A

SUMMER INTERNSHIP PROJECT

ON
SUPPLY CHAIN MANAGEMENT
OF
K.K.SHUDDH AYURVEDIC PHARMACY
PVT.LTD
PREPRED BY:PARMAR SANJAY P.
MBA 3rd SEM
ENROLL NO. 148040592009

GUIDED BY:Prof. ANKITA GOSWAMI

SUBMITTED TO:R.H.PATEL INSTITUTE OF MANAGEMENT

GOBLAJ -387001

2015-2016
1

PREFACE
For being a successful manager, not theatrical but also
practical knowledge is an important in some proportion, as
manager has to deal with changing circumstances. For this
purpose training is formed so that student cans something
acquire some knowledge by observing the world in the company.
The sentence that experience is the best teacher very
true every field and so training in third SEM of master of business
Administration is arranged to develop the skill and attitude.
Summer internship at K. K. Shuddh Ayurvedic Pharmacy Pvt. Ltd.
helped us to learn how different department work with effective
Co-ordination. This report consists of my training to K. K. Shuddh
Ayurvedic Pharmacy here we represent our practical as theatrical
knowledge.
I am pleased to submit the project report purpose of
evaluation by respected examiner
.

ACKNOLEDGEMENT

I am express my thankfulness to my Faculty of Master

Administration of R.H.PATEL INSTITUTE OF MANAGEMENT at
GOBLAJ for providing us an opportunity to go for study on the
working of the Company.
The Study has undertaken and completed under the
guidance of our Prof. In charge Mrs.Ankita Goswami. I have to
thankful for their timely help advice and guidance and for their
valuable assistance in preparing report. Shes constant and expert
guidance helped us enable completion of this study in the present
form.
I am also thankful to Mr. Tarak Bhatt, Proprietor of K.
K. Shuddh Ayurvedic Pharmacy for their Co-Operation and
guidance during the training.
Lastly, we also express my gratitude to all who have
helped us directly or indirectly in conducting and completing their
report for practical knowledge.

INDEX
Number

Particular

Page
no.

1 General Information
1.1 History and Development
Company till today
1.2
1.3 Company profile
1.4 Mission, Vision and values
1.5 Locating Chart
2
2.1
2.2
2.3
2.4
2.5
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16

Production Department
Target Market
Product
Raw material
Manufacturing process
Research Development
Marketing Department
Product mix
Product showcase
Market Segmentation
Packing
Branding
Labeling
Product Life Cycle
New Product Development
Price
Pricing List
Factor affecting Company pricing
Pricing approach
Promotion
Sales promotion
Distribution channel
Competitors

4 Finance Department
4

4.1 Functional area of financial

management
4.2 Introduction of Ratio Analysis
4.3 Advantage of Ratio Analysis
4.4 Limitation of Ratio Analysis
4.5 Accounting Policy
4.6 Significant Accounting Policy
4.7 Accounting Ratio
5 Human Resource Department
5.1 Introduction of Human Resource
Management
5.2 Recruitment
5.3 Selection
5.4 Training and Development
5.5 Promotion and Transfer
5.6 Facilities to employees
6 Conclusion
7 Suggestion
8 Bibliography

GENERAL INFORMATION

History & Development

6

K.K. Shuddh Ayurvedic Pharmacy wholly owned

proprietary Company. K.K. Shuddh Ayurvedic Pharmacy has strong
root with well experienced and with the heritage of last seven
generation. In year 1984, Vaidya Kaushik B. Bhatt has established
small manufacturing facilities of powder, Tablets, Oil, and Dharut
Avleha at Mahemdabad near Ahmadabad. Gujarat in Order to
provide pure and patent Ayurvedic medicines base of classic
ayurvedic Principles.
In Year 1992 another unit of K.K. Shuddh Ayurvedic
Pharmacy K.K. Shuddh Ayurvedic Pharmacy has establish as the
demand of medicines are increased. In year 2007 New technology
savvy production facility with over 18000 sq. fit build up area and
around 600 sq. fit open area between lush green farms and zero
population area near. Nenpur cross road Village. Sansoli
Mahemdabad, just 18kms from Ahemdabad.

Company till today

A Successful organization is a combination of an
efficient management and latest technology. K.K. Shuddh
Ayurvedic Pharmacy Pvt. Ltd. Strongly believes that he third and
most important factor of any kind of ayurvedic company
The Company started in Mahemdabad under K.K.
Shuddh Ayurvedic Pharmacy brand name with intention to
provide Ayurvedic / Herbal medicines in whole Country.
Since its establishment, the Company experienced for
a rapid growth thus becoming one of the leading Ayurvedic
/Herbal medicines produce in Gujarat to meet the requirements
automatic and automatic plan was set-up in Mahemdabad. K.K.
Shuddh Ayurvedic Pharmacy has quickly built up a reputation for
manufacture price. It is innovative and during approach to
product development as well as to marketing Communication
Constitute, a solid droned for Sustainable development today.
K.K. Shuddh Ayurvedic Pharmacy is equipped with
modern automatic state of the art manufacturing plant to
manufacture Ayurvedic, Herbal, and Therapeutic

Company Profile
Name of the Company: K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd
Head Office

: K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd.

249/A, Nenpur Cross Road,
Village: Sansoli, Mahemdabad
Dist: Kheda, Gujarat

Trade Mark
Punch line

: Saswat
: Adopt Ayurveda & Be Healthy
(be healthy when adopting ayurveda)

Nature of Product

: Drugs items

Directors

: Tarakbhai K. Bhatt

Size & form of Company: Size small scale Unit

Form

: Proprietor

Mission
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. Is committed
to create and market best availing products with an exceptional
attention to details in order to provide the consumer with a
pleasant and affordable emotion.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. Create value
by means of best management practices empowered work force
and safe guarding corporate social responsibility.

10

Vision
K.K. Shuddh Ayurvedic Pharmacy Pvt. ltd. Aim at
sustainable growth attaining leadership position in Ayurvedic
pharmacy industry through performance exceptional keeping
customers satisfaction, to the core of all their operation, thanks to
the product concept to the supplier quality, if the product as well
as the strength and potential of the brands. They declare their
ambition for a powerful national preserve beyond, the borders of
Gujarat and to explore opportunities over India .

11

Philosophy
As a young and rapidly developing Company, K.K.
Shuddh Ayurvedic Pharmacy Pvt. Ltd aim at sustainable growth in
the categories they operate in Ayurvedic Pharmacy Products K.K.
Shuddh Ayurvedic Pharmacy Pvt. Ltd. To meet the requirements
and satisfy the needs of the consumers through creating products
and brands that created with ablution to detail.
They pay brand from the product quality through the
tools used to build the brand that swifts today is Contemporary
lastly and carry its spirit.

12

LOCATION CHART

Nadiad road

Haladarvas
Road

Nenpur Cross Road

Nenpur
Village

Ahmedabad
Road

13

PRODUCTION DEPARTMENT

14

Target Market
Different Companies have different target market,
which the Company sells its product to them.
In the K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd
Target, market whole seller and others.
A target market consists of a set of buyer who same
common needs or characteristic that the Company decides to
serve. The Company also needs to examine major structure that
factors in the long run. The existence of many what or potential
substitute products may with price and the profit that can be
earned in a segment in a segment. The heel of network to devised
under the idea distribution network that ensues to supply fresh
product in any carver of Gujarat within24 hours.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. Assignee
products and market frogmens that will appeal to the largest
number of buyer it is on Ayurvedic medicine distribution and it
aim to give the product a supervise in people minds and product
that will satisfy all Customers.

15

Products
A product is anything that can offer to a market
for attention, acquisition, use or consumption and that might
satisfy a want or need it include physical objective, services,
persons, places and organization ideas.
The products benefits could be physical as well
as psychological. Formally, product was what the factories made.
These day products are what the consumer wants. The definition
of product is constantly expanding. It includes more than a more
bundle of benefits.
Products can be both goods and services or any
Combination of two services is intangible and has no physical
attribute.
There are good examples of a popular product
of K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. known for
medicines:-

K.K.H. Tablet
Walk on Oil
Lestrol- K tablets
Swasari Tablets
Intraliv-Av Tablet
Uronil Caplets
RO syrup
Humdoleen Capsule
16

17

PRODUCTS SHOWCASE
All the products have some specific identification
according to their use at different kinds of medicals
problems.
Let us take short view of major ayurvedic products of
K.K.SHUDDHA AYURVEDIC PHARMCY PVT.LTD.

18

19

20

Raw Material

21

Research Development
The Research and development is a specific group of
activities within a business. The activities that classified as R & D
differ from Company to Company, but that are two primary
model. In one model, the Primary function of an R & D group is to
develop new product in the other model the primary function of
an R & D group is to discover and create new knowledge about
22

scientific and technological topics. For uncovering, enabling

development of valuable new products, processes and services.
Present day R & D is a core part of the modern
business world. Major decision in firms made on base of research
and development. Research and development is a great
importance in business as the level of competition production
process and methods are rapidly increasing. It is of special
importance in the field of marketing where Companies keep an
eagle eye on Competitors and customer in order to keep pace
with modern trends and analyze the need, demands and desire of
their customers.
Unfortunately research and development is very
difficult to manage since the defining features of research are that
the researches do not know in advance exactly how to accomplish
the desire results. As a result, hirer R & D spending does not
guarantee more creativity, higher profit or greater market
share.
Highest possible quality standard market who the
process of product development long express everything from
with the process of and materials to packing of and product is
strictly and controlled company with quality management suggest
requirements which is sureties seal for top quality manufacturing.
The lingual quality produce R & D express are
devaluated to development from quality product as well as to
improving overs information product concept are development
and proving of depict market trader analysis
That Ayurvedic medicine development to the market is to best
possible quality products our development.

23

24

MARKETING DEPARTMENT

25

Product Mix
Product is the pivot around which can the market
anteing revolvers people sating product can be attire offered to
someone to satisfy a under or want.
A product mix is complete assortment of product
offered by Company for sale within the product mix there are
several product items that closely related in term of functioning
in similar ability are mostly sold to similar customer group
marketed through same line and fall within given price range all
managerial activities revolve around products. It is the basic thirty
to be thoughts.
All managerial always revile to but thought product it
is the hassock the concept of product thought may with basis
thing of physical doors rate than its service it doesnt means that
they should care physical with its benefits.
1) Product mix width:Product mix width refers to the no of different
product line the Company carries. The product mix includes with
the product line, width, depth, length and consistency.
2) Product mix Depth:Product mix depth refers to the number of
versions offered to each product line. Product mix depth can be
referring as the product of a particular brand differentiates each
other in a particular product line.
3) Product mix length:Product mix length refers to the total number of
items the Company Carrier within its Product lines. Length can be
calculated as width * depth items.
26

4) Consistency :Consistency of the product mix refers, how

closely relate the various product lines are in end use production
require distribution channel some of other way.

K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. Offer following drugs:

K.K.H. Tablet
Walk on Oil
Lestrol- K tablets
Swasari Tablets
Intraliv-Av Tablet
Uronil Caplets
RO syrup
Wheat grass Tablet
Humdoleen Capsule

27

Market Segmentation
Meaning :Dividing a market into distinct group of buyers on
the basis of needs, Characteristics or behavior who might
separate product or marketing mixes is called marketing
segmentation.

Types of

Market Segmentation

1. Demographic :It based on group likely family size, income,

gender, nationality, education, occupation etc. K.K. Shuddh
Ayurvedic Pharmacy Pvt. Ltd. Product is to satisfy the needs of
people to medicine at reasonable price. It is targeting to the
almost all class of people who are above lower middle class.
2. Geographic:Such market divided according to regional like
Local market, regional market, state market, national market,
international market.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. has put
their product in the national market and according to the success
of the product its further market.
3. Psychographic basis:Such base includes Social class, life style,
personality etc.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. produces
the product of all styles but only for higher middle class society as
well as lower middle class society.
28

 Social Class :Such base refers to the class like rich class, middle
class and lower class. Product of K.K. Shuddh Ayurvedic Pharmacy
Pvt. Ltd. is available at all class.

Life Style:A group buyer who is giving more importance to

their life style K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. give
more emphasis to group of buyers which prefer high life
standards.
Personality:Personality is an important determinant of the
buyer behavior. Hence, it also used as a variable for the market
segmentation generally; person tries to express his or her
personality.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. product is
such that it improves the personality of the people. It has all the
possible latest design and packs to satisfy the needs of the
customers.

29

Packaging
Packaging:Packaging defined as all the activities involve
in designing and producing the container or wrapper for a
product.

Package:It is a material in which product is kept.

According to Philip, packaging means the
activities designing and producing the container or wrapper for a
producing of a producing more and important in market now days.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. makes
an attractive packaging of its product to make it more popular
among its consumers. K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd.
packs their products in attractive colors to attract people and
especially consumer to buy it. K.K. Shuddh Ayurvedic Pharmacy
Pvt. Ltd, whole box of products with attractive wrapper as well as
packaging in bottle.
Packaging is not simply the matter of consumer
service but it plays vital role in selling the products brings various
types of economies. As attractive packaging of products attractive
the consumers and there is increase in demand of products.
30

Advantage of Packaging:1. Increase the sale:-

According to a survey, it founded that 30% of the sales are

preplanned and rest of the sale made due to packing.

2. Attention :Packing grabs the attention of the customer So

K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. packages its products
in such a way that it can grab the attention of the customers.

3. Strong Packing :Strong packing prevents deterioration in the

quality of the product.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. packs
products in such a way that products not damaged, as they are
fragile in nature.
4. Goods Distinguished :Goods of direct Companies easily distinguished
due to packaging.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. Prints
its symbol on package so consumer can easily recognize it based
on packing.

Function:

Protection
Identification
Differentiation
Helps
31

 Convenience
Attractiveness

Branding
Branding can be defined as A product gives a special name or
symbol or applies a trademark to his product to differentiate them
from other product so that buyers can easily identify them and
save themselves or from or Cheating are not imitated by others.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. has selected
brand names for their products known as

Saswat
Saswat is an individual name is all industry so that
is not contusion for thus brand name because this brand is not
selected any other Companies. Therefore, it is advantage to take
brand name related with Company it so that customer can easily
remembered that Saswat brand mark of K.K. Shuddh Ayurvedic
Pharmacy Pvt. Ltd
Importance Of
1) Easy to advertise:-

Branding :-

It is easier and less costly to advertise a

branded product because it can advertise only by showing a
brand name.
32

2) Easy to expand product mix:Using a successful brand name to introduce new

product is easy and convenient for Company. Add of new products
in products category under the same brand name from the
branding Saswat can easy expand its product mix.

3) Increase in sales :An appealing and meaningful trademark or symbol

can easily attract the attention of the customers. Thus sales can
be easily increased through the use of brand name under the
Brand name Saswat Company can easy increase the sales.
4) Increase in Profit :Brand name Saswat had increase the sales so
profit will also increase.

33

Labeling

Labeling is one of the most important parts of

marketing activity. Label provides necessary information about
product to the customer. It include the name of the product, name
of manufacturing Company, net worth of product, packing date,
lot number and product bath no , expiry date and their important
instruction.
Label is part of product, which might carry only the
brand name or a great deal of information even if the seller
prefers simple additional information label is very attractive and
very beautiful.
Labeling is an information wrapper or seal attached
to a product packing. There is various kind of labeling like.
1. Brand Label:Brand label is that type of label, which give the
number of brand products. SASWAT is the brand name of the
product.
34

2. Grade Label:When manufacturing produce many type

product. He uses a label to close the type of product.
3. Descriptive Label:
Description link is that types of label,
which provides full information to the customer about the
product and its production. It also provides necessary
information such as name of product, date of
manufacturing, date of expiry and etc.K.K. Shuddh
Ayurvedic Pharmacy Pvt. Ltd. has simple Label because
the working easily understands. The Customer knows the
writing pattern and anytime customers sees this kind of
writing pattern they remembered that it is Saswats
product K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd.
provides its own website and customer care number So if
any question in the can get solved easily.

35

Product Life Cycle

Product Life Cycle is a series of successive stages a
product class for product goes through from the time it put in the
market till it is with draw from the market.
After launching the new product management wants
the product to enjoy a long and happy life although it doesnt
export the product to sell forever then Company want to earn a
depend profile to cover all the effort and risk that wanting to
coursing it.
Every product passes through a life cycle and life
cycle of a product Consist four stages.
Introduction Stage:It is a stage when the product is first distributed
and made available for purchase. He here profits are negative or
low sales and high distributed and promotion expenses.
Growth Stage:Profit increases and rich the peak. Traditional
Competition also starts using the product and member of the
Competition increase.

Maturity Stage :-

Here sales growth slows or level of last longer than

other stage slow down of sales result in overcapacity leading to
greater Competition and reducing price increasing and sales
promotion and R & D budgets most of the market managements
deals with the mature product.
36

 Declining Stage :Product sales decline here technological advances

shift in consumer tastes and increase of Competition may be the
possible because of decline in sales & profit.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. has also
started from introduction stage and now the product is in growth
stage.
Product :New product features and packing option improvement
of product quality.
Price :Maintained at a high level if demand is high or
reduced are minimal it resellers show a strong interest in the
product.
Promotion :Increased advertising to build brand preference

37

New Product Development

Meaning:The development of original product modification,
and now brand through the firms research and development
department

Process of New Product Development

To create successful new product a Company must

understand its customer market and Competitor and development
product that superior value to customer. A firm can obtain product
in two ways.
1. One is through acquisition by buying whole Company
pattern to produce someone else product.
2. The other is through new product development in the
Companys own research and development department.

38

1 Idea Generation:New product development starts with idea

generation the systematic research of new product idea major
source of the new product idea include internal sources and
external source like Customer, distributor and supplier, employees
and others. K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. welcomes
the idea from consumer, employees and other and after
examining their idea if K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd.
Found that idea are worth useful they implement them.
1) Idea Screening :Idea Screening means screening new product idea
in order to scan good idea and drop poor one as soon as possible
while in this process it should not be dropped and bad idea should
not be proceed K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd.
39

produces the given idea and watches whether it will be liked by

customers or not.

2) Concept Development and Testing :To development, the new product in to alternative
product concept and finding out attractive concept for consumer
and choose the best one. Testing new product concept with the
group of target customer to out, if the concept have strong appeal

3) Marketing Strategy Development:Designing an initial marketing strategy for a new

product based on the product concept. The new product in to the
market It Consist of 3 parts,
a) Describe the size standard behavior of the target market to
plan.
b) Outline the product planned price distribution etc.
c) Describe the planned long-term sales and profit.
4) Product Development :Product development means developing the
product concept in to the physical production order to ensure that
the product idea can turn in to a workable product.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. selects the
idea carefully and then checks through research and development
department whether the idea is working properly or not.

40

5) Test Marketing:-

K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. tried new

product in different market and processes it further, it result are
positive.

6) Commercialization :Commercialization means introducing a new

product into the market.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. launches
their product in all different cities through major distribution
channel.

Pricing
Meaning:The amount of money charged for the product and
service or sum of values that consumers exchange for the benefit
of using the product.
Price is the only element is the marketing mix that
producer revenues all where elements represent costs. Price is
also one of the most flexible elements of the marketing mix unlike
product features and channel commitment price can change
quickly at the same time pricing.
41

Price is an important factor affecting the success of a

firm. Pricing decision and policy have direct influence on sales
volume and profit of the business. Price is fundamental to all
market efforts.
Pricing is the process or service in monetary them.
Pricing is an important decision that every Company has to take
high price or low price may create a brand reputation of the
Company. The price of a product is a crucial decision price of
product is determined after doing market research survey and by
considering past sales competitors price are also considered.
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. policy is
cost + profit. Cost here includes cost of labor, Cost of electricity,
Cost of raw material, Cost of transportation etc. whatever
expense have incurred during the manufacturing of the product is
considered plus profit is too included Competitors price is also
considered. Price is set after considering tax too.
The pricing policy of K.K. Shuddh Ayurvedic Pharmacy
Pvt. Ltd. are formulated keeping in mind the fact the majority of
K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. consumers belong to
almost all class of people above lower middle class and middle
class.

Pricing List
Product Name
K.K.H. Tablet
Walk on Oil

Quantity for all Price Rs

product
30T
135.00
60ml
99.00
42

Lesstrol K Tablet
Swasari Tablet
Uronil Tablet
R.O. Syrup
Wheat Grass Tablet
Humdoleen Capsule

30T
30T
30T
200ml
60T
40C

189.00
130.00
115.00
96.00
300.00
600.00

Factor affecting Company pricing

Pricing decisions affected by both internal and external
factors.

Internal factors
1.
2.
3.
4.
1.

Marketing Objective
Marketing Mix Strategy
Cost
Organizational Consideration

Marketing Objective :-

Many Company current profit maximization is being set

as their pricing goal. They estimate what demand and cost will
produce. K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. is well
established Company. Its marketing objective is consumer
43

satisfaction for which they are making continuous efforts to get

something new with the help of research and development
department.
2. Marketing mix Strategy :Pricing is only one of the marketing mix tools that a
Company used to achieve its marketing objective. Price decision
must be Coordinating with product design distribution and
promotion decision to form a consistent and effective marketing
program.
3. Cost :a. Fixed Cost:A Cost does not very with production.

b. Variable Cost :Variable Cost varies directly with change production.

c. Total Cost:Total Cost is the sum fixed and variable Cost for any
given level of production.

4. Organizational Consideration :Management must decide who within the

Organizational should set prices. In K.K. Shuddh Ayurvedic
Pharmacy Pvt. Ltd., the top-level management carries out said
task.

External factors:-

a. Market and Demand:-

44

The Market and Demand sets the upper limit. Both

the consumers the industrial buyers balance the price of a
product or service against the benefits of owning its. Thus before
determining price the market must understand the relationship
between price and Demand for the product.
As the Company is providing the best and latest
design and variety, its product is much demand in the market.

b. Competitors :Competitors are the factors that influence while

determining the product pricing.

Pricing Approach
Same seller tells their customers they will charge cost plus
specific markup mother oriented proceeding approaches is break
even pricing in which the firm tries to determine the price as the
level of actual cost of production.

45

Promotion
Advertising:Advertising is any paid from of non-personal
presentation and promotion of idea good or services by identified
sponsor.
Advertising is main part of the marketing because
any Company produces product reach to customer by advertising.
So without advertising Company cannot achievement his goal.

46

K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. Uses the

mass promotion tools of promotion Tools like Sales promotion to
increase the sales and advertise- ments that all helps the
Company to achieve the targeted sales.

Advertising Objective :The main objective of K.K. Shuddh Ayurvedic

Pharmacy Pvt. Ltd. is to attract the customer for purchased our
product from the market but this Company no need to attract the
Customer because of Brand name Saswat is very popular in the
mind of Customer in the nearness area.
Advertising by K.K. Shuddh Ayurvedic Pharmacy for

their product
Salesman
In nearness are through Retailer Shop
Newspaper

Sales Promotion

Sales promotion consists of Short-term incentives to

encourage producer of seller of product or services.
Sales promotion carried out to grab attention of
buyer and is one the way to convince him to buy necessary in
order to survive in the market.

47

 Setting Sales Promotion :K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. sets
goal for promotion for long-term relation with distributors and
short term to the customer to be present in the minds of the
Customers.

Objectives :The Objective of sales promotion is to make aware

customers about the Companys product and increase the sales
by customer and trade promotion tools.

Trade Promotion Tools : Credit Facility :K.K. Shuddh Ayurvedic Pharmacy Pvt. Ltd. allows 45
days credit facility to all its whole sellers.
A. Sales Promotion Goals :A manufacturer use number of sales promotion
tools.
1) Sample :A small amount of product offered to consumer for
trial called Sample. Sample of product as Services delivered door
to door sent in the mail, pickup in store, attracted to another
product or Sometime samples combined into Sample packs.

2) Gift With Purchase:When Buyer a specified product so that he get a gift

with purchase Most of the Companies put this type offer for
limited period time. The Company gives the gift to the whole
48

seller or retailer. Ex. Items, which carry the Company name such a
calendar, pen etc.
3) Cash refund offer :Consumer who sends a proof of purchase to the
manufacturer he quail offer to refund part of purchase cash fund
offer like Coupon except that the price reduction occurs offer the
purchase rather that at the retail outlet.
4) Price packs :Price packs means reduces price that is market by
the producer on the label or package price pack can be single
package sold at a reduced price.
5) Premium :Premium is good offer either free or at low cost and
an incentive to by a product. A Premium may come inside the
package outside the packaging or through mail.
B. Trade Promotion tools :The trade promotion tools can persuade sellers it
carry a brand give itself space, promote it in advertising and push
it to consumers.
1. Discount :A Straight reduction in price on purchases during a
stated time called as Discount. K.K. Shuddh Ayurvedic Pharmacy
Pvt. Ltd. also provide discount on buying bulk order of product.
2. Allowance:Allowance means promotional money paid by
manufacturer to retailer in return for an agreement to feature the
manufacturer product in some way.
49

DISTRIBUTION NETWORK
Meaning:product distribution is one of the element of the
marketing mix distribution is the process of marking a product or
service available for use of consumption by a consumer or
business user using direct means or wing indirect means with
intermediaries.

50

In the marketing the products and services available to

consumer, channel time place and possession gaps that separate
goods and service from those who would use them. Members of
the marketing channel perform many key functions. Some help to
complete transactions.

channel of distribution play or important role in

marketing because them the necessary for channel of distribution
arise because the product has to move to the customer from the
factory in the right quantity at to right time and at the right place
the utilization of channel intermediaries with their specialization
in marketing activities is various types of channel.
Generally, the product uses the intermediaries or
intermediary places to market given reasonable reward it is the
meeting point of producers and consumers .
In short it player's very any company. Channel of
distribution can be defined do "a set of interdependent
organization involves in the process of marketing consumption by
the consumers or business users.

Distribution channels of the

K.k.shuddha Ayurvedic Pharmacy
pvt.ltd

51

Marketing manager

Production house

Wholesaler

Retailer

Customers

As shown in the above figure at the top level of the marketing

department the marketing manager is employed at the top level
and he under the marketing manager of department who is he
marketing executives are employed marketing manager prepared
and implement the plan marketing executive wholesalers are
employed and they distribute he information or product to
customer

52

DISTRIBUTION NETWORK
There are so many shops in Gujarat which k.k. shuddh
ayurvedic medicine selling their product and provide the product
for whole seller etc.

Only Available for:

Medical store

Competitors
All types of company are facing compaction. There are too many
companies producing the ayurvedic medicines.

53

Level of competition:1. Brand competition:A Company get it competitors do other company

offering similar product and service to the some customer similar
price

2. Industrial competitors:A company see is competitors marketing the same

product and it may ran at national and international level

Three Firm competitions:A company see it competition as all companies

manufacturing product that supply the same service

Various competitors:1. UNZA Ayurvedic Pharmacy

pvt.ltd ltd

54

FINANCE
DEPARTMENT
55

Introduction to ratio Analysis

Introduction
The financial statement as proper use for guidance on
prospective in use creditor rd even management of relationship
between various related established they can provide useful dues
to given accurately the financial healthy are ability business to
market profit this relation between two related item of firm are
statement is to know ratio.

Importance of ratio analysis

56

1] Comparison with ideal ratio:

No conclusion can be drawn
from any individual ratio is should be company with some
generally accepted ratio e.g. the current does not guide the mgt
as regarded its liquid position

2] Comparison with past ratio:

It the present ratio of the company are
compared with its past ratios they will indicate the trend. If will
slow whether the financial position of a company is deteriorated
or remained constant.

3] Help of some related ratio:

The analysis are international of some ration
may be made more meaningful if some related ratio is also
considered.

Advantage and limitations of ratio

analysis

profitability

Useful information about the trend of

profitability is available from profitability ration. the gross profit
ratio, net profit ratio and ratio of return on investment ratio give
good idea of the profitability of business on the basis of, these
ratios, investors get an idea about the overall efficiency of
business and, the management gets an idea about the efficiency
of managers as well as other creditors, draw useful conclusion
about repaying capacity of the borrowers.
57

Liquidity:

Infect the use of ratio was made initially to

ascertain the liquidity for business. The current ratio, liquid
ratio and quick ratio will tell whether the business will be
able to meet its current liability as and when they mature.
Bank and other lenders will be able to conclude from this
ratio whether the firms will be able to pay regularly the
interest and loan installments.

Efficiency:

The turnover ratios are excellent to

measure the efficiency to managers. For example the stock
turnover will indicate how efficiency of collection of
department and assets turnover show the efficiency with
which the success or otherwise of the business.

Inter firm comparison:

The absolute ratios of the firm are not of

much use unless they compared with similar ratios of other
firms belonging to the same industry. This is interring firm
comparison, which shows the strength and weakness of the
firm as compare to other firm and will indicate measure.

Indicate Trend:

The ratio of the last three to five years

will indicate the trend in the respective field. For e.g. the
current ratio of firm is lower than the industry average.
58

However, if the ratio of last five years shows an improving

trend, it is an encouragement trend.

Useful for budgetary control:

Regular budgetary reports are prepared

in business where the system of budgetary control is in use.
If various ratios are present in these reports, it will give a
good idea about various aspect of financial position.

Useful for decision making:

Ratio guide the management in making

some of the important decision suppose the liquidity ratios
shows an unsatisfactory position the management may
decide it get additional liquid fund. Even for capital
expenditure decision, the ratio of return on investment will
guide the management the efficiency of various
departments. Scan judged in the basic of their profitability
ratios efficiency of each department could use deferred
minded.

Limitation of ratio analysis

Singles year ratio has limited

utility:

Other factor must be considered:

59

While comparing other ratio, it must

be remember that different firm follows different policy and
plan.

Use of one ratio misleading:

Only one ratio used without reference

to other ratio may be misleading. It conclusion are to be
drawn that we have to consider combined effect of a raw
related ratio.

Other factor important:

Financial result of the firm depends

upon very factor. i.e., General economic condition local is
factors, policy of government policy of a firm, competition
etc.

Lack of standard ratio:

There is in having any standard ratio

for comparing actual performance of the company. The
satisfactory level of various ratios may differ from every firm.

Investigation necessary:

We must remember that ratio is

preliminary steps in investigation. It suggest there of
investigation.

Rigidity harmful:

In the use of ratios, if the manager

remains rigid and it will lead to dangerous position.

Ratio of two irrelevant figures:

60

If the ratio found between two figures,

which have no relation with each other

Other factors important :

Financial result of the firm depends upon

very factor like general economic condition local factors
policy of a firm competition etc. Therefore, before conclusion
we have to consider this factor also.

Accounting Policy
Significant accounting
policies

Basic for accounting :

The financial statement are prepared

under the historical cost convention on an account basis of
accounting in accordance with the generally accepted
accounting principle accounting standards notified under

61

section 2|| (3C) of the companies Act, 1956 and the relevant
provision thereof.
During the year, revised schedule UI
notified under the companies Act, 1936 has become
applicable to the company for preparation and presentation
of its financial statements. The company has classified the
previous year figure in accordance with the requirement
applicable in the current year.

Reserve recognition:

I.

II.

III.

Revenue from sales of goods in recognized net of

rebates and discount on transfer of significant risk and
rewards of ownership to the buyer sales of goods is
recognized gross of excise duty but net of sales tax and
value added tax
Revenue from service rendered recognized on pro-rata
basis in proportion to the stage of completion of the
related transaction.
Export incentive under various scheme notified by the
government has been recognized on the basis of credit
afforded in the passbook /amount received.

Employee benefits:
I.

II.

Short-term employee benefit recognized as an

expense at the undiscounted amount in the
statement of profit and loss of the year in which
the employee has remembered services.
Post employment benefits are recognizing as an
expense in the statement of profit and loss for the
year in which the employee has rendered services.
The expense is recognized at the present value is
determined using the market yields of government
62

III.

IV.

bonds at the balance sheet date as the

discounting.
Actuarial gains, other long-term post employment,
and other long-term benefits charge to the
statement of profit and loss.
In respect of the employee separation scheme, the
increase in the net present value of the future
liabilities for pension payable to employees.

Tangible asset:

Tangible assets state at cost less

accumulated depreciation and net of impairment .If any preoperation expenses including trial true expenses capitalized.
Borrowing cost during the period of construction add to the
cost of eligible tangible assets. Blast furnace relining is
capitalized the written down value of the assets consisting of
lining /relining expenditure embedded in the cost of the fresh
relining.

Intangible asset:

Intangible assets are stated at cost less

accumulated amortization and net of impairment .In any
intangible asset is recognized if it is probable that the
expected future economic benefits that are attributable to
the asset will flow to the company and its cost can be
measured reliable assets having finite useful lives are
amortized on a straight line basis over their estimated useful
lives.

Depreciation and amortization:

I.

Capital assets whose ownership does not vest with the

company are depreciation over their estimated useful
life on five year, whichever is less.

63

II.

In respect of other assets, depreciation is provide on a

straight-line basis applying the rate specified in
schedule XIV to the companies Act 1956 or rates based
on estimated useful life whichever is higher. However,
assets value up to 25000 is fully depreciation in the
year of requisition. The details of estimated life for each
category of assets are as under :a. Building and roads 30 to 62 years
b. Plant and machinery 3 to 30 years
c. Railway biding 21 years
d. Vehicles and aircraft 5 to 18 years
e. Furniture , fixture and office equipment 5 years
f. Intangibles -5 to 10 years
g. Blast furnace relining is depreciation over a period
of 10 years
h. Free hold land is not depreciation
i. Leasehold land and other leasehold assets are
amortized over the life of the lease

Impairment :

Fixed assets are review for impairment

whenever events or changes in circumstances indicate that
their carrying amount may not be recoverable.
An impairment loss is recognizing in the
statement of profit and loss if the carrying amount of an
asset exceeds its recoverable amount.

Investment:

Long-term investment is carry at cost less to

the provision for diminution of other than temporary. If any in
value of such investment current investment carried at,
lower of cost and fair value.

Inventories:
64

Finished and semi-finished products

produced and purchase by the company carry at lower of
cost and net realizable value.
I. Work in progress carried out at lower of cost and net
realized value.
II. Coal, iron is other raw material produced and purchased
by the company carried out at lower of cost and net
realizable value.
III. Store and space part carried out at cost necessary to
revenue in case of indentified absolute and non-moving
items.

Relining expenses:

Relining expenses other than expenses on

blast finance relining charge, as an expense is the statement
of profit and in the year in which they incurred.

Research and development :

Research and development cost are

charged as an expenses in the statement of profit and loss in
the year in which key are includes

Differed tax:

Different tax is accounted for by

computing the tax effect of timing different which arise in
subsequent periods

It is also explain following terms

A.

Accounting convention :

The accounting are prepared on

historical cost basis and based on accrual of
accounting and applicable. Accounting
standard notified under the companies rules
65

the company 2006, and relevant provision of

the company Act, 1956.
The accounting policies adopted in
the preparation of financial are consistent
with those of previous year.
B. Use of estimates:
The preparation of financial
statement in conformist with Indian GAAP requires
the management to make estimates and
assumption to be made that affect the reported
amount of assets and liabilities and disclosure of
contingency liabilities on date of financial
statement and the actual result and estimates are
recognized in the period the period in which the
result are no materialized.
C. Tangible fixed assets:
Tangible fixed assets state out of
acquisition or construction less accumulated
depreciation. The cost of fixed assets includes nonrefundable taxes, levies freight, and other
incidental express related to acquisition and
installment of respective assets.

D.Borrowing costs :
Interest and other costs in
connection with the borrowing of the extents
related attributed to the acquisition of qualifying
fixed assets are capitalized up to the when such
assets are ready for their intended use other
borrowing are charged to statement of profit and
loss.

E. Depreciation:

Depreciation on tangible fixes

assets on provide on straight line in accordance
66

with the provision of the companies act 1956 at

the rate in manner prescribed in schedule XLU of
said act.

F. Revenue recognition:
Revenue is recognized to the
extent that it is possible that the economic
benefits will how to the company and revenue is
recognized when the significant risks and reward
of the ownership have passed to the buyer. The
company collects sales tax/ vat on the behalf of
the government and therefore these are not
economic benefits following to the company.
Hence, they exclude from revenue.

G.Inventories:
-

Raw Material:
Raw material are valued at lower of
cost net realizable value .However materials
are not written down below cost if the finished
products in expected to be sold at above cost.
Cost is determined on a FIFO basis and includes
all cost incurred in bringing the inventories to
their present location and condition.

- Finished goods:

Finished goods are valued at lower

at cost includes direct materials and labor and
a proportion of manufacturing cost.

H.Taxes on income:
Taxes expenses comprise
current tax and differed tax payable on the taxable
income for the year as determined in accordance
67

with provision of income tax, 1961. Differed tax

was resulting the current year and reserve of
timing different of earlier years using the tax rates
and laws that have been enacted or subsequently
enacted as on reporting date. Differed tax assets
are recognized and carried forward only to the
extent there is reasonable certainty that sufficient
future taxable income will be available which such
differed tax assets can be realized.

I. Employee benefits:
i.

ii.

Define contribution plan:

The companys
contributions paid payable for the year to
provident fund is recognize to the statement
of profit and loss.
Defined benefit plan:
The company
liabilities toward gratuity provide for on
estimates on the lines of actuarial valuation.

J. Earnings per share :

The company respect

basic and diluted earnings per share in accordance
with accounting standard 20 on earning per share.
Basic earnings per share compute by dividing the
year. Diluted earnings per share the net profit for
the year by the weighted average number of
equity share outstanding during the year-diluted
earnings per share, the net profit or loss for the
period adjust for effect of all dilutive potential
equity shares.

K. Provision , contingent liabilities and

contingent assets:
68

Provision involving substantial

degree of estimation in measurement is recognize
when there is a present obligation as a result to
past event and it is probable that will be an
outflow of resources. Contingent liabilities are not
recognized but disclose in the notes. Contingent
assets are neither recognized nor disclosed in the
financial statement.

L. Cash and cash equivalents:

Cash and cash equivalents for
the purpose of cash flow statement comprise cash
at bank and in hand and short term investment.

M.

Prior period expenses/income:

Material items of prior period

of five years

N.Foreign currency transaction:

Transaction in foreign
currencies is record at the exchange rates
prevailing on the date of the transaction.
Monetary assets and
liabilities denominated in foreign currency
translate on the exchange rate prevailing on the
balance sheet date.
All exchange gain/ losses
arising out of foreign currency transactions taken
to the profit and loss account.

O.Investment:
Long-term investment is
carried cost. After providing for any diminutions in
value, if such diminution is of permanent in nature

69

1.

Gross profit ratio:

It is the ratio expressing relationship

between gross profits earned to net sales; it is useful
indication of the profitability of business.
The basic components for the calculation
of gross profit ratio are gross profit and net sales. Net sales
mean those sales minus sales returns. Gross profit would be
difference between net sales and cost of goods trading
concern would be equal to opening stock plus purchases,
minus closing stock plus all direct expenses relating to
purchases. In the case of manufacturing concern, it would be
equal to sum of the cost of raw material, wages direct
expenses and all manufacturing expenses. In other words,
generally the expenses charged to profit and loss account of
operating expenses excluded of goods sold.

70

Formula:
Gross profit ratio=

Gross profit ratio =

Gross profit
Net sales

35%

Gross profit
gross profit
sales

71

Net profit ratio:

The ratio is valuable for

ascertaining the overall profitability of business and shows the
efficiency on otherwise of operating the business. It is the reserve
of the operating ratio.
It is express as percentage. The basic
two components of the net profit ratio are the net profit and sales.
The net profit obtained after deducting income tax and generally,
non-operating expenses and income exclude from the net profit
for calculating this ratio. Thus, income such as interest on
investment outside the business, profit on sales of fixed assets
and losses on sales of fixed assets, etc exclude.
Net profit ratio is the ratio of net profit
to net sales.

Net profit ratio= Net profit *100

Net sales

72

Net profit ratio= 15%

Net profit ratio

net profit
sales

73

3 Operating Ratio:
It is a ratio showing relationship
between costs of goods sold plus operating expenses and net
sales. It shows the efficiency of the management the higher the
ratio, the less will be the margin available to proprietors .the ratio
also usually expressed as a percentage.
Operating ratio is the ratio of cost of
goods sold plus operating expenses of net sales. It generally
expressed in percentage operating ratio measure the cost of
operations per dollar of sales. These closely related to the ratio of
operating profit to net sales. The two basic components for the
calculation of operating ratio are operating cost and net sales.
Operating expenses normally include (A) Administration and office
expenses (B) Selling and distribution expenses financial charged
such as interest, provision for taxation etc generally excluded
from operating expenses.

Formula:
Operating ratio: cost of
sales+Operatingexpenses * 100
74

Net sales

Operating ratio: 24%

operating ratio
sales

75

4 Current ratio:
This most widely used ratio shows the
proportion of current assets to current liabilities. It also known as
working capital ratio
The two basic components of this ratio are
current assets and current liabilities. Current assets include cash
and those assets, which can easily, converted into cash within a
short period, generally one year such as marketable securities or
readily realized investments, bills receivable. Sundry debtors,
inventories, work in progress, etc. Prepaid expenses should also
be included in current assets because they represent payments
made in advance, which will not have to pay in near future.

Formula:
Current Ratio:

current assets
Current laibilities

Current Ratio: 1.33%

76

current ratio

current ratio

5 Liquid Ratios:
It means the liquid position for the camp
to pay off its depts. Within every period as compared idle ratio 1:1
Common liquidity ratio includes the
current ratio, the quick ratio and the operating cash flow ratio.
Different analysis considers different assets relevant in calculating
liquidity. Some analysis will calculate only the sum of cash and
equivalent divided by current liabilities because they feel that are
most likely to use to cover short-term debts in an emergency.
Bankruptcy analyst and mortgage
originators frequently use the liquidity ratio is to whether a
company will be able to continue as a going concern.

Formula:
Liquid Ratio: Liquid Assets
77

Liquid Liabilities

6 Quick (Acid Test) Ratios:

It shows the immediate cash
capability of the company to meet its very quick disabilities idea
ratio=051.
The true liquidity refers to the
ability of a firm to pay its short-term obligation as and when they
become due.
The two components of liquid
ratio are liquid assets and liquid liabilities. Liquid assets normally
include cash, bank, sundry debtors, bills receivable and
marketable securities or temporary investments. In other word
they are current assets minus inventories cannot be termed as
liquid assets because it cannot converted into cash immediately
without a loss of value.
In the same Manner, prepaid
expenses also exclude from the list of liquid assets because they
not expected to convert into cash.
78

Similarly, Liquid liabilities

means current liabilities i.e., sundry creditors , bills payable ,
outstanding expense , short term advances , income tax payable ,
dividend payable and bank overdraft . In such cases overdraft will
excluded from current liabilities.

Formula:
Quick Ratio:

Quick Assets
Quick liabilities

7 Return on capital employed:

Return on capital employed
establishes the relationship between the profit and the capital
employed. It indicates the percentage of return on capital
employed in the shows the overall profitability and efficiency of
the business.
Return on capital employed. A
measure of the return that a company is realizing forms its
capital. The return on capital employed ratio , expressed as a
79

percentage complement the return on equity ratio by adding a

companys debt liabilities or funded debt to equity to reflect a
companys total capital employed this major narrow the focus
to gain a better understanding of a companys ability to generate
return from its available capital base .financial analysts consider
the ROCE measurement to be a more comprehensive profitability
indicator because it guarder managements ability to generate
earning from a companys total pool of capital

8 RETURNS ON SHAREHOLDERS FUND

It is the ratio of net profit to shareholders investment
.it is the relationship between net profit and shareholders
proprietor fund.

80

This ratio established the profitability from the

shareholders point of you. The ratio generally calculated in
percentage.
The two basic components of this ratio are net profit
and shareholders fund. Shareholders fund includes equity share
capital and or reserves and surplus belonging to shareholders.
Net profit means net income after payment of interest and income
tax because those will be the only profits available for
shareholders.

+ B/R
Ratio of net credit sales to average trade

81

Creditors Ratio:

It is the ratio of net credit purchase to luggage trade

creditors. Creditors transude ratio is also known as payables toes
over cardio.
It is on the pattern of debtors trainmen ratio. It indicator the
speed with which the payment are made to the trade creditor. It
establishes relationship between net credit account payables.
Accounts payables include trade creditors and bills payables.
Average means opening pulse closing balance divided by two. In
this case, also accounts payable figure should considered at gross
value. I, e before deducting provision for discount on creditors

FORMULA
Creditors Ratio = Creditors * No of Days
Purchase

10

Debtors Ratio:

It measure the number of time of rotations of debtors cycle are

done during a year.

FORMULA
Creditors Ratio = Creditors sales
Debtors
Account receivable is the team, which include trade debtors and
bill receivable. It is a components of current t assets and working
capital postal position of the buns perhaps, no business can offers
82

to make case sales only thus extending credit to the customer is

unavoidable. However, must be taking to collect book debts
quickly and within the period of credit allowed. Otherwise,
chances off debts becoming bad and unrealizable are the credited
collection. To provide receivable ratio is calculated.

11

Stock Turnover Ratio:

Stock turnover ratio and inventory turnover ratio are the same.
This ratio is the same. This ratio is a relationship between the cost
of goods sold during a particular period and the cost of average
inventory during a particular period. It is express in numbers of
time. Stock turnover ratio/inventory turnover ratio indicates the
number of time the stock has been turned oven during the period
evaluates the efficiency with is able to manage its inventory. This
ratio indicates whiten investment in stock is within paper limit on
not. Average inventory calculated by adding the stock in the
beginning and at the end of the period and dividing it by two. In
case of monthly balance of stock, the entire totals divided by the
number of months for which the average is calculated.
83

FORMULA:
Stock turnover ratio =

COGS
Average stock

Stock Turnover Ratio = 1.88

stock turnover ratio
stock turnover ratio

12 Earnings Per share:

It measures the earning available to the equity
shareholder available to the equity shareholder as compare to the
in investment done per share. This ratio better positing the
company and well efficiency of the company .

FORMULA
EPS = net profit after tax-pref. dividend
No of equity share
84

The basic components of earring per share are.

1) Earnings after tax
2) Total numbers of tax

Here earning after tax is earning available to share holders after

payment of preference share raided.

HUMAN
85

RESOURCE
DEPARTMENT

INTRODUCTION OF HUMAN RESOURCE

MANAGEMENT

The main assets of an organization are human

resource of people at work. The personnel management is
concerned with the employees, it is the art of accruing developing
and maintaining a competent work force is such a manner as to
accomplish with maximum efficiency and economy the function
and objectives of organization.
The personnel management is a very important
function of any organization as it deals with managing people,
which are the most valuable resource of any organization. For the
86

efficient working of any organization, adequate support has to

given to the different requirement of its employees, proper
satisfaction and the training needs.
K.k. shuddh ayurvedic pharmacy pvt.ltd all the decision
regarding employees taken very effectively they give more
important to employees efficiency. Employees given proper
training and fair wages Personnel head always remain aware
necessaries of employees try very much to fulfill them and
provided cordial environment to workers for working

Recruitment
Recruitment is the process of finding and attracting
capable applicant for employment the process begins when new
recruiters are soughed and ends when this application are
submitted the result is the pools of application from which new
employer are related the pool of potentially qualified job
candidate.
Recruitment refers to as attracting and
motivating prospective candidates for applying in the current job.
87

THE RECRUITMENT PROCEDURE THE STEPS ARE

FOLLOWINGING
1:- advertisement of vacancy
2:- recovering application
3:- screening of application
4:- interviews or written test
5:- final selection

"Recruitment is the positive process by

striving more and more people to apply it is the process to
discover the source of manpower to meet the recruitment of the
staffing schedule and to employ effective means for attracting the
manpower in adequate number to facilitate effective selection of
en effective working force

Recruitment has been regarded so the most

important faction of personnel administration because unless the
right types of people are hired even the best plan organization
structure and control system would not work efficiently.

The selection procedure is concerned with

securing relevant information about and applicant. This
information is secure in a number of steps or steps the objective
of selection process is to qualification for specific job and to
choose the applicant .who is most likely to perform well in the job
88

K.k. shuddh Ayurvedic pharmacy pvt.ltd has been

recruiting employed by recommendation and referred from close
from and relatives of employees or directors the organization
does not give any formal advertisement in the newspaper or
magazines .the final selection based on personal interview and
past most of times the recruitment of work is done through the
advertising on company gate. The employees hired as and when
the need arises

SELECTION
Selection is the second step in the process of
procurement of people. This is the process of individual who,
possess the necessary skill and ability and personality will
successfully fills the specified jobs in the works it is a problem of
matching a man to the job.

89

Selection is the procedure is different to

different organization. However, K.K SHUDD AYURVEDIC
PHARMACY PVT LTD does not have any specific selection
procedure. The selection procedure of company includes:

1:- COLLETION
2:- INTERVIEW

Company collects the application and calls all the

people for interview and it the higher authority feels that a person
has these skill and ability to do the work and helpful achieving the
organization objective.

Training and development

A training program is important organization.
Besides contributing to its capacity to grow future need of
employees will be taken care by training and development
90

There are different approaches adopted by different

companies regarding training to these employees however, it
cannot say that training is not essential for betterment and
success of organization training can increase the efficiency of the
employees.

k.k. shuddh ayurvedic pharmacy pvt.ltd has policy

regarding training to employees it given according to the
familiarity of employees with their work or job i.e. if the workers
are in experienced regarding the work to be done by them such
employees are first given full theoretical and practical information
regarding the exact way of doing the work then such person are
put on the actual work place along with some other experienced
employees. In this way, learn the proper way of doing right job.

Promotion and transfer

Promotion:-

91

Promotion means an improvement in pay prestige

position and responsibilities of an employees within his has
organization
we have see that new the persuaded are in the
company after the selection as urine the job of the person is
under constant supervision of the hyper he will look on the way
the work is being done by the new appointed employees on the
basis level of position the employees is to be given is decided
they dont have transfer police.

Transfer:Transfer means a change in the job an employee without the

change in responsibility or remuneration. The reason for transfer
vary from organization to organization and from within an
organization.
They do not have transfer policy

Facilities to employees

92

1:-training to improve their efficiency

2:-loans for employees
3:- diwali bonus is give to the employees every year
4:- medical facility
5:- sanitary facility
6:-uniform
7:-shoes
8:-caps
9:-overtime facility
10:-one hour break

Total no of employees
One: - There are 30 employees
93

Labor union

1:- there is no labor union in the organization

Labor problem
1:-there is no labor problem in the company

Performance appraisal
1:-the higher authority does performance appraisal in systematic
and formal ways.

Grievances
1:-the relation between management and labor is cordial and
there no grievances.

94

Social activity
1:- k.k. shuddh ayurvedic pharmacy pvt.ltd believes in not
declaring any social activity they do k.k. shuddh ayurvedic
pharmacy pvt. Ltd performs logical activity in secret manner they
do not believe in show off.

Time keeping system

Recording attendance of each and every
employee within the organization known as time keeping records
n. The time system should maintained for proper function of
administration k.k. shuddh ayurvedic, which we called a general
right 9:00 am to 5:00 pm manual is done.

Suggestion

95

 According to me the k.k. shuddh ayurvedic company needs

to increase their market size towards to their products
selling
The k.k. shuddh ayurvedic company should adopt more
promotion strategy
The k.k. shuddh ayurvedic company need to improve their
product segmentation of various product categories in
different segmented area.
The k.k. shuddh ayurvedic company needs to increase their
production level any try to new product development
The company should

Conclusion
96

K.k. shuddh ayurvedic pharmacy is the largest

selling company of ayurvedic drugs in the local market in
Gujarat
K.k. shuddh ayurvedic consumers increase in few
years. Mr. Tarakbhai , the owner of k.k. shuddh ayurvedic
pharmacy can be consumed by all age group and it is a favorite
for many of them it has good marketing strategy what caters
even to call it is now concentrating in exports more in all cities in
Gujarat and other states.

97

98