Summer Training Report At Gujaratmitra

Submitted by, Palak Mittal (140) Bijal Nakrani (147) Paneri Parikh (165) Dhaval Patel (174) Zarna Patel (193)

Under the Guidance of Mr. Mayur Patel

In the Partial Fulfilment of the requirement For the admission in Semeter V in BBA Programme

Submitted to, Navnirman Institute of Management (NIM-BBA), Bharthana, Surat Affiliated to VNSGU, Surat Academic Year 2011-12

PREFACE
The BBA is the course which covers theoretical as well as practical aspects of business practices. So for this partial fulfilment of the course, the student is supposed to undergo training at any commercial/industry undertaking for atleast 8 weeks about a given topic.

The business is becoming more and more competitive which makes it complex, due to which it is facing various problems and obstacles in their day to day functioning.

As the students we were assigned a topic: Analysis of the functioning of Gujaratmitra

College aims at preparing students in management studies to equip them for advancement in professional course at the undergraduate level. It intends to provide their students with business attitude so as they can meet corporate environment and face the coming problems in an effective way.

Here we are presenting the different concepts, which we saw, feel and experienced, which then works on the project report. We have tried our level best to do the proper justification with our work in this project.

ACKNOWLEDGMENT
We are very thankful to Navnirman Institute of Management College as they contain training as an essential part of BBA degree and make it compulsory for each and every student.

We express our sincere thanks to Mr. Mayur Patel for his valuable suggestion, guidance, direction and helped to finish this project for our BBA degree. He had been a constant source of inspiration and motivation in our analysis and other work.

We express our deep sense of gratitude to our external guide Mr. Anand Upadhya (H.O.D Administrative of Gujaratmitra, Surat) and other staff members for their suggestions and help in every situation.

We also thank our family and friends for assisting us to do this project and guiding us in getting the smallest details possible for the project. Their support was equally important in the success of this project. Finally, its our duty to thank all those respondents who helped us to do field work without which this project would not have been complete.

EXECUTIVE SUMMARY
As a part of our summer training session, we have taken up a project work on the topic: Analysis of functioning of Gujaratmitra. Our topic is to find out working of different departments i.e. Marketing, Production, Human resource and Financial of the company and study them in detail.

The objective of this project was to learn the working of the newspaper printing press. The aspects regarding the working are:

1) Working of Marketing Department i) Product ii) Price iii) Place iv) Promotion

2) Working of Production Department i) Material handling equipments ii) Inventory control

3) Working of Human Resource Department i) Recruitment and selection ii) Training and development iii) Performance appraisal system iv) Promotion and transfers v) Wages and salary administration

4) Working of Finance Department i) Balance sheet ii) Comparative study iii) Ratio analysis From the above done project we have concluded that the profit of any brand is to satisfy its customers expectations. Today market is buyers market. Consumers are the king of the market. To know what are their expectations and wishes, surveys are very important. From our analysis, we have concluded that a brand image also plays an important role in maintaining the sales of the product. Gujaratmitra being the oldest

company in the field of newspaper printing has increased its sales due to its brand image and preserving customer values.

Index
Sr. no. Preface Acknowledgment ExecutiveSummary Chapter 1 Introduction History of newspaper Company Profile History of Gujaratmitra Marketing and Sales Department Introduction The Marketing concept Organizational structure Product Brand Packaging and Labelling Segmentation, Targeting and Positioning Price Promotion Communication Process Place Channels of Distribution Sales Procedure Marketing Control Production Department Purchase Structure Purchase and Receiving Procedure How production Plan is prepared? Analysis of Plant Location Material Handling System Inventory Control System Product design and specification Human Resource Department HR Management Recruitment and Selection Promotion, Demotion & Increment Policies Training and Development Performance Appraisal system Wages and salary Administrative 1 Contents Page No.

Chapter 2

Chapter 3

30

Chapter 4

41

Chapter 5

Finance Department Working Capital Management Cycle and Components of Working Capital Working capital of Gujarat Mitra Comparative Statement Balance sheet Ratio Analysis Bibliography

51

76

Introduction
HISTROY OF NEWSPAPERS:
The origin of newspapers: The history of newspapers is an often dramatic chapter of the human experience going back some five centuries. In Renaissance Europe handwriting newsletter circulated privately among merchants passing along information about everything from wars and economic conditions to social customs a Human interest features. The first printed forerunners of newspapers appeared in Germany in late 1400s in the form of news pamphlets or broadsides, often highly sensationalized in content. Some of the most famous of these reports the atrocities against German in Transylvania perpetrated by a sadistic evolved named VladTsepesDrakul, who became the count Dracula of later folklore. In the English speaking world, the earliest predecessors of the newspapers were corantos, small news pamphlets produced only when some event worthily of notice occurred, the first successively published title was the weekly News of 1622 .it was followed in 1640s by a plethora of different title in the similar news book format the first true newspaper in English was the London gazette of 1666. For a generation it was the only officially sanctioned newspapers, though many periodical titles were in print by the centurys end.

HISTORY OF NEWSPAPERS IN INDIA:

The first printing press was imported in Bombay as early as 1670 by the Parsi businessman Bhimjee Parikh; it was more than a hundred years before the first newspaper was printed. The first newspaper in Bombay were owned and printed by parsis, who already owned the technological and financial basis for such ventures the first English newspapers in Bombay was printed by RustomjiKeshaspathi in 1777. The first vernacular newspaper in Bombay was the Gujarat daily Mumbai Samachar, published in 1822 by FardoonjeeMarzban. Although not the first newspaper in an Indian language (that distinction was held by the Bengali newspaper SangbadKaumudiSamachar in Calcutta) mumsaisamachar is still being published and is Indias oldest newspaper. The first Marathi daily Dig-Dursan appeared in 1837 and the first Hindi Gujarati newspaper Vartaman in 1849 (in Ahmadabad). Initially the newspaper concentrated on social issues. In 1851 DadabhaiNaoroji started the first political paper.Rast Goftar.in later years when K.N Kabraji became the publisher, he stopped all political commentary and had a public exchange of letters with Naroriji in which each accused the other of deviating from the original agenda.

In 1878 the government of India passed the censorship act. Protests from the press had no effect. Four years later in 1882, the newspaper Kaiser-I-HIND was founded by inception in 1885. The leading British newspaper of this time was TIMES OF INDIA.

COMPANY PROFILE: ABOUT GUJARAT MITRA:

Gujarat Mitra, published from surat is one of the leading dailies of Gujarat. It is the oldest newspaper of this region and one of the oldest in the country. In this year it has earned a lot of fame not only in south Gujarat but also rest of the state became of its unbiased news and natured viewed have been appreciated by one and all with an average daily circulation of around 90,000-1,00,000 copies it was not merely a newspaper but has become an institution for the people of south Gujarat where it has penetrated not only the region but also minds and heart of its readers.

EDITIONS:
Though it is published from just one center, Surat it has a separate Baroda edition which is also published from Surat. -Surat/Bharuch -Baroda -Mumbai -Valsad/Vapi

The Surat edition again has two sub editions that is the city edition and the up country edition, while the Baroda edition has two sub editions that are the city edition and the north Gujarat edition.

PRICE:
From Monday through Saturday (all editions)-Rs.2(New-3rs) On Saturday (all editions)-Rs.2.50(new-3rs)

LOCATION OF OFFICES, BRANCHES AND FACTORIES:

IN Surat, Gujarat mitra has main office and their other branches in different cities. There are required at bellow: HEAD OFFICE: Gujaratmitra and Gujarat darpan Gujarat MitraBhavan,

Near old civil hospital, Post box no; 297 Surat, Gujarat: 395003. OTHER IS AT: PunaKumbhariya, Near Sardar Market. LANGUAGE: CATEGORY: PERIODICALLY: CITY: CONTACT: Gujarati Newspaper Daily Surat 0261-2478705, 2478702 Fax: - 2478700 Gujaratmitra@satvam.net.in

BRANCHES:

AHMEDABAD, BARODA, MUMBAI, BHARUCH CHENNAI, NEW DELHI, CALCUTTA, BANGLORE, PUNE.

AHMEDABAD:

GUJARAT MITRA KARYALAYA, 16-17 NATIONAL CHAMBERRS, 2nd FLOOR, NEAR DEEPALI CIEMA, ASHARAM ROAD AHMEDABAD-380009, PH.-6589901,6588914

MUMBAI:

SUJAY MEDIA SERVICE, GUJRATA MITRA, 32/RAJGIR CHAMBERS, 4th FLOOR OLD CUSTOME HOUSE FORT, MUMBAI-40023 PH.022-22664064, 22661312

BHARUCH:

GUJARAT MITRA KARYALAYA, 1st FLOOR, AMARDEEP SHOPPING CENTER, FALSHRUTI NAGAR, STATION ROAD, PH.69591

NEW DELHI:

J.S MALHOTRA, A/4, NABHA HOUSEW, COLLEGE ROAD, NEW DELHI-110001.PH.011-23711016, 23710727

CALCUTTA:

AMARJAT SINGH MULTANI, S/1, BONDED ROAD, CALCUTTA.700019.PH.033-2808784

CHENNAI:

MR.P.K VISWANATHAN, 79, SHANTINIKETAN COLONY, MADAMPARKKAM, CHENNAI-600079 PH.044-2375088

BANGLORE:

MR.M.SATGIYAVEL, 1st FLOOR, 125, KAKAYAPPA LAYOUT, A-CROSS NANJA REDDY COLONY, MARUGESHPALAYA,HAL ROAD PH.080-5260811,5275169

PUNE:

MR.NARENDRA SHINDE,759/12 A, GYMKHANA, OPP.LUCKY RESTURANT,LANE PUNE-411004,PH.020-370474

STRENGHT:
The strength of Gujaratmitraare: A 150 old years company Cheapest price than competitors Huge scale 100000 copies daily Extremely famous in Surat Well known for quality local news National as well as international supply Own transport systems for better distribution

WEAKNESS:
All though having these strengths Gujaratmitra also has some limitations Low quality pages Inadequate capital for competing internationals Low markets share in case of state

OPPURTUNITY:

Put some pace and rhythm in the newspaper, telling readers what is essential and what is incidental. Give readers what they want, but they also provide an element of surprise. Stimulate readers to interact with their environment, to get involved in society. Stimulate readers to interact with the newspapers by giving ample space to their opinions. Increase market share by different strategies.

THREATS:
Television Internet

HISTROY OF GUJATART MITRA:

Established in 1863, the Gujarat mitra is one of the oldest newspapers in the country. A bi-weekly called Gujarat was amalgamated in 1894 with Gujarat mitra and therefore the paper is known as Gujarat mitra. Or Gujarat darpan. Initially started as a weekly in 1936 the paper was converted into a daily spirit of patriotism and missionary zeal established by its founder SHRI DINSHAW ARDESHIR TALYARKHAN was at its zenith during the freedom struggle and has been maintained even today. In 1998, alliance of RESHAMWALA family with Gujarat mitra completed 100 years as SHRI UTTAMRAM RESHAMWALA joined in as sub-editor in 1898. Deeply concerned about the noble and idealistic policies of the paper and its future in 1920, the aging and feeble parsi owner could not find anyone more trustworthy and devoted than SHRI UTTAMRAM and urged him to purchase press and take over the reins of newspaper at the tender age of 19 on sudden and untimely demise of his elder brother SHRI CHAMPAKLAL with his strong determination and progressive policies and devoted love towards Gujarat mitra, the late SHRI PRAVINKANT RESHAMWALA nurtured the paper to a sound footing . after his demise in 1983 the Gujarat mitra is in the hands of his son SHRI BHARAT RESHAMWALA.

Chairman

Managing Director

Directors

General Manager

Productio n Manager Officer Superviso r clerk

Persona l Manage r Office r Import Clerk

Financial Manager

Account Manager

Office Clerk

Export Officer

Clerk

Clerk

Peon Worke r Peon Peon AAO

Peon

Helper JR Clerk

Peon

Peon

Marketing And Sales Department

Introduction:

Marketing is usually seen as the task of creating, promoting and delivering goods and services to consumers and businesses. Marketers are skilled in stimulating demand for a companys products, but this is too limited a view of the tasks marketers performs. Just as Production and logistic professionals are responsible for Supply Management, marketers are responsible for Demand Management. Marketing Managers seek the level, timing and composition of demand to meet the organizations objective. Marketing people are involved in marketing 10 types of entities: 1. Goods 2. Services 3. Experience 4. Events 5. Persons 6. Places 7. Properties 8. Organization 9. Information 10. Ideas

The Marketing Concept:

The Marketing Concept emerged in the mid 1950s and challenged the proceeding concepts. Instead of a product centered, make and sell philosophy, we shift to a customer centered, sense and respond philosophy. Instead of hunting, marketing is gardening.

The Marketing Concept holds that the key to achieving its organizational goals consist of the company being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target market. The Marketing concept rests on four pillars: 1. Target market 2. Customer need

3. Integrate marketing 4. Profitability

Gujaratmitra generally markets and earns the profit by printing different advertisements, which come either by their agents, centers or from direct office and then printing press gives commission to agents and hawkers. In Gujaratmitra per page eight columns comes which means that per page is divided into eight columns. So advertisement rates are different for different pages and its basic rates are given as follows: Basic rate per column 1 c.m. Rs.600 If extra then the charges are double i.e. Rs.1200 Extra for last page on special page 25 extra and then 25% extra for special place on special page For color print charges will be 100% extra for color head For Tachukadi Jaherkhabar (vacancies) : On this page per letter Rs.2 for Gujarati language and for running matter it is Re.1 per letter and double. for other Chairman Shree Bharat bhaiReshamwala languages charges will be

Managing Director Shree RuchirReshamwala

Director SmtKetki ben Reshamwala

General Sales Manager Shree KirenGolwala

Branch Manager

Surat

Ahmedabad

Baroda

Valsad

Vapi

Organizational Structure:

Marketing Manager

Sales Manager

Agent

Consumer

Product

Meaning:

Product in simple words means what you are designing, developing, manufacturing, providing and selling.

In business, marketing means to ensure that a business sells product that meets customer needs and wants. The role of production and operations is to ensure that the business actually makes the required product in accordance with the plan.

The role of product concerns as follows: Performance Quality Reliability Quantity Production costs

Product Mix:

The set of products offered for self by a firm or business units are known as product mix. All product items manufactured by the same business unit without having relation with each other is known as product mix. Product Mix

Newspaper

Magazines

Ads paper

Product Life Cycle:

A product life cycle begins with introduction of the product in the market and end with decline in its sales. Its lifetime sales history consists of different stages, which are known as stages of product life cycle. The product life cycle has four major stages: 1. Introduction stage 2. Growth stage 3. Maturity stage 4. Decline stage

Similarly at gujaratmitra the following are the stages:

Introduction Stage

In 1968 the product of gujaratmitra, newspaper was new in the market and large number of customers were not aware of the paper. Volume of sales of newspaper was very small in the beginning. Advertisement expenditure was on the large scale. Company made profit of a very small amount. This stage continued as long as incremental rate of sales growth was not grown up and company began to make profit

Marketing Strategies:

1. Higher price and higher level of promotional expenditure. 2. Higher price and small promotional expenditure budget. 3. Low price and a big promotional expenditure budget. 4. Low price and small promotional expenditure budget.

Growth Stage
In this stage, gujaratmitra newspaper began with increase in the growth of the sales and started earning profit. The newspaper was consistent with consumer preferences within a short period of time. Customers were satisfied with first purchasing and continued to purchase. Sales increased with increase in the production and average rate of production declined. At this stage the profit was at highest level. The product made rapid sales because of cumulative effects of promotion and distribution.

Marketing Strategies 1. To increase the quality of the product or add new features to the product. 2. To start a campaign to search out new areas of market. 3. To intensify the advertisement and find out new channels of distribution for wide spread sales.

Maturity Stage

In this stage, sales growth of gujaratmitra newspaper continues but at a declining rate because of competitors of other newspapers. This stage lasts longer than earlier stages It includes three stages a) Sales increase but at declined rate. b) Sales remain stable. c) Sales begin to decline.

Sales decline because of high competition with a) Gujaratsamachar b) Sandesh c) Divyabhaskar

Marketing Strategies 1. Efforts should be made to enter into new market. 2. Steps should be taken to increase the utility of the product. 3. Product should be improved. 4. Product should be made familiar with other classes of customers.

Decline Stage
In this stage sales of gujaratmitra begin to diminish absolutely as other better newspapers gradually replace the product. The Management continues to make efforts to increase the sales to remain in the market.

Marketing Strategies 1. Company should find out weak product. 2. Introducing new features and develops it. 3. There should be decrease in advertisement expenses etc.

Brand

Meaning:

Brand means a name, a term, a sign, a symbol or a design or a combination of these intended to identify the goods of sellers and to differentiate them from those of competitors.

Gujaratmitra has its own symbol or brand:

Importance of Brand:

1. It is easy to identify the product with the help of GUJARATMITRA brand and logo; customer can easily find the newspaper from the stall. 2. The brand gives a separated identity to the product from its competitors. 3. Brand can be a trademark. Brand of Gujaratmitra is a trademark therefore no one can copy it as under Trademark and Patent Act. 4. Brand gives legal protection. If other company copies the logo, company can take legal action against it. 5. A brand can be symbol of product of Gujaratmitra.

Packaging and Labeling

Packaging

The packaging of consumer product means wrapping of goods before they are transported or stored or delivered to a consumer. Gujaratmitra packs the newspaper according to the order.

100 pieces 200 pieces

At the monsoon season, they give the newspapers in plastic bags.

Objectives: a) To provide protection to the product against dust, moisture etc.

b) To facilitate safe transport of the product from one place to another place. c) To serve as a promotional tool at the point of purchase. d) To serve the purpose of effective communication to influence consumer behavior at the point of purchase.

Labeling

Labeling can be anything which may be brand name, symbol etc. in the case of Gujaratmitra they manufacture newspapers so its name itself is a label.

From labeling customer come to know brand and product. It promotes the product.

Objectives: a) To communicate the brand name of the product. b) To give instructions about the uses of the product. c) To indicate the date of manufacturing, date of expiry and batch number. d) To give warnings against the risk, if any.

Segmentation, Targeting and Positioning

Segmentation:

Gujaratmitra newspaper is focusing on a group of people who are house reader as well as industry reader and the readers are in the ratio 3:1. It means that house segment is of 75% and industry segment is of 25% readers of the newspaper.

Targeting:

The targeting position means on what are the Gujaratmitra paper main focuses on. The management of
Gujaratmitra is mainly focusing on age group whichcan be seen as under: Age Group 0 to 15 15 to 30 30 to 45 Percentage 12% 34% 25%

45 to 60 60 and above

15% 14%

The gujaratmitra newspaper is mainly focusing on youth generation which is the age group between 15 to 30 and constitute of 34%.

Positioning:

The main aim of management of Gujaratmitra is to give all the comfort to the news reader who is at the age group of between 15 to 30 years because the most income incurs from the youth generation. So they mainly focus on 34% of total ratio and provides news schemes for this age group.

Price

Meaning:
Price of a product, either goods or services is what the seller feels it worth in terms of money to the buyer.

In the company, the price is decided according to the market environment. If the price of the raw materials, instruments, machines, etc. rise then the company also raises their prices of the product. Price is also decided from the demand and supply of the product. If demand increases, the prices increase and supply also increases and vice versa.

The company also considers the expenditure done in the manufacturing process, labor cost, electricity, etc. for deciding the price of the product.

Generally Gujaratmitra and Gujaratdarpan are the joint companies that last known as Gujaratmitra and decided their prices that are stable.

In other words, price is the exchange value of goods in terms of money.

Objectives:

Price decisions are made keeping in mind the objectives of pricing may vary from time to time depending upon the market conditions. The main objectives of pricing can be stated as under: -

1. Earning of reasonable rate of return on investment. 2. Market penetration. 3. Price stability. 4. To maintain or improve market share. 5. To cope up with competition. 6. Market scheming. 7. Profit maximization.

Methods of Pricing:

1. Cost plus pricing. 2. Cost based on marginal cost. 3. Price based on break-even analysis.

For all the days of the week Gujaratmitra has the same price, which is Rs.3.

Day

Competition in Price (Rs.) Gujaratmitra Gujaratsamachar 3 2 3 Divyabhaskar 2.50 2 2.50 Sandesh 3 2 2

Sunday Monday Tuesday

3 3 3

Explanation of the above table:

Before deciding the price of product the organization take into account the conditions of competitors. The various policies are to be determined to fix the selling price. When marketing, their product needs to create a successful mix of:

The right product. Sold at the right price. In the right place. Using the most suitable promotion.

To create the right marketing mix, business has to meet the following condition. The product has to have the right features, for example, it must look good and work well.

Factors affecting Pricing:

1. Objectives of the company. If the company enjoys monopolistic position in the market then keeping in view the objectives of profit maximization as far as possible, very high pricing policy should be adopted.

2. Cost of production. Cost of production includes labor cost, material cost and other indirect costs. 3. Competitors price. In a competitive market, while making policy decisions one cannot afford to ignore the competitors pricing policy because it directly affects our sales.

4. Channel of distribution. This cost depends on number of middlemen and their commission.

5. Government controls. Pricing policies should be consistent with controls like price of sugar, copper etc.

6. Quality of goods. For a superior quality product a higher pricing policy can safely be implemented.

7. Service. There are customers who give more importance to after sales services than lower prices.

Promotion
Meaning:

Promotion is an important factor, which affects sales of product of any company. Promotion is concerned with increasing sales by stimulating demand. In order to stimulate demand, it is necessary to provide information to the customer regarding the product, its quality and uses, price and its distinct features.

Gujaratmitra does not do promotion of its own. The best promotion of a newspaper is it gives best news. Moreover it is a 150 years old company, well established in market and thus, it does not require high advertising expense.

The marketing department of Gujaratmitra is constantly doing the work of procuring ads.

Gujaratmitra does not have any marketing schemes like its other competitors.

Gujaratsamachar, Sandesh, Divyabhaskar give free gifts as their price is initially very low. Cutting promotion expenses at Gujaratmitra makes the price cutting adjustment.

Promotion Mix:

Promotion mix means set of elements or tools like advertising, public relations and publicity, sales
promotion, personal selling and direct marketing used by the marketer for promoting sales by stimulating demand through persuasive communication.

Elements of promotion mix connected with Gujaratmitra are:

Promotion Mix

Advertisement

Direct Marketing

Personal Selling

Sales Promotion

Publicity

1. Advertisement

Any paid form of presentation and promotion of ideas, goods and services by an identified sponsor. Communication of message. To make people familiar with the product. To influence the buyers behavior. Achievement of the set sales target.

2. Direct Marketing

There are many forms of direct marketing like telemarketing, electronic marketing etc. Communication of message is non-public. It is addressed to specific persons. The message can be customized to appeal to the addressed person. The communication of message depends upon the specific person. There is interactive communication.

3. Personal Selling

Frequent visits of the salesmen of the company with the customers, giving information and explanation to them about the product with an objective of promotion sales.

4. Sales Promotion Marketing activities other then personal selling, advertisement and publicity like window-dressing, demo etc. Any step taken for purpose of obtaining or increasing sales, often, this term refers specially to selling efforts.

5. Publicity Publicity involves securing editorial space as divorced from paid spaces, in all media read, viewed or heard by a companys customer or prospects for the specific purpose of assisting in the meeting of sales goals.

Communication Process:

1. Identify influenced individuals and market leader company and devote extra efforts to themFollow the market leader company in adopting innovations. Early sales efforts should be focused on the market leader and influence individuals. 2. Create opinion leaders by supplying certain people with the product on attractive terms-

In order to create opinion leader a sports company can offer cricket bats to the members of the college cricket team at concessional price.

3. Work through community influentialAt the time of launching, a new product brand invites presidents of different social organization on inaugural function and offer test-driving or practical demonstrations.

4. Use influenced people in testimonial advertisingA believable and influenced person using the product bears the testimony for the reliability and quality of the product.

5. Develop advertising that has high conversation valueAdvertisement with high conversation value generally contains a slogan, which becomes popular throughout the nation and commands purchase actions.

6. Develop word-of-mouth referral channels to build businessA patient of dentist if satisfied might recommend other patients to take advantage of the services of the dentist, this is known as word-of-mouth communication, which helps in building the business.

7. Establish an electronic forumEstablishment of electronic forum facilities like online discussions and question and answers.

Place

Meaning: A channel of distribution means a system consisting of different marketing intermediaries through which
product or service are distributed from the place of manufacturer to ultimate consumers.

Intermediaries likeWholesaler Retailer Agent Hawkers

They create the place utility, store the goods and provide certain to the manufacturer and consumers. Trading relations connect them with each other for their benefit.

Levels of Channels of Distribution:

Channel of distribution or marketing channel is the structure of intra-company organizations units and extra company agents and dealers, wholesalers and retailers through which a commodity, product goods or services is marketed.

There are mainly two types of channels1. Direct Channel 2. Indirect Channel

In the company there are 3 types of channels of distribution: 1. Zero level channel. 2. One level channel. 3. Two level channel.

Distribution Channel:
There are two types of distribution channels-

Producer

Producer

Distributer Vendor Vendor

Consumer So in

Consumer Gujaratmitra,

the distribution channel is Two Level.

Distributor

Enterprise

Types of Distribution Channel:

1. Company-Agent In Gujaratmitra the newspaper is printed on which news of the whole day are there. A reporter collects information on different places and gives it to the main centers. It may be any way that is by telephone, fax, mail and local reporter gives information directly at the office. And at the night all the information is printed on the newspaper and early morning it is distributed at different places like Surat and other villages. Now it is sent to Mumbai and main edition at Surat, Baroda, and Mumbai and after printing process newspapers are sent at Gujaratmitra centers and then are distributed at other sides.

2. Agent-Hawkers When newspapers are brought to the agents then it is distributed among the hawkers. This process is continuously followed daily. And it is very easy. This channel is very important for local customers, as it is the responsibility of the hawkers to provide the local customers with the newspapers early in the morning.

Activities of Distribution:

1. Transportation-

Road: The dispatching of newspaper to the customer by road transportation ways like truck, bikes, bicycles etc. Rail : The transportation of newspapers is transferred from the railway transportation for newspapers in bulk to other near by areas.

The daily Gujaratmitra is manufactured only at Surat and is supplied to whole of Gujarat from Bhuj to Vapi. The place where Gujaratmitra is are as under: Surat supplied in huge bulks or key markets

Bharuch

Navsari

Anand

Valsad

Ahmedabad

Vapi

Bhuj

Mumbai

2. ServiceThis includes all areas of services such as installation, after sales services, complaints handling, training and so on.

Gujaratmitra provides the following services to maintain its customers and attract other customers. Provides up-to-date information. Provide instant coverage and invites participants. Awareness to customers. News at home. Medium of communication.

Margin of Channel Partner:

The margins of intermediaries or channel partners are decided by management and distributed to them. Channel partners areManufacturer Agents Hawkers

1.

Manufacturer gets the highest margin in total turnover. They get 72% to 75% margin including all expenses.

2.

Agents get 10% to 15% from manufacturer. And if agent distributes the newspapers then they get the benefit of more 10% profit margin.

3.

Hawkers receive the 10% margin from agents for their efforts.

Sales Procedure:

Sales procedure is the process of manufacturing the newspaper in Gujaratmitra and sells it to the customers. It transfers it to distributors or agents who in turn transfer them to hawkers and then hawkers sell them to the customers. Following are the process of sales procedure-

1.

Manufacturer: Gujaratmitra is a manufacturing company who makes the newspaper at minimum cost, make ready to sell and the margins of manufacturer are 65% to 75% of total margins of product selling.

2. Distributors: Distributers are the intermediaries who take the newspaper from Gujaratmitra press and gives to agents or hawkers for selling. The distributer works for commission and get the advantage of 10% to 15% from manufacturing price of newspaper.

3. Customers: Customers are the pride part of the whole chain. Customers purchase newspapers from hawkers or agents.

Marketing Control
Meaning:

Marketing Control is a process of measuring and evaluating the result of marketing strategies and plans and
taking remedial actions to ensure that marketing objectives are achieved.

Importance:

1. Faster Sales As everybody tries to achieve the sales target within the prescribed time limit. Sales become faster than what it would have been in the absence of control.

2. Successful implementation of marketing plans Without control, planning will exist only in concepts. Planning and controlling are complimentary to each other.

3. Reduction in costs Controlled salesmen, their allowances, packing expenses, distribution expenses, labor costs etc. bring down marketing costs.

4. Improvement in Channel of Distribution In marketing control, a study of the distribution costs like storage costs, wastage costs etc. is done and whenever excessive costs are found then remedial steps are taken.

5. Regional balance of sales

Regional sales balance can be achieved by taking expenditure measure in the area, which is going on very slowly.

6. Measurement of the success of marketing programs Marketing control compare the real achievements with the standards set. As a result, we can know which programs are lagging far behind the standards.

Production Department

Purchase Structure:
Production Manager

Supervisor

Worker 3 Worker 4 Worker 5 on on on machine machine 4 machine 3Chairma 5Director n SmtKetki Shree ben Purchase Procedure: Bharat Reshamw bhaiResha ala mwala Gujarat mitra is very big organizationwhich is located at Surat. Gujarat mitra is a printing press.

Worker 1 on machine 1

Worker 2 on machine 2

Worker 6 on machine 6General Sales Manager Shree KirenGol wala Its work is

printing the news paper and sell it in india. So Gujarat mitra has not a lengthy and long purchase procedure. Because Gujarat mitra does not consider a purchase procedure of raw material. The supplier of the Gujarat mitra press is fix so the quality of price problem rarely arises.At the time it has no need for a serious procedure.

In the organization, general manager is given the order on telephone or by using fax or by using mail, then the supplier supply the raw material to the gajaratmitra. After some duration managing director pay the money to the supplier. Then general manager and production in-change of the company discuses about the raw

material and calculate or imagine the stock of raw material. But after supply of the raw material any mistake is found or if a problematic raw material comes then manager informs the supplier about the material.

The Purchase Procedure is as follows-

1. Need for the Organization Gujarat mitra is a big organization and it make a news paper. So it needed to many types of materials for these processes, the press Gujarat mitra purchase a paper roll in kg. andCamlin ink in different colour , purchase in some quality of chemicals and oils for machinery. Manager calculate the need of material and adjust identify the purchase.

2. Select the Supplier Managing direction and production manager select a suitable or appropriate supplier. A supplier should be good and honest. It is essential for the company. And who provide good quality, quantity and price. Its a necessary stage because we build a future calculation with them.

3. Identify the Potential Supplier In this step organization find the supplier according to their need. They contact him and then decide what is right. Then to supplier with a talk by a telephone them and bargaining with them about the price , quality and quantity.

4. Order for Purchase Finally the director and general manager checks the raw material quality, if it is not good that time it is returned by the general manager. But if raw materials are good then the productions that time is continuously order or purchase.

5. Due of Payment Due of material means time lag of payment. If a due of payment is more days it easy for the company. And it easily full fills its requirement. So due of payment plays very important role in the organization.

Receiving a Material Procedure:

The procedure of receiving a material is very simple in Gujaratmitrapvt.ltd. When a production manager gives an order to supplier of raw material i.e. paper roll , ink for the production procedure of the company, the supplier send a material to company by truck or tempo. Then Gujarat mitra press receives raw material. After this process the worker put these raw material in the warehouse of Gujarat mitra. But before production they

note down the material whatever they receive from the supplier. It is only for record of whatever raw materials received.

No. : Date : Sr no. Particulars Quantity Rate (Rs.) Total

How Production Plan is prepared for sales in Gujaratmitra?

Gujarat mitra is daily publishing around one lack copy of news paper. Gujarat mitra has to make 100000 papers daily. So first of all the managing director and in charge of the production department of the company have to purchase news paper. The list of requirement of raw material is not so much large but some essential raw material is require for the production of the newspaper like as:

1. Paper Roll The main raw material of press is paper roll. Without paper roll newspaper is never published. So first basic requirement of the company is to purchase collect paper roll. Company target is published to 1,00,000 papers daily, so company purchase paper roll according to making 1,00,000 copies of new paper daily.

2. Ink The second main raw material requirement is ink. Without ink the production also never starts. The requirement of ink is very higher. The company use four types of ink like black, blue, red and yellow. The main requirement of ink is a blank ink. There is a two type of ink like old set & hit set. And then sometimes company needed to different colour without above four colour that time machine automatic mixing the colour and make other colour but in the enter there is mainly 4 colour use.

3. Chemicals There are many type of chemical. This chemical is help for protect the paper form the external and some production process schedule. The company purchase the chemicals according to the need of the

company. And if must be non effective. So all members of this departments member and workers are protect from chemical.

4. Plate Films (Steel) This is the internal requirement of company which develop according the need of the Gujaratmitra. The Gujaratmitra daily published 1,00,000 copies,so head of production department adjust the

production from the volume of sales and then assume the raw material requirement. Firstly on the plate firm, there are printing a news which news they want to print , then after this plate is adjusted in the machine and the picture and news are printed. If it is printed by colour or black but its arrangement is on plate films.

Analysis of Plant Locationconsideringvariousfactors:

Plant location of gujaratmitra had been established by RESHAMVALA who is director of the company in 1863 at Surat. So it is very difficulty to know the factor considering plant location. But from the view point of general manager of gujaratmitra, the factor that affecting the plant layout is as follows:

1.

Product Gujaratmitra is a daily news papers published routine. Every day company print 90,000 to 1,00,000 news papers. So it is huge product for the company. So Gujaratmitra chooses a product layout. And now it is very successful company in the newspaper.

2.

Government Rulesand Regulations There are some government rules and regulation which are as follows. Company has a good freshening facility in the factory, safety provision in the factory for their workers. In every organization government rules and adopt to every organization.

3.

Facility for male and female employees Gujaratmitra also focus male and female facility like sitting room,offices,cabin etc. are separately created in for the male and female. In gujaratmitra many workers that are male and female are working in the organization. And other facilities are given well comparatively other company.

4.

General Factor In gujaratmitra, huge and heavy machines are at a group floor, means the production department is at a group floor. And advertisement, circulation and administration department are on the middle or top. And that is created like as big or modern offices and in this other facilities are good in the company. And the warehouses of the company are also on the middle floor. There is a arrangement of elevator for up lift the raw material or finished.

5.

Types of Machines or Equipments In gujaratmitra many machines are located but at plant are locate there are safety are require. And also see that which type of machine and other equipment also seeing because its a part of the production department. Because many workers are working on the machines and also we know how much space are required and enough to locate machines and other equipment.

TOSHIBA:

In gujaratmitra the machine of Toshiba is very big and a company need to more space for this machine in this organization. The Toshiba have large production capacity, so the company use this machine for the news papers title production, the Toshiba have 40,000 to 45,000 printing capacity to production per hour. And at that time it is very easy workfor the company. The Toshiba machine hasimport from the JAPAN, since 9000-2001. The company starts its production at the 12.30 till two hours. The production start like this, first the computer operator are make the computerized plate films on the bases of news and colour which they want and this plate input in the machine and also set paper roll in the machine. After sometime, this machine is operates by technician who has fully know technician who has fully know about the machine. This machine is handled by ten to twelve workers very carefully.

FAST - 300 Machine

It is another important machine in gujaratmitra. And it does not require more places in the organization. The fast-300 machine has medium capacity of the production, it have 40000 to 45000 capacity of production so the company use this machine for the production of the supplementary production. The supplementary production started to two or three days before, for e.g. Mondays supplementary produce before two days.

FOLDER MACHINE:

The gujarmitra have one folder machine , for the folder the extra page. It is very small machine and not a require a more space. This machine is not only folder but also binding the product. And one more benefit of that is in this procedure very few workers are require in the organization.

COROSET MACHINE A coroset is use for the supplementary production, the coroset have 35000 to40000 production capacity and coroset is use for colour print and colour picture in the news paper but its more uses in the supplementary. The process of the production is like same asthe Toshiba machine, in the coroset input the raw material of the paper &

Start the production. Here in this machine daily news also printed at the mid night.

MATERIAL HANDLING SYSTEM IN GUJARAT MITRA DEFINATION:

Material handling equipment is a control on a material through storage and transportation because in this process its uses are more in the organization.

Gujaratmitra is a press, so Gujaratmitra does not produce higher weightage product. So this is not using heavy material handling equipment like elevators, pipeline, robots and other equipment.

In Gujaratmitra there are some of the equipment are required.

1. CONVEYOR BELT: CONVEYOR BELT is use for travelling of goods from one place to another. It saves times and man power because when lot of goods are bulky this belt convenient.

2. REEL SHRAFT: In Gujaratmitra have to provide reels paper.These webs are almost 250 kgs weight. There is a hole in center of webs on which paper is rolled. Reel shaft is used to lift webs easily and to fit webs in to printing machine.

3. WASTE FOLDING MACHINE: In press there are many wastage so the west folding machine folds the feed material folds the feed material and ties up in to proper way so wastage can remove easily.

4. INK CONTAINER: Normally ink is used for print anything so this is a press and in their company they are used ink container to print the news in paper. There are two ink container in the machine.

5. REWINDING MACHINE: Rewinding machine is use for the rewind the roles. Which webs are unused they have to collect the webs and rewind in the machines. So they make best from west.

6. RUBBER ROLLER TROLLEY: This trolley is used for keep long reed type material arranged. The rubber roles are very important in for printing machines. In this trolley all the rubber rolls are kept.

INVENTORY CONTROL SYSTEM

MEANING:

Inventory control system is process by which the inventory is measured and regulated according to predetermine norms such as economics lot size, for order or production safety, stock, minimum level and maximum level, order level etc.

Gujaratmitra maintain a certain level of stock before the 15 days of its usage:

Items Black color Other Color Fountain Plate Kerosene Developer Gum Delete Automatic Gum A3-A4 plain paper Pressing Paper LPF Cartage Thread Oil

Stock Maintained 3500 kgs 1600 kgs 400 liters 1400 pieces 400 liters 150 liters 100 liters 12 bottles 20 liters 45 packs (each pack contains 480 pieces) 30 packs (each pack contains 250 pieces) 10 packs (each pack contains 100 pieces) 2 packs 300 kgs 200 liters

INVENTORY CONTROL OPERATION IN GUJARATMITRA:

Gujaratmitra being a process in dusty holding those items having substantial value is need to apply scientific methods of inventory control. We are require a items thus identified are review periodically to find out the consumption. So that average level are fixed reviewed. Whole inventories are classified in to three groups. The classification is based on the annual consumption value.

The groups of classification are as under based ABC analysis.

ABC ANAYSIS FOR INVENTORY CONTROL: ABC analysis is based on the requirement of items. The ABC analysis is divided in to 3 category i.e. A , B, C Category. In category A include total items account for major portion or % of the total consumption value which require a high degree of control. In category c include a large % of total consumption of value require least control. In between these items is % of are equal of of B items. In press, the they Category A B C Material Paper roll and ink Color ink Chemicals gujaratmitra produce only items, which

consumption

one product that is newspaper. So company classifies their material as per the ABC anaysis.

THE TECHNIQUES OF ABC ANAYSIS IN GUJARATMITRA:

The techniques of classification the items in to ABC categories described as following:

The analysis of the material as per their consumption value in percentage:

Items A B C

% in Total Items 20% 70% 10%

% in Consumption value 80% 15% 05%

DAILY PRODUTION PROCSSS:

Here at Surat location there is published all the edition Gujaratmitra mainly published 3 edition:

1. 2. 3.

Surat edition Baroda edition Mumbai edition

So here problem is create how to manage production process. So as a solution Gujaratmitra produce its edition according to a distance wise because which distance is far away, given to the first preference for printing. So here at GujaratmitraSurat printing from the Mumbai edition, then Baroda & lastly they printed Surat edition.

So this way they are manage the production system.

PRODUCT DESIGN AND SPECIFICATION:

Web Width Cut of length Unwind reel diameter Print format Size of rubber blanket Printing unit Number of paper web Paper specification Plate thickness Blanket thickness

620 mm, 800 mm 440 mm, 610 mm 1000 mm 600 + 425 mm 620 + 479 mm 0 to 4 1 or 2 40-140 gms 0.3 mm 2 mm

Unwind core Roll to sheet Roll to two fold Roll to three fold Electric power Maximum power load

70-76 mm 20000 30000 25000 440 volte 20 hp (2 units), 30 hp (3 units), 40 hp (4 units)

Maximum machine dimensions Overall length Overall width Overall height

4 printing units

12 meters 4 meters 2.6 meters

Human Resource Department

Human Resource Management:

Organization Human Resource Management Department:

Personnel Manager

Clerk

Technical Session

Peon

Workers

Recruitment and Selection:

Recruitment:
Process of Recruitment etc. Therefore type and skilled of personnel required in their Organization. In Gujarat Mitra, First of all it decided that how many numbers of personnel are to be needed. What type of personnel is Contacted? Sometimes they demand for manager, supervisors, helpers, informers, news reporters, engineers

Strategy Development: After deciding the planning for recruitment they decide the order from where they will get their employees. They will get their professionals, regional or local for technical workers and local market for Blue-collar employees.

How to Look: 1. Internal Recruitment Present employees Employees refered

Former employees Previous applicants

2.

External Recruitment Professional association Advertisement Employment exchanges Campus recruitment Walk ins, Wright ins, Talks ins. Consultant Radio & Television Competitors Acquisition & Mergers

When to Look: They have start finding the employees before two months ago from their require time. They have to decide some days for different type of qualities like for:Invitation for interviews issued. Arranging the interviews. Organization can make up its mind. Applicant offered jobs to make up their minds. Accepting offers to report for work.

These all are suggest that vacancies must be advertised two months before they expected to Occur.

Screening: In this step they screen the employees, whether they are capable to do the job or not. From this step they remove many applicants from recruitment process.

Evaluation and Control: In this step they decide about: Salary for recruitment Management & Professional Administration experience

Selection:

Process of Selection: 1.PRIMARY INTERVIEW -The general question is asked and checks the capabilities of the applicant. -Objective of this step is to select good applicants for the test.

2. SELECTION TEST -Jobbers who pass the preliminary interview are called for selection tests. -Different type of tests may be administrated depending on the job and company. -Generally tests are used to determined the applicants ability, at Intrude & personality.

3. EMPLOYMENT INTERVIEW -In regarding the particular job and general knowledge questions are asked to the applicants. -The objective of the interviews is to obtain additional information from the applicant. -To give general information to applicants such as companys policies, job, product manufactured and the like and to build the companys image among the applicants.

4.REFERENCE AND BACKGROUND CHECK -In Gujarat Mitra after taking the interview they have to checked reference & background of the applicant. -They checked out by letters of reference or telephone reference.

5. SELECTION DECISION - After search information through the preceding steps ,selection decision is made in Gujarat mitra. - The final decision has to be made from the pool if individuals who pass the tests, interviews and reference checks. - HR manager playas a crucial role in the final decision.

6. JOB OFFER

- Job offer is given to those applicants who have crossed all the previous hurdles.
7. CONTRACTS OF EMPLOYMENT

- Job title
- Duties - Rate of pays - Hours of working

- Work rules

ThereforeGujaratmitra has to provide good personnel staff.

PROMOTION, DEMOTION, & INCREMENT POLICIES:

To attract competitive and suitable workers

To put the workers in position where he will be of greater value to the company and where he get increases in their personnel satisfaction and income from his work. To increase an employees organizational effectiveness. To recognized individuals performance reward from his work To proved skills training & ability In Gujaratmitra there are provide promotion for their workers & employees They can get promotion if they are doing good work with their skills

TRAINING AND DEVELOPMENT TRAINING:

Gujaratmitra provides the training for the employees who are in their work. They are help to employees for improve their self and gave job satisfactory. They have to design typically method for training in short term and stated purposes. Training given by technically so some non-managerial personnel can improve their self. Their main purpose of training is to specific job related skills. There are also given training to the existing employees. Gujaratmitra organization known the importance of training so they invest their money in the training. Because they know that they will get desired result in future from this training. With views the company sends their employees outside for training. Likewise how get the news from city and how broadcast the news.

DEVELOPMENT:
Gujaratmitra also provide development of employees with high skills and knowledge They are providing philosophy and theoretical knowledge for general purposes. In there develop system involved preparing the individual for future job and growth of the individual in all respects.

INDUCTION TRAINING:

 Brief history and operation of the company. Products and services Organizations structure Location of departments Policies and procedures Rules, regulation and quality of works. Safety measures Terms & condition of service including wage working hours, overtime schemes Benefit & services for employees

Above all the orientation are consist for employees to help them during general induction information is also given on specific employee such as pensions ,health and welfare facilities and safety.

PROMOTION AND TRANSFER POLICIES:

PROMOTION POLICIES

The main features of a good promotional policy are as follows: 1. Suitable training & development opportunities should be provide so that employees can prepare themselves for advancement. 2. Detailed records of services & performance should be maintained for all employment. 3. The policy should be fair andimpartial,arbitrariness,favoritismetc.should be eliminated. 4. It should be consistent i.e. it should be applied uniformly irrespective of the person concerned.

TRANSFER POLICIES
1. transfer. 2. It should tell whether the transfer could be made within a department or also between departments. 3. employment. 4. 5. It should be put in writing. It should be communicated & explained to the employees. It should specify the effect of transfer on the seniority & pay of the It should indicate the executives responsible for initiating & approving the

PERFORMANACE APRAISAL SYSTEM:

1. To provide feedback to employment so that they come improve their job performance. 2. To provide a valid database for personnel decisions concerning placement, pay, promotion, transfer, punishment, etc. 3. To provide coaching, counseling, career planning & motivation to subordinates. 4. To diagnose the strengths & weaknesses of individual so as to identify further training needs. 5. To facilitate research in human resource management 6. To develop positive superior-suborning relations & there by reduce grievances. 7. To test the effectiveness of recruitment, selection, placement & inductions programmers.

Thus, performance appraisal aims at both judgmental & developmental efforts.

PERFORMANCE APPRAISAL SYSTEM

In gujaratmitra, there are two types of performance appraisal system. 1. 2. Performance checking of executives / members. Performance checking of workers.

Performance appraisal

1. Performance appraisal of managers 2. Performance appraisal of workers

THE PROCESS OF PERFORMANCE APPRAISAL:

1. ESTABLISHING PERFORMANCE STANDARD The first stage in the process is the setting of the standards, which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employment.

2. MEASURING THE ACTUAL PERFORMANC

It is a continuous process, which involves monitoring the performance through the year. This stage require the careful selection of the appropriate techniques of measurement, talking care that personal bias does not affect the outcome rather then interfering in an employee work.

3. COMPARING THE ACTUAL PERFORMANCE WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or standard performance. The comparison tells the deviations in the performance of the employees from the standards set.

4. DISCUSSING RESULT The result of the appraisal is communication and discussion with the employees on one-to-one basis. The focus of this discussion is on communication and listening.

5. DECISION MAKING: The last step of the process is to take decision which can be taken either to improve the performance of the employees take the related HR decision like rewards , promotion, demotion, transfer etc.

OBJECTIVES OF PERFORMANCE APPRAISAL:

1. Replacement of casual and unscientific appraisal by systematic, regular and equitable performance appraisal. 2. To reduce the subjectivity and make the appraisal objectives oriented. 3. Collection of information for making rational decision. 4. Just and equitable treatment to all employees and executives and identify their potentially. 5. To identify the need and area of training.

WAGES AND SALARY ADMINISTRATIVE

Wages & salary are the return to the employees for the work. Difference between wages are provided on temporary basis while salary on permanent basis while salary on permanent basis i.e. wages while salary is on monthly or yearly basis.

OBJECTIVES OF WAGES AND SALARY:

1. To attract competent personnel there are attracting to qualified and hard working people reasonable payment for their work for all jobs while are required.

2. To retain the present employees in Gujarat mitra there are paying at comparison lavel and company retain its personnel. 3. To improve productivity: There are also provide to improve the productivity in their organization. It also helps to motive employees. 4. To control cost: They are deciding through wages and salary administrative costs can be kept in the ability of the company to pay.

There are also provide to improve the union management relation, they are also improve public image of their company.

SALARY STRUCTURE GUJARAT MITRA:

Post Branch Manager Sales Manager Assistant Journalist Computer operator Worker Salary 10200 11550 7500 4790 6750 5540

OF

THE

EMPLOYEES

IN

The basic and minimum salary is paid as per the government rules and regulation.

It administration department (include HRD & F.D) the minimum salary is Rs.3760 per month and maximum salary is 11440rs per month to the staff member of Gujaratmitra. In editorial department, the minimum salary is paid rs.4235 to the editorial staff member in Gujaratmitra. In Gujaratmitra company staff, the minimum salary is paid rs.8875 to the workers and employees of the factory staff.

EMPLOYEES WELFARE ACTIVITIES IN GUJARATMITRA:

In Gujaratmitra welfare includes anything that is done for the comfort and improvement of employees and is provided and above the wages. welfare helps in keeping the morale and motivation of the employees high so as to retain the employees high so as to retain

The employees for longer duration.

LABOUR WELFARE HAS THE FOLLOWING OBJECTIVES:

1. To provide better life and health to the workers. 2. To make the workers happy to satisfied. 3. To relieve worker from industrial fatigue and to improve intellectual culture to material conditions of living of the workers.

There are two type of welfare activities are done by the human resource department of Gujaratmitra for employees and they areas follow 1. WELFARE ACTIVITIES: Statutory schemes Non-statutory welfare schemes.

TRADE UNION: Trade union act of 1926 define trade union as any combination whether temporary or permanent formed primary for the purpose of regulating the relation between workmen an employees and employees for imposed restrictive condition on the conduct of any trade or business and includes any federation of two or more trade unions

Finance Department

1) Procurement of fund 2) Utilization of fund The second main important function of finance department is how to use the fund? In this, greater emphasis is placed on the day to day problems faced by the finance manager in the area of fund analysis, financial planning and control. It includes following function: i. ii. iii. iv. v. Capital budgeting. Selection of a proper project for investment. To bring about financial co-ordinary between different department. To complete the project for investment. Exercising control over uses of funds.

3) Management of funds This is the main and most important finance function. It include such tools and short term funds like cost benefit analysis, optimization of capital structure and working capital, ratio analysis, fund flow analysis, rate of return on investment control technique, etc. It includes the following activities: i. ii. iii. iv. Tax planning. Allocation of profit between different types of reserves. Payment of tax and interest. Payment of installment of term loan.

WORKING CAPITAL MANAGEMENT

Capital investment in fixed assets like land, building, plant and machinery, furniture, etc is termed as fixed capital and apart of the total capital invested in current assets like stock, debtors bills receivables, cash and bank is known as working capital.

Generally term working capital refers to that part of capital which is not field up in the fixed assets but is used to meet the day to day requirements. It is invested in current assets like cash, stock, bills receivables, debtors, etc. This type of current asset is used to make payments for purchase raw material, wage and to meet other expenses till goods are sold and money gets collected against it. It is the working capital that keeps the wheels of the business running. So the financial management has to make planning for the working capital.

CYCLE OF WORKING CAPITAL IN GUJARAT MITRA

DEBTORS

CASH

FINISHED GOODS

RAW MATERIAL

The main short term source used by Gujarat Mitra company is working capital. And the role of working capital for the company is like blood in human body.

Components of working capital

The term working capital refers to the gross working capital, which represents the amount of funds invested in working capital, and represents the amount of funds invested in current assets. Current assets are those assets, which in the ordinary course of business which can be converted into cash within a short period of normally on accounting years.

CURRENT ASSETS Cash and bank balance. Short-term loans and advances. Bills receivables. Sundry debtors. Inventories such as Raw Materials Work-in-progress Finished goods

Prepaid expense.

Accrued incomes.

In a narrow sense, the term working capital refers to the net working capital. Net working capital is the excess of current assets over liabilities. NET WORKING CAPITAL= CURRENT ASSETS CURRENT LIABILITIES.

Current liabilities are those liabilities which are intended to be paid in the ordinary course of business within a short period normally of one accounting year.

WORKIN CAPITAL OF GUJARAT MITRA WORKING CAPITAL OF YEAR 2009-10, 2010-11& 2011-12 (IN LAKHS) CURRENT ASSETS Raw Materials Inventory Debtors Cash Other current Assets TOTAL 2009-10 1600 100 200 200 150 2050 2010-11 1500 90 250 210 100 2150 2011-12 1500 100 300 230 100 2230

CURRENT LIABILITIES Creditors Provisions for Taxation TOTAL 100 50 150 110 40 150 120 40 160

Total Working Capital Requirement

1900

2000

2070

a) Cash Flow Management:

Introduction:

Cash is the oxygen that enables a business to survive and prosper and is the primary indicator of business health. While a business can survive for a short time without sales or profits but without cash, it will die. For this reason the inflow and outflow of cash need careful monitoring and management.

This guide looks at the key elements of cash flow and at how effectively cash flow management will help protect the financial security of their business. It outlines the steps that Gujarat Mitra can take when dealing with their customers, suppliers and stakeholders to improve cash flow. It also highlights common cash flow problem and how to avoid them.

Good cash flow means that the pattern of income and expenditure a business allows it to have cash available to pay bills on time. Importance of cash: To make profit, Gujarat mitra business has to produce and deliver goods to their customers before being paid. Unfortunately, no matter how profitable the contact, if their staff and supplier before receiving payment from their customers, they will deliver their side of the bargain or receive any profit.

b) Receivable Management:
Receivable is another component part of total working capital. Along with cash management, for maintaining the structural health and minimizing the cost, management of receivables is equally important. Receivables include debtors and bills receivables. Both these items of current asset originate an account of credit sales. And credit sales is not a matter of choice for management but forced to adopt by the circumstances. Objectives of Receivable Management: To increase the sales. Competition. Increase in profit.

Needs for receivable Management.

A. To minimize the cost of receivables. 1. Opportunity cost: Because of credit sales a part of working capital remains invested in receivables. Such investment in receivables may be equal to the cost of raw material used during the goods sold, wages paid for processing and the other indirect expenses. 2. Administrative cost: Administrative cost or receivables include of processing the order, postage cost, stationary cost, collection cost, litigation cost, book keeping cost, filing cost, etc. 3. Collection cost: If the customer does not pay in time we have to write letter, reminder, send telegram or fax, message and sometime we have to send a person also for the collection purpose. B. To maximizing volume of sales and profit: Management of receivables is needed for maximization of sales volume and profit. What is needed is trade off between the cost and benefits by optimizing credit terms like credit period cash discount and collection policy. For maximizing sales volume and profit by adopting optimum credit terms management of receivables is needed. Optimum credit terms strike a balance between marginal revenue and marginal cost. C. Inventory management: Inventory management identify the level of inventory which allows for uninterrupted production but reduces the investment in raw materials and minimizes recording costs and hence increases cash flow, see supply chain management.

Just in time (JIT) Economic order quantity (EOQ) Economic production quantity (EPQ)

Investment management and inventory control must be designed to meet the dictates of the marketing strategic plan, many changes in market demand, new opportunities due to worldwide marketing and global sourcing of materials.

Despite the many changes that companies go through, the basic principles of inventory management and inventory control remain the same. Some of the new approaches and techniques are wrapped in new terminology, but the underlining principle for accomplishing good principle for accomplishing good inventory management and inventory activities have not changed.

The inventory management system and the inventory control process provides information to efficiently manage the flow of materials, effectively utility people and equipment, coordinate internal activities and communicate with customers. Inventory management and the activities of inventory control do not make decision or manage operation, they provide the information to manager who make more accurate and timely decisions to manage their operations

Comparative Statement
PARTICULAR SOURCES OF FUNDS 1. Capital 2. Reserves and Surplus 3. Loans (a) Secure Debentures (b) Unsecured loans from 500 3650 100 3600 13.89 100 3800 100 1000 27.39 1000 27.78 1000 26.32 2000 650 54.79 1500 17.81 600 41.67 16.67 2200 600 57.89 15.78 2009-10 % 2010-11 % 2011-12 %

directors relatives TOTAL

APPLICATION OF FUNDS 1. Fixed Assets 2. Investment (a) Government Security 3. Current advances (a) Inventory (b) Debtors (c) Cash and Bank (d) Other current assets (e) Loans Advances Less: (a) Liabilities (b) Provision 100 50 2.74 1.37 100 10 2.78 0.27 100 40 2.63 1.05 100 200 200 150 50 2.74 5.48 5.48 4.11 1.37 90 250 210 100 60 2.5 6.94 5.83 2.78 1.67 100 220 220 130 60 2.63 5.79 5.79 3.42 1.58 assets, loan and 500 13.70 700 19.44 710 18.68 2500 68.49 2200 61.11 2400 63.16

TOTAL 4. Miscellaneous Expenditure

550 100

15.07 600 2.74 100

16.67 2.78

590 100

15.52 2.63

(the extent not written off) TOTAL 3650 100 3600 100 3800 100

Interpretation:
1. The sources of funds have increased over the years for Rs.3650 for 2009-10, then decreased in the year 2010-11 to Rs.3600 and then again increased in 2011-12 to Rs.3800.

2. There has been an immense increase in the capital of the company from 54.79% to 57.89%. 3. Company has purchased new fixed assets over the years. 4. The inventory used is almost the same for all the years.

Ratio Analysis

1. Gross Profit Ratio GPR= Gross Profit x 100 Net Sales

PARTICULARS GROSS PROFIT 2009-10 2700 2010-11 2800 2011-12 3000

NET SALES RATIO

4000 67.5%

4500 62.2%

5000 60%

70.00% 68.00% 66.00% 64.00% 62.00% 60.00% 58.00% 56.00% 2009-10 2010-11 2011-12

Interpretation: The Gross profit of the company has declined over the years. For the year 2009-10 it has been 67.5% but then it declined to 62.2% for the next year and further declined to 60% in the year 2011-12. This is loss for the company and the company should take measures to improve it.

2. Net Profit Ratio NPR= Net Profit x 100 Net Sales

PARTICULARS NET PROFIT NET SALES RATIO 2009-10 181 4000 4.5% 2010-11 191 4500 4.2% 2011-12 200 5000 4%

4.60% 4.50% 4.40% 4.30% 4.20% 4.10% 4.00% 3.90% 3.80% 3.70% 2009-10 2010-11 2011-12

Interpretation: As the Gross Profit has declined over three years, there is also decline in Net Profit Ratio. For the year 2009-10 it was 4.5% and then declined to 4.2% in the year 2010-11 and further declined to 4% in 2011-12. The Net profit Ratio is too low. The company should cut down its expenses so as to increase its Net Profit.

3. Operating Ratio

Operating Ratio= Cost of goods sold + Operating expense x 100 Net Sales

PARTICULARS COST OF GOODS SOLD OPERATING EXPENSE NET SALES RATIO

2009-10 1300

2010-11 1400

2011-12 1450

600

650

700

4000 47.5%

4500 45.3%

5000 43%

48.00% 47.00% 46.00% 45.00% 44.00% 43.00% 42.00% 41.00% 40.00% 2009-10 2010-11 2011-12

Interpretation: There has been a decline in Operating ratio of the company which implies that the company has reduced itsoperating expenses over the years. The ratio for the initial year has been 47.5% and then it declined to 45.3% and further declined to 43% in the last year.

4. Current Ratio

Current ratio = Current Assets Current Liabilities

PARTICULARS CURRENT ASSET CURRENT LIABLITY RATIO 4.6:1 5:1 5.2:1 2009-10 700 150 2010-11 710 140 2011-12 730 140

5.3 5.2 5.1 5 4.9 4.8 4.7 4.6 4.5 4.4 4.3 2009-10 2010-11 2011-12

Interpretation: The Current ratio of the company in the year 2011-12 has been 5.2 : 1, which is good for the company as it has much of assets but also bad for the company has its assets are idle and not have been put in as investments. The Current Ratio of the company has increased over the three years. The ideal Current ratio is 2:1.

5. Liquid Ratio Liquid ratio = Liquid assets Current Liabilities

PARTICULARS LIQUID ASSET LIQUID LIABILITIES RATIO 6:1 5.5:1 5.9:1 2009-10 600 100 2010-11 610 110 2011-12 680 115

6.1 6 5.9 5.8 5.7 5.6 5.5 5.4 5.3 5.2 2009-10 2010-11 2011-12

Interpretation: The Liquid ratio of the company for the last year is 5.9:1 which is harmful for the company as the company has much of its assets in the liquid form. These assets should be put in purchase of fixed assets or investments.

6. Proprietary Ratio Proprietary Ratio = Shareholders fund Total assets

PARTICULARS SHAREHOLDERS FUND TOTAL ASSETS RATIO

2009-10 5000

2010-11 6000

2011-12 6500

3200 1.5:1

2910 2:1

3000 2.3:1

2.5 2 1.5 1 0.5 0 2009-10 2010-11 2011-12

Interpretation: The Proprietary ratio for the year 2009-10 was 1.5:1 which increased to 2:1 in the year 201011 and further increased to 2.3:1 which is the good sign for the company.

7. Administrative Expense ratio

Expense Ratio = Expense x 100 sales

PARTICULARS ADMINISTRATIVE EXPENSE SALES RATIO 4000 12.5% 4500 13.3% 5000 13% 2009-10 500 2010-11 600 2011-12 650

Series 1
13.40% 13.20% 13.00% 12.80% 12.60% 12.40% 12.20% 12.00% 2009-10 2010-11 2011-12

Interpretation: The Administrative expense ratio of the company has been increasing over the years which implies that the administrative expense has increased over the years. In the year 2009-10 it was 12.5% which increased to 13.3% in the year 2010-11 and then decreased to 13% in 201112 which is a good sign. It means the company is cutting down its administrative expenses.

8. Financial Expense Ratio

PARTICULARS FINANCIAL EXPENSE SALES RATIO

2009-10 500

2010-11 400

2011-12 650

4000 12.5%

4500 8.8%

5000 13%

14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2009-10 2010-11 2011-12

Interpretation: The financial expense ratio has incresed from 8.8% in the year 2010-11 to 13% in the year 2011-12 which has been a huge drawback for the company. The company should try to cut down its financial expenses to control its cost.

9. Selling and Distribution Expense Ratio

PARTICULARS SELLING EXPENSE SALES RATIO

2009-10 550

2010-11 450

2011-12 700

4000 13.75%

4500 10%

5000 14%

16 14 12 10 8 6 4 2 0 2009-10 2010-11 2011-12

Interpretation: The selling and distribution expense ratio for the year 2011-12 has been 14% which has been increased from 10% from the year 2010-11 which implies that the selling and distribution expense has increased over the last two years. Company should try to cut down its selling and distribution expenses taking suitable measures.

10.Stock Turnover Ratio

Stock Turnover Ratio = Cost of goods sold Average stock

PARTICULARS
COST OF GOODS SOLD AVERAGE STOCK RATIO 1250 1300

2009-10
1400

2010-11
1450

2011-12

1250 1.12:1

1250 1.16:1

1.04:1

1.18 1.16 1.14 1.12 1.1 1.08 1.06 1.04 1.02 1 0.98 2009-10 2010-11 2011-12

Interpretation: The stock turnover ratio of the company has increased over the years that mean the company has had sufficient stock over the years whenever it required. For the year 2009-10 it has been 1.04:1 and increased to 1.12:1 in the year 2010-11 and further increased to 1.16:1 in the year 2011-12.

11.Acid Test Ratio

Acid Test Ratio = Quick Asset Liquid Liabilities PARTICULARS QUICK ASSET LIQUID LIABILITIES RATIO 10:1 11.8:1 13:1 2009-10 1000 100 2010-11 1300 110 2011-12 1500 115

14 12 10 8 6 4 2 0 2009-10 2010-11 2011-12

Interpretation: The ideal ratio of acid test ratio is 1:1 but the company has its ratio 13:1 which means that the company has much of its assets as quick assets and the comapy is highly liquid. Due to this the company is losing much of the oppurtunities of earning an return on the excess assets.

12.Long Term fund To Fixed Asset Ratio

Long Term fund To Fixed Asset Ratio = Long term funds x 100 Fixed Asset PARTICULARS LONG TERM FUND FIXED ASSET RATIO 2700 97.3% 2200 95.4% 3000 93.3% 2650 2009-10 2100 2010-11 2800 2011-12

98.00% 97.00% 96.00% 95.00% 94.00% 93.00% 92.00% 91.00% 2009-10 2010-11 2011-12

Interpretation: The long term funds to fixed assetshas decreased over the years that means that the long term funds of the company has decreased over the years which is a bad sign. In the year 2009-10 it was 97.3% but it decreased to 95.4% in the year 2010-11 and further decreased to 93.3% in the year 2011-12.

13.Return On Capital Employed

Return On Capital Employed = Earning Before Interest and Tax x 100 Capital Employed

PARTICULARS EBIT CAPITAL EMPLOYED RATIO 15% 300 2000

2009-10 330 1500

2010-11 345 2200

2011-12

22%

15.6%

25% 20% 15% 10% 5% 0% 2009-10 2010-11 2011-12

Interpretation: The return on capital employed has deccreased over the years which is not a good sign for the company. It implies that the company is not earning much of returns for the capital employed by it. The return on capital employed for the year 2011-12 has been 15.6% which is much less as compared to 22% in the year 2010-11.

14.Return On Shareholders Fund

Return On Shareholders Fund = Net Profit Shareholders fund x 100

PARTICULARS NET PROFIT SHAREHOLDERS FUND RATIO 3.63% 181 5000

2009-10 191 6000

2010-11 200 6500

2011-12

3.18%

3.07%

3.70% 3.60% 3.50% 3.40% 3.30% 3.20% 3.10% 3.00% 2.90% 2.80% 2.70% 2009-10 2010-11 2011-12

Interpretation: The return on shareholders fund has decreased over the years which means that the shareholders of the company are receiving much lesser returns as compared to the earlier years. In the year 2009-10 it was 3.63% which decreased to 3.18% in 2010-11 and further decreased to 3.07% in 2011-12.

15.Total Asset Turnover Ratio = Sales Total Asset

PARTICULARS SALES TOTAL ASSESTS RATIO 4000 3200 1.25:1

2009-10 4500 2910 1.5:1

2010-11 5000 3000 1.6:1

2011-12

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009-10 2010-11 2011-12

Interpretation: Total assets turnover ratio implies the ratio of sales to that of total assets of the company. It was 1.25:1 in the year 2009-10 which further incresed to 1.5:1 and then incresed to 1.6:1 in the year 2011-12 which means that the company is putting lesser amount in total assets then what it earns in sales.

16.Creditors Ratio

Creditors Ratio = Creditors x 365 Credit purchase

PARTICULARS CREDITORS CREDIT PURCHASE RATIO 50 2000

2009-10 30 2250

2010-11 40 2300

2011-12

9.125 days

4.86 days

6.35 days

10 9 8 7 6 5 4 3 2 1 0 2009-10 2010-11 2011-12

Interpretation: Creditors ratio implies that in how many days the company is able to pay back its creditors. In the year 2009-10 it was 9.125 days which then decreased to 4.86 days in 2010-11 and further increased to 6.35 days in 2011-12. The creditors ratio should be kept high which maintains the liquidity in the company.

17.Debtors ratio
Debtors Ratio= Debtors x 365 Credit sales

PARTICULARS DEBTORS CREDIT SALES RATIO 200 1000

2009-10 250 1200

2010-11 220 1800

2011-12

73 days

76.04 days

44.6 days

days
80 70 60 50 40 30 20 10 0 2009-10 2010-11 2011-12

Interpretation: The debtors ratio implies that in how many days is the company able to get the amount back from its debtors. This ratio should be kept low as possible. In the year 2009-10 it was 73 days which then increased to 76.04 days in the year 2010-11 but then decreased to 44.6 days in 2011-12 which is good for the company.

NOTE:
The figures present in the above ratios are approximate figures. Due to the privacy of the company we are not using the actual data but the approximate figures to justify the project report and to show the knowledge of applicable ratios.

Bibliography

The following are the sources from where the information is gathered which have helped in the completion of this project successfully without which it would have been very difficult for us to complete this project. The verbal information provided by Mr. AnandUpadhya (H.O.D of Administrative Department) about the company and its history and origin. The project made by the student who have done their summer training at Gujaratmitra earlier for some detailed information which we lacked in gaining.

 www.google.com for the images we have used in our project. www.gujaratmitra.in for some detailed information about the company.

Annexure
Balance sheet of Gujarat Mitra of three years (The figures are in lacks and are approximate figures.)
PARTICULAR SOURCES OF FUNDS 1. Capital 2. Reserves and Surplus 3. Loans (c) Secure Debentures (d) Unsecured loans from 500 3650 3600 3800 1000 1000 1000 2000 650 2009-10 2010-11 ( In lacks ) 1500 600 2200 600 2011-12

directors relatives TOTAL

APPLICATION OF FUNDS 1. Fixed Assets 2. Investment (b) Government Security 3. Current assets, loan and advances 500 700 600 2500 2200 2000

(f) Inventory (g) Debtors (h) Cash and Bank (i) Other current assets (j) Loans Advances Less: (c) Liabilities (d) Provision

100 200 200 150 50

90 250 210 100 60

100 220 220 130 60

100 50

100 40

100 40

TOTAL 4. Miscellaneous Expenditure (the extent not written off) TOTAL

550 100

570 100

590 100

3650

3570

3290

SCHEDULE 1 Share Capital Authorized Capital Equity share capital of 100 each Issues Surplus Equity share capital of 100 each 2500 2500

SCHEDULE 2 General Reserve Capital Reserve Profit and loss A/C 300 50 300

SCHEDULE 3 Debenture Loans from relative 1000

SCHEDULE 4 Goodwill Furniture Fixtures Plant and machinery

Factory 2800 2500

Description Net sales (-) Cost of Goods Sold Gross profit Other income Total income Expenditure Staff cost Other expenditure Depreciation Cost of raw materials consumed Cost of bullion Increase/decrease in stock in trade Interest Exceptional item Profit/loss Tax Net profit/loss from Ordinary activities after tax 150 450 100 1600 75 100 210 15 300 119 181 4000 1300 2700 300 3000