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AN INDUSTRIAL VISIT

ON

Prepared By Class Year Roll No. College Guided By Submitted To

: Mr. Dabhi Dharmendra R. : S.Y.B.B.A. : 2007-2008 : : Shree H. N. Shukla College : Ms. Dina Kanani : Saurashtra University

PREFACE
Action is the language of commitment it speaks louder than words Learning by Doing is the hidden condition of the management course. The theoretical knowledge of the class room discussion has its own limitations According to syllabus of Saurashtra University it is compulsory for every student of S.Y.B.B.A. to prepare report of manufacturing industry. Practical training is very important constitute in the field of education. According to need education policy adopted practical training has been introduced for the student. In S.Y.B.B.A., students have to visit a particular industry. I have also visited Forge & Forge Pvt. Ltd. which got ISO certificate.

ACKNOWLEDGEMENT
I take this opportunity to experience my deep sense of gratitude and regarded towards those who have directly and indirectly helped me in my practical study of industrial training. I specially thanks to Ms. Dina Kanani who gave me all information about how to prepare industrial training report and all the necessary information which are required. I am also very much thankful to Mr. Sudhir Mehta accountant of the firm for sharing his wonderful experience and guidelines during the visit of the company. I am also very thankful to managing director Mr. N. M. Patel.

DECLARATION
I, the undersigned Dabhi Dharmendra R. from S.Y.B.B.A. here by declare that the project work presented in this report is my own work and has been carried out under the supervision of Ms. Dina Kanani, H. N. Shukla College.

DATE : PLACE :

[Signature]

GENERAL INDEX
SR. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TITLE GENERAL INFORMATION PRODUCTION DEPARTMENT PERSONNEL DEPARTMENT MARKETING DEPARTMENT FINANCE DEPARTMENT SUGGESTION FUTURE PLAN SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY PAGE NO.
6 17 33 48 59 71 73 75 77 79

Index
SR. NO. 1. 2. 3. 4. 5. 6. TITLE PROJECT REPORT AT GLANCE HISTORY & DEVELOPMENT LOCATION & CHART BANKERS SIZE & FORM OF THE ORGANIZATION GENERAL ORGANIZATION STRUCTURE
7

PAGE NO. 8 11 12 14 15 16

1. PROJECT REPORT AT A GLANCE:

Name of the Company: Forge & Forge Pvt. Ltd.

History of the Unit:


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The promoter of the unit is Shri Valjibhai Jagjivanbhai Patel. The unit was started on a very small base in the beginning. Its manufacturing activity started in August, 1976, at that time it was a sole-proprietor firm. At time passed its turnover and production capacity increased and so the unit was converted into private limited company. Year and Date of Establishment: 1st June, 1974 Year of Registration: 1974, under companys act 1956 Promoters: Shri Valjibhai Patel Size of the Unit: Large Scale Unit Total area Covered: Around 8 crores Bankers: 1. Corporation Bank 2. HDFC Bank

Accounting Year: April to March Turnover: Rs. 38, 34, 98,000 (inclusive of all other income)
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Auditors: Sanghavi & Co.

Existing Managing Group: 1. Mr. N. M. Patel: M.D. 2. Mr. Sudhirbhai : Accountant 3. Mr. Jitubhai : Personnel Officer 4. Mr. Prarinbhai : Sales Officer 5. Mr. Vajpaee : Sales Officer 6. Mr. Jai Shankar : Purchase & Store Officer 7. Mr. Mansukhbhai : Dispatch Officer 8. Mr. Parmalbhai : Die-shop Supervisor 9. Mr. Berabhai : Cutting-shop Supervisor 10. Mr. Sultanbhai : Forge shop Production in-charge 11. Mr. Jansanbhai : Design Officer

Product made:

The product made by Forge and Forge are die-steel and allude steel job such as: 1. 2. 3. 4. 5. 6. Lister crank shaft Small crank shaft Connecting road Railway spare part Automobile spare part Flange

Special Achievement: It has received two ISO: 9002 certificate in year 2001.

Factory Address: M/s. Forge & Forge Pvt. Ltd., Ahmedabad road, Rajkot 360003
10

Telephone No. Fax no.

: 2456101 : 2456101

Total Capital Investment: Rs. 9, 51, 86,000=00

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2. HISTORY & DEVELOPMENT:


Gujarat state is considered as an industrial developed state, from very beginning of the state. i.e. from 1st may 1961 Gujarat state is generally having its own reputation as a peaceful progressive state. The promoter of this unit is Shri. Valjibhai Jagjivanbhai Patel, the unit was started on a very small base in the beginning. It is manufacturing activity started in august, 1976. At the time it was sole proprietor firm. At time passed its turnover and production capacity increased and so the unit was converted into private limited company.

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3. LOCATION & CHART:


The ideal location is that which permits the lowest cost in production process and distribution of a product or service. If the location of the business in unsuitable the concern cannot be economically and profitably, even though the entrepreneur has enough capital and managerial skill. There are number of instance of the business units that failed due to wrong location has a great depend upon the survival and prosperity of business unit. It must be remembered that the business may be running successfully at a particular location but circumstances may be change and location may also have to be shifted.

Plant location:

Plant location is one of the important factors. The plant of Forge & Forge Pvt. Ltd. is located on Ahmedabad Road. Main reasons for establishment of plant location are: - At the time of establishment this place was out of city. - Easy availability of labor. - Easy transportation facility. - At the promoter belong to the Rajkot he wants to locate the plant near city only. After deciding above factor he locates the plant at that popular place.

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PLANT LOCATAION CHART

5
WASTE SCRAP YARD &

6
4

Q. C.

1 2

LAB

GARDEN

GARDEN

RAJKOT N. H. 8B AHMEDABAD 1. Administration 2. Time Office 3.Stores 4.Heat Department 7.Die Shop 8.Forge

5.R.M. Stock Yard 6. Forging Stock Yard Shop

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4. BANKERS:
a. Corporation Bank: Dhebar Road, (RAJKOT)

b.

HDFC Bank: New Gymkhana (RAJKOT)

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5. SIZE & FORM OF THE ORGANIZATION:


In every country government adopts a different policy for measuring the size of the unit. In the new policy government adopted investment measuring policy on the basis of investment the company or the industry can be divided in three types: 1. Small Scale Industry 2. Medium Scale Industry 3. Large Scale Industry The industry whose investment is more than 5 crores as per government rules come under large scale industry. Forge & Forge Pvt. Ltd.is having total capital investment of Rs. 9, 51, 86,000, so thats why it is large scale industry. Again, the industry can be divided into three types according to the nature of the business: 1. 2. 3. Sole proprietorship Partnership firm Public limited company The Forge & Forge Pvt. Ltd. is private company.

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6. GENERAL ORGANIZATION STRUCTURE:


Organization is a group of people working together cooperative under authority that mutually benefits the organization it may also be said as grouping the activities to be performed. Chart of Structure

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Managing

General
Personnel Manager Marketing Manager Finance Manager Product Manager

Time

Purchase Officer

Sales Officer

Chief Accountant

Quality Countrol

Clark

Computer Operator

Control Manager

Peon

Assistant

Assistant

Typist

Engineer

Supervisor

Workers

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INDEX
SR. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TITLE
INTRODUCTION MEANING & DEFINITION PRODUCTION CONTROL ORGANIZATION CHART RAW-MATERIAL MACHINE & MATERIAL HANDLING EQUIPMENTS PRODUCT MADE PRODUCTION PROCESS WASTE & STORE MANAGEMENT QUALITY & POLUTION CONTROL

PAGE NO. 19 20 21 22 23 24 25 29 31 32

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1. INTRODUCTION:
It is said that production management is the heart of every business and we are all operations managers. Buffers says: productive systems are mans unique invention they are means by which we create the candles list of good and services, that are needed to modern society.

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2. MEANING & DEFINITION:


Production means creativity of utilizes and it covers all the activity of resources such as labor, energy, materials, equipments, machinery, etc... Production management is the planning, acquisition use and the control of the provision use of goods and services. It refers to application management of production functions in a factory. In fact production management is a whole term it involves planning, organizing, directing and controlling the manufacturing and its ancillary activity to produce useful goods and services in order to satisfy customers wants and to generate profits for the firm. Definition: In the words of Babby Shore, it is management of any operational system which transforms inputs into output.

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3. PRODUCTION CONTROL:
Production control involves implementing the production plans in accordance with the planned schedules by co-ordination different activities. It seeks to ensure that production operations. It directs and cheeks the courses and program of the production work. It is preliminary concerned with the flow of materials, running of machines, smooth function of manufacturing system and checking the deviations from production plans. It ensures that actual performance of production activities occurs in accordance with the products schedules routing and programs. Definition: According to E.F.L.Beech, production control is specific application of control functions and it is concerned with recording from programs and variation of standards. The Forge & Forge Pvt. Ltd. is keep production control by material machinary, labour and checking production process is running as production planning.

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4. ORGANIZATION CHART:
Organization means a group of people whom working in company and also benefits to organization. As Forge & Forge Pvt. Ltd. company is concerned there is an excellent organization structure where authority and responsibility flow from upward to downward and complaint going from downward to upward.

Managing Director

Production Director

Supervisor [Highly-Skilled Person]

Semi-skilled Person

Unskilled Person

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5. RAW-MATERIAL:
The most important resource of any industry is raw material. It is the basic need for production. Thus, availability of raw material in proper quantity required and at proper time is an important factor. Steel is the main raw material used by forge & forge Ltd. Steel is used in its various from for the production. Following are the raw material of forge & forge Ltd. The raw-material used for production process: Steel Billet High Carbon Billet EN-9 MS 20mm CRS

The raw-material is brought from Mumbai, Vishakhapatnam and Ahmedabad. Quality of raw-material is of different grade and as per customer requirements.

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6. MACHINE EQUIPMENT
Machine:

&

MATERIAL

HANDELING

Machine is one of the important tools/assets of any unit. Without then production process would be too slow. These machines are to be handled with care and are to be maintained forge & forge Ltd maintains their machines used as follows Drop Hammer Foreign Press Various type of Furnace Compressor Generator Machines for manufacture dies Hack of Machines Benison of Machine Steering Machine

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Material Handling Equipments: Machines used for transfer materials are: - Cart - Folk Lift - Trucks

7. PRODUCTS :
The products is a bundles of all kinds of satisfaction of both material and non-material kinds ranging from economic utilizes to satisfaction of a social psychological natives. The product made by Forge & Forge Pvt. Ltd. is die-steel foreign and alloyed steel jobs such as, Lister crank shaft Small crank shaft Connecting road Railway spare parts Automobile and spare parts Flange

The product made by Forge & Forge Pvt. Ltd. is used in oil engine and automobiles sector etc.

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PRODUCTS

28

29

30

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8. PRODUCTION PROCESS:
First of all the raw-material of product is brought from outside it is taken to raw-material stores. 1. CUTTING: In this stage all the billets are cut in the right weight according to requirements for manufacturing of listed crank shaft. The EN-9 billets weight about 13.6kg. 2. WEIGHTING: After cutting the process is weighted in the stage. The weight is according to requirements. 3. HEATING: In this stage all the small process of billets is dropped into furnace and heat is given to them about 1100C to 1200C. 4. FORGING: After heating the pieces is taken to this stage here the shape is given to those pieces puling them. This forging machine is of 10 tons. This knows n as filter hammer. After this process the produce is taken to press machine where the wastage is separated from the product and product becomes finished goods. 5. INSPECTION: In this stage inspection is done into categories accepted good the goods ready to dispatch and rejected goods are sold out lower price. In these stage three types of inspection is done: I. Heat inspection II. Final inspection III. Laboratory inspection

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6. SPOT BRUSHING: This process is done only to give shining to the product. This process is done in alloyed steel only. Furnace - Hammer - Press - Ready for inspection by Q.C.Dept.

OK REWORK REJECTION
EXTRA OPERATIONS:

- Heat Treatment - Normalizing - Shot Blasting

As per the customers demands.

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9. WASTE & STORE MANAGEMENT:


WASTE MANAGEMENT:
During the production process the material comes out after the prying process is collected and sold in the market scrap. The waste material is separated from the product with the help of press machine. Forge & Forge Pvt. Ltd. is done waste management by that waste material is saprated from the product with help of press machine.

STORES MANAGEMENT:
Store management is one of the important factor of production department. After producing finished goods there must be some storage policy. Forge & Forge Pvt. Ltd. uses FIFO method to store products.

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10. QUALITY & POLUTION CONTROL:


QUALITY CONTROL: Quality control means control quality during the manufacturing process. It is the mechanism to ensure quality standard as per requirements. In Forge & Forge Pvt. Ltd. is done quality controled by following ways: 1. Physical and chemical examination in the laboratories. 2. Sample checked for dimensional ascendancy and metallurgy soundness 3. Hot parings checked for paying defects at frequent inerrable. 4. Correct hardness testing 5. Critical components, minutely examined on crack detection machine. POLUTION CONTROL: Polution control is important factors to the company because polution free location is create clean place and workers morality to the organization. The Forge & Forge Pvt. Ltd. is having wide space in the firm of garden and trees in provided the area it control the noise and airpollution.

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INDEX
SR. NO.

TITLE
INTRODUCTION MEANING &DEFINITION ORGANIZATION CHART TIME KEEPING SYSTEM RECRUITMENT & SELECTION TRAINING & DEVELOPMENT WAGES & SALARY EMPLOYEES BENEFITS EMPLOYEES PROMOTIONS & TRANSFER POLICY PROVIDENT SCHEME & ESI SCHEME TRADE UNIONS & MERIT RATINGS

PAGE NO.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

35 36 37 38 39 41 42 43 44 45 46 47

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1. INTRODUCTION:
Personnel management is one of our most complex and challenging field of endurance it meets the firms requirements for an effective work force. It is concerned with the expectations of both employees and society in general preparing to work with human rather than objects is important in industry. Dale Yolder says: Managing people is the heart and essence of being a manager Fredrik Kapple says: People are our most important resources and every people have to be his own personal man. There is an often quoted phase, Management is people. It indicates the fact that personnel are the responsibility of online organization.

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2. MEANING & DEFINITION:


MEANING: Personnel management includes activities for procuring on the effective use of human resources on an organization. It concerned with the development with the highly indicated smoothly functioning work forces. It is planning, acquiring, developing, utilization and maintaining human resources in the achievements of the organizational goals.

DEFINITION: In the words of Dale Yarder, manpower management effectively describes the process of planning and directing the application development and utilization of human resources in employment.

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3. ORGANIZATION CHART:
Personnel management is a staff functions and personnel department offers advice and services to all line executives on personnel matters. The personnel manager has the ultimate responsibility for all personnel and labor policies. A staff and is expected to guide advise, provide policies. A staff unit is expected to give advise provide services. Maintain control and perform administration tasks.

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Personal Officer

Semi Skilled Person

Unskilled Person

4. TIME KEEPING SYSTEM:


Time keeping system is important to regular working time keeping running good that as create more productivity. The General office time is from 09:00 to 05:30. Recess time is 01:00 to 01:30
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For workers shifts are as follows: TIME 08:00 A.M. to 04:30 P.M. 04:30 P.M. to 12:00 A.M. 12:00 A.M. to 08:00 A.M. RECESS 12:00 to 12:30 09:30 to 10:00 04:30 to 05:00 WORKING HOUR 8 7 7:30

There is a card system. The cards contain arrival time, departure time, etc... Whenever worker comes into the unit for duty he has sign the card and write the time. Any employee coming late or leaving the unit before time for official or personnel reasons to us to make appropriate notes on the register maintained separately from the register a date sheet is prepared and sent to the accounting department for salary of the employees coming later is deducted.

5. RECRUITMENT & SELECTION:


RECRUITMENT:

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Recruitment is the most important work of the personnel. Department for achieving the organization goal and optimizing various resources require the right. The three Aim: Material Machine Money

Recruitment is discovering of potential applicants or candidate for actual or anticipated organization vacancy. Recruitment aims that meeting the job recruitment and job specifications it bring the job taken and job given face to face another. FORGE & FORGE PVT. LTD. has more number of unskilled labors. The requirement of skilled labors is limited to the extent of operating machines. The demand for unskilled workers can be the rural areas. Situated near the production unit, this also helps the poor people in getting employment. The company when needs skilled employees, it gives advertisement in local newspapers and chooses the most suitable person.

SELECTION:
Selection means a process by which the qualified personnel can be chosen from the application who has offered their services to the organization. In Forge & Forge Pvt. Ltd. there is no formal
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selection procedure but people who are known and people references are selected. The procedure can be distributed as: I. INTERVIEW:

An interview is taken in which job related knowledge, general knowledge, experience, etc the candidate are checked, if the person is found suitable for the job, he is appointed. II. CHECKING OF REFERENCES:

This provides the experience of other about the applicant and also information about certain qualities which accurate measurement by other mean references may be made to reputation of or honesty of the applicant. III. SUPERVISORS CONSTANT: As the immediate boss in not associated with the interview committee. The candidate required to be informal about the boss and secure his approval, but in this firm procedure is not needed because labor turnover is almost nil.

6. TRAINING & DEVELOPMENT:


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TRAINING: Training is more important because without training workers does not work properly. He dont know production process and machinary so training is important. As for as there Forge & Forge Pvt. Ltd. is concerned there is no formal procedure for training but untrained and new labors as employees work under the supervision of the trained labor and employee on this get perfection and their job. DEVELOPMENT: Development is the related process which covers not only this activity which improve job performance but also those which bring about growth of personality, helps individual in toward actualization of their progress. Potential capacity so that they can not become only good employee but also a batter man and women. Forge & Forge Pvt. Ltd. also improves workers job performance and also improves standard of living and developed personality.

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7. WAGES & SALARY:


The basic purpose of wages and salary administration is to maintain equitable wage and salary structure. The employee is working to get momentary returns, so it should be fair enough. In Forge & Forge Pvt. Ltd. labors are paid the time wage. i.e. the wages based on amount of time spent in the organization are paid monthly wages. The labors are paid wages as the minimum wages. The salary is paid to the employee within 1 st seven days of the month. Firm follows the minimum wages living wages and wages policy. Its management is satisfied by the employees than increment is given for certain period.

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8. EMPLOYEES BENEFITS:
Organization provides a wealth of service that employees find desirable services are usually provided by the organization, at no or marginal cost to the employees. Forge & Forge Pvt. Ltd. provides a number of such benefits which has helped the employee to be satisfied with their job as well as the management has motivated them to perform their best ability. Forge & Forge Pvt. Ltd. gives the following benefits to the employees: 1. Providing bonus to the workers during the festivals 2. Having staff welfare programs like providing food to employees and employees. 3. They also have certain facility which provide food services at subsidized rates 4. They also provide earn leave and casual leave 5. Workers are provided safety aids like show for working in fore shop spectacles, helmet, etc 6. They are provided medical facilities reimbursement of medical expenses incurred and including hospitalization charge for employee and their family.

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9. EMPLOYEES:
NUMBER OF EMPLOYEES: 221 TYPES OF LABOR INVOLVED: 1. 2. 3. Highly skilled labor Skilled labor Unskilled labor

EMPLOYEES TURNOVER:

As the firm is concerned the labor turnover is almost nil. This shows that organization of the company is healthy and satisfaction company since the very existence of the company. These workers and its labors face neither by its employee nor problems. EMPLOYEES RECORD: They are maintaining the fair record of their workers.

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10. PROMOTIONS & TRANSFER POLICY:


PROMOTION POLICY: Promotion policy is motivated process by which employees are worked properly and best perform to achived promotion places. Forge & Forge Pvt. Ltd., promotion is given to an employees basis of his knowledge, ability and performance. Here promotion has no connection with seniority, ability and performance is given higher consideration in this company. TRANSFER POLICY: Forge & Forge Pvt. Ltd. does not have any transfer policy internally or externally.

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11. PROVIDENT SCHEME & ESI SCHEME:


PROVIDENT FUND: Forge & Forge Pvt. Ltd. provides this provident fund benefits as per provident fund scheme, under this scheme person retirement till the services and to his window. There after till he survives. In case of premature death to person is paid to his window during his lifetime.

E.S.I. SCHEME: Forge & Forge Pvt. Ltd. provides ESI scheme to its employees not earning the salary more than Rs. 6500 there the employee contribution is dedicated from their earning safety.

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12. TRADE UNIONS & MERIT RATINGS:


There is no such trade union which shows that the company has not faced any labor problems and Forge & Forge Pvt. Ltd. taken keen interest in the retirement of employee. Strike if any It should be noted that there is not a single day strike or lock in the history of the unit. MERIT RATINGS: They verify the person to do practical job and gives merit accordingly.

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INDEX

SR. NO.
1. 2. 3. 4. 5. 6.

TITLE
MARKET & MARKETING MARKETING MANAGEMENT ORGANIZATION STRUCTURE PRODUCT MADE PRICING POLICY PROMOTION MIX
53

PAGE NO.
50 51 52 53 54 55

7. 8. 9.

DISTRIBUTION CHANNEL & MARKET RESEARCH COMPETITIONS REGULAR & CREAM CUSTOMERS

56 57 58

1. MARKET & MARKETING:


The term marketing comes from the words mark which are a group of a sellers or buyers. Who are willing to exchange goods and services for something value. In common process of distribution of good and services. It is concerned with handling and transport of goods from the point of production to the point of consumption.
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Marketing includes all the activities in the creation of place time and possession utilities. In other words it involves the activities that satisfy needs and wants through the process of exchange. DEFINITION: In the words of the Ralph Alexander. Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.

2. MARKETING MANAGEMENT:
Marketing management deals with planning, promotion and control of the entire marketing activity of a firm. It includes the information of marketing objectives, policies, program and strategy. It is considered with the direction of proposal activities towards the attainment of marketing goals.
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DEFINITION: According to American Marketing Association, Marketing Management is the process of planning and executing the conception, pricing, promotions and distribution of ideas goods and services to create exchanges that satisfy individual and organizational goals. W. J. Station says, Marketing management is the marketing concept in action.

3. ORGANIZATION STRUCTURE:
In marketing management there is organizational structure is a structure which involves companys line and staff organization in a marketing field. In Forge & Forge Pvt. Ltd. organization structure are as follows:
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Marketing Manager

Purchase Manager

Sales Manager

Assistant

Assistant

It has very simple organization structure. Marketing manager is the head of marketing department and under his works. Sales manager and purchase manager are under sales manager, there is sales assistant and clerical staff and under purchase manager purchase assistant and clerk.

4. PRODUCT MADE:
The product is a bundle of all kind of satisfaction of both a material and non material kinds ranging from economic activities to satisfaction of a social psychological nature. The products for the Forge & Forge Pvt. Ltd. are steel die and allude steel job such as,
57

1. 2. 3. 4. 5. 6.

Lister steel shaft Small crank shaft Connecting road Railway spare parts Automobile and tractor parts Flange

5. PRICING POLICY:
Every company keep pricing is a stable and competitors price. When a company increases there prices the company will not achive market share company keep pricing cost + profit margin. In this Forge & Forge Pvt. Ltd. the method used for pricing a product is cost plus for markup method.
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PRICE: Product expense + + + Over heads Labor charge Profit Margin

It adopts a variable pricing policy where discrimination is made between the buyers. Here the prices are negotiable for large and valuable customers are offered lower price and better discount. The objective captains in mind determining product are: 1. 2. Market share Sales growth

6. PROMOTION MIX / POLICY:


The Forge & Forge Pvt. Ltd. does not adopt any kind of promotion for their products. Their rate is very competitive in the market and its demand for their products is very high. Hence, they dont feel the need of promotion. They believe in personal selling and the buyers make direct contact to the firm. The total amount for promotion is nearly 2% of their turnover.
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7. DISTRIBUTION CHANNEL & MARKET RESEARCH:


DISTRIBUTION CHANNEL:
They are using two types of distribution channel: 1. 2. Direct distributor Indirect distributor
60

The Forge & Forge Pvt. Ltd. adopts direct distribution. They do not take the help of any intermediation like agents as retailer or wholesalers. The consumer directly comes to the company where all terms and conditions are decided any place to order.

MARKET RESEARCH:
Market share means number of customer to the product. The market share of Forge & Forge Pvt. Ltd. is about to 70 %.

8. COMPETITORS:
The competitors for the company are: 1. 2. 3. 4. Micro Forge Kadvani Forge Mars Forge Echjay Steel
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It uses certain elements to face this competition which are: To keep more stock Controlling cost No transportation charge

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REGULAR & CREAM CUSTOMER

1. 2. 3. 4. 5. 6. 7. 8. 9.

P.M.DIESEL PVT LTD. GUJARAT FORGEIN LTD. TOPLET ENGINE PVT.LTD. SAURASTRA LTD. ARVIND IND. NISLUSE ENGINEERS MUMBAI LAXMI ENGINEERS LAXMI SPARES PARTS PVT. LTD. SAKARIA ENGINEERS CO.

APPROX 75 % OF CUSTOMESRS ARE LOCAL I.E. FROM RAJKOT.

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64

Index
Sr. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Title
INTRODUCTION MEANING & DEFINITION ORGANIZATION CHART MANAGEMENT FOR FIXED ASSETS BANKERS DEPRICIATION CREDIT & TAX POLICY PROFIT ANALYSIS CAPITAL STRUCTURE SOURCE OF FINANCE

Page No.
61 62 63 64 65 66 67 68 69 70

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1. INTRODUCTION :
Finance is one of the basic foundations of all kinds of economic activities. It is the master key of business and industry. Finance is regarded as the life blood of a business organization. It is said that finance is the oil of wheel, millions of bonus and spirit of trade commerce and industry. Henry Ford once remark money is an arm or a leg, you either use it or loss it. Wood row Wilson has often stated, finance is not arithmetic, finance is a great policy without sound Finance no sound government is possible.

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2. MEANING & DEFINITION :


Financial management deals with the financial activity, which is concerned with the planning and controlling of the firm financial resources. It means that the entire games of managerial efforts and decisions devoted to the management of finance both its resources and uses of the enterprise. DEFINITION: In the word of Weston and Brigham, financial management is an area of financial decision making harmonizing individual motive and enterprise goals.

67

3. ORGANIZATION CHART :
The organization of finance department means the decision and classification of various functions which are to be performed by finance department. The Forge & Forge Pvt. Ltd. is taken decision and classified financial work as following ways:

Financial Manager Chief Accountant

Assistant Accountant Clark

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Mr. Gopalbhai Patel is the finance manager and Mr. Sudhirbhai is the chief-accountant under his works the assistant accountant and clerk.

4. MANAGEMENT FOR FIXED ASSETS :


The management of fixed assets refers to the process of management. There are some fixed assets in the business. The firm is taking the regular care of their fixed assets. They maintain their assets. Forge & Forge Pvt. Ltd. (2007) having fixed assets like: 1. 2. Gross block -78144399 Depreciation-57028943 Net block 20515456

Forge & Forge Pvt. Ltd. (2008) 1. 2. Gross block-83265468 Depreciation-63873877 Net block 19391591

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5. BANKERS :
Forge & Forge Pvt. Ltd. sometimes need more finance that time company take borrowed money as banks. 1. CORPORATION BANK, Dhebar road, Rajkot.

2. HDFC BANK, New Gymkhana, Rajkot.

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6. DEPRECIATION :
As carter has put it, Depreciation is the gradual and permanent decrease in value of an asset from any cause. In Forge & Forge Pvt. Ltd. is calculate depreciation to follwing ways : Plant & Machinery Die Block Office Building Equipment Vehicle Furniture : 27.26% : 30% : 5% : 13.81% : 25.89% : 18%

Depreciation assets comprise a significant portion of the assets of much enterprise and as such depreciation has a significant effect in determining and presenting the financial position and results of the operation of that enterprise.
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7. CREDIT & TAX POLICY :


CREDIT POLICY: Credit policy is important to finance department for deciding saving funds, reserve investment etc factors. Forge & Forge Pvt. Ltd. credit policy depends upon the customer to customer its their worthiness and depends upon the smooth dealing for the rating on the customers. We frequently reviewing several aspects such as timely re-payment smooth dealers order quality, etc TAX POLICY: It pays tax as the corporation tax the company pays 16% duty on sale while modern amount is getting rate from purchase of rawmaterial.

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8. PROFIT ANALYSIS :
Profit analysis is the most simplified method for analysis of financial position. Thus it is an important tool for financial analysis. Some of ratio as under: 2006: Gross Profit: Rs. 49,99,30,376 Net Profit: Rs. 1,57,00,169 Gross profit ratio = (Gross Profit / Sales) * 100 = (49,99,30,376 / 52,77,65,034) * 100 = 94.73% Net profit ratio = (Net Profit / Sales) * 100 = (1,57,00,169 / 52,77,65,034) * 100 = 2.97%
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2007: Gross Profit: Rs. 56,33,17,850 Net Profit: Rs. 3,36,76,778 Gross profit ratio = (Gross Profit / Sales ) * 100 = (56,33,17,850 / 611,44,32,52) * 100 = 92.13% Net Profit Ratio = (Net Profit / Sales) * 100 = (33,67,67,78 / 611,44,32,52) * 100 = 5.51%

9. CAPITAL STRUCTURE :
Capital structure may be defined as that capital structure of combination of debt & equity that leads to the maximum value of the firm. Capital structure can the value of the company by affecting either its expected earning as the cost of capital of both. While it is true that financing can not affect the total earning of the firm as they are determined by investment decision can influence are value of the firm through the earning available to the share holder. The capital structure of Forge & Forge Pvt. Ltd. is as under. In 2007 : Share Capital: Rs. 25,00,000 Reserve & Surplus: Rs. 91,35,59,70 Secured loans: Rs. 45,69,98,22 Unsecured loan: Rs. 90,91,41,86.
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In 2008 : Share capital : Rs. 25,00,000 Reserve & Surplus: Rs. 13,357,7921 Secured loans: Rs. 3,57,30921 Unsecured loan: Rs. 10,83,63,530 Investment : Rs. 92,69,539

10. SOURCE OF FINANCE :


Source of finance means sources of financial for companies in trend of depression and other situation when company need more finance. Forge & Forge Pvt. Ltd. Source of finance is own companies finance and by banks. - Corporation Bank - HDFC Bank

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SUGGESTION
After studing all aspect of the Forge & Forge Pvt. Ltd. I would like to give some suggestion: Unit have requires more fresh and skilled workers The company must have more technology and facilities. The company gives facilities to departmental manager and staff manager. Unit have should explore a scope for international market.

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FUTURE PLAN
Each and every industry has its own wishes and plan. FORGE & FORGE PVT. LTD. is a company which is going on day to day toward top. In the modern competitive area the FORGE & FORGE PVT. LTD. has made very good process. It also wants much & more demand in future. In the future plan of the company, the manager of the
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company needed that gave a more facility, to gave a workers or labour and department of the company. The company gave facility like insurance, medical facility etc. The company aims at modifying their quality product & reduction in cost of production. The company wants to produce a good quality of product in minimum price. It is unit among different store. Company plays various revenue such as duty. Income tax, sales tax, octroi tax, other change applicable from the time to time as may be imposed by the Government. Company provides best quality of product of his company to the society.

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Strength: Quality of product Loyal customers & employees Financially sound Use of latest technology

Weakness: In company most of customers are from local area and regular. So, no need to advertisement.

Opportunity: They have opportunity to take over international market because of law price and good quality both together. They should increase their export.

Threats Business competitors Economical slow down

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CONCLUSION
Forge & Forge Pvt. Ltd. is a running by regularly. Companise most of customers are from local area and regular. Companise production is regular and contorlled over a cost. Companies staff members are very polite and co-operative. Company gives training to their unskilled employees.

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BIBLIOGRAPHY
The project report prepared under to guide of project in charge M/s Dina Kanani and the project of last few year.

WEB SITE:

www.forge&forge.com

Company Name:

Forge & Forge Private Limited 86

Contact Person: Telephone: Fax:

Mr. Atul Nagrecha (Manager) +(91)-(281)-2456101 +(91)-(281)-2456104

Address:

Ahmedabad Road, Near Rajkot Welcome Gate, Rajkot, Gujarat - 360 003 (INDIA)

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