dipesh n shah
TRANSCRIPT
APROJECT REPORT
ONVIMAL PAINTS, MEHSANA
Submitted to:- Hemchandracharya North Gujarat University
Patan.
Guided by:-
Mr.Amit Patel
Prepared by:- Mr. Dipesh N. Shah S.Y.B.B.A
Roll No:Exam No:
Smt. S.B. Patel Institute of Business ManagementVisnagar
Academic year 2006-07
1
PREFACE
The study of practical training at the S.Y.B.B.A. level is the second step into
the industrial world, exists out side the college roots. It is supplement to the
theoretical of managerial world so, to be acquired with this aspect. I have
visited Vimal paints, Mehsana, especially for following department in detail.
Production Department
Personnel Department
Marketing Department
Finance Department
Practical knowledge plays a vital role in the market and thus enables the
student to know about the function and working of the unit. This training has
given me something new that what I had done during my study.
I had great and wonderful experience at Vimal Paints, Mehsana.
Mr. Dipesh N. Shah
2
ACKNOWLEDGEMENT
I am really thankful to Mr. Mahendra Patel, the finance
manager of VIMAL PAINTS, MEHSANA, for his co-operation and
who gave vital information about project.
I am very much thankful to Dr. R.N. Vadher, the principal of
the institute for giving me an opportunity to look at the practical side of
the business and helping me for taking permission to conduct the training.
I am very much thankful to my collage professor Mr. Amit
Patel for providing guideline for this project report.
Mr. Dipesh N. Shah
3
EXECUTIVE SUMMARY
It has been rightly said that if a business manager is able to sense the
opportunity and environment, the success is a good as his, with the advent of
globalization and growth in technology. It is equally important to succeed, only
information and plans will not bring result but a strong orientation towards
implementation of those plans in each and every functional area of organization
at micro level is required.
I come across to many parties during this whole project. As a result I
learnt a lot of experience about people and the four most important department
of the firm..
Shri. G. K. Patel, (B.Sc.Tech. with paint technology from university
department of chemical and technology –Mumbai.) had started Vimal paints
industry located on the golden Corridor of Gujarat having access to all the
major industrial centers of our country.
Vimal paints are a SSI (Small Scale Industry) unit and an ISO 9001
certified company certified by DNV-Netherlands.
Vimal paints active in the manufacture of decorative and architectural
coatings, Marine coatings for ship and industrial anticorrosive and protective
coatings for Chemical plants, offshore installations and the plants situated on
coastal areas.
4
CONTENTS
Sr. NO. PARTICULER PAGE NO.
1 GENERAL INFORMATION
1.1 HISTORY & DEVELOPMENT
1.2 GROUP OF COMPANY
1.3 COMPANY PROFILE
1.4 ORGASITION CHART
1.5 LOCATION CHART
1.6 LAYOUT CHART
1.7 MISSION OF THE COMPANY
2 PRODUCTION DEPARTMENT
2.1 INTRODUCTION
2.2 ORGANIZATION CHART
2.3 RAW-MATERIAL
2.4 PRODUCTION PROCESS CHART
2.5 PRODUCTION PROCESS
2.6 PRODUCT RANGE
2.7 QUALITY POLICY
3 PERSONNEL DEPARTMENT
3.1 INTRODUCTION
3.2 ORGANIZATION CHART
3.3 ABOUT THE WORKERS
3.4 RECRUITMENT
3.5 SELECTION
3.6 TRAINING & DEVELOPMENT
3.7 PROMOTION AND TRANSFER
3.8 FACILITY TO THE WORKER
3.9 WAGES AND SALARY
5
3.10 PERSONNEL RECORD
4 MARKETING DEPARTMENT
4.1 INTRODUCTION
4.2 ORGANIZATION CHART
4.3 DISTRIBUTION CHANNEL
4.4 ADVERTISING
4.5 COMPETITORS
4.6 SALES PROMOTION
4.7 PRODUCT MIX
4.8 PRICING POLICY
4.9 SALES
5 FINANCE DEPARTMENT
5.1 INTRODUCTION
5.2 ORGANIZATION CHART
5.3 CAPITAL STRUCTURE
5.4 FINANCIAL RATIO
5.5 GROSS PROFIT
5.6 OPERATING CYCLE
6 CONCLUSION
7 BIBLIOGRAPHY
8 ANNEXTURE
6
GENERAL INFORMATION
History & Development
Group of Company
Company Profile
Organization Chart
Location Chart
Lay-Out Chart
Mission Of The Company
7
HISTORY & DEVELOPMENT
Shri. G. K. Patel, (B.Sc.Tech. with paint technology from university
department of chemical and technology –Mumbai.) had started Vimal paints
industry located on the golden Corridor of Gujarat having access to all the
major industrial centers of our country.
When company was starting at 1989, it runs it’s business at local level
market. Then day-by-day the company covers the market to the nation level and
now, company often exports. To achieve high level of market, company has to
increase its production capacity.
In 1996 company reinstalled the new-advanced technical plant &
machinery for the higher production & meet the competition. For doing this
company had to invest large amount of capital.
Now, company has its own research & development department and
infrastructure facilities. Company also has good level of marketing network
8
GROUP OF COMPANIES
Vimal Electrical Company: -
Engage in the manufacturing of transformers, Buster and capacitors.
Vimal Pumps: -
Vimal Pumps is manufacturer of submersible pumps.
Vimal Cables Ltd.: -
Vimal Cables Ltd is manufacturer of P.V.C. winding wire & P.V.C. flat
cables for submersible pumps, Armored and PV.C. And unarmored power &
Control cables.
Vimal Oil & Foods Ltd.: -
Vimal oil & food ltd is manufacturing of edible oil exporting.
Vimal Dairy Ltd.: -
Dairy products like ghee, butter, milk, and cheese.
Vimal Microns Ltd: -
Pioneer in microns mineral, fillers used in polymer, paint, paper, and
rubber industries. Also exporting in a large quality to various Middle East
countries.
Vim coats Pvt. Ltd.: -
Manufacturing of various Alkyd Resins, Captured domestic market and
exporting to Middle East countries.
9
COMPANY PROFILE
Vimal Paints is one of the company from “Vimal Groups of companies”
which is a small-scale industry (SSI) started by technical qualified professional
Mr. G. K. Patel B.Sc. tech. (paint technologist) in 1989.
The head office and the plant of the company are located at Dediyasan
G.I.D.C., Just 5 Km. away from Mehsana city, acquiring an area about
22,000,59.Sq. Vimal paints is a SSI unit with an ISO 9001 certified company,
certified by DNV-Netherlands.
Company Name : Vimal paints Ltd.
Company’s Address : Vimal Paints Ltd.
Plot NO: 32,
G.I.D.C. Estate, Phase-II,
Dediyasan,
Mehsana-384002 (N.Guj.)
India.
Ph.: -+91-2762-59401 to 403
Fax: - +91-2762-59404
Registered office : As above
Establishment Year: Vimal paint was established at 1989 under
partnership act
Organization Structure : Flat organization.10
]
Managing Partners : G. K. Patel
K. K. Patel
H. C. Patel
G. M. Patel
C. I. Patel
G. S. Patel
Managers : Hiteshbhai Patel (Gen. Mgr.)
J. K. Upadhayay. (Mkt. Mgr.)
Subhashbhai Alex (Adm. Mgr.)
Mahendrabhai Patel (Fin. Mgr.)
Auditors : M/S M. M. Salvi & Co.
Chartered Accountant
Mehsana.
Bankers : S.B.I., Mehsana Branch
Dena Bank, Mehsana Branch
Urban Bank, Mehsana Branch
B.O.B., Mehsana Branch
11
ORGASITION CHART
12
Managing Partner
General Managers
H.R.M. Manager
Employees
Administrative Manager
Finance Manager
Asst. F. Mgr.
Accountant
Clerks
Computer Operative
Excise In chargeAccount In chargeDispatch In chargePurchase In chargeAssistant ClerksComputer OperativePeons
Production Manager
Supervisor R. & D. In charge
LaborsLab. Assistant
Marketing Manager
Asst. Manager
Depot Manager
Sales Representative
LOCATION CHART
13
Vimal Paints Industry
Ashirvad Equipment
ROAD ROAD
R O A D
HIGH
WAY
PLANT-LAYOUT CHART
14
Storage Waste & Disposal
R. & D. Lab.
Passage
Production Plant
SpaceForExpansion
Raw-material
storage department
Passage
Security Office
Gate
Parkingg
Garden
Office Building
Garden
GARDEN
Toilet
R
O
A D
N
MISSION OF COMPANY
Mission gives brief clear idea about the Company’s future plan.
Mission: -
“To be the best company in technology, quality, service for
imparting corrosion protection, quality, Colour finish and aesthetic
appeal to produced quality product and also make selling growth
very high.”
Consistent with mission statement Vimal Paints has embarked on a
TQM (Total Quality mgt.).
Make good name in the market.
15
PRODUCATION DEPARTMENT
Introduction
Organization Chart
Raw-material
Production Process Chart
Production Process
Product range
Quality Policy
16
INTRODACTION
Production department is a unit in which making some process on the
Raw material and transfer into final product production process of every unit is
depended on the size and nature of the company and quality of the product.
Production is a basic function of the firm as output point of view. As
there are so many products of this unit. The production almost depends upon
the automatic plants so company has small number of workers who are quite,
intelligent and hard working. Production is a combination of the four factor that
is land, labor. Capital and entrepreneur. In the plant three or four factors
combine that the production goes very high day-to-day and it give output.
Production of product works as a one cycle. It starts from purchase of raw
material and end up to output that means finish product.
17
ConversionInput Output
Feedback\Control
ORGANIZATION CHART
18
PRODUCTION MANAGER
SUPERVISOR R. & D. INCHARGE
LABOUR LAB.ASSISTANT
RAW-MATERIAL
The main raw materials, which are used to produce paint, are as
follows.
Raw material in percentage used for making paint:
Regin-50%
Pigment-10%-12%
Solvent-15%
Addictives-5%
Extender-18 to 20%
For making premier Colors:
Regine-30%
Extender-50%
Solvent-15%
Addictives-5%
19
Regin
Pigment
Solvent
Addictives
Extenders
Anteverting Agent
PRODACTION PROCESS CHART
Regin & addictives
Bed mill
Tank
Mixer (high speed)
Output
Tasting and packing
Dispatch
20
PRODUCTION PROCESS
The uses of the raw material for became a paints is well utilized by the
unit. Regin is important raw material for the production. First of all regin is send
to bed mill. Addictives also mixed with regin in bed mill. As addictives
extenders, Pigment or solvent any one of them is used in it. In bed mill the raw
material mixed and grained.
That mixer of raw material is discharged in tank. Then other material and
addictives likes as anteverting agent, dryer etc are added in it as per the required
quality of Colour. Now that mixer B sends to high-speed machine. In high
speeds that material mixing.
Now which mixer is getting from high-speed machine is called as Colour.
Now that output is send for testing and packing. At last the packed time are
stores in godown.
21
PRODUCT RANGE
Decorative/Architectural Paints:
Vimal World Primer White / Pink
Vimal Cement Primer White (Solvent/ Water/Thinable)
Vimal Red Oxide Metal Primer
Vimal Super Synthetic Enamel
Vimal Flat Oil Paint
Vimal Acrylic Washable Distemper
Vimal Air Draying Hammer finish
Vimal aluminum Paint
Vimal Synthetic Clear Varnish
Vimal Super Universal Stainers.
Two Pack Epoxy Coating:
Epoxy Zinc Phosphate Primer Grey/Red
Epoxy Zinc Rich Primer
Epoxy Zinc Chromate Primer Red/Yellow
Epoxy Mio Brown/ Grey
Epoxy Aluminum
Epoxy Finish (with shades ranges)
Chlorinated Rubber Coatings:
Conventional Coatings:
Heat Resistant Coatings:
Boiler Paints:
Miscellaneous:
Polyurethane Coatings:
22
Over and above the products on the standard Range of
Manufacture, Vimal Paint undertake manufacture of special paints designed to
meet customer’s specification. Vimal Paint also produces “Lapi” for Industrial
coating.
The Vimal Paint gives services only in the industrial paints. In this
product the technician gave information about the paints of the process of
painting. So the painting becomes more protective & effective.
Asian Paints produces a lots paints product more than Vimal. The
company has an 1150 Colour shade. The products are as under.
Today, different paints have development, specific to each under.
Asian Paints Company’s product & service is well & very much high
than Vimal Paints & Nerolac Paints.
23
QUALITY POLICY
Most of the industries produce products or provide a service with
intention to fulfill the requirement of frequently this is restricted to fulfillment
of ‘Specification.’ However, technical specifications do not give guarantee that
the expectation on a client is consistently & continuously fulfilled. This
necessitates shift from “quality oh end product” to “system quality” ISO-9000
series oh standard relate to quality system. It requires the manufacturers &
supplies to establish & maintain a documented “quality system” as a means oh
ensuring product/services conformance to specified requirements on continuous
basis. The ISO-9000 standard is significantly different from normal engineering
standard, which typically focus on product or material. Instead ISO-9000
attempt to standardize all business activities associated with Quality.
International Organization for standardization (ISO) introduced in the
year 1987. The ISO-9000 series of standards as a set of guidelines for
developing and demonstrating a documented Quality Management system.
24
PERSONNEL DEPARTMENT
Introduction
Organization Chart
About The Workers
Recruitment
Selection
Training & Development
Promotion & Transfer Policy
Facility To The Worker
Wages & Salary
Personnel Record
25
INTRODUCTION
Manpower is important stage of management, which deals with effective
control and with out man power proper development of industry dose not
occurs.
Personnel management concerned with development, compensation,
integration and manpower is main contribution to achieve the social, goals,
industrial goals and individual goals.
According to definition of personnel management it concerned with
trained and skilled personnel who effectively manage and operate the procedure
by which the industry can achieve its goals.
Manpower is most valuable asset of the business. Out of six Ms of
production man is most important part of business and factor of production.
Personnel power can help to achieve satisfaction for the industrial growth.
26
ORGANIZATION CHART
27
H.R. MANAGER
WORKERS
ABOUT THE WORKERS
The company has fully automatic plant for the production of a
product so the number of workers is less but it is enough for the company.
The total numbers of employees are about 26.
AUTHORITY EMPLOYEES
Higher level authority 4
Middle level authority 6
Workers 20
Higher authority includes the partners and managing directors.
Managers, clerks are in the middle level authority.
28
RECRUITMANT
The organization success depends upon the skilled and qualified
worker who chosen out of a number of applicants for the job requirement
has been regarded as the most important functional which is the unit want
this kind of person who want do work as Hartley and taking as a own
gains for the performance.
Vimal Paints has main two sources of recruitment that are as follow.
1) Internal sources
2) External sources
1) Internal Sources: -
A vimal paint sometimes uses internal sources of recruitment
which means promotion of worker from the lower rank to the upper rank.
In few cases Vimal Paints fill it’s vacancies by promoting the personnel
to the higher officer who is working in lowest level. This source of
recruitment is generally adopted to fill vacancies of middle and top level
of authority.
2) External Sources: -
At the time of expansion of the firm on where job specifications
cannot be met by the present employees, the employer has to go external
sources of manpower supply.
The Vimal Paints used outside sources areas follows.
i. Contacts through present Employees.
ii. Advertisement
29
SELECTION
Selection is the process by which the qualified personnel can be
chosen from the applicants.
Vimal Paints selecting their staff by following four steps if person
passes this four step then he can get the job.
The unit first of all had given advertisement of vacancies in
Newspaper and gives full details about post on its requirement. The
connected persons are applied for it and company choose best applicant
from So many applicant then after start process of selection of Vimal
Paints. The process of selection of unit is as under.
The process is divided in to following types of four step
30
1. First Interview
2. second Interview
3. third Interview
4. last Interview
31
1) First Interview: -
The unit takes first interview after getting the application in which
organization some preliminary question like, qualification, experience,
training, appearance, personal data etc. of the candidate and to obtain his
salary requirement. If candidate have some chance of being selection he
is given second interview.
2) Second Interview: -
Who had passed the first interview is chosen for the second
interview. In which knowing detail information about education,
experience, salaries and allowances, community, activities and other
information.
3) Third Interview: -
The persons who had passed the second interview are allowed for
the last or third interview, which is taken in Vimal, paints by the hire
authority. In this interview candidate give information about the job in
detail and also give training.
4) Last Meeting: -
If candidate are pass all the types of interview then he has most
probability to chosen as employees. But it is the necessary last meeting
and the final decision regarding job is taken in last meeting then after
candidate has provided job.
32
TRANING & DEVELOPMENT
Training is a systematic program of the organization, which aims to
increasing the attitudes, skills and abilities of the workers to perform specific
jobs. In the company give training by the various method like classroom
method, training through in go in other unit, on the job method.
Training is requiring for the getting best result and best performance for
the unit as well as quality of the persons.
33
PROMOTION & TRANSFER POLICY
Promotion policy:-
Advancement of employee with in an organization ordinarily labeled as
“promotion”, promotion involves movement of a person to a position of higher
status, more pay increased responsibilities, increased benefits and privileges in
the same organization. Promotion is a vertical move in the tank; promotion is
given on the basis of “seniority and merit”.
Vimal paint gives promotion on the basis of merit, attitude and skills of
the employees. Seniority to small extent is considered in Vimal paints.
However, this is not the critical factor.
The promotion policy of Vimal paints is based on the following
principles.
1) Its promotion policy is in writing and must be understood by all
employees.
2) The promotion policy is mentioned the basis of promotion
seniority and merit.
3) The promotion policy is lay down what percentage of vacancies
in higher post are to be filled up by promotion.
4) Scientific producer for evaluating employee performance is
followed.
34
Transfer policy:-
Transfer is the movement of an employee from one job to another
without involving any substantial change in his duties, responsibilities,
required scale status and compensation. A transfer is a horizontal on
lateral movement of an employee from one section, department, shift,
plant or position to another at the same or another place where his salary
status and responsibilities are the same.
Vimal paints transfer’s the employees into only replacement
transfer other units are transfer in various way like production transfer,
versatility transfer precautionary transfer, personal transfer, sectional
transfer, departmental transfer, interplant transfer.
The unit transfers its employees into one place to another place
only like production department to office or office to production
department its nominee but one types of facilities.
35
FACILITY TO THE EMPLOYEES
According to article 43, if the constitute of India. Human resources are
the most important & precious of all resources. Every company wants to get
more work by its worker and its only possible by giving motivation to its
employee, worker on staff. By getting such types of services on facilities worker
become motivated by company and take more interest in his work so by this
purpose Vimal Paints provide such types of facilities which are as under
1) Medical Facility:-
This company provides medical facilities to employee when
any employees become ill then company give a free medical
treatment. When employee becomes more ill or in accident case
company provides some portion of cost.
2) Picnic Facility:-
Every person have some capacity for its work and every
person want to some freeness, for this purpose company provide a
picnic facility for it’s employee for two days and this picnic hold
only once in a year.
3) Bonus to employee:-
Company gives bonus to the employee on the salary. Bonus
is a one of the facility for employee, which often known as ‘Diwali
Bonus’.
36
WAGES AND SALARY
Vimal paints gives daily-based wages to its worker is Rs\- 65 to
80.company provides Rs 3500-6700 to its middle level employee like, clerk,
accountant, supervisor, etc. The higher authorities are offered of Rs. 8000 to
12000 per month.
37
PERSONNEL RECORD
Record is piece of writing or a chart, which provides ready information in
which preserve evidence for future information regarding the employees of the
company. Then the time officer from the first day the duty prepares records.
The record contain
1) A copy of appointment letter.
2) Personal bio-data.
3) Changes and certificate of employee.
4) Net salary, incremental, day of works, leaves etc.
5) Record of his behavior.
38
MARKETING DEPARTMENT
Introduction
Organization Chart
Distribution Channel
Advertising
Competitors
Sales Promotion
Product Mix
Pricing Policy
Sales
39
INTRODUCTION
According to Philip kottler, “Marketing is the process of planning and
executing the conception pricing, promotion, and distribution of ideas goods &
services to create exchange that satisfy individual and organizational goals.”
Marketing management is responsible for organizing, directing, controlling all
marketing activities included in the process of marketing.
Marketing is viewed by many as being advertising, sales promotion or
merely selling and a in some cases, consumer research. Marketing management
performs all managerial functions in the field functions in the field of
marketing. Undoubtedly, advertising and sales people need an appreciation for
such close identification to a concept, which is far more than any of them alone.
And no wonder why critics of marketing often lash out at marketing functions
in India For, according to them, advertising, sales promotion and other such
expenditures are unwarranted an economy, which is characterized by shortage
of crucial resources.
40
ORGANIZATION CHART
General Manager
Marketing Manager
Asst. Sales Manager
Depot Manager
Sales Executive
Sales Representative
41
DISTRIBUTION NETWORK
We can say that consumer can purchase decorative paints directly from
the company or from dealer or from the retailer. Thus Vimal Paints applies o-
level (Direct Marketing), 1-level and 2-level distribution channel for its
distribution network. There are above 250 dealers of Vimal Paints in different
regions.
For the distribution of decorative paints, Vimal Paints uses dealers and
retailers, but the are not used for industrial paints distribution chart for industrial
paints for Vimal is an drawn below:
Agent
Company
Dealers
Retailers
Consumers
42
Vimal Paints has adopted different distribution channel for its industrial
paints. Here Vimal Paints directly sells its industrial paints to any industry or
through the help of agent. Agent brings company and purchase industry closer
for bargaining and for the successful transaction, Vimal Paints offers 5-7%
commission to the agent for his service.
Company Agent Industry
43
ADVERTISEMENT
Advertisement is the one of the most important tool companies’ use to
direct mass communication to target buyer and publics. In today’s market
situation to sale the product without Advertisement is impossible for any
company. Advertising places a significant role in awareness, creation and
attitude formation. Spending money for long time.
Advertising means non-personal presentation and promotion of a
product or service by any identified sponsor.
There are main 4 types of advertising.
1. Print Ads. : Ads in News paper, Magazines, Brochures, Mews Letters,
Pamphlets, etc.
2. Audiovisual Ads: Ads on Radio, T.V., Ads through Cable Connection,
Internet etc.
3. Pop Materials : Some materials seen at shop, like Stickers, posters,
series etc.
4. Outdoors Ads. : Wall paints, Board, posters, Hoardings etc., seen on
road.
44
At present, Vimal Paints sponsors a T.V. serial on Alpha T.V. channel. It
organized events. As an outdoor media, It gives printed spare wheel cover
for scooters to the public.
Advertisement
Awareness
Brand Knowledge & Image
Attitude towards the brand
Action
45
COMPETITORS
With the help of interview with the dealers the date belongs to the sale per year are
also collected and on that basis, market share of each brand has been carried out. The
following table and graph will help you to understand this point well.
Brand name Sales
Nerolac 38.68%
Asian paints 36.09%
Berger paints 03.75%
ICI 04.27%
Vimal paints 06.71%
Other 10.06%
Market Share each brand with the help of Pie Chart: -
Sales
Nerolac
Asian paints
Berger paints
ICI
Vimal paints
Other
46
SALES PROMOTION
Sales promotion is a short term, but very effective, tool for rapid
increase in sale. Sales promotion includes, Schemes, Offers, for dealers or
consumers.
The Vimal Paint Ltd is also doing sales promotion by giving the advertising
on the Wall Painting, Literature, and Pamphlets. And some of the sales
promotion is emphasis on the direct selling.
Sales Promotion at Dealers Level: Discount
Rebate
High margin
Gift
Sales Promotion at Consumers/Painters:
Discount Gifts Money back offer
Buyback offer
47
Asian paints have introduced rebate scheme for dealers, which
is described below: -
Purchase Rebate
(In Liters) (In Rs. Per liter)
50-100 Rs. 1
101-200 Rs. 2
More than 200 Rs. 3
Asian paints also offers gifts to dealers on Diwali Festivals. Nerolac
also gives Rs. 1 to 3 per liter after achieving the target. Berger paints also
offer up to Rs. 5 per liter at the various stages.
In the same way, Vimal Paints also offer rebate to the dealers.
Besides, it also offers schemes for painters.
Sales Promotion Diagram:
Manufacturer
Advertising Agency
Dealer
Retailer
Customer
PRODUCT MIX
In the product Mix price, size and the main uses of the product is given below,
Name Rs.\10 Liter UsesVimal Wood primer 510 Doors, windowsVimal cement primer 410 Plastered walls,
concreteVimal aluminum paint 470 Metallic SurfaceVimal BLR 7 532 Boiler interior, tubesVimal BLR 9 389 Piping, water tanks
No
No
Yes
PRICING POLICY
Price is always deals with first when people purchased any product.
Price must be compared to its quality. When the product having higher
quality, its price is also higher at that place low price cannot there because
market is long time of the firm.
The price strategy of Vimal paint is “Optional product pricing”.
In the strategy the pricing of optional or accessory products along
with a main product.
The company decide that effective action can and should be taken, if
might make any of four responses.
Has competitor cut price?
Will lower price negative affect our market share &
profit?
Can should effective action be taken?
NoHold current price continue to
monitor competitor’s price
Reduce price
Raise perceived quality
Improve quality & increase price
Launch low price “Fighting Brand”
SALES
Year Sales(R.S)2003-2004 10443646.892004-2005 12131667.252005-2006 13690701.39
02000000400000060000008000000
1000000012000000
14000000
R.S
2003-2004
2004-2005
2005-2006
Year
sales
sales
FINANCE DEPARTMENT
Introduction
Organization Chart
Capital Structure
Financial Ratio
Gross Profit
Operating Cycle
INTRODUCTION
Financial management is that managerial activities which is
concerned with planning and controlling of the firm’s financial resources.
Financial management scope may be defined in terms of the following
questions:
How large should the firm be and fast should it grow?
What should be the comparison of the firm’s assets?
What should be the mix of the firm’s financing?
How should the firm analysis, plan and control its financial affairs
The main goals of the financial management should be to “Maximize
the value of the firm to its equity share holder’s.” This means that the goal of
the firm should be to maximize the market value of its equity shares
alternative goals have been suggested:
Maximization of profit.
Maximization of earnings per share.
Maximization of return on equity etc.
A firm secures whatever capital it needs and employ it (finance
activity) in the activities, which generate returns on, invested capital
(production + marketing activity).
ORGANIZATION CHART
FINANCE MANAGER
ASSISTANT OF FINANCE MANAGER
ACCOUNTANT
CLERK
COMPUTER OPERATOR
CAPITAL STRUCTURE
Capitalization means the total value of all the securities i.e. share and
debentures issued by a company and reserves, surplus and value of all other
long-term obligation. The firm includes:
The value of ordinary and preference shares.
The value of all surplus earned and capital.
The value of bonds & Securities still not redeemed.
The value of long-term loan.
Capitalization is used in its quantitative aspect and refers to the
amount at which a company’s business can be valued.
Name Rupees
2003-04
Rupees
2004-05
Rupees
2005-06
Partners Capital 1146854.17 662775.15 3528253.43
Secured loans 2979649.91 3088649.47 3017065.47
Unsecured loans 8402426.87 6780636.41 6307627.41
Sundry creditors 930763.91 449967.70 1565291.76
FINANCIAL RATIO
The financial ratio of the last three years, like current ratio, liquid
ratio, debtor ratio of the unit is as under.
Current ratio = current assets/current liabilities
2004 = 10441195.26/4344896.82
=2.40 : 1
2005 = 9018281.98/3880585.98
= 2.33 : 1
2006 = 13519793.57/11177233.64
= 1.21 : 1
Liquid ratio = liquid assets/liquid liabilities
2004 = 7017430.69/1365246.91
=5.14 : 1
2005 = 5747677.98/791939.51
= 7.26 : 1
2006 = 10300749.57/1852540.76
= 5.56 : 1
Gross Profit ratio =Gross Profit/ Sales*100
2004 =1389178.88/10443646.89*100
=13.30%
2005 =2032749.93/12131667.25*100
=16.76%
2006 =2882461.34/13690701.39*100
=21.05%
GROSS PROFIT
Year Profit(R.S)2003-04 1389178.882004-05 2032749.932005-06 2882461.34
OPERATING CYCLE
CASH FUND
Creditors
Raw Materials Components & supplies
CASH FUND
Finish to goods
Debtors
Operative Cycle
CONCLUSION
At the out set let me appreciate my interest in this professional
programme of B.B.A
At the concerning organization, I would like to favour Vimal Paints
i.e. it is having effective, efficient & sound management.
During my visit, I was greatly impressed by qualified & sophisticated
managerial & non-managerial personnel of company. I have found the
working system amazing at Vimal paints. Each & every personnel are aware
of his or her responsibility.
Vimal paints is proceeding towars progress day by day. It is also
continuously going to upward side in the context of turnover, its market
share & financial strenth because of popularity of its products in the market.
The management had a positive attitude towards us & the incharge
personnel rendered their best & possible company-operation in providing
proper guidance & all the relevant information.
Vimal paints private limited will definitely progress & will be having
delight, bright, magnificent, and future because of good quality &
availability as well as the popularity of the product in the market as well as
in the house.
BIBLOGRAPHY
Marketing Management
12th edition
By: - Philips Kotler and Kevin Lan Killer
Financial Management
By: - I. M. Panday
Marketing Management
By: - Rajan saxsena
ANNEXTURE