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A Project Report On DHANHAR EXIM PVT. LTD.(S.Y.B.B.A-2010-2011) Guide By Submitted by: Mrs. Jagruti Patel Gajera Ankit Harkhani Nirav Tank Pranv Soni Jaimin 1 B.M College of Business Administration Page 12

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Page 1: DHANHAR EXIM

A

Project Report

On

“DHANHAR EXIM PVT. LTD.”

(S.Y.B.B.A-2010-2011)

Guide By Submitted by:

Mrs. Jagruti Patel Gajera Ankit

Harkhani Nirav

Tank Pranv

Soni Jaimin

Submitted to:

Bhagwan Mahavir College Of Business Administration,

V.N.S.G.U,

Surat.

1B.M College of Business Administration Page 12

Page 2: DHANHAR EXIM

Acknowledgement

I would like to thanks to Veer Narmad South Gujarat University to include this summer

training in the curricular of B.B.A. program.

I express my deep sense of gratitude to “DHANHAR EXIM PVT. LTD.” to allow me

to do summer training and giving me their best to accomplish the same.

I would also thank to all faculty members of college to help me greatly in preparation and

guidance during the training.

My special thanks to one and every faculty member in the dept for their suggestions.

I would like to thank with great pleasure on colleagues who helped me in successfully

completed this project.

Date:

Place:

2B.M College of Business Administration Page 12

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Executive Summery

We here at completion of our summer training at Dhanhr Exim Pvt.Ltd. have got a good

knowledge in the various area of management

The marketing department plays an important role for increase in sale we have also got

the good knowledge of different product of in spite of such a wide range of product

The most important department is the production department has also given us a brief

idea about the company process layout which done in a centime manner we also come to

know about the regular quality control method which maintain the quality of product

The human resource department department has given us a clear idea of how to maintain

employ relationship welfare activity in finance department of the company we studied the

ration and working capital

3B.M College of Business Administration Page 12

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Declaration

Here by declare that this training report is prepared with my own efforts. This report has

been prepared at “DHANHAR EXIM PVT. LTD.” during 01/05/2011 to 15/07/2011

with my skills and management tools and technique, which we learnt in collage.

This report has not been previously submitted by any one to any university, for award of

any other degree.

Date: Gajera Ankit

Place: Harkhani Nirav

Tank Pranv

Soni Jaimin

4B.M College of Business Administration Page 12

Page 5: DHANHAR EXIM

INDEX

NO TOPIC PAGE

NO

1 INTRODUCTION

1. Mission and value

2. Profile of the company

3. Competitor

4. History of the company

5. SWOT Analysis

2 MARKETING DEPARTMENT

1. Structure of Marketing department

2. Products of the Company

3. Packaging & Labeling

4. Price of Products (Pricing Policies)

5. Organization’s buying process

6. Product life cycle (PLS) & Marketing Strategies

7. Channels of distribution

8. Marketing / Sales dept. at a glance

9. Promotional Activities

3 HUMAN RESOURCE DEPARTMENT

1. Structure of HR department

2. Activities of Personnel / HR Department

3. Recruitment & Selection

4. Human Resource Planning

5. Training & Development

6. Promotion & Transfer

7. Performance Appraisal

8. Wages & Salary Structure

5B.M College of Business Administration Page 12

Page 6: DHANHAR EXIM

9. Employee Welfare

10. Human Resource Audit

11. Hierarchy Structure of Organization

12. Absenteeism Rate

4 PRODUTION DEPARTMENT

1. Structure of production department

2. Activities of Production Department

3. Process Layout / Product Layout

4. Technology used

5. Machinery Operations Stores

6. Plant Location, Controls of R.M. in Process & finished

goods

7. Quality Control

5 FINANCE DEPARTMENT

1. Budgeting & Planning

2. Taking Loans (Sources of funds)

3. Issuing Shares (if applicable)

4. Providing funds to Different Departments

5. Balance Sheet & Annual General Report

6. Working Capital, Cash, Inventories,Receivables etc.

6 FINDING

7 SUGGESTION

8 CONCLUSIONS

9 BIBLOGRAPHY

6B.M College of Business Administration Page 12

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Chapter 1. Introduction

Mission and value

Profile of the company

Competitor

History of the company

SWOT Analysis

7B.M College of Business Administration Page 12

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1. MISSION& VALUE1. MISSION& VALUE

One of the greatest strengths of the DHANHAR EXIM PVT. LTD Pvt. Ltd. Company is

its ability to develop customized products. This policy of the DHANHAR EXIM PVT.

LTD Pvt. Ltd. Company has helped to build close ties and mutual trust with customers

globally, thus increasing worldwide acceptance of its products.

Mission

To delight the customer by continuously developing new products tuned to evolving

needs and maintaining high standards of quality and efficiency in production and prompt

delivery.

Values

1. High priority to customer satisfaction.

2. High standards of consistent quality and reliability.

3. Promoting use of modern technology and practices.

4. Minimizing profitability for cost-effectiveness.

5. Commitment to community development and environment protection.

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2. Profile of the Industry

How Spices Shaped History

The history of spice is almost as old as human civilization. It is a history of lands

discovered, empires built and brought down, wars won and lost, treaties signed and

flouted, flavors’ sought and offered, and the rise and fall of different religious practices

and beliefs. Spices were among the most valuable items of trade in ancient and medieval

times.

As long ago as 3500 BC the ancient Egyptians were using various spices for flavoring

food, in cosmetics, and for embalming their dead. The use of spices spread through the

Middle East to the eastern Mediterranean and Europe. Spices from China, Indonesia,

India, and Ceylon (now Sri Lanka) were originally transported overland by donkey or

camel caravans. For almost 5000 years, Arab middlemen controlled the spice trade, until

European explorers discovered a sea route to India and other spice producing countries in

the East.

Spices and the Age of Exploration

The search for a cheaper way to obtain spices from the East led to the great Age of

Exploration and the discovery of the New World. European explorers such as Ferdinand

Magellan, Vasco da Gama, and Bartholomeu Dias began their long sea voyages to

discover a sea route to the sources of spices. Christopher Columbus went westwards from

Europe in 1492 to find a sea route to the lands of spices but found the Americas. Eight

years later, the Portuguese navigator Vasco da Gama discovered a sea route around the

southern tip of Africa, eventually reaching Kozhikode on the southwest coast of India. Da

Gama returned from his voyage with a cargo of nutmegs, cloves, cinnamon, ginger, and

peppercorns.

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Spice Industry Overview

Spice industry has been witnessing phenomenal growth rates both in the international and

domestic sector. The growth in this sector can be attributed to the change in the lifestyle

patterns of the consumers all over the world. The shift in the consumption trend toward

natural products has also contributed to the increased global demand of spices and

culinary herbs. Spice and derivatives market is booming because these products find

applications in a number of industries including pharmaceutical, medicine, beverages,

food processing, personal hygiene products to name a few.

Developing countries especially in the Asian continent are the major producers of variety

of spices. A large percentage of international and domestic trade takes place in the dried

form. India, Indonesia, China are few of the prime producers of a variety of high quality

spices and also significant contributors to the global spice trade.

The culinary herb market is also expanding though the production areas are widely

distributed. India is one of the prime producers and suppliers of raw herbs to USA and

the EU. This is a labour intensive industry; therefore producers must have a sound

knowledge of the methods and processes involved in the production of herbs and spices.

Indian Industry Overview

India has traditionally been known for its spice and culinary herb production. It is one of

the largest spice producing and consuming country. Its strategic location, climatic

conditions, advanced production processes and availability of cheap labour makes it

advantageous for the producers to ensure large scale production of quality spices and

herbs.

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India's Share in the Global Spice Market

The Indian spice industry is booming with a substantial increase in exports over the past

few years. India accounts for nearly 45% and 30% in terms of volume and value in the

world spice trade.

The booming global spice market also poses good opportunities for the Indian spice

industry to provide quality spices at competitive prices. India faces stiff competition form

China, Malaysia and Pakistan in terms of pricing of the products. Manufacturers should

therefore ensure consistency in supply, product quality, pricing and marketing strategy to

increase the share in exports.

Producers are incorporating latest methods and technologies to ensure higher quality of

spices and herbs. India is one of the prime exporters of pepper, chilies, turmeric, seed

spices and spice derivatives to the rest of the world. USA, EU, Japan and Srilanka import

these Indian spices in large volumes.

India's share in Global Spice Derivative Market

Spice derivatives can be categorized into spice oil, oleoresins and essential oils. The

demand for spice derivatives is also increasing due to the hygiene, standardization and

consistency factor. India contributes nearly 70% to the world spice derivative market. It

exports largely to the US, EU etc. Indian southern states including Kerala, Karnataka and

Tamil Nadu provide concentrated oils and oleoresins for use in perfumery,

pharmaceuticals, foods processing and industrial chemical industry.

Government Initiative

Indian Government is providing financial assistance to farmers, growers and spice

producers and has also taken certain steps to ensure the availability of better quality

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spices, more hygienically processed spices in order to boost exports. Indian spice board

also provides financial and technical assistance to farmers.

Growth in Spices Market

The Indian spice market has shown remarkable growth in spice and culinary herbs

exports. Indian spices manufacturers are making substantial efforts to improve the quality

of spices backed up by technological advancement in order to tap the international

market. Advanced technologies such as carbon dioxide extraction, cryogrinding,

encapsulation of spice oil is being undertaken to ensure high quality of spices and their

derivatives.

3. Competitor :-

It includes all the actual & potential rival offering & substitute of their product a buyer

might be consider. The company may be of monopoly, total competitive or oligopoly.

There are many masala brands against DHANHAR EXIM PVT.LTD as like

I. S.K Masala

SK Masala is one of the manufacturers of Indian

cooking spices like turmeric powder, curry powder,

fenugreek seeds, cumin seed, cardamom, chilly powder from India. The company

is also an importer of cooking spices.

These authentic delicacies are completely free of preservatives and their exotic

flavours give you a taste of rich traditional culinary art that is uniquely Indian.

The products are offered in various categories to make a wholesome meal

experience.

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Page 13: DHANHAR EXIM

II. Everest masala,

For more than 45 years, Everest has shaped the

preference for branded spice in a country where

home-made blends were the norm since time immemorial. It is estimated that over

20 million households regularly use Everest spices that are available in around

400,000 outlets in more than 1000 towns across India.

Everest spices are also available in the USA, Middle East, Singapore, Australia,

New Zealand, East Africa, and in many other countries, where non resident

Indians trust Everest to provide them the authentic taste of home

III. bharat masala,

started the Masala Business on 26th January 1953. it

was just like a home product in the beginning. He

opened a new outlet in 1996 near chouta Brdige, the

heart of Surat City. Now BHARAT MASALA is a bigger word and household name

in Surat. In fact its a brand name in the region.

Now BHARAT MASALA crossed the national boundary and reached overseas

countries like U.A.E. and faraway U.S.A, CANADA, and the U.K

IV. 77 masala,

The organization is under the process to implement ISO

22000 and AGMARK

There are 34 Instant Mix products.

V. MDH masala,

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Today range of 52 products anailable in over 140 different packages

VI. gits masala ,

VII. a-one masala

VIII. sabras masala,

IX. Yamuna masala,

X. lajawab masala

XI. gaj raj masala,

XII. Gajanand Masala,

XIII. Ramdev Masala,

XIV. Sahaj masala

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4. History of Company:-

DHANHAR EXIM Pvt. Ltd. introduces itself as a leading manufacturer and exporter of

Indian particularly Masala’s, Hing’s and others. Established on 1966, the company has

always followed the philosophy of providing quality products and services to our ever

increasing clientele. Today DHANHAR has become a name synonymous to Indian

spices, its tastes and aroma; and has become a name of repute in spices and hing

Companys.

The name “DHANAHAR” itself connotes “MASALA”

DHANHAR EXIM PVT. LTD starting in the home place and its first product is “hing”.

On this time DHANHAR EXIM PVT. LTD manufacturing at “Ambaji Road, Nani

Chipava.” Dhanhar is not first name of the brand. Before Dhanhar, its name is

“MANSUKH KANTI DOUBLE POPAT BRAND”, that is the first name of the

Dhanhar.

Meaning of the Dhanhar name;

DHAN means “LAXMI”

HAR means “MAHADEV”

DHANHAR name comes of the two dynamic people, first is DHANSUKHLAL and

second is HARKISHANLAL.

DHAN comes of the DHANSUKHLAL

&

HAR comes of the HARKISHNLAL

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History – An Overview

Forty Five year back, two dynamic entrepreneurs, Mr.

Dhansukhbhai Chhabildas Wankawala pioneers in

spices / hing industry and connoisseurs of Indian

tastes, joined hands together to start DHANHAR

EXIM PVT. LTD; supported by Mr. Bipinchand

Chhabildas Vankawala; a mechanical engineer by

profession. The firm started as a gruh udyog,

manufacturing hing, graduated in terms of size and

volume; obviously due to healthy response from the market. In the 1972, a manufacturing

plant was established in Surat. The company started manufacturing spices in 1976 with a

single product “Dal Shak Masala” and has consistently climbed up the growth ladder

since. The company at present is manufacturing more than 30 different spices. For bulk

orders, we can customize the products according to your requirements.

1990, a major milestone was achieved when the company got “AGMARK” certification

for its Hing. In 1995, same certification was accorded to Spices.

When company started, it goes in the loss, but after some time loss converted in the big

and big profit. In the 1977 the price of the “Dal Shak” masala was just 7 RS. In 5 Kilo.

So, it’s very chipper. In the 1988 Hing’s packaging stared and published name of the

“BHANDHANI HING” and also developed the brand name of DHANHAR EXIM PVT.

LTD. All the production by manually, no machine work of this time. On this time means,

1988; the staff was just 10 people in DHANHAR EXIM PVT. LTD and now the staff are

about 62 people in DHANHAR EXIM PVT. LTD. Manually work’s time period is 1988

to 1996, means about 8 year.

Under the able guidance of the promoters, the company has reached to a position, par

excellence. Mr. Hitesh Wankawala (B.Com. L.L.B.) And Mr. Jignesh Wankawala

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(B.Com), able sons of Mr. Dhansukhbhai joined business in 1992 and 1998 respectively.

Mr. Hitesh looking after Sales Department whereas Mr. Jignesh is looking after

Production and Quality Control Departments.

The new entrants are following their fathers’ footsteps and have the enough dynamism

and acumen to lead the company to new heights.

The company boasts of modern machinery and high technology to attain the quality

without losing the traditional aroma of Indian spices. Our products are well known for

their high purity.

The reliability, flexibility, competitive pricing and prompt service have been the pillars of

the company’s reputation and success.

Office:-

Dhanhar house,

Bhajiwadi pole,bhagal char rasta,

Surat – 395003

(Gujarat) India

Production house:-

Survey no. 167,

Ashwini kumar road,

Nr, shamshan bhumi,

Fulpada, Surat,

(Gujarat) India

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Fact Sheet

Company Detail

Year of Establishment 1966

Legal Status of Firm Private Ltd. Co.

Registered under Indian Companies Act

1956

Income Tax Registration No. AADCD2614D

Central Sales Tax No. 24720601590C

Value Added Tax Registration

No.

24220601590V

Import Export Code 5210003132

Nature of Business

Major Markets Indian Subcontinent

Company USP

Quality Measures/Testing

Facilities

Yes

Packaging/Payment and Shipment Details

Customized Packaging Yes

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They also have a retail shop one is at bhagal and second at A.K road

1) Dhanhar house,

Bhajiwadi Pole,

Bhagal Char Rasta,

Surat – 395003

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Page 20: DHANHAR EXIM

2) Survey No. 167,

Ashwini Kumar Road,

Nr,Shamshan Bhumi,

Fulpada, Surat,

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5. Swot analysis

Strength:-

Company has immense of strength to compete with its competitors. Company has a

control over the personnel department the base of the finally strong. DHANHAR EXIM

PVT. LTD produces masala with best quality and cheaper price which is one of the USP

(Unique Selling Proposition) of the company.

Owing to his timely delivery, quality products and client centric approach, they have

attained commendable credibility in the market. they follow ethical and transparent

business policies to gain the confidence of our clients. Some of the pertinent factors that

set us apart from our competitors are as follows:

A state-of-the-art infrastructure

Well coordinated team

Economical prices

On-time delivery

Weakness:-

I have noticed one of the significant cons of the company and that is a disability to

produce and deliver the ordered goods on time. And collection policy is very libral

Opportunity:-

Company have one of the great area as to cover the market share in this respective sector

by increasing its attention towards cost & by expanding their business in other states of

Indian market and by going globally like U.K, U.S.A rather than just focusing on Gujarat.

Threats:-

Company has the biggest threat to compete with the other giant players which are much

effective in production and their quality world wide. A part from this another common

threat would be regulation from the government towards this company in future by hiking

the raw materials price and all.

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Chapter 2 . MARKETING DEPARTMENT

Structure of Marketing department

Products of the Company

Packaging & Labeling

Price of Products (Pricing Policies)

Organization’s buying process

Product life cycle (PLS) & Marketing Strategies

Channels of distribution

Marketing / Sales dept. at a glance

Promotional Activities

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1. Structure of Marketing Department

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Head of Marketing DepartmentHitesh bhai

Head of Marketing DepartmentHitesh bhai

PeonPeon

ClerkClerk

AgentAgent

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2. Products of the Company :

We specialize in processing and supplying of a wide variety of Indian Spices. Our spices

are processed using quality ingredients that are sourced from cultivators and retailers and

therefore is appreciated for its taste and aroma. With such a mesmerizing range of spices,

we cater to the requirements of hotels, restaurants and homes. Our range includes the

following:

Salient Features:

Rich taste

Aroma

No preservatives

Unadulterated

Owing to the features furnished above, our products have gained recognition in the

market.

There are many masala product of DHANHAR EXIM PVT. LTD Company. Which are

below here.

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So, there are lots of item productions in the DHANAHAR MASALA, which are daily use in homes and

hotels.

3. Packaging & Labeling: -

Meaning of Packaging:-

Packaging means, “The wrapping of goods before they are transported or stored or

delivered to a consumer.”

We can define packaging as: “all the activities of designing and producing the container

is called the package”

The packaging has three levels, they are following:-

A. Primary package

B. Secondary package

C. Shipping package

Packaging is also kept pace with our products and the market, conforming to

International Standards and featuring diverse packing methods to match client

requirements

Packing is not available in kg with double polypropylene in-liner in trucks. It is also

available 10000 kg cardboard boxes on wooden pallets. Trucks are also available for

5000 kg & 10000 kg.

We have a special inspection team, which ensures the quality of packing before the

material is dispatched from the works

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Primary package

This is the primary packaging of the “Garam Masala” in the DHANHAR EXIM PVT.

LTD Company. So, this is the first step of the packaging of the masala. All types masala

packaging like this type but this is the example only “Garam Masala’s” packaging.

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Secondary package

This is the secondary packaging of the “Garam Masala” in the DHANHAR EXIM PVT.

LTD. So, this is the second step of the packaging of the masala. This is the important step

of the packaging.

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Shipping package

This is the last and final means

shipping packaging of the “Garam

Masala” in the DHANHAR EXIM

PVT. LTD. It is the very important

packaging of the masala because

when it’s over then production

supply in to the market and use

consumer and other.

So, the packaging of a

consumer product is an important

part of the marketing. A good

number of companies adopt square

packages in place of round packages which save space. There are many factors to be

considered while designing a package.

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DHANHAR EXIM PVT. LTD used kinds of the material for the packaging below

here;

1. Card Board Contriver

2. Plastic Contriver

3. Plastic Bag

4. Non-own Bag

5. Pouches

6. Paper Contriver

7. Clothes etc.

Kinds packaging of the DHANHAR EXIM PVT. LTD is below here;

1. Consumer Packaging

2. Family Packaging

3. Multiple Packaging

So, there are different packaging produce by DHANHAR EXIM PVT. LTD for the

customer.Packaging size of the DHANHAR EXIM PVT. LTD is 1 Kg., 5 Kg., 15 Kg.

and 40 Kg.

Labeling

Meaning of Labeling:-

“Label is a part of product, which carries verbal information about the product or the

seller. It may be a part of a package, or it may be a tag attached directly to the product.”

Label may be small slip or a printed statement.

DHANHAR EXIM PVT. LTD uses three types of label, which is following here;

1. A Brand Label

2. A Grade Label

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3. A Descriptive Label

Label gives following information in any product in the production. (DHANHAR EXIM

PVT. LTD)

1. Brand name

2. Picture of the Product

3. Address of the producer

4. Gross and Net quantity of the content

5. Ingredients in the product

6. Direction for the use

7. Precautionary measures

8. Nature of the product

9. Date of packaging and expiry

10. Retail price

Labeling photo’s of the DHANHAR EXIM PVT. LTD’s product:-

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4. Price of Products (Pricing Policies): -

Meaning of Price:-

It includes price, trade discount, cash discount, credit terms, and collection policy. The

price is determined normally after considering production cost, distribution cost, quality,

rival’s price & government controls.

Pricing policy of Company

Price is the one element of the market mix that produces revenue. The other elements

produce costs. Price is one of the most important factors that affect demand, growth of

company, market share, competitors, supplier etc. so we can say that the price is decide

by considering this all factors. Price may be suitable to product and market.

How to deciding the price?

DHANHAR EXIM Pvt. Ltd. has taken a certain steps to fix up the price of its different

product.

1. Selecting the pricing objectives

2. Determination of demand for product

3. Estimating the costs of production

4. Analyzing competitors’ costs, prices and offers

5. Selecting a pricing method

6. Selecting the final price

Responding to the competitors price changes

The company may react the changes in competitors’ price changes in following way:

1. Maintain price

2. Maintain price and add value

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3. Reduce price

4. Increase price and improve quality

5. Launch a low-price fighter line

Starting Price of the DHANHAR EXIM PVT. LTD’s Rs. 1, 2, 5, 50, 100, 200 and 500

up.

Price list of the DHANHAR EXIM PVT. LTD for the different Masala’s item in the

market to customer. (100 K.g.)

Price ListAs on 2009

PRODUCT PKG. M.R.P. PRODUCT PKG M.R.P. PRODUCT PKG M.R.P.

RAJWADIGARAMMASALA

25.g 5.00 PAVBHAJIMASALA

15.g 5.00 CHICKEN

MASALA

15.g 5.0050.g 12.00 50.g 22.00 50.g 20.00

100.g 23.00 100.g 40.00 100.g 38.00200.g 46.00 200.g

jar75.00 200.gJar 74.00

500.g 110.00 500.g jar

155.00 500.gJar 150.00

AGMARKHING

50.g 17.50 MUTTONMASALA

15.g 5.00100.g 34.00 TEA

MASALA15.g 50.g 50.g 20.00

200.g 67.00 50.g 100.g 100.g 38.00500.g 165.00 100.g 200.g

jar200.gjar 74.00

SUPERGARAMMASALA

15.g 5.00 200.g jar

500.g Jar

500.gjar 150.00

50.g 8.00 500.g Jar

175.00 FISH MASALA

50.g 20.00

100.g 15.00 100.g 38.00200.g 29.00 PUN.

GREVIMASALA

15.g 5.00 200.gjar 74.00500.g 70.00 50.g 18.00 500.gjar 150.00

NO.300HING

50.g 12.00 100.g 35.00 GUNDAKERI MASALA

200.g 29.00100.g 18.00 200.g 68.00 500.g 70.00200.g 34.00 500.g 130.00 AACHAR

MASALA100.g 15.00

500.g 83.00 CHHOLECHANAMASALA

15.g 5.00 200.g 29.001.kg 155.00 50.g 18.00 500.g 70.00

SUPER HING(DABBI)

50.g 17.00 100.g 35.00 GOL-KERIMASALA

200.g 34.00100.g 33.00 200.g 68.00 500.g 80.00

DELUX HING(DABBI)

50.g 35.00 500.g 130.00 LIMBU-SODA 50.g 7.00100.g 65.00 IDLE

SABHARMASALA

15.g 5.00 500.g 65.00KASHMIRI CHILLI POWDER

100.g 27.00 50.g 18.00 CHEVDAMASALA 50.g 7.00200.g 50.00 100.g 35.00 CHHAS MASALA 50.g 8.00500.g 120.00 200.g 68.00 CHHAS MASALA 500.g 75.00

CHILLIPOWDER

FINECLASSIC

50.g 7.50 500.g 130.00 TEA MASALA 50.g1.kg

18.00

100.g 14.00 DALSHAKMASALA 70.00200.g 27.00 KICKEN

KINGMASALA

15.g 5.00 SURTI MASALA 1.kg 105.00500.g 65.00 50.g 17.00 SP.G.MASALA 1.kg 140.001.kg 125.00 100.g 33.00 DELUX MASALA 500.g 140.005.kg 525.00 200.g 65.00 MARI POWDER 500.g 110.005.kg 600.00 500.g 135.00 SP.TEA MASALA 1.kg 180.00

TURMERICPOWDER

50.g 7.50 JINGER POWDER 1.kg 180.00100.g 14.00 CHAT 15.g 5.00 JIRU POWDER 1.kg 210.00

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Classic

MASALA200.g 27.00 50.g 13.00 LILOMACROHING 1.kg 300.00500.g 65.00 100.g 24.00 KALOMAVROHIN 1.kg 270.001.kg 125.00 200.g 45.00 LALMACROHING 1.kg 225.005.kg 600.00 500.g 110.00 MILK MASALA 20.g 30.00

CORIANDERPOWDER

50.g 7.00 50.g 70.00100.g 12.50 PANIPURI

MASALA15.g 5.00 100.g 130.00

200.g 24.00 50.g 13.00 RAJGARA LOT 100.g 9.00500.g 57.00 100.g 24.00 200.g 17.001.kg 105.00 200.g 45.00 500.g 41.00

CORINDERCUMINPOWDER

50.g 8.00 500.g 110.00 SHINGODA LOT 100.g 13.00100.g 15.00 BIRIYANI

MASALA15.g 5.00 1.kg 130.00

200.g 28.00 50.g 17.00 ROCK SALT 40.g 2.00500.g 65.00 100.g 33.00 100.g 5.00

DHANHAR EXIM PVT. LTD produces many other masala items to small basis. So, its

price is not given here.

5. Organization’s buying process: -

The Dhanhar Exim Pvt. Ltd. Company has major business in industry. It get a raw-

material from the other Company or processing units like farmacitical unit, printing unit

and others. The order placing for the raw material:

1. Problem reorganization

2. General need specification

3. Product specification

4. Supplier search

5. Proposal solicitation

6. Supplier selection

7. Order routine specification

8. Performance review

Where’s comes Row Material?

Red chilly powder from Karnataka

Hing from Afghanistan

Salt from Pakistan

Plastic package from Bombay

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6. Product life cycle (PLS) & Marketing Strategies

Meaning of Product Life Cycle:-

As every being has life, a product has its life. Industrial goods may have a longer life than

consumer goods. Products, like human beings, have length of life for making sales and

earning profit.

The product life cycle is generally termed as product market life cycle, because it is

related to particular market. For instance, an old product in the market of Bombay may

have a life in a village. The product life cycle may be short for same products and long

for some other products. The period may differ form product to product. But the product

passes through the stages, collectively known as product life cycle.

Chart of the product life cycle in DHANHAR EXIM PVT. LTD:-

Sales and Profit

Introduction Growth Maturity

Total sales

Total Profit curve

Introduction: - Product is new, awareness in market, cost of marketing high and

profits are low.

Introduction is the first stage in the life of a product. This is an infant stage. The product

is a new one. The new product means. “A product that opens up an entirely new market,

replaces an exiting product, or significantly broadens the market for an exiting product.”

In this stage profit may below, because of heavy advertising and sales promotion in order

to stimulate the demand.

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Marketing Strategy: -

There are four types of the marketing strategy in Introduction but DHANHAR EXIM

PVT. LTD use only two types of the strategies;

1. Low Price and a Big Promotional Expenditures Budget: -

2. Low Price and a Small Promotional Expenditures Budget: -

`If the market is very wide, customers are unfamiliar with the product and sensitive to the

price and the market is also competitive this strategy is adopted for a quick entry in the

market.

If the customers are price sensitive and promotional expenditures are not likely to

increase the sales and the customers are familiar with the product strategy is adopt for

early and quick entry of the production in the market.

Growth:-

The product has given satisfaction to the first buyers. Sales increase rapidly and product

started generate profit.

Growth is the second stage in the life of a product. In this stage, the product satisfaction

the market and a product gains acceptance from the part of consumers and businessmen.

So, sales and profit increase. The success of firms depends upon the efficient

manufacturing and distributing system of the product. Previous buyers continue in their

purchase and new buyers appear.

Marketing Strategy: -

There are five types of the marketing strategy in Growth but DHANHAR EXIM PVT.

LTD use only four types of the strategies;

1. To increase the quality of the product or add new features to the product.

2. To start a campaign to search out new areas of market.

3. To intensity the advertisement and find out distribution for wide spread sales.

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4. In order to attract price marketing strategies the Company to decrease the price at

appropriate time.

Maturity: -

The product reaching its maturity and sales are good. But battle for market share is

about to begin.

At this stage, keen competition increases. Sales continue to increase for a while, but at

decreasing rate. Competitors go for mark - down price by increasing advertising deals.

Market expenses increase, even after mark – down price, which enable to face

competition. Thus, profit is thinned. Additional expenses are involved in production

modification and in the market. Overall marketing effectiveness becomes the key factor

in this stage.

Marketing Strategy: -

There are five types of the marketing strategy in Maturity but DHANHAR EXIM PVT.

LTD uses all the types of the strategies;

Efforts should be made to enter into new markets.

Steps should be taken to increase the utility of the product.

Product should be made familiar with other classes of customers.

Product should be improved very much.

Alterations should be made in the marketing mix to suit the changing conditions.

So, in the DHANHAR EXIM PVT. LTD’s every product moves through a life cycle,

having three phases, which are above the detail.

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7. Channels of distribution: -

Meaning of Channels of distribution: -

According to American Marketing Association, “A channel of distribution, or

marketing channel, is the structure of intra – company organization units and extra –

company agents and dealers, wholesale and retail through which a commodity, product or

service is marketed.”

Channel of distribution in DHANHAR EXIM PVT. LTD

Distribution channel

The producer and the final customer are part of every channel. We will use the number of

intermediate levels to designate the length of channel. There are many type of distribution

channel in Company. There are following:

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ManufacturerManufacturer

ConsumerConsumer

AgentAgent

WholesalerWholesaler

RetailerRetailer

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1. Zero-level channel

2. One level channel

3. Two level channel

Dhanhar Exim Pvt. Ltd. use to zero level channels and one level channel in rare case

they use a two level channel company get an export order by e-mail and domestic market.

There is use one-level and two-channels.

In dhanhar exim pvt ltd they have 20/25 agents ingujarat for the distribution and they also

get the order web site thru.

8. Sales dept. at a glance: -

Main product of Masala essential commodities sales in open market by

Masala Agent & Super Stockiest as per daily marketable etc.

Masala factory reputed person perform as an Agent & Super Stockiest taken

a some deposits amount from Masala.

Masala deliver against only Demand draft & Cash. There is a some control

about releasing Masala quota for even month edusting by control

government department.

It means department of food supplest, government of India.

Masala factory export masala about as per instruction by control

government benefit to masala factory for exporting.

Price as per the domestic market depends upon Demand and Row – material

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9. Promotional Activities: -

Meaning of promotion: -

Promotion means a set of efforts made by the company for stimulating the demand for

its product or products without making any alteration in product mix, price and channels

of distribution.

Promotion is any communication activity whose main object is to move forward a

product, service or an idea in a channel of distribution. It is a set of efforts by marketer to

inform and persuade buyers to accept, resell, recommended or use the article, service or

idea which is being promoted. It is a form of communication with an additional element

of persuasion. The promotion activities always aim at stimulating demand by affecting

knowledge, preferences, attitudes and behaviors of the buyers.

Important of the promotion in the DHANHAR EXIM PVT. LTD: -

1. Increasing distance between producer and consumer

2. Need of commutation in expanded markets

3. Information to the market intermediaries

4. Stimulates Demand

5. Reviving of Demand

6. Makes other elements of marketing mix meaningful

Customer purched masala item above Rs 1000 up; So, DHANHAR EXIM PVT.

LTD gives one Shopping Beg .

Customer parched masala item above Rs 2000 up; So, DHANHAR EXIM PVT.

LTD gives one Traveling Beg .

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Promotional and advertising policies

DHANHAR EXIM PVT. LTD is a private limited company. Its customers are very

satisfied with the product and services that they are provided. And as we know that the

best advertising is done by the satisfied customer, most of the times the customers

themselves recommend products of DHANHAR EXIM PVT. LTD in their business

circle. No other advertising policy is followed by DHANHAR EXIM PVT. LTD as such

as they never felt the need of doing so till now.

But in case if there is any need of promotion, they make use of consumer-direct channels

to reach and deliver goods to the customers without using any middleman. These

channels include telephones and fax devices. Generally they receive orders in abundance,

but during slack time they call on their customers and ask them to place their orders.

They try to tempt them by saying that production of so-and-so masala is being carried out

and if they place their orders soon they will get prompt delivery or else they will have to

wait for 4 to 5 hours for delivery if they make it late.

E.g. During our summer training we found that during the first week of May

there were quite a few orders with the company. So they called up their customers

and asked them to place their orders by tempting them as they were very busy with

work and if they would place their orders now they will get their order delivered

soon.

This kind of direct marketing helps them to build continuous relationship each

customer and also make their offers and strategies less visible to their competitors.

Also they provide the booklet containing samples of their varieties of masala to

their customers.

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CHAPTER 3. HUMAN RESOURCE DEPARTMENT

Structure of HR department

Activities of Personnel / HR Department

Recruitment & Selection

Human Resource Planning

Training & Development

Promotion & Transfer

Performance Appraisal

Wages & Salary Structure

Employee Welfare

Human Resource Audit

Hierarchy Structure of Organization

Absenteeism Rate

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1. Structure of HR Department

Introduction

HRM is that branch of management which is responsible on a staff basis of concentrating

on those aspects of relationship of management to employee and with the development of

the individual and the group. The objective is to attain maximum individual development,

desirable working relationship between employers and employees; employee and

employee, and effective molding of human resources as contrasted with physical

resources.

In a Dhanhar Exim Pvt. Ltd., there is more importance given to the personnel because

all works are done by human beings if right person appoint then company get surly

success in its works. Company believes in getting well persons for its work.

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Head of HR DepartmentHitesh bhai

Assistant

Peon

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1. Activities of Personnel / HR Department

Meaning of HR: -

“HRM is a management function concerned with hiring, motivation, & maintaining

people in an organization. The function & principle are applied to acquisitioning,

developing, maintaining, & remunerating employees in organization.”

Definition of HR: -

“HRM is a series of integrated decision that form the employment relationship; their

quality contributes to the ability of the employees to achieve their objectives.”

Activities of personnel department: -

HRM department helps managers to recruits, selection and train and develop members

for the company.

HRM is concern with the people’s dimension in organization. HRM refers to set of

programs function and activities designed and carry out in order to maximize. Both

employees as well as organization effectiveness.

The main activities of HRM department are to recruitment, selection, and training and

develop members for an organization.

The function, which are used by HRM department in the Dhanhar Exim Pvt.

Ltd. is below here,

(1) Managerial function

(2) Operative function

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1. Managerial function

(a) Planning: -

Planning is the process of deciding the goals & formulating policies & programmers to

achieve the goals. Planning involves forecasting & research. Planning helps to face

successfully the changes that are likely to take place in future. It preparing human

resource budget.

(b) Organizing: -

Organizing is the process of allocating tasks among the member of the group,

establishing authority – responsibility relationships among them & integrating their

activities towards the common objectives. Organizing is the framework through which

management directs controls & co – ordinates the efforts of people.

(c) Directing: -

Directing is the process of motivating, activating, leading & supervising people.

Directing includes all those activities by which a manager influences the action of

subordinates. Directing is the heart of the mgmt process. Directing also helps in building

sound individual & human relation in the organization.

(d) Controlling: -

It implies checking, verifying & regulating to ensure that everything occurs in conformity

with the plans adopted & the insuuctions issued. Such monitoring helps to minimize the

gap between desired result & actual performance.

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2. Operative function: -

There are five functions in the Operative function but DHANHAR EXIM PVT. LTD Pvt.

Ltd. uses only three functions in this Company, which are below here:

1. Procurement Function: -

Procurement function is concerned with securing & employing the right kind & proper

number of people required accomplishing the organizational objectives.

Dhanhar Exim Pvt. Ltd. consists of the only five activities in the procurement

function:

Job Analysis

Human Resource Planning

Recruitment

Selection

Placement

2. Development Function: -

Human Resource development is the process of improving the knowledge, skills,

aptitudes & values of employees so that they can perform the present & futures jobs more

effectively.

Dhanhar Exim Pvt. Ltd. consists of the only three activities in the development

function:

Performance Appraisal

Training

Executive Development

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3. Compensation Function:

Compensation function is refers to providing & fair remuneration to employees for

their contribution to the attainment of organizational objectives.

Dhanhar Exim Pvt. Ltd. consists of the only three activities in the compensation

function:

Job Evaluation

Wage & Salary Administration

Bonus

So, there are three types of function, which are use by Dhanhar Exim Pvt. Ltd. H.R.

department.

3.Recruitment & Selection

Meaning of Recruitment: -

Recruitment is understood as the process of searching for & obtaining applicants for

jobs, from among whom the right people can be selected. Recruitment involves attracting

& obtaining as many applications as possible from eligible job - seekers.

Organization have to recruit people with requisite skills, qualification & experience if

they have to service & flourish in a highly competitive event while doing so, they have to

be sensitive to economic, social, political, & legal factors within a country.

Definition of Recruitment: -

“Recruitment is the process of finding & attracting capable applicants for employment.

The process begins when new recruits are sought & ends when their applications are

submitted. The result is a pool of applicants from which new employees are selected.”

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Process of the Recruitment in the Dhanhar Exim Pvt. Ltd.

There are four steps of the Recruitment process uses in the Dhanhar Exim Pvt. Ltd.,

which are below here;

1. Planning: -

Panning is the first step of the Recruitment process. Planning’s involves the translation of

likely job vacancies & information about the nature of the job. Types of application refer

to the type of people to be informed about job openings. These details are available

through job description & job specification.

2. Strategy Development: -

Once it is know how many & what type of recruits are required serious consideration

needs to given to;

“Buy” decision

Sources of recruitment

Sequencing the activities in the recruitment process

Planning

Strategy Development

Screening

Evaluation & Control

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“Buy” means hired skilled workers & professionals. It employees has the advantage in

the sense that the skilled professional & labour can be the work immediately & little

training may be needed.

3. Screening: -

Screening is to remove from the recruitment process, at an early stage, those applicants

who are visibly unqualified for the job. It screening, clear job specifications are

invaluable. Applicant qualification judged on the basis of their knowledge, skills, abilities

& interests required to do the job.

4. Evaluation & Control: -

Evaluation & Control is necessary as considerable costs are incurred in the recruitment

process. Statical information on the cost of advertisements, time taken for the process,

salaries for recruiters, time spent on preparing job description, job specifications,

Recruitment overheads & administrative expenses.

4. Selection

Meaning of selection: -

“Selection is the process of picking individuals (out of the pool of job applicants) with

requisite qualification & competence to fill jobs in the organization.”

The objective of selection process is to determine whether an applicant meets the

qualifications for a specific job & to choose the applicant who is most likely to perform

well in that job.

Definition of selection: -

“Selection is the process of differentiating between applicants in order to identify & hire

those with a greater likelihood of success in a job.”

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Selection is the most important process of the any Company . Selection is the based of

choose best workers and employment for the Company.

Process of the selection in the Dhanhar Exim Pvt. Ltd.

There are five types of the Recruitment process uses in the Dhanhar Exim Pvt. Ltd.,

which are below here:

Process of the selection: -

1. Preliminary Interview: -

Preliminary Interview is the fires step of the selection process in the Dhanhar Exim Pvt.

Ltd. Preliminary interview, on the other hand, helps reject misfits for reasons, which did

not appear in the application forms.

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Preliminary Interview

Selection Test

Employment Interview

Reference Check

Physical Examination

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2. Selection Test: -

Generally, tests are used to determine the applicant ability, aptitude & personality.

Different types of tests in the DHANHAR EXIM PVT. LTD Pvt. Ltd., which are below

here;

Ability Test

Personality Test (Tat Test & Cpi Test)

3. Employment Interview: -

An interview test is conducted at the beginning & at the end of the selection process. The

emphasis here is on the letter. Different types of interviews in the DHANHAR EXIM

PVT. LTD Pvt. Ltd., which are below here;

One-to-One-Interview

Sequential Interview

Personnel Interview

4. Reference Checks: -

Reference Checks is the most important process of the selection. Many employers request

name, addresses & telephone numbers of references for purpose of verifying information

& perhaps, gaining additional background information on an applicant.

5. Physical Examination: -

Last and Final process of the selection is the Physical fitness test in the Dhanhar Exim

Pvt. Ltd. The result of the medical fitness test is recorded in a statement preserved in the

personnel records.

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4. Human Resource Planning

Meaning of HRP: -

HRP is the process of forecasting a firm’s future demand for supply of the right type of

people in the right number. HRP is also known as ‘manpower planning’, ‘personnel

planning’ or ‘employment planning.’

Definition of HRP: -

“HRP includes the estimation of how many qualified people are necessary to carry out

the assigned activities, how many people will be available, & what, if anything, must be

done to ensure that personnel demand at the appropriate point in the future.”

HRP translates the orgn’s objectives & plans into the number of workers needed to meet

those objectives.

Time duration of HRP in the Dhanhar Exim Pvt. Ltd.

Short Term Plan : 1 year

Process of the HRP in the Dhanhar Exim Pvt. Ltd.

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Organization Objectives & Policies

HR Needs & Supply Forecasting

HR Programming

Evaluation & Control

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Human resource planning process is important to making effective planning for personnel. The

steps taken by Dhanhar Exim Pvt. Ltd. is describing below:

A. First they analysis the organizational plan it means see deeply future plan of the various

department or organization. Select the Organization’s objectives & policies and done

work in HRP by employment.

B. Then after they forecast demand of manpower required in future they think which type of

manpower demand is required is arise & which department and how much personnel is

required .then they find sources of manpower. And they also find how HR needs and

supply forecast.

C. Once the demand is decided then they forecast the supply of the manpower it means best

sources is available to recruit the employee. Then they match the demand and supply of

manpower.

D. Evaluation & Control is the final phase in the HRP process. The HR plan should include

budgets, targets & standards. It should also clarify responsibilities implementation &

Control which will enable achievements to be monitored against the plan.

Surplus: Reduced hours

Shortages: Recruitment

In this planning following points they take into consideration for its HR planning:

When HR needs arises.

Which type of manpower is required in future?

Source of required manpower available for the organization in future.

Is any diversification is done in the organization in short term OR in long term.

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5. Training & Development: -

Meaning of Training: -

“Training is the process of increasing the knowledge and skills for doing a particular job.

It is an organized procedure by which people learn knowledge and skill for a definite

purpose. Training is aimed at improving the behavior and performance of a person.”

Meaning of Development: -

“Development is the process of developing the knowledge and skills in employees for

doing a particular job. Development involves preparing the individual for a future job and

growth of individual in all respects.”

Why training needs in the Dhanhar Exim Pvt. Ltd.?

There are three rezones to needs training in the Dhanhar Exim Pvt. Ltd., which are below

here;

Job Requirements

Technological Changes

Internal Mobility

Training method:-

There are two methods for training but Dhanhar exim Pvt. Ltd. use,

On the job training method:

Job rotation

Job coaching

Job instruction

Training through step by step

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6. Performance Appraisal:-

Meaning of Performance Appraisal: -

“Performance Appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. Performance Appraisal and Merit

rating are used synonymously.”

Definition of Performance Appraisal: -

According to flippo, “Performance Appraisal is the systematic, periodic and an impartial

rating of an employee’s excellence in matters pertaining to his/her present job and

potential for a better job.” It is the process of obtaining, analyzing and recording

information about the relative worth of an employee.

Advantages of Performance Appraisal of company’s point of view are as

follows.

To effect promotion based on components based on competence and

performance.

To confirm the services of probationary employee upon the completion of the

probation period satisfactory.

To check training and development needs of employee. To decide upon the pay-

raise where regular pay scale have not fixed.

To decide upon the pay-raise where regular pay scale have not fixed.

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To let the employee know where they stand as far as there performance is

concerned and to help them with constrictive criticism and guidance for

the purpose of there development.

To improve communication

Performance Appraisal can used to determine whether human resource program

such as selection, training and transfers have been effective or not.

Essential of Performance Appraisal system in the Dhanhar Exim Pvt. Ltd.

are below here: -

Clear objectives.

Standardization training

Job relatedness

Feedback and participation

Individual differences

Review and appeal

In this way Performance Appraisal system is very useful to company.

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Process of the Performance Appraisal in the Dhanhar Exim Pvt. Ltd.

There are five types of the Recruitment process uses in the Dhanhar Exim Pvt. Ltd.,

which are below here;

Safety Standard

Company follows safety ruse restricts. The company is constructed there plant in such a

way. That in a case of emergency the worker can be secured more then one way out are

provide assembly point is in case of fire safety virulent can be implemented urgently as

wall as general returns, company provided for the worker hand glows, gumshoes, helmets

,masks, to prevent from the masala reactive . Around the bloke more in emergency the

firebriged and disaster management center telephone number are kept in such a way that

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Establishing Performance StandardsEstablishing Performance Standards

Communicating the StandardsCommunicating the Standards

Measuring PerformanceMeasuring Performance

Comparing the Actual with the StandardsComparing the Actual with the Standards

Discussing the AppraisalDiscussing the Appraisal

Taking Corrective ActionsTaking Corrective Actions

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can be contact errantly without loosing time first-aid box are kept in each section of the

plan.

Record and System

As per the rules and regulation company has to maintain all the rerecord to person

working in the factory. More ever company has to keep the record has per government

reels and factory act. In all necessary firms as wall as regarding Safety Company has

get certain machine cheeked though government approval agency time to time related

to safety rules and maintain its records.

Factory & Office Work of Time

The employee must have to come timely and employee has to follow the rules made

by the company and government. Employee not go out side the plant or site without

the permission of his superior or authority. In the organization this rules touch every

person who work in the firm.

Time keeping:

Shift timing

Dhanhar Exim Pvt. Ltd. has only one shift that is day shift and time is: 9 a.m. to 8 p.m.

Break:

12.30 to 1.30 p.m. lunch break

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7. Wages & Salary Structure: -

About Wages & Salary: -

Wages represent hourly rates of pay & Salary means monthly rate of pay, irrespective of

the number of hours put in by the employee. Wages and Salaries are subject to annual

profit. They differ form employee & depend upon the job – nature, seniority & merit.

Wages & Salary, both are part of Components of Remuneration.

There are three policies of the Wages, Which are below here;

Minimum Wage

Fair Wage

Living Wage

A minimum wage should provide for workers family, for his efficiency, for the

education of his family, their medical cure. Minimum Wage 3000 in the Dhanhar Exim

Pvt. Ltd.

A fair wage should provide for productivity of labour, place of Company in the economy

of a country, prevailing rates of wages. Fair Wage 4000 in the Dhanhar Exim Pvt. Ltd.

A living wage should provide for forms the basis for fixing minimum wage, capacity of

the Company to pay. Living Wage 6000 in the Dhanhar Exim Pvt. Ltd.

There are two methods of the Wage Payment, which are uses in Dhanhar

Exim Pvt. Ltd.

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Methods Depended

Time Wage Depended on the time

Piece Wage Depended on the piece (unit)

Wages and Salaries structure in the Dhanhar Exim Pvt. Ltd.;

Company’s wages and salaries are paid by incentives way and also called

payment by result. Incentives are depend open the productivity of the employee.

Productivity of workers Salaries

1000 to 2000 units 3000

2000 to 3000 units 4000

3000 to 3500 units 4500

3500 to 4000 units 5000

4000 to 5000 units 6000

This is a structure of paying salaries in the Dhanhar Exim Pvt. Ltd.

Dhanhar Exim Pvt. Ltd. also provide fringe benefit for such top employee these

benefit are as follows .

Medical care

Hospitalization

Accident relief

Health and group insurance

Canteen

Uniform

Recreation

8. Employee Welfare: -

Meaning of Employee Welfare: -

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According to the Arthur James Todd, “Employee Welfare means anything done for the

comfort and improvement, intellectual or social of the employees over and above the

wages paid, which is not a necessity of the industry.”

Welfare Activities

Welfare activities means those activities which are do always in favor of

employees. It means the special extra facilities given to employees from company.

As it is DHANHAR EXIM PVT. LTD Pvt. Ltd. provides such kind of facilities to

employees which are as follow,

Provide good condition of equipment and also provide better

environment for work

Company provides individual changing room, store room, rest room etc.

First aid box provided to all department.

Safety devices like helmet, glows, safety shoot are provided by Dhanhar

Exim Pvt. Ltd. in production area units

Traveling allowance and dearness allowances are provided to every

employees and executive.

There are two type of welfare activates of the company

1. Intramural

2. Extra – mural

1. Intra mural : - This services are provided within the establishment These

include washing & bathing facilities, rest room, uniform,

medical aid , recreation facilities.

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2. Extra mural: - These services are provided outside the establishment. these

include housing accommodation , transport , maturity benefits ,

sport’s field, holiday home, etc.

DHANHAR EXIM PVT. LTD use only Intramural Welfare Services.

9. Human Resource Audit: -

About Human Resource Audit: -

Audit is an important test of managerial control of company’s point of view. It

involves examination and verification of accounts and records. Human recourse audit

implies critical examination and evaluation of polices, programs and procedure in

the area of HR audit of the company’s point of view .

Advantages of HR audit in company’s point of view.

To review the system of acquiring , developing , allocating, and

utilizing human resource in the organization .

To evaluate the extent to which line managers have implemented the

polices and programs .

To identify shortcoming in the managers in the management of human

resources.

To evaluate the human recourse staff.

Company’s scopes of HR audit are as follows;

1. Auditing human recourse polices.

policy of the company

policy formulation

communication policy

consistency policy

2. Auditing Human Recourse Programs.

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3. Audit of Human Recourse.

4. Company’s Audit Report.

10. Hierarchy Structure of Organization:

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11. Absenteeism Rate:-

HR Department Head

HR Department Head

Personal managerPersonal manager Personal officerPersonal officer

Supervisor Supervisor

WorkerWorker

Clerk Clerk

PeonPeon

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The absenteeism rate of DHANHAR EXIM PVT. LTD Pvt. Ltd. has decreased since last

two years as seen form the records maintained by the Company. The absenteeism rate in

the year 2007-2008 was around 7% which has now decreased to 4% in the year 2009-

2010. This is due to the change in the interest and avearness of the employees working in

the company and development of the wage rates which is linking.

Example: - The wages are on the basis of their work or their attendance. If any

person remains absent continuously for more than eight days without informing the

company that person would be removed from the job.

Why absenteeism rate is decreased?

Absenteeism Rate is decreased compared to 2007-2008 and 2009-2010 because

DHANHAR EXIM PVT. LTD Pvt. Ltd. gives extra benefits to the workers. Like bonus,

gift and etc. So, Absenteeism Rate is decreased about 3%.

CHAPTER 4. PRODUTION DEPARTMENT

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Structure of production department

Activities of Production Department

Process Layout / Product Layout

Technology used

Machinery Operations Stores

Plant Location, Controls of R.M. in Process & finished goods

Quality Control

1. Structure of Production Department

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Introduction: -

Meaning of Production: -

Head of Production

DepartmentJignesh bhai

Production Manager

Assistant

Workers

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“Production is the process of converting the raw material and for the other input the

product for further production of the finished goods or services so that utility of input is

created or enhanced and the need of customer are satisfied.”

Example: - Consumer goods, Industrial goods, Services of transport, Medical

treatment, Education, Insurance, Banking etc.

Definition of Management: -

“Management means creating and maintaining an environment in which individual

working together in group willingly contribute there best to achieve the predetermined

goal and objective timely though the effective utilization of sources such as money,

material, technology etc.”

Production Management: -

“Production Management means creating and maintaining environment in which

individual working together in group willingly contribute their best to produce to satisfy

the goods and services by optimum utilization of raw material and other input so as to

timely satisfy the need of customers”

Important of Production Management: -

1. It helps to satisfy the need of customer timely:-

By maintaining the quality delivery schedule and the require rate of

production.

By providing the flexibility of production to give different form of product

and verity of products.

By providing reasonable low price though increase in productivity.

2. It increase the productivity: -

By utilizing the resources efficiently.

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By reducing the wastage of raw material, man hour, machine hour, fuel

etc.

By minimum inventory cost, set up cost, ordering cost etc.

3. It gives the better satisfaction to the employee: -

By providing job satisfaction though training, motivation, good

working condition.

By providing them incentive like with higher productivity.

4. It satisfies the investors by increasing the return on investment (ROI) and capital

appreciation.

5. It satisfies the supplier of an input and ancillaries. By increasing their turn over.

6. It satisfies the community.

By providing pollution free and healthy environment.

By welfare and development activity in the community.

Infrastructure

A well equipped infrastructure allows an organization to gain a decisive edge over its

counterparts. Considering this fact, we have invested a huge capital for the establishment

of the same. Our infrastructure comprises different departments such as warehousing &

packaging unit, quality control management system and processing department that help

in smooth functioning of an organization. Each department is headed by an expert, who

efficiently manages the operations its department. Moreover, we have installed advanced

machines and equipment to maintain the swift rate of production.

2. Activities of Production Department: -

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Production Management includes all the activities right from the procuring of row

materials and other inputs to their conversion into marketing output.

There are various activities of the production department in the Dhanhar Exim Pvt.

Ltd., which are below here in short.

1. Product Selection and Design

2. Process Selection and Planning

3. Location of Plant and Facilities

4. Material Handling

5. Capacity of Planning

6. Production Planning and Control

7. Purchasing and Inventory Control

8. Quality Control

9. Maintenance and Replacement of Machinery

10. Cost Reduction and Control

11. Incentives and Extra Benefits

So, there are different eleven types of activities of the production department in the

Dhanhar Exim Pvt. Ltd.

3. process layout

Location of plant

Plant location is mainly selection on these areas where the business should well establish

for maximum utilize of economy and effectiveness. It is an important decision in long

term.

Location of plant is most important factor in a private sector. There are many factors are

affected e.g. if the place was out side the city then they are free from paying octroi for

their product, various taxes, labour transmission facilities, living home to the labour or

employee like houses, cottages etc., for the raw material storage facility to the certain

extent to run production smoothly. When plant or site is located in near or in the city they

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have no expense to rent for the employee or labour houses, available good infrastructure

in compare to the far from the city area, less transportation cost, easy distribution of

goods in less time

Dhanhar Exim Pvt. Ltd. plant is located at no far from the city and not near to the city.

It is located in industrial zone of fulpada in this area they get benefits from the

government and electricity, water, roads, communication channels.

Dhanhar Exim Pvt. Ltd. Chooses this area because there are available enough raw

material with proper quality & quantity. Easy distribution of their product & profitable to

the Company. They not thinking for the changing the site. They want to buy or take on

the lease new site near the old plant.

The population is increasing day by day and residential area will come near to the

industrial area so that DHANHAR EXIM PVT. LTD Pvt. Ltd. More concentrate on

environment not harmful to their citizen. The company will think to establish new plant

far from to the residential area.

Production department

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Process layout

Process layout plant depend in 10 types of production department and the Process

layout /are as follows.

Flow chart of manufacturing Masala

(1) Plastics/ Billets:

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Plastic/billetArrival

Testing inLaboratory

Storage &Dispatch

CuttingTo length

CoolingRoom

INSPECTION

Charged in re-useFurnace capacity 1MT/hr

Sent backTo supplier

Intermediate Work

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Plastic / Billets is a one types of row-materials. The plastic / billets they purchases in

different places for the different item and he is delivery to the other places and cities,

which are uses masala. All the industries have too very big stock in plastic / billets.

(2) Reheating Furnace:

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Reheating furnace means return to plastics and billets furnace. The company foremen or

worker supplied for the plastics and billets to the furnace. The cranes carry to the plastics

and billets and put the conveyer belt so conveyer belt pick up the plastics and billets goes

to the reheating furnace. So plastics and billets go to the furnace after the process plastics

and billets go to the roughing mill.

(3) Intermediate Work:

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Intermediate mill always work in roughing mill work finished. Actually

intermediate mill means the joint for the plastics and billets. Intermediate

mill the workers hand a one masala packaging and he was push the out of

roughing mill stock and supplied in intermediate mill and the intermediate

mill joint the packaging and fixed cuts. So intermediate mill means a one

types of joint the packaging. The intermediate mill in a very high degree

temperature. So, worker very carefully works in intermediate mill.

(4) Finishing Work

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Finishing mill means the finished the Masala Packaging. The Company always very

carefully to the finished for the packaging. The Company always demands in the market

and he was not rough product for the customer. So, Company always very carefully for

the finishing mill and the different product for other Masala’s companies. Finishing mill

always in the very carefully work for the masala packaging.

(5) Cooling Room

Cooling bed means cool the Masala Packages. Some time the package produce in very

large number so Company cooling room also facilities provide for the factory. Cooling

room work only the cool the packages. The cooling room very long and very big many

workers work on the cooling room. The workers pick up the masala packages and put

the cooling room.

(6) Inspection

Inspection means a one types of checking for the packages. The Company checks the

packages a briefly. The manager is only view to the checking of packages. The Industries

one manager appointment to the check of packages. The manager is checks the packages

after goes to the packages in the storage & dispatch. Inspection plan is fully

automatically. The foremen provide to the machinery and check the packages and the

machinery provide the document about in packages how many unpolluted. These

facilities also provide the companies for his customers.

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Inspection report

No.

Bought of Purchase order no.

Material receipt report no.

Date

Item

no.

Code

no.

particular Quantity

on order

Quantity

received

period rejected Remarks

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(7) Storage (Warehousing) & Dispatch

Storage & dispatch means the store the Masala’s packages and transporting to the

packages. Storage means the companies store the packages and the customer gives the

order for the different item of the masala. So, Dhanhar Exim Pvt. Ltd. calls to the

transporter and gives the dispatch for the packages. Any times the Company gives self

delivery for the product. So the very big place for the storage & dispatch and the

Company also selected worker for the storage & dispatch.

We understand the value of a warehouse in an organization like ours and therefore we

have established a capacious warehouse. Our warehouse is managed an expert who

manages the working of the same. It is well ventilated and properly segregated for the

easy identification of the products.

Apart from this, we have packaging professionals who make use of tamper proof bags

and corrugated boxes to maintain the quality of the products during the transit. Our team

of logistics makes sure to deliver the spices at the clients' end within the committed span

of time.

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4. Technology used: -

Technology is play very important role of the any Company. Dhanhar Exim Masala Pvt.

Ltd. used latest technology in the factory to produce the different types of Masala and

display in the market of whole Gujarat and its selling & result is nice for the Dhanhar

Exim Pvt. Ltd. So, DHANHAR EXIM PVT. LTD Pvt. Ltd. used “INPACK

FABRICATIONS PVT. LTD.” technology. DHANHAR EXIM PVT. LTD used many

other machines and technology which are below here;

DHANHAR EXIM PVT. LTD used;

1. High Speed Servo Driven Auger Filler (With Rexroth Bosch System)

2. High Speed Volumetric Viscous Filler to pack oils

3. Servo Driven Auger Filler (With Siemens System)

4. Volumetric Cup Filling ( to pack free flowing Granules)

So, Dhanhar Exim Pvt. Ltd. uses these four types’ machines of the “INPACK

FABRICATIONS PVT. LTD.”

Company uses modern machines and techniques to maximize their production and to

minimize the waste. Company uses only Indian Machines, no China Machines.

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5. Plant Location, Controls of R.M. in Process & finished goods: -

Location of plant

Plant location is mainly selection on these areas where the business should well establish

for maximum utilize of economy and effectiveness. It is an important decision in long

term.

Location of plant is most important factor in a private sector. There are many factors are

affected e.g. if the place was out side the city then they are free from paying octroi for

their product, various taxes, labour transmission facilities, living home to the labour or

employee like houses, cottages etc., for the raw material storage facility to the certain

extent to run production smoothly. When plant or site is located in near or in the city they

have no expense to rent for the employee or labour houses, available good infrastructure

in compare to the far from the city area, less transportation cost, easy distribution of

goods in less time.

Dhanhar Exim Pvt. Ltd. plant is located at no far from the city and not near to the city. It

is located in industrial zone of Surat at A.K. Road. In this area they get benefits from the

government and electricity, water, roads, communication channels. Dhanhar Exim Pvt.

Ltd. chooses this area because there are available enough raw material with proper

quality & quantity. Easy distribution of their product & profitable to the Company. They

not thinking for the changing the site. They want to buy or take on the lease new site near

the old plant.

The population is increasing day by day and residential area will come near to the

industrial area so that Company more concentrate o environment not harmful to the their

citizen. Dhanhar Exim Pvt. Ltd. will think to establish new plant far from to the

residential area.

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Raw Material

Dhanhar Exim Pvt. Ltd. uses the raw material to make a product like Plastics/billets.

Every product has a different raw material. Dhanhar Exim Pvt. Ltd. Use raw material

given below:

1. Plastics /Billet

2. Different Masala’s Row - Material comes different Places

Procuring the raw material

The needs of raw material exist when Company receives orders from the customers. For

that Company makes contract or agreements with the supplier of raw material. Contract

may be duration for the one month or one year. Company purchases the raw material in

the local market.

According to the agreement duration of contract, price of raw material, quality of raw

material, and in some case quantity is also specifying, Party’s name, and supplier name is

mentioned in the contract.

Row -Materials are goods which have not yet been committed to production in a

manufacturing firm. They may consist of basic raw materials or finished components, in

many of the cases the finished goods of one Company becomes the raw materials of

another Company.

E.g.: - The finished goods of a Dhanhar Exim Pvt. Ltd. are the masala, which

becomes the raw material from different places for different masala.

1. All the plastics Row - Material comes from the Bombay

2. Rock Salt’s Row - Material comes from the Pakistan (Lahore)

3. Hing’s Row - Material comes from the Afghanistan (Iran)

So, Different types of Row -Material is uses in the Dhanhar Exim Pvt. Ltd. and it comes

to many far and different places.

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Finished Goods

After come raw materials for different type’s masala, then work in process to the end of

finished goods. Finished Goods are completed products awaiting sale. Finished Goods

are the final output of the production process in a manufacturing firm. The levels of the

three different kinds of inventories depend upon the nature of the business.

E.g.: - DHANHAR EXIM PVT. LTD will have high levels of all the three kinds’

inventory, while a retailer or wholesaler will have high level of inventories of

finished goods only.

Inventory Management

Definition of Inventory Management: -

“Inventory control means the decision of the firm as to the extent to which inventories

can be economically stored.”

Inventory management: -

Dhanhar Exim Pvt. Ltd. they are not able to engage large amount of money in stock. So,

Industries plant manager has to handle the inventory of raw material, semi-finished goods

etc. There is no such type of different department to manage the inventory. According to

the manger who handle the inventory, in early stage there were no speedy transportation

and communication so they have to consider the lead time for the raw material required

that’s why the company need to maintain inventory of raw material and finished or semi-

finished goods. Today there is a greatest change in the IT sector, transport facility etc. So,

there is less need to maintain inventory. Now the raw material is available in the same

place or near by place, in case raw material purchased from outside the other city then it

is available in one or two days. So, there are fewer burdens to bring the stocks.

Dhanhar Exim Pvt. Ltd. maintains stock for the safety purpose so production runs in a

smooth way. The stock keeps for the using it crisis time. So, productions not stop.

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Store Inward Receipt

M/s. Vehicle no. Date

GR. / RR. No. Date INDENT No.

Transporter

Challan No.

Sr.

No.

Description

of material

Unit Qty. as

per

challan

Short

quantity

Received

quantity

Rejected

quantity

Quantity

accepted

6. Quality Control

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About Quality: -

Quality refers to the sum of attributes or properties that describe a product. These are

generally expressed in terms of specific product characteristics such as length, width,

colour, etc. These characteristics must be quantitatively expressed in terms that can be

objectively measured or observed.

About Quality Control: -

Quality Control refers to those activities used to refer to a specific organization within the

Industrial enterprise which is assigned responsibility for many of the activities necessary

to achieve quality objectives.

Quality is the hallmark of all our endeavors, which has set us apart from our counterparts.

To ensure high quality in his range, they follow a set of quality assurance policies, which

incorporates stringent quality testing process of our range. They have employed a team of

quality controllers that keeps a tab on the entire process, starting from the procurement of

ingredients to the last stage of shipment. Their wide gamuts of Indian Spices are

rigorously tested on various parameters such as:

1. Purity

2. Taste

3. Aroma

4. Freshness

5. Shelf life

Methods of Quality Control, which are uses in the Dhanhar Exim Pvt. Ltd.

There are four method uses, which are

1. Inspection

2. Quality Circles

3. Total Quality Management (TQM)

4. Statistical Quality Control (SQC)

Most of use Inspection and Statistical Quality Control by Dhanhar Exim Pvt. Ltd. in

the Factory.

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Quality control

Customers of any Company first take care and try to know about the quality of the

product. It happens in this Company also.

The Company produces a product as per the customer requirement and the standard given

by the customer. For quality control company takes sample in each and every stage of

production and check the quality of given order. These samples send to the customers and

if they approve the sample then and only then the order being processed. Quality check in

the Industries own laboratory which is located in their plant. Laboratory is located in the

plant so it comfortable to test and transport the sample.

If customer reject the sample then second time process is begin with improvement and

with care of consider the quality and requirement of customer. Then it sends to the

customer again

In present time quality control has been one of the most important factor to boost the

product in the competitive market. Every stage quality checking, reaction testing

becomes an important factor. Just starting the batch from the first reaction time to time

testing is carried out in between the process quality control and check is containing

carried until the product comes out into the final form especially in dye stuff. Certain

quality parameters are important like solubility of materials, insoluble particles of

materials, isomers, so contained other foreign particles transparency of the material and

strength of the material.

Transport

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The Dhanhar Exim Pvt. Ltd. provides a transportation facility to its customer. For export

purpose company send goods to near by dock and then responsibility are shifted to the

buyer’s to carry out the goods to their place. Company sends goods by the truck, tempo,

max pick up and other transport agencies. Dhanhar Exim Pvt. Ltd. has its own vehicles to

transport the goods.

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CHAPTER 5.FINANCE DEPARTMENT

Budgeting & Planning

Taking Loans (Sources of funds)

Issuing Shares (if applicable)

Providing funds to Different Departments

Balance Sheet & Annual General Report

Working Capital, Cash, Inventories,Receivables etc.

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Introduction: -

A firm needs to manage its resources effectively and efficiently to achieve its objectives.

The managing of resources in an effective manner is possible only when the management

works out the future courses of action in advance and takes decisions in a professional

manner, utilizing the individual and group efforts in a co-ordinated and rational manner.

Financial Planning should estimated 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.

Organization Structure of Finance Department

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Chairman

Directors

General Manager

Accountant

Cashier

Clerk

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Accounting Policies

Method of accounting:

The company follows mercantile systems of accounting as mentioned in the

companies act, 1956.

Fixed assets:

All fixed assets are recorded at cost of acquisition including installation cost wherever

applicable excluding motivate amount.

Depreciation:

It is being provided according to the companies act 1956 considering written down value

method using single shift working in respect of plant and machinery. In respect of other

assets depreciation is provided according to rates prescribed in schedule IV of the

company’s act 1956 in case of addition during the year. Depreciation is provided of the

prorate basis.

Inventories:

Inventories are valued at the cost or net realizable value whichever is lower.

Income and expenses recognition:

Income and expenses are accounted for an accrual basis.

Miscellaneous expenditure:

Miscellaneous expenses are amortized over a period of 10 years.

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Capital structure during the year (Amount in Rs.Thousands)

Public issue --- Nil

Bonus issue --- Nil

Rights issue --- Nil

Private placement --- Nil

1. Budgeting & Planning: -

Definition of Capital Budgeting: -

Capital Budgeting may be defined as decision making process by which an organization

evaluates the major investment proposals keeping due consideration for the,

Amount needed for Investment

Amount available for Investment

Amount that can be acquired from different sources

The cost of raising funds

Future cash Inflows

Types of Capital Budgeting in the Dhanhar Exim Pvt. Ltd.;

1. Introduction of a New Product

2. Change in Method of Production

3. Replacement

4. Business Expansion

5. Substitution of Machinery for Labour

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Definition of Financial Planning: -

Financial Planning is primarily a statement estimating the amount of capital and

determining its composition. It includes. :

1. The determination of the form and proportionate amounts of securities.

2. Develop the best plan to obtain the required fund.

3. Analyse control points which need to be established.

4. Estimated the requirement of financial resources in time with its operating

programme.

5. Established control points which need to be established.

Advantages of Financial Planning in any Company;

Economical procurement and profitable use of funds

Elimination of Waste

To Maintain Effective Control

Modern business is very complex. Financial Planning helps management to avoid waste

which possible by maintaining close co-ordination between various functions of the firm.

Financial Planning provides broad guidelines for procurement, allocation and

disbursement of funds. Control can be exercised in an effective manner when actual are

compared against these guidelines.

In the Dhanhar Exim Pvt. Ltd. financial planning is very strong. Finance position level is

maintained for the future.

Factors affecting for the financial planning in the Dhanhar Exim Pvt. Ltd.;

Nature of business

Attitude of the Management

Alternative sources of finance

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Steps in Financial Planning, which are taken by the Dhanhar Exim Pvt. Ltd.;

Review and Analysis of past performance

Establishing objectives

Financing

Consequences of Financial Plans

2. Taking Loans (Sources of funds): -

DHANHAR EXIM PVT. LTD Pvt. Ltd. requires and uses Short Term Capital for

running the business. Short Term Capital to finance its working capital requirements.

Dhanhar Exim Pvt. Ltd. taking no loans by any Industrial bank.

Dhanhar Exim Pvt. Ltd. use only Retained Earnings in the business firm.

Depreciation charged and retained earnings represent the internal sources of finance

available to the Company. If the depreciation charges are used for replacing worn-out

equipment, retained earning growth the only internal sources for financing expansion and

growth. Industrial normally retain 30 per cen to 60 per cen of profit after tax for financing

growth.

Advantages of the Retained Earnings in the Dhanhar Exim Pvt. Ltd.

A. Retained Earnings are readily available internally. They do not require taking to

outsiders.

B. Retained Earnings effectively represent effect of additional equity in the firm.

C. There is no transfer of control when a firm relies on retained earnings.

D. The capital appreciation that arises as a sequel to retained earnings is subject to a

lower tax rate.

E. Reinvestment of profit may be convenient for many shareholders as it relieves

them to some extent of the problem of investing on their own.

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3. Providing funds to Different Departments: -

Dhanhar Exim Pvt. Ltd. providing funds to different departments in their budgeting

programme.

8% to 10% for marketing department

20% to 30% for capital budgeting

2.5% to 4% for employee welfare

50% to 55% for wages & salary

4. Issuing Shares: -

Dhanhar Exim Pvt. Ltd. has no Issuing Shares and no applicable shares.

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1. balance sheet & Annual General Report:-

Annual General Report & Balance Sheet of the DHANHAR EXIM PVT.

LTD for the year of 2010 – 2011

Trading Account as on the date 31/03/2011

(Account Year: - 2010 – 2011)

Particulars (Name of

Account)

Debit Credit

Sales of Goods (Retail) ----- 2,87,81,702

Closing Stock A/C ----- 28,45,211

Fire & General Ins. A/C ----- 22,48,738

Opening Stock A/C 12,44,697 -----

Sales Tax A/C 1,32,315 -----

Octroy A/C 2,21,058 -----

Electric Bill Exp. A/C 2,33,280 -----

Purchase of Goods (Retail) 2,08,98,501 -----

Purchase of Goods (tax) 43,01,891 -----

Gross Profit 68,44,209 -----

Grand Total of Trading

Account

3,38,75,951 3,38,75,948.21

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Profit & Loss Account as on date 31/03/2011

(Account Year: - 2010 – 2011)

Particulars (Name of Account) Expense Income

Gross Profit ----- 68,44,209

Bank Com. A/c 7,153 -----

Discount A/c 40,859 -----

Telephone Exp. A/c 11,519 -----

Petrol Exp. A/c 28,732 -----

Other Exp. A/c 7,904 -----

charity Exp. A/c 4,200 -----

Machinery Reading Exp. A/c 57,660 -----

Advertising Exp. A/c 665039 -----

Salary Exp. A/c 3,30,400 -----

Fire & General Ins. Exp. A/c 60,790 -----

Professional Tax 1,000 -----

Stationary Exp. A/c 4,817 -----

Mobile Phone Exp. A/c 23,499 -----

Cold Storage Rent 2,389 -----

Computer Programme Service Exp. 8,000 -----

Lava jam Exp. A/c 12,900 -----

other Exp. 3,534 -----

Carriage Outword Exp. 1,79,749 -----

Letter (Tar - Tapal) Exp. 18,428 -----

Packing Stock ----- 6,01,277

Hire Charges 44,291 -----

Depreciation Exp. 3,18,343 -----

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Legal Action Fee Exp. 42,382 -----

Website Exp. 26,636 -----

Machinery Parts Exp. 96,664 -----

Rent Exp. 1,42,800 -----

Bonus Exp. 27,500 -----

Salary Exp. (Staff) 2,49,000 -----

Interest Exp. 3,17,696 -----

Machinery Consultant fee 34,800 -----

Light man Exp. 34,800 -----

Purchase of Packing 31,68,016 -----

Net Profit & Loss A/C 14,73,986 -----

Grand Total of P & L Account 74,45,486 74,45,486

Balance sheet

It is statement of financial position of any economic unit disclosing as at a given

movement of time its assets at cost, or other indicated value, its liabilities and its

ownership equities. It shows current assets, current liabilities, fixed assets, investment,

differed charges, long-term liabilities, proprietors fund etc.

In brief it includes the figure in summery from of various assets held by the company and

also its liability towards outsiders including the owners at the end of last day of an

accounting year.

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Balance Sheet as on date 31/03/2011

(Account Year: - 2010 – 2011)

Particulars (Name of Account) Liabilities Assets

Partners/Prop. Capital 55,54,326 -----

Secured Loans 32,11,252 -----

Unsecured Loans 4,15,626 -----

Sundry Creditors (Suppliers) 61,95,516 -----

Other Liabilities

Sale tax A/C (Previous) 47,561 -----

Other Account 3,20,000 -----

Fixed Assets

Machinery A/C ----- 1,99,000

To lamp A/C ----- 7,041

Computer Printer A/C ----- 10,317

Motor Cycle (bike) A/C ----- 3,752

Air Condition A/C ----- 45,694

Fax Machinery A/C ----- 2,292

Television A/C ----- 4,175

Computer A/C ----- 64,427

Civil Exp. A/C ----- 31,785

Good will A/C ----- 3948019

Motor Car A/C ----- 11,65,948

Advance Given to Employees 17,500 -----

Sundry Debtors (Customers) ----- 2,74,517

Cash Account

Cash Book ----- 11,10,186

Bank Account

Dena Bank ----- 3,94,109

Current Assets

Closing Stock A/C (B/A) ----- 28,45,211

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Electric Item A/C ----- 51,624

Packing Stock A/C ----- 6,01,277

Grand Total of Balance Sheet 1,57,59,000.77 1,57,59,000.77

DHANHAR EXIM PVT. LTD goes to on the profit way comparing the year of 2009 -

2010. DHANHAR EXIM PVT. LTD has more profit in the year of 2010–2011. In the

year of 2009–2010 Gross Profit was Rs. 51, 66,835.92 and year of 2010–2011 Gross

Profit is Rs. 68, 44,209.19. So, it means Rs. 16, 77,373.27 more profit in the year of

2010–2011 comparing the year of 2009–2010. It’s good shine for the business because

DHANHAR EXIM PVT. LTD goes to on the profit way.

Analysis of P&L account and Balance Sheet by Ratio

Ratio of DHANHAR EXIM PVT. LTD

Ratio analysis is powerful tool of financial statement analysis. In financial statement

analysis a ratio analysis used as a band mark for evaluating the financial position and

performance of a firm. The absolute figures reported in the financial statement do not

provide meaningful understanding of the performance and financial position of firm. An

accounting figure coveys meaning when it is related to other information. The term ratio

refers to the numerical or quantitative relationship two variables regarding financial

performance, operational efficiency and profit margin with respect to companies over a

period of time and has but one companies within the same industries group.

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Liquidity Ratio:-

Amonnt

Liquidity Ratio 2011

1.Current ratio =Current assets 3498112

Current liability 9822394

0.356:1

Interpretation: If Current ratio is 2:1 then it is satisfactory but here current ratio is

0.356:1 so it is not satisfactory as per the accounting standard

2.Acid test ratio =liquid Assets 17,78,812

liquid Liability 98,22,394

0.181:1

Interpretation:If Acid test ratio is 1:1 then it is satisfactory but here Acid test ratio is

0.181:1 so it is not satisfactory as per the accounting standard

3.Long term fund to fix

Asset ratio =

Long term fund 9181205

Fixed assets 1534435.34

5.983441948

Interpretation: Long term fund to fix Asset ratio is 5.983so it is satisfactory as per the

accounting standard

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Profitibility ratio:-

Profitibility ratio 2011 (Amount)

1.Gross profit ratio = Gross profit * 100 68,44,209*100

Net sales 2,87,81,702

23.78 or 1:4.205

Interpretation:If Gross profit ratio is 1:4 then it is satisfactory but here Gross profit

ratio is 1:4.205 so it is satisfactory

2.Operating ratio =

COGS+Operating

exp.*100

289,70,10,056

Net Sales 2,87,81,702

99.96

Interpretation Operating ratio is 99.96 is so good for the company so it is satisfactory

as per the accounting standard

3.Net Profit ratioNet Profit*100 147398644

Net Sales 28781702

5.12126225

Interpretation :If Gross profit ratio is 1:3 then it is satisfactory but here net profit ratio is 5.121:1so it is satisfactory and it is very good for the company

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Efficiency Ratio:-

2011(Amount)

1.Stock Turnover ratio =Net Sales 28781702

Average inventory at cost 2044954.12

14.074498

Interpretation:this ratio show the how many time is turn over of the money or

investment here Stock Turnover ratio is 14.074 so it is one strength point of company

2.Debtors Turnover ratio =Debtor – BR *360 8953.81

Net Credit Sales Not Define

---------

3.Creditor Turnover ratio =Creditor – BP*360 5927172.7

Net Credit Purchase Not Define

----------

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6. Working Capital: -

Working capital to a company is like the blood to human body. It is the most vital

ingredient of a business. Working capital management if carried out effectively,

efficiently and consistently will assure the health of an organization.

Meaning:-

Working capital is defined as the excess of current assets over current liabilities.

Current assets are those assets which will be converted into cash within current

accounting period or within the next year as a result of ordinary operation of the business.

They are cash or near cash resources. This includes:

Cash and bank balance

Receivables

Inventory

Raw materials, stores and spares

Work in progress

Finished goods

Prepaid expenses

Short term advances

Temporary investment

The value represented by these assets circulates among several items. Cash is used to buy

raw material, to pay wages and to meet other manufacturing expenses. Finished goods are

produced. These are held as inventories. When these are sold account receivable brings

cash into the firm. The cycle starts again. This is shown in the following diagram.

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CashCash InventoriesInventories

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Circulation of current assets

Particulars 2007 2006Current Assets

Inventories

Sundry debtors

Cash on hand

Bank account

Loans and advance

325843.00

265562.24

1006635.00

394109.93

-----

181545.00

108563.85

501120.00

-----

45000.00

A: Total Current Assets 1992150.17 1036228.85

Current Liabilities

Creditors

Advance for goods

Provisions

Other liabilities

527172.74

297100.00

544870.00

55000.00

325574.85

-----

348115.00

-----

B: Total Current Liabilities 1424142.74 673689.85

Working capital = (A-B) 568007.43 362539

Current liabilities are the debts of the firms that have to be paid during the current

accounting period or within a year. These include:

Short term goods purchased

Creditors for good

Out sstending expenses

Advances received against sales

STATEMENT OF WORKING CAPITALSTATEMENT OF WORKING CAPITAL

Formula to calculate Operating cycle is;

Operating Cycle = R+W+F+D-C

Raw material storage period :

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R = Average stock of raw material .

Average raw material consumption per day

= 15 days

Finished goods storage period :

F = Average finished stock inventory

Average cost of goods sold

= 1 day

Debtors collection period :

D = Average debtors .

Average credit sales per day

= 36 days

Credit payment period :

C = Average creditors .

Average credit purchase per day

= 20 days

Operating cycle = R + F + D – C

= 15 + 1 + 36 – 20

= 32 days

Internal audit policies:-

Internal audit system is very important for any Company. By the audit, management can

know where the company stands. This is the best way to control and remove deices.

Management can also easily know whether they are earning profit or incurring loss.

The balance sheet and profit and loss A/C of DHANHAR EXIM PVT. LTD is audited

every year at the end of the march.

An audit of DHANHAR EXIM PVT. LTD is conducted in accordance with auditing

standards generally accepted in India. Audit is planned and performed to obtain

reasonable assurance about whether the financial statements are free of material

misstatement. An audit includes examining on test basis evidence supporting the amount

and disclosure in the financial statement. An audit above includes assessing the

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accounting principles used significant estimates made by the management as well as

evaluating the overall financial statement presentation. Here auditing is done half yearly.

The balance sheet and profit and loss A/C comply with the accounting standards referred

to in subsection 3-C of section 211 of the companies act 1956.

Types of Payment to Auditor Amount (Rs.)

Audit Fees 15000

Tax Audit Fees 5000

Other Matters 5000

Services Tax 1250

Finding

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1. Financial analysis of dhanhar exim pvt. Ltd.

This company current ratio is 0.356:1 is very poor as camper to the accounting

standard and also when we show the balance sheet of this company at a time I

mark current asset of dhanhar exim pvt. Ltd. Is very low as compare to the his

current liability. But his gross profit and net profit is very good and that reason is

their strong financial planning and management skill.

2. Marketing analysis of dhanhar exim pvt. Ltd.

Company produces their product when the they got the order so company’s

storage period of good is 1 or more then 3 days.

Company is now tread thru the e-commears so because of this they get the

advantage of treading in international market.

dhanhar exim pvt. Ltd. Provide to their customer quality promises offer in very

chipper price.

in spice market many rival firm so they do require the advertisement.

3. analysis of production department dhanhar exim pvt. Ltd.

dhanhar exim pvt. Ltd. produce their product as per the international standard and

hallmark standards like packing.

they mostly focus on test of the product as per the customers went.

4. analysis of human resource department

dhanhar exim pvt. Ltd. give fair wages to their labars and give promises of

minimum wages.

And whenever company adopt new technology at a time they give a training to

their laboar they work effectively on new machinery.

Company has maintain the employ relationship thru the bonus gift and welfare

activity .

Suggestion

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Improve the current ratio& acid test ratio.

Collection policy of the company is liberal so do the slimly strict.

Do some more promotional activity because of the some big rival firm

like.M.D.H & S.K they expense very big amount of money behind advertisement.

Very big Scope of the spice industry in forain country’s (uropian country)so

consentreat on this .

Use some automatic machinery so they achieve target production output can be

achieve easily.

Open new agency and acquire new agents for the covered the market and enter into

new markets.

Steps should be taken to increase the utility of the product.

Product should be improved as per the new preference.

updated with the advanced technology and latest trends of the market.

CONCLUSIONSCONCLUSIONS

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For the requirement of completion of 4th semester of B.B.A. We had undergo two

months summer training at DHANHAR EXIM PVT. LTD. Surat. With the objective

to gain Practical knowledge and experience in the company and to study the

activities of different functional area. It was good experience at DHANHAR EXIM

PVT. LTD. studying about the different department. On the other hand going for a

market survey was an invaluable addition to my Knowledge. To conclude in a

single student, I personally feel that 2 month Training at DHANHAR EXIM PVT.

LTD. has added many features to my knowledge wing which will definitely help

me to achieving a success during my future and career flight.

During my Training I found that this company is in a good and Strong Position.

This company has a very good management and staff of this company is a qualify

and high skilled. There is a good Co-ordination and confidence in the company.

The company’s chairman I aim to provide Better Product to customer. I am sure

that company achieve it’s goal in very short time.

BIBLIOGRAPHYBIBLIOGRAPHY

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Annual report of Dhanhar Exim Pvt. Ltd. Company

Reference Book: -

Marketing Management: By Philip Kotler

Production Management: By K.Ashwathapa

Finance Management By Bhagvati & Pillai

Human resource management By K. Ashwathapa

Website: -

http://www.tradeindia.com

http://surat.indiabizclub.com.

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