payal final

Navnir man Institute of ManagementA Project Report On Summer Training at SHAH PUBLICITY

Submitted by, Payal Jain

Under the Guidance of Mr. Narendra Jadav

Submitted on, 27TH JUNE 2009

In Partial Fulfillment of the Requirements for the Admission in V Semester in BBA Program.

Submitted to, Navnirman Institute of Management (NIM-BBA College), Bharthana, Surat. Affiliated to VNSGU, Surat.

Summer training report Payal Jain

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Navnir man Institute of Management

ACKNOWLEDGMENTAs per the syllabus of our B.B.A degree I have successfully completed my summer training. I have selected SHAH PUBLICITY to complete my training. It was very difficult task for me to make this project report a real, but I got significant assistance from people around me. A world-beating thanks to my family for their invariable uniformly support during this project. I owe gratitude to Mr. Narendra jadav for his valuable advice and guidelines for systematic approach towards this project work and all other helps he has provided as a mentor.

Mr. Rupesh shah is a person to whom I would like to give honor for assigning this project to me and guided throughout the journey of the project.

I would also like to thank the other employee of SHAH PUBLICITY and Faculty members of my college, Mrs. Radha vyas, Mr. Baxish, Mr. Mayur Patel for their unvarying support.

I would like to conclude this acknowledgement by giving gratitude to myself for being me.

--- Payal Jain May-June, 2009.


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Executive SummaryIn todays era outdoor advertising industry are one of the largest industry in India and this is acquiring high growth rate.

In Indian economic advertising a vital part and there is large scope to learn and earn also. So to understand this I wanted to make project report in any leading company in the industry. At that time I found shah publicity to prepare a project. Shah publicity is one of the leading industrial group in India, plays a leading role in the field outdoor advertising. The company provides a wide range of products such as hoardings, kiosks, gantries etc.

During my study on this subject I found that all the functional areas are very important .So I made my project report on general study of the company.


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Index

Sr. No. 11.1 1.2

ContentProfile of the Company & Industry.History of Company A glimpse picture of industry

Pg. No.

22.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9

Marketing DepartmentMarketing Environment (Competition) Products of the company (Product Mix) Packaging & Labeling Price of Products (Pricing Policies) Organizations buying process Product Life Cycle (PLC)& Marketing Strategies Channels of Distribution Marketing/ Sales Department at a glance Promotional Activities

33.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 4

Human Resource DepartmentActivities of Personnel/ Department Recruitment & selection Human Resource Planning Training & Development Promotion & transfer Performance Appraisal Wages & Salary Structure Employee Welfare Human Resource Audit Hierarchy Structure of Organization/ Department Absenteeism Rate Employees Turnover Production Department Human Resource


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Navnir man Institute of Management4.1 4.2 4.3 4.4 4.5 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Plant Layout Technology used Machinery operation Stores Plant Location, Controls of Raw Material in Process & Finished Goods Quality Control Finance Department Cash Budget & Flexible Budget Sources of Funds Issuing Shares (if applicable) Providing Funds to different Department Balance Sheet & Annual General Report (Rearrangement of Balance Sheet & P & L account in common Size Statement) Working Capital, Cash, Inventories, Receivables etc. Ration Analysis with interpretation


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Chapter-1 Profile of the company & Industry

History of SHAH PUBLICITYSummer training report Payal Jain 6


Profile of the company

SHAH PUBLICITY is one of the most well known India's leading outdoor advertising service providers. Since 1973, we are successfully reaching the whole spectrum of target audience through our innovative, creative and appealing gantries, hoardings, kiosks and trivisionss, etc. We have twice installed the biggest hoardings in the Surat city.


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Navnir man Institute of ManagementAdvertising is an art to achieve targeted sales figure through effective and efficient message dissemination to the audience and Shah is masters in this art. Shah is not only the numero uno outdoor advertising firm of Gujarat state, but shah is also marching ahead as the leading ad service provider in the country. Its services are coupled with innovative ideas and modern technology and this provides us the winning edge over everyone else in the business. Shah offer a full range of services aimed at reaching the specific demographic targets of the clients, and is in a position to provide hoardings as per the customer's requirements.

Some milestones of shah publicity

In 1973 establishment of company by Mr. yashwant bhai shah The biggest hoarding in the city installed by shah publicity for the second


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Navnir man Institute of Management In 1996 shah publicity get sole advertising rights of Sardar Bridge in Surat, where it place Gujarats first backlit kiosks. In 1997 first LED display hoarding was installed in surat having size of 20 x 10. In 1999 first ever gantry was installed on Sardar Bridge. After that 25 gantries are installed subsequence Surat and south Gujarat. In 2000, in new millennium shah publicity is entered in indoor media of vinyl, flex, backlit flex etc. In 2003 first time trivision was introduce in south Gujarat having size of 20 x 10. In 2004, Beautiful island having miniature of aircraft on athwagate circle.

Founder of shah publicity


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Navnir man Institute of ManagementWherever you go in the city of Surat, you will find a hoarding of shah publicity. YASHWANT SHAH, the owner of shah publicity, is the ace media man. He was born in Daman, had a tough time since childhood. He raised two hoardings of 12 *8 near varachha subway and moti talkies as side business with the main job in paradise provision store. The 30 number bidi and dinesh mills, lalgate were his first clients. The annual rent was just rs. 500. The municipal commissioner and collector helped him to raise the funds with the help of local mills; next year, yashwantbhai was the owner of 40 such hoardings. Today, after 25 years, the hoardings of shah publicity are seen at every nook and corner of the city. In south Gujarat area, shah publicity, the biggest agency has erected more than 800 boards. They have won many awards for best services at state level. Yashwant bhai loves Surat; he has always helped the local authorities for publicity of public interest.

The workers profileSummer training report Payal Jain

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Navnir man Institute of ManagementThere are about 40 people employees in the office of shah publicity which includes the board as well as the receptionist. There are all about 100 of labour for the laborious job I.E. for placing the hoarding , the painting job, some small works, erection of the hoarding, moving of the hydraulic Mobil van etc. name and post of some of the staff member have been mentioned MR. YASHVANT SHAH MRS RUPESH SHAH (Working since 12 YEARS) MR VISHAL SHAH (Working since 13 YEARS) MRS RINA SHAH (Working since 7 YEARS) MR ASHISH MR UJJAVAL MR CHANRESH MR RAMESH Ms. JIGNA MR RAJNIKANT : Administration Dept. : Account Dept. : Manager : Supervisor : Account Dept. : Labour : Owner : Marketing CEO and HR manger : Member of the BOD & HOD : Administration Dept.

A glimpse picture of Outdoor Advertising Service Industry.Summer training report Payal Jain

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What Outdoor Advertising?

Outdoor advertising includes various types of promotional displays, from highway billboards to transit posters and arena placement, all geared towards communicating a message to the public. The message might be to buy a product, take a trip, vote for a politician, or give to a charity. It might even be a public service announcement. There are many kinds of outdoor advertising choices. Eateries and hotels commonly make use of highway billboards to steer customers in for a rest or a bite. The automobile and tourism industries account for a very large percentage of billboard revenue. Bus benches often feature outdoor advertising for local businesses, while bus shelters might display a major movie promotion. Beverage companies commonly make use of sporting events and arenas, among other venues, while taxicabs, buses, railways, subways and wall murals offer other forms of outdoor advertising. BENEFITS OF OUTDOOR ADVERTISING More and more people are spending time outdoor. and spending greater time in commuting.. Delivers high frequency at each location. Provide continuity of an advertising massage. Sustains name and image awareness. Assure dominance in selected or extensive

Some outdoor disadvantages Outdoor advertising is a glance medium. At best, it only draws 2-3 seconds of a readers time.


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Navnir man Institute of Management Message must be brief to fit in that time frame. 95% of the time, either the massage or the audience is in motion. The nature of the way you have to buy outdoor advertising is not conductive to a very short, week-long campaign. The media world is the most dynamic branch of advertising and outdoor is its broadcast medium. WHY OUTDOOR? In todays fragmented media world, outdoor advertising is the one answer to target mass audiences effectively. People of all backgrounds and nationalities are spending more hours each day out of the home: commuting, working, shopping and socializing. This is particularly true of young, mobile people who are traditionally hard to reach with other forms of advertising.

With brand fighting for recall advertiser are committing larger budgets to the medium each year in order to deliver high impact displays in busy town and city centers throughout the world.

Outdoor Advertising Service Industry

Outdoor advertising is a necessity for many businesses. If you only advertise in your store, you wont be able to advertise to local prospects and those driving or


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Navnir man Institute of Managementwalking by. You can get a lot of business from passersby who stop in to your store on impulse. Of course, people get those impulses from seeing your outdoor advertising, usually in the form of a poster printing piece like a huge sign or billboard. Posters work well for businesses that have a large, local target market. Thats why billboards are so popular they can reach hundreds of thousands of people in the course of just one day on a busy highway. Many people dont think of a billboard as a poster, but most billboards are just huge posters pasted together to create one huge poster. Advantages of outdoor advertising posters You cant switch off an outdoor advertisement. People can turn off the TV or radio, they cant turn off billboards and other outdoor posters. When people drive by billboards or walk by posters on the side of a building, they can choose not to look, but they often do look. Even if they dont want to, curiosity gets the best of them and by the time theyve decided they dont really need to read the poster, theyve already read it. That leads to the next advantage. Posters are easy to digest. By their very nature, posters are graphic elements with little text. People process images much faster than they process a word, which means posters can be quickly and easily understood. People spend a lot of time in their vehicles. The average commuter spends 25 minutes on her drive to work which is nearly an hour a day spent driving past billboards and signs. When you factor in traffic, thats probably is an hour spent sitting on highways and city streets, bored. When people are bored they like to look at interesting things. Thats where your outdoor advertising comes in. Posters arent as expensive as other forms of advertising. Outdoor advertising, which pertains mostly to billboards, are priced as CPM, or cost per thousand. (Mille means thousand in Latin. Why not just shorten it to CPT? Sometimes it is seen as CPT, but most printers refer to it as CPM. Im not sure why.) CPM is the


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Navnir man Institute of Managementcost of reaching 1,000 potential viewers through an outdoor advertising display. You can find the CPM of a billboard by dividing the monthly cost by the monthly circulation in thousands. The billboard company that rents the space can tell you what the monthly circulation is of each billboard. Circulation is the number of people who see the billboard each month. So, if you pay $2,000 to rent a billboard for one month and the billboard has a monthly circulation of 2,000 viewers, youve just paid $1 per view. If the monthly circulation is 10,000 for that same $2,000 billboard, youll only pay 20 cents per view. Thats cheaper than postcard marketing! If you can find a great spot for a billboard at a reasonable cost, give it a try. Just make sure your message is short (less than eight words) and that your graphics are able to do your talking for you. You can gain many new customers for little money.

Outdoor Advertising Service Industry in India


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Navnir man Institute of ManagementThe Indian advertising industry comprises establishments that create and sell advertisements for media such as newspapers, periodicals, radio, and television. The Indian advertising industry has been evolving at a fast pace over the past few years owing to an increase in the forms of media and communication and the emergence of new distribution channels. In 2005, this industry experienced a growth of xx%. Currently India has a low advertising spend to GDP ratio as compared to other economies. Competition for the outsourcing business and creativity leakage represent the major issues and implications. However, the television advertising is expected to register high rates of growth, with India expected to become Asia's leading cable market by 2010. It also studies the competitive landscape including the top three agencies- JWT, O&M, and Lowes. Since the agencies are not listed and do not disclose their financial information, the report has alternatively covered a summary of their operations and competitive strategies. The report concludes with an outlook on the industry.

Outdoor Advertising Service in SuratSummer training report Payal Jain

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Navnir man Institute of ManagementSurat is a fastest growing city in the state of Gujarat; outdoor advertising is the one answer to target mass audiences effectively. People of all backgrounds and nationalities are spending more hours each day out of the home: commuting, working, shopping and socializing. This is particularly true of young, mobile people who are traditionally hard to reach with other forms of advertising.

With brand fighting for recall advertiser are committing larger budgets to the medium each year in order to deliver high impact displays in busy town and city centers throughout the world.

Growth of Shah Publicity in Surat


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Navnir man Institute of Managementwho could have thought for about 25 years ago that advertisement could make s big profession and for a city like surat where a small shop was a safe medium for income and to try out something new was considered like trying to commit suicide but for one man challenge was his life, his passion to do something new and he did it. He ventured into the unknown business of outdoor advertising company. In 2005 shah publicity achieved 1000 hoardings and 1000 kiosks across south Gujarat. Today it is not only south Gujarats no.1 out of home advertising company, but also it provides more services and access to modern technology than anyone in business. Shah publicity offers full range of services aimed at reaching the specific demographic targets of the clients, and are in position to provide 100 hoardings anywhere in south Gujarat as per the clients requirements. It handles regular painting, vinyl, printing-cutting and postings, most efficient film banner making, displaying and fixing, integrated hoarding publicity, creative image displaying screen painting, tin plates and tin board manufacturing, moving publicity on wheels, wall paintings, p.o.p. organizing and many particular needs in outdoor advertising.

Objectives


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Navnir man Institute of ManagementOver the years, we have worked with a large number of PRIVATE AND GOVERNMENT ORGANISATIONS. We have years of experience in such worked and understand well the complexities, procedures and deadlines involved. Our scope of work in this category has included corporate campaigns, product campaigns, public service campaigns as well as a vast array of design, print and placement jobs. The objective of advertising is to change public attitude And behavior and stimulate positive change in society. Our approach is to try and understand human motivation, not just distribute campaign material. By translating our understanding creative and using sophisticated media tools, we help achieve the goals. Our proud history of long-term client relationship best testifies to the power and effectiveness of our work Bigger is better and shah publicity breathes this outdoor mantra and they believe that small things must be left small on a 12 inch or so box what world needs is something huge to remember. THINK OF ADVERTISEMENT THINK OF SHAH A client service routine has been developed in consultation with staff and clients and takes into account feedback from the clients advertising agency and customer feedback. It is subjected to ongoing review to ensure that it remains current and continues to set relevant standards for


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Navnir man Institute of Managementservice quality. At the same time it is always reviewed that none of these standards go against law.

Vision and MissionSummer training report Payal Jain

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Navnir man Institute of ManagementAccord is a professional company that strives with a vision to assist clients in the development and growth of their presence and awareness by way of outdoor advertising. We pride ourself in impeccable customer services; everything in our power is done to accommodate our clients in their outdoor advertising needs, as well as any other assistance our greatest satisfaction stems from the loyalty our clients have shown us. Our clients are not money signs, they are friends. Our services provide a full complement of outdoor advertising agency services which includes: Planning Designing Execution Control


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CHAPTER 2 MARKETING DEPARTMENT

2.1 Marketing Environment (Competition)All businesses operate within an environment, which directly or indirectly affects the way in which they function, just as we as consumers live within a cultural and


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Navnir man Institute of Managementsocial environment which to a greater or lesser degree determines the way in which we behave as individuals. said Elaine OBrien, University of Strathclyde.

Unlike the controllable marketing mix variables, the environmental forces are not controllable by marketers. However, marketers can control how they deal with those uncontrollable forces by identifying and monitoring those forces that are relevant to their firms. They also must forecast changes in these forces if they are to develop effective marketing plans and strategies.

All organizations operate within environments. That is, all profit-making and notfor-profit organizations are surrounded by, and must contend with, external forces. Managers cannot govern the nature of these environmental forces. These uncontrollable influences affect consumers behavior and organizations development of effective marketing mixes.

Conceptually, the forces that comprise the marketing environment are viewed as existing at two levels. They are categorized as micro and macro influences. The microenvironment consists of those forces that directly affect the marketing programs of a particular firm. The activities of marketing intermediaries, company, customers, suppliers, and competitors are all examples of external forces that influence the marketing actions of a specific organization. The macro environment encompasses the broad environmental system within which all organizations must conduct business. In one sense, it defines or creates the structure of the marketplace for all organizations. The particular elements that make up the macro-environment are demographic trends, economic, natural, socio and cultural influences, political and legal issues, and technological advances.

The market environment is a marketing term and refers to all of the forces outside of marketing that affect marketing managements ability to build and


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Navnir man Institute of Managementmaintain successful relationships with target customers. The market environment consists of both the macro environment and the microenvironment.

The microenvironment refers to the forces that are close to the company and affect its ability to serve its customers.

Competitors are also a factor in the microenvironment and include companies with similar offerings for goods and services. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors.

When dealing with the marketing environment it is important for a company to become proactive. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the greatest customer potential. It is important to place equal emphasis on both the macro and microenvironment and to react accordingly to changes within them


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Competitors of Shah Publicity 1. venus 2. skumar 3. soni publicity 4. prithvi advt. 5. desai 6. Others etc.


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Navnir man Institute of ManagementAWARENESS OF SHAH PUBLICITY]

1% AWARE UNAWARE 99%

The above chart describes the market strength of shah publicity


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The Few Important Sites Owned by Shah Publicity

In an outdoor advertisement business it is of very great importance to find out new sites where hoardings, kiosks etc. can be placed so one needs to be very quick and capable enough to pay for the rent of the site to the government or the respective person who owns that place and thus your success largely depends on the sites you possess. The sites owned by shah publicity are The trivision at athwagate The hazira industrial belt area All the posts starting from the st. Xaviers school ghod dod road to parle point The backlit hoardings opp simandhar apt near Sargam shopping center Almost all of the hoarding site in Bombay market area The largest hoarding placed in ring road The gantries at sardar bridge The gantries at udhna The gantries at Dumas road The hoarding opp the surat airport The bus shelter at lake view garden The bus shelter near the goverdhan mandir ichhanath road Almost all of the hoardings opp and near the railway station The hoarding at starting of varaccha All of the kiosks at the sardar bridge The hoarding placed at the end of the sardar bridge adajan The hoardings site at Vivekananda circle nanpura The bus shelter at parle point


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Navnir man Institute of Management The garden kiosk at the lake view garden The highest hoarding in the chowk near the arts and law college The hoardings and unipoles at chowpati and opp classic hotel respectively The mobile vans seen near ghod dod road The hydraulic mobile van near athwalines area The vision panels in varachha The vision panels on ring road A few of the sites at navsari and bardoli The kiosks from athwagate to athwalines The unipole near pooja abhishek The backlit kiosks at brcm college The few sites lal gate The hoarding at lal darwaja

Client List

There are a large number of national and international clients of shah publicity. Some of them are as follows. Dhiraj sons Airtel Hutch Bata Citi bank Kaya skin clinic Hero Honda Foot funda Venus photo studio Vivaah Sonica


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Navnir man Institute of Management Shital photo Reliance Bsnl Iscon mall City mall Bank of baroda Kids zee Prakash jewelers Pantaloons Westside Provogue Maa & baby K.khushaldas jewelers Diam jewels Cinderella Dlords Dhiraj fashion world Stay fit Pt education Career forum Colgate Pepsodent YOU(internet connection) Tata sky Rajhans Garnier Amul Sumul Taj gateway


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Navnir man Institute of Management Times of india Subway Utsav Bleu mobile Motorola Nokia Raj empire Ashirwad houses Bazaar kolkata Corral holidays Gitanjali D dmas Idea Athmiya vidhya mandir Deewan-e-khaas Pizza hut u.s.pizza Food court Sugar n spice OMAXE Maruti Flying cats Frankfinn Intelligent guidance Real spoken English Paris Personality development Roop mangal Videocon


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Navnir man Institute of Management Onida B>more Tata fabrics Park inn House full Cream n crust And above all shah publicity also has contract with Surat Municipal Corporation to place some hoardings and kiosks with exclusive rights to shah.

2.2 Products of the Company (product Mix)Main products are:

HOARDING

KIOSKS

TRIVISION S

BUS SHELTERS

GANTRIES

Illuminate d Sizes varying from 10x10 to 170x20 Backlit hoardings Display hoardings

BACK LIT GARDEN KIOSKS


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Navnir man Institute of ManagementOther products are: Mobile van Unipoles Public utility Vinyl Neon sign Signages Wall paintings City bus

GANTRIES

UNIQUE GIGANTIC GANTRY OF 100 X 15 AT HAZIRA G.I.D.C. TWO GANTRIES BEAUTIFYING THE SARDAR BRIDGE - PRIDE OF SURAT MORE THEN 15 GANTRIES AT VARIOUS LOCATIONS IN SURAT CITY. WELCOME GANTRIES AT BARDOLI, VYARA, SACHIN & MANY MORE AT PARLE POINT, ATHWA GATE AND RING ROAD.


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HOARDINGS1000 HOARDINGS ACROSS SOUTH GUJARAT SIZES VARYING FROM 10' X 10' TO 170' X 20' OVER 300 ILLUMINATED HOARDINGS INCLUDING.

GARDEN KIOSKSNEWLY INTRODUCED SERVICE TO DISPLAY ADVERTISEMENT IN THE GARDENS.


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TRIVISIONFIRST TRIVISION OF 20' x 10' SIZED WAS INTRODUCED IN GUJARAT. TRIVISION HAS BEEN INSTALLED AT ATHWA GATE, SURAT. TOW MORE TRIVISION OF 10' x 10' SIZED HAS BEEN INSTALLED AT SARDAR BRIEDGE, SURAT.

Product Description Back Lit Bus Shelter We are involved in manufacturing back lit bus shelters with back-lighting, which is used to make all the important messages properly visible to consumers. These back lilts are one of the catchy medium of marketing the products. These are placed in high potential places to attract more and more target audience. We are specialized to manufacture back lilts as per clients requirements. BackLitHoardings Best used to show all the brands with an appealing way, these hoardings are made to promote the products. These hoardings are placed in markets, where


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Navnir man Institute of Managementthe possibility of potential customers is high like shopping complexes and malls. Now a days, these back lit hoardings are the best and reasonable way to showcase companies and their products. Building Wrap This is just like an online skyscraper, but the medium is offline. We manufacture building wraps of different sizes, that depends on the choice of the clients. This is also called building graphics, tall wraps etc. This is a new option of marketing the products and companies. Now a days most of the retail houses are using this type of banners to show their company names. Display Hoardings We make gigantic hoardings which grab maximum attention of the customers due to their larger than life effect, attractive design and creative theme. Some of the highlights of our hoarding services are: 1000 hoardings across South Gujarat Sizes varying from 10' x 10' to 170' x 20' Over 300 illuminated hoardings One Way Vision We are specialize in best possible way of promoting and marketing the brands in the market. One of the medium is One Way vision; we use these types of banners in various turning points and bus and taxi stops. They are capable to get your attention, and are enough to increase the curiosity regarding the brand.


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13% 1% 5%

5% 47%

hoardings kiosks bus shelter gantries unipole trivision

29%

The above chart describes that hoardings are most preferred.

2.3 Packaging and LabelingPackagingPackaging as all the activities of designing and producing the container for the product. Packages might include up to three levels of material.


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Navnir man Institute of Management Primary package: Cool water cologne comes in a bottle. Secondary package: In a cardboard box. Shipping package: In a corrugated box containing six dozen boxes. In shah publicity, the products are as such hoardings and kiosks such products thus packaging do not take place.

LabelingThe label may be a simple tag attached to the product or an elaborately designed graphic that is the part of the package. It might carry only the brand name, or a great deal of information. Labeling performs various functions: Label identifies the product or the brand Label also grades the product such as on the fruits of reliance fresh written best quality or export quality. It describes the product such as: Who made it where it was made When it was made What it contains How it is to be used How to use it safely The label can also promote the product through attractive graphics.

Whereas labeling, under each hoarding or kiosk or anything small board showing name of shah and its contact no. is placed which helps in recognizing that the concerned product is of shah publicity which serves as a label of shah publicity.


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Navnir man Institute of ManagementCREATIVITY OR CONTENT

5% CREATIVITY CONTENT 95%

2.4 Price of the Products (Pricing Policies)


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Navnir man Institute of ManagementLOCATION

ACQUISITION

COST

These three are the major factors which are taken into account while deciding the pricing policies. Location is most prominent factor. For ex: the hoarding placed in the midst of the city would cost more in relation to the hoardings placed at the outer areas of surat.

2.5 Product Life Cycle (PLC) and Marketing StrategiesWe define a product as "anything that is capable of satisfying customer needs. This definition includes both physical products (e.g. cars, washing machines,


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Navnir man Institute of ManagementDVD players) as well as services (e.g. insurance, banking, private health care). Businesses should manage their products carefully over time to ensure that they deliver products that continue to meet customer wants. The stages through which individual products develop over time are commonly known as the "Product Life Cycle". The classic product life cycle has four stages (illustrated in the diagram below): introduction; growth; maturity and decline.

Marketing strategies Marketing strategies have four stages: Introduction stage Growth stage Maturity Decline Introduction

Growth

Decline

Maturity


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Navnir man Institute of Management,

Sales

Introduction

Growth

Maturity

Decline

Time

1. IntroductionAt the Introduction (or development) Stage market size and growth is slight. It is possible that substantial research and development costs have been


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Navnir man Institute of Managementincurred in getting the product to this stage. In addition, marketing costs may be high in order to test the market, undergo launch promotion and set up distribution channels. It is highly unlikely that companies will make profits on products at the Introduction Stage. Products at this stage have to be carefully monitored to ensure that they start to grow. Otherwise, the best option may be to withdraw or end the product 2. Growth. The Growth Stage is characterized by rapid growth in sales and profits. Profits arise due to an increase in output and possibly better prices. At this stage, it is cheaper for businesses to invest in increasing their market share as well as enjoying the overall growth of the market. Accordingly, significant promotional resources are traditionally invested in products that are firmly in the Growth Stage. 3. Maturity The Maturity Stage is, perhaps, the most common stage for all markets. It is in this stage that competition is most intense as companies fight to maintain their market share. Here, both marketing and finance become key activities. Marketing spend has to be monitored carefully, since any significant moves are likely to be copied by competitors. The Maturity Stage is the time when most profit is earned by the market as a whole. Any expenditure on research and development is likely to be restricted to product modification and improvement and perhaps to improve production efficiency and quality.

4. DeclineIn the Decline Stage, the market is shrinking, reducing the overall amount of profit that can be shared amongst the remaining competitors. At this


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Navnir man Institute of Managementstage, great care has to be taken to manage the product carefully. It may be possible to take out some production cost, to transfer production to a cheaper facility, sell the product into other, cheaper markets. Care should be taken to control the amount of stocks of the product. Ultimately, depending on whether the product remains profitable, a company may decide to end the product. Shah publicity has crossed its introduction stage which can be revealed from that almost 99% of public is aware of its services and its name. As shah publicity is a service industry, it is growing since 25 years and will grow further. In last 2 years it has acquired 95% market of south Gujarat and has become a leading outdoor advertising agency of south Gujarat. Day by day it is making efforts to grow more and satisfy its customers to the fullest. Now shah publicity is in maturity stage as nowadays outdoor advertising has crossed growth stage and also its products have grown since years.


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loc ation print quality 28% junc tion 10% 14% v is ibility traf f ic direc tion s ite af ter s ales s erv ic es hoording ty peThe above chart shows the factors that are taken into account while placing a hoarding.

14% 19% 5% 10%


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2.6 Channels of DistributionThe producer and the final customer are the part of every channel. We will use the number of intermediary levels to designate the length of a channel. There is basically 4 channels of distribution:

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Wholesaler

Wholesaler

Jobber

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer

Consumer

Zero level: It consists of manufacturer selling directly to the final consumer. One level: Contains one selling intermediary such as retailer. Two level: Consist of two intermediary typically a wholesaler and retailer. Three level: consists of three intermediary wholesaler, jobber and retailer. Channels normally describe a forward movement of products from source to the end user.


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Navnir man Institute of ManagementAs shah publicity is a service industry, it mainly uses zero level channels. There are no intermediaries in the process. It directly deals with the customers understand their requirements and offer them the product which most fulfills their requirement.


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2.7 Marketing / Sales Department at a Glance

DIRECTOR

MARKETING MANAGER

EXECUTIVE (SALES PERSON, SURAT)

EXECUTIVE (SALES PERSON, VAPI)

EXECUTIVE (SALES PERSON, BHARUCH)

EXECUTIVE (SALES PERSON, BARODA)


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2.8 Promotional ActivitiesThe main purpose of advertising is to provide information to the customer and to improve the sales. It gives the brief ideas about the company and product, which is very much helpful in competitive market. Advertisement is published in to the different media at the particular time limit. Shah publicity do not carry out any kind of promotional activities except launching schemes for their existing customers.


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Chapter-3 Human Resource Department


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3.1 Activities of Personnel/HR Department

DIFFERENCE

BETWEEN

PERSONNEL

AND

H.R

DEPARTMENTDIMENSIONS Employment Contract Rules PERSONNEL DEPT. Careful delineation H.R DEPARTMENT of Aim to go beyond contract

written contract Importance in following Can do outlook important with rules Business need and Values and mission

the clear rules Guidance to mgmt. Procedure actions Behavior referent Norms, customs in

practices Managerial task v/s Monetary labour Key relations Initiative Speed Management role Communication Price mgmt. skill Selection Labour mgmt. Pay Job designing Conflict handling Respect

personal Nurturing Customer Integrated Fast Transformational leadership Direct Facilitation

mgmt. Labour management Piece meal Slow Transactional Indirect Negotiation

Separate and managerial Integrated and key tasks tasks Collective bargaining Individual contracts Performance related Team work Manage climate and culture People are treated as asset.

contract Job evaluation(fix) Division of labour Use temporary members Labour is treated as tools.


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3.2 Recruitment & Selection Recruitment DefinitionSummer training report Payal Jain 51

Navnir man Institute of ManagementRecruitment is the process of searching for prospective employees and stimulating, encouraging them to apply for job in an organization. Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Recruitment is two way process. It takes a recruiter and a recruitee. Recruitment is a linking activity as it brings to gather those with job (employer) and those sinking job (prospective employees).

Steps of Recruitment ProcessThe Standard recruitment process consists of a series of five steps: I. II. III. IV. V. Recruitment planning Strategy development Searching Screening Evaluation and control

These are some Standard Steps of Recruitment Process. It is not compulsory for any origination to follow all these. In Shah Publicity, do recruitment as such not a define process but they use both internal and external sources.

Selection Definition

Selection is the process of choosing the most suitable persons out of all applicants.


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Navnir man Institute of ManagementIn this process relevant information about applicants is collected through a series of stapes so as to evaluate their suitability for the job to be filled. The process of selection is to pick right person for every job. Selection is the process of matching the qualification of applicant with the job requirements. Selection may be described as a process of rejection because more candidates are turned away then is hired.

Steps of Selection ProcessThe Standard selection process consists of a series of seven steps. Preliminary Interview Application Blank Selection Test Employment Interview Medial Examination Reference Check Final Approval

Shah

publicity

do

Selection,

they

select

candidates

on

their

qualification and his/her experience. They also give chance to new comer or fresher.

3.3 Human Resource Planning Definition of HRPSummer training report Payal Jain 53

Navnir man Institute of ManagementHuman Resource Planning is the process forecasting a firms future demand for, and supply of, the right type of people in the right number. HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available & what if anything must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future. HRP is the process by which originations ensure that it has the right number & kind of people, at the right place, at the right time, capable of effectively & efficiently completing those tasks that will help the organization achieve its overall objectives. HRP translates the organizations objectives & plans into the number of workers needed to meet those objectives. Without a clear-cut planning estimation of an organizations need is reduced to mere guesswork HRP is the system matching supply & demand of manpower.

Process of HRPThe major stages involved in human resource planning are given below: I. Analyzing Organization Plans II. Forecasting demand for Human Resources III. Forecasting supply of Human Resource IV. Expected Loss of Manpower V. Estimating Manpower Gaps VI. Action Planning Shah do HR planning, they estimate the requirements and then and take action according to it. As such no formal procedure for this.

3.4 Training & DevelopmentEvery individual who is selected for the job needs the training. Without getting training it is not easy for the individual to perform the job accurately and the precisely. He should be given at least the basic knowledge with the help of which


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Navnir man Institute of Managementhe can carry out his work. Therefore, training is a must for each and every employee working in the organization. It helps the employees to get the basic facts of their jobs and the working environment under which they are supposed to perform their duties. Briefly, we can say that training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people get the knowledge and develop certain skills for a definite purpose. The purpose of training is basically to bridge the gap between job requirements and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending process. Training is closely related to education and development but needs to be differentiated from these terms. Shah publicity gives training to the employees who needs after their work have been examined. And also the training is given to those who are new in the organization. So the company gives training not to all but the few of its employees. The company gives the training for about 15 to 30 days. The employees are observed by the senior officers. And advertising is a highly dynamic concept their for development is never ending process in this company.

3.5Promotion & Transfer PromotionPromotion means an improvement in pay, prestige, position and responsibility of an employee within his or her organization.


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Navnir man Institute of ManagementIn promotion the salary of the workers is raised according to his efficiency. Shah publicity the promotion is given on the basis of performance records, persons behavior, his interview report, job knowledge etc. The company follows the seniority basis for promotion because the seniors are usually more experienced and the young people may get the chance for gaining more knowledge, skills etc. The purposes for promotion are mentioned below: 1. To motivate employees to higher productivity 2. To attract and retain the services of qualified and competent people 3. To identify and reward the efficiency of the employees 4. To fill up higher vacancies from within the organization 5. To build loyalty, morale and a sense of belongingness in the employee. as well as experience basis. Some of the factors which influence the promotion are his post

TransferThere are very less cases of transfer in the office its more at the factory. Conditions for transfer: When an employee had joined for a specific department at that time there was no vacancy in that department, slowly it was observed that he works better than the person currently working in that department so he can be transferred to this respective department of higher productivity. Necessity of manpower at the work place. Employees personal need, due to personal problems and preferences

3.6 Performance Appraisal DefinitionSummer training report Payal Jain 56

Navnir man Institute of ManagementAccording to Flippo, Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job. performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how and why the employee is presently performing on job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit. Performance appraisal is also useful in providing proper guidance to the employees who are potential of success and require a bit of guidance. Human resource is the most valuable asset for any organization; every firm does a huge investment in it and believes that the value, which human asset can increase in them, is much more than any other asset.

Process of Performance Appraisal1. Job Analysis, Job Description and Job Specification 2. Establishing Standards of Performance 3. Communicating Performance Standards to Employees 4. Measuring Actual Performance 5. Comparing Actual Performance with Standards and Discussing the Appraisal with Employees 6. Initiating Corrective Action, if any.

In shah publicity performance appraisal program appraisal is done at a simple level.


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Navnir man Institute of Management The appraisal is done for all the employees at that time only, the most important criteria for appraisal evaluation is the performance of the employee at work. The performance appraisal is two way, the superior evaluates the subordinate as per the prior set criteria set by the HR manager for the performance appraisal.


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3.7 Wages & Salary Structure

Wage derives

from

words

which

suggest from

"making the

a

promise," Old

often French

in monetary form.

Specifically

word wagier or gagier meaning to pledge or promise, from which the money placed in a bet (wager) also derives. A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of a view of running a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts. Wages represent the hourly rates of pay and salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salaries are subject to annual increment. The wages differ from employee to employee and it also depends on the nature of the job, seniority and merits. On


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Navnir man Institute of Managementthe other hand we can define salary as the amount of money paid to an employee monthly or yearly. Two copies of the pay slip are maintained. One is given to the employee and the other is kept by the company for its records. In shah totally wages are not predefine some part of salary is fixed but some par is paid accordance to ones performance.

3.8 Employee Welfare DefinitionAccording to the Oxford dictionary employee welfare or Labor welfare means the efforts to make life worth living for workmen. In the words of Arthar James Todd, Labor welfare means anything done for the comfort and improvement intellectual or social of the employees over and above wages paid which is not a necessity of the industry.

Types of Welfare ServicesIntramural: - these services are provided within the establishment. These include latrine and urinals, washing and bathing facilities, crches, rest shelters, canteens, uniform, medical aid, library, recreation facilities, free or subsidies food, etc.


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Navnir man Institute of ManagementExtramural: - these services are provided outside the establishment. These consist of housing accommodation, transport, maternity benefits, childrens education, sports fields, family planning and welfare, holiday homes, leave travel facility, workers cooperative stores, fair price shops, credit societies, vocational guidance, interest free loan, etc.

In shah publicity HR manger take care of all this to great extent. Insurance: accidental policy is provided to employees at all levels. Canteen is provided at plant Provides sanitation, ventilation, light and drinking water facility to employees at plant as well as office.

3.9 Human Resource Audit Meaning of HR AuditHR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. HR audit is very much useful to achieve the


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Navnir man Institute of Managementorganizational goal and also is a vital tool which helps to assess the effectiveness of HR functions of an organization.

Scope of HR AuditGenerally, no one can measure the attitude of human being and also their problems are not confined to the HR department alone. So it is very much broad in nature. It covers the following HR areas: 1. Audit of all the HR function. 2. Audit of managerial compliance of personnel policies, procedures and legal provisions. 3. Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration and other HR activities. 4. Audit of the HR climate on employee motivation, morale and job satisfaction.

Benefits of HR AuditIt provides the various benefits to the organization. These are: It helps to find out the proper contribution of the HR department towards the organization. Development of the professional image of the HR department of the organization. Reduce the HR cost. Motivation of the HR personnel. Find out the problems and solve them smoothly. Provides timely legal requirement.


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Navnir man Institute of Management Sound Performance Appraisal Systems. Systematic job analysis. Smooth adoption of the changing mindset.

Approaches to HR Audit There are five approaches for the purpose of evaluation of HR in any organization: Comparative approach Outside authority Statistical Compliance approach and Management By Objectives(MBO)

Shah publicity does not conduct HR audit.

3.10 Hierarchy Structure of Organization/ Departments


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Chairman

M.D/ Directer

General Manager

H.R manger Administration officer

3.11 Absenteeism RateSummer training report Payal Jain

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Navnir man Institute of ManagementWhile estimating demand for manpower, the prevailing rate of absenteeism in the company should be considered. In shah the absenteeism rate is 5 to 6 % only. In shah publicity punching system is used to mark attendance of employees and very 3 half days or coming late is considered as one half day.

3.12 Employees TurnoverEmployee turnover ratio means in the year how many new employees recruited and how many left the job. The employee turnover ratio of shah is nearly 5%.


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Chapter4 Production department

4.1 Activities in Production DepartmentSummer training report Payal Jain 66

Navnir man Institute of ManagementShah publicity is a service industry and its main products are hoardings, billboards, kiosks, gantries, trivisions and all products relating outdoor advertising as shah publicity is one of the most leading outdoor advertising agencies of south Gujarat. Due to this kind of products production plant of shah publicity is not fixed and there is no specific process followed or location identified for production. All kinds of processes are done in a manual way and using manual technology. Even though the activities the activities are performed at macro level they are as follows: 1. Location is identified. 2. Skilled engineers are appointed. 3. Designers are hired. 4. Skilled workers are recruited for labour work. 5. Electricians are hired. 6. Finally hoarding is placed. In this first of all, location where hoarding is to be placed. Then after on the basis of location and size engineers will design a structure which is strong and durable and reliable and which takes into consideration all sorts of quality standards. Then designers design the aesthetic structure to be printed on the hoarding. It is the concerned partys wish that whether to use designs of their own or get it done by shah publicity designers. After this comes the work of printing which shah publicity does not do it by its own in spite it gets it done from somewhere else.


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Navnir man Institute of ManagementAfter the banner has been printed it is been fabricated by the skilled labour at right time at the right position in a correct manner. After this electrician does the electric fitting to make it more visible and beautiful to viewers. In this two types are available. They are: Front lit Back lit

This is done according to the requirements of the customers. Once this entire process gets completed periodic check is maintained that whether lighting is proper, is it properly visible and all that.

4.2 Pant LayoutSummer training report Payal Jain 68

Navnir man Institute of ManagementPlant layout is physical arrangement of various buildings, production department, technical utilities and location of various machines within each production department. The process of preparing plant-layout for new manufacturing or service setup is called layout design. As we know that co. does not have any specific production unit thus it does not also have specific plant layout. It follows project layout which refers to the layout according to the requirements. As it covers entire south Gujarat thus when it has to place hoardings or any other thing out of Surat city it carries all of its raw materials and machines required for the purpose and makes it there and fixes it there only. Sometimes also if the size of the product is very big and for which transport is not feasible then also raw materials and required machines are taken at the concerned location and the work is done there. The entire process is as follows: 1. cutting 2. welding 3. printing 4. installing This entire is known as fabrication.

4.3 Technology UsedSummer training report Payal Jain 69

Navnir man Institute of ManagementIn shah publicity various types of machines and equipments used are:

Welding machine Gas cutter Drilling machine Hexo machine Manual hexo machine

Used for fabrication Used for cutting To drill holes etc. For cutting plywood For cutting plywood

1. Welding Machine

Betterman cd stud welder single phase maximum stud size 8mm Ready to weld with hand torch and spares


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BOC Micro 15 Plasma TIG Welder Key features Complete package with Water Cooler, Foot Control and Hand Torch Mains supply single phase 240/220 volts Low range current 0.1 to 2.0 amps High range current 1.5 to 15 amps Manuals Dimensions L815xW635xH510mm Weight 150KG All packages include New Torch, Earth and Regulator unless otherwise stated Ready to plug and play!


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The basic purpose of this machine is it is used for fabrication. Fabrication means joining the different parts and constructing the entire structure.


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Navnir man Institute of Management 2. Gas Cutter

The gas cutter is used for cutting purpose. With the help of this machine frames of various sizes and shapes can be cut and used according to the requirement.


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Navnir man Institute of Management 3. Drilling Machine


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Specifications Heavy duty 500 watt machine Precision drill chuck of 13mm capacity with key Easy to use switch to toggle between standard/hammer drill functions 2 speed drill with maximum no load speed of 2600 rpm Insulated shock proof plastic body Easy grip swivel handle with depth gauge In built spirit level for straight drilling

4. Hexo MachineThis machine is basically used for cutting plywood.

5. Manual Hexo Machine


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Navnir man Institute of ManagementThis is also used for cutting plywood but this is manual and do not consume electricity.

Machine Operation StoresIn this organization store part is very limited. As there is no specific production unit spare parts and other things required also are very les. And also shah publicity is very reputed company even if they place order at the time requirement they get the products on time. Whereas some materials related to fabrication and electricity are stored in some quantity to meet the urgent needs


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Company Name: Company Address: City/State or Province: Country/Region: Zip/Postal Code: Telephone Number: Fax Number:

Shah Publicity 17, Everest Building, Opp. Railway Reserv. Centre, Athwagate Circle Surat/Gujarat India 395 001 91-261-2478910 91-261-2476154

4.5 Plant Location, Control of R.M. in Process and Finished GoodsPlant location


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Raw materialsIn shah publicity raw materials used are mainly of two types: 1. Electricity materials. 2. Fabrication materials. Electricity materials 36 w wipro tube 36 w wipro electronic chawk tep roll pvc 250 m.m. cv cable tie 1.05 mm Polly cable wire 1.5 mm 2 core cable 2.5 mm 2 core cable 4 mm service wire 150 w wipro chawk 250 w focus


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Navnir man Institute of Management 400 w focus 400 w tube 150 w old big body focus igniter 85 w focus 85 w wipro tube 32 amp connector switch timer switch 36 w Asian tube fitting 8x10 sintex box 20 w chawk (amar) 36 w copper chawk neon chawk pvc pipe pvc flexible pipe 10 amp connector 150w tube (metal light) 32amp main switch flasher 2.5 3 core azmar cable

Fabrication materials 2 x 2 angle 2 x 2 angle 1 x 1 angle 10 x 4 sheet 8 x 16 sheet


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Navnir man Institute of Management 12 wooden patti 10 wooden patti 8 wooden patti 1 x 1 sq. pipe 2 x 1 sq. pipe round pipe tata wire nails 1 size nails 2 size red oxide thinner

4.6 Quality ControlINTRODUCTION Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Quality is a sense of appreciation, that something is better than something else. It changes in a lifetime from generation to generation and it varies by facts of human activity. Quality means focusing on production of increasingly better products and services at progressively more competitive prices.


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Navnir man Institute of ManagementToday, companies have no choice but to implement total quality management programs, if they are to remain solvent and profitable. Total quality is the key to value creation and customer satisfaction. The companies, in which the managers concentrate on the quality of goods, they establish separate department for this purpose called quality control department. This department is considered superior to any other department so far as any matter related to quality is covered. The main duty of this department is setting up quality standard, checking quality of product manufactured and also for checking quality of inputs and outputs. In shah publicity quality control is done through periodic checks at regular intervals of various products placed through out the city and at other places. Also it uses the standard electricity and fabrication materials of the same company so that the quality satandrads are not altered and customers do not have any complain. Each and every problem is tried to be resolved before the complains of the customer. And the most important thing is that the structures and designs prepared by the engineers are passed by S.M.C. And it issues a stability certificate. After the issue of this certificate only these designs are considered durable and safe and thereafter further work continues with them. [Note: stability certificate and one copy of deign structure is attached in the annexure]


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Chapter 5 FINANCE DEPARTMENT

Finance management means the use of such managerial function as planning and control to undertake finance function.

Finance department is the area of business management devoted to a judicious use of capital and careful selection of sources of capital in order to achieve business goals. And finance management is to required for the company to know the companys assets and other matters it helps the organization to take the decision


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Navnir man Institute of ManagementFinance management is that managerial activity which is concerned with the planning and controlling of the firm financial resources. Still today it has no unique body of knowledge of its own and draws heavily or economic for its theoretical concept. organizations main aim to get profit maximization In this section the accounts are maintained. Accounts are maintained in traditional methods only. That is in ledger. The whole accounts department is computerized. Accounts are made on the computers. Purchase, stores, personnel and sales departments report their activities to the finance department.


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Structure:

Bills

ST

Managing director

CHIEF FINANCE OFFICER

Billing Dispatc h

Taxation

Outward

TD

VAT

IT


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Managing director

CHIEF FINANCE OFFICER

Billing Dispatc h

Taxation

Outward

TD

VAT

IT

Main Functions:


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Navnir man Institute of Management To record all the accounts. To record all the payments of the company. It records all the transactions of the company relating to finance. To prepare annual reports each year. It also helps the organization by Inventory Control System To prepare short term budget for the future processes of the organization. To count and pay wages to the employees as par rules and regulation of government. Objectives: To predict the requirements of funds To find out the different sources of funds To acquire the required funds To invest the right amount of funds at right time and at the right place. To monitor the performance of various investments made by the organization To maintain full and systematic records of business transactions: accounting is the language of business transactions. As human memory is limited and a human being can not remember each and everything accurately and for a long period of time, the main objective of accounting is to maintain a full and systematic record of al business transaction To ascertain profit or loss of the business: Though the sugar factory is a co-operative venture and it doesnt aim to profit maximization, one of the important objectives of the accounts department is to ascertain profit. At a point of time the firm does try to maximize profit but all the profit is distributed in the members of the organization and the farmers. The objective is to know weather the business is earning profit or incurred losses. Profit and loss can be ascertained by preparation of profit and loss account or income statement. A comparison of income and expenditure gives either profit or loss.


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Navnir man Institute of Management To predict financial position of the business: A organization is interested in ascertaining its financial position at the end of a certain period of time. For this purpose, a position statement called balance sheet is prepared in which assets and liabilities are shown if the assets exceed liabilities it is financially health in other case it is financially weak organization. Accounting policies: Valuation of finish goods is done at average of by products is done at; average of last three monthly prices. Valuation of by- products is done at net realizable valued. Bonus and leave enchantment are accounted on payment basis. Valuation of fixed assets is done on historical cost. Sell of goods recognized as a when goods are dispatch. Income & expenditure are account on approval basis. Investment is shown at cost


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5.1 Cash Budget and Flexible BudgetCash budget for the month ended on April, 2009particulrs opening balance cash Receipts axis bank-PT-047010300003254 rambo circus total receipts Cash payment anroli gran panchayat conveyance & petrol exp. dinesh solanki electricity charges house hold exp. legal & proffestional exp. legal & proffestional fees nagarpalika rent office exp. painting charges postage & courier exp. premilben r.naika printing & stationary repair & main to vehicle salary & wages exp. salary & wages payable samirbhai gulambhai shradha co.op tele phone exp. transportation well decore total payments closing balance 2500 9100 15000 92990 10000 300 6491 500 2890 2000 100 1000 170 5227 1016 68068 8000 50000 150 7450 2760 285712 117880.8 100000 39000 403592.8 april 264592.8


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5.2 Sources of FundsDespite all the differences among companies, there are only a few sources of funds available to all firms. 1. They make profit by selling a product for more than it costs to produce. This is the most basic source of funds for any company and hopefully the method that brings in the most money. 2. Like individuals, companies can borrow money. This can be done privately through bank loans, or it can be done publicly through a debt issue. The drawback of borrowing money is the interest that must be paid to the lender. 3. A company can generate money by selling part of itself in the form of shares to investors, which is known as equity funding. The benefit of this is that investors do not require interest payments like bondholders do. The drawback is that further profits are divided among all shareholders. In an ideal world, a company would bring in all of its cash simply by selling goods and services for a profit. But, as the old saying goes, "you have to spend money to make money," and just about every company has to raise funds at some point to develop products and expand into new markets. When evaluating companies, it is most important to look at the balance of the major sources of funding. For example, too much debt can get a company into trouble. On the other hand, a company might be missing growth prospects if it doesn't use money that it can borrow. Shah publicity mainly uses two kinds of sources of funds: Bank loan Investments


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Navnir man Institute of ManagementThis organization mainly takes loan from the axis bank and uses it as one source of fund.

5.4 Relationship of Finance Department WithMarketingThe job of marketing department is to boost up the sales and increase the profit of the company. Therefore it is essential for the marketing department because to continue with any department one surely needs finance. The main function of marketing department is to explore and research the market so that company can develop itself. Finance is also required to train the marketing staff to perform its functions properly. Development and malignance of new or existing products or services requires finance. Finance assists marketing in promoting the product moreover it also helps in fixing competitive price of a product. In todays highly competitive market it becomes unavoidable to ignore finance, through finance proves to be a base for marketing they are interrelated with each other by pricing {one of the 4 ps of marketing} In this company finance assists marketing activities by providing funds for various promotional activities. It is useful in exploring and making a place in the competitive market. The companies distributors have to bare the major marketing expenses as they are given the responsibility of marketing (Promotion).

Production:Production and finance department are interrelated with each other. Finance is required for the production activities of the firm. It is required to keep the cost in control so that finance is used economically and judiciously. Main functions of the finance department are to minimize cost of production.


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Navnir man Institute of ManagementProduction and finance department are to make decisions whether to buy or make a product. To increase product lines also finance is required. The company requires finance for setting up of plant, buying machineries and equipments, capital expenditures, etc. obviously the company will also made finance for day-to-day expenses like operating expenses, and variable expenses etc.

Personnel:Personnel department is always heavily dependent on finance department. Finance department requires personnel along with computerized systems (if any) to run the department harmoniously. Even through there may be computerized system but personnel are required to manage these systems. In this company very little amount of finance function are undertaken do the requirement of personnel departments limited to an extent but finance is required to pay the personnel of the company. Hence, we can say that personal and finance department are interrelated with each other.


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5.5 Balance sheet and annual general report Common size statement

Profit and loss (2006-07)


94


particulars

Amount (rs.)

percentage

incomeadvertisement (received) bank interestdividend dividend on mutual fund rent income from property interest on it refund ppf interest total

income 95563459 100635 4600 2000 154073 71195 5408 95801370 0.00066448 0.00481356 0.00209285 0.16122585 0.07450023 0.00565907 100.248956

expenditureadvt. board repairing material advt. expenses audit fee bad debts bank commission bank interest bonus sales promotion commission conveyance and petrol depreciation design discount donation and charity electricity hoarding contract hoarding lighting insurance interest to others internet expenses labor charges legal and prnl charges legal and prnl fees mounting charges nagarpalika rent transport office expenses office rent p.p. rent painting Summer training report photography charges Payal Jain postage and angadiya printing and stationary professional tax 21570349 301010 8750 979289 63029 521948 70000 5000 839429 257338 496615 274872 2941645 4501 2078345 3756507 1764875 195413 760467 18306 8151777 66281 8743610 486537 215435 94421 19200 14669244 1610416 661756 83264 113135 1000 22.5717541 0.31498441 0.00915622 1.02475257 0.06595513 0.54617948 0.07324976 0.00523213 0.87839956 0.26928494 0.51967039 0.28763295 3.0782111 0.00470996 2.17483233 3.93090313 1.84680946 0.20448506 0.79577174 0.01915586 8.53022388 0.0693581 9.14953277 0.50912452 0.22543659 0.0988045 0.02009136 15.3502648 1.68517969 0.69247807 0.08712954 0.1183873 0.00104643

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smc salary and wage sardar bridge maintenance service tax staff mediclaim man Institute of staff welfare telephone tender traveling vinyl making charges welding

14607153 1126000 651836 6445544 1451 Management 12480 387669 12825 66518 1490230 1404335 2040089

15.2852912 1.17827464 0.68209754 6.74477888 0.00151836 0.01305938 0.40566656 0.0134204 0.0696061 1.55941404 1.46953136 2.13480029

Navnir

net profit

Balance sheet (2006 - 07)particulars Amount (rs.) percentage

a) sources of fund1) proprietors capital 2) secured loans 3) unsecured loan total 7612094 1,06,91,200 64,62,889 24766183 30.73 43.16 26.09 100

b) application of fund1) fixed assets 2) investment current assets,loan,advances and deposits less: current liabilities & provisions 74,91,925 8,25,716 3,90,55,126 2,26,06,584 1,64,48,542 2,47,66,183 30.25 3.33

66.41 100

total


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Profit and loss (2007- 08)


97

Navnir man Institute of Managementparticularsamount (rs.) percentage

incomeadvertisement (received) bank interestdividend rent income from property interest on f.d. interest on s/b bank ppf interest total

income 146676142378 6948.28 244526.13 79067 1578 7447 147016086

100 0.00025771 0.00473716 0.16671159 0.05390584 0.00107584 0.00507717 100.231765

expenditureadvt. board repairing material advt. expenses audit fee bad debts bank commission bank interest bonus sales promotion commission conveyance and petrol depreciation design discount electricity hoarding contract hoarding lighting insurance interest to others internet expenses labour charges legal and prnl charges legal and prnl fees mounting charges nagarpalika rent transport office expenses office rent p.p. rent painting photography charges postage and angadiya printing and stationary 26279207 1307963 8000 1201386 83062.2 1522405.24 55000 91073 1307993 313875 710791 453775 1443497.47 2368139 15286429 2384274 291331 279047 31895 12965693 1000 217085 551207 419146 88234 121682 192000 19946675 2392420 967936 53957 140707 17.9164837 0.89173535 0.00545419 0.8190739 0.05662966 1.03793652 0.03749758 0.06209122 0.8917558 0.21399186 0.48459892 0.30937206 0.98413924 1.61453592 10.4218919 1.62553635 0.19862194 0.19024703 0.02174519 8.83967416 0.00068177 0.14800294 0.37579868 0.2857629 0.06015566 0.08295964 0.13090063 13.5991271 1.63109008 0.65991373 0.03678649 0.09593039


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Balance sheet (2007 - 08)


99

Navnir man Institute of ManagementParticulars amount (rs.) percentage

a) sources of fund1) proprietors capital 2) secured loans 3) unsecured loan total 6136221.21 23,573,546.40 9,962,882.00 39,672,656.61 15.46712959 59.42013572 25.11271705 100

b) application of fund1) fixed assets 2) investment a) current assets,loan,advances and deposits 1) sundry debtors 2) sundry debtors for expenses 3) cash & bank balance subt total I less: current liabilities & provisions sundry creditors for expenses advances from customer subtotal II net current assets b) loans, advances & deposits total 5,961,029.26 39,672,656.61 15.0255359 100 48,459,019.66 6,925,428.00 494,778.98 55,879,226.64 30,013,181.00 59,793.00 1,838,752.00 31,911,726.00 122.1471507 17.45642614 1.247153637 140.8507305 75.65205752 0.150715896 4.634809355 80.43758278 8,372,840.14 1,371,287 21.10481338 3.456503162

Profit and loss (2008- 09)


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Navnir man Institute of ManagementparticularsAmount (rs.) percentage

incomeadvertisement income (received) bank interestdividend rent income from property interest on f.d. total 129433873 345 27025 265910.81 88436 129815589.8 100 0.00026655 0.02087939 0.20544144 0.06832524 100.294913

expenditureadvt. board repairing material advt. expenses audit fee bad debts bank commission bank interest bonus sales promotion commission conveyance and petrol depreciation design discount electricity hoarding contract hoarding lighting insurance interest to others internet expenses labor charges legal and prnl charges legal and prnl fees mounting charges nagarpalika rent transport office expenses office rent p.p. rent painting photography charges postage and angadiya printing and stationary professional tax repairs and maintenance smc salary and wage sardar bridge maintenance service tax 14419049 724151 9812 1193070 101548.65 2576593.77 39600 75204 856969 165426 923731 168540 3094611 3454724 12101396 1662067 349756 435005 39279 9757858 58809 120368 4688772 95170 134868 149628 192000 24785655 1171265 1032621 28220 97742 2400 519802 15856206 1142493 104685 9212891 11.1400893 0.55947565 0.0075807 0.92176026 0.07845601 1.9906642 0.03059477 0.05810226 0.66209021 0.12780735 0.71367022 0.13021321 2.39088187 2.66910347 9.34948149 1.28410513 0.27021984 0.33608281 0.03034677 7.53887508 0.04543556 0.09299575 3.62252314 0.07352789 0.10419838 0.11560189 0.14833829 19.1492802 0.90491382 0.79779812 0.02180264 0.07551501 0.00185423 0.40159657 12.25043 0.8826847 0.08087914 7.11783615


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Navnir man Institute of Managementstaff mediclaim staff welfare telephone tender traveling vinyl making charges welding bus contract expense bus shelter expense consultancy kasar vatav expense mobile van contract preliminary expense subscription and membership net profit total 13177.42 9477 449388 44650 94902 4075896 1484485 6723950 896000 335590 28669 315209 9800 8005 3795005.88 129815589.8 0.01018081 0.00732189 0.34719505 0.03449638 0.07332084 3.14901803 1.14690611 5.19489207 0.69224538 0.25927525 0.02214953 0.24352899 0.00757143 0.00618463 2.93200365 100.294913

Balance sheet (2008 - 09) Summer training report Payal Jain

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Navnir man Institute of Managementparticulars amount (rs.) percentage

a) sources of fund1) proprietors capital 2) secured loans 3) unsecured loan total 9427864.15 15686811.13 12299135.65 37413810.93 25.19888756 41.92786231 32.87325013 100

b) application of fund1) fixed assets 2) investment a) current assets,loan,advances and deposits 1) sundry debtors 2) preliminary expenses 3) cash & bank balance 4) loans and advances 5) deposits less: current liabilities & provisions sundry creditors for expenses provision for expenses tax deducted at sources 45909458.08 29400 4195 6263227.19 6965023 59171303.27 30638714 4125904 737943 35502561 23668742.27 13745068.66 37413810.93 122.7072488 0.078580608 0.011212437 16.74041493 18.61618164 158.1536385 81.89145462 11.02775659 1.972381272 94.89159248 63.26204597 36.73795403 100 4029095.5 10.76900588

net current assets b) loans, advances & deposits total

5.6 Working CapitalIt refers to capital that is held to meet day to day requirements of the business.


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Navnir man Institute of ManagementIt is classified in two categories: 1. gross working capital 2. net working capital Gross working capital It refers to organizations total investment in total current assets viz. cash, marketable securities, inventory etc. it is also known as circulating capital. Net working capital Net working capital refers to the difference between current assets and current liability. NWC = CA CL CA = current assets CL = current liabilities

5.7 Ratio Analysis


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Navnir man Institute of ManagementRatio analysis aims at assessing the financial soundness and viability. Ratios are percentages or relationship of two variables. Gross figures or absolute data of any company at a point of time has no meaning. A comparison of the same company at two different time periods will reveal improvement or deterioration. Ratio Analysis provides the valuable insights into the companies compared, their performance and overall efficiency. Their comparative picture gives guidance of corrective measures necessary for any one of them. The investment and disinvestments decisions on these companies can be based on such comparison The financial ratios can be classified into four categories:

(A) Profitability Ratio (B) Liquidity Ratio or Solvency Ratio (C) Leverage Ratio (D) Activity or Efficiency Ratio

(A) Profitability Ratio:

Profitability ratios are of two types: (1) Profitability ratio based on Sales (2) Profitability ratio based on Investments

(1) Profitability Ratio based on Sales Summer training report Payal Jain 105

Navnir man Institute of Management (a) Gross Profit Ratio :It measures the gross profit margin on the total net sales made by the company. It expresses the degree of efficiency of the each department and degree of cost control. Gross Profit Ratio = Gross Profit * 100 Net Sales

Particulars Gross Profit Net Sales GP Ratio

2008 76314953 129433873 58.9%

2007 74078559.77 146676141.8 50.50%

2006 49502708 95563459 51.8%

Interpretation:From the above calculated ratio we can conclude that in the year 2007and 2006 the gross profit of the company remains consistent with 50% But in the year 2008 it increases to 58.9%. This shows that the companys profit increases to 8%.

(b) NET PROFIT RATIO Net profit margin is more specific ratio and measures the relationship between net profit and sales of a business unit.


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Navnir man Institute of ManagementThis ratio tells the real efficiency of the business unit after taking into consideration all expenses. Np Ratio = Net profit after interest and tax * 100 Net Sales

Particulars Net profit Net Sales N.L. Ratio

2008 3795005.88 129433873 2.93%

2007 4132275.45 146676141.8 2.81%

2006 2040089 95563459 2.13%

Interpretation: From the above calculated ratios we conclude that the net loss ratio of the company is continuously increasing in the three years. For the year 2006 is 2.13%, for the year 2007 is 2.81%, for the year 2008 is 2.93%. The company needs to have a control over its expenses in relation to the sales.

(B) Liquidity Ratio (1) C U R R E N T R A T I O


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Navnir man Institute of ManagementIt measures the solvency of the company in the short term. It also indicates the firms ability to pay its current liabilities .It shows the strength of credit, working capital and capacity to carry on effective operation.

Current Ratio = Current Assets/ Current Liabilities Particulars 2008 C u r r e n t A s s e t s 59171303.27 Current 35502561 Liabilities Current Ratio 2007

55879226.64 31911726 1.75:1

2006 39055126 22606584 1.72:1

1.67:1

(C) Leverage Ratio: PROPRIETARY RATIO This ratio shows the proportion of proprietors fund to the total assets employed in the business. The higher the ratio the stronger the financial position of the enterprise as its signifies


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Navnir man Institute of Managementthat the proprietors have provided the larger fund to purchase the assets. Proprietors funds include share capital, reserves and surplus. Total Assets include the total of the asset side of the balance sheet. Proprietary Ratio = Proprietors Funds *100 Total Assets

Particulars Proprietors Funds Total Assets Proprietary Ratio

2008 9427864.15 63200398.77 14.63%

2007 6136221.27 64252066.78 9.55%

2006 7612094 46547051 16.35%

DEBT EQUITY RATIO This ratio indicates the relationship between borrowed funds and owners capital. It is popular measures of the long-term financial solvency of a firm. This ratio indicates the relative claim of creditors and shareholders against the assets of the firm. This ratio is generally 1:1 in public sectors and 2:1 in private sector. Debt Equity Ratio = Long Term Liabilities * 100 Shareholders Funds

Particulars L.T.L. Shareholders Funds Debt-equity

2008 32985946.78 9427864.15 3.49%

2007 33536435.4 6136221.27 5.47%

2006 17154089 7612094 2.25% 109


Navnir man Institute of Managementratio

Long term fund to fixed assets ratio =

Total long term funds Fixed assets

Particulars 2008 Total long term 32985946.78 funds Fixed assets

2007 33536435.4 8372840.14 4.01%

2006 17154089 7491925 2.29%

4029095.5

Long term fund 8.18% to fixed assets ratio

(D) Activity ratio DEBTORS TURNOVER RATIO Debtors turnover indicated the number of times debtors

turnover each year. Generally, the higher the value of debtors turnover, the more efficient is the management of credit. It measures whether the amount of resources tied up in debtors is reasonable and whether the company has been efficient in converting debtors into cash.


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Navnir man Institute of ManagementD.T. Ratio = Credit Sales *100 DEBTORS

Particulars Credit Sales Debtors Debtors Turnover Ratio

2008 129433873 22437651.04 5.76%

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