PROJECT REPORT ON FINANCIAL SYSTEM MANAUL OF

In the partial fulfillment of Master of Business Administration, Annamalai University, Tamil Nadu

Under the guidance of: Mr. KAPIL SAHNI Sr. Manager of Sahni Investment

Submitted by:Manish Agarwal MBA (Finance) Enroll No-4740800497 The NIS Academy (A division of NIS Sparta LTD.) Ajmer (Rajasthan)

INDEX
No 1 2 3 4 5 6 7 8 8.1 8.2 8.3 8.4 8.5 9 10 11 12 13 14 15 16 17 Content SYNOPSIS PREFACE ACKNOWLEDGEMENT PROJECT SUMMARY INTRODUCTION OF COMPANY FINANCIAL SYSTEM FINANCIAL STATEMENT SYSTEM MANUAL PURCHASE & STORE SYSTEM PRODUCTION SYSTEM SALES SYSTEM PROCESS CONTROL SYSTEM ACCOUTING SYSTEM FINANCIAL ANALYSIS EXTRA FUNCTION & FACILITY IN RK MARBLE AWADS & ACCOLADES RESEARCH METHODOLOGY QUESTIONNAIRE FINDINGS CONCLUSION SUGGETIONS BIBLIOGRAPHY Page no

PROJECT SYNOPSIS

1.

Title of the Project:-

FINANCIAL MANUAL OF

R.K. MARBLE PVT. LTD. (KISHANGARH)

2.
1.

Statement of the problem:-

The scope of financial management was confined to the raising of funds, whenever needed & little significance used to be attached to financial decisionmaking & problem solving. 2. Today, financial managers do not perform the passive role of scorekeepers of financial data, information & arranging funds. Rather they occupy key positions in top management areas & play a dynamic role in solving complex management. 3. They are now responsible for shaping the fortunes of the enterprise and are involved in the most vital management decision of allocation of capital. It is their duty to ensure that the funds are raised most economically & used in the most efficient & effective manner. 4. A financial ratio analysis & working capital is a relationship between two financial variables. It helps to ascertain the financial condition of the firm. Ratio analysis is a process of identifying the financial strength & weakness of the firm 5. Financial ratio analysis & working capital management are the most vital & significant function in every business activity.

6. Financial statement, ratio analysis & working capital management are considering being very important function of finance as a very large amount of funds is blocked in current assets in practical circumstances.

3.
1. 2.

Objective of the study:-

To assess the companys decision about the level of investment in current

assets involves a trade-off between risk and return. To assess a company can choose from short term or long term sources of

finance depending on the possible availability of working capital finance & its own profitability.

3. 4. 5. 6.

To understand sales & demand conditions, credit policy, availability of

credit. To study operating efficiency, price level changes, quick payment to

suppliers, increase in debt capacity & goodwill, cash discount. To study that the company is to meet its current liabilities or not and to

study the companys market reputation. To find out easy availability to bank loan, Exploitation of favorable

opportunities, meeting unseen contingencies, distribution of adequate dividends, it increases fixed assets efficiency, increase production by managing working capital.

7.

To analysis accounting figures, measures liquidity positions, measures

long term solvency, measures operational efficiency, measures profitability by ratio analysis.

8. 9.

To facilitate inter-firm and intra-firm comparisons, trend analysis,

managerial uses, and ability to understand accounting data. To study the liquidity positions of the company & to asses whether the

working capital us being managed or not & to identify the items responsible for changes in working capital.

4.

Research methodology:-

Research methodology to search for knowledge. We can also define research as scientific & systematic search for pertinent information on specific topic. Research is careful investigation or enquiries for new facts in any branch of knowledge. Research methodology is a way to systematically solve the research problem. It is a systematic investigation to find solution to a problem. The investigation is guided by previously collected information. The research will be carried in R.K. Marble Private Limited (kishangarh). R - Rational way of thinking E - Expert & exhaustive treatment S - Search for solution E- Exactness A- Analytical analysis of adequate data R- Relation of fact C- Careful recording H- Honesty & hard work

METHODS OF RESEARCH-: 1. 2. 3. 4. 5. 6. 7. TYPES OF DATA-: Data should be classified in to two categories1.Primary data- Primary

Historical method Evolutionary method Field study method Experimental method Survey method Case study method Statistical method

data is one, which is collected by the investigator

himself for the purpose of specific inquiry or study & I have complete my research through observation and discussion.
2.Secondary data- secondary

data is one, which already has been collected by

others. For example- journals, reports, government publications, publications of professional, research organizations etc & in this I use company manual, company reports, company magazine company website etc. The data of R.K. Marble Private Limited for the year 2008 to 2009 used in the study have been taken from secondary source of data. For

example - published annual report of the company, directors report, auditors report, documents etc.

Preface

When the work is started or study is started on any topic, it will have its own significance. As it guides and defines the study process and the areas to be included in order to each the completion of study. In my case, firstly I will discuss the project, so that the broad area of the study can be made. In the process introduction of the company will come after the summary and then the main area of study will come.

The topic mainly refers to different system manual. So that every systems current procedure are available here. My sincere effort and the contents will surely justify it.

Acknowledgement

My project work includes the contributions of number of people who support me through out my work I thank all of them from the deep of my heart.

I forward my thank and gratitude of Mr. Subash Agarwal, General Manager and Company Secretary of R.K. Marble, Pvt ltd, who provide me opportunity to associate with company.

I would like to express my gratitude to Mr. M.L. Lodha HRD, R.K. Marble, Pvt. Ltd., for giving me guidance in my project study. I am extremely grateful to my guide, Mr. Kapil Sahni for their valuable guidance and timely suggestions.

Finally I would like to thank all those who directly and indirectly helped me for the completion of this report.

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr. Manish Agarwal bearing the Enrollment No. 4740800497 has completed the project work on FINANCIAL SYSTEM MANUAL OF R.K. MARBLE PVT. LTD. under my guidance, and I also assure you that the project report is original and has not been submitted earlier to any university/ institute. The project report is submitted to the Annamalai University in partial fulfillment of the requirement for the award of Masters of Business Administration during 2009-2010.

Dated: Mr Kapil Sahni Senior Manager Sahni Investments Ajmer

Project Summary

Marble is a compact crystalline carbonate of lime stone. The most popular choice with architects interior designers for flooring and wall lading. Marble is found Mainly in India, Greek, Italy, Brazil and Iran etc. Raj. produces 95%of marble produced in India.

Lime stone gets converted into marble when heated without the escape of CO2 and on subsequent cooling. Marble and allied rocks are of different geological ages and have a variegated beautiful colors like Black, White, Gray, Pink, etc.. the most popular choice for wall landing and following.

R.K. Marble Pvt. Ltd. Came into existence when Ashok Patni group laid the foundation stone of the company on 25th May 1989. the company started its operations at Madanganj Kishangarh with an installed capacity of 100000 cubic feet per annual of marble slabs. The strategic location of unit along the highway leading to Makrana (the world frame marble mandi which provide white marble for taj mahal ) also attracted a lot of attention from customer The project is on financial system manual of R.K. Marble Pvt. Ltd. It contains basically operational activities in financial system of R.K. Marble Pvt. Ltd.

It covers introduction of financial system and the system manual followed in R.K. Marble Pvt. Ltd. But before going in detail, we have to know about the company then we will move in the study of case. It will include some systems--. Purchase & store system . Process control system . Production system . Sales system . Accounting System

We will also arrange knowledge about the process of marble. It can be said in this way that how marble are received from mines and processing so that we can receive the slabs or cut size marble for decorating our Houses, Hotels and other things. So that they look beautiful and attractive.

And after knowing all that system will reach at the documentation and softwares used in different types of system and their uses. And last other facilities that are provided by the R.K. Marble put it and suggestion that may be applied in the improving of that system and functioning of R.K. Marble Pvt. Ltd. .

Introduction of Company

The Company R. K. Marble Private Limited was established in 1989 by the Patni group of Kishangarh-District Ajmer to help serve increasing National and international demands for Indian marble. Since then we have enjoyed exponential growth and export to many markets worldwide including European Union countries, the Middle East, Japan, other parts of Asia, China and North America etc. "The seagull who sees farther, flies higher" living up to the immortal words of Johanthan Swift, Mr. Ashok Patni established the first processing unit at Rajasthan (with an installed capacity of one lakh cu. ft. marble slabs Per Annum) and never looked back. The company now has 14 Gangsaw machines. In November 1993 was the time, when state government took a step forward to allot a virgin marble mine on lease to R. K. Marble at Morwad, Distt. Rajsamand in Rajasthan. By the touch of sheer hard work, guts, burning inner desire to reach unprecedented heights and fulfilling their dreams "the trio" converted these marble mines to gold mines. Morwad from which the stone takes its name is a remote village in the eastern part of Rajasthan, India.

FINANCIAL SYSTEMS

What is financial statement..?

When a business starts it needs some types of fund in the form of its capital, then from where its gets funds, become a problem. When it is on small scale the funds of the owners will be sufficient but in the condition of large company own fund will not be sufficient. So in that condition there is other option of borrowing funds. Borrowing fund can be received from many parties like- government, financial institutions and other non recognized institutions. So the requirement of company can be fulfill by the own + borrowed funds. Mainly in business fields 2 major things are there

. Fixed assets . Working capital Working capital. used for the smoothing flow the use of fixed assets. Working capital can be used operational activities like . Purchase & store . Process control . Production . Sales . Accounting payment & collection So there should be such type of system so that we will not be blocked after getting employed of working capital and fixed assets there may be profit and

loss, if there is profit then the next problem will be thathow much part of profit should be kept in reserve. So these decisions are called..

. Dividend Decision . Reserve keeping Decision

Three main decisions

1. Funds requirement decision 2. Funds allocation decision
3.

Profits allocation decision

But according to the scope of the project we will mainly focuses the operation part of financial system only. In this project mainly three questions arises which should be answered

1. usefulness? 2.

What are the statement made in the financial system and their

What are the system manual are currently being used in R.K.

Marble Pvt. Ltd. ? 3. What are the analysis techniques should be used?

Financial statement

At the and of financial year or at the end of the accounting period, financial statements are prepared to know profit and loss and also the financial position of the business. These statements are presented to users of accounting information for decision making. Financial statement refers to the statements that show the financial position and results of business activities at the end of the accounting period.

Objectives of financial statement

As stated by the Accounting standards board of India that, the objective of financial statements is to provide information about the financial position, performance and cash flows of an enterprise that is useful to a wide range of users in making economics decisions. The various objectives of such statements are summarised below: . To provide financial data on economic resources and obligations of a concern. . To reveal implications of operating profit on the financial position of a concern.

. To present true and fair view of the business.

. To serve as the basis of operations.

BALANCE SHEET
Balance sheet is one of the most significant financial statements of business firms. It is generally known by various titles such as: (1) economic or general balance sheet; (2) statement of the financial position; (3) statement of assets and liabilities; (4) statement of resources and liabilities; (5) statement of assets, liabilities and owners funds etc.

As stated by Howard and Upton, the balance sheet is a statement which reports the values of properties owned by enterprise and the claim of creditors and owners against these properties.

.Assets
Assets have been defined as a tangible objects rights owned by enterprise and carrying future economic benefits.

In the words of Finny and Miller, Assets are future economic benefits, the rights, which are owned or controlled by an organization or individual.

Assets can be classified to be:

1.

Current Assets:-

Current assets are those assets which are reasonably expected to be realised in cash or sold or consumed during the normal operating cycle of a business. The current assets are acquired for reselling or to be converted into cash during the course of business. These are also known as liquid or short - term assets. example of current assets arecash in hand, bills receivable, sundry debtors, inventory, marketable securities, temporary or short term investments, advance payments, prepaid expenses, accrued incomes, etc..

2. Fixed Assets:Fixed assets are those assets which are acquired for the purpose of using them in conduct of business operations and not for reselling to earn profits. In other words, fixed assets are assets of a relatively permanent nature used in the operations of business and not intended for sale. Fixed assets may be either tangible or intangible.

(A)

Tangible fixed assets

Tangible fixed assets are those fixed assets which have physical existence and generate goods and services. These include, land, building, plant and machinery, furniture and fixtures, trucks, computer, etc. these assets normally recorded at cost and is allocated over the useful lives. The amount so allocated each year is called deprecation and tangible assets are reduced every year by the amount of deprecation.

(B) Intangible fixed assets

Intangible fixed assets are those assets which have neither physical existence nor represent any physical assets in the form of documents of title like bills receivable and promissory notes. They can not be seen or touched because they are invisible. For examples goodwill, trademarks, patents, etc.

3. Investments:The investments of a firm in share, debentures and bonds of other firms or government bodies for profit and control are known as investments. The investments are purchased for long-term, i.e. to hold at least for more than the accounting period.

2.

Miscellaneous assets:-

All other assets which cannot be included in any to above categories are grouped as other assets. These include, preliminary exp., discount, dr. balance of p&l etc

.Liabilities

Liabilities may be defined as the claims of outsiders against the firm. In other words, it is that amount for which the firm owes to outsiders i.e. other than owner.

1. Current liabilities:Current liabilities, from the view point of an analyst, are all short term obligations generally due and payable within a year. These include those parts of the obligations whose liquidation is expected with in one year of the balance sheet. The examples of current liabilities are (A) trade creditors. (B) Bills payable, (C) dividend and tax payable, (D) bank overdraft (E) outstanding expenses, etc

2. Long-term liabilities:-

Long-term liabilities, sometimes also called fixed liabilities, represent borrowings of a firm payable after more than one year. For example, debentures, mortgages, loans, long term loan from banks, etc

.Owners Equity

In case of a company, the owners of a business are known as shareholders. Owners equity means the financial interests or claims of owners of the business against the assets of the firm. Alternatively, Owners equity may be defined as the residual interest in the assets of the enterprise after deducting all its liabilities.

.Reserves and Surplus

It represents retained earnings. It means that part of the profits belonging to the shareholders which is not paid out to them as dividend, but retained or ploughed back in the business. It includesrevenue reserves, capital reserves and surplus, etc

Profit and loss Account

According to guthman H.G., the statement of profit and loss is the condensed and classified record of the gains and losses causing change in the owners interest for a period of time. In profit and loss account, revenues of an accounting period are matched with the expenses incurred in earning the revenues and the difference between revenues and expenses and net profit and net loss of a business entity for a certain period of time. The profit and loss account, like balance sheet, is known by various names, such as income statement, statement of revenues and expenses, statement of income and earned surplus, operating statement etc.

Presentation of Balance Sheet:Balance Sheet as on 31st March 20.

Liabilities s. Share Capital Reserve and Surplus:Capital Reserve General Reserve

Assets s. Fixed Assets:Land, Building Plant &

Machinery

Secured Loans:Debentures Mortgage Loans

Long Term Investment

Current Assets Unsecured Loans:Public Deposits Loans and Advances:Stock Current Liabilities and Provisions:a). Current Liabilities:Bills Receivable Debtors Deposits

Creditors Bills Payable Customers Advances Unclaimed Dividend Bank Overdraft b). Provisions:Taxation Proposed Dividend

Cash at Bank Cash in Hand Prepaid Expenses

Miscellaneous Expenditures

Total Amount

Total Amount

Presentation of Profit and Loss Account:-

P&L Account for the year ending on Dr.

Particulars s. R Particulars s.

Cr.
R

To Grass Loss To Salaries & Wages To Rent, Rates, & Taxes To Stationary & Printing To Postage & Telegram To Audit Fees To Legal Charges To Telephone Expenses To Insurance Premium To Repair and Renewals To Depreciation To Interest To Sundry Trade Exp. To Bank Charges To General Expenses To Brokerage To Charity To Discount Allowed To Commission To Advertisement To Freight & Carriage To Traveling Exp. To Bad Debts To Net Profit Sources Gains

By Gross Profit Transferred from Trading Account By Rent Received By Discount Received By Commission Earned By Interest By Bad Debts Recovered By Income From Investment By Dividend on Shares By Miscellaneous Revenue By Income From Other

By Net Loss

SYSTEN MANUAL

What is the system manual are being followed in RK. Marble Pvt. Ltd? So we have to know about the following system and their process.

PURCHASE & STORE SYSTEM PRODUCTION SYSTEM SALES SYSTEM PROCESS CONTROL SYSTEM ACCOUNTING SYSTEM

PURCHASE & STORE SYSTEM

PURCHASE SYSTEM: - It has been decided that the purchase system will be as under. In case of purchase up to Rs. 2000/- same can be purchased directly by the stores department, after consulting rates from 2/3 suppliers and checking the quality of the product being purchased. In case of purchase above Rs. 2000/- the purchases will be handled by accounts manager. The user department will forward their requisition to stores department and stores. Department after checking the present stock position will forward the requisition to manager (accounts).

The Manager (accounts) will call quotations from at least parties and the quotation will be compared and purchase and order will be placed by manager (accounts) to the lowest quoted party. However, due regards also be given to the quality of the product.

Before finalization of the order the matter will be discussed with user department and undersigned.

As above procedure will take days, therefore, it should be ensured by the user department that they send requisition in due time and as far as possible emergency purchases should be avoided. STORE SYSTEM: The store department has challenging assignments in

hand. In view of proper handling of spares, store department is broadly classified as:-

STORE STORE -STORE --

I & II III IV

STORE -- I & II: --- Meant for items used in machinery as spare are grouped and systematically placed either on racks or into the individual bin box on the racks.

STORE III: -- Heavy machine parts and barrels of oil used as lubricants are positioned in this store.

STORE IV: -- In view of hazard item i.e. chemicals, used in filling and polishing of marble slabs this store is especially used for such type of items.

Most modern business require some immaculate method of inventory control, whether they are involved in outside sales or need to monitor equipment and supplies for internal use.

Being the leading organization in field of marble processing in the work inventory automation enable us to perform challenging task maintained by the store department.

The stores department situated at Madanganj marble area is playing the lead roll and maintaining the flow of work and productive activities by backing up the operations through supplies of various commodities.

Whether it be work shop diesel generator set, hydraulic & pneumatics, gang saw machine, dressing machine, gantry crane, diamond blade, water filter plant, and electric panel &motors,.

The store department works for 24 hours a day constantly keeps updating the stock of the required items related to any type of production unit. Since store is fully computerized, resulting it is very easy to have a quick view of stock position. Most items have its individual A/C, relevant transactions are recorded manually in respective A/c i.e. bin card. Each bin card is predefined as how much quantity should be maintained. All the transactions made are checked daily and written down as required items and get produced according to our procedure. Like

PURCHASE
Items is purchased if it is in demand and it not is stock i.e. item is demanded for the first time or current stock of that particular item is limited. This is based on predefined quality specified in bin card i.e. when should the item be purchased so that sufficient quantity in stock can be maintained.

ITEMS ARE PURCHASED THROUGH :Store department (routine item worth of less than Rs. 3000/- based on defined limit in Bin card)

Manager purchase :- (item worth of more than Rs. 3000/-) Purchase are made from an appropriated source of supply based on purchase requisition slip as per criterion defined in Bin card is forwarded to manager purchase which reverted to store with the copy purchase order.

MATERIALS REQUIRED BT STORE FOR MAIBNTAINING DEFIND LIMIT OF STOCK STORE DEPARTMENT REQUIREMENT SLIP FOR PURCHASE MANAGER PURCHASE MATERIAL REQUIRED BY PRODUCTION DEPARTMENT PRODUCTION DEPARTMENT REQUIREMENT SLIP FOR PURCHASE MANAGER PURCHASE THROUGH STORE DISPOSAL OF BILLS

When material is approved, relevant particulars of bill is feed in computer and taken out a computerized G.R. on the basis of suppliers bill and same are forwarded to words manager along with the day book for verification the bill thereafter it is reverted to internal auditor after words it comes to manager

accounts and finally the general manager approve the same and send making payment.

RECEIPT

Materials when received from any source or station are receipted in store with reference to the purchase order/indent possessions with store department and inspected the same by technical personnel for as they are informed for such inspection. The quantity received is verified with quantity specified on the purchase order is checked by store in change.

Deficiency, if any, noticed is taken up with supplies for rectification. Excess supplies are either retained or returned to the suppliers as considered necessary by the appropriate personnel.

RETURN

If any manufacturing defect is noticed in any of the items received, same is returned back to supplier through the format of gate pass either it can be non returnable gate pass.

Non returnable gate pass meant materials has been rejected and being returned back to the supplier. The credit notes are demanded against material returned back to the supplier unless the credit note is received to us the relevant is kept as pending in store. Returnable gate pass is used is used for those items which are sent for replacement until the exact material is received, payment is not released. The relevant bill is kept as pending till replacement. Four copies of gate pass in prepared and item are returned with same. The particulars are recorded in respective gate pass register and computer simultaneously. Particulars of returnable goods are not recorder in computer. It recorded in its respective register only. First copy Second copy Third copy Forth copy Sent to the party Security copy Account copy Maintained in store

REPAIR
Items repaired for minor damages. In practice repairing is avoided for cheap items or those which are in stock with sufficient quantity. Item is sent for repairing through returnable gate pass and entry is made in respective register.

Item when received duly repaired, entry for the same is made in gate pass register and if it is taken as stock, the computerized G.R. is made for the same.

ISSUE
Material is issued in 2 models-- DAILY ISSUE TEMPORARY ISSUE

DAILY ISSUE
This mode is meant for the consumable items which are not to be returned back to the store. In this mode is issued to different type of consumers. Material is issued at factory, for local consumption when slip is indented to the store. When material is issued, entry is made in to Bin card and nac stock in computer simultaneously.

TEMPORARY ISSUE
Item issued in this mode is returned back to the store, if not consumed or issue in absence of signatory of issue slip. Entry of the issued item is made into temporary issue register. When item is returned back to store, entry made in corresponding columns against issue entry of that item.

PRODUCTION SYSTEM

The undermining euphoric, exuberance and excellence demonstrated at strategically located majoli mine has, of course made he entire marble worked sit up and take notice 15 kms. Away from rajsamand and 70 kms. Away from Udaipur is morwad mine which is the most mechanized mine in the world, producing dazzling white marble with hardness, compactness that takes good pampering of polish and is nothing, but a visual fantasy on the floors. The mine adjoining morward mine is dharmenta mine, the spell binding mine with a difference producing the most sought after milky white marble with alluring of vibrant green and gray. It has now closed. At RK. Marble Pvt. Ltd., research and development are not just for a lip service but for a extended CRM (customer relationship management). Featuring one of the most mechanized marble mines on the planet called earth, with ingeniously developed tools and technologies that makes RK. Marble Pvt. Ltd. Stand a breed apart even under threats from a stiff competition from the worked over. The insatiable appetite for WONDER MARBLE from majoli mine is the eloquent testimonial of our core competence in customer satisfaction thats forever young and exhilarating.

The process of production will be started from --------

BLOCK MAKING
The process of marble mining at RK. Marble Pvt. Ltd. Begins with identification of the mining area by survey feasibility study and core drilling. Their experts never fail to notice the prospective mining fields. Their fleet of dumpers driven by expert drivers quickly cleans the mining field the mining field begins to take shape and production in form of marble block begins. The drilling and wire saw department get busy in cutting the marble mountain. Averagely 15,000 liters of diesel is consumed by heavy machinery everyday, for removal of overburden and other production- related activities. Under supervision of experts blasters, the upper layer of loose rock and overburden is removed with the help of excavators. In the beginning of the process, to cut the big rock from the mountain, drilling equipment is set- up to drill holes in the mountain. Compressed air is issued to drive the drilling equipment. Holes are drilled and matched and then a diamondbeaded wire is passed through the mountain neatly and effortlessly. To cut like a knife through butter, belt saws are also used. These belt saws are the best and latest technology devices in opening the face of the quarry and making a bottom cut.

After the completion of cuts, air and pillows are inserted in the cuts to widen them for activity space. Every task is accomplished in a truly professional manner. Once the gap is wide enough, excavators push and topple the huge rock and separate it from the mountain. Innovative techniques implemented by the company are at its peak here. Years by years this art has been perfected over the years and a lot of efforts also go into maintaining the quality, because the company believes in never compromising on the quality. Strict supervision is maintained at every stage in order to maintain the high level of quality, while keeping the operating hosts at the lowest possible level. The quantity of their production does not affect the quality of their product. One such huge rock might weigh more than 2000 mt. the fallen rock is then marked by rock marking experts to take out the maximum number of blocks with the best possible texture and design patterns. The ready blocks are loaded on the trucks with the help of derrick cranes and a final inspection is performed to cross the quality.

SLAB MAKING
Slab making process start at the corporate office Madanganj Kishangarh(Rajasthan), where the company was born in 1989. The gantry crane is the place where they stock their blocks for further processing. Before sawing, the uneven sides of the block are dressed to maximize the utilization of the gang saw machine. The marble block is placed beneath the gang saw machine and it is now ready to be cut in slabs. Water is used as a coolant for the diamond segments which cut the block and for removal of slurry. The companys slurry treatment plant is the first and only completely indigenous automatic slurry treatment plant in the marble industry. The final result is slabs of 18/20 mm thickness. The company also has a slab stockyard for consumers to pick and choose the variety they want and no slab remains unsold by the evening. It is hardly surprising that the company boasts the highest production of marble blocks (in tones). The 90% of the production is sold on the mining site. Competent go- getters are our highly qualified technical taskforce of committed, assiduous human assets, who have gained heavily over the years from our marvelous HRD initiatives and policies. With major thrust upon innovation, creativity and human ingenuity, our human assets have today gained par excellence in mining and maintenance of the earth moving mechanisms and tireless endeavors to ensure the optimum fell good factor in all mines, is today, indisputably, the best in the world.

EQUIPMENTS USED IN RK. Marble Pvt. Ltd:AT FACTORY NAME OF EQUIPMENT Gang Saw Machine Dressing Machine Edge cutting machine Gantry cranes D.G.set Water treatment plant AT MINES NAME OF EQUIPMENT Caterpillar wheel loader Belt saw Chain saw Excavators Volvo-EC 360 02 dump Tippers Volvo fmt. Wheel loader Jet FUNCTION Sawing of Marble Blocks Sawing of Marble Blocks Tiles cutting Lifting of marble blocks Power generation Water processing

FUNCTION Block movements Block cutting Block cutting Block handling Block transportation waste unloading Block handling and waste cleaning Digging and trenching

SALES SYSTEM
Zoom into the corner stone of Majoli, in Madhya Pradesh, India to scale the magnetic fascination of an ISO 9002 adorned Guinness Record Holder, engaged as the largest producer of marble in the world. Bedecked with the most sought after gadgets, the exotic Majoli mine is the most coveted breeding

ground of worlds choicest WONDER MARBLE thats wondrous and awesome in myriad hues. WONDER MARBLE colour panorama and innate design makes it the right choice for flamboyant users. Fascinating range can be floored to encompass living rooms, drawing arrangements, dining spaces, hotel lobbys, pool sites wall claddings, special lounges and many more. Among its endless usages left for creative imagination, some could be- table tops, artifacts and decorative objects. Yes, the WONDER MARBLE produced at the Majoli mines comes to you in heart warming shades of deep and dark red, brown to rose patches in creamy base coupled with abrasion resistance fame grained form luster and reflective gloss which makes it truly a masterpiece for a lifetime.

PROCESS
The sales process is very simple, because mostly the sales are made in cash at RK Marble Pvt. Ltd. Some following step are followed in the sales procedure man shows him different slabs or cut size marble account to be requirement of customer. When Customer decides, that he has to bring out or buy this type of marble, then he bargains from the salesman about the prices of that marble. Bargain can be done within the limit. When price are set, then the discussion topic will that transportation charges who will bear. It can be bear by either company or customer. Then the time comes for making the bill, bill should be made in 5 copies. After that payment should be there, without the payment goods cannot be go outside the compound. After payment, goods are loaded in trucks and the sales procedure is finished.

DIFFERENT TYPES
MONSOON PEARL Monsoon pearl is the heavenly prose forms the rich and contented green fields from the Garden of Eden with the mystique pink splendor of wonder marble. MILKY OPAL Milky Opal is the astute magic of white and romantic esteem in shades of white and beige that can evoke even a poet from a deep slumber. PRINCESS RUBY Princess Ruby is the replica of block dazzling beauty that acts as a cosmic cynosure with shades of illuminating galaxy tones. PINK PEARL Pink Pearl is a beacon call from the natural forest dunes that are splendid and effusive in generous shades of ecstatic pink and brown tones. MOON ROCK Moon Rock is the enigmatic charisma on wonder marble thats soaked in classic timeless beauty with the blandish fervor or rustic pinkish green tones.

PROCESS CONTROL SYSTEM In process system three activities are included

1) 2) 3) Production Process Mechanical Maintenance Electrical Maintenance

Purpose Processing of marble slabs & tiles. Scope Scope of process cover the operation and maintenance (mechanical & electrical) of the following machines Name of Machine Gantry Cranes Dressing Machines Gang saws Machines Edge Cutting Machines Power Control Center Unit Diesel Generator Sets Effluent Treatment Plant Unit Qty. 05 08 09 06 01 04 01

Process System The raw material i.e. raw marble blocks received from mines are unloaded in the gantry yard with the help of Gantry Cranes. The concerning supervisors examine the quality of marble blocks. The raw material is a natural product and every block is different in nature, so it can only be examined visually. The block supervisors who are export of stones shall determine the size to be prepared of every raw material blocks. The experts then give direction to dressing incharge or dressing machine operator for dressing of marble blocks. The dressed blocks are shifted to gang saw trolley as per the size of gang saw machine. The block is fixed as per direction of cutting in proper angle. The fixing of marble blocks on trolley is done with the help of wooden wedge of typical size plus mixture of plaster of Paris and wood wool. The block is now ready for final sawing in to slabs on gang saw machines. The gang saw trolley ready for saw of block is shifted manually to gang saw machine. The operator then fixes the trolley in the machine before starting sawing the operator will check the proper sharpness of cutting tools. If worned out

and for sharpening of tool, precast cement bricks are use. He also braze old segment of similar size. During block sawing process the operator will check and watch the proper cutting is being done. If there is non-conformity observed, he will stop the machine and take corrective action. When sawing is completed the operator will stop the machine. The labour will pack the trolley as per instruction given to them with the help of side supports and wooden wedges to avoid breakage in shifting by keeping the slabs state on the trolley. The operator and supervisor will check the proper packing at the finished goods on the trolley. The coolant (water) required for sawing is continuously supplied by water recycling cum effluent treatment plant. A water recycling plant is there for continuous supply of water. The plant also treat the effluent i.e. marble slurry from the used water. Effluent are speedly settled with the help of flocculent in settler tanks and them sent to filter press, which removes the excess water from the effluent. The final slurry, which comes out from filter press, is disposed off. If contains very low quantity of water. The gang saw trolley now contains marble slabs is shifted to finished goods yard with the help of transfer car. After purring the trolley on transfer car proper packing of trolley is done by the transfer car operator.

After sawing, for further treatment the slabs are taken to chemical treatment yard where they are netted and epoxy resign are used to fill the cracks and strengthen the slabs.

The slab trolley is shifted near to slab yard. All saleable or fresh slabs are shifted to slab yard. Broken slab, if any, are shifted to edge cutting machine for making tiles. The unloading of slabs is done manually.

Tiles of various sizes are recovered on edge cutting machines out or broken slabs.

The tiles recovered are shifted to tile yard for keeping lot as per size and quality for marketing.

ACCOUNTING SYSTEM
All the consumption, sale and purchase are accounted and controlled by maintaining its records in computer in accounts department. All the computerized vouchers related to above transaction with adequate supporting maintained & kept in records department.

PURCHASE

PURPOSE To get goods in time at reasonable price & superior quality.

PROCESS We are received requirement slips from main store/guest house store or any other user department, we examine the requirement of material on the basis of work to be done and for what purposes material is required. If material is not available with stores, quotation is collected either verbally or in written from various parties. Rates are compared and purchase order is issued to party which quote least rate with suitable make/quality. Purchase order are reviewed on daily basis in respect to goods received as per purchase order for comparing of quantity & quality of goods received. A separate file is maintained for all the purchase orders issued to parties at record department.

Normally, purchase is made from only those parties who are registered with company. For this purpose, company registered to supplier after inquired about suppliers services on time to time, whenever registration of vendor is required. Company having a practice of vendor analysis on yearly basis in respect to quality, quantity, rates, and delivery period & on what terms material were supplied during the year. A separate file is maintained for all the vendor registration forms at record department. If any material received from parties & later on its returned to party due to inferior quality, short quantity, higher rate charge or any other reason is recorded in non conformity product register, maintained at main store and action are taken at the time of vendor analysis.

ACCOUNTING AND PAYMENT Whenever purchase are made through our documented procedure, the computerized G.R. is prepared in main store, house keeping store & R.K.House and same are received to accounts department for releasing the payment. Accounts department checks all the documented procedure through which the purchase are made & checked in respect to rates, arithmetical calculations, purchase order/indent, security seal, approval of purchase etc. and send it to general manager for approval of payment.

There after the G.R.s comes to account and payment section that make necessary feeding in computer and prepare a cheque in accordance to computerized voucher called journal voucher accompanied the G.R.s kept as record.

VOUCHER ENTRY SYSTEM There are Six type of vouchers are prepared, namely Bank Payment Voucher Bank Receipt Voucher Cash Payment Voucher Cash Receipt Voucher Journal Voucher Sales Invoice

CONTRACTORS BILLS CIVIL WORK Whenever any civil construction is proposed, quot5ation are invited from contractor for different type of civil work. After comparison of different quotation by civil manager & top management, quote by different contractors, written contract, the company provides material itself. During the work is under construction, checking and physical verification done by the company staff at regular interval. Whenever contractors bills of civil work received is verified & checked in respect of rates, arithmetical, calculations and confirmed that contractor had followed all the terms & conditions written in the agreement like compliance of statutory matter i.e. tax deducted at source, insurance of contractors labour. P.F. & ESI etc. all the written contracts are kept in record room. Payment is made on the approval of civil manger and general manger. Approval of chairman & managing director is taken, if required.

INFRASTRUCTURE FACILITY BILLS Meant for service bill such as electric bills, water bills, telephone & mobile bills etc. these type of bills received are checked based on

consumption/utilization of units & tariff and forwarded to general manager for approval for payment if it is found okay. No G.R.s. are made for this type of

bills but computerized J.V. are made and kept in paper record. If any facility used for personal purpose than it recovered from particular employee.

CONTROL Print out of all the day books are taken on daily basis for compairing all the transaction related to purchase, sale, store & finance. Mainly following day books are printed on daily basis : Main Store Accounts General Store R.K. House

All the day books are checked and if any deficiency found is reported to relevant department for rectification. These day books enable to the accounts department to control each & every event.

FINANCIAL ANALYSIS

Financial statements are only the informer which provides information about financial position of the firm. But they are only the figures. Four understanding them, we have to do financial analysis. By analysis of statements we can find conclusions like management efficiency, future growth, etc. The science of financial analysis is assuming an increasingly important role as tools for appraising the real worth of a going concern. It helps in drawing out the implications of which is contained in the statements themselves. -- Naveen Chandra Joshi Analyzing financial statement is a process of evaluating the relationship between component parts of a financial statements to obtain a better understanding of a firms position and performance. -- Metcaff and Titard The analysis and interpretation of financial statements are and attempt to determine the significance and meaning of the financial statement date so that the forecast may be made of the prospects for future earnings, ability to

pay interest and debt on maturities (both current and long term) and probability of a sound dividend policy. There must be three step follow-

1. 2. 3.

Selection of information Define relationship Evaluation

OBJECTIVE OF ANALYSIS Profitability Solvency Ownership Financial strength Trend strength Gearing and cover IMPORTANCE OF FINANCIAL ANALYSIS 1. 2. 3. 4. 5. 6. Disclosure of facts effective decision- making effective operation and control planning tool comparative study of efficiency serving the need of interested parties

TECHNIQUES OF FINANCIAL ANALYSIS

Methods employed to examine the vertical as well as horizontal relationship of different financial variables with a view to studying profitability and financial position of a business enterprises are called tools of financial analysis.

There may be different techniques, but these techniques should be used according to the requirement. These techniques may be I. COMPARATIVE FINANCIAL STATEMENTS Comparative financial statements are those statements which are prepared according to consider on different facts in respective of time.

Generally in business firm, there are two most important statements which show the financial position of firm Balance Sheet Profit and Loss account

So, firm may make two comparative statements

COMPARATIVE BALANCE SHEET

PARTICULARS ASSETS Fixed assets Current assets Other assets TOTAL CAPITAL & LIABILITIES Share Capital Reserves Long-term loans Current liabilites TOTAL

2007 Rs.

2008 Rs.

INCREASE Amount

DECREASE Amount

COMPARATIVE P&L ACCOUNT

PARTICULARS SALES Less : cost of goods sold GROSS PROFIT Less : Selling expenses Administration expenses Other expenses NET OPERATING PROFIT Add: Other Income Less: Other expenses NET PROFIT BEFORE TAX 2007 Rs. 2008 Rs. INCREASE Amount DECREASE Amount

COMMON SIZE FINANCIAL STATEMENTS

In the comparative balance sheet or profit and loss account, the changes are not included which occurs year by year. So for the removing this weakness, common size financial statements came. If we show the datas of income statement in the analysis percentages like total assets, total liabilities and owner equity are shown in the ratio of total net sales, then the comparison will be on common base. Then this prepared statement will call common size financial statement.

Extra function in R.K. Marble Pvt. Ltd.

.Advertisement
R.K. Marble Pvt. Ltd was the first to introduce concept of advertisement for selling marble slabs. Prior to this the marble was sold only on the basis of word of mouth and advertisement\ sales promotion was not respond to reach to the consumer.

Computerization in R.K. Marble Pvt. Ltd:-

: - Files system management : - Marble blocks received and cutting details. : - personal management system : - Petrol consumption of factory vehicles : - Websites management system : - Management of address of all clients : - All day to day correspondence work is now on company : - Complete inventory and stocks management.

Other facilities Loding: R.K. Marble Pvt. Ltd. Is providing free lunch and dinner to all the employees in the staff mess

Boarding: R.K. Marble Pvt. Ltd. has provided free and furnished Boarding facilities for every employee. The residential facilities are also extended to contractor staff/ labor free of cost.

Hospital: R.K. Marble Pvt. Ltd. is having bed hospital at mines site working round the clock with a qualified doctor and componder.

Training: R.K. Marble Pvt. Ltd. is operating a vocational training center for providing initial training to new entrants to existing employees. On the job training also part of such training.

Software and different department Account: In account department we are using tally 9.2 software. This software fulfills all the information which is required organization like, . Balance sheet . Trail balance . Ratio analysis . Fund flow . Cash flow . Ledger . Budget analysis

Sales: -

. Bills and goods transfer memo. . Daily dispatch report . Party wise report . Goods booking . Truck booking and dispatch . Block making expenses report . D forms

Stores and purchases: In stores department NAC software are using which is develop on DBMS platform in clipper 5.2

. Minimum level report . Maximum level report . Re order level . Master maintenance report . Daily receipt report . ABC analysis . Stock checking report . Dr/Cr notes . VED analysis

Personnel: Master report . Company master report . Employees master report . Departmental master report . Leave master report

Awards

AWARD NAME

AWARDED BY

YEAR 1998, 2000, 2001

Guinness World Records

Guinness World Records

Appeared in Guinness World Guinness World Records Record Books ISO 9001 : 2000 BVQI, USA ISO 14001 BVQI, USA Entry in Limca Books of World Limca Books of World Records Model Marble Quarry award Industry (FIMI) & All India Best Mechanised Quarry- First Granite & Stone Association Prize The Best Stall for Stone & Stone Products (Outdoor) (AIGSA) Centre for Development of 2003 Stones (CDOS) Institute of trade and Industrial Development, New2001 Delhi State Level Bhamashah AwardEducation Deptt., Bikaner Highest Income tax payer Award (Individually to Syt. Income Tax Deptt., Ajmer Ashok Patni, Syt. Suresh Patni, Syt.Vimal Patni) Best Annual Report Award for Institute of Chartered 2001 Rajasthan Based Companies Indira Priyadarshini Award Samman Patra Accountants of India, Jaipur National Publication, New 2001 Delhi Income Tax Deptt., Udaipur 1998 Shree Digamber Jain 2000 2001 2003 2003 2003 2003 1998,

Records 1999 Federation of Indian Mineral

Udyog Patra Award

RESEARCH METHOLODOGY

Definition of Research is a diligent & systematic inquiry on investigation into a subject is order to discover or revise facts theories, applications etc. Methodology is the systems of methods followed by particular discipline. Thus, research methodology is the way how we conduct our research.

Data analysis:
Collection of Date: is first step in its utilization. Care is taken to record data as accurately as possible, because defective date leads to defective results. Date classification involves editing classification and organization of the collected date to present the same in condensed forms. The sum total of computing, tabulating and statistically transforming relevant information in a suitable format is known as data analysis.

Data Collection
Both the primary and the secondary data were used in the study: primary data is totally fresh & is collected for the first time, for collecting primary data questionnaire was prepared for finding the different financial system used in companies, and feedback for different companies. The peoples filled up the questionnaire & the secondary dates are those, which have been already collected & analyzed. It is published & available on different media for this

study. Secondary data was collected through magazines, fact sheets of assets management companies & Internet. Data: Data are collection of any number of related observations. Levin Sources of data collection: There are two main sources of data Primary Data: Data collected directly form the field by counting a phenomena or interviewing people is called primary data.

Methods of collecting primary Data

Direct Personal Interview

Indirect Oral Investigation

Information form correspondents

Mail Questionnaire Schedules sent through enumerator method

Secondary Data: Secondary data is not collected by the user directly: It is already published or available with some one. Methods of collecting Secondary Data

Published Sources Periodicals Journals Newspapers

Unpublished Sources Questionnaire

Sampling Method:When instead of total population only some selected elements of the population are studied, the set of selected elements is called a sample. And the process of selecting of sample is termed as sampling. The two major types of sampling method are:

Purposive sampling: In it the enumerator selects the unit of the universe for inclusion in the sampling. Random Sampling: In it each unit of universe stand as a chance of selection for sampling.

40% of the total population would be the target population for proposed project.

Process of Research Methodology Research Objective

Preparing a list of needed information

Designing Data

Selecting a sample type

Implementing the field works

Analysis of collected data and reporting the finding

QUESTIONNAIRE

1.
(a)

Funds refer to cash money (b) money accumulated of this purpose

(b)
2.

money in credit (d) none of these What is financial statement? (a) Balance sheet (b) profit & loss a/c (d) all of these

(c) cash flow

3. What is the system are being followed in a organization? (a) Purchase & store system (b) Production & sales system (c) Process control & accounting system (d) all of these 4. Balance sheet is the annual statement unfolding income expenditure at against. Do you agree with statement? (a) Yes (b) No

5. In conducting financial manual statements, the role of financial analysis is important? (a) Yes (b) No

6. Ratio analyses are the real statement for maintaining net audited result? (a) Yes (b) No

7. If you are financial manager of organization what step you undertake to maintain financial manuals (a) Survey & data analysis (b) Preparation of financial analysis (c) Making financial manuals (d) all of these 8. Financial statements provide information about the financial position of the firm? (a) Yes (b) No

9. By analysis of statements can we find conclusion likemanagement efficiency, future growth? (a) Yes (b) No

10. Financial analysis is comparative study of efficiency (a) Yes (b) No

Conclusion
After discussing all these system manuals we can know about the different process of system which is being followed at R. K. Marble Pvt. Ltd. Kishangarh Ajmer. R. K. Marble Pvt. Ltd. is acknowledged at the biggest marble company in the world and they hold certificate from gunnies book of world record to Butlers their claim. Today RK Group is most successful in the business but it is worth that they have no bigger competitor in front of them if we analysis all the systems manuals, we will find some following points:-

They do not have any bad debts because the deal mostly in cash. Net Profit of the company is continuously increasing. The services which are provided RK are quite satisfied. Promotion of the employees is based on his performance only. Facilities of internal Training are very few.

Conclusions are based on following captures: Brief of financial statement & financial analysis Detail of balance sheet and its manuals More practical inputs.

SUGGESTIONS

1.
2. 3.

Positive attitude of top level management is must. must be the organization culture is transparent. Must be sufficient technology input & holding of workshops seminar for

updation of employees. 4. There must be through data analysis which is based on actual service and

direct market.