Professional Documents
Culture Documents
LTD,
VYAS NIRAJ M
CLASS
:-
S.Y.B.B.A.
ACADEMIC YEAR
:-
2006 2007
ROLL NO
:-
55
SEAT NO
:-
COLLEGE
:-
CHRIST COLLEGE
-:SUBMITTED TO:-
DECLARATION
I, the undersigned, VYAS NIRAJ M. a student of
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
VINITA AGRAWAL, Mrs. CHARMI BADANI and
Ms. DARSHITA GANATRA of Christ College, Rajkot.
This work has not been previously submitted to any
other university for any examination.
Date:Place:-
PREFACE
The corporate world was operated in dynamic environment,
it is still being operated in globally dynamic environment and will be
continued forever is the universal truth. Todays mangers role is not
restricted up to record keeper, mediator, councilor, a role of conscience,
trainer, peace maker, problem solver but also to work as mentor and to
nurture the people in ever changing environment.
We are living in the era of digitalization, globalization,
computerization ad can see the emergence of new technology every now
and than. So in todays competitive world, only theoretical study
approach is a narrow concept and students need some practical field
work and for this purpose Saurashtra University has arranged an
research report program for the future benefit of B.B.A students is
really valuable implication for me.
For this purpose, I have made a project report on BALAJI
WAFERS PVT. LTD. and tried to mention and analyze the attitude,
awareness and usage of its all the products for the consumers of entire
market of his.
ACKNOWLEDGEMENT
First of all, I am thankful to Saurashtra University for
giving the chance of practical knowledge in the syllabus of management
in B.B.A.
I am also grateful to BALAJI WAFERS PVT. LTD. To allow
me to make a project report and especially Mr. JAY SACHDEV, an
authorized person of balaji group.
The motivation and love behind the shaping of this project,
I owe special feelings towards my parents.
I could not have completed this report without the guidance
of my professors i.e. MS. VINITA AGRAWAL, MRS. CHARMI
BADANI, MS. DARSHITA GANATRA, AND DR. SWATI DOSHI.
At This Stage, I Would Like To Remember All My
Enthusiastic Classmates And Friends Who Give Their Love And
Support To Me Always.
Date:Place:Signature:(VYAS NIRAJ M.)
GENERAL INDEX
SR. NO.
PARTICULARS
GENERAL INFORMATION
PRODUCTION MANAGEMENT
PERSONNEL MANAGEMENT
MARKETING MANAGMENT
FINANCE MANAGEMENT
VISION
SWOT ANALYSIS
FUTURE PLANS
SUGGESTIONS
10
CONCLUSIONS
11
BIBLIOGRAPHY
PAGE
NO.
GENERAL INFORMATION
CONTENTS
SR.
No.
PARTICULARS
History of unit
Achievements
Company Profile
Organizational
Structure
PAGE
No.
ACHIEVEMENTS
Peoples love is the most memorable achievements. Truly,
that helped BALAJI group them to reach its fame across the globe.
Apart from this, economic time recognized balaji group as SULTAN
OF WAFERS and international magazine i.e. Asia pacific food online
published a special article with CHIP OFF THE OLD BLOCK tag.
Balaji group is also a member of snacks food association. Balaji group
believes in sheer performances which win a accolades of people and
media at same time.
COMPANY PROFILE
Name
Address
Vajdi [Vad],
Kalawad road,
Rajkot,
Tal. Lodhika
Gujarat [India]
Year of Estabt
1982
Main Products
(1.) Wafers
(2.) Namkeens
Form of Orgn
Limited Equity.
Size of Unit
Director
Total Area
85 000 Sq.m
Bankers
Phone No.
0281 2782755
2783756
2783789
COMPANY PROFILE
Fax
Accounting year
Website
balajiwafers.com
Working hours
Lunch time
Weekly off
Sunday
10
ORGANIZATIONAL STRUCTURE
Organization structure is a basic frame work of company
management. It is the pattern in which various parts of the company are
interconnected.
In BALAJI WAFERS PVT LTD. There is a line type of
organization in which responsibility flow upward and authorities flow
downward and upward.
The following is the organizational structure of BALAJI
WAFERS PVT LTD.
11
MANAGIND DIRECTOR
DIRECTORS
TECHNCAL DIRECTOR
MARKETING DIRECTOR
R & D DIR.
GENERAL MANAGER
MARKETING
PRODUCTION
SUPERVISOR
SALESMAN
WORKER
FINANCE
PERSONNEL
C.A.
GM & MD
ACCOUNATNAT
CLERK
12
PRODUCTION DEPARTMENT
CONTENTS
SR.NO.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
PARTICULARS
PAGE
NO.
INTRODUCTION
ORGANISATIONAL CHART
PLANT LOCATION
PLANT LAYOUT
PRODUCTION PLANNING & CONTROL
MACHINE & MACHINE CAPACITY
REPAIRS & MANINTENANCE
RAW MATERIALS
PRODUCTION PROCESS
QUALITY CONTROL
MATERIAL HANDLING
STORE KEEPING
CODIFICATION & DENTIFICATION
PURCHASING OR SUPPLIER
RELATIONSHIP
ENVIRONMENT PROTECTION
INVENTORY MGT.
INDUSTRIAL ENGINEERING
13
INTRODUCTION
Production plays a very important role in all the activities of
company management. This is the first step of the company
management. All the business activities revolve around the production
process. The production activity is nothing but the step by step
conversion of one form of material into another chemically or
mechanically. The basic inputs of the mine, farm, sea and forest are
used as raw material on which the processing is done to create the
output. Production is an activity through which the form utility is either
created or enhanced.
Production management is a process of planning,
organizing, directing and controlling the activities of production
function. Production function is the conversion of raw material into
finished goods. Production management is concerned with those
processes which convert the inputs into outputs. The inputs are various
resources like raw materials and the outputs are goods and services.
In BALAJI WAFERS PVT LTD.., production department is
looked after by Mr.M.P.Patel (Director)
14
ORGANIZATIONAL STRUCTURE
Organization structure is a basic frame work of company
management. It is the pattern in which various departments of the
company are interconnected.
In BALAJI WAFERS PVT LTD. There is a line type of
organization in which responsibility flow upward and authorities flow
downward and upward.
The following is the organizational structure of BALAJI
WAFERS PVT. LTD.
CHAIRMAN
MANAGIND DIRECTORS
BOARD OF DIRECTORS
GENERAL MANAGER
PRODUCTION INCHARGE
SUPERVISION
WORKERS
15
16
PLANT LOCATION
COSMOP
LEX
K
A
L
A
W
A
D
MTV
VVP
COLLEG
E
R
O
A
D
PETROL
PUMP
BALAJI
WAFERS
17
PLANT LAYOUT
18
19
20
The machine installed in the unit utilizes all the raw material
and process them to produce the final product but when they are not
well maintained they directly affect the quality of the product.
There is systematic repairs and maintenance of the plant of the
unit, as all the production work is done by it,. Company has hired some
technicians to look after the plant and various vital component of the
same.
RAW MATERIAL
Raw material is the most basic requirement for producing
any products. The selection of raw material should be proper. The
quality of raw material should be perfectly checked because the quality
of raw materials directly affects the quality of final product depends on
the type and quality of raw materials used.
BALAJI WAFERS PVT. LTD. produces various products
like wafers and namkeens. It is very important for the company to use
appropriate raw materials.
BALAJI WAFERS PVT. LTD. Uses following material for
the production of various products. They are:1. Potato
CHRIST COLLEGE, RAJKOT
21
2. Different dals
3. Peanuts
4. Banana
5. Chilly powder
6. Sugar
7. Salt
8. Edible oil
9. Tomato
10.Other spices
The raw materials are supplied to BALAJI WAFERS PVT.
LTD.., by following suppliers:-
22
PRODUCTION PROCESS
The operations function essentially is a transformation
process that accepts the inputs, and gives the outputs after adding value
to the inputs. The transformation process is expected to generate an
output. The transformation process is expected to generate an output
described by market and this it should do in the most efficient way.
Production process has to adopt itself to number of changing factors
like capacity, lead-time, flexible trade-offs between material, labour and
capital, trade-offs between volume and variety, etc. we cannot have the
best process, it could only be the most acceptable process, given the
different trade-offs.
In BALAJI WAFERS PVT. LTD., production process is a
well planned process. In contains all that important stages, which is
required to make a product well, accepted in the market.
The well planned production process of BALAJI
WAFERS PVT. LTD. is as follows: The first of production process begins on receiving the order from
the dealer.
Potatoes are placed on electric channel and washed properly.
After washing, they are brought for pilling purpose to the peeling
machine.
Once they are washed and finely peeled they are passed through a
belt where labours remove off the spoiled potatoes.
After washing and peeling, they sent for cutting. There are
different shapes in cutting machine; these shapes are arranged
according to the need.
After washing, they are again sent for washing and after that for
frying purpose.
Once frying gets over again inspection is done to remove the
broken pieces of wafers.
23
Once this process ends chips are placed in Spicer drum and
necessary spices are added to it. And than at last they are packed
and dispatched.
WASHING
PEELING
INSPECTION
CUTTING
WASHING
FRYING
INSPECTION
ADDING SPICES
DISPATCH
24
QUALITY CONTROL
In industrial context quality is defined in much more
functional fashion thus we can say that quality means, Fitness for use
whether for a product or service. It is also considered as the sum total of
the attributes or properties that describe the product.
Today the existence of any manufacturing unit depends on
the quality of product or services it manufactures or supplies. The image
or goodwill of any unit is closely related to the quality of product made
or supplied by that unit;
Level of quality is the mirror for the manufacturer.
Quality is very important for a manufacturer of product or
services because very existence of manufacturer depends on the quality
level.
In this unit, there is a systematic quality control process.
Company has purchased certain very costly equipment for this purpose.
Where they check the raw material and finished goods both. Of course,
for this purpose experts personnel are recruited to do the testing work.
MATERIAL HANDLING
According to American material handling society, material
handling is the art and science of the movement, packing and the
storage of substance in any form
CHRIST COLLEGE, RAJKOT
25
STORES MANAGEMENT
The efficiency of the mfg. operation depends largely on the
efficient functioning of the receiving and stores operations. Receiving
and storing are the services, functions and involve much of the proper
work.
The direct production cost is reduced by strategically
location of the stores ensuring quick issue and elimination of production
stoppages caused by waiting for materials. It indirectly reduces the
production costs in terms of reduced investments in materials, storage
26
27
ENVIRONMENT PROTECTION
A success of an industrial unit lies in its production of its
products without pollution the surroundings. An industrial unit for its
functioning depends a lot on the environment. Without properly no
matter however efficient the unit may be.
28
29
INVENTORY MANAGEMENT
Inventory is defined as a usable resource which is physical
tangible such as materials. In this sense, our stock is our inventory but
even then the term inventory is more comprehensive. Though inventory
is usable resource it is also an idle resource unless it is managed
effectively and efficiently. Inventory control refers to the process
whereby the investment in materials and parts carried in stock is
regulated within predetermined limits set in accordance with the
inventory policy established by management.
Inventories constituent the largest component of current
assets in many organization. Poor management of inventories therefore
may result in business failures. In case of a manufacturing organization,
the inability could bring production process to a halt. Conversely, if a
firm carries cost may represent the difference between profit and loss.
Efficient inventory control therefore can significantly contribute to all
overall profit position of the organization.
BALAJI WAFERS PVT. LTD. has a systematic inventory
control. For inventory, BALAJI WAFERS PVT. LTD. uses First In First
Out (FIFO) method. They dispatch they finish products as soon as they
are produced. Company does not hold inventory for more than 2 days
including raw material and finish products.
30
INDUSTRIAL ENGINEERING
31
The forge piece which is left at the end of forge process can
be reused or can be sold as scrap.
Forge piece which are rejected, which are found at the end
process can be reused are called end piece. These pieces are not fully
scrap they can be reused in the production again. So these pieces are
separated from the scrap[ and are again sent to the production dept.
But some pieces which are known as flash are of no use in production.
This is the unused part of the product which is separated when the
product is giving finishing touch. As these pieces used in the production
they are sold as scrap.
PERSONNEL DEPARTMENT
CONTENTS
SR.NO.
PARTICULARS
INTRODUCTION
ORGANISATIONAL STRUCTURE
PAGE NO.
32
PERFORMANCE APPRAISAL
10
TRADE UNION
11
PERSONNEL RECORDS
12
EMPLOYEE BENEFIT
13
COLLECTIVE BARGAINING
14
15
JOB ANALYSIS
16
INDUSTRIAL RELATION
17
GRIEVANCE HANDLING
18
WORKING CONDITION
INTRODUCTION
If we look at the world management it can be divided into
MANAGE-MEN-T. If the word tactfully substituted for T then the
word management would read MANAGE-MEN TACTFULLY.
Thus the word itself suggest the most important aspect of management,
namely, of managing men and human beings in a particular manner ,
namely , tactfully,.
Although in one sense every one in an organization is
concerned with the personnel function, in case of larger organization a
special dept. is segregated to help the line management to secure the
optimum use of personnel dept. performing an advisory or a staff
function. The personnel department helps management in securing,
using, and development appropriate, manpower to achieve the
organizational objective.
CHRIST COLLEGE, RAJKOT
33
ORGANIZATIONAL STRUCTURE
Organization is group of people working together co operating
under authority towards achieving benefits for the participants and
organization itself. Every organization has its goals and objectives.
In balaji wafers there does not exist any separate personnel
department for achievement of goals. This entire task is handled by
general manager and managing director itself. Any kind of complaints
or grievances are directly solved by them.
34
NO OF EMPLOYEES
However, the big the organization may be but its employees
are its real strength. Employees are one of the important resources of
any organisation.
The no. of employees matters a lot in the performance of the
organisation. The number of employees should be proportionate to the
size of the organisation. Any increase or decrease in the number of
employees would cause a problem in the fu8ctioning of the organisation.
In BALAJI WAFERS PVT. LTD. The number of the
employees is as follows:
DETAILS
NO. OF EMPLOYEES
Office Staff
Supervisors & Inspectors
CHRIST COLLEGE, RAJKOT
24
29
35
6
15
74
Engineers
Supporting staff
Total
36
37
38
PERFORMANCE APPRAISAL
Appraisal is the evaluation of worth, quality or merit. In
this organisation context performance is a systematic evaluation of
CHRIST COLLEGE, RAJKOT
39
40
TRADE UNION
41
42
Bonus:
Employees are given average 10 to 15% bonus regularly at the
end of the year as per their performance.
Medical facilities:
Company provides re imbursement of medical expenses incurred
and includes hospitalization, nursing homes and surgical charges for
employee as well as his family.
Canteen facilities;
They offer meal worker at a reasonable rate.
43
COLLECTIVE BARGAINING
Collective bargaining means a procedure under which two
parties, namely, workers and management, reach an agreement about
wage rates and basic conditions of employment and on some other
important issues of an organizations,.
44
JOB ANALYSIS
Job analysis is a detailed and systematic study of jobs to
know the nature and characteristics of people to be employed for each
job.
The requirements of a job are known as job description and
qualities demanded from the hob holder are termed as hob
specification.
CHRIST COLLEGE, RAJKOT
45
INDUSTRIAL RELATION
Expression industrial relations are used to express the
nature of relationships between the employer and employee in an
industry or an organisation. Where willing co operation emanates from
employees towards the achievement of organizational goals. There is
said to be industrial relation and there are condition which can generate
good industrial relations. A correct perspective the industrial relations
position is possible on an appreciation of the stages of development
through which a country has passed over a period of time to the present
moment.
In BALAJI WAFERS PVT. LTD.... The management and
employees maintain a good industrial relation. They both understand
each other and there is no incident of any such dissatisfaction or strike.
46
47
WORKING CONDITION
48
MARKETING DEPARTMENT
CONTENTS
SR NO.
PARTICULARS
INTRODUCTION TO
MARKETING
ORGANISATIONAL STRUCTURE
PRODUCT PLANNING
PRODUCT MIX
MARKETING RESEARCH
SEGEMENTATION
PAGE
NO.
49
10
PROMOTION MIX
11
DISTRIBUTION CHANNEL
12
COMPETITOR
13
EXPORTS
INTRODUCTUION
Marketing management represents an important functional
area of business management efforts for the flow of goods and services
from the producers to the consumer. It looks after the marketing system
of the enterprise.
Marketing management has to implement marketing
strategies, programmes and campaigns. It must evaluate the
effectiveness of each part of marketing mix and introduce necessary
modifications to remove discrepancies in the actual execution of plans,
policies, strategies, procedures and programmes.
Marketing management has to plan and develop the
product on the basis of known consumer demand. It has to build up
appropriate marketing plan or marketing-mix to fulfill the et-goals of
the business. It has to formulate sound marketing policies and
programmes. It looks after their implementation and control. In
essence, marketer is a manager of customer demand in a changing
business world.
50
ORGANIZATIONAL STRUCTURE
Organization structure is frame work of firms employees
which shows position of each employee in a department.
In this company there is no marketing department as such
but concerned activity of buying and selling is done by respective officer
only i.e. purchase and sales officer.
MANAGING DIRECTOR
MARKETING MANAGER
PURCHASE OFFICER
SALES OFFICER
EXPORT MANAGEMENT
Sales officer look out for sales and export together while purchases
officer deals only in purchases.
51
52
PRODUCT PLANNING
A product planning is a company plan for marketing its
products. Product planning means planning for the product that is to
decide what type of products to be produced or what need or
requirements the product should satisfy.
In balaji wafers product planning is done very carefully. They
first contact dealers and ask for the demand of product in the market &
new demand of customers then they prepare few samples and give to
dealers. As per the suggestion and taste of customers, they manufacture
the new product.
PRODUCT LIFECYCLE
The product life cycle concept derives from the fact that a
products sales volume and sales revenue follow a typical pattern of 5
phase cycle.
1. Introduction
2. Growth
3. Maturity
53
4. Saturation
5. Decline and obsolescence
In BALAJI WAFERS, its product also has its lifecycle. They
introduced their products then it grew very fast and reached maturity
where they started earning profits when the product reaches the
saturation stage it introduces some new feature in product so it doesnt
reach decline and obsolescence stage.
PRODUCT MIX
1. POTATO MASALA WAFERS
2. POTATO SALTED WAFERS
3. TOMATO MASTI
4. CHAT CHASKA
5. BANANA MARI WAFERS
6. BANANA MASALA WAFERS
7. FARALI CHEVDO
8. CHANA DAL
9. MUNG DAL
10. MASALA PEAS
11. SHING BHUJIA
12. RATLAMI SEV
13. ALOO SEV
14. TIKHA MITHA MIX
15. KHATTA MITHA MIX
CHRIST COLLEGE, RAJKOT
54
55
MARKET RESEARCH
Market research under customer-oriented marketing
philosophy can offer current, adequate and accurate information about
potential buyers and all other aspects of market environment such as
dealers needs and preferences, consumer expectation competition,
marketing conditions, etc. it is through marketing research that an
enterprise plans the appropriate marketing strategies and implements
the marketing concept, and takes a scientific approach to marketing
management. Marketing research is field of experts, requiring special
training.
There are the burning problems in front of marketing
executive marketing research helps in gathering the useful information
in this regard. Marketing research is very useful to the organization
because based on facts, decision can be taken promptly.
At BALAJI WAFERS PVT. LTD. produces and deals with
domestic good there is no large scope for market research. The company
carries with it a wide range of customers. The company does its market
research by asking the customers if any change in the quality of product
is required or any new products are required by the customers.
MARKETING SEGMENTATION
Market segmentation is method for achieving for achieving
maximum market response from limited marketing resources by
recognizing differences in the response characteristics of various parts
of the market. In a sense, market segmentation is the strategy of divide
and conquer i.e. dividing market in order to conquer them.
CHRIST COLLEGE, RAJKOT
56
PRODUCT WISE:
PRICING POLICY
Pricing decisions have strategic importance enterprise.
Pricing governs the very flexibility of any marketing programmes
because its the only element in a marketing mix accounting for demand
and sales revenue. Other element in a marketing mix accounting for
57
demand and sales revenue. Other elements cost factors. Price is the only
variable factor determining into prominence in many pricing decisions.
We now come to the most absorbing question of pricing.
In BALAJI WAFERS PVT LTD. There proper process in
deciding the price of any product.
Before deciding the price of any product the company has
to consider many factors. The company has to see various factors like
raw material rates, cost of the die prepared to produce the product,
number of components involved in the product, etc..
After considering all these factors the company decides a
competitive price, which will help them to compete with the
competitors.
PROMOTION MIX
Promotion is the process of marketing communication to
inform, persuade, remind and influence consumers or users in favour of
your product or service.
Promotion is a form of communication with a additional
element of persuasion to accept ideas, products and services and hence
persuasion communication becomes the heart of promotion. In essence,
promotion is the spark plug of our marketing mix and an important
marketing strategy. People must know that right product at the right
58
CHANNEL OF DISTRIBUTION
Channel of distribution can be defined as The marketing
process in which the good and services are transferred from producers
to consumers.
Distribution means to distribute, or spread in the field of
marketing. Channel of distribution indicates roots or pathways through
which goods or services flows from producers to consumers.
The entire function of getting foods into the hands of the
customers is often referred to as distribution. The middle man engaged
in moving goods from the place of production to the place of
consumption goods are moved to the desired place through the channel.
In other words, the root by which goods move from the place of
consumption is termed as channel of distribution.
59
COMPETITORS
Today world is full of competitions. It is very difficult to
survive in this competitive world. To survive in this competitive world,
the company should try to satisfy the needs of the consumers by
providing Good and services at reasonable cost. The company cant
compromise with its quality of goods.
As there is competition in the market it is very important
for the company to satisfy its consumer to the fullest and to live up to
their expectations.
BALAJI WAFERS PVT. LTD; also has many competitions
in the market. Competitors of BALAJI WAFERS PVT. LTD.,. Are as
follows:
RUFFLES LAYS
EVEREST WAFERS
ATOP WAFERS
SAMRAT NAMKEEN
SHAKTI WAFERS
CHRIST COLLEGE, RAJKOT
60
61
EXPORTS
International trade consists of two part i.e. import trade
and export trade. In export trade goods are sold from the producers
country to any other country.
International market hold when reputation and quality of
company is good and main affection factor is price. In this company
they do not have exports.
62
FINANCE DEPARTMENT
CONTENTS
SR NO.
PARTICULARS
INTRODUCTION
ORGANISATIONAL
STRUCTURE
FINANCIAL PLANNING
SOURCES OF FINANCES
CAPITAL BUDGETING
PAGE NO.
63
WORKING C APITAL
MANAGEMENT
RATIO ANALYSIS
LEVERAGE
10
INTRODUCTION
Finance holds the key of all activities the path of success is
greased with money. Money is an arm or a leg; you either use it or loose
it
Financing is the process of organising the flow of funds so
that a business can carry out its objectives in the most efficient manner
and meet its obligations in the most efficient manner and meet its
obligations as they fall due.
Finance guides and regulates investments decision and
expenditure. To get the best out of the available funds is the major task
of finance manager. Finance is the common denominator of the vast
range of corporate objectives and the major part of any corporate plan
must be expressed in the financial terms.
Finance management today is recognised as the most
important branch of business administration. Finance management
provides the best guide for the future resources allocation by a firm.
64
ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS
MANAGING DIRECTOR
FINANCE MANAGER
CHIEF ACCOUNTANT
65
FINANCIAL PLANNING
One of the most important functions of finance manager is
that of planning. Financial planning is essentially concerned with
judicious procurement and profitable use of funds a use which is
determined by realistic inventories decisions. Financial planning helps
management to avoid waste by providing policies and procedures which
make possible a closer co ordination between various functions of the
business enterprise. Financial planning is responsibility of top level
management.
Finance guides and regulates investments decision and
expenditure. To et the best out of the available funds is the major task of
finance manager. Finance is common denominator for the vast range of
corporate objectives and major part of any corporate plan must be
expressed in the financial terms.
BALAJI WAFERS PVT. LTD. Does a systematic financial
planning.
25% to 50% of finance is provided the company first
decides the project and then the finance is procured from banks.
66
SOURCES OF FINANCES
A financial plan has to be prepared for the purpose
estimating short term and long term needs of finance to company.
Capitalisation is the sum total of all kinds of long term securities as well
as surplus which are not mean for distribution. The amount of capital at
any time should not exceed not should be less than the amount required
in both the situation company will be the loser.
Capitalisation means the total amount of a company capital
of total volume of its capital stock. In other words, we can say that the
capitalisation means the total borrowed capital and ownership capital of
the firm. If the resource funds and retained profit increases with growth
of company it means capitalisation of the company is increasing.
BALAJI WAFERS PVT. LTD. sees to it that it collects
optimum capital. Its share capital of Rs. 42,38,000. And also has
borrowed capital of secured loans of Rs. 4,21,22,828.
67
CAPITAL STRUCTURE
Capital structure is sometime known as the financial plan.
Its the permanent financing of the firm represented by long term share
capital by equity share and preference shares.
In capital structure the proportion of the capital is to decide
with regard to use of debt and equity. The requisition of proportion
arises because if company issues only ownership capital then it cant
satisfy the main objective i.e. to maximize the shareholders return and
if the company issues more borrowed capital then it has to pay
compulsory interest and thus it reduces shareholders capital.
Thus the mixture of debt and equity is called capital
structure.
`BALAJI WAFERS PVT. LTD. has its capital structure as under:
OWNERSHIP CAPITAL:Equity shares: - Rs. 42,38,000
Reserves and surplus:- Rs. 1 96 87 350
68
CAPITAL BUDGETING
Fixed capital is along term investments i.e. for more than 1
year or the years as till the company exists, some fixed assets are not
expected be sold in the market by the firm. Fixed capital has fixed cast
because it is long term investment. It must be managed properly and
efficiently other wise; it may prove dangerous for survival of the firm.
Thus, for the acquisition of the fixed capital proper care should be
taken. They must be utilized and managed with efficiency so that the
firm can get benefits from it.
For BALAJI WAFERS PVT. LTD. the main sources of fixed
capital are equity share. To maintain appropriate fixed capital the
company follows various measures. The company maintains the
liquidity. Excess loans take from the bank is repaid. Fixed capital is
mainly required for the fixed assets like machineries, land and building
and other assets. Following are the cost of foxed assts of BALAJI
WAFERS PVT LTD.
Assets: PARTICULARS
GROSS BLOCK
LESS: DEPR:
YEAR 2005
4 32 70 399
92 76 099
CHRIST COLLEGE, RAJKOT
Rs. 33 86 085
YEAR 2006
5 58 14 394
1 54 77 755
69
NET BLOCK
3 39 94 300
4 03 36 638
70
RECEIVABLES MANAGEMENTS
Receivable are assets which created as a result of the sale of
good & services in the ordinary course of business. These are known
asaccount receivables, trade receivable or customer receivables. A firm,
therefore, carries receivable for is customers for some period, which
depends upon the requirement of customers at one end and the credit
sanctioning capacity of the firm at the other. An analytical framework
has been developed to provide insight into the process of the creation the
main determinants of account receivable. The framework should be
useful for decision making purposes and managerial functions in the
areas of accounts,.
For BALAJI WAFERS PVT LTD. The main source of he
receivables are bill receivable and debtors. The debtors are informed
one day before the due date about their payment.
If any debtor pays the amount before the due date then he is
given discount on payment which encourages the customer to make
early payments.
71
CASH MANAGEMENT
The basic mechanism involving conversion of funds into
saleable products and back into liquid form which is very important in
the business. Cash in its ultimate state yield no return and as such is
barren.
Cash is the beginning as well the end of the operating cycle
of manufacturing concern. It the basic input need to keep the business
running on continuing basis and is also the ultimate out put expected to
be realized by selling the product. The cash balanced of company is a
safety valve or shock absorber. Protecting the company against short
run fluctuations in fund requirements.
BALAJI WAFERS PVT LTD. maintains cash in an
appropriate manner. The company always monitors the bank account
regularly and funds are kept in banks. This helps he company to keep
appropriate amount of cash with them.
72
73
RATIO ANALYSIS
Ratio analysis is an expression of quantitative relationship
between two numbers.
Five types of ratio analysis are given below;
a. current ratio
b. liquid ratio
c. debt equity ratio
d. total assets ratio
e. net profit ratio
current ratio:
current assets / current liabilities = 21552423 / 11563647
= 1.86
Liquid ratio:
Liquid assets/ liquid liabilities = 1949762/9197358
= 0.21
Debt equity ratio;
Equity capital/borrowed capital = 43122828/4238000
= 10.16
Total assets ratio:
Sales/total assets = 235800000/48564907
= 4.86
Net profit ratio:
Net profits/sales * 100
= 12200000/235800000*100
=5%
74
LEVERAGE
The employment o an asset or source of funds for which the
firm has to pay a fixed cost or fixed return may be termed as leverage.
The earnings available to the shareholders as also the risk are affected.
If earnings less the variable costs exceeds the fixed cost or earnings
before interest and taxes exceed the fixed return requirement, the
leverage is called favourable which they do not, the result is
unfavourableleverage.
2. FINANCIAL LEVERAGE:
It may be defined as the firms ability to use fixed operating
cost to magnify the effects of changes in sales in earnings
before interest and taxes.
2. OPERATIONAL LEVERAGE:
It is defined as the ability of the firm to use fixed financial
changes in EBIT on the firms earning per share.
75
76
SWOT ANALYSIS
SWOT analysis means analysis of STRENGTH, WEAKNESS,
OPPORTUNITIES AND THREATS.
It is important for every company to analyse their SWOT.
Because this gives a complete picture of he performance of the company.
The company comes to know where its has room for improvement in
which area it has its mastery, what are the opportunities which it has to
grab and what are the threats that it has to face in near future.
BALAJI WAFERS PVT. LTD. Has done its SWOT analysis
as follows:STRENGTHS:
1. strength of BALAJI WAFERS PVT. LTD. is good quality
products, regular and on time supply of goods and customer
satisfaction at competitive prices.
2. Excellent management for raw material and dispersion.
3. Large market share.
4. huge amt of capital
5. proper pricing
WEAKNESS:
1. This unit does not have any major weakness. Some of minor
weaknesses are lack of internal co ordination and employees
turnover rate is more.
OPPORTUNITIES:1. Expansion in inaccessible areas
2. growing market in area around the globe.
THREATS:1. Increasing global competition.
2. loss of market share.
77
FUTURE PLANS
Future plans of BALAJI WAFERS PVT LTD. Are as follows
1.
2.
3.
4.
SUGGESTIONS
78
CONCLUSIONS
79
BIBLIOGRAPHY
80
81