1

NAME : BHALANI BHOOMIKA M.

CLASS : S.Y.B.B.A.

ROLL NO. : 3 (Three)

SEAT NO :

ACADAMIC YEAR : 2010-2011

COLLEGE : SHREE J. H. Bhalodia Women’s College

RAJKOT.

GUIDED BY : PRO. Smita Vyas

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Declaration

I ,the undersigned ,Miss Bhoomika M. Bhalani, the student of S.Y.B.B.A. of shri J.H.Bhalodia Women’s College Rajkot. Here by declare that the project work presented in this report is my own work and has been carried out under the supervision of panel of Prof. Smita C. Vyas.

This work has not been previously submitted to any other university for any examination.

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: P R E F A C E:

This is an accepted fact that each and every work has two aspects and this universal truth is also applicable so far as education is concerned, it also has two aspects one is theoretical and another is practical. Theoretical knowledge with practical experience is must for every student of Business Administration. Thus, practical experience plays a vital role in acquiring real knowledge.

After looking to the importance of practical study, Saurashtra University outlined the draft S.Y. B.B.A. program under which the students are required to visit any one industry for 10 days to acquire some practical knowledge. It gives opportunity to increase our knowledge and standard and also develops the ability.

I have visited ‘SAURASHTRA CEMENT LIMITED’ located at Ranavav, I visited the company on 22/11/2010 to 7/12/2010. I collected general information regarding personnel, marketing, production and financial field of management.

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To the best of my effort to cover as much fresh information available to prepare this project report with a very careful study, I tried my best to highlight and include all kinds of information which is possible.

I hope that this report is in its present from would better serve the need of enriching practical knowledge at S.Y. B.B.A. level.

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: A C K N O W L E D G E M E N T :

In reference with the practical training, I would like to express my sense of gratitude to the management of Saurashtra Cement Limited for giving me the golden opportunity for 10days in its company.

I am particularly grateful to the principal of our college Mr. N.M.Kanani and also deep appraisal to B.B.A. incharge Mrs. Smita Vyas for allowing and giving me necessary guidance concerning with project report

I also express my due thanks to Mr. Vinod Pillai (Dy. Manager P.A. & H.R.D.), Miss Shruti Sinha, Mr. Modha and their colleagues for rendering all necessary information and extending finest hospitality to me.

Again I sincerely thanks to all who directly or indirectly contributed to me in my report construction.

Place : Rajkot Yours faithfully

Date : / / BHALANI BHOOMIKA M.

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: H I G H L I G H T S O F M E H T A G R O U P :

The Mehta Group – World Wide

The Mehta group, in spirit is truly an international Indian. The Mehta group today has a multinational presence and its business cover a wide spectrum. Its activities span all over the world with manufacturing activities in sugar, tea, packing, international trade, cement and building materials, electric cables, power capabilities in consultancy, management and financial services etc.

The Mehta group today is poised on the threshold of an exciting new phase of its evolution, ready to grasp the opportunities offered by the recently globalised economy.

The founder of Mehta group was late Shree Nanji Kalidas Mehta whose courage and tenacity prevails even today. The main intension of the Mehta group to help convert that potential into reality.

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The Mehta Group - India

SAURASHTRA CEMENT LIMITED

GUJARAT SIDDHI CEMENT LIMITED

AGRIMA CONSULTANTS INTERNATIONAL PVT. LTD.

MEHTA PRIVATE LIMITED

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: I N D E X :

Sr. no

Particular Page No.

1 GENERAL INFORMATION

2 PRODUCTION DEPARTMENT

3 PERSONNEL DEPARTMENT

4 MARKETING DEPARTMENT

5 FINANCIAL DEPARTMENT

6 SWOT ANALYSIS

7 FUTURE PLAN

8 SUGGESTION

9 CONCLUSION

10 BIBLIOGRAPHY

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G E N E R A L INFORMATION

10

: G E N E R A L I N F O R M A T I O N :

Contents

Sr. No. Particulars Page No.

1 Introduction About Unit 212 History & Development 223 Highlights Of Company 244 Managing Body 275 Size Of The Unit 296 Form Of The Business Org. 307 Organization Structure 318 Plant Location 329 Time Keeping System 3910 Social Responsibilities 4111 Contribution Of The Unit

To The Industry43

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1 – I N T R O D U C T I O N A B O U T T H E U N I T

The flagship company of the Mehta group, SAURASHTRA CEMENT LIMITED is one of the leading players in the Indian cement industry. Saurashtra Cement Limited is situated at Ranavav near Porbandar. Saurashtra Cement Limited is one of the leading players in Indian cement industry, manufacturing ordinary and Pozzolana Portland cement. ‘HATHI CEMENT’ is the brand leader in Gujarat and has established itself over the decades as a “Choice of every generation for its strength and durability.

Today,with large-scale modernization and expansion, SCL plant is comparable to the best cement plant in the world. The quality of manpower, energy, efficiency and quality of the product are on par with international standards, understandably it emerged as India’s major export of clinker.

SCL exports its products i.e. clinker and cement in many foreign countries. For this purpose SCL produces high strength cement. The major strength of SCL is its brand name and strong quality.

SCL implements effective quality management system as per ISO 9002 for consistency and progressive improvement in product quality. By its product quality, SCL enables to earn foreign exchange.

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2 - H I S T O R Y & D E V E L O P M E N T O F T H E U N I T

History Of The Unit

History of the unit means the past performance of the industry.

Saurashtra Cement Ltd. The flagship company of the Mehta group was set up on 11th June, 1956. SCL obtained license at 9 th

January 1957 to commence the business under the provision of the company’s act 1956. The actual production was started in1959.

Saurashtra Cement Ltd. Was originally promoted by LATE SHREE NANJI KALIDAS MEHTA in 1956. On his expiry on1969, SHREE KHIMJIBHAI MEHTA took over the reigns as chairman of SCL. As he was keeping indifferent health, SHREE MAHENDRA N. MEHTA took over as chairman of SCL in early 1983.

Company has recognized as an export house by the Government of India and also honoured. The company also got the award for excellence in productivity, quality, innovation and management. The company has been certified for ISO 9002 from RWTUV Germany. There are so many achievements of company, which create HISTORY

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Development of the Unit

Saurashtra Cement Ltd. Was established by Mehta Group. Mehta group was and is of industrialist nature and may in future. By efficient efforts of Mehta group, SCL is progressed up and up.

Saurashtra Cement Ltd. Produces ordinary and Pozzolana Portland cement. As we all know that cement is a basic need for any kind of construction activity. The company’s actual production started in 1959. At that time installed capacity was 600 tones per day. Because of the high potential and actual demand of cement, SCL had increased their installed capacity is 4500 tones per day. This is a great development of the unit.

Saurashtra Cement Ltd. Is the classic example of how the gray caters to the specific needs of its economic environments in this case providing with an excellent blue print of how a sick plant can be rapidly earned around providing high quality raw material for building up India’s industrial infrastructure and bringing in valuable foreign exchange which is the country’s No. 1 priority today.

Initially, the company was more of labour intensive but after the modernization and installation of new technical machines, it has put the company to the foot front.

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A major expansion and modernization project is now under way, which increase capacity, reduce energy consumption, improve product quality and significantly control pollution levels by incorporating Bag house in the system.

3 - H I G H L I G H T O F T H E C O M P A N Y

Name : SAURASHTRA CEMENT LIMITED

Plant Address : SAURASHTRA CEMENT

LIMITED NEAR RAILWAY STATION, RANAVAV - 360560

TEL: +91-2801-230824 / 27 / 28 /29 FAX: +91-2801-230830 / 230687

E-mail: scl_rnv@mehtagroup.com

Registered Office : SAURASHTRA CEMENT LIMITED NEAR RAILWAY STATION, RANAVAV - 360560 (GUJARAT)

Corporate Office : AGRIMA BUSINESS CENTER,

3rd FLOOR N. K. MEHTA INTERNATIONALHOUSE,

178, BACK BAY RECLAMATION, MUMBAI - 400 020

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Marketing Office : 302/305, SAKAR, 3rd FLOOR, OPP. GANDHIGRAM RAILWAY STATION,

AHMEDABAD - 380 009

Central Marketing Office : - “PELIKAN”, 7th FLOOR, GUJ. CHAMBER OF COMMERCE,

COMPOUND, ASHRAM ROAD, AHMEDABAD - 380 009

Share Department :- N. K. MEHTA INTERNATIONAL HOUSE,

5th FLOOR, 178, BACK BAY RECLAMATION MUMBAI - 400 020

Website :- www.mehtagroup.com

Brand Name :- HATHI CEMENT

SIDDHI CEMENT CHHOTU CEMENT

Products :- ORDINARY PORTLAND CEMENT (OPC)

53 GRADE CEMENT 43 GRADE CEMENT

POZZOLANA PORTLAND CEMENT (PPC) SULPHATE RESISTANT CEMENT (SRC)

Year Of Establishment :- 11th June, 1956

Number Of Employees :- 875 Employees16

(681 Skilled and 194 Unskilled)

Sister Concern :- GUJARAT SIDDHI CEMENT LTD.

Subsidiary Companies :- AGRIMA CONSULTANTS INTERNATIONAL LTD.

CONCORDE CEMENT.

PVT. LTD.

RATI INVESTMENT LTD. RIA HOLDINGS LTD. PRACHIT HOLDINGS LTD. PRANAY HOLDINGS LTD.

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4 - M A N A G I N G B O D Y

Board Of Directors :-

Name Designation

Mr. M. N. Mehta ChairmanMr. D. N. Mehta Deputy ChairmanMr. Jay Mehta Executive Vice President Mr. H. D. Mehta DirectorMr. S.V.S. Raghvan DirectorMr. M. N. Rao DirectorMrs. Savita V. Pilli DirectorMr. Anish Modi IDM NomineeMr. Alexander Shaik IDM NomineeMr. Chetan Jain IDM NomineeMr. M. S. Gilotra Managing DirectorMr. Raj K. Poddar Dy. Managing Director

Bankers :-

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Dena Bank Central Bank Of India Rajkot Nagrik Sahkari Bank Ltd.

Auditors :-

M/s. Bansi S. Mehta and Co.Chartered Accountants

Legal Advisors :-

Mr. A. M. Fadia(Director: Legal and secretarial)

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5 - S I Z E O F T H E U N I T S

In the consideration of the size of the unit, there are only three different types of industry.

LARGE SCALE INDUSTRIES

MEDIUM SCALE INDUSTRIES

SMALLSCALE INDUSTRY

Saurashtra Cement Ltd has set up itself as a Large Scale Industry. As a general point of view, large-scale industry based upon a few criteria viz. on the amount of investment in the industry or on the number of person employed or on the number of person employed or on the production of the company etc.

As the investment point of view, ‘the industry which has share capital more than Rs. 5 crores is the large scale industry’. In other word the amount of investment invested by the owners is must be more than Rs. 5 crores. The investment of SCL is lachs; hence id is more than 5 crores.

Therefore, SCL is a Large Scale Industry.

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6 - F O R M O F B U S I N E S S O R G A N I S A T I O N

There are so many of Business Organization. SCL is itself a ‘PUBLIC LIMITED COMPANY’. The company is only indirectly defined in the Act Sec 3(i) (ii) states ‘Public Limited Company means a company which is not a private company.

A public company may be said to be an association consisting of not less than 7 members registered under the companies act 1956 and which is not a private company within the meaning of the act. Such company may invite the general public to subscriber for any shares in or debentures of the company. The limit of 50 members is also not applicable to public company. The shares of such company are freely transferable after some necessary transaction. It should be noted that public company must add the word ‘LIMITED’ at the end of its name.

So SCL is said to be PUBLIC LIMITED COMPANY.

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7 - O R G A N I S A T I O N S T R U C T U R E

Organization is a group of people working together cooperatively under authority towards achieving goals and objectives that mutually benefits the organization. Company creates suitable organization structure, which is suitable for it.

SCL is a large-scale industry. So Line and Staff organization is suitable for it. Therefore, SCL follows Line and Staff organization structure.

Line and Staff organization is an ideal combination of staff members. Both together enhance the organizations effectiveness significantly.

Line and Staff organization refers to an organization pattern in which individual specialist and group of specialist advice line officer for the special aspect of their activity.

In SCL, line managers are guided by the qualified staff experts.

“TEAMWORK + PLANNING + EFFORT = SUCCESS”

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8 - P L A N T L O C A T I O N

SAURASHTRA CEMENT LIMITED

This is an acceptable fact that plant location is the most important decision for the promoters of the industry. Any industry should be located only at that place which is favorable for.

PLANT

OFFICEOFFICELimestone

Mines up to

27 km. ofthe

company

R A I L W A Y C R O S S I N G

R A N A V A V T O W N

HIGHWAY

P O R B A N D A R C I T Y

P O R B A N D A R P O R T

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As a general point of view entrepreneur locate their industry at a place where the cost of production is lowest and the infrastructure facilities are available easily and cheaply, because they will directly affect the profit margin of the industry.

Sufficient stock of raw material, cheap labor, cheap power, cheap transport services, cheap water, cheap capital are really essential for the location of the firm. Thus, the firm must be located in such place where the production and distribution cost is minimum.

In short “Location means the facility, suitable and advantages surroundings which are enjoyed by the company”.

SCL’s proprietors considered all the factors which are given below, so they established their unit in Ranavav

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1-Availability Of Raw Material

Raw material is very effective factor for the location of the industry. SCL purchases raw material from different suppliers, they mainly deal from Porbandar port as it near to the plant. So all impacts of raw material is easy and fast. They have their own mines. So SCL gets main raw material easily and in a huge quantity.

RAW MATERIAL

LABOUR SUPPLY

TRANSPORTATION

POWER SUPPLY

FINANCE

MARKET

GOVERNMENTSUPPORT

LOCATION

FACTOR

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2-Availability Of Labours

Educated, skilled and unskilled labours are required for smooth running of the industries. Labour is fundamental working element of the industry. It is essential that adequate supply of labour must be available near the industry.

SCL has never felt difficulties regarding the labours, because it is located in Ranavav near by Porbandar city. So labours are available easily. Even unskilled labours are also available from the locality.

3-Transport Facility

Transport facilities generally influence the location of an industry. As we know that transport facility must be well developed in the region where the industry is located.

SCL is suitable for getting quick and easy transport facilities. In SCL goods are sent by roadways in Gujarat and by waterways to abroad from Porbandar port.

Thus, SCL does not face any serious problem of transportation.

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4-Availability Of Electricity (power supply)

Electricity is the life of industry because it plays a vital role of breath of industrial life. To run a company, electricity is the basic need.

As concerned to SCL, it purchases power from GEB (PGVCL). The company has also its own DG set (Diesel Generators). So it uses both powers. So electricity can’t be a problem of SCL.

5-Financial Facility

Finance is lifeline of any business. Finance is required for the setting up for an industry for running and also at the time of its expansion. To run an industry, lot of money is required. It is a large-scale industry, so it requires huge amount of finance. As concerned to SCL, it gets sufficient finance by various sources of funds.

6-Proximity Of Closeness To Market

Quickness in marketing actions can be ensured by being close to the market. When the market is near, the transport cost will be minimum. It will directly affect on the profitability of the business. The greater the concentration of market, greater is the pull of market on location.

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SCL mainly deals in Gujarat and also exports beyond the boundaries and as Porbandar port is near and they have their own jetty. Thus, market is near to SCL.

7-Government Support

The government policy of Gujarat is good and favourable. Government provides schemes for development and prompting the industries, situated in Gujarat state. Government also provides long term and short term financial terms.

Thus, government support is also an important factor for the location of the SCL.

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9 - T I M E K E E P I N G S Y S T E M

Time keeping system is one of the important function of an organisation. It is an important thing that for each and every employee working hours should be fixed. And as per the government rules against exploitation of workers, a company does not forced to get worked done through any employee more than 8 hours in a day. To maintain this rule, company must determine its own simple time keeping system by which company gets more benefits and it can successfully and effectively utilise available manpower.

So far as SCL is concerned, it is a continues process i.e. it carries 24 hours unbroken manufacturing process and it requires big arrangement of time keeping system. SCL’s time keeping system is classified into two parts.

Time Keeping System for Blue Collared Employees

Shift Time

First Shift 04:00 a.m. To 12:00 p.m. Second Shift 12:00 p.m. To 08:00 a.m. Third Shift 08:00 p.m. To 04:00 a.m.

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During all these three shifts working period, workers get half an hour as a recess.

Time Keeping System for White Collared Employees

For white-collared employees of the managerial levels company arranged general shift.

General Shift :- 08:00 a.m. To 05:00 p.m.

During this period, white collared employees get an hour as a recess.

SCL’s whole time keeping system is maintained by the computerized punching machine. Under this system each and every employee has given a card. Each and every employee must get their card punched by punching machine at each and every time of his entry or exit. Punching machine records time at which an employee comes on the service and leaves from service.

By installing punching card system, employees and employers are truly benefited i.e. Benefit to employees is employer could not exploit them by forcing to work more hours than service hours. Benefit to employer is he can check the fulfiltime of the service hours by each and every employee

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10 - S O C I A L R E S P O N S I B I L I T I E S

In the Modern competitive era, whatever may be the type of unit, the existence largely depends upon the society because it is society in which it is working and being operated. Therefore, if the society whishes, it can put the unit on the bloom and it can also ruin the unit. So SCL pays its responsibilities towards the society.

SCL’s responsibilities towards the society could be made clear from the following points.

SCL provides employment to large number of employees as it works continuously without break and also raises standard of living by paying team satisfactory.

Plantation work is done by SCL. SCL has planted so many plants in colony as well as the roads. Lotus pond cultivated at the porbandar airport.

SCL controls pollution with the help of Bag House Scheme.

SCL built a temple for maintaining religious peace.

SCL provides training system to internal employees as well as external. External includes the student of specified degree courses like MBA, BBA, Diploma Courses etc.

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Saurashtra Vidhya Vihar is being sponsored by a trust formed by SCL. The students are provided schooling facility at a cheap rate.

Empowerment of women is much critical subject today. Considering this, SCL has donated funds for educational purpose to ‘Aryakanya Gurukul’ at Porbandar.

SCL has contributed funds to the following;

Balbhavan Society, Baroda

Shramik Vikas Sansthan, Baroda

Gujarat Chief Minister’s Relief Fund

Tirumala Tirupati Devasthanams, Tirupati.

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11 - CONTRIBUTION OF THE UNIT TO THE INDUSTRY

Now a days so many small, medium and large-scale cement manufacturing units are scattered all over the country. SCL is one of the leading company of cement in India.

SCL’s contribution towards the industry is as follows.

1-Assists Construction Industry:-

Since, cement is a basic raw material in the construction in the activities; it is highly used in construction of buildings, bridges, dams, houses, roads etc. SCL produces around 17% of total cement production of India. Thus, by providing better quality and bulk quantity of cement, SCL tries its best to reduce the shortage of cement.

2-Earns Foreign Exchange:-

SCL exports around 25% to 35% of its total production in different countries such as Sri-Lanka, Bangladesh, Korea,

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Malasia etc. Thus, this enables the unit to earn precious foreign exchange for the country

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12 - V I S I O N

13 - M I S S I O N

To be the best

Cost effective manufacturer

And

Distributor of cement

On the west coast of

India

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To cultivate mutually beneficial relationships with suppliers and customers.

To develop system and processes which will allow us to control any level of business and evolve with the company.

To empower our employees to allow them to achieve their goals.

To use innovative and alternative methods of distribution to reduce costs.

To produce materials at the best possible price and quality.

To utilize our financial and material resources in the most efficient manners.

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: A C H I E V E M E N T S :

1- ISO 9002 certification from RWTUV, Germany for Quality System.

2- ISO 14001 certification from RWTUV, Germany for Environmental Management System.

3-National Productivity Award for the best production performance 1959-1996.

4-National Productivity Award for second best productivity in 1994-1995, 1995-1996, 1996-1997.

5-CAPEXIL Award for Export Recognition, 1995.

6- Indira Gandhi National Memorial Award for excellence in Indian Industry.

In addition to the above, the company has received about 50 awards from Indian Bureau of Mines. Company has received awards in relation to pollution control, soil management, safety and operations and afforestation etc.

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PRODUCTIONDEPARTMENT

39

: P R O D U C T I O N D E P A R T M E N T :

ContentsSr. NO. Particulars Page

No1 Introduction

2 Organisation Structure

3 Numbers of Products Manufactured

4 Production Planning

5 Production Control

6 Raw Material and Sources

7 Machineries and Uses

8 Production Process

9 Quality Control

10 Pollution Control

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1 - I N T R O D U C T I O N

The ‘PRODUCTION FUNCTION’ of a business is concerned with the creation of a product or a service required to satisfy customers’ needs, want and desires. Production means creation of utilities and covers all the activities of procurement, allocation and utilization of resources such as labour, energy, materials, equipments, machinery etc.

Production Department is one of the most important part of an enterprise, which is responsible for the actual transportation of materials into finished production. It deals with man, machine, organisation, to accomplish both productivity and satisfaction the desirable and results.

Thus, ‘PRODUCTION’ means to produce goods in require quantity at the required time and with the required quality in the most economical manner.

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2 - ORGANISATION CHART OF PRODUCTIONDEPARTMENT

Production department is one of the most important department of an enterprise, which is responsible for the actual transformation of material into finished products.

As concerned to SCL, the entire production activity is done under supreme command of General Manager of production department. If we go from top to bottom then there is a large work force, which includes supervisor engineers, foremen, fitters etc.

The organisation chart of the production department SCL is as follows.

General Manager (Operation)

Assistant General Manager (Operation)

Dy. Gen. Manager(Quality Control)

Dy. Gen. Manager(Production)

Supervisor

Workers

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Production System of SCL

OUTPUTS

INPUTS

PRODUCTION

SYSTEM

OF

SCL

MANUFACTURINGPROCESSSYSTEM

FEEDBACKINFORMATION

MANUFACTURINGPLAN

MENMACHINESMATERIALS

MONEYMINUTESMETHODS

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3 - N U M B E R O F P RO D U C T S M A N U F A C T U R E D

Every enterprise may produce a product or service. Generally,we may have mixture of techniques drawn from different types of production to obtain most effective result. Generally, for a special purpose, the firm is to be produced a certain product.

As concerned to SCL, it manufactures only one product i.e. Portlend cement. SCL produces high strength cement for exporting.

The number of product (cement) manufactured by SCL are as follows:

ORDINARE PORTLAND CEMENT (OPC) 53 Grade Cement 43 Grade Cement

POZZOLANA PORTLAND CEMENT (PPC)

SULPHATE RESISTANT CEMENT (SRC)

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4 - P R O D U C T I O N P L A N N I N G

As viewed by Charles A. Koepke, “The coordination of a series of functions according to a plan which will economically utilise the plant facilities and regulate the orderly movement of goods through their manufacturing cycle from the procurement of all materials to the shipping of finished goods at a predetermined rate”.

Production planning is an essential prerequisite of production control. Production control cannot be imagining without planning. Planning is the function of the management to look ahead, anticipate difficulties and take steps to remove the adverse before they are materialized.

Production planning is concerned with specifying how the productions resources of the business enterprise are to be employed over a given future time period in response to the predicted a forecasted demand for the products or services.

Production planning may be defined as foreseeing or picturing ahead every step in a long series of operations, each step to be taken at right place, at a right degree and right time so that the required quantity may be manufactured at right time and at most economic cost.

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5 - P R O D U C T I O N C O N T R O L

The other important aspect of production is production control. Only planning does not ensure that production is highlighted by planned activities and is being dine in planned manner. Controlling is the process that evaluates the equal performance of production units in lights of standards set in advance. It is highly integrated with production planning as it involves guiding production along the lines set by the production plan.

At SCL, also plans are designed looking to the factors prevailing in the market and looking to the circumstances prevailing around like demand, supply etc. and accordingly production is controlled. The total production is controlled by the computers from CCR (Computer Control Room).

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6 - R A W M A T E R I A L A N D S O U R C E S

‘RAW MATERIAL’ is the starting point of producing a product. Thus, raw materials are required to produce final products. As concerned to SCL, for the production of Portland Cement, they use various types of raw materials as;

1.LIME STONE2.MARL3.IRONE ORE4.SAND STONE5.GYPSUM

a. MARINEb. CHEMICAL (P.P.)c. PHOSPHO

6.COAL

For the purpose of producing the best quality of cement, it is very necessary that raw material is available in huge quantity and with the best quality at reasonable rate.

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The SCL collects raw material from various places, which are as under.

1-Lime Stone:-

SCL ADITYANA MINES

2-Marl:-

SCL ADITYANA MINES

3-Iron Ore:-

BAN GANGA MINERALSSHAHPUR, RAJASTHAN

4-Sand Stone:-

SUNHEM MINERALSCHOTILA

5-Gypsum:-

a- MARINEGANDHIDHAM, MORBI, BHAVNAGAR,

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NAVLAKHI1-SH Nathji TRADE CO., PBR2-TATA CHEM, MITHAPUR

B-CHEMICAL (P.P.)THAN, MORBI, KADI1-SH. HARSIDDHI TRADE CO., PBR2-MUNJAR ENTERPRISE, PBR

C-PHOSPHOG.S.F.C

6-Coal Imported:-

SOUTH AFRICA1-ESTECO COAL SUP., MUMBAI2-M/S GLENCORE INDIA, MUMBAI3-APR COAL & ENERGY4-COMTOIR BALLAND, GENEVA

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7 - M A C H I N E A N D U S E S

The modern age can be termed as ‘MACHINE AGE’ because the use of machine has become inevitable in the ultimate production of cement. As concerned to SCL, they use various types of machine for the production of cement.

1-Lime Stone Crusher:-

a. E. V. CRUSHERb. CRUSHERc. SECONDARY CRUSHERd. MINI CRUSHER

USE: - Crusher crushes the limestone and other raw Material like marl and clay into approx size of 1:1 and even less inches.

2-tacker:-

USE: - This imported machine is used to add necessary Raw material into crushed materials as prescribed By quality department.

3-Lime Stone Reclaimed:-

USE: - This machine used to spread the layers of limestone And other corrective materials as per as the requisite Of quality department.

4-Raw Mill:-

USE: - Raw mill is generally used to grind the various types Of raw materials.

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5-Raw Material Silo:-

A-BLENDING SILO:-

USE:-This machine is used for proper mixing of ground Material so as the homogeneous can be received.

B-STORAGE SILO:-

USE:-The material which is perfectly mixed in blending Silo is stored in storage silo.

6-Pre Heater:-

USE:-The stored material is pre heated by this machine.

7-Kiln:-

USE:-Heated material is entered in the kiln where coal Firing is going on. Chemical reaction takes place Inside the kiln.

8-Clincer Cooler:-

USE:-This machine is used for cooling down the hot clincer.

9-Cement Mill:-

USE:-Cement mill is used to grind the clinker (i.e. half Produced cement). In cement mill grinded clinker Is available in the form of cement.

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10-Cement Silo:-

USE:-This machine used to store the finished product I.e. the ground cement.

11-Cement Packer:-

USE:-The cement from the solo is packed automatically By the cement packer.

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8 - P R O D U C T I O N P R O C E S S

Production process must operate to satisfy customer demands particularly relating to mostly quality, time, quantity and price. The production process means to produce a certain product from raw materials to finished goods. After the production process, the raw material and semi finished goods convert in to finished goods.

As concerned to SCL, it produce only one product i.e. Portland cement. SCL follows following steps to produce cement.

M I N I N G

C R U S H I N G

R E C L A I M I N G

R A W M I L L

B L E N D I N G & S T O R A G E S I L O

P R E H E A T E R & K I L N

C O O L E R

C E M E N T M I L L

P A C K I N G

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1-Mining :-

Mining is the first and the starting point of the production of the cement. Limestone is the main raw material, which is chemically called CaCo3, is available in the form of hills. Company has its own mines from where it can easily get limestone. First of all the quality of limestone is checked and once the suitability is established, mining is done. Limestone will be taken out by quarrying (drilling) and blending. Blasting is done using electric power passed through explosive, which breaks limestone into form of boulders.

The material so recovered is transferred to the crusher.

2-Crushing :-

The limestone craven out from Mines is generally in the form of boulders. Hen the process of Crushing takes place. Here the boulders of limestone are crushed into approximate sizes of one to one and half inches in the crusher. This crusher is a revolving hammer type crusher, which crushes the limestone into small pieces.

Likewise, marl, clay etc are also crushed to reduce their size. Then they are transported to stacker by the means of a set of belt conveyors.

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3-Reclaining :-

After crushing material, it is transported to the stock pills having capacity of 17000 to 18000 m.t. The layers of limestone and other corrective materials are spread as per requirement of quality department to get targeted value. Once the quality targets are achieved, pile is declared ready for reclamation.

Reclaimers starts reclaiming the material, which is transported to raw hill hoppers through a set of belt conveyors.

4-Raw Mill :-

The small crushed limestone pieces are taken into limestone bin and the second bin of clay is also installed with that limestone bin. As per the requirement, the materials are controlled. Now the material is available for further raw mill procedure. The raw mill is provided with grounding medias of steel blades of various sizes from 45 mm to 90 mm diameters.

In the raw mill, small pieces of limestone, clay and other objective materials are feed through a box feeder and grinded together. Weight feeding ratios are set as per instruction of quality department.

During grinding the dust type of limestone powder is collected into cyclone. From cyclone sight heavy powder is converted into blending silo, electrostatic precipitator. And the heavy material is separated and it is transferred to blending silo, the remaining unused dust is driven out by stack.

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5-Blending & Storage Silo :-

The raw material, which enters into, the raw mill is grounded into the fine powder and is transferred to blending silo. Here, air at different pressures admitted from the bottom and received the homogeneous materials.

This grounded material after homogeneousing is transferred to storage silo. After all these process the material goes into pre heater by phumatic conveyor.

6-Pre Heating & Kiln :-

The raw material enters into preheating cyclone from storage. In first stage, the material travels downward because of gravity and gain temperature approximately 870 Celsius to 880 Celsius. At the last stage calciner fuel is introduced and the process is called as per calcinations.

The prepared material enters in the kiln and travels towards the kiln outlay and coal firing is taking place, also chemicals reaction takes place inside kiln burning zone, between lime, silica and alumina.

The material gains temperature approximately 1300 celsius to 1400 celsius at burning zone and becomes clinker.

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7-Cooler :-

Because of heat of 1300 celsius to 1400 celsius the clinker becomes so hot and hence it is entered into cooler and cooled down approximately temperature to 200 celsius by cooling fans. The clinker movement in the cooler is achieved by the movement of the clinker.

During cooling down this material the hot gas disposed from the material and to utilise this hot gas for energy conservation, it is transferred to coal mill. The dust so recovered in cooled is transferred to dust collection and useless gas is driven out by stack.

8-Cement Mill :-

Clinker is half produced cement. The produced clinker is fed to cement mills by overhead cranes and gypsum is fed to another hopper. The quality control department fixes the ratio of gypsum and clinker.

The cement-grinding mill is also a ball mill and the grinding process is same as the raw material. Grinding Iron balls are already available in the mills and clinker is first crushed and then grounded due to impact and attribution.

As soon as this process is completed, the perfectly mixed and grounded material is available and that is called CEMENT. Finally cement transferred to cement silos through air sliders and bucket elevator and dispatched.

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9-Packing :-

Cement produced in cement mills is conveyed to to cement silos. There are eight cement silos where different grades of cement are stored.

From the cement silos the cement is transported to hopers. There are four packers, which are run depending upon requirements. Each packer consists of twelve spouts and empty bags are fixed on the spout manually and it gets weighted and sewed automatically. When the weight of cement reaches to 50kgs.

On an average 27 to 28 bags are filled and packed every minute, on attainment on the belt conveyors and are ultimately carried upto the truck where it is loaded and counted manually.

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9 - Q u a l I t y C o n t r o l

Quality control is an essential part of producing the best quality of product. Most of the customers prefer the quality of product. The customers never accept any fluctuations in the quality of the product. If the quality of the products is not as per the requirement, it is very necessary to control the quality of the production.

SCL is producing cement and to check its quality after it is being produced is very difficult as it takes 28 days to show its strength. Quality control department has developed a special technique to solve this problem. So they started the backward process i.e. to manufacture particular quality of cement, particular quality of raw material and process is needed. So they start checking the quality of raw materials from the roots of production. All the raw materials are checked by the quality & control department.

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Thus, SCL follows the easy method to control the quality of cement.

10 - P o l l u t I o n c o n t r o l

Nature is very much related with the existence of human life. Now a days the problem of pollution becomes very critical. A good natural atmosphere only can provide pure water, air, and food to the human. If the environment is not protected from being polluted, the existence of human will be in danger. SCL takes necessary steps to control the different types of pollution. They protect the environment by monitoring air, restoring of water and reclamation of damaged lands.

To Control Air Pollution :-

The air pollution can be controlled by limiting the use of explosive, various types of fuels. The smoke and dust coming

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out of chimneys can be controlled by using recycling plant, installation of dust collector etc.

To Control Water Pollution :-

To control water pollution, they should not allow the bathing and washing the clothes near the water storage. They should also take care that garbage and waste is also not being dumped inside the water

To check the water pollution by dissolution of chemicals, some chemicals may be used for drinking or for industrial use.

Land Degradation:-

When the land is being damaged by mining. It is to be reclaimed afforstaion is to be done so that environmental balance may be restored.

SCL makes its mine green by afforestation.

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P E R S O N N E LD E P A R T M E N T

: P E R S O N N E L D E P A R T M E N T :

ContentSr. No Particulars Page No.

1 Introduction 702 Organization Chart 713 Recruitment, Selection, Induction 734 Training & Development 795 Job Description 826 Promotion & Transfer Policy 837 Performance Appraisal System 858 Wage & Salary Distribution 869 Facilities & Benefits to the Workers 8710 Employee Safety 9011 Provident Fund Scheme 9212 Working of ESI Scheme 9313 Industrial Relations 9414 Grievance Handling Process 9515 Collective Bargaining 9716 Trade Unions 9817 Kaizen Scheme 10018 Personnel Records 101

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1 - I N T R O D U C T I O N

Every enterprise depends upon human being. It is truly said the people are our single most important resources. Because of the unique important of human resources now a days a personnel function i.e. Manpower Management Function is becoming increasingly specialized. The term ‘PERSONNEL’ refers to number of groups of persons working in the unit. As per human resources approach, the people working in an organisation are a valuable resources whose talents have to be developed and utilised in the best manner possible for the achievements of organisational goals.

In other words, Personnel Management is the direction and coordination of human relations in the business orgenisation, thereby obtaining maximum production with minimum of physical and mental effort by the group of workers.

Someone truly defines;

“COMING TOGETHER IS BEGINING’KEEPING TOGETHER IS PROGRESS

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WORKING TOGETHER IS SUCCESS”.

2 - O R G N I S A T I O N C H A R T O F P E R S O N N E L

D E P A R T M E N T

Personnel department is an important part of any industry because it is the department of human beings, without human beings no company can exist. Personnel department is a clue between management and its labour force in any organisation. In other words personnel manager work as a bridge between the top management and workers.

In SCL, its personnel department has developed, very healthy and cordial relationship between its management and its work force. The organisation chart of personnel department of SCL is as follows;

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General Manager (Personnel & Admn.)

Dy. Manager (Personnel & Admn. HRD)

Sr. Manager Sr. Officer Sr. Officer ManagementTraining

Jr. OfficerTime Office

WelfareTransportCanteen

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3 - R E C R U I T M E N T , S E L E C T I O N &

I N D U C T I O N

In the general sense, Recruitment, Selection and induction all are very important for any industry of firm.

A-Recruitment :-

Recruitment has been regarded as the most important function of personnel management. Recruitment is the first step in the employment process which aims at developing and maintaining sufficient manpower resources upon whom the organisation can depend when it need additional employees. As viewed by FILLIPO. “Recruitment is the discovering of potential applicants for actual or anticipated organisational vacancies”.

Sources of recruitment :-

There are mainly two types of Recruitment’s sources;

1-INTERNAL SOURCES2-EXTERNAL SOURCES

1-Internal sources :-

Internal sources are the most obvious sources. These include personnel already on the pay roll of an organisation i.e. its present working force.

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Whenever any person retired or any vacancy arises because of any reason, company fills that place by promoting, transferring or demoting. Company promotes employees on the basis of his degrees, performance, discipline, seniority, job knowledge, personnel records etc.

By this way, company gets employees, who are well known about the company and his work.

2-External sources :-

External sources of recruitment means company fills its vacancy by the sources out side the organisation. External sources of Recruitment are as follows.

Advertisement in Newspaper Advertisement in Television Advertisement in Radio By consulting employment agencies By making campus recruitment By political recommendation By employee recommendation Through Labour Union By gate hiring

SCL recruits employees by the following ways i.e. recruitment for top level or middle level and recruitment of lower level, whenever SCL is in need of employees, it takes into consideration the following methods.

Advertisement in Newspaper Advertisement in Magazine By consulting Employment Agencies

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And when SCL is in need of lower level employees or blue-collared employees, it takes into consideration the following methods.

Advertisement in local Newspaper By Employee Recommendation Through Labour Union By Gate Hiring

Thus, recruitment is a ‘linking activity’ together those with jobs and those seeking jobs.

B-Selection :-

Selection is a deliberate effort of the organisation to select a fixed number of personnel from a large number of applicants. It is the process of choosing the individuals who possess the necessary skill, abilities and personality to successfully fill specific jobs in the organisation. In short, ‘Selection is concerned with packing the right candidates from a pool of applicants.

There are so many techniques to select the employees. Selection process of SCL is as follow;

Selection Process Of SCL :-

1-Application Blank :-

The application blank from is invariably used as one of the selection tools. The applications are the starting point of the selection process, where applications blanks are used, and the data becomes a part of the employee’s record.

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Applications blank contains identifying information i.e. a family background, date and place of birth, age, and information regarding education, information regarding experience, expected salary and allowance and information regarding community activities.

2-Employement Tests :-

An employment or a selection test is an instrument designed to measure selected qualities and abilities of a prospective incumbent in terms of job specifications. Psychological test assets natural abilities of the candidates. Psychological tests are of various kinds.

As concerned to SCL, they use written test, group discussion etc. as selection tools. Company conducts tests and by this way they are weeding out unfit candidates.3-Personnel Interview :-

After going through test, the successful candidates are interviewed. Interview must be conducted in a friendly atmosphere and the candidate must be made to feel at ease. In personnel interview, company collects certain characteristics not possible in application blank i.e. characteristics like quickness of reaction, manners, poise, appearance, sense of humor etc.

As concerned to SCL, in between personnel interview interviewers weed out some candidates who are unfit for job and declare some of them are successfully candidates.

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4-Reference Checks :-

Reference checks serve as an important selection technique, if conducted properly. The applicant is asked to mention the names and address of his former employers and also two or three persons known but not related to him.

This way, the company investigates the candidate’s previous history, character and behavior etc. After checking reference, suitable candidates are sent to go for the physical examination.

5-Physical Examination :-

Candidates who have crossed the above hurdles are required to go for the medical examination. This is very important because a person of poor health can not work competently and the investment in him may go waste.

As concerned to SCL, it conducts physical examination to see that the candidate is medically suited for the job or not.

6-Final Selection :-

If a candidate successfully overcomes all the above obstacle or tests given, he would be declared selected. An appointment letter will be given to him mentioning the terms of employment, pay scales, and post on which selected etc.

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C-Induction :-

Induction is a welcoming process, the idea is to welcome a newcomer, make him feel at home and generate in him a feeling that his own job, however small, is a meaningful and has a significance as a part of the total organisation. As viewed by Billimorid, “Induction is a technique by which a new employee is rehabilitated into the changed surrounding and introduced to the practices, policies and purposes of the organisation”

Induction is the process to make the candidates well known about the company. As concerned to SCL, they give the information about the organisation’s history, objectives, philosophy polices, future development, opportunities etc. Candidate is also introduced to his co-workers, subordinates and supervisors. The personnel officer gives the information regarding his duties, responsibilities and authorities according to company’s rules and regulations.

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4 - T R A I N I N G & D E V E L O P M E N T

The natural of jobs in the industry are fast changing. New methods and processes care being discovered everyday and the old techniques are becoming obsolete. Thus, training becomes necessary not only for the new entrants but also for the present employees.

Training :-

Training is defined as ‘the act of increasing the knowledge and skill of an employee for doing a particular job’. Training implies activities that each employees how to perform their present jobs better. According to DALE YODER, “Training is the process by which man power is filled for the particular jobs it is to perform”.

Training teaches employees required skills, knowledge or attitude and helps them in improving their performance by improving new skills, new techniques of doing the work and by improving their work habits.

As concerned to SCL, they give training to their employees. There are two principal methods of employees’ training, which are used by SCL.

1. ON THE JOB TRAINING METHOD2. OFF THE JOB TRAINING METHOD

1-On The Job Training Method :-

On the job training method is suitable method is suitable for all levels of personnel. The object of on the job training is to bring the employees to at least a minimum acceptable standard of performance in the shortest possible time.

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There are various methods of on the job training. The company uses the methods like orientation training, job instruction, job rotation, coaching etc.

2-Off The Job Training Method :-

In this method, trainees have to leave their work place and devote their time to the development objective.

The company uses the methods like lectures, audiovisual conferences, discussion, case study, role playing etc.

Development :-

The management development process ensures that the enterprise has the effective managers it needs to accomplish its present and future requirements. It seeks to improve the performance of existing managers providing them relevant opportunities to grow and develop.

Management development is a systematic process of training and growth by which managerial personnel gain and supply skills, knowledge, attitude and insights to manage the work in their organisation effectively and efficiently.

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Periodically, SCL conducts meetings and invite professional experts as well as experts of the similar company to express their opinions and suggestions.

In SCL, the company does provide better and professional management development sources for all levels of staff members.

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5 - J O B D E S C R I P T I O N

Job description is a written is a statement of duties, responsibilities and authorities of different job. It provides information about job i.e. what employee has to do on the job, to whom he is responsible, to who he has to lead or guide and what authority is given to him.

Job description is an important document, which is basically descriptive in nature and certain statements of job analyses. It provides both organisational as well as functional information. It defines the scope of job activities, major responsibilities and positioning of the job in the organisation. It provide the worker, analyst and supervisor with a clear idea of about the work must do to meet the demand of the job.

At present SCL does not apply any job description system. When a person joins the company, all the rules and regulations, his duties and responsibilities are made clear to him, so that he can perform effectively his work.

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6 - P R O M O T I O N & T R A N S F E R P O L I C Y

Promotion Policy :-

Opportunities for advancement in service are one of the best incentives an organisation can provide to its employees. Promotion is one of the best forms of incentives, which generates a sense of loyalty to the organisation. A promotion takes place when an employee moves to a position higher than the one formally occupies. ‘Performance’ is a term, which covers a change and needs higher responsibilities. It normally also means increased pay and better term and condition of service, resulting into a higher status of rank.

In short, a promotion may be defined as an upward movement of an employee in an organisation to another job, which commands better pay, better status or prestige and higher opportunities and responsibilities, better working condition, hours of work and facilities etc.

SCL gives promotion on the basis of seniority, abilities, and educational qualification, experience and also on the merits of the employees. Thus, SCL mainly promotes on the basis of job knowledge and skills of employees.

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Transfer Policy :-

Transfer is the process placing employees in positions where they are likely to be more effective or where they are likely to get more job satisfaction. A transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, plant or position

As concerned to SCL, in lower level transfer takes place to solve the problems of employees i.e. if any employee wishes to transfer his shift and went to another shift in which an employee also wishes to transfer his shift then SCL transfer their shifts. Thus, there is an internal transfer.

When company finds well knowledge persons who are wrongly place din controversy department then it transfers that employee to his knowledgeable department.

In SCL, we found that there is inter departmental transfer.

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7 - P E R F O R M A N C E A P P R I S A L S Y S T E M

Organisations are established to achieve certain objectives. Achievements of goals or target depend upon the performance of individual employees. Thus, performance appraisal forms an important part of HRM. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. Performance appraisal is a process of evaluating an employees’ performance.

As viewed by Fillipo, “Performance appraisal is a systematic periodic and impartial rating of employee’s excellence in matters pertaining to his present job and to his potentialities for a better job”. Thus, performance appraisal will help the management to perform functions relating to selection, development, salary, promotion, penalties etc.

SCL constantly does the activity of performance appraisal as it thinks it helps in improving the performance of employees. They can know the limitations and abilities of employees and can put right person at right place. Thus, they can have satisfactory work.

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8 - W A G E & S A L A R Y A D M I N I S T R A T I O N

There is a famous quotation that “People do what they do to satisfy some need. Before they do anything they look for a reward or pay off”. Wages and salary constitute the major factor in the economic and social life of any community. Wages and salary is most important to an any industrial worker because his standard of living and that of his family depends upon his earnings. Wages and salaries are forms of compensation but they are quite different. The term ‘wage’ is defined as the remuneration paid to the annual basis. Thus, wages and salaries play a vital role in an organisation because ‘a satisfied worker is just like an asset for a firm.

SCL gives the importance to wage and salary administration to arrange well-satisfied wage and salary structure for its employees. For the evaluation company has concentrated its attention on duties, responsibilities, experience and necessity of work to determine wage and salary.

In SCL, some employees are working under the wage board provision. Therefore, the unit provides wage according to this wage board policy. The company provides salary as per the grade system like managerial grade, officer grade supervisor grade etc. all employees get remuneration according to that grade.

Thus, company’s wage and salary system is enough competitive and satisfactory.

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9 - F A C I L I T I E S A N D B E N E F I T S

T O T H E W O R K E R S

The human concept of labour has been recognized widely in the industrial word. It is very necessary to provide such facilities and benefits to the workers for any industry. SCL has made some welfare activities to motive the employees and to increase their moral. Facilities and benefits should lead to enhanced productivity and satisfaction of employees. All the benefits and facilities are essential to take care of workers and keep them fit and faithful.

SCL provides following facilities and benefits to their employees.

1-Housing Facility :-

Saurashtra Cement Limited has its own colony. There are different types of quarters with different facilities. SCL provides quarter facility to employees at free of charges.

2-Medical Facility :-

Company has its own dispensary near the plant location. In this dispensary, the employees are provided free medical services and medicines. Company also provides ambulance in emergency cases.

This way, SCL provides free medical services to the employees and their families.

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3-Training And Transport Facility :-

The company provides traveling and transport facilities for their employee’s comfort. Company provided four wheelers van to the executives like car, jeep, and two wheelers to the lead of all the departments like Honda, Bajaj etc. Fuel and maintenance charges are provided by the company.

SCL provides traveling facility from porbandar to Ranavav & Ranavav to their employees.

4-Canteen Facility :-

The company has its canteen and provides refreshment facilities to its employees. The company provides coupons for tea & snack to the employees. The refreshment items are given at very reasonable rate.

5-Creational & Entertainment Facility :-

SCL provides club for recreation and entertainment to the employees and their families. In which they can play, read and arrange entertainment programs etc.

Company arranges entertainment programs as musical parties, magician shows etc. for workers and their families.

6-Death Relief Fund :-82

SCL provides death relief fund to its employees. The company pays amount as per act to any current employees die in any reason.

Other Facilities :-

1.SCL provides gray gratuity scheme for the employees.

2.SCL provides provident fund scheme for the employees.

3.SCL provides uniform, shoes, goggles and cap to its employees for safety.

4.SCL provides leave facility to its employee.

5.SCL provides parking facility.

6.SCL provides facility to withdraw amount in advance by the employees as per their post and standard of wages

7.Whenever company achieves its predetermine goal very effectively management declares bonus to their employees as an additional inactive.

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10 - E M P L O Y E E S A F E T Y

In simple terms, ‘SAFETY’ means freedom from the occurrence or risk of injury or loss. Industrial safety or employee safety refers to the protection of the workers from the danger of industrial accidents. production, loss of man-hours and also loss to workers, employers and to the nation. Thus, to prevent the accidents the need of safety is felt.

Safety is primarily the responsibility of the management to control the number of accidents. SCL becomes more conscious about its employee’s safety. SCL arranges safety programs for its employees in which they provide training to them for safety. If workers are imparted training, the accidents will be reduced automatically. In SCL, safety posters with poignant illustrations and penetrating slogans may be put up on the walls near workplace.

In the celebration of safety week the company put many slogan and poems for safety. Some of the are as follows.

1- “SAFETY IS A FOUNDATION OF Health and Wealth”

2- cc;]Z1FF lJGF ;,FDTL GCL4

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;<FFDTL lJGF lJSF; GCLPcc

3- ;FYL

cc;]ZDF K[ VDFZM ;FYLP S\5GL VDFZL l;D[g8 CFYLP ZCLV[ ;FZF SFDNFZGL VNFYLP VD[ SFIDL ;O/TF GF ;\UFYLPcc

4- Z\U ‘”

cc;]Z1FFG[4 ;\U ;\U AR[ K[4 V\U V\U HLJJM K[4 SFDGM H\U p0[ K[4 pt;FC 5T\U HFdIM K[ pt5FNG Z\Ucc

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11 - P R O V I D E N T F U N D S S C H E M E

The act for employee provident fund was passed in 1952. Under this act all employee have to contribute some percentage of his salary to this fund, which accumulates amount in the employees account. This scheme is said to be one of the compulsory saving scheme, which helps employee in retired age. A special reserve fund was made for making the payment to outgoing members.

The company is more conceals about its provident fund scheme, which contributes by depositing the funds dues with the appropriate authority in regular period. As per the rules and regulations, the company deducts 12% from the salary of employees and adds 12% and this is credited to concerned person’s account.

As contributory, by both the parties, employees and employers contribute in the provident funds scheme.

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12 - W O R K I N G O F E. S. I. S C H E M E

E.S.I. scheme means Employees State Insurance Scheme. In order to provide sickness benefits to workers the Employees State Insurance Act was passed in 1948. It is a social scheme, providing insurance when any type of difficulty may comes to the employees. It is a scheme for the protection and benefits of workers and their families. It covers all type of employees, i.e. manual, clerical, supervisory and technical within certain wage level.

Under this act, some extra benefits are provided to employees like maternity leave, medical leave, sick leave, disability compensation etc.

In our training we found that SCL has not adopted Employees Insurance Scheme. SCL has adopted Group Gratuity Scheme. Group Gratuity Scheme consists an insurance of the employees in a group.

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13 - I N D U S T R I A L R E L A T I O N

In this industrial age, it is very essential for economic progress to maintain good industrial relation. Industrial relation postulates the existence of understanding, co-operation and sense of partnership between employers and employees. Thus, to maintain good industrial relations, harmonious relationship is necessary for both employees and employers.

In simple words, good industrial relation means industrial peace, which is necessary for better and higher production. According to Prof. Dunlop, “Industrial societies necessarily create industrial relations defined as the complex of inter relations among workers, managers and government.”

SCL has good industrial relations between employers and employees. SCL knows that good industrial relations are inevitable for rapid growth of their firm. This has given result in past and sound industrial relations will facilitate rapid growth and development of the organisation in future even.

Thus, SCL maintains good industrial relations.

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14 - G R I E V A N C E H A N D A L I N G P R O C E S S

In this industrial age, it is difficult to find a company or an industrial concern which functions absolutely smoothly at all times. It is but natural that grievances take place in an organisation. The employees working in a ray can not be fully satisfied in all respects. The management even can not satisfy the feelings and ego of all its employees. It is natural that employees have grievance against their employers while in some cases employers have grievance against their employees. According to Richard P. Calhoon, “a grievance as anything that an employer thinks or feels is wrong, generally accomplished by an activity disturbing feeling”.

The major disputes may be handed over to the statutory machinery set up under the Industrial Disputes Act, 947 but miner grievance must be settled by establishing a grievance procedure so that the industrial relations reform.

From, the observation I found that SCL follows a simple and systematic procedure to handle the grievances. Whenever any employee has any grievance he promptly meet to his immediate supervisor.

Supervisor tries to satisfy his need. If he is not satisfied from supervisor he can approach upper level persons. Mostly

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grievances are handled at the earlier stage. Upward going of Grievance Handling procedure is as follows: Above mentioned procedure is not always comes into existence in major cases grievance may be generally handled at the earlier stage.

15 - C O L L E C T I V E B A R G A I N I N G

Success of an organisation mostly depends upon how well the organisation makes settlement of Industrial Disputes. It is an age where settlement of industrial relations in the organisation.

Collective Bargaining is probably one must effective method of resolving industrial disputes. According to COX, “Collective bargaining is the resolution of industrial problems between the representatives of employers and the freely designated representatives of employees acting collectively with a minimum of government dictation”. In other words, Collective Bargaining is a techniques a process or device to protect the interests of the employers and employees.

In SCL, there are two persons appointed for the collective bargaining who have power to issues related to workers on behalf of management. The main issues handled by them are the wage and salary along with the bonus of the employees.

As concerned to SCL, the company has very close and harmonious relation among the staff workers and managers.

Thus, Collective Bargaining, an essential element of economic democracy is a ‘two party’ procedure i.e. employers and employees to arrive at a mutually agreed solution.

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16 - T R A D E U N I O N

“Unity is Strength.” This fact has been very effectively brought out by long follow in the song of Haiwatha.

“All your strength is in your union, All your danger is in your discord Therefore be at peace henceforward And as brothers, live together.”

Trade union is based one of this most important principle. It is generally believed and accepted that gray has power and what you demand collectively is beyond imagination in isolation. According to Edwin B. Flippo, “A trade union is an organisation of workers to promote, protect and improve through collective action the social, economic and political interests of its members.” It promotes piece in the industry. The main object of a trade union is the welfare of its members.

As concerned to SCL, there are two trade unions, which are as follows:

1.SAURASHTRA KAMDAR MANDAL91

2.CEMENT SHRAMIK SANGH

The relation between the trade union and management of SCL is very good as they have better understanding with each other.

Thus, trade Unions are nothing but the association of workers, which are specially formed to maintain industrial peace and project the rights of workers.

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17 - K A I Z E N S C H E M E

To invite the various ideas of the employees SCL has developed a totally new schemes i.e. Kaizen Schemes.

Rules & Regulation of Kaizen Scheme :-

1. ` Kaizen Scheme was reviewed in the month of January,2008

2. Under this scheme various ideas are invited from the employees addressing any are they deem fit.

3. The suggestors as well as the coordinators not only get cash rewards for good ideas but also get to implement their own ideas once it gets to implement their own ideas once it gets by the management.

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18 – P E R S O N N E L R E C O R D S

By the term record is meant the preservation of information in fills and documents. Personnel records are generally prepared and complied from reports and they are meant for long-term use.

Personnel records are maintained by personnel department. It is a very important function of personnel department. Personnel records are useful for evaluating an individual’s attitude during his duty period. It is also useful to the management in taking some decision about the particular person’s promotion & transfer etc.

SCL records personnel records by filling method for each employee. Record file contains information regarding life of an employee i.e. age, sex, date of birth, marital status, children etc. and details regarding job i.e. experience, educational qualification, leaves health and safety, discipline etc.

Personnel records consist all the necessary information about the employees like their performance, their contribution to the unit, attitude, behavior etc.

The main benefit of keeping a personnel record is ‘any reference about any employee can be seen in the register of personnel record at any time.”

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M A R K E T I N GDEPARTMENT

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: M A R K E T I N G D E P A R T M E N T :

Contents

Sr No.

Particulars Page No.

1 Introduction 1042 Organisation Structure of

marketing Department105

3 Product Planning 1074 New Product Development 1085 Marketing Segmentation 1096 Pricing Policy 1117 Channel Of Distribution 1128 Sales Promotion 1139 Advertisement 11510 Branding 11711 Slogan 11912 Competitors 12013 Market Share 12114 Marketing Research 12315 International Marketing 124

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1 - I N T R O D U C T I O N

In modern competitive age, Marketing plays an important role in the business for the accomplishment of certain goal. Someone truly defines, “Nothing happens our economy until somebody sells something.” It states the importance of the marketing. According to PHILIP KOTLER, “Marketing as the human activity directed at satisfying needs and wants through exchange process.” Every industry is in search of profitable market for its product.

Marketing department is the ‘Eye’ of the organisation. Marketing management may be defined as a process of management of marketing programs for accomplishing organisational goals and objectives. Marketing management represents an important functional area of business management efforts for the flow of goods and services from the procedure to the consumers.

“Marketing is the creation and delivery of standards of living to the society.” Marketing management represents marketing concepts in action i.e. preplanned demand management under customer oriented marketing philosophy.

In this competitive age, each firm tries to increase sales volume and market reputation by providing consumer satisfaction and quality products.

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2 - O R G A N I S A T I O N S T R U C T U R E O F

M A R K E T I N G D E P A R T M E N T

As we know that each company has its own marketing department. Marketing organisation is made up of people activity, authority, responsibility and relationship for the purpose of achieving marketing objects.

Marketing department has got most dynamic functions to do, which needs marketing experts, enthusiastic sales personnel, target oriented and motivate sales manager etc.

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The organisation chart of marketing department of Saurashtra Cement Limited is as follows.

General Manager (Marketing)

Dy. Manager (Marketing)

Assistant Manager (Marketing

Sales Officer

Head Clerk

Dispatch Salesmen

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-: THE MARKET SCL :-

BODYOF

BUYERS

BODYOF

SELLERS

MARKETTHE

CIRCLE OFEXCHANGE

MARKET

COMMUNICATION

FEEDBACK

INFORMATION

SATISFACTION&DISSATISFACTION

FLOW

OF

FLOW

OF

MONEY

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3 - P R O D U C T P L A N N I N G

Product planning is essential task of marketing department because of it is based stone of the functions of marketing. In simple words, product planning means deciding about the product in the present what to do in the future in term of product items, utilities of the product, design of product, price of the product, modification of present product etc. Thus, product planning is essential in the present dynamic market situation.

Today, there is tough competition prevailing among the cement manufactures. Thus, each manufacturer has to planned its product in such a way that it own demand in the market.

In SCL, product planning is done keeping in view the demand as well as supply factors.

If the company finds that the demand for cement is increasing than automatically it increases the production and vice versa. However there are so many other factors which are also considered while planning the product like availability of raw material, availability of manpower electricity etc.

Lazo and Carbin truly defines that “Planning is looking ahead to where we want to go and obstacles we are likely to encounter in doing it”.

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4 - N E W P R O D U C T D E V E L O P M E N T

Frequent changes in the environmental conditions of the market take place in case of all products, consumers’ needs, wants and their expectations changed from time to time. All these changes make it compulsory for every businessman and industrialist to develop a new product.

Every industrial enterprise wants to capture a major share of the market to defeat their competitors. It is therefore necessary for the enterprise to represent its product in the market in the new and improve style to attract the consumers. But new product development involves greater risk and cost because the product is new for both the company as well as market. Despite new product development is the life sources of the company’s future.

SCL produces the best quality of cement and clinker. So there is no need for them to develop a new product but still for fulfilling the requirement of small and less quantity buyers, company developed the new small pack available in 5kgs. And 10kgs. And brand name is given as ‘CHOTU HATHI’

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5 - M A R K E T S E G M E N T A T I O N

Market segmentation represents an important recent advancement on marketing thinking and strategy. The modern marketing is customer oriented. So it is very necessary to have a clear picture of the customer’s characteristics, which are not alike. Customers are may differ in their wants, purchasing power, geographic locations, buying attitudes, tastes, habits, nature, interest etc. So all the needs of a consumer can not be satisfied with the same product. Such selection of subject as a homogeneous gray is called ‘Market Segmentation’

As viewed by WILLIAM J. STANTON, “Market segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub markets or segment, each of which tends to be homogeneous in full significant aspects”.

As concerned to SCL, the customers who require cement in bulk quantity can buy Hathi Cement and those who want cement in small quantity can have Chotu Hathi available in 1 kg., 5kgs. and 10kgs. Packs. Generally, builders use Hathi Cement but sometimes small packs are also required for repairs so they can go for the Chotu Hathi.

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As per quantity of the cement

Market of SCL is also segmented according to demand.

MARKETSHARE SEGMENTATION 50% GOVT. OF INDIA 30% EXPORT MARKERT 20% SCATTERED MARKET

HATHI CEMENT For constructions, Cement Product

Manufactures, Bulk Buyers

CHOTU HATHIFor Repairs & Small

Users

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6 - P R I C I N G P O L I C Y

The term price is used to mean the money of any product or service. Price is an important aspect of marketing. As defined by an economist, “Price is the exchange value of a product or service always expressed in terms of money”. Thus, we can say that price is the agreement between sellers and buyers concerning what each receives. Pricing is a very critical decision in marketing management. The main objective of the firm, that is to earn a profit very much depends upon the correct price decision.

In simple words, pricing decisions means decision of determining the price of a product. The price of a product must be determined in such a matter as to after a reasonable amount of profit to the manufacturer a reasonable remuneration to middlemen and the maximum satisfaction to consumer.

The SCL has followed such pricing policy, which can promote its sales considerably. While fixing the right price the company takes into account cost of production, prevailing market trend pricing policy of competitors etc.

SCL has adopted flexible and reasonable pricing policy. At the end of every month, directors of each zone, marketing officer meet together at the marketing office. They check the suitability of the current price in the right of current degree of competition, changes in demand, advertising and other services etc. then they fix up their product price.

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7 - C H A N N E L S O F D I S T R I B U T I O N

Channel of distribution means the proper way or proper path through which the distribution performs the work of moving goods from producers to consumers. As viewed by Richard Buskirk, “Distribution channels are system of economic instruction through which a producer of goods delivers them in to the hands of their users.” In other words, channel of distribution is a route through which goods move from the place of production to the place of consumption.

There are different channels of distribution, i.e. goods may be passed to the consumers through wholesaler and retailer or only through retailers or only through wholesalers or directly by producer to consumers. The producer may choose the best channel of distribution, which is favourable for the company.

SCL has selected the following channel of distribution.

COMPANY

DISTRIBUTOR / STOCKIST / DEALERS

SUB-DEALERS

CUSTOMERS

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8 - S A L E S P R O M O T I O N

Sales promotion is the step taken to increase the quantum of sales of the product. In this competitive age, sales promotion is necessary for boosting up the sales and contributes more market share. A vital link between personal selling and advertising is represented by the function of sales promotion. Sales promotion helps salesmen to do a better job of selling by making advertising work more effectively. It is a vital function of modern marketing.

“Nothing happens until somebody sells something”. The sales promotion activities help in promoting the sales of the concern effectively. It plays an important role in today’s competitive world.

SCL gives more weight age to sales promotion in comparison with other similar companies. SCL is mostly concerned with dealers of cement, masons and contractors. They are inspired by the company by giving following promotions.

They arrange dinner for contractors, dealers and masons They conduct meeting with these persons and discuss about

the quality, changes in products as well as performance of cement sold by them.

SCL gives cash discount as well as quantity discount to their dealers and contractors.

SCL provides entertainment shows and invites contractors, dealers and masons with their families.

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SCL gives valuable items to them based on their sales performance.

For e.g. Mr. Hasubhai Jadav of Mahadev Cement Sales, Dhandhuka receives two motorcycles from Mr. Anil Srivastava. He was awarded for recording the highest sales for Hathi Cement in Ahmedabad.

At Rajkot district dealers receive gold coins based on their sales performance.

In SCL, its dealers and customers are gifted valuable items. They are gifted useful items like calendars, key chains, pens etc. as a part of sales promotion.

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9- A D V E R T I S E M E N T

In this complex business world, no industry or company can survive without advertisement. We have to believe that advertising is a form of mass communication. The business needs the helps of advertisement to make the business prosperous. It is paid for by a seller or manufacturer who wants to communicate about his product or services to his customers. The main role that advertising does is that it promotes the sales and therefore it is also called promotional activity.

The American Marketing Association has defined advertising as “Any paid form of non personnel presentation and promotion of goods, services or ideas by an identified sponsor”.

SCL advertise their product by the means like newspaper, wall paints, and hoardings with effective slogan. To sand first in the market and increase popularity SCL has adopted many advertising media.

The Hathi Utsav at Mahuva and Baroda saw important roads, cross roads and kiosks decorated with banners. Cement shops belonging to dealers and sub-dealers were also decked up.

SCL also advertise by distributing gifts to masons, contractors etc. i.e. actual users of cement.

On the festival Navratri, Company distributes audiocassettes of Ras Garba free of cost and in that cassettes slogans are also recorded for advertisement.

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There are so many ways of advertising, which the company uses. The company uses following media to advertise their product.

Newspapers Magazines Radio Wall Paintings Hoardings Audio Visual Advertising Gift Articles Posters

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10- B R A N D I N G

In this age of competition, every producer wants to capture the major share of the market. For this purpose, he wants that his product should have different image. So that it may attract a maximum number of customers. To have a different image, the producers determine a particular brand name of the product.

According to American Marketing Association, “A brand is a name, firm, sign, symbol or design or a combination of them which is implemented to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”.

As concerned to SCL, it has adopted the suitable brand name for its product. The cement produced by SCL is branded as ‘HATHI CEMENT’.

Thus, branding is a means of product identification. Popularity of brand creates a separate market for the product. Really ‘The stronger the brand, the stronger its market’.

Branding is the management process covering various activities. In which adopting brand mark is the most important

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activity. Brand mark is in the form of a symbol, design or distinctive coloring or lettering. When a brand mark is registered and legalized it becomes a ‘Trade Mark’.

SCL has adopted following ‘Trade Mark’.

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11- S L O G A N

All the well known companies have selected effective and meaningful slogan to communicate with their customers about the product in few words. Company has selected the slogan, which is easy to understand for the customers. The Slogan gives the main ideas about the product. Sometimes, company puts the slogan in totally emotional way that directly affects the customers’ feelings. The slogan attracts the customers which is beneficial for the company.

SCL has also put forward some good slogans in Gujarati as well as in English, which are as follows.

ccDHA]TL V[JL 9;M9; 8S[ JZ;M JZ;Pcc

“Hathi Cement, not Just Strength, But Durability.”

cc 5C[,F N[XDF JB6FI 5KL 5ZN[X DF\ J5ZF.Pcc

“Created with pride,Build with Elephant.”

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ccZC[ ;\TFGMGF ;\TFG | V[JF DHA]T A\WFI DSFGPcc

12 - C O M P E T I T O R S

In today’s world, there is a competition in ach and every field. Hence, the first priority for any firm is not to attain maximum profit but to survive in the market.

Competitors are those who sell the goods and services of the same and similar description in the same market. Apart from competition on price factor, there are other forms of competition like product differentiation. It is therefore necessary for each firm to identify and monitor its competitors.

According to PHILIP KOTLER “The best way for a company to grasp the full range of its competition is to take the viewpoint of a buyer, what does a buyer think about that which eventually leads to purchasing something.”

SCL’s main competitors are as follows;

GUJARAT AMBUJA CEMENTADITYA BIRLA’S KAMAL CEMENTALTRATECH CEMENTTATA SUCH CEMENT

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13 - M A R K E T S H A R E

Every industrial enterprise wants to capture a major share of the market to defeat their competitors. Each firm always tries to expand its market share.

Market share of Hathi Cement compared to its competitors.

In Gujarat Region :-

Gujarat Ambuja Cement 26.50%Hathi Cement 20.00%ACC 18.00%Sandhi Cement 14.50%Kamal Cement 10.00%Others 11.00%

In Saurashtra Region :-

Gujarat Ambuja cement 27.00%UltraTech Cement 16.50%ACC 13.50%Hathi Cement 12.00%Sandhi Cement 11.50%Binani Cement 08.50%Others 11.00%

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From above we can say that Hathi cement is at on second position in Gujarat and Fourth position in Saurashtra.

Market Share Of Hathi Cement :-

In Gujarat Region :-

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14 - M A R K E T R E S E A R C H

The American Marketing Association has defined marketing research as, “The gathering, recording and analyzing of all facts about problem relating to the transfer and sales of goods and services from producers to consumers”. Marketing research involves a study of a consumer preferences, habits and attitudes. It helps us to decide how market operations should be directed. It also involves an examination of trends, so that its findings indicate the future pattern of the market and assist in shaping marketing policies.

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In SCL, regular survey of dealers and customers are done to identify the need and expectation of the customer to mark positive and negative points of their marketing strategies and products. By this way company can come to know about the marketing problems and remedies of it.

15 - I N T E R N A T I O N A L M A R K E T

International Marketing means trade activity, which crosses the geographical boundary of a country. In the other words, when buying and selling activity take place between two or more countries this is know as International Marketing. The term buying refers to ‘import’ and selling refers to ‘export’ in international market. The modern transport services have made international trade more speedy.

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SCL exports its products to many foreign countries. Foreign purchases never accept any fluctuations in the quality of cement. For export SCL has to produce high strength cement. SCL exports to.

MALAYSIA KOREA SRI LANKA BANGLADESH SOME CONTRIES OF GULF

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F I N A N C EDEPARTMENT

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: F I N A N C E D E P A R T M E N T :

Contents

Sr. No Particulars Page No1 Introduction

2 Organization Chart of Finance Department

3 Financial Planning4. Capital Structure5 Management Of Working

Capital6. Leverage Analysis7 Ratio Analyses

I N T R O D U C T I O N

In today’s dynamic and ever changing world, finance is the lifeblood of any business. Finance is the pillar of the industry because it plays a vital role of supporting all the business activities. Any economic activity is not possible without

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appropriate arrangement of finance. Thus, Financial Management is the most require too.

Someone rightly defined, “If you have money, and you manage it properly, you will make more money.” It means the management of finance is necessary for any industry.

Financial Management is an essential part of any economic activity. Financial Management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. According to Joseph and Massie, “Financial Management is the operational activity if a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation.

So, we can say that finance is the central point of any organisation.

2 - O R G A N I S A T I O N C H A R T O F

F I N A N C E D E P A R T M E N T

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Because of vital importance of financial decision to a firm, it is essential to set up a sound and efficient organisation for the finance functions. The ultimate responsibility of carrying out the finance function lies with the top management.

SCL has kept separate department of finance. The organisation chart of finance department of SCL is as follows:

3 - F I N A N C I A L P L A N N I N G

According to Newman, “Planning is deciding in advance that is to be done in the future time period.” “Financial planning

Vice President (Finance)

General Manager (Finance & A/C)

Dy. General Manager (Finance & A/C)

Sr. Manager (Accounts)

Assistant Manager(Finance)

Sr. Officer(Costing)

Dy. Manager(Finance)

Sr. Officer(Finance)

Gr. Officer(Costing)

Cashier

Assistant Officer Assistant Officer

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means deciding in advance, the financial activities to be carried on to achieve the basic objective of the firm.” The basic objective of the firm is to get maximum profit out of minimum efforts. The planners of financial policies must see that adequate finances are available with the concern when they are required because an inadequate supply of funds will hamper operations and may lead to difficulties. Therefore a proper financial planning is necessary for the smooth running of the business.

SCL plans finance as follows:

1-Determining Financial Objective :-

SCL firstly determines for how long period the finance is require i.e. for short term or long term objectives. By considering the financial objectives, SCL makes a determined effort to arrange the necessary funds at proper time, which is necessary for the smooth running business.

2-Formulating Financial Policies :-

After words, SCL formulates financial policies to be followed by the planners to achieve the financial objectives

3-Developing Financial Procedure :-

Developing financial procedure relates to the control and administration of financial activities. SCL subdivides financial activities

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and delegates authorities to subordinates to perform such activities

4-Reviewing Financial Plan :-

SCL reviews plan from time to time in the light of changing economic, social, and business environment.

4

5 - C A P I T A L S T R U C T U R E

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Capital structure is the important aspect of the financial management. According to Grestenberg, “The make up of a firm’s capitalization.”

The asset of company can be financed either by increasing the owner’s claims or the creditors claims. The owners’ claims increase when the firm raises funds by issuing ordinary shares or by retaining the earnings, the creditors’ claims increase by borrowings.

Thus, company procures funds by issuing various types of securities i.e. ordinary shares, preference share, bonds and debentures.

In broader sense, capital structure includes all the long-term capital. It decides the proportion of funds to be raised by issue of ownership capital (i.e. ordinary share capital and preference share capital) and the amount to be raised by borrowings (i.e. debentures, bonds, public deposits etc.) taking into account the cost of capital (i.e. dividend or interest) and its impact in income and stability of the company.

Generally even company would by towards maintaining optimum capital structure which means an idea combination of borrowed and owned capital that may attain the managerial goal i.e. maximizing the market value for share or minimization of cost of capital.

SCL has framed its capital structure as follows :126

Particulars

Share Capital Reserve & surplus Secured loan

Deferred payment creditsUnsecured loan

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8 - M A N A G E M E N T O FW O R K I N G C A P I T A L

The term working capital is commonly used for the capital required for day-to-day working in a business concern. As viewed by Shubin, “Working capital is the amount of funds necessary to cover the cost of operating the enterprise.” The concept of working capital is used in two ways i.e. Gross working capital and Net working capital. Gross working capital refers to the firm’s investment in current assets. Net working capital means the difference between current assets and current liabilities.

Working capital management therefore refers to all aspects of the administration of both current assets and current liabilities. In other words, working capital management is concerned to manage the current assets, the current liabilities and the interrelationship that exist between them.

As concerned to SCL, the balance of working capital is as follows :

Total Current Assets Current AssetsLoans and AdvancesTotal Current assets Total Current Liabilities Current LiabilitiesProvisionsTotal Current Liabilities

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Gross Working Capital :-

= Total Current Assets

=

Net Working Capital :-= Total Current Assets - Total Current Liabilities==

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12 - L E V E R A G E A N A L Y S I S

The dictionary meaning of the ‘Leverage’ refers to “an increased means for accomplishing some purpose.” However in the areas of finance, the term leverage has a special meaning. It is used to describe the firm’s ability to use fixed-cost assets or funds to magnify the return to its owners. Christy and Roden define leverage as the tendency for profits to change at a faster rate than sales.

There are primarily two types of leverages.

1) OPERATING LEVERAGE2) FINANCIAL LEVERAGE

1-Operating Leverage :-

The operating leverage may be defined as “the firm’s ability to use fixed operating costs to magnify the effects of changes in sales on its Earning before interest and Taxes (EBIT).” The operating leverage takes place when a change in sales produces a greater change in EBIT.

Operating leverage results when changes in value of sales produce a wide fluctuation in the operating profits of the firm.

The firm is said to have a high degree of operating leverage if it employs a greater amount of fixed cost and a smaller amount of variable cost. On the other hand, a firm will have a low operating leverage when it employs a greater amount of variable costs and a smaller amount of fixed costs.

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Operating Leverage = Contribution EBIT

Degree of operating leverage = Percentage change in EBIT Percentage change in sales

2-Financial Leverage :-

Financial leverage results from the presence of fixed financial changes in the firm’s income statement. These fixed charges are too paid regardless of the amount of EBIT available to pay them. Financial leverage is concerned with the effects of changes in EBIT on the earnings available to equity shareholders.

In simple words, the effects on earning by the use of fixed cost security (preference share & debentures) are called financial leverage.

Financial leverage = EBIT EBT

Degree of financial leverage = Percentage change in EPS Percentage change in EBIT

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SCL suffers the losses, so it is not possible to calculate financial leverage.

14 - R A T I O A N A L Y S I S

One of the most important financial tools which have come to be used very frequently for analyzing the financial strength and weaknesses of the enterprise is Ratio Analyses. Ratio analysis is a technique of analysis and interpretation of financial

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statement. By calculating various ratios, we can come to know about the financial position of the company.

For evaluation of SCL, I have calculated some ratios which are as follows.

Note:- All Figures Are In Lacs Rs.

1-Gross Profit Ratio :-

Gross profit ratio shows part of the gross profit in net sales during the year. This ratio is usually expressed in percentage from.

GROSS PROFIT RATIO = GROSS PROFIT 100 SALES

2008-2009 2007-2008

2-Net Profit Ratio :-133

Net profit ratio shows percentage of net profit in sales. Higher the net profit ratio, higher earnings to the company.

NET PROFIT RATIO = NET PROFIT 100 SALES

2008-2009 2007-2008

3-Proprietary Ratio :-

Proprietary ratio shows relationship between shareholders fund and total assets of the company. Proprietary ratio shows general financial position of the company.

PRORIETORY RATIO = TOTAL SHARE HOLDERS FUND TOTAL ASSETS

2008-2009 2007-2008

4-Current Ratio :-134

Current Ratio shows relationship between current assets and current liabilities. This ratio shows ability of the company to cope up with current liabilities.

CURRENT RATIO = CURRENT ASSETS CURRENT LIABILITIES

2008-2009 2007-2008

5-Liquidity Ratio :-

Liquidity ratio shows relationship between liquid assets and liabilities. This ratio shows liquidity of the company to pay liquid liabilities.

LIQUIDITY RATIO = LIQUID ASSETS LIQUID LIABILITIES

2008-2009 2007-2008

6-Fixed Assets Turnover Ratio :-

The fixed assets turnover ratio measures to know the efficiency with which the firm is utilizing its investment in fixed assets. This ratio indicates the extent to which the investments in fixed assets contribute towards sales.

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FIXED ASSETS TURNOVER RATIO

= SALES FIXED ASSETS

2008-2009 2007-2008

7-Debt Equity Ratio :-

Debt Equity Ratio shows relationship between long term debt and shareholders fund.

DEBT EQUITY RAIO = LONG TERM DEBT SHARE HOLDERS FUND

2008-2009 2007-2008

8-Debtors Ratio :-

This ratio indicates the extent to which the debts have been collected in time. It gives the average debt collection period. The ratio is very helpful to the lenders because it explains to them whether their borrowers are collecting money within a reasonable time or not.

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DEBTORS RATIO = DEBTORS NUMBER OF CREDIT SALE DAYS IN YEAR

2008-2009 2007-2008

9-Creditors Ratio :-

This ratio indicates the extent to which the credit has been paid in time. It gives the average credit payment period. The ratio is very helpful to the lenders because it explains to them whether their borrowers are paying money within a reasonable time or not

CREDITORS = CREDITORS NUMBERS OF CREDIT PURCHASES DAYS IN A YEAR

2008-2009 2007-2008

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S W O T

A N A L Y S I S138

: S W O T A N A L Y S I S :

‘SWOT ANALYSES’ calls for strength, weakness, opportunities and threats in relation to a business.

1-Strength :-

The major strength of SCL is its brand name and strong quality. It has got the reputation of strength like elephant.

SCL exports its product to many foreign countries. For export SCL has produce high strength cement. There are so many customers who buy Hathi Cement due to its brand name.

Thus, brand name and strong quality are the major strength of SCL.

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2-Weakness :-

The main limitation of SCL is the inefficient management of finance. It does have the strong support of Mehta Group generating the enough funds. Yet the utilization of the same is not comprehensive. Also the marketing management of SCL is not well developed as it has to continuously effort of to fight with the competitors yet it can not get percent success.

3-Opportunities :-

Cement is vital building material. Cement is one of the most important material for constructing building, pools, bridges, roads etc. Without cement one could not thing even of constructing a building. With growth in population, the need of demand for shelter also goes up which ultimately affects significantly to the whole cement industry.

Thus, construction and reconstruction activities are increasing day by day. Therefore it is an opportunity for the company to increase its demand.

4-Threats :-

The main threat is the demand generation for the company and the hot news is that above 50% are not using ‘Hathi

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Cement’. Now a days there is a competitions, many cement companies incurring losses. For SCL, there is a main threat of competitors.

F U T U R EP L A N

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: F U T U R E P L A N :

The promoters of the company, Mehta Group is well known group in all over the world. The company has a great support of Mehta Group. Now a days the company suffers the losses. But it does not mean that there is no chance of future progress.

As we all know that the cement is a basic necessity of any constructional activity. The need or demand of cement increases day by day. From this angle we may say that SCL would have better prospects in future. Also SCL exports its products in many foreign countries. It is considered that SCL enables to earn precious foreign exchange which makes its future bright.

From seeing the above we can say that company’s future is bright and its market will increase day by day.

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SUGGESTION

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: S U G G E S T I O N:

To give suggestion to Hathi Cement Pvt.Ltd which is so systematic

and well organized is really very difficult, but yet I have tried my best.

The company should carry out more researse activities to reduce the cost of production.

The company should try to cover maximum market with the help sales promotion.

The company should try to develop its market in foreign countries too

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CONCLUSION

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: C O N C L U S I O N :

Conclusion is the finishing or final touch to the whole report for the visited unit. Industrial training at Saurashtra Cement Limited is my experience which has enriched my knowledge regarding the practical aspects.

The SCL is the company which suffers losses since few years. It does not mean that the working condition of the company is not good.

I found that there is a good administration in the firm and good utilization of total capacity. Its personnel department suggests that they are aware from the value of personnel and so manage them very systematically. Its production departments makes determine efforts to maintain the best quality of product. Marketing department always tries to expand its total market shares. Beyond doubt, we can say that financial department works so well but finance position of the company is not so good.

Now a days, company suffers losses due to many invisible reasons. But it tries to progress slowly and gradually by reducing the losses. We may say that the present working condition of the SCL is well.

I will them all my heartiest best of luck for their future.

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B I B L I O G R A P H Y

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: B I B I L I O G R A P H Y :

Personnel Management :-

Personnel Management- Dr. C. B. Memoria- S. V. Gankar

Personnel Management & Industrial Relations- Dr. M. M. Verma- R. K. Agrawal

Human Resources & Personnel Management- K. Aswathapa

Marketing Management :-

Marketing Management- Philip Kotler

Marketing Management- Dr. M. M.ma- R. K. Agrawal

Marketing Management- William Stanton

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Financial Management :-

Financial Management- I. M. Pandey

Financial Management- Dr. S. N. Maheshwari

Financial Management- Dr. M. M. Verma- R. K. agrawal

Fundamentals of Financial Management- Prasanna Chandra

Annual Reports Of SCL :-

Year 2006-2007, 2007-2008, 2008-2009, 2009-2010.

Website :-

www.mehtagroup.com

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