PREPARED BY

JAY S PATEL
CLASS

: F.Y.B.B.A.

SEMISTER

: 2

ACADAMIC YEAR

: 2013-2014

ROLL NO.

COLLEGE

: Grace College, Rajkot

SUBMITTED TO
SAURASHTRA UNIVERSITY
RAJKOT
GUIDED BY
Ms. DHARA VYAS

PRACTICAL STUDY REPORT

OF
M/S HARI OM STEEL INDUSTRIES

Under Gone Training Period

DECLARATION
I, the undersigned JAY SHAILESH PATEL a student of
F.Y.B.B.A. hereby declare that the project work presented in this
report is my own work and has been carried out under the
supervision of Miss. DHARA VYAS of GRACE COLLEGE,
Rajkot.
This work has not been previously submitted to any other
university for any examination.

Date: 31/01/2014
Place: RAJKOT

__________
(JAY S PATEL)

PREFACE
In B.B.A. the only theoretical knowledge of business is
not enough for achieving the entire knowledge of business
management, hence practical training is also important as it
touches almost all aspects of human life. It gives us the broad
and detailed view through different perspective about business
aspects. Keeping this in mind, Saurashtra University has
included the subject of Practical Studies or Industrial Training in
F.Y.B.B.A.
The industrial activity plays a crucial role in overall
economic growth of the developing countries like India. In
India, Gujarat is one of the industrial developed states.
I have attended the industrial training at HARI OM
STEEL INDUSTRIES, Gundala. It is well known iron and steel
unit

using

advanced

technology

and

machinery

for

manufacturing TMT-Bars. The report submitted here, represents

all information that I have obtained through practical training at
HARI OM STEEL INDUSTRIES.

ACKNOWLEDGEMENT
I consider myself lucky enough to study in this faculty
(BBA) and that too in reputed College. Our university has
recognized and included the practical study of industry in our
course as a subject which has really benefited me a lot.
It helps us to know and make us aware about the industrial
management, administration and industrial working. For this I
sincerely thank Miss.DHARA MADAM with whose efforts and
guidance make me to complete this report with competence and
efficiently.
Moreover, I thank Mr. Priyal Manharbhai Viradia who
guided me regarding the preparation of report. He accompanied
me and spent his valuable time to make me aware of the
situation and encouraged me for preparation of the report. He
provided such and every information both before and after the
training.
I would also like to thank Mr. Vibhav Kumar Mishra and
foreman of M/s Hari Om Steel Industries who gave their time
out of their busy schedule and help me to know the factory work
at grass-root level.

GENERAL INDEX
Sr. no.
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

Particulars
General information
Production department
Personnel department
Marketing department
Finance department
SWOT Analysis
Future plans
Suggestion
Conclusions
Bibliography

GENERAL
INFORMATION

CONTENTS
1) Introduction
2) History & Development
3) Company Profile
4) Organization Structure
5) Location Of Unit

INTRODUCTION
Today, market is Global. Every Industry and Organization is
engaged in tough competition to survive in this global market. Every
industry uses their strategies and working to compete with each other.
Due to technology and industrial development India is thriving towards
development and a better industrial face. Industry is divided into 3 major
segments- a) Agriculture, b) Manufacturing and c) Service.
M/s HARI OM STEEL INDUSTRES is a partnership firm engages
in manufacturing process, which have very good name in the iron and
steel industry. This firm is manufactures TMT-Bars. Recently, Hari Om
Steel Industries has got the certificate of ISO-9001:2008 (sets out the
requirements of a quality management system). This means that the firm
is consistently providing product that meets consumer satisfaction and
using standard manufacturing process.
Hari Om Steel Industries have broader vision and mission and may
engage in manufacturing of angles, rods etc in future to rule iron and steel
market in Saurashtra-Kutch region.
Firm's customer in Gujarat is major TMT-retailers, private
constructors and government constructors in Saurashtra-Kutch region.
It has been just few months that Hari Om Steel Industries have started
their manufacturing process, yet they have conquered majority of local
market though intensive marketing and selling strategies and experience.
M/s Hari Om Steel Industries was established on 2nd April 2011 in
Gundala-Gondal Rajkot District. It consists of 4 partners and type of
partnership is- Partnership at Will. Firm is engaged in sale, purchases,
resale, manufacturing, import-export, and job work of Steel Rerolling,
Steel Iron, and Angle, Stand, Alloy cast, etc and other items and allied
products.
The head office of M/s Hari Om Steel Industries is at Patel Nagar in
Gondal City.
The partners of M/s Hari Om Steel Industries are 1) Priyal
Manharbhai Viradia, 2) Kiranben Manharbhai Viradia, 3) Vihar
Manharbhai Viradia and 4) Vibhavkumar Ramhinch Mishra. The firm can
increase or decrease their partners in future according to their partnership
deed.

HISTORY OF THE ORGANIZATION

The idea of establishing Hari Om Steel Industries was actually

given by Mr. Manharbhai Hirjibhai Viradia the promoter of M/s Hari Om
Steel Industries. He is a person with great and wide experience in the
field of iron and steel industry sector. He himself was a founder of such
industry before 15 years.
In 1998, he formed a company called Patel Rolling Mills Pvt.
Ltd in Hadamtala Village- Rajkot District. It was a private company
engaged in production of TMT-Bars with rerolling procedure using
indigenous method of production.
It was one of the leading rolling mills in that time among
Saurashtra-Kutch regions industrial sector. But due to some personal
problems the company was closed down in 2001.
Yet the dream of him came true after 10 years when he promoted
his sons firm. He is the guider, promoter and controller of M/s Hari Om
Steel Industries. From his personal experience, goodwill and industrial
contacts, he brought the firm in lime light in just few months and made it
function in most effective manner.
The promoter Mr. Manharbhai Viradia kept the name of the firm
M/s Hari Om Steel Industries from the slogan of his guru and great
saint Asharamji Bapu who himself came in the opening of the factory.

COMPANY PROFILE
Name

: M/s HARI OM STEEL INDUSTRIES

Address

: Hari Om Steel Industries

Survey no 11/1 Patidar Road
Gundala.

Registered Office

: Hari Om Steel
Hari Om Complex, Patel Nagar
Gundala chowkdi, Gondal-360311
Dist-Rajkot- Gujarat (India)

Year of Establishment : 2011

Form of Organization : Partnership Firm
Size

: Medium Scale

Land area

: 2acres (approx.)

Promoter

: Mr. Manharbhai Hirjibhai Viradia

Partners

: Mr. Priyal Manharbhai Viradia

: Mrs. Kiranben Manharbhai Viradia
: Mr. Vihar Manharbhai Viradia
: Mr. Vibhavkumar Ramhinch Mishra

Technology

: Semi-automatic domestic from Punjab

Products

: TMT-Bars and Angles

Production Capacity : 30-35 tons per day

Brand Name

: OM TMT

Telephone No

: 9737888887

Email

: hariomsteelindustries@gmail.com

ORGANIZATION STRUCTURE OF THE COMPANY

M/s HARI OM STEEL
INDUSTRIES

1ST PARTNER
(Mr. Priyal)

2nd PARTNER
(Mrs. Kiranben)

3rd PARTNER
(Mr. Vihar)

4th PARTNER
(Mr. Vibhavkumar)

Finance
Department
Administrative
Department
Marketing
Department

Production
Department

Personnel
Department

Foreman

Site
Manager
OfficeStaff

Helper

Fitter

Workers

LOCATION OF THE UNIT

Location plays the most important part in the establishment of a
firm. Once located, it is very difficult to change it, hence promoters must
think about his decision carefully as success or failure of the firm mainly
depends on it. The decision regarding the location of the plant is very
important for any organization. Location affects the cost structure and
profitability of the plant thought its operating life.
The location for the plant mainly affected following factor:
1. Infrastructure facilities
2. Power
3. Fuel
4. Labor
5. Cost of location
6. Transport and communication facilities
7. Government Policy
Hari Om Steel Industries is located in Gundala Village near Gondal
City which is an industrial zone and company gets all the infrastructure
facility at concession rate. Hari Om Steel Industries got help from the
government through subsidies as the factory was establish in backward
areas generating employment opportunities and labor availability in this
zone is at nominal wage so we can conclude that company is located at
appropriate place.

PRODUCTION
PLANNING
&
CONTROL DEPARTMENT

CONTENTS
1) Introduction
2) Organization Chart
3) Production planning & control
4) Production process
5) Production process chart
6) Products of Units
7) List of Raw Materials
8) List and Purpose of Machines
9) Inventory control
10) Quality philosophy
11) Quality control
12) Purchase decision
13) Plant maintenances
14) Material handling
15) Scrap Management
16) Pollution Control

INTRODUCTION
Production is the basic activity of any organization. Production is
the process of converting raw material into finished goods which are sold
in the market. Every customer wants only finished goods. Their wants are
only satisfied by finished goods. Hence every production organization
engaged themselves in formation and transformation of products and
hence utility is gain through this process. Utility of the product means
want satisfying power of that product.
Hari Om Steel Industries are engaged in the production of TMTBARS and ANGLES. These products are widely used for constructive
purpose. Hence their main customers are constructors, real-estate people,
private builders and government constructors.
Hari Om Steel Industries recently got ISO-9001:2008 certificate
from government. This means that the firm has engaged itself in the
production of consumer-satisfying products through standard production
method.
Production process of Hari Om Steel Industries has many subprocesses and procedures. This leads to further specialization. Raw
materials are purchased. Then they are processed or washed or casted or
melted and are converted into intermediatory goods known as work in
progress. Then it is placed in the furnace in approx 1000-1500 degree
Celsius of temperature. Then the outcome of it are placed repetitively
placed in different rollers and machines making it like a long rods along
with given different sizes and curls. Then they are cooled and cut in
desired length and are transport to desired sites or in retailers.

ORGANIZATION CHART

HARI OM STEEL INDUSTRIES

Mr. Priyal

Mr. Vibhavkumar

PRODUCTION
DEPARTMENT

Foreman

Site-Manager

Workers
Helper

Fitter

PRODUCTION PLANNING & CONTROL

Products are manufactured by the transformation of raw material
into finished goods. This is how production is achieved. Planning looks
ahead, anticipates possible, difficulties and decide in advance as to how
the production, best be carried out. The control phase makes sure that the
programmed production is constantly maintained.
PPC comprise the planning, routing, dispatching in the
manufacturing process so that the movement of material, performance of
machines and operation of labor however are subdivided and are directed
and coordinated as to quantity, quality, time and place. Planning and
control are two basic and interrelated managerial functions. They are so
interrelated that they can be and often are considered as being one
function. Planning is the preparation activity while control is the postoperation function.
In Hari Om Steel Industries production planning and control is
handle by Mr. Manharbhai Viradia and Mr. Priyalbhai Viradia. As the
firm is of medium size there is no need to form separate department for it.
Hence the promoter and the active partner take the initiative jointly for
better production procedure and control method. Yet sometimes they took
the help of foreman and technical experts which are hired for short
duration for production planning.
The main advantage of handling the main departments by same
people or partners leads to unity of command and unity of control and
further leads to specialization. Even marketing is done by the active
partner- Mr. Vihar Viradia and Mr. Priyal Viradia jointly and hence there
is no need to transfer or communicate information to anyone and hence
production planning, control and marketing are done together with all
required information and hence decision can be taken effectively.

PRODUCTION PROCESS
In the production department, manufacturing is the core activity
and firm always try to maintain a low manufacturing cost which can take
place with the help of increase the productivity & reduction in variation
& waste.
Hari Om Steel Industries has a good machinery and equipment for
a manufacturing. Firm has a bought rolling and shearing machines from
Punjab for doing best quality work with minimum manufacturing cost.
Hari Om Steel Industries main product to be manufacture is ISOTMT Bars. Yet other products which are produced but in minor basis are:
1) Steel Iron,2) Angle,3) Stand,4) Alloy Cast. Yet here we are just
describing the production process for manufacturing TMT-BARS which
the main product of the firm.
Following are the different department
1. Raw material department
2. Cutting department
3. Furnaces department
4. Re-Rolling department
6. Cooling department
The production process starts with incoming scrap plates as rawmaterial from Alank Ship-Breaking Yard. Firstly scrap plates are cleaned
and are passed through the shearing machine. Here the scrap plates are
cut into required pieces and are pushed into the furnace where they are
heated at a particular temperature till it becomes red hot.
Then the heated scrap pieces are passed through 6 mill stands
where they are eventually pressed into the desired size. The sizes produce
by the firm are 6mm, 8mm, 10mm, 12mm and 16mm. Then lastly, the rebars are collected on the cooling bed.
After the re-bars are cooled down, they are subjected for sorting
and labeling according to their size, width and length. Later they are
loaded into the trucks according to purchase orders and desires.

PRODUCTION PROCESS CHART

ALANK-SHIP BREAKING YARD

SCRAP PLATES
OXYGEN &
LPGCYLINDER

INDONESIAN
COAL
SHEARING MACHINE

FURNACE

MILL STAND

COOLING BED

RE-ROLLS

BINDING AND SORTING

LOADING

PRODUCTS OF UNIT

1) ISO- TMT BARS

2) ANGLES
3) STEEL IRON
4) STAND
5) ALLOY CAST

LIST OF RAW- MATERIALS

1) IRON SHIP PLATES- From Alank Ship Breaking Yard

2) INDONEASIAN COAL- From Navlakhi Port
3) OXYGEN CYLINDER- From Metoda
4) LPG CYLINDER- From Metoda

LIST OF MACHINARIES

1) PLATE SHEARING MACHINE

2) ROLLING MILL MACHINE:
a. Flywheel
b. Reduction Gear
c. Pinion Gear Box
d. 6 Nos Mill Stand
c. Rolls
3) Workshop Machinery:
a. Lathe Machine
b. Shaper Machine
c. Radial Drill
d. End Cutting Shearing Machine
e. Coal Pulverizer Plant
f. Blower
g. Blast Furnace
h. Pusher
4) Weigh-Bridge

PURPOSE OF EACH MACHINARIES

1) PLANT SHEARING MACHINE:

It is used for cutting plates in equal suitable cuttings and pieces.
2) ROLLING MILL MACHINERY:
It is used to gradually roll the cutted plates into a TMT-BAR.
A. Flywheel- It is a 12 ton heavy metal wheel connected to a 600 HP
slipring motor. Its been rotated by the motor via V-Belt pulley. The
flywheel rotates at 715 RMP.
B. Reduction Gear- It is connected with the flywheel on one end and
pinion gear on the other end. It reduces the RMP from Flywheel (715
RMP) to (265RMP) Pinion Gear Box.
C. Pinion Box- It is connected to the reduction box while the Pinion
Gear Box has three shafting on the other end. In the two peripheral
shifting, one moves in clock-wise direction and the middle one in the
anti-clock-wise direction. This further creates the two level of rolling
path.
D. 6 Nos. Mill Stand- These is heavy mill stand which are arranged in
a line. Each stand has 3 rolls moving simultaneously. The hot piece of
plate is passed through these gaps between the rolls which makes it
elongated and gradually gives it a shape of a TMT-BAR.
E. Rolls- these are chilled rolls made up of EN-8/EN-9 heavy material.
There are passes made on these rolls to give shape to the piece of the
plate.
3) WORKSHOP MACHINERY:
A. Lathe Machine- It is used for turning different jobs. The passes on
the rolls are made on this machine.
B. Shaper Machine- It is used for giving a particular shape to metal job.

C. Radial Drill- It is a heavy drill machine used for drilling purposes

on metal job.
D. End Cutting Shearing Machine- It is used for cutting the damaged
ends of the TMT-BAR.
E. Coal Pulverizer Plant- It is used for grinding coal into very fine
particles and then storing it into a tank.
F. Blower- It is used for blowing the coal particles into the furnace.
G. Blast Furnace- It is a soft coal furnace which maintains a
temperature of 1300 degree of Celsius. It is used to heat the plate
cuttings. The plate cuttings are heated into a particular temperature which
is bit less than its pre-molten state.
H. Pusher- It pushes the plate cuttings into the blast furnace.
I. Weigh-Bridge- To measure the weight of the loaded truck with TMTBARS.

INVENTORY CONTROL
The word inventory is commonly used in to describe the goods and
materials that a business holds for the ultimate purpose of resale. There
are three basic reasons for keeping an inventory:
1. Time - The time lags present in the supply chain, from supplier to
user at every stage, requires that you maintain certain amounts of
inventory to use in this lead time. However, in practice, inventory
is to be maintained for consumption during 'variations in lead
time'. Lead time itself can be addressed by ordering that many
days in advance.
2. Uncertainty - Inventories are maintained as buffers to meet
uncertainties in demand, supply and movements of goods.
3. Economies of scale - Ideal condition of "one unit at a time at a
place where a user needs it, when he needs it" principle tends to
incur lots of costs in terms of logistics. So bulk buying, movement
and storing brings in economies of scale, thus inventory.
The inventory control is done for three things: 1) raw material, 2)
work in progress and 3) finished goods.
Hari Om Steel Industries keeps only 2%-3% inventory on their sites
so that they can avoid overcrowding or mismanagement. Inventory
control is done on the basis of demand and supply of raw material and
finished goods in the market. This is done so that money is not blocked
on ideal stocks or inventories on the site. All inventory control is done by
site manager- Mr. Vibhavkumar Mishra. Yet again it is done under active
partner Mr. Priyalbhai Viradia and promoter Mr. Manharbhai Viradia.

QUALITY PHILOSOPHY
India has a large manpower and raw material available like USA,
U.K., AUSTRALIA, CANADA, GERMANY, etc. This gives India the
advantage of producing resources at much cheaper price comparing to
other countries. That's why India has a chance to get manufacturing order.
But India is looked down for its quality assurance. Hence Hari Om Steel
has quality philosophy- Give quality products with less profit. Due to
this Hari Om steel Industries gave all dedicated work to secure the
certificate of ISO-9001:2008 which ensure quality and consumer
satisfying products.

QUALITY POLICY:
Hari Om Steel Industries commuted to manufacture and supply
products, which meet the agreed quality requirements of our customers. It
shall work for continuous improvement of their processes and operations.

QUALITY OBJECTIVES:
Enhance customer satisfaction.
Maintain recognized quality management systems.
Achieve
operational
excellent
through
techno-logical
improvements.
Optimize utilization of energy and all inputs.
Reduction of waste.
Train and motivate personnel at all levels so as to inculcate quality
consciousness.
Foster teamwork.
Hari Om Steel Industries has got ISO-9001:2008 certificate. It is
the big achievement of the company. So, company is very conscious
about the quality on that Basis Company has good name in the world.

QUALITY CONTROL AND TESTING

As we know that quality matters a lot to any firm or organization.
So it is too necessary that a firm keeps a keen watch on
quality control and go through standard quality control
measures and testing procedures.
Hari Om Steel Industries has recently got an ISO-9001:2008
certificates, hence it is going through all standard measures for better
quality control through standard measures and hence satisfying customers
on regular basis.
Hari Om Steel Industries sees that all iron ship plates (raw material)
are of good quality and without rust. For this it has kept many agents in
Bhavnagar who sees that the firm gets good quality iron plates
Next Hari Om Steel Industries uses Indonesian Coal in furnace and
heat and oxygen regulator in order to get uniform thickness of rods. In
rollers too they uses standard cutter.
The main control measure is Wet Analysis which is done to the exact
thickness, iron and steel contain, and other element contain in the TMTBAR.

PURCHASE DECISION

Firm decision on purchases is on daily basis. All raw-material

purchase decision is too dependent on sell of finished goods. Firm needs
to take care of its decision policy with care after analyzing daily market
of iron and steel.
Every morning the market of raw-material (iron ship plates) open
till 1 pm. It is like share market or share bazaar. The price of iron plates
goes up and down every morning on the basis of demand and supply of
iron plates, price variation in forex market (variation in dollar-rupees),
and demand and supply of ISI and ISO TMT-BARS.
Usually the price varies from Rs.27 per ton to Rs.30 per ton. The
price of iron ship plates are usually decided by ship-breakers and agents
of ship-breakers in Bhavnagar and Alank (ship-breaking yard) on daily
basis after keeping in mind the above elements.
Other raw materials like oxygen and LPG cylinder and Indonesian
Coal are purchased on contract basis from their local dealers in Rajkot
District. But still the firm has to take care about these raw materials
contract after keeping and analyzing the iron plates market variation.

PLANT MAINTAINANCES
Every firm or an organization needs effective plant maintenance. It is
very importance for better working of production processes and other
plant work.
There is separate team kept for plant maintenance which works under
site manager and foreman.
Firm uses two different type methods for plant maintenance.
Break down Maintenance
Preventive Maintenance
In the break down maintenances, whenever any break down or fault
arise in the plant then inform the maintenance department and they are
check the problem.
Preventive maintenances is done before the breakdown of any
machinery decided by the factors like total life of the machine, last
maintenances performed; decide by the export change in the noise of the
machine, heating of the machine. These all are sensory facts which one
can sense whether the machine require the maintenances or not and
studying the past history of the each machine, the break down can be
prevented eventually from its break down point.

MATERIAL HANDELING
The material handling process means movement of material from
one place to another place for the purpose of processing. They are moved
either manually or mechanically with the different type of material
handling equipment.
In Hari Om Steel Industries the material handling process is done
through trucks on site if the material is bulky and of large volume. The
other small or light weighted materials or raw material are moved or
handle through small anchors or by maintenance staff. Sometimes if the
material cannot be handle with the above mentioned process then many
times overhead cranes are called in or to do that. Even tractors are also
used sometimes.
The jobs done by material handling equipment include lifting,
moving, dropping, positioning, holding, realizing, stocking, etc.
Firm has to maintain material handling very effectively and on the
basis of this material transportation time is decrease in the firm and
material is made available at the right time where it is required.

SCRAP MANAGEMENT
Manufacturers do not intend or plan to make scrap, but depending
on the industry and the product, scrap is produced. But depending on the
type of scrap, it may be re-cycled back into the production process or sold
as a revenue generating product or simply non-recyclable and the
enterprise has to pay for an outside contractor to dispose of the product.
Scrap is a waste that either has no economic value or only the value of its
basic material content recoverable through recycling.
Hari Om Steel Industries have kept a separate team which does the
work of scrap management. The scrap management team consists of
people from furnace people and plant maintenance people. Basically all
the factory scrap is sold out to scrap dealers in a whole lot with a fixed
price according to its weight. Usually the scrap dealers are from SaaparVervar region and Rajkot district.

POLLUTION CONTROL
Pollution control means any attempt to reduce the contamination of
environment which might be created due to production process of the
firm. It is every firms or organizations social duty to take various
standard and strong steps towards pollution control.
Hari Om Steel Industries has installed a long chimney with filter to emit
less polluted smoke of the factory. Recently Hari Om Steel Industries has
got the GPCB (Gujarat Pollution Control Board) certificate from
government. This means that the firm is using such production method
and procedures which create less pollution. The firm taking all standard
measures and steps for pollution control.

PERSONNEL
DEPARTMENT

CONTENTS
1) Introduction
2) Organization structure
3) Time keeping system
4) Recruitment & selection
5) Training & development
6) Promotion & transfer policy
7) Wage & salary administration
8) Welfare and Grievance Handling
9) E.S.I. & P.F. schemes
10) Trade union
11) Total number of Employees and Shifts
12) Participation of Workers in Management

INTRODUCTION

Every firm or production organization need input resources like

man, machine, money, method, and material. Out of these resources Man
is crucial factor of the organization.
"The Human Resource Management is the process of attracting,
holding and motivating people involving all managers-line and staff."
"The management of Man" is a very important and challenging job;
important because it is a job, not managing 'men', but of administering a
social system. The management of men is a challenging task because of
the dynamic nature of the people. No two persons are similar in mental
abilities, traditions, sentiments, and behavior, they differ widely also as
groups, and are subject to many and varied influences. People are
responsive; they feel, thin, and act; therefore, they cannot be operated like
a machine or shifted and altered like a template in a room layout. They,
therefore, need a tactful handling by management personnel.
In Hari Om Steel Industries, labor unlike other factor of production
is an active factor and controls all other factors and coordinating them to
get the maximum output at minimum cost and also maintains
development of man power planning too.

ORGANIZATION STRUCTURE

In Hari Om Steel Industries, personnel department is handle by two

partners- 1) Mr. Priyal Viradia and 2) Mr. Vibhavkumar Mishra. The
flowchart of personnel department is given below.

HARI OM STEEL INDUSTRIES

Partner
(Mr. Priyal)

Partner
(Mr. Vibhav)
Personnel
Department
OFFICE STAFF

It is easy to understand the organization of personnel department.

In Hari Om Steel Industries, we know that all important and crucial
decisions and departments are managed by all partners or by some
partners.
Under the supervision of Mr. Priyal., Mr. Vibhavkumar act as
personnel manager who looks after personnel department. Under the
personnel manager personnel officer is there and under personnel officer
senior assistants are there and under senior assistants are there and under
assistants clerks and timekeepers are there.

TIME KEEPING SYSTEM

Each unit has its own timekeeping system. Every firm or a

company must have timekeeping system to measure the regularity of its
employees. In time keeping system the arrival and departure of
employees is recorded.
Hari Om Steel Industries has following method:
1) Cutting and rolling process- 10 hours
2) Sorting and Bundling process- 10 hours
3) Loading and unloading process- 8 hours

Timekeeping means how to work in the unit with a limited time. For
every different process there are different groups of workers each under a
main foreman and site manager. They all together divide their work and
time of different work according to their priorities and specification.
There is no fixed time keeping system in Hari Om Steel Industries for
the above work process. It takes place according to incoming rawmaterial and outgoing finished goods.
This system is too much helpful in calculation of wages of employees
and workers.
It may happen sometime that each process does not take that much
time as stated above and/or it may also happen that one or more process
can take place simultaneously according to needs and priorities.
Hence Hari Om Steel Industries have always kept the time keeping
system flexible, so that workers should not go in too much stress and
process should be done effectively and efficiently.

RECRUITMENT, SELECTION AND ORIENTATION

Recruitment means search of prospective employees to suit the job

requirements. After the prospective applicants are selected, right type of
persons need to be search in order to match the required job specification.
The success of an organization depends largely upon the team of skilled
and qualified workers who are chosen out of a number of applicants for
the job.
In Hari Om Steel Industries, recruitment is done as per
requirements. For this purpose the two partners who are engaged in
handling personnel department need to search a team of skilled workers
for specific work process in the factory. Foreman of the factory and
various dealers and agents in Bhavnagar and Alank-ship breaking yard
help the firm to search the prospective skilled labors as per the
requirements.
There is no single worker to be selected in the firm as there no such
process or work which can be done by a single worker. They have their
own team of people who are specialized in a particular work.
Hence workers are recruited and selected as a team in the firm.
Office staff needs to be selected with proper scrutiny. Proper face to face
interview is taken for such recruitment. As the firms main departmental
work are handle by its partners only hence no test or examination is taken
for recruitment and selection of office staff.
Foreman is regarded as the head of all skilled workers. Hence
recruiting and selecting of foreman is a crucial task and is done by all
partners along with expert agents and dealers in iron and steel market.
But unskilled workers for petty and small work are recruited on
random basis from local area on the basis of its dedication and hard
working.
In Hari Om Steel Industries the process of orientation is considered
as a welcome a new comer and makes him a feeling that his own job is
meaningful and plays very important role in the organization.

TRAINING AND DEVELOPMENT

In the words of Dale S. Beach, "Training is the organized

procedure by which people get knowledge and skill for a definite
purpose."
Every organization needs to have trained and experienced
employees to perform the activities which are to be done. Training and
development of personnel is a follow-up of selection. It is an
improvement and enhancement of different types of skills so that
employees can perform their job effectively.
Training is a systematic program of organization aims at increasing
the attitudes, skills and abilities of workers to perform specific job. By
training the employees will acquire new manipulating skills, technical
knowledge etc.
In the words of Adin B. Flippo, "Training is the act of increasing
the knowledge of employees for doing a specific job. Thus increase the
knowledge and skill of employee for better performance on job.
In Hari Om Steel Industries training and development task is done
by foreman and site manager under all partners supervision. Workers
need to adjust with working machineries. This is done by active
participation of foreman and site manager.
.The workers and labors are not sent outside for training. All the
necessary training is given within the premises of the firm. In the initial
stage the worker has to observe the working of the unit of his respective
field under his head. After training is over, he has been placed at the job.
All the workers are trained with cooperation of each others work.
They are trained according to their work schedules and other workers
timings and work process so that chaos and inefficiency doesnt arise.

PROMOTION & TRANSFER POLICY

The term promotion has been defined by Pigers and Miyers, "A
promotion is the advancement of an employee to get better in terms of
responsibilities, more prestige or status, greater skill and especially
increased rate of pay of salary."
A promotion is a vertical move in rank and responsibilities. An
upward advancement of an employee in an organization to another job,
which commands better wages, better status and higher opportunities,
responsibilities and authorities, better environment, hours of work and
facilities.
Hari Om Steel Industries does not follow any particular policy for
promotion. Here, they emphasis on performance of the person. They are
very strict in the matter of discipline. Due to fixed specialization in their
specific work process, no workers are subjected to promotion or transfer.
Workers or labors in Hari Om Steel Industries are not promoted or
transfer to other position or post but there knowledge and skills for their
specific given work are promoted by foreman through detail studies and
analyzing new trends and methods. It is the new of promotion of workers
which lead to better workplace and a successful enterprise.

WAGE AND SALARY ADMINISTATION

Wages and salary are given to the employee, workers and labors as
reward for their contribution to the production process. Wages and salary
administration refers to the establishment and implementation of sound
policies and practices of employee compensation. Various wage acts and
labors acts are used in order to determine the wage of the employees.
Salary means money paid periodically to persons whose output cannot be
easily measured such as clerical staff as well as supervisory and
management staff
In Hari Om Steel Industries the wages and salary administrative is
handle by Mr. Priyal and Mrs. Kiranben with the help of Mr.
Vibhavkumar and factory foreman.
In Hari Om Steel Industries, wages and salaries to skilled workers
and labors are not given on individual basis. Yet they are given according
to their groups and teams. Each and every team or a group has fixed
wages and salaries which is predetermined. Dealing with each group or
team for giving wages and salaries is done through foreman. He is the
care taker of each and every group.
Wages and salaries are given in cash as well as in kind. They are
usually given on per month basis. It make subject to increment from time
to time.

WELFARE OF PERSONNELS
Employees are important assets of a unit. So for better work
performance they should be motivated. For this they should be given not
only financial incentives but also non financial incentives and facilities.
Hari Om Steel Industries concentrates on above facts and gives many
benefits to their employees. The firm undertakes the following welfare
measure to motivate the workers.

LEAVE: Every worker and office staff is given a leave without

deduction in their wages and salaries on certain conditions. No leaves
more than 8days is allowed in a particular month.

HOUSE RENT ALLOWANCE: Every worker and labor is

house facilities on factory premises only. The firm has built rooms and
toilets which are given to every worker free of cost and rent. Usually each
room accommodated 4-5 workers with proper beds and bed sheets and a
place to keep their luggage.

ANNUAL BONUS: Every year since the factory went

production the annual bonus HA been paid at the maximum i.e. 20%.

UNIFORMS: All workmen including office staff are provided

with proper uniforms. In the case of workmen of shop floor it is a strong
cotton uniform and in the case of supervisory and office staff it is terry
cotton of good quality.

INDUSTRIAL SHOES: All workmen are provided with the

best available industrial shoes in the country.

WINTER WEAR: All the workmen are provided with woolen

jersey and winter blankets. All drivers who are to be out on duty on odd
hours are provided with woolen suits.

SAFETY EQUIPMENTS: The firm keeps all safety

precautions and required safety kits on site for any emergencies. Office
staff work as a safety team in emergencies when any worker or labor
needs to be sent to hospital or need to be attended by a doctor.

WELFARE AND PROVIDENT FUND: The workmen

have established a welfare and provident fund to contribute every month.
This fund is utilized for the benefits of workers in futures dates or in
emergencies.

CANTEEN: Two cups of tea/coffee are provided free of cost to

all employees in each shifts. Lunch and snakes are being provided at
subsidies rates. During the summer buttermilk is distributed free to every
workman on duty.

FESTIVAL SWEETS: On every Indian festival, each and

every worker, labor and staff member gets 1kg packet of a particular
sweets.

GRIEVANCE HANDLING
In order to have a better workplace and for generating loyal and
dedicated workers and labors towards firms aims and goals grievance
handling should be done scientifically. It is one of the important task of
every firm or organization.
Usually it is done by foreman and site manager because they are
close to them and they know their actual conditions and problems. They
are the link between workers and partners.
Yet for major grievance and problem solving thing it is necessary
to concern all partners and they take active part in solving such problems
and grievances
Office staff grievance and problems are directly handled by
partners. They too sometime, help partners to solve workers problems
and grievances.

WORKING ON ESI & PF SCHEME

ESI: Employee State Insurance is one of the most popular

schemes for the employees. The ESI scheme has been designed to the
employee under the workman compensation act of 1948. Persons having
Rs.6500/- monthly salary are eligible for ESI scheme. This scheme
included sickness, death benefits, accidents on duty etc.
For this scheme, in Hari Om Steel Industries deduct, 1.75% from
the workers salary while workers team contribution is may vary. This
scheme is mostly beneficial to the employees at the time of accident and
sickness. As the firm is new, this scheme is practiced on random basis
with no fixed percentage of contribution.

PF: Provident Fund scheme is a king of saving. Any firm of a

company having more than 50 employees can join this scheme. This is a
statutory scheme meant for welfare of the employees. In India it was
started in 1962 and applied in all the industry. It is necessary for every
company to provide PF scheme to it permanent employees.
In order to get the benefits of those scheme employee should have
completed continuous at least 90 days services. Here, in Hari Om Steel
Industries, under this scheme a workers team has to contribute 3.67% is
for provident fund. The team gets 12% interest on the contribution of his
provident fund.

TRADE UNION
A labor is the most important factor of production.
The organization sometimes faces problems regarding this factor of
production. The problems may be pertaining to the matters like payment
of wages working conditions, unfavorable condition of management,
irresponsible working of the employees, accidents and their claims and
other problems relating to workers. The organization has to frame
appropriate policies of the smooth running of the factory as far as labors
are concerned.
According to section 2(6) if the Trade Union Act-1926, A trade
union is any combination of persons, whether temporary or permanent,
primarily for the purpose of regulating the relations between workers and
employers or between workers and workers and for imposing restrictive
condition on the conduct of any trade or business and includes the
federation of two or more trade unions.
In Hari Om Steel Industries, there are no major problems regarding
workers. But sometimes problems do arise to unrest among workers
regarding wages, working condition and time, allowance etc. In such
cases the management intervene into the matter and finds out the causes
of the matter and also the proper solution of the problem.
The firm has certain advantages due to union. These advantages
may be achieved in terms of more efficiency of workers, increased
working hours and reasonable leaves, co-operation towards management
etc. The most important advantage of the union to the firm is settlement
of disputes merely by negotiations.

TOTAL NUMBER OF WORKERS AND SHIFTS

The total number of workers largely depends on firms or

organizations size and amount of productions. Hari Om Steel Industries
usually produces 30-35 tons per day hence it needs large number of
workers to accomplish the firms production task.
Hari Om Steel Industries have 90 workers working in their
respective team under foreman and site manager. It also has 10 office
staff and 4-5 casual workers in their workplace. The number may increase
in future during expansion and diversification of the firm.
The shifts of the workers are divided into 2 categories:
1) Cutting and Rolling Process- Usually for 10-12 hours
2) Sorting and Bundling Process- Usually for 10 hours
3) Loading and Unloading Process- Usually for 8 hours
The work is not done according to the same sequence all the time. It
depends and decided by foreman and site manager. It may happen that
one or more work is done simultaneously according to needs and
priorities.

PARTICIPATION OF WORKERS IN MANAGEMENT

Participation of workers in management is necessary for better
results and to accomplished predetermined aims and goals of the firm.
Hari Om Steel Industries knowing this fact practice indirect participation
of workers in management through their team head, foreman and site
manager. As workers are large in number and it is difficult to handle all
their individual views, the firms practice indirect participation process in
management decision and plans. Till now the firm is successful in it and
have lead to a better workplace.

MARKETING DEPARTMENT

CONTENTS
1. Introduction
2. Pricing Policy
3. Channel of distribution
4. Competitors
5. Market Research And Marketing
6. Advertising And Selling Expenses
7. Market segmentation
8. Price mix decision and Product mix decision
9. Promotion Practice
10. Total Sales at the End of Month

INTRODUCTION

Present market is customer oriented market & is no longer supplier

monopoly market. Customer is the king of the market. Without marketing
company cannot reach to the market king so, marketing is the critical part
in today's era.
"Marketing is the social and the managerial process by which
individuals and groups obtain what they need and want through creating,
offering, and exchanging products of values with others."
The management process through which goods and
services move from concept to the customer.
It includes the coordination of four elements called the 4 P's
of marketing:
(1) Identification, selection and development of a product,
(2) Determination of its price,
(3) Selection of a distribution channel to reach the customer's place, and
(4) Development and implementation of a promotional strategy.
Hari Om Steel Industries has a separate marketing department
handle by two partners- 1) Mr. Priyal and 2) Mr. Vihar.
The main area of focus for Hari Om Steel Industries for marketing
is Saurashtra-Kutch region. Marketing does not always including selling
and advertising. Hari Om Steel Industries believe Marketing as Contact
Establishment and Customer Satisfaction prospective.

PRICING POLICY
The pricing policy is the policy by which a company determines
the wholesale and retail prices for its products or services. Each firm and
organization should follow a proper and most effective pricing policy for
their various products.
Hari Om Steel Industries follow the flexible pricing policy. As
the raw materials of the firm has no fixed price hence the firms products
have flexible and changing price policy. Hari Om Steel Industries follow
the Bhavnagar based Pricing Policy hence avoiding price discrimination
and giving price to its origin and base.
Pricing policy should also include transportation cost and
advertising expenses. Hence Hari Om Steel Industries in order to compete
in the market, follow such pricing policy which leads to better consumer
satisfaction.

CHANNEL OF DISTRIBUTION
Distribution channel consists of sets of interdependent organization
involved in the process of sustaining a product or service from the point
of production to the user at the point of consumption.
Hari Om Steel Industries uses indirect channel of distribution. In
indirect channel of distribution, the firm doesnt directly sell their
products to their retailers which ultimately sell it to the final consumers.
Though the channel of distribution of the firm is short still they have to
include middlemen and retailers, because the firm produces the products
in bulk, but the demand by consumers are in small quantities and they too
are scattered in different places, hence it cannot be maintained by the firm
every time. So the firm has to built and search prospective retailers and
wholesalers for selling out its products.
Hari Om Steel Industries uses the road transportation (trucks) for
distributing its products through its channel of distribution.

COMPETITORS OF THE FIRM

Every firm or organizations in the business world have their
competitors. Every enterprise needs to have their specific strategies in
order to survive in the competitive market. Competition and Competitors
are necessary in every business market. They lead to better production,
large scale production, reduced price, and better quality products to the
consumers. Competitors always keep watch on each other in their price
strategies, marketing schemes and on their working which ultimately
leads to better products at lower price.
Hari Om Steel Industries too have competitors in the market.
Some of the strong competitors are:
1)
2)
3)
4)

UTKARSH TMT
VIRAT TMT BARS
AXIL ROLLING MILLS
ADITYA TMT

MARKET RESEARCH AND MARKETING

Market research is any organized effort to gather information
about markets or customers. It is a very important component of business
strategy. Market research is a key factor to get advantage over
competitors. Market research provides important information to identify
and analyze the market need, market size and competition. Market
research, which includes social and opinion research, is the systematic
gathering and interpretation of information about individuals or
organizations using statistical and analytical methods and techniques of
the applied social sciences to gain insight or support decision making.
Hari Om Steel Industries in order to for market research keeps
follow-up tours every 3months. In follow-up tours the partners
themselves personally goes to meet wholesalers, retailers, dealers and
agents in order to gain valuable feedback and information about changing
market trends and customer satisfaction.

ADVERTING AND SELLING EXPENSES

Advertising is any form of non-personnel presentation of
ideas, goods or services for the purpose of including people to buy.
Advertising has become the core of marketing function. With the help of
advertising, the firm tries to create the brand image into the market.
Hari Om Steel Industries in order for advertising and selling
purpose, uses local trade journals, posters and hoarding for advertising its
products.
Advertising and selling expenses include cost of printing in
trade journals, posters and preparing hoardings. Other selling expenses
include transportation cost for raw materials and finished goods.

MARKET SEGMENTATION
Market segmentation is a marketing strategy that involves
dividing a broad target market into subsets
of consumers who have common needs (and/or common
desires) as well as common applications for the relevant
goods and services. Depending on the specific characteristics
of the product, these subsets may be divided by criteria such
as age and gender, or other distinctions, such as location or
income. Marketing campaigns can then be designed and
implemented to target these specific customer segments,
addressing needs or desires that are believed to be common
in this segment, using media that is used by the market
segment.
Hari Om Steel Industries have segmented its market in a very
systematically and effectively manner. It sends or sells its products
through middlemen and/or wholesalers and retailers. The selling activity
is indirectly in order to reach the prospective customers. Some of the
prospective customers are:
1) Builders- Private and Government
2) Private Contractors
3) Government Contractors

4) Foreign infrastructure companies and tie-ups

PRICE MIX DECISION

Pricing the product is one of the important elements in marketing
mix. The exchange value of product is called price. Pricing decision
means decision of the determining price of a product. When a company
decides a price they have to take number of factors into consideration like
cost of products, cost of distribution, cost of storage, transportation,
advertisement, etc. and also demand and supply position in market.
In Hari Om Steel Industries price mix decision is taken very
carefully by all partners. Firm has been providing best quality with
reasonable price to its consumer.

PRODUCT MIX DECISION

The product is most important single component of the marketing
program. The product policy and strategy is the corner stone of a
marketing mix. If the product fails to satisfy the customer demand, no
additional cost on any of the other ingredients of the market mix will
improve the product performance in the market place.
"A product is anything that can be offered to a market to satisfy a
want or need. Products that are market include physical goods, service,
experience, events, personal place, properties, organization, information
and the ideas."

PROMOTION ACTIVITIES
Generally, promotion is communicating with the public in an
attempt to influence them toward buying your products and/or services.
An activity, such as a sale or advertising campaign, designed
to increase visibility or sales of a product. The word promotion is also
used specifically to refer to a particular activity that is intended to
promote the business, product or service.
Hari Om Steel Industries promote its own business in rawmaterial market through prompt payment while purchasing raw-.material
thereby building their good image. It also promotes its products in the
market through trade discount and subsidizing transportation cost.
Other promotional activities are giving away industry
merchandise, books, dairies, pens, bags, clocks, watches, etc to all their
dealers, agents, wholesalers, retailers, regular big customers and also to
new prospective customers. These all things ultimately had lead to new
market and customer contact building.

TOTAL SALES
A sale is the act of selling a product or service in return for
money or other compensation. It is an act of completion of a commercial
activity. Sales must be executed in order to prosper in the competitive
market. Sale will ultimately lead to turnover ratio, revenue and profit
margin of the firm.
In Hari Om Steel Industries the total sale amounts to 30- 35 tons
per month. This will help the firm to calculate profit margin and revenue
and hence will help the firm to decide upon its pricing policy, advertising
and selling expenses.

FINANCE DEPARTMENT

CONTENTS
1) Introduction
2) Financial Planning
3) Sources Of Capital And Depreciation
4) Capital Structure
5) Working Capital
6) Administrative Expense
7) Credit policy
8) Profits and Taxes

INTRODUCTION

Money or finance is the life blood of business. Without finance

nothing can be happened or we can say all managerial activity revolve
around finance because we require finance to purchase expensive
machinery, pay salary to employees, purchase raw material, etc. So we
can say that finance is the oil that lubricates the huge machinery of the
industrial sector.
Finance is the study of how investors allocate their assets over
time under conditions of certainty and uncertainty. A key point in finance,
which affects decisions, is the time value of money, which states that a
unit of currency today is worth more than the same unit of currency
tomorrow. Finance aims to price assets based on their risk level, and
expected rate of return. Finance can be broken into three different sub
categories: public finance, corporate finance and personal finance.
According to Hoagland "finance management is concern mainly
with such a matter as, how, a business corporation rises its finance and
how it makes use of it."
So, on the above we can say that main aim of finance management
is to rise or to utilize finance in such a way that company can maximize
its profit.
In Hari Om Steel Industries Finance Department and all banking
work is handle by two partners- 1) Mr. Priyal and 2) Mrs. Kiranben. They
both indulge in procuring and utilizing financial resources in such a way
that firm maximize its profit. As it is partnership firm, majority of finance
comes from loans, borrowings and personal contribution.

FINANCIAL PLANNING
Financial Planning is the process of estimating the capital
required and determining its competition. It is the process of framing
financial policies in relation to procurement, investment and
administration of funds of an enterprise.
Financial Planning is process of framing objectives, policies,
procedures, programmes and budgets regarding the financial activities of
a concern. This ensures effective and adequate financial and investment
policies. The importance can be outlined as1. Adequate funds have to be ensured.
2. Financial Planning helps in ensuring a reasonable balance between
outflow and inflow of funds so that stability is maintained.
3. Financial Planning ensures that the suppliers of funds are easily
investing in companies which exercise financial planning.
4. Financial Planning helps in making growth and expansion
programmes which helps in long-run survival of the company.
5. Financial Planning reduces uncertainties with regards to changing
market trends which can be faced easily through enough funds.
6. Financial Planning helps in reducing the uncertainties which can be
a hindrance to growth of the company. This helps in ensuring
stability and profitability in concern.

Hari Om Steel Industries uses 1) short-term financial planning and

2) long-term financial planning. Short term planning is usually done for
short term finance requirement, minimum cash and fund requirements
and for working capital. While long term planning is done for expansion,
growth and diversification.
In financial planning the firm needs to take care of interest rates,
maturity time period, cash and fund flow availability. It also needs to take
care of cost and expense incurred in procuring finance, repayment of loan
and benefits and gains avail from it.

SOURCES OF FINANCE OR CAPITAL

Every firm and enterprise has to see and search for the
prospective sources for capital and for procuring finance for the firms
working. Hence Hari Om Steel Industries has many such sources of
finance and capital such as:
1)
2)
3)
4)
5)

Personal Contribution
Secured Loans
Unsecured Loans
Cash Credit
Borrowings from relatives and friends

DEPRECIATION OF ASSETS
In accountancy, depreciation refers to two aspects of the same concept:
1. The decrease in value of assets (fair value depreciation), and
2. The allocation of the cost of assets to periods in which the assets
are used (depreciation with the matching principle).
The former affects the balance sheet of a business or entity, and the latter
affects the net income that they report. Generally the cost is allocated, as
depreciation expense, among the periods in which the asset is expected to
be used. This expense is recognized by businesses for financial reporting
and tax purposes.
Hari Om Steel Industries uses the fixed depreciation method for
calculating the depreciation for its fixed assets. Normally the rate of
depreciation is kept 5%.

CAPITAL STRUCTURE

R.H.Wessel defines capital structure as "The capital structure frequently

used to indicate the long term sources of fund employed in the business
enterprise.
CAPITAL
STRUCTURE

Secured
Loans

Unsecured
Loans

Personal
Contribution

Cash Credit

WORKING CAPITAL

Working capital (abbreviated WC) is a financial metric which

represents operating liquidity available to a business, organization or
other entity, including governmental entity. Along with fixed assets such
as plant and equipment, working capital is considered a part of operating
capital. Net working capital is calculated as current assets minus current
liabilities. If current assets are less than current liabilities, an entity has
a working capital deficiency, also called a working capital deficit.
Hari Om Steel Industries has kept the fixed working capital of 56
lakh rupees. But recently the firm has decided for growth and expansion
of its production process and has applied for more cash credit in the bank
of rupees 1.2 crore which can be used as working capital.

ADMINISTRATIVE EXPENSES

Administration is one of the most crucial and important

functions of any organization like management. Administration means to
formulate plans, strategies and setting up of objectives of the firm or
organization. It is mainly concentrated on the top level of the firm. Many
times it is believed that administration and management are used
interchangeably. But administration is thinking and decision-making
process while management is an operational function.
So as it is administration function is important, in the same way
administrative cost and expenses are too important and needs to be
effectively handled for betterment of the firm or enterprise. The expenses
that an organization incurs not directly tied to a specific function such as
manufacturing/production or sales. These expenses are related to the
organization as a whole as opposed to an individual department; also
referred to as "administrative cost."
In Hari Om Steel Industries, administrative expenses is associate
to administrative department and is handle and managed by two partners
1) Mr. Priyal and 2) Mrs. Kiranben.
In Hari Om Steel Industries some of the administrative expenses
involved are:
1) Preparation of site and factory plan
2) Preparation of Production process plans and chart
3) Salary given to office staff and preparation of accounts
4) Cost of auditing and costing
5) Quasi rent of office and factory land
6) Expenses involved in building business relations and contracting
7) Charges for cooling, heating power and water
8) The cost for mobile and landline bills
9) The electricity bills
10) Salary of foreman and commissions of agents

CREDIT POLICY
It is the clear, written guidelines that set:
(1) The terms and conditions for supplying goods on credit,
(2) Customer qualification criteria,
(3) Procedure for making collections,
(4) Steps to be taken in case of customer delinquency.
So it can be said that it differs from firm to firm and enterprise to
enterprise about setting appropriate credit policy for their organizations
and its customers.
For Hari Om Steel Industries, retailers and wholesalers are their
direct customers and contractors and builders (Private and Government)
are their indirect customers. So it needs to formulate a flexible credit
policy for their direct customers which also dont affect their indirect
customers adversely. Credit policy of the firm is also affected by the
credit policy of ship-breakers and their raw-material sources for the firm.
So keeping this in mind Hari Om Steel Industries has formulated a
flexible credit policy for their direct customers. In flexible credit policy
the terms included are:
1. The firm gives 2 days credit period to retailers and wholesalers free
of interest while making payments.
2. After 2days till 5th day, the firm charges Rs. 30/- per kg.
3. After a week, the firm charges Rs. 100-150/- per kg
Hari Om Steel Industries has kept the above credit policy
applicable only to the regular and big retailers and wholesalers
(customers). The firm has made a list of such customers. For other
customers the firm takes prompt payments after a day.

PROFITS AND TAXES

Whenever we hear the word- Business or Firm the first thing
which comes to our mind is what profits and taxes. Profit is the return to
an owner of capital stock (means of production or land) in any productive
pursuit involving labor, or a return on bonds and money invested in
capital markets.
A tax is a financial charge or other levy imposed upon a taxpayer
(an individual or legal entity) by a state or the functional equivalent of a
state such that failure to pay is punishable by law. Taxes are also imposed
by many administrative divisions. Taxes consist of direct or indirect
taxes and may be paid in money or as its labor equivalent.
Every firm or organization has to manage and look for its profits
and taxes. Profits are mandatory in order to survive in the market and to
run the business on regular basis. Profits are the main motive for every
business. According to the daily turnover of 30-35 tons, the profits of the
firm Hari Om Steel Industries reaches approximate 4-5 lakhs per month.
It may vary every month according to changes in demand and supply of
the product and firms turnover.
We also know that every firm or organization who engages in
business or production needs to pay various types of taxes to the
government in order to carry on its working. Hari Om Steel Industries too
need to pay taxes like:
1) Excise Duty- 12.36% on total production
2) VAT- 5% on sale out quantity
2) Income Tax- Varies due to change in the profits earned

SWOT ANALYSIS

SWOT ANALYSIS
SWOT analysis (alternatively SWOT Matrix) - is a structured
planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in
a project or in a business venture. A SWOT analysis can be carried out for
a product, place or person. It involves specifying the objective of the
business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieving that objective.
Setting the objective should be done after the SWOT analysis
has been performed. This would allow achievable goals or objectives to
be set for the organization.

Strengths: characteristics of the business or project that give it

an advantage over others
Weaknesses: are characteristics that place the team at a
disadvantage relative to others
Opportunities: elements that the project could exploit to its
advantage
Threats: elements in the environment that could cause trouble
for the business or project

Identification of SWOTs is important because they can inform

later steps in planning to achieve the objective. First, the decision makers
should consider whether the objective is attainable, given the SWOTs. If
the objective is not attainable a different objective must be selected and
the process repeated. Users of SWOT analysis need to ask and answer
questions that generate meaningful information for each category
(strengths, weaknesses, opportunities, and threats) to make the analysis
useful and find their competitive advantage.

Hari Om Steel Industries effectively uses the concept of SWOTanalysis. The firm believes that the weaknesses, threats and negtive side
of the firm should be dealt first. We should not only be happy on our
strengths and good side of the firm. If we want to be prosperous and
move to sustainable development, SWOT-analysis is the must.
Hence the firm has draft a chart featuring the strengths and
opportunities as its good side and weakness and threats as its bad side.
Knowing and compring the intensity of both side the firm takes rational
decision with respect with SWOT-analysis.
SWOT-analysis of Hari Om Steel Industries comprises:
1) Strengths- a. Good reputation in Saurashtra-Kutch region.
b. Goodwill of its promoter- Mr. Manharbhai Virdia
c. Partners possessing different abilities and skills
d. no competitors in nearby region or place
2) Opportunities- a. Firm has planned for expansion and diversification
b. Firm has applied for more loans and cash-credit for
more working capital and cash flow
c. Well establish position with well defined market
niche.

3) Weakness- a. Shortage of consultants at operating level rather than

partner level
b. Firm doesnt have well defined heirarchy level with
well establish unity of command
c. Less availability of more foreman with diversed skills
d. Have to depend on agents in Bhavnagar Market region
e. Increase labor turnover
4) Threats- a. From larger companies manufacturing ISI-TMT bars
b. Larger consultancies operating at minor level
c. Future trade union problem mah arise
d. Other small consultancies looking to invade the
marketplace

Internal factors The strengths and weaknesses internal to the

organization.
External factors The opportunities and threats presented by the
external environment to the organization.

The internal factors may include all of the 4Ps; as well as personnel,
finance, manufacturing capabilities, and so on. The external factors may
include macroeconomic matters, technological change, legislation, and
socio-cultural changes, as well as changes in the marketplace or
competitive position. The results are often presented in the form of a
matrix.

FUTURE PLANS

FUTURE PLAN

Every firm or organization has to plan about their future

vision and mission about their future prospective. This is important
because it leads to firms growth and expansion, more turnovers, more
profits, more prosperity and more customers. If the future plans of the
firm is viable, effective and valid it helps the firm to sustain in the
competitive market and prosper with sustainable growth.
Hari Om Steel Industries too have such futuristic plans for
growth, expansion and diversification. The firm has decided to expand
the production by implanting new and more machinery. It has also
decided to diversify its products by producing new types of metal angles,
bolts, 6mm and 8mm TMT BARS, metal rounds and many more metal
products. It also has decided to implant machines and process for
manufacture ISI TMT BARS.
For the above future plans and make them effective in real,
the firm has applied for more cast credit facilities in the bank for more
working capital and ready cash flow. For purchasing capital goods like
new machines, the firm has also applied for new loans from financial
institution and also has applied for credit in purchasing those expensive
machines.

CONCLUSION

CONCLUSION

I hereby conclude that my visit in M/s Hari Om Steel

Industries really proved beneficial to me. I really got a great exposure in
production and marketing perspectives. I could able to learn the real
business scenario and working in the market. It is very important to learn
business in real life and to gain practical experience, which may prove
very helpful in our theoretical studies.
I am too much interest in entrepreneurship. To be real
entrepreneur and to gain entrepreneur skills, I really got a great
opportunity to gain and learn the skills and experience from Hari Om
Steel Industries.
I was not able to apply the knowledge of business in real life
situation. But now after my practical studies in Hari Om Steel Industries,
I could now relate my knowledge with real life applicability in business
perspective.
If I get chance and more exposure in business world, I would like
to visit more and more firms, industries, companies and organization to
gain whenever I can get from them. The road to success in business can
only be lead by knowledge, practical skills and experience along with
exposure.

SUGGESTION
.

SUGGESTION
Actually I am just a student and to write something as a part of
suggestion for such firm or organization is more than ability and out of
my scope. But the BBA faculty has involved practical study in BBA
course. So student has to work as their reports.
I would rather suggest Hari Om Steel Industries to give me any
suggestion to improve my way of dealing with business aspects and how
to develop my entrepreneur skills and abilities. Suggest me the different
ways from which I can able to learn more and more and how to gain more
practical knowledge.
Instead of suggestion, I would prefer to write experience report
which I have gain from Hari Om Steel Industries.
Yet small suggestion for the firm can be that the firm should invite
more and more such students from different universities and set up a
learning camp in their firm and university faculties should also help such
firm in that process. In this way student can able to learn the practicality
aspect of business world and even the firm or organization can get new
and innovative ideas from students.

BIBLIOGRAPHY

BIBLOGRAPHY
NAME
1. BUSINESS ORGANIZATION & MGT.
2. PRINCIPAL & PRACTICE OF MGT.

AUTHOR
M.C.SHUKLA
B.S. SHAH