meet nayakpura ceramic industries report
TRANSCRIPT
“CERAMIC INDUSTRIES”
A Project Report on Light City Pvt. Ltd.
Is submitted by:
Meet Nayakpura CLASS
B.B.A (SEM-2)
Guided by
Prof. J.P.Sir
SAURASTRA UNIVERSITY (2016-2017)
P.G. PATEL COLLEGE –MORBI-1
2/28/2016
COLLEGE CERTIFICATE
This is to certify that Mr. MEET NAYAKPURA J. of
B.B.A. SEM.- 2 has satisfactorily and successfully completed this
project report under our guidance and supervision as per university
rules and B.B.A. curriculum. During the work he has been found
sincere.
DATE:-
PLACE:- MORBI SIGNATURE OF GUIDE
DECLARATION
I, the undersigned Mr. Meet Nayakpura J. student of
S.Y.B.B.A. hereby declare that the project work presented in
this report is my own work and has been carried out under the
supervision of Mr. J.P. sir of P.G. Patel College Morbi.
This work has not been submitted previously to any other
university for examination or any other purpose.
Date: / /2017
Place: Morbi
-----------------------
(Meet Nayakpura J.)
PREFACE
Today, in almost all fields, management has become an
integral part. We need to manage over daily routine. BBA,
the stream of management teaches us and helps us to apply it
practically.
In this project work, I have carried all the areas of
management like production, personnel, marketing and
finance. One needs to keep equally balanced all the
departments to run the entire company smoothly. I have thus
tried to prepare this project taking into consideration all the
areas and aspects of the company.
ACKNOWLEDGEMENT
First I would like to thank P.G.Patel College for
providing me an opportunity to flourish my knowledge apart
from theory. I would also thank Professor Mr.ram sir, who has
constantly guided me for the project.
I am thankful to “Light city Ceramic” for granting me
permission to prepare a report on their firm and also for their
excellent guidance with complete interest. I am also thankful
to the owners, whole staff of this industry for their valued co -
operation and helped me to complete this project on the
industrial visit.
Date:
Place: Morbi
-----------------------
(Meet Nayakpura)
INDEX
Sr.
No.
PARTICULARS
PAGE
NO.
1. GENERAL INFORMANTION 06
2. PRODUCTION DEPARTMENT 16
3. PERSONNEL DEPARTMENT 28
4. MARKETING DEPARTMENT 48
5. FINANCE DEPARTMENT 63
6. SWOT ANALYSIS 80
7. FUTURE PLANE 83
8. SUGGESTION 85
9. CONCLUSION 87
10. BIBLIOGRAPHY 89
1.
GENERAL INFORMANTION
Sr.
No.
PARTICULARS
PAGE
NO.
1. BIO-DATA OF COMPANY 08
2. HISTORY & DEVELOPMENT OF
ORG’Z
09
3. ORGANISATION CHART 11
4. SIZE OF THE FIRM 12
5. FORM OF ORGANIZATION 13
6. LOCATION AND SIZE
PREFERENCE
14
7. TIME KEEPING SYSTEM 15
BIO DATA OF COMPANY
Name of the Firm Light City Ceramic Pvt. Ltd.
Year of
Establishment
2011
Form of Organization Private Limited
Size of Organization Large Scale
Location of Office &
Factory
Survey-404
p/2 near rangpar,
Jetpar Road,
Morbi-363641
Phone Number Office 99251 85400
Phone Number
Factory
99250 53906
Fax Number ----------------
E-Mail [email protected]
Web Site www.lightcityceramic.com
Registered Certificate
No.
U26914GJ2002 PPC 43194
Sales Tax No. 0922008001
CST No. 24592007522
Excise Registration
No.
AACCL0647HEM001
Product WALL Tiles
No. of Employees 107
Bankers HDFC Main branch,morbi
Auditors CENTRAL BANK Main
Branch, Morbi
Name of Promoters Shri Rajeshbhai C
Chadamiya
Shri Sanjay G Loyari
Shri piyush P Merja
Board of Directors Mr. R C Patel
Mr. S G Patel
Mr. P P Patel
Investment 11 cores Approx
Area Covered 12 Acres
Market Domestic and International
HISTORY & DEVELOPMENT OF ORGANISATION
The Light City group is a private limited company which
produces different kinds of things. Each and every unit has
got other industries of its town. It contained when the firm
was incorporated, who were the raise, what way its purpose,
what are the products manufactured by them, etc.
This group all promoters are mostly from the Village
Sara, which comes under the District Morbi. They
incorporated to cultivation and they have good business of
cotton and other products in Village Sara. It is established in
1984. They started a unit of manufacturing of roofing tiles
under name and style M/s. Sunshine Tiles and potteries at
Morbi. They have secured mill from HDFC Main Branch,
Morbi.
Looking to the demand of ceramic floor tiles experience
in this line is most important and the group has more than 60
dealers network, which is necessary to business. So, they have
also started another industry, under the name and style of M/s.
Light City Ceramics Pvt. Ltd.
It is good for them that they don’t have to find another young
team because it is already well equipped with the family
members.
ORGANISATION CHART
Chairman
Production
Department
Production
Manager
Laboratory
Testing
Supervision
Manager
Workers
Marketing
Department
Marketing
Manager
Marketing
Officer
Dispatch
Executive
Clerk
State Marketing
Manager
Marketing
Office
Sales
Finance
Department
Finance
Administrative
Chief
Accountant
Accountant
Peon
SIZE OF THE FIRM
According to the definition given by Government of India,
the size of the industry can be divided into three main types.
Small Scale Organization
Medium Scale Organization
Large Scale Organization
If company’s investment in plant and machinery is more
than 11 cores, it is called large scale organization.
The investment of “Light City Pvt. Ltd.” in fixed assets is
of Rs. 180,100,000. Therefore, it is coming under the category
of large scale organization. It also uses manpower, electronic
machinery and having more than 107 workers.
FORM OF ORGANISATION
According to the form of organization, the organization can
be divided as follows:
Private sector unit
Public sector unit
Joint sector unit
In this firm, it is a private limited firm.
LOCATION AND
SITE PREFERENCE
The site of this unit is located at 8/A – National Highway,
at Jetpar, which is only 15 Km/h. away from Morbi City. It is
in ceramic zone with numbers of other ceramic units. It is a
main and most important part of industry has chosen very
simple and suitable location. It plays a vital role for location.
Land
In Jetpar at Morbi, land and labor are found very cheap,
so Light City Wall tiles started at this place.
Labor
In big city labor cost is very high, but in Jetpar at Morbi
provide cheap and educated skilled labor because of the
ceramic zone is situated.
Transport
In Jetpar at Morbi is situated in ceramic zone, so
transportation facilities are also available.
TIME KEEPING SYSTEM
Time keeping system is very important as all the workers
should arrive at reporting time and start their work
immediately. If they are irregular than there would be less
outcome and expected target will not be achieved. Therefore,
the workers are given cards in which their arrival and
departure time is written regularly and therefore punctuality is
maintained.
Industry
This industry is running for continuous process i.e. 24
hours. It is working in 3 shifts. They are:
08:00 AM to 04:00 PM
04:00 PM to 12:00 Midnight
12:00 Midnight to 08:00 AM
Office
Office hours for industry are as under.
08:00 AM to 12:00 Noon
02:00 PM to 06:00 PM
2.
PRODUCTION DEPARTMENT
Sr.
No.
PARTICULARS
PAGE
NO.
1. INTRODUCTION 18
2. RAW MATERIAL AVAILABLE 19
3. RAW MATERIAL USED 20
4. INSPECTION OF RAW MATERIAL 21
5. TYPES OF MACHINES 22
6. PROCESS OF PRODUCTION 24
7. ABOUT PRODUCTS 26
8. QUALITY MANAGEMENT 27
INTRODUCTION
The production of a firm is concerned with the creation of
a product or services required to satisfy customer needs. In
any business, suppliers are needed for product or service, it is
quite obvious that activities of production system must be
related to the customer demand or reflected in the continuous
flow of order.
It is the most important department amongst the other
departments of an organization. Personnel department, finance
department, marketing department are very much depended on
production department.
RAW MATERIAL AVAILABILITY
Raw materials are the basic requirement for any industry.
Raw materials are converted into finished goods after various
processes on it.
Raw materials are available with help of roadways if
purchased from the country. If the materials are purchased
from other countries than it is avai lable with help of railways.
RAW MATERIAL USED
List of raw materials used for production of Wall tiles
Raw Material Place where it is
obtained
Pots feldspar Rajasthan
Soda feldspar Rajasthan
Quartz Rajasthan
Ball Clay Rajasthan
Ashapura Clay Kutch
Kadappa Clay Andhra Pradesh
China Clay Gujarat
Ukraine Clay Import from Europe
STPP Import from China
Body Stain Import from Italy
Soluble Salts Import from China
INSPECTION
OF RAW MATERIAL
Raw materials are inspected and checked before they are
sent to production department. It is maintained in Light City
as per guidelines of ISO-9001.
Flow chart for inspection of raw material can be showed as
follows.
Sampling from truck
MC% content
Grinding
Drying
Powder preparation
MC% addition
Pressing
Drying
Firing
Loss on ignition
Fired color
Water absorption
TYPES OF MACHINES
90% of machineries used in Light City Wall Tiles are imported
from ITALY.
List of Machineries
Weighing hopper
Conveyor
Wader
Ball mill
Stirrer
Bungler
Spray drier
Slip pump
Silos
Vibrator with magnet
Elevator
Hydraulic press (h600 mt)
Chilling plant
Loading machine
Horizontal dryer cooler box
Glaze line
Unloading machine
Screen printing machine
Compensator
Head polishing line
Fast single layer roller kiln
Chamfering line
Souring line
Plastic strapping machine
Fork lift
Air compressor
Vertical drier
Generators
PROCESS OF PRODUCTION
Production process is very important process as the
product manufactured in the company should satisfy the need
of the customer. The quality is also to be maintained and the
given target should be achieved in the given time period. The
following are the main production stages.
Processing of raw material
The first and foremost step to manufacture Wall tiles is
batching i.e. feeding the box with different types of clay
according to the percentage decided. Batching includes
following types of clay.
Ukraine Clay 16%
Ball Clay 5%
China Clay 20%
Soda Feldspar 19%
Potash Feldspar 35%
Quartz 5%
Formation of tile body and drying
The powder is taken from the silos and after sieving on a
vibrator fitted with a magnet, it is fed into hoppers of the
hydraulic press where the powder is pressed in the shape of a
tile of specific size as per the cavity of the die. Green tiles
coming out of the press are sent to the horizontal roller dryer
where they are heated to a specified temperature to remove the
moisture.
Preparation of designs and screen printing of tiles
In the glaze line and printing section, various types of
designs are prepared and printed on the dried tiles by applying
colors on the screen printing machine.
Firing
The tiles thereafter are fed into the fast single layer roller
kiln in which the tiles are fired. The kiln has different
temperatures ranging from 5000C to 15000C in different zones.
Polishing
The baked tiles are subjected to polishing by using 32
head polishing line. The tiles are also side chamfered. Multi
finish tiles do not need polishing operation.
Sorting and packing
The polished tiles are subjected to quality checking and
sorting, where an operation marks out tiles with defects and
different grades quality. Different grades of finished tiles are
then packed into different types of packing box which are
marked accordingly.
ABOUT PRODUCTS
Light City Wall Tiles are manufacturing vitrified tiles
having various categories and sizes. They manufacture tiles of
different plain colors’ like:
Terry cotton
Mushroom
Ruby pink
Jaisalmer
Dove gray
Ivory
Jet black
White
Aqua marina, etc.
In marble series, they are having following range.
Vogue
Venice
Valerie
Vixen
Volcano
QUALITY MANAGEMENT
Quality control means checking the quality, size, shape,
capacity and usefulness of some of the samples selected from
lot of the finished product. If any variations are there than
they are to be corrected or that useless product is send to scrap
yard. A well defined quality management system satisfying
ISO 9001-2001 quality standard and continual improved.
3.
PERSONNEL DEPARTMENT
Sr.
No.
PARTICULARS
PAGE
NO.
1. INTRODUCTION 31
2. ORGANIZATION CHART 32
3. RECRUITMENT &
SELECTION
33
4. HUMAN RESOURCE
PLANNING
35
5. PLACEMENT & INDUCTION 36
6. TRANNING OF EMPLOYEE 37
7. PERFORMANCE APPRIASAL
SYSTEM
38
8. WAGES & SALARY 39
ADMINISTRATIVE
9. TRADE UNION 40
10. COLLECTIVE BARGAINING 41
11 RECORD KEEPING SYSTEM 42
12. EMPLOYEE BENEFITS 43
13. PROVIDENT FUND SCHEME 44
14. PROMOTION & TRANSFER 45
15. GRAIVANCE HANDLING
SYSTEM
46
16. INDUSTRIAL RELATION 47
INTRODUCTION
Personnel management has a vital importance in modern
industrial organization. Personnel department is the part of
management, which is primarily concerned with establishment
and maintenance of personnel relations.
In this company, there is a separate personnel department,
where all the decision regarding the personnel’s is taken by
personnel manager. He has the final authority.
ORGANISATION CHART
In Light City a Wall Tiles Pvt. Ltd., separate department
for personnel for the achievement of goals and the personnel
manager has authority and higher status in the organi zation in
his own department.
Board of Director
Managing Director
Executive Director
Personnel Director
RECRUITMENT
AND SELECTION
Recruitment
Every firm or company needs persons to perform different
works. In this shifting process only manpower have been
determined, recruitment is next logical step. It is a linking
activity bringing together those with job and those seeking job.
According to one author, “Recruitment is the process of
finding and attracting capable applicants for employment. The
process begins when new results are sought and ends when
their applications are submitted. The result is a pool of
applicants from which new employees are selected.”
Selection
Selection is a process of carefully choosing the candidates
who offer themselves for appointment. In selection many
processes applies on raw material but unit wants f ew persons.
This is one of the most important responsibilities. In
selection, the person who is having knowledge as well as
experience is selected.
According to one author, “It is the process of
differentiating between applicants in order to identify th ose
with a greater livelihood of success in a job.”
Here in case of Light City Ceramic , the co-selection process
includes basic four main steps.
Preliminary searching interview
Checking of reference
Comprehensive interview
Final employment decision.
HUMAN
RESOURCE PLANNING
Human resource planning is understood as the p rocess of
forecasting an organization’s future demand for and supply of
the right type of people in the right number. It is only after
this that the human resource department can ini tiate a
recruitment and selection process. Human resource planning is
a sub-system in the total organizational planning.
Organizational planning includes management activities that
set the company’s objectives for the future and determine the
appropriate means for achieving those objectives. Human
resource planning facilitates the capitali zation of the
company’s objectives by providing the right type and right
number of personnel. Human resource planning is like
material planning that estimate the type and annuity of the
materials and supplies needed to facilitate the manufac turing
activities of the organization. Human resource planning is
variously called manpower planning or employment planning.
PLACEMENT & INDUCTION
An applicant who has cleared all the hurdles in the
selection procedure is offered a job. The main problem after
final selection is to place him on some suitable job. The out of
offering the job to a finally selecting candidate is called
placement. The selection procedure comes with placement of
workers on the job.
Induction is a technique by which a new employee is
rehabituated into the changed surrounding and introduced to
the practices, policies and purpose of the organization. In
other words, induction means introducing or orienting a new
employee to the organization and to follow up for his
adjustment in the organization.
In this industry, when a new employee is selected, he is
kept under the supervision of his superior where he is trained.
The new employee is provided with the operational knowledge
that is specific to the position and location.
TRAINING OF EMPLOYEE
Training refers to the imparting of specific skills abilities
and knowledge to an employee.
It is any attempt to improve current or future employee’s
performance by increasing an employee’s ability to perform
through learning, usually by changing the employee’s attitude
or increasing his/her skills and knowledge. The need for
training is determined by the employee’s performance
deficiency.
At present training of workers is necessary because many
jobs have assumed highly technological character and under
automation. We require highly skilled operatives. In Light
City, the workers who need training are kept under their
supervisors who give them training while training for staff
members or managerial level is given on the job.
PERFORMANCE
APPRAISAL SYSTEM
Performance appraisal is the assessment of an individual’s
performance in a systematic way. The performance being
measured against such factors as job knowledge, quality and
quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility, health and
like assessment should not be confined to past performance
alone. Potentials of the employee for future performance must
also be assessed.
In Light City Ceramic , the supervisor sees the employee’s
ability to do work properly and efficiently, whether he
understand his responsibility or not, how is his behavior
towards his colleagues, etc.
WAGE & SALARY
ADMINISTRATION
Wage and Salary Administration refers to the
establishment and implementation of sound policies and
practices of employee compensation.
Wages are the economic compensation paid to the workers
for services derived by them. It can be divided into two types
i.e. piece wage and time wage. In Light City, there is time
wage system and it is paid on monthly basis. There are wages
calculated as per monthly wage rate according to the minimum
wages act of government. Salaries are paid on monthly basis
and its amount is by the company according to working
efficiency of the employee.
TRADE UNION
Trade union means the union of the workers who are
permanent or temporary in the unit, where they are working.
In Light City Ceramic, there is no special trade union.
The purpose to make these unions is maintaining the interest
of workers and management. These unions do not disturb
without any special problem and interfere in routine work.
They always try to maintain relations between employees and
management staff.
COLLECTIVE BARGAINING
Collective bargaining means the process in which
conditions of employment are determined by agree ment
between representative of the union on one hand and those of
the employer on the other hand. It is called “collective”
because both the employer and employee act as a group rather
than individuals. It is described as “bargaining” because the
method of reaching an agreement involves proposals and
counter proposals, offers and counter offers. In the highly
industrialized democratic societies of the west, more than 90%
of the disputes are between labor and management which are
settled through collective bargaining process.
In Light City Ceramic, management is having agreement
with the employees regarding wage, working conditions,
promotion, transfer and other facilities like medical facility,
etc.
RECORD KEEPING SYSTEM
It is very much necessary for an organization to keep the
reward of its workers and many other details related to it.
The reward contains personnel as well as on the job
efficiency information of an employers or workers. In Light
City Ceramic, the supervisor sees the employee ability to do
work properly and effectively whether he understands his
responsibility or not, how is his behavior towards his
colleagues, etc.
EMPLOYEE BENEFITS
Now a day, most of the firms provide the provident fund
scheme or other facilities to their workers. It is important as it
is one kind of security of a worker.
Light City Ceramic provides various monitory and non
monitory benefits and services like:
Bonus 10% extra bonus is paid to workers.
Allowances Various types of allowances are given to
workers. Light City Ceramic provides two wheeler facilities
(Honda & Splendor) and 100% expense of petrol.
Statutory Welfare Measures Under this, the company
provides first aid facility, cold water facility, company
distributes sweets and other eatables on the festivals like
Dashera, Diwali, etc.
Loan Facility Loan is provided to employees when in
need. They are not charging any type of interest on the
loan. It is repaid in installments.
PROVIDENT FUND SCHEME
Provident fund scheme is facility provided to every
employee may be at high post or low post. In this scheme, a
certain percent of employee’s salary is oriented by the firm
and on that 12% of interest is paid and employee adds very
certain fixed percent to it, the interest is paid on both
employee and employers amount.
This industry has adopted this scheme. They are putting
12% salary as Provident Fund, which is refundable after the
retirement of employee or when he is going abroad for
permanent settlement or when he is going for another job.
PROMOTION & TRANSFER
Promotion
The promotion means to do upliftment within the
organization. At this stage employee’s wage and salary status,
prestige moves towards the top level. Their thinking is also
increasing up in his duties and responsib ilities.
Transfer
The transfer is a process of planning the employees in the
position where they are likely to be more effective, or where
they are likely to get more job satisfaction or it is movement
of an employee from one job to another without involving any
substantial changes in his duties, responsibility, status, etc.
Therefore, transfer is exchange in job where new job is
substantially equal to old in terms of pay, status and
responsibilities.
This company is only 2 years old, so there is no such
policy and programs formulated for promotion as well as
transfer.
GRIEVANCE
HANDLING SYSTEM
Grievance is any discount or dissatisfaction, whether
expressed or not, whether valid or not, arising out of anything
connected with the company, which an employee thinks or
believes or even feels to be unfair, unjust or inequitable.
In case of Light City Ceramic, most of employees are
satisfied and management always tries to satisfy needs of
employees as quickly as possible. If any problem arises than
related manager will try to solve it.
INDUSTRIAL RELATION
Industrial relation refers to the relation of management
with the employees. This is one important factor, which
affects the success of any industry. The relation between
management and workers should be namely so as to run the
industry smoothly.
Internal Relation
Light City Ceramic Industry is concerned with the
management and workers share breathing relations. They are
united and consider their unit as a second family.
External Relation
External relation means the relation of unit members of
external society like other industries, government, customers,
etc. Light City Ceramic has good external relations.
4.
MARKETING DEPARTMENT
Sr.
No.
PARTICULARS
PAGE
NO.
1. INTRODUCTION 50
2. ORGANIZATION CHART 51
3. MARKET SIZE 52
4. MARKET SAGMENTATION 53
5. PRICING 54
6. ADVERTISEMENT 55
7. CHHANEL OF
DISTRIBUTION
56
8. MARKET RESEARCH 57
9. CREDIT FACILITY 58
10. SALES PROMOTION 59
11 EXPORT POTENTIAL 60
12. COMPETITIORS 61
13. CONSUMER PROBLEM
HANDLING
62
INTRODUCTION
Market is the place where buying and selling is carried
out by buyers and sellers i.e. trading activity are carried out.
Marketing is a social and management process that
involves identifying unsatisfied needs or wants of the
consumers, producing goods or services to satisfy those needs
or wants, determining appropriate price, promotion and
distributing and maintaining relation with the market.
In today’s modern area each and every firm gives priority
to have a different marketing department. Marketing involves
the activities such as advertising, publishing, market research,
distribution aspect, sales promotion, etc.
ORGANISATION CHART
Board of Director
Chairman
Managing Director
Marketing Manager
Assistant Manager
Regional Manager
District Manager
Area Manager
Salesman
MARKET SIZE
As per VARMORA INDUSTRIAL DIGEST, JUNE 1996,
size of Wall tiles is as under.
The Wall tiles market size is established at Rs. 100 Cores,
The demand for this tile is growing at pace of 30%. The
production capacity is expected to bulge by nearly 5.35 Laces
tones
MARKET SEGMENTATION
Market segmentation is based upon the market oriented
strategies and philosophy segmentation gives special emphasis
on the demand size of the market.
“Market segmentation is a method of achieving maximum
market response from limited marketing resources” by the
markets for to identify the target customer. Generally, there
are two types of market segmentation.
People oriented approach
Consumer demand or product oriented approach.
In case of Light City, there is no need for market
segmentation. Their market is fixed, so they think that there is
no need of market segmentation. They produce the item
according to orders they receive.
PRICING
Price is the amount charged for the product or service
including any warranties or guarantees, delivery, discounts,
services or other items that are paid of the conditions of sale
and are not paid for separately. To the buyer price is a
package or expectations and satisfactions.
Pricing is an important decision that every company has
to take high price or low price may create a bad reputation of
company. The price of a product is a crucial decision.
In Light City Ceramic, pricing policy is cost + profit.
Whatever expenses have incurred during the manufacturing of
product is considered + profit is too included. Competitors
price are also considered, their prices are higher than their
competitors.
ADVERTISEMENT
Now a day, marketing plays an important role for the
entire organization. Marketing is very much necessary for all
the products as without marketing the consumer will have lack
of information about the products. Thus, to make the
consumers aware of the product, marketing is done.
Light City advertisement their products on very large
scale. They advertise their products on television and also do
wall paintings all over India. They also distribute pamphlets
for the same.
CHANNEL
OF DISTRIBUTION
The word “Channel” has its origin to the French word
used for “Canal”. Thus, channel is route through which goods
passes from one end to another. In other words, the route
through which goods move from the place of production to the
place of consumption is called “Channel Distribution”.
Channel of distribution is the pathway or route through which
goods are transferred from the hands of producer to the
consumers or from the seller to the buyer.
According to one author, “A channel of distribution for a
product is the route taken by the title to the goods as they
move from the producer to ultimate consumer.”
In this industry, the distribution channel is
There are about 96 dealers in all states of country.
Manufacturing
Of Company
Dealers
Consumers
MARKET RESEARCH
Market research is the systematic and intelligent
investigation or study of the “who, what, where, when, why
and how of actual and potential buyers.”
It is the systematic gathering rewarding and analyzing of
data about problems connected with the market place. It is the
scientific and controlled process of gathering of non routine
marketing information helping management to solve marketing
problems. It acts as the investigative aims of marketing
manager and management tool in planning control cycle.
In this industry, first of all they study about custo mers
requirements. They try to introduce good facilities every time,
they have a marketing research team which goes all over
country.
CREDIT FACILITY
To run the business smoothly and regular cash flow,
company gives some credit facility to the buyers.
Light City also does the same thing. They sell those
products in the market on cash and credit basis. They give 3
cores credit facility to the buyers.
SALES PROMOTION
Sales promotion consists of short term incentives to
encourage purchase or sales of a product or service. It is
demand stimulating devices designed to supplement
advertising and facilitate personal selling. It is a direct
inducement which offers an extra value and incentive for the
product to and sales force distributors to ultimate customers.
In this industry, they do not adopt any technique because
of potential marketing and potential customers.
EXPORT POTENTIAL
With major market operating up and gap of technological
advancement in the manufacturing being narrowed the market
for products will grow. However, in mainly depend upon the
conformity to develop countries strict standards shall
determine growth. The increased production capacities shall
see the companies moving towards developed export market.
Indian ceramic industry in spite of advantages according out of
low labor costs is wrought with the problem of quality and
design companies are fortifying their R&D designs.
COMPETITORS
It is rightly said that, “Without competitors market does not
survive.”
Light City is also starving in to sale its products in the
competitive market by continuous development of a product
finding new areas of consumption.
Their competitors are
Kajaria
Bell
H R Johnson, etc.
CONSUMER
PROBLEM HANDLING
“Customer is the king” of the market, is a very attractive
slogan. Consumers generally never face any problem for Light
City but in spite of this, if any problem arises than following
hierarchies of problem handling is followed.
Problem of Government
Agent
Marketing People
Experts of Company
Discussion
Solution
5.
FINANCIAL DEPARTMENT
Sr.
No.
PARTICULARS
PAGE
NO.
1. INTRODUCTION 65
2. ORGANIZATION CHART 66
3. CAPITAL STRUCTURE 67
4. ACCOUNTING POLICY 68
5. WORKING CAPITAL
REQUIREMENT
69
6. SOURCES OF FUNDS 70
7. FINANCIAL PLANNING 71
8. PROJECT COST 72
9. HIGHLIGHTS OF PROFITABILITY 73
10 RATIO ANALYSIS
11. LEVERAGE ANALYSIS
INTRODUCTION
Finance plays a very important role in any type of the
firm. From the initial stage awards money is needed for the
information registration of the firms, listing of the firm.
Finance is needed for making necessary documents.”
FINANCE IS THE LUBRICANT WHICH RUNS THE ENTIRE
ORGANISATION “
Finance consists of procuring funds, managing and
utilizing them efficiently in order to maximize the profit,
which is ultimate goal of any organization.
In Light City Tiles, the capital is procured by issuing
equity shares. The secured loan of this industry is 94000000
and the unsecured loan of 2012-13 is deposits from relatives of
directors i.e. of Rs. 20000000.
ORGANISATION CHART
Finance Cum Account
Department
Finance Manager
And Accountant
Assistant Account
Computer Section
CAPITAL STRUCTURE
Procurement of capital is the most important process of an
organization. Capital can be of two types i.e. ownership
capital and borrowed capital. Ownership capital can be
procured by issuing equity shares and sometimes preference
shares and borrowed capital can be procured by issuing
debentures, bank loan, etc.
The capital structure of Light City is very simple as it has
issued desirable equity debt ration of.
ACCOUNTING POLICY
Accounting policy of Light City Ceramic as under:
The company maintains its accounts on historical cost
basis. The current assets, loans, and advances, liabilities are
approximately of value stated if realized in ordinary course of
business.
The company follows the accrual method of accounting
and all claims, receivables and liabilities are provided on that
basis.
Depreciation is provided during year at prevailing rates
prescribed by companies act 1956.
WORKING
CAPITAL REQUIREMENT
Working capital requirement means it is necessary to
maintain stocks of raw materials and to finance the funds
blocked in goods in process, finished goods, overheads, etc.
Total working capital requirement for first year has been
estimated at Rs. 258 Laces. The working capital is proposed
to be through Bank finance to the tune Rs. 250 Laces and
promotions funds at Rs. 150 Laces.
SOURCES OF FUNDS
A manufacturing company requires capital for these
purposes.
To achieve or create fixed assets
Working capital for financing day to day manufacturing and
marketing operations.
Capital for expansion, modernization, etc.
A company has two main sources of capital
Internal sources
External sources
Light City Ceramic Pvt. Ltd. is having internal source of
finance. The company has its own shares capital and have
taken loan from the bank.
FINANCIAL PLANNING
Financial management also requires managing for
effective management of finance as it is the part of
management. Financial planning means decisions to be taken
to achieve basic objectives of the firm.
The basic objective of finance planning is to raise the
necessary funds as and when needed. At minimum cost cash
should be controlled properly. There are three types of
financial planning.
Short term planning
Medium term planning
Long term planning
In Light City Ceramic Pvt. Ltd. there is long term financial
planning.
PROJECT COST
Sr. Particulars Amount
(thousand)
1 Land 200.00
2 Factory Building 110.00
3 Imported Machinery New 559.00
4 Indigenous Machineries 238.00
5 Electrical Installations 54.00
6 Tools 40.00
7 Installations 50.00
8 Bank Guarantee for EPG 35.00
9 GEB Deposit 40.00
10 Computers 30.00
11 Furniture 25.00
12 Other Miscellaneous Assets 40.00
13 Preliminary and pre-operative
expenses
20.00
14 Provision for contingencies 20.00
15 Total capital cost of project 1401.00
16 Margin money for working capital 158.00
Total Project Cost 3020.00
6.
SWOT ANALYSIS
SWOT ANALYSIS
SWOT Analysis means the analysis of
S Strength
W Weakness
O Opportunity
T Threat
Strength
Light City Ceramic Pvt. Ltd. is giving employment around
107 employees.
Strong market presence
Develop rural area to reach at the global position.
Weakness
Irregularity in time cost.
Light City Ceramic industry entered late in the market
Opportunity
Rapidly and continuous growth in the market, so company
will think about expansion.
Threat
Highly competitive market against imported Wall tiles
particularly the Chinese manufacturer with their aggressive
low cost manufacturing advantage.
7.
FUTURE PLAN
FUTURE PLAN
Future plan of Light City Ceramic is to become leading
companies in the Wall tiles all over the world.
They will be installing new latest machines for increasing
production and various designs and ranges to meet the
upcoming market needs. Also, they wanted to try serving
backward class by giving those services.
8.
SUGGESTION
SUGGESTION
Actually, we are just students. It is not our capacity to
give suggestions. Light City Ceramic Pvt. Ltd. is having
smooth relation, nice organization and sincere workers.
There is no requirement to give any kind of suggestion, but
as a part of study it is necessary to give suggestions, which are
as under:
Having a wide market itself in India, only little is exported.
Instead of if they increase their export and step into wide
international market to compete their quality, through this
profit increases.
9.
CONCLUSION
CONCLUSION
From this unit, I learn as many things, I am very much
happy to visit the company. Deep study of Light City Ceramic
Pvt. Ltd, I came to give my conclusion that its future is very
bright and they will progress well.
The co-operation of the employees is good. The
management is also effective and efficient. All the
departments are also handled by authorized person who have
great experience and it is one of the response of success of the
firm.
So, I wish the company makes more and more profit,
fulfill the future plans and get good and global market.
10.
BIBLIOGRAPHY
BIBLIOGRAPHY
Financial Management Chadmiya & Loriya
Principles of Marketing Rajesh Patel & Ketan Aghera
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