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overview of cropcare industry
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PREPARED BY
HIREN.R.MAHESHWARI
S. Y., B. B. A.
ACADEMIC YEAR
2007 – 2008
ROLL No.: 28
SEAT No:
Christ College, Rajkot
Submitted to
SAURASHTRA UNIVERSITY, RAJKOT
GUIDED BY
MISS. DARSHITA GANATRA
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT
DECLARATION
It was memorable Experience for me, I don’t have adequate word to Express my
profound gratitude to project report and to visit the industry. I express my deepest thanks
to MR.K.K.PATEL for providing this great opportunity Excel crop care Ltd.
If I don’t Express my deepest thanks or sense of gratitude towards Mr. K.M. Bhatt
(manager)and all executive without whose active interest, my industrial report would Not
seen in the light my acknowledgement would not be completed.
I also greatly thankful to all those people who have helped me in preparing this
report directly and indirectly by providing necessary information regarding the unit which
I have visited.
SIGNATURE
Date:
Place: KUTCH. HIREN.R.MAHESHWARI
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT1
ACKNOWLEDGEMENT
In the liberalization area of Indian economics Indian Industries have undergone
rapid development in technological & mechanical equipments. Today Indian Industries
have become capable of competing with the multinational Industries.
Excel Crop Care Limited is one of leading industry manufacturing Pesticides
Company in Indian
First of all, I would like to thank the authorities of Excel Crop Care Ltd. Specially
Mr. K. K. Patel from bottom of any heart who provided me with all the information and
guidance that are required by spending his valuable time. I would also like to thank the
staff members who helped me directly or indirectly to complete my project.
I would really like to thank our principle Fr. Joseph V. A. and Miss Darshita Ganatra who
motivated me & guided me through the preparation of this report. I would also like to
thank my parents who supported me & helped me to utilized my abilities.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT2
PREFACE
“PRECTICE MAKES MAN PERFECT.”
As a part a subject in our S.Y.B.B.A to preparer am industrial report of any
chosen industrial concern. As we know that in managerial course or BBA course only
theoretical knowledge is not sufficient and useful to the students to be a successful
manager. Students are like raw material and practical studies like industrial training and
other programmes by which a student can practically know everything which they study
is necessary not only as a subject but also useful in future.
Training is an integral part of education for managerial course and relining does
the job of polishing shaping end marketing then to face into the real life situations and
challenges.
In this project report I have pointed each and every aspect of general information,
finance department marketing department & personnel department during the training
information is carried out by communicating with manager, executives and other concern
with the company.
At the time of making preparation of this report, I got the opportunity to glance
into the real business world. I have got the chance to observe the day to day working of
the unit. This is one of the best and important experience in my life.
As a B.B.A. student I have put in my sincere efforts in preparing and presenting
this report meaningfully.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT3
INDEX
SR. NO. PARTICULARS PAGE NO.
1 GENERAL INFORMATION 05
2 PRODUCTION MANAGEMENT 16
3 PERSONNEL MANAGEMENT 32
4 MARKETING MANAGMENT 59
5 FINANCE MANAGEMENT 75
6 SWOT ANALYSIS 94
7 FUTURE PLANS 97
8 SUGGESTIONS 99
9 CONCLUSIONS 101
10 BIBLIOGRAPHY 103
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT4
1.
General Information
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT5
GENERAL INFORMATION
CONTENTS
SR. No. PARTICULARS PAGE No.
1. Introduction 7
2. History of unit 9
3. Achievements 9
4. Company Profile 9
5. Organizational Structure 14
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT6
INTRODUCTION
Excel crop care Ltd. The name of the company deserve the meaning of very word
excellent which means batter then any thing occupies very important and prestigious role
in pesticide industries in the country. For over 65% market is shared excel crop care Ltd.
For it’s various products like yellow Phosphorous, butane dial and endosulfan.
Excel industries Ltd. primarily manufactures high quality chemicals, relevant to
the needs of industries and agriculture. These products are marketed all over the India and
are exported to over 50 countries around the world.
It is the place where in Asia first unit of phosphors, however today other
companies have also been developed. In this field, they are named by United Phosphorus
Ltd. is the largest in India and second in the world for producing endosalfan. They have
centralized world class research in Mumbai supported by individual state of the Art
Research Centre, at each of their manufacturing plant.
Excel Crop Care Ltd. Business was founded on a close relationship with the
farmers, who used it’s products and their derivatives from an original narrow range of
products for specific uses, excel has expanded its activities, so that today it provides the
farmer with a broad range of products and technical guidance.
This range from initial conditioning of the sail, through preparation for planting
seed selection, irrigation, pest and insect control, maximizing productivity and harvesting
management.
An integral component in achieving this success is a system of fully integrated
production linked to the development of process technology appropriate to the needs of
its customers.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT7
NAME AND ADDRESS
Name : Excel Crop Care Ltd.
Address: Bhuj-Mundra road, Nr. Kera Village,
Gajod – 370 430, Kutch - Gujrat
Board of directors: A.C. Shroff (Chairman)
Dipesh K. Shroff (managing Director)
Prakash K. Shroff (Executive Director)
J. R. Naik
M. L. Shah
Mukul G. Asher
Sandeep Junnarkaa
B. V. Bhargava
Douglas J. Rathbone
Kevin Martin
Sharad L. Patel
L. Rajagopalan
Vice President (Account & Mis. & Secretary)
V. K. Parmar
Banker: Bank of India
Syndicate Bank
State Bank of India
Citi Bank N. A.
UTI bank Ltd.
Auditors: S. V. Ghatalia & Associates
Corporate Office : Plot No. B/5, Gaiwadi Industrial Estate,
Goregaon (West)
Mumbai –
Factories: Kera Gajod High way, Gajod, Kutch
Ruvapari road, Bhavnagar
Silvassa, Union Territory of Dadra and Nagar Haveli,
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT8
HISTORY & ACHEIVEMENT
The story of “Excel crop care Ltd” is not just the story of chemical, It is much as
the story of mankind working there and that is the reason, it is interesting. The growth of
Excel crop care Ltd” won the years has shown that it is a success story throbbing with
life.
Excel was established at 19th November, 1941 as a small kitchen laboratory and
over the year, it was groom up as a unique organization with a value based system of
management style. It is a self made company of one man effort. This man Mr. Chmpraj
Chaturbhuj Shroff (Mr. C.C. Shroff) a brilliant chemistry graduates. Mr. C. C. Shroff
thought that India becomes truly Independent only if it could be economically
independent. This man determined to prove India’s capability with the development of
chemical process through technology and with in a short time. Excel Crop Care Ltd.
produced some starting stock of chemical Mr. C. C. Shroff believe that India problem will
solve by Indian training that’s why Excel industries Emerged in India.
Late Mr. C.C. Shroff the most brilliant member of the family decided to learn
science by working in the factory and rescued a job first in analytical laboratory in
swastika oil mill and then in western chemical, which was one of the big heavy chemical
manufacturing unit in western India. The promoter Mr. C.C. Shroff, Known as “papa” in
his family and employees.
He was started this industry with the capital of Rs. 10,000/- out of this amount Rs.
2,000/- is of his family and Rs. 8,000/- from relatives and friends. In 1948 – 49 there were
only six employees and were introduced 25 different types of products. They achieved
over 1 Hundred product and process break though that even now are serving the specific
needs of various clients. It is the first company in Asia and third in world to make
Endoslfan and Buten – Diol. They are second in the world to develop Glyphosate
technical. They are third in the world Aluminium Phosphid.
When company was converted into public Ltd company, there were only 10,000
share holders. The development of Excel crop care ltd is different from the development
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT9
of others. After fifty nine years of its established or existence it goes in achieving further
and peck and progress.
Today it has five main units which are in Bhavnagar, Jogeshwari Mumbai,
Amboli hill Mumbai, Roha and Lote Parshuram. It is also maintaining its marketing
officers at Headband, Madurai Mumbai, Delhi and Antwerp in Belgium etc.
They operate from eight manufacturing plants, which are spread across the
country in Mumbai Maharastra, Gujarat, Andrapradesh, and Silvassa. They set up an
office to get closer to their customers in moreover, their representative office in Australia
and Singapore.
Excel Crop Care Ltd. is one of the India’s best leading manufactures and exporters
of Argo- chemical and specialty chemicals. In 1994 Excel becomes the first Indian Argo-
chemical company to be certified ISO-9002. Two plants of Excel are ISO- 9002 and one
of their sites have ISO-14001 certification.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT10
SIZE OF THE UNIT AND FORMS OF ORGANIZATION
The size of the unit can be defined on the basis of two criteria:
1. Employee strength
2. Investment
As per the definition of industry, there are three types of size are as follow:
1. Small scale industry
2. Medium scale industry
3. Large scale industry
1. Small Scale Industry
Small scale industries are those industries, in which capital investment is not more
than 60,00,000. for the export oriented small scale unit. IMNT is one who invested less
than 75,00,000 in fixed assets and current assets.
2. Medium Scale Industry
The unit is the one whose investment in fixed assets and current assets is in range
of 75 lac and does not exceed 100 lac. This unit is mostly used in labour incentives
method of the production.
3. Large Scale Industry:
The industry whose requirement in fixed assets is exceed Rs. 100 lac is known as
a large scale industry. The Excel Crop Care Ltd. is large scale industry because it’s
investment and requirement in fixed assets is more then Rs. 100 lac.
Forms of the organization:
Forms of the organization can be classified in three categories on the basis of
ownership
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT11
1. Private sector
2. Public sector
3. Joint sector
1. Private sector
Private sector are those sectors who owned, managed and controlled by private
individuals by private individuals. The followings are the types of private sector.
Sole proprietorship
Partnership
Hindu Undivided Family (HUF)
Co operative society
2. Public Sector
Public sectors are the forms of organization established for public goods under a
special act of assembly deriving independent entity and internal autonomy through the
same act.
For Examples:
1) Government Sector
2) Public Sector
3) Government Department
3. Joint Sector
Legally the joint sector is an artificial person created for carrying on same
business by an association of persons. It asserts that a company has a legal entity of its
own in the sense that it has powers and characteristics determined by the provisions of
law and a constitution formed in accordance with them.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT12
Excel Crop Care Ltd. is a public limited company as it fulfill all the characteristics
of public limited company which are as follows.
1. In such a company shares can be transferred freely.
2. Such a company can invite general public to subscribe all its shares and
debentures.
3. The number of minimum members is seven and for maximum there is no
restriction.
4. The liability of members of such a company is mostly limited.
5. It is necessary to write the word “limited” at the end of the name of such a
company.
6. In such a company shares can be transferred freely.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT13
ORGANIZATION STRUCTURE OF MUMBAI
BOARD OF DIRECTORS
CHAIRMAN
MANAGING DIRECTORS
MANAGING DIRECTORS (INTERNAL)
GENERAL MANAGER
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT14
ORGANIZATION STRUCTURE OF KUTCH
VICE PRECEDENT
GENERAL MANAGER
SENIOR MANAGER
PERSONNEL PRODUCTION MARK- ENGIN- AMINIST-
ETING EERING RATION
EXECUTIVES
OFFICERS
STAFF
SUPERVISOR
WORKERS
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT15
2.
Production Department
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT16
PRODUCTION DEPARTMENTCONTENTS
SR.NO. PARTICULARSPAGE
NO.
1 INTRODUCTION 18
2ORGANISATIONAL CHART 19
3PLANT LOCATION 20
4PLANT LAYOUT 20
5PRODUCTION PLANNING & CONTROL 21
6PRODUCTION PROCESS 22
7REPAIRS & MANINTENANCE 25
8QUALITY CONTROL 26
9 MATERIAL HANDLING 27
10 STORE KEEPING 28
11ENVIRONMENT PROTECTION 29
12INVENTORY MGT. 30
13 SCRAP AND WASTE MANAGEMENT 31
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT17
INTRODUCTION
Production plays a very important role in all the activities of company
management. This is the first step of the company management. All the business activities
revolve around the production process. The production activity is nothing but the step by
step conversion of one form of material into another chemically or mechanically. The
basic inputs of the mine, farm, sea and forest are used as raw material on which the
processing is done to create the output. Production is an activity through which the form
utility is either created or enhanced.
Production management is a process of planning, organizing, directing and
controlling the activities of production function. Production function is the conversion of
raw material into finished goods. Production management is concerned with those
processes which convert the inputs into outputs. The inputs are various resources like raw
materials and the outputs are goods and services.
In Excel Crop Care ltd. production department is looked after by production
manager.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT18
ORGANIZATIONAL STRUCTURE
Organization structure is a basic frame work of company management. It is the
pattern in which various departments of the company are interconnected.
In Excel Crop Care ltd. there is a line type of organization in which
responsibility flow upward and authorities flow downward and upward.
The following is the organizational structure of Excel Crop Care Ltd.
VICE PRESIDENT↓
GENERAL MANAGER↓
SENIOR MANAGER↓
PRODUCTION HEAD↓
WORKER
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT19
PLANT LOCATION:-
Site selection is an important activity which decides the fate of the business. A
good location may, reduce the cost of production and distribution to a considerable
extent. The reduction of cost of production and distribution helps in elevating either the
competitive strength or the profit margin of the business.
Therefore, the location for the factory should be selected very carefully. While
selecting a site, it is necessary to consider technical, commercial, and financial and then
the location is selected which may provide maximum advantages.
So, looking to all these factors EXCEL CROP CARE Ltd. has established the
plant in an industrial estate-
EXCEL CROP CARE Ltd. Has chosen this location taking into consideration
following factors:-
Supply of Raw Material Nearness of Market. Transportation Facilities. Labour Supply. Availability of Power & Natural resources. Government Facilities. Personal Factors. Social Factors.
The following is the location address of EXCEL CROP CARE Ltd.
KERA HIGH-WAY,GAJOD-KUTCH
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT20
PRODUCTION PLANNING & CONTROL
Before starting any production work it is necessary to plan out the production
activity very well. If the production planning is not up to the mark then it will result to
production fault. Wastage can also be reduced by controlling the production process.
Production planning involves the decision on the resources that the firm will
require for its further manufacturing operations and allocation of these resources to
produce the desired product in the required amounts at the minimum costs.
Planning is also done regarding the finance required for the production. The
amount of capital required should be very well planned before starting the production.
The capital should neither be less nor should it be more because in both the cases is loss
for the company.
The man power required for the production process should also be
planned. The number of workers, supervisors, etc. should be fixed well before the
production.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT21
MANUFACTURING PROCESS AND PRODUCT
1. ALUMINIUM PHOSPHIDE(CELPHOS): -
Initially Aluminum powder is taken into Reaction Pot. Yellow phosphorus is than
added gradually to reaction pot. Keeping the blanketing and stirring. After the proper
mixing is done reaction pot is taken to the reaction chamber, where the reaction is carried
out. The P2O5 generated during the reaction is scrubbed with dilute Phosphoric Acid. The
fresh water is initially used to scrub phosphorus pentoxide (P2O5) generated at vessel.
The phosphoric acid thus generated is recirculated at scrubber to get higher
concentration of phosphoric acid (H3PO4) after natural cooling; reacted mass is taken for
grinding. The ground mass is then, taken for formulation. After formulation, product is
taken for tableting. Aluminum phosphide tablets are filled in Aluminum tubes of 30 gm,
860 gm, 1440 gm and 1 Kg. Aluminum Bottle.
CHEMICAL REACTION
4Al + P4 -------------------------- 4 AIP
2) ZINC PHOSPHIDE (COMMANDO)
Initially, Zinc Dust is taken in to the reactor. Yellow Phosphorus is added
gradually at controlled conditions. The reaction between Zinc dust and Phosphorus takes
place in this reaction vessel.
After the reaction the production is taken for micro grinding and the material is
formulated. The formulated product is packed into tins, pouches and drums as per
requirement of size / lot.
CHEMICAL REACTION
6 Zn + P4 --------------------- 2Zn3P2
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT22
PROCESS OF
(ALLUMINIUM PHOSPHIDE)
(CELPHOS)
*LIQUID EFFLUENT GENERATING*GAS EFFLUENT GENERATING
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT23
*EFFLUENT
P2O5 GAS
STACK
PACKING
PHOSPHORUS
ALP REACTOR
ALLUMINUMPOWDER
FORMULATION
TABLETTING
GRINDING ABSORPTION SYSTEM
PHOSPHORIC ACID
WATER
FORMULATION AGENT
*EFFLUENT
PROCESS OF
(ZINC PHOSPHIDE)
(COMMANDO)
*LIQUID EFFLUENT GENERATING*GAS EFFLUENT GENERATING
EPAIRS & MAINTENANCE
Repairs and maintenance is very essential part of the production management. As
entire scenario of the production is depended on the machines and plant one has to make
sure that they are well maintained.
The machine installed in the unit utilizes all the raw material and process them to
produce the final product but when they are not well maintained they directly affect the
quality of the product.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT24
P2O5 GAS
STACK
PHOSPHORUS
ZnP REACTOR
ZINC DUST
BLENDER
PACKING
GRINDING ABSORPTION SYSTEM
PHOSPHORIC ACID
WATER
DILUTANT
*EFFLUENT
There is systematic repairs and maintenance of the plant of the unit, as all the
production work is done by manually as well as automatically. Company has hired some
engineers to look after the plant and various vital components of the same & to guide
workers.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT25
QUALITY CONTROL
In industrial context quality is defined in much more functional fashion thus we
can say that quality means, “Fitness for use” whether for a product or service. It is also
considered as the sum total of the attributes or properties that describe the product.
Today the existence of any manufacturing unit depends on the quality of product
or services it manufactures or supplies. The image or goodwill of any unit is closely
related to the quality of product made or supplied by that unit;
“Level of quality is the mirror for the manufacturer.”
Quality is very important for a manufacturer of product or services because very
existence of manufacturer depends on the quality level.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT26
MATERIAL HANDLING
According to American material handling society, “material handling is the art
and science of the movement, packing and the storage of substance in any form”
It should be noted that material handling is the distinct activity falling within the
jurisdiction of production dept. It is not the part of production control but it is closely
associated with the function of the production control. It is largely concerned with routine
function of the production activity and to some extent the scheduling of the production
dept.
In EXCEL CROP CARE LTD. There is a systematic process of handling different
kinds of materials.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT27
STORES MANAGEMENT
The efficiency of the mfg. operation depends largely on the efficient functioning
of the receiving and stores operations. Receiving and storing are the services, functions
and involve much of the proper work.
The direct production cost is reduced by strategically location of the stores
ensuring quick issue and elimination of production stoppages caused by waiting for
materials. It indirectly reduces the production costs in terms of reduced investments in
materials, storage space and insurance, elimination of the pilferages and theft,
obsolescence, reduced handling cost, etc…
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT28
ENVIRONMENT PROTECTION
A success of an industrial unit lies in its production of its products without
pollution the surroundings. An industrial unit for its functioning depends a lot on the
environment. Without properly no matter however efficient the unit may be.
If the pollution is inevitable then the industrial unit should find out some method
to neutralize the effect of pollution. It should implement ways which would cut down the
pollution emitted by the unit and help to keep the environment clean and pollution free.
EXCEL CROP CARE LTD. Has also taken steps in order to control in the
surrounding of their factory shop.
The boundaries of the factory are planted with 50 to 100 trees which help a lot in
neutralizing the pollution in the environment.
As they produce chemicals most of the work is done through reactors and filter
and in plant and machinery so it is not harming to the environment
The company has also received NOC from Gujarat Pollution Board
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT29
INVENTORY MANAGEMENT
Inventory is defined as a usable resource which is physical tangible such as
materials. In this sense, our stock is our inventory but even then the term inventory is
more comprehensive. Though inventory is usable resource it is also an idle resource
unless it is managed effectively and efficiently. Inventory control refers to the process
whereby the investment in materials and parts carried in stock is regulated within
predetermined limits set in accordance with the inventory policy established by
management.
Inventories constituent the largest component of current assets in many
organization. Poor management of inventories therefore may result in business failures. In
case of a manufacturing organization, the inability could bring production process to a
halt. Conversely, if a firm carries cost may represent the difference between profit and
loss. Efficient inventory control therefore can significantly contribute to all overall profit
position of the organization.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT30
SCRAP AND WASTE MANAGEMENT
Waste management has several dimensions: engineering, geographic, social and
management. Its basic purpose is to minimize of the overall waste in the given system.
Waste here refers to waste of the all kinds of the resources, but especially the material
which constitute a significant portion. Some wastage is inevitable in any conversion
process of inputs in to output. To reduce waste, we have therefore to maximize the use of
the resources. Resource management and waste management are supportive to each other.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT31
3.
Personnel Department
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT32
PERSONNEL DEPARTMENT
CONTENTS
SR.NO. PARTICULARS PAGE NO.
1 INTRODUCTION 34
2 ORGANISATIONAL STRUCTURE 35
3 NO. OF. EMPLOYEES 35
4 RECRUITMENT & SELECTION 36
5 INDUCTION AND PLACEMENT 37
6 TRAINING AND DEVELOPMENT 39
7 PROMOTION & TRANSFER POLICY 41
8 PERFORMANCE APPRAISAL 42
9 WAGE & SALARY ADMINISTRATION 43
10 GRIEVANCE HANDLING 47
11 COLLECTIVE BARGAINING 49
12 TRADE UNION 50
13 PERSONNEL RECORDS 52
14 TIME KEEPING SYSTEM 53
15 EMPLOYEE BENEFIT 55
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT33
INTRODUCTION
Human resource department is concerned with human related activity in a firm. So
here the importance of human is must. Human resource means human capital. It is
classified into three categories, namely intellectual capital, social capital and emotional
capital. Human resource management is a process of bringing people and organization
together. So that the goals of both are achieved.
Excel is a large scale unit. Therefore 771 workers are working in the company. It
has a separate personnel department activities. So in the excel industries Ltd, personnel
debt is very essential and plays an important role in a company.
A part of this today in this last growing, world of industrialization and huge
workforce has become very common. But this requires then efficient and effective
management. So for this purpose and in order to solve their problems. It has become
necessary for almost all units to set up a separate personnel department.
So it is most important department for each and every business firm because it
refers manpower, the most casual can not be performed in absence of it. So it is the
department of human resources.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT34
ORGANISATION OF PERSONNEL DEPARTMENT
Organization is a group of people working together to achieve a specific goal and
working co-operatively that mutually benefits the employees and organization. People
who work in the organization require a defined system or structure through which they
work very efficiently to achieve their desired goals. It is a way describing employees
authority chart.
Organization means the arrangement of different designation. It depicts the
direction of law of responsibilities, authority in a firm. In order to understand
organization of a firm, organizational chart prove to be very helpful.
Chief Manager (Personnel department)
Senior Manager
Senior Executive
Training Industrial relation
Executive Executive
(Welfare) (Salary & Wages)
Officers
From the chart we can say that Excel Crop Care Ltd. Has line & staff
management. The general manager has submit or the information to the top authority. All
senior manager, executive officer and staff are comes under the general manager and they
are reported to them. All the workers of personnel department has been assigned to a
particular person with respect to his authority position in the firm education, qualification,
and level of experience.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT35
FUNCTIONS OF PERSONNEL DEPARTMENT
The role of HR Manager is to plan, develop and administrate the polices which are
designed to make more use of HR in an organization. That is the major function of HR
are
Recruitment
Selection
Induction
(1) Recruitment: - The main purpose of a personnel department must be to recruit staff
of the right caliber and to keep them in employment subsequently. A high labor turnover
is bad in many ways and is expensive. All different source of staff should be known and
used according to the kind of staff required. Generally there are two source of recruitment
(1) Internal source : -
Promotion
Demotion
Transfer
(2) External : -
Advertising
Education Institute
Employment agencies
Waiting list
Field tripe
Excel Crop Care Ltd. are using source of recruitment as under : -
(2) Transfer : Transfer means to change the position horizontal level of employee
company is given transfer on the recommendation of employee and their
staff and company is recruiting.
(3) Advertisement :- As and when company want to recruit person they give
advertisement contain total information which is require.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT36
(4) Bapa Beta scheme : - Excel Crop Care Ltd. Carry on “Bapa Beta scheme” under this
scheme , if there is any vacancy then it is responsible then first
performance is given to the children of the employee.
(5) Selection :- Selection is a very important function of personnel department it is a
process of offering job to the one or more proper candidate from all these
who applied for services Excel Crop Care Ltd. Has adopted scientific
method for selection of managerial personnel and simple method for
internal selection process.
(6) Internal selection method :- Internal selection method of Excel Crop Care Ltd. Is
very simple because in internal method they only select the person by
recommendation of this supervision
(7) External Selection method : - In selection of person in Excel Crop Care Ltd. The
first need of person if he is an honest person and knowledgeable then the
inter different between person to person is glow the selection of Excel
Crop Care Ltd. is prescribed as under
Collection test
Written test
Personal interview
Medical checkup
Sending an offer
Appointment
(8) Induction: - In induction selected person is informed about company’s Plan, Policy,
Rules and regulation. They also give information about history and objective of company
to the selected person. It helps to candidate to know what activity is done in each
department of the unit.
In Excel Crop Care Ltd. the employees are indicated after they have appointed on
the permanent basis they are made familiar with organization’s safety, Hazards and safety
equipment Excel Crop Care Ltd. Is meant everybody fare its homely environment
everybody want together like family so here is not single problem.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT37
(9) selection :- Excel Crop Care Ltd. also takes help of employment exchange office in
the selection process. Excel Crop Care Ltd. also invites people from the outside for
arranging the interview of application. After the candidates are selected for particular
work they have been placed on the job training if it required as “ a lateral shift causing
movement of individuals from one position to another usually without involving marked
change in duties responsibilities, skills needed or compensation.“
Transfer generally does not involve a promotion, demotion or a change in job
status other than movement from one job or place to another.
Transfer are generally affected to build up a morel satisfaction weak team and to
achieve the original goals.
In Excel Crop Care Ltd. mostly transfer that take place are inter department.
These transfers take place with the mutual consultation among the departmental heads or
plant managers, when transfer to take place are of long duration, written orders, signed by
the personnel manager are issued to the employee to be transferred.
At times, the employees are also transferred form one branch of Excel Crop Care
Ltd. to another.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT38
TRAINING AND DEVELOPMENT
“Training is an act of increasing knowledge & skills of employee for doing a
particular job.” Training is the process of learning, a sequence of programmed behavior.
It is application of knowledge. It is an attempt to improve current or future performance
of a person by increasing his or her ability and increasing his or her skill and knowledge.
A well trained worker can be an assets of the unit. So expenses for training should
not be considered as a wastage of money but it should be considered as an investment of
business. Training is the corner stone of sound management for it. It makes employees
more effective and productive needs for training programmes.
In Excel training programmes and work according to programmes. For training
Excel adopt the method participating training techniques. Excel also arranged lecture
from outside. It has separated training and development, which is known as E ETTE.
This department not only work for giving training to its employee for effectiveness in his
job, but also producing a better citizen. It all department has performance appraisal
system by which they find employees who need training every department had more list
of the employee for training and which type of training we need department needs send to
EITME department.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT39
JOB DESCRIPTION
Job description is described on the base of data collected through Job analysis. Job
description is a functional description of the contain what the job entails, it is a
description it is a description of 1.the duties and activities to be perform in a job, the
relationship of the job, the equipment, tools, machinery involved, the nature of
supervisors. Thus job descriptions differentiate one job from another in this regard you
can say that job description is a written statement to what a job holder need to do? How it
is done? And why it is done?
Job description is a list of specified job duty, responsibility, reporting,
relationship, working condition and job description is one product of job analysis.
In excel crop care ltd all the managing director and other directors have their
specified authorities and responsibilities and workers are also assigned their work very
clearly. In this company there is good and well defined job description which takes place
in job level management. But in level it will net work because they believe that the use of
its makes that scope for job.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT40
PROMOTION AND TRANSFER POLICY:
Promotion is a movement to a position in which responsibility and increases.
Promotion is very important motivation factor. If it is given to a suitable person than it
will give a benefit to both the party. Promotion improves the efficiency of employees. It
is source of recirculation.
According to Scott and clothier:
“A promotion is the transfer of an employee to a job which pays more money on
one that carries some preferred status.”
Promotion is term which covers and calls for greater responsibilities and usually
involves higher pay and better terms and condition of service and therefore a higher status
or rank. In another words it is an up-wards advancement to another job which command
better wages, better status.
Mainly promotions are given on the basis of:
A) seniority
B) performance
In Excel Crop Care ltd., promotion is given on the basis f seniority. They also take
into of consideration the performance appraisal system. But the organization gives that
more experience of the work prepares skillful man in his work. So seniority is very
important for promotion.
In excel there is the policy to give promotion on the basic of seniority , as the
organization believes that efficiency of the employee increases along with time and
experience. At the same time the quality of work and result of performance approved is
also taken into consideration.
Transfer :- A transfer is a horizontal or lateral movement of an employer from one job,
selection department shift, plant or position to another usually without involving any
charge in duties, responsibilities. , skill, needs or compensation.
In Excel crop care Ltd., in Kutch site jobs are not transferable. Only internal
transfers are there. That means one department to another department within the
organization. Transfer is applicable from one branch to another branch.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT41
PERFORMANCE APPRAISAL SYSTEM
In 1983, New York city civil services in America introduced a performance
appraisal programme. The purpose of performance appraisal is to determine what aspects
of the performance need to be evaluated, A different action has to be mad between
performance and the job potential the promotion. It is one of the oldest & most universal
policies of management.
Performance appraisal is a purpose of estimation or judges the value excellence,
qualities or status of some object person or thing.
Once the employee has been selected, trained and motivated he is then appraisal
for his performance. Performance appraisal is the step where the most finds out how
effective it has been at hiring and placing employees. If any problems are identified are
taken to communicate with the employee and to the employee.
It is the process of evaluating and employees performance of a job in team of its
requirements. Performance appraisal is also known as other name such as merit rating and
behavioral assessment services rating and fitness report.
There are many method of performance appraisal, but in Excel Crop Care Ltd. the
person who is working in the organization is appraised by the rating scale method of
performance appraisal. Under this method, there are types of printed forms for managerial
level, staff level & workers level for appraisal the performance the terms are included in
this form to appraise the employees performance is appraise by this method. Employees
performance is appraised by his superior. with the help of this method, they can find out
the employees whose performance is good and gets high score is given increment in
wages, promotion and also recognition then he has given training and the employees
whose performance is bad then he has given notice to be careful regarding his work.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT42
WAGE AND SALARY ADMINISTRATION
Wage and salary are the basic package of the compensation. Normally salary
refuse to the payment made to white collar employee i.e. Managers, officers etc. where as
wages are paid to blue collar employee i.e. foremen, workers etc. Sufficient wages and
salary also become the factor to motivate employees toward the goal of an organization.
Because high salary motivate workers to do their work more effectively and efficiently.
So in this way both workers as well as organization can achieve their goal.
Generally the common system of paying to workers is the based on time i.e. rate per
hour, per day, per month or per year, wages can be calculated in two ways.
(1) Nominal wages
(2) Real wages
Nominal wages are those which are paid in terms of money to the employees while
real wages are those which wages are paid in terms of purchasing power with regard of
some basic years.
Wages and salary administration is concerned with the financial aspect of needs
motivation and rewards.
In Excel Crop Care Ltd. the employee get their wages and salaries by every month.
The management and staff members gets the salary not in the term of cash but in terms of
ATM card or cheque. While workers gets their wages in term of cash every day. In case if
employee wants his salary in advance, he has to apply for it on the 22nd of the preceding
month. If the employee takes a loan then the amount of installment is directly deducted
form his or her salary. In this company the wages and salary structure divided into theses
grades.
(1) executive grad
(2) supervisor or staff grade
(3) worker grade
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT43
Along with the basic wages and salary, some allowance are given to the employees by
Excel Crop Care Ltd. which are as follow.
ALLOWANCEWORKERS
GRADESTAFF GRADE
MANAGEMENT GRADE
House, Rent, Allowance
70 % of the salary (Basic + DA)
15 % of the salary (Basic + DA)
17 % of the salary (Basic +DA)
Dearness Allowance
Rs. 1116.35per month
Rs.3395per month
Rs.5136.50per month
Educational Allowance
Rs. 425per month
Rs.850per month
Rs. 400-1000per month
Washing Allowance
Rs. 366.70 per month
Rs. 249 per month -
Attendance Allowance
Rs. 396 per monthRs. 275.50 per
month-
Leave & Travel Allowance
Rs. 3000per year
Rs. 3200 per yearRs. 5400-15000 per
yearNight Shift Rs. 5 per night Rs. 7. per night
WORKING OF E.S.I. SCHEME
The full form of E.S.I. Scheme is “Employees state insurance Corporation
scheme.”
This scheme is designed by the Government for the benefit of the employee under
work on compensation act 1948. In this scheme the employee and the company are the
major contributors. The rest of the amount is contributed by the Government. The total
contributed towards this scheme is managed by the Government.
This scheme is also applicable to the employees of Excel Crop Care Ltd. but only
these employees whose salary is lower than RS.6500.
The facilities provided under this schemes : -
(1) Medical facilities for the employees and ten family members. There are formal
hospital of E.S.I corporation in Kutch.
(2) In case of employee is injury and sickness, 75 % of this salary given to him.
(3) In case of the death of the employee his family member are given
compensation and pension also.
(4) Maternity leave is given to the female employees of the company for 3 months
with salary.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT44
(5) Many other facilities are also provided as per the E.S.I.C scheme.
1.75 % amount is contributed from employee’s salary, 4.75 % amount is
contributed by the company.
So, total of 6.50 % amount is contributed by the employee and the company are
sent to the ESI head office which is situated in Ahmedabad. There are 985 employees and
all are covered under this scheme.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT45
PROVIDENT FUND SCHEME
Provident fund (P.F) scheme is applicable only to those companies which have
more than 20 employees as per the provident fund act of 1952.
As per this scheme 12 % id deducted from the employee’s salary and 12 % is
contributed by the company. So the total of 24 % is contributed to the employees
provident fund.
From this employee’s provident fund : -
(1) 8.33 % is given to the employee as pension (only if he has worked with the
company for min. 10 years.)
(2) 1.67% us given to him on his retirement.
The amount of provident fund can be refunded by the employee in the
following manner: -
(1) 80 % of provident fund can be withdrawn for housing.
(2) 25 % of provident fund can be withdrawn for other purposes like
sickness, disease etc..
As per the provident fund act of 1952 all the companies to which this act is
applicable have to compulsorily maintain and manage the employee’s provident fund.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT46
GRIEVANCE HANDING PROCESS
Jucius says “ A Grievance is any discontent or dissatisfaction, whether expressed
or not, whether valid or not, arising out of anything connected with the company which
an employee thinks, believes or even feels, to be unfair, unjust or inequitable.
Flippo says “A grievance is a type of discontentment which most always be
expressed. A grievance is usually more formal in character than a complaint. It can be
valid or ridiculous and must grow out of something connected with company operations
or policy. It must involve an interpretation of application of the provisions of the laborer
contract.
“ILO defines a Grievance as “A complaint of one or more workers in respect of
wages, allowance, conditions of work and interpretation of service stipulations converting
such areas as average leave transfer, promotion, seniority, job assignment and termination
of services.
The Grievance handling procedure is a device by which Grievance are settled
generally to the satisfaction of the trade union or in the labor relations and under take
suitable corrective measures.
The Grievance system at Excel Crop Care Ltd. is peculiar like all other companies
of similar size, there is a prescribed system for settling Grievance. But a “Family
Approach” steps in whenever one doesn’t feel satisfied with the normal procedure. Its
every employee has a direct access to the top man of the company – the M.D. Invaluably
in all cases, the M.D looks in to his Grievance and things are settled to the satisfaction of
both parties. Anyone can reach the head office of the company without the barrier of any
bureaucratic channels. But the M.D cannot reach directly down the line, without going
through reaper channels so ensuring retention of authority and respect of the managers
and yet not permitting any of the ills of bureaucracy to in the way of a satisfaction and
speedy solution to the Grievance. The personnel manager often acts as a spokesman of
the union leaders to the management.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT47
This system is supported by free communication, which persists and is encourage
of at all levels. This acts as a binding tie for under standing various groups their feelings
and as piration.
Also the management acts as a friend in need and tries to help in the best possible
way by providing the employees counseling in legal medical and even family matters.
Here in Excel Crop Care Ltd., after every three years a meeting is arranged
between the union/employees and the management is order to listen to their complaints,
problems and demands. A try is made to solve their these problems and satisfy their
demands to the best possible extent.
In Excel Crop Care Ltd. two types of Grievance come up : -
(1) Mass Grievance
(2) Individual Grievance
(3) Leave
(4) Shift Problem
(5) Canteen problem
(6) Discipline etc..
The system followed by Excel Crop Care Ltd. to solve these Grievances is : -
(1) Firstly the colleagues and other subordinate try to solve to it.
(2) If it is not solved then the immediate supervisor, looks into it and tries to
solved it
(3) If not solved department head tries to solve it
(4) If not shoved the welfare department tries to solve it
(5) Even after this it is not solved the top authorities tries to solve it
(6) In case of no Grievance joint management council – an association of the
representative of management and workers tries to solve it
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT48
COLLECTIVE BARGAINING & AGREEMENT
“Collective Bargaining” is a negotiation between the employer i.e. the
management and the workers or the union to reach an agreement on their demands and
problems.
Here in two parties the worker’s union and the management get together in a
bargaining process. They discuss the demands and problems of the either party negotiate
and bargain on them and thus try to solve them with each other’s mutual concern.
In Excel Crop Care Ltd. the management of the company and the workers union
get together and try to solve their problem and disputes by mutual concern and
understanding. In every three years, the company arranges a meeting of the management
and the union. The management and the union negotiate on these problem and demands.
During the whole process, the most try to solve their problems and fulfill their demands to
the best possible extent and as far as possible.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT49
TRADE UNION
According sec- 2(B) of the trade unions act of 1926 “A trade union is any
combination of persons whether temporary or permanent primarily for the purpose of
regulating the relation between workers and employees or between workers and workers
and for imposing restrictive condition on the conduct of any trade or business and
includes the federation of two or more trade unions.”
A trade union is device which enables a group, a class in industry or trade to
bargain with any other class or group on equal feting such a union is : -
(1) Economically oriented.
(2) An instrument of defense against exploitation.
(3) An outcome of industrialization and implies class distinction.
(4) Workers join trade union in order to achieve their objective which can
not be achieved individually.
The basic and main objective of the trade union is to work to protect and promote
the interest of the workers and conditions of their employment and thus promote their
living standards.
In Excel Crop Care Ltd. there are two Trade Union: -
(1) Worker’s Union
(2) Staff union
The Trade unions in this company are independent i.e. they are not connected to Lal
wawta or any other national Trade Union.
Both of the above mentioned Trade Union are recognized by the Government. And
registered by the Trade Union act of 1926.
The relations of the unions with the management are very good here in.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT50
1) Worker:
There are 10 minutes is allowed for workers for late coming and after 10 minutes,
they provided 5 minutes more to enter into premises and after 5 minutes if they don’t
come then its half day’s wage will be cut.
2) Staff:-
The staff supervisors are allowed 29 minutes for late coming and after this time
they also give one minute more for coming but after 30 minutes this short leave will be
use. Staff and supervisor are using shot leave in only two time in month
3) Management
Management staff are not allowed to come late. Their time to reach at office is 8 :
29 but the actual time is 8 : 30. So that they must have to reach at one minute earlier then
their real time. And after 8: 30 their half day’s salary will be cut off .
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT51
Personnel Records
“Personnel records mean the preservation of information in files and documents”
“Personnel Records” are field document which contain full information about the
employee i.e. regarding his qualification, nature, behavior etc.
Personnel Records are to be necessarily maintained by the company as this
information are very necessary for various purpose like performance appraisal, salary
fixation, promotions, fixation and privileges transfer etc. for the employee. The
organization also need this information for future references.
In Excel Crop Care Ltd. records of each and every employee are maintained. For
each employee a personnel record card (PRC) is maintained. Here the records of those
individuals who have been interviewed but not appointed in case if they are needed in
future.
These recodes are help the company to take important decision like promotion,
salary, transfer etc. regarding the employee.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT52
TIME KEEPING SYTEM
In alder to be a successful, one has to be ahead of time or at least with time. For
smooth functioning of any organizational activity it is necessary to have a sound and
systematic time keeping system. It help to an Employee.
1) To regularity.
2) To particularity and punctuality.
3) To calculate and determinate of wages and salary.
In Excel, regularity and punctuality is demanded right from top level management
to workers. Here the time keeping system is more conscious for each and every
employees then any other industries.
Here punch cared system is followed. A punch card is given to every workers and
staff members working in Excel. Each one has to punch this card in the punching
machine. Both when they enter the premises and when they leave premises.
In Excel crop Carle ltd there are mainly four shift.
Shift Time
A 7 to 3
B 3 to 11
C 11 to 7
D 8:30 to 5
Here D shift called general shift.
Late corning rules:-
1) Worker:
There are 10 minutes is allowed for workers for late coming and after 10 minutes,
they provided 5 minutes more to enter into premises and after 5 minutes if they don’t
come then its half day’s wage will be cut.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT53
2) Staff:-
The staff supervisors are allowed 29 minutes for late coming and after this time
they also give one minute more for coming but after 30 minutes this short leave will be
use. Staff and supervisor are using shot leave in only two time in month
3) Management
management staff are not allowed to come late. Their time to reach at office is 8 :
29 but the actual time is 8 : 30. So that they must have to reach at one minute earlier then
their real time. and after 8: 30 their half day’s salary will be cut off .
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT54
EMPLOYEE SERVICES
Employee services or employee welfare activities are volentory on the part of the
industry. Such activities are carried out for the social and economic upliftment of
Employee and so to improve the standard of living these welfare activities and necessary.
There service can be either in monetary or non monetary form. Excel crop care ltd
provided the following service to its Employee to uplift their living conditions.
1) CANTEEN FACILITY:-
Excel has it’s own canteen for it’s Employee is provided quality food for only
Rs.1 They also provided tea and breakfast for only 0.35 paisa also everyday 200 ml milk
is provided to each Employee separate food is prepared for those having problems like
blood pressure etc. The company also offers soda water to the Employee in the month of
April, may and June.
2) UNIFORM FACILITY:-
In order to create Environment where the workers breathe the air of unity and also
to make them feel that they all are a part of one family the company provides them
uniform which is common for all its Employee i.e. from management to workers.
The company provides three pairs of uniform to the workers and two pairs of
uniform to the supervisor and the rest of the employee every year. Also two pairs of
shocks are provided to the employees every year.
3) MEDICAL FACILITIES:-
Company provides facilities of medical check up a physician checks every
employee and on every friday, an E.N.T. surgeon on dental surgeon or a skin specialist
checks the employee. Apart from this a chest X-Ray of every employee is taken every
three years . Also there is a pathology lab, cardiogram machine and a doctor’s room at the
industrial site itself .
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT55
Those employee whose salary is less then RS.6500 are covered under E.S.I.C.
( Employee state insurance corporation ltd) scheme and the other are covered under MRS
scheme
4) BONUS :-
Excel is Providing bonus to its workers and employee. A company give 8.33%
bonus to their workers and employee. In the year 2004 -2005 the amount of bonus is RS
20,065
5) BIRTH DAY GIFT:-
Each employee is given a gift on his /her birthday that also from the general manager.
6) Library:-
Excel has a well Equipped library at the industry site itself various different types
of magazines, newspapers books etc are available in Gujarati, English and Hindi.
Books on various different topic and subjects like technical, management
language literature etc are available here in library
This help to make the Employee more knowledge. It help them to get recreation from
their routine jobs. It also help them to improve their personality .
7) Sports facility:-
Excel organizes sports events and competition for both, its employee and their
children, once in a year. and on winning they are also given prizes. The company also
provides almost all type of instruments for sports and games to its employees.
8)Encouragement To Employee’s Children
Employee’s children and given prizes on topping their Exams in order to
encourage them to work more herded
9) Cultural Activities :-The company arranges cultural programmes for its employee.
Here they celebrate all national festivals like 15th August, 26th January etc. and at the time
of other festivals like Holi, Diwali, Navratri etc., with it’s employees.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT56
10) Gifts and sweets:
The company on festivals likes diwali, Dashara etc. gives sweets and gifts to all
it’s employees
11) Co-Operative Society:
Excel Crop Care Ltd. has built a co-operative society for it’s employee i.e. both
workers and staff members like water connection etc are also provided. Also loans for
food grains oil tines etc and given the employee by the company.
12) Tour & picnic facility :-
If certain number of employees of one department wish to go for a picnic then the
company gives them Rs. 25 per head.
13) Suggestion Scheme :-
Every year suggestion are de invited from the employee by the management of
company. From those suggestion their best one are selected and are given rewards for Rs.
501, Rs. 251 and Rs. 101 respectively some of the suggestion were also nominated for
national awards given by the president of India in the past.
14) Ownership Rights:- Every employee of company is the owner of company. As each
one is given certain amount of shares of the company as per their designation.
15) Gifts on Completion Of Certain Year Of Services:-
The company gives gifts to its employees on completion of certain years of their
service.
-After 20 year of service they give wrist watch.
-After 25 year of service they give Rs.12.000
-After 30 year of service they give Rs. 15.000
Very few industries provided, so many facilities to their employee and treat each
one of them so personality and Excel is one such company it is India’s pride.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT57
India is an agro based country. About 70% of its populations depends on
agriculture for its living. But agriculture in India faces various problems like rain, quality
seeds, quality fertilizers etc. But the main problem is of good quality pesticide.
Excel is a leading pesticide manufacturing company. It is producing many
important and effective pesticide apart from it. Its also explains the farmers about its
proper and effective usage. It also holds seminars for it.
Excel holds about 65% market shares in India where pesticide are concerned.
Excel is also large chemical exporter. It is at present exporting it product to 46
countries of the world and is so earning a huge amount of foreign exchange for the
country. Helping the government to improve its economy.
At Excel kutch at present nearly 900 employees are working which possibly
makes it the industry employing maximum persons.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT58
4.
MarketingDepartment
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT59
MARKETING DEPARTMENT
SR NO. PARTICULARSPAGE
NO.
1 INTRODUCTION TO MARKETING 61
2 ORGANISATIONAL STRUCTURE 62
3 MARKETING SEGEMENTATION 64
4 PRICING POLICY & STRATEGY 66
5 DISTRIBUTION CHANNEL 67
6 PROMOTION MIX 69
7 ADVERTISING 71
8. MARKET RESEARCH 73
9. CONCLUSION 74
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT60
INTRODUCTION
Marketing is the activity which starts before production commences and end with
consumer’s satisfaction. It is that phase of business activity through which human being
can satisfy their wants by Exchanging goods and services. It is basic criteria for taking
into consideration because it discover and translate consumer need and wants into product
and services specification creating demand for this product and services and then
expanding its demand.
Marketing management is an important functional area of business management
which is responsible for the flow of goods and services from the producers to consumer.
It is one accountable for planning , organizing , directing, coordinating, motivating and
controlling the marketing activities, It is the analysis , planning, implementation and
control of programmes design to bring out desired Exchanges with lager audiences for the
propose of personnel or mutual gain. It realize heavily on the adopion and co-
coordination of product, price, promotion and place for achieving effective response,
Marketing is defined as “the key to achieving organizational goals consists in
determining the needs and wants of the target market and delivering the desired
satisfactions more effective, and efficiency than Competitors
Excel as a large scale organisation has also introduced the marketing in the firm to
compete the competitors to maximize sales as well as profit also. Excel crop care ltd is a
manufactures, which manufacture chemical and pesticides. So that it can work smoothly
marketing department plays a vital role success of the company.
American marketing association said that, “marketing is the performance of
business activities that direct the flow of goods and services from the producer to
consumer.”
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT61
ORGANIZATION OF MARKETING DEPARTMEANT
Organizing of marketing department decides the authority and responsibility of
the employee of the department.
In order to carry out the marketing activities effectively and efficiently, there
exists a need for an effectively structured organization of the marketing department where
in the responsibilities of each person is clearly mentioned.
The organization structure of Exec’s marketing department fulfills the above
mentioned or requirements, the organizations chart of marketing department is as above.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT62
Marketing Department Structure
Vice President
General Manager General ManagerAgro Chemicals Industrial Chemicals
Sales Executives Officer
East South West North Central Zone Zone Zone Zone Zone
Zonal Office
Staff In-charge
Staff In-Change
Area Representative
Field Assistant
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT63
MARKET SEGMENTATION
Segmentation means dividing the total market into small units with more or less
similar features. People are having different needs values and therefore markers cam not
address themselves to the total population by designing marketing mix for a given
product of service. So every marketing manager knows that there is no such thing like a
single market for a given product or service. All markets are made up of sub-segments.
According to Philip Kotler market segmentation is the subdividing of marketing
into homogeneous subsets of customers, where any subset may conceivably selected on
market target to be reached with a distinct marketing mix.
B. Product oriented view As far as Excel is concerned market is segmented by
two ways.
Product Oriented View
Product Base Area Base
Organization Segmentation
Inductions Agriculture
Chemicals Production
ManufacturingHead Office Branch Office
Jogeshwari Zonal Office Madhurai
Ambali Delhi Banglore
Bhavnagar Hydrabad Patna
Roha Kolkota
Lote Parshuram
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT64
Area Base only
Five zones
East West North South Maharashtra Zone Zone Zone Zone Zone
Head office Head office H.O H.O H.O(Kolkata ) (Ahemadabad ) ( Delhi ) (Hydemad) (Muumbai)
Office Br anch :-
1. Orissa Gujarat Uttarpradesh Goa Maha
2. Bihar Madhya Pradesh Haritana Kolia Rashtra
3. Banglore Rajasthan Punjab Karnataka
For managing the market activities in different states area sales manager are
adopted. Apart from this other factions are also taken into consideration while segmenting
the market for a new product and also this segmentation make the function of marketing
smooth. It is very hopeful in advertising the product as coding to state in marketing
research and arranging channel of distribution.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT65
PRICING POLICIES
The price can be defined as the Exchange value of a product or services. Always
expressed in monetary terms. It is the only element in the marketing mix that produces
revenue, the other elements produce costs. Also it is a unique element of marketing mix
with maximum flexibility as compared to its other elements. It is a ratio of two values. In
simple words market races also the values at which goods and services are exchanged
pricing is an impotent factor in determining both the revenue end profits of the enterprise.
Hence determining the price is extremely important task.
Excel always believed that they paid it the customers to maintain a price line
corresponding to the cost and not take advantages of shortage or market fluctuation. It has
paid with rich dividends in the long run. Excel takes into consideration the following
factors while fixing the place.
1) Cost of the production :-
It includes all types of production cost fixed as well available.
2) Taxes :-
Freight
Excise
Sales tax
3) Objective of business:-
The objectives of Excel Is to provide satisfaction to the Consume and not to take
advantages of fluctuation.
4) Competitors Price:-
Excel’s competitors are buyers’ Parul Chemicals
5) Distribution policy:-
Excel distribution chummed is very wide so cost of distribution play a very
important role in price of other product
6) Government policy:-
Excel fixes the police as per the rules of governments. However the company do
not follow demand as a main determinant of its product. Even if it has high demand, it
charges law policy with a view to provide maximum satisfaction to the consumers.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT66
CHANNEL OF DISTRIBUTION
Channel of distribution may be define as a pathway composed of intermediaries,
also called middle men, who perform such function as well as needed to ensues smooth
and sequential blow of goods & services from the manufacturing ends to consuming ends
in order to achieve marketing objective of a company.
Distribution channel means the set of marketing activities to the movement
overflow of goods & services from the primary product to the ultimate consumer.
Marketing channels or distribution can be defined as sets of inter department organization
involved in the process of marketing. Product or service available for use or consumption.
Distribution channel is a key external resources. It takes year to be built and not
easily changed so it is ranked with the key internal resources. Such as manufacturing
research etc. As far as important is concerned.
Excel Crop Care Ltd. produced goods can be distributed or sold through various
channels as under.
1) Sales through advertising
2) Sales through traveling
3) Sales through retail shop
Excel Crop Care Ltd. produced agricultural chemicals and industrial chemicals so
they adopt different channels for both the products.
AGRICULTURAL PRODUCT
Here the company’s products are first sent to its distributors. There are about 22
distributors of Excel for its agricultural product all over the Gujarat. The distributors are
the major stockiest of the products. These distributors sale specific amounts of product to
the dealers or retailers. The dealers serve as an important link between the company and
the consumer. They are the actual risk bearers.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT67
CHANNEL OF DISTRIBUTION
Excel Crop Care Ltd .
State Distributors
District Distributors
Wholesalers
Retailers
Consumers
Industrial Product
The group of consumer for the industrial product is small and also most of these
products manufactured here at the Kutch site are exported. No need is felt for distributors
or retailers. Here zero level channel of distribution is used i.e. the products directly reach
at their ultimate consumer.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT68
SALES PROMOTION
“Sales promotion” consist of a diverse correction of incentive tools mostly shout
tram designed to simulate quicker or greater purchase of particular products or services
by consumers or the trade.
Sales promotion is an important instrument in marketing to lubricate the
marketing effort. Today sales promotion is necessity. Sales promotion is a bridge or a
connecting link covering the gap between advertising and personal sales man ship, the
two wings of promotions.
Sales promotion includes tools for :-
1) consumer promotion
2) Tread promotion
3) Business and sales force promotion
Purpose of Sales Promotion :-
Sales promotion offers an “incentive” to buy. These incentives type promotion are
used.
1) To attract new tiers. 2) To reward loyal customers 3) To increase repurchase rate of occasional users.
Sales promotions are very effective.
1) When a new brands is introduction 2) When a major improvement. In the existing product has to be communicated to
the customers.3) When we want to amplify the results of the advertising4) When we want to increase the number of retail stores to sell our products.
The purpose of promotion is to attract new customers in order to reward loyal
customers and to increase the repurchase rates of occasional users. Promotion activity has
specific purposes which are as under
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT69
It is an impotent activity being performed by the marketing department of the
Excel Crop Care Ltd. to increase the sales volume it use some good criteria for sales
promotion.
1) Credit facility
The company allow 30 days’ credit facilities to all its customers. If necessary this
limit is Extended
2) Discounts & Allowance
The company provides trade discount and sales discount to the dealers so that they
sell more.
3) Commission and gift
The company gives commission to those dealers who sell maximum apart from
this other incentives like rewards, gifts Special discount etc. are given by the company to
its. Dealers on selling maximum.
4) After sales service
The company maintains constant touch with its customers even after sales in case
if the goods are damaged the cost of replacement is from borne by the company. Instant
steps are taken by the company against the complaints received from the customers. The
company explains the complete usage of products along with its usage procedure,
benefits, disadvantages etc. To its users i.e. the farmer through project slides,
demonstration, pamphlets etc. Incase if they later on come up with doubts and queries.
The company tries to help them out as soon as possible.
5) Publicity
In order to attract new customers, the company held meetings, conferences etc.
where in the perspective usage of its products are called to attend them executions are
also held for the same.
So from the above, one can say that Excel Crop Care Ltd. has well diversified and
well developed sales promotional framework.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT70
ADVERTISING
Advertising is a primarily a private enterprise marketing tool. Advertising is a cost
effective way to disseminate the message in developing and advertising programme.
Marketing manger must always start by identifying the target market and buyers motive.
Advertisement is any paid form of non personal presentation and promotion of
ideas goods and services by an identified sponsor.
Advertisement is one of the four major tools companies use to direct successive
communication to target buyers and public. Advertising may be defined as any paid form
of non personnel presentation and promotion of ideas, goods or services by an identified
sponsor organization obtain their advertising through different medias.
In Excel all manufacturing branches advertising work is bundled by the head
office at Mumbai Excel adopted the medias for advertisement on following two ways
Advertising
Audio (Radio) Printed Posits
Video (Television ) Weakly Advertisements
in magazines and
Newspapers
Demonstration Calendars
Company gives the advertisement according to several states. It means in regional
language. In the media of video vision they arrange a show in village.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT71
As far as Excel industries ltd is concerned advertisement media used by the
company are as under:
1) A series of the literature for the actual consumer i.e the former communicating the
befits and the instruction for the use of the product
2) Set of literature for student in education
3) Well printing and posters.
4) Calendars
5) News papers and magazines advertisement
6) Radio advertisement
7) Demonstration in village
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT72
MARKET RESEARCH
Marketing research is a management tool that involves the top management to
learn more about the most appropriate “marketing must” . It is the intelligence service of
the industry capable of furnishing ideal solution to different marketing problems that arise
in day to day business. Marketing research is the systematic design collection analysis
and reporting of data the finding relevant to a specific marketing situation facing the
company.
Marketing research mostly involves brand performance, product usage,
advertisement awareness, sales promotion, physical distribution, dealer’s behavior
competition and so on. As the work of advertisement the head office at Mumbai does the
work of marketing research.
The scope of marketing research stretches from the identification of consumer
wants and needs of the evaluation of consumer satisfaction. It includes research in respect
of consumers product, sales, distribution channel, advertising, pricing and physical
distribution. It also covers sales forecasting for company’s product which has been dealt
with planning of marketing operations.
As far as Excel Crop Care Ltd. is concerned for marketing research following two
steps they have to take into consideration.
1) Present situation
2) Planning and forecast
Excel has established two researches
In this institution they make the efforts for water management, try to reduce the
pollution and for other research activity from the forecast of future atmosphere they can
forecast about the future demand in the market.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT73
CONCLUSION
I would like to mention here following plus points in the marketing department.
1. Excel has very wide domestic as well as international market.
2. Excel’s segmentation is based on four zones east, west, north, south.
3. Excel industry ltd in Kutch site, produce five products.
4. Product planning are made with the help of stock of raw material, marketing
department
5. Excel capturing the 651% market in its Agriculture product
6. Excel fixes the price with the consideration of all types of cost and desire profit.
7. Excel has one, two and three level channel for distribution.
8. For sales promotion Excel provide attractive discount and arrange Exhibition.
9. Excel does not believe in advertisement rather than it believes in quality. However
with the aim of stand in market. It advertises it product with all types of medics.
10. Excel has very strong marketing research, it takes a help of various institution
survey.
11. Excel exports its products into 40 countries.
In short market condition of Excel is very strong and it is one of the basis chemical companies of India.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT74
5.
Finance Department
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT75
FINANCE DEPARTMENT
CONTENTS
SR NO. PARTICULARS PAGE NO.
1 INTRODUCTION 77
2 ORGANISATIONAL STRUCTURE 78
3 FINANCIAL PLANNING 81
4 SOURCES OF FINANCES 81
5 CAPITALISATION 82
6 CAPITAL STRUCTURE 84
7 MANAGEMENT OF FIXED ASSETS 85
8 CAPITAL BUDGETING 86
9 MANAGEMENT OF WORKING CAPITAL 87
10 LEVERAGE 90
11 PROFIT AND DIVIDEND DISTR 91
12 RATIO ANALYSIS 93
13 CONCLUSION 94
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT76
INTRODUCTION.
Finance serves as the backbone of the firm. Finance may be defined as the art and
science of managing money, financial services is concerned with the design and delivery
of advice and financial products to individuals business and governments. Financial
management is concerned with the duties of the financial managers in the business.
Financial management as an integral part of overall management can be described
in the light of the two broad areas of Economics. It emerged as distinct field of study at
the team of the 20th century.
Finance management is that managerial activity which is concerned with the
planning and controlling of the firm’s financial resources. It concealed with the planning,
raising controlling and administrating the fund in a firm. The decision regarding finance
must be properly taken by a flam.
Financial management mean procurement & Effective utilization of fund. It us
said “Business takes money to make money” It is defined as key of successful business
operation without proper administration of finance.
Excel crop care ltd has a very sound finance department but at the head- office,
the Kutch site of Excel has only cost and accounting department. This is so because all
the major decisions and functions regarding the finance except those of accounting etc are
undertaken by the head office Mumbai. The work of accounting and other functions are
performed here at the Kutch site.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT77
ORGANIZATION OF FINANCE DEPARTMENT
The vital importance of the financial decision to a firm makes it emergent to set
up a sound efficient organization for the finance function. The responsibility of financial
management are spread through out the organization in the sense that financial
management is to an extent, an integral part of the job for the managers involved in
planning, allocation of resources and control. Financial management is highly specialized
in nature and is handled by specialists. It is therefore, financial management functions.
Science finance is a capital functional area. The ultimate responsibility for carrying out
financial management functions lies with the top management that is board of directors
however the exact nature of the organization of the financial management function differs
from firm to firm depending upon factors such as size of the firm, nature of its business,
type of financing operation, ability of financial officers and the financial philosophy and
so on.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT78
ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT
BOARD OF DIRECTORES
MANGEINGDIRECTORES
HEAD OF DEPARTMENT
TREASURER CONTROLLER
KUTCH UNIT
HEAD OF THE BRANCE
PLANNING ACCOUNTING EMPLOYEE INDUSTRIAL
& BUDGETTING (OFFICER) BENEFITE MANAGEMENT
(OFFICER) (OFFICER) (OFFICER)
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT79
ORGANIZATION STRUCTURE OF ACCOUNTING DEPARTMENT
General Manager
Finance Manager
Sr. executive officer
Staff
Peon
The activities undertaken by the finance department areas under:-
1. Estimating financial requirement of the firm.
2. Searching for new sources of finance.
3. Recoding business transactions.
4. Maintaining books of accounts
5. Designing the capital structure.
6. Management of cash
7. Management of dealing with the bank
8. Fixed assets management
9. Working capital management
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT80
FINANCIAL PLANNING.
The process of estimating the funds requirements of a firm and determining the
sources of funds is called financial planning.
FINANCIAL PLANNING MEANS
1. Estimating the amount of capital to be raised.
2. Determining the for and proportionate amount of security
3. Laying down the policies for administration of the financial plan.
Financial planning indicates a firm’s growth performance, investments and
requirements of funds during a given period of time, usually three to five year. It involves
the preparation of projected a profit and loss account balance sheet and fund flow
statement benefits of financial planning:
Identifies advance actions to be taken in various areas.
Seeks to develop a number of options in various areas that can be
exercised under different conditions.
Facilitates a systematic exploration of interaction between investment and
financing decisions.
Clarifies the links between present and future decision.
Forecasts what is likely to happen in future and hence helps in avoiding
surprise.
Ensures that the strategic plan of the firm is financial viable.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT81
CAPITALIZATION
Capitalization is an important constituent of a financial plan according to the
board interpretation. The term capitulation is synonymous to the term “Financial
Planning”. But according to the narrow interpretation, the term capitalization refers to the
process of determining quantum of long term funds that an enterprise would require to
run its business.
Capitalization means the process of building up the capital structure and topping
the sources to mobilize the capital in the form of share or loans or researcher. A Company
may be under capitalization and over capitalization or fair capital
A company is under capitalized if its real value is more than the book value of
share.
A company is an over capitalizes if its real value is less than the book value of
share.
A company is fair capitalized if its real value is equal to the book value of share.
In any company capitalization should be well balanced where companies
resources can be utilized fully. At Excel crop care ltd the rate of return on equity capital is
too high but it is properly capitalized.
Book value of share. = Capital + Reserves & surplus
No.of share.
Real value of share. = Capital of earning
No. of shares.
Because capitalization of earning. = Net earning * 100
Expected data of return
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT82
CAPITAL STRUCTURE
The term capital structure refers to the proportion of debt and equity capital. The
financing decision of a firm relates to the choice of the proportion of there sources to
finances the investment requirement.
The importance of an appropriate capital structure is, thus there is a viewpoint that
strongly support the close relationship between leverage and value of a firm. There is an
equally strong body of opinion which believes that financing mix all the combination of
debt and equity has no impact on the share holders wealth and the decision on financial
structure is irrelevant. In other word there is nothing such as optimum capital structure.
Capital structure can affect the value of a company by affecting earnings all the
cost of capital all both. The capital structure decision can influence the value of the firm
through the earning available to the share holders. But the leverage can largely influence
the value of the firm through the cost of capital.
The capital structure of excel crop care ltd as on 31-3-05 is as below:-
Share capital Rs.(Lacs)
Reserve & surplus 550.28
Secured loan 6773.80
unsecured loan 5979.07
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT83
MANAGEMENT OF FIXED ASSETS
Fixed assets one long term assets i.e. the assets that remain with the company for
more than one year. Here in huge investment are to be made. These assets give benefits
for long term and so that can be used for carefully.
Due to these reasons Excel crop care ltd gives high importance to the management
of fixed assets also it needs to do if as it is manufacturing unit.
At the KUTCH site of Excel crop care ltd all the manufacturing plants are well
Excel has adopted the straight line method of depreciation.
Rs. (Lacs)
Fixed assets 10092.45
Depreciation 3962.02
Net assets 6130.43
Fixed Assets Turnover Ratio
This ratio shows the efficiency and profitability of the business when the ratio is
less then one the efficiency of the firm is low which shows the fixed assets are not used
optimally but if the ratio is more then one the firm is said to the efficiently
Excel’s Fixed assets loan over ratio.
= sales
fixed assets
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT84
CAPITAL BUDGETING
Capital budgeting decisions pertain to fixed all long term. assets which are in
operation of assets which are in operation return over a period of time usually exceeding
one year. Capital budgeting is employed to evaluate the capital expenditure decision that
involves the current outlay but beneficial for the company over a period of time. period
longer then one year. This benefits which company gets by the capital budgeting
decisions are in firm of increase revenue of decrease the cost there fore capital
expenditure involves disposition modification addition and replacement of fixed assets.
Capital budgeting is the process of evaluating and selecting long – term
investments that are consistent with the goal of share holders (owners) wealth
maximization.
Capital budgeting decisions are of paramount importance in financial decision
marking in the first place such decisions affect the profitability of a firm they also have a
bearing on the competitive position of the enterprise manly because of the fast that they
relate of fixed assets the fixed assets represent in a sense. The true earning assets of the
firm they enable the firm to generate finished good That am ultimately be sold for profit
include budgeting process include but inter elated four distinct but inter reelected steps
used to valuate and select long – term proposals:- proposal generation evaluation
selection and follow up.
The head office at excel industry considers all the function of each plant. In
capital budgeting future plan are also taken into consideration and target given to each
manufacturing brands in production.
At Excel crop care ltd following are the capital budgeting.
Rs. (Lacs)
Share capital 550.28
Receiver and surplus 6773.80
Fixed assets 10092.45
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT85
MANAGEMENT OF WORKING CAPITAL
The goal of working capital management is to manage the firm’s current assets
and liability in such a way that a satisfactory level of working capital is maintained. The
working capital management is concerned with the problems that arise in attempting to
manage the current assets refers to those assets which in the ordinary course of business
can be or will be converted into cash within one year.
There are two concepts of working capital gross and Net.
The gross working capital means the current assets which represent the proportion
of investment that circulates from one form to another in the ordinary conduct of
business. While net working capital is current assets and current liabilities or alternatively
the portion of current assets financial with long- term funds.
1. Inventory Management
Inventory are the goods held for eventual sales by the firm. They are one of the
major elements which help the firm in obtaining the desired level of sale. Inventory can
be classified into three groups
1. Raw material
2. Work in progress
3. Finished goods
Inventory represents the second targets assets category for manufacturing companies
next only to plant and equipment. The proportion of inventories to total assets
Excel Crop Care Ltd has a seasonal market for many of its products so the company
requires to store enough stocks of inventories for the purpose of packing and storing of
finished good. Excel has three store rooms for storming costly and sensitive raw material
and finished goods, the company has an A.C. store room, Excel follows FIFO method of
pricing, Excel has adopted the following two method of inventory management.
1) Economic order quality.
2) Selective inventory control.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT86
These techniques help excel to determine an optimum inventory level. The optimum
inventory level is that level which minimizes the total of ordering and carrying costs.
Both of the above mentioned technologies are used by the company at the same time.
These techniques not only control the inventory level but also assure uninterrupted
production process by judging proper re-order level and safety stock.
In Excel each branch does its own inventory management which calculates its safety
stock and re-order level and order for the raw material to the head office when it reaches
the re-order level decided by it.
So, on the whole it can be said that Excel has adopted a scientific inventory control
system which is effectively and efficiently applied to day to day working. Due to this, it
might never face a crisis of inventory.
2. Management of Receivables
Receivable means debit owned by the company arising from sales all any other
ordinary course of business.
The sale of goods on credit is an essential part of modern competitive business. Infect
credit sales treat as a marking toil to with sales.
Excel crop care ltd is investing considerable portion of working. Capital in trade
creditor book debt so it should be managed well can has fixed up to 30% of working
capital in book debt the firm’s investment in receivable to depend up on collection of
period.
1) The value of credit sales
2) The collection of period
Excel crop care ltd have adopted selective credit policy so it does not grant credit to
very customer but only those whose financial position is good and payment are favorable,
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT87
Generally company grant a credit of three months, so companies collection efforts are
minimum. Thus company have got very favorable condition in granting trade credits.
Excel crop care ltd has developed such an optimum credit policy through its
management, which is giving marginal balance of cost and benefits. Excel’s liquidity
position is very good so it is intestines more and more in book debts to attract the
customer.
1. Cash Level Bank Management
Cash is the most liquated assets that a business owner has. It includes money and such
instruments as cheques, money order or bank draft, which banks normally accept for
deposit on immediately credit to the deposit account. Cash is the sole assets at the
commencement and the termination of business, planning for cash requirement is
essential managerial function of any business.
In Excel crap care and 1td each branch and each plant locations prepare cash budget
twice in a month. And many additional cash budget for short time and long period are
also prepared to make cash planning more effective. In every 15 days they prepared
summary of cash inflow and out blow and find out surplus or credit and there after it is
sent to head office provides cash.
Now on the basis of cash budget prepared by different branches and location the head
office prepared overcall call cash budget of the firm. The company is maintaining cash
and bank balance very properly. Mainly financial department of Kutch unit is engaged in
cash planning.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT88
OPERATING LEVERAGE
Operating leverage is caused due to fixed operating expenses in firm. The
leverage associated with investment activities is referred to as operating leverage.
Operating leverage results from the existence of fixed operating expenses in the
firm’s income stream. The operating leverage may be defined as the firm’s ability to used
fixed operating leverage costs to magnify the effects of changes in sales on its earnings
before interest and taxes. Operating leverage accuse any time a firm has fixed costs that
must be met regardless of volume.
In Excel Crop Care Ltd Operating leverage is as under.
Operating leverage = Contribution
Operating cost
Financial Leverage
Financial leverage is caused due to fixed financial costs in firm. It is defined as the
ability of firm to use fixed financial charges to magnify the effects of changes in EBIT on
the earning per share.
Financial Leverage involve the use of funds obtained at a fixed cost in the hop of
increasing the return to the share holders. Financial leverage results from the presence of
fixed financial charges in the firm’s income stream. These fixed charges do not very with
the earnings before taxes. They are to be paid regardless of the amount of EBIT available
to pay them.
Excel crop care ltd has employed debenture and term loan in its capital structure.
If company is earning is higher than it is called unfavorable leverage.
Financial leverage = EBIT
EBIT- Interest
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT89
PROFITABILITY AND DIVIDEND DISTRIBUTION
Profit is the primary objective of business. Excel is an industry when in heavy
investment is involved therefore profit is very essential for its sound working and
maintenance, no single company can survive without profit for a long time profit receipts
the efficient performance of the firm and effective and optional utilization of its
resources.
Excel crop care ltd is marking profits since many years and has a strong and sound
financial positions with few ups and downs. The ten years highlights of its magnificent
performance is attached behind. Profit is the life blood of any business. As blood is
important for life same profit is important for survival of business.
Excel crop care ltd makes profit gradually from many years and it has strong
financial position. In excel crop care ltd. There is increase, in profit every year, which is
as under.
YEAR PROFIT (LACS)
1997-98 896.16
1998-99 2363.81
1999-00 2119.52
2000-01 441.25
2001-02 725.11
2002-03 316.37
2003-04 1038.99
2004-05 2221.62
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT90
RIGHT, BONUS, CONVERTIBLE BONDS ISSUES & FUND RAISING
1) Right issue
Authorized capital means the amount of capital that a Company can potentially
represents the authorized capital. We cam also said that it is the amount which a company
can raised from the ordinary share holders and cam be changed in the Prescribed manner.
The amount which a company offered or Call up the share holders or invertors is called
issue capital. So this issued capital is also a part of authorized capital. The subscribed
capital is the capital which is subscribed to the investors and it is the part of subscribe
capital. It is that amount which a company received from share holders. The advantages
of this capital are enjoying controlling power right to control, voting system limited
liability.
2) Bonus
Excel industries Ltd is providing bonus to its workers and employees on diwali
and other festivals. Employees, managers and workers get same bonus on the festivals.
3) Convertible Bond Issue
Similar to promissory note bonds represents creditor –ship securities. As a secured
instrument, it is promise to pay interest and repay principal at stipulated times. The
convertible bonus provides flexibility to the company to redeem there prematurely.
Generally firms issue bonds presumably at low rate of interest when market condition is
affordable to redeem such bonus. In other words, the firm refunds its debt.
4) Fund Raising Through Public Deposit
People keep their savings with the company in the form of deposit for a period of
six months to 3 years. The ratio of interest is different for public deposits of different
maturity. The company meets it’s requirement of working capital by accepting deposit
from the public. The rate of interest on these deposits is generally greater than that on the
bank deposits. Hence people are induces to keep their savings as public deposit rather
than bank deposit. The business units need not mortgage their assets to obtain public
deposits. There fore, public deposits tend to be more flexible than the bank loans. At
present most of the company’s prefer public deposits as a source of short term capital.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT91
RATIO ANALYSES
Ratio analyses is a widely used tool of financial analyses it can be used to
compare the risk return relationship of firms of different size. It is defined as the
systematic use of ratio to interpret the financial statements so that the strengths and
weaknesses of a firm as well as its historical performance and current financial condition
can be determined. The term ratio refers to the numerical or quantitative relationship
between the two items. Ratio analysis is a systematic use of ratio to interpret the
performance and status of the firm.
1. Current ratio = Current assets
Current liabilities
= 6770.53
7304.11
2. Net profit ratio = Net profit x 100
Net sales
= 2192.78
41548.23
= 5.281
3. Gross profit ratio = Gross Profit Ratio
Net Sales
= 3895.25 x 100
41548.23
= 9.38%
4. Reserves to Sales Ratio = Reserves x 100
Sales
= 6773.80 x 100
41548.23
= 16.30%
5. Debt Equity Ratio = Debt
Equity
= 9222.94
7324.08
= 1.26%
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT92
CONCLUSION
After obtaining the information of it, I find the following important facts in
financial. Management department.
All works are according performed with the help computer and expert employer
The General manager takes the essential and final financial decision.
There are two types of financial planning long term and short term
Excel has very good capitalization.
Book value of share and real value of share has very small difference so there is
no position of under and over capitalization.
The General manger monitor the site fixed assets management.
Fixed assets turn over ration is 3.51 lacs.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT93
6.
SWOT Analysis
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT94
INDEX
Sr. No. Particulars Page No.
1 Strength 96
2 Weakness 96
3 Opportunities 96
4 Threats 96
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT95
SWOT ANALYSIS
1. Strength
In this unit the main positive as strength of the company is the unity among the members.
Production process is highly modern technology that’s why the process is very fast.
2. Weakness
They does not approach in Foreign Countries.
3. Opportunities
To produce raw material in their company. If the company re-engineers its infrastructure,
it has a very good future to be with.
4. Threats
It should rather focus on any one kind of product there are also the product there are also
the threats like seasonal. In rainy season they can’t produced product in time.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT96
7.
Future Plans
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT97
FUTURE PLAN
The company is planning to develop and improve the products which would
Increase their revenue.
The company feels these changes will have great demand in India & are putting in
their best efforts to make the products successful.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT98
8.Suggestion
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT99
SUGGESTION
It appears that Excel Crop Care Ltd. has put a restriction on itself as far as
marketing opportunities are concerned, by appointing dealer/distributors who are the real
marketing outlets. They should try & penetrate more in major industrial towns.
At present the company develops products or makes improvements in
existing products as per the demand in the market. Whereas this units competitors are
much better equipped with research and development facilities which helps them produce
better products. Thus I find that research and development effort is lacking in this unit.
This industry will face drop in business sooner or later, specially because
of environment factors. All over the world usage of this type of machines are being
discourage, the reason being awareness of people & the harm being caused by it to the
environment. In this view, I feel that they should draw a diversification plan, so that they
can put their existing infrastructure to the best possible use and so that they can continue
to be in the business.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT100
9.
Conclusion
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT101
CONCLUSION
Excel Crop Care Ltd. has a very large and well established personnel department
also, the importance of personnel function is well appreciated by the employee as well as
the management.
On the whole I can conclude that –
(1) Excel has a well formed organizational structure which clearly depicts the
relation-ship between its different members.
(2) The functions of recruitment selection and induction are well managed by
Excel Crop Care Ltd. resulting into the employment of best available
personnel.
(3) The working atmosphere providing to its employees very conclusive for their
development.
(4) The company also takes up variation steps to train and develop its employees
through it EITEAN department.
(5) Performance and not seniority is consider for promotion criteria.
(6) Performance appraisal is considered as the most important function of
personnel department by Excel Crop Care Ltd. as it aims at organizational
development through qualitative individual development.
(7) In Excel Crop Care Ltd. there exists a finest wage and salary administration
structure.
(8) Employee’s safety is the honest thing kept mind by the company. So a special
safety department has been develop where in each employee is made to
understand the usage of safety instruments given to him.
(9) Employee’s satisfaction is given at most importance by Excel Crop Care Ltd.
for this “Family approach” steps in whenever the employee feels discounted.
(10) Trade Union and their rights are not at all neglected by the company.
(11) No strikes have taken place at any time in the history of Excel Crop Care Ltd.
Excel Crop Care Ltd. maintain very smooth and co-operative, relations with
both insiders and outsiders.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT102
10.Bibliograph
y
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT103
BIBLIOGRAPHY
1. Aswathappa k. – Human resource & personnel management. Published by Tata
Mc. Graw Hill.
2. Khan and Jain – Financial Management.
3. Philip Kotler – Marketing Management – Published by Prentice Hall of India
Private limited.
Hiren R. Maheshwari, S.Y., B.B.A. CHRIST COLLEGE, RAJKOT104