Summer Internship/ Project Work

A
REPORT ON
  SUMMER INTERNSHIP/ PROJECT WORK
FOR
SHAH PAPERPLAST INDUSTRIES LTD
SUBMITTED TO
2
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I IM)
  CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

CHANGA
PREPARED BY
ROHIT ANITA. M.
ID NO.: 16MBA097
M.B.A. FIRST YEAR
UNDER THE GUIDANCE OF
MR. BINIT PATEL
ASSISTANT PROFESSOR
2
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I IM) CHAROTAR
UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)   AT. & PO.
CHANGA – 388 421 TA: PETLAD DIST. ANAND, GUJARAT
DECEMBER-2017
1
DECLARATION
I Rohit Anita student of the two years MBA programme at Indukaka Ipcowala Institute of
Management (I2IM) hereby declare that the report on organisation attachment programme
entitled “A STUDY ON DETERMINANTS OF CAPITAL STRUCTURE IN SHAH
PAPER PLAST INDUSTRIES LIMITED” is the result of my / our own work. I/we also
acknowledge the other works / publications cited in the report.
Place: Changa (Signature)
Date: RohitAnita.M.
2
ACKNOWLEDGEMENT
A summer project is a golden opportunity for learning and self-development. I consider myself
very lucky and honored to have so many wonderful people who lead me through in achievement
of this project.
I wish to express my indebted gratitude and special thanks to Mr.HarveshBhai Patel (HR
Manager) who in spite of being extraordinary busy with his duties, took time out to hear, guide
and keep me on the correct path and allowing me to carry out industrial project work at their
esteemed organization and extending during the training.
A humble ‘Thank you’ Sir.
It is my glowing feeling to place on record my best regards, deepest sense of gratitude to all staff
members of Shah Paperplast Industries limited, Nadiad, for their judicious and precious guidance
which were extremely valuable for my study both theoretically and practically.
I would like to say thanks Dr. Govind Dave, Dean, I2IM, CHARUSAT UNIVERSITY for his
guidance and support.
I express my deepest thankfulness to Mr Binit Patel ,I2IM ,CHARUSAT UNIVERSITY for their
guidance and support, He supported us by showing different method of information collection
about the company. He helped all time when we needed and he gave right direction toward
completion of project successfully.
At last but not least gratitude goes to all my friends who helped me to this report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
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Contents
At Shah Paperplast Industries Limited, we aim ............................................................................. 7
FUNCTIONAL AREAS: .............................................................................................................. 13
4 Marketing strategies of Shah Paperplast Industries ltd. ..................................................... 14
PRODUCT LIFE CYCLE ......................................................Error! Bookmark not defined.
PRODUCTION / OPERATION ............................................................................................... 15
HR PLANNING ........................................................................................................................ 18
RECRUITMENT AND SELECTION .................................................................................. 19
FINANCE AND ACCOUNTING ............................................................................................ 19
Investment In Various Assets ................................................................................................ 19

WORKING CAPITAL MANAGEMENT ............................................................................ 20
OPERATING CYCLE .......................................................................................................... 21
Accounting System ................................................................................................................ 22
Delegation of Power .............................................................................................................. 22

Tax Compliance Mechanism ................................................................................................. 22
DECISION MAKING .................................................................................................................. 22
Board meeting ........................................................................................................................... 22
Audit committee meeting .......................................................................................................... 22
Middle management decision.................................................................................................... 22
Decision by operating staff ....................................................................................................... 22
Profitability Of The Firm In The Last Five Year ...................................................................... 23
Assets build up in the last five year........................................................................................... 23
Key Financial Ratios And Their Interpretation ......................................................................... 23
FINANCIAL HEALTH OF THE ORGANIZATION .............................................................. 31
TASKS AND ACTIVITIES PERFORMED IN THE ORGANIZATION ................................... 31
Organizational Learning ............................................................................................................ 31
INTRODUCTION ........................................................................................................................ 33
OVERVIEW OF THE STUDY .................................................................................................... 37
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BACKGROUND OF THE STUDY ......................................................................................... 38
VARIABLE STRUCTURE .......................................................................................................... 39
HYPOTHESIS .............................................................................................................................. 39
RESEARCH METHODOLOGY.................................................................................................. 42
SCOPE OF THE STUDY ............................................................................................................. 42
FINDINGS ................................................................................................................................ 44
CONCLUSION AND LIMITATION........................................................................................... 45
Conclusion................................................................................................................................. 45
LIMITATION OF THE STUDY .............................................................................................. 45
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REPORT ON SUMMER TRAINNING/PROJECT WORK
PART - I – ORGANISATIONAL PROFILE
Introduction (Company Profile)
Name SHAH PAPERPLAST INDUSTRIES LTD
Address C-3/3 – 3/4, GIDC ESTATE, MILL ROAD,

NADIAD, GUJARAT. 387001
Telephone Number 02682568888
Started From 2006
Main Product Supplier in India who can supply Non-Bleeding

Tissue Paper in any color
Company Category Company limited by shares
Company sub category Non-government company
Class of company Public
DIRECTORS DETAIL :
KAVIT NILESH SHAH Director
CHANDRAVADAN CHIMANLAL SHAH Wholetime Director
HANSIKABEN CHANDRAVADAN SHAH Wholetime Director
NILESH CHANDRAVADAN SHAH Managing Director
SHITALBEN NILESHBHAI SHAH Wholetime Director
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ORGANIZATIONAL PROFILE
At Shah Paperplast Industries Limited, we aim to meet exact requirements of our clients through
unmatched quality standards of our products. At our highly sophisticated manufacturing units,
we maintain a stringent quality control policy as per which all the quality control operations are
performed by a well trained team of experts. From the
procurement of raw materials to the final inspection and packaging of the finished
products, everything is done as per the ISO and other international quality standard. Thus,
we can deliver an unmatched products quality along with our highly reliable customer
care services.
The strength of our company deception in its sound infrastructure comprising of world class
facilities and cutting edge machinery. We have two manufacturing Department at our factory
premise one for manufacturing tissue papers & other paper products and another for disposable
plastic products. Both these units are exceedingly practical and loaded with the latest machinery.
In addition, we are equipped with in – house facilities for quality control and R & D with all
these imprisoned facilities. We excel in our field and have the effectiveness to manufacture
superlative quality products as per the highest quality standard. Besides, we are also legitimize
by the committed service of our highly skilled labor pool which has led us in our mission to be
an acknowledged leader in our field.
Having a reputation of being the most reliable brand since our inception, we are committed to
serve with premium products and distinguished services. Shah Paperplast Industries Limited was
established in the year 2006 and within a very short span of time, has created extraordinary
products at the international level.
Our product portfolio includes Plain and Printed Tissue Paper, Metalized and Printed Wrapping
Paper & Polyester Film, Glitter Paper, Die Cut Tissue Paper, Gift Boxes & Bags and Disposable
Plastic Products such as Cups, Plates, Bowls, Dinner Plates etc. At presents, our company is
supplying its products to our clients spread all over USA, UK, Europe, Latin America and
Middle Eastern Countries. The wide acclaim enjoyed by us owes to our uncompromising attitude
towards quality. All our plants and products efficiently meet the ISO standards.We continually
thrive for improving the existing quality standards of our products through constant and
extensive research. In addition, we assure an efficient product delivery and leave no stone
unturned to earn complete satisfaction of our customers. As per our knowledge, we are the only
supplier in India who can supply Non-Bleeding Tissue Paper in any color.
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EVALUATION AND HISTORY
Shah Paperplast Industries Limited is a Public incorporated on 07 May 2008. It is classified as
Non-govt company and is registered at Registrar of Companies, Ahmedabad. Its authorized share
capital is Rs. 80,000,000 and its paid up capital is Rs. 67,500,000.It is involved in Manufacture
of plastic products.
Shah Paperplast Industries Limited's Annual General Meeting (AGM) was last held on 30
September 2016 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet
was last filed on 31 March 2016.
Directors of Shah Paperplast Industries Limited are Kavit Nilesh Shah, Chandravadan Chimanlal
Shah, Hansikaben Chandravadan Shah, Nilesh Chandravadan Shah and Shitalben Nileshbhai
Shah.Shah Paperplast Industries Limited's Corporate Identification Number is (CIN)
U25209GJ2008PLC053833 and its registration number is 53833.Its Email address is
shahplast@hotmail.com and its registered address is C-3/3-3/4 G I D C ESTATE MILL ROAD
NADIAD GJ 387001 IN , - , .Current status of Shah Paperplast Industries Limited is - Active.
The strength of our company lies in its sound infrastructure comprising of world class facilities
and cutting edge machinery. We have two manufacturing Department at our factory premise one
for manufacturing tissue papers & other paper products and another for disposable plastic
products. Both these units are highly sophisticated and loaded with the latest machinery. In
addition, we are equipped with in – house facilities for quality control and R & D with all these
captive facilities. We excel in our field and have the capability to manufacture superlative quality
products as per the highest quality standard. Besides, we are also empowered by the dedicated
service of our highly skilled workforce which has led us in our mission to be an undisputed
leader in our field.
Having a reputation of being the most reliable brand since our inception, we are committed to
serve with premium products and distinguished services. Shah Paperplast Industries Limited was
established in the year 2006 and within a very short span of time, has created extraordinary
products at the international level.
We continually thrive for improving the existing quality standards of our products through
constant and extensive research. In addition, we assure an efficient product delivery and leave no
stone unturned to earn complete satisfaction of our customers. As per our knowledge, we are the
only supplier in India who can supply Non-Bleeding Tissue Paper in any color.
8
MISSION AND VISION OF THE COMPANY
Vision
Our product portfolio includes Plain and Printed Tissue Paper, Metalized and Printed Wrapping
Paper & Polyester Film, Glitter Paper, Die Cut Tissue Paper, Gift Boxes & Bags and Disposable
Plastic Products such as Cups, Plates, Bowls, Dinner Plates etc. At presents, our company is
supplying its products to our clients spread all over USA, UK, Europe, Latin America and
Middle Eastern Countries. The wide acclaim enjoyed by us owes to our uncompromising attitude
towards quality. All our plants and products efficiently meet the ISO standards.
Mission
We Are The Only Supplier In India Who Can Supply Non-Bleeding Tissue Paper In Any Color.
At Shah Paperplast Industries Limited, we strive to meet exact requirements of our clients
through unmatched quality standards of our products. At our highly sophisticated manufacturing
units, we maintain a stringent quality control policy as per which all the quality control
operations are performed by a well trained team of experts.
PRODUCT OF THE COMPANY
PLASTIC PRODUCT PAPER PRODUCT

Plastic Cups Wrapping Roll
Plastic Plates Tissue Paper
Plastic Plates & Bowls Gift Bags
Plastic Compartment Plates Take Out Boxes
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GEOGRAPHICAL SPREAD OF FACILITIES
Our Product Basket Comes With The Following Items Of World Class Quality.
FUCTIONAL AREAS
MARKETS AND MARKETING OF THE COMPANY
MARKETS & MARKETING:
Marketing is defined by the American Marketing Association as "the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large."The term developed from the original
meaning which referred literally to going to market with goods for sale. From a Sales process
engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions" of a business aimed at achieving customer interest and
satisfaction.
The Chartered Institute of Marketing defines marketing as "the management process responsible
for identifying, anticipating and satisfying customer requirements profitably."A similar concept
is the value-based marketing which states the role of marketing to contribute to increasing
shareholder value.In this context, marketing can be defined as "the management process that
seeks to maximise returns to shareholders by developing relationships with valued customers and
creating a competitive advantage."
Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because the academic study of marketing makes
extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology
and neuroscience, the profession is now widely recognized as a science,[8][not in citation
given]allowing numerous universities to offer Master-of-Science (MSc) programs.
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The process of marketing is that of bringing a product to market. As such, the steps include,
broad market research; market targeting and market segmentation; determining distribution,
pricing and promotion strategies; developing a communications strategy; budgeting; and
visioning long-term market development goals. Many parts of the marketing process (e.g.
product design, Art direction, Brand management, advertising, Copywriting etc.) involve use of
the creative arts.
Research And Development
The Research & Development activities are focused on Process Improvement of Yield and
Quality, Development of Active Ingredients and Toll research/Custom Synthesis.
Present products of the company

We continually thrive for improving the existing quality standard of our products though
constant and extensive research. In addition, we assure efficient product delivery and leave no
stone unturned to earn complete satisfaction of our customer.
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GIFT BAGS
Gift wrapping is the act of enclosing a gift in some sort of material. Wrapping paper is a kind
of paper designed for gift wrapping. An alternative to gift wrapping is using a gift box. A
wrapped or boxed gift may be held closed with ribbon and topped with a decorative bow .
TISSUE PAPER
Tissue paper is produced on a paper machine that has a single large steam heated drying cylinder
fitted with a hot air hood. The raw material is paper pulp. Tissue paper or simply tissue is a
lightweight paper or, light crêpe paper. Tissue can be made from recycled paper pulp.
GLITTER TISSUE PAPER

Glitter describes an assortment of small, colourful, reflective particles that comes in a variety of
shapes. Glitter particles reflect light at different angles, causing the surface to sparkle or
shimmer. Glitter is like confetti, sparkles, or sequins, but somewhat smaller. Since prehistoric
times, glitter has been made and used as decoration, from many different materials including
stones such as malachite, galena, and mica, as well as insects and glass. Modern glitter is usually
manufactured from plastic.
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COMPETITORS
Other firm who are manufacturing the Plastic And Papers are to be considered as a competitor
for Shah Paper Plast Industries Ltd. Following are the products of competitors.
(1) SURBHI PACKAGING: Subhash Nagar, Nadiad, Gujarat 387002
MARKETING STRATEGY SHAH PAPER PLAST INDUSTRIES LTD.

Shah paper plast Industries has Good marketing strategy for increase the sales. These strategies
are like consistent as follow
The use of gifts including pens and coffee mugs embossed with pharmaceutical product names
has been prohibited by PHRMA ethics guidelines.
Free samples has been shown to affect physician prescribing behavior. physician with access to
free samples are more likely to prescribe brand name medication over equivalent generic
medications.
Drug coupons to consumers to help off set the co-payments charged by health insurers for
prescription medication.
These coupons are generally used to promote medication that compete with non-preferred
products & cheaper, generic alternatives by reducing or eliminating the extra out of pocket costs.
That an insurers typically charge a patient for a non-preferred drug products.
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RESEARCH&DEVELOPMENT
Continued emphasis on Research & Development have enabled Shah PaperPlast industries group
to carve a niche for itself in the global markets in the manufacture of paper and plastic.
Maintaining international standard in product quality has ensured customer satisfaction.
The Research & Development activities are focused on Process development, New
Intermediates, Raw Material substitution, Improvement of Yield and Quality, Development of
Active Ingredients.
4 Marketing strategies of Shah Paperplast Industries ltd.

Shah PaperPlast Industries has Good marketing strategy for increase the sales. These strategies
are like consistent as follow
 Product plans
 Challenges
 Branding
 Outsourcing
 Online Presence
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PRODUCT LIFE CYCLE
There are four phases, 1) Introduction, 2) Growth, 3) Maturity, 4) Decline
 Introduction – A new product enters the market. The sales are slow and the company actually
usually loses money from set- up cost and marketing the product to “catch on” with its
customers.
 Growth -Sales of the product start growing as customers become more aware of the product.
As a product catches on and sales grow more competitors join to take a bite of the action.
 Maturity – Sales growth slows as new competitors join the game and most purchasers already
have the product that needs it. Heavy advertising & sales expenses are needed to maintain
sales and profit starts dropping off.  
 Decline - Sales start to slowdown. Fewer banks offer the product.
 Newer and better product is offered that the customer’s needs in the place of the current
product. Promotion of the product falls off and the product dies.
 Shah Paperplast Industries Limited is now at the maturity stage of its product life cycle.
PRODUCTION / OPERATION
The core of production system is its conversion subsystem where in worker; raw materials are
used to convert in to products and services. This production department is the heart of the firm,
as it is able to produce chemicals.
There are different types of raw material for different Paper, Plastic.In the entire plastic product a
total production capacity of Plastic dyes not more than 100 MT/month.
Colour additives in paper products. An application as a color additive in paper products

including: plastic, paper, tissu.
SUPPLY CHAIN AND LOGISTICS
Supply chain management (SCM) is the active streamlining of a business' supply-side activities
to maximize customer value and gain a competitive advantage in the marketplace. SCM
represents an effort by suppliers to develop and implement supply chains that are as efficient and
economical as possible. Supply chains cover everything from production, to product
development, to the information systems needed to direct these undertakings.
Logistics is the process of planning, implementing, and controlling procedures for the efficient
and effective transportation and storage of goods, including services and related information,
from the point of origin to the point of consumption. The goal of logistics is to successfully meet
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customer requirements. This definition includes inbound, outbound, internal and external
movements.
BATCHES
ORDER PLACED PACKAGING
PREPARED
FIRM TAKES CONVERSION

ORDER & MAKES INTO FINISH JOB WORK
ENTRY IN DEPORT GOODS
INDENT
RAW MATERIAL PRODUCT REACH MIL-4

PURCHASED & FOR
MAKE TRANSFER MANUFACTURING FOR DEPORT
ORDER ENTRY AT UNIT 1 LOCATION
HUMAN RESOURCES MANAGEMENT

As we know that there are 4 important functions in any organization that is marketing finance,
production, and human resource management. So Human Resource is also an important function
for any organization. Human resource management is a function in organization designed to
maximize employee performance of an employer’s strategic objectives. HR is primarily
concerned with the management of people within organization, focusing on policies and systems.
HRM in shah paperplast Industries Ltd. Following gives us brief idea about human resource
management at shah paperplast .
Human resources is used to describe both the people who work for a company or organization
and the department responsible for managing resources related to employees. The term human
resources was first coined in the 1960s when the value of labor relations began to garner
attention and when notions such as motivation, organizational behavior, and selection
assessments began to take shape.
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Human resource management is a contemporary, umbrella term used to describe the
management and development of employees in an organization. Also called personnel or talent
management (although these terms are a bit antiquated), human resource management involves
overseeing all things related to managing an organization’s human capital.Human resource
management is therefore focused on a number of major areas, including:
Recruiting and staffing
Compensation and benefits
Training and learning
Labor and employee relations
Organization development
Due to the many areas of human resource management, it is typical for professionals in this field
to possess specific expertise in one or more areas. Just a few of the related career titles for HR
professionals include:
 Training development specialist

 HR manager
 Benefits specialist
 Human resource generalist
 Employment services manager
 Compensation and job analysis specialist
 Training and development manager
 Recruiter
 Benefits counselor
 Personnel analyst
The Agenda of Today’s Human Resource Management Team

Today’s HR management team must focus their efforts on five, critical areas, according to the
Forbes article:
Define and align organizational purpose:

A company’s employees must be able to clearly articulate why the company exists in order to
achieve a purpose-driven, sustainable, high-performing organization. Employees must also
understand how their efforts connect, or align, with the organization’s purpose.
Recruit the best talent by creating, marketing, and selling an Employee Value Proposition
(EVP):
False marketing and misconceptions about an organization are some of the main reasons why the
employer-employee relationship fails. Therefore, companies must create, market, and sell an
EVP that is true and accurate as to not mislead potential employees.
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Focus on employee strengths:
Companies must make every effort to understand what candidates and employees do best and put
them into roles where they can play to their strengths as much as possible.
Create organizational alignment:

Achievements must align with the organization’s objectives so as to build a successful and
sustainable organization.
Accurately measure the same things:

All internal departments and employees must be measuring the same things as to achieve a
definitive organizational result and to ensure that everyone knows exactly where the organization
is at all times.
HR PLANNING
Human resource planning is a process that identifies current and future human resources needs
for an organization to achieve its goals. Human resource planning should serve as a link between
human resource management and the overall strategic plan of an organization. Ageing workers
population in most western countries and growing demands for qualified workers in developing
economies have underscored the importance of effective human resource planning.
As defined by Bulla and Scott, human resource planning is 'the process for ensuring that the
human resource requirements of an organization are identified and plans are made for satisfying
those requirements. Reilly defined (workforce planning) as: 'A process in which an organization
attempts to estimate the demand for labor and evaluate the size, nature and sources of supply
which will be required to meet the demand Human resource planning includes creating an
employer brand, retention strategy, absence management strategy, flexibility strategy, (talent
management) strategy, (recruitment) and selection strategy.
Before they start about hiring, they make plan about basic staffing plan. This plan short out how
many employees they expect hire, the type of employees they are looking for, and what they will
be expected to do. This plan should also address how the employee expenses will be covered.
These are the basics of a staffing plan of shah paperplast
 Fulfillment of the Objective 

 Characteristics and culture of employees 
 Approach to finding new employees 
 How they are going to keep good employees
 Training and transition 
 Funding of employee
 Job descriptions
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RECRUITMENT AND SELECTION
They are following very simple process of recruitment. As per the need of employee’s
requirement, departmental head recruit the person for the job vacancy. There systematic
procedure comprising four stages: an assessment of whether the vacancy needs to be filled, a job
analysis, the production of the job description and a person specification. They are using
different formal and in formal method for selection process. So they follow simple process of
selection.
FINANCE AND ACCOUNTING

Investment In Various Assets
PARTICULERS AS AT 31-3-2016 AS AT 31-3-2015
1) Non-current investment
In unquoted instrument
National saving certificate 3500 3500
Share of green Environment co- operative. 1000 1000

soc. Ltd.
TOTAL 4500 4500
2)Current Investment 55000000 -
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LONG TERM & SHORT TERM FINANCIAL MANAGEMENT
1. Long Term Financial Management
 Long term borrowing: Unsecured loan from following

1. Directors
2. Group companies (ICD)
3. Other companies (ICD)
 Sources of long term finance: Advance income tax and TDS.
2.Short Term Financial Management
 Short term borrowing:

1. Loans repayable on demand from bank
2. Current maturity of long term debt
 Sources of short term finance: All others unsecured prepaid expense.
WORKING CAPITAL MANAGEMENT
Working capital management refers to a company's managerial accounting strategy designed to

monitor and utilize the two components of working capital, current assets and current liabilities,
to ensure the most financially efficient operation of the company. The primary purpose of
working capital management is to make sure the company always maintains sufficient cash flow
to meet its short-term operating costs and short-term debt obligations
(1) Short term sources - Following are the sources of working capital management.
 Income received in advance- Income received in advance is seen as a liability because it

is money that does not correlate to that specific
 accounting or business year but rather for one that is still to come. The income account
will then be credited to the income received in advance account and the income received
in advance will be debited to the income account such as rent.
 Advances received from customers - A liability account used to record an amount

received from a customer before a specific service has been provided or before goods
have been shipped.
 Bank overdraft - A bank overdraft is when someone is able to spend more than what is
actually in their bank account. The overdraft will be limited. A bank overdraft is also a
type of loan as the money is technically borrowed.
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 Trade Finance - An exporter requires an importer to prepay for good shipped. The
importer naturally wants to reduce risk by asking the exporter to document that the goods
have been shipped. The importers bank assist by providing a letter of credit to the
exporter providing for payment upon presentation of certain document, such as a bill of
lading.
(2) Long term sources of working capital:
Following are the sources of long term working capital.
 Loans: A loan is a type of debt which it entails the redistribution of financial asset over
time between the lender and the borrower. In a loan, the borrower initially receives or
borrows an amount of money to the lender at a later time.
 Equity Capital: Equity capital refers to the portion of a company’s equity that has been
obtained by trading stock to a shareholder for cash or an equivalent item of capital value.
OPERATING CYCLE
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Accounting System
The company shah paperpast Industries Limited applies TALLY ERP software for their
accounting entries.
Delegation of Power
In shah paperplast Industries ltd, delegation of power is up to certain extent. In most of time
power is under the hands of director only but in some situation there is delegation of power to the
departmental head.
Tax Compliance Mechanism

Sales Tax, Income Tax, VAT, Wealth Tax, Services Tax, Custom duty, Excise duty
DECISION MAKING
Board Meetings, Frequency, and Nature of decision
Board meeting
 Frequency: 5 meetings in a year.
 Nature of decision: Authorizations or introduction of new policies or product, or any new

planning
Audit committee meeting
 Frequency: 4 meetings in a year.
 Nature of Decision: General terms and conditions related decision. As approved by

board, how such decision would get followed in company for which terms and conditions
should be applied Control on some policy.
Middle management decision
 Frequency: weekly meetings
 Nature of Decisions: Decision regarding routine issues in the company, control on

following decision of high authority.
Decision by operating staff
As policies, terms and conditions prepared operating staff should take care of customer must
follow such manner and co-operate with the bank. Decision can be regarding weekly activities.
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FINANCIAL ANALYSIS
Profitability Of The Firm In The Last Five Year
YEAR PROFIT (in Rs)
2012-13 562489
2013-14 489654
2014-15 545123
2015-16 654542
2016-17 765452
Assets build up in the last five year.
Following is the list of assets which were building up in the last five years.
 Plant and machinery
 Electric installation
 Office Equipments
 Furniture and Fixtures
 Computers and its Peripherals
Key Financial Ratios And Their Interpretation
PARTICULARS YEAR
2012-2013
Current ratio 1.78 : 1
( current assets / current liabilities )
Quick ratio 1.11 : 1
( quick assets / current liabilities )
Return on shareholder fund 3.50 %
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( EAT/ shareholder’s fund )* 100
Debt equity ratio 0.017
( long term debts / shareholder’s fund )
Proprietary ratio 69.03 %
( shareholder’s fund / capital employed )* 100
Net profit ratio 2.17 %
( net profit / net sales )
Interest coverage ratio 0.15
( EBIT / interest )
Return on assets 0.015 %
( net profit / total assets )
Inventory turnover ratio 3.06
( total sales / inventory )
Return on capital employee 0.02
( net profit / capital employed )
Earnings per share 10.92
( net profit / no. of equity shares )
Assets turnover ratio -
( net sales / average total assets )
PARTICULARS YEAR
2013-2014
24
( EBIT / interest )
(net profit / capital employed )
Assets turnover ratio 1.03
25
PARTICULARS YEAR
2014-2015
Current ratio 2.18 :1
Net profit ratio 8. 62 %
( EBIT / interest )
26
PARTICULARS YEAR
2015-2016
( EBIT / interest )
27
(net profit / capital employed )
Key Financial Ratios And Their Interpretation
PARTICULARS YEAR
2016-2017
Current ratio 1.56: 1
( EBIT / interest )
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Assets turnover ratio -
INTERPRETATION OF RATIOS
 Current ratio: - Current ratio expresses the extent to which the current liabilities of a business
are covered by its current assets. A current ratio of 2 would mean that current assets are
sufficient to cover for twice the amount of a company's short term liabilities. Here the current
ratio of MIL is 1.78 in 2012-13 which decreases in year 2013-14 and comes to
 1.65 but the company soon recovered and improve the ratio in year2014-15 and in year 2015-16
is 2.18 and 2.36 respectively.
 Quick ratio: - Quick ratio shows the extent of cash and other current assets that are readily
convertible into cash in comparison to the short term obligations of an organization. A quick
ratio of 0.5 would suggest that a company is able to settle half of its current liabilities
instantaneously. For MIL the ratio in year 2012-13 is 1.11, in year 2013-14 it slightly decreases
to 0.96 but next two years it recover and reaches to 1.75 and 1.14 in year 2014-15 and 2015-16
respectively.
 Return on shareholder’s fund: - it is used to measure the overall profitability of the company
from preference and common stockholders’ point of view. The ratio also indicates the efficiency
of the management in using the resources of the business. Higher ratio means higher return on
shareholders’ investment and a lower ratio indicates otherwise. Investors always search for the
highest return on their investment. The ratio is 3.50%, 9.05%, 20.23% and 18.23% for last five
years.
29
 Debt-to-equity ratio:-Debt-to-equity ratio quantifies the proportion of finance attributes to debt
and equity. Debt-to-equity ratio which is low, say 0.1, would suggest that the company is not
fully utilizing the cheaper source of finance (i.e. debt) whereas a debt-to-equity ratio that is high,
say 0.9, would indicate that the company is facing a very high financial risk. For year 2012-13
the ratio of MIL is 0.017and for 2013-14 is 0.015. it is increased in last two years which is 0.39
and 0.31 for year 2014-15 and 2015-16 respectively.
 Proprietary ratio: - proprietary ratio shows the contribution of stockholders’ in total capital of
the company. A high proprietary ratio, therefore, indicates a strong financial position of the
company and greater security for creditors. A low ratio indicates that the company is already
heavily depending on debts for its operations. For MIL the ratio in the year 2012-13 is 69.03%,
next year it rise to 72.89% and in the year 2014-15 it is 71.43% which further increase in year
2015-16 to 75.80%.
 Net Profit Ratio: - Net Profit Ratio is the percentage of net profit relative to the revenue earned
during a period. In MIL net profit ratio is increasing over the years. It is 2.17%, 3.85%, 8.62%
and 11.50% for last four years.
 Interest Coverage Ratio: - Interest Coverage Ratio indicates the capacity of an organization to
pay its interest obligations. An interest cover of 2 implies that the entity has sufficient
profitability to bear twice the amount of its current finance cost. This ratio is0.15 in year 2012-
13, 1.52 in year 2013-14, 3.16 in year 2014-15 and 3.80 in year 2015-16.
 The Return on Assets (ROA):- this ratio shows the relationship between earnings and asset
base of the company. The higher the ratio, the better it is. This is because a higher ratio would
indicate that the company can produce relatively higher earnings in comparison to its asset base
i.e. more capital efficiency. In 2012-13 the ratio is o.015%, in next year it increases to 0.035%.
In year 2014-15 the ratio is 0.092% and 0.090% in 2015-16.
 Inventory turnover ratio: - it is a ratio showing how many times a company's inventory is sold
and replaced over a period of time. Inventory turnover is a measure of how efficiently a company
can control its merchandise, so it is important to have a high turn. This shows the company does
not overspend by buying too much inventory and wastes resources by storing non-saleable
inventory. the ratio in 2012-13 is 3.06 and decrease in next year to 2.90. in year 2014-15 the ratio
is again 3.06 and again decrease in 2015-16 to 2.40.
 Return on capital employed ratio: - it measures the efficiency with which the investment made
by shareholders and creditors is used in the business. Managers use this ratio for various
financial decisions. It is a ratio of overall profitability and a higher ratio is, therefore, better. for
last four years the ratio is 0.02, 0.04, 0.14 and 0.13.
 Earnings per share (EPS) ratio: - it measures how many dollars of net income have been
earned by each share of common stock. Earnings per share (EPS) are the portion of a company's
profit allocated to each outstanding share of common stock. Earnings per share serves as an
30
indicator of a company's profitability. The EPS ratio of company is 10.92 in 2012-13, 31.01 in
2013-14, 86.66 in 2014-15, and in 2015-16 it is 95.48.
 Asset turnover ratio: - it is the ratio of a company's sales to its assets. It is an efficiency ratio
which tells how successfully the company is using its assets to generate revenue.
If a company can generate more sales with fewer assets it has a higher turnover ratio which tells
it is a good company because it is using its assets efficiently. A lower turnover ratio tells that the
company is not using its assets optimally. Total asset turnover ratio is a key driver of return on
equity. MIL have the ratio in 2012-13 is 1.03 which increases in next year to 1.11 and in year
2014-15 it is 0.84.
FINANCIAL HEALTH OF THE ORGANIZATION
From the view of balance sheet and profit and loss account, we can clearly see that company has
good financial position. From the year 2012-13 financial position of the company is growing up
& companies graph is continuously increasing. The last years financial data shows healthy
position of the company.
TASKS AND ACTIVITIES PERFORMED IN THE ORGANIZATION

Following are the list of activities which I had done into the organization.
Collected basic information about the organization.

Discussed about inventory management with purchase department.
Understand the organization structure from HR department’s head.
MY LEARNING FROM THE STUDY OF THE ORGANIZATION

Organizational Learning
Every student doing professional course needs to undertake summer internship training in his
respective field, which give us a chance to explore our skill and suit us in the work environment.
 The objective of the internship is to benefit both the students working as interns as well
as the company for which the students are working. The student gets to learn the basics of
their education. The internship period, also helps a student to judge himself, whether he
or she would be able to adjust in the corporate environment or not.
 The organization study at Shah PaperPlast Industries Ltd, Nadiad has given me to the
opportunity to gain valuable industry related experience that would allow me to expand
my career options.
31
Following content shows my leaning from the organizational study.
1.How to deal with the customers (calmly and efficiently).

2.Learnt about organizational culture and organizational study.
3.How to deal with employees and workers into the organization.
4.Documentation and filling of data.
5.Financial ratio analysis and their interpretation.
6.Little practical experience on accounting activities.
7.How to encourage employees for creative activity including problem solving.
8.Understand financial position of the organization and growth of the company.
9.How to maintain different document and financial data.
32
PART 2:- PROJECT STUDY
TOPIC OF THE STUDY

A study on Determinants of Capital Structure of Shah Paper Plast Industries ltd.
INTRODUCTION
To be more accurate, the term ‘capital structure’, or financial structure, or financial plan of a
company refers to the composition of the long-term sources of funds.
The term ‘leverage’ is also used to refer to the proportion of different long-term sources of funds
to the total capitalisation of the firm.
There are numerous factors, both qualitative and quantitative, including the subjective judgment,
of financial managers which conjointly determine a firm’s capital structure. We may now briefly
discuss the key factors governing a firm’s capital structure decisions.
The main factors are the following:
1. Profitability:
The key word in capital structure is leverage. It can be defined as the employment of an asset or
sources of funds for which the firm has to incur a fixed cost or pay a fixed sum (as the return per
period).
Operating v. Financial:
Leverage is of two types ‘operating’ and ‘financial’. The leverage associated with investment (or
acquisition of assets) activities is referred to as operating leverage, while leverage associated
with financing activities is called financial leverage. In general, the higher the level of (EBIT)
and the lower the chance of downward fluctuation the larger the amount of debt that can be
employed.
2. Liquidity:
The analysis of the cash flow ability of the firm to service fixed charges is of considerable
importance to carry out capital structure planning.
The Coverage Ratio:

In assessing the liquidity position of a firm in terms of its cash flow analysis, we use a ratio
called the coverage ratio. It is the ratio of fixed charges to net cash inflows. It measures the
coverage of fixed financial charges (interest plus repayment of principal, if any) to net cash
inflows.
33
In other words, it indicates the number of times the fixed financial requirements are covered by
the net cash inflows. The higher the coverage ratio the larger the amount of debt (and other
sources of funds carrying a fixed rate of interest) that a firm can use.
3. Control:
Another consideration in planning the types of funds to use is the attitude of existing
management towards control. Lenders have no direct voice in the management of a company. In
most cases, the power to choose the management team rests with the equity holders.
Accordingly, if the main objective of management is to maintain control, they may like to have a
greater weight-age for debt and preference share in additional capital requirements. This is so
because by obtaining funds through them the management sacrifices little or no control.
4. Competitive Parity:
Another factor determining a company’s optimal capital structure is the debt-equity ratios of
other companies belonging to the same industry and facing a similar business risk. The rationale
here is that the debt-equity ratios appropriate for other firms in a similar line of business should
be appropriate for the company (under consideration) as well. The use of industry standards
provides a benchmark.
If a firm is deviating from its optimal capital structure, the market will give a red signal to the
management that there is something wrong in the company’s debt-equity mix. If the firm is out
of line, it should identify the causes of such deviation and be satisfied that the reasons are
genuine
5. The Nature of Industry:

The fifth determinant of a firm’s optimal capital structure is the nature of the industry to which it
belongs. The nature of industry largely determines the degree of financial leverage the firm can
carry safely without any risk of bankruptcy. If an industry’s sales are subject to
periodic fluctuations, the firm should have a low degree of financial leverage. Such firms will
always have high operating leverage.
6. Timing of Issue:
The question of timing of issue is also of considerable importance in determining a company’s
capital structure. It is often possible to make substantial savings through proper timing of
security issues. It is in the Tightness of things to make public offering at a time when the state of
the economy as well as the capital market is ideal for providing the required funds.
However, timing should not be the only consideration. “Timing analysis, for example, may
suggest use of debt. But the company cannot go in for debt if its existing capital structure is
already overloaded with debt.
34
7. Characteristics of the Company:
The nature and characteristics of the company in terms of its size, capital structure and goodwill
(credit-standing) also play a very important role in determining the share of old securities and
equity in its capital structure.
In general, firms enjoying a higher credit-standing among investors and lenders in the capital
market are in a better position to get funds from their choicest sources. If the credit-standing is
poor, the firm has limited choice regarding acquisition of funds.
Separate Legal Entity:

Under Incorporation law, a company becomes a separate legal entity as compared to its
members. The company is distinct and different from its members in law. It has its own seal and
its own name, its assets and liabilities are separate and distinct from those of its members. It is
capable of owning property, incurring debt, and borrowing money, employing people, having a
bank account, entering into contracts and suing and being sued separately.
Limited Liability:
The liability of the members of the company is limited to contribution to the assets of the
company upto the face value of shares held by him. A member is liable to pay only the uncalled
money due on shares held by him. If the assets of the firm are not sufficient to pay the liabilities
of the firm, the creditors can force the partners to make good the deficit from their personal
assets. This cannot be done in the case of a company once the members have paid all their dues
towards the shares held by them in the company.
Perpetual Succession:
A company does not cease to exist unless it is specifically wound up or the task for which it was
formed has been completed. Membership of a company may keep on changing from time to time
but that does not affect life of the company. Insolvency or Death of member does not affect the
existence of the company.
Separate Property:
A company is a distinct legal entity. The company's property is its own. A member cannot claim
to be owner of the company's property during the existence of the company.
Transferability of Shares:
Shares in a company are freely transferable, subject to certain conditions, such that no share-
holder is permanently or necessarily wedded to a company. When a member transfers his shares
to another person, the transferee steps into the shoes of the transferor and acquires all the rights
of the transferor in respect of those shares.
35
Common Seal:
A company is an artificial person and does not have a physical presence. Thus, it acts through its
Board of Directors for carrying out its activities and entering into various agreements. Such
contracts must be under the seal of the company. The common seal is the official signature of the
company. The name of the company must be engraved on the common seal. Any document not
bearing the seal of the company may not be accepted as authentic and may not have any legal
force.
Capacity to sue and being sued:

A company can sue or be sued in its own name as distinct from its members.
Separate Management:
A company is administered and managed by its managerial personnel i.e. the Board of Directors.
The shareholders are simply the holders of the shares in the company and need not be necessarily
the managers of the company.
One Share-One Vote:

The principle of voting in a company is one share-one vote i.e. if a person has 10 shares, he has
10 votes in the company. This is in direct distinction to the voting principle of a co-operative
society where the "One Member - One Vote" principle applies i.e. irrespective of the number of
shares held, one member has only one vote.
36
LITERATURE REVIEW
(1).This theory also has been suggested by Durand David (1952)1, but is exactly opposite to Net
Income Theory (NI). According to this theory, the overall cost of capital remains constant to
various levels of debt in the Capital Structure. Anincrease in the level of debt increases the level
of risk for the shareholders and they start expecting higher returns to compensate the higher
risks. The increase in the equity capitalization rate offsets the advantage of cheaper debt and thus
the overall cost of capital remains the same. This suggests that the Capital Structure decision of a
firm is irrelevant and the firm cannot change the overall cost of capital by changing the mix of
debt and equity. The overall value ofthe firm is independent ofits Capital Structure decision.
(2).This theory is similar to Net Operating Income Theory. According to Modigliani & Miller
(1958)2, Capital Structure of a firm does not determine its market value implying that the Capital
Structure decision is irrelevant. The cost of capital and value offirm are constant for all degrees
ofleverage. The cost of equity rises exactly to offset the advantage ofreduced cost of debt and
thus value offirm remains constant and unaffected by its Capital Structure. With no taxes, the cut
offrate for investment purpose is completely unaffected by the Capital Structure and will be
equal to its weighted average cost of capital. This theory is based on assumptions of a perfect
capital market, no transaction costs, homogeneous risk class i.e. all investors have homogeneous
expectations, firms can be grouped into equivalent risk classes on the basis of risk in term of
expected earnings, no corporate taxes and dividend payout ratio expected to be hundred percent.
(3).Modigliani and Miller (1963)3 revised their earlier theory by considering the implication of
corporate taxes on the Capital Structure. They recognized that on account ofthe tax savings
generated due to debt, the value of a levered firm will be higher than unlevered firm. With
introducing debt in the Capital Structure, the cost of equity will rise but at a lesser rate than what
it have been in absence of taxes. The optimal Capital Structure will be the one at which the
firm’s value is maximum and 18 the overall cost of capital is minimum. This can be achieved
with hundred percent debt financing. This theory is similar to Net Income Theory.
(4).Soloman Ezra (1963)4 suggested that a firm can reduce the overall cost of capital and
increase the total value of firm by increasing the proportion of debt funds in its Capital Structure,
but only up to a certain level. Any increase in debt beyond a particular point may result in an
increase in cost of equity. Through ajudicious use of debt and equity mix, a firm can reduce its
overall cost of capital and increase the value of firm. Soloman Ezra (1963)4 summarized the
result of change in the debt equity mix on the total value of firm.
(5).Durand David (1952)1, who advocated this theory suggested that a firm can increase the
value of the firm and reduce the overall cost of capital by increasing the proportion of debt in its
Capital Structure to the maximum possible extent. The Net Income Theory is based on the
assumptions that there are no taxes, the cost of debt is cheaper than the cost of equity and the use
of debt does not change the risk perception of investors. By increasing the proportion of debt
funds in its Capital Structure, a firm can reduce its overall cost of capital, leading to an increase
in value of firm. The optimum Capital Structure of a firm will be attained when the firm is
financed with 100% debt and at that point the value of the firm will be maximum and overall
cost of capital minimum.
37
OVERVIEW OF THE STUDY
BACKGROUND OF THE STUDY
Capital structure is the proportion of debt and equity financing of a firm. It indicates how the
company operation of a business is financed. A firm with significantly more debt than equity is
regarded as highly leveraged. Vice versa, a firm with significantly more equity than debt is
considered to be low leveraged. Debt finance is usually cheaper and preferred than equity
finance. This is because debt finance is safer from a debt holder’s point of view. Interest has to
be paid before dividend. In the incident of liquidation, debt finance is paid before equity. This
makes debt a safer investment than equity and hence, debt holders demand a lower rate or return
than equity investors. Debt interest is also corporation tax deductible (unlike equity dividends),
making it even cheaper to a tax paying company. Arrangement costs are generally lower on debt
finance than equity finance and likewise, unlike equity arrangement costs, they are also tax
deductible. Although debt is attractive because of its cheap costs, its disadvantage is that interest
has to be paid. If it is over-borrowed, the company may not be able to obligate the interest and
principal payments and thus, liquidation may follow. Therefore, there are bankruptcy costs to be
borne by the company if the company uses debt financing. The level of a company’s borrowings
is usually measured by the gearing ratio (the ratio of debt finance to equity finance) and
companies must make sure that this does not become too high. Comparisons with other
companies in the industry or with the company’s recent history are useful here. 2 Contrary to
debt financing, equity financing is capital provided by the shareholders. It does not have to pay
fixed interest to the shareholders but only pay dividends to shareholders when the company
makes profit from the business. In the event of liquidation, the shareholders will only be paid
after settlement to all debt holders have been made. In this condition, equity capital is riskier for
the investors but constitute a lower financial risk to company because it is not obligated to pay
dividends to its shareholders when the company is not profitable. However, this comes with
price. Firstly, large issues of equity could lead to dilution of EPS if profits from new investments
are not immediate. This may disappoint shareholders and lead to falling share price. Secondly, a
large issue of shares to new equity investors could change the voting control of a business. If the
founding owners hold over 50% of the equity, they may be reluctant to sell new shares to outside
investors, as their voting control at the AGM may be lost. Moreover, if the company raises
equity finance in a period of falling share prices, the price received will be too low and this will
reduce the wealth of the existing owners. In view of the cost and risk involved in debt and equity
financing respectively, it is crucial for the managers to choose a suitable capital structure policy
for their company, as the financial leverage is one of important factors that will impact the
performance of the company. Some empirical studies in Malaysia (Wong, 2004; Suto, 2003)
showed that the capital structure of the firm is negatively related to the performance of
companies in different industries in Malaysia. These results imply to us that proper management
of the capital structure will generate better returns to the company. Therefore, it will be valuable
to managers to know the factors that may impact the capital structure of a firm so that they can
control the determinants of the capital structure to maximize firm’s profit
38
OBJECTIVES OF THE STUDY
To study about determinants of capital structure and its impact on profitability of shah paper
Plast Industries ltd.
To examine benefits and opportunities of capital structure on paperplast industries ltd.
Identify factors considered by company before making financing decisions.
See how these factors affect the value.
Study the effect of capital structure on the profitability of the organization.
See how capital structure reflects the future plans of the organization.
VARIABLE STRUCTURE
PROFITABILITY
OF FIRM SAVINGS
ESTIMATED
GROWTH
GOODS AND
TAX CREDIT
SERVICE TAX
HYPOTHESIS
For the present study the researcher has formulated hypothesis Null hypothesis and Alternative
hypothesiswere tested with the help of statistical tools. The statement of hypothesis were as
under:
H0: There is no significant impact of growth on the savings of shah Paper Plast industries lt.
H1: There is significant impact of growth on the savings of shah Paper Plast industries ltd.
39
NULL HYPOTHESIS (H0)
(1) There will be no significant difference in Current Ratio in Shah Paper Plast Industries
Limited.
(2) There will be no significant difference in Quick Rtatio in Shah Paper Plast Industries
Limited.
(3) There will be no significant difference in Return on shareholder’s fund Ratio in Shah Paper
Plast Industries limited.
(4) There will be no significant difference in Debt to Equity Ratio in Shah Paper Plast
Industries limited.
(5) There will be no significant difference in Proprietary Ratio in Shah Paper Plast Industries
limited.
(6) There will be no significant difference in Net Profit Ratio in Shah Paper Plast Industries
limited.
(7) There will be no significant difference in Interest Coverage Ratio in Shah Paper Plast
Industries limited.
(8) There will be no significant difference in The Return On Assets Ratio in Shah Paper Plast
Industries limited.
(9) There will be no significant difference in Inventory Turnover Ratio in Shah Paper Plast
Industries limited.
(10) There will be no significant difference in Return on Capital Employed Ratio in Shah Paper
(11) There will be no significant difference in Earning per share Ratio in Shah Paper Plast
Industries limited.
(12) There will be no significant difference in Assets turn over Ratio in Shah Paper Plast
Industries limited.
40
ALTERNATIVE HYPOTHESIS (H1)
(1) There will be no significant difference in Current Ratio in Shah Paper Plast Industries
limited.
(2) There will be no significant difference in Quick Rtatio in Shah Paper Plast Industries
Limited.
(3) There will be no significant difference in Return on shareholder’s fund Ratio in Shah Paper
(4) There will be no significant difference in Debt to Equity Ratio in Shah Paper Plast
Industries limited.
(5) There will be no significant difference in Proprietary Ratio in Shah Paper Plast Industries
limited.
(6) There will be no significant difference in Net Profit Ratio in Shah Paper Plast Industries
limited.
(7) There will be no significant difference in Interest Coverage Ratio in Shah Paper Plast
Industries limited.
(8) There will be no significant difference in The Return On Assets Ratio in Shah Paper Plast
Industries limited.
(9) There will be no significant difference in Inventory Turnover Ratio in Shah Paper Plast
Industries limited.
(10) There will be no significant difference in Return on Capital Employed Ratio in Shah Paper
(11) There will be no significant difference in Earning per share Ratio in Shah Paper Plast
Industries limited.
(12) There will be no significant difference in Assets turn over Ratio in Shah Paper Plast
Industries limited.
41
RESEARCH QUESTION
 What is the effect of capital structure of shah paperplast industries ltd?

 What are the advantages shah paperplast industries ltd have from the implementation of
capital structure ?
 What type of challenges shah paperplast industries ltd have to face due to determinants of
capital structure ?
RESEARCH METHODOLOGY
Research has followed scientific approach to design the research methodology for
investigation. For this study researcher has used secondary data as a source of
information.
 Research design: - this research is descriptive in nature.

 Type of data: - in this research secondary data is used.
 Source of data: - the secondary data is collected from various sources like records of
company, journals, articles, and government websites and also from the previous research
papers.
 analysis tool:- SPSS software.

 Area of the study: - the research is conducted at Nadiad in Shah paper Plast industries ltd.
SCOPE OF THE STUDY
The scope of the study is very wide. This study is analyzing the determinants of capital structure
on industry and how it affects profitability of the industry. It also includes the opportunities and
the sort of challenges on Shah PaperPlast industries ltd.
42
UTILIZATION OF INPUT TAX CREDIT (ITC)
INPUT
OUTPUT
INPUT INPUT
OUTPUT OUTPUT
Usage of Credit & Payment

• ITC Credit can be used only for payment of Output Tax.
• Tax to be paid on or before the last date on which one is required to furnish such return.
Input tax credit is nothing but credit of the Input tax. The next question that arises is what is input
tax? Here also as the name suggests it is tax on inputs.What are inputs for a business?
The inputs for a business can be divided into three parts:
Input Services:
Input Services are services which are used or intended to be used in the course or furtherance of
business. CGST Act has given a very broad based definition for Input Service. Any service used in
the course or furtherance of business, would be classified as Input Service.
Capital Goods:
The definition of Capital Goods is very broad and contains only two conditions which are as
follows:Capital Goods are goods which have been capitalized in the books of account of the person
claiming the credit.Capital goods are goods which are used or intended to be used in the course or
furtherance of business.
Input Goods:
Input means any goods other than capital goods and which are used or intended to be used in the
course or furtherance of business. It is again a very broad based definition and any goods used in the
43
course of furtherance of business, would be classified as Inputs.A business uses Input Services,
Capital Goods and Input Goods other than Capital Goods for adding value to the goods or services
supplied.Thus, credit of the taxes paid on receipt of Input Services, Capital Goods and Input Goods
other than Capital Goods forms the basic foundation upon which the credit structure works.There
needs to be a seamless flow of the Input Tax Credit from one business to another with respect to Input
Services, Capital Goods and Input Goods other than Capital Goods, used or intended to be used in the
course or furtherance of business.
FINDINGS
in the study of Determinants of Capital Structure the study comes out with the summary of the
whole research work. The findings of the research work also discussed and on the basis of
findings, tries to some valuable suggestion also.
This study gives its emerging conclusion based on the analysis carried out and points out the
variation if any from the literature. It also gives concrete suggestions for enhancing profitability
and liquidity for financial soundless, for cost control and liquidity position.
Answer for question 1:-

As the interpretations of the chart shows, the total tax credit that the company is getting before
implementation of capital structure is and is increased by so, there is increase in tax credit
of shah paperplast industries ltd.
Answer for question 2:-

Advantages of determinants of capital structure implementation to Shah PaperPlast industries ltd.
The existing taxations have impelled the rise in the production costs of manufacturing vital
paperplast, which has resulted in the price-hike of the end products and made such goods
unaffordable for gross consumption.
Answer for question 3:
The downside of capital structure implementation
Among all the levies merged, the Basic Customs Duty will be the only taxation exempted by the
Baill and will continue to be charged capital structure implementation. While there aren’t many
drawbacks of enacting the paperplast industry, there are a few aspects that need to be
premeditated prior to the Bill implementation.
44
CONCLUSION AND LIMITATION
Conclusion
The Shah paperplast industries ltd has positive impact of capital structure they have certain
advantages like unification of taxes, reduction in production cost, and ancillary advantages. From
capital implementation there is an increase in gaining tax credit, the growth of company and it
leads to the increase in profitability of shah paperplast industries ltd.
LIMITATION OF THE STUDY
 Due to the time constraints the research is limited to descriptive study.

 The data is collected through the secondary research only from journals, articles and from
government websites.
 The study is restricted to the availability of data from various dotcoms and previous
research studies.
 Study is undertaken by individual researcher therefore all the limitation of the individual
researcher exists here also.
 It is secondary data based study, so the limitation of the secondary data reveals withthis
study.
45

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SUMMER INTERNSHIP/ PROJECT WORK

SHAH PAPERPLAST INDUSTRIES LTD

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

M.B.A. FIRST YEAR

UNDER THE GUIDANCE OF

MR. BINIT PATEL

Place: Changa (Signature)

Investment In Various Assets ................................................................................................ 19

Delegation of Power .............................................................................................................. 22

PART - I – ORGANISATIONAL PROFILE

Introduction (Company Profile)

Name SHAH PAPERPLAST INDUSTRIES LTD

Address C-3/3 – 3/4, GIDC ESTATE, MILL ROAD,

Telephone Number 02682568888

Started From 2006

Main Product Supplier in India who can supply Non-Bleeding

Company Category Company limited by shares

Company sub category Non-government company

Class of company Public

KAVIT NILESH SHAH Director

CHANDRAVADAN CHIMANLAL SHAH Wholetime Director

HANSIKABEN CHANDRAVADAN SHAH Wholetime Director

NILESH CHANDRAVADAN SHAH Managing Director

SHITALBEN NILESHBHAI SHAH Wholetime Director

PRODUCT OF THE COMPANY

PLASTIC PRODUCT PAPER PRODUCT

Research And Development

Present products of the company

GLITTER TISSUE PAPER

(1) SURBHI PACKAGING: Subhash Nagar, Nadiad, Gujarat 387002

MARKETING STRATEGY SHAH PAPER PLAST INDUSTRIES LTD.

4 Marketing strategies of Shah Paperplast Industries ltd.

There are four phases, 1) Introduction, 2) Growth, 3) Maturity, 4) Decline

 Decline - Sales start to slowdown. Fewer banks offer the product.

Colour additives in paper products. An application as a color additive in paper products

SUPPLY CHAIN AND LOGISTICS

FIRM TAKES CONVERSION

RAW MATERIAL PRODUCT REACH MIL-4

HUMAN RESOURCES MANAGEMENT

 Training development specialist

The Agenda of Today’s Human Resource Management Team

Define and align organizational purpose:

Create organizational alignment:

Accurately measure the same things:

These are the basics of a staffing plan of shah paperplast

 Fulfillment of the Objective

FINANCE AND ACCOUNTING

PARTICULERS AS AT 31-3-2016 AS AT 31-3-2015

National saving certificate 3500 3500

Share of green Environment co- operative. 1000 1000

TOTAL 4500 4500

2)Current Investment 55000000 -

 Long term borrowing: Unsecured loan from following

 Sources of long term finance: Advance income tax and TDS.

2.Short Term Financial Management

 Short term borrowing:

 Sources of short term finance: All others unsecured prepaid expense.

WORKING CAPITAL MANAGEMENT

Working capital management refers to a company's managerial accounting strategy designed to

 Income received in advance- Income received in advance is seen as a liability because it

 Advances received from customers - A liability account used to record an amount

(2) Long term sources of working capital:

  SUMMER INTERNSHIP/ PROJECT WORK

  CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

 Fulfillment of the Objective 