Report on:-

A PROJECT SUBMITTED
TO BHAVNAGAR UNIVERSITY OF BHAVNAGAR
IN PRACTICAL FULFILMENT OF
THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTARTION

PREPARED BY GUIDED BY
DHAVAL K. DHRANGADHARIYA Miss. DHRUTI PANDYA
S.Y B.B.A LECTURER:- DHRUTI PANDYA
ROLL NO: 246

BATCH: 2008-2011
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 C A N D I D A T E ’S S TA T E M E N T

My self DHAVAL K. DHRANGADHARIYA, the

student of S.Y. B.B.A. here by declare that the project
work presented in this report is my own work and I
have completed it under the guidance of Miss.
DHRUTI PANDYA of “SWAMI SAHJANAND COLLEGE OF
COMMERCE & MANAGEMENT – BHAVNAGAR”.

BHAVNAGAR
DATE:

SIGNATURE:

Full Name: DHAVAL K. DHRANGADHARIYA

Principal

-----------
---
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 PREFACE

B havnagar University has started certificate course in administration

called B.B.A (Bachelor of Business Administration) for the purpose of

knowledge about business. So, I have taken the industrial training of
NAVBHARAT STEEL RE - ROLLING MILL and take the practical knowledge of
business and as give us training in the company I have made report/project as per
my knowledge.

Management studies are like a coin, which has two sides, one is theoretical
knowledge and other is practical knowledge. A classroom teaching gives the
theoretical knowledge while industrial training gives an opportunity to take
knowledge of practical aspects. In this era of globalization where every moment
the world is moving one-step ahead, so for a management student practical
knowledge has become a key to success.

According to our syllabus prescribed by BHAVNAGAR UNIVERCITY, I

have finished my practical study. With a great zeal and gaiety, I put this report
before you. I have presented information of four subjects according to S.Y.B.B.A.
syllabus. This report is reflecting of which I understood and studied in this report
and how I collected the information. I have tried my level best to present
information regarding NAVBHARAT STEEL RE - ROLLING MILL.

For this purpose I had visited “NAVBHARAT STEEL RE - ROLLING MILL”

at Sihor, near Bhavnagar.
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 ACKNOWLEDGEMENT

I am very glad here to submit my project report. I have presented a report on

STEEL RE-ROLLR MILL industry and I have put my best efforts to prepare it
in a realistic manner and include all necessary information, which can give a clear
picture of STEEL RE-ROLLING industry management.

I am very thankful to all the senior executives and other staff members of
NAVBHARAT STEEL RE - ROLLING MILL to give me very well support, co-
operation and help me with whatever was needed in my project.

And how can I forget my respective principal Miss. Shilpamadam Bhatt and
our project guider Miss. DHRUTI PANDYA of “Swami Sahajanand College of
Commerce and Management” to provide us with this very important training,
which develops management skill in us.

I hope this report will give a realistic and clear picture of STEEL RE-
ROLLING industry management. Thanks once again to everyone who has directly
or indirectly helped me through this training and prepare this report.

NAME: DHRANGADHARIYA DHAVAL K.

CLASS: S.Y.B.B.A.

ROLL NO: 246 (TWO FOUR SIX)

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 Content

SR NO. PARTICULAR PAGE NO

GENERAL
1 6
INFORMATION

HUMAN RESORCE
2 22
MANAGEMENT

MARKETING
3 43
MANAGEMENT
FINANCE
4 55
MANAGEMENT
5 BIBLIOGRAPHY 73
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7
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 Content
SR. PAGE
PARTICULAR
No. No.

1 INTRODUCTION 8

2 History And Development 9

3 Profile of the company 10

4 Size of the unit 11

5 Form of the organization 12

6 Manufacturing products 14

7 Manufacturing process 15

8 Organization structure 18

10 Time keeping system 20

11 Employee Service 21

INTRODUCTION
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I have completed my industrial training in NAVBHARAT STEEL RE
-ROLLINGS MILL for the practical knowledge as part of management and
general information of the industry, in that HUMAN RESORCE MANAGEMENT,
MARKETING MANAGEMENT, FINANCE MANAGEMENT & BIBLIOGRAPHY.

NAVABHARAT STEEL RE - ROLLING MILL has improved its goodwill by

increasing quality of products. NAVBHARAT STEEL RE - ROLLINGS MILL is one
of the fastest growing and Moving Consumer Goods (FMCG) & Over the Counter
(OTC) product manufacturing company in market. It has also given tough
competition on local market as well as in state market. NAVBHARAT STEEL RE -
ROLLING MILL products are sold under highly competitive conditions. It offer
handsome returns to their distributors & stockiest with grace.

A Rolling Mill is a machine for factory shaping steel by passing it between

ROLLING. This company’s product is used by infrastructure development and
engineering unit which is initials above the development of any of the nation for
economical development. So, it is clear that the unit have bright future.

The company manufactures these products that are as under,


M.S.FLAT BAR


M.S.ANGLE BAR

 M.S. ROUND BAR

 M.S. SQUARE BAR 
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 HISTORY & DEVELOPMENT OF THE UNIT

N AVBHARAT STEEL RE - ROLLING MILL Established in the year 1994

having the purpose to manufacturing various products of steel bars. The
production of the company has started with the help of single rolling mill is that
with 7 stands with and also with well furnished.

Than, in the year, 1999-2000 company has installed another set of

machinery with further develop with the production of M.S. Angle, M.S. Flat,
Square and Round Bar and also produce various sizes bars like 6, 8, 10, 12, and
16. Initially production of the unit was 4000 increased capacity the company has
got ISI mark and ISO 9001-2000 certificates.
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 PROFILE OF THE COMPANY
The NAVBHARAT STEEL RE ROLLING MILL, the main & register
office is in Bhavnagar. This unit has not separate zonal office.

NAME NAVBHARAT STEEL RE-ROLLING MILL

SURVEY NO. 268/1
ADDRESS RAJKOT- BHAVNAGAR HIGHWAY
FACTORY SIHOR – 364 240
DIST. BHAVNAGAR (Guj.)
12, SAGARDEEP
ADDRESS OFFICE LOKHAND BAZAR
BHAVNAGAR. – 364001

MANAGING
BHAGIRATHSINH SARVAIYA
DIRECTOR
PRODUCTION
AJAYSINH
HEAD
BANKER STATE BANK OF SAURASTRA
PHONE NO. (O)3014758,3014241 (W)(02846)223283
ACCOUNTING
1-APRIL TO 31-MARCH
YEAR
WEB SITE
WWW.NAVBHARATSTEELRE-ROLLING.ORG

E-MAIL ADDRESS NAVBHARATSTEEL@GMAIL.COM

COMPANY LOGO

QUALITY
BECHMARK
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 SIZE OF THE UNIT & FORM OF THE
ORGANIZATION

Size of the unit means, how much the investment of company and how
much the turnover is. According to Indian government rules or say policy, this is
recognizing by the government.

There are mainly 3 types (scale) of industries:

1. SMALL SCALE: - Investment is up to Rs. 100lakh.

2. MEDIUM SCALE: - Investment is between Rs. 100lakh - 150lakh.

3. LARGE SCALE: - Investment is more than Rs. 150lakh.

According to Indian government rules NAVBHARAT STEEL RE ROLLING

MILL is small-scale industry, because the investment is more than Rs.100lakh.

SCALE

Small Scale Medium Scale Big or Large Scale

Industry Industry Industry

Total investments up Investment is Investment is

to Rs. 100 Lakh Between Rs. 100 more than 150
Lakh to 150 Lakh Lakh
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 FORM OF ORGANISATION

There are various types of organization structures are as under.

 Sole Proprietorship :- ‘‘Sole proprietorship is form of business

organisation in which an Individual introduces his own capital. Uses
his own skill and intelligence in the management of its affairs and is
solely responsible for the results of its Operation.’’

 Partnership:- The relation between people who has agreed to share

profits of a Business carried on by all or any of them acting for all.

 Joint Stock Company:- Legally the joint stock company is an artificial

person created for Carrying of some business by an association of
persons. It assets that a Company has a legal entity of its own in the
sense that it has powers and Characteristics determined by the
provisions of law and conversions of Law and a constitution framed in
accordance with them.

 Co-operative Organization :- Minimum 2 & Maximum 10

 Government department( Public Enterprises) :- Public undertaking

that is directly under the control of the minister

 Public Corporation :- Public corporation is a form of organization

especially established for public welfare.

 Government Company:- Gov. Company is a company where in 51%

of shares held by the Central Government and a State Government
jointly.
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 Form of organizations means whether the company is Sole Proprietor Firm
or Partnership Firm. Here NAVBHARAT STEEL RE ROLLING MILL is a
Partnership Firm. The reason to choose the Partnership Firm is the investment; is
not to be done by only the single person and also an idea is not of the one
person.

According to Indian Partnership Act 1932, “When two or more persons

make an Agreement to start a business & share profits & loss of the business can
stated as Partnership Firm.”

As NAVBHARAT STEEL RE ROLLING MILL is a Partnership Firm it

produces so many products and it is not possible in Sole Proprietor Unit.

CHART

FORM

Sole Partnership Co-Operative

Private Limited Public Sector
Proprietorship Company Unit

Only One Minimum 2 & Minimum 2 & Minimum 2 & Minimum 2 &
Owner Maximum 20 Maximum 10 Maximum 50 Maximum 100
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 MANUFACTURING PRODUCTS

NAVBHARAT STEEL RE ROLLING MILL producing main four types of

bars M.S. Angle, M.S. Flat, M.S. Square & M.S. Round bar this is in various size
produced by the company.

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 MANUFACTURING PROCESS

N AVBHARAT STEEL RE - ROLLING MILL Pvt. Ltd. are produce so many

products like M.S. Angle bar, M.S. Flat bar, M.S. Round bar & M.S.
Square bar etc… the process of manufacture steel by RE-ROLLING MILL is
understand very deep and stage wise explain as below.

(1) Purchase Raw Material

(2) Cut the plat

(3) Give hit at high temperature

(4) Passing the rolling

(5) Packing

(1) Purchasing Raw Materials:-

The basic requirement is purchasing raw material for manufacturing the

products. The basic raw material is M.S. Billets, M.S. Ingots, M.S. Bar
IS: 2830 is over basic raw material.

(2) Cut Plates :-

Purchased raw materials have been cut in the required size and weight. If it
has not being cut in the fixed size then the out put of bar is not match to
desired size if we are going to sale that product then no any value of it. Hence,
in market accuracy of size of bar must be required.

(3) Furnace the Plates :-

That cut plates are heated up to the required

temperature in chamber running by lignite coal. From the
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 hot metal, that is easy to make bar by rolling. We can give easily shape to the
bar from metal alloy.

(4) Passing into Rolling :-

The hot metal is then entered into rolling stand where

rolls are fitted according to the required size and type of

the final product.

(5) Packing :-

After passing through the six rolls which are fitted in the rolling
mill established accordingly we get the required size of final
product. After that final product has been prepared as the
workers take the weight and cut that bar in accurate size and
weight, after that the workers are going to pack the product for selling to the
retailer. They paint any of the colour at the bottom and tide up a strip of company
looking like a tag to give attractive look. This is the marketing scheme.

Moreover it is note that this process is carried out under supervision of

three experienced persons. The entire process is being repeated in the same time
table.

This process has been shown in the chart. So, this can be easily
understood.
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CHART OF MANUFCTURING PROCESS

PURCHASING RAW MATERIAL

(M.S. Billets/ M.S. Ingots, M.S.
Bars)

Breaking Plates in Required Size

Pieces of billets & Ingots heated in furnace at required

temperature

Hot pieces of Metal entered in to rolling mill

stand

After passing hot pieces of metal through

rolling mill stand

For Achieving Final Product &

Packing
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 ORGANIZATION STRUCTURE

G enerally, the organization structure mainly depends upon the size & the
form of the company. The organization structure of NAVBHARAT STEEL
RE - ROLLING Mill’s organization structure is very good. The NAVBHARAT
STEEL RE ROLLING MILL Organization structure is divided into three levels.

 Top level

 Middle level

 Lower level

ORGANISATION CHART

TOP
LEVEL

MIDDLE
LEVEL

BOTTOM LEVEL
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 TOP LEVEL:
LEVEL

TOP LEVEL MANAGEMENT mainly consists of Board Of Director, Chief

Executive, Managing Director Etc... They manage the whole business unit & take
decision about right policy, business promotion, legal provision & all liabilities of a
business unit. They also look after Human Resource Management, Marketing
Management as well as Finance Management of company.

In NAVBHARAT STEEL RE-ROLLING MILL Company in Top Level

Bhagirathsinh G. Sarvaiya. He is director of the company.

MIDDEL LEVEL:
LEVEL

MIDDLE LEVEL MANAGEMENT is the link between the Top Management

& The Lower Management. It consists of function like production, sales account &
personnel officers. They are experts of specific field and try to accomplish work by
preparing programs for different section.

In NAVBHARAT STEEL RE ROLLING MILL, the Middle Level

Management consists of finance head, production head, and sales representative.

LOWER LEVEL:

Generally, BOTTOM LEVEL MANAGEMENT of Jobbers, Workers,

Foreman etc...These people are important to the company as they are persons
who produce the different products of the company, which the company producing
on the Large Scale.
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 In NAVBHARAT STEEL RE ROLLING MILL industry, the Bottom Level
consists of many workers who take the guidelines from Middle Level, who is
instructed by the Top Level. The following chart shows the organization structure
of the company.

TIME KEEPING SYSTEM

Time keeping system is very important for each and every person
organized for any small or large scale unit. It is basic requirement
of all units. If we want to be success in our business we need to
be very time punctual system. The organization can obtain there
goal if they are working in a time system set by the firm.

Time is very important in business and also our life one times its goes than
they never return. In the same way NAVBHARAT STEEL RE ROLLING MILL is
very strict in this matter. The manager director of the unit is very conscious that he
reaches in time. So, its employees and workers needs to reach at firm in time or
before time but should not be late. The unit has been runner in a single shift only
but if the demand of product is increased and if they are to be sent earlier than
they go for two shift also. The regular shift is only one shift and the time is 10:00
P.M. To 6:00A.M.

It does not allow to workers, visitors or trainees to enter without the

permission of higher authority and they keep attendance register for the record of
its employees. The employees have to signed into that register when they enter in
NAVBHARAT STEEL RE ROLLING MILL and when they leave the unit.

The attendance register has been checked by the manager and it any loop
poles are there they are rectified and checked upon.
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 EMPLOYEE SERVICES

I n any industry, employees plays an important role for running business

successfully. It is a well known proverb or also well provides that “If you
manage your employees, employees will manage your firm”. Employees work in
lower level management, but if they are not in business then company are not
going to produce any product. It is, therefore necessary for manager to give much
attention to the employee. The management should provide better service to the
employees. If employees work better and do more work in the company their
efficiency and morale become high. The Company has to provide various types of
services to their employees. If a manager gives much attention on employees
they will give fully attention in the business and the result is the more profitability
as business increases.

Employee services means to take care of the employees. if we see the

most of entrepreneur’s history, who achieves the success they take care of their
employees for E.g. Dhirubhai Ambani used to meet all their employee & ask them
about improvemnent so that all his employee would feel good & part of his
business.

NAVBHARAT STEEL RE - ROLLING MILL Give various benefits provided

to the workers for their welfare. There are no fixed uniform for workers. During
special occasion and festival, the workers are provided with a lump sum of
money.

 The company is providing facilities for first-aid and medical services.

 The company is also take insurance of every employee.

 If in any case any employee needs drawings company provide it.

 Company also provides provident facility.

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 On Diwali festival they distribute sweets to all the employees.

 On Uttrayan festival they distribute threat and kites to the employees.

 Company also gives tea coupon in certain limits.

 They give extra bonus to some worker’s if they had done a good work.

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 CONTENT
PAGE
SR NO. PARTICULAR
NO.
(1) INTRODUCTION 24
DEFINITION OF HUMAN RESOURCE
(2) 25
MANAGEMENT
ORGANIZATION OF HUMAN
(3) 26
RESOURCE MANAGEMENT
(4) RECRUITMENT AND SELECTION 27
(5) TRAINING AND DEVELOPMENT 30
(6) JOB DESCRIPTION 31
(7) PROMOTION & TRANSFER POLICIES 32
(8) PERFORMANCE APPRAISAL SYSTEM 34
(9) WAGES & SALARY 35
(10) WORKING OF E.S.I SCHEME 37
(11) PROVIDENT FUND SCHEME 38
GRIEVIENCE HANDLING AT
(12) 39
NAVBHARAT STEEL RE-ROLLING MILL
COLLECTION BARGEINING &
(13) 40
AGREEMENT
(14) TRADE UNION 41
(15) PERSONNEL RECORD 42
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 INTRODUCTION

H uman Resource Management is process of bringing people and

Organization together it tries to secure the best people from group of
people by winning their whole hearted for co-operation. In short, it may be define
as the art of developing and maintaining competent work force to achieve the goal
of an Organization in an effective manner.

Now a day for any company, it is important that personnel department

should effectively developed. Effective development of personnel department
helps the organization to accomplish the goal of the unit and its success. Without
co-operation of the people achieve met of goal cannot be done. Personnel
department deals with the planning organizing directing and controlling the human
resource.

There is a famous proverb that “MIND YOUR MEN AND MEN WILL MIND
ALL OTHER THINGS”.

For getting the best out of people they must be managed well. This is
where human resource management (managers) plays at critical role in bringing
gaps between employee expectations and organizational needs by adopting
appropriate human resource strategies and practices.

NAVBHARAT STEEL RE ROLLING MILL is havening a human resource

department in which the manager tries to understand the problem of the
employees. It tries to motivate its employees to work in a better way and with full
energy. They try to maintain unity with the employees.
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 DEFINITION OF HUMAN RESOURCE
MANAGEMENT:

A ccording to Decenzo and Robbins, “HRM is concerned with the people

dimension in management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. This is true,
regardless of the type of organization government, business, education, health
recreation or social action.”

“Human resource management is a management function concerned with

hiring, motivating, and maintaining people in an organization.”

“Human resource management is a process which brings people and

organizations together so that the goal of each one is met effectively and
efficiently.”
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 ORGANIZATION OF PERSONNEL DEPARTMENT

P ersonnel management is concerned with people at work and their

relationships with each other. It may be defined as a set of programs,
functions and activities designed to maximize both personnel and organizational
goals. It ensures that the organization attracts and hires qualified, imaginative and
competent people. It involves the establishment of various policies to deal with
employees and to retain them. To this end, it lays out the rules regarding working
conditions, designs appropriate compensation plans, and strengthens employer
employee relations.

“Organization is a group of people working together co operatively under

authority towards achieving goals and objectives that mutually benefit the
employees and the organization.”

In the NAVBHARAT STEEL RE ROLLING MILL they have well organized

personnel department. Their organization is functional type and well the decisions
in formations come from upper level. It means top to bottom. It can be under
stand by the chart.

MANAGING DIRECTOR

PRODUCTION SALES PERSONNEL ACCOUNTANT

MANAGER MANAGER MANAGER

PERSONAL
ASSISTANT
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 RECRUITMENT AND SELECTION PROCESS

Recruitment, selection and induction are very important part of the human
resource management.

Recruitment:-
“Recruitment is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measure for
attracting that man power in adequate number to facilitate effective selection of an
efficient working force.”

No fix qualification is required for the recruitment of the workers, because

generally physical labour work is carried out by them.

Recruitment has been regarded as the most important function of the

personnel administration, because if a right people is not selected than also the
firm will not be able achieve their goals or target.

Managerial work is carried out by the supervisor, assistance and the

management directors and to some extent by the executive director. so the
supervisor is recruited by the managing director itself.

NAVBHARAT STEEL RE ROLLING MILL has to recruit other persons

through following reasons:

1. If somebody recommends or obliges anyone then he is recruited

2. If a person has special skills for the job then he is recruited.

3. If employees believe that there will be a shortage of employees in

Future they will recruit employees in advance.

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
Selection:-

Selection is a negative process. It is of the process of differentiating

application in order to identify those with greater likelihood of success in a job.

It is related with securing relevant information about an applicant. Selection

is a process of determining the qualifications, experience, and knowledge
creativity decisiveness for the particular job.

In NAVBHARAT STEEL RE ROLLING MILL the selection and recruitment

is done internally hence they do not have to give any advertisement in the news
paper and also there is no chance for calling people from outside.

In NAVBHARAT STEEL RE ROLLING MILL selection process is as follow:

(1) First to all they take those people who are in contact with NAVBHARAT
STEEL RE - ROLLING MILL employees and mostly the children’s of
employees are taken.

(2) The selection committee will take their personal interviews and if they
pass the final interviews will be taken.

(3) They see their qualification, age, eligibility etc…

(4) Then the selected person will be given his joining date and his time and
his work will be showed.
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 Induction:-
In simple word induction means introduction the new employees are given
general information about the management and the work to be undertaken by
him. In other word induction means when a new employee is been employed than
he has been awareness about his work and rules and regulation.

In NAVBHARAT STEEL RE ROLLING MILL the head of the department

does the induction program. He shows the new employee his job specification its
duties and responsibilities. The supervisor is given the authority to help the
employee and teach him his work with cool and mind and he tries to motivate the
new employee to achieve the targeted goal of the firm.

In the introduction general information rules his work job description are
given to the workers. The new employees are made familiar with other
employee’s supervisor his superior subordinate etc.
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 TRAINING AND MANAGEMENT DEVELOPMENT

T he newly recruited employee needs training and some basic information

about his work. It is a process of teaching the new and present
employees. The basic skill they needs to effectively perform the job it is the
process that tries to improve skills or add to the existing levels of knowledge so
that employees is better equipped to do his present job or a higher level job. It is a
learning process and experience that seeks a relatively permanent change in an
individual that will improve his order ability to do the work.

Training is a short term process utilizing a systematic and organized

procedure by which non-managerial personnel acquire technical knowledge and
skills for a definite purpose. It is for a short duration, and is for a specific job
related purpose.

While development is long-term educational process utilizing a system and

organized procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose.

Definition of Training:-

“Training is the systematic modification of behavior through learning which

occurs as a result of education, instruction, development and planned
experience.”
(Micheal Armstrong)

In the same way NAVBHARAT STEEL RE ROLLING MILL gives training to

the new recruited people and tries to explain their work in a very easy way. The
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new employees are given training under the higher authority people who have
experienced and knowledge.

JOB DESCRIPTION

J ob description provide both organizational information means location,

structure, authority and functional organization/information means what the
work is job description describe job not job holders. Job description is not an
assessment, it provides an important base for establishing assessment standard
and activities and objectives.

Job description mainly related with management level only. With the help
of job description the managers can get information about job title, range,
department, job duty, reports submitting, location of job, objectives of job, job
responsibility, authority or limitation of decisions, job environment etc…

It is the written statement. The objective of a job the work to be performs

the skills to be needed responsibility to be involving the relationship of the job to
the other job etc…

Definition of Job Description

A job description is a broad statement of a purpose, scope, duties and

responsibilities of a particular job. Job description is the written summary of the
given job, of the various rights, responsibilities and organization relation. Job
description defines job division, duties and responsibilities which help to keep
away the specific job to other job.

In NAVBHARAT STEEL RE ROLLING MILL Company they have a

completely written document of job description and perfect implementation also.
Therefore work for the manager is being very easy and comfortable.
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 PROMOTION & TRANSFER POLICY

(A) Promotion :-

Promotion is the way to motive an employee but this motivation must be on

certain strong base. The basic criteria on which employees are promoted are as
under.

 It consider seniority of employee

 Qualification opinion

 Supervisor’s opinion towards employee

 Performance of employee

 Extra efforts of work

The term promotion may be explaining an up word advancement of an

employee in an organization to another job which commands better pay, better
status, and higher opportunity, responsibility, and authority better working
environment hour’s rank.

In NAVBHARAT STEEL RE ROLLING MILL there is the policy to give

promotion on the basis of performance & experience. The organization believes
that efficiency of the employee increase along with time and experience. At the
same time quality of work and performance approved is also taken into
consideration. In the company worker has promotion to increment salary bases so
he do work efficient way.
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(B) Transfer :-

A transfer is a horizontal of lateral movement of an employment from one

job, department shift plant of position to another at the same or another place
where his salary status and responsibility are the same.

Transfer is the movement of employee from position to other. Usually

involving and marked change is the duties responsibilities skill needed or
compensation.

In NAVBHARAT STEEL RE ROLLING MILL there is no transfer policy in

the unit as it is only one production site so there is no question of transferring
employee. Some employee transfer internally For E.G.:- from one department to
other. This is also when some adjustment is to be done regarding the running of
some equipment or adjust the employee who are on leave or are absent.

(C) Demotion :-

Demotion refers to the lowering down the studies, salary and

responsibilities of and employee. It is used as a measure where there are
services branches of duty on the part of an employee when if is after a preliminary
to a dismiss it defines as “The assignment of an individual to a bob of cover rank
and day usually involving lower level of difficulties and responsibilities.”

In NAVBHARAT STEEL RE ROLLING MILL recruitment and selection are

done very carefully and promotion is also given after same measurement so there
is no caution of demotion. In this industry demotion is happened in very rare case.
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 PERFORMANCE APPRAISAL SYSTEM

T o appraise is to asset the work or value in the content of individual

organization. Performance appraisal is the systematic evaluation of
personnel by the supervisor of those familiar with their performance appraisal is
the systematic way of judgment the relative work of an employee in performing
their task performance appraisal has many different dimensions. It is the feedback
process as well as an emotion process.

NAVBHARAT STEEL RE ROLLING MILL performance appraisal system

which helps its employees to overcome some times they are given bonus or some
token for their good performance.

The procedure for performance appraisal is as follows:

Established performance standard

Communication of performance expectations to employees

Measures actual performance

Compare actual performance with standards

Discuss the appraisal with the employees

Initiate corrective actions

In NAVBHARAT STEEL RE - ROLLING MILL having a well managed

performance appraisal of its employee. Each and every department head is given
deviation to work discipline, quality of work, co-operation etc…
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 WAGES AND SALARY

T here is big difference in salary and wage; wage is what paid to the workers
who are employed on the contract base. While the salary is paid to the
employee of the company like, Executive Directors, Managers, and Supervisors
etc…

 WAGE:-

    Method of Wage Payment :-

 Time Wage System : - In time wage system pay the
worker wage on work time means how much time worker will
work. This wage is pay on time period so this time is a day weak,
a fortnight or a month. In the past wages have been the most
common basis and therefore it came to be known as the ‘Day
Wage System’.

 Piece wage system :- In this system pay the wage based

on the amount of work done or output of a worker. One unit of
output is considered as one piece and a specific rate of wage is
paid per piece. Greater is the number of pieces produced by a
worker, higher is his remuneration. Thus, a workman is paid in
proportion to his output. It is called payment by results.

 Balance of debt system: - This method is a combination

of time and piece wage systems. The worker is guaranteed a time
rate with an alternative piece rate. If the wages calculated at piece
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 rate exceed the time rate, the worker gets credit. On the other
hand, if time wages exceed piece wages, the worker is paid time
wage and the deficit is carried forward as debt to be reconverted
in future. This method provides a sense of security to employees.
At the same time an employee is given the opportunity to increase
his earnings beyond the guaranteed time
wage. This method is appropriate in industries where the flow is
minimums, e.g. dock workers. But rates in this method have to be
fixed on the most scientific basis.

In NAVBHARAT STEEL RE ROLLING MILL, wages and salaries are

distributed on the 5th of every month and if any employee wants salary in
advance, company’ll give advance salary in between the Date of 1 st to 15th of the
month. Time department keep watch on the each & every labour by taking regular
attendance. It is their duty to hand wage sheets. There are some rules &
regulations for wage system.


SALARY:-
At NAVBHARAT STEEL RE ROLLING MILL, personnel department of
metro office does recruitment and they give joining sheet to new employee. On
that basis P&A department at GCW give employee code number and P. S. No.
(Pay Sleep Number) After that, they enter new entry in master file, which contains
employee’s name, address, P. S. No., Department, designation, date of birth and
other information.

Time office keeps attendance of all employees on daily basis and based on
that they make monthly report about attendance. This is used in preparation of
payment sleep. Monthly they deduct 12% of P.F. and directly transfer to head
office.
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 WORKING OF E.S.I. SCHEME

E.S.I is an abbreviation of employee state insurance scheme. This is

compulsory for the company. According to the “employee stat insurance act
1948.: E.S.I scheme is applicable on those companies in which there are more
than 20 workers working according to factory act; this scheme covers those
employees who have salary less than RS.7500 per month. This scheme provides
them health and sound benefits of this scheme.

Under this scheme employees have to contribute 1.75% of their total salary
while the company contributes 4.75% of their total salary. That total amounts that
is 6.25% are sent at E.S.I. head office in Ahemdabad.
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 PROVIDENT FUND SCHEME

A ccording to provident fund act 1952,” Provident Fund means collection of

money from the salary of employees and it will be paid at the time of
retirement, disablement or any other occasion. This scheme was started in 1962
and spread in all the industries. Any company having more than so workers can
joint this scheme.”

In NAVBHARAT STEEL RE ROLLING MILL all the permanent employees

come under this scheme. Employees’ provident fund is deducted according to the
rules and regulation of the company and this amount is deposited as contribution
to provided fund in employees’ personal account. This amount is paid to
employee for any special occasion like marriage disablement or operation as a
form of loan.

The NAVBHARAT STEEL RE ROLLING MILL also follows provident fund

act. It provides the provident fund on government rules in present scenario is 12%
provident fund is given and this company is given this provident fund to its
employees.
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 GRIEVANCE HANDLING PROCEDURE

G rievance handling procedure is used to solve the disputes between

employee and employee or employer and other employer. When the
dispute arises between employees it is settled by grievance procedures.
Company uses various methods to solve the disputes.

In NAVBHARAT STEEL RE – ROLLING MILL there is no specific

treatment for the grievance. It means if the problems is occurred, the officer take
out the solution of this.
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 COLLECTIVE BARGAINING AND AGREEMENT

C ollective bargaining is the resolution of industrial problem between the

representative of employer and freely designated representative of
employees acting collectively with a minimum of government dictation. Collective
bargaining is an essential element of economic democracy is a ‘Two Party’
procedure to arrive at mutually agreed solution.

IN NAVBHARAT STEEL RE – ROLLING MILL, try to provide their level

best to fulfill worker and management. NAVBHARAT STEEL RE – ROLLING
MILL industry provides many facilities to their worker. Here the whole work is do
manual so there is on major problems create between worker and management.
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 TRADE UNION

T rade unions are voluntary organizations of employees or employers formed

to promote and protect their interest through collective action though he
terms employees and employers are used when we say trade unions. They
generally refers to employees trade union must be,

(1) A combination of workers or employers

(2) Such a combination could be permanent temporary

(3) Could include federation of two or more unions

(4) To regulate relations or among employers

In the NAVBHARAT STEEL RE ROLLING MILL relation of the staff

member workers is like family member they are only 70 to 80 workers. They work
with co-operation. So here there is no trade union.
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 PERSONNEL RECORD

A record is piece of writing or a chart which provides ready information and

which preserves evidence for feature reference or use records provides
tangible evidence of the past activities of an organization. It also provides the
information relating to various aspects of human resources of an organization viz.
wages and salary productivity social security absenteeism employee welfare, job
satisfaction etc…

In NAVBHARAT STEEL RE - ROLLING MILL personnel department

maintains a wide range of records consisting details information about each every
aspects of organization. This firm adopts computer system as well as manual
system for keeping all the data about employees.

In NAVBHARAT STEEL RE - ROLLING MILL the personnel records of all

the employees are maintain through personnel department. Such as.

 Name and addresses of employees.

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  Telephone no. Of employees.
 Name of parents.
 Date of joining.
 Designation and nature of work.
 Salary and allowances rate.
 Monthly attendance, leave and salary position.
 Service disciplinary action report.
 Remarks.

So, personnel record is a very essential part of the every organization.

Through the personnel record the management can know all the things of
employee.
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.

Content
PAGE
SR NO. PARTICULAR
NO.
(1) INTRODUCTION 45
ORGANIZATION OF MARKETING
(2) 46
DEPARTMENT
(3) PRODUCT PLANIING 47
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 (4) MARKET SEGMENTATION 48
(5) PRICING POLICIES 50
(6) CHANNELS OF DISTRIBUTION 51
(7) ADVERTISEMENT 53
(8) MARKETING RESEARCH 54

INTRODUCTION

M arketing is one of the most important parts in the management.

Marketing is done to make its product familiar to the customer.
Marketing means the creation and delivery of standard of living. It is social and
managerial process by which individuals and groups obtain what they need and
want to create after and exchanging products of value with others. It also means
working with market of actualize potential exchange for satisfying human needs
and wants.

The goal of marketing is to create customer satisfaction profitability by

building valuable relationship with important customer marketing is very essential
for all the firms whether manufacturing companies, whole seller, retailers and
other individuals.
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Definition of Marketing:-

“Marketing is the process of planning and executive the conceptions pricing,

promotion and distribution of ideas, goods and services to create exchange that
satisfy individual & organization goals.”

-As per AMA (American Marketing Association)

ORGANISATION OF MARKETING DEPARTEMENT

O rganization of marketing department defines the authorities,

responsibilities of the employee of the department. In the NAVBHARAT
STEEL RE-ROLLING MILL the head office of the marketing is in 5, city centre
Kalanala Bhavnagar. But the unit’s market is spread in the all over India. So we
can say that authority and responsibility of marketing department very high.

ORGANIZATION CHART OF MARKETING DEPARTMENT

President
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 Marketing
manager

Distributor

Dealers

PRODUCT PLANNING

P roduct planning means, “Introduce a new product in the market other word
it is adding a new product to existing line of the company.” The products
may be as per the needs and the requirements of consumers or may be
introducing due to a technological and development new product developments. A
new product development is different from product innovation or product
modification. In any company they follow customer oriented product planning
process union is as follow

1) Idea generation
2) Idea screening
3) Concept testing
4) Business analysis and market share analysis
5) Actual development of new product
6) Test marketing
7) Commercialization

Every unit requires some sort of planning for their product. In NAVBHARAT
STEEL RE-ROLLING MIL. they use following parameters.
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 1) Market survey
2) Quality of product
3) Market research
4) Study of competitor’s and competitor’s product
5) Market testing
6) Satisfaction

MARKET SEGEMENTATION

A market segment consists of a group of customers who share a similar set

of needs and wants. There are many bases of market segmentation the four main
bases are as follow

(1) Geographic segmentation

(2) Demographic segmentation

(3) Psychographic segmentation

(4) Behavioral segmentation

The market for any product is normally made up of several segments. A

“Market” after all is the aggregate of consumers of a given product and
consumers who make a market are seldom homogeneous, they very in their
characteristics and buying behavior. It is thus natural that many differing
segments occur within a market.
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Advantage of market segmentation as under

1) Facilitates proper choice of target market.

2) Facilitates effective lapping of the market.
3) Helps divide the markets and convert them

NATIONAL LEVEL MARKETING

“NAVBHARAT STEEL RE ROLLING MILL” is having a market for its

product in all the major states of the country and they have appointed to their
customers. They cover all the parts of India here are the few parts where the
company acquires maximum sale Gujarat, Maharashtra, Madhypradesh,
Hariyana, Bihar etc.

INTERNATIONAL LEVEL MARKET

“NAVBHARAT STEEL RE ROLLING MILL” has created a good reputation

for its product even in foreign countries like Nepal, Iran, Iraq, and Malaysia etc.

NAVBHARAT STEEL RE ROLLING MILL has its market spread widely.

Here market segmentation is base on geographical, sales and customer needs. It
has many dealers in India. They are to increase sales and profits.
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 PRICING POLICY

P rice is the amount of money changed for a product or service or the sum of
the value that customers exchange for the benefits of having or using the
product or service. Price has been the major factor affecting buyer choice.
However in recent decade non price factor have become more important in buyer
choice behavior

TOTAL PRICE = Production Cost + Administration Cost + Taxes + Profit

Company decide price policy with help of following pricing method

 Cost-based pricing
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  Demand based pricing

 Competition-oriented pricing

 Value pricing

 Product line oriented pricing

 Tender pricing

 Affordability-based pricing

 Differentiated pricing

At the time of making decision regarding price NAVBHARAT STEEL RE –

ROLLING MILL keeps in mind following factors.

1) Price of raw-material
2) Cost of production
3) Competitors price
4) Condit ability in market
5) Wages, salary and liabilities of employee
6) Government direct and indirect taxes
7) Advertising expenses
8) Sales tax and professional taxes
9) Municipal octroi and land and building taxes Interest of capital
investment

CHANNELS OF DISTRIBUTION

D istribution channel or marketing channel is a set of interdependent

organizations involved in the process of making a product or service
available for use or consumption by the consumer or business user.

Direct Marketing Channel:-

A marketing channel has no any intermediary level.

Indirect Marketing Channel:-

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A channel is containing one or more intermediary levels.

CUSTOMER MARKETING CHANNEL

0-level 1-level 2-level 3-level

Manufacturer Manufacturer Manufacturer Manufacturer

Wholesaler wholesaler

Jobber

Retailer Retailer Retailer

Consumer Consumer Consumer Consumer

DIRECT Channel INDIRET Channel

Manufacturer Manufacturer

Consumer Agent
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 Wholesaler

Retailer

Consumer

NAVBHARAT STEEL RE ROLLING MILL follows this indirect channel of

distribution.

ADVERTISEMENT

A dvertising is the way of communication with the people. The people can
get the information, knowledge of the product with the help of
advertisement. It is the world of neck to neck competition in the market. All the
companies want to sale their product is big scale in the consumer market. For this
reason advertisement is the most important tool. Advertisements are for all
products new products as well as current or existing products. It is being more
effective at Deepings brand loyalty. Advertising is also employed to promote the
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bright image of the company in the minds of people. Peoples get attracted
towards the advertisement of the product.

The NAVBHARAT STEEL RE ROLLING MILL Company uses the

advertisements to attract the buyers. The company uses mass production and
mass sale of the TMT Bars. The main way of advertisement of the iron bar is
internet. The company has to advertise the bars in all over the glob; therefore
print media is not sufficient, therefore they have to advertise through net. This
company creates his own site and in that he put all the information about his
product for running and any new product is going to launch in future. He has put
all his information on the web-site. So, any retailer or consumer want to purchase
his product, he can open the site and can take the information then he can
contact to the company. His contact number and address has been existed on the
web site. So, it is ease to give the order to the company, and the effective way is
that “one person says to another person because this company’s status is very
good”.

MARKETING RESEARCH

M arketing to marketing association “marketing research is the systematic

gathering, recording and analysis to data about problem relating to the
marketing goals and servicing”.
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 Market research is a management tool that involves the top management
to learn more about the appropriate “marketing most”. It is the intelligence
services of the industry capable of furnishing ideal solution to different marketing
problem that arise in day to day business.

Marketing research is the systematic squirting, recording and analyzing of

data problem relating to the marketing of goods and services. It is collecting data
then analyzing data and then put out in classification.

NAVBHARAT STEEL RE ROLLING MILL also does market research to

know their customers requirement and their need. It is also done to know the
changes in the taste and preferences of the customers. As we know that research
is also done to the needs and the demand of their product in the market.
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7
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7
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.
 Content

PAGE
SR NO. PARTICULAR
NO.
(1) INTRODUCTION 57
ORGANIZATION OF FINANCE &
(2) 58
ACCOYNT DEPARTMENT
(3) LEVERAGE 59
(4) CAPITALIZATION 60
(5) CAPITAL STRUCTURE 62
MANAGEMENT OF FIXED
(6) 64
ASSETS
MANAGEMENT OF WORKING
(7) 65
CAPITAL
(8) RATIO ANALYSIS 67

INTRODUCTION
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F inance is lifeblood of any institute or business. Finance is the wheel to
which one can generate and direct its business of the achievement of the
organization goals. Proper management of finance department forms the base to
increase the profitability. In business, cost to create and maintain a product is in
the hand of businessman. In competitive era sales and profit are not in the hands
of entrepreneur.

“Money is the soul and of coarse the blood of any share of business.”

Financial Management means procurement of the fund at minimum cost

and time from the various sources and its development in the business activities
for the smooth and successful running of the business.

Financial Management is an integral part of the overall management of the

firm. The important of finance function depends largely on size of the firm.
Finance management includes different types of financial decision, liquidity
decision that decides the fortune of any business.

In NAVBHARAT STEEL RE - ROLLING MILL responsibility is on the head

of finance manager. He has to take so many decisions related to the finance. The
finance manager has to the great care to deal with financial matter.

ORGANISATION OF FINANCE AND ACCOUNT

DEPARTMENT
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T o Raise finance at a right time and to utilize it most efficiency are primary
function of financial management. Basically all finance function are same in
all types of business organization.

i.e. in sloe proprietorship firm with small size all function in a medium size
firms finance department is created in a large size business unit however a clear
and detail division of finance function is made.

In NAVBHARAT STEEL RE ROLLING MILL is developing unit there finance

function is handle by MR.BHAGIRATHSINH G SARAVAIYA and his two
assistance MR. KANAKSIH AND MR. RAJENDRASINH organization structure of
the company is not large which is show as under.

The organization chart of finance department is as

under:

FINANCE
MANAGER

ACCOUNT
MANAGER

ASSISTANT A/C MANAGER

CHIEF ASSISTANT
ACCOUNTANT ACCOUNTANT

LEVERAGE
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I n very simply words, the term leverage measures relationship between two
variables. In financial variable over some other financial variable. In financial
analysis, generally three types of leverages may be computed.


Operating Leverages: -

It measures the effect of change in sales quantity and operating capacity

on Earnings Before Interest and Taxes (EBIT).

It is computed as:

Sales-variables cost
Operating Leverage= ----------------------------------------------
Earnings before interest and tax

Financial Leverage: -
It indicates the firm's ability to use fixed financial charges to magnify the
effects of changes in EBIT on the firm's EPS. It indicates the extent to which the
earning before interest and tax (EBIT)

It is computed as:

EBIT
Financial Leverage = ---------
EBT

Combined Leverage: -
The combined effect of operating leverage and financial leverage
measures the impact of change in contribution on EPS.

It is computed as:

Combined Leverage = Operating Leverage x Financial Leverage.

Leverage analysis is not applicable in NAVBHARAT STEEL RE-ROLLINGS MILL

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 CAPITALISATION

F inance manager has to decide what amount is required. This decision

includes estimation of total fund required by a business unit. The total
requires. This decision includes estimation of total fund required by a business
unit. The total amount of capital and revenue expenditure of a company is
estimated and on that basis what fund is required as estimated. This is called
capitalization.

The word capitalization can be define as sum total of all kinds of long terms
securities at there par values. Thus it can be interpreted as the sum of ownership
capital and borrowed capital it also includes surplus.

“Capitalization is the total accounting value of the capital stock, surplus in

whatever form it may appear and long term debts”.

“Capitalization includes amount of capital to be raised, the securities

through which it is to be raised and his relative proportion of various classes of
securities to be issued and also the administration of capital”.

There is no specific time of analyzing the problem of capitalization. It is not

like that at time of promotion of a company the capital problems causes. It can be
carried at any time during the life of a company. Generally, there are 3 types of
capitalization.

Capital is one part of Capitalization

Share capital = Equity Share Capital + Preference Share Capital

Capitalization = Share Capital + Debenture Capital + Long Term +

Borrowing + Free reserves
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Capitalization is been divided into 3 parts

1) OVER CAPITALIZATION :-

Whenever the aggregate of the par valued of shares and debentures out
standing of a company exceeds the true value of its fixed assets the company is
said to be over capitalized.

2) UNDER CAPITALIZATION :-

Reversing the concept of over capitalization under capitalization refers to

the excess of have value of assets against par value of share and debentures.
such cases of under capitalization are very rare.

3) FAIR CAPITALIZATION :-

It refers enough finance according to its requirement no less to its

requirement than it is called fair capitalization.

NAVBHARAT STEEL RE - ROLLING MILL Is near to fair capitalization.

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 CAPITAL STRUCTURE

T he two principal sources of finance for business firm are Equity share,
Preference share and Debentures. The combination of these three sources
is known as "Capital Structure" of the business unit. The combination leads to
maximum value of firm is known as the optimum capital structure. Thus capital
structure refers to the composition of capital.

(1) Equity Share Holder:-

Equity share holders are the owners of the business. Equity share may be
regarded as the backbone of capital structures of a company. Equity shareholders
are the real risk bearers of company’s business, this share do not carry out
special right in respect of dividend of return of capital in the event of the winding
up of the company. They get dividend only after the debenture holders and
preference share holders have received their specified return similarly they rank
last in their claim of the assets of the companies, in case of liquidation after all
other debts and preference share capital are real risk bearers of the companies
business.

(2) Preference Share Holder:-

Preference shares are kind of high bride security containing features of

date and equity share. In the event of liquidation preference share holders claim
on assets comes after creditors but before ordinary shares. Usually this claim is
restricted to face value of the share.

According to Indian co. act 1956 preference share is that which has
following 2 preference share right.

(1) Preference share holder should be paid dividend before equity

share
(2) At the time of liquidation preference share capital is return
before equity share capital is return before equity share capital is return.
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Company can issue various types of Preference Shares.
(A) Participating preference shares
(B) Non participating preference shares
(C) Cumulative preference shares
(D) Non cumulative preference shares
(E) Convertible preference shares
(F) Redeemable preference shares
(G) Irredeemable preference share

(3) Debentures:-

Debenture is not a part of share capital of a company. It is a security by

which a company borrows money from general public or from financial institution.
When a company need money for long period but it is hope ful of being able to
return money it issues debentures. By issuing debenture the company borrow
money from public. The company issues debenture certificate to the person who
purchase the debenture. Thus debenture is an instrument threw which a company
acknowledges the debt.

NAVBHARAT STEEL RE ROLLING MILL is Partner Ship Company so the

company is not issued any Equity, Preference and Debenture
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 MANAGEMENT OF FIXED ASSETS

T here are 2 types of assets in each business organization i.e. fixed assets
and currents assets both types of assts are to be managed efficiently and as
to earn maximum profit with minimum possible investment

Fixed assets of company are the permanent capital of company. It helps in

production process and used for long period hence proper management of fixed
assets is very important for every company measure consideration should be
given and that is why decision regarding fixed assets that to be used over a long
period

NAVBHARAT STEEL RE – ROLLING MILL has very big amount of fixed

assts which are has under

Amount in Rs.
Sr. No. Fixed assets
(Approx)
(1) Land 25 lacs

(2) Building 30 lacs

(3) Machinery 60 lacs

TOTAL Rs. 115 lacs

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 MANAGEMENT OF WORKING CAPITAL

W orking capital management involves deciding upon the amount and

composition of current assets and how to finance these current assets.
The lower the amount of working capital level maintained the more the risk of
running business and more will be the profitability

 There are two types of working capital like

1) Gross Working Capital :-

Gross working capital indicates the liquid position of the firm. It helps
the management to look for permanent sources for financing its working
capital.

2) Net Working Capital :-

Net working capital indicates the liquid position of the firm it helps the
management to look for permanent sources for financing its working capital
need.
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 CASH MANAGEMENT

Cash a liquid and assets is the basic input required to run the business. It
includes cash and near cash assets like c both cash management is concerned
with the managing of cash flows into and out or within the firm. The basic
objective of cash management is to reduce the operating cash requirement to the
minimum possible extent without affecting the routine transaction.

In NAVBHARAT STEEL RE ROLLING MILL petty cash book is managed

and most of the transaction is done by cash.

INVENTORY MANAGEMENT

Management of inventory assumes importance due to the fact that

investment in inventory constitutes one of the major investments in assets. The
objective of inventory in order to facilitate efficient and smooth production and
sales operation and sales operation and also to minimize investment in inventory
to maximize profitability.
In management of inventories in NAVBHARAT STEEL RE –
ROLLING MILL, the record of inventory is maintained of factory premises
according to rules and regulation.

RECEIVABLE MANAGEMENT

Receivables or book debt is created by the trade and arises out of credit
transactions. The basic objective of receivables or credit. Management is to
maximize the value of the firmly obtaining optimum volume of sales by controlling
the cost of credit and keep it at minimum.
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 RATIO ANALYSIS

R atio analysis is a powerful tool of financial analysis. A ratio is defined as

the systematic use of the ratio to interpret the financial statement so that
the strength and weaknesses of a firm as well as its historical performance and
current financial condition can be determined. Also it can be said as “the indicated
quotient of two mathematical expressions and as “the relationship between two or
more things”. In financial analysis ratio is used as the benchmark for evaluating
the financial position and performance of the firm. The relationship between two
accounting figures expressed mathematically is known as a financial ratio.

 Traditional classification is based on financial statement to which

determines the ratio belongs.

 Profit and loss account ratios are based on profit and loss account
only.

 Balance sheet ratios are based on the figures of the balance sheet.

 Composite or inter-statement ratios are based on both that is the profit

and loss account and balance sheet.

 CLASSIFICATION OF RATIOS :-
1. Revenue
Statement Ratio
2. Balance Sheet Ratio
(A) Gross Profit
Ratio (A) Current Ratio

(B) Operating Ratio (B) Liquid Ratio

(C) Expenses Ratio (C) Quick Ratio

(D) Net profit Ratio (D) Proprietary Ratio

(E) Stock Turnover (E) Debt-equity Ratio

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(F) Capital Gearing Ratio (G) Long Term Debt

(1) Revenue Statement Ratios:-

(A) Gross Profit Ratio :-

This Ratio gives the information about gross margin of

profit realized in the company.

Gross Profit
Gross Profit Ratio = -------------------------- X
100
Sales

(B) Operating Ratio :-

By this Ratio we will get information about how much

total margin of expenses realized in business.

Cost of Goods Sold + Operating

Expenses
Operating Ratio =
----------------------------------------------------------- X 100
Net Sales

(C) Expense Ratio:-

This Ratio gives information about how much margin

of expenses out of Total Sales.

Expense
Expense Ratio = ------------------------- x100
Total Sales

(D) Net Profit Ratio :-

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 By this Ratio we will set the information of net
margin of profit realized on sales.

Net Profit
Net Profit Ratio = --------------------------- x 100
Total Sales

(D) Stock Turnover:-

This Ratio gives the information about how many

times stock becomes change in a year.

Cost of Goods Sold

Stock Turn Over = -----------------------------
Average Stock

Cost of Goods Sold = Sales – Gross Profit

Cost of Goods Sold = Operating Stock+ Purchase+
Expense for Purchase -
Closing Stock

(2) Balance Sheet Ratio:-

(A) Current Ratio :-

This most widely used Ratio shows the proportion of

current assets to current liability. It is also known as
“Working Capital Ratio” as it is a measure of working
capital available at a particular time. The ratio is obtained
by dividing current assets by the current liability. Generally
comfortable Ratio is 2:1

Current Assets
Current Ratio = ------------------------------
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 Current Liability

Current Assets = Closing Stock + Cash & Bank Balance

+ Debtors + Bills Receivables + Prepaid Expenses + Out
Standing Income + etc…
Current Liability = Creditors + Bills Payable + Bank
Overdraft + Out Standing Expenses + Provision for tax +
Proposed Dividend + Provident Fund + Gratuity + etc…

(B) Liquid Ratio:-

A variant of a Current Ratio is Liquid Ratio or Quick

Ratio which is design to show the amount of cash available
to meet immediate payment. It is obtained by dividing
Liquid Assets by Liquid Liabilities.

Liquid Assets are obtained by deducting stock-in-

trade from Current Assets. Stock is not treated as l Liquid
Assets because it can not be readily converted into cash as
when required.

If the Liquid Assets are equal to or more than Liquid

Liabilities, the condition may be considered as satisfaction.
Generally standard margin of this Ratio is 1:1

Liquid Assets
Liquid Ratio = --------------------------------
Liquid Liabilities

(C) Acid-Test Ratio:-

This ratio gives the information regarding actual

liquidity of the company. Ideal ratio is 0.5:1.

Quick Assets
Acid-test ratio = ---------------------------
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 Liquid Liabilities

(D) Proprietary Ratio:-

The Ratio shows the proportion of the proprietor’s

fund to the total assets employed in the business. The
proprietor’s funds or share holders ‘Equity consists of share
capital and reserves and surplus’. The higher the ratio, the
stronger the financial position of the enterprise.

Proprietor’s Fund
Proprietary Ratio = ---------------------------
Total Assets

(E) Debt Equity Ratio:-

This Ratio is only another form of Proprietary Ratio

and establishes relationship between the outside long term
liabilities and owners fund. It shows the proportion of long
term external equities and internal equities i.e. Proportion of
funds provided by long term creditors and that provided by
shareholders or proprietors.

Long term liabilities

Debt-equity ratio = ------------------------------------- x 100
Share holders funds

(F) Capital Gearing Ratio:-

This Ratio expresses the proportion of preference

capital and ordinary capital. In other words, it is ratio of
fixed dividend gearing capital to ordinary capital.
Sometimes, even debentures are included along with
preference capital. The higher this is ratio i.e. the greater
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the proportion of Preference Capital and Debentures to
ordinary capital.

Fixed Interest Bearing

Capital
Gearing Ratio =
-----------------------------------------------------------
Ordinary Capital

(G) Long Term Funds to Fixed Assets:

The fixed assets of business must be purchased out

of fixed capital only. This includes share capital, reserves,
and long term liabilities. This ratio, therefore, shows the
relation ship between fixed capital and fixed assets.

Long
Term Fund
Long Term Funds to Fixed Assets Ratio: =
-----------------------------------
Fixed
Assets

NAVBHARAT STEEL RE ROLLING MILL

Company do not give any financial information. So, we do
not calculate the Ratio Analysis sums.
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 BIBLIOGRAPHY

GENERAL INFORMATION
Web site:-
www.navbharatsteelreROLLING.org
E-
mail :
-NAVBHARATSTEEL@GMAIL.COM

BOOKS
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 SUBJECT AUTHOR

HUMAN Prof. Udai Parikh C.B. Mamoria,

S.V.Gankar, Himmalya Publishing
REASOURCE
house, Mumbai.
MANAGEMENT:
Philip Kotler, Gary Armstrong
MARKETING ‘Principle Of Marketing
Management’, 11th edition, 2007,
MANAGEMENT:- New Delhi.
Prof. S.P. Shah, Dr. Paresh Shah,
FINANCIAL Dr P.K.Priyam, Dr. Hitesh Shukla,
‘Finance Management’., 1st
MANAGEMENT:- Edition 2002-03
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