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MPBIM 1
A STUDY ON THE ORGANISATIONAL STRUCTURE OF MCL
CONDUCTED AT
Submitted in Partial Fulfillment of the requirement of Third Semester of the Post Graduate Program in MP Birla Institute of Management, Bangalore
UNDER THE GUIDANCE OF
EXTERNAL GUIDE INTERNAL GUIDE Mr. Habib-ur-Rahaman Dr.N.S.Vishwanath AGM (Bangalore) Faculty MPBIM MCL
SUBMITTED BY
ABHIJIT.SHETTY
Reg.No: 04XQCM6001
MP BIRLA INSTITUTE OF MANAGEMENT
RACE COURSE ROAD, BANGALORE-560 001 2005-06
MPBIM 2
DECLARATION
I here by declare that this Internship report entitled “ORGANISATION
STRUCTURE OF MCL” is prepared during the academic year 2005-2006 under
the guidance of Dr.N.S.Vishwanath (faculty, MP Birla Institute of Management).
I also declare that this project report has not been submitted to any other University /
Institute for the award of any other degree, diploma, fellowship or other similar
title or prizes.
Date : Place- Bangalore ABHIJIT.SHETTY
(O4XQCM6001)
MPBIM 3
ACKNOWLEDGEMENT At the successful completion of my internship study I would like to extend my
gratitude to all those without whose valuable guidance and support it would have not
been possible.
With all sincerity and respect, I would like to express my gratitude to Dr. N S
Malavalli(Principal) for giving an opportunity to have Corporate Exposure and
Learning at MURUDESHWAR CERAMICS LIMITED.
I would like to express my sincere thanks to DR.N.S.Vishwanath(internal guide) for
helping me in various aspects of the study.
I am deeply indebted to M.R.Habib–Ur-Rahman (AGM, MCL) having given me an
opportunity and guidance, invaluable help and cooperation to successfully complete
the project.
I am grateful to Harish Kumar Shetty (project executive, MCL) for his help and
cooperation.
I am very thankful to the management and staff of Murudeshwar Ceramics limited
for their friendly nature and invaluable cooperation during my study.
MPBIM 4
EXECUTIVE SUMMARY
The internship study is done at Murudeshwar ceramics limited Bangalore; the main
objective behind the study is to know the functioning of various departments and a
microscopic study in the finance department of the organization.
MCL commenced its business in the year 1987 promoted by R.N.shetty a noted
civil contractor in Karnataka.
Its main branch is situated in Hubli(Karnataka state) and has several show rooms all
over India.
MCL is having four functional departments viz Finance, production, marketing, and
R&D.
All the departments are handled by qualified professionals who are answerable to
the chair man; they work as per the mission of the company. All the departments
work with great coordination with definite plans and policies laid down by the top
management.
I did my microscopic study in the finance department; here the main objective was
to know the financial position of the company by way of ratio analysis. It revealed
that MCL is a very sound company with a very effective utilization of its financial
resources.
MPBIM 5
CONTENTS
Sl.No Particulars Page no.
1. Objectives of the study 1
2. Product profile 2
3. Industry profile 5
4. Profile of R N Shetty 10
5. Company profile 15
6. Production Department 30
7. Marketing Department 33
8. Research & Development Department 37
9. Finance Department 39
10. SWOT Analysis 56
11. Conclusion & Recommendations 57
12. Bibliography 59
MPBIM 6
OBJECTIVES OF INTERNSHIP STUDY
The internship study conducted at MCL was a small effort to have the much needed
corporate exposure and to know the real applications of management principles.
The following are the main objectives of the internship study: �
To gain first hand experience from the industry. �
To integrate theoretical concepts with practical experience. �
To make assessment of the organization in the industry. �
To assimilate and understand the functions of each departments. �
To do a microscopic study in the finance department. �
To analyze the firms financial position.
MPBIM 7
1 PRODUCT PROFILE
What are vitrified tiles?
Vitrified tiles are ceramic tiles with high percentage of vitrification and less amount
of water absorption; vitrification is nothing but a development of glass phase inside
the tile during firing process. This is mainly due to melting of some constituent in
the body
Difference between vitrified tiles and glazed tiles;
In ceramic tiles percentage of vitrification is less compared to vitrified tiles and
capacity of water absorption is more (4-6%). Due to higher heat, to avoid this water
absorption top surface of glazed tiles is given a glossy coat. This glossy coat is also
called glaze. Vitrified tile is homogeneous body, it does not have a separate coat of
glass, and also water absorption is as less as 0.5% in case of vitrified tiles.
PROPERTIES OF VITRIFIED TILES:
The following are some important properties of vitrified tiles:
1. Hardness: it is the resistance of a material to an indentation by any other
material. vitrified tiles have hardness of 7-8 MOH(a standard tool-MOH hardness
value)
2. Strength: it is a measure of the load a material can bear without formation of
a crack or permanent deformation. Vitrified tiles have strengths greater than 300
kg/mm2
3. Zero water absorption property: Since vitrified tiles have high percentage of
vitrification they are less porous and hence they have less percentage of water
absorption. Water absorption test is conducted by soaking a tile in the water. The
percentage increase of mass of tile is the percentage of water absorption. In case of
vitrified tiles water absorption is less than 0.5 percent
MPBIM 8
4. Abrasion resistance: since vitrified tiles have MOH’s hardness value of 7-8,
its very difficult to abrade it in normal condition. Although any harder material such
as topaz or diamond can abrade it.
5. Acid resistance: Vitrified tiles have got resistance against wide range
chemicals including acids and alkalis except hydro fluoric acid
6. Stain resistance: since vitrified tiles are non porous they have a very good
resistance against stains. Stains may be formed on the surface due to micro pores but
they can be removed using acids or alkalis, unless stains are of ink or marker which
are hard top remove
Uses of vitrified tiles:
Vitrified tiles can be used for the following purposes:
1. Residential
2. Industrial
3. Commercial
4. Decorative
In practice vitrified tiles are mostly used in commercial complexes and offices. In
case of residential complexes vitrified tiles are used at the entrances and passage
ways, in case of commercial complexes vitrified tiles are used for the high traffic
areas such as lobbies, passage ways etc. this also can be used as industrial flooring
as they are acid resistant
DIAMOND TILE-A NEW EMERGING PRODUCT OF MCL
The company started manufacturing synthetic granite in the brand name Naveen
Diamond tile in the year 1994 Jan with the cost of Rs.14 crores. The manufacturing
process of this new synthetic granite (vitrified porcelain tile) is the same as ceramic
tiles. Calibrating the surface with diamond and carbide abrasive tools does the
polishing. This operation removes the hard part, the surface of the tiles and opens
the micro pores.
MPBIM 9
This was done as a part of the diversification program.
Features of Naveen Diamontile:
Hardness- Diamontile are fully vitrified porcelain tile, it has 8 MOH’s scale of
hardness. (Even granites shows 6 MHO’s scale which seems to be soft)
Look- Diamontile looks almost same as natural granite
The different sizes available are:
Naveen Diamontile are available in following sizes
16 x16 inches
20 x 20 inches
24 x 24 inches
Technical specifications of Naveen Diamontile Tiles:
Sl. No. Parameters Specification
1 Water absorption 0.5% max
2 Abrasion resistance Class IV (PET)
3 Chemical resistance No visible alteration except hydrofluoric acid and it’s components
4 Crushing strength > 350kg /cm2
5 Warpage ± 0.5%
6 Thickness 8.5mm ± 5%
7 Size Uncut 292, cut 284
8 Size variation Uncut ± 2mm, cut ± 1.0mm
MPBIM 10
2. INDUSTRY PROFILE
What is ceramic tile?
The word ceramic originates from Greek word kermaic which means the art of
pottery. In India pottery manufacturing was started in early 300 BC the second
world war came as a boon for the ceramic tile industry in India, during the war
period certain metal and metallic utensils were banned and hence the production of
ceramic products was geared up to meet the demand of war hospitals.
Clay is the general name for the earth that forms a paste when mixed with
appropriate amount of water and that hardens when heated moist clay is composed
of silica and alumina while kaolin’s are their purest forms pressing higher grades of
clay after blending them with flint, feldspar and talk forms wall and floor tiles.
Ceramic tiles are broadly classified into wall and floor tiles with sub classification of
Glazed and Matt finish tiles.
OVERVIEW:
Tiles have been used as surfacing materials for thousands of years because of their
beauty and durability. They have been produced in most of the countries in the
world because of the abundance of raw materials and simplicity in the
manufacturing technology. These two factors together with the employment
generating capacity of this labour intensive industry have attracted the interest of
developing countries.
ORIGIN IN INDIA:
When the government of India banned the import of ceramic tiles in 1958 the
production of glazed tile began on a small note in 1985 spartek ceramics limited
stormed the market with the mat and semi-mat finished tiles which were
manufactured using the single firing process.
MPBIM 11
Two companies viz. H&RJOHNSON INDIA limited and SOMANI PILKINGTON
limited had the lion share to them which was predominantly glazed tile.
Changing tastes and preferences of customers:
Many market surveys have indicated that in case of wall and floor covering
consumer preference are shifting away from textile, wood, stone etc to tiles.
In any house the tiles have not only confined to kichens and bathroom but it has now
moved into the halls corridor and in the balconies, floors once neglected are getting
attention its utility as industrial flooring increasingly appreciated.
The tile may be appear to be a costlier surfacing material initially but if the cost is
spread over the full life cycle of the building it becomes cost competitive.
Like other consumer products preferences and fashion on ceramics tiles also keeps
slowly changing over a period of time presently the customer preferences have been
changed in terms of colours, designs, shades, etc..
Present market scenario of Indian Tile Industry
Ceramic industry in India is about 100 years old. It comprises ceramic tiles, sanitary
wear and crockery items. Ceramic products are manufactured both in the large and
small sectors with wide variation in type, size, quality and standard. India ranks 7th
in the world in terms of production of ceramic tiles and produced 200 million square
meters of ceramic tiles out of a global production of 6400 million square meters
during 2003-2004. State of the art ceramic goods are being manufactured in the and
the technology adopted by the Indian ceramic industry is of international standard.
MPBIM 12
CAPACITY AND PRODUCTION
There are, at present, 16 units in the organized sector with an installed capacity of21
lakh MT. It accounts for about 2.5% of world ceramic tile production Ceramic tiles
industry has been growing at about 12% per annum. In India, per capita
consumption of ceramic tile is 0.15 sq. mt per annum compared with 2 sq. mt per
annum in China and 5-6 sq mt Per annum in European countries. With the growth in
the housing sector the demand of ceramic is expected to increase. Indian tiles are
competitive in the international market. These are exported to East and West Asian
countries. The exports during 2003-04 were about Rs. 180 crore.
Sanitary ware is manufactured both in the large and small sector with variations in
type, range, quality and standard. At present there are 7 units with capacity of
86,500 ton per anum and, there are about 200 plants with a capacity of 50,000 ton
per annum in small scale sector. The industry has a turn over of Rs. 400-500 crore.
This industry has been growing at the rate of about 5% per annum during the last 2
years. There is significant export potential for sanitary ware. These are presently
being exported to East and West Asia, Africa, Europe and Canada. The exports were
of the order of Rs.60 crore during 2003-04.
Pottery ware signifying crockery and tableware are produced both in the large scale
and small-scale sector. There are 16 units in the organized sector with a total
installed capacity of 43,000 ton per annum. In the small-scale sector, there are about
1200 plants with a capacity of 3 lakh tonnes per annum. Majority of the production
of ceramics tableware is of bone china and stoneware. This industry in India is
highly labour intensive while in USA, UK, Japan and other countries there is full
automation. Quality of finished products, design and shapes in India are still below
international standards. The equipments are old and need to be updated to meet
international standard. The export of pottery ware during 2003-04 was of the order
of Rs. 85 crore.
The industry is de-licensed and classified as high priority for industrial use.
Tableware and allied items namely, dinner sets, tea sets, cups and saucers, jars, etc
in stoneware, semi-vitreous ware and earthen ware are reserved for the SSI Sector.
State of the art ceramic goods are being manufactured in the country and the
MPBIM 13
technology adopted by the Indian Ceramic Industry is of international standard. The
scope of modern ceramics is much wider today. During last two decades, there has
been a phenomenal growth in the field of technical ceramics to meet specific
demands of industry such as high alumina ceramics, cutting tools and other
structural ceramics.
MAJOR PLAYERS IN THE INDUSTRY:
The rupees 400 crore ceramic tiles market has 7 leading players with Hand R
Johnson India limited having a dominant presence over 25 % of the market share.
REGIONAL DISTRIBUTION:
The companies with their major market presence are as follows:
Companies Dominant regional presence
H&R Johnson India limited North, South and West
Somani pilkington limited North, North-east and Mumbai
Kajaria ceramics limited North and Mumbai
Murudeshwar ceramics limited South and Mumbai
Bell ceramics limited West
Spartex ceramics limited South and Mumbai
Regency South and Mumbai
MPBIM 14
Pie chart showing market share of different leading ceramic tile companies in
the Indian market.
25%
15%
14%10%
10%
9%
8%3% 6%
H.R.Johnson Murudeshwar SpurtekBell Kajaria SPLSSI Units Regency Others
MPBIM 15
3. PROFILE OF R N SHETTY
IF you happen to travel on the National Highway No 17 from Mangalore to Karwar,
about 30 kms from Bhatkal, a tall arch attracts your attention. About 2 kms from the
arch you will find a picturesque island spread in 18 acres in the Arabian sea, which
is home to lord Shiva’s ‘atmalinga’. The place is called Murudeshwar.
The temple built in the Dravidian architectural style, which was not known to many
till early 1980s, is today attracting large number of pilgrims and tourists from across
the country, thanks to Mr R N Shetty, an industrialist from north Karnataka. It was
this person who has given the island its present shape and responsible for making it
the most desired pilgrim centre in coastal Karnataka. But Murudeshwar will no
longer remain just another pilgrim centre for the people of this country, as it is
emerging as a popular tourist and recreation centre in the days to come. It will soon
get an international standard Golf course and a private beach to attract the tourists
from abroad.
R N Shetty, who celebrated his 75th birthday on August 15, 2003, is not just known
for renovating this beautiful island temple, but also recognized as the visionary
educationist, industrialist and philanthropist. He is among those who have the
courage to believe in their dreams and translate them into reality.
Humble beginning
Rama Nagappa Shetty was born on August 15, 1928, at Murudeshwar in Uttara
Kannada district in a family of agriculturists. His father was the administrator of
Murudeshwara temple. After completing high school education, Mr Shetty started
his career as a civil contractor in Sirsi.
In 1961, he formed R N Shetty & Company, a partnership firm. During the next four
years, the company took up construction of three major projects building bridges on
Honnavar-Bangalore road. In 1966, he moved out of his native district and began
operations from Hubli, a major city in northern Karnataka.
In 1961, he formed R N Shetty & Company, a partnership firm. During the next four
years, the company took up construction of three major projects building bridges on
MPBIM 16
Honnavar-Bangalore road. In 1966, he moved out of his native district and began
operations from Hubli, a major city in northern Karnataka.
In 1967, he formed a joint venture company along with seven other civil contractors
and named it Naveen Mechanized Construction Company Private Limited. The
company bid for construction of Hidkal dam in Belgaum district. However, it did
not live for long suffering huge financial losses. In order to keep it alive other
stakeholders in the company offered Mr Shetty their share. Next year, he took over
the company. In the next eight years, Mr Shetty undertook several projects that
nursed the company back to good health.
Major achievements
Both these companies have executed several major irrigation works and hydropower
projects including construction of dams, canals, tunnels, bridges and buildings.
Major projects include the Hidkal, Tattihalla, Supa, Gerusoppa dams, Rajankollur,
Gundalgera tunnels, 18 tunnels for the Konkan Railway Corporation Limited and
canals for the Upper Krishna Project.
It was during early 1970s that R N Shetty dreamt about making his entry into hotel
business. In 1975, he made his dream debut into hospitality business, by forming
Naveen Hotels Limited. A five-star hotel was constructed to mark the group's foray
into hospitality business in Bangalore which was leased out to Taj Group. It is
presently known as Taj Residency.
Further, the hotels division constructed two more hotel properties in the State, one
each at Hubli and a resort at Murudeshwar. Hotel Naveen is the star attraction in
Hubli and RNS Yatrinivas and Naveen Beach Resort at Murudeshwar. Both these
properties are managed by R N Shetty Group.
While Mr Shetty made it big in construction he always had a desire to set up a
manufacturing unit that will provide jobs to the local people. It began with the
establishment of a 'Mangalore' tile unit. The year 1977 witnessed the birth of
Murudeshwar Tiles Private Limited, a 'Mangalore' tile manufacturing unit. The unit
with a capacity of 40,000 tiles per day is one of the largest Mangalore-tile units in
the coastal region.
MPBIM 17
In 1981, Mr Shetty set up Naveen Structural and Engineering Co Pvt Ltd, which
specializes in skilled fabrication works, specific to construction industry. Their
workshop in Hubli is highly sophisticated, and contains state-of-the-art equipment
and machinery. It manufactures shuttering silos, crest gates and many other
specialized structures in the past.
However, the group's most prestigious industrial project took shape in 1987, when R
N Shetty forayed into the manufacture of glazed ceramic tiles by setting up
Murudeshwar Ceramics Limited (MCL), the only listed company in the group.
Located at Hubli, MCL is one of the leading manufacturers of ceramic and vitrified
porcelain floor and wall tiles in India. It also manufactures natural granites. MCL is
now in the process of setting up its second plant at Karaikal near Pondichery at a
cost of Rs 40 crore to expand its capacity. The company reported Rs 4 crore net
profit on a turnover zof Rs 138 crore for the year 2002-03 and hopes to touch a total
revenue of Rs 180 crore in t In 1993, R N Shetty ventured into power sector with the
setting up Murudeshwar Power Corporation Limited. The company has successfully
developed and commissioned a mini hydel power project of 11.6 MW at Narayanpur
Left Bank Canal in Bijapur district in 1999.
The group has also taken the dealership of Maruti Udyog Limited and has opened
showrooms at Hubli, Bangalore (Yashwantpur and Hosur road) and Murudeshwar.
One of its Bangalore showrooms is in fact the biggest in the country and has been
rated as Maruti's No 1 dealer in India for the last three years. His company has
recently been awarded the Belgaum Bypass and Dharwad-Belgaum roadworks
projects by National Highways Authority of India and roadwork's at Maski in
Raichur district by Karnataka State Highways Improvement Project.
Attracting tourists
With Murudeshwar attracting large number of pilgrims every day (around 1,000),
the R N Shetty Group is now in the process of developing the place into an
integrated centre for religious, tourist and sports centre. It has recently acquired 30
acres of land adjacent to its own 20 acre land and developing international standard
Golf course at an investment of about Rs 5 crore, which will be ready by next year.It
has also acquired land in Karwar for setting up of a 5-star hotel complex with an
estimated investment of Rs 15 crore. The project was cleared during the Global
MPBIM 18
Investors Meet by the State government and the environmental ministry clearance is
currently awaited.
Family and outside
R N Shetty has seven children, four daughters and three sons. Each of three sons has
been given the responsibility of running the group's three main business divisions.
Mr Shetty is the Chairman of the group. However, Mr Shetty does not share the
group's total turnover. But money is not all for Mr Shetty. He works for the
development of the society, a deeply religious person and a philanthropist by nature,
he devotes a great deal of time and money for charity projects. His contributions
have revived several temples, educational institutions and community service
projects in Karnataka and elsewhere.
According to Mr R N Shetty "Egoistic person won't achieve much in life. If you
want to achieve something in life you need to be simple, low-profile and
committed".
The R N Shetty Trust, a non-profit institution has been set up to help the needy
students and educational institutions. Several colleges including R N Shetty Rural
Polytechnic, R N Shetty Pre-University College and Murudeshwar, and R N Shetty
College of Hotel Management and Catering
Technology at Hubli is being run by the Trust.
In 2001, the Trust established RNS Institute of Technology in Bangalore. The
institute offers bachelor's degree in Electronics & Communication, Computer
Science & Engineering, Information Science & Engineering, and Instrumentation
Technology. This year, MCA course has also been introduced.
R N Shetty has also been instrumental in the rebirth of the Shri Mahatobar
Murudeshwar Temple at Murudeshwar. A recent attraction is the Lord Shiva idol
erected beside the temple, which is 123 feet tall and is the tallest Shiva idol in the
world. This pilgrimage centre has a modern guest house, which is centrally
MPBIM 19
airconditioned. The temple administration has also made arrangements for boating
around the island to attract tourists.
The Trust has also built guest houses at Kollur, a famous pilgrimage centre and a 46-
room school for the Bunts' Sangha at Bangalore. He has also donated funds for the
construction of a sports stadium at Dharwad and Kalyana Mantaps at Hubli,
Murudeshwar, Kundapur and Belgaum. Under Rajiv Gandhi Rural Water Supply
Scheme, R N Shetty has contributed 25 per cent of the project cost of Rs 4.5 crore to
provide water to Murudeshwar.
The recent addition to his social service is the construction of a 100-bed charity
hospital at Murudeshwar. Today, the group is representative of the man behind it.
Strong roots, diverse pursuits and each one a success story in itself.
MPBIM 20
4. COMPANY PROFILE
ESTABLISHMENT OF MCL
Muirudshwar Ceramics Ltd., (MCL) is a joint sector undertaking promoted by
Karnataka State Industrial and investment development corporation (KSTIDC) and
Mr. R.N.Shetty an industrialist and builder of repute in Karnataka. The project
costing Rs.13.45 crores was funded by equity capital of Rs.4.5 crores and term loans
of Rs.8.95 crores. Presently Mr. R.N.Shetty group holds 67% equity shares, 10% is
held by financial institutions and about 3500 local resident shared holders hold
balance 28%.
MCL is one of the emerging companies in the field of tile manufacturing. It is
always ahead in the race of competitors. The initial project was 12.5 crores of
ceramic tiles at its plant located at krishnapur village near Hubli (Karnataka) having
completed the project implementation work with in a record period of 14 months.
The company is being led by R.N.Shetty first generation entrepreneur having other
business interests in sector such as hotels, irrigations works, sea foods and civil
constructing industry.
The MCL is having good position in production of tiles. Almost an its machinery
has been imported from SACMI-IMOLA, Italy with technical know-how. The
company has recently received ISO-9002 certificate from TUV-CERT-GERMANY
Ltd.
With the strong will power of management, hard and dedicated work of over 2000
employees with latest know-how in the industry and with fast growing construction
industry in flooring segment and aesthetic appeal of vitrified tile has placed the
company as the major player in vitrified tile.
Naveen diamontile of Murudeshwar ceramic ltd are manufactured utilizing state of
the art technology and the finest quality raw materials. Each step in the process is
continuously and minutely monitored, resulting in quality that speaks for itself with
strong market share and bright future in coming days.
MPBIM 21
Murudeshwar ceramics ltd manufactures ceramic glazed and unglazed floor tiles and
vitrified porcelain tiles under the brand name NAVEEN CERAMICS TILES a
popular brand both in domestic and international market. During the first year of
operation itself MCL achieved a sales turnover of Rs.9.64 crores and batched up a
net profit of Rs.42 lakhs. Naveen ceramics ltd are also established a separate identity
along side the established names like spartek, Johnson, bell and euro. Encouraged by
the good response from the market, the company looks an expansion project in 1990
costing Rs.8 crores to double the installed capacity.
MCL started manufacturing tiles in plain flamed tiles in the beginning and has
introduced newer shades and designs regularly in every six months. MCL was the
first to introduce tines weave and whispering shades of tiles in 1988.
Naveen ceramics tiles are today available in over 150 colors and shades and Naveen
ceramic tiles offer widest choice to the customers. MCL has a full hedged research
and development setup and is the only recognized in housed research and
development setup, and is the only recognized R & D unit among the ceramic tiles
plants in India.
MPBIM 22
VISION AND MISSION OF MCL
Vision statement of the company:
“To be the largest producer and seller in the flooring market, with a
wide product range by installing latest methods of product on for the
only aim of customer satisfaction.”
Mission statement of the company:
“To introduce all new flooring concepts in the market with more focus
on R & D and meeting the customer requirement by expanding is the
production capacity every year”.
MPBIM 23
R.N.SHETTY GROUP OF COMPANIES
MCL is the flagship company of the R.N. Shetty Group. Other associated companies
within the group are as follows:
SHRI MURUDESHWAR TILES PVT. LTD:
The factory is located in Ivlurudeshwar based in North Canara District. It was set up
in the year1977 it manufactures Mangalore Roofing Tiles. The present production
capacity is 40,000 per day.
NAVEEN HOTELS
Naveen Hotels was incorporated in the year 1975.It has constructed a fine star hotel
in Bangalore, which is presently leased to the "Taj Group of Hotels". Its latest
venture is 'Hotel Naveen' on the banks of the enchanting Unkal Lake in Hubli.
MURUDESHW AR POWER CORPORATION LIMITED
The company was incorporated in 1993 and has constructed a 12MW capacity at the
Narayanpur Dam Canal and has commenced from 1999 December. The bulb
turbines are being supplied by BHEL
RNS MOTORS
RNS Motor is the division of R.N. Shetty & Company. They are authorized dealers
for Maruthi Udyog Limited at Hubli and Bangalore. The territories they cover are
the districts of Belgaum, Bellary, Bidar, Bijapur, Chitradurga, Dharwad, Gulbarga,
North Canara, Raichur and Shimoga.
MPBIM 24
R.N.S. TRUST
The RNS Trust IS primarily responsible for the various amenities provided pilgrims
and tourists at the Holy Town Murudeshwar. The Trust has constructed many Guest
Houses, a dormitory and marriage hall and also contributed generously to several
temples, educational community service projects in Karnataka.
NAVEEN STRUCTURAL AND ENGINEERING(P) LTD.
This company was incorporated in 1981.They specialize in skilled fabrication work
specific to the construction industry. The work shop in Hubli is highly sophisticated
and contains state of the art equipment and machines. They have manufactured Crest
Gates and many other specialized structures in the past
NAVEEN MACHINED CONSTRUCTION CO, PVT. L TD
In the year 1967 when Mr. R.N. Shetty took over the Company, it was suffering
huge losses. In the next eight years he turned it around by successfully executing
several major works under the Malaprabha, Ghataprabha and Upper Krishna Project.
In 1974, the Company diversified in to the civil works for the power projects. It has
undertaken Karnataka Power Corporation. Projects and the intake structure and
undersigned power house at Hosangadi for Varahi Hydel Scheme.
R.N. SHETTY & COMPANY
The company was founded in 1961, on the partnership basis. The firm marketed the
beginning of the R.N. Shetty Group. The civil projects have executed represent some
of the finest in the country. The company is specialist in tunnels, irrigation projects,
bridges, power projects, dams, roads, buildings and many more.
MPBIM 25
M.C.L.CLINTILE LIST
IT COMPANIES �
TECHNO PARK TRIVENDRUM
� INFORMATION TECHNOLOGY PARK LTD, BANGALORE
� WIPRO INFOTECH HYDERABAD
� SUVI INFORMATIONS SYSTEM INDORE
� WIPRO INFOTECH BANGALORE
� INFOSYS TECHNOLOGY LTD BANGALORE
BANKS & INSTITUTIONS �
ICICI BANK COIMBATORE, HYDERABAD
� HDFC BANK, CHENNAI
� HDFC BANK, MUMBAI
� CORORATION BANK ALL OVER INDIA PROJECT
� ICICI ALL OVER INDIA PROJECTS
� VYSYA BANK ALL OVER INDIA PROJECT
� SYNDICATE BANK ALL OVER INDIA PROJECT
CORPORATES �
LAXMI MACHINE WORKS, COIMBATORE
� TAFE LTD, CHENNAI
� IOC LTD - NOIDA (UP) -PANIPAT HARYANA
� FOR U SERVICES (P) LTD LUCKNOW
MPBIM 26
� NAVEEN ORTHOPEDIC AND TRAUMA HOSPITAL SURATH
� ARABINDO PHARMA LTD
� TELEPHANTHI BHAWAN, SURATH
� PROCTOR AND GAMBLE, GOA
� JINDAL VIJAYANAGAR STEEL PLANT, BELLARY
� DYNAMIC DIARY LTD, BARAMATI (MAHARASTRA)
� INDIAN OIL CORPORATION NOIDA
� RELIANCE PROPERTIES LTD BOMBAY AND JAMNAGAR
� GANNON AND DUNCURLAY LTD BOMBAY
� LARSON AND TURBO LTD BOMBAY
� LARSON AND TURBO LTD HYDERABAD
� LARSON AND TURBO LTD BHOPAL
� LARSON AND TURBO LTD KANNUR -KERALA
� AUTOMOTIV E MANUFACTURE LTD MUMBAI
� LEADING EDGE SYSTEMS LTD MUMBAI
� COSME PHARMA LTD GOA
� HINDUSTAN LEVER LTD CALCUTTA, BOMBAY, B'LORE, DELHI
� MERLONI TERMO SANITARY INDIA LTD POONA
� IOC PANIPAT
� L AND T INFO CITY HYDERABAD
BUILDERS & CONTRACTORS �
RAHEJA PROPERTIES DEVELOPERS BANGALORE
� TWIN CONSTRUCTIONS LTD BOMBAY
� VERDHAMAN CONSTRUCTION LIMITED, INDORE
MPBIM 27
� VEDIOCON PROPERTIES, NEW DELHI
� EVERSHINE CIVIL WORKS PVT. LTD., NEW BOMBAY
� COURIEN BUILDERS, ERNAKULAM
� EXPRESS CONSTRUCTION LIMITED, ERNAKULAM
� URC CONSTRUCTION, BANGALORE
� JAI ARTS, MUMBAI
� KALASAGAR CONSTRUCTION, MUMBAI
� VANDIT DEVELOPERS INDIA PVT. LTD PUNE
� MS CONSTRUCTION MUMBAI
� AHMED NOORAHMED WASAIWALA & OTHERS, MUMBAI
� RAMESH BUILDERS, PUNE
� DEECAY CONSTRUCTION ENGGS. & CONTRACTORS, MUMBAI
� THE GREAT EASTERN SHIPPING CO. LTD., MUMBAI
� JESPAR INDUSTRIES, HYDERABAD
� BUILDWELL MUMBAI
� MAYANKA ENTERPRISES, MUMBAI
� SHIVOYA ASSOCIATES, MUMBAI
� LAXMI ENTERPRISES, PUNE
� R.C. CORPORATION, SURAT
� TECHNO ART INTERIORS, MUMBAI
� D K PATEL ENTERPISES, MUMBAI
� JAYESH BUILDERS, MUMBAI
� AR. A.S. P.V.P.V. , MUMBAI
� SANGI BROTHERS INDIA LIMITED, INDORE
� GODAVARI CAPITAL PVT. LTD. MUMBAI
MPBIM 28
� VIJAYA BANK EMPLOYEES HOUSING CO.OP. SOCIETY, B'LORE
� SAMYS DREAMLAND PVT. LTD., BANGALORE
� SURESH JAGGAD & ASSOCIATES, MUMBAI
� INTELLIGENCE CITY - SALT LAKE, KOLKATA
CORPORATE �
LAXMI MACHINE WORKS COIMBATORE
� TAFE LTD CHENNAI
� IOC LTD - NOIDA(UP) -PANIPAT HARYANA
� FOR U SERVICES (P) LTD LUCKNOW
� NAVEEN ORTHOPEDIC AND TRAUMA HOSPITAL SURATH
� ARABINDO PHARMA LTD
� TELEPHANTHI BHAWAN SURATH
� PROCTOR AND GAMBLE GOA
� JINDAL VIJAYANAGAR STEEL PLANT BELLARY
� DYNAMIC DIARY LTD, BARAMATI (MAHARASTRA)
� INDIAN OIL CORPORATION NOIDA
� RELIANCE PROPERTIES LTD BOMBAY AND JAMNAGAR
� GANNON AND DUNCURLAY LTD BOMBAY
� LARSON AND TURBO LTD BOMBAY
� LARSON AND TURBO LTD HYDERABAD
� LARSON AND TURBO LTD BHOPAL
� LARSON AND TURBO LTD KANNUR -KERALA
� AUTOMOTIV E MANUFACTURE LTD MUMBAI
MPBIM 29
� LEADING EDGE SYSTEMS LTD MUMBAI
� COSME PHARMA LTD GOA
� HINDUSTAN LEVER LTD CALCUTTA,BOMBAY, B'LORE, DELHI
� MERLONI TERMO SANITARY INDIA LTD POONA
� IOC PANIPAT
� L &T INFO CITY HYDERABAD
STATE&CENTRAL GOVT. DEPT,LOCAL BODIES & STATUTORY
AUTHORITIES: �
NATIONAL SPORTS AUTHORITY OF INDIA, MUMBAI
� NAGARJUN CON. CO. LIMITED (INDIRAGANDHI INTERNATIONAL
AIRPORT) DELHI
� FEDERATION GAMES STADIUM, CHENNAI
� NTPC PROJECTS PATNA
� PATNA AIRPORT PATNA
� NATIONAL ACADEMY OF CONSTRUCTION HYDERABAD
� NATIONAL GAMES STADIUM BUILDERS&CONTRACTORS
� RAHEJA PROPERTIES DEVELOPERS BANGALORE
� TWIN CONSTRUCTIONS LTD BOMBAY
� VERDHAMAN CONSTRUCTION LIMITED, INDORE
� VEDIOCON PROPERTIES, NEW DELHI
� EVERSHINE CIVIL WORKS PVT. LTD., NEW BOMBAY
� COURIEN BUILDERS, ERNAKULAM
� EXPRESS CONSTRUCTION LIMITED, ERNAKULAM
� URC CONSTRUCTION, BANGALORE
� JAI ARTS, MUMBAI
MPBIM 30
� KALASAGAR CONSTRUCTION, MUMBAI
� VANDIT DEVELOPERS INDIA PVT. LTD PUNE
� MS CONSTRUCTION MUMBAI
� AHMED NOORAHMED WASAIWALA & OTHERS, MUMBAI
� RAMESH BUILDERS, PUNE
� DEECAY CONSTRUCTION ENGGS. & CONTRACTORS, MUMBAI
� THE GREAT EASTERN SHIPPING CO. LTD., MUMBAI
� JESPAR INDUSTRIES, HYDERABAD
� BUILDWELL MUMBAI
� MAYANKA ENTERPRISES, MUMBAI
� SHIVOYA ASSOCIATES, MUMBAI
� LAXMI ENTERPRISES, PUNE
� R.C. CORPORATION, SURAT
� TECHNO ART INTERIORS, MUMBAI
� D K PATEL ENTERPISES, MUMBAI
� JAYESH BUILDERS, MUMBAI
� AR. A.S. P.V.P.V, MUMBAI
� SANGI BROTHERS INDIA LIMITED, INDORE
� GODAVARI CAPITAL PVT. LTD. MUMBAI
� VIJAYA BANK EMPLOYEES HOUSING CO.OP. SOCIETY, B'LORE
� SAMYS DREAMLAND PVT. LTD., BANGALORE
� SURESH JAGGAD & ASSOCIATES, MUMBAI
� INTELLIGENCE CITY - SALT LAKE, KOLKATA
MPBIM 31
AUTOMOBILE SHOWROOMS: �
SUNDARAM MOTORS (TVS), CHENNAI & MADURAI
� COMMERCIAL AUTOMOBILES, JABALPUR
� AUTO FLANGER (I) PVT. LIMITED, MUMBAI
� BAFNA MOTORS, MUMBAI
� PATWA CITY AUTOMOBILES PVT. LD., INDORE
� CARGO MOTORS LTD., AHMEDABAD
� V.V. PATEL AUTO LTD.,
� KOYANKA MOTORS, CALICUT
� RUBY AUTO CENTRE, AHMEDABAD
� AUTO INDUSTRIES GOA PVT. LTD., MANGALORE
� U.N. AUTOMOBILES PVT. LTD., DELHI.
� MARUTI UDYOG LTD., DELHI
� LML LTD., BANGALORE, DELHI, LUCKNOW
� MARUTI UDYOG LTD., GURGAON
� MARUTI SHOWROOMS IN VARIOUS CITIES
� TELCO (INDICA) SHOWROOMS THROUGHOUT COUNTRY
� HERO HONDA LTD. ALL OVER INDIA
� HYUNDAI CITY LTD.
� SUBHAS MOTORS, LUCKNOW
MPBIM 32
RESORTS, HOTELS AND RESTAURANTS:
NAVEEN HOTELS LTD, ALL OVER KARNATAKA
PIZZA HUT CHAINE STORES, CHENNAI
PRAKASH RESORTS LTD. RAIGADH, MAHARASHTRA
PANCHAVATI HOLIDAY RESORTS, GUWAHATI
ENJOY HOTELS PVT. LTD., MUMBAI
AISIAMAC HOTELS INDIA LTD. CHENNAI
SAYAJI HOTELS LTD. INDORE, BARODA
TAJ GROUPS OF HOTEL, MUMBAI, GOA
HOTEL LEELA KEMPENSKY, MUMBAI, BANGALORE
HOTEL PANCHAM LUCKNOW.
SCHOOLS, COLLEGES & EDUCATIONAL INSTITUTIONS
SRIRAMACHANDRA MEDICAL COLLEGE & RESEARCH CENTRE,
CHENNAI
D.Y. PATIL PRATISHTAN, PUNE
HOSPITALS:
ALL INDIA INSTITUTE OF MEDICAL SCIENCES, DELHI
APPOLLO FOUNDATIONS PVT. LTD. PUNE
AMRUTA INST. OF MEDICAL SCIENCES, KOCHI
THE BANDRA HOLY FAMILY HOSPITAL, MUMBAI
SUCHITRA KRIPALANI HOSPITAL, DELHI
TEMPLES, MOSQUES, CHURCHES AND TRUST:
ISKON TEMPLE, BANGALORE
SIDDIVINAYAK TEMPLE, MUMBAI
MPBIM 33
ORGANISATION STRUCTURE OF MCL
The following is the organization structure of MCL
CHAIRMAN
EXECUTIVE DIRECTOR
VP FINANCE
VP PRODUCTION
VP MARKETING
R & D MANAGER
ASST. MANGR FINANCE
ASST. MANGR PRODUCTION
ASST. MANGR MARKETING
DEPUTY MANAGER
ACCOUNTANT ASST. MANGR AREA MANGR ENGINEER
COLLECTION EXECUTIVES
SHIFT INCHARGE
SALES EXECUTIVE
SUPERVISOR
SUPERVISOR SALES
REPRESENTATIVE WORKERS WORKERS
WORKERS
MPBIM 34
BOARD OF DIRECTORS
Non Executive Directors
1) Shri RN Shetty – Promoter and chairman
2) Dr.K.Sandip Malli – Independent director
3) Shri K.Jeevan Shetty– Independent director
4) Dr.B.Suresh Hedge – Independent director
5) Shri K.P.Surendranath – Independent director
6) Shri I.M.Vittala Murthy – Independent director
7) Dr.Sadanand V Nagid – Independent director
Executive Directors
8) Shri Satish R Shetty : MD
9) Shri Sunil R Shetty : Joint Managing director
10) Shri Naveen R Shetty : Joint Managing director
MPBIM 35
5. PRODUCTION DEPARTMENT
The production department is headed by the Vice President Production. The
following is the departmental chart.
Functions of the department:
1) Producing quality products as per quality norms
2) Deciding on how much to produce
3) Inventory management
4) Maintenance of machineries, equipments, etc
5) Production planning and control
Production Department
Vice President Production
Asst. Manager
Shift Incharge
Supervisor
Worker
MPBIM 36
Quality Policy at MCL:
“Murudeshwar Ceramics Ltd is a quality oriented company and will continuously
strive to provide product as per national and international customer requirements by
maintaining quality at stages and with the active participation of all employees”.
Production process
The following is the production process at MCL.
Step 1:
Naveen diamontile are created from the world renowned while burning clay
imported from Ukraine unlike all commonly available clays this while burning clay
is specially suited to the vitrification process during firing and it is vitrification that
renders the very special qualities to Naveen diamontile compaction, hardness
strength and ultra low water absorption.
Step 2:
The clay is then mixed with gradpure white burning minerals to form the body of the
tile processed in the continuous process bull mill which is the first of its kind in
India. Commitment to the quality is further emphasized by the fact that the minerals
are pulverized in a company owned plant, so that quality checks and controls can be
maximized. The tile is then pressed in jumbo 4600 t press. The largest in the Indian
tile industry.
Steps 3:
The resultant tile body already unique in itself is then fixed at 12200oC in 111.3 mts.
Kiln imported from ‘Sach1’ Italy world leader in the field. The firing yields a tile
that conforms to all the stringent parameters of International standards.
MPBIM 37
Step 4:
The fired tile will be polished and calibrated by state of art polishing machine,
imported from M/s Breton SPA Italy, using MC-8 headed polishing technology for
the first time in India. This technology leaves conventional polishing beside with a
polishing line of 46 heads it is having highest individual polishing line capacity in
India.
Thus the Naveen diamontile that emerges from the combination of these processes is
a technically superior product which reflects its leadership in the industry.
MPBIM 38
6. MARKETING DEPARTMENT
The marketing department of MCL is headed by vice president (marketing) and the
department chart is as follows
Functions of the department
1) To attract new customers and to retain the old one.
2) Examining pricing policy
3) Executing the orders
4) Managing company owned showrooms
V P Marketing
Regional Manager
Area Manager
Sales Executive
MPBIM 39
Execution of order
There are some process which have to be followed while executing an order, the
following are the stages of a sale
1) Order form
A customer makes the enquiry either with the sales executive or with company head
office if the price quality and conditions of sale are agreeable to the party then an
order is placed.
As soon as an order is placed an order form is filled. This order form consists of
such details as the address of the party description of the product, insurance, delivery
period mode of transport etc. The customer fills this form.
2) Sales note
Using the order form sale note is prepared, four copies of sale note are issued two
copies are retained with the HO, one is sent to the factory and the fourth one is given
to the customer.
However for a dealer or individual customer the process is slightly different. The
sale note is prepared only for bulk order. For the small orders a programme note is
prepared which contains information about the size number of boxes to be
dispatched delivery date etc.
3) Delivery of goods
Then the order form will be given to the factory for dispatching.
4) Collection of dues
The dues (outstanding) will be collected thereafter by the respective sales executive.
MPBIM 40
Marketing mix
Marketing mix can be defined as the blend of four ‘s of marketing Viz price, place,
product, promotion. The proper and correct mix of these attributes leads to success
in the marketing of a product.
a) Price
Price is the only element in the marketing mix that produces revenue, the other
elements produce costs.
In MCL cost plus and going rate strategy are adopted.
b) Place:
MCL’s head office is in Hubli (Karnataka state) and its plants in Hubli and Dharwad
where raw materials are available in abundance.
MCL outlets
MCL has already opened 72 showrooms in various parts of the country and plans to
open 50 new showrooms in future years.
In these showrooms a complete catalogue and samples are provided. Customers
examine sample and place down the orders, orders are checked and then sent to ware
house for dispatch.
In Bangalore city itself the company ha four outlets they are in the following places
"� N R Road
"� Jayanagar
"� Yeshwanthpur
"� Bannerghatta road
MPBIM 41
c) Product
MCL produces flooring tiles which are of two types
1 Ceramic tiles
2 Vitrified tiles
These tiles are made available in variety of deign and colours at a very competitive
price.
d) Promotion:
MCL is having a very good promotional strategy to promote its product and to cater
the intense competition in the market.
The various promotional strategies at MCL are as follows
1) Quantity discounts
2) Advertising
Magazine adds
Paper adds
Hoardings
Distribution channel of MCL
C O M P A N Y
SALES EXECUTIVES
DISTRIBUTORS
COMPANY SHOWROOM
ONLINE (WEBSITE)
MPBIM 42
7. RESEARCH AND DEVELOPMENT
DEPARTMENT
R&D is a very important department in any organization as it always finds new
ways or methods to improve the quality and bring out the best to suit the present
requirements of customers. MCL gives at most importance to its R&D it invests a
major part of its income towards R&D, the R&D wing of MCL is the recognized
one and is having the best of technology and facility among all other tile
manufacturing companies.
The following is the departmental chart:
Specific areas in which R&D carried out by the company
1) Alternate source for screens and decorating materials
2) Development of new product range in general and marble design in
particular
3) Implementation of in plant raw material processing unit
Research and development
Manager
Dy. Manager
Engineer
Supervisors
Workers
MPBIM 43
4) More indigenization of input as well as in process raw materials and
equipments.
5) Introduction of new designs in every one year
Benefits derived as a result of R&D
a Cost reduction
b Low inventory cost’s
c Easy availability of raw material
d Variety in product range.
Future plans of R&D
1) Development of low cost tiles
2) Implementation of ceramic glaze tile by using new dry grinding technology
3) To increase utilization of waste water by recycling
Expenditure on R&D
The following table depicts the expenditure incurred on R&D for the last four years
Type of expenditure 2001-02 2002-03 2003-04 2004-05
Capital 5.29 14.82 8.25 8.25
Recurring 2.23 6.74 2.19 21.23
Total 7.52 21.56 10.44 29.48
Total R&D expenditure as a percentage of total turnover
0.08 0.17 0.07 0.16
As we can see the investment in R &D wing in increasing year by year, it is very
interesting to note that there is extensive capital investment year by year which
indicates the growth of R & D wing in the organization.
MPBIM 44
8. FINANCE DEPARTMENT:
Finance is said to be the life blood of any business for proper allocation and
management of the funds organization requires a finance department. MCL is
having a separate finance department to take care of all these activities the following
is the departmental chart of the same.
Functions of the department:
1) Maintaining proper books of accounts
2) Reporting to the management issues relating to finance
3) Obtaining of funds from various sources and using it efficiently.
4) Tax planning
5) Controlling (regular assessment of financial activities)
V.P. Finance
Assistant Manager Finance
Accountants
Collection Executives
MPBIM 45
Capital structure of MCL:
The following is the capital structure of MCL:
Sl.
No.
Sources Amount (cr) %
1 Equity shares 15,00,87,275 4.84
2 Preference shares 16,00,00,000 5.16
3 Reserves and surplus 146,25,04,505 47.19
4 Secured loans 119,12,73,615 38.44
5 Unsecured loans 13,54,67,211 4.37
Total 3,09,93,32,606 100
We can see that the total share of equity share holders is more than 50% including
reserves and surplus and the share of secured loans is also very big
Equity share holding pattern:
Equity share holders are the owners of the company as they have the right of voting
and participating in the affairs of the company, the following is the equity share
holding pattern as on 31.03.2005.
MPBIM 46
a) Distribution of share holding as on 31.03.05
Share amount Nominal value of shares
No. of
holders In Rs. Paid up capital
Up to 5000 5,352 1,01,05,370 6.74
5001 – 10000 654 55,35,340 3.69
10,001 – 20,000 298 47,05,080 3.14
20,001 – 30,000 112 28,98,280 1.93
30,001 – 40,000 38 13,64,620 0.91
40,001 – 50,000 51 25,03,490 1.67
50,001 – 1,00,000 64 48,33,370 3.32
1,00,001 and above 67 11,80,64,060 78.70
Total 6,636 1500,09,610 100.00
MPBIM 47
b) Share holding pattern as on 31-03-2005
Share amount Sl.
No. Category of shareholders
No. of shares % to capital
1 All India financial institutions and
insurances
7,98,938 5.32
2 Mutual funds 1,700 0.01
3 Banks 5,79,739 3.86
4 Other bodies corporate 9,09,708 6.06
5 Non-resident foreign institutions 4,16,578 2.78
6 Associate companies 3,11,461 2.08
7 Trusts 42,25,337 28.17
8 Directors and their relatives 19,87,122 13.25
9 Others including resident individuals 57,70,378 38.47
Total 1,50,00,961 100.00
By looking at the Distribution of shareholding and pattern share holding, one can
say that the equity shares of the company has been owned by various institutions and
bodies, who have a great faith in the future of the company.
MPBIM 48
Market price data of M.C.L:
The prices of equity shares of keep fluctuating all the time due to several reasons
such as political situations, government decisions, confidence of people in the
market.
The following is the market price data of M.C.L.
Share transfer system and dematerialization:
1) Arrangements with Alpha Systems Pvt Ltd. Bangalore to act as Share
transfer agents of the company
2) Members may also hold and/or trade equity shares of this company in
dematerialized / electronic form members who are desirous to hold their
shares in de-mat/electronic form may do so through their depository
participants or may contact the company secretary for guidance.
3) As on 31.03.2005 out of total of 1,50,00,961 shares 1,38,53,460 shares
(92.35%) have been dematerialized.
Month Highest Rs. Lowest Rs. Month Highest Rs.
Lowest Rs.
April 2004 31.15 25.85 Oct 2004 41.00 32.85
May 2004 29.70 22.05 Nov 2004 57.00 35.00
June 2004 24.10 19.65 Dec 2004 49.90 38.55
July 2004 30.30 22.00 Jan 2005 47.25 35.55
Aug 2004 34.00 23.50 Feb 2005 45.25 37.00
Sept 2004 41.90 30.00 Mar 2005 46.80 36.40
MPBIM 49
Dividend declared by the company:
Dividend is the reward to equity shareholders for their risk MCL which is growing
day by day and who’s profit and turnover is inc reasing year by year has declared
dividends for its shareholders at the rate of 10%, 10% and 15% for the year of 2002-
03, 2003-04, 2004-05 respectively.
Company’s performance in recent years:
An organization performance can be measured by the analysis and interpretation of
its final accounts viz., profit and loss account and balance sheet whereas the balance
sheet is said to be the mirror of the company.
The following are the income statement and balance sheet of MCL for the last three
years starting from 2002-03 to 2004-05.
MPBIM 50
INCOME STATEMENT FOR THE YEAR 2002-03
Particulars Amount (Rs.)
Sales and other income 1,305,770,030
Less: operating expenses 718,504,905
Gross profit 587,265,125
Less: administration expenses 398,333,925
Profit before int and tax 188,931,200
Less: Interest 13,78,68,362
Profit before tax 51,062,838
Less: Tax 13,707,000
Profit after tax 37,355,838
Add: Balance of profit brought forward 33,945,320
Profit available for appropriation 71,301,158
Less: Preference dividends -
Earning available for equity share holders 71,301,158
MPBIM 51
BALANCE SHEET AS AT 31-03-2003
Particulars Schedule No. Rs. Rs. SOURCES OF FUNDS Share holder’s fund a) Share capital 1 15,00,87,275 b) Reserve’s surplus 2 137,62,12,519
152,62,99,794
Loan funds: Secured loans 3 89,40,36,066 Unsecured loans 4 11,29,28,006 100,69,64,072
Total 253,32,63,866 APPLICATION OF FUNDS Fixed assets 5 1,96,33,87,745 Investments 6 3,00,39,800 Current assets loans and advances
1) Inventories 7 46,01,48,868 2) Sundry debtors 8 10,02,56,880
9 5,38,71,768 3) Cash and bank balances 4) Loans and advances 10 13,41,26,663 5) Interest accrued on deposits 6,22,387
74,90,26,566
Less: Current liabilities & provisions
a) Current liabilities 11 19,24,41,079 b) Provisions 12 2,09,68,772
21,33,50,051
13
53,56,76,515 41,59,806
Net current assets Miscellaneous expenditure Total
2,53,32,63,866
MPBIM 52
INCOME STATEMENT FOR THE YEAR 2003-04
Particulars Amount (Rs.)
Sales and other income 153,92,61,900
Less: operating expenses 81,32,02,645
Gross profit 72,60,59,255
Less: administration expenses 48,99,34,972
Profit before int and tax 23,61,24,283
Less: Interest 10,49,51,971
Profit before tax 13,11,72,312
Less: Tax 2,10,16,678
Profit after tax 11,01,55,634
Add: Balance of profit brought forward 3,43,78,199
Profit available for appropriation 14,45,33,833
Less: Preference dividends 58,73,973
Earning available for equity share holders 13,86,59,860
MPBIM 53
BALANCE SHEET AS AT 31-03-2004
Particulars Schedule
No. Rs. Rs.
SOURCES OF FUNDS
Share holder’s fund
a) Share capital 1
i) Equity shares 15,00,87,275
ii) Preference shares 16,00,00,000
b) Reserve’s surplus 2 147,37,50,297
178,38,37,572
Loan funds:
Secured loans 3 103,38,38,380
Unsecured loans 4 17,44,72,661 120,83,11,041
Total 299,24,48,613
APPLICATION OF FUNDS
Fixed assets 5 2,36,38,76,183
Investments 6 3,00,52,300
Current assets loans and advances
1) Inventories 7 47,81,21,962
2) Sundry debtors 8 16,50,39,747
3) Cash and bank balances 9 4,04,91,944
4) Loans and advances 10 15,19,41,094
5) Interest accrued on deposits 8,41,050
83,64,35,797
MPBIM 54
11
12
27,127,147
3,36,34,534
Less: Current liabilities & provisions
a) current liability b) Provisions
59,56,74,116 Net current assets
Miscellaneous expenditure
13
24,07,61,681
25,46,014
Total 299,21,48,613
MPBIM 55
INCOME STATEMENT FOR THE YEAR 2004-05
Particulars Amount (Rs.)
Sales and other income 180,15,53,339
Less: operating expenses 92,70,74,457
Gross profit 87,44,78,882
Less: administration expenses 55,21,48,196
Profit before int and tax 32,23,30686
Less: Interest 12,99,66,714
Profit before tax 19,23,63,972
Less: Tax 2,80,83,270
Profit after tax 16,42,80,702
Add: Balance of profit brought forward 4,09,84,299
Profit available for appropriation 20,52,65,001
Less: Preference dividends 1,60,00,000
Earning available for equity share holders 18,92,65,000
MPBIM 56
BALANCE SHEET AS AT 31-03-2005
Particulars Schedule
No. Rs. Rs.
SOURCES OF FUNDS
Share holder’s fund
a) Share capital 1
i) Equity shares 15,00,87,275
ii) Preference shares 16,00,00,000
b) Reserve’s surplus 2 146,25,04,505
c) Deferred tax 3 14,44,35,430
191,70,27,210
Loan funds:
Secured loans 4 119,12,73,615
Unsecured loans 5 13,54,67,211 132,67,40,826
Total 324,37,68,036
APPLICATION OF FUNDS
Fixed assets 6 255,22,20,957
Investments 7 3,00,47,300
Current assets loans and advances
1) Inventories 8 50,94,96,605
2) Sundry debtors 9 20,79,44,276
3) Cash and bank balances 10 7,77,73,640
4) Loans and advances 11 13,27,50,162
5) Interest accured on deposits 10,55,152
92,90,19,8347
MPBIM 57
Less: Current liabilities &
provisions
a) Current liabilities 12 20,94,64,015
b) Provisions 13 5,89,88,270
26,84,52,285
Net current assets 66,05,67,549
Miscellaneous expenditure 14 9,32,230
Total 324,37,68,036
MPBIM 58
RAITO ANALYSIS OF MCL:
The above financial performance can be analyzed with the help of some financial
ratios so as to know the financial soundness of the firm:
Sl.
No.
Ratios 2002-03 2003-04 2004-05
1 Gross profit ratio 44.97% 47.17 48.54
2 Return on capital 7.46% 7.89 9.94
3 Return on share holders fund 2.45% 6.18 8.57
4 Return on total asset 1.36% 3.07 5.06
5 Earning per share 4.75% 9.24 12.62
6 Capital turnover ratio 51.55% 51.44 55.54
7 Current ratio 3.89 4.04 4.44
8 Liquid ratio 1.50 1.73 2.00
9 Debt ratio 0.59 0.68 0.69
10 Proprietary ratio 0.56 0.50 0.59
11 Debt ratio 0.40 0.40 0.41
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INTERPRETATION AND CONCLUSION OF RATIOS:
1. Gross profit ratio which indicates the operating efficiency in terms of net trading
results can be calculated by dividing gross profit by net sales. In MCL the G.P ratio
which was 44.97% in 2002-03 has been increasing at a very consisting rate i.e.
47.17% in 2003-04 and 48.54% in 2004-05.We can say that the operating efficiency
of MCL is growing year by year and they are earning more margin by their trading
activity.
2. Return on capital is the return on the total capital employed in terms of fixed
assets and current assets is derived by dividing EBIT by total capital employed
MCLs ROC was 7.46% in 2002-03, 7.89% in 2003-04 and 9.94% in 2004-05.It
clearly indicates how well the firm is using its available resources and earning
higher margins by reducing the cost.
3. Return on shareholders fund is the return obtained from shareholders funds which
is calculated by dividing profits and share holders funds it is very interesting to note
that MCLS shareholders return is increasing year by year, it is the result of increase
in profits during the last three years.
4. The return on total assets ratio which was 1.36% in 2002-03 has increased to
5.06% it shows the efficient utilization of installed plant capacity of the firm.
5. Earning per share of share holders of the company is increasing year by year, in
2002-03 it was 4.75rs per share which has increased to 12.02rs per share in the year
2004-05.
6. Capital turn over ratio which indicates the number of times the capital employed
is turned over in terms of sales; in MCL this ratio is increasing i.e. it was 51.55% in
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2002-03 and has increased to 55.54% in the year 2004-05.
7. MCLs liquidity position is excellent it is revealed in their current ratio and liquid
ratios which are above the standard ratios. Current ratio of MCL is 3.89 in 2002-03
and 4.44 in the year 2004-05 and the liquid ratio which is 1.50 in 2002-03 and 2.00
in 2004-05.it shows the short term solvency of the firm i.e. the firm has a good cover
to meet its short term liabilities.
8. The ownership ratios of the firm i.e. debt equity ratio, proprietary ratio and debt
ratio which reveals firms dependence towards debt capital and equity shareholders
share in the firm has revealed the following results:
�
Debt-equity ratio is the ratio between long term debts and share holders
funds, it was 0.59 in the year 2002-03 and 0.69 in the year 2004-05 �
Proprietary ratio which indicates stake of share holders in the assets of the
firm was 0.56 in the year 2002-03 & has increased to 0.59 in the year 2004-
05. �
The debt ratio which is the share of debt in total capital as remained
constant that is it was 0.40 in the year 2002-03 and in 2004-05 it is 0.41 �
It shows that the equity share holders in the firms have larger share than
creditors.
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9. SWOT ANALYSIS OF MCL
Any organization will be having its own strengths and weakness due to various
internal factors, along with this it will have opportunities and threats that are the
results of external environment and which are not in the hand s of the organization.
The following is the SWOT analysis of MCL: STRENGHTHS: 1 Committed work force 2 Strong technology 3 Professional management 4 Research and development wing 5 Brand name
WEAKNESS: 1.Lak of representation in north India 2.Gap in demand and supply
OPPORTUNITIES: 1Growth in tile industry 2 Revival of production of ceramic tiles 3 More showrooms for wide reach
THREATS: 1Small and medium size industries mushrooming in various parts of the Country 2 Dumping of cheaper tiles from foreign Companies. 3 frequent increase in cost of power and fuel. 4 continuous falling in prices due to cut throat competition
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10. CONCLUSIONS AND RECOMMENDATION
The internship study conducted at MCL was a pleasant experience for me as it gave
me the opportunity to know the various aspects of management, the basic structure
of an organization and more than anything much needed corporate exposure.
There is no other word that MCL is a very professionally managed
company which aims at achieving higher standards in the market. the following are
the conclusions of my study.
1. Good inter departmental relation:
There is a good inter departmental relation in MCL i.e. all functional departments of
the firm work towards the mission of the company. All the departments have their
functional specification and work as per the standards.
2. Successful in brand building:
MCL is a very successful brand despite of the fact that there is a huge competition in
the present market thanks to the aggressive marketing strategy adopted by the
company. Today MCL is the powerful brand in the market and moving towards
becoming the market leader.
3. Very healthy financial position:
MCL is very successful in managing its finance, it has managed all its financial
resources to the optimum level and has achieved some good results as revealed by
the financial statement analysis.
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4. Future plans and expansion:
MCL is having some dream projects in its hand, it is expanding its capacity to
increase its production capacity to match the demand in the market. It is very
interesting to know that MCL is planning to open new show rooms all over the
country
The following are the recommendations which are based on the
study: 1. More concentration towards North Indian market:
MCL has not been able to explore the markets of northern part of India even though
it is a very successful brand in south India. It is suggested that MCL should spend
more resources towards these untapped markets.
2. More promotional activities
Indian tile industry is witnessing a intense competition, there are many companies
operating in this industry who are trying to get as much share as possible.MCL
should spend a large part of their income towards promoting their product.
3. Dealers network policy
Company should rethink of dealer network policy for better accessibility and reach
of products to the end users.
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BIBLIOGRAPHY
1 Company web site www.naveenceramics.com
2 Company’s annual reports.
