Вы находитесь на странице: 1из 38

1.

1INDUSTRY PROFILE

A plastic material is any of a wide range of synthetic or semi-synthetic organic solids


used in the manufacture of industrial products. Plastics are typically polymers of high
molecular mass, and may contain other substances to improve performance and/or
reduce production costs. Monomers of plastic are either natural or synthetic organic
compounds.
There are two types of plastics: thermoplastics and thermosetting polymers.
Thermoplastics are the plastics that do not undergo chemical change in their
composition when heated and can be molded again and again; examples are
polyethylene,

polypropylene,

polystyrene,

polyvinyl

chloride

and

polytetrafluoroethylene (PTFE). Thermosets can melt and take shape once; after they
have solidified, they stay solid.
The raw materials needed to make most plastics come from petroleum and natural
gas.

1.1.1 Product lines


Plastic Chairs
5.2.4.1.1. Plastic Chair without Handle
Our range of Plastic Chair without Handle is widely acknowledged for its
comfortable sitting and long functional life.
Used in cyber cafes, waiting rooms and other
such places, the range is procured from all the
most

trustworthy

vendors.

Our

business

associates never compromise with the quality


of

the range and work in accordance with the set


quality parameters.

5.2.4.1.2. Plastic Chair


We put forward a range of Plastic Chair that is
known for its rigid construction and exquisite
designs. Our vendors make use of quality raw
material,

new

technologies

and

certified

machines for manufacturing the range. The


range has carved a niche in the entire market,
owing to its unmatched attributes.
5.2.4.2. Revolving Chairs
Pradeep Industries offers a fine selection of Adjustable Revolving Chair that
suits all types of interior and decor. It is portable
and provides various seating and back positions
for the comfort of the users. With the black and
white

colour

combination,

this

adjustable

revolving chair is very popular in the market for


its durability. It is light weight made by the high
grade raw materials. We manufacture these
chairs in various colours, shapes, sizes and
designs as per the requirement of our clients.
5.2.4.3. Steel plastic furniture
We are engaged in offering an extensive range of
restaurant and cafeteria furniture. It is manufactured
using quality material like wood, stainless steel,
plastic polymer and available in various patterns &
designs. Our range of restaurant & cafeteria furniture
is highly appreciated for its beautiful designs,
attractive color combinations, durability and proper
finishing.

5.2.4.4. Public Sofa


A modular seating system of simple classic lines suitable for external and
interior use .The tubular framework and wide seat pans give the Public
2

seating range a distinctive appearance which will


contribute to the character of any scheme. Bench
seating units are standard single and double sided
with tubular frames and armrests. Public seats are
available in single, double or triple seat modules
with perforated or upholstered seat pans or as
timber bench units.
5.2.5.5. Snack Tables
We offer our clients a

wide collection of Plastic

Table

that

enhances the overall look

of the interior of the

place. Our range of Table

& Chair is designed in

accordance

current

trends

prevailing in the market.

have

smooth and fine polish

These

&

Chair

chairs

with

and are available in

both

customized

designs and colour as per

shapes,

standard

the

&

the clients' requirements.


5.2.5.6. School Furniture
Classroom furniture School desk and chair for
college and University Aluminium alloy back and
seat frame 7 years of warranty School desk and
chair for college and University Aluminium alloy
back and seat frame Fireproof board for seat
and table Two or three or four or five seats in
one row

5.2.5.7. Baby Furniture


Steel pipe, cleaned by sand-blasting, then coated with phosphate solution and
with finished with electro-static powder coating .Designed under the scientific
principle of human mechanics and kinematics.

5.2.5.8. House Hold Furniture

A variety of range of household care products are also designed and


manufactured. These are light weight, beautiful, easy to use and made from
high grade resin. Variety includes tubs, flower pots etc.

1.1.2 PEST Analysis


A scan of the external macro environment in which the firm operates can be
expressed in the following factors:
1.
2.
3.
4.

Political, Governmental and Legal factors


Economic factors
Social, Cultural and other factors
Technological factors

Political Factors, Governmental and Legal Factors:

Indian government is somehow stable in these days and focusing on


the foreign trade. Pradip Industries plastic industry is taking advantage

of this move by government and is trying to increase their exports.


Government is providing opportunities to companies to provide benefits
like old-age benefits, disability benefits, pension etc. These benefits are
to be provided by every company under Social Security Ordinance.
Pradip Industries is also providing its employees benefits of Social

Security.
The company has a trade mark and a trade name that gives the
company an exclusive right by government policies to use it and enter

into contracts and dealings through its trade name.


All the tax related policies are followed by Pradip Industries.
The company also publishes its annual reports as it is made

compulsory by Government.
The company is bound to follow workers safety regulations as laid

down by workers safety act.


Exporters and importers of India are facing problems to get visa from

foreign embassies due to security issues.


Companies are paying heavy import duty on raw materials due to
which per unit cost is increasing.

Economic Factors

Pradip Industries plays an important role for economic growth by

contributing to economy of country.


The company offers a variety of products for different classes of

consumers.
Large market share due to fine quality and brand name.
The rising in the utilities increased cost of production.
The rise in service charges and interest rates on loans of Banks is a

drawback for plastic furniture industry.


Fluctuations in foreign exchange rates affect prices of raw materials.
The exchange rate of the company is high due to which customers
have high confidence on PRADIP INDUSTRIES.

Social, Cultural and Other Factors

Company is providing various products which are helping in improving

life styles of people.


Company is providing models in a variety of fashion which can be used

differently at different places.


Buyers are quality conscious, so to meet standards of buyers,

manufacturers are maintaining high quality with moderate rates.


Firm is running on family relations rather than new people.
Demands are increasing so plastic manufacturing standards are getting
in accordance.

Technological Factors

Due to technological improvements many items are available at lower

prices from China and Pradip Industries is taking full benefit from it.
The manufacturing department has also different types of dyes for

different models and shapes of furniture.


A tool shop also operates within the factory premises, which
manufactures its own tools to be used in production. Latest technology

is being used by the company.


The company has provided computers to all staff members to eliminate
cost of stationary and save time.

Different Software are used in every department for advertisement,


employee database, payroll and maintenance of accounts.

The Indian plastic industry has taken great strides. In the last few decades, the
industry has grown to the status of a leading sector in the country with a sizable
base. The material is gaining notable importance in different spheres of activity
and the per capita consumption is increasing at a fast pace. Continuous
advancements and developments in polymer technology, processing machineries,
expertise, and cost effective manufacturing is fast replacing the typical materials
in

different

segments

with

plastics.

On the basis of value added, share of India's plastic products industry is about
0.5% of India's GDP. The export of plastic products also yield about 1% of the
country's exports. The sector has a large presence of small scale companies in the
industry, which account for more than 50% turnover of the industry and provides
employment to an estimate of about 0.4 million people in the country.
Approximately Rs 100 billion are invested in the form of fixed assets in the plastic
processing

industry.

History
Indian plastic industry has made significant achievements in the country ever
since it made a promising beginning with the start of production of polystyrene in
1957. The industry is growing at a rapid pace and the per capita consumption of
plastics in the country has increased several times as compared to the earlier
decade. The chronology of production of polymers is summarized as under

1957 - Polystyrene

1959 - LDPE

1961 - PVC

1968 - HDPE
7

1978 - Polypropylene

Currently, the Indian plastic industry is highly fragmented with an estimate of around
25,000 firms and over 400,000 employees. The top 100 players of Indian plastic
industry account for just 20% of the industry turnover. Barring 10 to 15% of the firms
that can be categorized as medium scale enterprises, most of the units operate on a
small

scale

basis.

The immense potential of Indian plastic industry has motivated Indian manufacturers
to acquire technical expertise, achieve superior quality standards and build capacities
in different facets of the booming plastic industry. Substantial developments in the
plastic machinery sector coupled with matching developments in the petrochemical
sector, both of which support the plastic processing industry, have facilitated the
plastic processors to develop capacities to cater both the domestic as well as overseas
exports.
Exports
In the calendar year 2006, the value of world plastic export was US$ 375 billion.
However the share of India was less than 1 % with exports of worth US$ 3.187
billion. The percentage of growth in export was 21 %. During this trend of growth in
exports, the export of plastics raw material increased from 55 % to 60 % of the total
export of plastic goods, while the export of processed plastic goods has registered a
negative growth from 45 % to 9 %. According to recent reports, the industry is said to
be losing an opportunity of USD 300 million through value addition on the raw
materials

that

are

exported.

The top 10 trading partners for Indian plastic industry are

USA

UAE

Italy

UK

Belgium

Germany

Singapore

Saudi Arabia

China

Hong Kong

The Indian plastic exports were valued at about US$ 532 million during FY 2004 (1st
half FY2005 exports US $ 295 million). With significant capacity additions leading to
over-capacity in domestic markets during FY2001 and beyond, polymer exports have
increased considerably. However, due to the lower competitiveness of the plastic
products

industry,

polymers

have

been

exported

directly.

Products
The

major

plastic

products

that

India

export

are

Raw Materials - PVC, polypropylene, polyethylene, polystyrene, ABS, polyester


chips,

urea

phenol

formaldehyde,

master

batches,

additives,

etc

Packaging - PP / HDPE woven sacks / bags / fabrics, poly-lined jute goods, box
strapping, BOPP tapes, a range of plastic sheeting / films (of PVC, PP, HDPE, nylon,
FRP, PTFE, acrylic, etc.), pouches, crates, bottles, containers, barrels, cans, carboys,
shopping

carrier

garbage

bags.

Films - Polyester film, BOPP film, mesh, metallised / multilayer films and photo films
Consumer Goods - Toothbrushes, cleaning brushes, hair brushes, nail / cosmetic
brushes, combs, molded furniture (chairs, tables, etc.) house ware, kitchenware,
insulated molded house ware, microwave re-heatable containers, mats and mattresses,
water bottles, gifts and novelties, a range of stationery items like files, folders,

mathematical

instrument

etc.

Writing Instruments - Pens, ball pens, markers, sign pens, refills, etc.
Travel ware - Molded luggage, soft luggage, a range of bags like school bags / ladies
handbags,

wallets,

etc.

Leather Cloth / Artificial Leather Floor Coverings - Vinyl floor coverings and
linoleums
Foam Boards Drip Irrigation Systems / Components Pipes & Pipe Fittings - Made of
PVC,

HDPE,

PP,

FRP,

nylon

Water Storage Tanks Toys and Games Engineering Plastics - Auto components, parts
for various machinery / equipment in telecommunications, railways, electronics, etc.
Electrical Accessories FRP / GRP Products - Safety helmets / equipment, pipes,
storage
Sanitary

tanks,
Fittings

Construction

Cisterns,
PVC

toilet

etc.
seats,

profiles,

bathroom

doors,

fittings,

windows,

etc.
etc.

Tarpaulins Laminates Fishnets / Fishing Lines Cordage / Ropes / Twins Eyewear Lenses,

spectacle

frames,

goggles,

etc.

Laboratory Ware Surgical / Medical - Disposable syringes, blood / urine bags, I.V.
sets,

etc.

10

1.1.5 Trends in Indian Export of Plastic Products -

India Plastic Products Exports FY 2004 US$ 531.6 mn

Future

Forecast

The Indian plastic industry clearly has the potential to continue its fast growth.
However, over the next few years, competition in the industry is expected to increase

11

considerably, as a result of global trends, which will become applicable to the


liberalizing economy of country. To survive the competition, both polymer
manufacturers and processors will need to adopt radically new methods and
approaches to reduce costs, improve market and customer service and management of
performance.
The per capita consumption of plastics in India is well below the world average.
However it also reflects the many years of growth ahead, as the country's economy
continues to grow and upgrade the usage of products. Translating the expected growth
rate into incremental demand, it is obvious that the country will remain one of the
largest sources of additional demand for almost all kinds of plastics.
Hence, it is clear that plastics will continue to be a growth industry, with boosting
prospects for fresh investments in polymerization and downstream processing
capacity. This is in contrast to the situation in various other countries, where growth
prospects are limited, either because of stagnant demand or due to the historical over
building. In such countries, the overall outlook would be far less promising, with the
key imperatives being cost cutting and capacity rationalization.

12

1.2 COMPANY PROFILE


Name of the Company Date of In-corporation Constitution
Registered & Adm. Office Directors
.
Contact Person
: Pradeep Induatrial Packers Pvt Ltd.
: 22-12-1984.
: Private Limited Company
: A-16, IInd Stage, Peenya Industrial Stage, Bangalore - 560 058, (Karnataka), India.
: 1) Mr. Murli Manohar Saraf, 2) Mr. Karan Ramsisaria
: Mr. Murli Manohar Saraf (Director) Ph. No. 22955141

Promoters/ DirectorsMr. Murli Manohar Saraf (B.Com, FCA) is highly


experienced and is in the business since more than three decades, The Director is
qualified CA. He has associated himself with the existing polymer and plastic fabric
business since last 25 years and contributed his knowledge & experience in enhancing
the business. As he is qualified CA, it helped the company to reach the finance from
bank on favorable conditions in the initial days of the company and contributed a lot
in building up the prudent accounting system in the company. He is also looking after
the arrangement and procurement of overseas material for imports into India,
negotiation of material prices with the overseas suppliers and arranging the bank
finance for the same. He makes the analysis of movement of prices of polymers, its
feedstock and its variants in both the international and domestic market. His analysis
of prices had provided some good opportunity to the company and eventually they
were materialized in growth and goodwill in the market and with financiers. It is

13

needless to say that he is one of the foundation pillar of the company on which the
growth & progress of the company is ensured
Mr.Karan Ramsisaraia (MBA) is young and aspiring and taking the initiative with
his academic skills and present information technology tools to make this business
compatible with the present environment.
Activity and line of Business:Since its Incorporation the Company has been in the
business of Importing of Polymers (Plastic Granules) and its distribution in the Local
Markets since its incorporation. Present the company has stopped imports and procure
the material from domestic market.
The company is also in the business of Mosquito Net fabrics. The company gets
these mosquito net fabrics manufactured through its Job Workers.
The Company is also a Del Credere and Consignment stockist (DCA & CS Agent)
of M/s. Indian Oil Corporation LTd (IOCL) A Public Sector Undertaking (PSU), for
the Karnataka Region
(Bangalore) for its Polymers products. The Agency from one of the renowned refinery
gives the company an abundant opportunity.
Brief Category of Polymers
.

a) HDPE High Density Polyethylene

b) LDPE/ LLDPE Low density Polyethylene

c) PP Polypropylene
These in themselves have wide varieties of grades, which are applicable in
manufacturing of various plastic items. Each grade have its own technical
specifications and usage.

14

Plastics Industry Scenario:


Plastic is a versatile product, which is expanding its reach to every nook and corner of
the country and various different applications. Plastic have been interwoven into our
lives so much that it is almost impossible to imagine life without them. The economic
growth has fuelled the increased demand for plastic in various sectors like appliances,
construction, electronics, medical, packaging, water supply, drainage, electrical
appliances and almost in every sphere.
The Plastics industry in India has been registering a average growth of 13-15%. Here the per
capita consumption of plastic is reported to be just 6.0 8.0 Kg, which is far lower than the
worlds average (35 kg). So we can see that there is a huge gap and a huge opportunity to tap.

15

Managing
Director

Director

Director

Head of
General
Administration

Head of
Research and
Development
Creative
Manager

Head of
Information
Technology

Head of Human
Resource

Head of
Finance

Head of
Production

Accounts
Manager

Head of
Technology

Facotr
Inspect

Employee
Trainees
Employee
Trainees

Employee
Trainees

Invento
Manag

Employee
Trainees

Person
Inchar

Qualit
Inspect

16

3.1 FINANCE
The company comprises pf a very skilled and efficient finance department as the
companys major operations were related to the import and export of polymer plastics.
Initially , I started off with the analysis of the financial statements of Pradeep
industries for the last three financial years starting from 2012-2013. I found out that
the company was earning good profits by purchasing the raw material in the domestic
market rather than importing it. The reason behind this was that the demand for
polymers is very high in the international due to which the prices have shown a rising
trend in the past few years. the mentor also taught me how to control risk through
currency hedging. The finance department had a total of ten people under the finance
head. I had a chance to interact with each one of them. All of these individuals were
qualified and had immense knowledge on the various aspects of finance. The finance
department of the company works on the amount of working capital required by the
company for its day to day operations. Being a trading firm , the company has to
manage its day to day cash flows in a very efficient manner. The fixed capital
management is very minimal or negligible for the company. The analysts also keep a
track of the forex market on a day to day basis. They also ensure the necessary
procurement and allocation of funds in the correct avenues to ensure optimum
utilization of funds of.the department ensured that the company has enough funds to
facilitate instant orders or purchase of raw materials. The finance department of
Pradeep industries works closely with the departments of other subsidiaries under
Shyam Plastics.
At the base level, your finance department will be responsible for all the day to day
transactional accounting for the business. This will include the tracking of all
transactions and the management of any government reporting. In very small ownermanaged businesses this role is often filled by a family member with accounting
experience. An outside accounting firm is usually used for annual financial statements
and returns. In larger organizations this role will extend right through to preparing the
financial statements with an external auditor engaged for assurance purposes.
The finance department is also responsible for management of the organizations cash
flow and ensuring there are enough funds available to meet the day to day payments.
This area also encompasses the credit and collections policies for the companys
17

customers, to ensure the organization is paid on time, and that there is a payment
policy for the companys suppliers. In most organizations there will be some form of
forecast prepared on a regular basis to systematically calculate the ongoing cash
needs.
Where there are cash needs beyond the day to day working capital, the finance
department is responsible for advising and sourcing longer term financing. Financing
may be obtained though bank or private lender debt or, in applicable firms, share
issues to private investors. If the organization is ready to target angel investors or
venture capitalists the finance department will be key in preparing the documents
required

for

thesepresentationsandmayworkwithoutsideconsultantsonacompanyvaluation. In larger
firms considering public share offerings the finance department will assist with the
preparation of the offering documents but will likely also use outside consultants to
advise on this complicated process.
With the must-dos taken care of, the finance department can now start to contribute
to the management and improvement of the operations by measuring and reporting
regularly on key numbers crucial to the success of the organization. Management
accounting information is information that managers can use to monitor the
operations and decide where further attention may be required. It will likely include
some non- financial information and should be communicated to managers in a way
that is easy to understand. In smaller owner-managed businesses this resource, though
extremely important, is often overlooked or ignored.
Looking forward, the finance department will work with managers to prepare the
organizations budgets and forecasts, and to report back on the progress against these
throughout the year. This information can be used to plan staffing levels, asset
purchases and expansions and cash needs, before they become necessary. Some
organizations often plan by the seat of their pants, while organizations know it is
important to have some idea of where you want to go before you start going there.
Finally, the finance department should be called upon to provide information to assist
managers in making key strategic decisions, such as which markets or projects to
pursue or the payback periods for large capital purchases. The finance department can

18

often contribute an objective perspective based on special financial assessment


techniques.
In summary, some organizations know the finance department should be considered a
resource to assist managers in her running of the business . With the growing
popularity of outsourced finance departments, it is possible for even small businesses
to have access to all of the benefits of a full finance department, through part time
professionals, at a fraction

19

3.2 MARKETING
The senior member of the marketing department takes responsibility for setting
marketing strategy in line with overall company strategy and objectives. The strategy
may be to increase share in a specific market sector, for example, to enter a new
sector, or to open a new channel of distribution, such as the Internet, to reach a wider
geographical market. The marketing department reaches agreement on strategy with
the board or senior management team before planning campaigns in detail.
Market Research
Market research is a key responsibility for the marketing department. Research helps
the company identify market opportunities and gain a better understanding of
customer needs. It also helps them understand competitors strengths and weaknesses
so they can take action to protect business with existing customers or win business
from weaker competitors. The department can carry out its own research by studying
industry reports, market data on websites, or by contacting customers and prospects to
survey their needs and attitudes. Alternatively, they can brief a market research firm to
carry out the research.
Product Development
The marketing department works with Internal or external product development teams
to develop new products or improve existing ones. The department analyzes sales of
existing products and identifies gaps in the product range where there may be
opportunities for the company. Marketing employees provide development teams with
information on customer needs and preferences to help them identify the features or
improvements to incorporate in new products. Later in the product development
process, the marketing department sets prices and prepares plans to launch the
product.

Communications
Marketing departments plan campaigns and develop communications material to
promote products and services to customers and prospects. Depending on their
20

available budgets, they may plan advertising campaigns, develop e-mail marketing
programs, create promotional content for the company website, write press releases or
product publications, such as product leaflets, company brochures, product data sheets
or customer newsletters. They may write and design the promotional material if they
have skills within the department or they may appoint advertising agencies or design
firms to produce the work.
Sales Support
Cooperation between the sales and marketing departments can improve sales
performance and speed up business growth. The marketing department can provide
sales teams with high-quality leads by running advertisements that include a reply
mechanism, such as a coupon or telephone number, or by encouraging visitors to the
company website to register their details in return for a free newsletter or special
report. Marketing also prepares presentations for the sales team and supplies them
with stocks of promotional material to give to customers and pros

21

3.3 HUMAN RESOURCE MANAGEMENT


In organisation cannot build a good team of working professionals without good
Human Resources. The key functions of the Human Resources Management (HRM)
team include recruiting people, training them, performance appraisals, motivating
employees as well as workplace communication, workplace safety, and much more.
The beneficial effects of these functions are discussed here:
Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR
managers come up with plans and strategies for hiring the right kind of people. They
design the criteria which is best suited for a specific job description. Their other tasks
related to recruitment include formulating the obligations of an employee and the
scope of tasks assigned to him or her. Based on these two factors, the contract of an
employee with the company is prepared. When needed, they also provide training to
the employees according to the requirements of the organisation. Thus, the staff
members get the opportunity to sharpen their existing skills or develop specialised
skills which in turn, will help them to take up some new roles.
Performance Appraisals
HRM encourages the people working in an organisation, to work according to their
potential and gives them suggestions that can help them to bring about improvement
in it. The team communicates with the staff individually from time to time and
provides all the necessary information regarding their performances and also defines
their respective roles. This is beneficial as it enables them to form an outline of their
anticipated goals in much clearer terms and thereby, helps them execute the goals with
best possible efforts. Performance appraisals, when taken on a regular basis, motivate
the employees.
25
Maintaining Work Atmosphere

22

This is a vital aspect of HRM because the performance of an individual in an


organisation is largely driven by the work atmosphere or work culture that prevails at
the workplace. A good working condition is one of the benefits that the employees can
expect from an efficient human resource team. A safe, clean and healthy environment
can bring out the best in an employee. A friendly atmosphere gives the staff members
job satisfaction as well.
Managing Disputes
In an organisation, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a
scenario, it is the human resource department which acts as a consultant and mediator
to sort out those issues in an effective manner. They first hear the grievances of the
employees. Then they come up with suitable solutions to sort them out. In other
words, they take timely action and prevent things from going out of hands.
Developing Public Relations
The responsibility of establishing good public relations lies with the HRM to a great
extent. They organise business meetings, seminars and various official gatherings on
behalf of the company in order to build up relationships with other business sectors.
Sometimes, the HR department plays an active role in preparing the business and
marketing plans for the organisation too.

23

3.4 PRODUCTION
The production department is responsible for converting inputs into outputs through
the stages of production processes. The Production Manager is responsible for making
sure that raw materials are provided and made into finished goods effectively. He or
she must make sure that work is carried out smoothly, and must supervise procedures
for making work more efficient and more enjoyable.
There are five production sub-functions
Production and planning.They will set the standards and targets at each stage of
the production process. The
quantity and quality of products coming off a production line will be closely
monitored.
Purchasing department
This department will provide the materials, components and equipment required. An
essential part of this responsibility is to ensure that stocks arrive on time and are of
good quality
The stores departmentThe stores department are responsible for stocking all the
necessary tools, , raw
materials and equipment required to service the manufacturing process.
The design and technical support departmentThey are responsible for the
design and testing of new product processes and product
types, together with the development of prototypes through to the final product.
The works department
This department is concerned with the manufacture of products. This will include the
maintenance of the production line and other necessary repairs. The works department

24

may also have responsibility for quality control and inspection.


CHAPTER 4
ANALYSIS AND INTERPRETATION

25

4.1 AREA OF SPECIALISATION


I specialized in the area of finance as I did majority of my work under this
department. I started off by analyzing the financial results of the last three years. I also
analyzed the CMA data of the company and learned how to prepare it as well. My
main project was to analyze the audited results for the previous year. The audited
results included the income statement as well as the segment wise results of the
company. The following is the analysis that I made.
Analysis of the Income Statement
.

The net sales have reduced in the last quarter, which is a negative sign for
the company as the sales for a company are expected to increase in every quarter. This
downfall is due to the low operations of the company and also due to a decreased
demand in the international market. Although, the turnover has increased in the
financial year, the increase is very minimal as compared to the turnovers of the
company in the past few years prior to 2014=15/ this reduction is also due to the
underperformance of a few segments in the current year. Sectors like cotton yarn have
produced revenues way below the expected results.

The cost of raw materials has increased has almost increased by 5% due to
the increase in the price of the raw materials required by the company for production.
A positive sign for the company is that increase in the cost of materials is
approximately 3% less than the net increase in revenue from sales.

The major increase on the expenses side has been seen in the purchase of
stock- in trade which has resulted in the cut down in profits in 2015-16.

The employee benefit expenses have increased marginally by 2-3% which


or due to the increment of many employees at all levels of the organization. this item
should always have an increasing trend in the income statement because employees
are ;assets to every company and should be given utmost importance.

The depreciation and amortization expenses have increased by about 6%.


This shows that the company has acquired new tangible or intangible assets during the
year. As it is a non-cash expense , the annual cash inflow will be Rs.4 Crore more than

26

the net profits.

The EBIT of the company has increased by 20% in the year 2015-16.
Despite operating a relatively low scale , the company has shown a decent growth in
its earnings.

The finance cost of the company has come down by 40%. This is a really
positive sign for the company as it shows that the company has repaved a huge
amount of its borrowings. This also helps in reducing the fixed interest liability and
thus also adds to the profit of the company.

The PAT has shown an increase of 35% from the year 2014-15 to 2015-16.
This indicates that the company has shown a reasonable growth inspite of the
underperformance of a few sectors.

The Equity share capital is same in both the years which indicates that no
new shares have been issued during the year.

The companys reserves have increased by 12% which ensures a higher


amount of security and scope for expansion in the future. This is because the company
has a high amount of reserves accumulated over the years and can be easily used for
diversification and emergency purposes in the future.

The company has ensured a stable earnings per share over the years. this
indicates that the company is maximizing their shareholders wealth and thus fulfilling
the most important objective of financial management. Analysis of the Segment
Wise Results

The cotton yarn segment has shown decline of about 5% in the year 201516 as compared to the previous year. This segment has been underperforming for the
past 2-3 years due to a fall in the demand in the international market, one of the other
reasons is the rise in the price of the inputs used for the manufacturing process.
Although , the total cost of raw materials has reduced marginally by about 1% which
has helped in compensating for the decline in revenue to a small extent.

27

The maize processing sector has proved to be one of the most lucrative

sectors for the company. The company has shown a growth of almost 17% in 201516. Although, the total cost involved in the maize processing sector has increased by
almost 2%. This has reduced the total profit that could have been achieved by a small
margin.

The agro processing has produced the highest absolute revenue in the current year
but has shown an increase of only 3.5% from the previous year.

Capital Employed
The capital employed has seen a positive trend in all sectors of the company .
N

- The cotton yarn segment has seen a growth of 28% in the current year

- The capital employed has increased by 12.5% in the maize processing


sector.

- The investment in the agro processing sector has been increased by 4% in


2015- 16.

- The power division has seen a decline in the capital employed by about 2%.

- The companys net capital employed has increased by about 11%. 4.2

N
N
N
N

SUMMARY

The company has shown a constant growth during the year. Although , the
company was operating of margin and earnings were almost similar compared to the
previous years. the cotton yarn decision saw a slack period during the year but all the
28

other produced increased revenues as compared to the previous year/ the company has
also maintained a stable earnings per share , hence ensuring satisfaction of the
shareholders. The companys last quarter was showing a downward trend as it saw a
declined in the net sales as compared to the last year. In spite of this, the company
showed reasonable growth during the I also analyzed the maize processing report
during my internship. The report included all the relevant information related to the
project. This report was prepared at the time when the project was going to be started
so I also got an idea about the Indian economy at that point of time. The following
was the project report that I was given to analyze.

29

CHAPTER 5

SWOT ANALYSIS

30

5.1 SWOT ANALYSIS

31

32

33

CHAPTER 6
FINDINGS AND SUGGESTION

34

FINDINGS

35

SUGGESTIONS
The company should buy more raw materials from the domestic market rather than
importing a major part of it. The company can also go for investments in short term
and long term securities as it has a god chunk of reserves with itself. The company has
set up its manufacturing unit also which shows that the company wants to gain cost
effectiveness by producing its own raw materials as well as goods for trading. This
will help the company to make huge profits in the future. The company should also
recruit more employees in order to expand their operations and increase work
efficiency. The company should diversify into other avenues also as the regulations
set by the government for the manufacturing of plastic are very stringent. The
company can also turn into a public limited company rather than a private limited
company as the accounting and auditing laws pertaining to a private limited company
are quite complicated and extensive in nature.

36

CHAPTER 7
CONCLUSION

37

The internship was a great learning experience and one of the most exciting six weeks
of my life. I saw how the corporate world works. I specialized in the area of finance
and also worked with the international markets department. I learnt how to apply the
theoretical aspects that we learn in college to the practical life of the corporate world.
I had a great experience in working with my mentor at Pradeep industries. I gained a
lot of knowledge in the area of Polymer Plastic Trading and Manufacturing. As my
mentor was a Chartered Accountant, he also taught me various different aspects about
Accounting and Auditing. He gave me valuable information on the tax audit as well as
the compliance function of the company. Except this, I also learnt to prepare a Cross
Monitoring Assessment Data. I also learnt to make projections for the financial
statements of a company and analyze them in a critical manner. Overall, the
experience was very knowledgeable and I learnt how to apply theory in the practical
life of the corporate world. I would love to have work for longer period of time and
learn from my mentor. It was very difficult to live the work premises as I was used to
it. It was an unforgettable experience as a whole.

38