Kadvani Forge Limitennnd3

DECLARATIONI, the undersigned Ankit Kiyada a student of S.Y.B.B.A. here by declare that the project work presented in this reports is my own work and has been carried out under the supervision of MR. HITESH BHATT of H.N.SHUKLA COLLEGE. This work has not been previously submitted to any other university for any examination. DATE : PLACE : RAJKOT SIGNATURE (Ankit H.Kiyada) PREFACE With the turn of century expert knowledge and specialized technologies will become part of our day to day life, that will further increases the need of practical knowledge in educational to enter into actual world. B.B.A. is a two year full time professional degree course. It is interesting to not that B.B.A. includes practical aspects of students as well as theoretical portion. This is what makes it different then other routine courses. In this course, we have special of practical training by SAURASHTRA UNIVERSITY. The objective of practical training of B.B.A. is to develop among the student the awareness about the industrial environment and business practices. This project work undertaken is of KADVANI FORGE LTD. Situated in G.I.D.C. Lodhika, Plot No. G/1326-27 & G/1319-20, Kalavad Road, Dist. Rajkot. Engaged in manufacturing of forged products. ACKNOWLEDGEMENT I would to like to thanks MR. BHAVESH VEGDA (Director) who had given permission to me, for preparing project report and also given information and extra guidance in their field. I would like to express my feeling of gratitude to principal of H.N.SHUKLA COLLEGE MR. MEHUL RUPANI who had given me permission for preparing the report. I am extremely very thankful to MR. HITESH BHATT for their extra guidance for the whole training programmed and I also express thanks to my parents and my friends for providing men necessary helps and deep encouragement. At last but not least I was also thankful to all the person of KADVANI FORGE LTD. And especially to MR. NAINESH PANDYA for their help and guidance for preparation of this project report. Tractor. Was established as a Small Scale Industry and date of its Incorporation iin August 1. Plant situated in the outskirts of Rajkot. All the operations are under the direct supervision of the undersign.1995. the company got existence as Kadvani Securities Ltd. it has started its commercial production. incorporates a full fledge forge shop. die shop. Huge potentials in the field of forgings evinced great interests and established as a small scale industry and had received its commencement certificate on 2 nd August 1995. assisted by a qualified and experiences team thereby assuring you of quality and precision products. with their skilled dedicated and experienced team of personnel caters to the quality demands of customer with timely delivery as per their requirements to diverse Industries viz. Mining. who has rich practical experience of over 21 years in the field of forging. After that in the year 1996-97. . Heat treatment plant and metallurgical Lab all under one roof. KADVANI FORGE LTD. Earthmoving. In 1994 – 95. in the state of Gujarat. and Machine tools etc.1995 and had received its commencement certificate on August 2. KADVANI FORGE LTD.INTRODUCTION Kadvani group was established as Kadvani Oil Mill before 20 years in 1980. KADVANI FORGE LTD. After tat in the year 1996 – 97 it has started its commercial production. Automobiles. Electric Transmission.. PORTFOLIO  Name of company  Address ~ ~ KADVANI FORGE LIMITED GIDC Lodhika. 91-0281-2465416 Fax: 91-0281-2466762  Chairman  Date of Incorporation ~ ~ Shri Kishore L.71 Fax : 02827 . No. Rajkot .com Wednesday 8 hours (One Shift) 300 days 8:00AM To 4:00PM 4:00 PM To 12:00PM 12:00PM To 6:00AM  Accounting Year  Forging Capacity  Size of unit  Objective ~ ~ ~ ~ 1st April To 31st March 12000 tons per annum.com www. Kadvani 01-08-1995 02-08-1995 Bank Of India Kalaria & Sampat (02827) 87263-70-71 (02827) 87264-70-71  E-mail  Website  Weekly off  Working Hours  Working Days  Shifts ~ ~ ~ ~ ~ ~ forge@kadvanigroup. Medium Scale Customer Satisfaction & Earning Profit  Date of Commencement ~  Bankers  Auditors  Telephones ~ ~ ~ . PO : Khirasara Dist. g/1324-27. Tel. GUJARAT. 22 New Jagnath. Kalavad Road. : (02827) 287264 . No.360 001. RAJKOT – 364485 Tel. Plot No.Kadvanigroup.70 .287263  Register Office ~ Niraj Appartments. INDIA. is a medium scale industry as the investment in machinery is of Four crores rupees.SIZE OF THE UNIT Generally units can be classified in three groups on the basis of the investment in fixed assets. KADVANI FORGE LTD. Units having investment of Three crores of less than that in fixed assets is called small scale industry. . Any unit having investment in fixed assets more than Five crores is called large scale industry. Any unit having investment between Three crores to Five crores is called medium scale industry. Government Department. Private enterprise means ownership and management of control by individual of group of individual. PRIVATE ENTERPRISE  Sole Trader  Partnership  Company  Private Company KADVANI FORGE LTD. Public enterprise means ownership and management of public and Government i. Semi Government etc.FORMS OF THE ORGANIZATION The following forms of organization carry on modern business. Forms of business organization Private Enterprise Sole Trade Partnership Company Organization Private Company Public Company Co-operative sector Co-operative Sector Co operative Society Public Sector Government Dept.e. Government Company Statutory Corporation Statutory Board In India we have adopted the pattern of mixed economy where in we have two distinct sector private enterprise and public enterprise. . is a Private company. 2. The card has all the details of the employee. It also helps in calculating wages and salary on the basis of attendance 3. On Thursday Shift changing in Rotation. He For office employees • • • 8:00 AM TO 1:00 PM 1:00 PM TO 2:00 PM (Recess) 2:00 PM TO 6:00 PM For Workers • • • 8:00 AM TO 4:00 PM ( First Shift ) 4:00 PM TO 12:00 PM ( Second Shift ) 12:00 PM TO 6:00 AM ( Third Shift ) On Thursday they are having a holiday what generally having in all industries. KADVANI FORGE LTD. has a computerized punch card system.TIME KEEPING SYSTEM 1. As the workers come they have punch the card so that time is noted. Time keeping helps in keeping check over of obsentisium. Time keeping system helps in creating a discipline atmosphere by making employees regular at work. . Importance of organization can be related from few words said by richest man of one time is much “ Take away my factories. In this way everyone has to be responsible for the work. These structures indicate people’s location of positions in the hierarchy and their relationships within the formal organizations. It means authority is in the hand of top level and responsibility rests with medium and lowers level. With help of systematic organization company can work more efficiently . It also makes the chain between the people. Andrew Carnegie “Organization is the process of so combining the work which individuals or groups have to perform with facilities necessary for its execution. that the duties so performed provided the best channels for efficient. According to my observation Line and Staff Organization is adopted.ORGANIZATIONAL STRUCTURE The superior subordinate relationship are defined by organizational structure. land and all what I have but just leave my organization and in few years. . systematic. positive and co ordination application of available efforts”. which are formal documents that indicated the chain of command and the title that have been assigned to the managers and the other personnel. I will be where I was”.the organization makes the delegation of work so that the work becomes easier. They aid in determining which of the basic types of organizational authority structure a particular enterprise has adopted. Authority flows from Top to bottom and responsibility flows from bottom to top. ORGANIZATIONAL CHART Managing Director Commercial Director Technical Director Finance Manager Marketing Manager Personnel Manager Production Manager Metallugist Manager Quality Manager . However actual choice of location is governed by. INDIA LAND The company has acquired 22500 sq. As the proposed project is in G.D.I.I.D. communication service. NEARNESS TO MARKET Nearness to the market is important for supplying goods to customers in a minimum period of time adjusting supply according to the changes in a demand and gaining control over the market. roads etc. meters.C. water.I.C. The producers survival capacity increases when the . location area all the infrastructure facilities such as power.C. Nearness to the changes to the market reduces the costs of transportation finished goods to the market and enhances taking advantage of favorable prices and demand in the market. An entrepreneur has to choose such type of location. Of land from G. G. Kalawad Road. Lodhika Estate. and the land is more than adequate for proposed project. PO : Khirasra. which minimizes the company of production as well as distribution to a considerable extent. District : Rajkot – 360 003 GUJRAT.PLANT LOCATION Every entrepreneur of a business unit must give full consideration to suitable location of this entrepreneur because location factors are crucial for profit maximization. The location of unit is as under :KADVANI FORGE LTD.D. are easily available and also the project has also got relief from sales tax. market is near the center of production. Rajkot city has many industries like Diesel Engines, Machine Industries, etc which offer ready existing market for company’s products. TRANSPORT FACILITIES Transportation facilities with a good speed and capacity are needed for transporting labourers and establishing contacts in the market and controlling supply according to the changes in the demand. Rajkot is situated centrally in the Saurashtra region. Rajkot is well connected with almost major industrial cities by roads. For exports, Kandla port is nearest and Mumbai port is also easily accessible. AVAILABILITY OF LABOUR The importance of labour has not lessened in spite of mechanization. If the supply of labourers is not regular man hours and machine hours are lost. Surroundings the Rajkot region there are very large numbers of forging plants. So there is no depth of skilled and semi skilled workers. KADVANI’S manufacturing unit at G.I.D.C. Lodhika Dist. Rajkot. Gujarat (INDIA) SISTER CONCERNS Kadvani group have many industries and wide field,which is as follows . 1. KADVANI OIL MILLS In 1965, The Kadvani Group was established. The patron Shri Lakhabhai Vithal bhai Kadvani introduced Kadvani Oil Mill. Kadvani Chemicals followed this maiden adventure in 1981, which in turn lead to Kadvani Securities in 1995. One more limited company followed its trial mamely KADVANI FORGE LTD. in 1995. The year 2000, brought with it Kadvani Itech. The latest venture of the group. When Kadvani Chemicals was launched in 1981, it immediately became a pioneer in the field of manufacturing Precipitated Silica in India. This being an import substitute product helped to save lot of foreign currency. Again the rubber product market was conquered when clients like Hoechst Limited, Elgi, Shri Hindustan Latex and many others became the buyers of the product. A brand name Kad Sil was established in the market. The plant was modernized, expanded and shifted to jamnagar on the banks of Arabian Sea. In spite of huge demands High quality has never been compromised. 1. KADVANI SECURITITES LTD. The formation of Kadvani Securities Ltd. was brought about when Mr. Kishore L. Kadvani became the member of Saurashtra Kutch Stock Exchange. It is listed at the Bombay Stock Exchange and the shares of the company are still actively traded. 2. KADVANI FORGE LTD. Looking at the immense growth potential in the automobile industry. The Kadvani group promoted one more limited company named KADVANI FORGE LTD. in a couple of years its popularity surged in the forging market. The Railways, Defense, OEM like Mahindra & Mahindra, Bharat Earth Movers Limited, Greaves Limited as well as large auto part manufacturers of Rajkot like Amul Industries, SAR Auto products Limited, Kisan Auto Parts Limited are its reputed clients. This manufacturing companies as also been accredited and certified for ISO 9002, Quality System in the company by TUV management, GMBH of Germany. 30% of its total production is exported to USA, Australia, Morocco, France, and Dubai etc. 3. DEVHARI EXPORTS This is Exporting Company, which is in transportation filed which also plays a vital role in this field in Rajkot, which is given by a Kadvani Group. 4. KADVANI CHEMICALS This is company, which is started earlier from KADVANI FORGE LTD., which is chemical producing company, which is also very important company given by the Kadvani Group. 5. KADVANI ITECH (A division Of Kadvani Securities Ltd.) The introduction of Kadvani Itech gave a lot of diversification to this group. The Information Technology business of the 21 st Century Lured the third generation Kadvani’s to explore and gain once again, Training, Development, Solutions and services related to Information Technology cover a large part of present activity. Diversification to Web Development, E Business and E Mail suit, Knowledge Management, Data warehousing and mining, Networking and Telecommunications, Consultancy and Software Development makes the Itech maestro a well equipped player in the IT arena. INTRODUCTION Production is the basic activity of all industrial units. Production involves the step-bystep conversion of one form of materials into another through chemical or mechanical processing to create or enhance the utility of the products.S. “ Production is the process by which goods and services are created” -E. Another activities revalue around this activity.BUFFA INPUTS MATERIALS LABOUR CAPITAL ENERGY INFORMATION RESOURCES PRODUCTION FUNCTION OUTPUTS PRODUCTS SERVICES INFORMATION PRODUCT OR SERVICES . The production activity is nothing but the step-by-step conversion of one form of materials into another either chemically or mechanically. Production is considered as a heart of any company. The end product of the production activity is the creation of goods and services for the satisfaction of human wants. are raw material for auto manufacturing units. It manufacture closed die steel forged products as per the specifications in carbon.PRODUCTS KADVANI FORGE LTD. . alloy and stainless steel and supply them in as treated. The forging items of KADVANI FORGE LTD. is producing industrial product with a large variety. partially or fully machined condition. The products of the company are as follows. The products is a thing which is offered to the customers to satisfy their needs and wants product is most important and tangible component of marketing programmed moreover the finished products of some company may raw materials for other company. The manufacturing involves machineries as well as manpower. . The layout of the plant has been designed in such a way so that all the manufacturing activities are under one roof. “Maintaining the quality standards through constant evaluation inspection and verification”. It is a heart of any business in market. Such that the flow of material process at one stage automatically flows to a next stage of processing thereby reducing manpower to handle the material from one place to another and avoid waiting time for the next process.The important factor of each and every industry is production process. The production is done on large scale. KADVANI FORGE LTD. following the above sentence and it producer forged products up to 50 kg weight. also supplying forged products to many other companies with finished machining gears. connecting roads. The cut metal piece is heated in the oil-fired furnace. On heating. In open forging the heated . After that inspection is dined of that sample if fair results come the other processes are preceded. crown wheels. is cut to the required length as per cutting slip. which is in the billet form. The company is using electrical equipment for cutting the raw materials. PRODUCTION PROCESS On the receipt of order and drawings die shop manager prepares dies with the samples of Plaster Of Paris from dies are used for dimensional checks with customer drawing. pinions. The forging may be open forging or die forging.The Production Department of KADVANI FORGE LTD. After that the metal. the metal is forged. cam shafts etc in India and abroad. and that die is fixed in the top half manner. the component is subjected to heat treatment. After the forging process. The process of giving shinning is done to the finished product of the company. which has the impression of hot components to be manufactured. If the component does not require machining then it is subjected to shot blasting that removes scales formed during forging and heat treatment.material is subject to blow under the pneumatic hammers while the skilled workers manipulate the position and bring the metal to required size. The heated metal piece is kept on the bottom half of the die and the hammer with top half impacts on the metal. This results in the metal attaining the shape of the die capacity. which removes the residential stresses that are forging process and which give the requisites metallurgical properties to the components. STAGES OF PRODUCTION / PROCESS LAYOUT The layout of the plant has been designed in such a way so that all the manufacturing activity is under one roof such that the flow of material processed at one stage automatically flows to a next stage of processing thereby reducing manpower to handle the material from one place to another and avoid waiting time for the next process. Once the heated treatment is over. the component is rough machine after which finish machining is done. Then die forging is done. . In die forging a die is prepared from other material and not from steel. LABORATORY All the incoming raw materials & die blocks are tested here as per our Quality Assurance plan. which is based on our customer's requirement.The production process shop is also equipped with EOT cranes to shift the material from place to place. Our chemical and metallurgical laboratory is equipped with following • • • • T. Stages Of Production Process: 1.S H. Following tests are carried out in our laboratory: .T Microscope with camera Macrostructure We are planning a spectrophometer in the future. We are performing chemical analysis by classical methods. 7. Grain Size. 3. 6.1. Joining Harden ability test. The material is stored in such a way that the different grades and heat of material are easily identified so there is no chance of mix up. Rashtriya Ispat Nigam Limited 3. 2. 5. 2. Mahindra Ugine Steels Company Limited 2. Microstructure. All the above tests are carried out under the supervision of qualified metallurgist and experienced chemists supported by skilled workmen. Mukand Ltd. 4. Step turn test. In order to meet customer production schedules material up to 1000 tons is stored so as to avoid any material crisis for production. Failure based evaluation and our experienced personnel in our laboratory also do analysis. CUTTING . STOCK YARD It is used for storage of Raw Material. Upset test. 6. Chemical analysis of Raw Material used to manufacture forged products an die steels blocks. 5. Inclusion rating. Indian Seamless Steel & Alloys Ltd. Ispat Profiles In DIA Limited 4. List of Raw Material Suppliers : 1. Each material is tested and colorcoded as per the procedures. Vardhman Special Steels 3. inspectors. 3 Ton and 6 Ton capacity and all the hammers are supported with oil fired furnaces and mechanical trimming press of required capacity. Engineers take 5 readings at every hour.S. Every hour 5 readings are taken form job and prepared SPC which is marked on SPC chart at forge shop from which we know that how the process is working in presence of metallurgists. pressmen. The band saw and hacksaws are used for cutting the raw material free from burrs and within the given weight tolerance limits so as to reduce any problems during the forging process. airmen.The cutting shop is used for Raw material cutting. Engineers also first prepare first/final sample inspection report and die status report (Twice in a shift) Statistical Process Chart (SPC) is made at all level of process to control the quality of the product. We have 600 ton hydraulic press for the cold coining operation. HEATING AND FORGE SHOP We have three Polish make a double acting closed die forging Pneumatic Hammers in Kadvani Forge Ltd OF 1 Ton. 4. Engineer is responsible for SPC. . furnace men etc. The rejection level is the minimum in the industry. We are having a good team of Forgers. F. Supervision is responsible for production and engineer is responsible for maintenance of Quality per shift. gears. have been developed and their dies are available at KADVANI FORGE LIMITED. The die material used is as per DIN 2714 and is thoroughly checked at the incoming stage so as to reduce the failure during production. connecting rods. A predispatch plaster cast inspection report is prepared so as to access the usefulness of the die before sending it to the forge shop. DIE SHOP An ultramodern facility in our die shop is our backbone to maintain our strict delivery schedules. steering parts. earth drilling rigs parts etc. Within four years 190 types of components like crankshaft. Dies are prepared as per our customer samples or drawing.5. A highly qualified and technical staff and a very good machinery helps us to develop dies just in time so as to reduce the time lag in developing new samples without hindering the normal production cycles. List Of Machinery at used for Die Fabrication : Make and Model Machine Specification Type of Machine/ Facility Description . Wezlar [Germany]) 6. . & 8 feet . Dimensional an All the forged products are shot blasted to clean the surface of parts and 100% visual inspection is done to identify any forging defects such as unfilling.2 Nos. List Of Suppliers Of Die Blocks PCK BUDERUS (INDIA) SPECIAL STEELS PVT LTD (Suppliers of BUDERUS DELSTAHL.Copy Milling Machine . cracks.Single Spindle Copy Milling Machine . After completion of visual inspection critical dimensions which is used as reference point of the 1st operation for machining are checked 100% with gauges and fixtures. Certain percentage of the parts in a lot complete layout of the job is also carried out as per the instruction plan. folds etc. scabs. 1.Double Spindle Electric Discharge Machine German 800 X 600 X 450 mm Work Area Swiss 1000 X 600 X 450 mm Work Area Indian 600 X 500 X 400 mm Work Tank (EDM) Planner Machine Indian 4000 X 800 mm Table Lathes. scale pits. 2. All the necessary inspection and layout instruments and gauges facilitate our die shop. mismatch. 3. FINAL INSPECTION AND DISPATCH KADVANI FORGE LIMITED has its own inspection plan based on the experience and reference dimensions in the drawing.2 Nos. Indian 10 feet . 5. .4. hardening. tempering. One or two pieces from the lot are taken to the laboratory to confirm the grain size and microstructure of the component as per the specification of the customer. 6.15% per batch) is carried out for other than quenched and tempered items and 100% hardness testing for quenched and tempered items. HEAT TREATMENT In heat treatment shop we are having facilities for normalizing. Antirust coating is done before packing and dispatch of the material to the customer 8. Once the material is approved then it is either stored or packed and dispatched as per the schedule. isothermal annealing on oil fired semiautomatic furnace. Magnetic Crack Detection of some of the parts are also carried d visual inspection is carried out in the following manner out (if needed) as per the instruction of the customer. We are having two continuous furnaces one of 400 Kg/Hr. 7. annealing. SHOT BLASTING All the forged components have to undergo the shot blasting operation to clean the surface of the components before 100% visual inspection. and another 800 Kg/Hr. Hardness Testing (10 . We control hardness in a narrow range i. All the heat-treated jobs are confirmed by hardness testing (minimum 5% of the lot) and microstructure test of one piece from each lot is carried out to confirm the reliability. 15 to 20 BHN along with uniformity in microstructure. KADVANI FORGE LTD. PRODUCTION CAPACITY Kadvani Forge Limited was registered under the company registration act in the year 1995. we had established the company with a mere one .e. are having a well educated personnel with rich experience along with expertise in heat treatment activities under the guidance of metallurgists. hardness and microstructure we have planned one heat treatment plan and work instructions for each item with all the technical parameters.To meet the metallurgical requirements viz. To supply quality forged products to the OEM'S in this part of the country. Heat Treatment and final inspection purposes and company could develop 190 types of parts within a span of a year (i.g. • • • • • • • • • • Connecting Rods Crank Shafts Cam Shafts Gear Blanks Pinion Crown Wheel Gear Shifter Fork Torque Converter Cover Universal joint components Bucket tooth etc. experienced team of professionals at all levels of management tried to abide by the policy of the company to achieve the to become an ISO 9002 certified company in January 2000. The advantage of quality products at right time to our customer can be seen that company installed one more hammer of 6 ton capacity.) Therefore. Automotive .hammer of 1 ton capacity and started the production in 1997 and capacity to produce 960 tonnes/year. one new item / week.e. The positive response from our valued customer gave us the strength to put one more hammer of 3 ton capacity in 1998 and production capacity increased 4800 tons/year in the year 1999 and 2000. Kadvani Forge Limited has Various types of components e. The qualified. For customers in the following sector 1. Referring to the production capacity company also installed all the supporting infrastructure in Die Shop (for making dies). there by the total production capacity per month is 10800 tons/year now. Cutting Shop. the biggest Earthmovers manufacturer in India under collaboration with KOMASTU. Ministry of Defense (Govt. of India) for parts of automotive vehicles for the Indian Army 5. Timely delivery of the components as per technical requirements of the customer has bagged many approval certificate for us from different OEM'S e. Railways 3. Engine Manufacturer in India in Collaboration with Italian company.g. 3. Farm equipments 6. Defense 4. 2. 4. Germany . Japan 6. Petrochemical 5. the largest Tractor Manufacture in India.2. Greaves Limited.. Bharat Earthmovers Ltd. (Tractor division). 1. of India) for their Aeronautical wing. ISO 9002 Quality Systems Certification from TUV suddentechland. Ministry of Defense (Govt. Excavators or Earthmovers etc. Mahindra and Mahindra Ltd. PRODUCTION PLANNING The basic objectives of hating the manufacturing organization are to make products. Production planning comprises the planning. Routing. Thus production is nucleus on the center of the entire business operations. dispatching in the manufacturing . 20MN-CR5. Mild Steel. EN-353. Production planning is pre operation activity. . RAW MATERIALS & ITS SOURCES The main raw materials for the manufacturing of forgings components consists of EN-8D.process so that the movements of materials. performance of machines and operations of labour are directed and coordinated as to quality. of the right degree and at the right time and each operations to be done at the maximum efficiency”. It aims to make all necessary arrangements so that the production targets as set in the production budget and master schedules are reached. EN-19. SAE-8620. Mild Carbon steel. EN-8. quantity and time. SAE18. EN-16. According to Alford & Beatly. production planning is defined as “ The techniques of forecasting of picturing ahead every step in along series of separate operations each step to be taken in the right place. 16MN-CRS. RINL ISPAT NIGAM LTD. MUSCO – Malindra Ugine Steel Co.The company procures above mentioned raw materials from the various steel mills namely: 1. . Situated at Jamshedpur 4. – Situated at Vishakapatnam 2. METHOD OF PURCHASING There are some basic features of scientific purchasing of buying of raw materials namely: • • • • • Right Quality Right Time Of delivery Right Place Right Place of Delivery Right Sources of Supply. MUKUND STEEL – Situated at Punjab 5. The raw materials are mostly brought from outside the Gujarat. Situated at Pune 3. it is done on credit basis. There are various methods of purchasing following by a trader like forward purchasing in KADVANI FORGE LTD. TISCO – Tata Iron & Steel Co. ARTI STEEL – situated at Punjab. Storage facilities are available in the factories are available in the factory remises itself. control departments materials parts work in progress etc. Few machinery is imported from abroad which is used for Die Fabrication. After the whole production process the wastage products goes for remolded to the steel plants. The total area covered by the storeroom is 1000 Sq. Such as milling machine single spindle purchased from Russia in 2000 Cincinnati Copy milling machine from USA in the year 2002. meters. Principals functions of store is to act as a clearing house for goods being translated. mover through the store just as money mover in to and out of the commercial banks. . MANAGEMENT OF RESIDUE: The residue is managed to the best of the efforts that could have been done by the KADVANI FORGE LTD. MACHINERY: Machines in the factory are mainly obtained from and within India.STORAGE FACILITY The storage of goods is connecting link between the shops of working places and production. Process Inspection: Inspection is carried out at every stage of production at different stages e. Physical testing e. Impact test. Incoming Material Inspection :All the material coming to the company from different sources has to undergo the inspection and testing as per inspection plan before it goes to stores.QUALITY CONTROL Kadvani Forge Limited has it's own inspection plan for all the components and it's processes at different stages of production. upset test. Raw material incoming from the approved steel mills are kept in the stock yard and 100% visual examination and spark testing is done. Grain Flow. step turn test. color code given to each and every bar of the same grade.g. Metallurgical testing of the material e. 1. Forge Shop.g. Each shop or processing dept has it's own inspection plan to satisfy the customer's needs depending upon the experience and expertise. After approval of the material in the laboratory. . macro etching is also carried out. Cutting Shop. Inclusion rating. Heat Treatment Shop. tensile test. Microstructure is also carried out. Chemical. metallurgical and physical testing is also carried out as per the plan or instruction of the customer. 2.g. Die Shop. Certain pieces are selected from each lot of components passing through the process of heat treatment and are tested to confirm the hardness.All the cut pieces are checked for the required cut weight as needed to produce particular parts. All care is taken to control the hardness within a navigation of hardness from piece to piece up to 15 BHN. microstructure.Visual inspection for scale pit. tempering.Dies are checked thoroughly before dispatch for production and reports are kept in file for reference. Heat treatment furnaces are equipped with temperature indicator and controller. unfeeling etc.Packing :. 3. . We can do normalizing. annealing. 100% visual hot inspection is done for forging defense. Final Inspection :All the forged parts coming this shop are shot blasted and following inspection carried out as per plan. solution annealing.Layout :. Isothermal annealing of the steel forged components.Dimensional inspection :.critical dimensions like thickness and references points for 1st operation at the customers end are checked 100%.Temperature in furnace is controlled by the temperature controlled provided with each and every furnace. folds. 1. and SPC chart is made to assess the effectiveness of the process.Personals responsible for the process under direct supervision of qualified metallurgies and experienced chemist and skilled workers are working as per the work instruction and inspection plan. 3.Die Shop :. weight and at specified intervals. hardening. Heat Treatment: . grain size of the lot as per need of the customer.Packing of the components and dispatches are made as per customer requirement. Forge Shop: .Some of the piece/lot are fully laid out for dimension as per the drawing before dispatch. 4. Cutting Shop: . 2. EN 353.tricks and ships etc.PRODUCTS MADE CAFL is producing industrial products with a large variety. It manufactures forgings as per customer’s drawings and specifications in carbon. Carbon Steel and Stainless Steel. FLANGES – Flanges are used in join two pipes in petrochemicals industries. Materials used for this component is CK-45. CONNECTING RODS – Connecting rods form the heart of internal combustion engine. Steering Knuckle. It transforms the circular motion or crankshafts into reciprocal motion thereby moving the piston to create compressive strength to start an accelarate engine. SCM 415. Rocker Arms. . 1. Shakles. BUCKET TOOTH – This is used as the part of the Bucket of an excavator which excavator in digging the soil breaking rocks. which is an integral part of cars. alloy and stainless steel and supply them in as forged treated partially or fully machined conditions. 4. Material used for this component commonly is CK-45. GEARS – Gears are an important part of most of the machines and engines. 3. Material used for this component is SAE 8620. shafts. the details of the few products are given below. Spinders. Material used for this component commonly is ASTM. 20 MNCR5. ALO5. EN-16 and EN-29 etc. CRANKSHAFTS – Crankshaft forms the part of the internal combustion engine. 5. EN-16 and EN-29 etc. It is used to change the speed of the rotating parts in a machine. Name of products are Crankshafts. It is made of a very hard material commonly known as Barren Steel. It also controls the speed of an automotive vehicle. Pressure rating of flanges is very critical and is dependent on the pressure exerted by the fluid flowing in the pipeline. Drop Arm. 2. Hooks etc. which gives motion to the connecting rod to generate compressive strength of the engine. . Due to research the new products are launched in the market. It is research because of which the customers enjoy a variety of products.RESEARCH AND DEVELOPMENT Research is an activity. In KADVANI FORGE LTD. Their main objective is to find out recent market trend. research is done of the basis of drawing as per specification and they send it to the customer. The industry is in continuous efforts to launch a new beneficial product for their customer. if the customers give positive response then they produce or manufacture that type of product. So the target respondence for this research is retailed. which is carried on for the further progress of the company. QUALITY POLICY KADVANI FORGE LTD. is committed to “Total Quality Management”. Main Focus of the company is to satisfy the customer by meeting their requirements on the right time through documented procedures, which is the responsibility of every individual of this organization. INTRODUCTION The success or failure of an organization depends not on materials, machines and equipment but no the efficiency of the personnel to put their best efforts for an efficient performance of their job. To achieve the basic objective of an organization, efficient and effective use of the people at work is essential. Personnel management is the general management of people at work. Personnel management is a function of the general management with the objective of ensuring that every employee makes his fullest contribution to the achievement of the objectives of business. The objective of personnel management is to achieve maximum individual development, desirable work atmosphere and interpersonal relations. This essence of personnel management is the understanding of people at work and or the basic of these knowledge formulating personnel policies of the enterprise. The management of men is challenging task because of the dynamic nature of the people. No two people are similar in mental abilities, traditions, sentiments and behavior. “Personnel management in that part of the management which is primarily concerned with the human relationships within an organization”. “The Personnel Function Institute of Personnel Management London is concerned with the procurement, development, compensation, integration and maintenance of the personnel for the purpose of contributing towards accomplishment of that organizations major goals of objectives”. Edwin B. Flippo The success of the business depends on the brains i.e. Personnel in the company. The company should have efficient and sufficient manpower that have the path towards success. ORGANIZATION OF PERSONNEL DEPARTMENT An organization is a group of individuals who co-ordinate into different levels of authority and segments of specifications for the purpose of achieving the goals and objectives of the organization. “The organization is the process of identifying and group the work to be performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work most effectively together in establishing of objectives”. Allen The internal organization structure of personnel department varies widely in different, companies depending upon their size. E.g. in small companies personnel functions are discharged but in large company where personnel activities are generally of a complex nature, separate department is organized for the purpose. FUNCTIONS OF PERSONNEL MANAGEMENT Functions of Personnel Management Managerial Functions Operational Functions • • • • Planning Organizing Directing Controlling • • • • • • • Procurement of Personnel Development of Personnel Compensation to Personnel Employees Benefit Maintains Good Industrial Relation Record Keeping Personnel Planning Evaluation . MANPOWER PLANNING OR HUMAN RESOURCES PLANNING Manpower planning means developing and determining objectives policies and programmes to develop and utilize the existing manpower in the de-sired direction to achieve organizational objectives i.Long term HRP is made for long period. Short-term plans are concerned with specific projects and programmes Existing personnel can hardly match completely the requirement of a job. appointing right man on the right job at the right time. say for five to six years. say  for one year.  LONG TERM HRP: . the basic problem is to match the existing individuals and filling current vacancies as best one can do with available manpower.e.Filppo There are generally two types of HRP in ECHJAY  SHORT TERM HUMAN RESOURCES PLANNING. SHORT TERM HRP: . recruiting employee Doing this thing does In KADVANI FORGE LTD. arranging employee on to her work when he is free on his work and. An organization has flexible of matching its human resources and jobs by taking action which have long run inspect i.Short term HRP is made for short period.e. Thus in short term manpower planning.e. manpower planning in a very systematic way they utilize human resources as max possible way i.  LONG TERM HUMAN RESOURCES PLANNING. . “An executive manpower planning programmed can be defined as an appraisal of an organization’s ability to perpetuate itself with respect to its management as a determination of measures necessary to provide the essential executive talent” . -Edwin B. Whenever any vacancy arises. . KADVANI FORGE LTD. Flippo. Recruitment is the process of identifying the sources for prospective candidates and to stimulate them to apply for the jobs. TWO SOURCES OF RECRUITMENT Internal source: . through personal relations of workers and managerial staffs. “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization”.External sources of recruitment refer to prospective candidates outside the enterprise. They usually include new entrants to the labour force the unemployed and people in other organization seeking a change. somebody from within the organization may be looked into.RECRUITMENT Once the manpower requirement has been determined recruitment is the next logical step in staffing process. External source: . fills up its vacancies through promotion of people available in the organization and through the selection of people from outside that is through advertisement in newspaper.Internal source include personnel already on the pay-roll of the organization. INTERVIEW Here an effort is made by the personnel manager to get overall information of thte candidate like candidate work experience. Application Blank D. It is the process of choosing the individuals who possesses the necessary skills. 2. It is a negative process then recruitment because a person either gets a job or not. 3. Employment Tests . candidates further planning etc. “Selection is the process of choosing best alternative out of number of alternative”. Procedure for Personnel Selection A. selection procedure is undertaken in following way. In KADVANI FORGE LTD. Scrutiny of Application form B. abilities and personality to successfully fill specific jobs in the organization. APPROVAL On the basis of above steps suitable candidate is selected and are asked to be present on specified date. Preliminary interview C. If it meets then the suitable candidate is called for the further selection process that is interview.SELECTION Selection is the second step in the process of procurement of people. 1. SCREEING APPLICANTS First of all personnel manager will check all the information contained application from the concern in order to ensure that whether it meets the standards or not. Trade test b. Interest Test iv. Employment interview F. Final Selection . Knowledge Test v.a. Psychological test i. Medical Examination H. Intelligence Test iii. Reference Check G. Projective Test vi. Personality Test E. Aptitude Test ii. policies and purposes of the organization”. . The primary purpose is to sell the company to the new employee so that he can take pride of his association with the company.INDUCTION This involves the introduction of an employee to the job and the organization. also follows the induction process. which listed below. which consists of other details It gives overall information about the department in which he is designated and makes the employee more familiar to the organization. the respective manager of supervisor welcomes the employees. Thirdly. “Induction is a technique by which a new employee is rehabilitated into the changes surroundings and introduced to the practices. their way of working and also the policies and practices of the organization. Hence he must know them. Firstly information given to a newly appointed person to whom he has to report. KADVANI FORGE LTD. -Billimorai. An employee has to operate with fellow employee and his supervisor. The main objectives of the induction are that an employee become formalize him with company and win confidence of new comers. technical knowledge etc. Training is short term process utilizing a systematic and organized procedure by which non managerial personnel learn technical knowledge and skills for a definite purpose.TRAINING AND DEVELOPMENT Training is short-term process utilizing a systematic and organized procedure by which non-managerial personnel learn technical knowledge and skills for definite purpose. In KADVANI FORGE LTD.STEINMETZ LAWRENCE L. Training is given in two ways. “Training is the act of increasing the knowledge and skills of an employee for doing particular job” .  On the job training method  Off the job training method . which are as under.FLIPPO By training the employees acquire new manipulating skills. . Development is a long-term educational process utilizing a systematic and organized procedure by which managerial personnel can learn conceptual and theoretical knowledge for general purpose. Thus increasing the knowledge and skills of the employee for better performance on job. For the Development they also give chance for the company who interested they can go for higher education gives a higher education which expenses.In KADVANI FORGE LTD. which a very good characteristics of the company in his objective only they says satisfied employee. For new employee on the job training is given for example engineer appointed than director production and a immediate supervisor give training to the employee first of all they make visits to all department than give in-depth idea of the production and it components and process explain the whole technique of production and it process. In which new technologies and the innovation that have taken place in the field is explained and dissuasion about that new topic are includes in it. Then for the development of the employee they have meetings and conferences every month two times. Training and development is done very nicely in the KADVANI FORGE LTD. In the company training is must for the employees that in new or old. Then they do all work which the employees have to do and then make the employee understand the work. training is given to every one including to management i. And it helps to make their knowledge in practice. Development is also done of the employee in the KADVANI FORGE LTD. That is the based satisfied employees make an efficient organization. To the current employee and to the top management also refreshment training is given every year once that is by one day conference and seminars in which top management and professionals takes a seminar and conference and give training to employee which help full to refreshment and use as a remainder and revision. .e. Board of Directors because they understand that training is very important. About subordinates to whom he has to control. which provided organizational information. Job Description is present in KADVANI FORGE LTD. Nature of Job c. A Job Description becomes a vehicle for organization to change and improvement. The information covers a. Working conditions b. job description is necessary of employee after the employment of one candidate. what the work is etc. structure.JOB DISCRIPTION Job Description is an important document. About superior when he get order and guidance d. and authority. where by the heads of various departments and the clerks are smart and intelligent enough to know and learn the work and experience also. Job Descriptions also helps Top Executives especially when they jointly discuss one another’s responsibilities over lapping and conclusion of the duty and responsibility descriptions. A Job Description enables the manager to frame suitable questions to be asked during an Interview. . and functional information like location.  PAY PROMOTION: . The Board of Directors takes all promotion decision. In KADVANI FORGE LTD.PROMOTION Promotion is the advancement of an employee to better job-better in terms of responsibilities. higher grade and salary and increased privileges also. .In terms of increase in salary. Company considers the both merit as well as seniority. departmental head and the personnel department. First ask for all reports of the employees from the personnel department. “Promotion involves a change from one job to another that is better in terms of status and responsibilities” -FLIPPO THERE ARE TWO TYPES OF PROMOTION  JOB PROMOTION: . PROMOTION IS GIVEN ON THE BASIS OF THE seniority cum merit basis. And than promotion letter is send to the employee.  ON THE BASES ON MERITS. After that they analyze that reports and make decision that will be promoted and also fixation of authority and responsibilities. greater skill.In terms of placement at higher level. more prestige or status. THERE ARE TWO BASES ON WHICH PROMOTION IS GIVEN  ON THE BASES ON SENIORITY. There are various types of transfer such as production. shift. In KADVANI FORGE LTD. In transfer there is change in responsibility. time and place.TRANSFER POLICY Transfer is a process placing employees in positions where they are likely to be more effectively of where they are likely to get more job satisfaction. This transfer is a process of employee’s adjustment with the work. replacement. . versality transfer. designation and pay etc. remented. Transfer policy is decided by board of directors and all decision of transfer is taken by directors the transfer is general done on the request of the employee transfer is rare case in the company because company have selected Right person on the Right Job. The basic purpose of Wage and Salary administration is to establish and maintain and equitable Wage and Salary structure. . A Wage is the remuneration. It refers to the hourly paid for the service of labour in production. 5000.WAGE AND SALARY ADMINISTRATION “Wages are the payments made to the employees as compensation for the services rendered by them to an enterprise”.Dale Yoder and Heinemann Wage and Salary administration is essentially the application of a systematic approach to the problem of ensuring those employees are paid in logical. organization managerial staff gets a monetary Salary of more than Rs. 1850 per month. . periodically to an employee of workers. Salary refers top the weekly of monthly rates paid to clerical administrative and professional employee. Workers do not get wages on Wednesday. Moreover the operative labourer also gets a monetary Salary of Rs. Wage and Salary Administration refers to the establishment and implementation of sound policies and practices of employees compensation. In KADVANI FORGE LTD. equitable and fair manner. which are listed below. vehicles. BONUS According to the occasion. OVER TIME BENEFITS Cockman KADVANI FORGE LTD. Loans are given t workers to purchase house. salary and time rated payments”. 2. 1. on installment basis. 3. telivision etc. is also providing benefit schemes to their . the company is giving bonus to their employees and generally it is in cash form. LOAN FACILITY Loan facility is also given to the employees by this unit. “Those benefit which are supplied by an employer for the benefits of an employee and which are not in the form of wages.BENEFITS AND SERVICES BENEFITS: Generally the companies provide benefits in two terms that is monetary and non-monetary. employees. If the employees do over tine that is he works for more hours then what are his regular working hours. In these quarters the employees live with their family members at free of cost or at reasonable rates. UNIFORM FACILITY The company is providing uniform facility to the employees who are at operative level that is to the blue colored empl. 2. provides a wealth of services that employees find desirable. 4. to the employees so that physically they are protected while working in the factory. PRODUCTION BENEFITS If the employees produce more than the target production then they get extra benefits. Therefore the company is providing bus services so that employees do not face any difficulty to reach the factory and their home. BUS SERVICES The unit is located far behind the Rajkot city and mostly all the workers are coming from the Rajkot city. 1. industrial safety shoes. . They also allow the employees to park their vehicles inside the factory premises. he is paid extra money for the work he has done. 3. SAFETY MEASURES FACILITY Company provides gloves. ear mask etc. goggles. 4. apron.oyees. then the petrol expenses incurred are provided by the organization. TRAVELLING ALLOWANCE If some of the workers do not use bus services provided by the organization andif they come by their own vehicles. 5. SERVICES: KADVANI FORGE LTD. QUARTER FACILITY There are few quarters behind the factory premises. CANTEEN FACILITY The company is providing various canteen facilities to all the employees at regular interval. directing.  Make employee aware of their key performance area. more rewarding assignment and promotion. Performance appraisal is systematic evaluation of the individual with respect to his performance on the job and his potential for development. MEDICAL SERVICES The company provides medical service like first aid to the employees. organizing and leading. . Development of a person based on appraisal of his performance leads to improved job performance. The managerial appraisal should measure both performances in achieving goals and plan as well as performance as employee in all managerial function such as planning. 6. PERFORMANCE APPRAISAL Employee appraisal is an important to manpower development because it reveals strengths and weaknesses of an employee and a development plant can be prepared for each employee. The appraised employee can qualify himself for higher responsibilities. controlling. The main purpose of performance appraisal is:  Evaluation of performance of work assigned. The immediate superior in charge of such performance appraisal. In serious cases they are taken to the hospital.5.  Determining suitability for promotion or transfer. . There may be several reasons for arising such dispute like low salary paid to worker. is good. The performance appraisal method of KADVANI FORGE LTD. “Grievance is any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the attention of management”. heavy involvement of the union and many more reason etc. Initiate Corrective Action. CHART Established Performance Standards Communicate Performance Expectations to Employees Measure Actual Performance Compare Actual Performance with Standards Discuss the Appraisal with Employee If Necessary. KADVANI FORGE LTD. A well defined Grievance handling procedure is another element of sound industrial relation it is said that prompt and effective disposal of workers grievance is another key to individual peace. GRIEVANCE HANDALING SYSTEM Grievance or disputes arise in the company due to unsatisfaction between employee and employers. The performance appraisal is done on the base of work and quality of the work and time taken for the work.In KADVANI FORGE LTD. Grievance is the feeling of discontentment of dissatisfaction among workers regarding anything concerned with the company that any party against the other party may leave Grievance. First established the standards for the performance for example 10 unit produced per hours than that is the standard and the appraisal is done how many unit is produced in how much time and what is the quality is there. the relationship between employer and employees is sound there are generally no disputes still it there are any problems. .In KADVANI FORGE LTD. In KADVANI FORGE LTD. COLLECTIVE BARGAINING Collective Bargaining is the steps taken for preventing Grievance Bargaining is mad by the collective part of the employees. since the company has good relations with the workers there are rarely any problems still it there are problems they are solved it representatives of both the parties. “Collective Bargaining takes places when a number of people enter in to a negotiation as bargaining with the object of reaching an agreement on the condition of the employment of the people”. the workers are free to talk to supervisors. does not face problem of trade union. “ A Trade Union is organization at workers formed to promote protect and improve through collective action for the social. . A Trade Union is any combination of permanent primarily for the purpose of regulating the relations between workers and workers. economic and potential interests at its members”. KADVANI FORGE LTD. as there are no conflicts between the workers and the management as all the employees are provided with full facilities. So the management does not face any problem of Trade union.TRADE UNIONS According to section 2B of the Trade Union act of 1926. Any company having more than 50 employees can join this scheme. It is necessary for every company to give PF scheme to its permanent employees. This is statutory scheme meant for welfare of the employees. . In practice the company cuts 12% from their (employees) basic salary and they (owner) add the same amount and the amount is credited to the respective employees account. In India it was started in 1962 and applied in all the industry. The company is providing Provident Fund Schemes to their employees.PROVIDENT FUND SCHEME PF scheme is a king of saving. INTRODUCTION Finance is lifeblood of business economy. . It provides basis to all business activities. whether it will be a corporation. Without finance neither any business can be started nor successfully run. bank or government agency”.John J Hampton . school. “The term finance can be defined as the management of the flows of money through an organization. Provision of sufficient funds at the required time is the key success of a business. “Finance may be defined as that administrative area or set of administrative function in an which relate with the arrangement of cash and credit so that the organization may have the means to carry out its objectives as satisfactory as possible”. Howard and Upton Finance department provides “Bass” for the company. No Company can run without sufficient finance. Finance is the essence of any business, it is known as “A life blood of a business”. Finance is required not only at the time of establishment but also at the time of expansion, modernization, diversification and replacement of assets. Every company should be able to manage its finance efficiently and then only a company can prosper. Financial Management includes the activities of raising funds proper utilization of funds deciding up on the terms and conditions, period of borrowings. Financial management is that managerial activity which is concerned with planning and controlling of the firm’s financial resources. We cannot imagine a business without finance because it is the control point of all activities. FINANCIAL PLANNING Finance is like lubricating oil to any firm and Planning is the key to the success of financial manager. Financial planning is the act of deciding in advance the quantity of capital required and its form. No business whether small or large, can be successful until and unless it prepare sound financial plan. The planning process is an integral part of the job of financial manager. If the planning is prepared carefully and accurately than the company is found to get success in its field. In brief, to plan, judge and provide for future cash inflow and cash outflow is the financial planning. “Planning is deciding in advance what is to be done; that is, a plan is a projected course of action”. -W.H.Newman “Financial planning pertains only to the function of finance and includes the determination of the firms financial objectives financial policies and financial procedures”. -Walker & Baugh Financial planning is necessary for the smooth running of the business. KADVANI FORGE LTD. financial manages makes financial planning according to the target of sale of requirement and divided in two ways.  Long term financial planning.  Short term financial planning. Long term mainly concern with long term project purchase of machine, building, land, and furniture etc. short term mainly concern to day to day functions etc i.e. Working planning. KADVANI FORGED LTD. has framed a very promising financial plan prepared in light of future trends. KADVANI FORGE LTD. has considered following critical elements. 1. Financial Pattern and Condition 2. Assets position and technological changes 3. Earning capacity and market condition 4. Policy for administration of capital 5. Advance programming for financial resources 6. Capacity to generate internal funds 7. position of financial control system 8. Capital market analysis 9. Prospects of growth and allocation for contingencies CAPITALISATION The evaluation of the capital of the company is known as capitalization. Capitalization of a co-operation comprised the ownership capital represented by long-term undebtness. It may also mean the total accounting value of the capital stock; surplus in whatever forms it may appear and refunded long term debt. each Issued Capital 30.29.00.00.If there is more investment and not that much amount of return is called over capitalization.247 4.56.62.10.000 3.864 4.939 4.If there is equal investment and equal amount of returns is known as proper or fair capitalization.each fully paid up 31-03-2003 4.  OVER CAPITALISATION: .21.000 Equity Shares of Rs.00. 10/.00.58. are as follows.  UNDER CAPITALISATION: .000 3.000 1.If there is less investment and return is more than that of investment than it is known as under capitalization.000 31-03-2002 4.00.00.04.00. The details of KADVANI FORGE LTD.00. 10/.Ownership capital PLUS Long term loans PLUS Free reserves PLUS Debenture THERE ARE THREE TYPES OF CAPITALIZATION ARE AS FOLLOWS  FAIR & PROPER CAPITALISATION: .000 Equity Shares of Rs.000 - Reserves & Surplus Borrowed Capital Secured Loans Unsecured loans 4.00.654 .10.00.00. Authorized Capital 40. . over a period of time usually exceeding 1 year. . KADVANI FORGE LTD. authorization and control.CAPITAL BUDGETING Capital budgeting decisions pertain to fixed long term assets which by defination refer to assess which are in operation and yields a return. would compare the expenses of the previous before budgeting and then calculates capital budget. The effect of investment decision extend in to the future and have to be endured for a longer period than the consequences of the current operating expenditure thus budgeting decisions are the most important decisions. evaluation. “The objective of capital budgeting is to rank various investments opportunities according to the prospective earnings they will yields”.Haynes & Massie The most important aspects of capital budgeting process are identification. There is a risk in value of fixed assets because of their long life.515 07. Tangible Assets – Buildings. Machineries etc 2.156 = 4.88. This assess cannot be converted in to cash very easily. There should be a systematic utilization of this asset it depends up on the management how efficiently the fixed assets are managed for the interest of a business. Patents etc. Plants.315 times . Fixed assets can be divided into two parts that is: 1. Fixed assets are the permanent investment done by the company.10. There are some fixed assets in the business.MANAGEMENT OF FIXED ASSETS The management of fixed assets retards to the purpose of managements of fixed assets for more utilization.05. Intangible Assets – Goodwill. Fixed assets ratio for the year 31-3-2003 Fixed Assets Ratio = Sales Fixed assets = 24.98. where as this year it is 4.23.67.For The Last Year = Sales Fixed assets = 21.276 5.79.315 times which is good situation.14 times.372 = 4.70. .14 times In the comparison of the previous years turnover ratio is increased in the current year last year the ratio was 4. There are two concepts of working capital. The goal of Working Capital Management is to manage the firms current assets and liabilities in such a way that a satisfactory level of working capital is maintained.14.697 = 9.243 = 1.546 Working Capital Turnover Ration = Sales Total Current Assets = 24.15. The concept of gross capital is a financial concept whereas that of net concepts is an accounting concept.e. Working Capital Management is concerned with the problems the arise in attempting to manage the current assets. Net Working Capital = Current Assets – Current Liabilities = 12. NET WORKING CAPITAL: . the cash is recovered through sale of these goods (on cash or on credit). GROSS WORKING CAPITAL: .. a sort of a revolving fund starting with cash used to pay for the raw materials.15.98. It is quantitative concept indicating the soundness of current financial position. we have a circular cash flow from cash to inventories to receivables and back to cash.36.It represents the excess of total current assets over total current liabilities.It is equal to the sum of current assets only and it may represent both owned capital as well as loan capital.243 – 2.14.78.MANAGEMENT OF WORKING CAPITAL Working capital indicates circular flow of cash (cash flow cycle) i.515 12.68. The interaction between currents assets and current liabilities is the main theme of Working Capital Management.98 times .10. Thus. the current liabilities and interrelationship that exists between them.45. labour and operating expenses and when finished products are ready for sale. 795 6.29.22.105 07.110 .273 3.73.976 31-3-2004 4.05.16.09.11.24.98.454 04.19.PARTICULARS Inventories Sundry Debtors Cash & Bank 31-3-2003 4. ACCOUNTING POLICIES The accounts are prepared under the historical cost convention and materially comply with mandatory accounting standards issued by the Institute of Chartered Accountant of India. Depreciation on the addition to fixed assets is provided for as when the assets are put to use. DEPRICATION The company has provided depreciation on the written down value basis as per the rates provided in schedule XIV of the companies Act. FIXED ASSET Capitalization at the acquisition cost including directly attribute cost of bringing the assets to their working conditions for intended use. REVENUE Sales of alloy forgings are accounted at the point of dispatch 5. 1. 3. INVENTORIES This method of valuation of various categories is as follows  Raw material and Stores are valued at cost  Finished goods are scrape are valued at cost or net realizable value whichever is lower  Year end inventory of finished goods has been valued inclusive of excise duty amounting to the Rs. FORGINGS CURRENCY TRANSACTIONS Any exchange difference on export sales arising from the transaction undertaken by the company is deal with the profit and loss account. . 78. This change is accounting policy has no impact on the profit for the year. 2. The significance accounting policies followed by the company are stated below.607 in accordance with revised guidance note on “Accounting Treatment of Excise Duty” issued by The Institute of Chartered Accountant of India. 4.36. 1956. 98.10. in managing the receivables is concerned with maintaining the receivables at the optimum level and reviews the credit policy and procedure accordingly. Owned to the firm by customers revising from sale of goods or services in the ordinary course of business.MANAGEMENT OF RECEIVABLES The term “Receivables” is destined as debt. Receivables are considered as an essential marketing too.515 6. Receivables or book debt has two characteristics  It involves an element of risks  It is based on economic value i.19. acting as a bridge for the movement of goods through production and distribution stages to customers.894 . When firm sales well on credit.09. Debtors Turnover Ratio = Total Sales Debtors = 24. it creates account receivables management is caused trade credit management.e.105 = 3. goods and services passed on to buyer have economic value and cash will be received in future by seller The financial management. . Balance Sheet Ratio 3.RATIO ANALYSIS A ratio is an arithmetical relationship between two figures Financial Ratio analysis is a study of ratios between various items of group of items in Financial Statement. P&L Account 2.38.25 x 100 . This ratio indicates the average spread between the cost of goods sold and revenue.10.515 = 14. Profitability Ratio 2.050 24. Gross Profit Ratio = Gross Profit x 100 Sales = 34. It shows the percentage by which the selling price can fall and the percentage by which costs of goods sold can increases before gross profits can be nullified. GROSS PROFIT RATIO The gross profit ratio reflects the efficiency with which management produces both unit of product.98. is as under. prepared ratio on basis of management view point. Ratio are classified from different point of view as under  On the Basis of Financial Statement 1. The ratio of gross profit of KADVANI FORGE LTD. Financial Ratio    Liquidity Ratio Position Ratio Leverage Ratio In KADVANI FORGE LTD. Activity or Turnover Ratio 3. Combine Ratio  View Point of Management 1. 15.14. The Net Profit Ratio of KADVNI FORGE LTD.45. measures the ability of the firm to meet its current liabilities.43 An important test by which the financial health of a company can with reasonable reliability be judge in the concept of current ratio. a very popular financial ratio. current assets get converted into cash in the operational cycles of the firm and provide the funds needed to pay current liabilities. is as under.98. Current Ratio = Current Assets Current Liabilities = 12.36 .697 = 4.243 2. Net Profit Ratio = Net Profit x 100 Sales = 34.515 = CURRENT RATIO 1. The ratio of the KADVANI FORGE LTD.10.NET PROFIT RATIO Net Profit Ratio established a relationship between Net profit and sales and it indicates management efficiency in manufacturing administering and selling the product.049 x 100 24.61.78. This ratio indicates the firms capacity to which stands adverse economic conditions. is calculated as under. The current ratio. This is the over all measure of the firms ability to turn each rupee sales in to net profit. This ratio established a relationship between quick or liquid assets and current liabilities. An asset is liquid if it can be converted in to cash immediately or reasonably soon of value.LIQUID RATIO The ratio is also known as Quick Ratio or Acid Test Ratio. The KADVANI FORGE LTD.66. Cash is the most liquid assets.697 = 2. This ratio indicates how for the company should have enough resources to pay current obligation on demand.966 2.78. is as under. Liquid Ratio = Liquid Assets Liquid Liabilities = 6.03.392 .45. 286 3.98.43.48.10.049 .67.TREND IN LAST THREE YEARS PROFIT YEAR 2001-2002 2002-2003 2003-2004 SALES YEAR 2001-2002 2002-2003 2003-2004 SALES 13.50.276 24.541 21.758 4.79.515 PROFIT 79.61. CONTRIBUTION OF THE UNIT 1. Employment Generation. . 3. 2. Earning foreign exchange through exports. Substituting imports Original Equipments Manufacturers (OEM) through domestic production. why do our local customers like them? 2. What modifications. The types of questions that should be asked are: 1. if any. if any. would be required? How should it be provided? 9. are preferred by the users? Would foreign buyers have the same attitude? 4. packaging and labeling be changed for exporting? 7. etc. What are the technical specifications of the product? Would they be acceptable in the target country? 8. What are the features of our product that make it compare favorably with competitive products? In other words. design. Has the product been thoroughly tested and tried in the home market? Can we be sure of consistence high product quality? 6. packaging. What after-sales service. colors. What size. Would the product meet foreign health and safety standard requirements? How do we meets foreign required standard? . and labeling requirements to sell the product abroad? How would the present branding. would be necessary?.ANALYSIS OF PRODUCTS FOR EXPORT The exporter should ask himself a number of questions about the nature of his product and determine how exportable it is. How is the product used? Would it have the same use abroad? 3. What are the branding. To make the product more acceptable to foreign buyers? 5. Can we produce the quantities of product that may be required? 13.10.What if the technology is changing fast? How can we maintain product superiority? 11.Will we be able to maintain continuity of supply? .How do we keep ahead of the competition? 12. For understanding meaning of export management let‘s explain two terms i.  EXPORT Export means outward movements of goods or services from one country to another with the inward flow of valid international currency. Export management is that branch of management. which is related to the Export function. organizing. directing. meaning to carry out.e. Export and Management. or if it can produce certain goods at a season of the year when other countries need to import them. controlling. if its goods are in demand because they are of outstanding quality. machine. A country exports goods under the following conditions: if it is the world's sole supplier of a certain product. material information and money in order to achieve desired objectives with the help of planning.  MANAGEMENT Management deals with effective utilization of different resources like men. .INTRODUCTION Export comes from the Latin words ex and portare. if it produces the goods at a relatively lower cost than other countries. Contribute to increase production at optimum level and allow continue growth. 4. Increase sales and profits through new contacts (export sales may even exceed sales). It forecasted the potentials of the forging articles and auto parts market beyond the territory so it jumped in this industry and have achieved great success in this field and became a role model for their quality for new industry. 2. increase in sales and ultimately to help the government to increase FOREX of India. 3. Provide new opportunities and challenges to management. KADVANI FORGE LTD. Create market diversification and help to offset sales fluctuations in the local market. had started exporting in 1998 with the objectives of earning profit. local . 1.THOUGHT OF EXPORT The company can export a product if it has certain objectives in mind some of the objectives are as under. in specific quantity. As we know that kadvani forge is very much famous for its quality of a product soothe demand of its product is from every corner of the world.EXPORT PRODUCTS Products which are to be Exported is Export product.  Germany  U. had started exprting from 1998 and started to export the following products. An Export product must be delivered in specific time . . EXPORT IN COUNTRIES AND COMPANIES As there is rapind development in auto industries in world there is also increse in the demand of the auto parts from the world market.A.  Cover (auto parts)  Flanges  Crank Shafts  Asentrik Shafts  Drop arm  Fork  Nuts etc. KADVANI FORGE LTD. So the company is exporting the product in many countries of the world but more orders are getting from the countries like.  African countries. in specific Packing etc.S. The manufacturer must include reasonable provision for it. perhaps containing information not included in the labels used within the exporter's country. an extra allowance for profit can now be added.The leading importers of the product of KADVANI FORGE LTD. from the sales point of view. Agent's commission abroad This is usually calculated on a percentage basis. This would be the variable cost plus fixed cost or overhead. 5. Profit Normally. if it is insufficient for the risk involved in selling abroad. Provide a detailed record of the terms that have been quoted to the foreign buyer. 4. Check that every expense has been covered in arriving at the selling price. Packing The cost of packing for overseas shipment will vary according to the product. Labels These may have to be printed in a foreign language. Also. Unit cost of Product The starting point in export pricing is the production cost per unit of the product. are  Unique Industrial Product (U. The items covered by the export-costing sheet are: 1. and means of transportation. 3. . 2. 2.S.A)  Tourus India Limited BASE OF EXPORT PRICING Cost Plus Method of Calculation A costing sheet enables the manufacturer to: 1. profit will have already been included in the domestic price. However. destination. 7. 10.Marking A small cost is involved in stenciling an identification mark on each package for export. 9.L. to Port Klang. 8.Cartage Allowance must be made for transporting the goods to be transported to the local railway station or container depot.Unloading charge There is a charge for unloading goods from railway cars or trucks.g. it must make adequate provision in the price to cover their cost. 11. the exporter may wish to quote to the foreign customer a price of so many dollars plus the cost of consular documents. Initially. K.Long or heavy load charge If the shipment is exceptionally long or heavy. particularly in the case of export to the Latin American countries.Freight to seaboard The cost of transporting the goods from the inland town or city to the seaport for shipment abroad e. The selling price of the product must include sufficient allowance for these extra labeling costs. Small packages must be wire-strapped together to discourage pilferage and other loss. . 13. 12. an extra charge may be incurred.Strapping Each carton may have to be wire-strapped to help prevent it from being accidentally opened en route to its destination.they must be suitable to the foreign consumer.Terminals These are handling. If not.Consular Documents These documents can be quite expensive. This cost will be incurred when the goods arrive at the seaport. wharfage and harbor dues that must be paid by the exporter to the wharfage Company. 6. Ocean freight The cost of shipping the goods by sea to the foreign port. 19. Conversion into Foreign Exchange The foreign buyer will usually ask for a price quotation in U. the export firm will have part of its working capital tied up in export merchandise. Even if no credit is given. ocean ships are insured for 110 percent of their total cost to cover anticipated profit and the interest cost of working capital tied up in the shipment. Then allowance must be made in the export price for bank discount charges. dollars or perhaps in . while they are being shipped abroad. Usually. including damage to the goods or theft.S. The amount of these fees can be obtained in advance from the forwarder or shipping agent. If the exporter intends to discount at its bank a time draft that has been accepted by the foreign importer. The cost may be quoted by the ocean carrier in local currency or U. 16.14.S. allowance must be made for the fee involved.Freight forwarder's fee If the exporter uses the services of "Freight Forwarder" for documentation and book the shipping space required. it will have to wait until the goods are shipped or delivered before payment is made. extra storage charges etc. 18. The selling price should include an amount to cover the cost of this working capital. or 180 days for payment. so that the exporter can obtain its money sooner. If credit are given to the foreign customer.Marine insurance The exporter will want to insure itself against financial loss from all possible risks.Financing charges Until payment is received. it may have to wait an additional 60.Other charges Here. 17. dollars. 90. 15. space is left for the inclusion of unexpected additional expenses such as the cost of overseas telegrams or telephone calls. should be included in the export price quoted to the foreign importer.German marks.20 . Therefore.09 . KADVANI FORGED LTD.43 $7. Japanese yen. forwarding costs. profit. insurance. The cost of this bank service.20 Export Sale $7. Table 4 Sample Cost-Plus Calculation of Product Cost Domestic Sale Factory price Domestic freight subtotal Export documentation subtotal Ocean freight and insurance subtotal Import duty (12 percent of landed cost) subtotal Wholesaler markup (15 percent) subtotal 1.70 8. or some other currency.19 11.50 .50 . packing costs.70 8.90 1. fixed rate of exchange for its foreign currency. in exchange for local currency. includes most of the above mentioned costs incurred for exporting such as cost of Raw material.70 1.50 8. the price in the exporter's local currency must be converted to a price into the foreign currency. which provides the exporter with a predetermined. The exporter may wish to eliminate the risk of an exchange loss by selling the foreign currency to a bank on a forward basis. credit period allowed to the importers.23 9. Freights + INCOTERMS etc. Care must be taken to use the correct exchange rate. agents or advertisement expense incurred.20 9. uniform rules for the interpretation of international trade terms were published in 1936. This set of rules defines the precise obligations of buyer and seller to reduce the possibility of misunderstanding between the exporter and importer.30 EXPORT PRICING TERMS (INCOTERMS 2000) Special International Trade Terms ".. The risk of loss or damage to goods in transit. 1990 and Incoterms 2000 Incoterms 2000 describe the responsibilities of seller and buyer in international trade.a situation in which everything is the responsibility of the seller and the extreme where everything is the responsibility of the buyer. The full and authoritative definition of each trade term is published in Incoterms 2000. The purpose of these terms is to clarify who are responsible (seller or buyer) for: 1. Since then.72 $14.." The first INCOTERMS .77 $20. . 3.53 6. ICC has amended and modernized these rules in 1953.Importer/distributor markup 2.15 13. 1980.. Publication 560 INCOTERMS 2000 (International Commercial Terms) are to provide a set of rules to interpret the most commonly used trade terms in international trade. The cost of transporting the goods from one point to the other. by the International Chamber of Commerce (ICC) used in buying and selling on a world wide scale. 2.44 subtotal Retail markup (50 percent) Final consumer price 4. The risk of loss if the transportation cannot take place.. 1967. INSURANCE AND FREIGHT CPT CARRIAGE PAID TO DDP DELIVERED DUTY PAID DAF DELIVERED AT FRONTIER DES DELIVERED EX SHIP DEQ DELIVERED EX QUAY DDU DELIVERED DUTY UNPAID CIP CARRIAGE AND INSURANCE PAID TO . Each term means a different division of costs. risks. risks. INCOTERMS 2000 INCOTERMS 2000 provide a set of rules to interpret the most commonly used trade terms in international trade. and responsibilities between the seller and the buyer.Incoterms 2000 aims are to set out the rights and obligations of the seller and the buyer when it comes to transporting the goods. EXW EX WORKS FCA FREE CARRIER FAS FREE ALONGSIDE SHIP FOB FREE ON BOARD CFR COST AND FREIGHT CIF COST. Each term means a different division of costs. This set of rules defines the precise obligations of buyer and seller to reduce the possibility of misunderstanding between the exporter and importer. and responsibilities between the seller and the buyer. S. named port of shipment) Under "F.. .. does international business by using only three terms." the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. Insurance is generally more important in international shipping than domestic shipping. CIF COST.B. FOB FREE ON BOARD (. Insurance is the buyer's responsibility as well as stevedore charges at the named port of destination. CFR COST AND FREIGHT (. off the dock and placed on the ship). The seller pays the cost of loading the goods. The seller must contract with the insurer and pay the insurance premium. are transferred from the seller to the buyer when the goods pass the ship's rail at the port of shipment (i. as well as any cost increases..e. The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship's rail (i.. named port of destination) CIF is CFR with the additional requirement that the seller procure transport insurance against the risk of loss or damage to goods. which are as under. laws generally hold a common carrier to be liable for lost or damaged goods. because U..e. INSURANCE AND FREIGHT (. but the risk of loss or damage to the goods.KADVANI FORGE LTD.O.. named port of destination) CFR requires the seller to pay the costs and freight necessary to bring the goods to the named destination. off the dock and placed on the ship).. The types of customers. competitor's products and their prices 3. The best way of entering the market (agent. The potential size of the market for its product 2. promoting and securing orders. he will suggest the names of some suitable local market research firms. Malaysian firm. So long as the export firm provides adequate product literature. exporters should always consider exporting Next Door. The most suitable channels of distribution 4. the exporter should use a "Checklist " of factors. • "Trade Commissioners stationed at embassies abroad are only too willing to help the exporter assess the foreign market and suggest likely distributors.MARKET RESEARCH STRATEGIES FOR EXPORT The manufacturer should determine which foreign market to target first. samples and other necessary information. joint venture. etc) 5. but employ a trading house or export agent to act on its behalf in seeking market opportunities. Once a preliminary survey has suggested one or a few countries for closer investigation. is beyond the scope of the Trade Commissioner. market research through the participation in a trade fair. Some manufacturer may decide not to export them. In practice. In targeting likely foreign market. ." If the market research required. automatically looks North of the border such as Thailand. government sponsored export mission or personal visit to foreign countries. The existence of any market opportunities that would provide a market "niche" and "competitive edge" Smaller exporter may wish to reduce the costs of any market survey by using government services available. Therefore. the exporter should find out: 1. for example. In KADVANI FORGE LTD. no market research is done at higher level only market research is done primary level because the buyers are coming at the premises of KADAVANI FORGE LTD. . which is very good potentials for the company. influenced by the quality of the product and services which is the very big plus point of KADVANI FORGE LTD. KADVANI FORGE LTD. is not so complex because they generally supply goods directly to consumers or through agent.CHANNELS OF DISTRIBUTION IN THE FOREIGN COUNTRY “ Channel of distribution for a product is the route take the title of the goods as they move from producer to the ultimate customer or industrial user” Channel of Distribution is the movement of goods and services from producer to consumer.g. CONSUMERS OR Such a system is called a marketing channel or a KADVANI FORGE LTD. The exporter should discuss with the agent or distributor the channels of distribution that would be used to market the products. whether the foreign country imposes any legal requirements e.g. fragility. AGENT . perishability) The channel of distribution of KADVANI FORGE LTD. the nature of the product itself (e. The choice of such channels should take into account the buying habits of the final customers. channel of distribution. Before choosing a foreign agent or distributor. their relative cost and efficiency. the types of channels available. A manufacturer must establish a system that keeps products moving steadily from the factory to the customer. the exporter should check. the agent must be a national of that foreign country. the exporter will have to decide on an appropriate blend of advertising. in promoting the export of its product or products. As a rule. his first task will then be to promote the product and his company to them. Promotion budget. whether current brochures would be suitable for use with foreign agents. the exporter could establish an initial export promotion budget between 10% to 20% of expected sales. Promotion blend. selling and other sales activities. the planned expenditure should be at a percentage of expected sales. distributors or buyers. This budget could be divided in one of the following suggested ways: 1. Does the promotional material needs to be translated into the local foreign language to make it acceptable. For consumer goods 45% advertising 35% selling 10% other promotion .CONSUMERS PROMOTIONAL STRATEGY How to do Export Promotion? What are the various ways to promote his products abroad? The exporter must consider. varying according to its keenness to get into the export market. The next task is to consider. if he plans to use agents or distributors to handle his product. in practice the amount of money available to be spent is often an arbitrary figure set by top management. As a guideline. you should consider a systematic way to keep track of the company's promotional activities in that foreign market. making the product easily available. The type of customer’s -is the promotion aims at Industrial user or middlemen. direct mail to prospective buyers. and encouraging the foreign consumer to try it. Sales decline stage. personal selling is essential in reaching wholesalers. the firm should concentrate on promoting brand loyalty. etc. For industrial goods 55% selling 25% advertising 10% other promotion (including trade fairs) In the introduction stage of the exporter's product. Finally. there should be some systematic way e. Advertising and samples are often the most efficient way of persuading middlemen to try a new food product. or aware of buyer's guides and trade directories for source of prospective agents. promotion can be placed on product differentiation .g. participation in trade shows. . buyers. emphasis must be on informing consumers. if and when sales begin to slip.2.trying to make the product as unique and differential as possible from competitive ones. Later. advertising in trade journals. etc. special promotion efforts will be required. in the market maturity stage. Trade fairs and trade journals is an excellent way of reaching industrial users. In the market growth stage. in this area of export promotion. Looking for sales leads. Whereas. Firms must maintain reasonable prices and standards to attract and keep customers. other contacts made and decide how often to follow-up and visit to the foreign market. People are not likely to buy from a company if they are dissatisfied with its product. through websites and all other promotional activities at industrial level. As the market is open no customer will not be a regular customer for one company because if he founds the other company provide goods at cheaper rate and as per their needs specification than they will run on there premises so in forging industries all the units are unique in itself so there is every body in the forging are competitors and isolate in itself. to develop personal contacts. is doing promotional activities through attaining international trade fairs. or if they can purchase the product for less money elsewhere. COMPETITION Competition among business firms affects the price and quality of their goods and services.customers. . Business firms compete for sales by using such techniques as advertising and by offering special discounts or bonuses. KADVANI FORGE LTD. It is the cheapest and fastest way to inform large numbers of people about products or services for sale and to persuade them to buy. Poster advertisements appear in many buses. people come into daily contact with many kinds of advertising. They want the company name to be known and respected for the products the firm makes or the services it provides. or an idea.” Advertising is a message designed to promote a product. a service. Printed advertisements make up a large part of newspapers and magazines. Advertising thus plays a part in the competition among businesses for the consumer's money. The company holds no other extra advertisement. In many businesses.ADVERTISEMENT IN DOMESTIC AND IN INTERNATIONAL MARKET “Advertisement is a paid form of non personal presentation of goods services an idea by an identified sponsor. In many countries. Large business firms also use advertising to create a favorable "image" of their company. Commercials are advertisements. the volume of sales depends largely on the amount of advertising done. is doing any type of advertisement at domestic or India level but if any trade fair is organized at international level then it can participate in it. The purpose of most advertising is to sell products or services. . Local businesses use advertising to gain new customers and increase sales. Other types of advertisements are called adverts or ads. and in shops and other public buildings. which interrupt TV and radio programmed. Manufacturers advertise to try to persuade people to buy their products. KADVANI FORGE LTD. PRODUCT PACKAGE AND LABELING The package used to enclose the product for local market may not be suitable for export. or climatic extremes? (b) Is the product easily recognizable and appealing to the foreign customer? (c) Does the label conform to local regulations? (d) Does the label clearly indicate the contents. perhaps undesirable meaning in the local language? (g) Does the package need to be larger or smaller than the one sold locally? Perhaps local consumers can only afford to buy smaller quantities of it. is having loose packing in domestic market but there is more protection needed in the product which is to be exported. even to persons who may be illiterate? (e) Does the label need to be in a foreign language? (f) Does the logo or brand name have another. . The product of KADVANI FORGE LTD. the product of KADVANI FORGE LTD. (h) Have the brand name and trademark been registered in the foreign country? As the packing of the product is depend on the type of transportation and some times on the requirements of the buyers. is very much heavy so it is transported in ship so there is sea worthy packing is made of wooden cases which will prevent the product from the damages. Questions to be answered should include: (a) Does the product need extra protection from rough handling. which are as under. POLITICAL INTERFEARANCE In the country like India there is more interference of the political in each and every field.DURATION OF CONTRACT Duration of contract means the period upto. which the suppliers have to supply the product to buyers. is adopting the short term contract all new contracts are made at every new order. .  LONG TERM CONTRACT  SHORT TERM CONTRACT From the above two. but the government have reduced many benefits for export oriented units. Sometimes political interference is proper due to the monopoly practices is done by many industries so political interference of the government is proper and some times it interrupt the working of the organization unnecessary. There are generally two types of contracts. KADVANI FORGE LTD. There is no political interference is seen in KADVANI FORGE LTD. certification. KADVANI FORGE LTD. The unit is exporting a product have to take many things into consideration which he never taken in mind while selling in domestic market because it can create the image and value of a product with countries image too at international level. got the requirement of foreign buyers so it had changed the quality as per international standards. say: product labeling regulations. microscope etc.EFFECTS OF EXPORT ON FIRM The modifications in the product is may be due to legal requirements. lab equipment. vertical machine center. spectrometer. language or may be dictated by the local culture or climate. weight and measures. labor training. . office infrastructure. machineries. Government is also providing benefits in tax to the export oriented units are as under.EXPORT FACILITY Export facility means the facilities provided by the government for the firms who are engaged in the exporting activities. is also using EPCG it means government will allow to do the import upto the amount of export done by the company and government will charge very low duty for import. Export and Import is the only source by which we can earn FOREX. . is not using duty draw Back.  Duty Draw back  DEPB (Duty Entitlement Pass Back)  EPCG (Export Promotion Capital Goods) KADVANI FORGE LTD. They are using DEPB in this government will give the book and whatever the duty is paid it should be deducted from tax. The KADVANI FORGE LTD. Generally government is encouraging the Indian export because it generates income for the country and also creates the vital position of the country at international level. It is also sometimes called "ocean marine insurance" to distinguish it from "inland marine insurance". destroyed. the insurance company agrees to reimburse the insured in full or in part for any financial loss suffered from various specified risks. either the firm that sells the goods or the firm that buys them. Insurance for Exporters When goods have to be shipped to a foreign country. arrange for insurance. or stolen and may vary. Such insurance cannot prevent accidental losses but can provide reimbursement for financial loss should the exporter's shipment somehow fail to arrive or arrive intact. the type of insurance that is arranged is known variously as "marine insurance". the route and method of shipment. "marine insurance" is a contract between one party (usually the exporter) and another party (an insurance company). Marine Insurance Defined For shipments to countries overseas. there is always the risk that they may be damaged.INSURANCE “Insurance is a means of providing protection against financial loss in a great variety of situations”. The Need for Marine Insurance . It is to the exporter's advantage to be responsible for placing the insurance on the shipment. Basically. To be protected from financial loss as a result of this risk. In return for the payment of a fee (the insurance premium) by the insured (exporter). according to the country of destination. someone else's goods are damaged or destroyed during the voyage and in order to save the ship. If. if the goods are damaged or lost. the shipping company was negligent. is only do the transportation through sea ways so the is the need for marine insurance only. the risk of financial loss from damage or loss occurring during inland transit in the exporting country and abroad as well as during ocean shipment. By having marine insurance. The KADVANI FORGE LTD. Here. This is known as "general average". is taking Insurance from the two well-known insurance companies that are from Insurance of India and Royal Sundaram. including general average coverage. the benefit of the marine insurance. a marine insurance policy is often arranged on a "warehouse-to-warehouse" basis. plus the printed clauses in ocean bills of lading -the contract between the shipper and the carrier. Not much help can be expected from the shipping company for the exporter. However. . even while in its care. in terms of financial reimbursement if disaster strikes. the point that is being made is that the exporter's goods may be held in the foreign port until such a claim is settled.The cost of marine insurance is quite small compared with the cost of the goods shipped and the freight charges involved. is usually well worth the cost. the exporter must be able to prove "want of due diligence" . As we know that KADVANI FORGE LTD. in other words. Therefore. In order to recover losses from the carrier. Various statutes. the exporter avoids the risk of such a delay. It is difficult for an exporter to prove at what point damage or loss occurred. In other words. Such a policy relieves the exporter of the burden of proving when or where any loss actually occurred. then the exporter may be called upon to pay part of the cost. limit the liability of the shipping company for such losses. air cargo may be preferred. the exporter has various alternative methods. although more expensive. Without transportation. Towns and cities are traditionally the centers of civilization. However.TRANSPORTAION Transportation is the act of moving people or goods from one place to another. truck. available means of transportation. The choice will depend on the nature of the product (light or heavy. Without trade.  Land Transportation  Water Transportation Air Transportation In shipping goods abroad. etc). air and parcel post. high or low in value per cubic meter. is very heavy so there is no chance of Air transportation only Sea transportation is convenient for moving the goods for the company and at domestic level the company uses the Truck transportation. fragile or sturdy. when speed is essential. There are generally three types of transportation they are as under. and it brings them the goods they need or want. there could be no trade. The land Transportation is further divided in two categories that is as under  Rail Transportation  Truck Transportation The product of KADVANI FORGE LTD. Goods having high weight or cubic capacity or value ratio. rail. there could be no towns and cities. perishable or durable. the distance to be shipped. These include ship. . transportation helps make civilization possible. the usual method of shipping overseas is by ocean cargo vessel. and relative freight costs. Transportation takes people where they need or want to go. Therefore. Direct contact with the parties or on Internet etc. do not require to do party contacts because the buyers come from different countries for purchasing the product of KADVANI FORGE LTD. Export information system should involve: 1. Possible new contacts. Changes in import laws. It is advisable for a company to export the product indirect way for new company jumped in exporting.. Seeking and analyzing information about the foreign market 2. First of all it is essential to decide that whether to export direct or indirect. trade agreements and trade statistics KADVANI FORGE LTD. Trade barriers. To export a product is not an easy task.PARTY CONTACT AT INTERNATIONAL LEVEL It is the most essential and pre determined part for the exporting companies. advertisement. likewise the company do contacts with the parties. statistical information and market surveys 4. but than also for expansion of the business the company is attaining fairs. trade fairs and competitive products 3. It is no good developing an export market if your production capacity cannot meet the demands of the new foreign market. . When entail cost of production is very high which has to be recovered as easily as possible. 1.e. When it is felt that there will be very tough competition in the future and when the exporter wants to skim the cream before competitors enter the market 2.PRICING POLICY There are generally two types of pricing policy i. This policy is also adopted in order to earn maximum profits at the earliest because of the possibilities of competition at a latter stage. Under this policy. Skimming Pricing and Penetration Pricing which are followed by the company according to the suitability of companies product. This policy can be continued only till the competitors enter into the market. This policy is adopted in case of specialty goods only. an export firm for its products at the very outset fixes a very high price. that too only when a new product will not face any competition at this stage and the manufacturer wants to recover the amount of capital invested by him quickly. SKIMMING PRICING Under this policy. This policy is particularly desirable in the following circumstances. 4. In the very beginning of the product introduction when there is a complete lack of competition 3. which are meant for the consumers who can pay high price. such as fashion oriented specialty goods. In case of the products. PENETRATION PRICING This price policy is just opposite of skimming the cream pricing policy. price of a product is kept low so that a new product may create demand in the . also has very balanced price policy. . In some countries such costs are generally high in some cases they are so high that a simple calculation may indicate that there is de facto no were the product can effectively compete with a locally made similar product. This policy is based upon the object of maximizing profits through making maximum sales with low margin of profit. unnessarary labour movements and as much as possible by the. Price should be medium not so high and also not so low. They tries to reduce the cost by reducing wastages. This policy also aims at discouraging competitors from entering into the market. Some times it happens that if the prices should be low that it signs for the poor quality product so pricing is the essential factor and it should be determined very carefully. KADVANI FORGE LTD. For this problem KADVANI FORGE LTD. DE FACTO I case of exporters it is important to calculate the import related cost from the view point of importers.export market and the existing product may maintain its demand. KADVANI FORGE LTD. which can attract the customer. tries to minimize the cost. is not at all influenced by both of the above pricing policy and it has its own price structure it cannot charge so high prices because it is an open market so the customer have many alternatives and choices. CONTAINER LOADING There are generally three types of container loading system.  FCL ~ Full Container Loading In full container loading the loading is done fully there is no vacancy remains without stuffing the goods in it is known as full container loading. They are as under.  OL ~ Open Loading In this type of loading system no container stuffing is done all the goods is directly kept on the board of the ship. So no body knows that what happen tomorrow so to secure the seller any price rise in raw material or any other event. is using LCL & FCL. is included.  LCL ~ Loose container Loading It is the type of container loading there is no full container is made of goods it is half container also. which is not in the control of the exporter this Force Majure Clause. It is one type of section made by the exporter to importer generally in all the type of export contract. The main reason behind this is that if any rapid . FORCE MAJURE CLAUSE We know that in each an every export there is fixation of prices is done before. In FCL the stuffing of the goods is done in factory then for the inspection of goods the local regional EXISE authority will come and check the goods while stuffing. KADVANI FORGE LTD. no Force Majure Clause is included in any contract.increase in the price of the raw material than there will be an increase in the price of the final product for that increase importer has to pay. THE GENERAL INFORMATION . In KADVANI FORGE LTD. THE PRODUCTION DEPARTMENT . THE PERSONNEL DEPARTMENT . THE FINANCE DEPARTMENT . THE EXPORT DEPARTMENT . SUGGESIONS . FUTURE PLANS . CONCLUSION . . B IBLIOGRAPHY . PROFORMA INVOICE . . diversification and development.PACKING LIST FUTURE PLANS Since the company has started its journey 20 years ago but still business through modification. The company is trying to make continues expansion in international market and to serve new innovative product to the world.Future plan is very much essentials for the success of business unit course of action to achieve the specific goal. CONCLUSION . The future plan of the company is to make expansion in machinery and to go for the diversification in press forging which in turn reduces per production rate. So. It earns valuable foreign exchange for India through its exports and has maintained food relation with outsiders and employees.India is a developing country and it has adopting free economy. it is an opportunity for every domestic company to upgrade its technology and other process in order to stand in modern market. Here the best and efficient employees are appointed so that effective results can be achieved. KADVANI FORGE LTD. was not started on very high basis but due to the efforts of the executives and directors it has earned a good reputation in the industrial level. . has also taken the opportunities of free economy and it has imported the hammer machine from Russia. I wish the company very good luck for its future. which has cut throat competition. KADVANI FORGE LTD. .SUGGESTIONS  The production capacity should be utilized 100%  They should try to reduce their interest paid amount  They should try to get more export orders so that their profits increases and it is good at national level  The company should increase its channel of distribution  They should advertise more. so that sales of the company can increases than present  The production capacity should be absolutely exploited without unnecessary wastage of time intervals. Local market coverage should also be given the priority along with international market. K. M.M. Agrawals  Production Department: . Agrawals  Finance Department: . Verma & R.K. M.Sherlekar & Sherlekar . Verma & R.M.BIBLIOGRAPHY  Website of KADVANI FORGE LIMITED  Information of Export is taken from different web sites and from company  Personnel Department: .Dr.Dr. 1. 3. 8. 6. 5. 1. 7. PARTICULARS INTRODUCTION . 11. 9. 2. 10. 4. PARTICULARS GENERAL INFORMATION PRODUCTION DEPARTMENT PERSONNEL DEPARTMENT FINANCE DEPARTMENT EXPORT DEPARTMENT PROFORMA INVOICE PACKING LIST FUTURE PLANS SUGGESTIONS CONCLUSION BIBLIOGRAPHY GENERAL INFORMATION NO.INDEX NO. 2. 4. 7.2. 3. 3. 4. 9. PORTFOLIO SIZE OF UNIT FORMS OF ORGANISATION TIME KEEPING SYSTEM ORGANISATIONAL STRUCTURE ORGANISATIONAL CHART PLANT LOCATION SISTER CONCERNS PRODUCTION DEPARTMENT NO. 5. 8. 6. 1. PRODUCTS PRODUCTION PROCESS STAGES OF PRODUCTION PARTICULARS INTRODUCTION . PRODUCTION CAPACITY PRODUCTION PLANNING RAW MATERIALS & ITS SOURCES STORAGE FACILITY QUALITY CONTROL PRODUCTS MADE RESERCH AND DEVELOPMENT QUALITY POLICY PERSONNEL DEPARTMENT NO. 3. FUNCTIONS OF PERSONNEL MANG. 12. MANPOWER PLANNING RECRUITMENT SELECTION INDUCTION TRAINNING & DEVELOPMENT . 1. 5. 11. 9. 6. 4. 8. 10. 8. 2. 7. 7.5. 6. PARTICULARS INTRODUCTION ORGANISATION OF PERSONNEL DEPT. PERFORMANCE APPRAISAL GRIVIANCE HANDALING SYSTEM COLLECTIVE BARGAINING TRADE UNIONS PROVODENT FUND SCHEME . 10. 16.9. 18. JOB DISCRIPTION PROMOTION TRANSFFER POLICY WAGE & SALARY ADMINISTRATION BENEFITS & SERVICES 14. 11. 13. 15. 12. 17. PARTICULARS INTRODUCTION FINANCIAL PLANNING CAPITALISATION CAPITAL BUDGETING MANAGEMENT OF FIXED ASSETS MANAGEMENT OF WORKING CAPITAL ACCOUNTING POLICIES MANAGEMENT OF RECIVABLES RATIO ANALYSIS TREND IN LAST THREE YEARS CONTRIBUTION OF UNIT . 11. 7. 2. 4.FINANCE DEPARTMENT NO. 8. 3. 9. 1. 6. 10. 5. DURATION OF CONTRACT POLITICAL INTERFEARANCE EFFECTS OF EXPORT ON FIRM . 6. 1. 13. 12. 11. 4. 8. 3. 5. 2. 9. 16.EXPORT DEPARTMENT NO. 15. PARTICULARS ANALYSIS OF PRODUCT FOR EXPORT INTRODUCTION THOUGHT OF EXPORT EXPORT PRODUCTS EXPORT IN COUNTRIES & COMPANIES BASE OF EXPORT PRICING EXPORT PRICING TERMS MARKET RESERCH STRATEGIES CHANNEL OF DISTRIBUTION PROMOTIONAL STRATEGIES COMPETITION ADVERTISEMENT PRODUCT PACKAGE & LABELLING 14. 10. 7. IV. Receipt of export order Processing of Export order Issue of order acceptance Receipt of letter of credit Purchase / manufacturer of Export goods Paking. INTERMIDIATE STAGE . I. II. II. VII. INITIAL STAGE I. VI. III. 21. 20. EXPORT FACILITY INSURANCE TRANSPORTATION PARTY CONTACTS PRICING POLICY DE-FACTO CONTAINER LOADING FORCE MAJURE CLAUSE PROFORMA OF EXPORT QUOTATION EXPORT PROCEDURE 1. V. 24. III. 23. 19.17. 22. 25. 18. VIII. stuffing into container Completion of export relates EXCISE formalities Movement of goods for shipment purpose Receipt of material from exporter Warehousing of material Booking of space with shipping company / Airlines 2. V. Negotiation of documents through Bank for Realization of export proceeds Claiming of export incentives 3. III. ii. II.IV. i. VI. I. IV. Preparation of shipping documents Await carting date Movement of cargo to port / Airport premises Receipt of export consignment in the premises Passing off shipping bill Entry in general manifest Examination of consignment / EXCISE seal Obtaining of forwarding order Placement of cargo under cooling period Loading of consignment Receipt of Mate’s receipt / Air bill Exchange of Mate’s Receipt with bill of lading Preparation of commercial invoice and completion of documents for negotiation purpose. II. ARE 1 form are sent to custom Shipping bills are made and verified by customs Goods are handover to the ship . I. FINAL STAGE NESSASITIES FOR EXPORT Bank Account IEC code is necessary EXISE Registration Customs application for container stuffing Invoice. EXPORT PRODUCT PROCESSING 4. III. IV. Packing list. iii. V. certificate of origin is issued to chamber of commerce Bill of lading sent to importer If insurance than copy of insurance bill paid For payment company fills form of APPENDIX 22a .Mate receipt will get from captain of ship Shipping company will give bill of lading Commercial bill. commercial invoice. pacing list. . Y .B. Hitesh Bhatt Submitted To ~ Saurashtra . SHUKLA ~ 2005 – 2006 ~ T.ON KADVANI FORGE LIMITED RAJKOT REPARED BY LAKADAWALA ARIF A College Academic Year Semester Roll No.N. Seat No. Rajkot Guided By ~ Mr.B.A ~ ~ University. ~ SHRI H.