A report on the industrial visit to Gopala Polyplast Ltd.

Submitted by, Viral J. Bhogaita Roll No. 120, SY I

Contents Page
Introduction & Industry Analysis ................................................................................................ 3 History of the Company .......................................................................................................... 7 Organizational Design ............................................................................................................. 9 Operations ................................................................................................................................ 12 Marketing ................................................................................................................................. 26 Human Resource....................................................................................................................... 31 Finance ..................................................................................................................................... 37 Capital Structure ................................................................................................................... 38 Capital Structure of Gopala Polyplast Ltd.......................................................................... 39 Computation of Ratios....................................................................................................... 42 Corporate Social Responsibilities .............................................................................................. 45 Conclusion ................................................................................................................................ 46 Bibliography ............................................................................................................................. 47

Introduction & Industry Analysis

A cloth formed by weaving is called a woven fabric. It stretches only in the direction of warp and weft unless the threads are elastic. One of the most widely used and economical garment brand identifiers today is the woven labels.

HDPE (High Density polyethylene) is a plastic polymer of a higher density of a lower degree of branching and thus is stronger. It is mainly used in packaging of products like milk jugs, detergent bottles, margarine tubs, garbage containers and water pipes. One third of all toys are manufactured from HDPE. The global HDPE consumption has reached a volume of more than 30 million tons. (Wikipedia)

The global polyethylene (PE) demand growth has been slowing down because the 2008 financial crisis has weakened demand growth for consumer products, a key application market for PE. China has a significant impact on the global PE trade, as importers worldwide tend to stay on the sidelines when Chinese import demand is weak. Increased competition in Asia has prompted many PE producers to develop markets in Africa and South America.

PP (Polypropylene) is a thermoplastic polymer used in a wide variety of applications including packaging, textiles like ropes, thermal underwear and carpets, polymer banknotes, automotive components, loudspeakers, laboratory equipments, reusable containers of various types, stationery and plastic parts.

The global polypropylene (PP) trade is changing rapidly. North America is expected to become a net importer of PP in the next decade, because the increased use of lighter feedstock has created propylene shortages in North and South America. High naphtha feedstock cost has made European PP export uncompetitive, and weak demand tends to drive re-exports from Asia to Eastern Europe.

The Plastics Industry in India has made significant achievements ever since it made a modest but promising beginning by commencing production of Polystyrene in 1957. The chronology of manufacture of polymers in India is summarized as under:- 1957-Polystyrene - 1959-LDPE - 1961-PVC - 1968- HDPE - 1978-Polypropylene

The potential Indian market has motivated Indian entrepreneurs to acquire technical expertise, achieve high quality standards and build capacities in various facets of the booming plastic industry. Phenomenal developments in the plastic machinery sector coupled with matching developments in the petrochemical sector, both of which support the plastic processing sector, have facilitated the plastic processors to build capacities to service both the domestic market and the markets in the overseas.

The plastic processing sector comprises of over 30,000 units involved in producing a variety of items through injection molding, blow molding, extrusion and calendaring. The capacities built in most segments of this industry coupled with inherent capabilities have made it capable of servicing the overseas markets.

The economic reforms launched in India since 1991, have added further fillip to the Indian plastic industry. Joint ventures, foreign investments, easier access to technology from developed countries etc have opened up new vistas to further facilitate the growth of this industry. (ICIS)

History of the Company

Gopala Polyplast Ltd. is a listed Indian public company. It has its registered office in Mumbai and manufacturing units at Santej & Kadi in Gujarat and at Silvassa in D&NH. The company was incorporated on 11th June 1984 and obtained the certificate of commencement on 27th June 1984.

The company was initially set up to manufacture PP (Polypropylene) and PE (Polyethylene) Woven sacks at Kadi in Gujarat. Its installed manufacturing capacity then was 70000 bags per month. Now the company has three units with a combined manufacturing capacity of 130000 bags per month.

In 1993, the company diversified into textile industry by setting up a plant to manufacture Woven Jacquard labels for garments. The Woven Label division was started with a manufacturing capacity to manufacture 550 lacs pieces per annum which has now grown to 3000 lacs pieces per annum.

It initially set up a capacity of 489 TPA for manufacture of HDPE woven sacks at Kadi, Dist. Mehsana. Its management was at that time in the hands of the Ahmedabad based Kabra Group. However, due to delay in project implementation, inability to get proper spare parts for imported machines and intense competition, the Company started making losses.

The Somani and Khetawat Groups then took over the management of GPL from July 1st, 1988. GPL, under the new management, increased the turnover and profits by improving the capacity utilizations and increasing the capacity from 489 TPA to 648 TPA, turned the Company around.

Gopala Polyplast Ltd has also successfully implemented an expansion scheme raising the capacity of the tape plant from 648 TPA to 1296 TPA during the year 1991-92. This project was part financed by a rupee term loan from IDBI of Rs.90 lakh under its Equipment Finance Scheme. This HDPE expansion went into commercial production in October, 1992.

Today, Gopala Polyplast Ltd is one of the top ten players of the country in both the divisions.

Organizational Design

Organizational Structure

M.D.

V.P. GM Weaving Incharge Store Supervisor Store Bobbin Sup. Bobbin Helper AGM Weaving Dispatch Sup Looms Operator DGM HR & Admin Coordinator Driver & Peon Security DGM Finishing Mgr. Finishing Sup. Finishing

DGM Plant Incharge Plant Operator Plant

GM Q.C.

Mgr. Elect

Mgr. Excise

Q. C. Inch

Gas Plant

Electrician

Excise Ass.

Q. C. Sup

Helper

Q. C. Helper

Top Management

The board of directors (B.O.D.) is made up of industrialists and professionals. Name Manoj Somani Manish Somani Mahendra Somani Malay Dalal Jugal Kishore Khetawat Chirag Parikh Balkrishna Mittle Anal Desai Designation Managing Director Executive Director Chairman Director Director Compliance Officer Independent Director Company Secretary

Operations

Plant Location Registered Address:485, Santej Vadasar Road, Santej, Taluka Kalol Gandhinagar Gujarat 382721 Tel:-02764-286305, 286654 Fax: - 02764-286660 Email:-hdpeaccounts@gopalapolyplast.com Website:-http://www.gopalapolyplast.com Group:-Somani & Khetawal Group

Corporate Office:158/164, Mumbai-400002 Maharashtra- India Phone:-022-22400260 Fax:-22068042 Email:-hdpeaccounts@gopalapolyplast.com

Infrastructure Woven sacks dept. The Company is having the best infrastructure in terms of Factory Building and Plant & Machinery. At its Santej works the Company is having Three Tape extrusion plants from LOHIA STARLINGER which are supplemented with 190 Circular Weaving Looms, again from LOHIA and other Quality Control Equipments. The Kadi & Silvassa works houses the Finishing division with 7 Automatic Cutting & Printing Machines, 100 Stitching Machines & 6 Bale Press Machines. The Company is accredited with ISO: 9001 certification from ISOQAR for its Woven Sacks Division

Label dept. GOPALA, has a state of art imported Plant for manufacturing Labels. The 13 Jacquard Looms are imported from Switzerland with supporting Mu CAD studio and pattern creating & weave software supplied by the Plant Manufacturer itself. GOPALA also has machines for value added functions like Cut & Fold, Filled Label machine, Ultrasonic Laser cutting machine, Laser Die cut machine which helps the Company to cater to the add on requirement of Garment manufacturers.  

Product Portfolio Pp Woven Sacks Woven Sacks are the best and the most cost effective packaging solution for Industries like Cement, fertilizer, sugar, Chemicals, food grains etc. There are various types of bags made out of PP/ HDPE and with or without lamination. Apart from it there are Jumbo bags which are used to pack bulk quantities. Off late Woven fabric which is the first stage of Woven sacks, is a preferred medium for bale wrapping and rain protection in the form of Tarpaulin.

Woven sacks find applications in various industries but GOPALA is manufacturing sacks mainly for Cement Industry and has created a niche market for itself among the Blue Chip cement companies of India. Today GOPALA is the largest manufacturer of Cement bags in the Country. Apart from it GOPALA is also associated with leading Food-grain exporters in the Country for their packaging requirement and supplying to them since last 4 years. GOPALA has also started exports since last 2 years and gradually enhancing its customer base in the overseas market. The Company is having the best infrastructure in terms of Factory Building and Plant & Machinery. At its Santej works the Company is having Three Tape extrusion plants which are supplemented with 170 Circular Weaving Looms and other Quality Control Equipments. The Kadi & Santej works houses the Finishing division with Automatic Cutting & Printing Machines and Stitching Machines. Today majority of woven sacks manufacturers are into different products from the above, however GOPALA has been solely into manufacturing of Woven sacks for Cement packaging. This specialization has helped the Company to get associated with the best of the Cement manufacturers in the Country with some of the Companies sourcing their packaging requirement from the Company for the last 10 years and more.

Woven Jacquard Labels The company is having its presence at all the major Garment manufacturing locations in the country. It has direct marketing offices at Mumbai, Chennai, Gurgaon, Tirpur, Bangalore and Ahmedabad. It also has an agent set up at Kolkata, Ludhiana and Indore. The company is also getting into buying houses for nomination as supplier of labels to various overseas garment companies who are sourcing their products from Asia and Africa.

Material & Inventory Management Inventory management must tie together the following objectives, to ensure that there is continuity between functions: Companys Strategic Goals Sales Forecasting Sales & Operations Planning Production & Materials Requirement Planning. Inventory Management must be designed to meet the dictates of market place and support the companys Strategic Plan. The many changes in the market demand, new opportunities due to worldwide marketing, global sourcing of materials and new manufacturing technology means many companies need to change their Inventory Management approach and change the process for Inventory Control.

Inventory Management system provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and communicate with customers. Inventory Management does not make decisions or manage operations; they provide the information to managers who make more accurate and timely decisions to manage their operations.

Inventory is defined as the blocked Working Capital of an organization in the form of materials. As this is the blocked Working Capital of organization, ideally it should be zero. But we are maintaining Inventory. This Inventory is maintained to take care of fluctuations in demand and lead time. In some cases it is maintained to take care of increasing price tendency of commodities or rebate in bulk buying.

Traditional Supply Chain solutions such as Materials Requirement Planning, Inventory Control, typically focuses on implementing more rapid and efficient systems to reduce the cost of communicating information between and across the Inventory links in the SCM.COM focuses in optimizing the total investment of materials cost and workload for every Inventory item throughout the chain from procurement of raw materials to finished goods Inventory. Optimization means providing a balance of supply to meet the demand at a minimum total cost , Inventory level and workload to meet customers service goal for each items in the link of Inventory Chain .

It is strategic in the sense that top management sets goals. These include deployment strategies (Push versus Pull), control policies, the determination of the optimal levels of order quantities and reorder points and setting safety stock levels. These levels are critical, since they are primary determinants of customer service levels.

Keeping in view all concerns, the latest concept of Vendor Managed Inventory is used to optimize the Inventory. We are entering into Vendor Managed Inventory, Annual Rate Contracts with manufacturers or their authorized dealers, who maintain Inventory on our behalf and supply the items as and when required.

VMI reduces stock-outs and optimize inventory in supply chain. Some features of VMI include: Shortening of Supply Chain Centralized Forecasting Frequent communication of inventory, stock-outs and planned promotions Trucks are filled in a prioritized order, e.g. items that are expected to stock out have top priority then items that are furthest below targeted stock levels then advance shipments of promotional items

Despite the many changes that companies go through, the basic principles of Inventory Management and Inventory Control remain the same. Some of the new approaches and techniques are wrapped in new terminology, but the underlying principles for accomplishing good Inventory Management and Inventory activities have not changed.

The Inventory Management system and the Inventory Control Process provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities, and communicate with customers. Inventory Management and the activities of Inventory Control do not make decisions or manage operations; they provide the information to Managers who make more accurate and timely decisions to manage their operations.

The basic building blocks for the Inventory Management system and Inventory Control activities are:

Sales Forecasting or Demand Management Sales and Operations Planning Production Planning Material Requirements Planning Inventory Reduction

The emphases on each area will vary depending on the company and how it operates, and what requirements are placed on it due to market demands. Each of the areas above will need to be addressed in some form or another to have a successful program of Inventory Management and Inventory Control.

Inventory is usually a distributors largest asset. But many distributors arent satisfied with the contribution inventory makes towards the overall success of their business:

The wrong quantities of the wrong items are often found on warehouse shelves. Even though there may be a lot of surplus inventory and dead stock in their warehouse(s), backorders and customer lost sales are common. The material a distributor has committed to stock isnt available when customers request it. Computer inventory records are not accurate. Inventory balance information in the distributors expensive computer system does not accurately reflect what is available for sale in the warehouse. The return on investment is not satisfactory. The companys profits, considering its substantial investment in inventory, are far less than what could be earned if the money were invested elsewhere.

Production Process Gopala Polyplast Ltd. is under manufacturing of woven sacks. The Process Is Divided Into Three Phases:First phase: y PP & HDPE are obtained from Propane & Naphtha a byproduct of crude oil.

PP granules are the main raw materials used for production of woven sacks, 30 Sg is the Std. of granules used for production.

Granules are heated at a temp. Of 200 Celsius, a roller converts them into flat films.

In next stage the film is stretched where on average 1 m of film stretches itself to 6 m.

The raw materials such as Granules are kept in a box type tank which will rotate and suction through motor and this is kept above the box. The box has a holding capacity of 100-150kg.

If the bag is to be made of different types of colors then all the granules are to be mixed and melted at 225-272 degrees. It takes almost 35-40 minutes to melt the granules.

Then after the melted granules are cooled in a water tank in a sheet form. Here the size of the sheet is not fixed but normally the size is of 960mm. Now this sheet is cut into 120 threads.

The threads once cut are weaved which adds strength to the sheets. Here the hot air is being blown at 120-150 degree.

Second phase:

y y

In this phase the bobbin slips are kept horizontally and vertically. Circular loom is the machine in which 576 external bobbin slips and 6 internal bobbin slips are weaved and stitch into fabrics automatically and the products goes upwards and then sideways and then rolled tightly in a hard paper roll.

This process is cross moving which works in horizontal and vertical form to make a fabric roll.

In this industry there are in all looms. Generally the industry does not allow the loom to get stopped because it creates wastage when the loom is stopped.

Third phase:

Here after the fabric rolls are formed the fabric rolls are cut into different sizes according to the order.

As for e.g., If it is a CEMENT bag then the bag is to be cut 470mm in width and 680mm in length.

In order to reduce the work load of the employees of the company, the company also has an automatic machine which works with just one person. This machine has its own reading and counting system. This machine works automatically by just entering the size and quantity of the bags to be produced. Then after when the cutting is done according to size entered it is stitched from one side and then accumulated at the end.

For e.g., there is 220kg roll having 470mm width and 755mm length, then the per day production is 3500 bags and the monthly production is 105000 bags.

After the bags are stitched and kept in a line this bags are been packed has a final product.

The company is a leading manufacturer of computerized woven labels as well as an established supplier of range of garment accessories to our regular clients.

They are a multiproduct, Public Limited Company with annual turnover of about 130 Cr., situated at Ahmedabad. Our Woven Label Division commenced its business in 1994. The salient features of this division are mentioned hereunder for your kind perusal and favorable consideration: Plant & Machineries y 12 nos. Flexible Rapier Weaving Machines equipped with electronic jacquard from M/s. Jacob-Mueller, Switzerland. y y y 3 nos. MuCAD designing systems specially used for jacquard woven labels. 1 no. Ultrasonic slitting machine. 3 nos. of cut fold machines, two of M/s. Kong River, Hong Kong and one of M/s. Willy, Italy. y y y 1 no. Laser cutting machine of M/s. Viable, USA. 1 no. of label finishing machine. 4 nos. of label stuffing devices.

Label Specifications y y y y y y Woven from 100% polyester filaments Slit edges on looms Ultrasonic edges off loom cutting Taffeta and Satin labels Width ranging from 10 mm to 200 mm Up to 12 different weft colors incl. ground color.

Product Formats y y y y y Continuous tape in Roll Form. Cut Seal. Cut Fold in End fold, Centerfold and Mitre fold. Filled / Stuffed labels Die-cut / Laser cut labels

Ready-to stick labels (backside double adhesive tape)

Manpower y Plant Operations are controlled by well qualified top level personnel GM (B.Text. MBA) , DGM (M.Text.) and Maintenance Manager (D.M.E.) supported by experienced HODs at PPC, Designing, Production, Yarn, Q.C., Packing and Dispatch. The operational staff members and workers too are well experienced about the intricacies of this product and process so as to generate BEST CUSTOMER SATISFACTION. Shades / Color y Current inventory of about 1800 different shades in wide range of deniers from 30 dens. up to 300 y Den. from reputed suppliers such as Valson, Welspun, Reliance, Global-Pacific, Tirupati, Proximity to expert, local dyers so as to get newly dyed shades with very short lead time enabling us to match almost all original labels of our clients Marketing Set-Up y In addition to direct interaction with important clients like Steve & Barrys, Welspun, RVL (India), Rolex, DPAM, Lasenza, Trinity etc. we have extensive network in India at Mumbai, Chennai, Bangalore, Tirupur, N.Delhi and Ahmedabad. This is managed by our V.P. Marketing with a team of dedicated Sales Executives and delivery boys at above branches. Production Capacity y Practically, they are producing about 250 million labels per annum on an average. Technically, our production capacity is 1632 billion INCH-PICKS per annum. Other Accessories y Apart from in-house production of woven labels, they are supplying to some our present clients other accessories for garments such as printed labels, Hang Tags.

 Quality Control y The company has ISO: 10000 certified company for their production process and they have recycled the wastage of their production. Company has mainly customers for cement bags like Ambuja, ABB, Birla and UltraTech cement. And they export their products in USA and Oman and in Middle East. y They have various customers for Woven labels like Walmart, Steven Mary and GAS, GAP and CNA etc. which shows the good quality and reputation of their products as well as the company. y The company has the Walmart Certificate which is very hard to get or receive for any company. Their criteria for receive this certification covers the small urinal facilities as well as their quality measures for higher extent. y They have not any warehouses to keep their inventory so they can't hold inventory for bigger time. So they mainly give the orders of raw-material before 2 days which mainly available from Reliance Industries, Jamnagar in short period of time and they make their inventory and finished goods as the customers demand receives. y The Company has set quality control measures at every stage in the production. At the tape manufacturing stage the Quality Supervisor checks for the Denier, Width, Tenacity and the elongation of the tape. At fabric stage there is constant checking of the weaving to look for any defective or punctured weaving, mesh size, width. Post weaving the fabric is tested for the strength with the help of the Tensile-testing machine and the weight of the fabric is tested with the help of the electronic weighing scale. In the finishing section the weight & length of the cut piece is checked. Thereafter the printing quality is inspected. Post stitching the bag is inspected for final Length and width, weight and strength as well as Valve size.

Marketing

The elements of the marketing mix are often referred to as the "Four P's":

y y

Product:-It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. Price:-The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. Place:-Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion:-It represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations.

More recently, three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix.

People - All people involved with consumption of a service are important. For example workers, management, consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular class of people for whom the product or service is made available.

y y

Process - Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product will reach the end user. Physical Evidence - The marketing strategy should include effectively communicating their satisfaction to potential customers. (Wikipedia)

Target customers

The company is presently manufacturing woven sacks for 1. Ambuja Cements Ltd 2. Grasim Industries Ltd 3. UltraTech Cements Ltd 4. JK Lakshmi Cements Ltd 5. Acc Ltd. 6. Birla Corp Ltd. 7. Binani Industries 8. Century Textiles 9. Shree Cement Ltd 10. Sanghi Industries Ltd 11. Dhampur Sugar Ltd 12. Dwarkesh Sugar Industries Ltd

Client Profile (Label Business)

The company is dealing with domestic consumers of reputed make across diverse location. Most of the major garment manufacturers are sourcing the labels from the company. The company is closely associated with export agencies and also directly supplying to customer of international repute. Gopala has nomination as supplier of woven labels to STEVE & BARRYS, a retail chain of garment stores in USA.

Competition Analysis
Market Capital (Rs. Cr.) 4520.16 985.45 950.57 524.61 4.54 13.73 958.25 Sales Turnover 462.95 821.89 2669.27 418.34 190.96 103.90 2345.97 Net Profit (Rs. Cr.) -42.10 90.14 590.62 44.75 0.48 0.61 273.03 Total Assets (Rs. Cr.) 2894.84 935.85 2125.24 1067.90 51.33 54.82 2237.53

Name Max India

Time Techno Jindal Polyfilm Essel Propack Gopala Polyplast Jumbo Bag Uflex

Share Price 170.85 46.90 220.35 33.50 2.08 16.40 132.70

Human Resource

Human resource is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR".

In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk.

Human resource managers seek to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the organizations ongoing and future business plans and requirements to maximize return on investment and secure future survival and success.

In ensuring such objectives are achieved, the human resource function is to implement an organization's human resource requirements effectively, taking into account federal, state and local labor laws and regulations; ethical business practices; and net cost, in a manner that maximizes, as far as possible, employee motivation, commitment and productivity. (Wikipedia)

Personnel Policies & Its Implementation

The human resource of any firm is considered as the driving force of that firm. Human resource is to a firm what blood is to a human body. For a manufacturing unit to work efficiently the most important factor is the workforce of that unit because the workforce determines the time that the unit takes for completion of the production process and the consequent timely dispatch to the ever waiting customers. Investment in the human resource is just the end of the beginning as maintaining the workforce is a task in itself for this firm engages into various activities of appraisal, good working conditions, incentives and promotion.

Gopala Polyplast Ltd does not generally engage in skilled labor as the task in the manufacturing process is rather simple for skilled workers to engage into. So, the hired workers are unskilled and work is given in shifts. The company in regard to the activities of employee benefits follows the given practices. 1. The general labor required in Gopala Polyplast Limited are the daily wagers, stitches, helpers and labor for the quality control department in woven labels segment. The labor is hired through the intermediary of a contractor which reduces the tasks of the HR Department. 2. The workers in Gopala Polyplasts Santej plant are daily wagers who have a twelve hour shift and the wages given to them vary from Rs. 250 to 300 per day which is drastically higher than the wages that daily wagers generally get while working at the construction site. Despite the fact that high wages are provided to the workers the Company observes a high labor turnover rate, but this is a case with every industry that requires unskilled labor for its daily operations. 3. No specific welfare programs are carried out by the firm directed towards the workers. There is canteen facility for the workers where lunch is available at a nominal rate of 21 furthermore all the workers of the organization are provided tea for twice a day which is provided free of cost.

4. The plant has been certified by Wal-Mart which compels it to follow certain procedure in regard to the sanitation and welfare of women on the plant. There are day care facilities for mothers working in the plant where they can keep their babies during the hours of their shifts.

Recruitment

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.

Applicant recruitment and employee selection form a major part of an organization's overall resourcing strategies, which identify and secure people needed for the organization to survive and succeed in the short- to medium-term. Recruitment activities need to be responsive to the increasingly competitive market to secure suitably qualified and capable recruits at all levels. To be effective, these initiatives need to include how and when to source the best recruits, internally or externally. Common to the success of either are: well-defined organizational structures with sound job design, robust task and person specification and versatile selection processes, reward, employment relations and human resource policies, underpinned by a commitment for strong employer branding and employee engagement and on boarding strategies.

Internal recruitment can provide the most cost-effective source for recruits if the potential of the existing pool of employees has been enhanced through training, development and other performance-enhancing activities such as performance appraisal, succession planning and development centres to review performance and assess employee development needs and promotional potential. (Wikipedia)

Gopala Polyplast Limited thrives on the workforce of unskilled labors, up to 1000 workers work in the Santej plant of the Company. The firm hires through an intermediary generally a contractor as majority of the workers are daily wagers not much effort is spent in the recruitment of workers as Company does not have any elaborate procedure for recruiting workers in its workforce.

As majority of workers are daily wagers the labor turnover rate is higher in comparison to other related firms.

Some organizations like Gopala Polyplast Limited prefer to utilize employer branding strategy and in-house recruitment instead of recruiting firms. The difference, a recruiting firm is always looking for talent whereas an internal department is focused on filling a single opening.

Training & Development

At the organizational level, a successful Human Resources Development program prepares the individual to undertake a higher level of work, "organized learning over a given period of time, to provide the possibility of performance change". In these settings, Human Resources Development is the framework that focuses on the organization's competencies at the first stage, training, and then developing the employee, through education, to satisfy the organization's long-term needs and the individual's career goals and employee value to their present and future employers. Human Resources Development can be defined simply as developing the most important section of any business, its human resource, by attaining or upgrading employee skills and attitudes at all levels to maximize enterprise effectiveness. Individual education and development is a tool and a means to an end, not the end goal itself".

In the field of human resource management, training and development is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. Some of the ways a Company having higher ratio of unskilled labor can indulge in training in the following ways: y y y y y Develop workers to undertake higher grade tasks Provide the conventional training of new and young workers Raise efficiency and standards of performance Meet legislative requirements Inform people

Gopala Polyplast Limited does not specifically indulge in the training and development of workers there is not even any formal plans for training the employees. I think the Company here has a flaw in its system as it is not indulging much in the practices of training the top managerial workforce consists of experienced and dedicated staff which does not demand any formal training even in that segment.

Finance

Capital Structure

The types of securities to be issued and proportionate amounts that make up the capitalization are known as capital structure or financial structure. Capital structure refers to the proportion of different kinds of securities issued by a company to raise long-term finance. Thus capital structure denotes:

(1) The types of securities issued (equity shares, preference shares and debentures), and (2) The relative proportion of each type of security.

In other words, capital structure represents the proportion of equity capital and dept capital used for financing the operations of a business. Proper balance must be obtained in the following securities or sources of finance to maximize the wealth of the equity shareholders of the company: (a) Equality shares, (b) Preference shares, and (c) Debentures

A sound capital structure should possess the following features: (1) Maximum returns (2) Less risky (3) Flexibility (4) Economy (5) Dynamic (Article Base)

Capital Structure of Gopala Polyplast Ltd

(In crore Rs.) Sources Of Funds Total Share Capital Equity Share Capital Reserves Revaluation Reserves Unsecured Loans Total Debt Total Liabilities March08 15.52 11.02 1.63 0 0 42.11 59.26 March09 15.52 11.02 -5.11 0 2 46.17 56.58 March10 15.52 11.02 -9.76 0 3.55 47.63 53.39 March11 15.42 10.92 1.83 0 8.34 34.09 51.34

Capital Structure in March 08

Total Share Capital 12% Equity Share Capital 8% Reserves 1% Revaluation Reserves 0% Total Debt 33% Unsecured Loans 0%

Total Liabilities 46%

Capital Structure in March 09

Total Share Capital 11% Equity Share Capital 8% Reserves -4% Revaluation Unsecured Reserves Loans 0% 1%

Total Liabilities 42%

Total Debt 34%

Capital Structure in March 10

Total Share Capital 11% Equity Share Capital 8% Revaluation Reserves Reserves 0% -7% Unsecured Loans 2% Total Debt 34%

Total Liabilities 38%

Capital Structure in March 11

Total Share Capital 13% Equity Share Capital 9% Total Liabilities 42% Reserves Revaluation Reserves 1% 0% Unsecured Loans 7% Total Debt 28%

Computation of Ratios

A) Liquid Ratios 1) Current Ratio = Current Assets / Current Liabilities

2010 Currents Assets Current Liabilities Current Ratio 3250.77 545.85 5.96 2011 3651.93 1096.06 3.33

2) Quick Ratio = Quick Assets / Current Liabilities (Quick Assets = Current Assets Stock)
2010 Currents Assets Stock Quick Assets Current Liabilities Quick Ratio 3250.77 929.07 2321.7 545.85 4.25 2011 3651.93 1162.86 2489.07 1096.06 2.27

B) Leverage Ratio 1) Debt Equity Ratio = Total Debt / Shareholders Fund (Shareholders fund = Share Capital + Reserves & Surplus) 2010 Total Debt Share Holders Fund Debt Equity Ratio
4764.3 2010.77 2.37 2011 3408.6 3133.8 1.08

2) Interest Coverage Ratio = EBT + Interest / Interest 2010 EBT EBIT = EBT + Interest
189.47 227.46 -385.94 2011 34.06

Interest Coverage Ratio

-2.04

0.15

C) Profitability Ratios 1) Net Profit Ratio = PAT / Net sales * 100

2010 PAT -464.78 16463.34 -2.82% 2011 48.37 19095.52 0.25%

Sales Net Profit Ratio

2) Return of capital= PAT / Total Capital * 100 (Total Capital = Owners Fund + Borrowed Funds)

2010 PAT -464.78 2010.77 -23.11%

2011 48.37 3133.78 1.54%

Total Capital Return on Capital

D) Valuation Ratio 1) Earnings per share = PAT / No. of equity shares

2010 PAT -464.78 22036000 -2.11 2011 48.37

No. of equity shares Earnings per Share

21831000
1.54%

2) Dividend per share = Proposed Dividend / No. of equity shares As the company has very minimal profit, they have not paid any dividend yet

Corporate Social Responsibilities

A business can use ethical decision making to secure their business by making decisions that allow for government agencies to minimize their involvement with the corporation. If a company proactively follows the United States Environmental Protection Agency guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have, they would be less likely to have the Environmental Protection Agency investigate them for environmental concerns. An element of current thinking about privacy stresses self-regulation rather than market or government forces for protecting personal information. Most rules and regulations are formed due to public outcry, if there is not outcry there often will be limited regulation. Most rules and regulations are formed due to public interest. If there is no public interest then there will be limited regulation. (SRSA)

Some critics argue that Corporate Social Responsibility (CSR) distracts the organization from the basic economic role of the business. Others argue that it is an attempt to promote the role of governments as a watchdog over powerful multinational corporations though there is no systematic evidence to support these criticisms. (SRSA)

Gopala Polyplast Ltd is not much involved in to CSR activities but the top management has been contributing to a school for physically challenged children situated in Navrangpura personally.

Conclusion

Bibliography
Article Base. (n.d.). An Understanding Of Capital Gearing & Trading On Equity. Retrieved from http://www.articlesbase.com/wealth-building-articles/an-understanding-of-capital-gearing-amptrading-on-equity-1810161.html ICIS. (n.d.). Polyethylene. Retrieved from ICIS: http://www.icis.com/chemicals/polyethylene/ SRSA. (n.d.). Socially Responsible Shopping Association. Retrieved from http://www.srsassociation.org/library Wikipedia. (n.d.). Human Resources. Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Human_resources Wikipedia. (n.d.). Marketing Mix. Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Marketing_mix Wikipedia. (n.d.). Polypropylene. Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Polypropylene