amul report final
TRANSCRIPT
EXECUTIVE SUMMARY
We have completed our live project on the AMUL INDUSTRIES PVT. LTD with
the help of our faculty and staff of Amul Industries Pvt. Ltd. We have given brief
information regarding our project.
We have collected the information as per under:-
1) INTRODUCTION: - In this we have included brief information regarding
the company.
2) GENERAL INFORMATION: - In this we have included brief
information, starting from the establishment of the company, with its
objective, type of unit, organization structure and employer services given to
workers.
3) PRODUCTION DEPARTMENT: - In this we have included brief
information regarding its products and its process, with production planning
and control, with quality assurance of products with the help of quality
objectives, policy, and control.
4) MARKETING DEPARTMENT: - in this we have included brief
information regarding all the required aspect to be successful in the
marketing activities and policy of AMUL INDUSTRIES.
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5) HUMAN RESOUCE DEPARTMENT:-In this we have included brief
information regarding recruitment. Selection, training procedure of this
company, with its job description, with its various schemes.
6) FINANCIAL MANAGEMENT:-In this we have included brief
information regarding financial planning of the company, and what is the
situation of Amul Industries in its working capital, fixed assets etc.
7) CONCLUSION: - In this we have included brief information regarding the
summary of the company and our views towards the company.
8) APPENDIX: - In this we have included the information regarding all the
diagrams and charts included in this report.
9) BIBLIOGRAPHY:- In this we have included all the information of the
resources whichever has been taken to get the knowledge.
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GENERAL DEPARTMENT
Picture: 1
3
HISTORY AND DEVELOPMENT
Amul industry was established before 46 years in 1965.it is one of the firms
manufacturing auto parts. At that time the company had started production as a
small scale unit.ADIGO SPARES INDUSTRY is the parent company of Amul
industry. It was established as a partnership firm. But in May 1995 as the firm was
converted into private limited company.
Now Amul is a powerful combination of tradition, ethos, and experience. Today
Amul is a leading global manufacturer of automotive components serving almost
every major vehicle manufacturer worldwide. Today Amul has become faster and
stronger than ever and determined to become more so.
Amul has created a value based enterprise uniquely positioned to provide
customers with innovative solutions that deliver best vehicle performance, quality
and value for their product.
Now the amul is employing about 6000 people & the Amul groups have 28 units
located in Rajkot, pune, Hyderabad, Jamshedpur, sanand, rudrapur, singur,
ranipet.this units are engaged in various products like connecting rod, cam shaft,
crank shaft, cylinder head, cylinder block etc.Amul have continued to transform
themselves through aggressive productivity improvement, leading-edge
technologies and sustained customers relationships.
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COMPANY PROFILE
NAME OF COMPANY AMUL INDUSTRIES PVT LTD
LOCATION 2, Aji Industrial Estate, Plot
no.332/333, Rajkot 360003(Gujarat)
India.
CHAIRMAN Chandubhai Santoki
FORM OF ORGANIZATION private limited company
BANKERS state bank of India
TELEPHONE/FAX ++91-281-2387762
91-281-2387461/898/815
E-MAIL [email protected]
WEB-SITE www.amulind.com
WORKING HOURS 8:00 hours
NO. OF MEMBERS 6000
ACCOUNTING YEAR 1st April to 31st march
LAND AREA 4, 00,000 sq.mt.
Table: 1
COMPANIES OBJECTIVES
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Every organization and person has its own goals and objectives. They make their
every effort in such direction that they can get their objectives as every as possible.
The some of the objectives of AMUL INDUSTRIES are as under:-
Diagram: 1
COMPANY LOGO
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Consistently reduce the customers complaints.
Consistently reduce the customers complaints.
Consistently reduce the rejection,re-work & process variation.
Improve product & process performance.
Picture: 2
MANAGING BODY Diagram:2
7
SIZE OF UNIT
8
CHAIRMAN:-CHANDUBHAI SANTOKI
M.D.: SURESH SANTOKI
DIRECTOR: GIRDHARBHAI PATEL
PRODUCT MANAGER: M. DAMODARAN.
SENIOR GM: MANOJBHAI KIYADA
FINANCE MANAGER: MUKESH TRIVEDI
SALES MANAGER: ATUL PATEL
HR MANAGER: MANOHAR PAREKH & KRISHNA THOBANI
On the basis of size, nature, capital investment, and production capacity industries
can be divided into 3 major groups:-
Diagram: 3
AMUL INDUSTRIES PVT LTD. Can be placed under the large scale group. It is
an industry in which total capital in fixed assets that is plant & machinery is more
than 3Cr ores there is no upper limit of investment.
“AMUL INDUSTRIES PVT LTD.” Is with 4, 00,000 sq mt area of land. At
present the investment in plant & machinery is about Rs.500 crores and have
classified as a large scale unit.
FORM OF ORGANIZATION STRUCTURE
9
SIZE OF UNIT
SMALL SCALE INDUSTRY
MEDIUM SCALE INDUSTRY
LARGE SCALE INDUSTRY
The form of organization structure can be divided into 3 groups which include:-
Diagram: 4
“AMUL INDUSTRIES PVT LTD.” Is a Large Scale Industry. It was established
as a partnership firm. But in May 1995 the firm converted into Private Limited
Company.
ORGANIZATION STRUCTURE
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JOINT STOCK
COMPANY
PARTNERSHIP FIRM
PRIVATE FIRM
The superior-subordinate relationship is defined by organizational structure. These
structures are somewhat like ROAD MAPS as they guide to official relationships.
Organizational structure indicates the people’s location or the positions in the
hierarchy and their relationships within formal organization. They aim in
determining which of the basic type of organizational authority structure a
particular enterprise has adopted.
When two or more persons work together towards a common goal authority and
responsibility are allocated among them so that their efforts may become effective.
This is the task of organizing. It is known as designing of an organizational
structure.
Structure of organization system is very much effective factor for any organization.
Any organization structure but in practice in any business unit it is inevitable to
distribute duties and authorities among different persons and department for an
effective implementation business policy of an enterprise.
The following is the organizational structure of an AMUL INDUSTRIES:-
ORGANIZATION CHART OF AMUL INDUSTRIES PVT. LTD
11CHAIRMAN
Diagram: 5
PRODUCTS ASSEMBLY
12
MANAGING DIRECTOR
GENERAL MANAGER
FINANCE MANAGER
MARKETING MANAGER
PERSONNEL MANAGER
PRODUCTION MANAGER
ASST. PRODUCTION
MANAGER
SUPERVISOR
WORKER
ASST. PERSONNEL MANAGER
WORKER
MARKETING MANAGER
AREA MANAGERACCOUNTANT
SENIOR CLERK
JUNIOR CLERK
AAST. FINANCE MANAGER
AMUL INDUSTRIES has already entered the business of 5 Cs to make it as an
automotive industry. The products of AMUL are known by 5 cs which includes:-
Diagram: 6
1) CONNECTING RODS:-
PICTURE: 3
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1)Connecting Rods 2)CrankShaft 3)Cam Shaft
4)Cylinder Blocks
5)Cylinder Heads
PICTURE: 4
14
2) CRANK SHAFT:-
PICTURE: 5
15
PICTURE: 6
3) CAM SHAFT:-
16
PICTURE: 6
17
4) CYLINDER BLOCKS:-
PICTURE: 8
5) CYLINDER HEADS:-
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PICTURE: 9
MANUFACTURING PROCESS
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AMUL INDUSTRIES follows the below manufacturing process to make
the automotive parts:-
Diagram: 7
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MILLING
GRIDING
DRILLING
HONNING
BORING
BROACHING
TIME KEEPING SYSTEM
The time keeping system of workers as well as officers is playing a vital role in
organization. If this systematic management is powerful then there will be reflect
result production capacity, demand for the product, inventor conversation period,
credit of a company and also in customer relation. The time schedule of officers
and workers are as under:-
Morning shift: - 8:30 A.M. TO 12:00 P.M.
Break Time: - 12:00 P.M. TO 1:00P.M.
Afternoon Shift:-1:00 P.M. TO 6:00 P.M.
Table: 2
Sometimes in situation of peak demand the workers are asked to work for overtime
also. The overtime duration is generally for 4 hours.
EMPLOYER SERVICES
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With wages and salary certain monetary and non-monetary benefits are given to
workers in mostly all the industries. These benefits are called facilities or
incentives or services provided to employees. These services are given to
employees to encourage them therefore all big company gives different types of
services to their employees. These services would induce workers to perform their
tasks properly and induce them to remain in that job only.
AMUL INDUSTRIES provide various loans to its employees as welfare activities
such as:-
1) Housing loans
2) Vehicle loans
3) Consumer durable loans
4) Marriage loans
Company provides interest free loans to its workers on occasion of marriage,
journey etc. Sometimes in case of accident the company provides first aid facilities
and in emergencies company also paid the whole expenditure of the treatment.
Company also provides 10% bonus to employees at the end of the year. The unit
contributes to KAMDAR RAJYA VIMA YOJNA, so that workers &his family can
get medicine, indoor and outdoor medical facilities from hospital of KAMDAR
RAJYA VIMA YOJNA free of charge.
CONTRIBUTION OF UNIT TO SOCIETY
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The following is the contribution of AMUL INDUSTRIES towards the
society:-
This company gives its contribution to the MAHILA ITI for the
betterment of woman and society at large.
This company has also made some of the gardens in the city for the
betterment of children’s.
This company has also made some contribution to the orphanage, & this
company has contributed for many of the social activities.
AWARDS & ACHIEVEMENTS
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...
Picture: 11
24
Picture: 12
25
PRODUCTION DEPARTMENT
Picture: 12
26
LOCATION
It is essential for each and every business organization to locate his industry at a place
where the cost production is low and for their raw material, labour, transport facility,
power, water, finance, market, etc. are required at low price. By it, they can also get
maximum production.
The beneficial reasons are as follows:-
Availability of raw materials.
Availability of laborers.
Water and power supply.
Transport facility.
Marketing.
Financial facility.
LOCATION OF AMUL INDUSTRIES UNITS:-
AMUL INDUSTRIES PVT. LTD. UNIT- 1
(RAJKOT) 2, Aji Industrial Estate, Plot No.332/333,
Rajkot -360003 (Gujarat) India.
Picture: 13
27
AMUL INDUSTRIES PVT.LTD.
(BOMBAY)
A/5- Anant Nagar, near N.L. high school
4, S.V. road, Malad(West),MUMBAI-400064.
AMUINDUSTRIESPVT.LTD(DELHI )
64, Devdoot apartments, D-block Vikasuri,
NEW DELHI-110018.
Picture: 14
28
Picture: 15
29
PROCUREMENT
Procurement is divided into 2 parts which includes:-
Diagram: 8
In AMUL INDUSTRIES it is procured by the approved supplier. It is judged by
quantity, quality, and delivery. Here list is given by customers. In this industry, if 3
or more than 3 suppliers are there then (SOB) share of business is done. Basically
it is on suppliers rating and on cost. This supplier rating is done on the basis of
quantity, quality, delivery and cost
Here in this industry there blanket purchase order which states the cost and port no.
In this system schedule rating is done. So according to the schedule rating weekly,
monthly, and daily schedules are made.
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PROCUREMENT
Procured Directly By The
Customers
Procured By The Approved Supplier
INVENTORY MANAGEMENT
Inventory is defined as a usable resource which is physical and tangible such as
materials. In this sense, our stock is our inventory, but even then the term is more
comprehensive. Though inventory is a usable resource, unless it is managed
efficiently and effectively.
Inventory management boils down to maintaining an adequate supply of something
to meet the expected demand pattern subject to budgeting considerations.
Inventory could be raw materials, work in progress, finished products or the spare
parts and other indirect materials. Effectiveness of the materials and production
functions depends to a large extent upon inventory management.
Inventories have to be procured, stored, and carried for a production system, since
a situation when they can be instantaneously available is difficult to assume Indian
setting .inventories are therefore necessary to stay.
In AMUL INDUSTRIES in every beginning of the month, physical inventory is
taken and based on that schedule is raised.
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STORE KEEPING MANAGEMENT
The aim of any business activity is to increase the value of the original resources
which are risked by the owners in the venture. The efficiency of the manufacturing
operations largely depends on the efficient functioning of the receiving and store
operations.
The benefits out of an efficient storing will bound to outpace the cost of
administering them. Storing is the service function and involves much of the paper
work, but then also there is an ample scope for simplifying and standardizing the
paper work involved in these functions.
In AMUL INDUSTRIES the store keeping management is based on three
functions which include:-
The quality of the end product largely depends on the quality of materials
received.
The smooth and uninterrupted production flow is dependent on the efficient
stores function.
The store organization acts as a custodian of stock items and all this affect
directly or indirectly the production cost.
AMUL INDUSTRIES follows the FIFO method. As its name suggest, is
governed by the principle that the materials which are received first are issued
first.
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RAW MATERIAL
In the production organization, the important inputs are-men, machines, and
materials which are result of the monetary commitments. Among them materials is
being a key and inevitable input, directly affects the fundamental economic
objective, viz., profitability of any manufacturing organizations. Efficient
management of any of the output directly affects the output and results in the
profitability of the organization. As material consumes lion’s share of the
investment and that too with a possibility of turnover, its efficient management
directly contributes to the profitability of the organization.
Every product has different raw materials. So AMUL INDUSTRIES have different
products like connecting rods, crank shaft, cam shaft, cylinder heads, and cylinder
blocks with different raw materials in it.
1) CONNECTING RODS:-
The raw material included in connecting rod is:-
Iron
Casting
Steel
Aluminum
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2) CRANK SHAFTS:-
The raw material included in crank shaft is:-
Carbon steel:-it includes manganese, chromium, nickel, silicon,
aluminum.
Iron
Carbon
3) CAM SHAFT:-
The raw material included in cam shaft is:-
Stainless steel or cold rolled steel
Zink alloy
Nylon
4) CYLINDER BLOCKS:-
The raw material included in cylinder blocks is:-
Aluminum
Iron
Alloy
Copper
5) CYLINDER HEADS:-
Multi layered steel
Graphite composite
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PRODUCTION CONTROL AND PLANNING
The basic objective of creating the production organization is to make products.
Thus production is the nucleus or the centre of the entire business operation.
Production planning and control functions look after the production activities.
Production planning and control comprise the planning, routing, dispatching and
follow up functions in the production process so that the movement of materials,
performance, of machines and operations of the labour.
This is a management functions which plans, directs, and controls a materials flow
system in the plant to achieve the targets set by marketing with almost economy
and efficiency.
There are two important characteristics of the products which the AMUL
INDUSTRIES take into consideration:-
Certain of utility
Addition of value
At the time of inquiry letters the buyer also provides the designs and drawing
according to his requirement. These drawings are studied and then after if the
engineer finds that the requirement product can be produced from available
drawings, he will ask the production manager to produce a few sample are
qualified the buyers than the whole lot of purchase undertake order and according a
production plan is prepared.
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QUALITY OBJECTIVES
Quality means the degree to which a specific product satisfies a particular class of
consumers or consumers in general or the degree to which it conforms to a design
specification or the distinguishing feature of a product’s taste, colour, and
appearance etc. Quality is the totality of features and characteristics of a product or
services that bear on its ability to satisfy a given need.
Quality is a very important for a manufacturer of products or services, because the
very existence of a manufacturer depends on the quality level. Good quality
ensures higher profitability, creates high goodwill.
AMUL INDUSTRIES has some of the objectives regarding the quality which
includes:-
Consistently reduce the customer complaints.
Consistently reduce the number of system non-conformities in on-going
internal studies.
Consistently reduce the cost of product manufacturing.
Consistently reduce rejection, rework and process variation.
Improve product and process performance
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QUALITY POLICY
Policies are the general statement that guides the process of decision making.
Whatever decisions and strategies are decided for accomplishment of objectives is
called policies. It creates a distinct image of the managers, executives, and
employees of the company. They give the idea of the efficiency of the company.
AMUL INDUSTRIES is committed for achieving “total customers satisfaction
“through:-
Consistently supplying quality products to our valued customers in
time.
Continually improving the quality standards by implementing process
control and prevention techniques.
Improving manufacturing facilities.
Complying with government and safety regulations.
Continually improve the effectiveness of quality management system.
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QUALITY CONTROL
Quality control is to see that the product or services is designed in such a way so
that it meets customer’s specifications. It also sees that the product or services used
by a customer is not harmful or injurious and meets safety needs.
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Quality of a product can be controlled at the following stages of production:-
Diagram: 9
39
AT DESIGN STAGE
AT PURCHASING
STAGE
AFTER PRODUCT
IS SOLD
AT PRODUCTION
STAGE
AMUL INDUSTRIES take care in quality of their product with special term. In
this they depend on machines and manpower also in quality control machine they
use micro analysis.
Quality control is done on basis of:-
Multi dimensional parameter & Co-ordinate machine.
Surface checking and Talley rand roundness checking.
QUALITY ASSURANCE
Quality assurance refers to the assurance to customers that the products, parts,
components, tools etc. contain specified characteristics and are fit for the intended
use. Quality assurance is concerned with determining the procedures to be used
and frequency of check or test to be made within the system so as to ensure that the
system is meeting the specification incorporated in the product/service design.
In AMUL INDUSTRIES when a new product comes than quality assurance starts.
This activity is called as APOPC (ADVANCE PRODUCT QUALITY
PLANNING).the various machine used for measuring assurance of the quality is as
under:-
MULTI CHECKING GUAGE:-machine is used for 100% checking of
quality assurance.
COMPRESSOR STAND:-to check the width of machine.
AIR GUAGE:-small and big bore checking machine.
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PLUG GUAGE:-if tolerance is higher than level or to check the
speed.
Picture: 16
41
LIST OF MAJOR MACHINES
CONNECTING ROD:-
The following are the machines for connecting rod:-
Grinding machine
Buch press & oil hole machine
Boring machine
Rough boring machine
Notch machine
Tough machine
Bolt hole machine
Final per face machine
Vertical milling centre
Tapping
Noting machine
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Fracturing machine
CRANK SHAFT:-
The following are the machines of crank shaft:-
Facing and countering machine
CNC turning machine
Pin milling machine
Oil hole drilling machine
Induction hardening machine
Journal grinding machine
Pin grinding machine
FOD(flange outer diameter) grinding machine
VMC(vertical machining centre)
Balancing machine
Super finishing machining.
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LATEST TECHNOLOGIES
AMUL INDUSTRIES manufacturing facilities are backed up with latest and
precision measuring system. This facility is gudded by specially latest technologies
which are as follows:-
UTM
Microscope
Spectroscope foe chemical and physical testing
Latest CMM(three co-ordinate measuring machine)
Scan max
Marposs final inspection gauge(to check parameter of connecting rod at a
time)
Electronic torque tester
Nut runner
Cakribration masters for dimensional checking
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MARKETINGDEPARTMENT
45
Picrure: 17
INTRODUCTION
Marketing is typically has been seen as a task of creating, promoting and
delivering goods and servicing to the customer and business. Marketing is in ten
types of entities: goods, services, experience, events, persons, places, properties,
organization, information & ideas.
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According to social definition “marketing is the social process by which
individuals and groups obtain what they need and want to creating, offering and
freely exchanging products and services of value with others”.
According to American association “ marketing is the process of planning and
executing the conception, pricing, promotion and distributions of ideas, goods,
services to create , exchange that satisfy individuals and organizational goal.”
ORGANIZATION CHART OF MARKETING DEPARTMENT
47
MARKETING AND SALES MANAGERS
MARKETING RESEARCH &
DEVELOPMENT
FEILD
Diagram: 10
PRODUCT PROFILE
1) CONNECTING ROD:
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MARKETING AND SALES
QUALITY CONTROL OFFICER
ENGINEER
FIELD & CLERICAL STAFF
CUSTOMER RELATION PERSON
SALES FIELD ASSISTANT
CORRESPONDENCE CLERK
Picture: 18
A rod that transmits motion or power from one moving part to another, especially
the rod connecting the crankshaft of a motor vehicle to a piston. In a reciprocating
piston engine, the connecting rod or conrod connects the piston to the crank or
crankshaft. Together with the crank, they form a simple mechanism that converts
linear motion into rotating motion.
Connecting rods may also convert rotating motion into linear motion. Historically,
before the development of engines, they were first used in this way.
As a connecting rod is rigid, it may transmit either a push or a pull and so the rod
may rotate the crank through both halves of a revolution, i.e. piston pushing and
piston pulling. Earlier mechanisms, such as chains, could only pull. in a few two-
stroke engines, the connecting rod is only required to push.
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Today, connecting rods are best known through their use in internal combustion
piston engines, such as car engines. These are of a distinctly different design from
earlier forms of connecting rods, used in steam engines and steam locomotives.
2) CRANK SHAFT:
Picture: 19
The crankshaft, sometimes casually abbreviated to crank, is the part of an engine
which translates reciprocating linear piston motion into rotation. To convert the
reciprocating motion into rotation, the crankshaft has "crank throws" or
"crankpins", additional bearing surfaces whose axis is offset from that of the crank,
to which the "big ends" of the connecting rods from each cylinder attach.
It typically connects to a flywheel, to reduce the pulsation characteristic of the
four-stroke cycle, and sometimes a torsional or vibrational damper at the opposite
end, to reduce the torsion vibrations often caused along the length of the crankshaft
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by the cylinders farthest from the output end acting on the torsional elasticity of the
metal.
3) CAM SHAFTS:-
Picture: 20
If the cylinder heads represent the aerobic side of an engine, and
the rotating assembly is its muscle, then the camshaft must be
the brain. The cam is the component that signals when the valves
open and close, timing the valve events to create power.
Camshaft is a shaft to which a cam is fastened or of which a cam forms an integral
part. Appropriately, the cam is also the most complex and often
baffling component in an internal combustion engine.
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4) CYLINDER BLOCK:-
Picture: 21
Cylinder heads are an integral component of internal combustion engine.
High performance cylinder heads that are used in automobiles these days
are basically the castings which houses spark plugs, valves, fuel
injectors and support the different parts of cooling system. Raw
materials used for making cylinder heads are aluminum, iron, nickel
alloys, copper, titanium, stainless steel, zirconium, carbon steel, and
brass, bronze and galvanized steel. The chief function of cylinder head is
to help the head gasket seal the cylinders properly so that they are able
to build enough compression for engine operation.
5) CYLINDER BLOCK:
52
Picture: 22
Cylinder-head-sector, also known as CHS, was an early method for giving
addresses to each physical block of data on a hard disk drive. In the case of floppy
drives, for which the same exact diskette medium can be truly low-level formatted
to different capacities, this is still true.
Though CHS values no longer have a direct physical relationship to the data stored
on disks, virtual CHS values (which can be translated by disk electronics or
software) are still being used by many utility programs.
CHS addressing is the process of identifying individual sectors on a disk by their
position in a track, where the track is determined by the head and cylinder
numbers.
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PRODUCT PLAN STRAEGY
First of all AMUL INDUSTRIES concentrates on the need of consumers then
produces to satisfy those needs of the consumers. Product planning is defined as
the process of deciding in advance every factor related to product. Each company
have their own product planning and strategy.
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Amul industries while dealing their product plan and strategy keep in mind the
following points:-
MARKET demand.
Consumer NEED.
After going through the above factory plans are made for the production and
distribution of products, but the main aim remains to meet with consumer needs
and demands to know the consumer need market research is carried out, through
small market research team.
PRODUCT PLANNING
AMUL INDUSTRIES is engaged in auto parts. They have to maintain quality.
They have good laboratory. They check the raw materials first in the automatic
machine which they are using are found very rare in India that quality is controlled
itself. They are one of the manufacturers of connecting rod and crank shaft in
India.
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AMUL INDUSTRIES have adopted ISO/TC 16949:2002 quality systems to ensure
continuous quality improvement and highest customer’s satisfactions. Proper
blending of a high tech conventional manufacturing technologies in house,
expertise, testing, and metrology laboratories and S.Q.C culture gives us an edge to
achieve the highest quality standard cost competitiveness and shortest supply
schedules to satisfy the customer needs.
AMUL INDUSTRIES committed in building a quality organization with customer
as the main focus by making available them products and services, which
adequately meet their requirements and thereby ensuring their satisfaction.
PRODUCT DECISION
Product decision means taking a decision about product i.e. decision related with
price of the product, quality of the product, packaging of the product, branding of
the product etc.marketing manager has to take such a various decision related with
product. He has to also taking decisions about product length, product width,
product variety, product mix etc.
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Sometimes in product decisions, he has 2 alternatives decisions i.e. either produce
a new product or improve the existing product.
In AMUL INDUSTRIES marketing director takes all types of product decisions
whether it is related with price, quantity etc.it is always improving the product
quality continuously sometimes if provided then it may also produce a new
product.
PROCESS OF PRODUCTS
1) A)CONNECTING ROD PROCESS(SMALL CARS):-
The following are the steps followed to make a connecting rod:-
Rough face grinding
U-drill
Reference pad
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Rib milling
No.rib milling
No. marking
Spot face
Pre-boring
Cutting
Joint face
Toung milling
Joint face angel
Groove
Groove chamfer
Assembly rough
Bolt hole
Tapping
Assembly final
Final face grinding
Rough boring
Final boring
Chamfer
Top face
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1st & 2nd face
Oil hole
S.E.(small end) honing
Bush press
Reference pad correction
Balancing
B.E.(big end) honing
Bush bearing
Notch
B) PROCESS FOR MARUTI CARS:-
The following are the steps included in process of connecting rods only for Maruti
cars:-
Forging
Grinding
U-drill
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Rib milling
Spot face
Cutting
Joint phase
Pre-boring
Bolt hole
Final spot face
Broaching
Big & oil hole
Notch milling
Assembly
Final grinding
Final boring
Chamfer
Honning
Assembly line
Final dispatch
2) CRANK SHAFT PROCESS:-
The following are the steps included in the process of making a crank shaft:-
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Forging
Turning
Grinding
Low run diameter
Pin grinding
Multi drilling and tapping
Polishing
Cleaning
Checking
Assembly.
NEW PRODUCT DEVELOPMENT
The process is followed by the industry for the development of new product:-
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Diagram: 11
PRODUCTION AND DEVELOPMENT
62
INQUIRY FROM CUSTOMERS
MULTIDISCIPLINARY TEAM (MDT)
PURCHASE ORDER
PART PER APPROVAL PRODUCT(PPAP)
PRODUCTION PLANNING
There is a separate research and development department. The organization
structure can be drawn as following:-
Diagram: 12
The engineers is always in search of new drawing with respect to the size, raw
materials, chemical composition etc. if he is not satisfied with these studies than he
may change the drawings. Being an industrial manufactures of basic goods the
demand is comparatively officer adopts a special technique for further promotion
of sales. The product designer is in search of quite simple designs.
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RESEARCH DEVELOPMENT
ENGINEERS
SALES DEVELOPMENT OFFICER
PRODUCT DESIGNER
SUBORDINATES
MARKET SHARE
The team “market share” is used frequently; essentially, it refers to the
proportionate of the total sales at a product during a specific time period in a
specific market that is captured by a single firm, market share can refers to entire
industry, narrow segments or particulars geographic areas and also can apply to
past, present and for future time periods.
The analysis of market share is needed to compare the company’s sale with
industry’s sales. Comparing of company’s sales result with its defined goals
certainly it is a useful form of performance evolution. But it does not tell how the
company is doing relative to its competitions. This is nothing but a detailed study
of market share analysis which indirectly helps in accurate forecasting of demands
for a product for successful marketing planning.
As AMUL INDUSTRIES has a wide and international market it also face big
competition but due to it quality AMUL feels a strong position in the market.
64
MARKET SEGMENTATION
The following are the market segmentation of AMUL INDUSTRIES:-
Diagram: 13
Table: 3
65
CAR SEGMENT
SUV (sport utility vehicle)SEGMENT
MUV (multi utility vehicle) SEGMENT
TRACTOR SEGMENTHCV (heavy commercial
vehicle) SEGMENT
LTV (light truck vehicle) SEGMENT
COMPRESSION SEGMENT
DIFFERENT SEGMENTS OF
AMUL INDUSTRIES
MARKET SEGMENTATION
CAR SEGMENT MARUTI, INDICA
COMPRESSION SEGMENT IR
MUV ( multi utility vehicle)
SEGMENT
XYLO, MARUTI, INDICA
SUV ( sport utility vehicle)
SEGMENT
SCORPIO, MARUTI, INDICA
HCV ( heavy commercial vehicle)
SEGMENT
TATA MOTORS, ASHOK LEYLAND
TRACTOR SEGMENT JOHN DEERE, MAHINDRA, EICHER.
66
PRICING POLICY
Pricing is the one of the critical decisions for the marketing department. So we
need to understand the term pricing. Economist defined the price as the exchange
value of product or goods or services in terms of money. The main objective of
pricing decision is to earn maximum revenue from business as the marketing
function has an important role to play in marketing field. It plays a greater role in
marketing mix the company as it is the only element in marketing mix which is
responsible for demand and sales volume.
Price is the only one element that produces revenues or incomes. The other
element such as product, promotion, distribution, advertising, marketing research
and development, sales force etc. All these elements do not produce the revenue or
income but incur some cost. Pricing decisions affects the most to financial well
being of the company.
AMUL INDUSTRIES generally uses cost plus pricing method for taking pricing
methods. Their profit margin ranges between 10% to 25%. It differs from product
to product. Sometimes price is also determined through negotiation between two
parties i.e. company and purchaser. The minimum price can be established at a
breakeven point.
67
CHANNELS OF DISTRIBUTION
Marketing unit consists of 4 Ps and physical distribution is one of them. It is also
known as distribution channel. It is the link between producer and consumer.
Distribution channel is the link between the producer and consumer. It is the link
or channels by which producers send its goods from producer place to consumer
place.
Proper channel of distribution should be selected so the product can be easily
reached into the hands of final consumer. The choice of channel of distribution
depends on nature of product, financial resources, business tradition etc.
There are 2 methods of channel of distribution which includes:-
Diagram: 14
68
CHANNELS OF DISTRIBURION
DIRECT METHOD
INDIRECT METHOD
Direct method refers to the selling of the product directly by the manufacturer to
customers. While indirect method refers to selling of the products engaged at
through various Medias such as wholesalers, retailers, agents etc.
AMUL INDUSTRIES follows the direct method of channel of distribution. They
directly sale the products from consumer to buyer.
GIVE GOODS
MANUFACTURER CUSTOMERS
PAYS MONEY
Diagram: 15
69
MARKETING RESEARCH
Marketing research is the systematic design, collection, analysis and reporting of
data and relevant to a specific marketing situation finding the company.
Generally marketing research includes the following elements:-
Determination of market characteristics.
Measurement of market potentials.
Market share analysis.
Studies of business trends.
Short range forecasting.
Competitive studies.
Long range forecasting.
Pricing studies.
Theory of existing products.
As far as AMUL INDUSTRIES is concerned, it undergo the whole of the above
Of the above process. Sometimes for marketing research it considers only studies
of business trends, short range forecasting, competitive product studies and testing
of existing includes the survey of different markets of different zones, area etc.
70
CUSTOMERS
Today our list of customers includes almost all automobile giants in India
including Tata motors, Ashok Leyland, new Holland tractors ltd., Mahindra &
Mahindra, Eicher, Swaraj engines, greaves, Simpson & co., same Deutz and also
customers from other areas like generators, compressors & diesel engines.
Cummins India ltd., Ingersoll rand, kirloskar engines, Voltas, Tecumseh products
(i) ltd. to name some of them.
we also export our goods to overseas O.E.M customers like iveco-Italy, lombardini
- Italy, same Deutz - Italy, Chinook compressors - Italy, knorr-bremse -France,
FMC- USA, john Deere - USA, our goods are premium products in countries like
USA, UK, Italy, Germany, France, Egypt, Dubai, Africa and other over 60
countries in the after markets of Mercedes, Perkins, Cummins, Toyota, land rover,
john Deere, ford, Deutz, cater pillar, Isuzu and other renowned international
companies.
71
Picture: 24
72
Picture: 25
73
INTERNATIONAL MARKETING
Picture: 26
AMUL INDUSTRIES products are also exported to overseas OEMs like:-
Iveco - Italy
Lombardini - Italy
EMC – USA
John Deere – USA and many more.
This industry is also exporting their products to more than 20 countries in Europe
and Middle East countries for heavy and medium commercial vehicles as well as
compress. Their disciplined system of working state of the art technology and high
degree of quality controls have fetch them ISO 9002(1904) QS (1998) as well as
TS 16949 accreditations.
74
HUMAN RESOURCE DEPARTMENT
Picture: 27
75
INTRODUCTION
Among all the means of production are only living means. The problem of
personnel should be carefully solved in order to conduct the work efficiently
satisfied employees are considered to be an asset of unit.
Personnel management is a part of management, it has the relation with the work
of recruitment, development, maintenance and their harmony between objectives if
workers at every level and to achieve them. .
It is important to have a good organization structure, but it is even more important
to fill the jobs with right people a company may be successful with an organization
structure which is very far from the best, but it will never be able to get of the
ground if the people who run it and those who do the actual work are capable.
76
ORGANIZATION STRUCTURE OF HUMAN RESOURCE
DEVELOPMENT
Diagram: 16
77
MANAGING DIRECTOR
PERSONNEL MANAGER
ASST. PERSONAL MANAGER
SUPERVISORS
WORKERS
RECRUITMENT
Picture: 28
Recruitment is the process of acquiring at the right time, in the right number, for
the right position, person with right qualification. Thus, scientific recruitment co-
ordinates, number, time, position, and qualification. Recruitment is to find out
probable employees and make them apply. A contended work force can be created
only by scientific recruitment. Scientific recruitment is possible only when there is
man power planning.
78
In AMUL INDUSTRIES recruitment process is divided into two categories which
include:-
Diagram: 17
1) RECRUITMENT TOR STAFF:-
AMUL INDUSTRIES follows 2 methods for recruitment to staff:-
A) INTERNAL SOURCE:-
AMUL INDUSTRIES recruits the person through internal sources by only
promotion. The company used in internal sources only for managerial
person. The man who is getting the promotion should be the employee of the
company. This is the best beneficial sources of the recruitment.
79
RECRUITMENT PROCESS
RECRUITMENTFOR STAFF
INTERNAL SOURCES
EXTERNAL SOURCES
RECRUITMENTFOR WORKERS
B) EXTERNAL SOURCE:-
The company recruits the staff in external sources through colleges and
agencies. Company takes written test, interview and recuit.only first class
candidates for experienced man company gives advertisement in newspaper
etc. most of the time recruitment is done of fresh diploma or degree holder
only in the some cases company uses newspaper and magazine.
2) FOR THE WORKERS:-
Generally in AMUL INDUSTRIES the external sources are used for the
recruitment of the workers. For e.g. fitter, turner machinist and helpers etc. for this
type of Workers Company give advertisement but mostly company gets the
workers by the references of the senior workers.
SELECTION PROCEDURE
80
Picture: 29
Selection is to select the proper candidates from the applications received.
Compared to other factors, success or otherwise of an enterprise depends more on
its personnel. So selection of a proper candidate is very necessary. Selection is to
choose the right person for the right job from the application received.
AMUL INDUSTRIES follow the selection procedure with the help of the
following stages:- diagram: 18
COLLECTING THE APPLICATION:-
81
COLLECTING THE APPLICATION
WRITTEN TEST
INTERVIEW
MEDICAL CHECK UP
FINAL SELECTION AND PLACEMENT
Prospective candidates will apply on the basis of reference given by the
reference groups and recruitment officers will collect all the applications. On
the basis of the application received the selection process starts.
WRITTEN TEST:-
Here I.Q. test is taken to test the common sense, memory and smartness of
the candidate. Due to this test the selection procedure will become more
scientific.
INTERVIEW:-
If the candidate passed the written test he has to face interview which is
taken by the committee of the company’s members. On the basis of this in
charge make final selection.
MEDICAL CHECK UP:-
The candidate who has successfully passed the interview is sent for a
medical examination to a specified doctor or hospital. The purpose of such
examination is to decide whether the candidate is physically fit to carry out
work allotted to him.
FINAL SELECTION AND PLACEMENT:-If the candidate successfully
passes through the above stages then he is finally selected.
TRAINING
82
Picture: 30
Without experience and expertise, proper functioning is not possible. However
efficient the personnel recruited may be. The function of staffing is not merely to
get personnel but to train and retain them as well. An effort is made throughout
training to make the employee proficient in the work concerned. So the knowledge
and education imparted for gaining proficiency in business is training.
While a person is accepted to do a particular job effectively and efficiently, he
must know that job perfectly for making the worker familiar with the work and to
improve his efficiency. Most of the companies adopt training for newly recruited
workers because company mostly recruits experienced workers.
Then also according to the apprentice act, 1961 it is compulsory for the company
to recruit apprentices for one year. So AMUL INDUSTRIES follows this rules
recruit apprentices. During the training company arranges various programmes as
per requirement of the company trainee’s gets employment as permanent
employees.
MANAGEMENT DEVELOPMENT PROGRAMME
83
In AMUL INDUSTRIES the management development programmed is based on
the 5 principles which include:-
Diagram: 19
SEIRI – ORGANIZATION/SORT OUT
SEITON – ORDERLINESS/ SYSTEMIZE
SEISO – THE CLEANING/ SHINING
SEIKETSU – STANDARDIZE
SITSUKE – SUSTAIN/ DISCIPLINE
84
2) SEITON 3) SEISO
4) SEIKETSU 5) SHITSUKE
1)SEIRI
This 5s is developed by the Japanese
Helps to create a better working environment and a consistently high quality
process based system.
With the help of 5s the advantages occurred at the end of the day includes:-
1) Neat and clean workplace
2) Smooth working
3) Obstruction free work space
4) Increased safety
5) Improved productivity
JOB DESCRIPTION
85
Job description means describe the nature of job. It is a written record of duties,
responsibility of the particular job in starting. Job description means to give the
information and guidance to the candidate about their particular for which they are
selected.
When a particular person is selected and included in its unit, the specific job
description process is handled and nature of the job, duties and responsibility, job
summary, working condition, position and status in organization etc. is given to
them.
In this company the higher authority assign the work to his subordinates and every
employee are assigned and the employee are responsible to his superior and if the
work is assigned with job description then the assigned work would be done earlier
and efficiently. So they are giving importance to job description.
PROMOTION AND TRANSFER POLICY
86
PROMOTION:
A promotion may be defined as upward advancement of an employee in an
organization job which command better pay wages, better status or prestige and
facilities and higher rank. In this company employees are given promotion on the
basis of their skills, ability, and experience unlike government, seniority doesn’t
affect promotion. For the purpose of promotion the management collects the detail
of the employee relating to his ability in past performance, gets the promotion from
bottom level to middle level in rare they promoted up to exclusive level.
TRANSFER POLICY:
The process of placing a staff member from one place to another without any
change in responsibility or salary is transfer. The transfer can be by the following
reasons which include:-
Elimination of boredom resulting from same work place.
To take advantage of any special skill of the staff member transferred.
Physical changes in the person concerned
In this company transfer policy is based on to take the advantage of any specialized
skill of the staff member transferred. Here the transfer policy is clear and
transparent in order to avoid a feeling of discontent among the staff. The transfer is
based by taking the staff into confidence.
WAGE AND SALARY ADMINISTRATION
87
In these days of globalization, both the business and workers will have to
understand their respective responsibilities and implement the wages and salary
that open up new horizon for the development of enterprise. Wage is the return
given to workers for their efforts. An ideal wage and salary system is concerned
with acquiring efficient and capable workers, retaining them in the organization
and providing the opportunities for their growth.
AMUL INDUSTRIES follow the below mentioned structure for wage and salary
administration which includes:- Diagram: 20
FOR HELPERS:-
88
WAGE AND SALARY STRUCTURE
SKILLED WORKERS
SEMI SKILLED PERSONS
FRESHERS OPERATORS
HELPERS
H1H2
F1F2
S1S2
S1S2
H1:- directly came to the company without any experience.
H2:-came to the company having 2 or 3 months experience with it.
FOR FREASHORS OPERATORS:-
F1:-directly came to the industry without any experience.
F2:- came to the company having 2 or 3 months experience with it.
FOR SEMI SKILLED PERSONS:-
SM1:- came to the company having more than 1 year experience from other
companies.
SM2:- came to the company having more than 2 years experience from other
companies.
FOR SKILLED PERSONS:-
S1:- came to the company having more than 3 years experience from other
companies.
S2:- came to the company having more than 5 years experience from other
companies.
ESI (EMPLOYEE STATE INSURANCE) SCHEME
89
As per the government rules if the company is inside and around the city of
15 kms, then ESI( employee state insurance) scheme is applied.
If the company is outside the city of 15 kms. Then WC (workmen
compensation) act is applied.
If the salary of an individual is below 15000 then ESI will be cut and will be
counted on gross salary.
The ESI which is applied on salary is divided into two parts:-
1.75% to employee contribution.
4.75% to contribution in employer on gross salary.
PROVIDENT FUND SCHEME
90
According to company’s rule the PF is counted on 60% or 40% as basic
from the total salary.
As per minimum wages 4600 rs. Basic salary+ D.L. allowances=actual basic
salary.
In these scheme 12% contribution in PF of employees
There is also 12% contribution in PF of employers.
The 12% of contribution in PF of employers is divided into 2 groups:-
8.33% pension scheme 3.67% contribution in PF
So the total PF contribution comes to 15.67%.
The contribution of PF also includes:-
1.10% EDLI changes
0.50% administration charges
0.01% EDLI administration charges.
GRIEVANCE HANDLING PROCEDURE
91
Grievance is a written complaints filed by an employee claiming unfair treatment.
It is a real or an imagine filling at personal injustice which an employee’s has
concerning employment relationships. Thus when only one employee has done
problems and his complaint then it is called grievance.
The following are the steps included in grievance handling procedure:-
STEP: 1 – firstly the employee explains his grievance to his supervisor; the
supervisor tries to settle the problems.
STEP: 2 – if the supervisor cannot solve the problems, personal manager is
consulted he investigates the matter and tries to solve it.
STEP: 3 – if the problem is not solved then the personnel manager approaches the
managing directors and he tries to draw some conclusions of the matter.
STEP: 4 – finally the grievance is placed before the board of director and board of
director solve the issue in satisfactorily to both employee and to management.
92
FINANCE DEPARTMENT
Picture: 31
INTRODUCTION
93
Financial management is that managerial activity which is concerned with the
planning and controlling of the planning and controlling of the firm’s financial
resources. As a separate activity or discipline, it is of recent origin. The subject to
financial management is of immense interest to both academicians and practicing
managers. Finance management means in simple work getting the finance means first
planning g of finance then find resources of finance then utilization of the same fund.
It is considered with the problems of raising financing to establish, expand and
modernize business unit, the problems of providing fixed and working capital, the
problem of distribution of income etc.It is mainly concerned with such matter as, how
a business corporation raises its finance and how it make use of it.
Financial management is concerned with the managerial decisions that results in the
acquisition and financing of long term and short term credits for the firm as such it
deals with the situation that require selection of specific assets, the selection of
specific liability as well as the problem of size and growth of an enterprise.
ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT
94
Diagram: 21
FINANCIAL PLANNING
95
MANAGING DIRECTOR
FINANCIAL MANAGER
ACCOUNT SENIOR CLERKS
ACCOUNT JUNIOR CLERKS
ACCOUNTING MANAGER
Financial planning is based on the going concern keeping in mind working capital.
Financial planning is based on the product sold to customers. It should estimate the
resources required to carry out operations and determine how far these resources
can be generated internally by the firm itself and how far they will have to be
obtained externally.
Financial planning is primarily a statement estimating the amount of capital and
determining its composition. It includes:
Determination of the quantum of finance, i.e. the amount needed for
implementing business plans.
The determination of the form and proportionate amounts of securities.
Laying down the policies as to the administration of the financial plans.
Financial plan are of 2 types which includes the following points:-
Diagram: 22
1) CAPITAL PLANNING:-
96
FINANCIAL PLANNING
WORKING CAPITAL
CAPITAL PLANNING
Capital planning is based on year to year increasing in turn over to that
extent what machinery to be purchased that is capital planning.
2) WORKING CAPITAL:-
Working capital is that which is held to meet day to day requirements of
business, which changes from day to day, and which is converted into cash
continuously. The risk factor is low in it. Working capital is also known as
current capital, circulating capital and floating capital. So it is also known as
a variable cost.
CAPITALIZATION
97
The word “capitalization” can be considered as the sum total of all kind of long
term securities at their par values. Thus it can be interpreted as the sum of the
ownership capital, bonds and long term debts, and the surpluses. It consists of:-
Diagram: 23
OWNERSHIP CAPITAL: consist of value of shares of different classes.
BORROWED CAPITAL: consist of bonds and debentures.
SURPLUSES: consist of accumulated profits, whether of revenue capital or
capital nature.
So the sum total of shares, debentures, bonds and surplus is known as
capitalization.
98
OWNERSHIP CAPITAL
SURPLUSESBORROWED CAPITAL
Capitalization consists of 2 types of components in it which includes:
Diagram: 24
UNDER CAPITALIZATION:-
A company is said to be undercapitalized when the rare of profits is
exceptionally high in relation to the return enjoyed by similarly situated
companies in the same industry or it has too little capital to conduct business.
OVER CAPITALIZATION:-
A company is said to over capitalize if its earnings are less in relations to its
capital investment. When it’s earning are not large enough to yield a fair return
on the amount of its issued securities and long term borrowings.
This company is said to be undercapitalized because of purchase of assets at
low prices, due to sudden unanticipated increase in earnings.
99
UNDER CAPITALIZATION
OVER CAPITALIZATION
CAPITAL STRUCTURE:-
Capital structure refers to the composition of sources of funds the company has
used to raise the finance the finance needed by it for its business. Generally, the
management of the company plans an ideal capital structure in advance and raise
funds accordingly as and when need for fund arises. In some companies, on the
other hand capital structure is not planned in advance, but they raise funds from
different sources according to the circumstances.
In this company Capital structure includes directors and share holder funds,
reserves and surplus. Capital structure consists of 2 components which include:-
Diagram: 25
100
FINANCIAL LEVERAGE
CAPITAL GEARING
CAPITAL STRUCTURE
1) FINANCE LEVERAGE:-
Financial leverage means direct and indirect cost subject to turn over. It
results from the presence of fixed financial charges in the firm’s income
statement. Financial leverage is concerned with the effects of changes in
EBIT on the earnings available to equity shareholders.
2) CAPITAL GEARING:-
Capital gearing mainly depends on the increase in turnover of the company.
The turnover of AMUL INDUSTRIES is as follows:-
YEAR TURN OVER
31.3.08 202129616
31.3.09 220180045
31.3.10 287958150
31.3.11 311730501
Table: 4
MANAGEMENT OF FIXED ASSETS:-
101
1) CAPITAL BUDGETING:-
Capital budgeting may be defined as decision making process by which an
organization evaluates the major investment proposals keeping due considerations.
For a concern capital budgeting mainly depends on turn over and expansion of the
company. The elements included in capital budgeting are:-
Amount needed for investment
Amount available for investment
Amount that can be acquired from different sources
The cost of raising funds
Future cash flows
2) MANAGEMENT OF WORKING CAPITAL
102
The term working capital refers to that part of capital which is not tied up in fixed
assets but is used to but is used to meet the day to day requirements of business. It
is invested in current assets like cash, stock, bills receivable, debtors etc. this type
of capital is used to make payments for purchase of raw materials, wages and to
meet other expenses till goods are sold and money is collected against it. Capital
used for this purpose is called working capital.
Working capital is that which is held to meet day to day requirements of business,
which changes from day to day, and which is converted in cash continuously.
Working capital is also known as current capital, circulating capital and floatation
capital.
Diagram: 26
103
WORKING CAPITAL
CURRENT ASSETS
CURRENTLIABILITIES
Working capital of last four years is as follows:-
YEARS WORKING CAPAITAL
31.3.2008 20259966
31.3.2009 502705419
31.3.2010 536873273
31.3.2011 617489780
Table: 5
INTERPRETATION:-
From the above table we can observe that there is an increase in working capital of
the company, so it is good for the company because it helps to meet day to day
requirements and which can be converted easily.
A) MANAGEMENT OF INVENTORIES:-
104
It solely depends on turn over. If the company inventories includes controlling of
raw materials purchase subject to turn over of the company. Mainly inventories
should be controlled to the extent of minimum 15 day stop.
Management of inventory is shown as trend analysis for the past three years is as
follows:-
years Management of inventory
31.3.08 202129616
31.3.09 220180045
31.3.10 287958150
31.3.11 311730501
Table: 6
INTERPRETATION:-
From the above table we can observe that the management of inventory has been
increased year by year. So the turnover has increased from year 2008 to 2011.
B) MANAGEMENT OF RECEIVABLES:-
105
It means collection from the customers or debtors. When a firm sells goods for
cash, payments are received immediately and therefore no receivables are
created. However, when a firm sells goods or services on credit, payment are
received only at a future date and receivables are created. It is an essential
marketing tool in modern business trade. Credit sales create receivables which
the firm is expected to collect in near future.
Management of receivables is shown as trend analysis for the past 4 years
which includes:-
Years MANAGEMENTOF
RECEIVABLES
31.3.08 434563637
31.3.09 334296835
31.3.10 428788839
31.3.11 503310282
Table: 7
INTERPRETATION:-
From the above table we can observe that in the year 31.3.2011 the
management of receivables is maximum, due to this there is a decrease in bad
debts and this is beneficial for the company.
C) MANAGEMENT OF CASH BUDGET:-
106
Cash is a medium of exchange which allows management to carry on the various
activity of the business on day to day basis. It includes coins, currency, cheques
held by the firm and the balance in its bank account.
Cash budget is mainly controlled on the inflow of the cash as compared to outflow
of the cash.
Management of cash including cash budget consists a past trend analysis pf past
three years:-
Years MANAGEMENT OF CASH
31.3.08 6713671
31.3.09 5352047
31.3.10 12911778
31.3.11 15368344
Table: 8
INTERPRETATION:-
From the table we can observe that management of cash has been increasing year
by year. But there has been a decrease in value of 31.3.2009 as compared to
31.3.2010, but later on it has increased so much that it has double up the value.
OPERATING LEVERAGE ANALYSIS
107
Operating leverage includes direct expenses related to the product of the company.
Such as raw materials, job work, tools, packing, factory, employee cost. It can be
considered as the firm’s ability to use fixed operating cost to magnify the effects of
changes in sales on its earning before interest and tax. Earnings before interest and
tax is also known as operating cost.
Operating leverage in a firm is a function of three factors:-
The amount of fixed costs.
The contribution margin.
The volume of sales Diagram: 27
Operating leverage analysis of amul industries of last three years is as follows:-
108
VOLUME OF SALES
AMOUNT OF FIXED COST
CONTRIBUTION MARGIN
OPERATING LEVERAGE: contribution EBIT (Earnings before Interest and Tax)
YEARS OPERATING LEVERAGE ANALYSIS
31.3.2009 11.77
31.3.2010 7.78
31.3.2011 0.39
Table: 9INTERPRETATION:-
From the above table we can observe that there is a decrease in operating leverage
analysis. Here the company’s operating cost is gradually decreasing year by year.
So it is beneficial for the company because as cost decreases the profit margin will
increase.
FINANCIAL LEVERAGE ANALYSIS
109
Financial leverage results from the presence of fixed financial charges in the firm’s
income statement. It is concerned with the effects of changes in EBIT on the
earnings available to equity shareholders. “The ability of a firm to use fixed
financial charges to magnify the effects of changes in EBIT on the earnings per
share”.
FINANCIAL LEVERAGE: - EBIT (Earnings before Interest & Tax) EBT (Earnings before Tax)
The financial leverage analysis of Amul industries of last three is as follows: -
Table: 10
YEARS FINANCIAL LEVERAGE
ANALYSIS
31.3.2009 0.30
31.3.2010 0.72
31.3.2011 3.14
INTERPRETATION:-
From the above table we can observe that there is an increase in financial leverage
which suggests that there is an increase in fixed financial charges. So the company
can estimate its fixed charges & it will desirable to company also.
110
COMBINED LEVERAGE ANALYSIS
The combination of operating leverage & financial leverage is considered as
combined leverage. The combined leverage measures the total risk of the firm.
OPERATING RISK+FINANCIAL RISK=TOTAL RISK/COMPOSITE RISK.
COMBINED LEVERAGE: - Contribution EBT (Earnings before tax)
The combined leverage of Amul industries of three years is as follows:-
YEARS COMBINED LEVERAGE ANALYSIS
31.3.2009 3.57
31.3.2010 5.58
31.3.2011 12.16
Table: 11INTERPRETATION:-
From the above table we can observe that there is an increase in combined leverage
analysis. This situation is considered to be an ideal situation because there is a
combination of low operating leverage & high financial leverage, so ultimately
combination of both is beneficial to company.
111
RATIO ANALYSIS
1) EXPENSE RATIO:-
For the purpose of ascertaining relationships between operating expenses and net
sales, expense ratios are computed. For example proportion of selling expense or
administrative expenses or financial expenses in relation to net sales is an expense
ratio.
EXPENSE RATIO: - Expense × 100 Sales ratio
The following is the expense ratio of Amul Industries of three years:-
YEARS EXPENSE RATIO
31.3.2009 95%
31.3.2010 94%
31.3.2011 92%
Table: 12
INTERPRETATION:-
From the above table we can observe that the expense ratio has been decreased
year by year and has came up to 92% in 31.3.2011 from 95% in 31.3.2009.so the
decreasing trend in this ratio is beneficial for the company.
112
2) NET PROFIT RATIO:-
The ratio is valuable for the purpose of ascertaining the overall profitability of
business and shows the efficiency or otherwise of operating the business. It is the
reserve of operating ratio. This ratio is computed on the basis of net profit earned
from operation of business and non operating expenses and incomes are excluded.
NET PROFIT RATIO: - Net Profit × 100 Total Sales
The following is the Net Profit Ratio of Amul Industries of three years:-
YEAR NET PROFIT RATIO
31.3.2009 13%
31.3.2010 12%
31.3.2011 10%
Table: 13
INTERPRETATION:-
From the above table we can observe that the Net Profit Ratio has been decreasing
year by year, this is because the administrative expenses are slowly increase, so
some to extent on a shorter time period it might be not desirable for company.
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3) RETURN ON SHAREHOLDERS FUND:-
In order to judge the efficiency with which the proprietor’s funds are employed in
business, this ratio is ascertained. Proprietor’s equity or proprietors funds include
share capital and reserves. This ratio shows what amount of dividend is likely to be
received on shares. When return on shareholders’ funds is to be calculated, the
profit should be after interest and tax (PAT).
RETURN ON SHAREHOLDERS FUND: - Net Profit × 100 Shareholder fund
The following is the Return on Shareholders Fund Ratio of Amul Industries of
three years:-
YEAR RETURN ON SHAREHOLDERS
FUND RATIO
31.3.2009 73%
31.3.2010 75%
31.3.2011 78%
Table: 14
INTERPRETATION:-
From the above table we can observe that the Return on Shareholders Fund has
been increasing year by year. So it is good for the company as the funds increases
the shareholders towards the company also increases.
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4) CURRENT RATIO:-
The most widely used ratio shows the proportion of current asset to current
liabilities. It is also known as “working capital Ratio.” The ratio is obtained by
dividing current assets by current liabilities. It is a measure of short term financial
strength of the business and shows whether the business will be able to meet its
current liabilities, as and when they mature.
CURRENT RATIO: - Current Assets Current Liabilities
The following is the Current Ratio of Amul Industries of three years:-
YEAR CURRENT RATIO
31.3.2009 2.29:1
31.3.2010 1.95:1
31.3.2011 2.02:1
Table: 15
INTERPRETATION:
The best current ratio is 2:1.from the above table we can observe that in year
31.3.2009 the ratio is more than best ratio, so it is not desirable for the company,
but in 31.3.2010 it is almost 2:1, so it is benefited to company.
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5) LIQUID RATIO:-
A variant of current ratio is the liquid ratio or quick ratio which is designed to
show the amount of cash available to meet immediate payments. It is obtained by
dividing the liquid assets by liquid liabilities. Liquid assets are obtained by
deducting stock in trade from current assets is not treated as a liquid assets, and
from current liabilities, Bank OD is deducted from it.
LIQUID RATIO: - Liquid Asset Liquid Liabilities
The following is the Liquid Ratio of Amul Industries of three years:-
YEAR LIQUID RATIO
31.3.2009 1.72:1
31.3.2010 1.42:1
31.3.2011 1.51:1
Table: 16
INTERPRETATION:-
From the above table we can observe that the best ratio is 1.72:1 which is in the
year 31.3.2009 but current assets are less than from the year 2011, so the best ratio
is the one which have current assets more than current liabilities. So the year 2011
is having the desirable ratio with more current assets in it.
6) LONG TERM DEBT EQUITY RATIO:-
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This ratio is only another form of proprietary ratio and establishes relationship
between the outside long term liabilities and owners funds. It shows the proportion
of long term external equities and internal equities.
LONG TERM DEBT EQUITY RATIO: - Long term liabilities Shareholders fund
The following is the Long Term Debt Equity Ratio of Amul Industries of three
years:-
YEAR LONG TERM DEBT EQUITY
RATIO
31.3.2009 2.19%
31.3.2010 2.43%
31.3.2011 2.32%
Table: 17
INTERPRETATION:-
From the above table we can observe that there is a decrease in long term debt
percentage in year 2011 from year 2010 but it is good for the company because a
higher ratio means that outside creditors have a larger claim than the owner of the
business. The pressure & interference from creditors would increases
7) TOTAL DEBT EQUITY RATIO:-
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In this type of debt equity ratio all types of debt is taken into consideration. This
type of debts ratio is only in place of long term debts only. The argument in favour
of this view is that like long term debts, short term debts are also received from
outside creditors and they add to the financial risk.
TOTAL DEBT EQUITY RATIO: - Total Liability Shareholders’ funds
The following is the Total Debt Equity Ratio of Amul Industries of three years:-
year TOTAL DEBT EQUITY RATIO:-
31.3.2009 5.78
31.3.2010 6.28
31.3.2011 2.73
Table: 18
INTERPRETATION:-
From the above table we can observe that there is a decrease in debtor’s turn over
in year 2011 from year 2010.this situation is beneficial for the company because
the lower the ratio is beneficial from viewpoint of creditors while higher ratio
increases the risk of creditors.
8) DEBTORS RATIO:-
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This ratio shows the number of days taken to collect the dues of credit sales. It
shows the efficiency or otherwise of the collection policy of the enterprise. The
ratio is computed by dividing the amount of debtors and bills receivables by the
average daily sales. The average daily sale is obtained by dividing the total annual
sales by 365.
The following is the Debtors Ratio of Amul Industries of three years:-
YEAR DEBTORS RATIO
31.3.2009 98 Days
31.3.2010 102 Days
31.3.2011 85 Days
Table: 19
INTERPRETATION:-
From the above table we can observe that there is a decease trend seen for debtor’s
ratio which is beneficial for the company, as there will be decrease in bad debts.
But on a serious note the limit is for 60 days, so the days are more than that which
is not beneficial for company.
9) DEBTORS TURN OVER RATIO:-
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The debtor’s turnover suggests the number of times the amount of credit sale is
collected during which the dues for credit sales are collected. Suppose the debtor’s
ratio is 60 days, it means that the debtors pay their dues for credit sales after 60
days of making the sales.
DEBTORS TURNOVER RATIO: - Credit sales Average debtors
The following is the Debtors Turnover Ratio of Amul Industries of three years:-
YEARS DEBTORS TURN OVER
31.3.09 3.67
31.3.2010 3.53
31.3.2011 4.21
Table: 20
INTERPRETATION:-
From the above information there is an increase in debtors turn over from 3.51 to
4.21, so there is an increase in the number of times the amount of credit sale is
collected during the year, so sometimes it may happen that the bad debts increases
during the year and this will not be desirable to the company.
10) TOTAL ASSETS TURNOVER:-
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The amount invested in business are invested in all assets jointly and sales are
effected through them to earn profits, so in order to find out the relation between
total assets to sales, total assets turnover is calculated. The higher this ratio, it
shows with less amount of investment in total assets, the business has a capacity to
sell more and as such the profitability is more.
The following is the Total Asset Turnover Ratio of Amul Industries of three years:-
YEARS TOTAL ASSET TURN OVER
RATIO
31.3.2009 2.38%
31.3.2010 3.46%
31.3.2011 4.02%
Table: 21
INTERPRETATION:-
From the above table we can observe that there is an increase in total asset turnover
ratio that is from 2.4% to 3.43% that means that with less amount of investment in
total assets there is an increase in profit it is & it is beneficial for the company.
P & L A/C OF AMUL INDUSTRIES OF LAST FOUR YEARS Table: 22
particular 31-3-2008 31-3-2009 31-3-2010 31-3-2011
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(I) Income:
Gross sales 1600021653 1385489405 1656523635 235317699Less: Excise Duty 167626024 160131082 142717907 204265989
Net Sales 1432395629 1225358323 1513805728 2121051710
Other Income 5353994 12226515 6004490 4426318Stock Variance 22276129 54730717 59305795 10710998TOTAL INCOME 1460025748 1292315556 1579116013 2136189026
(II) Expenditure:
Material Consumed & Direct Expense 1084204861 985460135 1216898021 1651028863Personnel Expenses 112170570 109472254 136889161 201474130Administration & Selling Expenses 69302537 66557469 71984207 103356458Managerial Remuneration To Directors 12440010 2640060 2700060 2700060
TOTAL EXPENSE 1278117978 1164129918 1428471450 1958559511
Profit before Int., Dep., Misc.Exp., W/off 181907770 128185638 150644563 177629515Less: Int. 38299148 63254583 69168127 64689925Dep 35727014 46506969 56438374 67644861
74026162 109761552 125606501 132334786PROFIT BEFORE TAX 107881608 18424086 25038063 45294730
Less: Provision For TaxationCurrent Tax 35000000 5500000 10600000 16500000
Wealth Tax 5000 10000 65000 52000Deferred Tax 3542783 1250308 129935901 909593Fringe Benefit Tax 715000 715000
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Short Taxation Provision of Earlier
609480 486234 138167 268449
39872263 6989074 7809577 17730042
Net Profit After Tax 68009346 11435012 17228486 27564688Balance B/F 92237498 153583054 165018068 182246554
160246844 165018066 182246554 209811241
Appropriation - - - -Transfer of G.R 1750000 - - -Proposal Dividend 4200000 - - -Tax on Dividend 713790 - - -Balance C/F 153583054 165018066 182246554 209811241
Table: 23
BALANCE SHEET OF AMUL INDUSTRIES OF LAST FOUR YEARS
Table: 24
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PARTICULAR 31-3-2009In cr.
31-3-2010In cr.
31-3-2011In cr.
1)SOURCES OF FUNDS:-
A)SHAREHOLDERS FUND:
1) Share capital 304.74 305.97 306.87
2) Share application money , pending allotment
0.24 1.34 0.01
3) Employee stock option outstanding
- - 32.11
4) Reserve and surplus 6165.92 7022.79 7730.45
Total 6470.90 7330.10 8069.44 B)LOAN FUNDS:
1) Secured loans 100.00 - -
2) Unsecured loans 65.70 65.03 49.36
3) Deferred tax liability , net
165.70 530.88 643.60
Total. 7122.44 7926.01 8762.402)APPLICATION OF FUNDS:-
D)FIXED ASSETS:
Gross block 6224.13 8778.82 9702.29
Less:-depreciation 2784.09 3151.07 3515.83
3440.04 5627.75 6186.46
Capital work in progress 2564.82 803.65 531.996004.86 6431.40 6718.45
Advances against capital expenditure
149.67 127.05 45.29
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6154.47 6558.45 6763.74E)INVESTMENT: 727.01 625.95 864.31
F)CURRENT ASSETS,LOANS & ADV:-1)inventories 683.24 901.86 924.97
2)sundry debtors 152.20 128.18 240.85
3)cash & bank balance 880.68 1748.17 2071.23
4)other current assets 10.17 16.57 23.66
5) loan & advance 253.05 340.55 567.61
1979.34 3135.33 3828.32
LESS:-current liabilities & provision
1)current liabilities 1067.05 1297.61 1588.13
2)provision 674.04 1096.57 1106.11
1741.09 2394.18 2694.24NET CURRENT ASSETS
238.25 741.15 1134.08
Quarry/mines development expenses
2.71 0.46 0.27
TOTAL 7122.44 7926.01 8762.40
Table: 25
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CONCLUSION
In my conclusion, I would like to say “AMUL INDUSTRIES PVT. LTD” is
having a very good reputation in the market and company has an efficient and
effective organization. The overall performance of “AMUL INDUSTRIES” is very
good it has been growing year.
The demand of the products produce by the company is not well only in Gujarat,
but it is spread all over India and also on international market. The company has
good scientific and managerial staff. So, company is getting success step by step.
The company has a very sound financial position. It is earning profit every year. So
I can say that it will be in a strong position in future.
“AMUL INDUSTRIES” is better in present and will have a delight and bright
future for the coming year.
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APPENDIX
PICTURE NO.
PICTURE NAME PAGENO.
Picture: 1 General department 3Picture: 2 Company’s logo 7Picture: 3 Pictures of connecting rod 13Picture: 4 Pictures of connecting rod 14Picture: 5 Pictures of crankshafts 15Picture: 6 Pictures of crankshafts 16Picture: 7 Pictures of cam shafts 17Picture: 8 Pictures of cylinder blocks 18Picture: 9 Pictures of cylinder heads 19Picture: 10 Awards & achievements 24Picture: 11 Awards & achievements 25Picture: 12 Production department 26
Picture: 13 Location of Amul industries 27Picture: 14 Location of Amul industries 28Picture: 15 Map of Amul industries 29Picture: 16 Quality assurance certificate 40Picture: 17 Marketing department 44Picture: 18 Picture of connecting rod 47Picture: 19 Picture of crankshaft 48Picture: 20 Picture of camshaft 49Picture: 21 Picture of cylinder block 50Picture: 22 Picture of cylinder head 51
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Picture: 23 Customers 69Picture: 24 Customers 70Picture: 25 Customers 71Picture: 26 International market 72Picture: 27 Human resource department 73Picture: 28 Recruitment 76Picture: 29 Selection 79Picture: 30 Training 80Picture: 31 Finance department 81
TABLE NO.
TABLE NAME PAGENO.
Table: 1 Company profile 5Table: 2 Time keeping system 21Table: 3 Market segmentation 64Table: 4 Capital gearing 99Table:5 Working capital 102Table: 6 Management of inventories 103Table: 7 Management of receivables 104Table: 8 Management of cash budget 105Table: 9 Operating leverage analysis 107Table: 10 Financial leverage analysis 108Table: 11 Combined leverage analysis 109Table: 12 Expense ratio 110Table: 13 Net profit ratio 111Table: 14 Return on shareholders’ fund 112Table: 15 Current ratio 113Table: 16 Liquidity ratio 114Table: 17 Long term debt equity ratio 115Table: 18 Total debt equity ratio 116Table: 19 Debtors ratio 117Table: 20 Debtors turnover 118Table: 21 Total assets turn over 119Table: 22 Profit & loss a/c 120Table: 23 Profit & loss a/c 121Table: 24 Balance sheet 122
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Table : 25 Balance sheet 123
DIAGRAM NO.
DIAGRAM NAME PAGE NO.
Diagram: 1 Company’s objectives 6Diagram: 2 Managing body 8Diagram: 3 Size of unit 9Diagram: 4 Form of organization 10Diagram: 5 Organization chart of Amul Industries pvt ltd. 12Diagram: 6 Product assembly 13Diagram: 7 Manufacturing process 20Diagram: 8 Procurement 30Diagram: 9 Quality control 38Diagram: 10 Organization chart of marketing department 46Diagram: 11 New product development process 60Diagram: 12 Production & development 61Diagram: 13 Market segmentation 63Diagram: 14 Channel of distribution 66Diagram: 15 Direct marketing 67Diagram: 16 Organization structure of human resource
management75
Diagram: 17 Recruitment process 77Diagram: 18 Selection process 79Diagram: 19 Management development programme 82Diagram: 20 Wage & salary administration 86Diagram: 21 Organization structure of financial department 93Diagram: 22 Financial planning 94
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Diagram: 23 Capitalization 96Diagram: 24 Under & over capitalization 97Diagram: 25 Capital structure 98Diagram :26 Working capital 101Diagram :27 Operating leverage 106
BIBLIOGRAPHY
In preparation of this report, I have just referred following books which are useful in collecting the data about project work.
- Agarwal Nitin. “Production management.”New Delhi Tata, McGraw-Hill Publishing Co. Ltd. - Kotler Philip. “Marketing Management.” India, Dorling Kindersley pvt. Ltd.
- Aswathappa K. “Human Resource Management.” New Delhi, Tata McGraw-Hill Publishing Co. Ltd.
- Pandey I M. “Financial Management.” New Delhi, Vikas Publishing House Pvt. Ltd.
WEBSITE:- www.amulind.com
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