Professional Documents
Culture Documents
CHAPTER-1
INTRODUCTION
Page 1
Page 2
Address :
Level of Office :
Website :
Industry :
www.himson.com
Garment , Textile, Engineering,
Capital Goods , Machines
Textile Machines, Machineries ,
Instruments
Surat
Gujarat
Sub Industry :
City :
State :
Page 3
395008
Industry Best
100-250 Crs
501-1000
Private Sector
Business Type :
Exporter / Manufacturer
Year Established
1970
No. Of Employees
50
Export Turnover
Rs 20 Crores
Annual Turnover
20
Bankers
Products Manufacturing and
Exporting
BANK OF BARODA
Yarn processing machinery from
draw texturising machines to
draw twisting machines, air
texturising machines, two for
one twisters for filament yarn, ...
Page 4
Auditors
M/s. Natvarlal Vepari & Co.
Chartered Accountants.
Company Secretary
Mr. Pankaj Savalia.
Registered Office
Hiralal Colony,
Ashwanikumar Road,
Surat- 395008.
Works
Page 5
Page 6
CHAPTER-2
MARKETING
&
SALES
DEPARTMENT
Page 7
Market:The common usage of market means a place where goods are bought or sold. In
its strict meaning market need not necessarily mean a place of exchange.
Marketing: -
Marketing is concerned with selling but now a days the concept has enlarged its
meaning. We know that a product is provided with the aim of sale. The aim
producer totally depends on marketing. Without marketing no unit can run. It
covers marketing research, new product development and so many other
important functions.
Page 8
Selling
g
1.marketing is a total
1.selling means
system of business
exchange of goods or
activities.
services against
2.marketing is a broadliy
payment of price.
2.selling is a narrowly
defined concept.
3.starting point of
defined concept.
3.starting point is
factory.
market.
4.focus on customers
4.focus is on product.
needs satisfaction.
CEO
Marketing
Manager
Clark
Page 9
b. Macro environment:
Following environments are affected to HIMSON PVT.LTD
Legal environment:
Legal environment consist of factors related to
planning,promotion &
Page 10
Economical environment:
Economical environment comprises of factors of production & distribution of
weaith in the nation.generally it is made up of the following factors:
Page 11
Barmay (Germany)
2.
Bata (Japan)
3.
Alidhra
4.
Musata
The main objective of each company is to increase its market value.
Page 12
Page 13
Through the evaluation process discussed above consumers will reach their final
purchase decision and they reach the final process of going through the purchase
action e.g. The process of going to the shop to buy the product, which for some
consumers can be as just as rewarding as actually purchasing the product. Purchase
of the product can either be through the store, the web, or over the phone.
Ever have doubts about the product after you purchased it? This simply is post
purchase behaviour and research shows that it is a common trait amongst
purchasers of products. Manufacturers of products clearly want recent consumers
to feel proud of their purchase, it is therefore just as important for manufacturers to
advertise for the sake of their recent purchaser so consumers feel comfortable that
they own a product from a strong and reputable organisation. This limits post
purchase behaviour. i.e. You feel reassured that you own the latest advertised
product.
Page 14
Aalidhra decides to develop new product requiring new machines, equipments, and
materials.
Page 15
2.4 Product:
a. Meaning of product:
NAVNIRMAN INSTITUTE OF MANAGEMENT
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To the marketer products are building blocks of a marketing plan. Good products
are key to market success. Product is the vehicle by which a company provides
consumer satisfaction. It is the engine that pulls the rest of the marketing
programme. Products fill in the needs of society. They represent a bundle of
expectations to consumers and society.
A product is anything that can be offered to a market for attention, acquisition, use
or consumption that might satisfy a want or need.
c. Classification of products : The products may be classified into the following categories:
Industrial Products:
Industrial goods are those, which are used for further production of goods or
services, and include capital goods, raw materials, component parts etc. These
are used as input in producing other products.
Consumer Products:
Consumer goods are meant for final consumption by consumers and not for
sale. Himson Pvt. Ltd. is producing industrial goods, which indirectly affects
the consumers.
Product Mix :
Product mix is also called as product assortment which is the set of all product
lines and items that a particular seller offers for sale to buyers.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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WIDTH
Draw
L
E
N
G
Knittin
Rappier
Precisi
texturisin
weaving
on cone ng
machin
machine
winder
machine
HDS1500AT
SDS700CR
DT-3000
DT-90EN
DT75R
Weavi
machi
ne
CAMB
RAPTEC
ER
H-
RPV-
SPRINT
Jacqu
ard
PK1200
HDS-
Dobb
EX2
HDS-
PKD200
VX2
HDS-TT
HDS-CX
1. Width:
The width of a product refers to how many different product lines the company
carries. The above table shows a product width of 6 lines.
2. Length:
NAVNIRMAN INSTITUTE OF MANAGEMENT
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4. Consistency:
The consistency of a product refers to how closely related the various product
lines. All the machines are texturising machines in Himson Pvt. Ltd.
As every being has life, a product has its life. Industrial goods may have a longer
life than consumer goods. When a product idea is commercialized, the product
enters in to the market & competes with the rivals, for making sales & earning
profits. Products, like human being, have length of life. This has been described as
life cycle in human beings & when applied to products which is called as PLC.
As we know that Himson Pvt. Ltd. produces industrial goods & these goods are
used for producing consumer goods. Industrial goods are long term purchasing
decision
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probably 200 to 255 sub assemblies ,which plays an important role in production
process of texturising machine are been produced and they export these sub
assemblies to the kim plant and other customer according to their order.
Packaging:
The packaging and labeling of the Himson Engineering Pvt.Ltd is very simple
and easy .through it play an very important role for the transportation of the
machine through road route. After making the product Himson group covers the
entire product in plastic. Then after the product is been put in the wooden
boxes. The wooden boxes are also been manufactured in the Himson
engineering pvt .Ltd means company again contain in house production system.
The main objective of packaging the machines are as below:1. It protects the product against the calamities.
2. The degree of damage is been reduced by such type of packaging.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Labeling:
The labeling system is used to describe the details of the products which are
been exported to the customers. In Himsion Engineering Pvt. Ltd. Labeling
system is comprehensive. The main objective of labeling is there should be no
mistake while exporting the machineries to the customers means some times to
the wrong order is been transported to the customer. So labeling system reduces
such type of mistakes.
Number of boxes.
So, in this company, descriptive type of labeling is been used to define the
packed parts.
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Importance of brand:
1. It is easy to identify the product.
2. The brand gives a separate identity to a product.
3. Brand can be a trand mark.
4. Brand gives legal protection.
5. The producers can be identified with the barnd name.
6. A brand can be a symbol of quality.
Brand equity:
A set of assets and liabilities linked to a brand,its name and symbol that add to
or subtract from the value provided by a product or services to a firm and or to
that firms competitors
1. Brand loyalty of customers.
2. Brand name awareness.
3. Brands perceived quality.
4. Brand association in addition to quality perceived.
5. Other proprietary brand assets like patents,trademarks,channel relationships
etc.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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There are mainly five customers in India of this company and the price for each
product is generally 1.0 crore to 1.5 crore rs. This company also contains many
customers in abroad countries like Japan, South Africa, Sri Lanka, U.K, Nepal,
Germony etc.Usually this company sets the price of each product around 1.5 crore
to 2.0 crores for the customers of foreign countries.And company set the price for
each product around 1.0 crore to 1.5 crore.For the customers of India.
Pricing decisions have strategic importance in any enterprise. Pricing governs the
very feasibility of any marketing programme because it is the only element in a
marketing mix accounting for demand & sales revenue.\
b. Pricing strategy:
Page 23
Penetration pricing:
A low price is designed in the initial stage with a view to capture greater market
share. When the large number of competitors are existing in the market at that
time Himson uses this strategy for pricing.
Skimming pricing:
This pricing strategy is characterized by high initial price of the product at the
time of introduction of the product in the market. Manufacturers aim at the
shortest period, where market conditions are also favorable. The price is
brought down when competitors enter in to the market field.
Pricing decision:
1. No., Himson Pvt. Ltd. Draw Texturising M/C Model, HDS-CX2 Having 264
Spindles
with
inverters,
Non-contact
debtors,
Intermediate
Traverse,
Microprocessor Based Temp. Control, 1-4-1 PU discs, HPS Cradles, Std. Box
Creel and Battery-Back-up system W/O battery.
Rs.__________
The price quoted above is on ex-works Surat, Silvassa basis. Forwarding,
insurance, freight, excise, sales tax, octroy and any other applicable taxes would
be charged extra to customer account at the ruling rate of the time delivery of the
machine.
The price is based on the current foreign exchange rate and custom duty at 25%
on imported components. Any variation in the foreign exchange and custom duty
at the time of clearance of imported components would be customers account.
The price mentioned is also based on the prevailing Govt. Policy and regulation
import controls and on foreign exchange rate and foreign exchange transaction.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Delivery:
Within-two weeks after receipt of customers firms orders along with
necessary non-refundable security deposit and clarification on all
technical/commercial points.
Payment:
20% non-refundable security deposit along with customer from order and
remaining 80% against proforma invoice before delivery of the machine
Spare Parts:
No spare parts are included in the above prices.
Validity:
The offer is valid for 60 days only from the quotation date.
This quotation is subject to our General Terms and Conditions of supply. The
prices quoted and deliveries indicated are subject to Force-Majeure Conditions
and final confirmation by them at the time of acceptance of customer firm order
along with necessary advance payment.
2.6 Place:
NAVNIRMAN INSTITUTE OF MANAGEMENT
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c. Channels of distribution:
Channel of direct sale of goods:Zero level channel
1. Direct sale from the factory.
2. Direct sale through retail shops.
3. Sale through salesmen.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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In certain cases manufacturer directly sells its product to the consumer from the
factory or place of production. Hough the use of this channel is very limited,the
manufactures of perishable products and food canning products often use this
channel of direct sale from the factory. In certain cases cloth mills also open a
small store in factory and sell cloth to the employees of the mill and also to the
public. Generally small manufactures producing price product items use this
channel.
Advantage of live contact with the consumers,speedy delievery and avoidance of
middlemens profit are the merits there are certain limitations channel.
Himson pvt.ltd. company also uses this channel of distribution.
Page 27
Advertising:
advertising can be defined as any paid form of presentation and promotion of
ideas,goods and services by an identified sponsor
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Characteristics of advertising:
1. Non personal form of communication.
2. Wide spread media.
3. Identity of the sponsor.
4. Payment of the price.
Direct marketing:
There are many forms of direct marketing but the main forms are direct
mail,telemarketing,electronic
marketing
etc.they
all
use
persuasive
c. Communication process:
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Page 30
Step
8.
Manage
and
co-ordinate
the
intergrated
Page 31
CHAPTER-3
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 32
PRODUCTION
DEPARTMENT
Introduction
Definition:
Page 33
Production management:
Production management refers to the application of management principles to the
production function or process in a factory or on organisation.
3.1
1. Product layout
2. Cellular manufacturing layout
Design
development
Item master
Sales order
Design
Rout card
Main planning
Work order
Indent
Purchase
order
NAVNIRMAN INSTITUTE OF
MANAGEMENT
inward
Page 34
.S.O
Planning
P-2
P-1
BOM
Routcard
MRP
Indent
A/c
Labour
IVM
Despatch
Page 35
P-3
P-4
P-5
P-7
P-6
P-9
P-8
Raw material
Against W.O.
Finish receipt
to store
P-10
Page 36
P-11
P-14
P-15
P-12
P-16
P-13
Page 37
jobs:
Page 38
avoided
Some products may require assembling of various spare parts. The
production time for each spare part might be different. semi-finished goods
inventory is maintained to store spare parts taking less production time till
Page 39
Prices will not remain constant throughout the year; it may fluctuate from
time to time. so to get the advantage of low price it is necessary to keep
inventory.
Purchasing of raw material takes time. Some time is elapsed between placing
an order and receiving it. So to reduce purchasing lead time inventory is
helpful.
To overcome from the shortage problem inventory control is necessary.
costs
and
inventory
carrying
costs
will
be
the
have
to
place
orders
again
and
again
during
EOQ
2COD
Ci
Where EOQ=Economic order quantity
Co=Ordering cost
D=Demand
Ci=Inventory carring cost
c. Inventory Classification:
-ABC System
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Material class
No
01
02
03
04
05
06
07
08
Code
series
A
B
C
J
E
I
F&H
F
w/h
code
22
21/26
22
21
24
25/28
27
21/26
Storage
Floor & rack
Cupboard
Floor & rack
Floor
Floor & rack
Floor & rack
Floor & rack
Floor & rack
Page 41
21/26
Floor
10
Hard wares
21/26
11
12
13
H,F, &
Z
P
S
Q
21/26
21/26
21
14
22
15
Steel[raw]
22
16
tools
21
Cupboard
F : IW : 04
Prepare GRN
F:
F : IW : 02
Page 42
The main objective of quality control is to satisfy the functional & or aesthetic
needs of end users/customers of goods or services. The other objectives derived
from this main objective are as following:
1. To clearly define top managements commitments towards quality and production.
2. To design the product which has futures as required to satisfy the needs.
3. To keep the features of the product within specified limits as predetermined.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Page 44
DT. 01/01/2010
Bhogilal H. Bachkaniwala
Managing Director
The above quality policy has been explained to all employees of the organization
through displays, training and suitable method to ensured that Quality policy is
Understood and implemented at all levels of organization. Any new person
joining our organization is made aware of the quality policy. He is also explained
the quality objectives of the organization.
Page 45
Pass
Inspection
Fail
Fail
Reject
Rework
Surface Treatment
Regrade or Scrap
Required
If
Fail
pass
Store
Inspection
Rework
Reject
Dispatch
Regrade or Scrap
Page 46
Labour costs:
Satndard time developed by time studies,predetermined time standards or work
sampling,often from the basis for labour cost standards if they work at a normal
place. The standard labor cost for a particular unit of activity is then the
control documents.
Overhead costs:
Some elements of overhead cost,such as building depreciation aere fixed costs
whereas other components such as supervision,maintainance and factory supplies
are often classified as variable V or perhaps semi-variables SV.
In Himson Pvt. Ltd., there is not any perfect system for analyzing the time
required to do the job by the worker and also do not critically investigate the
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 47
There are some machines which are automatically controlled i.e. they are
computerized and some machines are manually handled. There is less idle time in
automatic machines because it is totally programmed by computer.
In Himson Pvt. Ltd., at CNC Machine Center one machine is from Feeler
Company of Taiwan. In this machine idle time is zero and it one of the
advantageous matter for Himson Pvt. Ltd.
CHAPTER-4
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 48
HUMAN
RESOURCE
MANAGEMENT
4.1 Introduction:
a. basic introduction about HR department:
Human resource is an integral part of management process which is concerned
with equipping every class of work force working at different level of
Page 49
Page 50
Marketing
manager
Chairman
Managing
Director
Finance
manager
Chartered
Accounta
nt
HR
manager
Superviso
r
Planing
manager
Superviso
r
Computer
departme
nt
Jobbers
Electronic
Manager
Jobbers
Purchasin
g
Manager
Inspectio
n
Productio
n manger
Inventory
and
storage
Jobbers
Workers
Productio
n
Planners
Page 51
manager should be able to manage the matters of the organization effectively &
efficiently.
ACTIVITY OF MANAGER: -
Communication:
It is a process through which an information, idea or opinion is transfered to more
number of persons. It is defined as a process of exchanging the facts, ideas,
opinions, symbols, messages, emotions by two or more persons. It is helpful for
smooth working increasing in the managerial efficiency, decision-making,
maintaining industrial peace, public relation and saving in time to the
organization. In communication following points are important:
Language
Code
Clarit
Motivation:
Motivation is an urge or tension to move in desired direction or to achieve certain
goal. This is an effective tool for getting critical tasks completed within specified
(desired) period &/or in desired manner.
Decision Making:
Page 52
Co- ordinatination :
Large scale of Himson Engineering Pvt.Ltd recruits a large number of personnel.
They are working on the basis of division of the work and specialization. Here is a
need of synchronizing the different activities being carried out by different
individuals /groups /departments /division.
This synchronizing technique is called co-ordination. The co-ordination is
effectively done through decision-making, communication & motivation.
Development:
This involves development of self as well as the sub-ordinates.
One has to develop both his/her self & sub-ordinates, so that one can take more or
extra responsibilities by empowering own sub-ordinates. This can be the most
beneficial to all i.e. to the organization, to the boss & to the sub-ordinates.
The organization can allot maximum responsibilities to a single reliable manager.
The manager can become capable of taking charge of the areas other than his field
& can widen his scope of promotion.
The sub-ordinates get chances for up-liftment, which can be a great motivation.
Page 53
Page 54
4.3
Recruitment :
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 55
c. selection process:
The process for the recruitment & selection of Himson Engineering Pvt.Ltd is
given below:
Page 56
Step 2.Screening:
In Himson Engineering Pvt.Ltd Screening means critical evaluation of received
applications. After receiving the applications, the next stage is to screening of that
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Page 58
In Himson Engineering Pvt Ltd., first of all decided how many number of
personnel are to be contacted and what type of personnel to be contacted.
Then after they decide area from where they will get their employee. They looks
employees at internal recruitment, present employees, employees referral,
professional association, advertisement, campus recruitment, Radio& television
etc.
They starts finding the employees before two months ago from their required
time.
Then after screen out employee and decides whether they are applicable to do the
job or not.
Employment interview is to be taken and the applicant who passed all above step
is selected.
4.4
Page 59
Board
Chair
VCR, CD Player
Television
Page 60
Page 61
PROMOTION:
"A promotion is a transfer of an employee to a job which pays more money or
one that carries some preferred status."
In Himson Engineering Pvt.Ltd, they give promotion on the basis of merit.
Main advantages of merit are:
1.) Generates greater motivation
2.) Increase Productivity
3.) Recognize and reward the extra knowledge and capacities
4.) Scientific and logical systems for promotion
5.) Increases the profitability and efficiency of an organization.
Page 62
Basic wages
Provident fund
Attendance
Special allowances
Overtime
House Rent allowance
Convenience allowance
All above factor are being taken in mind while deciding wages & salaries of
employees. In case of time rate wages, its decided based on attendance of
particular employees. In Himson Engineering Pvt Ltd. wages or salaries will be
paid on 7th day of each month
motivate its employees. Motivation means to force a person and involve him to
complete the work in right time and place with help by providing a basic need or
special need to worker. Specially Maslows need hierarchy used to motivate
employees such as basic need, special need, safety need, recognize, identify, self
realization.
Page 63
Safety to employees of Himson Engineering Pvt.Ltd: They provide safety for employees like special dresses, hand gloves and
spectacles while working in the factory etc.
Lift,, fire alert system camera?????,,,,
Insurance scheme:
Himson Engineering Pvt.Ltd, provides insurance schemes is W.C. i.e. Workman
Compensation which is applied to the managerial staff also including insurance.
Trade Union: ~
As per the section 2(B) of the Indian Unions Act of 1920, a trade union is any
combination of persons whether demography or permanent primarily for the
purpose of regularity, the relation between the employees & employers & for
imposing restrictive conditions on the conduct of any trade or business & includes
the federation of two or more principles of trade union.
NAVNIRMAN INSTITUTE OF MANAGEMENT
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Grievance Handling: -
reasons like promotions, payment of wages and salary, leave, transfer, bonus etc.
This grievance is removed properly or by proper procedure known as grievance
handling procedure.
In Himson Engineering Pvt.Ltd, the grievance handling system is handled by
supervisor. In Himson, grievance handling process subject to following three
steps:
1. The employees are supposed to submit his grievance to verify to his immediate
boss & the supervisor is supposed to give answer or fulfill the grievance within 3
days. If the worker is not satisfied then he can submit his grievance further.
2. In this step the aggrieved workman can submit his grievance in writing to the
senior officer of the department & the officer is required to reply within 7 days.
Here also if the employees are not got proper answered or not satisfied then he can
submit his grievance further.
Page 65
CHAPTER-5
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 66
FINANCE
DEPARTMENT
Introduction:
Page 67
5.1
Page 68
Head Clark
Assistant Clark
Page 69
A. Unit Cost:
1. Raw material cost:a. Raw material cost-discount(if any as per approved purchase order)
b. Excise Duty (paid to central government)
c. Taxes .
d. Freight, transportation and rejection.
Power
Direct labour..m/c operator*wage earning rate.
III.
IV.
V.
VI.
VII.
Machinery dept. for 1 shift 4.75 per year, for 2 shift 7.42 per year.
Rejection etc.
Page 70
Assembly cost
Item required in assembly as per planning*cost/item
III.
Labour cost
O/s labour cost as per item wise/vendor wise.
IV.
Page 71
16825726
1642536
11374099
2207643
5049474
24034
45404
18700654
9502365
3400
6857127
4678666
6783689
279762
4870753
11535793
11934213
23990587
3196245
less
Adjustment for
Depreciation
Loss on sale of asset
Previous year adjustments
MAT Credit entitlement
Exchange rate difference
Preliminary expenses
Adjustment for
Other income
Previous year adjustments
Profit on sale of
shares/mutual fund
Adjustment for
Increase in current liability &
provision
Decrease in inventory
Decrease in deposit &
advances
Decrease in sundry debtors
less
Adjustment for
Increase in deposit &
advances
Decrease in current liability
& provision
829336
45404
10380505
11138234
5
78724717
77589705
71277174
227591597
11962598
12334494
3
62724539
156685790
Page 72
Les
s
156685790
87867010
15059154
9
94896394
30442851
3086222
286028
91810173
30728879
6857127
102629101
220220
382181
6783698
6823001
374000
2012461
62170867
102973331
165144198
29962640
55055569
13960480
less
Adjustment for
Other income
Sale of investment
Decrease in loan advanced
Decrease in fixed assets
Adjustment for
Purchase of fixed assets
Increase in investment
29962640
Adjustment for
Increase in share capital
Increase Share application
money
Increase Secured loans
Increase Unsecured loans
8823100
10734590
19557690
less
Adjustment for
Decrease Share application
money
Decrease Unsecured loans
Decrease Miscellaneous
expense
39523739
30000000
69523739
8823100
30000000
2008936
38823100
2008936
19265410
6751480
Page 73
D
a+
b+
c+d
24034
829336
17465159
21996109
90096721
68100612
107561880
90096721
Cash on hand
1062302
1075050
44650642
61848936
32084009
56937662
107561880
90096721
Total
Page 74
life.
Like
human
blood,
the
proper
circulation
of
funds
a. MANAGEMENT OF CASH: Cash in the important current assets for the operations of the business. Cash is the
basic input needed to keep the business running on continuos basis, it is also the
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 75
II.
III.
IV.
The following ratios have been used to evaluate different aspects of cash
management.
(1)
(2)
(3)
Page 76
2007-08
2008-09
2009-10
68100612
90096721
107561880
213016302
261885017
208224149
115106501
231306472
70688700
Ratio (%)
a) Cash to Current Asset
Ratio (1/2)
0.319
3.44
0.51
1.69
2.56
4.025
215.97
142.57
90.68
(Table 8)
4.02
4
3.5
3
2.56
2.5
Cash turnover (%)
Cash T
2 urnover
1.69Ratio
1.5
1
0.5
0
2007-08 2008-09 2009-10
Year
Page 77
150
Avg. Age of Cash Avg,
(days)Age of Cash
100
90.68
50
0
2007-08
2 008-09
2 009-10
Year
b. Management OF RECEIVABLE: When firm sell goods for cash, payments are received immediately and therefore
no receivables are created. However when a firm sells goods or services on credit,
payments are received only at a future date and receivables are created. It is an
essential marketing tool in modern business trade. Credit creates receivables,
which the firm is expected to collect in near future. A firm grants credit to its
customers so that its sales are its customers so that its sales are not lost to
competitors.
Account receivable constitutes a significant portion of the total current assets of
the business after inventories. The receivables arising out of credit has three
characteristics.
I.
II.
III.
Page 78
Year
Sales
Avg.
Ratio
Debtors
Collection
Period
2007-08
927937551
50998182.5
20.61
117.7
2008-09
464926581
45016883.5
10.33
35.33
2009-10
836956557
9378296.5
89.24
4.09
(Table 7)
Page 79
89.24
90
80
70
60
50
Debtors T urnover
Ratio T urnover Ratio
Debtors
40
30
20
20.61
10.33
10
0
2007-082008-092009-10
Year
117.71
100
80
Debtors T urnover
Ratio
Debt
Collection
P eriod
60
40
35.33
20
4.09
0
2007-082008-092009-10
Year
b. Management Of Inventory: Inventory constitute major portion of current asset of public Ltd. Companies in
India .The manufacturing companies hold inventories in the form of Raw
material, work-in-process and finish good,
There are at least three motives for holding inventories.
(1)
Page 80
Page 81
2007-08
2008-09
2009-10
329550.5
331822.5
414866
2 Total
Current
Assets
929189
1086729
1327797
3 Cost of
Good Sold
760872
891349
15207147
1 Average
Inventory
Ratio (%)
a)Inventor
y to Gross
Working
Capital
(1/2)
0.35
0.30
0.31
b)Inventor
y Turnover
(3/1)
2.31
2.69
3.67
c)Inventor
y
Conversion
Period
(365/b)
days
158
136
99
Page 82
3.67
3.5
3
2.5
2.69
2.31
2
Inventory T urnover
Inventory T urnover
1.5
1
0.5
0
2000-01 2001-02 2002-03
Year
158
136
120
99
100
Inventory
T urnoverConversion
Inventory
P eriod (days)
80
60
40
20
0
2000-012001-022002-03
Year
Balance sheet
Page 83
As at 31-3-
As at 31-3-
As at 31-3-
2008
2009
2010
A Source of funds
1 shareholder's fund
(a) share capital
(b)share application money
(c)reserves & surplus
2 loan funds
(a)secured loans
(b) unsecured loans
A
B
19925000
8898100
125217782
19925000
8898100
123415143
38710600
75000
130537813
C
D
69338485
110410394
108862224
140410394
119596814
110410394
405687
Total
334195448
B application of funds
1 fixed assets
3911452
401510861
403242074
4
295188592
65713872
372168586
288010300
84158286
435966210
299384398
136581812
55329062
53367814
58390710
121656743
101996365
68100612
44560954
336314674
209523753
90033767
90096721
106911493
496565734
130799036
18756593
107561880
29101568
286219077
115106501
8191872
123298373
231306472
3374246
234680718
70688700
7306229
77994929
213016302
261885017
208224149
136212
20999744
45404
334195448
401510861
403242074
E
36090246A
2 Investments
current assets, loan &
3 advances
(a)inventories
(b)sundry debtors
(c)cash & bank
(d)deposits, loan & advances
less: current liabilities &
provisions
(a)current liabilities
(b)provisions
Page 84
2008
J
K
L
total
As at 31-3-
As at 31-
2009
3-2010
86395655
927937551
7986587
464962581
11654451
7
11535793
17325875
-17030170
-223566
87526878
953250013
459586862
2 Expenditure
material consumed
manufacturing &
71775783
810582496
365998510
57204530
44053624
48800575
23510612
26099212
33716076
16418141
11746634
13754868
45404
45404
45404
81407475
907761183
447943384
45488831
4924719
20607478
12747650
34194030
5994205
40564111
5372717
7859828
950365
28199825
11374099
35191394
-1642536
16825726
operating expenses
employee's
remuneration &benefits
sales & administrative
expenses
preliminary expenses
N
O
P
written off
total
profit before financial
3 chrg; dep & tax
financial expenses
profit before
Page 85
4516772
189820
213655
-405687
286028
30271147
-1522877
9828053
10856509
forward
less: previous year
5043589
110367730
561451
279762
-2207643
adjustment
add: MAT credit
entitlement
balance carried to
3086222
3911452
5049474
12565026
balance sheet
34753285
108565091
As at 313-2008
As at 313-2009
As at 313-2010
A Source of funds
1 shareholder's fund
(a) share capital
(b)share application money
(c)reserves & surplus
2 loan funds
(a)secured loans
(b) unsecured loans
5.962
2.662
37.468
4.962
2.216
30.737
9.599
0.0185
32.372
C
D
20.747
33.037
27.113
34.970
29.658
27.380
100
0.970
100
0.121
100
total
B application of funds
1 fixed assets
Page 86
107.991
88.328
19.663
92.692
71.731
20.960
108.115
74.244
33.870
16.555
13.291
14.480
36.402
30.519
20.377
13.333
100.634
52.183
22.423
22.439
26.627
123.674
32.436
4.651
26.674
7.216
70.979
34.442
2.451
36.894
57.609
0.840
58.449
17.530
1.811
19.341
63.740
65.224
51.637
0.040
5.230
0.011
100
100
100
5 miscellaneous expenditure
total
ANALYSIS THROUGH RATIOS: The ratio analysis provides guides and clues especially in sporting
trends towards better or poorer performance and in finding out
significant deviation for any average or relatively applicable standards.
The following are the important ratios to measure the current financial
status
1. Ratios relating to liquidity of working capital: Liquidity ratios are used to measure the ability of firm to pay its
maturing obligation in time. This ratio helpful for both short-term
creditors and internal management of the firm. The following are types
of ratios relating to liquidity of working capital.
A.REVENUE STATMENT RATIO
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 87
*100
2007-08
360902464
= -------------------927937551
*100
=38.89
2008-09
372168586
= -------------------464926581
*100
=80.04
2009-10
435966210
= -------------------836956557
*100
=52.08
Interpretation: In the year 2006-2007 the G.P ratio is low, so it indicates that the cost of sale is high or
that the purchasing is inefficient. In the year 2007-2008 and 2008-2009 these ratio is consequently
increasing.
*100
2007-08
65713872
= -------------------927937551
=7.08
*100
Page 88
*100
= -------------------464926581
=18.10
2009-10
136581812
-------------------836956557
*100
=16.31
Interpretation: This ratio is used to measure the overall profitability. It is generally fluctuating and very
less. Managers have to try to increase it.
c.operating ratio
=
COGS + Operating
--------------------
*100
Net Sales
COGS = opening stock + purchase closing stock
2007-08
=
810528496+73622671
-------------------927937551
*100
=95.28
2008-09
=
356998510+55800258
--------------------
*100
Page 89
717757831+62555443
-------------------836956557
*100
=93.23
Interpretation: This ratio shows the efficiency of the management. The higher the ratio, the less will be
the margin available to proprietors.
d.expenses ratio
1.administrative ratio
Administrative expenses
=
*100
-------------------Net Sales
2007-08
16418141
= -------------------464926581
*100
=3.53
2008-09
11746634
= -------------------464926581
*100
=2.526
2009-10
13754868
*100
= --------------------
Page 90
*100
2007-08
4924719
= -------------------927937551
*100
=0.53
2008-09
12747650
= -------------------464926581
*100
=2.74
2009-10
5994205
= -------------------836956557
*100
=0.716
Page 91
4.liquidity ratio
Liquid assets
= -------------------liquid liabilities
2007-08
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 92
213016302 - 95947064
-------------------115106501
=1.01
2008-09
261885017 195879321
=
-------------------231306472
=0.285
2009-10
208224149 125253893
-------------------70688700
=
=1.173
Interpretation: Its optimum ratio is 1:1. In the year 2009 its liquidity position is improved.
e.propritary ratio
Share holders fund
= -------------------Total assets
2007-08
154040882
= -------------------334195448
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 93
2009-10
169323413
= -------------------403242074
=0.4199
Interpretation: This ratio below 50% alarming for the creditors since they may have to lose heavily in the
event of factorys liquidation on account of heavy losses.
However company recovered its ratio in year 2009.
f.debt-equity ratio
Long term debts
= -------------------Share holders fund
2007-08
78420987
= -------------------154040882
=0.50
2008-09
90033767
= -------------------152238243
=0.59
2009-10
18756593
= -------------------169323413
NAVNIRMAN INSTITUTE OF MANAGEMENT
Page 94
*100
2007-08
65713872
= -------------------154040882
*100
=42.66
2008-09
84158286
= -------------------152238243
*100
=55.28
2009-10
136581812
= -------------------169323413
*100
=80.66
h. Debtors Turnover Ratio: This ratio shows the period of which receivable remain uncollective.
The ratio is doubled in 2002-03 as compared to 2000-01. So serious
steps should be taken to reduce the collection period though sales
increase.
=
*365
Page 95
2007-08
78420987
= -------------------927937551
*365
=30.846
2008-09
90033767
= -------------------464926581
*365
= 70.682
2009-10
107561880
= -------------------836956557
=46.908
*365
Interpretation: Higher the number of collection days more unsatisfactory for the company.
2007-08
927937551
= -------------------334195448
=2.776
Page 96
2009-10
839656557
= -------------------403242074
=2.082
There are some job qualifications and experience which are required for- some posts or
designations. So here the appropriate and minimum job qualification and experience for the
appropiriate designations is given below
:
Conclusion: -
During my industrial training at Himson Textile Engineering Industries Private Ltd., I found
that there is co-operative managerial staff & workers & also good & efficient management
in each & every department & workers are fully satisfied with their management because
the main purpose of Himson is to achieve their goals involving each & every employee.
Since its establishment, it has been profit-making organization.
Page 97
Company Profiles
[1970] Onwards
In the 1970, the main focus was moves towards high growth.
At this time, the company saw the opportunity for manufacturing
synthetic yarn, processing machineries. The market for these
products was large but untapped. The seeds for these were shown
with the commencement of manufacturing of up twisting and
rewinding machines and Himson Textile Engineering Company Ltd.
came in to being.
Page 98
In 1978, the company came on the fast track. But the real
momentum to growth was provided in 1978, when Himson Textile
Engineering Company Ltd. tied up with Earnest Scragg Sow Ltd.,
U.K. to manufacture draw texturising machines in India. Then, the
company satisfied the local requirements by the way of getting
best technology which was available in abroad. This strategy has
been performing well and has made the company an undisputed
leader in synthetics yarn processing machinery. This has been
achieved by capturing almost 85% market share in spite of big
competition from leaders. Synthetics yarn-processing machinery
has been accepted leadership by leading POY manufactures by
placing large quantity of machine orders. Himson Textile
Engineering Company Ltd. provides efficient and prompt after sale
service to the customers so that Himson Textile Engineering
Industries Pvt Ltd. also enjoys high reputation for in house
research
and
technology
developments.
Himson
Textile
Engineering Company Ltd. has captured more than 70% of the
domestic market share to supply synthetics yarn machinery.
1989-90
1996-97
6.0 Millions
Page 99
1954
1955
1970
1974
1977
1978
1979
1982
1983/84
1985/86
1987
1988
1989/90
delivered
to
Sr
Designation
no
skill
Experience
Manger
Bachelor of
engineering with 5
years works
experience.ORdiploma in
mechanical
engineering with 8
years works
experience. OR i.T.i
with 10 years works
experience.
Assistant
works
manager
Bachelor of
mechanical
engineering with 2
years work
experience. OR
diploma in
mechanical
engineering with 6
years works
experience. OR I.T.I
with 10 years works
experience.
Maintenance Bachelor of
in charge
mechanical
engineering with 4
years works
Knowledge of machine
tools. Capable to maintain
the machines in good
working condition. Capab
to co-ordinate with
production dept.
Purchase
officer
Bachelor of
mechanical
engineering OR
diploma in
engineering
Capable to co-ordinate wi
planning department goo
communication and
negotiation skiil knowledg
of MRP system. Marketing
skill.
Stores,
inward and
dispatch in
charge.
Graduate in any
faculty with 3-years
works experience
Sr.
Designation
Skill
Planning
Incharge
Experience.
Knowledge of MRP
system. Good coordination skill.
Document control
incharge
Diploma in mechanical
NO.
6
engineering
Detail knowledge of
documents.
Knowledge of compu
operating.
8
Production
Engineer
Capable to handle
workers
Knowledge of tooling
machines. Knowledg
MRP system
Quality control
Knowledge of measu
Engineer
Instruments. Analyz
QC data for continua
improvement purpo
Capable to co-ordina
with production
department.
10
Maintenance
Engineer
11
Supervisor
I.T.I
Knowledge of machi
tools. Capable to
maintain the machin
in good working
conditions.
Capable to handle
workers
Knowledge of tooling
machines & inst.
Knowledge of MRP
system.
12.
Maintenance
Knowledge of machi
tools. Capable to
maintain the machin
in good working
condition.
Knowledge of measu
instruments.
Supervisor
13
Quality control
Inspector
Capable to read
engineering drawing
14.
Clerks
S.S.C
Knowledge of compu
Maintenance
Capable to maintain
machines in good
working condition.
16
Operator
Knowledge of tooling
machines & instrum
Previous Year
in (Rs. in 000s)
39,106
31,222
1977
1677
1183
802
3251
2341
255
496
1183
---
856
767
Gratuity
Exgratia &
Production
Incentives/Utility
Service
Cost means the monetary value of the product, which should be decrease without
compromising with the function of the product.
Description/Specification : * Most suitable for producing precision wound packages. * Ideally suitable for dyed
and/ orgrey Nylon, Polyester, Polypropylene and other filament yarns. * Feed
packages of cones, cheese, dye packges, cops and twisted yarn packages. * Highly
precise traverse boxes gives winding speed up to 700 mts/min. * Anti pattering and
ribbon breaking mechanism for producing best quality packages. * Gate tensioners
for uniform tensioning. * Take up package weight up to 2 kgs. * Can adopt
intermingling jets for producing assembly wound yarns up to 3 ply. * Lick rollers
type oiling system. * Sturdy and robust machine structure gives vibration free
operation.
Company Name :
State of the art individual shaft driven inverter controlled two for one machine series. All
parameters are settable through MMI making operations of the machine overly simplified.
Precision control of all parameters give excellent control over entire machine operation giving
world-class yarn quality. * Equipped with best quality spindles. * Most suitable for producing
low & medium twist yarn of polyester, Nylon, Polypropylene and other filament. *
Adjustment ceramic overfeed roller speed for variety of yarn and twist range. * Considerable
Description/Specificatio
savings in power and labour cost due to its well designed drive arrangement and ergonomic
n : layout. * Individual Taper Mechanism gives precise build packages. * Sturdy and robust
machine structure gives vibration free operation.
We offer quality knittings machines that provide excellent stitch and finish. Variety of
knitwear's with innumerable pattern can be produced using these machines. These machines
are fully automated and are designed for perfect accuracy. Fitted with adjustable drives for
speed control, our range of knitting machines are available with variety of optional
Description/Specificatio accessories. Standard Features : * Electronic needle fault detection * Hand Rack unit *
n : Uniwave element + cam lubrication * Three sets of inch 'stop' start buttons * Safety door
switch Timed internal needle + sinker blower system * Digitally controlled AC drive *
Bottom blower and top fans (Lint removal) * Collective stitch cam adjustment * Digital
display unit featuring : Run speed display, roll size stop, shift counter with totalizing and preset readout.
Company Name :