chitaliya dipak - nirma

1 NIRMA LIMITED

BETTER PRODUCT, BETTER VALUE, BATTER LIVING.

2 NIRMA LIMITED

A PROJECT SUBMMITED TO

THE BHAVNAGER UNIVERSITY OF BAHVNAGER

IN PARTIAL FULFILLMENT FOR THE DEGREE

OF

BACHERAL OF BUSINESS ADMINISTRATION

PREPARED BY GUIDED BY

CHITALIYA DIPAK N. VANANI LABHUBHAI

ROLL NO. = 87

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

SWAMI SAHAJANAND COLLEGE OF COMMERCE AND

MAMANAGEMENT

BATCH :- 2007-10

SIGNATURE OF AUTHORITY


3 NIRMA LIMITED

PREFACE

I am student of S.Y.B.B.A. studding in swami Sahajanand College

of commerce and management at Bhavnagar. This cource carries 3 year period. This

cource interrelated with business administration to the Bhavnagar university. We have

to visit an industry during a year and through the visit. We have prepared the industrial

report.

During the visit I have to know the interior structure of the

company like its organization, production, prices, marketing structure, financial

management, personal department, commercial management etc.

In this year-2009, I have visited NIRMA a Kalatalav (Bhavnagar).

Through the visit I have obtain maximum information about it. I am glad to have a

practical training at NIRMA KALATALAV CHEMICAL COMPLEX.


4 NIRMA LIMITED

ACKNOWLEDGEMENT

I feel great pleasure in submitting this report as a part of the

practical studies. This report is prepared on the training taken at NIRMA LTD. I was

constantly guided by the office as well as working staff of company

I pay my sincere gratitude to shree K.R. Adhhia (G.M.

process), Mr. R.M. Jadeja (Managae), Mr. Bhavin Acharya and Mr. Chirag Oza for

giving us an opportunity to gain practical knowledge from the working of the industry.

I am highly thankful to all the senior executive managers

and other staff members for being cordial and co-operatives in providing suitable

information and knowledge in preparing this report.

I once again thank to all the supporting people.

Your faithfully

( Chitaliya Deepak N.)


5 NIRMA LIMITED

BRIEF CONTENTS

NO. NAME PAGENO.

1 GENERAL INFORMATION 6

2 PRODUTION DEPARTMENT 21

3 HUMAN RESOURCE MANAGEMENT 46

4 MARKETING MANAGEMENT 65

5 FINANCIAL MANAGEMENT 78

1


6 NIRMA LIMITED


7 NIRMA LIMITED

GENERAL INFORMATION

INDEX

NO. NAME PAGE

NO.

1 INTRODUCTION 9

2 HISTORY AND DEVELOPMENT 10

3 BOARD OF DIRECTOR 11

4 ORGANISATION STRUCTURE 12

5 CHARACTERISTCS 13

6 ACHIEVEMENT OF KALATALAV

COMLEX

14

7 SIZE AND FORM OF THE UNIT 15

8 TIME KEEPING SYSTEMS 16

9 QUALITY POLICY 17

10 CONTRIBUTION OF THE UNIT TO THE

INDUSTRY

18

11 PRODUCTION FACILITIES AT

VARIOUS UNIT

19

12 SAFETY AND HEALTHY POLICY 20


8 NIRMA LIMITED

FOCUS ON COMPANY

COST EFFECTIVENESS

QUALITY CONSCIOUSNESS

INEGRATION OF LATEST

TECHNOLOGY

UNIQUE MARKETING STRETEIES

TEAM WORK


9 NIRMA LIMITED

INTRODUCTION

Nirma means “BETTER PRODUCT, BETTER VALUE,

BETTER LIVING”. Nirma is a researce organization, who manufacturing chemicals.

Nirma has been growing with lips and bounds in last few year with objective to serve

the country with the own resource.

India is a one the largest consumer economics, with

burgeoning middle class. In 1969, Dr. Karshanbhai K. Patel, a chemist at Gujarat

government department of mining and geology. Manufactured phosphate free

synthetic detergent powder and started selling it locally.

At that time Dr. Karshanbhai Patel was only 25 year

old.

Nirma Ltd. Company is situated a bhavnagar,

Kalatalav. This plant is spread in 2300 he. Nirma Chemical Complex Kalatalav in

Bhavnagar district came in production from 11 March 2000. this plant is situated at

North-east of village.

Nirma Company is one of the biggest companies in

the India. It enjoyed positioning as one of India’s “TOP TEN” brand in the country.


10 NIRMA LIMITED

HISTORY AND DEVELOPMENT

Nothing is impossible, we can do anything, If we want to

do it. With handwork and ambitions we can touch the stars of the sky. We have such

a good example of the successful entrepreneur, and that is Mr. Karshanbhai Patel.

He is the good example of Indian entrepreneurship.

In 1947, Karshanbhai Patel, a chemist at Gujarat

government department of mining and geology manufactured phosphate free

synthetic detergent powder, and started selling it locally. The new yellow was a huge

demand for Nirma in kishanpur, Mr. Patel’s house.

He had named the powder as Nirma after his daughter Nirupama. He was able to

sell about 15-200pockets a day on his way to the office on bicycle, some 15k.m.,

away. This began the great journey. By 1985, Nirma washing powder had become

one the most popular detergent brands in many part of the country.

Nirma is introduced toilet in the year 1990, and today is second largest

manufacturing in the country. Mr. Karshanbhai has proved the slogan “RAG TO

RICHES”. Nirma operates with mission to provide “Better product, Better value,

Better living.”

After establishing itself in industry, Nirma explanded to market abroad in 1999. its

first foray was in to Bangladesh through joint venture commerce overseas limited?

The company also planned to enter other legions like the Middle East, China, Russia

and other Asian countries.

Nirma detergent had been launched at and customizing rate of Rs.3 per kg. This

was one of the reasons for its wide acceptability and grand successes. Today it has,

turned into a large scale investment group with total investment of Rs. 25000 cores,

from a put, Ltd Company; it has turned into a public limited company.

In a short span, he captured the domestic market, with a quality product. He swiftly

cuffed low to medium consumer segment for detergent category.


11 NIRMA LIMITED

BOARD OF DIRECTORS

Dr. Karshanbhai K. Patel

Shri Shrenikbhai K. Lalbhai

Shree Manubhai R srooff

Shri Rajendra D Shah

Shri Atulyuprashad Sarwani

Shri Rakesh K Patel (vice chairman)

Shri Hiren K Patel (managing director)

Shri Chinubhai R Shah

Shri Kaushikbhai N Patel

Shri Kalpesh A Patel (executive director)

Brances of Nirma

Location place

Mandali Mehsana

Moraiya ahmedabad

Alindra Baroda

Kalatalav Bhavnagar

Phanak rajkot


12 NIRMA LIMITED

ORGANISATION CHART

SR. MANAGER SR. OFFICER

ENGINEER OFFICER SR. ASSISTANT

SR. TECHNICIAN ASSISSTANT

TECHNICIAN JR. ASSISTANT

JR. TECHNICIAN


13 NIRMA LIMITED

CHARACTERISTIC

High capital raising power.

High managerial skill.

Limited liability.

Unlimited member.

Complicated formation.

Distribution of profit or loss.

No business secrecy.

Transfer of share.

Public confidence.

Artificial person.

Common seal.


14 NIRMA LIMITED

ACHIEVEMENT OF KALATALAV COMPLEX

Developing of green Beth with more then 18000 trees in salty land.

Developing rainwater harvesting facility for collecting precious water running

to sea.

Awarded by ICMA for “ Excellence in water resource management for the

year 2002 and 2003.

Awarded by saurashtra chamber of commerce and industry. Bhavnagar for

chamber excel excellence award for excellence in organization management

for year -2003-04.

Although plant site is located at a region of acute water shortage and marshy

impervious soil, has consistently built production level.

Awarded by Gujarat safety council for Gujarat safety awarded for the year

2002 and 2003.

Certified an ISO 9001 2000 company in much 2005 by TUY-RHEINLAND.


15 NIRMA LIMITED

SIZE AND FORM OF THE UNIT

According to the government policy now industrial

policy 1991,

Here are certain standards regarding the scale of operation.

Small scale unit

Medium scale unit

Large scale unit

In unit the capital investment is 2406.32 crores which

imply that is a large scale industry.

The unit whose investment in plant and machinery is

exceeding 100 lacks is known as large scale unit.

So as per these policies we can say that Nirma is a

large scale organization because its investment implies in crores.

FORM OF THE ORGANISATION

Nirma is a public limited company up to 8 NOV 1993.

it has been in corporate under company’s act 1995 and follows the rules and

regulation of that act.


16 NIRMA LIMITED

TIME KEEPING SYSTEM

Time keeping system is very important function and large

organization is very essential of personnel department. Time keeping is nothing

keeping the record of time entrance or exists of their employee.

Nirma limited is large organization so far Nirma, time

keeping system is very essential. They work 24hr. a day. They have working shifts.

They are leaving card system and employee details are

there on that card.

They have 4 working shifts which are as under.

G: SHIFT: 8:30 A.M. to 5:00 P.M.

A: SHIFT : 7:00 A.M. to 3:00 P.M.

B: SHIFT : 3:00 A.M. to 11:00 P.M.

C: SHIFT : 11:00 A.M. to 07.00 A.M.

CANTEEN

A:SHIFT :12:00 P.M. TO 12:00 P.M.

G:SHIFT :12:00 P.M. TO 01:00 A.M.


17 NIRMA LIMITED

QUALITY POLICY

Contribution exploring and developing new products and

process.

Laying emphasis on cost effectiveness.

Maintaining effective quality management system.

Complying with safety environment and social obligation.

Imparting training to all involved on a continuous basis.

Team work and active participation all around.

Demonstrating belongingness and exemplary behavior

forwards organization its goals and objective.


18 NIRMA LIMITED

CONTRIBUTION OF THE UNIT OF THE INDUSTRIES

This industry is started unit a small unit and today. It is a

giant unit, which covers maximum market share in chemical industries.

In every field NIRMA gives its contribution such as:

To maintain divided rate of shareholders.

Follow all the rules and regulation of government.

Maintain qualities and sale this qualification product in the market

at cheaper rate.

Contribution in social activities.

Contribution in education actives and walfare activities.

Nirma has its own power station process is never stopped caused

G.E.B.

The safety system of Nirma is outstanding.

Nirma has excellent H.R.M. department and employer and

employee relation is a very good.


19 NIRMA LIMITED

PRODUCTION FACILITIES AT VARIOUS UNITS

LOCATION DISTRICT &

STATE

AERA OF

COMPLEX

(in hectare)

PRODUCT

Mandali Mahesana Guj. 50 Detergent powder & cake,

sulfuric acid, oleum etc.

Pithampur Dhar, Madhya

Pradesh

10 Det. Powder & det. Cake

Charal Mahesana Guj. 15 Detergent powder.

Trikampura Ahmedabad, Guj. 02 Det. Powder &

Det. Cake.

Moriya Ahmedabad 60 Det. Powder& cake single

super phosphate &

packaging.

kanpur Kanpur U.P. 08 Det. Powder & cake.

Alindra Baroda, Guj. 85 Linear alkyl

Benzene & powder.

Kalatalav Bhavnagar, Guj. 23580 Soda ash, vacuum.


20 NIRMA LIMITED

SAFETY AND HEALTHY POLICY

Productivity with safety is our motto. Safety and health will be considered in

process design. Selection of equipment and implementation of programmes.

Health and safety of the workforce is an asset of company continuous

improvement in performance by training rewarding will be ensured for a

maintaining a vigilant workforce.

The management and workforce equally share the responsibility of

maintaining a healthy and safe workplace. Necessary institution mechanism

will be evolved to maintain and improve the safety. Health and environment of

the workplace by representative participation with checks and balances.

To fulfill our social responsibility, we will conduct programmes, seminars,

celebration and put up hoarding to make the general public aware. So as to

react timely, safety and intelligently in case of emergency.

We will encourage our associates, contractor and suppliers to implement safe

and healthy practices in there establishment.

Above all we commit to fulfill all statutory provision under the guidance of

regulatory agencies.


21 NIRMA LIMITED


22 NIRMA LIMITED

INDEX

NO. NAME PAGE

NO.

1` INTRODUCTION 23

2 ORGANISATION CHART 24

3 PLANT LAYOUT 25

4 PRODUCTION PLANNING & CONTROL 26

5 PRODUCT MADE &USES OF PRODUCT 27

6 RAW MATERIAL USED 31

7 MACHINERIES USED 32

8 MATERIAL HANDLING 37

9 QUALITY CONTROL 39

10 STORE KEEPING 41

11 REPAIRES & MAINTAINCE 42

12 WASTE MANAGEMENT 43

13 POLLUTION CONTROL 44

14 CONDIFICATION & IDENTIFICATION 45


23 NIRMA LIMITED

INTRODUCTION

“PRODUCTION DEPARTMENT IS A HEART OF THE

BUSINESS”

Production is the basic activity of the all industrial units. All

other activities revolve around these activities. The production activity is nothing but the step

by step conversion of the form of material into another either chemically or mechanically

According to Peter Drucker, “it is more important in do the

thing right.” By saying this he means producing effective rather than effectively. The most

successful companies excel both. Production is done by changing the size, color, orders,

contents etc. of natural resources.

Production management is a process of planning,

organizing, directing, controlling the activities of production function. Production function is

the conversion of raw-material into finished goods. Production management is concerned

with the processes which convert the input into outputs. The inputs are the various

resources like raw-material and the outputs are the outputs are goods &services.

In normal Ltd. Production department is looked after by

production in charge. The production in charge of Nirma Ltd. Is Mr. Mehul Desai.


24 NIRMA LIMITED

ORGANISATION SRTUCTURE

Organisation structure id the basic frame work of the

company management. It is the pattern in which the various departments of the

company are interconnected.

In nirma Ltd. there is a lime type of organization in

which authority flows from top to bottom and responsibility flows from bottom to top.

The following is the organisation structure of Nirma

Ltd.

G.M processor

MANAGER PROCESS

DEPUTY MANAGER

SENIOR ENGINEER

ENGINEER

OPERATING STAFF

PLANT OPERATION

TECHNICIAN

HELPERBETTER PRODUCT, BETTER VALUE, BATTER LIVING.

25 NIRMA LIMITED

PLANT LAYOUT

Plant layout is the overall arrangement of the

production processes, store-room, stock-room and tool-room, material handling

equipment aistes, racks and sub stores employee services and all other accessories

required for facilitating the production in the factory. As it encompasses production

and services facilities and provides for the most effective utilization of the man,

material and machines constituting

The process., it is a master blue print for co-ordinating all operation performed in

side the factory,

In Nirma Ltd. there is a process or functional layout. In

this lay out more emphasis is given to specialization or functional homogeneity or

various components of the system. All operation of similar is grouped together in the

same department of part of factory.

The plant layout of the Nirma Ltd . Is as fallow :


26 NIRMA LIMITED

PRODUCTION PLANNING CONTROL

Production planning involves the decision on the

resources that the firm will requires for its further manufacturing operation and

allocation of these resources to produce the desired product in the required amount

at the minimum costs. Planning is also done regarding the finance required for the

production. The amount of capital required should be very well planned before

starting the production. The capital should neither be less nor should it be more

because in the both cases its loss for the company. The manpower required for the

production process should also be planned. The no. of workers, supervisors etc.

should be fixed well before the production.

Production planning and control is very well managed

in Nirma Ltd. First they make yearly and monthly plan on basis of requirement of

marketing department. They also plan their product according to order get from the

dealer and also do product planning by using their records. After production they

check all the things. In there are any problems with production they solve it very

sincerely. In this way they can also contrl the production and they can reduce

wastage.


27 NIRMA LIMITED

PRODUCT MADE

DETERGENT POWDER & USE OF PRODUCTS

Super nirma detergent powder.

Nirma popular detergent powder.

Nirma washing powder.

Green nirma washing powder.

Nirma detergent powder.

Nirma green detergent powder.

DTERGENT CAKE

Super nirma detergent cake.

Nirma detergent cake.

Nirma popular detergent cake.

Green nirma detergent cake.

Nirma Behan bar.

Nirma clean.

Blue nirma detergent cake.

BATHING SOAPS

NIirma beauty soap.

Nirma bath soap.

Nirma lime fresh soap.

Nirma rose.

Nirma lime.

Nirma sandal.

Nirma rosee.BETTER PRODUCT, BETTER VALUE, BATTER LIVING.

28 NIRMA LIMITED

Nirma herbal.

Nirma henbane.

Nirma premium soap.

OTHER PRODUCT

Nirma beauty shampoo.

Nirma shikakai.

Nirma toothpaste.

Nirma shuddh iodized free flow salt.

INDUSTRIAL PRODUCT

Linear alkyl benzene.

Sulpharic acid.

Glycerin.

Fatty acid.

Soda ash.

USE OF PRODUCT

SODA ASH

A) : Soda ash.

Factory use

B): Dence soda ash

In the production of salt.

In metal logical and glass industries.

In petroleum products purification in pulp and paper, paint,

varnish, textile and leather industries.

Traditional use in the field of soap, textile petroleum, paper

and waste treatment etc.


29 NIRMA LIMITED

Is the cheapest alkali and can complete with NH3 for weak

alkali require.

DETERGENT POWDER

FMCG PRODUCT.

TOILET SOAP

FMCG PRODUCT.

SEA-WATER PLANT

DRINKING &INDUSTRIALUSE.

DETERGENT CAKE

FMCG products.

BATHING SOAP

FMCG product.

LINEAR ALKYL BENZENE

It is used as intermediate.

To make soap & detergent.

SULPHARIC ACID

It is used in olium production


30 NIRMA LIMITED

It is dehydrating agent.

It is used in textile production.

FATTY AICD

It is used in soap & various chemicals.

It is intermediate & solvent

GLYCERIN

It is used in soap cosmetics.


31 NIRMA LIMITED

RAW MATERIALS

Raw material is the most basic requirement for producing

any product. The selection of raw material should be proper. The quality of raw

material should be perfectly check because the quality of raw material directly

affects the quality of final products depends on the type and quality of raw material

used.

Nirma Ltd. uses the following material for the production

of various products.

SODA ASH

Coke, lime-stone, lignite, row-salt, ireated sewage water,

ammonia, and sodium supplied, caustic soda solution, hydrogen chloride.

DETERGENT POWDER

Acid slurry, aios color, soda ash, salt.

TOILET SOAP

Rice brand oil, palm kennel oil, palm steam oil, others

some oil.

SEA WATER PLANT


32 NIRMA LIMITED

Sea water & ingredients

MACHINERY USED

The machinery which are used in Nirma Ltd. For

production are as follow :

Machinery name Companies name

Boiler Lurgy tentse entergietechic.

Steam turbines Utyo denki BHEL.

Lime kilns FFE minerals, IPC.

Lime grinding mills Neuman ES.AP.

Carbonation power CAS, ISGES.

Cacuum filters EIMCO-KCP.

Calciners CAS, Kilbarh.

R.O. plant Thermax, hydroaunartyics.

Pure water plant AKZO Noble.

Chillers thermax


33 NIRMA LIMITED

PRODUCTION PROCESS

Today in present scenario Nirma industries is producing

more then 30 products and other chemicals are also manufactured.

Nirma is producing FMCG products as well as chemicals

for its own use. Mostly detergents and soaps are made as FMCG products. Nirma’s

production process is like continuous production process.

In Nirma Ltd. The soda ash plant involves no. of

operations which have been grouped into following of 7 sections :

section Description

100 Brine preparation & purification.

200 Lime kiln & gas cleaning.

300 Lime grinding, absorption & destination.

400 Compression & carbonation.

500 Calcinations & filtration.

600 Densification.

700 Sods ash storage & bagging.


34 NIRMA LIMITED

The other sections are as follow

Section Description

1000 Waste treatment plant .

1100 Steam distribution &power generation.

1200 Steam generation.

1300 Water treatment.

1400 Cooling & chilled water.

1500 Pressurized air.

2000 Salt washing.

2200 Raw material handling.

3000 Pure water plant.

3100 Evaporation plant.

3200 Salt drying.

3300 Salt storage &handling.

3400 Salt packaging.

Process of soda ash

soda ash is a produced from thru raw-material salt and lime

stone, salt is dissolved in water(or purified sea water in section 100). Lime stone is a

converted into lime and carbon dioxide with the acid of cokes (section 200). Using

the solvay process the NaCL solution is ammoniated brine result is in preparation of

bicarbonate(section 300). The precipitated bicarbonate is separated from the mother

liquor and transfer into light soda ash by calcinations(section 500). The co2 formed

by calcinations is recovered and used for carbonation, the light soda ash is


35 NIRMA LIMITEDconverted into dence soda ash by densification(section 600). Necessary steam and

power is generated into

cogeneration plant consisting of lignite fired boiler and turbines, section 3000

and 3400 come in pure water plant operation.

Process of salt plant

Nirma also manufactured the salt use for cooking purpose.

For the production of salt Nirma have taken a hand on lease which is

spread into 15000 hectors and 10 km. long.

From this land which is produced through natural process is taken out.

A soda ash purchases salt from outside which is already purified.

Purchased salt is directly supplied through belt conveyer system to

supply from one place to another.

The belt separates imparting like mud, stone etc. from the salt.

Process of salt plant

First of the entire make a nudels.

There are three main oils are used for preparing nudels namely palm,

DFA, and SRP.

Then after in the mixture machine they add sol sang power and

perfume.

Add then in the rover mill they add color.

The whole soap is cut into pieces by VHD machine.

These pieces are passed through simplex plodder and then to roller

machine to make it.

Then it passed through final plodder when the final product of soap of

good quality is passed for further process.

The soap is passed through stamping machine for stamping the name


36 NIRMA LIMITED

“ NIRMA “

Then it is gone through a long process and packing is done

automatically.

Process of synthetic detergent powder

The separated and slurry is now neutralized with soda ash and

sodium salt of linear alkyl benzene so obtain standardize by addition of extender

and fillers. The color is dissolved in water and is added in water and is added in

mass to obtain the standard synthetic detergent powder.

Process of pure water plant

Pure water plant is for converting sea water into pure water with

modern technology and successful operation capacity to produce 800 TPD of

vacuum salt 2240 m 3 pure water. this plant gives pure drinking water which

used in utility.

PRODUCTION CAPACITY

PRODUCTION CAPACITY

Light soda ash 1800 TPD

Dense soda ash 600 TPD

Vacuum salt 800 TPD

Toilet soap 200 TPD

Detergent powder 150 TPD

Solar salt 120000 TPA


37 NIRMA LIMITED

MATERIAL HANDLING

The function of material handling only to the movement of

raw material from the store room to the shipping section. Thus, material handling

involving the movement of material from one place to another for purpose of

processing they are moved either manually or mechanically with the help of

different types of material handling equipment.

In NIRMA Ltd. The best handling system is as under:

These are those machines handling equipments which

are installed on a strong foundation and generally used to perform repeated

worker rather then performing anything special they can handle smaller quantity

of material as compared to mobile equipment but can work for 24 Hr. and can

automatically handle grater amount of the installed material handling equipment.

BELT CONVEYER :-

It is used to transfer material through a large horizontal for

in dined distance. The belt conveyer consist of supporting roller, tensioning roller


38 NIRMA LIMITED

and driving motor, less wear and tier less maintaince , easily operating and

handling excellent of belt conveyer.

SCREW CONVEYER:-

It is used to transfer the material through small horizontal

in dined distance. The screw casting and driving motor less slippage chances of the

materials of conveniently used for smaller distance are advantages of wear and tier

of screw handle, large power requirement per kg. Material to be handling.

BUCKET EVEVATOR:-

It is used to transfer the material at any elevated point i.e.

transfer the material vertically. Buckets are like an open container which as

wheels. The materials produced are put into it and it can be pulled from one

place to another.


39 NIRMA LIMITED

QUALITY CONTROL

In this industrial context quality is defined in which more

functional fashion thus we can say that quality means, “Fitness for use.” Whether

for a product or services. It is an also considered as the sum total of the

attributes or properties that describe the product.

Today the existence of any manufacturing unit depends

upon the quality of product or services it manufactures or suppliers. The image or

goodwill of any unit is closely related to the quality of product made or supplied

by that unit.

“Level of quality is the mirror for the manufacture. “

Nirma Ltd. Is a big organization producing huge

production, but they also more concentrate on good quality. In production site,

there is big quality assurance department they check raw materials, working

progress and finished goods.

In this unit, there is systematic quality control process.

The company has purchased certain very costly equipment for the purpose to


40 NIRMA LIMITED

check the quality. Some expert personnel are recruited some quality policies are

also use maintain quality.

Raw material: Daily checking.

Work –in progress :

1) Every one hour sample is drawn.

2) Check this sample.

3) It is a quality is not good product is given to the production

department to make them correct with good quality.

Finish goods : Daily checking.

Thus, in Nirma Ltd. quality is maintain in good manner.


41 NIRMA LIMITED

STORE KEEPING

The efficiency of the manufacturing operation depends

largely on the efficient functioning of receiving store operations. Receiving and

storing are the services, functions and involve much of the power work. The direct

production cost is reduced by strategically location of the stores ensuring quick issue

and elimination of production stoppages caused by waiting for the materials. It

indirectly reduced investment in materials, storage space and insurance, elimination

of the pilferages and theft, obsolescence, reducing handling cost etc.

In Nirma Ltd. There are two stores:-

Raw material and process chemicals :-

In this store all the raw material like limestone, coal, coke,

and all the chemical of the process department are handled. All the material

management of these items is handled by raw material handling department.

General store department :-

In this store all the items like consumable items,

inflammable items such as petrol, kerosene, grease, oil etc. all the department like

bearing, belt, bolt, screw etc. all the hand tools of workshop department like drill,


42 NIRMA LIMITEDwelding rods etc. furniture items of all the department and all the items of

administration and safety department.

So in general department accept raw material and process

chemicals all the required items of all departments are full filled by store department

REPAIRS & MAINTAINCE

Repairs and maintaince is very essential part of the

production management. As entire scenario of the production is the depended on

the machines and plant on has to make sure that they are well maintained in the unit

utilized all raw material and process than to produce the final product but well

maintained they directly affected the quality of the products.

There is a systematic repairs and maintaince of the plant

of the Nirma Ltd. as all production work is done by it. Company has hired some

technicians to look after the plant and various vital components of the same. Also

these works are handled by technical director of the units.


43 NIRMA LIMITED

WASTE MANAGEMENT

Waste management has several dimensions: engineering,

geographic, social and management. Its basic purpose is to minimize the overall

waste in the given system waste here refers to waster of the all kinds of resources,

but especially the material which constitutes a significant portion some wastage is

inevitable in any conversion process of input into output. To reduce waste, we have

therefore to maximize the use of the resources. Resources management and waste

management are supportive to each other.

In Nirma Ltd. the management of waste and scrap is done

in appropriate manner. They check each product if there is any mistake or waste of

resource the reprocess the product and control the wastage. This way they follow

the best waste policy.


44 NIRMA LIMITED

POLLUTION CONTROL

A success of an industrial unit lies in its production of its

products without pollution the surrounding. An industrial unit for its functioning

depends a lot on the environment without properly no matter however efficient the

unit may be.

If the pollution inevitable then the industrial unit should find

out some method to neutralize implement ways which out down the pollution emitted

by the unit and help to keep the environment clean and pollution free.

NIRMA LTD. is so alert to control the environment

pollution. It has taken steps in order to control in the surrounding of their factory

shop.

These steps are as given below:

The entire chimney is properly heightened which are as safe height.

The industries are planted with more than almost 19000 trees which help a lot in

neutralizing the pollution in the environment.

Polluted water emitted by the plant is treated and purified to gain pure water

before giving out.


45 NIRMA LIMITED

CONDIFICATION & IDENTIFICATION

The system to be adopted for accurate identification of

material should be the allotment of a numeral to each time. In material management

terminology this is known as codification. The objective of codification is to provide a

common language for identification of every signal input in the inventory for all

transaction within the organization i.e. with its constituting units. All inputs materials,

irrespective of the source of procurement; whether from external sources

manufactured by the organization itself are too codified.

In Nirma ltd. Only material identification card is used in

material identification card all the terms like indent no. material code item name,

name of the indenter, quality, unit of material etc. is written by receipt section

material identification card is very useful for simplicity of material during issue of

material.


46 NIRMA LIMITED


47 NIRMA LIMITED

INDEX

NO. NAME PAGE NO.

1 INTRODUCTION 48

2 ORGANISATION STRUCTURE OF HRM 49

3 RECRUITMENT & SELECTION 52

4 PLACEMENT 53

5 INDUCTION 54

6 TRAINING 55

7 PROMOTION, TRANSFER & DEMOTION POLICY 56

8 WALFARE POLICY 57

9 INDUSTRIAL RELATION 58

10 SOCIAL RESPONSIBILITY 59

11 SALARY & WAGES 60

12 PERFORMANCE APPRAISAL 61

13 TRADE UNION 62

14 STUDY OF PROVIDENT FUND 63

15 PERSONAL RECORDS 64


48 NIRMA LIMITED

INTRODUCTION

Human resource management is a system of developing

in continuous and planned way the competencies of individual employees group of

superior and subordinate teams and the total organization to achieve organization

goal.

Now a day’s personnel management has given more

importance because labors are considered to be the most important assets of

management. So personnel management is as important as other areas of

management. It is very important &challenging job because it is a job mearly for man

but also administrating a social system.

HR of an enterprise has been defined as ‘The knowledge

and skills, creative abilities, talents and attitudes of its employees.’ These are human

factors which refer to the whole entirely consisting of interrelated, interdependent

and interactive, physicelogycal, psychological and ethical components


49 NIRMA LIMITED

RECRUITMENT & SELECTION

Recruitment is the first step in the process, which

continues with selection and cases with the placement of candidates

In the process of recruitment first of all as the blue print

for the future requirement activities is ready, head of the department have to prepare

requisition.

REASONS FOR RECRUITMENT

If there is any step is taken in the company, these should

Be some reasons so here there should be some reasons for recruitment. Which

requires recruiting the employee?

Reasons are:-

Death

Retirement

Promotion

Transfer

Resignation

Social reason BETTER PRODUCT, BETTER VALUE, BATTER LIVING.

50 NIRMA LIMITED

Others

STAGES OF RECRUITMENT

Manpower requisition:-

Respective functional head justify the requirement of

manpower.

Manpower approval:-

Manpower requisition from dully approved by functional and

unit head is forwarded to HR department.

Filling up vacancy

Vacancy can be filled by both internal and external sources.

The employment exchange, new-paper advertisement, campus interview

etc. are the sources of recruitment.

SELECTION

Human resource department at head office invites

candidates to under go selection process. Compressing or written test and

their stage personnel interview- preliminary interview, following up interview

and final interview.

The candidates who have applied for the job have to pass through

three kinds of interview.


51 NIRMA LIMITED

1. Written test.

2. Personal interview.

3. Interview at the head office.

The fresher and the ones with an experience of less than

a year have pass through the written test are personally interviewed by the

factory manger and other related authorities. Then the candidates short –

listed from that have to go to the head office, Ahmedabad for their final

selection. The person, whom the head office selects, is finally selected.


52 NIRMA LIMITED

PLACEMENT

Once an offer of employment has been extended and

accepted, the final stage in procurement function is to be conducted namely that of

placement of industrial on the new job and oriented him to the organization.

After selection the employee is generally put on a

production period, regarding from six months to one year after which his

employment may be confirmed, provided that during this period, his works has been

found to be satisfactory only in very rare cases is the employee, once placed, asked

to quit and even than. It is only when there is something very serious gains him or he

is found guilty of continued negligence in the performance of his duties.


53 NIRMA LIMITED

INDUCTION

Induction is a technique by which a new employee is

revalidated into his surrounding and induction to the practices, policies and purpose

of the organization.

In other words it is well coming process the idea is to

welcome a new corner make him feel at home and generate in him a feeling that his

own job. However small is meaningful and has a significant as apart of the total

organization.

In the case of induction, “NIRMA” give a proper induction

time after placement. They gave proper time to know about the company

responsibility and their working condition. In Nirma the programmed of orientation is

to 15 days. Facts which refers it a while intimately consisting of interrelated,

interdependent, interactive, physiological, sociological, and ethical components.


54 NIRMA LIMITED

TRAINING

Training is the process of learning a sequence of

programmed behavior, and it is application of knowledge it gives people an

awareness of the rules and procedures to guide heir behavior.

Basically, Nirma gives some training to its employees.

They are as under:-

To train the employees for promotion to higher jobs.

To train the bright but dronish employees n the information of his goal. This may

involve instruction in initiative and drive.

To train employees to increase quality and quantity of output. This may involve

employment in method and skill.

To train the employees towards better job adjustment and high miracle.

To train the employees in the company culture patter. To reduce supervision,

wastage and accident.


55 NIRMA LIMITED

PROMOTION, TRANSFER &DEMOTION POLICY

The term policy refers to the general guidance to the

management with other policy regarding various matters most of the companies

always preparing promotion & transfer policy.

PROMOTION:-

The promotion means upward movement of the

employees post. This stage employee’s wages and salary status prestige move

towards the top management &their responsibility also increased.

Promotion requirement arises by:

Resignation.

Termination.

Death of any employees.

Vacancy for new position.

In Nirma promotion is given by neither on the base on

seniority nor for qualification. Nirma’s policy I have quite different from

other. The required feature for promotion on the basis of grade system,


56 NIRMA LIMITED

when any person resigns from their poster retirement and direct promotion

by HOD.

TRANSFER:-

Transfer means horizontal movement of the employees

where their authority and responsibility remain the same just their work

place is change.

Nirma are also adopting transfer policy when:

Another department needs the employees at that time head of the

department meet and taking the decision regarding transfer.

Another case is when ever the dispute is arise at that time

department are put another.

DEMOTION:-

Demotion means downward movement of the

employees post. There are also few cases where demotion is given

basically to the poor, unexpected behavior. Irregularity of employees etc.

Nirma there is not demotion policy is same time

workers to give some fine but not demotion.


57 NIRMA LIMITED

WELFARE POLICY

Nirma provide many employees services and welfare

activities very bitterly. It provides two types of services.

STATUTORY:-

The firm must have to give some facilities to the

employees according to government rule which are compulsory to the employee:

Provident fund

E.S.T.C. scheme

Increment in salary

Vantilisation etc.

AN STATUTORY:-

It means that employees get more facilities due to the

companies own interest in welfare of employees.

In Nirma following facilities are given to motivate

employees:

Canteen

Uniform and shoes

Holidays

Library

Bonus

Cultural


58 NIRMA LIMITED

Programmers

Committees

Staff bus facility

Bank facility.

INDUSTRIAL RELATION

At Nirma employees and management are committed

towards maintaining harmonious industrial relation. Towards this direction,

preventive and predictive measure is being taken in the form of regular

interaction between shop floor line and staff. The customer grievance

redressed mechanism of openness of top management empowerment of the

system is well placed. All the workers are satisfied with the management but

there is all the workers agree to a committee and representative of employees

and their wise decision.


59 NIRMA LIMITED

SOCIAL RESPONSIBILITY

Nirma is following social responsibility adopted:

Nirma garden

Education facility

Medic lame of family

Housing loan

Company provide 5000 education loan from outside studies.

Company provides hospital facility to the employee for emergency

At Bhavnagar.


60 NIRMA LIMITED

SALARY & WAGES

Nirma administration is totally paid by head office and

computerized according to the time keeping wages & salary of the employee’s

wages & salary is given on the basis of performance and efficiency. Some amt of

P.F., E.S.T. scheme and income tax is deducted from employee’s salary. Monthly

salary is directly deposited in bank.


61 NIRMA LIMITED

PERFORMANCE APPRIASAL

Performance appraisal refers in evaluating a job an

employee. Performance appraisal has been considered as must significance and in

dispensable tool for organization. It provides highly useful information in marketing

decision regarding various personal aspects. In Nirma performance appraisal is

given 6 grades which are as follows.

A+, A, B+, B, C. D.

The grades are given by authority on the basis of the work

performance as task done by employees. The method of P.A. used by Nirma is as

under:

Knowledge

Interest

Initiative work output

Quality and accuracy of work

Lost consciousness

Creativity of reference job

Willingness to aspect responsibility

Resourcefulness

Reporting abilityBETTER PRODUCT, BETTER VALUE, BATTER LIVING.

62 NIRMA LIMITED

Punctual its

Integrates

Judgment

Ability to develop & train where.

TRADE UNION

According to the section 2(b) of the Trade Union Act

1926, “a trade union is any combination of persons. Whether temporary and

permanent, primarily for the purpose of regulation the relations between workers and

employees, or between workers and workers and for embossing restrictive condition

on the conduct of any trade unions, “trade union is enactment by the central

government and it is enlarged and administered by states register are also

appointed by states.

Purpose of trade union is as follow:

The main purpose of trade union is collective bargaining for employee related

decisions. It is a crucial work for them.

For industrial peace, trade union is necessary, because they can discuss all

the problem with management and both try to solve the problem.

For better labour management relations.

In Nirma there is a good communication channel between

the management and workers


63 NIRMA LIMITED

STUDY OF PROVIDENT FUNDS SCHEME

According to provident fund act 1952, central government

has launched a scheme that any company which has more than 20 employees, has

to follow provident fund scheme.

There are certain rules for getting pension

Employee must do job at least 10 year before retirement

Employee must 58 years old, if he is younger than if, than ha will get

“scheme certificate” and whenever he will complete his 58year the

pension will be given to him.

If any employee needs pension before 58 years, he will get it at the age of

50 but 3% reduced rate.

If any employee leaves the job before loyers of his services and jobs any

other firm, then he has to submit his ,”scheme certificate” there. So, his

service will continue and after years, he will get pension.

Provident fund is useful for getting loans which are not refundable.

For marriage 25% loan is given.

For housing loan 80% loan is given

But for these necessary document has to be submitted. If any employee

resigns from the job, he can get provident fund money by signing from no.

19. But all the details have to be required.


64 NIRMA LIMITED

PERSONAL RECORDS

A personal record is a one type of card, which provides

total information about the employee. It is an evidence for future reference or use. In

other words we can say that it is an identity of an employee. Through an employee

leaves the job, personal records cards is kept by company for records

There are several column in the card and each column is

useful for getting various information personnel record card contains name of the

employee, address of the employee, family background and skill, date of birth,

award received and in which department. He has to work etc. matters are in the

personnel records card.


65 NIRMA LIMITED


66 NIRMA LIMITED

INDEX

NO. NAME PAGE NO.

1 INTRDUCTION 67

2 ORGANISATION OF MARKETING DEPARTMENT 68


4 PRODUCTION PLANNING 70

5 MARKETING SEGMENTATION 71

6 CHANNEL OF DISTRIBUTION 72

7 SALES PROMOTION 73

8 ADVERTISEMENT 74

9 MARKETIN RESEARCH 75

10 QUALITY INSPECTION AND PACKING 76

11 PRODUCT MIX 77


67 NIRMA LIMITED

INTRODUCTION

Marketing is a comprehensive term. It includes primary

resources such as human resource, finance of management as well as a set of

activities in order to direct the flow of goods and services from producer to customer

in the process of exchanging and distribution marketing defined as the process of

exchanges between buyer and seller. It includes a no. of interrelated activities to

plan promote distribute and price of product or services in order to meet the want

and needs of both the parties in exchanges transaction viz. consumer and producer.

According to P.kotler,”the human activities directed at

satisfying needs and wants through exchange process.”

The main goal of any company is to increase sales and

to earn profit more and more. Nirma Company Ltd. Is concern with product concept

and marketing concept because the main motive of the company is to increase sales

volume and market reputation by providing consumer satisfaction and quantitative

product.

All marketing activities have its own little role and

efficiency in organization or management do every company must keep marketing.


68 NIRMA LIMITED

ORGANISATION OF MARKETING DEPARTMENT

Simple an organization is the rational co-cordination of

activities of no. of people or the achievement of some common objective marketing

organization is made up of people activities, responsibility, authority, relationship for

the purpose of achieving marketing objective.

The Nirma Company Ltd. Has also marketing

department this company follows of line organization. It is a vertical line of authority.

In sales department all responsibility and authority give to the sales officers. So he

has to keep to attention on all activities.


69 NIRMA LIMITED

ORGANISATION CHART

GENERAL MANAGER

Sales department Purchase department

Sales manager Purchase manager

Sales assistant Purchase assistant

Sales attendant Purchase attendant


70 NIRMA LIMITED

PRODUCT PLANNING

Product planning means planning for the products that

is to decide what types of products to be produced or what needs or requirement is

to satisfied and for whom the product is made.

The company does the product planning very carefully

to assess the demand of the product in the market. First of all they contact whole

sellers and dealers. In case of arrival of new customers, few samples are provided

and then as per the suggestion and the need of the customer the new product is

manufacture.


71 NIRMA LIMITED

MARKETING ESGMENTATION

“Marketing segmentation is the method for achieving

maximum marketing response from limited marketing resources through market

segmentation sales try to identify who are most likely goods and services.”

Market segmentation is a meaningful huger group

having similar wants each unit has need of market segmentation. “ NIRMA

COMPANY LIMITED” has also included marked segmentation. Market is a better

position to locate and compare marketing opportunities.

In all leading cities of Gujarat and also in all country,

NIRMA COMPANY LIMITED has appointed 400 distributers for marketing of their

products and developing the market, it also appoints 350 sales forces to increase

the volume of sale and to get marketing opportunities.


72 NIRMA LIMITED

CHANNEL OF DISTRIBUTION

Distribution channel indicates the rutes of pathway

through which goods and services flow or move from producers to customers.

There are two types of distribution channel.

Direct selling and

Selling through middlrmen.

Here, middlemen may be dealer, wholesalers, retailer etc. in distribution

system of selling through middlemen and for which they have distributors a district

level in Gujarat and over the country. They send the product within 48 hr. of the

receipt of order. The product on the basis of geography and distribution channel

adopted by the unit is as follow:

Distribution channel

Manufacture

Dealers

Wholsalers BETTER PRODUCT, BETTER VALUE, BATTER LIVING.

73 NIRMA LIMITED

Retailer

Customer

SALES PROMOTION

Sales promotion means any steps that are taken from the

purpose of obtaining or increasing sales. It includes advertising, publicity, public

relation. We can also say that it is activity other than advertising, publicity and

personnel selling which stimulate consumer in purchasing e.g. display show rooms

and exhibition which don’t come in routine activities of selling. NIRMA COMPANY

LIMITED has adopted various incentives to increase the sales of its product. But it

objectives are to be spelt out in detail. They would be as follow:

To attract new customers.

To increase off season sales.

To meet the competition.

To introduce new product.

To encourage present customer for more buying.

To include dealers stock more.


74 NIRMA LIMITED

ADVERTISEMENT

Advertisement means mass paid communication of

goods, services and ideas by identified sponser. In today’s most competition

world, advertising is most useful way of communication between manufacture

and consumers.

This unit selects each and every type of advertisement

media, like television, handbills and internet website, personal contact, news

papers are commonly used.


75 NIRMA LIMITED

MARKETING RESEARCH

Marketing research is the system object and exchange

search and study of all facts relevant to any problem in the field of market.

Marketing research includes determination of market

characteristics, measurement of market potentials, market share always analysis

studies of business trends.

This unit does not under go whole of the above

mentioned marketing research activities. In marketing research studies of

business forecasting, com

petitive product pricing and testing of existing etc.


76 NIRMA LIMITED

QUALITY INSEPCTION AND PACKING

As we discussed earlier that product of NIRMA

COMPANY LIMITED is known as “Value for money” which means the company

provide the best quality of products.

This company committed to quality of products, “Quality

of products and customer satisfaction “ means every thing activities are directing

towards achieving the goal.

“Quality is essential customer attachment of that product

which they purchase with past.”

Inspection is very essential part of the company before

dispatch the product. They should be assured that what the product they send is

good without any defect.

NIRMA COMPANY LIMITED has laboratory for inspect

the product and its quality and quantity.

All the products packing is differ with its size.


77 NIRMA LIMITED

PRODUCT MIX

Product mix is the set of all products and items that a

particular seller offers for sale. A company product mix has certain width, length,

depth and consistency. Company has five product line. They are as under:

Detergent powder

Bathing soaps

Detergent cakes

Industrials products

Others products.


78 NIRMA LIMITED


79 NIRMA LIMITED

INDEX

NO. NAME PAGE NO.

1 INTRODUCTION 80

2 ORGANISATION OF FINANCIAL DEPARTMENT 81


4 FINNCIAL PLANNING 83

5 CAPITALISATION 84

6 CAPITAL STRUCTURE 85

7 CAPITAL BUDGETING 86

8 SWOT ANALYSIS 87

9 MANAGEMENT OF FIXED ASSETS 88

10 MANAGEMENT OF WORKING CAPITAL 89

11 LEVERAGR ANAYSIS 90

12 RATIO ANALYSIS 91


80 NIRMA LIMITED

INTRODUCTION

Without blood human body can not live, like wise without

finance any types of business is not exist. So finance is very important thing in

recent situation. So we can say that comment condition is totally different as in

ancient year where to get finance is easy and scope is too broad.

Finance management is that management activity which

is concern with the planning and controlling of firms financial resources. We need

finance for production of goods and services as well as their distribution. So we

can say finance is needed for from stating till wind-up of business.

Finance is administrative area set of administrative

function in an organization which relate with the arrangement of each and credit,

so that the organization may have the means to carry out its objective as

satisfactory as possible.

Traditionally there was a saying that, “ Business takes

money “. But this statement becomes outdated and its place there is a new

statement. “If you have money and you manage it properly, you will make more

money.”

To control its finance to complete the work in less time

and less expenses. This function is very important as far as finance is concerned.

Looking at all the called function of finance it is called heart of the business

organization.

In company finance is called company’s capital is of two

types:


81 NIRMA LIMITED

Fixed capital

Current capital

ORGANISATION OF FINANCIAL MANAGEMENT

Over viewing the organization of finance department, it

would be better if we go through what actually organization mean.

Organization of authority.

Designing the job structure.

Designing the responsibilities at all level.

Establishing structure relationship.

In this company finance department organization

structure is line. A organization structure where there is vertical line authority

that is authority moves from top to bottom.

Finance manager is the heart of finance department

and he is fully responsible for his work. Under his duty accountable do his

duty.


82 NIRMA LIMITED

ORGANISATION CHARRT

MANAGING DIRECTOR

GENERAL MANAGER

FINANCIAL MANAGER

CHIEF ACCONTANT

ASSISTANT ACCOUNTAR

OPERATOR


83 NIRMA LIMITED

FINANCIAL PLANNING

Financial planning is a systematic approach which aids

in attainment management performance effectivity. It decide future course of

activities of finance department of present and helps the organization to be

faced by financial manager in future. It clarities the quality of required finance

and also gives ideas regarding the opportunities in which the finance is to be

invested.

Financial plan indicate firm’s growth, performance,

investment requirement of funds during a given period of time. In more, we

can describe financial planning as the process of estimation the funds,

requirement of a firm and determining the sources of funds.

The company makes financial planning on the basis of

time, which are as under:

Long term planning

Short term planning

This company adopted mainly long term planning as

well as short term planning.


84 NIRMA LIMITED

CAPITALISATION

Capitalization can be defined as sum total of all kinds of

long term securities at their per value.

If capitalization of a company is just equal to its capital

requirement, it is considere. It is more than required, profit per share will full and its

capitalization is said to be in appropriate. If capitalization is less than required, it is

not desirable.

According to GERSTENBERG capitalization

compreses, “ownership capital and surplus capital in whatever it may appear and

borrowed capital which consist of bonds of similar evidences of long term debt.”

Capitalization refers to the per value of the long term

securities such as shares and debentures issued and surplus and value of all other

long term obligation. This includes the value of ordinary and preferences share

surplus and earned capital, bonds and securities still not redeemed and long term

loans.


85 NIRMA LIMITED

CAPITAL STRUCTURE

Capital structure represent the proportional relationship

between owned capital and borrowed capital.

In NIRMA COMPANY LIMITED , capital structure is

perfectly mentioned. No storage of capital is arised in this company because of

enough capital resources, when ever required.

Thus, company has no problem about capital structure.


86 NIRMA LIMITED

CAPITAL BUDGETING

In each and every business capital budgeting plays an

important role. Capital is the most important devices of company. So it’s budgeting is

also important.

Capital budgeting or capital expenditure is intended to

benefit future period i.e. in more than one year as opposed to revenue expenditure.

Replacement :-

replacement of fixed assts may become necessary either

on account of their being work outdated or out on account of new technology.

Expansion :-

High demand for its products and inadequate production

capacity. Expansion of production capacity is required for any company.

Diversification :-

Instead of reducing its risk by operation in single market. It

does not in several markets.

so far as capital budgeting is concerned with long term

assets, it is pointed out that NIRMA COMPANY LIMITED has total assets in

2003-04 is Rs. 3174.19, fixed assets in 2003-04 is Rs. 2168.91 and current

assets in 2003-04 is Rs. 294.06.


87 NIRMA LIMITED

SWOT ANALYSIS

S= Strength

W= Weakness

O= Opportunities

T= Threats

Strength :-

Good quality at responsible price.

Financially sound.

Proper of channel of distribution.

Weakness :-

Competitors

Opportunities:-

To provide different types detergent and cake.

Threats :-

Competitors markets.

Economics slow down.


88 NIRMA LIMITED

MANAGEMENT OF FIXED ASSETS

Fixed assets mean in long term capital, which affects in

more than one year. Once the capital is invested in fixed assets the company can

convert into cash in one year for smooth running of business fixed assets plays

crucial.


89 NIRMA LIMITED

MANAGEMENT OF WORKING CAPITAL

Working capital is a capacity, which is required for day to

day working in a business concern. There are two types of concept such as

gross working capital concept and net working capital concept. In gross worming

capital concept refers to firm’s total investment in current assets. In net working

capital concept refers to the difference between current assets and current

liabilities.

Working capital= current assets + current liabilities

Current assets:-

a) Investment

b) Debtors

c) Cash & bank

d) Loans & advantages

Therefore, current assets are Rs.183.74 crores.

Current liabilities :-

a) Liabilities

b) Provision

Therefore, current liabilities are Rs.125.97 crores.

So, working capital = current assets + current liabilities

=183.74 + 125.97


90 NIRMA LIMITED

= 309.71.

Therefore, working capital of NIRMA COMPANY

LIMITED is 309.71 crores.

LEVERAGE ANALYSIS

The term leverage may be defined as an employment of

assets or sources of funds which the firm has to play fixed cost or fixed return. In

other word leverage refers to the amt. of finance taken as borrowed capital and

capacity of that finance is consider as leverage.

The term leverage is generally used to utilize fixed cost

assets or funds to increase the return to the firm.

Analysis of leverage becomes to much important to

each and every company has some borrowed capital market and these capitals

have to be paid return to its creditors by the company. There are two types of

leverage keep in NIRMA LIMITED .

Operating leverage

Financial leverage

Operating leverage :-

The operating leverage means the leverage which show

increase in operating profit, disproportionately relation to increase contribution

sales.


91 NIRMA LIMITED

This leverage is possible only when the cost structure of

business includes the fixed cost. It means operating fixed cost and not financial

cost.

Financial leverage :-

Financial leverage is the leverage associated with

financial activities of the business firm.

RATIO ANALYSIS

Our studing of accounting so far as been restricted to recording of business

transaction in boooks of account, preparing a trial balance to check the

arithmethical accuracy of accounts andpreparing profit and loss account and a

balance sheet with a view to ascertaining trading result of sprsified period and

financial position of the business on a specified date respectively. The function

Of the accountant do not end at this stage. He should be able to analyse and

interpret the figures as disclosed by this statament to gauge accurately the

financial health of enterprise.

An investor is interested in information regarding the exact

financial position of the business, its earning capacity, the present position with

regard to profitability and the future possibilities. He has only the published

accounts of the company before him which would enable him to take any

decision with respect to investing his money. The published accounts contain

profit and loss accont, balance sheet, directors’ report, auditors’ report and the

chairmen speech. However, accurate conclusion cannot be drawn from the mass

of figures included in these financial statements. Hence they are to be analysed

and interpreted with the help of a no. of devices. Let us at this stage, clarify the

meaning of important terms useful in our sudy of accounts

There are many accounting ratio as are under:

Revenue statement ratio:-BETTER PRODUCT, BETTER VALUE, BATTER LIVING.

92 NIRMA LIMITED

o Gross profit ratio

o Operating ratio

o Expence ratio

o Net profit ratio

o Stock turnover ratio

Balance sheet ratio:-

o Current ratio

o Liquid ratio

o Quick ratio

o Prorietary ratio

o Debt-equity ratio

o Long-term debts to fixed assets ratio

Composite ratio:-

o Return on capital employed ratio

o Debtors’ turnover ratio

o Creditor’ turnover ratio

o Fixed assets turnover ratio

o Total assets turnover ratio

o Debt service coverage ratio.


93 NIRMA LIMITED

CONCLUSION

Chitaliya Dipak, i am student of B.B.A. in second year.

here by conclude that , this practical training at NIRMA LIMITED helped us a lot in

improving in certain areas of marketing, finance and human resource management.

We should again like to thank all the people of NIRMA

LIMITED who helped us during our training.

it was a wonderful experience to work with such a big

organization.


94 NIRMA LIMITED


chitaliya dipak - nirma

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