9770592007_Jyotsna Sem_2

2010-2011

AProject Report

OnOrganization Study

At

FALCON SUBMERSIBLE PVT. LTD RAJKOT

Prepared By:

Ranpariya Jyotsna .L.

Guided By

Mr. Jagdish.Patel

Batch: 2009-2011

Department of Business Management

Gujarat technological university11919

2010-2011

Declaration

I the undersigned Ms. Jyotsna L.Ranpariya, student of Master of Business Administration, Gujarat Technological University, declare and confirm that work done by me is original and true to the best of my knowledge.

The Project is the result of my efforts and dedication. Moreover it has been approved by the management of falcon submersibles pvt.ltd. and does not contain any material objectionable to them.

Place:

Date:

Signature:

(Jyotsna L.Ranpariya)

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2010-2011

Preface

In the preview of business management course, practical training has get on immense

importance in the field of education and this done by GTU University. Our M.B.A. course

is the course of administration and managerial activities regarding industries. All industries

need good and trained executives to reach out these needs M.B.A. in applicable because it

contain both aspects theoretical as well as practical of industries.

For practical studies, the university has arranged industrial training programme as subject

of M.B.A. – II sem. training period is of 42 days. Classroom discussion and theoretical

study help as much but are that enough for various angle of business, practical studies help

as by providing a golden opportunity to show their skills abroad intelligence.

Concerning this alignment, I have taken training at “Falcon Submersible Pvt. Ltd.”

Rajkot. I have collected all information which covers for my industrial training and all these

were collected from the concerned department.

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ACKNOWLEDGEMENT

I am JYOTSNA L. RANPARIYA student of 2nd Sem. of M.B.A. at V.B.N MBA institute

of business management BHACHA. This training gives me very necessary practical

knowledge and encouragement.

At this time I am very thankful to my college, and all the professors who gave me chance

for this training and provided guidance for the same

My sincere thanks also go to Miss. KomalOza, HR manager of falcon submersibles pvt.

Ltd.forhis full co-operation. Also I am very thankful to, who has given us this great

opportunity that has helped us to develop ourselves

Thank to all.

Date :

Place : Rajkot

Yours Faithfully

JYOTSNA L.RANPARIYA

MBA SEM-II.

Executive summery41919

2010-2011

My stay at “Falcon Submerles Pvt.Ltd” for these two months has been a highly learning experience for me. I see dual advantage that I was able to derive from my training. Since it was not only a “Project focused training” where a trainee is assigned a particular task and his work gets limited only to requirements of the assigned project.

This report covers a brief understanding of “Falcon submerles pvt.ltd.” it’s manufacturing & exporter of submersibles water pumps, open well pumps vertical & horizontal pumps,monoblock V-8, V-6, V-5,V-3,V-4 pumps at Rajkot.

The project assigned to me was an exploratory study of the training and development of the employees for their improvement at “Falcon”.

To fulfill the task an initial study of Training and Development was made from attending the lecture provide by executive of FALCON society and secondary were collected by filling questionnaire by the employees of the FALCON foundation.

This included well structured survey of employees of different department as there are 300 employees in this FALCON foundation with properly structured questionnaire with a view to know following:

1. To know that what type of training is given to employees of FALCON foundation.

2. To find out what are the Development programme of FALCON.3. To find out various activities of FALCON for giving Training4. To gain knowledge about how to give training and how to treat

the employees at the time of training.To study about how to motivate the employees

ABOUT FALCON51919

2010-2011

Incepted in 1994, Falcon Submersible Pvt. Ltd. is a professional and reputed organization engaged in manufacture and export of FALCON brand submersible water pumps, submersible water well pumps, submersible irrigation pumps, irrigation water pumps, stainless steel submersible pumps and pump sets in India. V-8 Submersible Pumps & V-6 Submersible Pumps are hot moving product of company. Since its inception, the company has earned a name for itself on account of its world class quality. Falcon Submersibles is reputed for its ethics, transparency, corporate culture, stakeholder relationships and its contribution to society. With its credentials, experience & resources at command, Falcon Submersible hold prime & domineering position in the Indian pumps market.

The organization is managed by dynamic young professionals with zeal and commitment to customer satisfaction and a pragmatic approach to marketing.

Falcon Submersible core management team includes:

Mr. Dhiraj Suvagia (Managing Director)

Mr. Kamalnayan Sojitra (Executive Director)

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Index

1. Company Profile

Industrial Profile

Growth of falcon

History

Achievement

Product range

Performance

Swot analysis

Corporate Governance

2.Introduction to the subject The introduction of finance

The Concept of Working Capital

The Significance of Working Capital

4. Research MethodologyFinancial statement analysis

Market reseches

5. Summary of finding 7. Suggestion8. Conclusion8. Bibliography

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HISTORY OF COMPANY

FALCON SUBMERSIBLES PVT. LTD. Company is a fair, famous and competent

Company amongst world of Businessman, which has been established in 1994. Falcon

Company is run by excellent management system, experienced administrators and skillful

Engineers. The expansion and twinkling form of Falcon Company makes it more and more

famous and fabulous within a span of less than 15 years.

Falcon Submersibles Pvt.Ltd. Company is securing countable development and progress

having monopoly in the market in India as well as entire world. The Company is touching

the peak of successes with its experience, research & development, Lates machining, the

best quality of raw-materials and excellent far-seeing management. The management of

Falcon Company maintains good relations and give due regards to business as well as

relationship.

The management of Falcon Company accepts all helping hands of the Customers, Sellers,

Retailers, Suppliers and the member of Falcon Company involved with manufacturing, who

has also helped Falcon Pumps to attain new height in the world. As a result of un-

interrupted Research work, an Age-Old C.I. Technology Pump used in India is replaced by

the latest Energy Efficient Stainless Steel Pump Technology developed by Falcon. It is a

much Efficient, Long Lived and Zero maintenance Technology as compared to old C.I.

Pump.

Falcon’s Managing Director Mr. DhirajSuvagiya has got honor to get UdyogBharati Award

&UdyogRatna Award from Government of India due to all the achievement of the company

and Continuous research in the technique of the Pump.

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2010-2011

There is neck to neck competition between many numbers of industrial units. In the era of 21st century. There are many companies like steel, mobile food, automobile pumps.

I have visited “FALCON SUBMERSIBLE PVT.LTD” and taken training from

2009-2010 have collected all the information from industry.

“FALCON SUBMERSIBLE PVT.LTD.” a professional and reputed organization

Engaged in manufacture and export of “FALCON” brand submersible pumps, submersible water pumps, submersibles pumps spares, open well pumps stainless steel submersible pumps. V-8,V-6,V-3,V-4,V-5,mono block pumps and self priming pumps.

Mr.DHIRAJLAL SUVAGIYA is the managing director of this unit.He gave me good guidance & support and information.

FALCON SUBMERSIBLE PVT.LTD. is situated in vavdi industrial zone,behind Hotel Krishna Park, N-H 8B at the Rajkot. It is a successful indusry in the field of pump sets. It provides many services to the society also.

MISSION AND VISION

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2010-2011

Mission :

To provide products national and international level at affordable prices.

They shall achieve through maintaining product and services that match world class

quality and standards.

To produce a product at highest standards of performance as qualitative level.

Continuous Improvement in product Feature

Vision :

To be the most cost effective manufacturer and distributors of submersibles on the

west coast of India. Falcon will concentrate on the development of quality products for the

Agriculture & Domestic Applications. falcon will promote in-house quality awareness

through training programs and workshops.

Our thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission

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COMPANY OVERVIEW

Name of the Company : “Falcon submersibles pvt. Ltd.

Registered Office (Address

of Factory)

: Survey No. 39/4, b/h. Hotel Krishna park,

Gondal road, NH-8b, Vavdi industrial

area,

Rajkot - 360004.

Bankers : Bank of Baroda

H.D.F.C. Bank

Auditors : RPCN CO.

Board of Directors : Mr. Dhirajlal l. suvagia

Mr. Kamalbhai r. sojitra

Mr. Mansukhbhai l. suvagia

Phone : 91-281-2370801 /2/3/4

Fax : 91-281-2374422

E-mail : Info@falconsubmersible. Com

Web : www. Falconsubmersible .com

Year of establishment : 28 th October 1994

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ORGANIZATION CHART

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The managing group of “FALCON SUBMERSIBLE PVT.LTD” is as follow:

Dhirajbhai suvagiya Managing director.

Kamalnayan sojitra Director-1.

Mansukh suvagiya Director-2.

Himansu kotyak Chief manager.

Nitin kakadiya Chief accountant

Komal oza H.R

Ashvin patel senior engineer

Shailesh kakadiya Purchage executive.

Paras shingala Service engineer.

Ketan vaghasiya senior manager in market.

N.R,Khan Area marketing manager.

Jitendra kancha Quality control engineer.

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CURRENT STATUS OF INDUSTRY

Today submersible companies’ status is very high, because of good demand of

submersible pumps. So, they are exporting in the demandable of country in Dubai, China,

Bangaladesh Pakistan. Company makes the submersible pumps in V3”, V4”, V5”,V6”,V8”.

R& D has high exploration in V8”. So it is very powerful of drawing water. So, there is

very large demand in Punjab, Utter Pradesh, Bihar, Madhya Pradesh, Rajasthan, Gujarat &

other state. Due to increase in demand of submersible Pumps Company expanding their

production capacity through build up new production department to meet future demand.

Falcon survey, in Indian village have most of the villager is not resources in water. So this

is major problem in our India. Falcon has decided launce of low cost of submersible pumps.

Submersible pumps is very helpful to farmers, because increase in crop.

Falcon has crossed the state boundary & spreading in all over nation. But it is also no

limited up to country level it has covered good market share of international market now

the Falcon working at a global level.

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FUTURE OF THE INDUSTRY

Future of industry is depends on present and past performance of an industry and also

market position is play important role in future of submersibles Industry. India having 70%

or more population is depending upon agriculture. So current future of industry is very

good because, in this modern era demand for submersibles is increases day by day so the

competition in this industry has also increased. The entry of multinational company makes

the more competition market for submersible industry

C o m p a n y i s p l a n n i n g f o r f u t u r e i n s u c h a m a n n e r t h a t i t c a n b e c o m e a m a r k e t l e a d e r i n i t s w o r k i n g s . T o s u r v i v e i n a c u t t h r o a t c o m p e t i t i o n i s a q u i t e d i f f i c u l t f o r e a c h a n d e v e r y e x i s t i n g o r g a n i z a t i o n i n t h e w o r l d a n d a s t h e p a r t o f a n i n d u s t r i a l s e c t o r , c h o i c e l a b o u r l a b o r a t o r i e s i s p l a n n i n g f o r f u t u r e d e v e l o p m e n t . T h e c o m p a n y i s l o o k i n g f o r i n c r e a s i n g t h e d o m e s t i c m a r k e t s h a r e b y w a y o f p r o v i d i n g b e t t e r q u a l i t y p r o d u c t s a t l e a s t c o s t .

Now a day’s new research and technology is used in Falcon Submersible. So, new

development is increase per day thus future of Falcon submersible is more than good.

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ACHIEVEMENTS

Falcon had received “UDYOG BHARATI AWARD” for excellent in

productivity & innovation as on July 26, 2004.

It had also received “UDYOG RATAN AWARD” For quality & management

by Dr. Bhishma Narayan Singh (Honorable former governor of Tamilnadu&

Assam).

Falcon is also accredited with ISO 9001-2000 company.

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2010-2011

GROWTH OF COMPANY

Falcon was started in 1994 at that time produce only Submersible Pumps & Motors. At that

time it produces 50 Submersible Pumps & 70 Motors per day.

In very small time falcon create good prestige in the market. In the recent falcon has

launched a quite new range of the Heavy Type Motors and the Pumps. The production &

marketing of Pumps has been started on 19th April 2004 with almost 3 models.

In the growth of the company huge support by strong marketing network has already

conquered the national & international market.

In the beginning of the year 2005 company launch Submersible Pumps energy saver in

different models. In between only 5 year falcon expanded the company.

In short, with observing following graph we measure falcon’s growth easily.

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SWOT ANALYSIS

SWOT analysis refers to the process of knowing strength and weakness internally and opportunities and threats externally.SWOT analysis is useful for framing strategies and tactics. This is more crucial aspect for all companies to draw out their stronger area as well as it’s weaker area and to match it with opportunities and threats which exist outside.

STRENGTH

Focus and investment in equipment, manpower and Time for R & D and design.

It has less price in comparison to other companies.

100% on time delivery and high standards of service.

Falcon’s employees are very much loyal in nature.

Falcon Pump sets run at very low voltage.

OPPORTUNITIES

Good opportunity for increase Exports.

Good support of Government because of noble cause done by Falcon.

Because of good effort of R&D department many new items will come in the market

which are in work in progress.

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WEAKNESS

Because of less production capacity compare to the demand, falcon has to reject big

order as result it has to suffer opportunity loss.

There is no any latest inventory control system so, sometimes because of wrong

estimation it has much or less stock than requirement.

Falcon’s finance department is follow traditional thinking so, there are chances of

block of money or not proper use of financial resources.

THREATS

Falcon’s network is good in India but out of India it is very limited so, competition

with global company is very tough for it.

Falcon use in production much human resource than machine as result it bear high

production cost than other multinational company.

Products Range

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As a result of un-interrupted research work, an old age C.I. technology pump used in India

is replaced by the latest Energy Efficient Stainless Steel Pump Technology developed by

Falcon. It is a much efficient, long life, and zero maintenance technology as compare to old

C.I. Pumps. By using such high standard new stainless steel technology pump, we have

saved the high valued electricity at large, which has provided much relief to our

development and agricultural country. Also by saving electricity Falcon is in a way,

performing duty towards National Service. The effort to save electricity has resulted Falcon

Pumps as an Energy Efficient approved by the Government of Gujarat. Manufacturing all

kind of Submersible Pump Sets, Horizontal/Vertical Openwell, Monoblok Pumps, and

Selfpriming Pumps with 21 series of pumps consisting more than 1300 models.

V-8 Submersible Pumpset

100% reliability in your agriculture irrigation. HP Range : 7.5 – 60 Head Range : 12 – 325 Maximum Discharge : 850 – 1750 LPM Dia. : 128mm OD

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V-6 Submersible Pumpset

HP Range : 3 – 25 Head Range : 25 – 400 Maximum Discharge : 550 – 1300 LPM Dia. : 142mm OD

.

V-6 Submersible SlimPumpset

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HP Range : 3 – 25 Head Range : 25 – 400 Maximum Discharge : 550 – 1300 LPM Dia. : 125mm OD

V-4 SubmersiblePumpse

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4” pumps for 100% reliability in your bore. HP Range : 0.5 – 1.25 Head Range : 20 – 122 Maximum Discharge : 20 – 55 LPM Dia. : 96mm OD

V-3Special SubmersiblePumpset

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3” pumps for 100% reliability in your bore. HP Range : 0.5 – 1.0 Head Range : 20 – 60 Maximum Discharge : 35 – 50 LPM Dia. : 73mm OD

Openwell Vertical Pumpset

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Multipurpose rugged & efficient well pumps from Falcon Submersible. HP Range : 0.5 – 10 Head Range : 30 – 50 Maximum Discharge : 300 – 1500 LPM

Openwell Horizontal Pumpsets

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Multipurpose rugged & efficient well pumps. where similar Machines & Similar Equipment is grouped together. It makes work easily.

Following are Objectives for arrange Plant Layout in Company

Minimization of Material handling

Easy Supervision & Control

Better Working Condition

Ideal time can be saved

Quality Product

Proper Utilization of area

High Turnover

Small operating cycle

Reduce the Transportation

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Distribution Cannel

Distribution channel is a link between producer and customer. It performs the work of

moving goods from producers to customers. It overcomes the time, place and possession

gaps from those who need them. Company should select proper channel for distribution so

goods or services can be easily reach into hands of its final users. The choice of

distribution Channel depends on nature of

Financial Resources

Business Tradition

Product

Choice of Management etc…

Marketing Channel

There are four levels of marketing channels:

0 – Level Channel

1 – Level Channel

2 – Level Channel

3 – Level Channel

Distribution Channel in Falcon

By offering a range of high performing Pump Sets and to provide stare-of-art services and

after sales support, company have efficient, well developed 1250+ Distributor/Dealer

network across the company. We have installed our Pumps in various industries, both for

residential as well as commercial purpose. Our company is also looking forward to further

increase our market reach and offer the products to clients in international market as well

as.

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Following Diagram saws, the Marketing channels uses by Falcon:

0 – Level

1 – Level

2 – Level

0 – Level Distribution Channel

1 – Level Distribution Channel

2 – Level Distribution Channel

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Manufacturer

Consumers

Consumers

Manufacturer

Dealer

Manufacturer

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Market Segmentation

Market Segmentation is an act of identifying the different Group of buyers. Market

segment consist of a large identifiable group within a market with similar wants, purchasing

power, geographical location buying attitudes or buying habits. Any auto industry is a best

example for marketing segmentation.

Segmentation is an approach midway between Mass Marketing & Individual Marketing.

Each segment buyers are assuming to be quite similar in wants & needs, yet no two buyers

are really alike.

Market Segmentation has mainly two types of approach:

Customer – Oriented

Product – Oriented

MarketSegmentation in Falcon

Company has Market Segment of Product Oriented Approach, which concentrate on

provide best qualitative product to the Customers. Company targeted mostly Rural Level

Customers as well asalsoUrban Level customers.Falcon divide market as like…

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Distributors

Dealer

Consumers

2010-2011

Pumpsets useful for deep land.

Pumpsets useful for desert land.

Pumpsets useful for fertile land.

Pumpsets useful for shallow land.

Product Life Cycle

Product Life Cycle is an important concept that applies product Items. A company has to

change differentiating & positioning strategy with changes in the product, market,

economic condition & competitors over time.

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The Product concept comes from the fact that a product sales volume & amount of

profit.Profit rise & fall at different stages of the product life cycle. Products required

different marketing, Financial, Manufacturing, Purchasing & Human resource strategies in

each of their life cycle.

Product Life Cycle has commonly four stages:

Introduction

A period of slow growth as the product is introduced in the marker. Here heavy

expenses incurred with product introduction.

Growth

A growth is a period of rapid market acceptance and profit improvement. Here, we

put V-4 and V-6 pumpset because it is standard item of company. In market it

demand is quite high than other model.

Maturity

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A maturity is a period of slowdown in sales growth and profit stabilized of decline

because of increase competition.

Decline

A decline is a period when sales show a down ward profits.

Product Life Cycle in Falcon

“Falcon” product have been glorified with ISO 9001 – 2000 QMS Certification, Since 1995

manufacturing a different submersible pumsets and they are in some product have in

growth stage while some are in maturity stage because they got National award for Quality

Products By Government of India. So in the Market to maintain Level of Product is most

important for the company.

Products of Falcon are in Growth Stage, Because of some reasons like…

Competition becomes high

Sales becomes high

Products are accepted by most potential buyers

Rapid Market Growth etc…

FalconNetwork

in India :-

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PLANT LAYOUT

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“Arrangement of Machines, Equipment & Tools with in A Factory so that each operation is

performed at the point of greatest convenience”

Proper Plant Layout is one of the keys of success in factory management. It signifies

arrangement of Machines, Work area, Transport, Storing of materials & Processing of

Different Part.

Plant Layout in Falcon

Company has Plant Layout Structure where similar Machines & Similar Equipment is

grouped together. It makes work easily.

Following are Objectives for arrange Plant Layout in Company

Minimization of Material handling

Easy Supervision & Control

Better Working Condition

Ideal time can be saved

Quality Product

Proper Utilization of area

High Turnover

Small operating cycle

Reduce the Transportation

PLANT LAYOUT CHART

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Take motor body for assembly

Fit lower housing

Fit thrust bearing

Fit rotor

Fit (Upper housing)

Fit impeller & nut

Fit casing

Foundation stand fit

Fit PCD cup in lower housing

Check play & free running

Ok open well assembly

Testing & major test

Numbering

Cleaning & painting

Packing

Dispatch

Plant Location

Plant Location is the process of determining a geographical site for a firm’s operations

achieving maximum operating economy & Effectiveness.

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“Location ultimately has the power to make or break a Company’s business strategy.” – Mc

Kinsey

Factors of Exact Site

Regional Location Decision

Selection of Community

Selection of Exact Site

Plant Location in Falcon

These are some factors affecting in selection of proper Plan Location

Choice of Exact Site

Suburban Area

Regional Location Decision

Availability of Power

Transportation Facilities

Government Policies

Selection of Community

Availability of Labor

Availability of Fire Fighting Facilities

Local Taxes & Restriction

Government Policies

Near to Urban Area

Selection of Exact Site

Area of Land Available, topography & Cost of Land

Community attitude

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LOCATION CHART OF FALCON

time Keeping System

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In today’s Competitive world time becomes more important then money in any

organization. Time Keeping is necessary top maintain discipline & to get maximum &

regular working force of personnel.

The Time Keeping System helps to identify timing behavior of the employees as well as

workers. The company should select that time keeping system which is most suitable to

organization. It is system to note time when employees arrive at industry and left it.

Timing System of FALCON

Working HoursWorking Hours 10 hours

ShiftShift 2 shifts

Workers TimeWorkers Time 8:30 a.m. to 1:00 p.m. &2:00 p.m. to 7:00 p.m.

Brake TimeBrake Time 1:00 p.m. to 2:00p.m.

Staff TimeStaff Time 9:00 a.m. to1:00 p.m. &2:00 p.m. to 7:00 p.m.

.

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Grievance Management

According to Beach – “Grievance is any dissatisfaction or feeling in justice in connection

with one’s employment situation. i.e. bought to the attention of the management.”

In a simple world, Grievance is conflicts or misunderstanding within organization. If it

cannot solve during certain time, it affects efficiency, effectiveness productivity and

harmony ofthe company.

Cause of Grievance

Poor relationship with higher authority

Tight Production Standard

Dissatisfaction

Overtime

Transfer

Streak, Rules & Regulations

Grievance Management in Falcon

Fortunately in Falcon there is not found any type of above causes. Company’s employees

are very satisfied with company. There are very rare cases of rising conflicts because of

well management and educated staff. However, If problem arise then H.R. Manager solve

the problem. Problem solve in three steps. 1. Warning letter given to person, however not

improve behavior then 2. Give Memo and last if not improve then 3. Resignat

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Finance is considered as the “Life Blood of the Business “without finance no business

activity is possible. So for and organization it is must have a large amount of finance and

for this it should have finance department.

Finance management is the custodies of corporate funds. It has to plan, organize and

control the finance of the enterprise. The chief duties of financial management are,

however, planning and control of corporate the finances.

Finance management has to play very important i.e. first to manage financial resource, then

to distribute that finance among the various department according to their need and lastly

has to check whether it is used in right way or not. Thus, only finance gathering has not

become the goal or aim of finance management but is holds a key position in top

management of companies.

Finance department manage finance deferent types like…

Capital Structure

Financial Structure

Source of finance

Working capital management

Inventories management

Cash management

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Manpower Structure of Finance Department

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MANAGINGDIRECTOR

EXECUTIVE DIRECTOR

DIRECTO

ACCOUNT MANAGER

DIRECTO

CLERK

SR. ACCOUNTANT

2010-2011

Company use Equity share in its capital structure

because in this types of capital structure According to Gersternberg “Capital Structure

refers to the make up of firm’s Capitalization” In other words, it represents mix of different

sources of long-term funds in the total Capitalization of the Company.

Pattern of Capital Structure

Capital Structure with Equity Shares only.

Capital Structure with both Equity Shares & Preference Shares.

Capital Structure with Equity Shares & Debentures.

Capital Structure with Equity Shares, Preference Shares & Debentures.

Falcon has capital structure with Equity that not necessary for company to pay dividend

every year.

Particulars Amt (Rs)

Share capital

+ Reserve & surplus

+ Secured loan

+ Unsecured loan

9,80,000.00

3,47,657.85

1,44,49,108.99

1,10,97,200.52

TOTAL 2,68,73,967.36

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Financial Structure refers to the way the Firm’s assets are financed Financial Structure

Planning is an important executive function of Finance department, Financial Structure is a

Plan for Capital Investment of the company. Three things should be consider while

Financial Structure is planned:

Establishment of the Business

Development of the Business

Expansion of the Business

Financial Structure becomes helpful to the company or Firm While Manager Plan for

Capital Investment. Financial Structure includes both Long term as well as Short term of

fund.

Long run i.e. for Fixed Assets

Short run i.e. for Working Capital

Financial Structure in Falcon

Long run Financial Structure at the end of the year 2009 – 10

Particulars Amt. as on

31-3-2010

Fixed Assets 21,364,182.01

Depreciation 2,132,705.75

Net Fixed Assets 19,231,476.26

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Short run Financial Structure at the end of the year 2009 – 10

Particulars Amt. as on

31-3-2010

Current Assets 4,60,45,596.71

Less: Current Liabilities 2,83,69,801.00

Net Working Capital 1,76,75,795.71

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Source of Finance

Finance is Life blood of any Business. The Business can’t run efficiently if they haven’t

enough amounts of finance. The company have need finance in different time different

amount and they have many source of finance for fulfill its need. The decision about

source of finance is a tuff task of a company. The source from which a business meets its

financial requirements can be classified as follows:

Classification of Sources of Finance

o Security Financing

Shares & Debentures

o Internal Financing

Depreciation Fund

Return Earning Fund

o Loan Financing

Short – term Loans

Long – term Loans

Source of Finance in Falcon

Classification of Sources of Finance at the end of the Year 2009 – 10

Security Financing

Sources Amt. (Rs.)

Own Capital 9,80,000

Total Security Financing 9,80,000

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Internal Financing

Internal Sources Amt. (Rs.)

Depreciation Fund ----

Retained Earning 10,383,962.46

Total Internal Financing 10,383,962.46

Loan Financing

Sources Amt. (Rs.)

Short—term Loans 7,846,679

Long—term Loans 53,803,085

Total Loan Financing 61,649,764

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Working Capital Management is the Capital Requirement of a business. It is required for

the Period when there is a time gap between the sales of goods and Receipt of each.

In case adequate working capital is not available of this period, the Company will not be in

a position to sustain the sales since it may not be in a Position to purchase raw material, pay

wages & other expenses required for Manufacturing the foods to be sold & without sales

company cannot earns Sufficient profit & Finally it affects reputation of a company. So

management of working capital is necessary & primary need of a company.

Concept of Working Capital

There are mainly two concept of working capital:

Gross Working Capital : It refers to the firm’s total investment in total Current or

circulation of assets.

Net Working Capital : It is the excess of current assets over current

Liabilities. It is that portion of firm’s current assets which is financed by Long-term

funds.

Working Capital Management in Falcon

o Concept of Working Capital pending

Gross Working Capital: Rs. 46,075,596.71

Net Working Capital: Rs. 17,675,795.71

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Particular Amount (Rs.)

Current Assets

Inventories 17,796,368.98

Sundry Debtors 18,852,172.00

Cash 3,779,108.73

Loan & Advances 5,617,947.00

(i) 46,045,596.71

Current Liabilities

Liabilities 26,977,320.00

Provisions 1,392,481.00

(ii) 28,369,801.00

Net Working Capital (i) –(ii) 17,675,795.71

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Cash Management

Cash is a life blood of any types of the Business. It is very important for any kind of

business to run successfully. Maintain of that cash is also one of the very important tasks

of company.

Successful cash management is the half success of the organization. And that is the duty of

the finance department and finance manager to provide adequate cash to all segment of the

Organization. He has also to ensure that no funds are blocked in idle cash since this will

involve cost on terms of interest to the company.

Company have not every time same situation in finance some more money for its needed

and some time shortage of money but when more money at that time invest it in some

where and when its need received it and fulfill company need that is cash management and

that can help to company to preservation of company reputation.

A sound cash management scheme, therefore, maintains the balance between objectives of

liquidity and cost.

Cash Management in Falcon

Motive for holding cash in this company

Transaction Motive: For meet routine business payments

Precautionary Motive: For meet unexpected business cash needs

Compensation Motive: For keep minimum amt with bank to get benefits

Provided by bank for free of charge services.

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Capital required for a business can be classified under two main categories via,

1)     Fixed Capital

2)     Working Capital

        Every business needs funds for two purposes for its establishment and to carry out its

day- to-day operations. Long terms funds are required to create production facilities

through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments in

these assets represent that part of firm’s capital which is blocked on permanent or fixed

basis and is called fixed capital. Funds are also needed for short-term purposes for the

purchase of raw material, payment of wages and other day – to- day expenses etc.

These funds are known as working capital. In simple words, working capital refers to

that part of the firm’s capital which is required for financing short- term or current assets

such as cash, marketable securities, debtors & inventories. Funds, thus, invested in current

assts keep revolving fast and are being constantly converted in to cash and this cash flows

out again in exchange for other current assets. Hence, it is also known as revolving or

circulating capital or short term capital.

CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1.     Gross working capital

2.     Net working capital

The gross working capital is the capital invested in the total current assets of the

enterprises current assets are those

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Assets which can convert in to cash within a short period normally one

accounting year

Statement of Net Working Capital at the end of the Year 2009 – 10

Particular Amount (Rs.)

Current Assets

Inventories 17,796,368.98

Sundry Debtors 18,852,172.00

Cash 3,779,108.73

Loan & Advances 5,617,947.00

(i) 46,045,596.71

Current Liabilities

Liabilities 26,977,320.00

Provisions 1,392,481.00

(ii) 28,369,801.00

Net Working Capital (i) –(ii) 17,675,795.71

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Cash Management

Cash is a life blood of any types of the Business. It is very important for any kind of

business to run successfully. Maintain of that cash is also one of the very important tasks

of company.

Successful cash management is the half success of the organize

CONSTITUENTS OF CURRENT ASSETS

1)     Cash in hand and cash at bank

2)     Bills receivables

3)     Sundry debtors

4)     Short term loans and advances.

5)     Inventories of stock as:

a.      Raw material

b.     Work in process

c.     Stores and spares

d.     Finished goods

6. Temporary investment of surplus funds.

7. Prepaid expenses

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8. Accrued incomes.

9. Marketable securities.

In a narrow sense, the term working capital refers to the net working. Net

working capital is the excess of current assets over current liability, or, say:

NET WORKING CAPITAL = CURRENT ASSETS – CURRENT

LIABILITIES.

Net working capital can be positive or negative. When the current assets

exceeds the current liabilities are more than the current assets. Current

liabilities are those liabilities, which are intended to be paid in the ordinary

course of business within a short period of normally one accounting year out

of the current assts or the income business.

CONSTITUENTS OF CURRENT LIABILITIES

1.     Accrued or outstanding expenses.

2.     Short term loans, advances and deposits.

3.     Dividends payable.

4.     Bank overdraft.

5.     Provision for taxation , if it does not amt. to app. Of profit.

6.     Bills payable.

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7.     Sundry creditors.

The gross working capital concept is financial or going concern concept whereas net

working capital is an accounting concept of working capital. Both the concepts have their

own merits.

The gross concept is sometimes preferred to the concept of working capital for the

following reasons:

1.     It enables the enterprise to provide correct amount of working capital at

correct time.

2.     Every management is more interested in total current assets with which it has

to operate then the source from where it is made available.

3.     It take into consideration of the fact every increase in the funds of the

enterprise would increase its working capital.

4.     This concept is also useful in determining the rate of return on investments in

working capital. The net working capital concept, however, is also important

for following reasons:

        It is qualitative concept, which indicates the firm’s ability to meet to

its operating expenses and short-term liabilities.

        IT indicates the margin of protection available to the short term

creditors.

        It is an indicator of the financial soundness of enterprises.

        It suggests the need of financing a part of working capital

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requirement out of the permanent sources of funds. 

CLASSIFICATION OF WORKING CAPITAL

Working capital may be classified in to ways:

o       On the basis of concept.

o        On the basis of time.

On the basis of concept working capital can be classified as gross working

capital and net working capital. On the basis of time, working capital may be

classified as:

     Permanent or fixed working capital.

     Temporary or variable working capital

PERMANENT OR FIXED WORKING CAPITAL

Permanent or fixed working capital is minimum amount which is required to ensure

effective utilization of fixed facilities and for maintaining the circulation of current assets.

Every firm has to maintain a minimum level of raw material, work- in-process, finished

goods and cash balance. This minimum level of current assts is called permanent or fixed

working capital as this part of working is permanently blocked in current assets. As the

business grow the requirements of working capital also increases due to increase in current

assets.

TEMPORARY OR VARIABLE WORKING CAPITAL

Temporary or variable working capital is the amount of working capital which is required

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to meet the seasonal demands and some special exigencies. Variable working capital can

further be classified as seasonal working capital and special working capital. The capital

required to meet the seasonal need of the enterprise is called seasonal working capital.

Special working capital is that part of working capital which is required to meet special

exigencies such as launching of extensive marketing for conducting research, etc.

Temporary working capital differs from permanent working capital in the sense that is

required for short periods and cannot be permanently employed gainfully in the business.

    SOLVENCY OF THE BUSINESS: Adequate working capital helps in

maintaining the solvency of the business by providing uninterrupted of

production.

     Goodwill: Sufficient amount of working capital enables a firm to make

prompt payments and makes and maintain the goodwill.

     Easy loans: Adequate working capital leads to high solvency and credit

standing can arrange loans from banks and other on easy and favorable terms.

     Cash Discounts: Adequate working capital also enables a concern to avail

cash discounts on the purchases and hence reduces cost.

     Regular Supply of Raw Material: Sufficient working capital ensures regular

supply of raw material and continuous production.

     Regular Payment Of Salaries, Wages And Other Day TO Day Commitments:

It leads to the satisfaction of the employees and raises the morale of its

employees, increases their efficiency, reduces wastage and costs and enhances

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production and profits.

     Exploitation Of Favorable Market     Conditions: If a firm is having adequate

working capital then it can exploit the favorable market conditions such as

purchasing its requirements in bulk when the prices are lower and holdings its

inventories for higher prices.

     Ability To Face Crises: A concern can face the situation during the

depression.

     Quick And Regular Return On Investments: Sufficient working capital

enables a concern to pay quick and regular of dividends to its investors and

gains confidence of the investors and can raise more funds in future.

     High Morale: Adequate working capital brings an environment of securities,

confidence, high morale which results in overall efficiency in a business.

EXCESS OR INADEQUATE WORKING CAPITAL

Every business concern should have adequate amount of working capital to run its

business operations. It should have neither redundant or excess working capital

nor inadequate nor shortages of working capital. Both excess as well as short

working capital positions are bad for any business. However, it is the inadequate

working capital which is more dangerous from the point of view of the firm.

DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKING

CAPITAL

1.     Excessive working capital means ideal funds which earn no profit for the

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firm and business cannot earn the required rate of return on its investments.

2.     Redundant working capital leads to unnecessary purchasing and

accumulation of inventories.

3.     Excessive working capital implies excessive debtors and defective credit

policy which causes higher incidence of bad debts.

4.     It may reduce the overall efficiency of the business.

5.     If a firm is having excessive working capital then the relations with banks

and other financial institution may not be maintained.

6.     Due to lower rate of return n investments, the values of shares may also

fall.

7.     The redundant working capital gives rise to speculative transactions

DISADVANTAGES OF INADEQUATE WORKING CAPITAL

Every business needs some amounts of working capital. The need for working capital arises

due to the time gap between production and realization of cash from sales. There is an

operating cycle involved in sales and realization of cash. There are time gaps in purchase of

raw material and production; production and sales; and realization of cash.

Thus working capital is needed for the following purposes:

       For the purpose of raw material, components and spares.

       To pay wages and salaries

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       To incur day-to-day expenses and overload costs such as office expenses.

       To meet the selling costs as packing, advertising, etc.

       To provide credit facilities to the customer.

       To maintain the inventories of the raw material, work-in-progress, stores

and spares and finished stock.

For studying the need of working capital in a business, one has to study the

business under varying circumstances such as a new concern requires a lot of

funds to meet its initial requirements such as promotion and formation etc. These

expenses are called preliminary expenses and are capitalized. The amount needed

for working capital depends upon the size of the company and ambitions of its

promoters. Greater the size of the business unit, generally larger will be the

requirements of the working capital.

The requirement of the working capital goes on increasing with the growth and

expensing of the business till it gains maturity. At maturity the amount of working

capital required is called normal working capital.

There are others factors also influence the need of working capital in a business.

FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS

1.  NATURE OF BUSINESS: The requirements of working is very limited in

public utility undertakings such as electricity, water supply and railways

because they offer cash sale only and supply services not products, and no

funds are tied up in inventories and receivables. On the other hand the

trading and financial firms requires less investment in fixed assets but have

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to invest large amt. of working capital along with fixed investments.

2.  SIZE OF THE BUSINESS: Greater the size of the business, greater is the

requirement of working capital.

3.  PRODUCTION POLICY: If the policy is to keep production steady by

accumulating inventories it will require higher working capital.

4.  LENTH OF PRDUCTION CYCLE: The longer the manufacturing time the

raw material and other supplies have to be carried for a longer in the

process with progressive increment of labor and service costs before the

final product is obtained. So working capital is directly proportional to the

length of the manufacturing process.

5.  SEASONALS VARIATIONS: Generally, during the busy season, a firm

requires larger working capital than in slack season.

6.  WORKING CAPITAL CYCLE: The speed with which the working cycle

completes one cycle determines the requirements of working capital.

Longer the cycle larger is the requirement of working capital.

                           DEBTORS

CASH                                 FINISHED GOODS

RAW MATERIAL                        WORK IN PROGRESS

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7.     RATE OF STOCK TURNOVER: There is an inverse co-relationship

between the question of working capital and the velocity or speed with

which the sales are affected. A firm having a high rate of stock turnover

wuill needs lower amt. of working capital as compared to a firm having a

low rate of turnover.

8.     CREDIT POLICY: A concern that purchases its requirements on credit

and sales its product / services on cash requires lesser amt. of working

capital and vice-versa.

9.     BUSINESS CYCLE: In period of boom, when the business is prosperous,

there is need for larger amt. of working capital due to rise in sales, rise in

prices, optimistic expansion of business, etc. On the contrary in time of

depression, the business contracts, sales decline, difficulties are faced in

collection from debtor and the firm may have a large amt. of working

capital.

10. RATE OF GROWTH OF BUSINESS: In faster growing concern, we shall

require large amt. of working capital.

11. EARNING CAPACITY AND DIVIDEND POLICY: Some firms have

more earning capacity than other due to quality of their products, monopoly

conditions, etc. Such firms may generate cash profits from operations and

contribute to their working capital. The dividend policy also affects the

requirement of working capital. A firm maintaining a steady high rate of

cash dividend irrespective of its profits needs working capital than the firm

that retains larger part of its profits and does not pay so high rate of cash

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dividend.

12. PRICE LEVEL CHANGES: Changes in the price level also affect the

working capital requirements. Generally rise in prices leads to increase in

working capital.

Others FACTORS: These are:

     Operating efficiency.

     Management ability.

     Irregularities of supply.

     Import policy.

     Asset structure.

     Importance of labor.

     Banking facilities, etc.

MANAGEMENT OF WORKING CAPITAL

Management of working capital is concerned with the problem that arises in

attempting to manage the current assets, current liabilities. The basic goal of

working capital management is to manage the current assets and current

liabilities of a firm in such a way that a satisfactory level of working capital is

maintained, i.e. it is neither adequate nor excessive as both the situations are

bad for any firm. There should be no shortage of funds and also no working

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capital should be ideal. WORKING CAPITAL MANAGEMENT POLICES of

a firm has a great on its probability, liquidity and structural health of the

organization. So working capital management is three dimensional in nature as

1.     It concerned with the formulation of policies with regard to profitability,

liquidity and risk.

2.     It is concerned with the decision about the composition and level of

current assets.

3.     It is concerned with the decision about the composition and level of

current liabilities.

  WORKING CAPITAL ANALYSIS

As we know working capital is the life blood and the centre of a business.

Adequate amount of working capital is very much essential for the smooth

running of the business. And the most important part is the efficient

management of working capital in right time. The liquidity position of the firm

is totally effected by the management of working capital. So, a study of

changes in the uses and sources of working capital is necessary to evaluate the

efficiency with which the working capital is employed in a business. This

involves the need of working capital analysis.

The analysis of working capital can be conducted through a number of

devices, such as:

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1.     Ratio analysis.

2.     Fund flow analysis.

3.     Budgeting.

1.    RATIO ANALYSIS

A ratio is a simple arithmetical expression one number to another. The

technique of ratio analysis can be employed for measuring short-term liquidity

or working capital position of a firm. The following ratios can be calculated

for these purposes:

1. Current ratio.

2. Quick ratio

3.  Absolute liquid ratio

4.  Inventory turnover.

5.  Receivables turnover.

6.  Payable turnover ratio.

7.  Working capital turnover ratio.

8.  Working capital leverage

9.  Ratio of current liabilities to tangible net worth.

2.    FUND FLOW ANALYSIS

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Fund flow analysis is a technical device designated to the study the source

from which additional funds were derived and the use to which these sources

were put. The fund flow analysis consists of:

a.      Preparing schedule of changes of working capital

b.     Statement of sources and application of funds.

It is an effective management tool to study the changes in financial position

(working capital) business enterprise between beginning and ending of the

financial dates.

3.    WORKING CAPITAL BUDGET

A budget is a financial and / or quantitative expression of business plans and

polices to be pursued in the future period time. Working capital budget as a

part of the total budge ting process of a business is prepared estimating future

long term and short term working capital needs and sources to finance them,

and then comparing the budgeted figures with actual performance for

calculating the variances.

 .

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Research design simply means a search for facts – answer to questions and solutions to problems. A research design is a purposeful scheme of action proposed to be covered out in a sequence during the process of research focusing on the problem to be tackled. It is a guideline for the researcher to enable him to keep track of his actions and to know whether he was moving in the right direction in order to achieve his goal. The design has a specific presentation of the various steps in the process of the research.

The research includes both primary and secondary data. The information from the respondent’s is collected through questionnaire. The primary data was collected form employees of the PCCPL and secondary data is collected from the books. The sample size is 60 and samples are selected on the basis of convenient from every department of the company. Questions are framed in such a way that the answers reflect the ideas and thoughts of the respondents with regard to level of satisfaction. For job related factors likert scale (five rating scale) is used in which respondents are required to show their level of satisfaction from 1 to 5 (1= Strongly Agree, 2= Agree, 3= Neutral, 4= Disagree, 5=Strongly Disagree) and for personal factor simple category scale is used and respondents are required to tick at the appropriate box. Some facts revealed in the study are bases on personal observations also Tools of interpretation and analysis

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Research Methodology:

I am student of M.B.A, preparing a project on training and developments in FALCON unit at RAJKOT also get the views of employees of FALCON about training in there company.

Objective:

The main objective for survey of employees about training and development is to study that how FALCON gives training to their employees and to see that are they satisfied with training provided to them. The main purpose of this project is to find How to give training so that they are satisfied.

Research method:

My sample size for the survey is 200 and it includes respondent who belongs to and related to FALCON co-operative society.

Limitation:

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The information provided about training in FALCON is from the employees point of view because they filled this questionnaire and from the internet so the information is not perfect reliable.

METHOD OF DATA COLLECTION

The interrogation/ communications method is used where the

surveyor questions the customers by personal means.

Also the other main source of data used are :

Primary Source: In the form of Questionnaires (APPENDIX I)

Secondary Source: In the form of articles of periodicals, organizations data achieves & reports prior studies, lecture by executive of FALCON

Type of Questionnaire :

The questionnaire designed contained:

Dichotomous questions

Multiple-choice, close-ended questions

Thus, it was easy for the respondents to select from the alternatives, the one that suits them

the best. The data collected from the respondents were then compiled into useful

information, classified and tabulated for analysis and interpretation with the help of

statistical tools.

The methodology, I have adopted for my study is the various tools, which basically analyze

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critically financial position of to the organization:

I. COMMON-SIZE P/L A/C

II.    COMMON-SIZE BALANCE SHEET

III.COMPARTIVE P/L A/C

IV.    COMPARTIVE BALANCE SHEET

V.     TREND ANALYSIS

VI.      RATIO ANALYSIS

The above parameters are used for critical analysis of financial position.  With the evaluation of each component, the financial position from different angles is tried to be presented in well and systematic manner. By critical analysis with the help of different tools, it becomes clear how the financial manager handles the finance matters in profitable manner in the critical challenging atmosphere, the recommendation are made which would suggest the organization in formulation of a healthy and strong position financially with proper management system.

I sincerely hope, through the evaluation of various percentage, ratios and comparative analysis, the organization would be able to conquer its in efficiencies and makes the desired changes.

ANALYSIS OF FINANCIAL STATEMENTS

FINANCIAL STATEMENTS:

Financial statement is a collection of data organized according to logical and consistent accounting procedure to convey an under-standing of some financial aspects of a business firm. It may show position at a moment in time, as in the case of balance sheet or may

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reveal a series of activities over a given period of time, as in the case of an income statement. Thus, the term ‘financial statements’ generally refers to the two statements

(1) The position statement or Balance sheet.

(2) The income statement or the profit and loss Account.

OBJECTIVES OF FINANCIAL STATEMENTS:

According to accounting Principal Board of America (APB) states

The following objectives of financial statements: -

1. To provide reliable financial information about economic resources and obligation of a business firm.

2. To provide other needed information about charges in such economic resources and obligation.

3. To provide reliable information about change in net resources (recourses less obligations) missing out of business activities.

4. To provide financial information that assets in estimating the learning potential of the business.

LIMITATIONS OF FINANCIAL STATEMENTS:

Though financial statements are relevant and useful for a concern, still they do not present a final picture a final picture of a concern. The utility of these statements is dependent upon a number of factors. The analysis and interpretation of these statements must be done carefully otherwise misleading conclusion may be drawn.

Financial statements suffer from the following limitations: -

1. Financial statements do not given a final picture of the concern. The data given in these statements is only approximate. The actual value can only be determined when the business is sold or liquidated.

2. Financial statements have been prepared for different accounting periods, generally one year, during the life of a concern. The costs and incomes are apportioned to different periods with a view to determine profits etc. The allocation of expenses and income depends upon the personal judgment of the accountant. The existence of contingent assets

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and liabilities also make the statements imprecise. So financial statement are at the most interim reports rather than the final picture of the firm.

3. The financial statements are expressed in monetary value, so they appear to give final and accurate position. The value of fixed assets in the balance sheet neither represent the value for which fixed assets can be sold nor the amount which will be required to replace these assets. The balance sheet is prepared on the presumption of a going concern. The concern is expected to continue in future. So fixed assets are shown at cost less accumulated deprecation. Moreover, there are certain assets in the balance sheet which will realize nothing at the time of liquidation but they are shown in the balance sheets.

4. The financial statements are prepared on the basis of historical costs Or original costs. The value of assets decreases with the passage of time current price changes are not taken into account. The statement are not prepared with the keeping in view the economic conditions. the balance sheet loses the significance of being an index of current economics realities. Similarly, the profitability shown by the income statements may be represent the earning capacity of the concern.

5. There are certain factors which have a bearing on the financial position and operating result of the business but they do not become a part of these statements because they cannot be measured in monetary terms. The basic limitation of the traditional financial statements comprising the balance sheet, profit & loss A/c is that they do not give all the information regarding the financial operation of the firm. Nevertheless, they provide some extremely useful information to the extent the balance sheet mirrors the financial position on a particular data in lines of the structure of assets, liabilities etc. and the profit & loss A/c shows the result of operation during a certain period in terms revenue obtained and cost incurred during the year. Thus, the financial position and operation of the firm.

 Research & Development

For survive in today’s Competitive Era Company has to give some extra or more then

competitors. Company has to prove itself betterthenothers in the Market.

Company tries to give more benefits to their customer so company has to make constant

implement in its Product. As well as changes Technology, they have to change their

Strategy and adopted technological changes in the product.

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Research & Development in Falcon

Falcon is rapidly growing company. Because of its Research & Development Department,

they got tremendous success in the submersible pumpset Industry. In the Research &

Development Department, they work actively for research in different types of products.

Now a day’sTechnology changes rapidly so,Falcon try to research of the product and

develop a better product with New Implemented Technology.R & D department do changes

in item on the basis of marketing data and customer preference. They use AUTO-CAD

software for design products. Mostly, this department issue new model of product in

duration of 1 to 2 months.

Achievement of R & D Department

Falcon is first inventor of 90 feet head per stage in V-8 pumpin India.

Falcon is also first inventor of 50 feet head per stage in V-6 pumpin India.

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1.Who is the fina

Profitability

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The main Objective of every company is to earn Maximum Profit. Profit is in central of

every activity, every decision so every economic activity is starts to get some return i.e.

Profit. Profit is the excess amount of income on expenditure. Generally, Falcon’s profit

margin ratio is 10 % to 15 %.

Types of Profit:

Gross Profit

Net Profit

Gross Profit

Gross Profit saws the amount of sales of goods after decrease amount of purchase of

goods.

Gross Profit in Falcon

Gross Profit = Net Sales – Purchase

= 64,791,252.33 – 50,177,636.31

= 14,613,616.02

Net Profit

Net Profit saws amount of gross profit decrease amount of expenses of manufacturing

the Products.

Net Profit in Falcon

Net Profit = Gross Profit – Expenses

= 14,613,616.02 – 10,142,846.29

= 44,70,769.73

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Net Profit Ratio

It indicates net margin earned on sales of goods. It helps in determining the efficiency with

transactions of the business is being managed.

Net Profit Ratio in Falcon

Net ProfitNet Profit Ratio = ---------------- X 100

Net Sales

44,70,769.73

= ------------------X 100

64,791,252.33

= 6.90 %

Current Ratio

It indicates the firm’s commitment to meet its short-term liabilities. Current Assets and

Liabilities are converted into cash within a year.

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Current Ration in Falcon

Current Assets

Current Ratio = ---------------------

Current Liability

46,045,596.71

= ---------------------

28,369,801.00

= 1.62 : 1

Debt Ratio

Debt Ratio in Falcon

Sales

Debt Ratio = ---------------------

Debtor

64,791,252.33

= ---------------------

18,852,172.00

= 3.44:1

Accounting Policies

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Following are some of accounting policies, which are used by the company Falcon

Submersible Pvt. Ltd.

Method of Accounting

Accounts are maintained as per accrual system of accounting, under the historical cost

convention.

o Fixed Assets

Fixed assets are stated at cost. The cost of an asset comprised its purchase price and

directly attributable cost of bringing the assets to working condition for its intended

use. Expenditure for additions and improvements are capitalized as and when

incurred.

o Depreciation

Depreciation for the year on all assets is provided for on written down value method

at the rate and in the manner specified in schedule XIV to the Companies Act, 1956.

o Technical know-how Fees

Technical know-how fees are depreciated @ 20% & it is shown in Schedule 6 of

Fixed Assets.

o Inventories

1. Finished goods are valued at lower of cost of sales or net realizable value. Cost is

arrived at by including the excise duty payable on such goods.

2. Raw Materials, Components and Spares are valued at lower of cost of net

realizable value.

o Sales

Sales are shown net of excise duty & sales Tax.

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o Excise Duty

Excise duty on Finished Goods in stock at year end is shown as a liability.

o Investments

All Investments are held for long-term and are valued and shown at cost.

o Taxes on Income

Provision for current tax is made in term of the provisions of the income tax Act,

1961. Deferred tax on account of timing difference between taxable and accounting

income is provided considering the tax rates and tax law enacted or substantively

enacted by balance Sheet Date, Swin accordance with Accounting Standard no. 22 of

the Institute of Chartered Accountants of India.

o Audit

Company do statutory audit at the end of accounting year. It also do audit like VAT

audit, EXCISE audit, Internal audit at the end of month, Vendor audit etc..

Pricing Policy

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“The payment made for buying goods & services is said to be price.” It is maggot

determinant of buyer choice. Price remains one of the most important element determining

company market share & profitability. It is one of the most flexible elements.

Pricing Policy in Falcon

Generally, price of product decided by marketing department but in falcon price decided by

R & D department. Companies set a price of the first time when it develops a new product,

when it introduces its regular product into a new distribution channel.

Pricing Objective

Company can peruse any of five objectives through pricing:

Maximum Current Profit

Maximum sales Growth

Survival

Product Quality Leadership

Here, Falcon follows Product Quality Leadership.

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Company follows this Procedure for their Pricing Policy

Cost of Manufacturing

+

Overheads

+

Profit Margin

+

Excise Duty

+

Transportation Charges

+

Distributor’s Commission

+

12% Sales Taxes

+

Octroi

=

Maximum Retail Price

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Generally, Price of different product are starting from Rs. 7,000 to Rs. 50,000depends on

Model and Transportation and other duties are separate as per States.

Competition

“Without Competitor You Can Never Win.”

Competitor is one of the Important of the Company’s success. Without Competition, one

cannot know about their Qualities and limitations so company knows how to face this

obstacle then it can ensure its survival. While company wants to enter in any business, it

has to face first its competitor.

“Falcon submersibles pvt. ltd..” has many competitors such as,

KEB

Ring-man pvt. Ltd.

Texmo industry

Sabar

Lubi ltd.

Aroma high-tech ltd

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COMPANY CORE STRENGTH

“FALCON SUBMERSIBLE PVT.LYD”is professional and reputed organization

Managed by the dynamic young professional with zeal and commitment to the

Customer satisfaction. The core strength of company is following.

Technically qualified and experienced professional team.

Focus and investment in equipment, manpower and time

For research and development.

Continuous skill enhancement and improvement through

Training of manpower associated.

100%and time delivery and high standard of service.

Ethical and fair in there dealing with one and all.

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GOOD NEWS FOR FARMER FROM CO.

Specialties of 21st century falcon pump.

Only falcon pumps are made from ss body with hydraulic.

Efficient design compare to other conventional CI pump.

More output by 30% to 40% Compare to old designed CIpump.

35% saving of electricity compare to conventional CIpump.

Uniform output for many years without any type of failure.

Very long life even in salty and sandy water.

Give 16 hours output from the 8 hours availability of electricity.

Falcon pump sets run at very low voltage (100 to 200) volt.

Age in there phase.

25% diesel saving in case of genet/alternator.

Falcon premium product long lasting till next generation.

100% reward of customers money.

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PERFOMANCE OF THE COMPANY

YEAR 2002 2003 2004 2005 2006 2007 201O

No.of model

450 525 600 650 750 811 1100

Workers 75 90 110 125 135 155 300

Factory area

5000s.q.f.t

5000s.q.f.t

5000.s.q.f.t

62ooos.q.f.t

62000s.q.f.t

75oo0s.q.f.t

75000s.q.f.t

Production capacity

11oo pump set p.m

1500 pump set p.m

1800 pump set p.m

2100 pump set p.m

24oo pump set p.m

3000 pump set p.m

7500 pump set p.m

Market area

Guj.& 6states

Guj.&8 states govt. supply

Guj.& 10 states export

Guj. &12 states export

Guj. &14 states export

Guj.& 15 states export

All India export

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Findings

Falcon follows Behavioral HR concept.

Falcon focus on quality of product than price.

Falcon is initial stage in international business.

Falcon does not forget their customer even if he purchase one times. Company

always calls in annual function. So, this maintain harmony between customer and

company.

Falcon is first inventor of 90 feet head per stage in V-8 pump and 50 feet head per

stage in V-6 pump in India.

Falcon is running by excellent management system, experienced administrator and

skilful Engineers.

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Suggestion

During my training session I found that falcon use much human resources than

autonomies machinery in production process may be as result it not increase its

production capacity.

Falcon use machinery in production like lathe machine, tool machine etc. not use

highly autonomies machine like CNC, VMC etc. as result sometimes it not fulfill

big demand order in short period.

Falcon inventory control system is quite traditional as result sometimes through

wrong assumption it keep much inventory than needed. So, it block money of

company. Hence, falcon should introduce latest inventory control system.

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Appendix

PROFIT & LOSS

31ST MARCH - 2010

Particular Amount in Rs.

As at 31-3-10

A. INCOME

Gross Sales

Less : Excise Duty On Sales

Increase (Decrease) In Stock

OF Finished stock

Total

B. EXPENSES : Raw material consumed

Purchase

Manufacturing administrative & Other Expenses

Administrative & selling expenses

Depreciation

Finance expenses

Total

C. Profit before income taxes (A - B)

D. Provision for taxation

E. Balance

Balance B/f from previous year

Balance carried to balance sheet

68635477.00

1352800.33

2197025

64791252.33

45330115.31

4847521

3792867.64

3518302.29

644990.65

2186685.71

60320482.60

4470769.73

1278646

3192123.73

7191838.73

10383962.46

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BALANCE SHEET AS ON 31-03-2010

LIABILITIES RS. ASSETS RS.

SHARE HOLDER’S

FUND :-

Own Capital

Reserve and Surplus

9,80,000.00

10,383,962.46

FIXED ASSETS :-

Gross F.A. 21,364,182.01

(-) Depreciation 2,132,705.75 -----------------

19,231,476.26

LOAN FUND :-

Secured Loan

Unsecured Loan

14,449,108.99

11,097,200.52

CURRENT ASSETS :-

Inventories 17,796,368.98

Sundry Debtors18,852,172.00

Cash and Bank3,779,108.73

Loans& Adv.5,617,947.00

(-)

Current liabilities26,977,320.00

provision 1,392,481.00 -----------------

17,675,795.71

Investment 30,000.00

36,937,271.97 36,937,271.97

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Conclusion

Concluding my summer internship, I learn a lot of new things. Now I know that how the

theoretically aspects are applied in the industries.

Falcon is worth to its responsibility. It has done a great job in fulfilling the needs of

farmers, in all over India.The government of Gujarat (GEDA) has certified Falcon Pumps

as “ Energy Efficient Pump Sets ’’ and giving 67 % subsidy to the farmers on purchasing

Falcon Pumps.

Falcon main strength is their worker’s coordination with higher level staff.

Hence, at the end we can say Falcon is fast growing company specially at national level and

future of company is quite bright.

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BibliographyWebsite

www.falconsubmersible.com

Annual report of Falcon Pvt. Ltd (2009-10)

Catalogue of Falcon Pvt.Ltd

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