, Selection and Induction are the operating of the personnel department which is as follows.

RECRUITMENT:-

Recruitment is the process of searching for and attracting applicants for the various jobs position which arise from time to time in the organization. There are two main sources of recruitment which are as follow:

(1) INTERNAL SOURCES:-

1. Promotion

2. Transfer

3. Demotion

4. Deputation

5. Lay-Off

(2) EXTERNAL SOURCES:-

1. Employees recommendation

2. in campus interview

3. Employment exchange

4. Advertisement in newspaper

5. Personnel consultant

NAVBHARAT STEEL RE-ROLLING MILL Has To Recruit Other Persons through Following Reasons :->

1. If somebody recommends or obliges anyone then he is recruited

2. If a person has special skills for then he is recruited.

3. If employees believe that there will be a shortage of employees in

future.

They will recruit employees in advance.

-18-

SELECTION & INDUCTION

Selection starts when recruitment ends. The process of recruitment is open invitation to all concerned. While selection is only welcome process. Candidates who are suitable & qualified for the position for which there are invited. So selection is a process of offering job to the one or more proper candidates from all those who have applied for services. Selection is the process of choosing the most suitable candidates from among the applications for jobs. The need for scientific selection is appreciated by its impact on work performance and employee cost.

SELECTION PROCESS:-

1. Collection of application

2. Selection of application

3. Personal interviews

4. Final selections

In NAVBHARAT STEEL RE-ROLLING MILL the selection and recruitment is done internally hence they do not have to give any advertisement in the newspaper and also there is no chance for calling people from outside.

In NAVBHARAT STEEL RE-ROLLING MILL selection process is as llow:

1. first to all they take those people who are in contact with NAVBHARAT STEEL RE-ROLLING MILL employees and mostly the children‟s of employees are taken.

2. the selection committee will take their personal interviews and if they

pass the final interviews will be taken.

3. they see their qualification, age, eligibility etc

4. then the selection person will be given his joining date and his time

and his work will be showed.

-19-

INDUCTION:-

Induction is the process of receiving and welcoming an employee when he first joins a company and giving him basic information. He needs to settle down quickly and happily and start work. New employee who Is selected for the job must be introduced in the organization.

In simple word induction means introduction the new employees are given general information about the management and the work to be undertaken by him. In other word induction means when a new employee is been employed than he has been awareness about his work and rules and regulation.

In NAVBHARAT STEEL RE ROLLING MILL the head of the department does the induction program. He shows the new employee his job specification its duties and responsibilities. The supervisor is given the authority to help the employee and teach him his work with cool and mind and he tries to motivate the new employee to achieve the targeted goal of the firm.

In the introduction general information rules his work job description are given to the workers. The new employees are made familiar with other employee‟s supervisor his superior subordinate etc.

-20-

TRAINING AND MANAGEMENT DEVELOPMENT

Training and development is the basic necessity for each and every firm by this process. By training a person will be able to work more efficiently.

In

other

words

training

is

the

art

of

developing

skill

knowledge for performing particular job.

and

F.W. Taylor the father of modern management emphasized the need of training to optimize productivity and development of the organization in today‟s fast moving a world training & development is basic necessity for each & every firm to achieve organization goals training is not only enables the organization.

Training is the process of acquisition & development of those knowledge, skills, techniques, attitude and experience which enable and individual to make his most effective contribution to combine efforts to team.

and

organization procedure by which non-managerial personnel learn technical knowledge and skill for definite purpose.

Training is

a

short-term

process utilizing

a

systematic

While development is long-term education process utilizing a system and organized procedure by which managerial learn conceptual and theoretical knowledge for general purpose.

NAVBHRAT STELL RE-ROLLING MILL gives training to the new recruited people and tries to explain their work in a very easy way. The new employees are given training under the higher authority people who have experienced and knowledge.

-21-

METHOD OF TRAINING

There are so many method of training based on the needs. the two main types of training method are.

On the job training

Off the job training

(1) ON THE JOB TRAINING:-

In this types of training the trainee will be trained directly but not in the working hrs means after completing of the will be trained. This types of training is given by conducting lecture or seminar. In short training which is not given in the job time is called “OFF THE JOB TRAINING”.

(2) OFF THE JOB TRAINING:-

In this types of training the trainee will be trained directly but not in the working hrs means when they are working they will be trained so when any new person join the company he will have to stay with other experienced person for few days 0 when he was performing his job he will be instructed by other person then it is known as on the job training.

In NAVBHARAT they are not following any specific training. But they are given training to their employee on the job.

-22-

JOB DESCTIPTION

Job description is statement containing items such job title, location, job summary, duties, machine, tools, and equipment material and firm user supervision given or receive working condition. Job is their responsibility? What is authority? Job description is a part of job analyzes. It gives information about the job itself.

This is a written statement that describe the main features of the job as well as the qualification, activities which the job process.

Job description is prepared on the bases of the data collection through job analysis. The results of job analysis are set down in job description of the activities and duties to be performing in a job. “it is a statement containing items such as, job title, location, duties, machines, tools and equipments and forms used supervision given or receive and hazards.”

The title indicates nature and constitutes records of existing and pertinent job facts. Its document discusses what, how, and why it is to be done.

In NAVBHARAT STEEL RE-ROLLING MILL company they have a completely written document of job description and perfect implementation also. Therefore work for the manager is being very easy and comfortable.

-23-

HEALTH AND SEFATY

SAFETY :-

Safety is the state of being "safe" (from French sauf), the condition of being protected against physical, social, spiritual, financial, political, emotional, occupational, psychological, educational or other types or consequences of failure, damage, error, accidents, harm or any other event which could be considered non-desirable. Safety can also be defined to be the control of recognized hazards to achieve an acceptable level of risk. This can take the form of being protected from the event or from exposure to something that causes health or economical losses. It can include protection of people or of possessions. “Every twenty seconds of every working minute of every hour throughout the world, someone dies as a result of an industrial accident.” This was how the seriousness of industrial accidents was described by the director-general of the British council, in his massage of good wishes to the seventh national conference on industrial safety and health organized by the national safety council, India. In other word safety mean there also are two slightly different meanings of safety. For example, home safety may indicate a building's ability to protect against

external harm events (such as weather, home invasion, etc.), or may indicate that its internal installations (such as appliances, stairs, etc.) are safe (not dangerous or harmful) for its inhabitants

HEALTH:-

Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.

Health is the general condition of a person in all aspects. It is also a level of functional and/or metabolic efficiency of an organism, often implicitly human.

The well-being of the employee in an industrial establishment is affected by accidents and by ill health physical as well as mental. In this section, we shall discuss the need for healthy workers and health services to be provided by the management to ensure the continuing good health of their employees.

In NAVBHARAT STEEL-RE ROLLING MILLS provide safety and health facility in various types.

-24-

PROMOTION AND TRANSFER POLICY

Promotion and transfer of the employee is the major factor affecting in the work of employees. Promotion means to increase post of the employee. Not only has this but also increased the duties and responsibilities of the employees

(A) PROMOTION :-

Promotion is the way to motive an employee but this motivation must be on certain strong base. The basic criteria on which employees are promoted are as under.

It consider seniority of employee

Qualification opinion

Supervisor‟s opinion towards employee

Performance of employee

Extra efforts of work

The term promotion may be explaining an up word advancement of an employee in an organization to another job which commands better pay, better status, and higher opportunity, responsibility, and authority better working environment hour‟s rank. In NAVBHARAT STEEL RE ROLLING MILL there is the policy to give promotion on the basis of performance & experience. The organization believes that efficiency of the employee increase along with time and experience. At the same time quality of work and performance approved is also taken into consideration. In the company worker has promotion to increment salary bases so he do work efficient way

B) TRANSFER:-

A transfer is a horizontal of lateral movement of an employment from one job, department shift plant of position to another at the same or another place where his salary status and responsibility are the same. Transfer is the movement of employee from position to other. Usually involving and marked change is the duties responsibilities skill needed or compensation. In NAVBHARAT STEEL RE ROLLING MILL there is no transfer policy in the unit as it is only one production site so there is no question of transferring employee. Some employee transfer internally For E.G.:- from one department to other. This is also when some adjustment is to be done regarding the running of some equipment or adjust the employee who are on leave or are absent.

-25-

C) DEMOTION:-

lowering down the studies, salary and

responsibilities of and employee. It is used as a measure where there are services branches of duty on the part of an employee when it is after a preliminary to a dismiss it defines as “The assignment of an individual to a bob of cover rank and day usually involving lower level of difficulties and responsibilities.”

Demotion

refers

to

the

A demotion is a reduction in an employee's rank or job title within the organizational hierarchy of a company, public service department, or other body. A demotion may also lead to the loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits.

In NAVBHARAT STEEL RE ROLLING MILL recruitment and selection are done very carefully and promotion is also given after same measurement so there is no caution of demotion. In this industry demotion is happened in very rare case

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PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is the systematic, periodic and an impartial rating of an employee‟s excellence in matters pertaining to his present job and its potential for a better job. Performance appraisal is required for the purpose of placement, selection, transfer, promotion, giving also motivate them towards work. Sometimes performance system is received constant feedback on their performance to be inputted to their continued development.

to appraise is to asset the work or value in the content of individual organization. Performance appraisal is the systematic evaluation of personnel by the supervisor of those familiar with their performance appraisal is the systematic way of judgment the relative work of an employee in performing their task performance appraisal has many different dimensions. It is the feedback process as well as an emotion process.

NAVBHARAT STEEL RE ROLLING MILL performance appraisal system which helps its employees to overcome some times they are given bonus or some token for their good performance.

The procedure for performance appraisal is as follows:

Established performance standard

Communication of performance expectations to employees

Measures actual performance

Compare actual performance with standards

Discuss the appraisal with the employees

Initiate corrective actions

In NAVBHARAT STEEL RE - ROLLING MILL having a well managed performance appraisal of its employee. Each and every department head is given deviation to work discipline, quality of work, co-operation etc…

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WAGE AND SALARY ADMINISTRATION

Wage and salary is the compensation to the employee for their daily work. Wage and salary of an employee can be determined according to their work and their category. It is determined according to his grade filling under different categories.

The basic purpose of wage and salary is to establish and maintain an equitable wage and salary structure. Wage and salary should be inter namely equitable externally competitive and should pay individually on the basis of their skill and performance.

A wage is the remuneration paid for the service of labor in production periodically to an employee or worker thus wages usually refer to the hourly rate paid to such groups as production and maintenance of employees.

On the other hand, salary normally refers to the weekly or monthly rates paid to clerical, administrative and professional employee‟s worker.

In NAVBHARAT STEEL RE-ROLLING MILL wages and salaries are distributed on the 5 th of every month and if employees wants salary in advance, company give advance salary in between at Date 1 st to 15 th of the month.

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WORKING OF E.S.I. SCHEME

E.S.I. act was established in 1948 by the E.S.I. Corporation and autonomous body consisting of representative of the central and state government.

E.S.I is an abbreviation of employee state insurance scheme. This is compulsory for the company. According to the “employee stat insurance act 1948.: E.S.I scheme is applicable on those companies in which there are more than 20 workers working according to factory act; this scheme covers those employees who have salary less than RS.7500 per month. This scheme provides them health and sound benefits of this scheme.

Under this scheme employees have to contribute 1.75% of their total salary while the company contributes 4.75% of their total salary. That total amounts that is 6.25% are sent at E.S.I. head office in Ahmedabad.

In NAVBHARAT STEEL RE-ROLLING MILL the employee‟s state insurance (E.S.I) scheme is applicable to such employees as government per rules.

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GRIEVANCE HANDLING PROCEDUR

A grievance may be understood as an employee‟s dissatisfaction or feeling of personal injustice relating her or his employment relationship.

Grievance producer is another method of resolving disputes. All labors light magnesium carbonate contains some form of grievance provide. And if the producer is followed strictly, and any dispute can easily be slowed.

is it rather difficult to define a grievance when dissatisfaction which is mostly related to work, is brought to the notice of the management through grievance procedure channels, grievance handling procedures means how to make out the solution of the problem.

specific

treatment for the grievance. It means if the problems is occurred, the officer take

out the solution of this.

In NAVBHARAT STEEL RE ROLLING MILL

there

is

no

-30-

COLLECTIVE BARGAINING AND AGREEMENT

When many employees have complaints of particular things and they collectively revolt against then it is the COLLECTIVE BARGAINING. If a large numbers of employees have problems then they have to first inform the director. The chain will be followed by the requirements which depend on the size of the problems faced. The head tries to solve the problem faced by the employees by analysis same person‟s problems, the complaint are to be jointly said and the action is made to it.

Collective bargaining is the resolution of industrial problem between the representative of employer and freely designated representative of employees acting collectively with a minimum of government dictation. Collective bargaining is an essential element of economic democracy is a „Two Party‟ procedure to arrive at mutually agreed solution.

IN NAVBHARAT STEEL RE ROLLING MILL, try to provide their level best to fulfill worker and management. NAVBHARAT STEEL RE ROLLING MILL industry provides many facilities to their worker. Here the whole work is do manual so there is on major problems create between worker and management

-31-

EMPLOYEE WELFARE

Why welfare activity is important? Employees are the value able assets of the organization with employee any activity cannot be conduct. We can get work from machinery as we want and as we like but in sense of employee we have to respect their emotion, behavior and take care of their financial status.

To give motivation to work effective and more extra facility should be provided like school for children and transportation facility. In welfare activity we have to care about the refreshment during the job is also included in welfare activity.

Employees are the capital of the organization. It is necessary to provide such services and benefits to their employees with a view to improving the output and morale of employees towards works. The objective of the organization is not only the profit oriented but also to do the work by employee‟s satisfaction.

Employee services means to take care of the employees. If we see the most of entrepreneur‟s history, who achieves the success they take care of their employees for E.g. Dhirubhai Ambani used to meet all their employee & ask them about improvement so that all his employee would feel good & part of his business.

NAVBHARTA STEEL RE-ROLLING MILL Give various benefits provided to the workers for their welfare. There are no fixed uniform for workers. During special occasion and festival, the workers are provided with a lump sum of money.

The company is providing facilities for first-aid medical services.

The company is also take insurance of every employee.

If in any case any employee needs drawings company provide it.

Company also provides provident facility.

On diwali festival they distribute sweets to all the employees.

On uttrayan festival they distribute threat and kites to the employees.

Company also gives tea coupon in cartain limits.

They give extra bonus to some worker‟s if they had done a good work.

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TRAND UNION

”the Trade union indicates the combination of persons, A trade union is an association of employees & of independent worker. The reason for trade union is that they want steady employment with an adequate income. The Trade union works for the satisfaction of their worker. This type of union puts the problem of worker against the management. They sometimes put pressure on management team satisfy the worker‟s demand.”

Trade union is combination of persons, whether temporary permanents primarily for the purpose of regulating the relationship between workers and employees or between workers and workers.

Trade unions are voluntary organization of employees or employers formed to promote and protect their interest through collective action though he terms employees and employers are used when we say trade unions. They generally refers to employees trade union must be,

1. A combination of workers or employers

2. Such a combination could be permanent temporary

3. Could include federation of two or more unions

4. To regulate relations or among employers.

In NAVBHARAT STEEL RE-ROLLING MILL relation of the staff member workers is like family member they are only 70 to 80 workers. They work with co-operation. So here there is no trade union.

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PERSONNEL RECORDS

A record is piece of writing or a chart which provides ready information and which preserves evidence for feature reference or use records provides tangible evidence of the past activities of an organization. It also provides the information relating to various aspects of human resources of an organization viz. wages and salary productivity social security absenteeism employee welfare, job satisfaction etc…

Personnel records contain each and every information of the employee. It is maintained in files and registers.

In NAVBHARAT STEEL RE - ROLLING MILL personnel department maintains a wide range of records consisting details information about each every aspects of organization. This firm adopts computer system as well as manual system for keeping all the data about employees.

In NAVBHARAT STEEL RE - ROLLING MILL the personnel records of all the employees are maintain through personnel department. Such as,

Name and addresses of employees.

Telephone no. Of employees.

Name of parents.

Date of joining.

Designation and nature of work.

Salary and allowances rate.

Monthly attendance, leave and salary position.

Service disciplinary action report.

Remarks.

So, personnel record is a very essential part of the every organization. Through the personnel record the management can know all the things of employee.

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PROVIDENT FUND SCHEME

According to provident fund act 1952, “provident fund means collection of money from the salary of workers and it is repaid to them at the time of retirement with interest.”In this scheme the company who is having more than 20 employees is eligible to contribute under provident scheme. The year followed by the head office is March to February and also company must the amount provident fund in bank after 15 days of salary.

An employee‟s-employer hast to fill the provident fund withdraw from which is available at provident fund office on retirement. Provident fund is also paid for need of any employee himself or his family member as a form of loan on the occasion of operation etc…

As per this scheme, employees get benefit of the pension after his or her retirement and other amount is refunded at the time of his or her retirement.

The NAVBHARAT STEEL RE-ROLLING MILL also follows provident fund act. It provides as government‟s rules provident fund to its employees.

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MANAGERIAL DEVELOPMENT

Development is the activity associated with the managerial personnel such as executives. Development is concern with theoretical and conceptual knowledge. The human resource department gives high attention and development of each and every employee for the following purpose.

1. Increasing efficiency

2. Increasing productivity

3. Increasing morals of employees

4. Reduce supervision

5. Reducing in learning time

6. Reducing in operational problem.

7. Effective utilization of resources

Development of employees refers to those activities that prepare them for future jobs or positions. The main difference between training and development is that training is generally linked with the operational tasks and development is linked with the future needs of the organization. Both training and development programmer are necessary for any organization. But not all organization show

awareness of the need for the development. This is perhaps due to the fact that fruits of training programmer are more apparent and can be obtained more quickly.

In NAVBHARAT STEEL RE ROLLING MILL workers are trained by the method of on the job training. A supervisor goes with the workers and gives detailed information about his work then asks him to do it practically. Supervisors supervise the process and guide the worker by giving suggestions he also solves the problem which worker faces in the process. The basic purpose of giving training is that worker get full information about his job in a practical way which is very necessary. It is useful in development of worker and workers and also be motivated. Visual training is very good type of training. In this type of training, employees are very best way to understand that what he should actually do in their job.

-36-

MARKETING

MANAGEMENT

MARKETING MANAGEMENT

CONTENT

NO

PARTICULAR

PAGE NO

1

INTRODUCTION

39

2

ORGANIZATION OF MARKETING MANAGEMENT

40

3

PRODUCT PLANNING

41

4

MARKET SEGMENTATION

42

5

PRICING POLICY

43

6

PROPOTION MIX

44-45

7

MARKETING RESEARCH

46

8

PRODUCT PORTFOLIO

47

9

CHANNELS OF DISTRIBUTION

48

INTRODUCTION

Man is a bundle of desire his needs increases day by day. As one need is satisfied another need emerges. Producer produces things for the consumers, but how the things do reach from the producers to the consumers there are so many barriers which comes between these two, so there should be a chain which removes all barriers.

When producer has finished manufacturing of product it is necessary to bring that product in the market so that producer can go on marking that product constantly. In between the product and consumer many things come like transport, decision relating to price, related to the quality and quantity, packing and much more. Market is the set of actual and potentials baggers of product of service.

DEIFINATION:-

According to Malcomm Mc Nair, creation and delivering of a standard of living.”

“Marketing

is

the

Market is the place where buyer and seller come together to exchange their goods.

Marketing is a social and managerial process by which individuals or group of persons obtain what they want and need through creating, offering, exchanging product of value with other.

NAVBHARAT STEEL RE-ROLLING MILL is a leading manufacturer of bars. They identify the needs and want to satisfy the customer through providing them better product quality of the product and customer services their customer.

-39-

ORGANISATION OF MARKETING MANAGEMENT

In the competitive business word of today, marketing of any product is very important. Important every product produced must have a market for sale.

This until takes this well info accounts and thus running it effectively.

To achieve various objective and goals marketing managers has to organization his department on the basis of sound modern principles of organization. it also requires sound organization structure. There shouldn‟t be any over lapping of responsibility and obligation of the person.

ORGANIZATION CHART OF MARKETING DEPARTMENT

MARKETING MANGER

DISTRIBUTORS

DEALERS

-40-

PRODUCT PLANNING

Product planning is the process of determining that line products which can secure maximum net realization from the intended markets.

In other word Product planning means,”introduces a new product in the market. In other word it is adding a new product to existing line of the company.” The products may be as per the needs and the requirements of consumers or may be introducing due to a technological and development new product development. A new product development is different from product innovation or product modification. In any company, they follow customer-oriented planning process, which is as follow.

Idea generation

Screening

Business analysis

Product development

Test marketing

Commercialization

NAVBHARAT STEEL RE-ROLLING MILL the product planning is done by taking care so that the product can easily available to its user. As the unit is making the bars they plan about their product in advance regarding its cost, quality, raw material and time duration, quantity to be produced etc.

-41-

MARKET SEGMENTATION

Market consists of buyers and buyers differ in one or more ways. They differ in their wants, resources locations, buying attitude and buying practices through market segmentation. Segmentation at market is necessary to serve better to the target market for any produces market is not a single market, but it is composite of various sub markets. Market is divided into distinct groups of buyers of marketing mixes.

THE MAIN THREE REASON FOR WHY FIRMS GOING FOR SEGMENTATION ARE:

1. Some market is heterogeneous.

1.

Some market is heterogeneous.

2. Market segment respond differently to different promotional appeals.

2. Market segment respond differently to different promotional appeals.

3. Market segmentation consists with the marketing concept.

3.

Market segmentation consists with the marketing concept.

3. There Are Some Bases For Segmentation Of Market Such as:

1. Geographical segment:-

Dividing the market into different geographical units such as nations, states, regions, countries, cities and climate.

2. Demographical segment:-

Demographical segmentation division of their variables like generates family style, family size, age, sex, education and nationality.

3. Behavior segment:-

Behavior segmentation divides market into group based on customer knowledge attitude use or response to.

4. Psycho graphical segmentation:-

Divides the market into group based on consumer knowledge, attitude, use or response to a product.

5. Social economic segment:-

Divides market in group based on income level, consumption level, religion, culture etc.

In NAVBHARAT manufacturing unit there is Geographic market segment.

-42-

PRICING POLICY

Price may be defined as the value of product. Price is therefore a link that binds consumer and the company. Price is the sum of the values that customers exchange for the benefit of having or using the product or service. Price I the process of determining the price of the product considering all the factors and polices of the firm. Price I the most favorable element of marketing mix.

Internal factors affecting pricing includes the company‟s marketing objective, marketing mix, strategy coasts and organization goal.

In NAVBHARAT, it depends upon the demand and supply. And it is one type of open price system.

-43-

PRAMOTION MIX

THE TOP 4 PROMOTION MIX TACTICS:->

PERSONAL SELLING

is one of the most common of the promotion tactics. Most companies will hire people to do the selling: sales representatives, account managers, inside sales representatives, retail sales, sales agents, or telemarketers. Face-to-face selling is one of the most common methods of selling, although sales by phone, and more recently, sales by email, are becoming well used. These are not necessarily as effective, but they are low cost sales tactics

SALES PROMOTION

Sales promotion is the marketing activity other than advertising. It is a short term incentives to encourage purchase/sales of product and service.

In simple words, sales promotion may define as those activities other than advertising and personal selling‟s which aim at sales promotion. In broader sense the terms refers to almost all activities tempts to improve relations with distributors and customers of which essentially aim an increasing sales.

PURPOSE OF SALES PROMOTION:-

To attract new consumer.

To know customers about the introduction of new policy.

To encourage present customers to buy more.

Sales promotion is an important activity being performed by the marketing department. In NAVBHARAT to increase the sales volume, they use some good credit for sales promotion. This unit allows 30 days credit facility and this limit is increase if needed.

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PUBLIC RELATIONS (PR)

is another common promotion tactic. Public relations includes writing and distributing press releases (to the local newspaper, the national newspapers, to online PR sites, to radio and television, to magazines, and more). The key for effective PR is to identify and understand your target audience, the key message or messages you want to deliver, the credibility of your organization, and the recognition that PR is not a sales tactic but an identity (whether corporate, brand or product) building tactic.

ADVERTISING

“Advertising is any paid from of non-personnel presentation and promotion of ideas, goods and services by identifiers sponsor.”

In today most competitive world, advertising is most useful way of communication between the manufacturers and the consumers.

Advertisement usually provides information about the advertising firm, its product qualities place of availability etc, to the prospective buyers.

In the unit NAVBHARAT STEEL RE-ROLLING MILL. However, to highlight the name of our company. We distribute every year diary and calendar to our customer and broker or relatives and friends and they are attached the ribbon of aluminum with product which is indicate the benchmark & logo of company.

-45-

MARKETING RESEARCH

“Marketing research is the systematic gathering recording and analyzing of data about problems relating to the marketing of goods and services.”

AMERICAN MARKETING ASSOCIATION (AMA)

Through market research, the company can have all the information related to its product market share information about competitors etc. all the activities are necessary to collect the information about the market situation.

Marketing research is the systematic decision collection, analysis and reporting of date finding relevant to a specific marketing situation facing the company.

The success of marketing research is as under

Define the problem and research objecting

Develop the research plan

Collection the information

Present the finding.

In NAVBHARAT, through market research the company can have up to date information about its products, market share, information about competitors etc.

-46-

PRODUCT PORTFOLIO

INTRODUCTION:-

The business portfolio is the collection of businesses and products that make up the company. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities.

The company must:

(1) Analyse its current business portfolio and decide which businesses should receive more or less investment, and

(2) Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained.

BUYER AND SALER INFORMATION

BUYERSshould no longer be retained. BUYER AND SALER INFORMATION “Buyer is one who purchases the product

“Buyer is one who purchases the product from other by giving them value”.

When we purchase the raw material, we have to take care of many things like cost, defectiveness etc. so that we can make best product with cheapest cost and ultimately our profit will be high.

SELLERSwith cheapest cost and ultimately our profit will be high. “Seller is one who sells the

“Seller is one who sells the product to other by obtaining value from them”.

To sell the product, we have to take care of making good quality of product with reasonable price because people want those products which are of good quality and reasonable price.

-47-

CHANNELS OF DISTRIBUTION

Distribution channels are the set of intermediaries of

independent department involved in the process of making a product or

service available for the use of consumption by the goods and service

form producers to customers. Channel of marketing research.

1)

DIRECT CHANNEL:-

The direct or short channel is one where in the company chooses to

sell direct to consumers without engaging any intermediary.

2)

Manufacturing

Consumers INDIRECT CHANNEL:-

In direct of long channel is one where in the company chooses to

engage intermediaries in order to channelize its product and services to

consumers.

Manufacturing

Agent

Wholesaler

Retailer

Consumer

from the above channel of distribution, NAVBHARAT does its

production its production through third channel i.e. manufacture, trader,

broker, retailer and consumer.

Thus, the rational for having a distribution channel is to create value for

consumer through the generation of form, possession, time and

availability, utility.

MANUFACTURER

TRADER

BROKER

RETAILER

CONSUMER

-48-

CONTANT

NO

PARTICULAR

Page

no

1

INTRODUCTION

51

2

ORGANIZATION OF FINANCE & ACCOUNT

52

3

CAPITAL BUDGETING

53

4

CAPITAL STRUCTURE

54

5

MANAGEMENT OF WORKING CAPITAL

55

6

INVENTORY MANAGEMENT

56

7

RECEIVABLE

57

8

CASH MANAGEMENT

58

9

RATIO ANALYSIS

59-60

10

LEVERAGE

61

11

CAPITALIZATION

62

12

FINANCIAL PLANNING

63

13

MANAGEMENT OF FIXED ASSETS

64

14

CONCLUSION

65

INTRODUCTION

The scope of financial management, that is, the views about Finance function have undergone remarkable changes over time. till1950, Finance function was regarded as the function only of raising Finance for business, and consequently the discussion centered round different sources of Finance, financial institutions and financial documents. In a modern life cycle, money using economy finance may be defined as the provision of money at the time it is wanted.

Finance is the regarded as the life blood of a business enterprise. It has rightly been said that business needs money to make more money hence applicant management every business enterprise is closely link with efficient management of its finance.

Finance management is mainly concern with the proper management of funds the finance manger must see that the funds properly balanced in a given situation and there is optimum utilization of funds.

DEFINITION:-

Hoagland says “Financial management is concerned mainly with such matters as, how a business corporation raises its finance and how it makes use of it”

The financial management has therefore been assigned the task of planning and controlling long and short term financial needs of the firm.

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ORGANISATION OF FINANCEANDACCOUNTS

ACCORDING TO HENRY FORD REMARKED:-

Money is an arm or leg. You either use it”

This remark explains the significance of money or cash. The finance is very popular and one of the most important factors for established any company.

In simple word financial management means, raising of adequate fund at the minimum cost and using them effective in business. Financial management does not stop at procuring they require finance. It has also to see that it is effectively utilized in business.

Money is the soul business.”

and of coarse the

blood of any share of

Organization of finance of at NAVBHARAT unit is totally done at sihor, Bhavnagar. Mr. Bhagiratsinh and also two assistants are (Mr.Rajendrasinh & Mr.Kanaksinh) handle the department of finance. All the decision regarding finance taken with the help of accountant, while management of finance looks after by directors are meeting in which take the decision.

THE ORGANIZATION CHART OF FINANCE DEPARTMENT IS AS UNDER:-

Finance manager

Accountant manager

ASSISTANT A/C manager

Chief accountant

assistant accountant

-52-

CAPITAL BUDGETING

ACCORDING TO R. M. LYNCH

“Capital budgeting consists of planning and budgeting of available capital for the purpose of maximizing long term profitability of the firm.”

Capital budgeting decision may be defined as the decision to invest its current funds most effectively in the long term assets in anticipation and expected flow of benefits over a series of years.

A number of capital budgeting techniques are in use are classified into two categories:-

DISCOUNT AT CASH FLOW CRITERIA:-techniques are in use are classified into two categories:-  Net present value  Internal rate

Net present value

Internal rate of return

Profitability index

Discount payback period

NON-DISCOUNT CASH FLOW CRITERIA:-return  Profitability index  Discount payback period  Payback period  Accounting rate of return

Payback period

Accounting rate of return

In NAVBHARAT at present most of the important and heavy investment decision have been taken in part.

-53-

CAPITAL STRUCTURE

A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.

In finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and $80 billion in debt is said to be 20% equity-financed and 80% debt- financed. The firm's ratio of debt to total financing, 80% in this example is referred to as the firm's leverage. In reality, capital structure may be highly complex and include tens of sources.

NAVBHARAT STEEL RE-ROLLING MILL is Partnership Company so the company is not issued any equity, preference and debenture.

-54-

MANAGEMENT OF WORKING CAPITAL

Capital, which required for day to day functioning of its business. It is require for purchase of raw material, semi-finished goods, payment of was. The goal of working capital management the firm‟s current assets and liabilities in such a way that a satisfactory level of working capital is maintains. Interaction between current assets and current liabilities is main theme of working capital.

Working capital management may be need optimum level of current assets, the tradeoff between profitability and risk which associated with the level of current assets and liabilities, financing-mix structure and

soon.

There Are Two Concept Of Working Capital A Under:-

1. GROSS WORKING CAPITAL:-

According to gross concept the total investment of working capital in current assets. While net working capital refers to the difference between current assets and current liabilities.

2. NET WORKING CAPITAL:-

In net working capital there are two concepts. First positive and second negative, when current assets exceed current liabilities. It is called positive net working capital. While current liabilities exceed from current assets it‟s called negative net working capital.

the working capital consists of three phases.

Inventories

Receivables

Cash & bank

-55-

INVENTORY MANAGEMENT TECHNIQUES

Inventory is composed of assets that will be solving in future in the normal cause of business. In the finance inventory means the value of raw materials, consumables, spares, work in progress, finished goods and scraps in which a company‟s fund have been invested. he considers Inventory as a blockage of money. The marketing manager prefers to have reserves if finished goods and for production manager favors relatively a higher level of Inventory. Inventories are higher-level Inventory. Inventory is thus one of the major elements, which help the firm is obtaining the desire level of scales and smooth running business.

In management of Inventories in NAVBHARAT STEEL RE- ROLLING MILL, the record of Inventory is maintained of factory premises according to rules and regulation.

-56-

RECEIVABLE

Receivables are a direct result of credit sales. Credit sales is restored to by a firm to push up its sales which ultimately result in pushing up the profits earned by the firm

“Receivables are assets accounts representing amounts owed to the firm as a result of the sale of goods or services in the ordinary course of business.”

Receivables management is an essential tool in modern business trade. When firm will sale goods for cash, when a firm sales food or services on credit, payment are received only at a future date & receivable are created. A firm grants credit to its customers so that its customers so that its sales are not lost to competitors.

Receivables or book debt is created by the trade and arises out of credit transaction. The basic objective of receivables or credit. Management is to maximize the value of the firmly obtaining optimum volume of sales by controlling the cost or credit and keep it at minimum.

-57-

CASH MANAGEMENT

Cash a liquid and assets is the basic input required to run the business. It includes cash and near cash assets like c both cash management is concerned with the managing of cash flows into and out or within the firm. The basic objective of cash management is to reduce the operating cash requirement to the minimum possible extent without affecting the routine transaction.

Generally cash is handled by director, his family member and show self. While bank is also operate by director. However, it has been maintained with the help of accountant and their staffs.

In NAVBHARAT STEEL RE-ROLLING MILL petty cash book is managed and most of the transaction is done by cash.

-58-

RATIO ANALYSIS

Financial ratios are calculated from one or more pieces of information from a company's financial statements. For example, the "gross margin"

is

the gross profit from operations divided by the total sales or revenues

of

a company, expressed in percentage terms. In isolation, a financial

ratio is a useless piece of information. In context, however, a financial ratio can give a financial analyst an excellent picture of a company's situation and the trends that are developing.

A ratio gains utility by comparison to other data and standards. Taking

our example, a gross profit margin for a company of 25% is meaningless by itself. If we know that this company's competitors have

profit margins of 10%, we know that it is more profitable than its industry peers which is quite favorable. If we also know that the historical trend

is upwards, for example has been increasing steadily for the last few

years, this would also be a favorable sign that management is implementing effective business policies and strategies.

Financial ratio analysis groups the ratios into categories which tell us about different facets of a company's finances and operations. An overview of some of the categories of ratios is given below.

Leverage Ratios which show the extent that debt is used in a company's capital structure.

Liquidity Ratios which give a picture of a company's short term financial situation or solvency.

Operational Ratios which use turnover measures to show how efficient a company is in its operations and use of assets.

Profitability Ratios which use margin analysis and show the return on sales and capital employed.

Solvency Ratios which give a picture of a company's ability to generate cash flow and pay it financial obligations.

These alternative methods of expressing items that are related to each other are, for purposes of financial analysis, referred to as ratio

analysis.

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TYPES OF RATIO ANALYSIS

1. GROSS PROFIT RATIO:-

DESCRIPTION:-

The gross profit ratio indicates how much of each sales Rupees is available to meet expenses and profits after merely paying for the goods that were sold. This interactive tutorial explains the gross profit ratio by walking you through the steps, including where Sales and Cost of Goods Sold are on the Income Statement. It lets you use your own numbers -- great for checking homework answers

use your own numbers -- great for checking homework answers The gross profit ratio indicates how

The gross profit ratio indicates how much of each sales dollar is available to meet expenses and profits after merely paying for the goods that were sold. This interactive tutorial explains the gross profit ratio by walking you through the steps, including where Sales and Cost of Goods Sold are on the Income Statement.

OPERATING RATIO

A ratio that shows the efficiency of a company's management by comparing operating expense to net sales.

EXPLAINS OPERATING RATIO

The smaller the ratio, the greater the organization's ability to generate profit if revenues decrease. When using this ratio, however, investors should be aware that it doesn't take debt repayment or expansion into account. Calculated as:

debt repayment or expansion into account. Calculated as: Where, X 100 Cost of goods sold =

Where,

X 100

Cost of goods sold = Net sales Gross profit

Operating exp. = Administrative interest + selling. exp

Out of sales of Rs. 100, Rs.72 is taken away by cost of goods sold and other expenses and Rs.23 is left in the hands of proprietors. This ratio therefore suggests that a particular share of selling price is absorbed by cost of sales and the remainder is left for the owner‟s of the business. Hence the higher the ratio, lower the profitable it is.

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MEANING :-

LEVERAGE

The dictionary meaning of leverage to an increase means for accomplishment some purpose. Leverage help us lifting heavy, which may not be otherwise possible

DEFINITION:-

“Leverage may be defined as the employment of assets of fund for which firms paid fix cost or fix returns.”

ACCORDING TO SOLOMAN:-

“Leverage is the ratio of the net rate of return equity share and net rate of return of total capitalization.”

THERE ARE 3 TYPES OF LEVERAGE:-

1. Operating Leverage

2. Financial Leverage

3. Combined Leverage

But NAVBHARAT STEEL RE- ROLLING MILL does not follow leverage.

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CAPITALIZATION

The term “capital” plays an important role in any organization because more is the turnover more is the profit .it is necessary to know from how much capital they had started the business and now where are they?

In any business first of all the finance manager has to decide which

amount is require. This

business unit. The capitalization is of three types.

decision include estimation of total funds require by a

If capitalization of a company is just equal to its capital requirement, it is

considers to be property capitalized. If it is more than require, profit per share will fall and its capitalization is said to be in appropriate, similarly if capitalization is less than require, it is not desirable.

1. OVER CAPITALIZATION:-

A business is said to be over capitalize when there is over estimation of fund. It can be also being said like there excess investment in assets and require. It said to be over capitalization i.e. book value greater than real value.

2. UNDER CAPITALIZATION:-

A business is said to be under capitalization when there is under

estimation of fund. So, the investment in the assets is also less than. In under capitalization there is book value is less than the real value.

3. FAIR CAPITALIZATION:-

Total amount of capital should be enough to meet its future needs it called fair capitalization.

In regard to NAVBHARAT STEEL RE-ROLLING MILL, are very near to fair capitalization i.e. it has adequate capital in relation to its requirement.

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FINANCIAL PLANNING

Planning is very necessary for smooth running of the business. Financial planning may be referred to as assessment of financial requirements and clear arrangement of various sources of capital so as to optimize on the cost and increase return to shareholders and accommodate at all times the carrying of the assets. Financial planning is one of the pre-requisites for the success of an enterprise. Finance manager is consumed in financial planning i.e. co-ordination of a series of interdependent and interconnected decisions over a period of time, including the process of forecasting.

As a short term measure, it ensures timely and balanced flow of funds to all segments of the organization. As a long term aspect, it is one of the basic tools for efficient use of financial resources.

The basic objective of the firm is to get maximum profits out of minimum efforts or to maximize the wealth of the corporation to its shareholder in an efficient manner. So the basic purpose of the financial planning is to make sure that adequate funds are raised at the minimum cost and that they are used wisely. Thus planners of financial policies must see that adequate finances are available with the concern when they are required because an inadequate supply of funds will hamper operations and may lead to difficulties.

Financial planning is basically of three types-short term, middle term, and long term. The unit has no separate department for financial planning, but these functions are performed by the account department. They make the plan for the stock of goods amount of maintenance of stock etc. planning of the company is extremely good. So the financial planning is most important for each and every company.

Important to both long term as well as short term financial planning. The unit basically concerned with 3 types of planning.

o

Short term planning: for one month to one year.

o

Meddle term planning: for one year to five year.

o

Long term planning: more than five year.

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MANAGEMENT OF FIXED ASSETS

Those assets, which are purchased by the company because of their long uses period, are termed as fixed assets. It does not include items offered for sale fixed assets management

Is the most important task, which a management has to face. The decision regarding investment in fixed assets should be taken effectively and effectively because it converted into cash easily except as considerably loss.

The management of fix assets should be done very accurately in every firm. It is done for some specific purpose like to know the size of reward of return that will set after a period of time, or to know whether the firm is going profitable or not also for taxpaying purpose.

firm is going profitable or not also for taxpaying purpose. THE DETAIL OF INVESTMENT IN FIX

THE DETAIL OF INVESTMENT IN FIX ASSETS BY NAVBHARAT IS AS FOLLOW:-

FIXED ASSETS

AMUNT IN RS.(APPROX)

MACHINERY

50

TO

60 LACKS

LAND

25

LACKS

BUILDING

30

LACKS

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CONCLUSION

In the overall conclusion, I observed that the company has well laid out human resources development. Marketing and financial department

The quality of people was found to be very good and rightly placed. The organization Chart was well defied. Constant training of the staff was keeping people‟s performance up to the mark for their post. Perhaps, work allocated to some individual was less than the working time available

Finally, I am extremely thankful to the management of NAVBHARAT STEEL RE-ROLLING MILL top import extensive practical training to me.

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BIBLIOGRAPHY HUMAN RESOURCE MANAGEMENT:- Prof. Udai Parikh C.B. Mamori, S.V. Gankar, Himmaliya publishing house, Mumbai.

BIBLIOGRAPHY

HUMAN RESOURCE MANAGEMENT:-

Prof. Udai Parikh C.B. Mamori, S.V. Gankar, Himmaliya publishing house, Mumbai. And Human resources management by S.S.khanka, 11 editions 2002-03

resources management by S.S.khanka, 11 editions 2002-03 MARKETING :- Philip Kotler. Kevin lane Kller, Abraham koshy,

MARKETING:-

Philip Kotler. Kevin lane Kller, Abraham koshy, Mithileswar Jha, „marketing management‟, 12 editions 2002-03

Jha, „marketing management‟, 12 editions 2002 -03 FINACIAL MANAGEMENT:- Prof. S.P. Shah, Dr.Paresh Shah, Dr

FINACIAL MANAGEMENT:-

Prof. S.P. Shah, Dr.Paresh Shah, Dr P.K.Priyam, Dr. Hitesh Shukla, „finance management 1 st edition 2002-03, and financial management by prof. s.p.shah

management 1 s t edition 2002-03, and financial management by prof. s.p.shah WEB SITE :- www.navbharatsteel.com

WEB SITE:-

www.navbharatsteel.com

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