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					                                              MASCOT FORGE (P) LTD.




                     Declaration
              I the undersigned Joshi Vishal M. a student of S.Y.B.B.A here by
declare that the project work presented in this report is my own work and has
been carried out under the supervision of Ms. Chitralekha. H. Dhadhal of
Christ College Rajkot.

              This work has not been previously submitted to any other
university for any examination.

                                                       [Signature of student]


Date :                                                    [ Joshi Vishal M.]


Place :- Rajkot




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                                               MASCOT FORGE (P) LTD.




                            Preface
             Bachelor of Business Administration as an area of study requires
a professional outlook on teaching. Also competitive managers cannot be built
through mere class room teaching but it requires business knowledge to be
passed over through practical studies.

             And therefore taking the above matter into consideration
Saurashtra University has taken practical training as a subject area in B.B.A.
The main aim of this type of a training is to make students aware of the day to
day transactions of a business unit.

             The student here study the various policies in different
departments like finance, marketing, personnel and production. Also this
report attempts to highlight various features of the managerial aspects of a
business unit.




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                                                MASCOT FORGE (P) LTD.




          Acknowledgement
             It is my great pleasure at a time of presenting this Industrial
Training Report in front of all the concerned authorities. I would like to thank
all who can appreciate my labour for the matters prescribed.

              I would also like to thank all who helped me lot to collect all
necessary information. I am feeling happy that I have pursued B.B.A. course
because by pursuing this course one become aware of the practical aspect of
life. I am also thankful to Saurashtra University for introducing this subject in
course.

              I also thank my college authorities, our honored director who
have allowed me the training of 10 days of my choice and of course our
Madam Ms. Chitralekha H. Dhadhal, who is not only a teacher but a true
friend, a real guide and philosopher who guided me in preparing various
aspect of the report.

            I also thank Forge & Forge ltd. Who gave me a true an necessary
information while preparing the report.

             I also thank my parents who allowed me to pursue this course.




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                                     MASCOT FORGE (P) LTD.



                               Index
No.                    Particulars               Page No.
 1.    General Information
 2.    Production Department
 3.    Personnel Department
 4.    Marketing Department
 5.    Financial Department
 6.    ISO 9002 Certificate
 7.    SWOT analysis
 8.    Conclusion
 9.    Suggestion
 10.   Bibliography




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                GENERAL INFORMATION

No.                      Particulars               Page No.
 1    Project At Glance
 2    History & Development
 3    Location
 4    Reputation
 5    Form of Organization
 6    Size of the Unit
 7    Contribution To the Industry




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 General Information
Name of Unit        :-   Forge & Forge Ltd.

Established Year    :-   1974

Directors           :-   Valjibhai J. Patel
                         Vinodbhai H. Patel

Managing Director :-     Navinbhai V. Patel

Managerial Persons :-

General Manager :-       Mr. Navinbhai M. Patel
Production Manager:-     Mr. Sultanbhai Sariariya
Personnel Manager :-     Mr. Jitubhai Seth
Marketing Manager :-     Mr. Pravinbhain Patel
Financial Manager :-     Mr. Sudhirbhai Mehta
Chief Accountant :-      Mr. Sudhirbhai Mehta

Registered Office   :-   Forge & Forge Ltd.
                         Ahemdabad High way Road,
                         Rajkot – 360003

Manufactured
        Products :-         Steel Forgings
                            Steel Flanges & Fittings
                            Redler type Forged Links
                            Various types of Crank Shafts
                            Crown Wheel
                            Penion
                            Chain Link
                            Hanger

Banker              :-   HDFC BANK
                         CORPORATION BANK

Office              :-   8:00 A.M. to 9:30 P.M.




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                                   MASCOT FORGE (P) LTD.


Factory hours    :-   Day shift :
                            8:00 A.M. to 4:30 P.M.
                      Evening shift :
                            4:30 P.M. to 1:00 A.M.
                      Night shift :
                            1:00 A.M. to 8:00 A.M.

Phone No         :-   (91-0281)456101

Fax No           :-   (91-0281)456104

Email Id         :-   Forgerajto@yahoo.com
                      Forgeraj_adi@sanchar.net.in

Store Manager    :-   Mr. M.G. Santoki

Reception Manager:-   Mr. Jignesh Mehta




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                   History &
                  Development
              The “Forge & Forge Ltd.” has been established on 11th June
1974, Mr. Valjibhai J. Patel and Mr. Vinodbhai H. Patel of Galaxy group has
started this unit as a large scale unit.

              In 1976 the unit was started as Private Limited Company. In the
beginning the company was producing ancillary machines and Machineries
and forging which is useful in diesel engines. But not company is enjoying all
the benefits of Public Limited Company. It was converted into Public Limited
Company in the year of 1988 because in the year of 1985-86 & 87 the turnover
of this unit was more than 5 crores and according to the Company Act, 1956
any company have & total turnover of their last three previous year is more
than 5 crores then the company will automatically converted into the public
Ltd. Company.

               The main principle of the firm on which the firm is working is
full utilization of all resources customers. Through this principle the company
gets so much just progress. The Planning is also made in the firm for the
expansion and modernization of the firms in the sense of the production and
its techniques.




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                         Location
Country      :     India
State        :     Gujarat
City         :     Rajkot.


             The Forge & Forge Ltd is well connected road rail & air. The
nearest major port is Kandla which is only 200 kms. Far by road. The nearest
international city is Bombay which takes only 45 minutes to reach by air.

            The population of proper city is near about 12 to 15 lacks. The
Forge & Forge Ltd. Is situated far away from the city area.




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                      Reputation
             Forge & Forge Ltd. Has decades of experience in the forging
industry having been established in 1974 Sound management systems and
personal owner supervision have resulted in a well-deserved reputation for
professionalism and high ethical standards in its business dealings.

               The company has over the years satisfied al types of customers
including automotive ancillaries engine manufacturers, military suppliers, rail
ancillaries etc.

              Orders of all magnitudes, shapes and sizes have been met within
specific time frames and strict and stringent standards.




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                                               MASCOT FORGE (P) LTD.




Form of the Organization
              As stated earlier Forge & Forge was established as the form of
private limited company. But according to Companies Act, 1956 the company
which has its total turnover more than 5 crores for three consecutive years,
they must convert into the Public Ltd. Company

                Thus, this unit is deemed to be a Public Unit.




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                Size of the unit
             Industries can be classified according to their size of unit such as
tiny industries small scale industry, medium scale industry and large scale
industry.

              Tiny industries are those who have their capital investment less
than 60 lacs whereas small scale industries are those who have their capital
investment more than 60 lacs and less than 3 lacs. The industries having their
capital investment more than 3 crores & less than 3 crores are medium scale
industries large scale industries are those who have the same more than 5
crores.

                   Forge & Forge Ltd. Is a large scale unit as it having its
capital investment more than 5 crores .




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         Contribution to the
              industry
               From the very first, this company is producing mere quantity
because this company was established as private limited company with big
fund and day by day they are progressing and due to that they converted the
company in to public limited company. This unit is contributing to industry at
state level is nearly 15 to 20% while at national level they are contributing 2%
in industry




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                               MASCOT FORGE (P) LTD.



      PRODUCTION DEPARTMENT


No.    Particulars                        Page No.
1      Introduction
2      Organization structure
3      Production planning & control
4      Quality Policy Certificate
5      Manufacturing process
6      Facilities planning: Location
7      Plant Layout & Material Handling
8      Stores Management
9      Inventory Management
10     Scrape Management




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                    Introduction
              The production function of a business is concerned with the
creation of a production or service required to satisfy customer needs wants
and desires. In any business that supplies a needed product of service it is quite
obvious that a activities of production system must be closely related to the
customer demand as reflected in the continuous flow of orders production will
be considered most effective when it serves the dual purpose.

          It must operate primarily to satisfy customer demands particularly
          relating to quality, quantity, price and above all timing of delivery as
          scheduled in the orders.

          It must permit production activities to operate in and economical
          and efficient manner because cost of production is a vital factor in
          facing the market competition and in ensuring normal profit of
          return on the investment. Higher cost may wipe off normal profit
          and sooner or later enterprise will be priced out of the market.




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Production or
  manufacturing
    management
               Production means creation of utilities and covers all the activities
of resources such as labour, energy, materials equipment machinery etc.
Utilities are goods and services which have want satisfying power.

             When principles of management are applied in the specific area
of business such as production we have production Management such as
production we have production Management involving planning organizing,
directing and controlling the production function or production system a
subsystem of the business enterprise which itself is the subsystem of its
environment. Production is the process of programming co-coordinating and
controlling production i.e. the operators of that part of an enterprise which is
responsible for the actual transformation of materials into finished products.




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 Organizational Structure
             The organization structure in production department of Forge &
Forge Ltd. Is as follows.


                           Managing Director


                            General Manager


                          Production Manager


                  Quality control supervisor/officer



Engineer      Supervisor         Supervisor                 Supervisor
              of Shift-1         of Shift 2                  of Shift 3




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       Scope of Production
          Management
(1)   Product planning and development i.e. evolution of new products and
      designing of those products on the basis of specific demands received
      from marketing of sales department.

(2)   Production administration which deals with three specific parts of
      production activity namely

               Production engineering
               Production planning
               Production Control.

(3)   Execution of plans, policies and decision. i.e. implementation function.
      Here we have actual operation of manufacturing of processing of input
      into outputs.

(4)   Dependent services and departments.
      e.g.:- Standardization, simplification, specialization quality control,
      inventory control research and development.




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      Production Planning &
             Control
Introduction
            The basic objective of creating the manufacturing organization is
to make products. Thus, production is the nucleus or the center of the entire
operations.

             Production planning and control functions look after the
manufacturing activities. Production planning and control comprise the
planning, routing, dispatching and follow-up functions in the manufacturing
process so that the movements of materials, performance of machines and
operations of the labour, however sub derived, are directed and coordinated as
to quantity, quality, time and place. Production planning is a pre-operation
activity whereas control is a post-operation activity.



Definition of production Planning

              According to Alford and Beatty, Production planning is defined
as, “ the teaching of foreseeing or picturing is defined ahead, every step in a
long series of separate operations each step to be taken in the right place of the
right degree and at the right time and each operation to be done at maximum
efficiency.

Objectives
      The basic objectives of production planning are

(1)   on the basis of the sales forecast and its engineering analysis, to estimate
      the kind of resources like men, materials, machines, methods etc in
      proper quantities and qualities. It also estimates when and where these
      resources will be required so that the production of the desired goods is
      made most economically.


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(3)   It also aims to make all necessary arrangement so that the production
      targets as set in the production budget and master schedules are
      reached.



Definition of production control

             “Production control is a facilitating service to manufacturing It
co-ordinates all the production operations by collecting the relevant
information about various types of inputs and by making necessary
adjustments in them.



Objectives
      The main objectives of production control are

(1)   To implement the production plans by issuing necessary orders to the
      persons who are supposed to implement them.

(2)   To ensure that the resources i.e. man, machines, materials, method etc
      have been provided in the required quantity & quality as proper time &
      place.

(3)   To see that the persons are carrying out the operations property that the
      production plans may be executed according to the schedules.


            In Forge & Forge Ltd the Production planning and control is
done by production manager and quality control officer or quality control
supervisor.




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   Manufacturing process
            The manufacturing process of the Forge & Forge Ltd can
explained with the help of the following figure.



Raw material            Cutting            Weighing


Raw material                               Coding
(Input)
                    Feed Back
Packing                                    Heating


Selt Brushing           Inspection         Forging (Hammering)




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               Forge & Forge Ltd. Produces the product according to the order
placed by the customers. Firstly the raw material is bought from the steel
producing company like Vishakhapatnam Iron co. Ltd Jamshedpur Bombay
etc, and it is taken into raw material stock. The steel Billets, EN-6,EN-9, ms-
pomm and CR-S are raw material mainly used in this co.



          Die Shop

              In the die shop engineer draws the design according to the
customer’s requirement and then engineer prepaid a male & female die on
wood and test it with the use of plaster of Paris (pop). If any changes are
required in it. He makes it and makes the steel dies. For this purpose company
is having latest machinery with latest techniques.




          Cutting Shop
              In this shop all the billets are cut in the right weight. To cut the
billets there are two techniques i.e. Machine cutting & Gus cutting. For a
machine cutting, company has manually operated machines whereas for a gus
cutting company has as automatic operated machine.


          Weighing
             In this stage, the material which has been cut in the cutting shop
is being weighted. The weight is kept according to the requirements. For the
weighing process company is having some good quality machines.

               For the cutting shop & weighting shop there is notice board on
which standard weight & ONG NO. are listed for the various products. This
chart is as follows.




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                                               MASCOT FORGE (P) LTD.



          Coding
             After weighting the material the colour coding is starts. In this
company there are many no of different steel which have different types of
intensity. So it is necessary to have a technique of finding out the right
material with the help of colour coding.

            For Colour coding company has listed different colour codes of
each material. Which are as follows:

Colour code chart



          Heating
              The department of heating is working under a forge shop. In this
stage the pieces of the billet are dropped into furnace and given them heat up
to 1100 to 1200 units. For heating company has a latest digital furnace which
runs by electrics.

          Forging
             After the healing stage the forging stage comes. Here the shape is
given to the material by forging them. For this process company is having a
range of forging hammers from one ton to the tons. This hammers are also
known a ‘Filter Hammers’.

              After this stage the semi finished goods cope into exercise which
is taken in the press machine. Here the wastage is separated and it becomes
the finished goods.




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                                                MASCOT FORGE (P) LTD.



          Inspection

       The finished goods made in press machine are taken into this stage
where the finished good is divided into two categories. i.e. accepted goods and
rejected good. For this purpose company is having two types of inspections.

(1) Sample inspection
(2) Final inspection.


          1. Sample inspection

             In this type of inspection, certain percentage of goods is taken for
inspection and the entire lot is judged by the result of these samples.


          2. Final inspection

           Here articles or goods are inspected when they are completely
manufactured, before sending them to the store.

              Slat bushing
              After the product is being accepted as a final product, the process
of giving shining to it is starts. This is done only in alloy steel.


              Packing
              After the ‘slat brushing’, the product is ready for dispatched. But
before that the proper packing is done of the same. The products which are
send to outside are packed and the product for the local area are dispatched by
the trucks.


 Quality policy Certificate




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              Facilities Planning
                  Location
Introduction

             Site selection is an important activity which decides the fate of
the business. A good location may reduce the cost of production and
distribution helps in elevating either the competitive strength or the profit
margin of the business.



The need for selecting a suitable site or location
              The need for selecting a suitable sit location can arise in the
following situation.

             While starting a new factory
             During the expansion of the existing plant.
             When the existing plant is to be re-located at some other place to
             remove the drawbacks of the present location or to gain the
             benefits of a still better location.

Factors affecting the Plant Location
      Mainly two factors affect the plant location i.e.

      (A) Primary factors
      (B) Secondary Factors

(A) Primary Factors

      Following primary factors affects the plant location.

             Supply of raw material
             nearness to market



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                                                 MASCOT FORGE (P) LTD.


            Transport facilities
            Labour supply
            Availability of power
            Supply of capital
(B)   Secondary Factors

            Following are the secondary factors affecting the plant location.

            Facilities
            Natural factors
            Government subsidies & facilities
            Historical & religious factors
            Initial start & goodwill
            Personal factors
            Miscellaneous factors


Chart of Plant location

Factors affecting location of Forge & Forge Ltd.

            Nearness to market
            Proximity to large proper labour
            Availability to basic infrastructural facility
            Government regulation and subsidy
            Nearness & accessibility to market

       Forge & Forge Ltd is located at Ahemdabad Road which is near to
National Highway No. 8 i.e. to get a benefit of less Octroi. The company is
also heaves and accessibility to market.




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                                                MASCOT FORGE (P) LTD.




           Plant Layout and
           Material Handling
Introduction

             A factory is a placed where all the industrial activities are
housed. After the selection of the factory site the factory building is
constructed at the selected site. The problem of arrangement of various
departments inside the factory building arises only after the availability of the
floor area covered by the walls and roofs forming the factory building.

Ideal Plant Layout
              Plant layout is the overall arrangement of the production
processes store-room, stock-room, fool-room material handling equipment,
aisles, racks and sub-stores, employee services and all other accessories
required for facilitating the production in the factory.

               According to F.G. moore, “A good layout is one which allows
materials rapidly and directly for processing. This reduces transport handling,
clerical and other costs down per unit, space requirements are minimized and
it, reduces idle machine and idle man time.”



Objectives of an ideal plant layout
      A good plant layout strives to attain the following objectives.

(1)   Minimization of material handling.
(2)   Elimination of bottle necks through balancing of
      plant capacities.
(3)   High material turnover through shorter operating cycle.
(4)   Effective utilization of installed capacity so that the returns on the
      investments may be maximized.
(5)   Effective utilization of cubic space of the factory area.




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                                              MASCOT FORGE (P) LTD.


(6)   Effective utilization of man-power resources through elimination of idle
      time.




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           Material handling
             In a manufacturing firm the raw material are obtained from the
suppliers and are stored in the store room. They are issued to production
departments are moved inside the plant are from one processed to another for
the purpose of processing fill they are converted into finished goods. Finished
products are sent to the shipping sections. The function of the material
handling is confined only to the movement of raw material room the store
room to the shipping section.

            Thus, material handling involves the movement of materials
from one place to the another for the purpose of processing.

            In Forge & Forge Ltd. Following equipments are used for the
material handling.

             Floor controller
             club controller
             overhead crane
             platform trolley
             power operated for truck




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        Stores Management
             Stores management is the basic need for any of the company. For
the purpose of having a smooth and uninterrupted production flow. How it is
necessary to have an efficient stores management in the organization.

             The stores management also fulfills the following objectives.

          a. With the help of stores management the organization can take
             care that the stock is either too excess or it is too less.

          b. It protects the raw material from the theft, natural calamity etc.

          c. To decide the economic ordered quantity for purchase of
             materials.


             The Forge & Forge Ltd. Is having an efficient stores management
within the organization efficient stores. The material are kept in store in such a
way that they require minimum handling and remain well protect against any
damage of loss material is issued from the stores against the authorized and
proper record is maintained for receipt and issue of material.




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      Inventory Management
              Scientific inventory management is a formidable task when we
consider an enormous number of items a large organization is expected to
stock. Even is if the organization thinks of the uniform inventory control over
all these large number of item, it will become counter productive since the
costs will for exceed the benefits. This is the logic behind selective inventory
management.

              Selective inventory management considers the factors like the
value of the inventory item, its criticality and its usage frequency.

            There are six important quantity standards used as tools to
manage the inventory which use.

(1)   The minimum level.
(2)   The maximum level.
(3)   The safety stock level.
(4)   The ordinary level.
(5)   The danger level.
(6)   The overage stock level.

      The Forge & Forge Ltd. Follows a minimum and maximum level of
inventory control.

(1) Minimum level
            This is the level of the stock which is required to continue the
production process.

       If the level of stock goes below this level the production process is
interrupted.


(2) Maximum level
             This is the level of stock beyond which the stock should not be
maintained. If the stock goes beyond the maximum level it will lead to
overstocking.



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              Scrap Management
               Scrap management means to dispose the scrap properly, which is
get during the production process. In Forge & Forge Ltd there are many types
of scrap which the company sells to the other company also wants to purchase
that. The company sold this scrap to them at their terms and conditions. So we
call say that in this company there is no specific management for scrap.




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        PERSONNEL DEPARTMENT

No.                Particulars                 Page No.
1     Introduction
2     Organization Structure
3     Recruitment, Selection & Induction
4     Promotion & Transfer Policy
5     Employee Training & Development
6     Performance Appraisal
7     Wage & Salary Administration
8     Grievance Handling System
9     Working of E.S.I. Scheme
10    Provident Fund Schemes
11    Leave System
12    Benefits & Employee Services




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                   Introduction
             Personnel management is the sub-area of general management. It
concentrates on the human activities elements of general management. It is
concerned primarily with manpower resources or inputs.

              Personnel management is the direction and co-ordination of
human relation in the business organization there by obtaining maximum
production within minimum of physical and mental efforts stress and strain on
the individual workers and group of workers and without sacrificing the
genuine well being of the employees. The objective of personnel management
is to achieve maximum individual development disable work atmosphere and
interpersonal relation.

Definition
      Following are definitions of the personnel management.

According to Edward Flippo

       “Personnel management is the planning organizing directing and
controlling of procurement, development, compensation, integration and
maintenance of people for the purpose of contributing to organization
individuals and social goals.”


According to C.H. Northcott

        Personnel management is the function is an extension of general
management that promoting and stimulating every employee to make his
fullest contribution to the purpose of the business.

According to George R. Terry

      “Personnel management is concerned with the obtaining and
maintaining of a satisfactory and satisfied work force.”




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    Organization structure
              According to Prof. Allen organization ,”The process of
identifying and grouping the work to be performed defining and delegating
responsibility and authority and establishing relationships for the purpose of
enabling people to work most effectively together in establishing of
objectives.“

       Organizational structure of Personnel Department of Forge & Forge
Ltd. is as follows:

                   Managing Directors


                   General Manager


                   Personnel Manager


                     Senior Clerk



         Time                                         Super visor
         Keeper


        Peon

             In Forge & Forge Ltd there is a separate personnel Department
for achievement of goals. Personnel Department is a one of most important
part in an organization. All the function related with company are being on
concerned with personnel Department. Here the general manager is doing
work under managing director and personnel manager is doing the work
under the general manager.




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 Recruitment Selection &
        Induction
                          Recruitment
            Recruitment has been regarded as the most important function of
personnel department. Recruitment is a process to discover the sources of
manpower to meet the requirement of the staffing schedule.

             According to Edward Flippo “Recruitment is both positive and
negative activity. “It is a process of searching for prospective employees and
stimulating and, encouraging them to apply for jobs in an organization.”

             When any type of vacancy arises in Forge & Forge Ltd. The
personnel manager examines as to what type of candidates are required to take
into consideration on the basis of job evaluation and job analysis. There are
mainly two types of sources to do the recruitment.

      (1)    Internal Sources
      (2)    External Sources

(1) Internal Sources
                  Transfer
                  Promotion
                  Present Employees.

       Recruitment through internal source is most beneficial to the firm as
well as to existing employees.

       In Forge & Forge Ltd. whenever higher level the vacancies are needed
they filled up it by giving simple promotion of their existing employee through
a simple process. It makes healthy and progressive atmosphere and also makes
lower cost of training and the rate of the labour turnover.




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(2) External sources
             External sources includes

              Advertisement in newspapers
              Personnel consultants
              Jobbers and contractors
              Employment Exchange
              Educational institutions
              Field Trips
              Unsolicited applications.

             In Forge & Forge Ltd. first preference is given to the internal
source but is they don’t find such efficient person in organization they go for
external source.

              If company wants the persons at the operating level, it first
prefers to find then in organization. But such persons are not available in
organization on them give adds in local newspapers and if company wants the
person at managerial level that means they need a highly qualified people they
go for add in newspaper at state level or at national level.




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                             Selection
              The object of manpower selection is to ascertain clearly the type
of person required and to secure an appropriate candidate for filling that
position. It is also concerned with security relevant information about an
applicant.

              In Forge & Forge Ltd. there are mainly two types of worker i.e.
at operating level and at managerial level. The selection at managerial level is
on the basis of recruited candidate and at a operating level the selection of
workers in on the basis of skilled and unskilled worker.

               The procedure of selecting employee at managerial level is not so
simple as it is at operating level. To select an employee at managerial level the
advertisement is given in newspaper at state or national level. For this purpose
some specific procedure has to be followed.


(1)   Application Blank
              The first stage of the selection process is accepting the
applications from the interested applicants.

             In Forge & Forge Ltd. The application blank is different for both
operating level employee and managerial level employee. In application form
includes name of candidate, his address, qualification, his resent job, present
salary, experience and reference. After collecting all applications, they do a
deep study on it and get an appropriate applicant.

(2)   Written Test

             After the recruiting application forms, they hold a written test for
the applicant. Following are the some of the types of tests taken into the
company.

                  Knowledge tests
                  Attitude tests
                  Judgment tests
                  Learning ability test or intelligence test
                  Personality test




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             Generally the written tests are conducted for the white collar
jobs.


(3)     Interviews

               If the performance of candidate is satisfied in the written test,
then the candidate is called for personal interview and ask about his job here
some of the points regarding his job terms and condition, salary etc. are also
clarified. If the candidate is found eligible for the job, further procedure for
both white & blue collar job.

(4)     Reference check

              While selecting an employee reference is also taken into
consideration candidate having reference of an employee of the unit or any
other trustable person is given first preference.

             After passing the oral interview they check the reference without
reference they do not appoint any employee it means that reference check is
much important part of the selection procedure.

(5)     Final selection

              At the end of all the steps mentioned above, the last step is taken
which is known as final selection. The candidate who successfully passed the
above all stages is become able to get the final selection.




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                             Induction
              After selection procedure induction take place. After the selection
process the last step remains that is placement of a person on his new job. But
before that the person is informed about organizational environment. It is
necessary to give him a copy of the rules, policies and procedures to be
followed by his and also describe his job.

             In Forge & Forge Ltd, after the process of selection the person
who is selected for the job is informed regarding his duties and responsibilities.




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  Promotion and Transfer
          Policy
                             Promotion
            By promotion is generally mean he assignment of a position of
higher responsibility to an individual organizations which have as stock of
promotional talent spread over several department, requires a systematic
approach promotion as the talent must be identified.

             A promotion may be defined as an upward advancement of an
employee in an organization to another job, which commands better
pay/wages better status, higher opportunity, responsibility and authority,
higher rank etc.

             According to Scott and Clotheir., “ A promotion is the transfer
of an employee to a job which pays more money or that carries some preferred
status.”

               In Forge & Forge Ltd. Employees are given promotion on the
basis of their skills, ability and specially the experience Unlike government
seniority doesn’t affect promotion for the purpose of promotion management
collects detail for the employee relating to his ability in past performance,
employee relating to his ability in past performance regularity and their fitness
to work on the promoted post, most of the employees gets the promotion from
better level to middle level. In rare cases they promoted to exclusive level.

                              Transfer
            Transfer means to change the place of the job without uplift in
status responsibilities, duties salary etc. of an employee. Transfer is a
horizontal movement of employee from one department or shift.

              In Forge & Forge Ltd, they don’t need to transfer any employee
in any other job because company has only one unit, so no need to transfer
any employee.




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  Employee Training &
      Development
                              Training
Meaning
        To train means to import information or skill through instruction or
drill. Training is the application of knowledge with a specific end in view.
Through it, trainees are given an awareness as regards rules and procedures to
be followed to perform their operations.

Need for training
(1) Non availability of trained Personnel

              Workers for various categories of jobs in an enterprise. This
necessities selection of purely trained or untrained worker. As a result
employers themselves are required to make arrangement to import proper
training to such workers.


(2) Suitability for enterprise needs

             Even where a worker is trained for the job to be assigned to him,
he needs to be given some special training specialized job requirement of the
enterprise.

(3) Proficiency in latest methods

             Rapid technological developments have made it necessary to
provide continuous training facilities in the enterprise itself, This is because
training as to one as set of work methods, may become outdated due to
invention of new methods




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             There are mainly two kinds of training programs which are

      (i)       on the job training
      (ii)      off the job training

             In Forge & Forge Ltd., generally, training is given to the
employee at operating level. The employee is given training on the job. For
this purpose he has to work under his supervisor who will keep watch on him
and give report to the management about his progress.

              But at the managerial level, sometimes, employees are given
training off the job. The company selects an employee for the suitable job and
if there may lack of knowledge about his job, he will be given off the job
training.




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                             Development
             Development can be explained as the systematic process of
learning by which some condition is made in the knowledge and skills of the
existing employees of the organization.

              It should be remembered that the development activities relate
not only to the new recruit but also to existing employees at both the
supervisory and the non-supervisory levels. Even existing managers require
further development or certain sills and abilities. As already indicated
appraisal of the new entrant or the existing manager can highlight such
person’s training or developmental needs.


Identification of Training Needs
             Training is a means to increase the effectiveness of employees
both managers and workers in their present jobs and prepare them for
promotions with greater responsibilities. It should therefore be related to the
needs of the organization and the employees concerned.

              According to McGhee and Thayer, the following three steps can
take to identify the training needs of employees of any organization.

      (i)       organization analysis
      (ii)      Task analysis
      (iii)     Worker analysis


              In Forge & Forge Ltd. The developmental programs are take
place at the regular intervals. This developmental programs take place for both
the employees at operating level and the employees at the managerial level




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    Performance Appraisal
Introduction
             Performance appraisal may defined as the process of reviewing
an employee’s performance and progression a job with a view to motivating
him to realize his potential. It is systematic method of obtaining analyzing and
recording information about a person doing a specific job and stimulating him
to perform better.

            The performance appraisal evaluates the performance of an
employee by quantitative factors such as quantity of output and rejected
output standard of workers.

Definition
              According to Alkford and Beaty. “It is the evaluation or appraisal
of the relative worth to the company as a man’s service on his job.”

              According to Edward Flippo; “Performance appraisal is a
systematic, periodic, and so far as humanly possible, and impartial rating of
employee’s excellence in matters pertaining to his present job and to his
potentialities for a better job.

            According to W.D. Scott, R.C.Chothier and W.R.Spriegel
“Performance appraisal is a process of evaluating an employees
performance of a job in terms of its requirements.”




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Advantages

(1)   It provides a sound basis for granting increments in salary within the
      pre determined wage of salary scale.

(2)   It provides a basis for promotion, selection for higher training transfer,
      and removal of employees.

(3)   It checks the effectiveness of recruitment, training and placement of
      employees as a whole.
(4)   It promotes the desire for improvement on the part of employees as a
      whole.
(5)   It boosts the morale of employees in the sense that they know that
      individuals performance and growth will be suitably rewarded on
      objective criteria.

            In Forge & Forge Ltd, there is a system of establishing the
performance standards for every employee. Then the organization
communicate the performance expected from him. Then the actual
performance is compared with the standard performance.

             On the basis of the comparison company approves its employees
and if necessary, it also takes intimate corrective action.




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             Wage and Salary
             administration
            Success of a business or industry is very much depends on a
successful wage and salary administration and policy. Therefore, the
personnel manager is very much concerned with these matters.

             An incentive or reward can be anything that attacks a worker’s
attention and stimulates him to work is called the wage or the salary. In the
words of Burak and smith “An incentive scheme G a plan or program to
motivate individual or group performance.”




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Definitions

              According to Benham, “Wage means the amount paid to the
labour for his services by the employer.”

             According to Yoder and Heneman “Wages are the compensation
of wage earner, the numerous employees who use the tools and equipments
for their employers to produce goods and services that are sold by their
employers”.

            According to P.M. Stohan K. “Wage is that labour’s
remuneration which creates the utility.”


Objective
      Following are the objectives of the wage & salary administration.

         1. To recruit persons for a firm
         2. To control Payroll costs
         3. To satisfy people to reduce the incidence of quitting, grievances,
            and frictions over pay
         4. To motivate people to perform better


             Forge & Forge Ltd. gives wages on both daily and monthly basis
to its workers. For the managerial staff and some operating level employees
there is monthly salary whereas the lower level workers are given wages on
contract basis. Every person gets salary as per his position and work assigned
to him.

             Rs. 1200/- Per month = to unskilled worker.

             Rs. 1500/- Per month = to semi skilled worker.

             Rs. 2500/- Per month = to skilled worker.




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             Here the salary is determined for office staff as per his work
assigned e.g. :- Here accountant gets Rs. 5000/- approximately while
production in charge gets Rs. 10000/- and at the same time quality controller
get Rs. 7000/-.

            Company provide net salary after deducting all the deductions.

Net salary = Total Salary=[P.Tax+ESI+PF+Z.W.F.+Advance]

             Here is the unit they give increment of Rs.200/- for all employee
every year and employee can get one month salary as a loan without interest.
All the employee withdraw the salary and loan from personnel officer.




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  Grievance                                        handling
system
            Any real or imagined feeling of personal injustice which an
employee has concerning his employment relationship is called grievance.
These grievances may be real or imaginary, valid or invalid genuine or false
broadly speaking a complain affecting one or more workers constitutes a
grievance.

            These complains may relate to the quantum of wages, the mode
of payment, payment for overtime work leave, working conditions,
promotion, seniority, transfers, work assignments etc.

Definitions
             According to International Labour organization (ILO) ”A
grievance is a complain of one or more workers in respect of wages,
allowances, working conditions and interpretations of service stipulations such
as overtime, leave, transfer, promotion, seniority, work assignment and
termination of services.”

              According to National Commission Labour “Complains
affecting one or more individual workers in respect of wage payments,
overtime, leave, transfer, promotion, seniority, work assignment and discharge
constitutes grievances.“

              In Forge & Forge Ltd. there is no question of arising the
grievances as they are giving more compensations to their employees than
they deserve.

             But if there is any chance of arising of grievances then the
management is always ready to talk with the employees and find the solution
of the problem face to face.




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             Working of E.S.I.
                Schemes
              ESI means employee state Insurance scheme. This is one of the
most valuable provisions for the workers. An employee states industries fund
is created by which is contributed by both employer & employee. This scheme
provides benefits in case of sickness, disablement, death or medical care.

           This scheme is applicable in organizations having to or more
employees and uses power or having 20 or more employees and do not use
power.

            In Forge & Forge Ltd. company is contributing 4.75% and the
employees are contributing 1.75% for the purpose of E.S.I. schemes.




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   Provident fund scheme
             The scheme of provident fund was started in the year of 1952.
Under this scheme a fixed percentage is deducted from the wages and salaries
of the employee at the same time employee must add the same percentage to
the fund and the total amount made from these contributions is called as
provident fund. This amount of provident fund is given to employee after his
retirement.




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                 Leave System
             The company allows the employee 19 days of casual leave in a
year with information of one day in advance.

              And if due to any in available circumstances, if an employee
needs more days leave, it is the decision of the top level management to
sanction it or not. For getting a leave every employee has to fill one form.




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       Benefits & Employee
             Services
            In Forge & Forge Ltd. there are so many facilities provided to the
employees. These can be classified in three categories.

(1)   Medical facilities.
(2)   Canteen Facilities.
(3)   Other benefits.

(1) Medical Facilities
       The company provides reimbursement of actual medical expenses
incurred and in funding hospitalization, nursing home and surgical charges for
the employee and their family.

(2) Canteen Facilities
       The company provides canteen facility to its workers which provide
snacks, hot drinks, cold drinks to employee at subsidized rate. The company
also provides the facility of rest room to the worker.

(3) Other Benefits
      They also provide facilities of Bonus gratuity, E.S.I. and provident fund
schemes. They also provide allowance uniform festival holidays, causal leaves
and earn leaves.




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MARKETING DEPARTMENT




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                    Introduction
              Marketing management is social and managerial process of
identification and satisfaction of customer needs and wants through
developing and distributing product of value to the customer and satisfying the
customer more efficiency than competitors.

              Marketing is a comprehensive term and it include all resources
and a set of activities necessary to direct and facilitate the flow of goods and
service from producer to consumer in the process of distribution. Businessman
regards marketing as a management function to plan, promote and deliver
products to the clients or customers. Human efforts finance and management
constitute the primary resources in marketing.




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  Organizational Structure
             The organizational structure of marketing department in Forge &
Forge Ltd. is as follows.

                                Managing Director


                                General Manager


                               Marketing Manager



    Sales Officer                                    Purchase Officer


Assistant Officer                                       Assistant Officer



                                                                 Clerks
Clerks     Salesman




             In Forge & Forge Ltd. there is a separate marketing management
for the smooth functioning of the organization marketing management is one
of the most important part of an organization as it relates to a delivery,
advertising, pricing etc. of the companies manufacturing products. Here the
general manager is doing the work under the managing director and marketing
manager doing the work under general manager.




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Definitions of Marketing
   According to the American marketing Association, “Marketing is the
   process of planning and executing the conception, pricing, promotion and
   distribution of ideas, goods and service to create exchanges that satisfy
   individual and organization objectives.”

   According to Edward David, “Marketing is the economic process by
   means of which goods and services are exchange and their values
   determined in terms of money price.”

   According to Philip Kotler, “marketing is the set of human activities
   directed at facilitating exchange.”


Functions of a marketing manager
            If we consider expanded concept of product, which includes
all goods and services, we have the following marketing functions of a
marketing manager.

                  Identifying customer needs
                              
                  Understanding the needs
                              
                     Developing product
                              
                      Delivering product
                              
                  Measuring customer satisfaction




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Marketing as a business
               Marketing is not merely a function of a business enterprise but it
is the business and it is synonymous with the whole business unit or a view of
the entire business as the economic organ to provide goods and services. The
primary function of a business (marketing company) is to create and maintain
a satisfied customer. No longer profit is the operational good or the sole
criterion of effective marketing performance.

       Profit will be the reward for the skillful delivery of satisfaction.
Marketing management shall give emphasis upon delivering customer
satisfaction through real consumer concern and profits will accrue only
through serving demand.




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                  Pricing Policy
Introduction
              Economists defines price as the exchange value of a product or
service always expressed in money to the consumer the price is an agreement
between seller and buyer concerning what each is to receive price is the
mechanism or device for translating into quantitative terms the perceived
value of the product or service including any warranties or guarantees delivery
discounts services or other items that are part of the conditions of sale and are
not paid separately.

              To the buyer price is a package of expectations and satisfaction.
Thus, price must be equal to the total amount of benefits. Any change in the
price will also bring about alterations in the satisfaction side of the equation.

              Pricing is equivalent to the total product offering. This offering
includes a brand name, a package, product benefits, service after sale, delivery
credit and so on from the marketer’s point of view the price also covers the
total market offering i.e. the consumer s also purchasing the information
through advertising, sales promotion and personal selling and distribution
method that has been adopted. The consumer gets these values and also
covers their costs. We can now define price as the money value of a product or
service agreed upon in a market transaction. We have a kind of price equation
line.

Money (price) = Bundle of Expectations or satisfactions




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Importance of Pricing

             Price is a matter of vital importance to both the seller and the
buyer in the market place. In money economy, without pricing there can’t be
marketing price denotes the value of the product or service expressed in
money. Only when a buyer and seller agree on price, we can have a exchange
of the goods and services leading to transfer the ownership in a competitive
market economy, price is determined by free play of demand & supply.


             Price is a powerful marketing instrument. As a marketing
weapon, pricing is the big gun. However is must be used with the great
caution. It is a dangerous and explosive marketing force. Therefore, all
marketing planners must take accurate and planned pricing decision.


Objectives
             Following are the objectives of pricing

             (1)   Growth in sale.
             (2)   Market share
             (3)   Predetermined profit level.
             (4)   Meet or follow competition.
             (5)   Control cash flow.


               The prices in Forge & Forge Ltd. are vary according to the
product. This variation comes because the cost of production for every product
is different. Pricing is done according to following formula.


      Price per Unit = cost Of production + Make up
                         No. of units produced




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 Channels of Distribution
   Introduction
            In the field of marketing, channels of distribution indicate routes
or pathways through which goods and services flow, or move from producers
to consumers.

             We can define formally the distribution channel of the set of
interdependent marketing institutions participating in the marketing activities
involved in the movement or the flow of goods or services from the primary
producer to the ultimate consumer.

             Marketing institutions considered as channel components are.

      (1)    All kinds of merchant middleman such as wholesalers and
             retailers.
      (2)    All kinds of agent middleman such as commission agents,
             factors, brokers warehouse-keepers etc.
      (3)    All other facilitating agencies such as common carriers, bankers,
             advertising agencies, and so on.

             The route of channel includes both the manufacturer and the
ultimate consumer as well as all intermediates by one or more of the
marketing flows, such as transfer of title or ownership, physical movement of
merchandise, transmission of marketing information and the flow of money in
the form of payment of prices and other ones.




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Various Channels of Distribution
             The most common routs or channels used for bringing the
products in the market from producer to consumer are as follows.

   (1)   Manufacturer-consumer-channel (Direct sale)
   (2)   Manufacturer-Retailer-Ultimate consumer
   (3)   Manufacturer-Wholesaler-Retailer-consumer
   (4)   Manufacturer-Agent-Wholesaler-Retailer-consumer
   (5)   Manufacturer-Wholesaler-Consumer/User


             Forge & Forge Ltd. is an ancillary company, producing forgings
which is useful in diesel engine producing the forgings is a tailor made job. So
the company produces the goods after receiving the orders because the goods
once produce for particular machine, it will not be used for other. So they do
not produce more than orders and they supply the goods directly to the
customers, means there is a zero level distribution. They do not take the help
of any middle man of appoint any commission agent. In this company
customer directly come to the company and meet the sales officer and during
the meeting all terms and conditions are shown and if everything is satisfied
they put the order and company directly supply the goods to the customer.

            In short this company has zero level distribution channel system
means they directly deal with the customer, and not through any distribution
channel.




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                   Product Line
              A Product line can be defined as. “ a group of products that are
closely related because they are functioning in a similar manner are sold to
same customer groups are marketed through the same types of outlets or fall
within a given price range.”

             In Forge & Forge Ltd. they have a big product line as they want
so satisfy their customer with their products. The products included in the
product line of the Forge & Forge Ltd. are

              Steel Forgings
              Steel Flanges & Fitting Redler type Forged Links
              Crank shift
              Connecting Road
              Crown Wheel
              Penion
              Chain Link
              Hanger
              Oil engine Parts
              Automobile Parts




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              Sales Promotion
               Sales Promotion is an important instrument in marketing to
lubricate the marketing efforts sales promotion is referred advertising and
publicity, which stimulate consumer salesmanship, and dealer effectiveness.
For example, displays exhibitions and showrooms, demonstrations, free
samples coupons, premiums, contests and various other than non-recurrent
selling efforts not in the ordinary routine.


Objectives
Sales promotion has the following objectives

   (1)    To increase buying response by ultimate consumers.
   (2)    To increase selling efforts and intensity by dealers as well as by sales
          personnel.
   (3)    To supplement and co-ordinate efforts of advertising and personal
          selling.
   (4)    Calling attention to new products and products and product
          improvements.
   (5)    Informing buyers of new brand and new package.
   (6)    Improving market shares.
   (7)    Increasing the usage rate by present customers.
   (8)    Maintaining customer patronage and bran loyalty
   (9)    Obtaining dealer outlets.
   (10)   Meeting competition.


             As we said earlier that this company is producing goods as per
   the orders received and they receives the sufficient order and supplies the
   goods and customers are fully satisfies with the quality of product.

             Thus due to the receipt of sufficient orders they don’t take any
   type of sales promotion action.




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                     Advertising
             Advertising is a form of mass communication. It is paid for by a
sponsor or the seller who wants to communicate about his product or service
to his customers. The advertiser or sponsor wants to persuade and induce the
readers, viewers or listeners to take some action like to buy the advertised
product so that the advertiser can have profitable sales.

              Advertising can be defined as mass, paid communication of
goods, services or ideas by an identified sponsor. It is paid communication
because the advertiser has to pay for the space or time in which his
advertisement appears. Advertising appears in the recognized media, such as
newspaper magazines, radio, television, cinema film, outdoor hoardings and
posters, direct mail & transit.

            Forge & Forge Ltd is producing the industrial goods there fore
they do a comparatively less advertising.




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               Market Research
              Market research is one of the most important parts of the
marketing management. Market means actual and potential customer market
research is the systematic and intelligent investigation or study of the who,
what, where, when why and how of actual and potential buyer. If deals with
research on customer demand e.g. behavior and attitudes of consumers and
dealers at the market place, analysis of sales data, analysis of market share of
firm etc.

               The following items of study and analysis are included in market
research.

   (1)      Size of the unit.
   (2)      Geographic descriptions of customers.
   (3)      Demographic descriptions of customers.
   (4)      Market Segmentation.
   (5)      Analysis of market demand.
   (6)      Sales analysis.
   (7)      Consumer needs & wants.
   (8)      Dealer’s wants & Preferences.
   (9)      Degree of competitions and the market trend.

      Forge & Forge Ltd is producing semi finished goods, for other
industries and do not produce the consumer item customer of the unit are
company and they are fixed with quality they are satisfied so they place their
repeat orders again and again so fat this reason there is nor requirement of
market research.




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                 Packing and
                Transportation
             Packing refers to the wrapping crafting etc of goods or product to
protect them from spoilage, breakage, weather etc.

            Whereas packaging is concerned with the creation and designing
proper packages for different products.

              In Forge & Forge Ltd. they make they make the packaging of
goods only when they are to be sent in other states or it far. For the local
selling they do not make the packaging of goods.

          Transportation is carrying goods from one place to another. It is
by means of transportation that production and consumption are linked
together.

            In Forge & Forge Ltd, the transportation cost is to tally on a
customer. After purchasing of goods they have to take delivery of the good
and make transportation. Forge & Forge Ltd. has to make transportation for
raw materials. For the transportation of raw-material they have their own
trucks.




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                  Warehousing
               Warehousing is the practice of storing goods in properly
constructed building with the main object of protecting them room fire, rust,
dust weather and deterioration in quality etc. Proper supply price control and
stability etc. Warehousing is of various types which are

      (1)    Private warehousing
      (2)    Public warehousing
      (3)    Bounded warehousing
      (4)    Cold storage

             In Forge & Forge Ltd they have their Private warehousing to
store the raw material as well as finished goods.




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FINANCE DEPARTMENT




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                    Introduction
              The term nature as applied to financial management refers to its
relationship with the closely related field of economics and account in, its
function, scope and objectives. Financial management as an academic
discipline has undergone fundamental changes in its scope and coverage. In
the early years of its evolution it was treated synonymously with the raising of
funds. In the current literature pertaining to financial management, a broader
scope so as to include in addition to procurement of the funds, efficient use to
resources is universally recognized.

          Similarly, the academic thinking regards the objective of financial
management is also characterized by a change over the years. The objective.


Objectives
               To make wise decisions a clear understanding of the objectives,
which are sought to be achieved, is necessary. The objectives provide a
framework for optimum financial decision-making. In other words they are
concerned with designing a method of operating the internal investment and
financing of a firm. We discuss in this section the alternative approaches in
financial literature. They are two widely discussed approaches.

      (1)    Profit Maximization approach.
      (2)    Wealth Maximization approach.




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 Organizational Structure
             The organization structure of Financial Department in Forge &
Forge Ltd. is as follows.


                          Managing Director


                           General Manager


                            Finance Manger


                           Chief Accountant


                        Assistant Accountant



      Senior Clerk                                               Clerks

     Typist

             Financial management is one of the most important part of the
organization. Here, in Forge & Forge Ltd. the general manger is working
under managing director whereas finance manager is working under general
manager. There is also a chief accountant and an assistant accountant who are
working under finance manager.




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           Financial Planning
              Planning is very much necessary for the smooth running of the
business. Planning means deciding in advance what is to be done. Planning is
doe for each functional area of management. So, financial management being
one of the branches of the management also needs planning. Finance planning
is necessary for the control of inflow and outflow of cash so that necessary
funds may be made available as and when they are required. The highest
earning can be assumed only through the sound. Financial plans. A faulty
financial plan may turn the business completely.

              The company generally prefers is make the short term financial
planning which for the one year. In the planning they make budget for the
year and this is useful because it is made according to the current situation i.e.
the latest planning is get by the firm.




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                  Capitalisation
              Capitalisation means total amount of a company’s capital or total
value of its capital stock. If capitalization of a company is just properly
capitalized, if it is more than required, profit per share will fall and its
capitalization is less that required, it is not desirable.

            According to Prof, Lillin Doris “ Capitalisation refers to the total
accounting value of the capital stock surplus in whatever first if may appear
and funded long term debt.”

             There are three types of capitalization

      (1)    Over Capitalisation.
      (2)    Under Capitalisation.
      (3)    Fair Capitalisation.

(1) Over Capitalisation
              Total amount of capital should be enough to meet if present and
future needs i.e. it must be properly capitalized. A company is said to be over
capitalized it its earning are less in relation to amount of capital investment
when real value of shares & less than its book value, the company is said to be
over capitalised.

             To have a proper idea of capitalization of a company, it is
necessary to know what is real value and book value of shares.

(2) Under Capitalisation
              Under capitalization is a situation which is exact opposite of over
capitalization. It is a situation in which the real value of a company’s share as
determined by its earning capacity is highest than their boon value. The value
of shares, debentures and long term loans is less than the value of the assets of
the company.




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              Capital Structure
              Capital structure is composed of when capital and borrowed
funds means share capital, reserves and surplus debentures, loan by financing
institutions.

              The financing manager should try for optimize of capital
structure for the company and it is achieved when the market value of share is
highest and cost of capital is minimum so that board of director and finance
manager both should create a suitable capital structure. The whole capital
structure of this unit is as follows.

              Capital Structure of Forge & Forge Ltd.

Particulars                                             Amount (RS)
SHARE CAPITAL
Authorized Capital
3000 equity shares of Rs.1000/- each                    30,00,000
Issued, subscribed & paid up capital
2500 equity shares of Rs.1000/- each                    25,00,000
RESERVES & SURPLUS                                      1,64,43201
SECURED LOANS                                           24,20,936
UNSECURED LOANS                                         7,95,50,117
           TOTAL                                        10,09,14,314

Fixed




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Fixed                                                        Assets
Management
              Fixed Assets are those which are permanent in hastate and these
are not easily convertible into cash. Fixed assets are distinguished from current
assets on the basis of length of the physical & economical life and their
convertibility in cash and their place occupy in the business cycle.

               Fixed assets has fixed cost burden having long term and huge
investment and thus bearing on the operational efficiency of the firm. They
must be managed properly and effectively otherwise it may create danger for
the survival of the firm. So such decisions are taken only after seeing the
profitability on such assets and the fixed assets are building.

            In Forge & Forge Ltd. the list is prepared of all the fixed assets
and any addition of disposition given affect by the top authority. Any decision
regarding these assets are taken by the management after consulting an
appropriate engineers. Depreciation on these assets are provided by the
written down value method.

             Fixed Assets of Forge & Forge Ltd.


Particulars                     31-3-2001            31-3-2002
Gross Block                     6,15,55,494          4,78,20,127
Less :- Depreciation            50,51,41,314
Net Block                       79,24,286            1,10,41,314

             The fixed assets of Forge & Forge Ltd. as on 31-3-2001 was
1,10,41,314 and a on 31-3-2002 is Rs.79,24,286.




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                         Inventory
             Inventory means the stock of raw material semi finished goods &
finished goods. Here in Forge & Forge Ltd. they maintain the inventory for
raw material, semi finished goods i.e. work in progress and finished goods.
This unit take the stock of raw material at every 6 months and they take the
stock of semi finished & finished goods as less than 2 months.

      The inventory amount of year 2001 & year 2002 is as follows.

Inventory                         31-3-2002          31-3-2001
Raw material cat cost             1,71,77,669        27,28,830
Semi Finished goods               1,84,74,519        2,65,24,284
(At estimated cost)
Stores                            70,30,248          81,22,345
Scrap
(At estimated realizable price)   10,57,489          6,70,400
      Total                       4,53,29,211        4,06,83,0411




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Receivables Management
             Receivables management can be called trade credit management.
Thus account receivable represent on extension of credit to customers,
allowing them a reasonable period of time in which to pay for goods which
they have received.

              To increase the sales and to survive in the market for long time
every business has to provide credit facility to its customer. In Forge & Forge
Ltd. they provides 45 days credit to its regular customer while 30 days credit
to the other. The customers who pay their dues within 3 to 4 days, they also
get the benefit of cash discount.

             As they provide credit facility to customer there are debtors, but
then also they don’t faced the problem of bad debts. So, they don’t make any
provision of bad debt reserves. The sundry debtors of the company are as
follows.

Particulars                31-3-2002               31-3-2001
OVER SIX MONTHS            44,73,137               62,43,997
Considered goods           34,56,722               23,06,125
Considered doubtful        4,89,40,189             4,91,16,89
    Total                  89,24,228               1,10,41,314




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           Cash Management
             Cash is the most liquid current assets and there are so many
objectives behind the management of cash because company makes variety of
transaction and for that they have to make payment like payment of purchase,
payment of wage, payment of interest etc, and also they have to make the
provision against the failure of important customer.

            In Forge & Forge Ltd. they maintain the cash for above
described purposes and cash and bank balances of this company are as
follows.

  Particulars            31-3-2002                31-3-2001
Bank balance             1,09,354                 2,24,543
Cash on hand             6,26,950                 4,45,893
   Total                 79,24,286                1,10,41,314




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           Capital Budgeting
            Capital budgeting is a process of making decision regarding
investments in fixed assets, which are not meant for sales such as land &
buildings machineries or furniture’s etc. The word investment, refers to the
expenditure which is required to be made on connection with the acquisition
and development of long term facilities including fixed asset.

             According to prof. R.M. lynch, “capital Budgeting consists of
planning and budgeting of available capital for the purpose of maximizing the
long term profitability.”

             The finance manager is ultimately responsibility for
minimization of cost i.e. right acquisition and maximum returns i.e. right
allocation and utilization. The Forge & Forge Ltd. is a large scale unit. Hence
the proper and efficient management and maintenance of capital budgeting is
required. Here the capital budgeting is done by the Finance manager
Mr.sudhirbhai Mehta with the help of top level authority.

                                   TABLE




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         Profit Management
            The main objective of any business organization is to run the
business with a view to earn profit is the primary object of business. It
measures not only to success of product but also the development of market.

              We may considered management of profits as the planning, co-
ordination and control of the capital engaged in the business in such a way so
as to earn regular, adequate and increasing return on capital.

              The Forge & Forge Ltd earns sufficient profit at the increasing
rate as the profitability of the firm increases every year. Out of the total profit
some part is allocated between the owner of the firm as 0 dividend, some part
is kept as a reserves to meet the contingent liability of the firm of the firm and
remaining profit is distributed as bonus.

                                    GRAPH




             As shown in the above graph the profit of the Forge & Forge Ltd.
has increased by the certain percentage every year.

             The main reason for this is the brand of Forge & Forge Ltd.
Every year there is an increase in the customers of the concern as they are
providing better quality as well as facilities.




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            The other reason is that the concern has tried to bring the cost of
production down by reducing the cost of labour installing new machineries
etc.




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                 Ratio Analysis
              The information given in the basic financial statement serves no
useful purpose unless it is interpreted and analyzed in some compatible term.
The ratio analysis of those who want to know something more from the
financial statements.

             Ratio analysis is the process of determining and presenting in
arithmetical terms the relationship between figures and groups of figures and
groups of figures drawn for these statements.

           Ratio can be defined as the indicated quotient of two
mathematical expressions and as the relationship between two or more things.

            The various ratios of Forge & Forge Ltd are as follows.

(A) Net profit Ratio

            = Operating Profit  100
                    sales

            = 2476000  100
               32160452

            = 0.77%

      (B) Turnover Ratio

            (i) Total Assets Ratio

                          Sales____
                   =      Total assets

                          321601453
                   =      107963097

                   =      2.98 times


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            (ii) Debtor turnover ratio

                             Sales___
                     =       Debtors

                            321601452
                     =      53413220

                     =      6.02 times


(c)   Liquid Ratio = Liquid Assets__
                     Liquid Liability
      Liquid Assets         = Current Assets – Stock
                            = 1,16,82,143
                            = 7,12,56,134

      Liquid Liability = Current Liability – income received in advance
                       = 1,16,82,143
                       = 1,02,09,538

      Liquid Ratio       = 7,12,56,134
                            1,02,09,538

                         = 5.98:1

(1)   Current Ratio = Current Assets
                     Current Liability

                      = 11,65,85,345
                       1,16,82,143

                      = 9.98:1




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Average collection Period
              =       360
                  Debtor turnover

              =      Debtors        x 360
                     Sales

              = 53413220__ x 360
                321601452

              = 50.79

              = 60 days.




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        ISO 9002 Certificate
              ISO-9002 quality system standard series was developed by the
technical committee 176 of the International standard organization (ISO) and
approved in its present form in 1987. Since then several countries have
adopted it as national quality standard.

             ISO-9002 assures quality during production, installation and
servicing of products and services. It has 18 requirements and so is less
comprehensive Forge & Forge Ltd. has got the certificate of ISO 9002.




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              SWOT Analysis
Strength of the company
         It is selling a good quality product.
         They have the high quality manpower.
         The company is financially sound.
         The company is having lots of professionals who are handling all
         operators.
         The company is certified by ISO 9002.

Weakness of the company
         The company is doing less advertising.
         Which affects to the sales also.

Opportunity
         As mentioned above company is doing the less advertising so, by
         increasing the advertising they can set-up as international
         markets.

         They have also opportunity to expand the business in their field
         & other field also.




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                      Conclusion
             As a conclusion of my practical training. I would like to say that
Forge & Forge Ltd. is an ancillary unit produces the goods as per order
received, because this is a tailor made job.

               Forge & Forge Ltd is ideally located with good infrastructure
facilities. It is also financially sound. It enjoys good relationship with its
employees and also with outsider means they make good internal
communication, external communication. It is progressive and respected in
market.

              To conclude one can say that the firm is sound and efficient to
contribute development of Indian Industries and the society. They have
adopted modern accounting system. The employees are co-operative in
nature, so the unit is able to make best use of available resources.




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                    Suggestions
My suggestions for the improvement of the company are

         They should do more advertisement.

         They should install a pollution control machinery in the unit.

         Better facilities should be provided to its employees.

         They should participate in welfare avidities.

         They should participate in industrial trade fares.




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         BIBLOGRAPHY
Modern Business Organization
and management                  S.A. Sherlenar & V.S. Sherlkar.

Production and Operation        Chunawala Patel
Management


Personnel Management and        R.S. Davar
Industrial Relations

Marketing Management            S.A.Sherlekar

Financial Management            M.Y.Khan & P.K.Jain




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