1

AKNOWLEDGMENT


MUHAMMAD SIDDIQUE, the managing partner of company, is an associate engineer
mechanical production with specialization in foundry and pattern
making having an experience of 28 years. He has served in well known
companies, steel casting (Gujranwala) for 15 years, and steel alloys
(Lahore) for 13 years as seniors works manager. He is well known figure
in his field and enjoys very good repute in concerned markets
customers and industrial.








2


INTRODUCTION


THE COMPANY METALS &CRUCIBLES DEALS WITH MANUFACTURING
OF ALLOY STEEL INDUSTRIAL MACHINE PARTS THROUGH MELTING
PROCESS AND MECHANICAL FABRICATION WORKS. Our company was
establishing in the year 2004 with backup of very well experienced
management. Out of hundred of foundry units only a few numbers are
quality conscious manufactures, and by the grace of ALLAH we are one
of them. we are capable of producing top quality alloy steel parts 5200
ton annually, keeping the customers needs in mind at optimum level,
with exact chemical composition and physical values required by our
clients.

Vision

To grow and lead the market in alloy steel castings and engineering
goods by services our present and potential customers.




3

MANAGERIAL HERARCIAY


1.PRODUCTION DEPARTMENT
PRODUCTION MANAGER
FINANCE MANAGER
MOLDING MANAGER
PETTERN MANAGER
WORKSHOP MANAGER
FELTING MANAGERMA
SHOP CYLENDER MANAGER
2. ACCOUNT DEPARTMENT
ACCOUNT OFFICER
ACCOUNTANT
3. QUALITY CONTROL DEPARTMENT
MANAGERS
THERE ARE THREE TYPES OF WORKERS
4

4. ADMINISTRATIVE DEPARTMENT
ACCOUNT OFFICER
LOGISTIC OFFICER
SUPPLIERS OFFICER
5. MARKETING AND SALES DEPARTMENT
MARKETING AND SALES OFFICER







5

MARKETING MIX




Pricing strategy:
Metals and crucibles set their price according to market competition.
Sometimes they charge high price as compare to their competitors and
sometimes they charge low price as compare to their competitor. If
they charge high price that is because of high quality. Sometimes they
charge low price to attract the customer.


Placement:
Factory area= 500 foot x 500 foot
6

Metal and crucibles located at 17km Multan road Lahore. Placement
means the act of placing, or putting something in a certain place how
company distribute its products in a market. So metal and crucibles
produce their product according to demand of customers.


Promotional stage:
Advertising means that the company constructs the ad for their
SERVICES, and then published it into the newspapers or journals. Metal
and crucible advertise their product through bushier.



7

SWOT ANALYSIS OF MATAL AND CRUCIBLE COMPANY





SWOT analysis shows the companys progress. Its shows that how a
company is performing its activities, and during these activities what
are the strengths, weaknesses, opportunities, threats are being faced.
MATAL AND CRUCIBLE Company deals in alloy steel so the
strengths, weaknesses, opportunities, and threats are given as follows.



8

STRENGHTS
MANAGEMENT TEAM:
MATAL AND CRUCIBLE COMPANY has a highly credible management
team who has displayed their skills in expanding the company through
inorganic route. The company has successfully acquired Nat Steel of
Pakistan, Millennium Steel of Thailand and more importantly Corus.The
companys virtuosos of finance have been able to find innovative ways
to tackle the companys debt and keep the bottom line in the green
zone despite lowering demand and huge debts accumulated.

INFORMATION TECHNOLOGY:

The entire operation of the Company is safeguarded against accident
occurrence. Proactive measures are undertaken to ensure the
employee's health and productivity through ergonomically designed
work station sand by protecting them from occupational hazards. All its
operations are ISO-14001 -Environmental Management System
Certified.


INNOVATIVENESS OF MATAL AND CRUCIBLE WITH RESPECT TO ITS
COSTUMERS:

Company has the lowest operating cost for alloy steel manufacturing all
over the country. Further it has displayed effective means in adopting
an eco-friendly and sustainable approach towards the manufacture of
steel thus
Proactive measures are undertaken to ensure the employee's health
and productivity through ergonomically designed work stations and by
protecting them from occupational hazards.
9

BRAND VALUE:

The company brand owing to its highly ethical and a socialistic
approach to business have made its name synonymous to trust. After
the acquisition of Corus another powerful brand, the brand value of the company
has enhanced further.


EXCELLENT PROCUREMENT PHILOSOPHY:

The company has around 50% of its supplies through long term contracts.
Thus it can be shielded from the volatility of the financial markets


INNOVATIVE CULTURE:

An innovative culture helps the company to produce unique products
and services that meet their customers needs.


PRICING POWER:

Customers typically rebel against price increases by switching to
competing products, but if a company has pricing power, customers will
continue using metal and crucibles products and services metal and
crucibles has the ability to charge customers higher price.

ASSETS LEVERAGE:

Asset leverage allows metal and crucibles to use their best operational
assets to expand their business and improve their market share.


10

WEAKNESSES



HIGH ATTRAITION RATE:

The company has traditionally faced the brunt of high attrition rate.
In its plant many engineers constantly change their jobs to and vice-
versa. Thus the formation of a core team of capable individuals across
all departments is very difficult as the size of the team is ever changing

PRODUCTDS IN THE PORTFOLIO LACKING DEMANDS:

The company has certain products in its portfolio like aerospace steel
which lacked demand in the recent past. Primarily due to the slowdown
of the aviation sector which led to delay in the delivery of aircrafts as a
result of cutting of capacity by airlines.

DEGRATION IN BRAND VALUE OWEING TO JOB LOSES:

The company has made its name synonymous to job security of
its employees. But the shutdown of its some plants has dented its
image to a certain extent. As a result some of its employees would lose
their daily livelihoods.

COST STRUCTURE:

A weak cost structure means MATAL AND CRUCIBLEs costs are high in
comparison to their competitors




11


Low COST RECOVERY:

There are specific products which has received feeble response in the
past. The company has failed to recover costs in this business front.


LACK OF TECHNOLOGY:

Due to frequent change in demand of the customers, it becomes very
difficult to fulfill the demand with the accordance of the customers. The
demand can be fulfilled only with the use of modern technology which
costs very high. Due to this problem the company cannot achieve its
goals.

BAD RAW MATERIAL:

The company make parts with the usage of alloy steel which is a raw
material , and often get by the local suppliers, raw material , which is
provided by the suppliers are not of a good quality which creates
problem during processing .



12

OPPORTINITES



COMPETETIVE POSITION THE COMPANY:

MATAL AND CRUCIBLE is the largest alloy steel production company in
Lahore. Its provides not only the alloy steel in Lahore but also supply all
over the Pakistan, the company also process the alloy steel and
changed it into various parts of the machinery.


EXPENTION OF BUSINESS:

There are more chances for the company to expend the business
because there are less competitors in the market, and it is not easy to
enter in the steel processing business, due to higher risk business
people not easily enter into this type of business, our company has a
good reputation in the business so there are more chances to expend
our business in the market.



INNOVATION:

Greater innovation can help Metal and crucible to produce unique
products and services that meet customers needs, Butt the innovation
must be in every aspect, technology, skills, knowledge. Innovation is the
only key is to get success in future.



13




NEW TECHNOLOGY:

New technology helps Metal and crucible to better meet their
customers needs with new and improved products and services.
Technology also builds competitive barriers against rivals. The
technology also enhances the efficiency of the workers, saves time
money and effort.



LOOSING REGULATIONS:

Looser regulations allow Metal and crucible to perform in a way that is
most advantages for them and their customers. Its also provides the
free environment for the employees so they might be able to work
efficiently.



NEW MARKETS:

New markets allow Metal and crucible to expand their business and
diversify their portfolio of products and services in different
geographical area. So there are many chances to meet new people and
to gain knowledge about other markets as well.




14


THREATS



FREQUENT CHANGES IN DEMADS:

METAL and CRUCIBLE is involved in the processing of alloy steel, they
made several parts of different machines, but due to frequent changes
in demand of the customer, it become very difficult to fulfill the
requirement according to situation and needs. Change in technology
also creates problem because the company have to guide their
employees with the passage of time.



FLUCTUATION IN GOVERNMENT POLICIES:

In countries like Pakistan where government makes and change policies
very rapidly, it becomes very difficult to survive in the market with a
huge competition.



HIGH TAXES ON IMPORTS:

To meet the recent demands by the costumers, the companies have to
import steel as a raw material which increases the cost of production
and there are more chances those costumers will move to the next
organization for low prices.


15


ORIENTATION TOOL KIT

Introduction and work of the company has already been discussed
above.
Now well discuss the benefits given by the company to
employees.
In orientation tool kit we define the companys policies and
advantages which company provide to his employees. These are
following.
Our company Metal & crucibles providing the following benefits
to our employees.

company give the following benefits to employees

1. Employee safety
2. Health facilities
3. Health allowances to employee
4. Medical facilities
5. Funds to selected persons
6. Other benefits related to company work
7. Annual leaves of company 24
8. Casual leaves 12 per year





16

JOB ANALYSIS




JOB ANALYSIS:
The procedure for determining the duties and skill requirement of a job
and the kind of person who should be hire for it.
There are two by-products of job analysis:
Job description
Job specification

JOB DESCRIPTION:
A list of jobs duties, responsibilities, reporting, relationships, working
conditions and supervisory responsibilities.
17


JOB SPECIFICATION:
A list of jobs human requirements that is, the requisite education,
skills, personality, and so on.

METHODS OF COLLECTION JOB ANALYSIS
Metal & Crucibles uses on the job observation and work analysis
method on al the three levels of management.

METAL & CRUCIBLE STRATEGIC LEVEL:

JOB DESCRIPTION:

C.E.O
Lead all departments of the company
Supervises for hiring, directing and formulate rules and regulation
There responsibilities and duties are to hire new employees,
budget the whole finance and to supervise all departments of the
organization.
METAL & CRUCIBLE TACTICAL LEVEL:
JOB DESCRIPTION:
Managers
Marketing and sales of Alloy steel casting in areas of country
Reports to C.E.O
Supervises orientation, directing the marketing and sales
18

Works with marketing and sales department employees
JOB SPECIFICATION:
The qualities, skills and abilities to perform the task of managers, they
have 2 year college certificate or education beyond undergraduate is
required. They have the skills of alertness, precision, concentration, and
accuracy.

METAL & CRUCIBLE OPERATIONAL LEVEL:

JOB DESCRIPTION:

Production
To look after the production and operate the cylinders
They report to tactical level
There responsibilities and duties are to train the schedule and
developing the employees
These duties are on daily or monthly basis

19

JOB SPECIFICATION:
At operational level employees have the skills to operate the cylinders,
to operate the machinery and complete command on using the
equipments.
JOB ENLARGEMENT:
Job enlargement is the process of assigning workers additional same
level activities, thus increasing the number of activities they perform.
METAL & CRUCIBLE JOB ENLARGEMENT:
Metal & Crucible apply job enlargement on strategic, tactical and
operational level.
JOB ROTATION:
Job rotation is the process of systematically moving workers from one
job to another to enhance work team performance or to broaden
his/her experience and identify strong and weak points to prepare the
person for an enhanced role with the company.
METAL & CRUCIBLE TACTICAL LEVEL:
Job rotation is applied on both new and existing employees of the
organization.
METAL & CRUCIBLE OPERATIONAL LEVEL:
Job rotation is applied on only for new employees of the organization.


20

JOB ENRICHMENT:
Job enrichment is the process of redesigning the jobs in a way that
increases the opportunities for the worker to experience feelings of
responsibility, achievement, growth and recognition.


METAL & CRUCIBLE JOB ENRICHMENT:
Metal & Crucible applied job enrichment from strategic level to
managerial level and from managerial level to strategic level.




21

PERSONNEL PLANNING





22

PERSONNEL PLANNING
Personnel planning are the process of deciding what positions the firm
will have to fill, and how to fill them.
There are four types of personnel planning:
1. Trend analysis
2. Ratio analysis
3. Scatter plot
4. Computerized forecast

1. TREND ANALYSIS:
Trend analysis is the study of firms past employment needs over a
period of years to predict future needs. Also consider current
economic situation.

2. RATIO ANALYSIS:
Ratio analysis is a forecasting technique for determining future staff
needs by using ratios between sales volume and number of
employees.

3. SCATTER PLOT:
Scatter plot is the graphical method used to help identify the
relationship between two variables.


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4.COMPUTERIZED FORECAST:
Computerized forecast is the determination of future staff needs by
projecting sales, volume of production, and personnel required to
maintain this volume output, using software packages.
METAL & CRUCIBLE TACTICAL LEVEL:
Metal & Crucible uses computerized forecast on its tactical level.

METAL & CRUCIBLE OPERAIONAL LEVEL:

Metal & Crucible uses ratio analysis method on its operational level.

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FORECASTING AND DEVELOPMENT OF ADVERTISEMENT









SOURCE OF HIRING:

There are two sources of hiring
1. Internal source
2. External source


25

1.INTERNAL SOURCE OF HIRING:

Internal source of hiring is the process to hire candidates within
the organization. Following are the types of internal source of
hiring;

a) Job posting
b) Rehiring
c) Succession planning

(a) JOB POSTING:

Job posting is publicizing an open job to employees (often by
literally posting it on bulletin boards) and listing its attributes, like
qualifications, supervisor, working schedule and pay rate.

(b) REHIRING:

Rehire the employee who lefts the company. By giving his/her
benefits.

(c) SUCCESSION PLANNING:

Succession planning is the ongoing process of systematically
identifying, assessing and developing organizational leadership to
enhance performance.

26

1. EXTERNAL SOURCE OF HIRING:
Firms cant always get all the employees they need from their
current staff, and sometimes they just dont want to. Thats why
company uses an external source of hiring. Following are the
types of external source of hiring;

a) Internet
b) Advertising
c) Employment agencies
d) Off shoring/outsourcing
e) Executive recruiters
f) College recruiting
g) Internships
h) Referrals and walk-ins

(a) INTERNET:

Recruiting via internet means that some companies posted jobs
on the internet. Candidates apply for these jobs, and company
selected the suitable candidate for the job.

(b) ADVERTISING:

Recruiting via advertising means that the company construct the
ads for the job, and then published it into the newspapers or
journals.
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(c) EMPLOYEMENT AGENCIES:

Recruiting via employment agencies means that the companies
hire these public/private/non-profit agencies, and then these
agencies select the candidates for the company.




(d) OFF SHORING/OUTSOURCING:

Recruiting via off shoring/outsourcing means that hiring workers
from the abroad to do the jobs of those who would otherwise
work in another state.

(e) EXECUTIVE RECRUITERS:

Executive recruiters are special employment agencies retained by
employees to seek out top management talent for their clients.




28

(f).COLLEGE RECRUITING:

College recruiting is sending employers representatives to college
campus to pre-screen applicants and create an applicant pool
from graduating class.

(g).INTERNSHIPS:

Recruiting via internship means that the company hire there
internees on internships.

(h).REFERRALS AND WALK-INS:

Recruiting via referrals means that hire the employee through
reference, and walk-ins means hire the person who drops the c.v.

METAL & CRUCIBLE SOURCES AND METHODS OF HIRING

METAL & CRUCIBLE STRATEGIC LEVEL:
Metal & Crucible uses external source of hiring, method of hiring is
reference, advertisement and internet on this level.



29

METAL & CRUCIBLE TACTICAL LEVEL:
Metal & Crucible uses external source of hiring, method of hiring is
advertisement and also an internal source of hiring, and method of
hiring is job posting on this level.

METAL & CRUCIBLE OPERATIONAL LEVEL:
Metal & Crucible uses external source of hiring, method of hiring is
reference on this level
Types of Employment Testing



Employment tests help employers match candidates to the most
suitable position. Following are types of testings.

1. Cognitive Abilities Tests
2. Personality Tests
3. Physical Tests
4. Integrity Questionnaires
5. Assessment Tests





30



At strategic level we use cognitive abilities test because

Cognitive abilities tests measure the applicants ability to perform basic
math and reading comprehension, as well as the candidate's knowledge
of the job. The questions on the tests can measure the applicants
ability to use logic and reasoning to solve problems. Employers can use
cognitive tests to measure the candidates ability to perform job-
related duties. These employment tests can be used to determine the
candidates speed in performing job tasks.

At tactical level we use management assessment test because

Employment agencies use assessment tests to find the ideal position
for a job applicant. The tests are designed to measure the applicants
skills in particular areas such as organization or planning. The tests can
help candidates find the position that best matches skills.

At operational level we use physical test because

Employers may use a physical test to determine whether a candidate
has the physical strength to perform the duties of the job. For instance,
positions such as stocking shelves may require lifting and bending. A
physical test may simulate the job duties to determine whether the
candidate can manage the tasks.







31

TYPES OF INTERVIEWS

Following are the types of interview


1. Stress Interview
2. Panel/Committee Interview
3. Behavioral Interview
4. Case Interview
5. Telephone Interview
6. Group Interview
7. Lunch/Dinner Interview
8. Traditional Face-to-Face Interview
At strategic level we can use panel interview, situational interview &
behavioural interview. Interview must have unstructured because
In panel interview
In this situation, there is more than one interviewer. Typically, three
to ten members of a panel may conduct this part of the selection
process. This is your chance to put your group management and group
presentation skills on display.
As quickly as possible, try to 'read' the various personality types of
each interviewer and adjust to them. Find a way to connect with each
interviewer.
Remember to take your time in responding to questions. Maintain
primary eye contact with the panel member who asked the question,
but also seek eye contact with other members of the panel as you give
your response.
32

At tactical level we use the stress interview and job related interview
because
This form of interview was more common in sales positions and is
rare today. However, you should be aware of the signals. The stress
interview is usually a deliberate attempt to see how you handle
yourself under pressure.
The interviewer may be sarcastic or argumentative, or may keep you
waiting. Do no take it personally. Calmly answer each question. Ask for
clarification if you need it and never rush into an answer.
The interviewer may also lapse into silence at some point during the
questioning. This may be an attempt to unnerve you. Sit silently until
the interviewer resumes the questions. If a minute goes by, ask if
he/she needs clarification of your last comment.
At operational level we use situational interview and face to face
interview because
Most interviews are face-to-face. The most traditional is a one-on-one
conversation.
Your focus should be on the person asking questions. Maintain eye
contact, listen and respond once a question has been asked.
Your goal is to establish rapport with the interviewer and show them
that your qualifications will benefit their organization.



33

TRAINING AND DEVELOPMENT


PURPOSE OF TRAINING
Reasons for emphasizing the growth and development of personnel
include
Creating a pool of readily available and adequate replacements
for personnel who may leave or move up in the organization.
Enhancing the company's ability to adopt and use advances in
technology because of a sufficiently knowledgeable staff.
Building a more efficient, effective and highly motivated team,
which enhances the company's competitive position and
improves employee morale.
Ensuring adequate human resources for expansion into new
programs.
34

Research has shown specific benefits that a small business receives
from training and developing its workers, including:
Increased productivity.
Reduced employee turnover.
Increased efficiency resulting in financial gains.
Decreased need for supervision.
The Training Process
The model below traces the steps necessary in the training process:
Organizational Objectives
Needs Assessment
Is There a Gap?
Training Objectives
Select the Trainees
Select the Training Methods and Mode
Choose a Means of Evaluating
Administer Training
Evaluate the Training
Identifying Training Needs
Training needs can be assessed by analyzing three major human
resource areas: the organization as a whole, the job characteristics and
the needs of the individuals. This analysis will provide answers to the
following questions:
Where is training needed?
What specifically must an employee learn in order to be more
productive?
Who needs to be trained?
Training Methods
35

There are two broad types of training available to small businesses: on-
the-job and off-the-job techniques. Individual circumstances and the
"who," "what" and "why" of your training program determine which
method to use.
We use on the job training method at OPERATIONAL & TECTICAL level.
On-the-job training is delivered to employees while they perform their
regular jobs. In this way, they do not lose time while they are learning.
After a plan is developed for what should be taught, employees should
be informed of the details. A timetable should be established with
periodic evaluations to inform employees about their progress. On-the-
job techniques include orientations, job instruction training,
apprenticeships, internships and assistantships, job rotation and
coaching.
Off-the-job techniques include lectures, special study, films, television
conferences or discussions, case studies, role playing, simulation,
programmed instruction and laboratory training. Most of these
techniques can be used by small businesses although, some may be too
costly.

Orientations are for new employees. The first several days on the job
are crucial in the success of new employees. This point is illustrated by
the fact that 60 percent of all employees who quit do so in the first ten
days. Orientation training should emphasize the following topics:
The company's history and mission.
The key members in the organization.
The key members in the department, and how the department
helps fulfil the mission of the company.
Personnel rules and regulations.
36

Performance Management & Appraisal

Few guidelines for company to make the effective appraisals of
employees
Helping managers and their subordinates to focus on priorities
within their jobs is the first step to managing performance.

Organizations aspiring towards high performance cultures are
strong

Clarity about objectives and goals.
Continuous assessment of performance and
feedback
Recognition for performance
Improvement of individual performance
Personal development of the employees

37


PURPOSE OF PMS


ESTABLISHING PAY PLAN


38

PROVIDING EMPLOYEE BENEFITS


FOLLOWING ARE THE BEIFITS WHICH COMPANY WANT TO
GIVE HIS EMPLOYEES
Placement
A poorly placed employee is more apt to incur injury than a properly
placed employee. Employees should be placed on jobs only after
carefully estimating and considering the job requirements with those
which the individual apparently possesses.

Personal protective equipment
Endless variety of personal safety equipment is available nowadays
which can be used to prevent injure
Safeguarding machinery
Guards must be securely fixed to all power driven Machinery.
39

Materials handling
Though often ignored, the careless handling of heavy and
inflammable materials is an important source of several injuries and
fire.

Hand tools
Minor injuries often result from improperly using a good
Tool or using a poorly designed tool Therefore, close supervision
and instruction should be given to the employees on the
proper tool to use a proper use of the tool.

Safety training, education and publicity
Safety training is concerned with developing safety skills,
Whereas safety education is concerned with increasing contest
programmers, safety campaigns, suggestion awards, and various
audiovisual aids can be considered as different forms of employee
education.

Safety inspection
An inspection by a trained individual or a committee to detect
Evidence of possible safety hazards (such as poor lighting, slippery
floors, unguarded machines, faulty electrical installations, poor work
methods and disregard of safety rules) is a very effective device to
promote safety.

Health Services
The prevention of accident constitutes only on segment of the
function of employee maintenance. Another equally important
segment is the employees general health, both physical and mental.
There are two aspects of industrial health services
1. Preventive
2. Curative, the former consists of
3. pre-employment and periodic medical examination,
40

4. Surveillance over certain classes of workers such as women, young
persons and persons exposed to special risks.

Health of Employees
Cleanliness. Every factory shall be kept clean by daily sweeping or
washing the floors and work rooms and by using disinfectant where
necessary.

Safety of Employees
Fencing of machinery. All dangerous and moving parts of machinery
shall be securely fenced. Screws, bolts and teeth shall be completely
encased to prevent danger.
Work on or near machinery in motion. Lubrication or other adjusting
operation on moving machinery shall be done only by a specially
trained adult male worker.
Employment of young persons on dangerous machines. No young
person shall be allowed to work on any dangerous machine (so
prescribed by the state government) unless he is sufficiently trained or
is working under the supervision of knowledgeable person.
Device for cutting off power. Suitable device for cutting of power in
emergencies shall be provided.
Hoists and lifts. These shall be made of good material and strength,
thoroughly examined at least once in every six months and suitably
protected to prevent any person or thing from being trapped.

Restrictions in the Factories Act on the employment of young
persons:
1. Prohibition as to employment of children (Section 67)
No child who has not completed his fourteenth year shall be required
or allowed to work in any factory.



41




2. Employment of Children and Adolescent (Section 68)

A child who has completed his fourteenth year or an adolescent shall
not be required or allowed to work in any factory unless following
conditions are fulfilled:
1. The manager of the factory has obtained a certificate of fitness granted
to such young
2. While at work, such child or adolescent carries a token giving reference
to such certificate.

SOCIAL SECURITY
The connotation of the term Social Security varies form
country to country with different political ideologies. In socialist
countries, the avowed goal is complete protection to every citizen form
the cradle to the grave.
There are some components of Social Security:
Medical care
Sickness benefit
Unemployment benefit
Old-age benefit
Employment injury benefit
Family benefit
Invalidity benefit and
Survivors benefit




42


Metals & Crucible
Profit and Loss Account
For the Period Ended on 30 June, 2012

Description Amount(Rs.) Amount(Rs.)
Sales 93238338
Less Sales return 651522
Net Sales 92586816
Less Cost of goods sold:
Raw material (opening) 39970550
Production expenses 23183122
Store expenses 22366458
Carriage expenses 492571
Centre excises duty 175533
86188234
Add Raw material (Closing) 9005821
Cost of goods sold 77182413
Gross profit 15404403
Less Operating expenses
Administration expenses 10836047
Financial expenses 370745
Salary & wages 433214
Sale tax 374219
Total operating expenses 12014225
Net profit 3390178


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Metals & Crucible
Balance Sheet
As on 30 June, 2012

Equities Amount(Rs.) Amount(Rs.)
Authorized Share
Capital
10000000 Fixed Assets: 47626950
Subscribed & paid
up capital
10000000 Less Depreciation 10191045
Net Profit 3390178 Total fixed assets 37435905
Current Liabilities: Current Assets:
Creditors 12636875 Closing stock 6839932
Outstanding
expenses
1315455 Store 465211
Loan from bank 13285749 Raw
material(ending)
247579
Long term
liabilities:
Debtors 11430388
Bank loan 40000000 Steel Shape 1453099
Prepaid expenses 3709670
Cash 25000
Bank 21473
61628257 61628257




44


Comments on financial statement of Metals & Crucible
Gross profit ratio of company is 16.52% which is too low
for future planning. But in other sense it is also helpful t
rise the volume of business
Return on sale is too low that s only 3.64%. This profit
ratio is what any reserves. Due to this low profit ratio the
customers of company will also increase.
Inventory turnover ratio is also good i.e. 3.15 times.
In the year2010 stock purchased by Metals & Crucible is
more than requirement which results in a huge unsold
stock for company.
Due to this unsold stock the company cash in circulation
also reduce this result into to reduce in profit

Comments on Balance sheet of Metals & Crucible
Current ratio of the company is 1.5%. For a well
manufacturing industry this ratio must b greater than or
equal to 2%
Quick ratio of company is .94%.The normal quick ratio
for manufacturing industry is at least 1%.
Working capital for Metals & Crucible is Rs.8138273.
The liquid assets of company are also low.
Cash in hand, for meeting day to day expenses is also
low.

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