EXECUTIVE SUMMARY

We have completed our live project on the AMUL INDUSTRIES PVT. LTD with the help of our faculty and staff of Amul Industries Pvt. Ltd. We have given brief information regarding our project. We have collected the information as per under:1) INTRODUCTION: - In this we have included brief information regarding the company. 2) GENERAL INFORMATION: - In this we have included brief information, starting from the establishment of the company, with its objective, type of unit, organization structure and employer services given to workers. 3) PRODUCTION DEPARTMENT: - In this we have included brief information regarding its products and its process, with production planning and control, with quality assurance of products with the help of quality objectives, policy, and control. 4) MARKETING DEPARTMENT: - in this we have included brief information regarding all the required aspect to be successful in the marketing activities and policy of AMUL INDUSTRIES.

5) HUMAN RESOUCE DEPARTMENT:-In this we have included brief information regarding recruitment. Selection, training procedure of this company, with its job description, with its various schemes.

6) FINANCIAL

MANAGEMENT:-In

this

we

have

included

brief

information regarding financial planning of the company, and what is the situation of Amul Industries in its working capital, fixed assets etc.

7) CONCLUSION: - In this we have included brief information regarding the summary of the company and our views towards the company.

8) APPENDIX: - In this we have included the information regarding all the diagrams and charts included in this report.

9) BIBLIOGRAPHY:- In this we have included all the information of the resources whichever has been taken to get the knowledge.

GENERAL DEPARTMENT

Picture: 1

HISTORY AND DEVELOPMENT

Amul industry was established before 46 years in 1965.it is one of the firms manufacturing auto parts. At that time the company had started production as a small scale unit.ADIGO SPARES INDUSTRY is the parent company of Amul industry. It was established as a partnership firm. But in May 1995 as the firm was converted into private limited company. Now Amul is a powerful combination of tradition, ethos, and experience. Today Amul is a leading global manufacturer of automotive components serving almost every major vehicle manufacturer worldwide. Today Amul has become faster and stronger than ever and determined to become more so. Amul has created a value based enterprise uniquely positioned to provide customers with innovative solutions that deliver best vehicle performance, quality and value for their product. Now the amul is employing about 6000 people & the Amul groups have 28 units located in Rajkot, pune, Hyderabad, Jamshedpur, sanand, rudrapur, singur, ranipet.this units are engaged in various products like connecting rod, cam shaft, crank shaft, cylinder head, cylinder block etc.Amul have continued to transform themselves through aggressive productivity improvement, leading-edge

technologies and sustained customers relationships.

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COMPANY PROFILE NAME OF COMPANY LOCATION AMUL INDUSTRIES PVT LTD 2, Aji Industrial Estate, Plot

no.332/333, Rajkot 360003(Gujarat) India. CHAIRMAN FORM OF ORGANIZATION BANKERS TELEPHONE/FAX Chandubhai Santoki private limited company state bank of India ++91-281-2387762 91-281-2387461/898/815 E-MAIL export@amulind.com marketing@amulind.com WEB-SITE WORKING HOURS NO. OF MEMBERS ACCOUNTING YEAR LAND AREA www.amulind.com 8:00 hours 6000 1st April to 31st march 4, 00,000 sq.mt. Table: 1

COMPANIES OBJECTIVES
Every organization and person has its own goals and objectives. They make their every effort in such direction that they can get their objectives as every as possible. The some of the objectives of AMUL INDUSTRIES are as under:-

Consistently reduce the customers complaints. Consistently reduce the customers complaints.
Consistently reduce the rejection,re-work & process variation.

Improve product & process performance.

Diagram: 1

COMPANY LOGO

Picture: 2

MANAGING BODY
CHAIRMAN:-CHANDUBHAI SANTOKI

Diagram:2

M.D.: SURESH SANTOKI

DIRECTOR: GIRDHARBHAI PATEL

SENIOR GM: MANOJBHAI KIYADA

PRODUCT MANAGER: M. DAMODARAN.

FINANCE MANAGER: MUKESH TRIVEDI

SALES MANAGER: ATUL PATEL

HR MANAGER: MANOHAR PAREKH & KRISHNA THOBANI 8

SIZE OF UNIT
On the basis of size, nature, capital investment, and production capacity industries can be divided into 3 major groups:-

SIZE OF UNIT

SMALL SCALE INDUSTRY

MEDIUM SCALE INDUSTRY

LARGE SCALE INDUSTRY

Diagram: 3 AMUL INDUSTRIES PVT LTD. Can be placed under the large scale group. It is an industry in which total capital in fixed assets that is plant & machinery is more than 3Cr ores there is no upper limit of investment.

AMUL INDUSTRIES PVT LTD. Is with 4, 00,000 sq mt area of land. At present the investment in plant & machinery is about Rs.500 crores and have classified as a large scale unit.

FORM OF ORGANIZATION STRUCTURE

The form of organization structure can be divided into 3 groups which include:JOINT STOCK COMPANY
PARTNERSHIP FIRM

PRIVATE FIRM

Diagram: 4 AMUL INDUSTRIES PVT LTD. Is a Large Scale Industry. It was established as a partnership firm. But in May 1995 the firm converted into Private Limited Company.

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ORGANIZATION STRUCTURE
The superior-subordinate relationship is defined by organizational structure. These structures are somewhat like ROAD MAPS as they guide to official relationships. Organizational structure indicates the peoples location or the positions in the hierarchy and their relationships within formal organization. They aim in determining which of the basic type of organizational authority structure a particular enterprise has adopted. When two or more persons work together towards a common goal authority and responsibility are allocated among them so that their efforts may become effective. This is the task of organizing. It is known as designing of an organizational structure. Structure of organization system is very much effective factor for any organization. Any organization structure but in practice in any business unit it is inevitable to distribute duties and authorities among different persons and department for an effective implementation business policy of an enterprise. The following is the organizational structure of an AMUL INDUSTRIES:-

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ORGANIZATION CHART OF AMUL INDUSTRIES PVT. LTD

CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

PRODUCTION MANAGER

PERSONNEL MANAGER

MARKETING MANAGER

FINANCE MANAGER

ASST. PRODUCTION MANAGER

ASST. PERSONNEL MANAGER

MARKETING MANAGER

AAST. FINANCE MANAGER

SUPERVISOR

WORKER

AREA MANAGER

ACCOUNTANT

WORKER

SENIOR CLERK

JUNIOR CLERK

Diagram: 5
12

PRODUCTS ASSEMBLY
AMUL INDUSTRIES has already entered the business of 5 Cs to make it as an automotive industry. The products of AMUL are known by 5 cs which includes:-

1)Connecting Rods

2)CrankShaft

3)Cam Shaft

4)Cylinder Blocks

5)Cylinder Heads

Diagram: 6

1) CONNECTING RODS:-

PICTURE: 3

13

PICTURE: 4
14

2) CRANK SHAFT:-

PICTURE: 5

15

PICTURE: 6

16

3) CAM SHAFT:-

PICTURE: 6

17

4) CYLINDER BLOCKS:-

PICTURE: 8

18

5) CYLINDER HEADS:-

PICTURE: 9

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MANUFACTURING PROCESS AMUL INDUSTRIES follows the below manufacturing process to make the automotive parts:-

MILLING
GRIDING

BROACHING

BORING HONNING

DRILLING

Diagram: 7

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TIME KEEPING SYSTEM

The time keeping system of workers as well as officers is playing a vital role in organization. If this systematic management is powerful then there will be reflect result production capacity, demand for the product, inventor conversation period, credit of a company and also in customer relation. The time schedule of officers and workers are as under:-

Morning shift: - 8:30 A.M. TO 12:00 P.M. Break Time: 12:00 P.M. TO 1:00P.M. 6:00 P.M.

Afternoon Shift:-1:00 P.M. TO

Table: 2
Sometimes in situation of peak demand the workers are asked to work for overtime also. The overtime duration is generally for 4 hours.

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EMPLOYER SERVICES
With wages and salary certain monetary and non-monetary benefits are given to workers in mostly all the industries. These benefits are called facilities or incentives or services provided to employees. These services are given to employees to encourage them therefore all big company gives different types of services to their employees. These services would induce workers to perform their tasks properly and induce them to remain in that job only. AMUL INDUSTRIES provide various loans to its employees as welfare activities such as:1) Housing loans 2) Vehicle loans 3) Consumer durable loans 4) Marriage loans Company provides interest free loans to its workers on occasion of marriage, journey etc. Sometimes in case of accident the company provides first aid facilities and in emergencies company also paid the whole expenditure of the treatment. Company also provides 10% bonus to employees at the end of the year. The unit contributes to KAMDAR RAJYA VIMA YOJNA, so that workers &his family can get medicine, indoor and outdoor medical facilities from hospital of KAMDAR RAJYA VIMA YOJNA free of charge.
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CONTRIBUTION OF UNIT TO SOCIETY The following is the contribution of AMUL INDUSTRIES towards the society: This company gives its contribution to the MAHILA ITI for the betterment of woman and society at large. This company has also made some of the gardens in the city for the betterment of childrens. This company has also made some contribution to the orphanage, & this company has contributed for many of the social activities.

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AWARDS & ACHIEVEMENTS

...

Picture: 11
24

Picture: 12

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PRODUCTION DEPARTMENT

Picture: 12

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LOCATION
It is essential for each and every business organization to locate his industry at a place where the cost production is low and for their raw material, labour, transport facility, power, water, finance, market, etc. are required at low price. By it, they can also get maximum production. The beneficial reasons are as follows: Availability of raw materials. Availability of laborers. Water and power supply. Transport facility. Marketing. Financial facility. LOCATION OF AMUL INDUSTRIES UNITS:-

(RAJKOT)

AMUL INDUSTRIES PVT. LTD. UNIT- 1

2, Aji Industrial Estate, Plot No.332/333, Rajkot -360003 (Gujarat) India. Picture: 13

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AMUL INDUSTRIES PVT.LTD. (BOMBAY)

A/5- Anant Nagar, near N.L. high school 4, S.V. road, Malad(West),MUMBAI-400064.

AMUINDUSTRIESPVT.LTD(DELHI )
64, Devdoot apartments, D-block Vikasuri, NEW DELHI-110018.

Picture: 14

28

Picture: 15
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PROCUREMENT
Procurement is divided into 2 parts which includes:-

PROCUREMENT

Procured Directly By The Customers

Procured By The Approved Supplier

Diagram: 8

In AMUL INDUSTRIES it is procured by the approved supplier. It is judged by quantity, quality, and delivery. Here list is given by customers. In this industry, if 3 or more than 3 suppliers are there then (SOB) share of business is done. Basically it is on suppliers rating and on cost. This supplier rating is done on the basis of quantity, quality, delivery and cost Here in this industry there blanket purchase order which states the cost and port no. In this system schedule rating is done. So according to the schedule rating weekly, monthly, and daily schedules are made.

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INVENTORY MANAGEMENT
Inventory is defined as a usable resource which is physical and tangible such as materials. In this sense, our stock is our inventory, but even then the term is more comprehensive. Though inventory is a usable resource, unless it is managed efficiently and effectively. Inventory management boils down to maintaining an adequate supply of something to meet the expected demand pattern subject to budgeting considerations. Inventory could be raw materials, work in progress, finished products or the spare parts and other indirect materials. Effectiveness of the materials and production functions depends to a large extent upon inventory management. Inventories have to be procured, stored, and carried for a production system, since a situation when they can be instantaneously available is difficult to assume Indian setting .inventories are therefore necessary to stay. In AMUL INDUSTRIES in every beginning of the month, physical inventory is taken and based on that schedule is raised.

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STORE KEEPING MANAGEMENT

The aim of any business activity is to increase the value of the original resources which are risked by the owners in the venture. The efficiency of the manufacturing operations largely depends on the efficient functioning of the receiving and store operations. The benefits out of an efficient storing will bound to outpace the cost of administering them. Storing is the service function and involves much of the paper work, but then also there is an ample scope for simplifying and standardizing the paper work involved in these functions. In AMUL INDUSTRIES the store keeping management is based on three functions which include: The quality of the end product largely depends on the quality of materials received. The smooth and uninterrupted production flow is dependent on the efficient stores function. The store organization acts as a custodian of stock items and all this affect directly or indirectly the production cost. AMUL INDUSTRIES follows the FIFO method. As its name suggest, is governed by the principle that the materials which are received first are issued first.
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RAW MATERIAL
In the production organization, the important inputs are-men, machines, and materials which are result of the monetary commitments. Among them materials is being a key and inevitable input, directly affects the fundamental economic objective, viz., profitability of any manufacturing organizations. Efficient management of any of the output directly affects the output and results in the profitability of the organization. As material consumes lions share of the

investment and that too with a possibility of turnover, its efficient management directly contributes to the profitability of the organization. Every product has different raw materials. So AMUL INDUSTRIES have different products like connecting rods, crank shaft, cam shaft, cylinder heads, and cylinder blocks with different raw materials in it. 1) CONNECTING RODS:The raw material included in connecting rod is: Iron Casting Steel Aluminum

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2) CRANK SHAFTS:The raw material included in crank shaft is: Carbon steel:-it includes manganese, chromium, nickel, silicon, aluminum. Iron Carbon 3) CAM SHAFT:The raw material included in cam shaft is: Stainless steel or cold rolled steel Zink alloy Nylon 4) CYLINDER BLOCKS:The raw material included in cylinder blocks is: Aluminum Iron Alloy Copper 5) CYLINDER HEADS: Multi layered steel Graphite composite
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PRODUCTION CONTROL AND PLANNING

The basic objective of creating the production organization is to make products. Thus production is the nucleus or the centre of the entire business operation. Production planning and control functions look after the production activities. Production planning and control comprise the planning, routing, dispatching and follow up functions in the production process so that the movement of materials, performance, of machines and operations of the labour. This is a management functions which plans, directs, and controls a materials flow system in the plant to achieve the targets set by marketing with almost economy and efficiency. There are two important characteristics of the products which the AMUL INDUSTRIES take into consideration: Certain of utility Addition of value At the time of inquiry letters the buyer also provides the designs and drawing according to his requirement. These drawings are studied and then after if the engineer finds that the requirement product can be produced from available drawings, he will ask the production manager to produce a few sample are qualified the buyers than the whole lot of purchase undertake order and according a production plan is prepared.
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QUALITY OBJECTIVES
Quality means the degree to which a specific product satisfies a particular class of consumers or consumers in general or the degree to which it conforms to a design specification or the distinguishing feature of a products taste, colour, and appearance etc. Quality is the totality of features and characteristics of a product or services that bear on its ability to satisfy a given need. Quality is a very important for a manufacturer of products or services, because the very existence of a manufacturer depends on the quality level. Good quality ensures higher profitability, creates high goodwill. AMUL INDUSTRIES has some of the objectives regarding the quality which includes: Consistently reduce the customer complaints. Consistently reduce the number of system non-conformities in on-going internal studies. Consistently reduce the cost of product manufacturing. Consistently reduce rejection, rework and process variation. Improve product and process performance

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QUALITY POLICY
Policies are the general statement that guides the process of decision making. Whatever decisions and strategies are decided for accomplishment of objectives is called policies. It creates a distinct image of the managers, executives, and employees of the company. They give the idea of the efficiency of the company. AMUL INDUSTRIES is committed for achieving total customers satisfaction through: Consistently supplying quality products to our valued customers in time. Continually improving the quality standards by implementing process control and prevention techniques. Improving manufacturing facilities. Complying with government and safety regulations. Continually improve the effectiveness of quality management system.

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QUALITY CONTROL
Quality control is to see that the product or services is designed in such a way so that it meets customers specifications. It also sees that the product or services used by a customer is not harmful or injurious and meets safety needs. Quality of a product can be controlled at the following stages of production:-

AT DESIGN STAGE

AFTER PRODUCT IS SOLD

AT PURCHASING STAGE AT PRODUCTION STAGE

Diagram: 9 AMUL INDUSTRIES take care in quality of their product with special term. In this they depend on machines and manpower also in quality control machine they use micro analysis. Quality control is done on basis of:Multi dimensional parameter & Co-ordinate machine. Surface checking and Talley rand roundness checking.
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QUALITY ASSURANCE
Quality assurance refers to the assurance to customers that the products, parts, components, tools etc. contain specified characteristics and are fit for the intended use. Quality assurance is concerned with determining the procedures to be used and frequency of check or test to be made within the system so as to ensure that the system is meeting the specification incorporated in the product/service design. In AMUL INDUSTRIES when a new product comes than quality assurance starts. This activity is called as APOPC (ADVANCE PRODUCT QUALITY PLANNING).the various machine used for measuring assurance of the quality is as under: MULTI CHECKING GUAGE:-machine is used for 100% checking of quality assurance. COMPRESSOR STAND:-to check the width of machine. AIR GUAGE:-small and big bore checking machine. PLUG GUAGE:-if tolerance is higher than level or to check the speed.

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Picture: 16

40

LIST OF MAJOR MACHINES CONNECTING ROD:The following are the machines for connecting rod: Grinding machine Buch press & oil hole machine Boring machine Rough boring machine Notch machine Tough machine Bolt hole machine Final per face machine Vertical milling centre Tapping Noting machine Fracturing machine

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 CRANK SHAFT:The following are the machines of crank shaft: Facing and countering machine CNC turning machine Pin milling machine Oil hole drilling machine Induction hardening machine Journal grinding machine Pin grinding machine FOD(flange outer diameter) grinding machine VMC(vertical machining centre) Balancing machine Super finishing machining.

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LATEST TECHNOLOGIES
AMUL INDUSTRIES manufacturing facilities are backed up with latest and precision measuring system. This facility is gudded by specially latest technologies which are as follows: UTM Microscope Spectroscope foe chemical and physical testing Latest CMM(three co-ordinate measuring machine) Scan max Marposs final inspection gauge(to check parameter of connecting rod at a time) Electronic torque tester Nut runner Cakribration masters for dimensional checking

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MARKETING DEPARTMENT

Picrure: 17

44

INTRODUCTION
Marketing is typically has been seen as a task of creating, promoting and delivering goods and servicing to the customer and business. Marketing is in ten types of entities: goods, services, experience, events, persons, places, properties, organization, information & ideas.

According to social definition marketing is the social process by which individuals and groups obtain what they need and want to creating, offering and freely exchanging products and services of value with others.

According to American association marketing is the process of planning and executing the conception, pricing, promotion and distributions of ideas, goods, services to create , exchange that satisfy individuals and organizational goal.

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ORGANIZATION CHART OF MARKETING DEPARTMENT

MARKETING AND SALES MANAGERS

MARKETING AND SALES

MARKETING RESEARCH & DEVELOPMENT

QUALITY CONTROL OFFICER

ENGINEER

FIELD & FEILD CLERICAL STAFF

CUSTOMER RELATION PERSON

SALES FIELD ASSISTANT

CORRESPONDENCE CLERK

Diagram: 10

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PRODUCT PROFILE

1) CONNECTING ROD:

Picture: 18
A rod that transmits motion or power from one moving part to another, especially the rod connecting the crankshaft of a motor vehicle to a piston. In a reciprocating piston engine, the connecting rod or conrod connects the piston to the crank or crankshaft. Together with the crank, they form a simple mechanism that converts linear motion into rotating motion. Connecting rods may also convert rotating motion into linear motion. Historically, before the development of engines, they were first used in this way.

47

As a connecting rod is rigid, it may transmit either a push or a pull and so the rod may rotate the crank through both halves of a revolution, i.e. piston pushing and piston pulling. Earlier mechanisms, such as chains, could only pull. in a few twostroke engines, the connecting rod is only required to push. Today, connecting rods are best known through their use in internal combustion piston engines, such as car engines. These are of a distinctly different design from earlier forms of connecting rods, used in steam engines and steam locomotives. 2) CRANK SHAFT:

Picture: 19 The crankshaft, sometimes casually abbreviated to crank, is the part of an engine which translates reciprocating linear piston motion into rotation. To convert the reciprocating motion into rotation, the crankshaft has "crank throws" or

48

"crankpins", additional bearing surfaces whose axis is offset from that of the crank, to which the "big ends" of the connecting rods from each cylinder attach. It typically connects to a flywheel, to reduce the pulsation characteristic of the four-stroke cycle, and sometimes a torsional or vibrational damper at the opposite end, to reduce the torsion vibrations often caused along the length of the crankshaft by the cylinders farthest from the output end acting on the torsional elasticity of the metal.

3) CAM SHAFTS:-

Picture: 20
If the cylinder heads represent the aerobic side of an engine, and the rotating assembly is its muscle, then the camshaft must be the brain. The cam is the component that signals when the valves open and close, timing the valve events to create power.
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Camshaft is a shaft to which a cam is fastened or of which a cam forms an integral part. Appropriately, the cam is also the most complex and often baffling component in an internal combustion engine.

4) CYLINDER BLOCK:-

Picture: 21 Cylinder heads are an integral component of internal combustion engine. High performance cylinder heads that are used in automobiles these days are basically the castings which houses spark plugs, valves, fuel injectors and support the different parts of cooling system. Raw materials used for making cylinder heads are aluminum, iron, nickel alloys, copper, titanium, stainless steel, zirconium, carbon steel, and brass, bronze and galvanized steel. The chief function of cylinder head is
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to help the head gasket seal the cylinders properly so that they are able to build enough compression for engine operation.

5) CYLINDER BLOCK:

Picture: 22
Cylinder-head-sector, also known as CHS, was an early method for giving addresses to each physical block of data on a hard disk drive. In the case of floppy drives, for which the same exact diskette medium can be truly low-level formatted to different capacities, this is still true.

51

Though CHS values no longer have a direct physical relationship to the data stored on disks, virtual CHS values (which can be translated by disk electronics or software) are still being used by many utility programs. CHS addressing is the process of identifying individual sectors on a disk by their position in a track, where the track is determined by the head and cylinder numbers.

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PRODUCT PLAN STRAEGY

First of all AMUL INDUSTRIES concentrates on the need of consumers then produces to satisfy those needs of the consumers. Product planning is defined as the process of deciding in advance every factor related to product. Each company have their own product planning and strategy. Amul industries while dealing their product plan and strategy keep in mind the following points: MARKET demand. Consumer NEED. After going through the above factory plans are made for the production and distribution of products, but the main aim remains to meet with consumer needs and demands to know the consumer need market research is carried out, through small market research team.

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PRODUCT PLANNING
AMUL INDUSTRIES is engaged in auto parts. They have to maintain quality. They have good laboratory. They check the raw materials first in the automatic machine which they are using are found very rare in India that quality is controlled itself. They are one of the manufacturers of connecting rod and crank shaft in India. AMUL INDUSTRIES have adopted ISO/TC 16949:2002 quality systems to ensure continuous quality improvement and highest customers satisfactions. Proper blending of a high tech conventional manufacturing technologies in house, expertise, testing, and metrology laboratories and S.Q.C culture gives us an edge to achieve the highest quality standard cost competitiveness and shortest supply schedules to satisfy the customer needs. AMUL INDUSTRIES committed in building a quality organization with customer as the main focus by making available them products and services, which adequately meet their requirements and thereby ensuring their satisfaction.

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PRODUCT DECISION
Product decision means taking a decision about product i.e. decision related with price of the product, quality of the product, packaging of the product, branding of the product etc.marketing manager has to take such a various decision related with product. He has to also taking decisions about product length, product width, product variety, product mix etc. Sometimes in product decisions, he has 2 alternatives decisions i.e. either produce a new product or improve the existing product. In AMUL INDUSTRIES marketing director takes all types of product decisions whether it is related with price, quantity etc.it is always improving the product quality continuously sometimes if provided then it may also produce a new product.

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PROCESS OF PRODUCTS 1) A)CONNECTING ROD PROCESS(SMALL CARS):The following are the steps followed to make a connecting rod: Rough face grinding U-drill Reference pad Rib milling No.rib milling No. marking Spot face Pre-boring Cutting Joint face Toung milling Joint face angel Groove Groove chamfer Assembly rough Bolt hole Tapping
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 Assembly final Final face grinding Rough boring Final boring Chamfer Top face 1st & 2nd face Oil hole S.E.(small end) honing Bush press Reference pad correction Balancing B.E.(big end) honing Bush bearing Notch

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B) PROCESS FOR MARUTI CARS:The following are the steps included in process of connecting rods only for Maruti cars: Forging Grinding U-drill Rib milling Spot face Cutting Joint phase Pre-boring Bolt hole Final spot face Broaching Big & oil hole Notch milling Assembly Final grinding Final boring Chamfer
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 Honning Assembly line Final dispatch

2) CRANK SHAFT PROCESS:The following are the steps included in the process of making a crank shaft: Forging Turning Grinding Low run diameter Pin grinding Multi drilling and tapping Polishing Cleaning Checking Assembly.

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NEW PRODUCT DEVELOPMENT

The process is followed by the industry for the development of new product:-

INQUIRY FROM CUSTOMERS

MULTIDISCIPLINARY TEAM (MDT)

PURCHASE ORDER

PART PER APPROVAL PRODUCT(PPAP)

PRODUCTION PLANNING

Diagram: 11

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PRODUCTION AND DEVELOPMENT

There is a separate research and development department. The organization structure can be drawn as following:RESEARCH DEVELOPMENT

ENGINEERS

SALES DEVELOPMENT OFFICER

PRODUCT DESIGNER

SUBORDINATES

Diagram: 12 The engineers is always in search of new drawing with respect to the size, raw materials, chemical composition etc. if he is not satisfied with these studies than he may change the drawings. Being an industrial manufactures of basic goods the demand is comparatively officer adopts a special technique for further promotion of sales. The product designer is in search of quite simple designs.

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MARKET SHARE
The team market share is used frequently; essentially, it refers to the proportionate of the total sales at a product during a specific time period in a specific market that is captured by a single firm, market share can refers to entire industry, narrow segments or particulars geographic areas and also can apply to past, present and for future time periods. The analysis of market share is needed to compare the companys sale with industrys sales. Comparing of companys sales result with its defined goals certainly it is a useful form of performance evolution. But it does not tell how the company is doing relative to its competitions. This is nothing but a detailed study of market share analysis which indirectly helps in accurate forecasting of demands for a product for successful marketing planning. As AMUL INDUSTRIES has a wide and international market it also face big competition but due to it quality AMUL feels a strong position in the market.

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MARKET SEGMENTATION
The following are the market segmentation of AMUL INDUSTRIES:-

CAR SEGMENT

COMPRESSION SEGMENT

MUV (multi utility vehicle) SEGMENT

SUV (sport utility vehicle) SEGMENT

HCV (heavy commercial vehicle) SEGMENT

TRACTOR SEGMENT

LTV (light truck vehicle) SEGMENT

Diagram: 13

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Table: 3

DIFFERENT SEGMENTS OF AMUL INDUSTRIES CAR SEGMENT

MARKET SEGMENTATION

MARUTI, INDICA

COMPRESSION SEGMENT

IR

MUV ( multi utility vehicle) SEGMENT

XYLO, MARUTI, INDICA

SUV ( sport utility vehicle) SEGMENT

SCORPIO, MARUTI, INDICA

HCV ( heavy commercial vehicle) SEGMENT

TATA MOTORS, ASHOK LEYLAND

TRACTOR SEGMENT

JOHN DEERE, MAHINDRA, EICHER.

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PRICING POLICY
Pricing is the one of the critical decisions for the marketing department. So we need to understand the term pricing. Economist defined the price as the exchange value of product or goods or services in terms of money. The main objective of pricing decision is to earn maximum revenue from business as the marketing function has an important role to play in marketing field. It plays a greater role in marketing mix the company as it is the only element in marketing mix which is responsible for demand and sales volume. Price is the only one element that produces revenues or incomes. The other element such as product, promotion, distribution, advertising, marketing research and development, sales force etc. All these elements do not produce the revenue or income but incur some cost. Pricing decisions affects the most to financial well being of the company. AMUL INDUSTRIES generally uses cost plus pricing method for taking pricing methods. Their profit margin ranges between 10% to 25%. It differs from product to product. Sometimes price is also determined through negotiation between two parties i.e. company and purchaser. The minimum price can be established at a breakeven point.

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CHANNELS OF DISTRIBUTION
Marketing unit consists of 4 Ps and physical distribution is one of them. It is also known as distribution channel. It is the link between producer and consumer. Distribution channel is the link between the producer and consumer. It is the link or channels by which producers send its goods from producer place to consumer place. Proper channel of distribution should be selected so the product can be easily reached into the hands of final consumer. The choice of channel of distribution depends on nature of product, financial resources, business tradition etc. There are 2 methods of channel of distribution which includes:-

CHANNELS OF DISTRIBURION

DIRECT METHOD
Diagram: 14

INDIRECT METHOD

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Direct method refers to the selling of the product directly by the manufacturer to customers. While indirect method refers to selling of the products engaged at through various Medias such as wholesalers, retailers, agents etc. AMUL INDUSTRIES follows the direct method of channel of distribution. They directly sale the products from consumer to buyer. GIVE GOODS

MANUFACTURER

CUSTOMERS

PAYS MONEY Diagram: 15

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MARKETING RESEARCH
Marketing research is the systematic design, collection, analysis and reporting of data and relevant to a specific marketing situation finding the company. Generally marketing research includes the following elements: Determination of market characteristics. Measurement of market potentials.

Market share analysis. Studies of business trends. Short range forecasting. Competitive studies. Long range forecasting. Pricing studies. Theory of existing products.

As far as AMUL INDUSTRIES is concerned, it undergo the whole of the above Of the above process. Sometimes for marketing research it considers only studies of business trends, short range forecasting, competitive product studies and testing of existing includes the survey of different markets of different zones, area etc.

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CUSTOMERS
Today our list of customers includes almost all automobile giants in India including Tata motors, Ashok Leyland, new Holland tractors ltd., Mahindra & Mahindra, Eicher, Swaraj engines, greaves, Simpson & co., same Deutz and also customers from other areas like generators, compressors & diesel engines. Cummins India ltd., Ingersoll rand, kirloskar engines, Voltas, Tecumseh products (i) ltd. to name some of them. we also export our goods to overseas O.E.M customers like iveco-Italy, lombardini - Italy, same Deutz - Italy, Chinook compressors - Italy, knorr-bremse -France, FMC- USA, john Deere - USA, our goods are premium products in countries like USA, UK, Italy, Germany, France, Egypt, Dubai, Africa and other over 60 countries in the after markets of Mercedes, Perkins, Cummins, Toyota, land rover, john Deere, ford, Deutz, cater pillar, Isuzu and other renowned international companies.

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Picture: 24

70

Picture: 25

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INTERNATIONAL MARKETING

Picture: 26
AMUL INDUSTRIES products are also exported to overseas OEMs like: Iveco - Italy Lombardini - Italy EMC USA John Deere USA and many more. This industry is also exporting their products to more than 20 countries in Europe and Middle East countries for heavy and medium commercial vehicles as well as compress. Their disciplined system of working state of the art technology and high degree of quality controls have fetch them ISO 9002(1904) QS (1998) as well as TS 16949 accreditations.

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HUMAN RESOURCE DEPARTMENT

Picture: 27

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INTRODUCTION

Among all the means of production are only living means. The problem of personnel should be carefully solved in order to conduct the work efficiently satisfied employees are considered to be an asset of unit.

Personnel management is a part of management, it has the relation with the work of recruitment, development, maintenance and their harmony between objectives if workers at every level and to achieve them. .

It is important to have a good organization structure, but it is even more important to fill the jobs with right people a company may be successful with an organization structure which is very far from the best, but it will never be able to get of the ground if the people who run it and those who do the actual work are capable.

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ORGANIZATION STRUCTURE OF HUMAN RESOURCE DEVELOPMENT MANAGING DIRECTOR PERSONNEL MANAGER ASST. PERSONAL MANAGER

SUPERVISORS WORKERS Diagram: 16

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RECRUITMENT

Picture: 28
Recruitment is the process of acquiring at the right time, in the right number, for the right position, person with right qualification. Thus, scientific recruitment coordinates, number, time, position, and qualification. Recruitment is to find out probable employees and make them apply. A contended work force can be created only by scientific recruitment. Scientific recruitment is possible only when there is man power planning.

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In AMUL INDUSTRIES recruitment process is divided into two categories which include:-

RECRUITMENT PROCESS

RECRUITMENT FOR STAFF

RECRUITMENT FOR WORKERS

INTERNAL SOURCES

EXTERNAL SOURCES

Diagram: 17 1) RECRUITMENT TOR STAFF:AMUL INDUSTRIES follows 2 methods for recruitment to staff:-

A) INTERNAL SOURCE:AMUL INDUSTRIES recruits the person through internal sources by only promotion. The company used in internal sources only for managerial person. The man who is getting the promotion should be the employee of the company. This is the best beneficial sources of the recruitment.

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B) EXTERNAL SOURCE:The company recruits the staff in external sources through colleges and agencies. Company takes written test, interview and recuit.only first class candidates for experienced man company gives advertisement in newspaper etc. most of the time recruitment is done of fresh diploma or degree holder only in the some cases company uses newspaper and magazine.

2) FOR THE WORKERS:Generally in AMUL INDUSTRIES the external sources are used for the recruitment of the workers. For e.g. fitter, turner machinist and helpers etc. for this type of Workers Company give advertisement but mostly company gets the workers by the references of the senior workers.

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SELECTION PROCEDURE

Picture: 29
Selection is to select the proper candidates from the applications received. Compared to other factors, success or otherwise of an enterprise depends more on its personnel. So selection of a proper candidate is very necessary. Selection is to choose the right person for the right job from the application received. AMUL INDUSTRIES follow the selection procedure with the help of the following stages:diagram: 18

COLLECTING THE APPLICATION WRITTEN TEST INTERVIEW MEDICAL CHECK UP FINAL SELECTION AND PLACEMENT

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 COLLECTING THE APPLICATION:Prospective candidates will apply on the basis of reference given by the reference groups and recruitment officers will collect all the applications. On the basis of the application received the selection process starts. WRITTEN TEST:Here I.Q. test is taken to test the common sense, memory and smartness of the candidate. Due to this test the selection procedure will become more scientific. INTERVIEW:If the candidate passed the written test he has to face interview which is taken by the committee of the companys members. On the basis of this in charge make final selection. MEDICAL CHECK UP:The candidate who has successfully passed the interview is sent for a medical examination to a specified doctor or hospital. The purpose of such examination is to decide whether the candidate is physically fit to carry out work allotted to him. FINAL SELECTION AND PLACEMENT:-If the candidate successfully passes through the above stages then he is finally selected.

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TRAINING

Picture: 30 Without experience and expertise, proper functioning is not possible. However efficient the personnel recruited may be. The function of staffing is not merely to get personnel but to train and retain them as well. An effort is made throughout training to make the employee proficient in the work concerned. So the knowledge and education imparted for gaining proficiency in business is training. While a person is accepted to do a particular job effectively and efficiently, he must know that job perfectly for making the worker familiar with the work and to improve his efficiency. Most of the companies adopt training for newly recruited workers because company mostly recruits experienced workers. Then also according to the apprentice act, 1961 it is compulsory for the company to recruit apprentices for one year. So AMUL INDUSTRIES follows this rules recruit apprentices. During the training company arranges various programmes as per requirement of the company trainees gets employment as permanent employees.
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MANAGEMENT DEVELOPMENT PROGRAMME

In AMUL INDUSTRIES the management development programmed is based on the 5 principles which include:-

Diagram: 19 SEIRI ORGANIZATION/SORT OUT SEITON ORDERLINESS/ SYSTEMIZE SEISO THE CLEANING/ SHINING SEIKETSU STANDARDIZE SITSUKE SUSTAIN/ DISCIPLINE

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 This 5s is developed by the Japanese Helps to create a better working environment and a consistently high quality process based system. With the help of 5s the advantages occurred at the end of the day includes:1) Neat and clean workplace 2) Smooth working 3) Obstruction free work space 4) Increased safety 5) Improved productivity

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JOB DESCRIPTION
Job description means describe the nature of job. It is a written record of duties, responsibility of the particular job in starting. Job description means to give the information and guidance to the candidate about their particular for which they are selected. When a particular person is selected and included in its unit, the specific job description process is handled and nature of the job, duties and responsibility, job summary, working condition, position and status in organization etc. is given to them. In this company the higher authority assign the work to his subordinates and every employee are assigned and the employee are responsible to his superior and if the work is assigned with job description then the assigned work would be done earlier and efficiently. So they are giving importance to job description.

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PROMOTION AND TRANSFER POLICY

PROMOTION: A promotion may be defined as upward advancement of an employee in an organization job which command better pay wages, better status or prestige and facilities and higher rank. In this company employees are given promotion on the basis of their skills, ability, and experience unlike government, seniority doesnt affect promotion. For the purpose of promotion the management collects the detail of the employee relating to his ability in past performance, gets the promotion from bottom level to middle level in rare they promoted up to exclusive level. TRANSFER POLICY: The process of placing a staff member from one place to another without any change in responsibility or salary is transfer. The transfer can be by the following reasons which include: Elimination of boredom resulting from same work place. To take advantage of any special skill of the staff member transferred. Physical changes in the person concerned In this company transfer policy is based on to take the advantage of any specialized skill of the staff member transferred. Here the transfer policy is clear and transparent in order to avoid a feeling of discontent among the staff. The transfer is based by taking the staff into confidence.
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WAGE AND SALARY ADMINISTRATION

In these days of globalization, both the business and workers will have to understand their respective responsibilities and implement the wages and salary that open up new horizon for the development of enterprise. Wage is the return given to workers for their efforts. An ideal wage and salary system is concerned with acquiring efficient and capable workers, retaining them in the organization and providing the opportunities for their growth. AMUL INDUSTRIES follow the below mentioned structure for wage and salary administration which includes:WAGE AND SALARY STRUCTURE Diagram: 20

HELPERS

FRESHERS OPERATORS

SEMI SKILLED PERSONS

SKILLED WORKERS

H1 H2

F1 F2

S1 S2

S1 S2

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FOR HELPERS:H1:- directly came to the company without any experience. H2:-came to the company having 2 or 3 months experience with it. FOR FREASHORS OPERATORS:F1:-directly came to the industry without any experience. F2:- came to the company having 2 or 3 months experience with it. FOR SEMI SKILLED PERSONS:SM1:- came to the company having more than 1 year experience from other companies. SM2:- came to the company having more than 2 years experience from other companies. FOR SKILLED PERSONS:S1:- came to the company having more than 3 years experience from other companies. S2:- came to the company having more than 5 years experience from other companies.

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ESI (EMPLOYEE STATE INSURANCE) SCHEME As per the government rules if the company is inside and around the city of
15 kms, then ESI( employee state insurance) scheme is applied.

If the company is outside the city of 15 kms. Then WC (workmen

compensation) act is applied.

If the salary of an individual is below 15000 then ESI will be cut and will be
counted on gross salary.

The ESI which is applied on salary is divided into two parts:1.75% to employee contribution. 4.75% to contribution in employer on gross salary.

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PROVIDENT FUND SCHEME According to companys rule the PF is counted on 60% or 40% as basic
from the total salary. As per minimum wages 4600 rs. Basic salary+ D.L. allowances=actual basic salary. In these scheme 12% contribution in PF of employees There is also 12% contribution in PF of employers. The 12% of contribution in PF of employers is divided into 2 groups:-

8.33% pension scheme

3.67% contribution in PF

So the total PF contribution comes to 15.67%. The contribution of PF also includes:1.10% EDLI changes 0.50% administration charges 0.01% EDLI administration charges.

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GRIEVANCE HANDLING PROCEDURE

Grievance is a written complaints filed by an employee claiming unfair treatment. It is a real or an imagine filling at personal injustice which an employees has concerning employment relationships. Thus when only one employee has done problems and his complaint then it is called grievance. The following are the steps included in grievance handling procedure:STEP: 1 firstly the employee explains his grievance to his supervisor; the supervisor tries to settle the problems. STEP: 2 if the supervisor cannot solve the problems, personal manager is consulted he investigates the matter and tries to solve it. STEP: 3 if the problem is not solved then the personnel manager approaches the managing directors and he tries to draw some conclusions of the matter. STEP: 4 finally the grievance is placed before the board of director and board of director solve the issue in satisfactorily to both employee and to management.

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FINANCE DEPARTMENT

Picture: 31

91

INTRODUCTION
Financial management is that managerial activity which is concerned with the planning and controlling of the planning and controlling of the firms financial resources. As a separate activity or discipline, it is of recent origin. The subject to financial management is of immense interest to both academicians and practicing managers. Finance management means in simple work getting the finance means first planning g of finance then find resources of finance then utilization of the same fund. It is considered with the problems of raising financing to establish, expand and modernize business unit, the problems of providing fixed and working capital, the problem of distribution of income etc.It is mainly concerned with such matter as, how a business corporation raises its finance and how it make use of it. Financial management is concerned with the managerial decisions that results in the acquisition and financing of long term and short term credits for the firm as such it deals with the situation that require selection of specific assets, the selection of specific liability as well as the problem of size and growth of an enterprise.

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ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT

MANAGING DIRECTOR

FINANCIAL MANAGER

ACCOUNTING MANAGER

ACCOUNT SENIOR CLERKS

ACCOUNT JUNIOR CLERKS

Diagram: 21

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FINANCIAL PLANNING
Financial planning is based on the going concern keeping in mind working capital. Financial planning is based on the product sold to customers. It should estimate the resources required to carry out operations and determine how far these resources can be generated internally by the firm itself and how far they will have to be obtained externally. Financial planning is primarily a statement estimating the amount of capital and determining its composition. It includes: Determination of the quantum of finance, i.e. the amount needed for implementing business plans. The determination of the form and proportionate amounts of securities. Laying down the policies as to the administration of the financial plans. Financial plan are of 2 types which includes the following points:-

FINANCIAL PLANNING

CAPITAL PLANNING
Diagram: 22
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WORKING CAPITAL

1) CAPITAL PLANNING:Capital planning is based on year to year increasing in turn over to that extent what machinery to be purchased that is capital planning. 2) WORKING CAPITAL:Working capital is that which is held to meet day to day requirements of business, which changes from day to day, and which is converted into cash continuously. The risk factor is low in it. Working capital is also known as current capital, circulating capital and floating capital. So it is also known as a variable cost.

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CAPITALIZATION
The word capitalization can be considered as the sum total of all kind of long term securities at their par values. Thus it can be interpreted as the sum of the ownership capital, bonds and long term debts, and the surpluses. It consists of:-

OWNERSHIP CAPITAL

BORROWED CAPITAL

SURPLUSES

Diagram: 23

OWNERSHIP CAPITAL: consist of value of shares of different classes. BORROWED CAPITAL: consist of bonds and debentures. SURPLUSES: consist of accumulated profits, whether of revenue capital or
capital nature. So the sum total of shares, debentures, bonds and surplus is known as capitalization.
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Capitalization consists of 2 types of components in it which includes:

UNDER CAPITALIZATION

OVER CAPITALIZATION

Diagram: 24 UNDER CAPITALIZATION:A company is said to be undercapitalized when the rare of profits is exceptionally high in relation to the return enjoyed by similarly situated companies in the same industry or it has too little capital to conduct business. OVER CAPITALIZATION:A company is said to over capitalize if its earnings are less in relations to its capital investment. When its earning are not large enough to yield a fair return on the amount of its issued securities and long term borrowings. This company is said to be undercapitalized because of purchase of assets at low prices, due to sudden unanticipated increase in earnings.
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CAPITAL STRUCTURE:Capital structure refers to the composition of sources of funds the company has used to raise the finance the finance needed by it for its business. Generally, the management of the company plans an ideal capital structure in advance and raise funds accordingly as and when need for fund arises. In some companies, on the other hand capital structure is not planned in advance, but they raise funds from different sources according to the circumstances. In this company Capital structure includes directors and share holder funds, reserves and surplus. Capital structure consists of 2 components which include:-

FINANCIAL LEVERAGE

CAPITAL STRUCTURE
CAPITAL GEARING

Diagram: 25

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1) FINANCE LEVERAGE:Financial leverage means direct and indirect cost subject to turn over. It results from the presence of fixed financial charges in the firms income statement. Financial leverage is concerned with the effects of changes in EBIT on the earnings available to equity shareholders.

2) CAPITAL GEARING:Capital gearing mainly depends on the increase in turnover of the company. The turnover of AMUL INDUSTRIES is as follows:-

YEAR
31.3.08 31.3.09 31.3.10 31.3.11 Table: 4

TURN OVER
202129616 220180045 287958150 311730501

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MANAGEMENT OF FIXED ASSETS:1) CAPITAL BUDGETING:Capital budgeting may be defined as decision making process by which an organization evaluates the major investment proposals keeping due considerations. For a concern capital budgeting mainly depends on turn over and expansion of the company. The elements included in capital budgeting are: Amount needed for investment Amount available for investment Amount that can be acquired from different sources The cost of raising funds Future cash flows

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2) MANAGEMENT OF WORKING CAPITAL

The term working capital refers to that part of capital which is not tied up in fixed assets but is used to but is used to meet the day to day requirements of business. It is invested in current assets like cash, stock, bills receivable, debtors etc. this type of capital is used to make payments for purchase of raw materials, wages and to meet other expenses till goods are sold and money is collected against it. Capital used for this purpose is called working capital. Working capital is that which is held to meet day to day requirements of business, which changes from day to day, and which is converted in cash continuously. Working capital is also known as current capital, circulating capital and floatation capital.

CURRENT ASSETS
WORKING CAPITAL

CURRENT LIABILITIES

Diagram: 26
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Working capital of last four years is as follows:YEARS 31.3.2008 31.3.2009 31.3.2010 31.3.2011 Table: 5 INTERPRETATION:From the above table we can observe that there is an increase in working capital of the company, so it is good for the company because it helps to meet day to day requirements and which can be converted easily. WORKING CAPAITAL 20259966 502705419 536873273 617489780

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A) MANAGEMENT OF INVENTORIES:It solely depends on turn over. If the company inventories includes controlling of raw materials purchase subject to turn over of the company. Mainly inventories should be controlled to the extent of minimum 15 day stop. Management of inventory is shown as trend analysis for the past three years is as follows:-

years
31.3.08 31.3.09 31.3.10 31.3.11 Table: 6

Management of inventory
202129616 220180045 287958150 311730501

INTERPRETATION:From the above table we can observe that the management of inventory has been increased year by year. So the turnover has increased from year 2008 to 2011.

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B) MANAGEMENT OF RECEIVABLES:It means collection from the customers or debtors. When a firm sells goods for cash, payments are received immediately and therefore no receivables are created. However, when a firm sells goods or services on credit, payment are received only at a future date and receivables are created. It is an essential marketing tool in modern business trade. Credit sales create receivables which the firm is expected to collect in near future. Management of receivables is shown as trend analysis for the past 4 years which includes:Years MANAGEMENTOF RECEIVABLES 31.3.08 31.3.09 31.3.10 31.3.11 Table: 7 INTERPRETATION:From the above table we can observe that in the year 31.3.2011 the management of receivables is maximum, due to this there is a decrease in bad debts and this is beneficial for the company.
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434563637 334296835 428788839 503310282

C) MANAGEMENT OF CASH BUDGET:Cash is a medium of exchange which allows management to carry on the various activity of the business on day to day basis. It includes coins, currency, cheques held by the firm and the balance in its bank account. Cash budget is mainly controlled on the inflow of the cash as compared to outflow of the cash. Management of cash including cash budget consists a past trend analysis pf past three years:Years 31.3.08 31.3.09 31.3.10 31.3.11 Table: 8 MANAGEMENT OF CASH 6713671 5352047 12911778 15368344

INTERPRETATION:From the table we can observe that management of cash has been increasing year by year. But there has been a decrease in value of 31.3.2009 as compared to 31.3.2010, but later on it has increased so much that it has double up the value.

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OPERATING LEVERAGE ANALYSIS

Operating leverage includes direct expenses related to the product of the company. Such as raw materials, job work, tools, packing, factory, employee cost. It can be considered as the firms ability to use fixed operating cost to magnify the effects of changes in sales on its earning before interest and tax. Earnings before interest and tax is also known as operating cost. Operating leverage in a firm is a function of three factors: The amount of fixed costs. The contribution margin. The volume of sales Diagram: 27

CONTRIBUTION MARGIN

AMOUNT OF FIXED COST

VOLUME OF SALES

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Operating leverage analysis of amul industries of last three years is as follows:OPERATING LEVERAGE: contribution EBIT (Earnings before Interest and Tax) YEARS OPERATING LEVERAGE ANALYSIS 11.77 7.78 0.39

31.3.2009 31.3.2010 31.3.2011

Table: 9 INTERPRETATION:From the above table we can observe that there is a decrease in operating leverage analysis. Here the companys operating cost is gradually decreasing year by year. So it is beneficial for the company because as cost decreases the profit margin will increase.

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FINANCIAL LEVERAGE ANALYSIS

Financial leverage results from the presence of fixed financial charges in the firms income statement. It is concerned with the effects of changes in EBIT on the earnings available to equity shareholders. The ability of a firm to use fixed financial charges to magnify the effects of changes in EBIT on the earnings per share. FINANCIAL LEVERAGE: - EBIT (Earnings before Interest & Tax) EBT (Earnings before Tax) The financial leverage analysis of Amul industries of last three is as follows: Table: 10 YEARS FINANCIAL LEVERAGE ANALYSIS 31.3.2009 31.3.2010 31.3.2011 0.30 0.72 3.14

INTERPRETATION:From the above table we can observe that there is an increase in financial leverage which suggests that there is an increase in fixed financial charges. So the company can estimate its fixed charges & it will desirable to company also.

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COMBINED LEVERAGE ANALYSIS The combination of operating leverage & financial leverage is considered as combined leverage. The combined leverage measures the total risk of the firm. OPERATING RISK+FINANCIAL RISK=TOTAL RISK/COMPOSITE RISK. COMBINED LEVERAGE: - Contribution EBT (Earnings before tax) The combined leverage of Amul industries of three years is as follows:YEARS 31.3.2009 31.3.2010 31.3.2011 COMBINED LEVERAGE ANALYSIS 3.57 5.58 12.16

Table: 11
INTERPRETATION:-

From the above table we can observe that there is an increase in combined leverage analysis. This situation is considered to be an ideal situation because there is a combination of low operating leverage & high financial leverage, so ultimately combination of both is beneficial to company.

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RATIO ANALYSIS 1) EXPENSE RATIO:For the purpose of ascertaining relationships between operating expenses and net sales, expense ratios are computed. For example proportion of selling expense or administrative expenses or financial expenses in relation to net sales is an expense ratio. EXPENSE RATIO: - Expense 100 Sales ratio

The following is the expense ratio of Amul Industries of three years:YEARS 31.3.2009 31.3.2010 31.3.2011 Table: 12 INTERPRETATION:From the above table we can observe that the expense ratio has been decreased year by year and has came up to 92% in 31.3.2011 from 95% in 31.3.2009.so the decreasing trend in this ratio is beneficial for the company. EXPENSE RATIO 95% 94% 92%

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2) NET PROFIT RATIO:The ratio is valuable for the purpose of ascertaining the overall profitability of business and shows the efficiency or otherwise of operating the business. It is the reserve of operating ratio. This ratio is computed on the basis of net profit earned from operation of business and non operating expenses and incomes are excluded. NET PROFIT RATIO: - Net Profit 100 Total Sales The following is the Net Profit Ratio of Amul Industries of three years:YEAR 31.3.2009 31.3.2010 31.3.2011 Table: 13 INTERPRETATION:From the above table we can observe that the Net Profit Ratio has been decreasing year by year, this is because the administrative expenses are slowly increase, so some to extent on a shorter time period it might be not desirable for company. NET PROFIT RATIO 13% 12% 10%

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3) RETURN ON SHAREHOLDERS FUND:In order to judge the efficiency with which the proprietors funds are employed in business, this ratio is ascertained. Proprietors equity or proprietors funds include share capital and reserves. This ratio shows what amount of dividend is likely to be received on shares. When return on shareholders funds is to be calculated, the profit should be after interest and tax (PAT). RETURN ON SHAREHOLDERS FUND: - Net Profit 100 Shareholder fund

The following is the Return on Shareholders Fund Ratio of Amul Industries of three years:YEAR RETURN ON SHAREHOLDERS FUND RATIO 31.3.2009 31.3.2010 31.3.2011 Table: 14 INTERPRETATION:From the above table we can observe that the Return on Shareholders Fund has been increasing year by year. So it is good for the company as the funds increases the shareholders towards the company also increases.
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73% 75% 78%

4) CURRENT RATIO:The most widely used ratio shows the proportion of current asset to current liabilities. It is also known as working capital Ratio. The ratio is obtained by dividing current assets by current liabilities. It is a measure of short term financial strength of the business and shows whether the business will be able to meet its current liabilities, as and when they mature. CURRENT RATIO: - Current Assets Current Liabilities

The following is the Current Ratio of Amul Industries of three years:YEAR 31.3.2009 31.3.2010 31.3.2011 Table: 15 INTERPRETATION: The best current ratio is 2:1.from the above table we can observe that in year 31.3.2009 the ratio is more than best ratio, so it is not desirable for the company, but in 31.3.2010 it is almost 2:1, so it is benefited to company. CURRENT RATIO 2.29:1 1.95:1 2.02:1

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5) LIQUID RATIO:A variant of current ratio is the liquid ratio or quick ratio which is designed to show the amount of cash available to meet immediate payments. It is obtained by dividing the liquid assets by liquid liabilities. Liquid assets are obtained by deducting stock in trade from current assets is not treated as a liquid assets, and from current liabilities, Bank OD is deducted from it. LIQUID RATIO: - Liquid Asset Liquid Liabilities

The following is the Liquid Ratio of Amul Industries of three years:YEAR 31.3.2009 31.3.2010 31.3.2011 Table: 16 INTERPRETATION:From the above table we can observe that the best ratio is 1.72:1 which is in the year 31.3.2009 but current assets are less than from the year 2011, so the best ratio is the one which have current assets more than current liabilities. So the year 2011 is having the desirable ratio with more current assets in it. LIQUID RATIO 1.72:1 1.42:1 1.51:1

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6) LONG TERM DEBT EQUITY RATIO:This ratio is only another form of proprietary ratio and establishes relationship between the outside long term liabilities and owners funds. It shows the proportion of long term external equities and internal equities. LONG TERM DEBT EQUITY RATIO: - Long term liabilities Shareholders fund The following is the Long Term Debt Equity Ratio of Amul Industries of three years:YEAR LONG TERM DEBT EQUITY RATIO 31.3.2009 31.3.2010 31.3.2011 Table: 17 INTERPRETATION:From the above table we can observe that there is a decrease in long term debt percentage in year 2011 from year 2010 but it is good for the company because a higher ratio means that outside creditors have a larger claim than the owner of the business. The pressure & interference from creditors would increases 2.19% 2.43% 2.32%

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7) TOTAL DEBT EQUITY RATIO:In this type of debt equity ratio all types of debt is taken into consideration. This type of debts ratio is only in place of long term debts only. The argument in favour of this view is that like long term debts, short term debts are also received from outside creditors and they add to the financial risk. TOTAL DEBT EQUITY RATIO: - Total Liability Shareholders funds

The following is the Total Debt Equity Ratio of Amul Industries of three years:year 31.3.2009 31.3.2010 31.3.2011 Table: 18 INTERPRETATION:From the above table we can observe that there is a decrease in debtors turn over in year 2011 from year 2010.this situation is beneficial for the company because the lower the ratio is beneficial from viewpoint of creditors while higher ratio increases the risk of creditors. TOTAL DEBT EQUITY RATIO:5.78 6.28 2.73

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8) DEBTORS RATIO:This ratio shows the number of days taken to collect the dues of credit sales. It shows the efficiency or otherwise of the collection policy of the enterprise. The ratio is computed by dividing the amount of debtors and bills receivables by the average daily sales. The average daily sale is obtained by dividing the total annual sales by 365. The following is the Debtors Ratio of Amul Industries of three years:YEAR 31.3.2009 31.3.2010 31.3.2011 Table: 19 INTERPRETATION:From the above table we can observe that there is a decease trend seen for debtors ratio which is beneficial for the company, as there will be decrease in bad debts. But on a serious note the limit is for 60 days, so the days are more than that which is not beneficial for company. DEBTORS RATIO 98 Days 102 Days 85 Days

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9) DEBTORS TURN OVER RATIO:The debtors turnover suggests the number of times the amount of credit sale is collected during which the dues for credit sales are collected. Suppose the debtors ratio is 60 days, it means that the debtors pay their dues for credit sales after 60 days of making the sales. DEBTORS TURNOVER RATIO: - Credit sales Average debtors

The following is the Debtors Turnover Ratio of Amul Industries of three years:YEARS 31.3.09 31.3.2010 31.3.2011 Table: 20 INTERPRETATION:From the above information there is an increase in debtors turn over from 3.51 to 4.21, so there is an increase in the number of times the amount of credit sale is collected during the year, so sometimes it may happen that the bad debts increases during the year and this will not be desirable to the company. DEBTORS TURN OVER 3.67 3.53 4.21

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10) TOTAL ASSETS TURNOVER:The amount invested in business are invested in all assets jointly and sales are effected through them to earn profits, so in order to find out the relation between total assets to sales, total assets turnover is calculated. The higher this ratio, it shows with less amount of investment in total assets, the business has a capacity to sell more and as such the profitability is more. The following is the Total Asset Turnover Ratio of Amul Industries of three years:YEARS TOTAL ASSET TURN OVER RATIO 31.3.2009 31.3.2010 31.3.2011 Table: 21 INTERPRETATION:From the above table we can observe that there is an increase in total asset turnover ratio that is from 2.4% to 3.43% that means that with less amount of investment in total assets there is an increase in profit it is & it is beneficial for the company. 2.38% 3.46% 4.02%

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P & L A/C OF AMUL INDUSTRIES OF LAST FOUR YEARS

Table: 22

particular
(I) Income:

31-3-2008

31-3-2009

31-3-2010 31-3-2011

Gross sales Less: Excise Duty Net Sales Other Income Stock Variance TOTAL INCOME (II) Expenditure:

1600021653 167626024 1432395629 5353994 22276129 1460025748

1385489405 1656523635 235317699 160131082 142717907 204265989 1225358323 1513805728 2121051710 12226515 6004490 4426318 54730717 59305795 10710998 1292315556 1579116013 2136189026

Material Consumed & Direct Expense Personnel Expenses Administration & Selling Expenses Managerial Remuneration To Directors TOTAL EXPENSE Profit before Int., Dep., Misc.Exp., W/off Less: Int. Dep

1084204861 112170570 69302537 12440010 1278117978

985460135 1216898021 1651028863 109472254 136889161 201474130 66557469 71984207 2640060 2700060 103356458 2700060

1164129918 1428471450 1958559511

181907770 38299148 35727014 74026162 107881608

128185638 150644563 63254583 69168127 46506969 56438374 109761552 125606501 18424086 25038063

177629515 64689925 67644861 132334786 45294730

PROFIT BEFORE TAX Less: Provision For Taxation Current Tax

35000000
120

5500000 10600000

16500000

Wealth Tax Deferred Tax Fringe Benefit Tax Short Taxation Provision of Earlier

5000 3542783 715000 609480 39872263

10000 65000 1250308 129935901 715000 486234 138167 6989074 7809577 11435012 17228486 153583054 165018068 165018066 182246554 165018066 182246554

52000 909593 268449 17730042 27564688 182246554 209811241 209811241

Net Profit After Tax Balance B/F

68009346 92237498 160246844 1750000 4200000 713790 153583054

Appropriation Transfer of G.R Proposal Dividend Tax on Dividend Balance C/F

Table: 23

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BALANCE SHEET OF AMUL INDUSTRIES OF LAST FOUR YEARS

Table: 24
PARTICULAR 1)SOURCES OF FUNDS:A)SHAREHOLDERS FUND:

31-3-2009 In cr.

31-3-2010 In cr.

31-3-2011 In cr.

1) Share capital 2) Share application money , pending allotment 3) Employee stock option outstanding 4) Reserve and surplus Total
B)LOAN FUNDS:

304.74 0.24

305.97 1.34

306.87 0.01

6165.92 6470.90 100.00 65.70 165.70 7122.44 7022.79 7330.10

32.11 7730.45 8069.44

1) Secured loans 2) Unsecured loans 3) Deferred tax liability , net Total. 2)APPLICATION OF FUNDS:D)FIXED ASSETS:

65.03 530.88 7926.01

49.36 643.60 8762.40

Gross block Less:-depreciation

6224.13 2784.09 3440.04

8778.82 3151.07 5627.75 803.65

122

9702.29 3515.83 6186.46 531.99

Capital work in progress

2564.82

Advances against capital expenditure E)INVESTMENT: F)CURRENT ASSETS,LOANS & ADV:1)inventories 2)sundry debtors 3)cash & bank balance 4)other current assets 5) loan & advance

6004.86 149.67 6154.47 727.01

6431.40 127.05 6558.45 625.95

6718.45 45.29 6763.74 864.31

683.24 152.20 880.68 10.17 253.05 1979.34

901.86 128.18 1748.17 16.57 340.55 3135.33

924.97 240.85 2071.23 23.66 567.61 3828.32

LESS:-current liabilities

& provision 1)current liabilities 2)provision 1067.05 674.04 1741.09 238.25 1297.61 1096.57 2394.18 741.15 1588.13 1106.11 2694.24 1134.08

NET CURRENT ASSETS Quarry/mines development expenses TOTAL

2.71 7122.44

0.46 7926.01

0.27 8762.40

Table: 25

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CONCLUSION In my conclusion, I would like to say AMUL INDUSTRIES PVT. LTD is having a very good reputation in the market and company has an efficient and effective organization. The overall performance of AMUL INDUSTRIES is very good it has been growing year. The demand of the products produce by the company is not well only in Gujarat, but it is spread all over India and also on international market. The company has good scientific and managerial staff. So, company is getting success step by step. The company has a very sound financial position. It is earning profit every year. So I can say that it will be in a strong position in future. AMUL INDUSTRIES is better in present and will have a delight and bright future for the coming year.

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APPENDIX PICTURE NO.

Picture: 1 Picture: 2 Picture: 3 Picture: 4 Picture: 5 Picture: 6 Picture: 7 Picture: 8 Picture: 9 Picture: 10 Picture: 11 Picture: 12 Picture: 13 Picture: 14 Picture: 15 Picture: 16 Picture: 17 Picture: 18 Picture: 19 Picture: 20

PICTURE NAME
General department Companys logo Pictures of connecting rod Pictures of connecting rod Pictures of crankshafts Pictures of crankshafts Pictures of cam shafts Pictures of cylinder blocks Pictures of cylinder heads Awards & achievements Awards & achievements Production department Location of Amul industries Location of Amul industries Map of Amul industries Quality assurance certificate Marketing department Picture of connecting rod Picture of crankshaft Picture of camshaft
125

PAGE NO.
3 7 13 14 15 16 17 18 19 24 25 26 27 28 29 40 44 47 48 49

Picture: 21 Picture: 22 Picture: 23 Picture: 24 Picture: 25 Picture: 26 Picture: 27 Picture: 28 Picture: 29 Picture: 30 Picture: 31

Picture of cylinder block Picture of cylinder head Customers Customers Customers International market Human resource department Recruitment Selection Training Finance department

50 51 69 70 71 72 73 76 79 80 81

TABLE NO. Table: 1 Table: 2 Table: 3 Table: 4 Table:5 Table: 6 Table: 7 Table: 8 Table: 9 Table: 10 Table: 11 Table: 12 Table: 13 Table: 14 Table: 15 Table: 16 Table: 17 Table: 18 Table: 19 Table: 20 Table: 21 Table: 22

TABLE NAME

PAGE NO. 5 21 64 99 102 103 104 105 107 108 109 110 111 112 113 114 115 116 117 118 119 120

Company profile Time keeping system Market segmentation Capital gearing Working capital Management of inventories Management of receivables Management of cash budget Operating leverage analysis Financial leverage analysis Combined leverage analysis Expense ratio Net profit ratio Return on shareholders fund Current ratio Liquidity ratio Long term debt equity ratio Total debt equity ratio Debtors ratio Debtors turnover Total assets turn over Profit & loss a/c
126

Table: 23 Table: 24 Table : 25

Profit & loss a/c Balance sheet Balance sheet

121 122 123

DIAGRAM NO. Diagram: 1 Diagram: 2 Diagram: 3 Diagram: 4 Diagram: 5 Diagram: 6 Diagram: 7 Diagram: 8 Diagram: 9 Diagram: 10 Diagram: 11 Diagram: 12 Diagram: 13 Diagram: 14 Diagram: 15 Diagram: 16 Diagram: 17 Diagram: 18 Diagram: 19 Diagram: 20

DIAGRAM NAME Companys objectives Managing body Size of unit Form of organization Organization chart of Amul Industries pvt ltd. Product assembly Manufacturing process Procurement Quality control Organization chart of marketing department New product development process Production & development Market segmentation Channel of distribution Direct marketing Organization structure of human resource management Recruitment process Selection process Management development programme Wage & salary administration
127

PAGE NO.

6 8 9 10 12 13 20 30 38 46 60 61 63 66 67 75 77 79 82 86

Diagram: 21 Diagram: 22 Diagram: 23 Diagram: 24 Diagram: 25 Diagram :26 Diagram :27

Organization structure of financial department Financial planning Capitalization Under & over capitalization Capital structure Working capital Operating leverage

93 94 96 97 98 101 106

BIBLIOGRAPHY
In preparation of this report, I have just referred following books which are useful in collecting the data about project work. - Agarwal Nitin. Production management.New Delhi Tata, McGraw-Hill Publishing Co. Ltd. - Kotler Philip. Marketing Management. India, Dorling Kindersley pvt. Ltd. - Aswathappa K. Human Resource Management. New Delhi, Tata McGraw-Hill Publishing Co. Ltd. - Pandey I M. Financial Management. New Delhi, Vikas Publishing House Pvt. Ltd. WEBSITE:- www.amulind.com

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