1

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, GANPAT

UNIVERSITY, KHERVA

GENERAL
INFORMATION
 2

CONTENTS

GENERAL INFORMATION: -

1. Introduction

2. Executive summary

3. Company profile

4. History and development

5. management body

6. industrial mission

7. organization structure

8. Achievements

9. philosophy

10. ISO 9001-2046 certificate

 3

:::::::::: INTRODUCTION :::::::::

COMPANY NAME

SAMRAT NAMKEEN LIMITED

178-1-B, Phase-1, G.I.D.C., Naroda,
Ahmedabad 382 330
Gujarat, India.
Phone : 91-79-22823329-32-84
Website : http://www.samratnamkeen.com

It’s A Real Experience

Of Home
 4

EXECUTIVE SUMMARY

In B.B.A training is very important. Such training is very helpful to

increase the skill, ability and capacity of students. Through the training a
student gets in to contest with various aspects and dealing of the firm and
gets knowledge about industrial environment. It is a time in which, we can
implement our theoretical knowledge in practical.

Each and every department have very educated and trained people in
marketing department. SAMRAT has certain quality, policy, philosophy, sales
policy which is strictly followed by department. They believe in market as a
world.

Samrat has good human resource at present it has 260 employees

working for it. SAMRAT faces a strengthen its human capital through
continuous trainees. As a result, the companies’ industrial relation remains
cordial at etc, plants through out the world.

I have tried my level best to prepare the project report. During this
training, I have collected all the information about the market situation of the
company. We have given a brief explanation of the all project process.

This project profile guidelines the factors concerning investment in

manufacturing plans business shows.
 5

INTRODUCTION

Indian food is known for its mouth-watering potentiality in the entire

globe. Namkeen is a popular food item, savored by one and all owing to its
spicy, crunchy and crispy taste. Samrat Namkeen Ltd. is a noted
manufacturer, exporter and supplier of premier quality namkeen products.
The eminent enterprise offers a wide range of healthy, hygienic and tasty
namkeens such as Alu Wafers (salted), Alu Wafers (masala), Kela Wafers
(Mari), Kela Wafers (masala), Farari Chevda-mola, Farari Chevda-thika,
Sing Bhujia, Mung Dal, Bikaneri Sev, Ratlami Sev, etc. Incepted in the
year 1979 as a small home-made eatables unit at Swaminarayan Temple,
Narayan Ghat, Ahmedabad, Gujarat, the company established itself as a
market leader by delivering unparalleled products at the most reasonable
prices.

Today, the Samrat brand posts a turnover of more than Rs. 15 crore,
and reaches the length and breadth of India through a huge network. Our
products are exported to the US, Middle East, South Africa and many other
countries. The company has obtained memberships of the Snack Foods
Association, USA, Agricultural & Processed Food Products Export
Development Authority (APEDA), India, Gujarat Chamber of Commerce &
Industry (GCCI), Gujarat International Trade Promotion Council, Ahmedabad
Mithai & Farsan Association, etc. It also has export approvals from the
Reserve Bank of India, and the Import Export Code. Samrat was the first of its
kind to receive official permission from the Indian Railways to supply its
products inside railway stations -- opening up for the brand a gigantic
marketplace.
 6

FUTURE PLANS

We will bring out more and more traditional food items of Gujarat in a modern
packaged format, and offer them to taste-lovers everywhere. The company is
planning to experiment and introduce more blend recipes that combine
traditional Namkeens with popular food items from other States of India and
with even Continental and European cuisines.

INFRASTRUCTURE

We have a well equipped facility located at GIDC zone at Naroda,

Ahmedabad which is armored with innovative technologies to manufacture
world class items. The company possess automated machineries that help it
to ensure smooth and efficient production. We reach the length and breadth of
India through a network of more than 200 distributors and 35,000 retailers.

WHY SAMRAT IS CHOSEN? (REASONS FOR GROWTH OF

SAMRAT)

• Reputation based on quality, reliability and integrity

• Company USP defined by customer satisfaction and expansion of
client base
• Meeting the exacting requirements of the customers and standards of
the industry
• Production unit installed with the latest modern technology and facilities
• Team of experts to monitor the manufacturing process
• Top-notch quality products manufactured following stringent quality
checks.
 7

COMPANY INFORMATION

Establishment Year: 1979

Firm Type Public. Ltd
Phones (Office) +91-79-22823329-32-84
Fax +91-79-22823383
Nature of Business: Manufacturer
Level to Expand: International
Address 178-1-B, Phase-1, G.I.D.C.,Naroda
AHMEDABAD - 382 330
(Gujarat) India

TOTAL AREA COVERED

The size of SAMRAT unit is according to the plants covered in

that approximately there are 8 plants covering 5500 square feet’s

Area covered by whole unit is 8500 square feet’s.

 8

1. COMPANY PROFILE

The story of Samrat Namkeen is sweet and simple.

It began as a small home-made eatables unit at Swaminarayan Temple, Narayan

Ghat, Ahmedabad, Gujarat INDIA in 1979.

Wafers Sevs, Bhujias, Daals, Chavana, Cheevda made in ancient gastronomic

traditions of Gujarat.

The tastes were irresistible, the products are fresh, and the packing is hygienic.
Customers responded enthusiastically. And in the following years, the company
evolved continuously, dictated by customer demands and market trends.

Today, Samrat is a snack foods conglomerate that manufactures 24 popular

products. These products reach taste-lovers in every nook and corner of Gujarat.
They are also exported quite successfully. Today Samrat is quoted as one of
Gujarat's most inspiring scratch-to-riches stories. Not really surprising Samrat is
quoted as one of Gujarat's most inspiring scratch-to-riches stories.
 9

A STORY OF GUTS & GOOD TASTE

1979. Mr. Jayshankar S. Vaid was young, and his mind was brimming
with ideas of enterprise.

Through the week, he scouts around for an entrepreneurial break. He

visited and studied various industries weigh pros and cons.

On weekends, Jayshankar indulge in what most of his friends thought

was an unusual hobby -- making Nankeens. On those days, he had turned his
kitchen into a virtual R&D lab for his experiments in Nankeens. Later, he would
relish these with his family and friends

Then one day, in a moment dictated by destiny, the thought struck him:
why not turn the hobby into a business? After all, everyone likes to eat good
things.

Thus began Jayshankar's life as a Namkeen manufacturer.

He was a modest man, but named his product 'Samrat', meaning

'King / Emperor’, because he was confident of its taste value. He himself
prepared the Nankeens, pack them and supplied to homes nearby. There was no
way that such conviction could lose.

Today he employs more than 210 people and more than 23 sumptuous
food items are marketed under the Samrat brand.Today, he has taste experts,
foods scientists, management veterans, and a network of marketing channels, to
take the Samrat brand far and wide.

But there is one aspect of his business that he still directly controls --
QUALITY. And this is the reason why Samrat products still retain their home-like
crunchy taste and freshness.
 10

3. ORGANISATION STRUCTURE

In Samrat the Line Sales Organization Structure is being used. The line
organization is the oldest used in similar firms and in firms with small numbers of
selling personnel. The chain of command runs from the top sales executive down
through subordinates. All executive exercise line authority and each subordinate
is responsible only to one person on the next higher level. Responsible is
definitely fixed and those charged with it also make decision and take action.
Lines of authority run vertically through the structure, and all people on any one-
organization level are independent of all others on that level.

The line sale organization sees its greatest use in companies where all
sales personnel report to its chief sales executive. In this company this executive
often is preoccupied with active supervision and seldom has much time to devote
to planning or to work with other top executive.

Occasionally however the line sales organization is use where more than
two levels of authority are present. In the line sales organization Regional Sales
Manager reports to the General Manager of the sales Department and the Area
Sales Manager reports to the Regional Sales Manager of the sales Department
and the senior and the Junior level Sales Executive repots to the Area Sales
Manager of the Sales Department.

The basic simplicity of line organization is the main reason for its use.
Each department member reports to only one superior, so problem of discipline
and control are small.

The lines of authority and responsibility are clear and logical and it is
difficult for individual to shift or evade responsibilities. Definite placement of
 11

authority and responsibility saves time in making policy change in

deciding new plans and in converting plans into action.

The simplicity makes it easy for executives to develop close relation with
sales persons. With this working atmosphere it is not surprising that executives
who come up through a line organization are frequently strong leaders. As the
typical sales department has few organization levels administrative expenses are
low.

The greatest weakness of the line sales organization is that so much

depends upon the department head. The head needs outstanding ability and rare
qualifications and should be well versed in all phases of sales management for
there are no subordinates with specialized skills and knowledge. Even if the head
is an all around expert there is insufficient time for policymaking and planning
since rigidity of the line structure requires that a great deal of attention be given to
direction of sales operation. The head often must make decision and take action
without benefit of planning. Under such condition results are often disappointing.

The sales-department structure is consists of eight levels. There are

different positions are located at different levels. They have different kind of
responsibility according to their level. It is shown in the figure below.
 12

SALES DEPARTMENT STRUCTURE

Managing Directors

General Managers

Regional Managers

Area Sales Managers

Sales Executive-Senior

Sales Executive-Junior

Sales Coordinator

Line shows who orders whom? Peons Line shows who

reports whom?
 13

Here as shown in figure there two types of lines are shown. The
line with upward direction shows who orders whom?
 14

SALES MANAGEMENT AND NATURE OF DIFFERENT POSITIONS

“Sales Management” originally referred exclusively to the direction of sales

force personnel. Latter the term took on broader significance in addition to the
management of “Sales Management “ meant management of all marketing
activities including advertising sales promotion, marketing research, physical
distribution, pricing, and product merchandising.

Objective of sales management

From the Samrat company point of view there are mainly three objectives
of sales management:

1. Sales volume
2. Contribution to profits
3. Continuing growth

Top management has the final responsibility because it is accountable for

the success or the failure of the company. Ultimately top MD is accountable for
the supplying an ever-increasing volume of “socially responsible” products that
final buyers want at satisfactory prices.
Top management delegates to marketing management which then
delegates of sales management sufficient authority to achieve the three
objectives. In the process objectives are translated into more specified goals are
broken down and restated as definite goals that the company has a reasonable
chance of reaching. Once these goals are finalized it is up to sales executives to
guide and lead the sales personnel and middlemen who play critical roles in
implementing the selling plans.
Sales managements then is influential in charting the course of future
operations. It provides higher management with informed estimates and facts for
making marketing decisions and for setting sales and profit goals. Largely on
sales management appraisal of market opportunities targets are set for sales
volume gross margin and net profit in units of product and in dollars with
benchmarks of growth projected for sales and profits at specific future dates.
 15

SALES MANAGEMENT AND FINANCIAL RESULTS

Sales management and financial results is closely related. Financial

results are stated in terms from two basic accounting formulas:

Sale-Cost of sales = Gross margin.

Gross margin-expenses = Net profit

Sales management influences the “numbers cranked into these formulas.”

Sales, gross margin, and expenses are affected by the caliber and
performance of sales management and these are the major determinants of net
profits.

Sales executive as coordinator

Optimum marketing performance in terms of sales volume, net profit, and

long term growth requires coordination and sales executives play significant roles
in coordinating. Sale executive have responsibilities for coordination involving

1. The organization
2. The planning
3. Other elements in selling strategy.

Inside the sales department from the department head on down all sales
executive are responsible for coordinating the organizational units under their
control in sales department that function smoothly generally democratic
administration is the rule. All subordinate affected by a decision are consulted in
advance and are allowed to participate in making it thus reducing the tendency to
resist directive is issued by superiors.
The sales executive having specialized knowledge of the market and of
the capabilities of the sales force is involved in achieving coordination in
marketing objective and drafts plans that achieve desired results at optimum cost
sales executive determine the elements that make up the marketing program.
 16

The sales executive as a member of the planning group seeks to secure a

marketing program that is both appropriate for market conditions and results the
probable contribution of the sales force.

Sales executive are involved in coordinating other promotional efforts with

the personal selling effort. Pont of purchase displays for example are sets up in
retail stores where customers will see them at the precise time that tie in
advertisement appear in national and local media. It is the job of the sales force
to achieve this timing and coordination. In a similar manner, a sales personnel
alerts dealers to special coupon or sampling efforts so that they can benefits from
heightened customer interest.

Nature of sales management position

The requirements of the sales executive’s job vary from company to

company and from position to position within companies. However in Samrat
Regional sales manager, Area sales manger, senior sales executive, junior sales
executive and coordinator are there in the sales department. Some companies
have formulated concise statement of duties associated with various positions.

Regional Sales Manager

The Regional sales manager reports to the General manager of the

company.

The primary objective is to secure maximum volume of rupees sales

through the effective development and execution of sales program and sales
policies for all products sold by the division. The Regional sales manager takes
the initiative in establishing short and long range goals of the division and in
collaboration with marketing executives, sets a goal, profits, growth, and other
goals. The Regional sales manager establishes an effective plan of organization
and method of controlling the activities of members of the sales organization that
will provide sufficient time for carrying out the full line of department
responsibilities.
 17

The Regional sales manager develops effective working relationship

with other department’s heads and the general manager so that significant sales
developments can be translated into appropriate course of action. The Regional
keeps the General Manager of the company informed on sales results and future
plans of operation. The Regional sales manager establishes a system of
communication with others sales personnel that keeps them informed of overall
department sales objectives results and problems and keeps the other informed
of their needs and problems.

The Regional sales manager provides for the training of new personnel
so as to achieve high-level performance in the shortest possible time. The
manager sees if there is any adequate supply of sales executive talent for
replacement up through and including the sales manager own positions.

The Regional sales manager consults with the production manager so

that production rates and inventories are geared as closely as possible to actual
sales needs. The sales manager review and approves sales and expense
budgets and evaluates periodically the performance of sales activities in relation
to budgets and sales goals and takes such corrective actions as are required.
The Regional sales manager delegates authority and develops control records
and performance standards to permit a proper balance of time spent of the
various activities in this jobs description.

Area Sales Manager

The Area sales manager reports to the Regional sales manager of the
company.The main objective is to obtain maximum rupees sales of the
company products in the sales area in accordance with established sales
policies and sales programs within limits if the sales budgets. The Area sales
manager is responsible for the effective deployment of selling efforts and the
maintenance of good trade relations in the assigned area.
 18

The Area sales manager evaluates the sales opportunities in the area
and assign territories that have equitable work loads and that permit minimum
travel costs so as to secure maximum rupees sales at minimum costs. The Area
sale manager assists and supervises sales personnel in maintaining and
improving the company competitive position and in handling special sales or
competitive position and in handling special sales or competitive problems. The
Area sales manager forecasts short term sales of the Area and works with sales
executives in estimating future sales in their territories so that accurate sales
budgets and sales quotas can be developed.

The Area sales manager reports on significant sales or competitive

developments that may affect the company futures. The Area sales manager is
responsible for the efficient administration of the Area office operation and
warehouses and stock facilities in accord with established policies and
procedures.

The Area sales manager studies and analyzes the plants program and
policies originating in the home office and interprets them to sales staff so that
these plans program and policies can be coordinated in the Area activities. The
Area sales manager communicates to the Regional manager and the top
administration any information about customer and market or about customers
and markets or about of personnel that should be of interest to them.

The Area sales manager maintains membership in professional

organizations whose activities are of interest and concern to the division so as to
promote better customer relations and develops intelligent sources.
 19

Function of the Sales Executive

Sales Executive in the Samrat Enterprise come at the level 6 to 7 that

is 6 for Senior level Sale Executive and 7 for junior level Sale Executive. Effective
sale executive are well above average in initiative and personal drive. Effective
sales executive plan and implement their own self-development programs and
setting definite career goals is essential. They harmonize their own foals with
those of the organization. Effective sales executive accept responsibility for all
activities related to their position but they avoid becoming indispensable.
Indispensability is undesirable for both the executive and the company. For the
sales executive it means blocking opportunities for promotion for the company it
means that too much is being staked on one individual. One-way to avoid
becoming indispensable is to practice and advocate delegation of authority and
effective sales executive.

Effective sales executive are highly qualified as problem solvers and

decision makers. Consequently sales executive guard against taking too many of
their problem to top management. This level sales executive keeps top
management informed on important decisions and the department plans and
accomplishment. They transmit all ordinary reports promptly and special reports
when appropriate. They exercise restraint in reporting their own activities but they
see that their superiors have all the information needed to evaluate their personal
effectiveness. Their reports ensure that top management knows in broad outline
the problems encountered in selling the company products.

In the ideally organized sales department wasted motion a

duplication of efforts would be eliminated friction would be minimized and
cooperation maximized. Dynamic characteristic inherent in marketing preclude
the achievement of such perfection. But the sufficient attention is given the sales
organization.
 20

In the Samrat Company the Samrat Enterprises does all the sales
organization works. In this structure of the organization is formed of different
levels. This levels are divided from 1 to 8 that is 1 is the M.D. of the company
(owner of the company), 2 is the General Manager of the company it does the
work of making the new policies for the company new area to explore by the
company to increase the profit of the company, 3 for the Regional Sales Manager
it’s work is to look after the Region (for e.g. Gujarat state) assign to it all the sales
related programming done in this comes under Regional Sales Manager, 4 Area
Sales Manager it’s work is to take order from the Regional Sales Manager and to
give the order to the Senior level Sales executive, 5 Senior level Sales Executive
is to does under the Area Sales Management , 6 Junior level Sales Executive
works under the Senior Sale Executive and Area Sales Manager, Second last is
the 7 Coordinator and the last is 8 that is the peons.
 21

MANAGEMENT BODY

 WHOLE TIME DIRECTOR: -

Mr. Bhavin J. Vaid (Director)

(Mobile:+919879550300)

 DIRECTORS

Mr. Navinbhai V.Panchal

 AUDITORS

Mr. Haresh S. Kansara

 BANKERS

BANK OF BARODA
State Bank Of India
Sarvoday Co-Operative Bank

 REGISTER OFFICE

SAMRAT NAMKEEN LIMITED

178-1-B, Phase-1, G.I.D.C., Naroda,
Ahmedabad 382 330
Gujarat, India.
Phone : 91-79-22823329-32-84
Website : http://www.samratnamkeen.com
 22

INDUSTRY MISSION:

Continuously innovate to remain partners in human progress by

harvesting engineering and technology in the machinery domain.

INDUSTRY VALUE:

Integrity respect for people unity of the purpose outside in focus, agility
and innovation.

INDUSTRY VISION: -

Be a globally preferred business associate with responsible concern for

ecology society and shareholders values.

QUALTY POLICY: -

“We at SAMRAT
Are committed to meet customers ‘requirement
Through continual improvement
Of our quality management systems.
We shall sustain organizational excellence
Through visionary leadership and innovative efforts”
 23

ORGANISATION STRUCTURE

BOD

PRODUCTION MARKETING FINANCE

DEPARTMENT DEPARTMENT DEPARTMENT

A/C & FINANCE

PRODUCTION ADVERTI. SALES MANAGER
MANAGER MANAGER MANAGER
ACCOUNTANT

PURCHASE
MANAGER ADV.OFFI. SALESMAN

WORKERS
 24

PRISING POLICY

Price is one of the important elements in the marketing mix. A pricing

policy provides guidelines to the marketing manager to involve appropriate
pricing decision. A “price” for a product or services refers to the amount of
money need to acquire that product or services. In competitive business
marketing manager strive to establish pricing policies for good or services to
meet certain objective. Pricing is decided by great wise ex-works selling price.
There are different great of each machine.

Pricing is the main factor of the product. Price is the marketing mix
element that produces revenue. It is one of the most flexible elements also.
No one choose price by any way. Companies handle pricing in a variety of the
way. In small company the prices are obtain set by the company’s boss. But in
the large companies, pricing is handling by the division and product manager.

SAMRAT namkeen have stable price policy. SAMRAT doesn’t ready to

compromise with their quality of products. So they have fix price policy. Their
price is not much costly but it is suitable to their products. Their price is
reasonable also.

24
 25

PHILOSOPHY

CUSTOMER FRIENDLINES: -

Company’s approach has always-lean customer friendly and

flexible to accommodate, update and innovate to be in tune with the times.

QUALITY: -
Total quality management… people, technology, product and
services.

RELIABILITY: -

Committed to performance right first time, on time, every time.

CUSTOMER CARE: -

i. Best services
ii. Finest products
iii. Quality deals
iv. Delivery on schedule

25
 26

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, GANPAT

UNIVERSITY, KHERVA

PRODUCTION
DEPARTMENT

26
 27

CONTENT

PRODUCTION DEPARTMENT: -

1. Introduction

2. Products

3. Production process of the machines

4. Units

5. Controls

6. Productivity

27
 28

INTRODUCTION

PRODUCTION DEPARTMENT: -

Mostly all manufacturing units having different production process of

any unit may be mostly depend upon the size and nature of the industry any
quality of the raw material machinery and technology is used in this
production.

The production process may be shorter or longer. In small scale

industry the production process may be shorter but on other hand in large
scale industry the production process may be longer. In large scale industry
the longer production process may suffer many practical problems at the time
of production.

Mostly the higher reliable company uses production process that

contents the high technology, super power machinery, and very fast and latest
components.

28
 29

PRODUCT RANGE

Samrat Namkeen Ltd. is a renowned manufacturer and exporter of

more than 24 lip smacking products. The company offers a whole range of
spicy, scrumptious taste experiences that satisfy connoisseurs and common
people alike. Our catalog of products include:

Alu Wafers (Salted) Chana Dal

Alu Wafers (Masala) Chana Jorgaram
Kela Wafers (Mari) Lasan Sev
Kela Wafers (Masala) Ganthia
Farari Chevda-mola Tum Tum
Farari Chevda-thika Dal Moth
Sing Bhujia Bundi-tikhi
Mung Dal Bundi-moli
Bikaneri Sev Nylon Sev
Ratlami Sev Sada Sev
Alu Sev Chavana-mola
Chavana-tikha Khatta Mitha Mix

29
 30

DELICIOUS PRODUCTS

We develop our innovative recipes after consulting with experienced

chefs and gourmets from around the country. The company follows stringent
quality control procedures at every level of its production process to ensure
flawless production. We are backed up by a team of experienced chefs who
possess the magical power in their hands to prepare mouth-watering recipes
for mass consumption.

HEALTH AND HYGIENE

All our products are manufactured under healthy and hygienic

environment. The pulses, grains and fruits are sourced from Western India's
best markets on peak seasons, and kept in scientific storage. Our automated
packaging unit enables long-lasting freshness & total hygiene of the products.

PACKAGING

We offer our products in attractive and air tight packaging that not only
protect our products from any sort of contamination or damage but also
keeps the freshness and taste of the products for months. The date of
manufacturing and expiry date is printed in bold letters on the packet so as to
inform the consumers regarding the authenticity of products.

30
 31

2. PRODUCT PROFILE

Products

Today more than 25 lip smacking products come out under the Samrat
brand.

Alu Wafers (salted), Alu Wafers (masala), Kela Wafers (Mari), Kela
Wafers (Masala), Farari Chevda-mola, Farari Chevda-thika, Sing Bhujia, Mung
Dal, Bikaneri Sev, Ratlami Sev, Alu Sev, Chavana-mola, Chavana-tikha, Khatta
Mitha Mix, Chana Dal, Chana Jorgaram, Lasan Sev, Ganthia, Tum Tum, Dal
Moth, Bundi-tikhi, Bundi-moli, Nylon Sev, Sada Sev, a whole range of spicy
scrumptious taste experiences that satisfy connoisseurs and common people
alike.

What is more, though Samrat Namkeens are eaten and relished as

they are by hundreds of thousands of people, we have gone a step ahead, and
created a whole range of blend recipes (where Samrat Nankeens are blended
with other popular recipes to create new dishes).

These innovative recipes were developed in consultation with chefs

and gourmets from around the country.

You can replicate these blend recipes at home, and add more spice to
your home life.Or, if you are a restaurateur, you can use these imaginative blends
to attract more customers.

31
 32

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, GANPAT

UNIVERSITY, KHERVA

MARKETING
DEPARTMENT

32
 33

CONTENT

MARKETING DEPARTMENT: -

1. Introduction

2. export market

3. Distribution decision

4. SALES PROMOTION AND advertising

5. marketing research

6. public relations

33
 34

INTRODUCTION

MARKETING DEPARTMENT: -

Marketing department includes purchasing, selling and advertising.

Today era is of competition and advertisement. Mostly in all products and
services there is competition different types of advertisement are branded on
the minds of customers.

According to Philip kotler ‘the marketing concept is a consumer

orientation backed by integrated marketing aimed at generation customer
satisfaction as the key to satisfy organizational goals.

SAMRAT Namkeen is a unit of which producing machines. It has

national market particularly in the files of SAMRAT Namkeen. SAMRAT has
received to continuous exports award from Gujarat government of the years
2004-05.

The unit has been direct contact dealers in India and separating
marketing department of the unit.

34
 35

EXPORT MARKET
In the highly discerning export market. SAMRAT has been doing
substantial volumes of business. This has been made possible due to the
visionary thinking and dedicated approach of the management. Backed by an
unfailing commitment to excellence at every level as well as the ability to keep
pace with the changing needs and technologies.

SAMRAT exports a wide range of products to approximately 2 or 3

countries. Major 3 markets are mosko, Myanmar and UAE, which accounted
for approximately 54%, 19% and 8% respectably of total exports. With
growing international competitiveness. SAMRAT is able to make deeper in
roads in global markets.

35
 36

DISTRIBUTION DECISION

Generally company defines the distribution channel according to its

different purposes. But sometimes the company selects the channel according
to its budget and management bodies.

For selling products company had appointed dealers at one district

and main branch at state level.

Distribution system can be divided in to two parts, they are following: -

1. physical distribution
2. channel of distribution

 physical distribution: -

Physical distribution looks after physical handling of goods and

assures maximum customer service. It aims at offering delivery of right
goods at the right time and place to customer. It covers following
points.

 channel of distribution: -

“They lead, they follow, they control, they conflict, they co

operate” is said about the marketing channel system. It is very true
because the channel of distribution is most powerful element around
the marketing mix element. The main objective of channel of
distribution is no reduce the certain gaps in which the distribution
process.

We first have to study the channel process and types to study its
management. Usually there is four of channel used. i.e. level ‘0’ level ‘1’ level
‘2’ level ‘3’. They are: -

Level ‘0’ level ‘1’

Producer Producer

Producer Retailer

36
 37

Level ‘2’ level ‘3’

Producer Producer

Wholesaler Stockiest

Retailer Retailer

Consumer Consumer

So far as Samrat namkeen are concerned. It has adopted indirect method of

distribution. This had general level of distribution. Which are under: -

Producer

Distribution

Wholesaler

Retailer

Consumer

37
 38

This unit considered the following factors while selecting the channel of
distribution.

1. Experience of product selling

2. Payment period
3. Financial soundless
4. Delivery time etc.

SAMRAT has own three trucks for transportation of its products

to other states .it has also its own stream boiler for the stream.

So far as the distribution decision is concerned first of all this

unit considers the backward areas and villages. Then after it come in to city
areas. Because this unit’s view point in to make the base straightly and then
after to cover the whole area.

38
 39

SALES PROMOTION & ADVERTISING

Company promotes its sales by various ways like advertising,

discounting, and prizes etc. but only company can increase its sales which
attract the people very most by new ideas and ways.

Company had increased its sales easily by following ways. Those

ideas are following: -

 Advertising
 Television
 Magazines
 Sponsoring programs
 Relations
 Public services
 E-commerce
 Radio

39
 40

MARKETING RESEARCH

Marketing research is systematic design, collection, analysis and

reporting of data finding, relevant, to specific marketing situation facing the
company.

Learning, something more about consumer dealers and about

marketing mix is the heart of the if the marketing research. It is an invariable
tool in decision-making bases of scientific investigation and analysis of
marketing problems.

SAMRAT Namkeen does not follow any process of marketing research.

Therefore they have any expenses after it. They are always in contact with the
agents wholesalers who also provide marketing information to them

40
 41

PUBLIC RELATIONS

Generally most of the companies are become favorite and well known
by providing best facilities and best goods at a cheap rate and less prices than
other companies. This company had adopted this idea and become popular in
short time.

There are many partners in this company. So most of the locally public
very well knows that the company produces highly reliable products at cheap
rates.

But it is not public company. So relations are not so easily increased

by company at national & inter national level.

41
 42

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, GANPAT

UNIVERSITY, KHERVA

PERSONNEL
DEPARTMENT

CONTENT

42
 43

HUMAN RESOURCE DEPARTMENT: -

1. Introduction

2. Time keeping system

3. Recruitment

4. Selection policy

5. Induction policy

6. Promotion policy

7. Demotion policy

8. Transfer policy

9. Training and development policy

10. Appraisal system

11. Wages and salary administration

12. Recreational facilities

13. Infrastructure

14. safety

15. System of handling government department

16. System of handling grievance (chaotic environment)

17. medical

18. Welfare activities in detail

19. I.R. and H.B.L.

20. Training programmes

43
 44

INTRODUCTION

HUMAN RESOURCE DEPARTMENT: -

The management of people can be said a process of your steps

“getting, preparing, activating and keeping them “. The file of human
resources management i.e. human resource management is a very
complicated and changeling task for organization.

Personnel hold a key place in the industry. The success of business

also mainly begun of to a large extends on the quality of personnel. Moreover
the growth of business depends on the willingness and ability can exists and
functional without employees.

44
 45

TIME-KEEPING SYSTEM

Recording each and every attendance within the organization is known

as time keeping records. The time system should be maintained in office for
proper function of the administration generally the shift are 8 hours.

In SAMRAT Namkeen proper register is maintained for each employee

coming and going records are being maintained in touch namkeen the shift
are as follow: -

8:00 Am to 8:00 Pm.

The shift of recess time is 12:00 Pm to 1:15 Pm and the shift of 4

hours is overtime to it in 4:00 Pm to 8:00 Pm. Daily attendance are to be
taken.

45
 46

RECRUITMENT
Recruitment and selection policy is to recruit and promote most suitable
person. Suitability of candidate is to be judge by senior officer based on his

⇒ Academic qualification
⇒ Experience in and outside Samrat.
⇒ Nature of experience
⇒ Interview performance
⇒ Suitability for the post
⇒ Potential for future development

Direct Recruitments at Lower Management Level

P&A / finance = graduate + PG DIP from IIMs with specialization in personnel

managements / finance may be included based on campus selection, in G2”
as asstt.officer.

Procedure for Feeling The Post By Recruitments

⇒ Vacant position to be operated only when becomes necessary.

⇒ MD approved shall be obtained before initialing recruitments action.
⇒ Recruitment to various post will normally be made for the
followings source:

EE as per provision of EEC Act 1959.

By advertisements or on Nepune’s website.
Campus selection form premier instructions.
APP/Trainee
On contract for a specified period.
By deputation from other organization.
Consideration
Data bank application by touch namkeen based on job application
directly

46
 47

SELECTION

Generally selection is the process by which the qualified personnel are

chosen from the applicants who has offered them for jobs in the organization.
Selection procedures the most important function of personnel management
because it chooses the most qualify persons and by which organization can
achieve its objectives.

Following are the main steps of efficient selection of the employees.

1. Preliminary interviews
2. Application banks
3. Selection interviews
4. Employment interviews
5. Checking of reference
6. Group discussion
7. Physical examination
8. Placement.
SAMRAT is a partnership firm or medium scale unit. So they do not
use any scientific selection procedure but had adopted policy.

Employment offer

Physical Examination

Testing

Relative
Reference:&credit Check Degree of
Helpfulness
Interview

Formal Application
Expenses

Preliminary interview & Pre-

interview &screening

Reject

Time

47
 48

INDUCTION PROCESS

Who is candidate is finally selected he is issued the appointment and is

asked to join the organization.

Induction process is the process of inducting a new employee in an

organization. And rules and regulation of company should be understood to
him. He should be introduced with the employees and welcomed as a
member of family of the organization.

SAMRAT Namkeen not using any specially induction process, but they
follow simple induction programmer by introducing new employee about
information is provided so that he or he can adjust himself easily with the
organization.

48
 49

PROMOTION POLICY

It refers to a change from one job to another that is better in terms of

status and responsibility. In other words “advancement within an organization
is ordinary called promotion “it is vertical movement of the employee from one
post to another post.

Generally promotion is made from lower level to top level management.

Generally promotion bases on seniority, ability, and work

performance’s in this unit they give importance as well as seniority. It means
they give importance to all things to give employee promotion.

49
 50

DEMOTION POLICY

It refers to the movement of an employee from top level to bottom level

with involving some substantial change in his duties, status, salary, authority
etc.

Demotion exists in some special cases.

• When the employees punished by company.
• When he had done work which carry on company to loses and
many special kinds.

SAMRAT NAMKEEN has not adopted any special demotion policy top
level determines the demotion policy of any employees.

50
 51

TRANSFER POLICY

It refers to the movement of an employee from jobs to another without

involving and substantial change in this duties, responsibilities, skills, status,
and compensation.

Transfer exists in some special cases. To purpose of requirement of

second business unit of employees. The transfer may be exists from one unit
to another unit. While in case of punishment also transfer may be exist.

In present the transfer is also make to give employee new environment.

SAMRAT NAMKEEN has not adopted any special transfer policy.

TRAINING & DEVELOPMENT

51
 52

SAMRAT NAMKEEN always believes to make their man

power higher skill personnel so that efficiency of personnel can be
increased and that in turn to benefits of namkeen.

For training and development of workers and employees company

had arranged two programs. We can say that company is very helpful to
workers for development of them. These programs are arranged every year
after monsoon.

1. Workshop program – for training – in august 2006.

2. Information seminar – in November 2007.

Skill developments

It is done for the person who is directly recruited from collage of study.
So they just have bookish knowledge into practical work training is given.

Trainings for Existing employees

They develop skill among employee for new expansion, developments

of firm, projects works, medication, change in process etc.

Redevelopments:

it mean they are job of different departments to a persons will go for

instruments plants etc. so this is the kind of redevelopments where the person
is being put in various departments.

Purpose is to make him perfects in every kind of activities. Which

makes him confident & would increase satisfaction & the person does not get
tier out his job.

Job relation:

They rotate the person in their own departments like example in

personal departments person working in welfare will be transferred to
transport of industrial relation (IR). IR will look for other departments like
administrative work. So this way they get knowledge of every department.
Immunization

52
 53

APPRAISAL SYSTEM

In SAMRAT NAMKEEN, as per the corporate policy, appraisal is done

by concerned colleagues, head of department using 360 degree method. The
appraisal is then submitted to the corporate office. In this system. If
employee’s performance is good then that sets the example for other
employee’s.

At the end of the year and based on the appraisal done the increment
and promotions are decided from the corporate office. The whole process and
the documents remain confidential. This annual increment and promotion
system are called as appraisal system.

WAGES AND SALARY ADMINISTRATION

The touch namkeen or any other industries the wages and salary are
being fixed or determined on the basis of: -

 Performance of the employees.

 Ability to work.

 Regularity in work.

 Profit of the company.

In touch namkeen the employees are given 100 Rs. 100 for the working in
one shift.

The employees are giving 4 hours overtime facility and the employees
are given 150 Rs. For extra working hours. They have worked for fully 8
hours. Thus this way the wages and salary administration is done.
Touch namkeen gives salary as above.

 New employee 1500 – 2000 Rs.

 Sámi-trained or experienced: 3000 - 3500 Rs.

 Trained or senior: 5000 - 5500 Rs.

53
 54

RECREATIONAL FACILITIES

For promoting and enjoying Employees Company provide them

many facilities.

They are following.

1. Transport facilities
2. Centain
3. Clean air and necessary environment
4. Temple
5. Parking
6. Housing
7. Incentives
8. Parlous.
9. Park
10. Crèches facility
11. Special facility

INFRASTRUCTURE

The organisation shall determine, provides and maintain the

infrastructure. Need to achieve conformity to product requirements.

1. Building, workspace and associated utilities.

2. Process namkeen.

3. supporting services

SAFETY

54
 55

PERSONAL PROTECTIVE NAMKEEN

They are divided into two types.

 Respiratory protective devices
The air we breathe is sometimes contaminated with dust vapors,
toxic fumes or gases. Various types of respiratory protective namkeen
are provided which enables as to breathe in an uncontaminated atm.
even in presence of contaminant.
 Non-respiratory protective devices

1. Eye protection
2. Head protection
3. Hand protection
4. Foot protection
5. Body protection
6. Hearing protection
7. Safety belts.

SYSTEM OF HANDLING GOVERNMENT DEPARTMENT

As per the SAMRAT NAMKEEN rules and regulation. Concern

branch have to take care of the government. And especially whatever
requirement of the particular state of the government that knows that state
branches, so they have to take care of this. And for that every concern branch
has the concern person who takes care of this. These all are under corporate
policies so periodically corporate office whenever wants to make an enquiry
and verification of the chanson branch or a concern person that time the
corporate office will do.

55
 56

SYSTEM OF HANDLING GRIEVANCE

SAMRAT NAMKEEN has no trade unions. but again there was

no problem cause of unity. There is some arrangement for grievance also. if
employee have any kind of problem or dispute then I that case he can contact
or his supervisor contact him and try to solve that problem or root level only.

If he is not able to solve that problem. then he can discuss with

chanson department head and then after they can contact his manager or
plant manager , or even there is every Saturday there is meeting they can
discuss over their also .and after this process the problem was definitely
solved. These processes are going on from last three years but there was no
grievance or no strike or no lockouts. And cause of this system the employees
are also happy and Samrat namkeen has three branches and all three
branches followed by these system only.

I.R. & H.B.L.

I.R. is industrial relation and H.B.L. is house building loan.

I.R. is maintaining trough good relation with the union. That department
is taking care of legal activities, fatal accident, normal accident, theft,
misbehave, misconduct, high absenteeism, etc.

H.B.L. is given to the employee for the construction, renovation,

purchase of house. And there rate of interest is only 5.5% per annum.

They are also giving car loan, convenience loan, and personnel loan. The
loan is given on the basis of the basic salary.

TRAINING PROGRAMMES

56
 57

With an objective to change the ability of the farmers to identify

constraints in agricultural and to evaluate means of alleviating the constraints
through technological change, a number of training programmes are
organized at Mehsana. These training programmes include topics like recent
advances in agriculture, home science, health care and allied fields. Training
programmes are also organized for sales point personnel of Rural
Cooperative and Farm Women. More than fifteen hundred farmers are
imparted training every year.

57
 58

V.M.PATEL COLLEGE OF MANAGEMENT STUDIES, GANPAT

UNIVERSITY, KHERVA

FINANCE
DEPARTMENT

CONTENT

58
 59

FINANCE DEPARTMENT:-

1. Introduction

2. Chart of account department

3. Organization chart

4. Significant accounting policy

5. Payment & receipt mode

6. Financial planning

7. Capital budgeting

59
 60

INTRODUCTION]

FINANCE DEPARTMENT: -

Finance is essential for any unit established at large or small

scale. Finance is blood of industries and without it is the firm even can not
runs more than one day. Raising finance through right issue debenture, bonds
and other public deposit and general practice of big firms.

Finance is base of any industries without sound finance base no

company can run smoothly. So to acquire enough finance managers the many
management of working capital fixed assets coming under the umbrella of
finance. Today more sheets is gives to finance management. Because of
whole thing it there is any manipulation in finance company may be disaffect
in future, so now days executives think over it how to run the company with
maximum investment and finance so to cope up these entire requirement is
very necessary finance also reveal capital structure, finance lanning etc.

Financial techniques are very useful to find out overall ratio of

firm profitability, finance reveals or published true statistical data how the firm
collection money and how the money collection utilized is known through
financial management financial statement disclose the position of company at
present.

Finance involves so many functions like investment decision.

Investment decision on include capital, working capital management financing
division the concern of the financing decision is with financing mix or capital
dividend policy decision the main two approach and wealth maximum
approach this finance involve rest area of planning and organisation.

Here in this unit historical cost conversation is used on whole

according system is an accrued basic for companies’ act 1956.

60
 61

CHART OR MODEL OF
ACCOUNT DEPARTMENT

ACCOUNTING MANAGER

ASSISTANT CASHIER
MANAGER

CASHIER PETTY
CASHIER

61
 62

SIGNIFICANT ACCOUNT POLICY

(AS REQURED U/S 145 OF THE I.T. ACT. 1961)

METHOD OF ACCOUNTING

The accounts have been prepared under the historical cost

convention and on the basic of a going concern.

Accounting policies not specifically referred to be consistant and

consonance with generally accepted accounting principle.

The mercantile system of accounting has been followed.

FIXED ASSETS AND DEPRICEIATION

Fixed assets are recorders are cost of acquisition or contraction

and installation less depreciation provide there on.

No revaluation of fixed assets made during the year.

Depreciation on assets is provide on WDV method and at rates

specified under the IT act, 1961.

INVENTORIES

The inventories are valued at cost or market value whichever is

less, as valued and taken by the assets.

INVESTMENT

Investment as known as balance sheet is stated at cost of

acquisition plus accrued interest there.

62
 63

INCOME AND EXPENDITURE

Generally expenses and income to the extent considered payable

and receivable respectively as accounted for on accrued basis on time pro-rata
basis with keeping in view the materiality concept.

On the basis of materiality concept test check we had and

explanation given to us the significant accounting policies are mentioned here
above.

Wherever external evidence was not available we have relied on

the internal evidence prepared and authorized by the assesses.

Debit and credit balance of the parties as shown in the balance

sheet are subject to confirmation and reconciliation.

MEANING OF ANALYSIS & OBJECTIVES OF THE

63
 64

STUDY

Analysis of statement means such a treatment of information contained

in two defined financial statement of methodical classification, comparison,
raising pertinent operations and the seeking answers of them.

Financial statement should be analyzed carefully as different people

use this statement to satisfy set the adjustments and balance the incomes and
expenses. A manager uses financial analysis to make necessary future
decision based on the past data study. Also, these analysis are helpful in
deciding profitability and in turn soundness of the business. An investor would
like to study financial analysis to determine the safety and return on his or her
investment.

Different parties related to the company look at the company form their
respective points of view, but the general objective is to look for

1. Profitability
2. Financial conditions

However, sometimes the absolute value of the financial statement and

analysis do not give the trend and hence, the external analyst has no rely on
the published insufficient information.

64
 65

RATIO ANALYSIS

Ratio represents the numerical relationship between two numbers.

Ratio analysis of statement stands for the process of determining and
presenting the relationship among various accounting items in the statements.
When relationship among accounting data supplied by financial statement is
worked out, they are termed as accounting ratios.

Importance & Uses Of Ratio

A ratio is a statistical yardstick that provides a meaningful relationship

between two accounting figures. Ratio analysis of financial statement extends
for the process of determining & presenting the relationship of items and
group of items in the statement. There are several ratio which an analyst can
employ, but the type of ratio he would preciously use depends on the purpose
for which the analysis is made.

A creditor would like to know the ability of the company to meet its
current obligation and therefore would think of current and liquid ratios,
turnover of receivable. Coverage of interest by the level of the earnings etc. a
manager would like to know the operations efficiency and would think of such
ratio or return on the investment, net profit to sell, etc. investors will be
interested in such ratios as the earning per share, book value per share and
dividend per share.

ADVANTAGES OF RATIO ANALYSIS: -

1. Ratio analysis facilities the comprehension of financial statement &

evaluation of several aspects such as financial health, profitability and
operational efficiency of the undertaking.
2. Ratio analysis provides interfere comparison to measure efficiency and
helps the management to take remedial measures.
3. Ratio analysis is also helpful in forwarding corporate sickness and helps
the management to take excessive action.
4. Trend analysis with the use of ratios helps in planning and forecasting.
5. Ratio analysis helps in inventory decisions in the care of investors &
lending decisions in the care of the bankers and financial institutions.

65
 66

LIQUIDITY RATIO

This ratio measures the firm’s ability to meet current obligation.

Firms ensure that is does not surer from lack liquidity and also do not have
excess liquidity. The failure of a company to meet its obligation due to lack of
sufficient liquidity will result in a poor credit worthiness loss of creditors
confidence or even in legal tangles resulting in the closure of the company.

A. CURRENT RATIO

The current ratio is a measure of the firm’s short- term solvency. It

indicates the availability of the current assets in rupees for every one rupee of
current liability. A ratio of greater than one means that on an average the firms
in the industry are having more current assets them. As a conventional rule,, a
current ratio 2:1 or more is considered as satisfactory.

Current ratio if given by the formula

CURRENT RATIO= CURRENT ASSETS

CURRENT LIABILITY

2004-2005=

20,463,770.01

16,750,604.70

=1.22

2005-2006=
38,784,748.49

27.771, 781.90

= 1.40

66
 67

CURRENT RATIO

1.4
1.2
1
0.8
ratio 3-D Column 1
0.6
0.4 West
0.2 North
0
2004-2005 2005-2006
year

He above graph shows that SAMRAT have more current assets that their
current obligation, so it implies that they can pay their liabilities from the
current assets satisfactorily then the ability of the firm to pay bills in impaired,
its short-term solvency is threatened. Generally 2:1 ratio is preferable. In year
2004-2005 the ratio 1.22:1 and 2005-2006 the ratio is 1.40:1 In year 2005-
2006 ratio is increase as compare to year 2004-2005 but not satisfactorily
level because the current liability is high.

67
 68

B. QUICK RATIO

Quick ratio establishes a relationship between quick or liquid

assets and current liabilities. An asset is liquid if it can be converted into cash
immediately or reasonably soon without a loss of value.
Quick ratio is given by the formula:

Quick Ratio= Current Assets- Inventory

Current Liability

2004-2005= 20,463,770.01- 3,424,803.00

16,750,604.70
= 1.02

2005-2006= 38,784,748.49- 9,020,849.00

27,771,781.90
= 1.07

YEARS RATIO
2004-2005 1.02:1

2004-2005
2005-2006 1.07:1

QUICKRATIO

1.08
1.06
1.04
RATIO 1.02
3-D Column 1
1
0.98 3-D Column 2
0.96
2004-20052005-2006
YEAR

68
 69

Quick ratio represents the company ability to meet its immediate obligation.
Generally, a quick ratio of 1:1 is considered to present a satisfactory current
financial condition. A quick ratio 1:1 or more does not necessarily imply sound
liquidity position. Thus, a company with high value of quick ratio can suffer
from the shortage of funds if it has slow paying, doubtful and long-duration
outstanding debtors. On the other hand, a company with a low value of quick
ratio may really be prospering and paying its current obligating in time if it has
been turning over its inventories efficiently.

From the above graph can see the quick ratio same as
current ratio is showing mix trend. Here the ratio the year 2004-2005 and
2005-2006 are 1.02 and 1.07 respectively. This ratio has also increase in
2005-2006 as compare in 2004-2006 so we can say that firm can able to pay
their liability quickly.

69
 70

B. NET WORKING CAPITAL RATIO

Net working capital means the different between current

assets & current liabilities, excluding short term bank borrowing is called net
working capital or are as firm liquidity.

Net Working Capital= Net Working capital

Net Assets

Net working capital = Current asset- Current Liability

Net Assets =Fixed Assets + Current Assets- current Liability

2004-2005= 20,463,770.01- 16,750,604.70_

5,480,949.38+20,463,770.01-16,750,604.70

= 0.40

2005-2006= 38,784,748.49-27,771,781.90
6,897,942.00+38,784,748.49-27,771,781.90

= 0.61

YEARS RATIO
2004-2005 0.40:1
2005- 2006 0.61:1
NETWORKINGCAPITALRATIO

1
0.8
0.6
RATIO
0.4 X
Y
0.2
0
2004-2005 2005-2006
YEAR

70
 71

This ratio shows proportion of the working capital in net assets. If the
ratio is high than more proportion of working capital in total assets. If the ratio
is for the higher than working capital remain idle and the ratio is lower than it
bed for the company. Here the ratio for year 2004-2005 and 2005-2006 are
0.40 and 0.61 respectively.

71
 72

C. DEBT EQUIDTY RATIO

The relationship between borrowed funds and owner’s

capital is a popular measure of the long-term financial solvency of a firm. This
relationship is shown by the debts ratios. This ratio reflects the relative claims
of creditors and owners against the assets of the firms.

Debt Equity Ratio = Total Debts

Net Worth

Total Debts = Secured + Unsecured Loan + Sundry Creditors

Net Worth = Share Capital + Reserve & Surplus

2004-2005= 16,818,424.18
2,373,583.36
= 7.09

2005-2006= 29,627,572.90
3,464,573.69
= 8.55

YEARS RATIO
2004-2005 0.40:1
2005-2006 0.61:1

DEBT EQUITYRATIO
1
0.8
0.6
RATIO X
0.4
0.2 Y
0
2004- 2005-
2005 2006
YEAR

The debts equity ratio describes lenders contribution for

each rupee of the owner’s contribution. Here the debt equity ratio for year
2004-2005 and 2005-2006 are 7.09 and 8.55 respectively. In 2004-2005 the
owner’s contribution is more than the contribution of debtors.

72
 73

E. DEBT RATIO

The some type of debts may be used to analyses the large term solvency
of a firm. The total debts will include the short term and long term borrowing
from financial substitution, debentures, deferred payment agreement for laying
capital namkeen bank borrowing bank borrowing public deposits and other
interest bearing loan.

Debt Ratio = Total Debts

Net Assets

Total Debt= Secured Loan + Unsecured Loan + Sundry Creditors

Net Assets = Fixed Assets + Current Assets – Current Liabilities

2004-20005 = 16,818,424.18
12,907,280.00
= 1.30

2005-2006= 29,627,572.90
28,923,875.18
= 1.02
YEARS RATIO
2004-2005 1.30:1
2005-2006 1.02:1

DEBT RARATIO

1.5

1
RATIO
0.5 X
Y
0
2004-2005 2005-2006
YEAR

By looking for debts ratio we find that in year of 2004-2005 and

2005-2006 are 1.30 and 1.02 respectively. It is in 2005-2006 which
implies that on an average the ledgers have financed 10.2% of the firm’s
assets in the industry and take reaming 89.98% has been financed by
owners. This ratio had increase in 2004-2005 is 13% because the term
bank long, overdraft, creditors are increase.

73
 74

ACTIVITY RATIOS
Activity ratios are employed to evaluate the efficiency with
which the firm manages and utilizes its assets. These are also called turnover
ratios because they indicate the speed with which assets are being converted
or turned over into sales. Activity ratios thus, involve a relationship between
sales and an assets generally reflects that assets are managed well, Several
activity ratios can be calculated to judge the effectiveness of assets utilization.

A. NET ASSETS TURN OVER RATIO

Net assets turn over ratio established relationship between

company sales with net assets.

Net Assets Turn Over Ratio = Sales

Net Assets

2004-2005= 52,893,721
9,194,114.69
= 5.75 Times

2005-2006= 80,308,618.77
17,910,908.59
= 4.48 Times

YEARS RATIO
2004-2005 5.75
2005-2006 4.48

NET ASSET TURN OVER RATIO

6
5
4
RATIO 3 2004-2005
2 2005-2006
1
0
YEAR

Net assets turn over measure the company ability of sales for a given level
of assets. A firms ability to produce a large volume of sales for a given amount
of net assets is the most important aspect of its operating performance. Here

74
 75

this ratio is high in 2004-2005 is 5.75 times. It implies that unit

producing 5.75 Rs of sales for one rupees of capital employed in net
assets. The ratio indicates the company’s selling efficiency. The ratio is lower
in years 2005-2006 is 4.48 times.

B. TOTAL ASSETS TURN OVER RATIO

Total assets turn over is computed on the total assets turn

over in addition to or instead of the net assets turn over. This ratio shows the
firm’s ability in generating sales from all financial committed total assets.

Total Assets Turn Over Ratio = Sales

Total Assets

2004-2005= 52,893,721.00
25,944,719.39
= 2.04 Time

2005-2006= 80,308,618.77
45,682,690.49
= 1.76 Time

YEARS RATIO
2004-2005 2.04
2005-2006 1.76

TOTALASSETTURN OVERRATIO

2.1
2
1.9
RATIO 2004-2005
1.8
2005-2006
1.7
1.6
YAER

75
 76

PAYMENT & RECEIPT MODE

Generally different between payments of good which were purchased

from the company is highly depend upon the company credit availability and
profitability. If the profit of the company is very high company have very high
capital. So it can change the time of receipt at very large days. But in
SAMRAT Namkeen, it can be done. Because the company is early started
and it is a partnership firm of 31 partners. So they cannot collect the huge
capital then the public company.

Company keeps credit against its creditors is 6 months. So company

pay its debts to creditor to whom company purchased raw material, in 6
months. Samrat sells its products to dealers on cash & credit mode.
1. If company sells goods at credit dealers have to pay the debts towards
company within 45 days.
2. All the payment and receipt is been done through cheque.

76
 77

FINANCIAL PLANNING

Financial planning is one of the important decisions to be taken by the top

management. This is generally of two types

1. long term planning

2. short term planning

1. Long term planning : -

These decisions are of paramount important in financial decision

making because they affect the profit ability of the firm. They are
created for expansion, diversification and modernization.

2. Short term planning: -

This type of planning is concerned with the problem that arises in
attempting to manage the current assets. Current liabilities and internal
relationship exist between them. If long term finance is the machines then
short term finance is lubricant which helps machine to run smoothly.

77
 78

CAPITAL BUDGETING

Capital budgeting decisions detrain to long term assets which yield a

return over a period of time, usually exciding one year. These decisions are
important because it affect the profitability of a firm. Moreover capital decision
involves the cost and majority of the firm have a share capital. This underline
have a need for wise and correct investment decision as in correct decision
would not only result in loss but also prevent the firm from earning profit from
other investment.

` In SAMRAT Namkeen, capital budgeting decision are given prime

important. The finance department prepares the annual report budget and tax
the ratio of last three years of every held. Them accordingly it is decided about
what proportion are to allocate to which department under which yield.

78
 79

CONCLUSION
In the conclusion of this report I can say that if the company increases
its efficiency than it has very best opportunities for development. The
company sales its products on ethical basis so it has wide scope for
development.

The company has to improve its products to survive in the market.

Though at present, the company is earning reasonable profit, in future it has a
wide scope for development.

During my visit I found that company has adopted the policy of ethical
business so this type of companies are needed for the development of the
country.

There is a large scope for the growth in FMCG product in India because of 1/6
of total world population in this country. And here also there are a chances of
success because of company has latest technology but still company has
needed huge financial resources and efficient man power.

79
 80

BIBLIOGRAPHY

1. Source “ marketing management” by Philip kotler

Published by – TATA McGraw hill

2. Source “ human resource management” by K Aswathappa

Published by – TATA McGraw hill

3. Source “finance management” by I am pandey.

4. Other projects prepared by senior students of V.M.PATEL COLLEGE OF

MANAGEMENT STUDIES.

5. Following magazines and news papers: - India times, Times of India,

6. Websites:-

 Search engine: - www.google.co.in

1. Websites:- http://www.indiamart.com/SAMRAT-namkeen/
2. www.productionprocess.co.in

Books:
1. Sales and distribution management : Richard cundiff,
2. Kotler, Philip marketing management, Delhi: Pearson Education
(Singapore)
a. Pte. Ltd., 2003. 125pp.
3. Marketing Mastermind by ICFAI Press,

Brochure
 Samrat company’s brochure

80