A Summer Training Project Report on Hari Om Textile Processing Mill

Details of Marketing Department:-

1. Marketing Environment (Competition)

2. Products of Company (Product Mix)

3. Packaging & Labeling

4. Pricing of Product (Pricing policy)

5. PLC & Marketing Strategy

6. Channel Distribution

7. Marketing Sells department at a glens

8. Promotional activities

S. V. PATEL COMPUTER SCIENCE & BUSINESS MANAGEMENT

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1. Marketing environment (Competition):-

The first point of the marketing department is “Marketing

Environment”. As a marketing manager we must consider the competition available in

the market. Marketing Environment indicates us at how much level the competition is

prevailing the market. If there is very high competition, then we have to struggle for

settle in the market. But if there is less competition, we can set easily in the market.

Now for textile industries, there is very tough competition in the

market because there are many competitors providing same service. Hari om is one of

them. But when they enter into the market, there were less competition and they could

easily set.

2. Products of company (Product Mix) :-

Product of the company means the product produced by the

company. Different companies produce different types of product.

Now for textile industry, there are mainly two types of products.

1. Sari

2. Dress

These are different different kinds of saris and dresses produced by Hari om. We have

discussed here a product Mix of Hari om as below.


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3. Packaging & Labeling :-

1. Packaging:-Packaging can be defined as all the activities of designing and producing

the container for a product.

2. Labeling:-The label may be a single tag attached to the product an elaborately

designed graphic that is part of the package. The label might carry the brand name or a great deal of information.

4. Pricing of product (Pricing Policy):-

Following is the process of setting price.a) Determination of cost per unit:

First, in a bulk quantity raw material is taken. Cost of this raw material is calculated.

Now, Labour hours are calculated to manufacture the product and total labour cost is also calculated.

Total time used to manufacture that product is calculated and on basis of that other total cost are calculated, like electricity used, fuel, oil, land, tools etc. which are used to manufacture that product.

Costs of inspection of quality, plant maintenance, transportation cost are also calculated.

Now, calculation of total of above cost is done.

Total number of items manufactured is counted.

Total cost per unit is calculated by dividing the total cost by number of items manufactured.

b) Determination of price per unit:

After determining the cost, a profit percentage which the firm wants to incur will be added which can provide a profit to firm.

The price must be equal to or more than the cost per unit. The firm must earn profit by which it can service in the competition.


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5. Channel of Distribution:-

Products do not sell their goods directly to the final user, between them stands a set of

intermediaries performing a variety of functions. These intermediaries constitute a

marketing channel also called a trade channel or distribution channel. Formally,

marketing channels are sets of interdependent organizations involved in the process of

making a product or service available for use or consumption.

Channel Level:

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

intermediary levels to designate the length of a channel.

Hari om is not producer or intermediary because it get raw material from the parties for

dying and returns it to the same party. It does not purchase or sale any product. It just

provides one type of service.

Channel Levels:-

There are 4 types of channel levels which are given below.

Zero Level Channel: - It consists of manufacturing selling directly to the final

customer. It is also called direct marketing channel. In this there is no intermediary.

One Level Channel: - A one level channel contains one selling intermediary such

as a retailer. There is only one intermediary between manufacture and consumer

called retailer so it’s known as one level channel.

Two Level Channels: - A two level channel contains two intermediaries. In

consumer market, there are typically a wholesaler and a retailer.


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Three Level Channels: - A three level channel contains of three intermediaries. In

consumer market, there are typically a wholesaler, semi-wholesaler and retailer.

Note: - These are simple levels of distribution channels. This channel could be any type

like, in one level channel it is not necessary to have only retailer, and there may be only a

wholesaler.

Hari om uses three types of distribution channels which are given below:-

One Level Channel:- Manufacture Wholesaler Consumer

Two Level Channel:- Manufacture Wholesaler Retailer Consumer

Three Level Channel:- Manufacture Wholesaler Semi- Wholesaler Retailer Consumer

7. Promotional Activities

Sales Promotion:-

Sales promotion is a key ingredient in marketing campaigns, consists of a

collection of incentive tools, mostly short term, designed to stimulate quicker or greater

purchase of particular products or services by consumers or the trade.

For sales promotion, firm provides the incentive if sampling to distributors

or wholesalers. They use this sample to show to their customers, if they demand for this

particular product, distributor demands that product from the firm. Then the firms

manufacture those products to fulfill the supply.


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Direct marketing:-

Direct marketing is the use of consumer direct (c.d) channels to reach and

deliver goods and services to customers without using marketing middlemen. These

channels include direct mail, catalogs, telemarketing, interactive T.V., web sites and

mobile devices.

Above types of situations, the consumer directly contacts (face to face) the

manager of the firm to buy the products.

For direct marketing, following methods are used:

E-mail

Mailings or courier

Face to face contact

The above two methods are commonly used when the end consumer who require the

product in wholesale had already transacted in past by this firm.

Advertising:-

Advertising is any paid form of non personal presentation and promotion of ideas,

goods or service by an identified sponsor.


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Introduction

Definition:-

“HUMAN RESOURCE MANAGEMENT is a management process of

procurement, development, compensation, integration and maintenance and

reproduction of HUMAN RESOURCE in the organization so that the goals of an

organization are achieved in an effective and efficient manner.”

In simple sense, “HUMAN RESOURCE MANAGEMENT refers to a

set of polices, practices and programmers, designed to maximize both employees as

well as organizational goals.”


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ORGANIZATION STRUCTURE:


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Owner

Managing Director

General Manager

Production Manager

Marketing Manager

Personnel Manager

Finance Manager

Masters

Supervisor

Workers

VISION

“To attain organizational excellence by developing and inspiring the true

potential of company’s human capital and providing opportunities for growth, well being

and enrichment.”

Mission of Human resource Management:-

The department has set up following mission statement as guidelines for their

department.

To achieve collective spirit for to cover competence environment.

To upgrade “Quality of work life of employees”

Objective of Human Resource Department

Nova petrochemical has some objective

1. “To maximize employee satisfaction in the organization”

2. “To keep communication channels open thus moving towards open Door policy

of management”

3. “To enhance adaptability and provide organization development interventions

towards organization change”

4. “To make performance appraisal more transparent & objective”

5. “To understanding the internal & external factors to keep the industrial relation

situation under control, i.e. productive industrial relation”


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RECRUITMENT

“Recruitment is a process to discover the sources of manpower to meet the

requirement of the staffing schedule and to employ effective measures for attracting that

manpower in adequate numbers to facilitate effective selection of an efficient working

force.”

Recruitment is a process of finding and attracting capable application for

employment. The process begins with when new recruits are sought and ends when their

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

are selected. Hari om does not have a systematic recruitment procedure for recruiting

shop floor worker, master sometime and sometime do not fall in procedure for

recruitment and section. Only other manager and employees fall in the recruitment

process, which is also done when Requirements Company might recruit people by

referring to internal sources only.

Requirement Process of the Company

Estimating number and type of people needed.

Considering source of recruitment

Activation of recruitment resources

Evaluating and controlling the recruitment process that is selection of best possible candidates, without incurring many expenses.


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SELECTION

Selection means choosing an eligible candidate from all the applicants. “Selection is the

process of differentiating between applicants in order to identify and tire those with a

greater likely hood of success in a job.”


Placement

PhysicalExaminat

ion

Final Interview

Reference

Check Interview

PsychologicalTest

Application

Blank

Preliminary

Interview

Reception of

Applications

Selection

Process

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Selection Process of the Company

Mostly, selection will be done with regard to references i.e. when the

company requires skilled or unskilled workers, a notice is put on the notice board so that

they can see it and brings the workers to whom they know.

Advertisement will be also given in the newspapers. Government

Employment Exchange will be also one of the major sources of recruitment.

An interview will hold after having been received the application of the

candidates. In addition to filling up the application blank, the candidate is also supposed

to pass through the color blindness Test, color Recognition Test, Design observation

Test.

The candidate is called for final interview after having passed the various

tests. In the interview aptitude, intelligence, background and adaptability of the job is

scrutinized properly.

TRAINING

Training makes the employees aware about the nitty-gritty of their jobs and

the work environment in which they are supposed to work.

“Training is a process of increasing the knowledge and skill for doing a

particular job”. It is an organized procedure by which people; learn knowledge and skill

for definite purpose. The basic purpose of training is to fill the gap between job

requirements and present knowledge level of employee.

Hari om does not conduct any training programmers because in this type of

industries there no needs of special training programmer. Here training is provided during

the working period. They provide training to their workers only for three days before

finally appoint for work. And for the upper level like managers they gives them seven

days training to be aware them to the company.


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PROMOTION

“Promotion results in an improvement in pay, prestige, designation and

responsibilities of an employee within his or her organization.”

“Promotion refers to advancement of an employee to a higher post carrying

greater responsibilities, higher status and better salary.”

Promotion is done for a vacate place. For that the company has two

option either it recruits external person or elevates the experienced and able employee

from within. Out of two, Hari om has applied the latter policy. The rational behind the

policy is to increase the moral and loyalty or employees to the company.

PERFORMANCE APPRAISAL

“Performance appraisal is the systematic, periodic and an impartial rating of an

employee excellence in matter pertaining to his present job and his potential for a better

job.”

“It is a systematic evaluation of the individual with respect to his or her

performance on the job and his or her potential for development.”

Hari om does not have the structured performance appraisal system. Workers

are simply apprised by their seniors and are given the increment on the base of

recommendation of seniors.


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WAGE AND SALARY ADMINISTRATION

The company follows the minimum wage scale declared by the government.

Employees at the Hari om can be discriminated in three categories

1. Skilled

2. Semi-Skilled

3. Unskilled

The minimum daily salary is Rs. 63.10/- for unskilled labours. The

government declares dearness allowance and management decides salary accordingly

every month. The Labour union is also involved in process of determining salary.

Aggregate monthly salary of Rs. 1500/- or Rs. 2000/- is given to the workers as per their

experience and skills.

Gross salary:-

1. Basic salary and

2. Dearness allowances.

Bonus, provident Fund and Employee’s share of income is provides on basic

salary. Apart from this, medical (Quarterly), book and periodical and conveyance

allowance is given to the employees every month.


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WELFARE ACTIVITIES

Welfare means to make good things to others. Co. will be done some

welfare activities such as education, home loans, health & safety etc. by doing these

efforts co. can impress their labours and rate of turn over and absenteeism will reduced.

If the co. provides such kind of facilities than nobody would like to leave the

organization.

1. Provident fund:-

For provident fund, 12% is curtailed from the employee’s salary and company

contributes 12%.For unforeseeable requirement, the employees granted credit up to

30% of their contribution in the provident fund. The deduction is made from very first

day of the job.

2. House Rent Allowance:-

This allowance is meant for new employees for the period of 240 days.

3. Leaves:-

In addition to a holiday in a week. They are also off-days on particular

festivals. There are 39 days in a year when the employees get paid even on a holiday. The

working days are taken into account and dearness allowance is paid accordingly.

Leave balance record register is also kept here, the leave is recorded and the

remaining is carry forward in the next year.


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4. Attendance:-

The company for marking absence and provides attendance card. The

attendance is recorded in the muster book of Gujarat factory Rules 1950.

5. Pension:-

The employee’s share of contribution is siphoned from salary and 12% it is

transferred t o A/c No.10 which is known as pension.

6. Loans:-

Advance company loan, Society Loans, Social contribution is provided directly

subtracted from the pay by the company.

7. Life insurance:-

The company secures the Life insurance for the workers and then directly

passes to L.I.C.

8. Medical expense:-

It is 8.33% of total one-month salary provided in the month of March and

December consecutively.

9. Labour union:-

RAJAN PATEL is the union “no strikes” which proves that there are no

disputes and conflicts between the management and labours. Thus the relationship

between the management and the union is harmonious and congruous.


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10. Canteen:-

There is a canteen in the compound of the company premises. The canteen is

mainly for the employees. Anyone, wants to eat in the canteen, has to buy coupons. There

are different coupons for tea and lunch. There coupons are at reasonable price. The

canteen provides lunch at noon and tea or coffee whenever desired.

11. Medicare:-

The company possesses its own dispensary at the plant. If any worker is injured

(minor), he is treated there and then at the plant. Event if a worker falls ill at the plant, he

is given proper treatment.

The company bears all the expenses of the hospital. Even in case of a serious

illness or operation, the company bears all the expenses of employee. If any family

member of an employee falls sick or meets with an accident, the company gives him

money as well as hospital facilities.

For this purpose the company has made a “Trust” from which the money is given.

Every worker has to put a very small amount in this “Trust” every year.

12. Security:-

The company has employed professional security-men. They keep a check on

anyone who comes and goes out of the company. No car is allowed in the premise of the

plant without a gate-pass. All the employees are given Bus passes. Only if they have a

bus-pass they are allowed entry or exit of the plants. Janitors HUMAN RESOURCE

DEPARTMENT handles this entire job.


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Introduction

The finance department plays a vital role in the organization. As to carry

on each and every activities of the organization there is need of finance. Finance is well

known as the lifeblood of any business. From inception to closure of any business unit

finance is required. It may be defined as the base on which the whole business structure

depends. Once the business is started it needs funds for production of goods & services as

well as their distribution. The efficiency of production & marketing operations is directly

influenced by finance. Finance is the master key which provides all sources for activities

of production, distribution etc.

Definition

“FINANCIAL MANAGEMENT may be defined as that area or set of

administrative functions in an organization which relate with arrangement of cash &

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

as possible.”

“FINANCIAL MANAGEMENT is the operation activity of a business that is

responsible for obtaining & effectively utilizing the fund necessary for efficient

operations.”

FINANCIAL MANAGEMENT emerged as a distinct field of study at the turn

of the 20th century.


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PLANNING

The process of estimating the funds requirements of a firm and determining the

sources of funds is called financial planning.

The following steps are involved in financial planning

(1) Past Performance:-

Analysis of the firm’s pat performance to ascertain the relationship between

Financial variables and the firm’s financial strength and weakness.

(2) Operating Characteristics:-

Analysis of the firm’s operating characteristics – product, market,

Competition, production and market policies etc.

(3) Corporate Strategy and Investment Needs:-

Determining the firm’s investment needs and choices, given its growth

Objective and dividend policies.

(4) Cash Flow from Operations:-

Forecasting the firm’s revenues and expense and need for funds.

(5) Financial Alternatives:-

Analyzing financial alternatives within its financial policy and deciding the

appropriate means of raising funds.

(6) Consequence of Financial Plans:-

Analyzing the consequence of its financial plans for the long term health

and survival to firm.


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CAPITAL BUDGETING

We will deal with expenditure of fixed nature. They will purchase assets,

which are helpful in the running of their business. These assets will be of fixed

nature. Hence, they will adopt operating capital budget as the capital budget decision

making level. They will only concentrate on those requirements which are needed for

operating and working of the organization like purchase of machinery, replacement of

old PC, purchase of office equipments, construction of new building, etc. They will

concentrate on expansion in the existing line of business and also on statutory

requirements, which help the firm to run the business smoothly.


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WORKING CAPITAL MANAGEMENT

Working capital may be blood of a business or company. The

success of a business depends on working capital to ensure such needs. And on other

hand, Ruff management of available working capital can lead not only to loss of profit

but also down fall of a business. The study of working capital is helpful to take any future

corrective action. Among many such analytical tools ration analysis is a simple but

effective tool available to the management.

1. Working capital has two concepts

Gross working capital

Net working capital

2. Credit Policy

Our Mill is large working enterprise. So Mill having supplier and buyer. It

buys lignite, chemical & colours in heavy quantity but paid all payment in cash

because mill having healthy working capital. Mills make a job work on raw material.

It gives 30 days credit policy to custom.


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Balance sheet as on 31/03/2013

Liabilities Amount (in Rs.) Amount (in Rs.)

Capital AccountRajeshkumar P. Bhagat 12130315.56Secured LoanHDFC Bank 151581.26The G.I.C. Bank 10390028The GUJ.IND.CO-OP.B.L.(BFL 882) 1292728.47The GUJ.IND.CO-OP.B.L.(BFL 866) 627929.92The GUJ.IND.CO-OP.B.L.(PFL 14) 1445208.72The GUJ.IND.CO-OP.B.L.(Loan-889) 1406649.67 15314126.04Unsecured LoanD.M. Patel 125000Nayna M. Shah 500000From family members 4605559.24 5230559.24Current LiabilitiesCreditors for Exp 605299Creditors for Goods 10418073.63B.O.D. 645983.86 11669356.49ProvisionProvision for Taxation 11159Provision for Exp 190826 201985

TOTAL 44546342.3

ACC YEAR 2012-13

Assets Amount (in Rs.) Amount (in Rs.)

Fixed AssetsBorrowing 280255Computer 501300Construction A/c 538214Electric Fitting 167902Furniture 41891Generator 890501


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Land 5851965Lari Purchase 30000Machinary (new) 1895489Machinary (old) 13892564Motor Car 3794824Telephone System 12670Weight Machine 6900 27904475

Investment 58737Current AssetsDebtors 2699059.5Bad Debt 93225Cash in hand 578774.37Closing stocks 771899Goods in stock for Protection 659Receivable 28347Employee A/c 13540Bank A/c 224356.46 4223410.33Loan & AdvanceMaa Vaishnavdevi 150000Manijesh Baman 2700000Nirmalaben P. Bhagat 22720Sr. Kanteshwar Tex. 125000Bipinchandra 11000 3008720

TOTAL 35195342.33


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RATIO ANALYSIS

Meaning of ratio analysis

A ratio is only a comparison of the numerator with the denominator. The term ratio

refers to the numerical or quantitative relationship between two figures. A ratio is the

relationship between two figures and obtained by dividing the former by the latter.

Ratio is designed to show how one number is related to another. It is worked out by

dividing one number by another.

Importance:

1. Ratio act as an index of efficiency of firm.

2. They serve as an instrument of management control.

3. They are useful in evaluating performance.

4. They facilitate and help in forecasting future events.

5. They help management in exercising effective decision.

6. They facilitate intra & inter firm comparison.


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Current ratio = current assets / current liabilities

= 4223410.33 / 11669356.49

= 0.36 1

Gross profit ratio = gross profit * 100 / total sales

= 6196182 * 100 / 32338050

= 19 %

Net profit ratio = Net profit * 100 / Total sales

= 1957105 * 100 / 33308149

= 5.9 %


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ACCONTING POLICIES OF HARI OM TEXTILE PROCESSING MILLS

1. The accounts are prepared on historical basis and as a going concern. Accounting

policies not referred to otherwise are consistent with generally accepted

accounting principles.

2. Fixed assets are value at cost of acquisition. Cost means purchase price and other

purchased related expenses for bringing the assets into working condition for its

intended use.

3. Closing stock of raw materials has been valued at cost price. There is no finished

goods hence a question of its valuation does not arise.

4. No depreciation has been provided on fixed assets in the book of account.

5. Expenses are accounted for on mercantile basis but some expenses due to their

peculiar nature are accounted for on cash basis.

6. There are no prior period or extra ordinary expenses debited to profit loss account.

7. Balance of debtors, creditors, loans, advances and unsecured loans are subjected

to confirmation.

8. Figures have been rounded off to the nearest rupee.


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BIBLIOGRAPHY

BOOKS

1. BOOK : Marketing management

AUTHER: Philip kotler : Marketing, Marketing management, channel of

Distribution etc.

2. BOOK: Financial Management

AUTHER: B.S. Shah

3. BOOK: Human resource management

AUTHER: K. aswastahapa : Human resource management, recruitment,

Training, selection, etc.

4. BOOK: Production Management

AUTHER: K. aswastahapa : Production, Production Management, plan layout, Material handling equipment, etc.


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SWOT ANALYSIS

Strengths

1. Effective & men power availability.

2. Plant location is in good area.

3. Take the benefit of opportunity at the right time.

Weaknesses

1. Lake of modernization.

2. Somehow rude behavior of owner of employee.

3. The do not have good approach to work.

Opportunities

1. Add of new technologies.

2. Modernization.

Threats

1. Cut troths competition.

2. Presently the textile industries are passing from recession.

3. Meet competition from unorganized & small scale manufacturing industries.


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CONCLUSION

This report is prepared during the summer training under taken at HARI OM on

partial fulfillment of degree in “B.B.A”. We have learnt the practical implication of the

concept; we have studied in our syllabus. We really felt that there is vast difference

between theory & the practical implication.

Actually we learnt many things deeply which we cannot find on paper but only

can feel logically. Having an interaction with such a highly experienced person is a life

time memory for us. The treats we have observed in them have made a great impact on

us. It is true that to get the success in life, two things are necessary commitment &

confidence. We would like to thank HARI OM for giving us an opportunity to learn

management skills by taking under their qualified and highly experienced executives; it

was our pleasure to get training in such a reputed company.


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A Summer Training Project Report on Hari Om Textile Processing Mill

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