DIPESH N SHAH

APROJECT REPORT

ONVIMAL PAINTS, MEHSANA

Submitted to:- Hemchandracharya North Gujarat University

Patan.

Guided by:-

Mr.Amit Patel

Prepared by:- Mr. Dipesh N. Shah S.Y.B.B.A

Roll No:Exam No:

Smt. S.B. Patel Institute of Business ManagementVisnagar

Academic year 2006-07

1

PREFACE

The study of practical training at the S.Y.B.B.A. level is the second step into

the industrial world, exists out side the college roots. It is supplement to the

theoretical of managerial world so, to be acquired with this aspect. I have

visited Vimal paints, Mehsana, especially for following department in detail.

Production Department

Personnel Department

Marketing Department

Finance Department

Practical knowledge plays a vital role in the market and thus enables the

student to know about the function and working of the unit. This training has

given me something new that what I had done during my study.

I had great and wonderful experience at Vimal Paints, Mehsana.

Mr. Dipesh N. Shah

2

ACKNOWLEDGEMENT

I am really thankful to Mr. Mahendra Patel, the finance

manager of VIMAL PAINTS, MEHSANA, for his co-operation and

who gave vital information about project.

I am very much thankful to Dr. R.N. Vadher, the principal of

the institute for giving me an opportunity to look at the practical side of

the business and helping me for taking permission to conduct the training.

I am very much thankful to my collage professor Mr. Amit

Patel for providing guideline for this project report.

Mr. Dipesh N. Shah

3

EXECUTIVE SUMMARY

It has been rightly said that if a business manager is able to sense the

opportunity and environment, the success is a good as his, with the advent of

globalization and growth in technology. It is equally important to succeed, only

information and plans will not bring result but a strong orientation towards

implementation of those plans in each and every functional area of organization

at micro level is required.

I come across to many parties during this whole project. As a result I

learnt a lot of experience about people and the four most important department

of the firm..

Shri. G. K. Patel, (B.Sc.Tech. with paint technology from university

department of chemical and technology –Mumbai.) had started Vimal paints

industry located on the golden Corridor of Gujarat having access to all the

major industrial centers of our country.

Vimal paints are a SSI (Small Scale Industry) unit and an ISO 9001

certified company certified by DNV-Netherlands.

Vimal paints active in the manufacture of decorative and architectural

coatings, Marine coatings for ship and industrial anticorrosive and protective

coatings for Chemical plants, offshore installations and the plants situated on

coastal areas.

4

CONTENTS

Sr. NO. PARTICULER PAGE NO.

1 GENERAL INFORMATION

1.1 HISTORY & DEVELOPMENT

1.2 GROUP OF COMPANY

1.3 COMPANY PROFILE

1.4 ORGASITION CHART

1.5 LOCATION CHART

1.6 LAYOUT CHART

1.7 MISSION OF THE COMPANY

2 PRODUCTION DEPARTMENT

2.1 INTRODUCTION

2.2 ORGANIZATION CHART

2.3 RAW-MATERIAL

2.4 PRODUCTION PROCESS CHART

2.5 PRODUCTION PROCESS

2.6 PRODUCT RANGE

2.7 QUALITY POLICY

3 PERSONNEL DEPARTMENT

3.1 INTRODUCTION


3.3 ABOUT THE WORKERS

3.4 RECRUITMENT

3.5 SELECTION

3.6 TRAINING & DEVELOPMENT

3.7 PROMOTION AND TRANSFER

3.8 FACILITY TO THE WORKER

3.9 WAGES AND SALARY

5

3.10 PERSONNEL RECORD

4 MARKETING DEPARTMENT

4.1 INTRODUCTION


4.3 DISTRIBUTION CHANNEL

4.4 ADVERTISING

4.5 COMPETITORS

4.6 SALES PROMOTION

4.7 PRODUCT MIX

4.8 PRICING POLICY

4.9 SALES

5 FINANCE DEPARTMENT

5.1 INTRODUCTION


5.3 CAPITAL STRUCTURE

5.4 FINANCIAL RATIO

5.5 GROSS PROFIT

5.6 OPERATING CYCLE

6 CONCLUSION

7 BIBLIOGRAPHY

8 ANNEXTURE

6

GENERAL INFORMATION

History & Development

Group of Company

Company Profile

Organization Chart

Location Chart

Lay-Out Chart

Mission Of The Company

7

HISTORY & DEVELOPMENT

Shri. G. K. Patel, (B.Sc.Tech. with paint technology from university

department of chemical and technology –Mumbai.) had started Vimal paints

industry located on the golden Corridor of Gujarat having access to all the

major industrial centers of our country.

When company was starting at 1989, it runs it’s business at local level

market. Then day-by-day the company covers the market to the nation level and

now, company often exports. To achieve high level of market, company has to

increase its production capacity.

In 1996 company reinstalled the new-advanced technical plant &

machinery for the higher production & meet the competition. For doing this

company had to invest large amount of capital.

Now, company has its own research & development department and

infrastructure facilities. Company also has good level of marketing network

8

GROUP OF COMPANIES

Vimal Electrical Company: -

Engage in the manufacturing of transformers, Buster and capacitors.

Vimal Pumps: -

Vimal Pumps is manufacturer of submersible pumps.

Vimal Cables Ltd.: -

Vimal Cables Ltd is manufacturer of P.V.C. winding wire & P.V.C. flat

cables for submersible pumps, Armored and PV.C. And unarmored power &

Control cables.

Vimal Oil & Foods Ltd.: -

Vimal oil & food ltd is manufacturing of edible oil exporting.

Vimal Dairy Ltd.: -

Dairy products like ghee, butter, milk, and cheese.

Vimal Microns Ltd: -

Pioneer in microns mineral, fillers used in polymer, paint, paper, and

rubber industries. Also exporting in a large quality to various Middle East

countries.

Vim coats Pvt. Ltd.: -

Manufacturing of various Alkyd Resins, Captured domestic market and

exporting to Middle East countries.

9

COMPANY PROFILE

Vimal Paints is one of the company from “Vimal Groups of companies”

which is a small-scale industry (SSI) started by technical qualified professional

Mr. G. K. Patel B.Sc. tech. (paint technologist) in 1989.

The head office and the plant of the company are located at Dediyasan

G.I.D.C., Just 5 Km. away from Mehsana city, acquiring an area about

22,000,59.Sq. Vimal paints is a SSI unit with an ISO 9001 certified company,

certified by DNV-Netherlands.

Company Name : Vimal paints Ltd.

Company’s Address : Vimal Paints Ltd.

Plot NO: 32,

G.I.D.C. Estate, Phase-II,

Dediyasan,

Mehsana-384002 (N.Guj.)

India.

Ph.: -+91-2762-59401 to 403

Fax: - +91-2762-59404

Registered office : As above

Establishment Year: Vimal paint was established at 1989 under

partnership act

Organization Structure : Flat organization.10

]

Managing Partners : G. K. Patel

K. K. Patel

H. C. Patel

G. M. Patel

C. I. Patel

G. S. Patel

Managers : Hiteshbhai Patel (Gen. Mgr.)

J. K. Upadhayay. (Mkt. Mgr.)

Subhashbhai Alex (Adm. Mgr.)

Mahendrabhai Patel (Fin. Mgr.)

Auditors : M/S M. M. Salvi & Co.

Chartered Accountant

Mehsana.

Bankers : S.B.I., Mehsana Branch

Dena Bank, Mehsana Branch

Urban Bank, Mehsana Branch

B.O.B., Mehsana Branch

11

ORGASITION CHART

12

Managing Partner

General Managers

H.R.M. Manager

Employees

Administrative Manager

Finance Manager

Asst. F. Mgr.

Accountant

Clerks

Computer Operative

Excise In chargeAccount In chargeDispatch In chargePurchase In chargeAssistant ClerksComputer OperativePeons

Production Manager

Supervisor R. & D. In charge

LaborsLab. Assistant

Marketing Manager

Asst. Manager

Depot Manager

Sales Representative

LOCATION CHART

13

Vimal Paints Industry

Ashirvad Equipment

ROAD ROAD

R O A D

HIGH

WAY

PLANT-LAYOUT CHART

14

Storage Waste & Disposal

R. & D. Lab.

Passage

Production Plant

SpaceForExpansion

Raw-material

storage department

Passage

Security Office

Gate

Parkingg

Garden

Office Building

Garden

GARDEN

Toilet

R

O

A D

N

MISSION OF COMPANY

Mission gives brief clear idea about the Company’s future plan.

Mission: -

“To be the best company in technology, quality, service for

imparting corrosion protection, quality, Colour finish and aesthetic

appeal to produced quality product and also make selling growth

very high.”

Consistent with mission statement Vimal Paints has embarked on a

TQM (Total Quality mgt.).

Make good name in the market.

15

PRODUCATION DEPARTMENT

Introduction

Organization Chart

Raw-material

Production Process Chart

Production Process

Product range

Quality Policy

16

INTRODACTION

Production department is a unit in which making some process on the

Raw material and transfer into final product production process of every unit is

depended on the size and nature of the company and quality of the product.

Production is a basic function of the firm as output point of view. As

there are so many products of this unit. The production almost depends upon

the automatic plants so company has small number of workers who are quite,

intelligent and hard working. Production is a combination of the four factor that

is land, labor. Capital and entrepreneur. In the plant three or four factors

combine that the production goes very high day-to-day and it give output.

Production of product works as a one cycle. It starts from purchase of raw

material and end up to output that means finish product.

17

ConversionInput Output

Feedback\Control

ORGANIZATION CHART

18

PRODUCTION MANAGER

SUPERVISOR R. & D. INCHARGE

LABOUR LAB.ASSISTANT

RAW-MATERIAL

The main raw materials, which are used to produce paint, are as

follows.

Raw material in percentage used for making paint:

Regin-50%

Pigment-10%-12%

Solvent-15%

Addictives-5%

Extender-18 to 20%

For making premier Colors:

Regine-30%

Extender-50%

Solvent-15%

Addictives-5%

19

Regin

Pigment

Solvent

Addictives

Extenders

Anteverting Agent

PRODACTION PROCESS CHART

Regin & addictives

Bed mill

Tank

Mixer (high speed)

Output

Tasting and packing

Dispatch

20

PRODUCTION PROCESS

The uses of the raw material for became a paints is well utilized by the

unit. Regin is important raw material for the production. First of all regin is send

to bed mill. Addictives also mixed with regin in bed mill. As addictives

extenders, Pigment or solvent any one of them is used in it. In bed mill the raw

material mixed and grained.

That mixer of raw material is discharged in tank. Then other material and

addictives likes as anteverting agent, dryer etc are added in it as per the required

quality of Colour. Now that mixer B sends to high-speed machine. In high

speeds that material mixing.

Now which mixer is getting from high-speed machine is called as Colour.

Now that output is send for testing and packing. At last the packed time are

stores in godown.

21

PRODUCT RANGE

Decorative/Architectural Paints:

Vimal World Primer White / Pink

Vimal Cement Primer White (Solvent/ Water/Thinable)

Vimal Red Oxide Metal Primer

Vimal Super Synthetic Enamel

Vimal Flat Oil Paint

Vimal Acrylic Washable Distemper

Vimal Air Draying Hammer finish

Vimal aluminum Paint

Vimal Synthetic Clear Varnish

Vimal Super Universal Stainers.

Two Pack Epoxy Coating:

Epoxy Zinc Phosphate Primer Grey/Red

Epoxy Zinc Rich Primer

Epoxy Zinc Chromate Primer Red/Yellow

Epoxy Mio Brown/ Grey

Epoxy Aluminum

Epoxy Finish (with shades ranges)

Chlorinated Rubber Coatings:

Conventional Coatings:

Heat Resistant Coatings:

Boiler Paints:

Miscellaneous:

Polyurethane Coatings:

22

Over and above the products on the standard Range of

Manufacture, Vimal Paint undertake manufacture of special paints designed to

meet customer’s specification. Vimal Paint also produces “Lapi” for Industrial

coating.

The Vimal Paint gives services only in the industrial paints. In this

product the technician gave information about the paints of the process of

painting. So the painting becomes more protective & effective.

Asian Paints produces a lots paints product more than Vimal. The

company has an 1150 Colour shade. The products are as under.

Today, different paints have development, specific to each under.

Asian Paints Company’s product & service is well & very much high

than Vimal Paints & Nerolac Paints.

23

QUALITY POLICY

Most of the industries produce products or provide a service with

intention to fulfill the requirement of frequently this is restricted to fulfillment

of ‘Specification.’ However, technical specifications do not give guarantee that

the expectation on a client is consistently & continuously fulfilled. This

necessitates shift from “quality oh end product” to “system quality” ISO-9000

series oh standard relate to quality system. It requires the manufacturers &

supplies to establish & maintain a documented “quality system” as a means oh

ensuring product/services conformance to specified requirements on continuous

basis. The ISO-9000 standard is significantly different from normal engineering

standard, which typically focus on product or material. Instead ISO-9000

attempt to standardize all business activities associated with Quality.

International Organization for standardization (ISO) introduced in the

year 1987. The ISO-9000 series of standards as a set of guidelines for

developing and demonstrating a documented Quality Management system.

24

PERSONNEL DEPARTMENT

Introduction

Organization Chart

About The Workers

Recruitment

Selection

Training & Development

Promotion & Transfer Policy

Facility To The Worker

Wages & Salary

Personnel Record

25

INTRODUCTION

Manpower is important stage of management, which deals with effective

control and with out man power proper development of industry dose not

occurs.

Personnel management concerned with development, compensation,

integration and manpower is main contribution to achieve the social, goals,

industrial goals and individual goals.

According to definition of personnel management it concerned with

trained and skilled personnel who effectively manage and operate the procedure

by which the industry can achieve its goals.

Manpower is most valuable asset of the business. Out of six Ms of

production man is most important part of business and factor of production.

Personnel power can help to achieve satisfaction for the industrial growth.

26

ORGANIZATION CHART

27

H.R. MANAGER

WORKERS

ABOUT THE WORKERS

The company has fully automatic plant for the production of a

product so the number of workers is less but it is enough for the company.

The total numbers of employees are about 26.

AUTHORITY EMPLOYEES

Higher level authority 4

Middle level authority 6

Workers 20

Higher authority includes the partners and managing directors.

Managers, clerks are in the middle level authority.

28

RECRUITMANT

The organization success depends upon the skilled and qualified

worker who chosen out of a number of applicants for the job requirement

has been regarded as the most important functional which is the unit want

this kind of person who want do work as Hartley and taking as a own

gains for the performance.

Vimal Paints has main two sources of recruitment that are as follow.

1) Internal sources

2) External sources

1) Internal Sources: -

A vimal paint sometimes uses internal sources of recruitment

which means promotion of worker from the lower rank to the upper rank.

In few cases Vimal Paints fill it’s vacancies by promoting the personnel

to the higher officer who is working in lowest level. This source of

recruitment is generally adopted to fill vacancies of middle and top level

of authority.

2) External Sources: -

At the time of expansion of the firm on where job specifications

cannot be met by the present employees, the employer has to go external

sources of manpower supply.

The Vimal Paints used outside sources areas follows.

i. Contacts through present Employees.

ii. Advertisement

29

SELECTION

Selection is the process by which the qualified personnel can be

chosen from the applicants.

Vimal Paints selecting their staff by following four steps if person

passes this four step then he can get the job.

The unit first of all had given advertisement of vacancies in

Newspaper and gives full details about post on its requirement. The

connected persons are applied for it and company choose best applicant

from So many applicant then after start process of selection of Vimal

Paints. The process of selection of unit is as under.

The process is divided in to following types of four step

30

1. First Interview

2. second Interview

3. third Interview

4. last Interview

31

1) First Interview: -

The unit takes first interview after getting the application in which

organization some preliminary question like, qualification, experience,

training, appearance, personal data etc. of the candidate and to obtain his

salary requirement. If candidate have some chance of being selection he

is given second interview.

2) Second Interview: -

Who had passed the first interview is chosen for the second

interview. In which knowing detail information about education,

experience, salaries and allowances, community, activities and other

information.

3) Third Interview: -

The persons who had passed the second interview are allowed for

the last or third interview, which is taken in Vimal, paints by the hire

authority. In this interview candidate give information about the job in

detail and also give training.

4) Last Meeting: -

If candidate are pass all the types of interview then he has most

probability to chosen as employees. But it is the necessary last meeting

and the final decision regarding job is taken in last meeting then after

candidate has provided job.

32

TRANING & DEVELOPMENT

Training is a systematic program of the organization, which aims to

increasing the attitudes, skills and abilities of the workers to perform specific

jobs. In the company give training by the various method like classroom

method, training through in go in other unit, on the job method.

Training is requiring for the getting best result and best performance for

the unit as well as quality of the persons.

33

PROMOTION & TRANSFER POLICY

Promotion policy:-

Advancement of employee with in an organization ordinarily labeled as

“promotion”, promotion involves movement of a person to a position of higher

status, more pay increased responsibilities, increased benefits and privileges in

the same organization. Promotion is a vertical move in the tank; promotion is

given on the basis of “seniority and merit”.

Vimal paint gives promotion on the basis of merit, attitude and skills of

the employees. Seniority to small extent is considered in Vimal paints.

However, this is not the critical factor.

The promotion policy of Vimal paints is based on the following

principles.

1) Its promotion policy is in writing and must be understood by all

employees.

2) The promotion policy is mentioned the basis of promotion

seniority and merit.

3) The promotion policy is lay down what percentage of vacancies

in higher post are to be filled up by promotion.

4) Scientific producer for evaluating employee performance is

followed.

34

Transfer policy:-

Transfer is the movement of an employee from one job to another

without involving any substantial change in his duties, responsibilities,

required scale status and compensation. A transfer is a horizontal on

lateral movement of an employee from one section, department, shift,

plant or position to another at the same or another place where his salary

status and responsibilities are the same.

Vimal paints transfer’s the employees into only replacement

transfer other units are transfer in various way like production transfer,

versatility transfer precautionary transfer, personal transfer, sectional

transfer, departmental transfer, interplant transfer.

The unit transfers its employees into one place to another place

only like production department to office or office to production

department its nominee but one types of facilities.

35

FACILITY TO THE EMPLOYEES

According to article 43, if the constitute of India. Human resources are

the most important & precious of all resources. Every company wants to get

more work by its worker and its only possible by giving motivation to its

employee, worker on staff. By getting such types of services on facilities worker

become motivated by company and take more interest in his work so by this

purpose Vimal Paints provide such types of facilities which are as under

1) Medical Facility:-

This company provides medical facilities to employee when

any employees become ill then company give a free medical

treatment. When employee becomes more ill or in accident case

company provides some portion of cost.

2) Picnic Facility:-

Every person have some capacity for its work and every

person want to some freeness, for this purpose company provide a

picnic facility for it’s employee for two days and this picnic hold

only once in a year.

3) Bonus to employee:-

Company gives bonus to the employee on the salary. Bonus

is a one of the facility for employee, which often known as ‘Diwali

Bonus’.

36

WAGES AND SALARY

Vimal paints gives daily-based wages to its worker is Rs\- 65 to

80.company provides Rs 3500-6700 to its middle level employee like, clerk,

accountant, supervisor, etc. The higher authorities are offered of Rs. 8000 to

12000 per month.

37

PERSONNEL RECORD

Record is piece of writing or a chart, which provides ready information in

which preserve evidence for future information regarding the employees of the

company. Then the time officer from the first day the duty prepares records.

The record contain

1) A copy of appointment letter.

2) Personal bio-data.

3) Changes and certificate of employee.

4) Net salary, incremental, day of works, leaves etc.

5) Record of his behavior.

38

MARKETING DEPARTMENT

Introduction

Organization Chart

Distribution Channel

Advertising

Competitors

Sales Promotion

Product Mix

Pricing Policy

Sales

39

INTRODUCTION

According to Philip kottler, “Marketing is the process of planning and

executing the conception pricing, promotion, and distribution of ideas goods &

services to create exchange that satisfy individual and organizational goals.”

Marketing management is responsible for organizing, directing, controlling all

marketing activities included in the process of marketing.

Marketing is viewed by many as being advertising, sales promotion or

merely selling and a in some cases, consumer research. Marketing management

performs all managerial functions in the field functions in the field of

marketing. Undoubtedly, advertising and sales people need an appreciation for

such close identification to a concept, which is far more than any of them alone.

And no wonder why critics of marketing often lash out at marketing functions

in India For, according to them, advertising, sales promotion and other such

expenditures are unwarranted an economy, which is characterized by shortage

of crucial resources.

40

ORGANIZATION CHART

General Manager

Marketing Manager

Asst. Sales Manager

Depot Manager

Sales Executive

Sales Representative

41

DISTRIBUTION NETWORK

We can say that consumer can purchase decorative paints directly from

the company or from dealer or from the retailer. Thus Vimal Paints applies o-

level (Direct Marketing), 1-level and 2-level distribution channel for its

distribution network. There are above 250 dealers of Vimal Paints in different

regions.

For the distribution of decorative paints, Vimal Paints uses dealers and

retailers, but the are not used for industrial paints distribution chart for industrial

paints for Vimal is an drawn below:

Agent

Company

Dealers

Retailers

Consumers

42

Vimal Paints has adopted different distribution channel for its industrial

paints. Here Vimal Paints directly sells its industrial paints to any industry or

through the help of agent. Agent brings company and purchase industry closer

for bargaining and for the successful transaction, Vimal Paints offers 5-7%

commission to the agent for his service.

Company Agent Industry

43

ADVERTISEMENT

Advertisement is the one of the most important tool companies’ use to

direct mass communication to target buyer and publics. In today’s market

situation to sale the product without Advertisement is impossible for any

company. Advertising places a significant role in awareness, creation and

attitude formation. Spending money for long time.

Advertising means non-personal presentation and promotion of a

product or service by any identified sponsor.

There are main 4 types of advertising.

1. Print Ads. : Ads in News paper, Magazines, Brochures, Mews Letters,

Pamphlets, etc.

2. Audiovisual Ads: Ads on Radio, T.V., Ads through Cable Connection,

Internet etc.

3. Pop Materials : Some materials seen at shop, like Stickers, posters,

series etc.

4. Outdoors Ads. : Wall paints, Board, posters, Hoardings etc., seen on

road.

44

At present, Vimal Paints sponsors a T.V. serial on Alpha T.V. channel. It

organized events. As an outdoor media, It gives printed spare wheel cover

for scooters to the public.

Advertisement

Awareness

Brand Knowledge & Image

Attitude towards the brand

Action

45

COMPETITORS

With the help of interview with the dealers the date belongs to the sale per year are

also collected and on that basis, market share of each brand has been carried out. The

following table and graph will help you to understand this point well.

Brand name Sales

Nerolac 38.68%

Asian paints 36.09%

Berger paints 03.75%

ICI 04.27%

Vimal paints 06.71%

Other 10.06%

Market Share each brand with the help of Pie Chart: -

Sales

Nerolac

Asian paints

Berger paints

ICI

Vimal paints

Other

46

SALES PROMOTION

Sales promotion is a short term, but very effective, tool for rapid

increase in sale. Sales promotion includes, Schemes, Offers, for dealers or

consumers.

The Vimal Paint Ltd is also doing sales promotion by giving the advertising

on the Wall Painting, Literature, and Pamphlets. And some of the sales

promotion is emphasis on the direct selling.

Sales Promotion at Dealers Level: Discount

Rebate

High margin

Gift

Sales Promotion at Consumers/Painters:

Discount Gifts Money back offer

Buyback offer

47

Asian paints have introduced rebate scheme for dealers, which

is described below: -

Purchase Rebate

(In Liters) (In Rs. Per liter)

50-100 Rs. 1

101-200 Rs. 2

More than 200 Rs. 3

Asian paints also offers gifts to dealers on Diwali Festivals. Nerolac

also gives Rs. 1 to 3 per liter after achieving the target. Berger paints also

offer up to Rs. 5 per liter at the various stages.

In the same way, Vimal Paints also offer rebate to the dealers.

Besides, it also offers schemes for painters.

Sales Promotion Diagram:

Manufacturer

Advertising Agency

Dealer

Retailer

Customer

PRODUCT MIX

In the product Mix price, size and the main uses of the product is given below,

Name Rs.\10 Liter UsesVimal Wood primer 510 Doors, windowsVimal cement primer 410 Plastered walls,

concreteVimal aluminum paint 470 Metallic SurfaceVimal BLR 7 532 Boiler interior, tubesVimal BLR 9 389 Piping, water tanks

No

No

Yes

PRICING POLICY

Price is always deals with first when people purchased any product.

Price must be compared to its quality. When the product having higher

quality, its price is also higher at that place low price cannot there because

market is long time of the firm.

The price strategy of Vimal paint is “Optional product pricing”.

In the strategy the pricing of optional or accessory products along

with a main product.

The company decide that effective action can and should be taken, if

might make any of four responses.

Has competitor cut price?

Will lower price negative affect our market share &

profit?

Can should effective action be taken?

NoHold current price continue to

monitor competitor’s price

Reduce price

Raise perceived quality

Improve quality & increase price

Launch low price “Fighting Brand”

SALES

Year Sales(R.S)2003-2004 10443646.892004-2005 12131667.252005-2006 13690701.39

02000000400000060000008000000

1000000012000000

14000000

R.S

2003-2004

2004-2005

2005-2006

Year

sales

sales

FINANCE DEPARTMENT

Introduction

Organization Chart

Capital Structure

Financial Ratio

Gross Profit

Operating Cycle

INTRODUCTION

Financial management is that managerial activities which is

concerned with planning and controlling of the firm’s financial resources.

Financial management scope may be defined in terms of the following

questions:

How large should the firm be and fast should it grow?

What should be the comparison of the firm’s assets?

What should be the mix of the firm’s financing?

How should the firm analysis, plan and control its financial affairs

The main goals of the financial management should be to “Maximize

the value of the firm to its equity share holder’s.” This means that the goal of

the firm should be to maximize the market value of its equity shares

alternative goals have been suggested:

Maximization of profit.

Maximization of earnings per share.

Maximization of return on equity etc.

A firm secures whatever capital it needs and employ it (finance

activity) in the activities, which generate returns on, invested capital

(production + marketing activity).

ORGANIZATION CHART

FINANCE MANAGER

ASSISTANT OF FINANCE MANAGER

ACCOUNTANT

CLERK

COMPUTER OPERATOR

CAPITAL STRUCTURE

Capitalization means the total value of all the securities i.e. share and

debentures issued by a company and reserves, surplus and value of all other

long-term obligation. The firm includes:

The value of ordinary and preference shares.

The value of all surplus earned and capital.

The value of bonds & Securities still not redeemed.

The value of long-term loan.

Capitalization is used in its quantitative aspect and refers to the

amount at which a company’s business can be valued.

Name Rupees

2003-04

Rupees

2004-05

Rupees

2005-06

Partners Capital 1146854.17 662775.15 3528253.43

Secured loans 2979649.91 3088649.47 3017065.47

Unsecured loans 8402426.87 6780636.41 6307627.41

Sundry creditors 930763.91 449967.70 1565291.76

FINANCIAL RATIO

The financial ratio of the last three years, like current ratio, liquid

ratio, debtor ratio of the unit is as under.

Current ratio = current assets/current liabilities

2004 = 10441195.26/4344896.82

=2.40 : 1

2005 = 9018281.98/3880585.98

= 2.33 : 1

2006 = 13519793.57/11177233.64

= 1.21 : 1

Liquid ratio = liquid assets/liquid liabilities

2004 = 7017430.69/1365246.91

=5.14 : 1

2005 = 5747677.98/791939.51

= 7.26 : 1

2006 = 10300749.57/1852540.76

= 5.56 : 1

Gross Profit ratio =Gross Profit/ Sales*100

2004 =1389178.88/10443646.89*100

=13.30%

2005 =2032749.93/12131667.25*100

=16.76%

2006 =2882461.34/13690701.39*100

=21.05%

GROSS PROFIT

Year Profit(R.S)2003-04 1389178.882004-05 2032749.932005-06 2882461.34

OPERATING CYCLE

CASH FUND

Creditors

Raw Materials Components & supplies

CASH FUND

Finish to goods

Debtors

Operative Cycle

CONCLUSION

At the out set let me appreciate my interest in this professional

programme of B.B.A

At the concerning organization, I would like to favour Vimal Paints

i.e. it is having effective, efficient & sound management.

During my visit, I was greatly impressed by qualified & sophisticated

managerial & non-managerial personnel of company. I have found the

working system amazing at Vimal paints. Each & every personnel are aware

of his or her responsibility.

Vimal paints is proceeding towars progress day by day. It is also

continuously going to upward side in the context of turnover, its market

share & financial strenth because of popularity of its products in the market.

The management had a positive attitude towards us & the incharge

personnel rendered their best & possible company-operation in providing

proper guidance & all the relevant information.

Vimal paints private limited will definitely progress & will be having

delight, bright, magnificent, and future because of good quality &

availability as well as the popularity of the product in the market as well as

in the house.

BIBLOGRAPHY

Marketing Management

12th edition

By: - Philips Kotler and Kevin Lan Killer

Financial Management

By: - I. M. Panday

Marketing Management

By: - Rajan saxsena

ANNEXTURE

DIPESH N SHAH

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