EXCEL CROP CARE LTD.

A PROJECT SUBMITTED TOTHE BHAVNAGAR UNIVERSITY OF BHAVNAGAR

IN PARTIAL FULFILLMENT FOR THE DEGREEOF

BACHELOR OF BUSINESS ADMINISTRATION

PREPAIRD BY GUIDED BY KAJAVADARA KRISHNA L. SHAHEZAD BODILA ROLL NO. 76 (LACTURER) S.Y.B.B.A.

SWAMI SAHAJANAND COLLEGE OF COMMERCE AND MANAGEMENT

BHAVNAGAR UNIVERSITYBHAVNAGAR

BATCH NO. 2009 - 2012

CANDIDATE STATEMENT

I, the undersigned, Kajavadara Krishna L. here by declare and confirm that

work done by me is original and true to the best of my knowledge and belief. It is the

result of my efforts and dedication under the proper guidance of my guide –Mr.

Shahezad Bodila.This project is just a part of my college curriculum and will not be

used elsewhere.

Place: Bhavanagar Student Sign.

Date: 30/12/2010 Name: Kajavadara Krishna L.

PREFACE

The course of BBA covers 2 areas, theory and practical. Each

of them incomplete without the other. Theoretical knowledge differs from

practical knowledge. Students are like unpolished diamonds and training dose

the job of polishing, shaping them and making them fine enough to face the

real life challenges. It is very useful in giving insight to practical aspect of

today’s business.

As a student of S.Y.B.B.A.I am very obliged to attain my

practical knowledge by training at “EXCEL Crop Care ltd”, located at

Bhavnagar. I have tried to include all the necessary details regarding the

subject. The main purpose behind this reports is to fill up the gap between

theory & practical aspect. All the information given here is per my efforts and

knowledge about subject.

By taking the 15 days training in Excel Crop Care ltd I collect

the information connected with different department by the support of

company. I am sure that this project report will expand my practical

knowledge and make of my future challenges in management field.

Place: Bhavanagar Student Sign:

Date: 30 / 10 / 2010 Name: Kajavadara Krishna L.

ACKNOWLEDGMENT

At this outset, it is a great opportunity for me to express my sense

of gratitude, great pleasure and my sincere thanks to all those who have helped

me while working on this project. The success I have achieved in the

accomplishment of the project work is not only due to my efforts. So with the

great pleasure, I would like to take this opportunity to thank all those individuals

who have helped and inspired me in completion of my project work.

I specially thank to the Managing Director Dr. Sureshbhai Sawani,

Principal Miss Hetalben Mehta and B.B.A Coordinator Mrs. Pooja Mehta and all

those who support me in this project. I would like to express my heart felt thank to

my guide – Mr. Shahezad Bodila (Lecturer), for his guidance and constant

motivation.

I express my special gratitude to the Mr. M. V. Mer of Excel crop

care Ltd who gave us the permission of training in Excel crop care Ltd industries.

And, all the other staff members who have been helpful to us either directly or

indirectly.

The practical knowledge, which is necessary in this world, which I

got through this project Report, by studying BBA in such a good Swami

Sahajanand College of commerce and management

Place: Bhavanagar Student Sign:

Date: 30 / 10 / 2010 Name: Kajavadara Krishna L.

PROJECT CONTENTS

No. Content Page No.

1. General information 1 to 10

2. Human resource management 11 to 33

3. Marketing management 34 to 45

4. Finance management 46 to 59

5. Bibliography 60

INDEX OF GENERAL INFORMATION

No. Contents Page No.

1. Introduction of the Excel crop care Ltd 1

2. History and development 2

3. Company profile 3

4. Size of the unit 4

5. Organization structure 5

6. Types of product and manufacturing process 6

7. Time keeping system 8

8. Contribution of the unit to industries 10

INDEX OF HUMAN RESOURCE DEPARTMENT

No. Content Page No.

1.1 Introduction of Human Resource Department 11

1.2 Organization structure of Human Resource Department 12

1.3 Recruitment 13

1.4 Selection 14

1.5 Induction 15

1.6 Placement 16

1.7 Training 17

1.8 Managerial Development 19

1.9 Job description 20

1.10 Promotion and Transfer policy 21

1.11 Performance appraisal system 22

1.12 Wage & salary administration 23

1.13 E.S.I.C. scheme 24

1.14 Grievance handling procedure 25

1.15 Employee welfare 26

1.16 Trade union and collective bargaining 28

1.17 Personal records 30

1.18 Provident Fund Scheme 31

1.19 Health and Safety measure 32

INDEX OF MARKETING DEPARTMENT

No. Content Page No.

2.1 Introduction 34

2.2 Organization structure of Marketing Department 35

2.3 Product portfolio 36

2.4 Product planning 37

2.5 Market segmentation 39

2.6 Pricing Decision 40

2.7 Promotion Mix 42

2.8 Channel of distribution 43

2.9 Marketing Research 45

INDEX OF FINANCIAL DEPARTMENT

No. Content Page No.

3.1 Introduction 46

3.2 Organization Structure 47

3.3 Financial Planning 48

3.4 Capital Structure 49

3.5 Capital Budgeting 50

3.6 Management of Fixed Assets 51

3.7 Working Capital Management 52

3.8 Receivable Management 53

3.9 Inventory Management 54

3.10 Cash Management 55

3.11 Ratio Analysis 56

3.12 Leverage 58

GeneralInformation

INTRODUCTION

The name of the company Excel Crop Care Ltd. is rightly chosen, it means

‘Better than anything ‘. In todays ara. There are few industries which take care

about their employees & Excel Crop Care Ltd. is amongst one of them.

The development of Excel Crop Care Ltd.industry was began with small

seed and later grew in to a big tree. It is still growing and giving shade to every

one in the society.

The idea of creation of. Excel Crop Care Ltd was of C.C.SHROFF who

was the founder, found Excel Crop Care Ltd. in 1949 (1969 in Bhavanagar) . It

was founded on close relationship with the farmers . Initiatly the structure is a

very small but now activities are expanded so that today it provides to farmers

with broad range of product and technical guidance.

Excel Crop Care Ltd..occupies very important and prestigious role in

pesticide in the world for 65% market share in Excel .Excel is a chemical

producing company that exports their product over 36 countries like

Africa,Germany,Natherland, Australia,Japan,France,Singapore, Argentina,

Mexico, Iran.

1

HISTORY AND DEVELOPMENT

The dream of C.C Shroff was take its shape with the

establishment in 1941 as a partnership firm. It was converted in to private limited

company in 1960, and in the year 1964 Messer tata and Messer fison joined this

firm to convert it in to public limited company under artical 43 – A. C.C.Shroff

having brilliant career in chemistry with a generous class of natural ingenuity to

introduce chemical which are not yet known in India.

It was started with 6 employees ,10000 capital, 1500from

family, 8500from friends. It was start with a small kitchen laboratory and groomed

up as a unique organization with the value based system of management style.

The development of Excel is different from other company. As

year passed the curve of development is goes to be increased.Turnover

exceeding 4000 Million . EXCEL became the first India’s agro chemical

company to certify ISO 9002 in 1994.

Company is first in Asia to make Butane dial and Endosulfane. It is

second in the world to develop glyphosate phosphide, third in the world regarding

aluminum phosphide, and endosulfane product.Today nearly 100 product

produce by it.

Our main line distribution network in India, comprise of 14

branches office, with more than 4000 distributors.The company is divided in to

two parts.

1.EXCEL industry ltd

2.EXCEL crop care ltd

Excel industry operate from manufacturing plants which are

strategically spread across the country in Mumbai (Maharashtra), Gujarat,

Andhrapradesh and Selvassa. They have the representative office in Australia

and Singapore.

Thus, we can say that from the establishment of it to the present

period it got lot of success, achievement and progress

2

COMPANY PROFILE

Name : EXCEL CROP CARE LTD.

Address :6/2. Ruvapari Road,

Bhavanagar 364005.

Registered office: 184 -87. Swami Vivekanand Road,

Jogeshwari (west)

Mumbai (4001021)

Form of the unit :Public Ltd.company.

Establishment :1941

Board of Director : A .C. Shroff

Dipesh k. shroff

Prakash k.shroff

J.R.Naik

M. L. Shah

Mukul G.Asher

Sandeep Jannarkar

Bankers :Bank of India

Syndicate Bank

City bank N.A.

State Bank of India

ICICI Bank Ltd.

Auditors : S.V. Ghatalia and Association (C.A.)

Branch office : Delhi, Kolkata, Hydrabad, Bhavanagar, Madurai

Ahmedabad.

PhoneNo :0278 – 2212401

Fax No :91 – 278 -2212410

Types of Production :Agro chemical &

Industry chemical.

3

SIZE OF THE UNIT

A company is an association of many persons who contribute money or

money’s worth to a common stock and employs it in some trade or business and

who share the profit or losses arising therefrom.

Lord Justice Lindle

According to new industrial policy there are three type of units.which are

as under.

1.SSI:

an industry is the one whose investment in the fixed assets and

current assets does not exceeds 5 crore is called SSI.

2.Medium scale indusry:

An indusry is the one whose investment in the fixed assets and

current assets is in 5 crore and does not exceeds 10 crore is called Medium scale

indystry.

3.Large scale industry:

An industry is one whose investment in fixed assets and current

assets exceeds 10 crore is called Large scale industry.

In Excel crop care Ltd , the capital investment is more than 300

crores that implies it is Large scale industry.

Form of the organization:

There are various kind of organization which are as under.

1. Sole Proprietorship:

2. Partnership

3. Joint stock company

4. Co – operative organization

5. Government company (undertaking)

6. Public Limited company

7. Private Limited company

Excel is public limited company. because like public ltd company

Excel’s share can be transferred freely and can be invite public to subscribe for

shares.

4

ORGANIZATION STRUCTURE

Organization chart \ structure of Bhavanagar unit is as under:

Personnel Production Engineering Marketing Administration

5

Senior manager

Vice President

General manager

Manager

S.R. Executive

Officer

Executive

Staff supervisor

Worker

TYPES OF PRODUCT

Excel is divided in to two parts:

1. Excel crop care Ltd.

2. Excel industry Ltd. among which,

Excel crop care Ltd. manufacture agriculture chemical and Excel industry

Ltd. ,manufacture industrial chemical. Most agriculture is being manufactured at

Bhavanagar unit. Their products are used for almost every crop grown in India with

major focus on cotton, Soya been, corn, vegetables and plantation crop like tea,

coffee and coco.

There are various types of products which are produce by Excel are as under.

1. White Phosphorous:

It is the basic raw material for producing the pesticides. Generally,

company is producing this product in the factory itself.

2. Butane Diol :

It is consumed by the Endosulfan plant. It can be used for a raw

material for other chemical industry. Company also provide this

product to the competitors as and when they required it.

3. Endosulfan technical:

Its turnover is 15 tones per day. A large portion of this product is being

exported, earning valuable.

4. Endosulfan 35 % E. C. ( Formulation ) :

It is uesd in crops like Alfa, tobacco, vegetables, fruits and todder.

Veering, ripening stage with a minimum waiting period before harvest.

So it is helpful to the every farmer.

5. Chloro Pyriphosphate:

It is used in producing the product of pesticides and insecticides. It is

used for manufacturing of tricel 20 % E. C. as a pesticides in

agriculture application.

6. Oxylic Acid:

It is used in leather industry for shining of tiles etc. The company

produce it for export purpose only.

6

MANUFACTURING PROCESS

1. Butane Diol:

Dormal denhyde Acetylene Agueousolution

First reactor

Catalyst

Fiteration

Treatment

Filtration

Distilotion

Disolver

Second

Reactor

Catalyst

2. Chloro Pyriphosphate

TCAC T.C.L. N.T.C.P.\ ACN

Reaction Fiteration

Dospatch Packing Product

7

TIME KEEPING SYSTEM

It is to be said that “Time is gold”.and considering the importance of

time every company make its own Time Keeping System that provide the complete

information regarding the arrival and departure of worker, staff, supervisor and

management. From this, the information regarding the panctuality can be obtain that

helps for the calculation of wage and salary of person doing their work in the

company.

This system is handelled by the personnel department.

Structure of time keeping:

1. Time keeper (shift A)

2. Time keeper (shift B)

3. Time keeper (shift C)

4. Time keeper (Shift D)

In Excel, for the time keeping system worker, staff, and management

follow the “Show Card System”.Company provide a card to every worker and

staff members.

When they enters in to the premises of the company they have to show

the card and the time, date, number of card will be automatically saved by the

electronic machine of this system.

Similarly when they leave the premises they have to again shown the

card so that their leaving time is automatically marked.There are three types of

card that are shown as below.

General Manager

Personel Manager

Chief time officer

8

1. Card No 0

2 .Card No 1

3. Card No 2.

Rules for late coming:

1.Workers

There are 10 minutes is allowed for late coming and after 10minutes

they given 5 minutes more to enter in to the premises. Otherwise half hour wages

will be cut down.

2.Staff Supervisor:

The staff supervisor of the company are allowed to come

10minutes late. After those 10 minutes they are given 19 minutes to enter in to

the company.After 29 minutes they won’t be allowed to enter in to the company

premises.

3.Management :

The management staff of the company is not allowed to come late in

the premises of the company. They have to come in a stipulated time. If they can

not come in time their salary of half day will be cut down by the company.

In Excel, 8 casual leave, 12 sick leave, 31 privilege is given to worker.

TIME SHIFT

1.Time shift for supervisor and labouror:

A.shift – 7:00 am to 3:00pm

B.Shift – 3:00pm to 11:00 pm

C. Shift – 11:00 pm to 7:00 am.

2. Shift for management functionaries:

D. Shift – 8.30 am to 5: pm

9

CONTRIBUTION OF THE UNIT

Excel, the well known industry for the production of agriculture product

becomes the leader by exceeding 4000 million. It build a very solid history by

exporting the product, it earn foreign currency.65% of the market share is

covered by the company.

This company is first in Asia to make Butane Dial and Endosulfane.

It is second in the world to develop Glyphosate phosphide, third in the world

regarding Aluminum phosphide and Endosulfane product.

Excel is the largest producer of phosphorous based pesticides in the

country.Excel is one type of boon , especially for the farmer. It export the

chemical in other country and import the chemical fertilizers for the farmers.

However, earn too much of profit.

So we can say that Excel is a company that provide the platform to all

person working in it regarding development, innovation, encouragement to

increase their inner talent and skills simultaneously. In the employment but also

facility to improve their living standards by providing employment and welfare

facility.

10

HumanResource

MANAGEMENT

INTODUCTION OF H.R.DEPARTMENT

An organization is made up of four resources namely (1).Man, (2).

Material, (3). Money and (4). Machinery among these foue resources the first

one is living one.i.e. Human that is consider as a very valuable assets of the

company because without this, all other resources are useless.Personnel means

manpower.It is one of the most crucial factors of organization. Personnel

management is made up of the management of workers, employer and people of

organization.

personnel management is important to increase productivity and

efficiency of the organization . So, it is the heart of every organization.

In short, HRM can be defined as “a process of procuring

developing and maintaining competent human resources in the

organization”. So the goals can be achieved effectively and in efficient

manner.

The range of people working in it is broad,approximately 763. So vast

function maintain by the personnel department. Excel has separate department

of personnel that doing the activities which are related to person.So it is a

“CENTER POINT” and play a very important role in the company.

Manpower strength in Excel is as under.

Male Female Total

Management 125 1 126

Staff

Supervisor

214 10 224

Worker 413 0 413

Total 752 11 763

11

ORGANIZATION STRUCTURE OF H.R. DEPARTMENT

General Manager

Chief Manager

Senior manager of personnel

Manager of personnel

Senior executives

Senior executive welfare Senior executive training

Executive of personnelExecutive of personnel

Staff supervisor

Senior personnel

Personnel officer

Peon

12

RECRUITMENT

“Recruitment is the process of identifying the prospective

employees, stimulating and encouraging them to apply for a particular job

or jobs in an organization”. The need of or recruitment arise due to the

following reasons.

1. Death

2. Retrenchment

3. Retirement

4. Resignation

5. New project

6. New Technology

7. Plant expansion

8. Other reasons.(installment, promotion, transfer, special skill development)

In Excel different source are used for recruitment which are as under.

1. Internal sources: ( promotion, transfer )

2. External sources:

a. Advertisement

b. Employee recommendation

c. Campus interview

d. Professional institutes

e. Employee exchange.

For the recruitment of labour they directly contact with employment

exchange, for supervisor post they are going for the very well – known

source that is advertisement, and for technical specialist person

proffessional institute are consulted.

Mainly three types of recruitment are as under.

1.Permanent Recruitment

2.Temporary

3.Apprenticeship

So, Recruitment is consider as a first step of procuring the adequate

workforce.

13

SELECTION

Selection is consider as a second step in the process of procurment of

people.It is the process of choosing the individuals who possess the necessary

skills, abilities and personality.So it is a negative process. Selection procedure in any

bussiness concern is a matter of choice

.

It is to be said that Selection is start at the end of the Recruitment.It is quite

complicated and expensive involving the several steps or nothing but to select a

proper person to match with the vacant job.

Excel crop care Ltd believes in” Right man for right job” selection process

is as under.

1. Jon analysis

2. Advertisement

3. Collection of application

4. Scruting of application

5. Conduct written test

6. Psychological tests

7. Personal interviews

8. Reference check

9. Medical examination

10.Final selection for appointment.

14

INDUCTION

Induction is “ Introduction of an employee to the job and the

organization.” Introduction is also known as orientation programmes.

Every employee has to work with fellow employees and his

supervisors. So it becomes necessary to make him \ her aware about them, the

policy and practice of the organization and this is to be fulfilled by Induction .

Because the purpose of Induction is to show the company to new employee.So

that he can take pride of his association with the company and they fell that the

organization is his \ her own.

In case of ignorance of proper Induction it would may result in to high

labour turnover,confusion, waste of time and expenditure.

Excel is famous for its family environment and they they work as a

family member.So it is not difficult for any new employee to become familiar

about it. However, he \ she is moved at various department in initial few days.

So he get the information regarding while organization. Excel is very alert for

this and never comprise in this matter.

15

PLACEMENT

After an employee has been hired and oriented, he or she must be

place in his or her right job. Placement is understood as the allocation of

people to the jobs, it is an assignment or re – assignment of an employee to a

new or different job.

“Placement may be defined as “the determination of the job which

an accepted candidate is to be assigned and his assignment to that job.

“

Thus, we can say that Placement is viewed as a positive process

involving filling up of positions with the most suitable candidates.

By this way Placement takes place after training and induction of the

selected persons.

Excel follows a policy of placement. After selection, the employee

directly place to his job – place and when he his place comfortably at his job

then and then he is introduced to the organization’s other department through

Induction.

16

TRAINING

Training is the process of teaching the new or existing employees the

basic skills that they need to effectively perform their jobs. Training is the

teaching and learning activities.

Training is the tool that helps the person to acquire and also implement the

required knowledge, skill and atitudes.So it is possible to compete any work

accurately and perfectly by well trained staff and experienced people.

Excel manufactured chemical which is very dangerous. So reduce the unsafe,

the company has to adopt special Training for workers. Separate Training and

development department which is known as EITEM (excel institute of technology

environment and management).

Methods:

Excel was giving training to its employees by PTT (Participating Training

Techniques). In Excel two methods are useful.

1. On the job method

2. Off the job method.

1.On the job method:

a. Performance appraisal

b. Experiment

c. Simulation

d.Demonstration

e. Apprenticeship.

2. Off the job method:

a. Pannel discussion

b. Role playing

c. Case study

d. Conference

e. Lectures. 17

Excel is having its own training center that is “Vivekananda Research Training

Institute “Excel has two halls with ISO certificate as well as LCD screen.

If required the employees are also sent to various different institute mentioned

below.

1. ITA

2. NSC

3. BMA

4. NITE

Excel gives the emphasis on training not only for effective in

productivity but also for producing a better citizen.

18

MANAGERIAL DEVELOPMENT

On one hand Training is short run process; on other hand development is a

long run process. It is not connected with the primarily skills but it is connected with

the systematic procedure by which conceptual and theoretical knowledge are to be

learned to the personnel managers, which will be helpful them for the higher

possition.

Excel gives the chance for the self development by arranging different type of

activity regarding development.

Excel crop care Ltd has a separate training and development department

known as EITEM (excel institute of technology environment and management).

Excel always takes in to consider the suggestions which are appropriate, which are

helpful for the development of the employees and the whole unit.

19

JOB DESCRIPTION

A Job Description is a broad statement of the purpose, scope, duties

and responsibilities of a particular job. That means Job Description describe job

not job holder.

Job Description provides both (1). Organizational information.(location,

structure, authority etc.) and (2). Functional information (the work). Job

Description defines job divison,duties and responsibilities which helps to keep away

the specific job from other job. The information obtain from it is useful for finding out

the qualities and qualifications required by a person in order to perform the job

efficiently.

management of Excel is having a positive attitude towards Job

Description .Without Job Description there would be over lapping of authority and

response of persons at different posts. The detailed given on Job Description of

Excel is as under.

1.Nature and Title of job

2.The operations and tasks involved in the job

3.Duties required to be performed

4.Location of the job, physicalrating and the comforts connecting with the job

5.Machine, tools and material required to the job

6.Types of supervision required the job

7.Relation with the other jobs in the organization

8.Working condition fir the job

9.Hazards connecting with the job

10.Opportunity for promotion.

20

PROMOTION AND TRANSFER POLICY

Promotion refers to the upward movement of employees from one job to

another higher one, with increase in salary, status and responsibilities.

Promotion may be temporary or permanent, depending upon the needs of

organization.

A Transfer refers to literal movement of employees within the same

grade, from one job to another. A Transfer is a change in job of an employee

without a change in responsibilities or remuneration.

Promotion Policy:

In Excel, there is a very good performance appraisal system by which it is

possible to evaluate the performance of person on the job. If the performance of

person is found more satisfactory then he is given promotion. Generally Promotion is

given on the basis of Seniority. Because in Excel, one belief that experience in any

task of a person make it efficient and effective means that is possible by senior

person.

Transfer Policy:

In Excel, the employees are transferred unless demanded, or specially

asked for by employee. Most of internal Transfer takes place in Excel.

21

PERFORMANCE APPRAISAL SYSTEM.

To appraise is to assess the worth or value. In the context of an industrial

organization. Performance Appraisal is a systematic evaluation of personnel by

supervisors or those who are familiar with their performance. In other words,

Performance Appraisal is a systematic and objective way of judging the relative

worth or ability of an employee in performing his \ her task.

It is the step where management can find out how effective the employees

are. A Performance Appraisal System is a process of evaluating an employees

performance of the job in terms of its requirment.

It is done for the purpose to give effect to promotions, transfer, assess

training needs, offer rewards, awards, punishment etc.

Excel has adopting “360 – Degree and Rating Scale Method Performance

“. At the end of each month, employees are given the appraisal form in accordance

with his / her designation which is to be filled by supervisors. At the end of each year

the employees who has highest rating is awarded. By this the person who has lower

rating, a reason behind their performance is discovered and if required they are

provided training.

22

WAGES AND SALARY ADMINISTRATION

“Wages and salaries are the compensation of the person for their work

that is done by them in organization.” So properly developed compensation

whether in form of salary or wages – system is required to attract, obtain, retain and

motivate people of required skills and qualification in the organization.

Wages and salary should fair and equitable. There should not be any type of

prejudice and favouritism in this matter. But it must be given on the basis of their

skill, performance in the real work.

In Excel first of all the file is given from time office to the personnel

department. On the basis of which they count the number of days of their work and

on this basis wages and salary are count for different category’s people.

In Excel on 7 Th of every month, wages and salaries are distributed. Salaries

are given to the employees in form of cheque. The employees can also for an

advance salary on the 22 nd of the preceding month. If they take loan, amount is

deducted from salary, amount of over time is add in the salary.

The following facilities are paid with salary every month.

Add the above matter

1. Daily allowance

2. Medical allowance

3. Education facility

4. Night shift

5. Petrol reimbursment

Less the following matter.

1. ESI

2. Installment if loan is taken.

The workers are given the wages on daily basis. On other hand the

staff supervisors are given the salaries on monthly basis.

23

EMPLOYEE STATE INSURANCE SCHEME (ESI)ESI scheme is the abbreviation of Employee State Insurance Sheme.

How this scheme is applicable and work in Excel, the informations regarding

this are as under.

In Excel, the employees whose salary is less than Rs. 15,000 per month,

given this scheme with following facilities.

(1). Free medical benefit to the employees and to their family members. There are 4

hospitals of ESI. Corporation in Bhavanagar.

(2). In case of employee’s injury and sickness 80% to 82 % of their salary is given to

him.

(3). In the case of death of the employees, his family members are given

compensation and pension also.

(4). Maternity leave for women workers for three month.

Calculation of it is as under.

1.75 % Amount from employees

4.75 % Amount given by the company.

6.75 % Amount is given as a contribution.

At the time of joining in the company they have to fin the form regarding this

scheme.

24

GRIEVANCE HANDLING PROCEDURE

Employees are the vital part of the company. To take care about their

satisfaction is necessary for any company. Because dissatisfaction leads adverse

effect on output, productivity etc. This dissatisfaction is nothing but Grievance

A Grievance is any dissatisfaction or feeling of injustice in connection

with one’s employment situation that is brought to the notice of the

management.

Complaints affecting one or more individual workers in respect of their

wage payments, overtime, leave, transfer, promotion, seniority, work assignment

and discharge would constitute Grievance.

In Excel two type of Grievance are arise that are

1. Mass Grievance

2. Individual Grievance

In Excel 80 % to 85 % of problems are solved with mutual

understanding. While 15 % to 20 % of Grievance are solved by following

procedure.

.

25

Aggrieved Employees

Top Management Trade union

Middle Management

Supervisor

Arbitration

EMPLOYEES WELFARE

One of the best ways to motivate the employees is provide welfare

measures. So that they can deliver maximum output in better manner.

In Excel, different facilities regarding welfare are as under.

1. Canteen Facility:

Excel has its own canteen for its employees. It provides tea at consessional

rate at 0.35 paisa and lunch at only Rs. 1 to their employees. Company provides

butter milk and banana to all.

2. Library:

Excel has full – fledge library having technical, non- technical books as well

as newspapers, magazins of interest, periodicals etc. are kept in large number.

3. Uniform Facility:

Company gives 3 pairs of uniform and washing allowance of Rs. 230 to the

workers and 2 pairs of uniform and washing allowance of Rs. 85 to staff every year.

The shoes are provided to every employee twice in year.

4. Bonus:

Excel gives handsome bonus along with sweet packet to their employees on

Diwali festivals.

5. Medical Facility:

The birth day chart is maintained by industry. So gift is given to all by general

manager.

There are other facilities which are as under.

Blood donation: Excel employees are encouraged for these activities and are give

special leave to the blood doner.

26

Milk facility : Every employee is provide 250 ml of milk every day free cost of before

they start their work in the morning and giving.

Sports policy: Sports competition or programmes are conducted from October to

December. Indoor gamess like chess, carom, badminton, table tennis, quiz and outdoor

games like authletics like loomrun, disk throws etc.

27

TRADE UNION

Trade Union is a continuous association of wages earners for the

purpose of maintaining or improving the conditions of their working lives.

Trade Unions are voluntary association to which a worker may or may not

join.

The Trade Union, through its leadership, bargains with the employer on

behalf of union members and negotiate labor contracts with employers. This may

include the negotiation of wages, work rules, complaints procedures, rules governing

hiring, firing and promotion of workers, benefits, work place safety and policies.

In Excel, two types of Trade unions are working which are mentioned

as below.

1. Workers union

2. Staff union.

Both unions are recognized by the management and registered under

the Trade Union Act 1928.

28

COLLECTIVE BARGAINING

“Collective bargaining s a process by which employers on the one

hand, and representatives of employees , on the other hand, attempt to arrive

at aggrements covering the conditions under which employees will contribute

and be compensated for their services.”

Why it is called Collective bargaining ? It is called “Collective” because both

the employer and employee act collectively and not individually in arriving at an

aggrement . It is known as “ bargaining” because the process of reaching an

agreement involves proposals and counter proposals, offers and counter offers.

The basic objective of Collective bargaining is to arrive at an agreement

between the management and employees determining mutually beneficial terms and

conditions of employment.

. There are two Trade union in Excel. So obviousally there exist Collective

bargaining. In this case, Excel arranges meeting of the management and the union

at every 3 years, in this meeting the union puts their demands and problems that

are negotiated upon with mutual understanding because of the family environment of

the Excel.

29

PERSONNEL RECORDS

Personnel Record is very important thing that include name, address, birth

date, date of appointment, hobbies, education, qualification, knowledge etc. of each

employees.

Personnel Record useful to provide ready information which preserves

evidence for taking some important decisions like selection, promotion, and transfer.

Excel maintains the Personnel Records are as under.

(1). Name

(2). Date of birth

(3). Qualifications

(4). Father Name

(5). Address

(6). Language known and mother tongue

(7). Sex

(8). Salaries

(9). Hobbies

(10). Experience

(11). Membership

(12). Blood group.

30

PROVIDENT FUND SCHEME

The purpose of Provident Fund Act 1952 is to provide safety and security to

the employees on their super annulations. If there are more than 20 persons in the

company then it is necessary to give it.

In Excel, Provident Fund 12% is deducted from the employees’ salary every

month and the same amount is contributing to the employee’s account and from this

8.33 % is for Provident Fund. Under the scheme employees get pension after

retirement and other amount is refunded when he retires.

Company has to send a yearly report to Ahmedabad, a regional office of

Provident Fund. The year followed by the head office is March to February and also

company must pay the amount of Provident Fund in bank after 15 days of payment.

31

HEALTH AND SAFETY MEASURES

The term “Health “is a positive and dynamic concept. In common words,

health implies absence of disease. However an industrial point of view Health is

defined as under:

“A state of complete physical, mental and social well – being and not merely

the absence of disease or illness or infirmity. “

In simple words, Safety means freedom from the occurrence or risk of injury

or loss. In other words industrial safety refers to “protection against accidents

occurring in the industrial establishment”.

The objective of safety department are

1. Zero accident

2. Make every one safe minded

3. Legal compliance

4. Maintain safe working procedure.

In Excel at bhavanagar agro chemical is produced. So required safety

measures which are as under.

1. Goggles:

It is used to protect eyes from the gas, chemicals and dust particales.

2. Helmet;

It is used to protect head from the material falling, during repairing of a

plant.

3. Ear plugs:

It is used against land noise in plant where the work man has to remain

present.

4. Cotton mask:

It is used against land noise in plant where dust particles are present.

32 5. Hand gloves:

For the protection of hand it is used.

6. Barrier cream:

Workers can use the cream while will not allow any chemical to come

in to contact with body.

33

MarketingMANAGEMENT

INTRODUCTION OF MARKETING MANAGEMENT

“Marketing is a social and managerial process by which individual and

group obtains what they need and want through creating and exchanging

products and values with others.” It includes the transfer of goods and services

from producers to consumer in process of distribution.

Marketing is everywhere and it is very comprehensive term. Customers

needs and wants are identified by the function of Marketing. By marketing it is

possible to serve various types of product, services and programs to the target

market and survive in the competition for a longer period of time.

Excel is considering as a large scale unit and is a huge manufacturer of agro

chemical. It owes monopoly for many products. It has the separate marketing

department of Excel play a important role in the success of the company.

34

ORGANIZATION STRUCTURE OF MARKETING

DEPARTMENT

Eastern Western Northern Central Southern

Zone manager Zone manager Zone manager Zone manager Z.M

Vice president

G.M. ( for agro chemical ) G.M. ( for industrial chemical )

Zonal officer

State in charge

Field assistant

Area representative

35

Buyers and sellers

First we try to understand that what is market? Market is a place where

sellers and buyers are get to gather for some exchange activities. There are two

types of market which are as under.

1. Preliminary Market

2. Secondary Market

Let’s understand these two types by a very simple narration of it that are….

1. Preliminary Market:

The market in which intermediaries like whole sellers and retailers are

to be used for the sale of the product and services.

2. Secondary Market:

The market in which the products and services are

to be sale to the final customer or in other words to the end user of related product.

The information regarding the sellers and buyers of the company is not

provided by the company.

36

PRODUCT PLANNING

Product is key element in the market. So the need for product

planning is exist. Product Planning is defined as an activities deciding of product to

be manufactured by the industry. It is related with information of new product is

domination of all product.

In simple words, product is a bundle of satisfaction that a consumer

buys and product planning is act of market, supervising the search development and

commercialization of new product.

In Excel, Product Planning is done in such a way that is available to its

users

1. Long range planning

2. Annual operation planning

3. Monthly planning

1. Long range planning:

Planning consist of 3 \ 5 years. It is for over all development of the

organization. It is done at corporate level.

2. Annual operation planning :

The annual operation planning is yearly plan after consulting the

concerned persons from different sites. It involves marketing,

production and purchase function. It considers

a. Market share

b. Market demand

c. Market competition

d. Distributors

3. Monthly planning:

The monthly planning is generally done in OPG (Operating Planning

Group). Meeting held as a corporate office. Here, planning is done for

Three months. It is effective for providing better review. The decision

are taken at head office Jogeshwari (Mumbai

37

Monthly planning

Month January February March April May

December 3 2 1 _ _

January _ 3 2 1 _

February _ _ 3 2 1

38

MARKET SEGMENTATION

A market segment consists of a group customers who share a similar

set of needs and wants. It is the strategy of “DIVIDE AND RULE “

Market segmentation means dividing a market in to distinct group of

buyers with different needs, characteristics, behavior who might required separate

product or marketing mix.

In Excel two bases market segmentation are covers which are as

under.

1. Area based segmentation

2. Product based segmentation

. Area based segmentation

North Zone East Zone Central Zone Southern Zone Western

Manager Manager Manager Manager Zone

Manager

l

Industrial chemical Agricultural chemical

Manufacturing unit Head office Branch office

Bhavanagar Delhi _

Roha Hydrabad Banglore

Selvasa _ Patna

Area based segmentation

Product based segmentation

Gajod, kutchh _ Madurai.

39

PRICING DECISION

Price is the one element of the marketing mix that produces revenue, pricing

is basically related to the basis of average total unit cost and some margin of profit,

price is to be fixed.

Generally the decision or policy regarding the price is framed at head office.

The company who has monopoly in the market can charge a higher price as it

wants. But it must be society oriented also. Otherwise it can not survive in the

market.

Enough opportunities were acquired by Excel to increase wealth. They never

think to get the advantage of shortage or market fluctuation.

Pricing Decision At Excel :

In Excel price is determined in the meeting of board of directors, marketing

manager and production manager. They follow the following price formula.

Production cost + Administration cost + Taxes + Profit = Total Price

There are various factors consider by Excel at the time of pricing policy which

are as under.

1. Objective of business:

Is to provide satisfaction and not to take advantage of fluctuation

2. Taxes:

Taxes like freight,sales tax, excise, octroi excise on agro product 8 % and

finished industry 15 % to 18 %

3. Cost of production:

Production costs like variable as well as fixed cost are consider.

4. Competitors:

There are no competitors of Excel but China is having power to beat Excel

because it has capacity to produce the product at cheaper rate than Excel.

5. Distribution policy:

Excel’s distribution channel is very high that play a very important role in it.

40

6. Government Policy:

Excel crop care Ltd. fixes the prices as per the rules of the government.

7. Other factors:

a. Wages and salary of the employees

b. Profit

c. Advertising and promotional expenses

d. Level of farmer

e. Price of raw material

f. Credibility in the market.

41

PROMOTION MIX

Promotion Mix is also known as Market communication. In today

marketing practices, a market promotion has much vital role.

Promotion Mix deals with those activities directed to increase sales

volume. It includes all those attempt that are directed towards increase the sales of

product on a continuous basis.

Market promotion is not only concerned with raising sales volume but

is also a tool for establishing long term relations with the parties involved and is a

matter of image, reputation and goodwill for the company.

Although advertising is often a central element of a marketing

communications programs, Apart from it there are many elements of it. That means

it consists of Six major model of communication.

1. Advertising

2. Sales promotion

3. Events and Experience

4. Public relations and publicity

5. Direct marketing

6. Personal selling

In Excel, in order to increase the volume of sales and maintain

Healthy relationship with its customer use following elements.

1. Advertising:

They use various types of advertising tools like news papers,

magazines, posters, television etc.

2. Events:

Excel arranges various types of events like management event, event

related to art etc.

3. Personal selling:

By use of Internet it is possible to increase the volume of sales for

Excel.

42

CHANNEL OF DISTRIBUTION

Channel of distribution indicates their routes of path ways through

which goods and services flow and reach to the customers. So it is consider as “ an

intermediate “ between producers and customers.

There are various types of distribution channel like,

1. Sales through Advertising

2. Sales through Traveling sales force

3. Sales through retail shop of manufactures.

In Excel different channel use for both product which are as under.

1. Agricultural product:

The Excel sent products firstly to the distributors (nearly 22 in Gujarat)

that provide to dealer. There should be 60 dealers. Then it is reached

at retailer that provides to the ultimate consumers means to the

farmers.

43

Excel

State central warehouse

Carried and forward agent

Distributors

Dealers

Retailers

Consumer (Farmers)

Excel

State central warehouse

Industrial buyer

2. Industrial Chemical:

Excel has a direct contact with industrial unit for its chemical and they

export also. So company does not have channel of distribution for

industrial products. How it reached to ultimate customers. Let’s

understand this by following chart.

44

MARKETING RESEARCH

Marketing Research is a function that provides necessary

informations about the customer to the market. Marketing Research that act as

a link between customers and marketers.

Marketing Research helps the marketing manager link the

marketing variable with the environment and consumers.

For Marketing Research Excel takes in to consideration the following

two steps.

1. Present situation

2. Planning and forecast

Excel has established Two research center.

1. C. C. Shroff research institutions.

2. Vivekanand research and training institute.

In this institution they make effort for water management try to reduce

the pollution and for other research activity. There is an atmosphere

forecast school. In the industry from which they can come to know

about the present and future atmosphere they can forecast about the

future demand for the market.

45

FinancialMANAGEMENT

INTRODUCTION OF FINANCIAL MANAGEMENT

Finance has served as Back Bone for any economy. In simple

words, finance management means raising of adequate fund at the minimum cost

and using them effectively in business.

According to Soloman “ Financial management is concerned with

the efficient use of fund and important economic resources that is capital

fund.”

We can see the importance of Financial Management in the following

information.

“Business takes money – manage the money - than he can earn more of the

money that he has taken “

Financial management is basically the management of Finance of the

business. So Financial management is necessary to carry on all activity without

finance activity is not possible to run. So it is consider as “ Life blood of business”.

46

ORGANIZATION STRUCTURE OF FINANCIAL

MANAGEMENT

Chief Manager A / C.

Senior Manager A / C.

Senior Executive

Manager

Senior Officer

Officer

Executive

Staff

47

FINANCIAL PLANNING

It will be not be any exaggeration to say that most of the time of a

finance manager is consumed in financial planning. “ Financial Planning may be

referred to as assessment of financial requirement and clear arrangements of

various sources of capital. So as to optimize on the cost and increase return to

share holders and accommodate at all times the carrying of the assets. “

At Excel, they have planning about long term as well as short term

financial planning. Short term financial planning is for yearly. Financial plan and

decision making are undertaken at central level.

In Excel financial planning are done from the head office. The head

office sends month cash to each unit as per requirement by the unit. All financial

expense biills are sent to head office every 10 days, like this it is sent three times in

a month. If more cash is required, the head office sends the amount for the unit.

48

CAPITAL STRUCTURE

Capital structure is the mix of sources from which the long term funds

required by business are to be or are raised. It decides the promotion of funds to be

raised by promotion of funds to be raised by issue of ownership.

It include equity share capital, preference share capital, and

amount raised from borrowing. i.e. debenture, bonds, public deposits etc.

A firm should always try to maintain an optimum capital structure. that

is to be obtain at that combination of debt and equity that maximize the total value of

firm.

Efforts regarding capital structure are made by financial manager in

Excel. Capital structure of Excel includes owner’s fund, equity capital, reserve and

surplus are there. Preference share is not issued but only in authorized capital.

Thus capital structure may be defined as relationship of debt and

equity decision relation to be taken very carefully. Information of our company is as

under.

Particular Rs. In Lakh (approximately)

Paid up share capital 550.28

Reserve and surplus 14552.14

Secured Loan 7905.62

Unsecured Loan 6891.83

49

CAPITAL BUDGETING

Capital budgeting decision means a decision as to what ever or

not money should be invested in long term project. It also involves ranking of

different proposals in terms of profitability for facility the selection of best proposal.

Capital budgeting may be used for replacement of an assets,

expansion program, diversification, modernization or for research and development.

In Excel, head office handle all the function of capital budgeting. They

also consider the future plan for capital budgeting and target is given to each

manufacturing branch by the head office.

Excel has invested 30 % of its total source in fixed assets. Ultimately

company is society oriented. So at the time of evaluating project it consider financial

as well as social aspect.

Capital Budgeting of Excel

Particular Rs. In Lakh

Share Capital 550.28

Reserve and Surplus 14552.14

Fixed assets 15558.74

50

MANAGEMENT OF FIXED ASSETS

Fixed assets are generally those type of assets which remains in the

organization for a long period of time, costly, expensive and give benefit for a long

period of time. Fixed assets are those which can not be convert in to cash

immediately, like machine, building etc.

In Excel different types of machinery, piping are available and their

management required proper planning.The manager or higher authority of the

organization firstly evaluate the requirement of Fixed assets for particular project of a

plant, if they find the project is beneficial . then give permission to invest in the Fixed

assets. All the activities are undertaken at the head office Mumbai. For the smooth

running of the industry they deducted the depreciation from it.

Fixed assets - Depreciation

Fixed assets turnover ratio:

To ascertain the efficiency and profitability of the business this ratio is

useful.

Sales

Fixed assets Ratio = Net fixed assets

The more the sales in relation to the amount invested in fixed assets,

the more efficient is the use of fixed assets.

In Excel, the fixed assets ratio turn over is higher, which reflects

efficient financial management and high profitability.

51

Fixed assets - Depreciation

MANAGEMENT OF WORKING CAPITAL

Working capital management involves deciding upon the amount and

composition of current assets and how to finance these current assets. Working

capital used to meet the day to day requirement of business.

Determining the appropriate levels of Working capital involves

fundamental decisions with regard to firm’s liquidity and trade off between risk and

profitability. The greater the amount of Working capital level maintained, the lesser

the risk of running out of cash but profitability will be less. In case of the lower level

of Working capital,the profitability will be greater but the risk of running out of capital

to meet the day – to day requirement will be less.

Excel Ltd. has seasonal market. Therefore, it required to manage the

Working capital very carefully to meet the regular as well as unexpected expenses

like cost of raw material, work in progress etc.

In Excel 50 % of total funds are invested in Working capital. In Excel,

each branch has it s own material management department, stores department. It

handles inventory at branch level and transactions regarding to purchase of raw

material and sales of finished are handled at central level. Excel has adopted

scientific inventory control system. So it never faces the crisis of inventory.

52

RECEIVABLE MANAGEMENTWhen a firm sales the good for cash, payment are receivable

immediately. So no receivable is to be created. But when the goods and services

are sell at credit, payments are received at future date and receivable that is

expected to collected in near future. The main objective to sale on credit is that its

sales are not lost to competitors.

Excel Ltd. has adopted selective credit policy. So it does not grant

credit to each and every customers whose financial position is good and payment

habits are favorable Generally company grant credit of 30 to 45 days. In many

cases credit for more than 3 months as after the season, the customers may get

money and they can pay. As company adopted the selective credit term, so

company is collection of receivable efforts and bed debts loss are minimum.

Excel crop care Ltd. has developed such an optimum credit policy

through its management which is giving marginal balance of cost and benefit. Such

liquidity position is very good. So, it is investing more and more amount in book

debts to attract customers.

53

INVENTORY MANAGEMENT.

Inventory is made up of the major investment in current assets. The

various forms in which a manufacturing concern may carry inventory are.

1. Raw material

2. Work in progress

3. Finished goods

4. Stores and supplies

Over investment is used to facilitate efficient and smooth production

and sales operation.

Under investment in inventory is to maximize profitability. Both

inventories are undersigned as both involve certain consequences. So proper

management is necessary.

Excel has adopted scientific inventory control system. So it never

faces crises of inventory.

In Excel, in each branch, they have their own material management

department where their safety decide about stock level and then demanding raw

material from head office. Head office is also adopting such techniques to fulfill the

demand of branch whenever it arises.

54

CASH MANAGEMENT

Cash is the most liquid asset in any business. It is a very crucial asset

in the day to day operations of a business firm. Cash is the basic input required to

run the business continuously and at the same time, it is also ultimate output

expected to be realized by selling the service or product manufactured by the firm.

The basic objective of cash is to reduce the operating cash

requirement to the minimum possible extent without affecting the routine

transactions.

Cash management is concerned with the managing of

( a ). Cash flows in to and out of the firm

( b ). Cash flows within the firm

( c ). Cash balance held by the firm at a point of time by financing deficit or

investing surplus cash

Excel has many branch at different place. So, it becomes more

important for it to do the cash management and in the best possible manner. Excel

has many selling depose, which are main sources of cash inflows. Therefore, the

planning of all the different locations formal total demand of cash for Excel crop care

Ltd.

55

RATIO

The relationship between two related items of the financial statement is

known as Ratio. It is useful to known the financial position of any company.

Ratio analysis is the very first technique to justify the financial position

of any company. Simple meaning of Ratio is “ Relationship in a percentage

manner known as a Ratio “.

There are two types of classification of Ratio which are as under.

1. Traditional classification

2. Functional classification

The financial position of Excel is analyzed by the various Ratios which

are as under. that is on the basis of the balance – sheet of Excel as on

31 – 3 – 2010.

Figures of assets, sales and liability, Net profit are in lakh.

1. Gross Profit Ratio

G.P. = G. P.

x

100

Sales

2. Net Profit Ratio

N.P. = N.P. (PAT)

x

100 Sales

3. Current Ratio = Current assets

Current Liability

4. Liquidity Ratio

Liquidity Ratio = Liquid assets

Liquid Liability

56

5. Creditor Ratio

Creditor Ratio = Creditor + Bills payable

x 365

Credit purchase

6. Debtor Ratio

Debtor Ratio = Debtor + Bills receivable x

365

Credit sales

7.Stock turn over Ratio

Stock turn over Ratio = Cost of goods sold

Average stock

Information regarding all these things are not provided by the company.

57

LEVERAGE

In very simple words, the Leverage means the relation between two

variables. In financial analysis, the term Leverage represents the influence of one

financial variable over some other financial variable. There are mainly three types of

Leverage may be computed.

1. Financial Leverage

2. Operating Leverage

3. Combined Leverage

Financial Leverage:

It indicates the firm’s ability to use fixed financial charge in EBIT on

The firm’s EPS (Earning per share). It indicate the extent to which the earning per

share will be affected with the charge in earning before interest and tax ( EBIT ) . it is

computed as

= EBIT

EBIT – Interest

Operating Leverage:

It measures the effect of change in sales quantity and operating

capacity on EBIT. It is computed as:

Sales – variable cost ( i.e. contribution )

Earning before interest and tax

Combined Leverage:

The combined effect of operating Leverage and financial leverage

measures the impact of change in contribution on EPS.

It is computed as:

58

Operating Leverage Operating Leverage

Sales – variable cost EBIT

EBIT EBIT - Interest

= Sales – variable cost

EBIT - Interest

Leverage is not applicable in Bhavanagar unit of Excel Ltd.

59

BIBLIOGRAPHY

All the information of the whole project, made by me, collected from the

following reference books.

( 1 ). Human Resource Management

By K. Aswathappa

Publish by Mahajan, Publishing house, Ahmedabad

Fist Edition : 2003 - 04

( 2 ). Marketing Management

By Kevin Keller and Philip Kotler

Published by person education ( Singapore ) Pte. Ltd.

New Delhi, Eleventh edition, 2005

( 3 ). Financial Management

By Prof. S.P. Shah

Dr. Paresh p. Shah

Prof. J. M. Shah

Dr. P. K. Priyan

Dr. Hitesh J. Shukla

Published by Tata Mc.

Grow HILL Education Private Ltd.

New Delhi,

Fifth Edition - 2008

60

AN

INDUSTRIAL VISIT REPORT

UNDERGONE AT

EXCEL CROP CARE LIMITED

PREPAID BY GUIDED BY

KAJAVADARA KRISHANA L. (SHAHEZAD BODILA)

(ROLL NO.-76) (LECTURER)

(S.Y.B.B.A.)

SWAMI SAHAJANAND COLLEGE OF COMMERCE &

MANAGEMENT

BHAVNAGAR UNIVERSITY

BHAVNAGAR

BATCH 2009 -2012