[SKYLEAD

GROUP OF COMPANIES]

SKYLEAD GROUP OF COMPANIES

BHAVNAGAR-RAJKOT HIGHWAY,

NAVAGAM,

BHAVNAGAR-364060

PREPARED BY GUIDED BY

SURAJIT.A.GOSWAMI Ms. NEHA UPADHAY

ROLL NO. 199 (LECTURER)

SWAMI SAHAJANAND COLLEGE OF COMMERCE &

MANAGEMENT

BHAVNAGAR UNIVERSITY

BHAVNAGAR

BATCH 2008-2011
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PROJECT REPORT

ON

INDUSTRIAL TRAINING

AT

SKYLEAD GROUP OF COMPANY

PREPARED BY GUIDED BY

SURAJIT.A.GOSWAMI Ms. NEHA UPADHAY

(LECTURER)

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE

REQUIREMENTS FOR S.Y.B.B.A. OF

BHAVNAGAR UNIVERSITY, BHAVNAGAR, GUJARAT, INDIA.

BATCH

2008-2011
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CANDIDATE STATEMENT

I the undersigned agree that the contents presented in the report is my own work and have
not been copied from any past report.

DATE: -

PLACE: - BHAVNAGAR

SIGNATURE

(Surajit.A.Goswami)
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PREFACE

There is difference between practical implication and theoretical studies. To

become successful manager only theoretical studies is not enough but with that
application of those theories in the work line is also important and as we know, the
management is concerned with the high importance of theories in business. So for
being a student, it is very easy to understand various aspect of management. Thus
this training is an important for B.B.A. student.

This industrial training has given us golden opportunity to understand

management function like marketing, finance and HRM. The training is a ground for
experiencing the real asset of management.

This project is the reflection of what we have understood from this training.
This project shows our understanding in training towards valuable management.
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ACKNOWLEDGEMENT

It is fact that behind the success of students there is always a good

teacher to give direction at the right speed. You require a spark and you can travel
all through your destination. While we were preparing a project on skylead group of
companies all the employees of theirs helped me very much.

For this valuable help I would like to thanks Mr. L.C. Roal and a lot of
thanks for giving me a golden opportunity to allow me to make my project in skylead.
I would like to thanks to manager of all departments who have guided us during my
project work. We thanks specially to Savani sir (Trustee), Shilpa mam (incharge
principal), Hardik sir (coordinator), Neha mam (Lecturer & guide), Mahesh sir (Lab
assistant), Matengi mam (Librarian). At last, but not the least I am very thankful to all
other members of skylead group of companies for extending their help to accomplish
my project successfully.

Date: Name: Surajit.A.Goswami

Place: Bhavnagar Signature:

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Number Contents Page

number
1. General information 1.
2. Human Resource Management 10.
3. Marketing 27.

4. Finance 37.
5. Bibliography 47.

INDEX
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INDEX

1. Introduction.

2. History & Development.

3. Basic information.

4. Size of the unit & form of organization.

5. Manufacturing process and product.

6. Organization structure.

7. Time keeping system.

8. Employee services.

9. Contribution of the unit to the industry.

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INTRODUCTION

Since 1985 the skylead group of companies started its journey towards
the path of success slowly gradually their venture got the new standing among the
highly reputed companies. The skylead group of companies consists of skylead
chemicals STD, Skylink chemicals pvt ltd.

Skylead group of companies owes its conception its industries and

dynamic managing director SHRI LOKENDRA SINH .C.ROAL who is supported in
every step by his better half MRS. MAMTADEVI .L.ROAL with her business acumen
together they have made the companies production and placed the group as the
only Indian manufacturer of sulphonated carboxylic acid and their esters with
their strong and effective efforts the company got a consistent success in its
business venture.
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HISTORY AND DEVELOPMENT

Skylead chemicals ltd is one of the progressive companies in

Bhavnagar. The first step into establishing this organization was put in 1981.The
company started at chitra GIDC by name “Quality chemicals pvt ltd”, and Mr.K.K.
patel, Mr.Yashodar Bhatt and Mr.Kantibhai constituted as the director and the
production were started in 1982.They produced bromine compounds because of
some benefits, site was selected near navagam. The construction was started in
1985 named “Skylead chemical pvt ltd.”

Production was started in 1982 they produce Br. compound with the
expanding activities it was not possible to carry out the operation in a small GIDC
plot he therefore shifted business activity to NAVAGAM on Bhavnagar-Rajkot
highway and commenced his business as private limited company named as
skylead chemicals std. the company was initially engaged in manufacturing of range
of bromo compounds.

After continuing the production of bromides for almost 8 years the

company decided to diversify into high value speciality chemicals based on
Isophathalic acid. The product range of company represents monopoly items and
skylead is still alone manufacturer of this product in India.
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BASIC INFORMATION

• SKYLEAD GROUP OF COMPANIES

 Skylead chemicals ltd.

 Skylink chemicals pvt ltd.

 Ambica tecnochem pvt ltd.

• Address: Skylead group of company.

Bhavnagar - Sihor road.

Navagam {kardej},

Po: Vartej,

Pin-364060

Dist: Bhavnagar,

Gujarat, India.

o Phone: 91-278-2540237 / 2540238

o Fax: 91-278-2540699

o E-mail: Skylead@rediffmail.com.

o Website: www.skyleadgroup.com.

o Activity: It is a chemical company, it produces textile chemicals such

as NA-SIPA.

o Bankers: State bank of India.

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o Est. Year: 1981

o Area: Navagam.
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SIZE OF THE UNIT & FORM

OF ORGANIZATION

The size of unit is determined through the capital investment in the

business. The size of unit can be of three type i.e. small scale, medium scale & large
scale.

The company is said to be to be small scale if its investment is under

1crore to 5 crore, in medium scale it is 5 crore to 10 crore and in large scale it is
more than 10 crore.

Skylead group of companies had made an investment of rupees 8 crore

in its capital. Its working capital is of 4.5 crore and it mostly export it products.

The company possesses almost all the quality of medium scale industry
and therefore Skylead group of companies can be called medium scale industry. Its
production is on large scale because this company has the monopoly in production
of specialty chemicals.

 FORM OF ORGANIZATION:

According to companies’ act 1956, company can be classified into

different ways. It can also be selected according to requirement and scope of the
business. They can be classified as under:

(1) Sole proprietorship.

(2) Partnership firm.

(3) Joint stock company.

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MANUFACTURING PROCESS AND PRODUCT

 POLYMER MODIFIER:

Skylead group of companies manufactures 4 main polymer modifier

products which are mention as below:

1) 5-sodiosulpho dim ethyl isophthalate

2) 5-sodiosulphoisophthalic acid (NASIPA)

3) 5-lithiosulphoisophthalic acid (LISIPA)

4) Sodium 3,5 bis (B-hydroxy ethoxy carbony1)

 DRUGS INTERMEDIATES:

1) 5-NIPA

2) DM-5NIPA

3) MM-5NIPA

4) 5-AIPA

5) 5-HIPA

6) 3,5-DNBA
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7) 4-AP

8) DBT

9) 3,5-DABA

10) ATIPA

ORGANIZATION STRUCTURE

MR.L.C.ROAL
[CMD]

MRS.M.L.ROAL
[DIRECTOR]

HOD (all departments)

MANAGER

Dy. MANAGER

OFFICER

CLERK/SUPERVISOR/CHEMIST/OPERATOR/WORKER
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TIME KEEPING SYSTEM

In any organization time is most important and valuable element. Different
company adopts different system for the time schedule of the employees.

Skylead group of companies is more concerned about the time keeping

system. Skylead has its own punching machine. The employees get their
attendance. The punching cards are the details the employees number , serial
number ,dates and time, department name etc. every person in the company has
been given a punch card, these cards of employees are punched in the punching
machine when entered and the data is called from the machine by computer. When
they leave the industry, they have to punch the card in the machine. Thus with the
help of punching system, it is helpful to manage to analyze the regularity of
employees by collecting the timing of arrival and departure.

The working time of company is as follows:

1st shift 7 a.m. to 3 p.m.

2nd shift 3 p.m. to 11 p.m.

3rd shift 11 p.m. to 7 a.m.

General shift 9 a.m. to 5.30 pm.

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EMPLOYEE SERVICES
Employee’s welfare activities are the voluntary effort by the employer to
provide the best employment in their own industries. “Treat employees like partners
and they act like partners.”

There are 2 types of welfare activities:

[1] Statuary [2] Unstatuary.

STATUARY:

It means a firm provides facilities given by government which are

compulsory to give.

UNSTATUARY:

It means a firm provides facilities given by government which are not

compulsory to give.

The skylead group of companies provides statutory facilities to motivate their

employees.

CANTEEEN FACILITY:
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The company provides good food facilities to their employees. Company

has given contract for the canteen. It provides breakfast, tea, lunch, dinner at a very
cheap price.

TRANSPORT FACILITY:

The company has its own staff bus which is visited to pick and leave the
employees from the places that are most convenient to them. A company has its
own cars to take manager and executive.

UNIFORM:

The company provides uniform to all the workers.

RESIDENT FACILITY:

A company provides the flats for their executives and also provides
house rent allowance.
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CONTRIBUTION OF THE UNIT TO THE INDUSTRY

The success of any company cannot be measure by the figure of profit

but also by contribution of company towards industry and society. Every unit always
makes more or less extent contribution to its whole industry. It made contribution in
national market as well as international market. Firm’s plays important role in the
industrial development and in the growth of nation as this firm gets quality DCBMS
and NA-SIPA.

It is Asia’s only company producing specialty chemicals and also

intermediate goods produced and specialty designed manufacture for expert. In
government manuals they give donation as well they contribute in different kinds of
charity funds.

They give industrial training to college students of B.B.A., M.B.A., BE

(production), BE (chemical), B.C.A., PGCBA, PGDCA etc.
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HUMAN RESOURCE MANAGEMENT

1) Introduction.

2) Organization of personnel department.

3) Recruitment, selection & induction.

4) Training & management development.

5) Job description.

6) Promotion and transfer policy.

7) Performance appraisal system.

8) Wage and salary administration.

9) Working of ESI scheme.

10) Grievance handling procedure.

11) Collective bargaining.

12) Trade unions.

13) Personnel records.

14) Study of provident fund scheme.

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INTRODUCTION

According to Decems and Robbins, “HRM is concerned with the people

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

Human resource management is a management function concerned with

hiring, motivating and maintaining people in an organization.

Human resource management is a process which brings people and

organizations together so that the goals of each one are met effectively and
efficiently.

Among the various factors of production which are used in an organization,

human resource is the most important. This is because the efficient use of physical
resources (i.e. land, machinery, materials) ultimately depends on how the human
factor is put to good use on various operations. The most efficient machinery in the
world will not produce at an optimum level unless the people who operate the
machinery know how to make it perform at its best and most importantly, are
motivated to make their equipment produce efficiently.

Human resource helps in transforming the lifeless factors of production into

useful products. Once they get inspired, even ordinary people can deliver
extraordinary results. They are capable of producing an output that is greater than
the sum of inputs. They can also help in achieving organizational results quickly,
effectively and efficiently.
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But for getting the best out of people, they must be managed well. This is
where human resource management plays a critical role in bridging gaps between
employee expectations and organizational needs by adopting appropriate human
resource strategies and practices.

ORGANIZATION OF PERSONNEL

DEPARTMENT

C.E.O.

PERSONNEL
MANAGER

OFFICER/SENIOR ADMINISTRATIVE
EXECUTIVE OFFICER

JUNIOR OFFICER

COMPUTER
OPERATOR

CLERK

PEON
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RECRUITMENT, SELECTION, AND INDUCTION

Recruitment, selection and induction are the operating function of the
personnel department which are procuring, developing, maintaining and utilizing
labour, supervision and managerial force.

• RECRUITMENT:

Recruitment is the process of finding and attracting for employment.

The process begins when new recruits are sought and when their applications are
submitted. Recruitment leads to greater productivity, high morale and better
reputation of concern. So it is the basis of success that it becomes very important to
search the right people for right place. SGC has two types of recruitment,

1. Internal

2. External.

The company is doing of following three channels.

 Advertisement in newspapers

 Direct recruitment on the basis of forced application

 Through agents.

The company follows an external recruitment process which is as

under,

After deciding the quality and quantity of personal they will give
advertisement in newspaper with the post. After receiving the biodata the process
start and the selected persons are called for interview by sending those call letters,
after receiving call letters the employee has to pass through interview. An interview
is face to face observation and performance appraisal method of evaluating where
the interviewer is who is higher in a status in a dominant role.
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• SELECTION:

Selection as implies, involves picking for hire a subset of workers

from the total set of workers who have applied for the job. Selection is done
comparing the recruitment of a job with applicant’s qualifications.

In Skylead, an attempt is made to place the right man on the right job
at the right time while selecting a person.

Receiving Application:

Application form are widely used everywhere and constitute on of the

fundamental media through which information is gathered about the applicants.
Skylead personal department invites applicants from prospective applicant. This
helps the company to select high qualified person from large prospective applicants.

Comparison:

The next step to selection procedure is to compare the application

form with each other so that some of the standards can be selected from large group
of applicants.

Interview:

The company calls the selected applicants for personal interview.

Skylead has two type of interview i.e. Oral and written. Qualified and experienced
persons have to give only oral interview while new and fresh persons have to give
both the oral and written interview.

Appointment letter:

The personnel department of the Skylead send letter to those

applicants who are selected after scrutinizing interview procedure and qualification.
This helps the company to select the best person for the job.
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• INDUCTION:

Induction is a technique by which a new employee is rehabilitant into

his subordings and introduced to the practices, policies and purpose of the
organization when a candidate is selected from the external sources. In other words
it is a welcoming process – the idea is to welcome a newcomer make him feel like a
home. Generate in him a felling that is own however it has significance as a part of
the total organization.
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TRAINING AND MANAGEMENT

DEVELOPMENT
Training:

Training is a process of learning a sequence of programmed behavior. It

is application of knowledge. It gives people awareness of the rule and procedures to
guide their behavior. It attempts to improve their performance on the current job or
prepare them for an intended job. Training is a short term process utilizing a
systematic and organized procedure by which non-managerial personnel learn
technical knowledge and skills for a definite purpose.

Skylead group of companies has a excellent training facilities for both

behavior and technical knowledge. Training needs are identified through various
methods. Employees can approach the head of the department and request for
necessary training which is relevant to job requirement. Company has a separate
training room to co-ordinate with HODs in identifying training needs, organizing and
evaluating the same.

Development:

Development is the activity associated with the managerial personal

such as executives. Development is concern with the theoretical knowledge. The
HRD of SGC gives high attention and development of each and every employee for
the following purpose:

- Increasing efficiency, - Reduce supervision,

- Increase productivity, - Reducing in operational problem,

- Increasing morale of employee, - Effective utilization of resources.

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JOB DESCRIPTION
Job description is an important document which is basically descriptive in
nature and contains a state of job analysis. It provides both organizational and
functional information.

Uses of job description:

 It can be used to orient new employees.

 It helps in developing performance standards.

 It can be used for job evaluation.

 It can be used as a basis for productive group discussion particularly if the

process starts at the executive’s level.

 It helps top executives especially when they join the discussion with the one
other’s responsibility.

In Skylead they have make job description which includes following points:

 Job identification.

 Job summary.

 Job duties and responsibilities.

 Relation to other jobs.

 Supervision.

 Working condition.

 Hazards.
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PROMOTION AND TRANSFER

POLICY

• PROMOTION:

According to Scott and Clothier, “a promotion is the transfer of an

employee to a job which pays more money or one that carries some preferred
status.” Although promotions are made on basis of ability, hard work, co-operation,
merit, honesty, many informal influences are powerful determinants of a professional
policy.

In Skylead there are two types of method for promotion:

[1] Seniority + Merit: In this method the senior as well as employee who are
working efficiently is promoted.

[2] Past performance: In this method the promotion is made on the basis of past
performance.

• TRANSFER POLICY:

A transfer is a horizontal or lateral movement of an employee from

one job, section, department, shift, plant or position to another at the same or
another place where his salary, status and responsibility are the same. It generally
does not involve promotion, demotion or change in job status other than movement
from one job or at another place.

There are two types of transfer policy:

1. Internal transfer: Internal transfer means transfer in the same company in other
department i.e. personnel department to marketing department.

2. External transfer: External transfer means transfer from one company to another
company i.e. Ambica technochem Pvt. Ltd. To Skylink chemical Pvt. Ltd.
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PERFORMANCE APPRAISAL:

Organizational goals can be achieved only when people put in their best
effort. The performance appraisal may be understood as the assessment in a
systematic way. It is a method of evaluating the behavior of the employee in the
work spot normally including both the quantitative and qualitative aspect of job
performance.

According to Flippo, “performance appraisal is the systematic, periodic

and impartial rating of an excellence in matter pertaining to his/her job and his
potential for a better job.” Thus in performance appraisal an employee’s merit like
productivity, leadership, managing activity etc. are judged.

 CHARACTERISTIC:

1.] Performance appraisal is a process consisting of a series of steps.

2.] It is the systematic examination of an employee’s strengths and weakness in

terms of the job.

3.] Performance appraisal is a scientific or objective study. Formal procedures are

used in this study. The same approach is adopted for all job holders so that the
results are comparable.

4.] It is an ongoing or continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5.] The main purpose of performance appraisal is to secure information necessary

for making objective and correct decisions on employees.

 OBJECTIVES:

1) To provide feedback to employees so that they come to know where they stand
and can improve their job performance.
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2) To provide a valid database for personnel decision concerning placements, pay,

promotion, transfer, punishment, etc.

3) To diagnose the strengths and weaknesses of individuals so as to identify further

training needs.

4) To develop positive superior-subordinate relations and thereby reduce

grievances.

5) To test the effectiveness of recruitment, selection, placement and induction

programs.

In skylead group of companies the performance appraisal is done according to the

rating method. In this method any employee is rated according to their capabilities
and them he is granted for promotion.
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WAGE AND SALARY ADMINISTRATION:

Wage and salary administration refers to the establishment and

implementation of sound policies and practices of employee compensation. It
includes areas as job evaluation, surveys of wage and salary, analysis or relevant
organization problems, development and maintenance of wage structure,
establishing rules for administrating wages, wage payment incentives, profit sharing
etc.

Wage represent daily rate of pay and salary refers to the monthly rate of
pay, irrespective of the number of hours put in by an employee. Wages and salaries
are subject to annual increments. They differ from employee to employee and
depend upon the nature of job, seniority and merit.

Generally, the overall plan of wages and salary administration is first

prepared by the personnel manager in consultation and discussion with senior
member of other department. It is then submitted for final approval of the top
executive. Once he has given his approval for wage and salary structure and the
rule for administration, its implementation becomes a joint effort of overall
department.

In skylead the responsibility of wage and salary administration is entrusted

to personnel department or to some job executives.
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WORKING OF ESI SCHEME

The full form of ESI scheme is Employee State Insurance scheme. This
scheme is totally for the benefit of the employing under “workmen compensation act
1948”. Under this scheme, employer and employees have to contribute and the
government is managing the fund.

• CONTRIBUTION OF ESI SCHEME:

That employee whose remuneration is less than Rs. 10000 is

converted in ESI scheme. The benefits are being provided to the employees by this
scheme. A medical benefit for providing an amount to be paid to the doctor who
meets the accident is provided to the employee. In case of employees sickness 75%
salary will be provided. If the ailing period is 28 days or less then it then 3 days
salary is deducted.

When an employee recovers from his injury he is checked by the

doctor. The fitness certificate must be registered while joining the duties again. Thus
this facility is provided by SGC to their employees for safety during the working time.

In case of employee’s death his family member is given

compensation and the pension. After the payment of compensation it must be
recorded to the register.
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EMPLOYEES GREIVANCE HANDLING

PROCEDURE
In skylead industry grievance handling procedure is managed by
personnel department. However tough the problem is the people under it solves their
problem arbitrarily which results in satisfaction of both i.e. organization as well as the
workers. This satisfaction not only brings positive effect in workers but also in
organization. Due to their hard work and better performance the quality and
productivity of product increases which may result into profit of the company. If
problems are too critical to be solved than it is passed to the top level management.

But in general their arises no question of dissatisfaction among the

employer and employees as they live like a family and the problem are solved in
similar fashion in the family.
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COLLECTIVE BARGAINNING
Collective bargaining is probably the most effective method of resolving
industrial disputes. It occurs when representative of labour union meet management
representative to determine employee’s wages and benefit to create or revise work
rules and resolve disputes or violation of the labour contact. Collective bargaining is
an spotless procedure for grievance handling as well as any kind of industrial clash.

Objectives of collective bargaining:

• To provide an opportunity to the workers to voice their problems on issues
related to employment.

• To facilitate reaching a solution that is acceptable to all the parties involved.

• To resolve all conflicts and disputes in a mutually agreeable manner.

• To prevent any conflicts or disputes.

• To develop a conducive atmosphere to foster good industrial relations.

• To promote industrial democracy.

• To provide stabile and peaceful industrial relations in the organization.

• To enhance the productivity of the organization by preventing strikes, lock outs,

etc.

• To ensure that participation of trade unions in industry.

But in the skylead industry as the trade union are not allowed hence
the collective bargaining is not possible.
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TRADE UNIONS
Trade unions are voluntary organization of worker and employees
formed to promote and protect their through collective action. Trade unions are not
confirmed to mere striking and negotiating on behalf of workers. Their role is much
wide for e.g. they make their present felt in recruitment and selection, decide who to
hire and under what conditions and also they make a decision of wage salary
structure and negotiate revision once in three to five years.

Characteristic of trade unions:

1} Association: A trade union is an association or combination of employees. It has

a large number of worker members from one or more occupations.

2} Voluntary: Membership of a trade union is voluntary. Generally there is no legal

or other pressure to join a trade union and a person can join or leave the union on
his free will.

3} Permanent: A trade union is a continuing or permanent rather than a temporary

or a casual combination. It has to be long- term body as otherwise it cannot achieve
its objectives.

4} Community of interest: Members of a trade union have common interests and

problems, which motivates them to unite. A union seeks to regulate relations
between employers and workers.

5} Collective action: Trade unions always act through united actions of members
to protect and promote their economic and other interests.

In Skylead industry, trade unions are not allowed and it can also be said that people
working there not require tare unions. The person working in it lives a family they are
having the sense of belonginess in their mind. If at all any problem arises then it
solved by the manager or officer of personnel department at primary stage.
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PERSONNEL RECORDS
The skylead company has in total 120 labour forces which are
considered as its greatest strength. These workers have the felling of belongingness
in their mind. The output of their work not contains the characteristic of good quantity
but also of good quality.

The company records the details of each and every worker. To maintain
this record a separate document or file is prepared which contains all the personal
details like the date of recruitment, the personal information i.e. name, address,
family background etc. and the date of joining the industry, his promotion or
demotion, transfer or separation from industry etc.

The work performed by the employee during his job is recorded as well as
absenteeism is also maintained in the file. If the employee has taken loan, advances
or invested in the company than that records is maintained in the file. Even the
performance and the employee in the organization are recorded in it.
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STUDY OF PROVIDENT FUND

The company follows the provident fund schemes as per the act of
1995 starting from 26th November. Earlier the provident fund and family pension
scheme were two different things but now it has been clubbed together. During 1996
the rating was 8.33% but then after it was raised to 10% and now it has been raised
by 12%, 8.33% of the employees contribution goes to the family pension scheme
and the rest 3.67% to employee contribution goes to the provident fund.

The minimum desirable service required in the private organization is

of 10 years and the minimum age for provident fund required is 50 years.
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INDEX
1} Introduction.

2} Organization of marketing department.

3} Product planning.

4} Marketing segmentation.

5} Pricing policy.

6} Advertising.

7} Various channels of distribution.

8} Sales promotion.

9} Marketing research.
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INTRODUCTION
As per AMA (American marketing association) “marketing is a process
of planning and executing the conceptions, promotion and distribution of ideas,
goods, and services to create exchange that satisfy individual and organizational
goals.”

1. As per social aspect: Marketing is a social process by which individuals and

groups obtain what they need and want to create offerings and freely exchanging
products and services of values with others.

2. As per managerial aspect: Marketing is the art of selling products.

Marketing is the thinking process which starts before production

commences and ends only after sales, services and satisfaction. It is the set of those
activities which are necessary and incidental to being out exchange relationship. It is
the business activities through which human wants are satisfied by the exchange of
goods and services.

Marketing is the process of exchange which includes two different

aspects.

1) Mental 2) Physical

1) Mental:

Mental investment means the seller must know what the buyer want, what
price, when, where, what qualities, what quantities, etc. on the other hand buyer
must know what is for that sale and what price, where, when, where etc.

2) Physical:

Physical investment means the actual movement of goods and services

the actual movement of goods and services from the point of production and point of
consumption.
 [SKYLEAD
GROUP OF COMPANIES]

In skylead industry though there is no special department of marketing in

spite of it and the above said strategy is taken into consideration and therefore it has
such a remounted name in the varied economy market.

The functions of marketing in skylead group of companies are carried out

by the head of group Mr. L.C. ROAL and senior executive Mr. SINGH.
 [SKYLEAD
GROUP OF COMPANIES]

ORGANIZATION OF MARKETING

DEPARTMENT

MARKETING

SEVP

DEPUTY MANAGER

OFFICER

ASSISTANT

This chart shows how marketing is done in Skylead group of companies. Here in this
chart as shown marketing head comes first then under him comes SEVP and under
the SEVP comes the deputy manager and then comes the marketing officer and at
last comes the assistant. This chart shows a downward slope.
 [SKYLEAD
GROUP OF COMPANIES]

PRODUCT PLANNING
There are three types of product planning in skylead group of
companies which are as follows:

1) Product based product planning.

2) Industry based product planning.

3) Contact random planning.

1) Product based product planning:

In this type of product planning the company produces according to

the products demanded in the market. If the demand is high then product of the
company would also be high.

The skylead group of companies follows the industry product, which

are used as raw material for finished goods in other industries.

2) Industry based product planning:

In this type of product planning industry produces as per the

requirements by another industry and according to their orders. The industry
produces their output.

3) Contact random planning:

Skylead group of companies also has contact random planning.

Here the costumers order and according to that order they produce. The company
delivers goods after certain period of time and satisfies the requirements of the
customers.
 [SKYLEAD
GROUP OF COMPANIES]

MARKET SEGMENTATION
Marketing segmentation may be defined as subdivision of the target
market into subgroup of consumer population with identifiable distinct and
homogenous characterizations, with a view to developing and perusing distinct and
differentiated marketing programs for each subgroup in order to enhance consumer
satisfaction and the profit position of the business. It is an act of dividing of the
market into distinct group of buyers who might have required separate and
marketing mix.

Types of market segmentation:

1) Geographic segmentation: It calls for dividing the market into different

geographical units such as nations, state, regions, countries, cities or
neighborhood.

2) Demographic segmentation: Here the market is divided into groups on

the bases of variables such as age, family size, family life cycle, gender, income,
occupation, education, religion, generation, nationality and social class.

3) Psychographic segmentation: Psychographic is the science of using

psychology and demographic to better understand the consumers. Here the
buyers are divided into different groups on the bases of psychological or
personality traits or characteristic.

4) Behavioral segmentation: Here the buyers are divided into groups on

the bases of knowledge, attitude, use or response to a product.

R.S. Javer had defined that “looking of buyer or segment the market
is described its market segment.” In skylead group of companies the segmentation,
the whole market on the geographic area business through market segmentation
each state demand is given personal attention.
 [SKYLEAD
GROUP OF COMPANIES]

PRICING POLICY
Pricing policy is one of the most crucial and decision Wang part of
marketing management. Sales are affected by the price. A slight variation in price
can lead a big difference in sales as well as on profit. So a company has to fix the
price very systematically and giving due consideration to many factors.

Skylead group of companies has adopted the cost oriented price policy.
The price under this method determines by adding a desired percentage of profit on
cost of the product.

Price of product = Fixed cost + Variable cost + Profit.

Skylead group of companies consider the following factors while fixing the
price of any product:

o Cost of raw material.

o Manpower.

o M/s expenses.

o Taxes.

o Government policy.

o Profit margin.
 [SKYLEAD
GROUP OF COMPANIES]

ADVERTISING
Advertising is one of the four major tools for the company as to direct
successive communication to target buyer and public.

Advertising means to attract the customer to purchase their product and

make their product popular in the market. Advertisement effect the behavior of
consumer in great extent. “Advertising is nothing but a paid form of non personnel
presentation of promotion of ideas, goods or services”. It communicates about the
product and services and also about the firm which produce the product.

Modes of advertising:

Now-a-days there are many media available for advertising they are as
follows:

1. Television.

2. Newspaper.

3. Radio.

4. Posters.

5. Hording.

Due to specific characteristic of the product that it is not directly

consumable product, the company has no large budget for advertising as they do
not need to advertise, skylead group of companies are not needed for advertising
but sometimes in some specific chemical maximize or some special import- export
magazine, they do advertise. The other source of advertising is the chemical fairs in
which they participate very actively.
 [SKYLEAD
GROUP OF COMPANIES]

CHANNEL OF DISTRIBUTION
The channel of distribution are the means through which the product move
from the purchased or manufacturer to ultimate consumer is an internal part of
marketing and its function is to distribute spread out as disseminate.

According to prof. Philip kotler, “marketing or trade channels are a set of

independent organization involved in the process of marketing, product or services
available for use or consumption.”

Marketing channel for customer:

 Manufacturer to Customer.

 Manufacturer to Retailer to Customer.

 Manufacturer to Wholesaler to Retailer to Customer.

 Manufacturer to Wholesaler to Jobber to Retailer to Customer.

Business marketing channel:

 Manufacturer to Industrial customer.

 Manufacturer to Industrial distributor to Industrial customer.

 Manufacturer to Manufacturer factor representative of sales branch to Industrial

customer.

 Manufacturer to Manufacturer Repetitive of sales branch industrial distributor to

Industrial customer.

Skylead has a direct contact with their customer in the domestic market
and in international market they appoint territory agents to contact with their
customers.
 [SKYLEAD
GROUP OF COMPANIES]

SALES PROMOTION
Philip kotler defines as, “promotion encompasses all the tools in the
marketing mix whose major role is pervasive communication.”

Sales promotion activity is vital ingredient of the promotion mix. It is a

sales effort undertaken by business to boost sales level of product. It is a selling and
advertising which backup the pre-selling and stimulates the impulse. Sales
promotion of diverse connection of incentive tools mostly short term design to
stimulate quicker, great purchase of particular product or service by customer or
trade.

Promotion activities have specific purpose which is as under:

1) To attract new customers.

2) To know customers about the introduction of new policy.

3) To encourage present customers to buy more.

In SGC the marketing executive Mr. Vala said “in recent year sales
promotion is fastest growing method of promotion for firm for increasing the sales.”
 [SKYLEAD
GROUP OF COMPANIES]

MARKETING RESEARCH
Marketing research is most essential tool for development of any industry.
It is the systematic gathering and analysis of data about problem connected with the
industry. Marketing research is the systematic design, collection analysis and
reporting of data relevant to specific marketing situation facing an organization.

As we know that there are many methods of marketing research. They are as under:

1. Survey method.

2. Field method.

3. Mail survey.

4. Panel research.

5. Observation approach.

SGC has no marketing research because they have monopoly product.

They have producer to consumer distribution channel. They themselves are price
market and their distributors for their product. But incase of any complain regarding
finished goods from the buyers and then the sales executives meet them and solve
problem. If there is any change in the quality then executive try to solve the problem
through quality control department.
 [SKYLEAD
GROUP OF COMPANIES]

FINANCIAL
MARKETING
 [SKYLEAD
GROUP OF COMPANIES]

INDEX
1.] Introduction.

2.] Capital budgeting.

3.] Capital structure.

4.] Working capital, its sources and management.

5.] Management of cash and receivables.

6.] Inventory management techniques.

7.] Ratio analysis.

8.] Leverage.

9.] Capitalization.
 [SKYLEAD
GROUP OF COMPANIES]

INTRODUCTION
Finance is regarded as the life blood of business. Finance is one of the
basic foundations of all kind of economic activities. It has rightly been said that
business need money to make more money. It is also true that money budgets make
more money only when it is properly managed effective and efficient utilization of
finance. It has been also considered as an important function of financial
management as a result of it. The scope of financial management is wider now.

Any company needs financial facility to meet day to day commitment.

Money is very important for each and every organization, without finance no one can
start the business. It is only one accepted factor by which exchange of goods and
services is possible.

FINANCE:

Finance means provision of fund. Finance is working as the heart of

the business. Finance regards as the heart of business. Finance is one of the basic
foundations of all kind of economic activities.

MANAGEMENT:

Management is the art of getting work done through others.

Management is multipurpose organization manage to business; manage to
manager, mange to work and workers.

FINANCIAL MANAGER:

Every organization has a financial manager to manage the finance

in the business. He manages the finance and wherever it is needed.

FINANCIAL MANAGEMENT:

Financial management means procurement of funds and effective

utilization and to achievement of business target and goal. The decision regarding
financial must be properly taken by an organization.
 [SKYLEAD
GROUP OF COMPANIES]

It is said that “business takes money to make money.” The goal of

financial management is to increase the firms overall market value and its long term
wealth.

Henry ford remarked “Money is an arm or leg, you either use it.” The
remark explains the significance of money or cash. Thus, the financial management
is the most important tank for every manager.
 [SKYLEAD
GROUP OF COMPANIES]

CAPITAL BUDGETING
Capital budgeting means planning for capital. It also means marketing
the capital investment decision. It is concerned with long term project. It evaluates
the profitability of project which gives more profit. Capital budgeting helps selection
of best proposal.

Capital try to see whether investment proposal which gives reasonable

return to investors. Capital budgeting also involve ranking of different proposal for
selecting the best project.

Capital budgeting may be used for replacement of assets, expansion of

programmes, diversification, and modernization or for research and development.

Skylead group of companies is budgeting every month because the

turnover of skylead is more.
 [SKYLEAD
GROUP OF COMPANIES]

CAPITAL STRUCTURE
Capital structure refers to the composition of capital, i.e. the mix of sources
from which the long term funds required by business are to be or raised. In broader
sense capital structure included various types of shares issued debenture reserves
loan and retained earnings.

Goals/principle of capital structure management:

Cost principle:

According to this principle, ideal capital structure should minimize cost of

financing and maximize earnings per share.

Risk principle:

According to this principle, ideal capital structure should not accept unduly
high risk.

Objectives of capital structure planning:

• To issue security which are transferable?

• To maximize the profit of the owner of the company.

• In Skylead Company the capital structure is done in the systematic manner as it is

one of the important aspects of finance. The factors affecting, it is taken into
consideration and then the capital structure of the company is made.

Features of an appropriate capital structure:

1) Profitability.

2) Flexibility.

3) Conservation.

4) Solvency.

5) Control.
 [SKYLEAD
GROUP OF COMPANIES]
 [SKYLEAD
GROUP OF COMPANIES]

MANAGEMENT OF WORKING CAPITAL

The working capital management is as the name itself implies capital
required to carry on the routine work. Short term requirement of capital is known as
working capital.

These are two concepts of working capital:

1) Gross working capital.

2) Net working capital.

1) GROSS WORKING CAPITAL:

Gross capital refers to the firm’s investment in total current assets.

2) NET WORKING CAPITAL:

It means the difference between current assets and current

liabilities of the portion of current assets, which is financed with long term funds.

But skylead, it means the current assets which can be converted in

cash in short time. The working capital of skylead is associated with SBI Chitra
branch and the working capital is 5.5 crores and some cash balance is there, which
is maintained by cashier. Every two year projection of credit monitoring assessment
is undertaken at SBI branch from 1988.

The account starts when any purchase process or sale process is over
because after that the entry should be made. It is historical function for any
transaction. First voucher is made in journal or ledger. The company exporting and
importing goods it needs foreign exchange. This need is satisfied by SBI.
 [SKYLEAD
GROUP OF COMPANIES]

MANAGEMENT OF CASH AND RECEIVABLES

Cash is the most liquid form of asset. It is crucial asset in day-to-day
business operation. It is basic required to run the business at the same time it is also
the basic output expected to be realized by selling the product or service of a
business. A firm has to maintain a balance between very high working capital and
very low working capital. The main characteristic of this asset that this can be readily
sold and converted into cash. They are important to meet plan and outflow of funds.

Cash management is concerned with managing of

 Inside and outside of the firm.

 Cash flow within firm.

 Cash balance held by firm at a point of time by financing deficit or investing

surplus.

The company has to maintain optimum cash balance which will neither
be excess or short.

Skylead group of companies maintain the sufficient cash balance to the

daily requirements. They have increased their capacity through proper collection of
cash and proper disbursement.
 [SKYLEAD
GROUP OF COMPANIES]

INVENTORY MANAGEMENT TECHNIQUE

Inventory to as stock of raw material which business firm has to maintain
with them to meet unexpected circumstances. The management has to decide the
quantum of the ideal size of stock that they should maintain. If stock is higher the
capital will be blocked and if it less it may result in a loss. Therefore inventory
management is an important aspect of financial management.

Inventory management assumes important because of that investments in

inventory constitute one of major investment in current asset. The various forms in
which a manufacturing concern may carry inventory are a raw material work in
process, finished goods and stores and supplies.

Skylead group of companies maintains the necessary amount of inventory

which is necessary. In order to earn maximum profit i.e. it maintains optimum stock
of raw material and for these they have their own separate store department.
 [SKYLEAD
GROUP OF COMPANIES]

RATIO ANALYSIS
Simple meaning of ratio means relation in between two matters presenting
in a percentage manner known as a ratio. For the justification of financial position
following various types of ratio can be applied:

1) Gross profit ratio = Gross profit/sales*100.

2) Net profit ratio = Net profit/ sales*100.

3) Operating ratio = C.O.G.S. + operating expense/ sales*100.

4) Expense ratio = Expense/ sales*100.

5) Stock turnover ratio = C.O.G.S./Average stock.

6) Current ratio = Current asset/Current liability.

7) Liquid ratio = Liquid asset/ Liquid liability.

The respective company has not enclosed their financial records so we

are unable to give their ratios.
 [SKYLEAD
GROUP OF COMPANIES]

LEVERAGE
There are various sources of long term capital and a finance manager has
to decide the combination of available resources either there may be equity share
and debenture or equity or preference share or all the three sources that is known as
capital structure decision.

Capital structure decision has great influence on share holders written

entries. If the company is using more borrowed capital then share holders risk and
return both increases. Leverage is used to understand this relationship.

James Horne has defined leverage as “the employment of an asset or

funds for which the firm pays the fixed asset and fixed return.”
 [SKYLEAD
GROUP OF COMPANIES]

CAPITALIZATION
According to Gesternberg, “capitalization comprises ownership capital
and surplus in whatever firm it may appear, and borrowed capital which consists of
bonds or similar evidences of long-term debts.”

The capitalization is divided into three parts. They are as follows:

• Over capitalization.

• Under capitalization.

• Fair capitalization.

• OVER CAPITALIZATION:

When a company has consistently been unable to earn the prevailing

rate of return on its outstanding securities, it is said to be over capitalized. For
example, if a company earns a profit of Rs.50000 and normal rate of earnings in
similar industry is 20%, the capitalization on value earning would be (20*50000/100)
Rs.250000. But if the company has issued shares and debentures of more than
Rs.250000, it would be an index of over capitalization.

• UNDER CAPITALIZATION:

When a corporation earns exceedingly high income on its capital, it is

said to under capitalization.

• FAIR CAPITALIZATION:

It opposite of other two as it is neither over capitalization nor under

capitalization in this the true picture of the company can be seen i.e. in this the
assets are shown at their actual price prevailing in the market.

The company which has fair capitalization can know about their real position in the
market by the company itself with other.
 [SKYLEAD
GROUP OF COMPANIES]

Skylead group of companies follows the fair capitalization. Their

accounts show the real picture of their assets which is very good sign for the
success of any company.

BIBLIOGRAPHY
 Philip kotler, Kevin Lane Keller, Abraham Koshy, Mithilesher Jha, Marketing
Management 12th edition, Person Education 2007.

 C.B. Gupta, Human Resource Management 8th edition, Sultan Chand & sons
2007.

 S.P. Shah, Jayshree Thakore, R.K. Balyan, Human Resource Management &
Industrial Relation 2nd edition, Mahajan Publishing House 2003-04.