sarashtra cement ranavav

8/12/2019 Sarashtra Cement Ranavav

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1-INTRODUCTION ABOUT CEMENT

INDUSTRY

Cement is the basic raw material for all construction activities.

Cement plays vital role in manufacturing buildings, factory etc. today

cement graph goes up and up because now a days growth and

development activities doing more efficiently. The INDIAN CEENT

IND!"T#$ is the second largest in the world after china.

%Cement may be defined as a mi&ture of clin'er, gypsum and

other material that is used in construction(. The Indian cement industry

plays a 'ey role in the national economy in India there are more than ))

cement industries producing *** million tons of cement out of *+

million tons of cement are consumed in India and - million tons are

e&ported. In India total investments of the cement industries s about )

crores and *)- thousand people are employee because of cement

industries. The /!ltratech0 12 3 T4 cement is the leading cement

industry in India.

Today the use of cement has become so inseparably connected

with the social, economic and industrial fabric o a country, can yourimagine the world without cement5

*


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6INTRODUCTION ABOUT UNIT

"A!#A"7T#A CEENT 2IITED was produced by ehta

group is one of the leading players in the Indian cement industry. "C2

manufactures ordinary and po88olano port land cement. 7AT77I

CEENT is the brand of itself over the decades as a %choice of every

generation for its strength and durability( it is situated at #anavav near

#ailway "tation.

"C2 e&ports its product i.e. clin'er and cement in many foreign

countries. 9or this purpose "C2 produces high strength cement. The

ma:or strength of "C2 in its brand name and strong ;uality.

Today "C2 is the best cement plant in the world with compare to

the large scale moderni8ation and e&pansion "C2 has got award of I"y its product ;uality, "C2 enables term foreign e&change.


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-6HISTORY & DEVELOPMENT OF THE

UNIT

HISTORY

Each and every business unit running from its own sweet

and memorable history. The word history means past performance of the

company.

At **th ?une *=)@ shri Nan:i alidas ehta give birth to the

"aurashtra cement limited.


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DEVELOPMENT

Development is very important thing for any unit when

company starts it may face some problems but when problems are solved

company goes toward development.

The company starts its production in *=)=, with installed capacity

of @++ tons per day. As the high demand of cement "C2 had increased

their installed capacity. Today company0s installed capacity is F++ tons

per day.

Today unit is having turn over of cement more that ++ crores.

Due to increase in productivity effective mar'eting and ;uality control.

F


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46LOCATION FACTORS OF THE UNIT

2ocation is so much important for any business unit. Its plays vital

role in development of unit promoters who produce any business unit

must fi&ed a location where raw material, power supply, labour,

transportation facility and government allowed area is available.

"C2 is established at #anavav because of the following factors

1. Availability of Raw Mateial

#aw material is the basis produces any product so raw

materials are most noticeable factor for location. "C2 gets its raw

material from nearly areas of orbandar District. "o "C2 gets its raw

material easily, fast and with large ;uantity.

!. Availability of Labo"

The labour factor is so much important for location. "C2

gets sufficient labours educated, s'illed uns'illed labours because of

"C2 located at near of orbandar city so "C2 has never face any

difficulty for the labours.

)


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#. Ta$%&otatio$ 'a(ility

To carry goods from one region to another transport facility

must be needed. "C20s location is suitable because roadways of the

u:arat and by water ways of about from orbandar port. "o "C2 have

not faceany problem of "C2.

4. Availability of Ele(ti(ity

Any business unit not runs without electricity. "C2

purchases electricity from E> and company has also his D set 1Diesel

enerator4 so electricity is not problem of "C2.

). *ove$+e$t S"&&ot

The government policy of u:arat is good and favorable.

overnment provides schemes for development and promoting the

industries. "ituated in u:arat state overnment also provides short

term, long term financial loans.

@


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)6MANAGING BODY

,OARD O' DIRETORS

NAME DESI*NATION

r. .N.ehta Chairman

r. D.N.ehta Dy. Chairman

r. ?ay ehta E&ct. ice Chairman

r. 7.D.ehta Director

r. .N.#ao Director

r. ".!.".#aghavan Director

r. "avita . itte Director

r. "tephen otter ?.9.D.C.,Denmar'

Nominne

r. 9ring 9rodse 9C "midth 3 Co.

AGs Denmar'.

r. ..Chardu'e I9CI, Nominnee

r. ".#am:ee !TI, Nominnee

r. .".ilotra anaging Director

r. #..oddar Dy. anaging Director

B


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6-SIZE OF THE UNIT

In the consideration of the si8e of the unit there are three tools

*. 2arge scale industry

. edium scale industry

-. "mall scale industry

At the birth "C2 is large scale industry. The industry which is

having share capital more than #s. ) crore is the large scale industry.

The @B) persons wor' in this factor

6FORM OF ORGANISATION

There are so many forms of business organisation "C2 is itself a

%public company. The company is only indirectly defined in the act sec -

1I4 1iv4 states %public company means a company which is not a private

company(.

The company having a line and staff organisation


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/6ORGANIZATION CHART

SHARE HOLDER

v.p common v.p. finance v.p. operating v.p mar'

"r. anager "r. anager "r. anager "r. anager

Dg. anager Dg. anager Dg. anager Dg. anager

As. anager As. anager As. anager As. anager

erson Accountist wor'er 3 labour sales pres.


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16SAURASHTRA CEMENT LTD AT A

GLANCE

*. #egistered officeH 6 "aurashtra cement limited

near #ailway station

#anavav6 -@+))+

Dist. orbandar

u:arat 1India4

. Corporate officeH 6 Agrima >usiness centre

N.. ehta international

*B >ac'buy reclumination

umbai F++++.

-. ar'eting officeH 6 elican >uilding

Bth floor

Nr. u:arat chamber

Ashram road,

Ahemedabad -+++=

F. AuditorsH 6 Gs. >ansi 3 ehta company Chartered Accountant

). >an'ersH 6 Central >an' of India

Dena >an'

i:ya >an'

**


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The "aurashtra cooperative >an'

Industrial >an' limited

#a:'ot Nagri' "ah'ari >an'

@. Name of roduct ac' bay

reclamation

**. si8e of the unitH 6 large scale unit.

*
http://www.mehtagroup.com/http://www.mehtagroup.com/


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*-


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CONTENT

S. No. Pati("la Pa3e No.

1. INTRODUCTION 22

2. ORGANISATION CHART 23

3. TRAINING & DEVELOPMENT 24

4. AGES & SALARY

ADMINISTRATION 26

!. BONUS PROMOTION &

TRANSFER POLICY 2"

6. RECRUITMENT# SELECTION &

INTRODUCTION 2$

". ORKERS BENEFITS & FACILITIES 31

$. OVERTIME PAYMENT TO

THE ORKERS 32

%. PERSONAL RECORDS 33

1. KAIZEN SCHEME 34

11. TRADE MARK 34

12. SAFETY OF ORKERS 3!

13. SOCIAL RESPONSIBILITIES 36

*F


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1-INTRODUCTION

In any business unit personal department must be because of

personal department is the heart of any business unit. Lithout this the

business can0t run.

The personal department is related with human beings. ersonal

department has ta'en care of his employees. If employees and wor'ers

are happy the production goes up and up. Today man power contributionfor any business unit is so useful for smooth and long run.

ersonal department is also concerned with attaining of ma&imum

individual development, good wor'ing relationship between employees

and getting ma&imum efficiently of employees toward the wor'ing

organisation.

The main function of personal department is to appoint trained,

develop, motivate and compensate the employees of an organisation.

*)


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!6ORGANISATION CHART

Ma$a3i$3 Die(to

Die(to (o++e(ial

DY. Ma$a3e

L.5.O. Pe. Off Law. Off T6D . off Ma$ 7a8+9

Ti+e 2e Tai$(e AL.O ASS Ta$%e(t

le2 le2 le2

Ty&i%t

7ere

er.


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3-TRAINING & DEVELOPMENT

TRAININI*

Training is defined as the act of increasing the 'nowledge and

s'ill of an employee for doing a particular :ob. Training provides

awareness of rules and regulations, the ways of performing given tas'

effectively and prepares the employees improve the :ob performance.

"C2 gives training to their employees. There are two principal

methods use by "C2.

C I H 6 on he :ob training method

C iiH 6 off the :ob training method

7I9 O$ te :ob Tai$i$3 Meto8

Numerous training methods can be used while the man is engaged

in the process of productive wor' on the :ob training methods are

suitable for all levels of personal.


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in this method trainer leave their wor' place and devote

their entire time to the development ob:ective.

The company uses the methods li'e lectures. Audiovisual

conferences, discussion, case study, role playing etc.

DEVELOPMENT

Development of employees mains those types of activities which

are help in future for developing they are doing this activities to the

potential from wor'ers.

eriodically "C2 wor'ers meetings and invite professional e&perts

as well as e&perts of the similar company to e&press their opinions and

suggestions.

In "C2, the company does provide better and professional

management, development sources of all those levels of staff members.

*


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)6BONUS# PROMOTION & TRANSFER

POLICY

,ON;S

>onus is the e&tract payment to the employees for the better

earning of profit of company.

In "aurashtra cement limited bonus is given once a year. They pay

bonus unto )+++ to their employee.

PROMOTION POLIY

romotion means go up or goes one step more than others with

more responsibilities and more no. of hour wor'ing and ta'ing e&tra

facilities.

"C2 gives promotion on the basis of seniority, ability and

educational ;ualification, e&perience and also on the merits of the

employee. Thus "C2 mainly promotes on the basis of ?ob 'nowledge

and s'ills of employees.

TRANS'ER POLIY

Transfer means change in :ob but which :ob is provide is

subse;uently e;ual to first one means plant and position salary, status

responsibilities are same

In "C2 transfer are in lower level for solving his problem for

transfer his shifts and went to another shift. There is doing internal

transfer. >ut when company finds well 'nowledge persons who are

wrongly place then it transfers that employee to his 'nowledge

department.

+


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E>te$al So"(e%

E&ternal sources of recruitment means if company has vacancy

needed from out side than company gives advertisement in daily

newspaper, both in English or well as in u:arati. Also it used the

website of their own. The "C2 is widely used e&ternal sources.

SELETION

Lhen company gives advertisement for vacancy. They are many

applications comes from large numbers of people. At that time selection

is needed. "o selection means to pic' a right persons for :ob from

number of the peoples.

There are so many techni;ues to select the employee. "election

process of "C2 is as followsH 6

1i4 5itte$ Te%t

Lith the help of written test we can 'now practical and

general 'nowledge of employees. "C2 ta'es written test only for

managers and engineers. 9or officers it is not re;uired.


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1ii4 I$teview

Interview is a process between person to person means

employees and candidate with the help of interview one can get more

information about the candidate, after they decide some of are successful

and some of are unsuccessful.

1iii4 Py%i(al E>a+i$atio$

Candidates who are appointed from all above test after this

tests. that person must give medical e&amination. This is very important

because if a person having poor health he can not wor' efficiently and

the investment on him may go waste. As concerned to "C2 it conducts

medical chec' up to see the person is medically suited or not.

IND;TION

Induction is welcoming process of new employees. Lhen a new

employer comes in the organisation the organisation arranged induction.

a'e him to feel li'e home and generate him that his performance in the

company is significant. In "C2 induction process is for *) to + days

and the personal officer gives all details about organisation.

-


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6ORKS BENEFITS & FACILITIES

"aurashtra cement limited provides following facilities and

benefits to their employees.

*. 7ousing facility

. edical facility

-. Travailing and transport facility

F. Canteen facility). Creational and entertainment facility

@. Death relief fund

Ote fa(ilitie%

*. "C2 provides grays gratuity scheme for the employees

. "C2 provides provident fund scheme for the employees

-. "C2 provides uniform, shoes, goggles and cap to its employees

for safety

F. "C2 provides leave facility to its employees

). "C2 provides par'ing facility

@. "C2 provides facility to withdraw amount in advance by the

employees as per their post and standard of wages.

B. Lhenever company achieve it0s predetermine goal very

effectively management declare bonus to their employees as an

additional.

F


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/6OVERTIME PAYMENT TO THE ORKERS


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06PERSONAL RECORDS

ersonal department must be record all the information about the

employees which are wor'ing in unit.

ersonal record is systematically record of performance made by

employees. It is helpful in :ob analysis and promotion policy.

"aurashtra cement limited performs this function by 'eepingseparate file for each and every employee in which details regarding life

i.e. age, se&, date of birth, marriage, children, etc and details about ?ob

regarding :ob as date of recruitment, E&perience, educational

;ualification, leaves, health and safety, disciplined industrial disciplined

etc. are clearly recorded with a view to determine how to compensate the

wor'.

@


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16KAIZEN SCHEME

To invite various ideas of the employees "C2 has developed a

totally new scheme i.e. ai8en "cheme.

R"le% 6 Re3"latio$ of ?ai@e$ S(e+e

*. ai8en scheme was received I the month of ?anuary ++-.

. !nder this scheme various ideas are invited from the

employees addressing any are they deem fit-. The suggestions as well as the coordinators not only get

cash rewards for good ideas but also get to implement their

own ideas once it gets approved by the management

11-TRADE UNION

A trade union is the combination of persons, whether temporary or

permanent preliminary for the purpose of regulation the relations

between wor'ers and employees or between wor'ers and wor'ers.

Now a day there are hardly industries that consist no trade union.

As "aurashtra cements limited has @B) no. of wor'ers and it is very

difficult to manage then at to satisfy their needs. If any problems arise in

the organisation there are two trade union namely "aurashtra 'amdar

union and cement sarmic sangh they both are registered and connected

with INT!.

B


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12-SAFETY OF ORKERS.

In simple terms, /safety0 means freedom from the occurrence or

ris' of in:ury or loss. Industrial safety or employee safety refers to the

protection of the wor'ers from the danger of life, damage of property,

loss of production, loss of man hours and loss of wor'ers, employees

and to the nation. Thus to prevent the accident the need of safety is felt.

"afety is primarily the responsibility of the management to control

the number of accidents "C2 becomes more conscious about safety

programs for its employees in which they provide training to them for

safety.

In the celebration of safety wee' the company put many slogans

and poems for safety one of them are as followsH 6

SAFETY IS A FOUNDATION OF

HEALTH AND WEALTH


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1#-SOCIAL RESPONSIBILITIES

Every business unit has to perform some social responsibilities

towards the society. The organisation doing noise pollution, air

pollution, garbage and many other disadvantages of organisation.

"ociety of the location accept all these things so organisation must have

follow some social responsibilities.

"C2 provides following facilitiesH 6

* They help to control the air pollution by 'eeping bag house

scheme

They ma'e the area green by growing trees.

- They provide employment to thousands of peoples.

F They allow students to get his industrial training

) They sponsor tournaments, events etc.

=


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-+


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CONTENT


1. INTRODUCTION 3%

2. ORGANISATON CHART 4

3. NUMBERS OF THE PRODUCT 41

4. RA MATERIALS AND OTHER

SOURCES OF MANUFACTURE 42

!. MAIN MACHINERIES 44

6. PRODUCITON PROCESS 4!

". 'UALITY CONTROL 4$

$. POLLUTION CONTROL 4%

-*


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1-INTRODUCTION

The production function of a business is concerned with the

creation of a product or services re;uired to satisfy customer0s needs,

wants and desires. roduction means creation of utilities and covers al

the activities of procurement, allocation labour, energy, materials,

e;uipments, machinery etc.

roduction department is one of the most important parts of anenterprise which is responsible for the actual transportation of materials

into finished products. It deals with many machine, organisation to

accomplish both productivity and satisfaction the desirable and results.

Thus, /#


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6ORGANISTION CHART

Vice President

Sales Manager Sales & Advrts. Manager

Deputy Manager Senior Executive

Area Sales Manager Sales Representative

Regional Manager Sales Man

Head Clerks

Dispatch Clerks

--


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#-TYPES OF PROCUCT

Each and every business unit may manufacture some type of

product. As concerned to "C2 it manufactures only one product i.e. port

land cement, "C2 provides high strength cement for e&porting.

The numbers of the product manufactured by "C2 are as follows

Ty&e% of &o8"(t A% &e

*.


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46RA MATERIALS AND OTHER SOURCES

OF MANUFACTURER

/#AL ATE#IA20 is the foundation for manufacture a product.

#aw material is starting point so raw material is must be re;uired to

produce a final product. "C2 used various types of raw materials.

*. 2IE"TANANAA INE#A2"

"7A7!#, #A?A"T7AN

-)


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4. SAND STONE

"!N7E INE#A2"

C7#.

(. PHOSPHO

.".9.C.

8. OAL IMPORTED

"

*. Esteco coal sup, umbai

. Gs lencore India, umbai,

-. A# Coal 3 Energy

F. Comtoir >alland, eneva

-@


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)-MAIN MACHINERY

Crusher

"tac'er

#ecliner

#aw mill

>lending silo

re heater

Clinerisation

Coal mill

Cooler

Cement mill

ac'er

re 'ilan

-B


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). Raw +ill

2ime stone sweetener and additive li'e sand stone and

literate are fed into raw mill by feeders in which ;uantity are mi&ed.


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6'UANLITY CONTROL

uality control is an essential part of producing the best ;uality of

the product. ost of the customers prefer the ;uality of the product. The

customers never accept any fluctuations in the ;uality of the product. If

the ;uality of the product is not as per the re;uirements, it is very

necessary to control the ;uality of the product.

"C2 is producing cement and to chec' its ;uality after it is being

produced is very difficult as it ta'es days to show its strength. uality

control department has developed a special techni;ue to solve this

problem. "o they stated the bac'ward process i.e. to manufacture

particular ;uality of cement, particular ;uality of raw material and

process is needed so they start chec'ing ;uality of raw materials are

chec'ed by the ;uality 3 control department.

The "C2 follows the easy method to control the ;uality of cement.

To chec' the water pollution by dissolving of chemicals, some

chemicals may be mi&ed with the water so that the water may be used of

drin'ing or industrial use.

La$8 De3a8atio$

Lhen the land is being damaged by mining, it is to be

reclaimed and forestation is to be done so that environment balance may

be restored

F*


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$-POLLUTION CONTROL

Every business unit which are doing large production. It

must create pollution so "C2 also creating pollution in nature. They can

control this pollution by following ways.

To (o$tol Ai Poll"tio$

The air pollution can be controlled by ma'ing the use of

e&plosive, various types of fuels. The smo'e and dust coming out of

chimneys can be controlled by using recycling plant, installation of dust

collector etc.

To (o$tol 5ate Poll"tio$

To control water pollution they should not allow the bathing

and washing of clothes near the water storage. They should also ta'e

care that garbage and waste is also not being dumped inside the water.

F


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F-


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CONTENT


1. INTRODUCTION !2

2. ORGANISATION CHART OF

THE MARKETING DEPARTMENT !3

3. PRODUCT PLANNING !4

4. MARKET SEGMENTATION !4

!. PRICING POLICY !"

6. CHANNELS OF DISTRIBUTION !$

". SALES PROMOTION !%

$. MARKETING RESEARCH 6

%. COMPETITORS 61

1. ADVERTISING 62

FF


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1-INTRODUCTION

Today in this competitive mar'et one can not sale its product

without mar'eting. %ar'eting is a human activity directed at satisfying

needs and wants through e&change process(. Described by hillip

otler. ar'eting involves the activity li'e planning, pricing,

determination, advertisement etc.

ar'eting department plays a vital role in the organisation.ar'eting management represents and important functional area of

business management efforts for the flow of goods and services from the

producers to the consumers.

"ome one has rightly said %Nothing happen in our economy until.

"omebody sales something(

In this competitive mar'et each firm tries to increase sales volume

and mar'et reputation by providing consumer satisfaction and ;ualitative

products.

F)


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!6ORGANIZATION CHART OF THE

MARKETING DEPARTMENT

The organi8ation chart of the mar'eting department is as followH 6

ar'eting Department

ice president

"enior manager "ales 3 Adv. anager

Deputy anager "enior E&ecutive

Area "ells anager "ales representatives

#egional anager "alesman

7ead cler'

Dispath Cler'

F@


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-6PRODUCT PLANNING

roduct planning means to thin' about present mar'et of

the product and from that deciding about future and ta'es decision about

the types of product, ;uality of product. uality of product designs of

product etc. the present mar'et of competitors. In every business we can

see the cutthroat competition to satisfy the consumer company has to do

something new or different to his product.

In "C2, product planning is done 'eeping in view the demand as

well as supply factors.

If the company finds that the demand for cement is increasing than

automatically it increases the production and vice versa. 7owever there

are so many other factors which are also considered while planning the

product li'e availability of raw material, availability of manpower,

electricity etc.

FB


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46MARKET SEGMENTATION

ar'et segmentation represents an important recent advancement

on mar'eting thin'ing and strategy. The modern mar'eting is consumer

oriented. "o producer must 'now which are not ali'e, customers are

differ in their wants, purchasing power, geographic locations, buying

attitudes, tastes, habits nature, interest etc. so al the needs of a consumer

cannot be satisfied with the same product. "uch selection of sub:ects as a

homogeneous group is called mar'et segmentation.

As concern to "C2, the customers who re;uire cement in bul'

;uantity can buy 7athi Cement and those who want cement in small

;uantity can have Chottu 7athi Cement available in 'g, ) 'g, and *+ 'g.

ac's. enerally, builders use 7athi Cement but sometimes small pac's

are also re;uired for repairs so they can go for Chottu 7athi.

"C2 has segmented its mar'et as per the ;uantity of the cement in

the following way

F


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As per the ;uantity of the cement

HATHI EMENT HOTT; HATHI EMENT

9or constructions for repairs 3 small uses

Cement product

anufactures, bul' buyers

ar'et of "C2 is also segmented according to demand

Ma2et S. Se3+e$tatio$

)+M overnment of India

-+M E&port ar'et

+M "cattered ar'et

F=


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)6PRICING POLICY

rice means the value of the product in terms of money. "ome

times price is the dependable factor for the success of the product of

failure. It is difficult to sale a product with high price and if product is

said at low prices it will affect the profitability, more over the main

ob:ective of the firm, that is to earn a profit very much depends upon the

correct price decision.

The "C2 has followed such a pricing policy, which can promote

the scales considerably while fi&ing the right price the company ta'es

into account cost of production. revailing mar'et trend pricing policy of

competitors etc.

"C2 has adopted fle&ible and reasonable pricing policy. At the

end of every month, directors of each 8one, mar'eting officers meet

together at the mar'eting office. They chec' the suitability of the current

price in the right of current degree of competitors, changes in demand

advertising and other services etc. then thy fi& up their product price.

)+


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/6MARKET RESEARCH

The American mar'eting Association has defined mar'eting

research as %The gathering recording and analy8ing of all facts about

problem relating to the transfer and sale of goods and services from

producers to consumers(. ar'eting research involves a study of

consumer performances, habits and attitudes. It helps us to decide how

mar'et operations should be directed. It also involves an e&amination of

trends, so that its findings indicate, the future pattern of the mar'et andassist in shaping mar'eting policies.

In "C2, regular survey of dealers and customers are done to

identity the need and e&pectation of the customer to mar' positive and

negative points of their mar'eting strategies and products. >y this way,

company comes to 'now about the mar'eting problems and remedies of

it.

)-


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06COMPETITORS

In the world of today, there is a competition in each and every

business. 7ence, the firm first ob:ective is not to ma'e profit but to

survive in the mar'et. Competitors are those who sell the goods and

service of the same and similar description in the same mar'et.

According to hilip otler %The best way for a company to grasp

the full range of its competitors is to ta'e the view point of buyer, whatdoes a buyer thin' about that which eventually leads to purchasing

something.

ain competitors of "C2 is as followsH 6

*. !?A#AT A>!?A CEENT

. ADIT$A >I#2A0" AA2 CEENT

-. 2 3 T CEENT

F. TATA "!C7 CEENT

)F


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16ADVERTISING

The American mar'eting Association has defined advertising as %

any paid form of non personal presentation and promotion of goods,

services or ideas by an identified sponsor(

"C2 advertise their product by the means li'e newspaper, wall

paints, and hoarding etc. with effective slogans, to stand first in the

mar'et and increase popularity "C2 has adopted many advertisingmedia.

"C2 advertise by distributing gifts to masons, contractors etc. i.e.

actual users of cement.

"C2 celebrate T7E 7AT7I !T"A on the festivals li'e Navratri.

Company distributes audiocassettes of #as arba free of cost and in that

cassettes slogans are also recorded for advertisement.

"C2 uses so many other advertising media also

*. Newspapers

. aga8ines

-. #adio

F. Lall aintings

). 7oardings

@. Audio isual Advertisement

B. ift Articles

. osters

))


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)@


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CONTENT


1. INTRODUCTION 6!

2. ORGANSISATION STRUCTURE 66

3. FINANCIAL PLANNING 6"

4. CAPITAL STRUCTURE 6$

!. RATIO ANALYSIS 6%

6. MANAGEMENT OF FI(ED ASSETS "!

". MANAGEMENTOF ORKING

CAPITAL ""

$. LEVERAGE ANALYSIS "$

%. PROFITABILITY & DIVIDING $

DISTRIBUTION

)B


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1-INTRODUCTION

9inance department is very important part for every organisation.

"uccess of any business depend upon the finance. It we say is the

business is the body then finance would be blood. As the blood is

re;uired to live a body then to run the business finance plays important

role.

"omeone rightly defines %if you have money, and you manage itproperly, you will ma'e more money( this means management is

necessary for any industry.

In economic activity finance is essential part. 9inance

management is concerned with controlling and planning of the firms

financial resources. According to ?oseph and assie, %financial

management is the operational activity of a business that is responsible

for obtaining and effectively utili8ing the funds necessary for efficient

operations.

"o we can say that finance is the central point of any organisation.

)


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!-ORGANISATION STRUCTURE

"C2 has 'ept separate department of finance. The organisation

chart of finance department of "C2 is as followsH 6

ice resident 1finance4

eneral anager 1finance 3 AGc4

Dy. eneral anager 1finance 3 AGc4

"r. anager 1Accountant4

As. anager "r.


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#-FINANCIAL PLANNING

9inancial planning is very necessary for smooth running of

business. >usiness small or large cannot be carried on successfully

without proper arrangement of capital in the finance planning not only

the planning is done for spent of money but also planning is made for

sources of finance and fund. In all the organisation finance planning

policies of finance, delegation of finance are planned.

"C2 plans finance as follows1. Dete+i$i$3 'i$a$(ial ObBe(tive%

"C2 firstly determines for how long period the finance is

re;uiring i.e. for short term of long term ob:ectives. >y considering the

financial ob:ective, "C2 ma'es a determined effort to arrange the

necessary funds at proper time, which is necessary for the business.

!. 'o+"latio$ 'i$a$(ial Poli(ie%

After words, "C2 formulates financial policies to be followed by

the planners to achieve the financial ob:ectives.

#. Develo&i$3 'i$a$(i$3 Po(e8"e

Developing financial procedure relates to the control and

administrative of financial activities. "C2 subdivides financial activities

and delegates authorities to subordinates to perform such activities.

4. Reviewi$3 'i$a$(ial Pla$

"C2 reveals plan for time to time in the light of changing

economic, social and business environment.

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"C2 framed its capital structure as followsH 6

Pati("la% A+o"$t 7i$ la(%9

"hare capital F,FB.@

#eserve 3 "urplus ,@).

"ecured loan @,=F.-F

Deferred ayment Credits )=F.@+

!nsecured 2oan FF.++

TOTAL 4C


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LIF;ID RATIO

LiG"i8 Ratio LiG"i8 A%%et% LiG"i8 Liabilitie%

5eeC

LiG"i8 A%%et% "e$t A%%et% - I$ve$toie%

9or the year ++- O ))@.F- 6 F+.-)

O @*-@.+

9or the year ++ O -+-.@* 6 F+@.@

O )[email protected])

LiG"i8 Liabilitie% "e$t Liabilitie% - ,a$2 Ove8aft

9or the year ++- O *)=).FF 6 @).*-

O *)B.-*

9or the year ++ O *=+=*.F- 6 =.)B

O *=++*.@

@F


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LiG"i8 Ratio

9or the year ++- O @*-@.+ G *)B.-*

O +.- H *

9or the year ++ O )[email protected]) G *=++*.@

O +.-* H *

o++e$t = 2i;uid ratio indicates the cash available to meet the

immediate payments. The ideal li;uid ratio is * H *. The li;uid position

of the "A!#A"7T#A CEENT 2TD. is not so good but the position

in ++- is better than in ++.

'IED ASSETS T;RNOVER RATIO

'i>e8 A%%et% T"$ove Ratio Sale% Net 'i>e8 A%%et%

9or the year ++- O +--B.-) G -@[email protected]+

O +.)) H *

9or the year ++ O *F).@* G F**+.@*

O +.)- H *

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o++e$t = This ratio indicates the conversion of fi&ed assets into sales

during a year. The ratio of "A!#"7T#A CEENT 2TD. indicates that

for * unit of sales +.)) unit of fi&ed assets is consumed in the current

year.

5OR?IN* APITAL

5o2i$3 a&ital Net Sale% Net 5o2i$3 a&ital

9or the year ++- O +--B.-) G B-=@.+*

O .BF H *

9or the year ++ O *F).@* G *+BB.

O .+ H *

o++e$t =9rom the above calculation it can be seen that for * #s. of

sales +.-@ #s. and +.F= #s. of wor'ing capital is re;uired.

@@


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DE,T EF;ITY RATIO

Debt EG"ity Ratio Total Lo$3 Te+ Debt

Sae Hol8e '"$8%

9or the year ++- O +@+.)- G *=--.*F

O *.)= H *

9or the year ++ O *@+=.BF G *@F).*F

O *.FB H *

o++e$t =The debt e;uity ratio is determine, how to ascetain thesoundness of the long6term financial policy of the company.

@B


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'i>e8 A%%et% *o%% ,lo(2 De&i( Net ,lo(2

9reehold land *B. 66 *B.

>uildings *--B.F @-.) *-+F.@

2easehold land *.F) 66 *.F)

?etty6 civil wor' *B*.-) -+.)) *F@+.+

#ailway sidings

Leigh bridge FB.B* *@@.=- +.B

Later supply

Installations *).+ *-=.B+ F).-

Electric installation *@.)+ @B.F- =FB.+B

lant 3 achineries -*@=.)- *F+F.- *B@+).*

#olling stac' 3

2ocomotive @*.)+ F*.)- *=.=B

9urthur 3 office

E;uipments *@*.F* B@=.F) -=*.=@

"hip, otorcars 3

Truc's F)@.+* F.) *-.F-

Total #0)#./ 1

@=


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-MANAGEMENT OF ORKING CAPITAL

If the fi&ed assets are bond of the company then current assets

would be circulating blood of the company.

Current assets mean the assets, which can easily be transferred

into cash with in the year. In company number of transactions are made

i.e. related with the current assets for e&ample purchasing of raw

material, salary, wages etc.

There are two concept of wor'ing capital is as follows.

1. *o%% o$(e&t

According to gross concept the firm0s total investment in

current assets.

!. Net o$(e&t

According to net concept e&cess of current assets over the

liability.

The management of wor'ing capital of "C2 limited. Is done as

followsH 6

1. I$ve$toy Ma$a3e+e$t

In "aurashtra cement ltd. the record of investment is 'ept

separately. In this record the receipt of inventory, uses of inventory and

out department to control the inventory.

!. a% 6 ,a$2

In "C2, to manage the cash 3 ban' there is to separate

department but this wor' is done by the finance manager.

#. Re(eivable

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Now days credit policy is e&it every where. In "C2 they

also 'eep record of credit sales separately.

$-LEVERAGE ANALYSIS

The dictionary meaning of leverage refers to %an increased means

for accomplished some purpose(. Now a days the term leverage has

special meaning. It is used to describe the firms ability to use fi&ed cost

assets or funds. To magnify their return to its owners. Christy and #oden

define leverage as the tendency for profits to change at a faster rate than

sales.

There are fundamentally two types of leverages.

*. IT4. The operating

leverage ta'es place when a change in sales produces a greater change in

E>IT.


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The firm is solid high degree of operating leverage when employs

a greater amount of fi&ed cost and a smaller amount of variable cost. IT

E>T

B


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Degree of financial leverage H 6 ercentage change in E"

ercentage change in E>IT

"C2 suffers the losses, so ti is not possible to calculate financial

leverage.

%-PROFITABILITY & DIVIDENT

DISTRIBUTION

The main ob:ect of any company or business unit is to earn profit.

In the :oint stoc' company when company ma'es profit this profit is

divided into the owners i.e. share holders.

In the presence it is not wrong to say that cutthroat competition

prevails in the cement industry. >ecause government provides various

incentives to the new entrepreneur who is interested to establish cement

industry.

As far as "aurashtra cement ltd. is concerned the plan is old so the

cost of production is very high and because of competition they follow

demand and competition. ricing policy moreover mar'eting is not sogood they suffer from the competitive so they are mar'ing loss.

"aurashtra cement ltd. has not made any profit for the last five

years so there is no distribution of dividend.

B-


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BF


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RESEARCH METHOLOGY

#esearch is the application of human intelligence in systematicmanner to a problem. According to C.A. oster % #esearch includes a

study of human group relationship.

According to .. $oung, we may be define, research

methodology as scientific underta'ing which means of logical and

systemati8ed method, aims to discover new facts or variety old facts and

to analy8e their se;uence interrelationship case of e&planation and

natural terms which govern them.

#esearch methodology means the way through which a research

progress or a :ob data collecting goes on. There are so many types of

research methodology. "ome of them are as followsH 6

uestionnaires

Chec'list


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"ources of Date

Internal sources E&ternal source

rimary sources secondary source

I$te$al So"(e%

"uch type of data0s are always available in the boo's of

organisation e.g. sales production, salary, wage, dividend profit etc.

E>te$al So"(e%

Lhen the data are collected from the outside the organisation

without the support of records of the company, they are called e&ternal

sources. The e&ternal sources. The e&ternal sources fall into two

categories.

I rimary data

II "econdary data

rimary data are original and first hand information. rimary data

means those data which have to analy8e and second one it means

secondary data are already analy8ed in some e&tent. Thus, secondary

data are second hand information.

Le got information at general data about the company.

B@


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BB


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FUTURE PLAN

The future plan means the pro:ect that will be underta'en infuture. In other words it means the ob:ect. I.e. determine now and gets its

result in future.

Now a days the company suffers from the losses. >ut it does not

mean that there is no chance of future progress.

As we all 'now that the cement is a basic necessity of and

constructional activity. The need or demand of cement increases day by

day from this angle we may say that "C2 would have better prospect in

future. Also "C2 e&ports its products in many foreign countries. It is

considered that "C2 enables to earn precious foreign e&change which

ma'es its future bright.

9rom seeing the above we can say that company0s future is bright

and its mar'et will increase.

B


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CONCLUSION

Conclusion is the final touch or finishing line of the whole reportand for the visitor unit. It was great and memorable visit. Lhich

imparted a lot of 'nowledge.

The "C2 is the company which suffers losses since few years. It

doesn0t mean that the wor'ing condition of the company is not good.

I found that there is a good administration in the firm and good

utili8ation of total capacity. Its personal department suggests that they

are aware from the value of personal and so manage them very

systematically. Its production department ma'es determine effort to

maintain the best ;uality of the product. ar'eting department always

shares beyond doubt. Le can say that financial department wor's so

well bet finance position of the company is not so good.

Now a days company suffers losses due to many reasons. >ut it

tries to progress slowly and gradually by reducing the losses. Le may

say that the present wor'ing condition of the "C2 is well.

I will give them all my heartiest best of luc' for their future.

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BIBLIOGRAPHY

E#". E

sarashtra cement ranavav

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