Organisation Study

Project Report on
“ORGANISATIONAL STUDY OF
M.N. CHEMICALS PVT LIMITED”
BY
SHIRISH UPADHYA
USN 1RX18MBA79
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY,
BELGAUM
In partial Fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of:
Internal Guide External Guide
Prof. Ajit Deva Mr. Nityanand Naik

Assistant Professor Quality Assurance Officer
Department of MBA M.N. CHEMICALS LTD
RNSIT, Bangalore.
Department of MBA and Research Centre

RNS INSTITUTE OF TECHNOLOGY
Channasandra, Subramanyapura PO, Bangalore – 560098
2018 – 2020
Project Report on
“ORGANISATIONAL STUDY OF
M.N. CHEMICALS PVT LIMITED”
BY
SHIRISH UPADHYA
USN 1RX18MBA79
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY,
BELGAUM
In partial Fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of:
Internal Guide External Guide
Prof. Ajit V Deva Mr. Nityanand Naik

Assistant Professor Quality Assurance Officer
Department of MBA M.N. CHEMICALS LTD
RNSIT, Bangalore.
Department of MBA and Research Centre

RNS INSTITUTE OF TECHNOLOGY
Channasandra, Subramanyapura PO, Bangalore – 560098
2018 – 2020
DECLARATION
I, SHIRISH UPADHYA, hereby declare that the report entitled “ORGANIZATION

STUDY AT M. N. CHEMICALS” prepared by me under the guidance of Mr. Ajit V
Deva, faculty of M.B.A Department, R N S Institute of technology and external
assistance by Mr. Nityanand Naik.
I also declare that this study is towards the partial fulfillment of the university
regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belagavi.
I have undergone an organization study for a period of 4 weeks. I further declare that this
report is based on the original study undertaken by me and has not been submitted for the
award of any degree/ diploma from any other University/ Institution.
Place: Bengaluru SHIRISH UPADHYA

Date: USN 1RX18MBA79
ACKNOWLEDGEMENT
It was my privilege to undergo the organization study at M. N Chemicals. There are

many people who have helped me to complete this study successfully. It is with the
gratitude that I acknowledge the help, which guided my efforts with success.
I wish to express my profound gratitude to Dr. H N Shivashankar, Director, RNSIT, for

his constant encouragement.
I express my sincere thanks to Dr. M K Venkatesha, Principal, RNSIT, for his kind
words of motivation.
I also express my sincere thanks to Dr. U Bhojanna, Head of Department, MBA

Department and Research Centre for being the backbone of support throughout the study.
It is my foremost duty to express my wholehearted thanks to my guide Mr. Ajit V Deva

for the valuable guidance, support and motivation during the course of this study. The
inspiration provided by my guide at every stage of my work has helped me immensely in
completion of this organization study and preparation of this report.
My profound thanks to Mr. Nityanand Naik, who took interest in explaining concepts
and imparting necessary inputs pertaining to the organization study, without which it
would not have been possible for me to complete this work. I am also very thankful to
other executives and staff of the company for their co-operation.
Last, but not the least, I am indebted to my family members and friends for their
blessings and encouragement.
Place: Bengaluru Shirish Upadhya

Date: USN 1RX18MBA79
TABLE OF CONTENTS
SL.NO. CONTENTS PAGE
NO.
Chapter 1 1.1 Introduction about the Internship 01
1.2 Industry Profile 02
Chapter 2 Organization Profile 04
2.1 Introduction 04
2.2 Nature of the Business 05
2.3 Vision, Mission, Quality Policy 05
2.4 Work Flow Model 06
2.5 Product Profile 06
2.6 Ownership Pattern 08
2.7 Achievement and Rewards 08
2.8 Competitor Analysis 08
2.9 Market Share analysis 08
2.10 Skill matrix & Competency mapping 09
2.11 Future Growth and Prospectus 10
Chapter 3 MC Kinsey’s Model 12
Porters Five Force Model 32
Chapter 4 SWOT Analysis 36
Chapter 5 Analysis of Financial Statements 39
Chapter 6 Learning Experience 50
Bibliography
EXECUTIVE SUMMARY
Study of the organization offers a critical understanding of organizational behavior and its
theoretical foundations and is particularly concentrated on complicity and dynamics of the
organization. It is intended for those seeking a sound theoretical foundation in the
organization studied, a deeper understanding of how complexity and dynamics are handled
by the organization, and a sophisticated level research that will create transferable skills
and promote jobs in a wide range of organizations.
Studying the organization, it must concentrate on changing certain elements of the

organization structure. The transfer of information, skills, to the client system must be
learned. An enhancement in the organization must be demonstrated in order to provide the
efficiency of the client system.
The research focuses on the manufacturing process conducted out in M N CHEMICALS

PVT LTD., Kumta and gathered data about each department by consulting the full
department's managers.
This report highlights M N CHEMICALS PVT LTD's vision, mission, quality policy and
quality objective. along with the manufacturing process and other departmental operations
carried out and also highlights its strength, weakness, opportunities, threats, the actual
study of the company by implementing the 7S Framework with all the. Finally, the
assessment of the financial statements was conducted to study the company's efficiency
using few significant ratios. Study shows that M N CHEMICALS PVT LTD. Kumta
needs to improve its technique further and grow its manufacturing ability, as well as
minimize its expense to gain more profit. Now they are trying to adopt new techniques in
the production process which is a good sign of improvement.
Organization Study of M. N. Chemicals
CHAPTER – 1
INTRODUCTION ABOUT THE INTERNSHIP
AND
INDUSTRY PROFILE
1.1 Introduction about internship
Internship is a process in which students render their service to an organization

that helps to develop special skills related to the job or what the job actually requires.
At M.N.CHEMICALS PVT.LTD, this internship was undertaken to enhance practical
knowledge and enter a real individual exposure.
Internship is crucial for the entire portion of the academic appointed to the VTU
program course of research. It is a method of understanding and implementation to
acquire and obtain a great mental penetration and criticism about the company sector
through a series of MBA VTU learners.
The study was confined to the organization with a comparative study of various
department of the organization in the industry wherever required. The study was
conducted to get orientation towards various functional activities. This study helps to
know about the functional as well as managerial aspects of the company, and have a
practical knowledge of process involved in the company. The main objective of
company is:
• To get practical knowledge about the company

• To understand the industry and company background
• To have knowledge about functions of different department
• To analyze the implementation of McKinsey’s 7S model in the company
• To assess the company’s Strength, Weakness, Opportunities and Threats
• To give proper suggestions to the concerned persons and the company based on
the study
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INDUSTRY PROFILE
1.2 INTRODUCTION ABOUT CHEMICAL INDUSTRY
The Indian chemical industry includes primarily of 3 key segments; basic
chemicals as well as petrochemicals, fertilizers, inorganic chemicals
and alternative industrial chemicals, specialty chemicals
and knowledge chemicals together with pharmaceuticals and agro-chemicals. the
massive variety and wide spectrum of chemical product are often classified
into many categories, including organic and inorganic (commodity) chemicals,
plastics and petrochemicals, dyes and pigments, fine and specialty chemicals,
pesticides agro-chemicals, and fertilizers. The chemical industry is one among the
foremost diversified industrial sectors in India and has come to form the backbone
of India’s industrial and agricultural development by providing crucial building
blocks of downstream industries and finish product for private customers.
The fresh stage of development of the chemical industry is on its way to India.
The Indian chemical industry plays a key role in the country's economic development
as one of the traditionally defined industries. This sector is one of the fundamental
industries of commodities and a modernization aimed at increasing effectiveness,
reducing the costs of the whole economy. The segment study records a study growth in
the overall Indian industry with immense potential for growth as per capita income
consumption is below the world average.
For thousands of years chemicals were produced. It can be traced back to the
past, when alkali and calcareous stones have been mixed to create glass and saltpeter
has become an explosive that is like contemporary artillery powder. Middle eastern
craftsmen used early in the year 7000B.C to refinish alkaline and Cale stone for glass
production. And in the sixth century B.C. the Phoenicians made soap. In the 10th
century A.D, the Chinese created dark powder and used it as a primitive explosive.
Alchemists manufactured tiny quantities of chemicals in the middle ages, and the
pilgrim in Massachusetts made saltpeter for gun powder and tuning chemicals by 1635.
But, first in the 19th century, large chemical industries evolved.
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1.3 Growth of chemical industry

The Indian chemical sector is one of India's oldest sectors and has contributed
enormously to India's industrial and agricultural growth. In India, the chemical sector
that produces almost 13% of total country exportation grows every year at a rate of
development of 10 to 12%. The contribution by customs and excise is 20% to the
complete sales. In the country's economy Indian chemical industries have an important
position. It has grown by 12% annually, which is nearly twice the GDP rate. Indian
chemical of the highest quality can be completed with the best.
Structural Advantage
With a growing market and purchasing power, the domestic industry is likely to
growth at over 10-13% in the coming years. Growing disposable incomes and
increasing urbanization are fueling the end consumption demand for paints, textiles,
adhesives and construction, which, in turn, leads to substantial growth opportunity for
chemical companies.
High Domestic Consumption
The Chemical industry In India is the largest consumer of its own products,
consuming 33% of its output. With promising growth trends in chemical industry, this
internal consumption is also set to rise.
Diversified Industry
The Indian chemical industry has a diversified manufacturing base that

produces world class products. There is a substantial presence of downstream industries
in all segments. Further, this large and expanding domestic chemical market also boasts
of a large pool of highly-trained scientific manpower.
Promising Export Potential
Chemicals constitute 5.4% of India’s total exports. India already has a strong
presence in the export market in the sub segments of dyes, pharmaceuticals, agro-
chemicals. India exports dyes to Germany, UK, US, Switzerland, Spain, Turkey,
Singapore and Japan.
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CHAPTER - 2
ORGANIZATION PROFILE
2.1 INTRODUCTION
In the context of the company's law of 1956, M.N. Chemicals Ltd. was
established as private Ltd on June 5, 1994. The firm is currently transformed into a
public company. M N Chemical Ltd is one of the group businesses amongst Gemini
Securities, Gemini Professional and Pharmacy Food, and is a leading industry in the
Uttar Kannada district managed by some other specialist M N Chemical Ltd. The firm
produces bulk medicines which include sodium chloride, magnesium chloride, sodium
acetate as well as sodium carbonate and calcium chloride. Potassium, sodium acid
phosphate and sodium acetate were developed in line with the business.
M N Chemicals is located at Kumta, UttarKannada District, Karnataka state

Western Coastal Sahara Ghats, pollution free area, 0.5 Km from N.H. 66 and 2 Km
from Kumta Konkan Railway Station.
From a tiny start in 1995, M N Chemical Ltd began manufacturing bulk

medicines in an industrial region, Kumta which does not have the right road
infrastructure, and electricity communication has begun very difficult with the
production of few products such as Sodium Chloride IP and Potassium Chloride IP.
Used to prepare I.V and dialysis solutions, above products are lives saving bulk drugs.
M.N. Chemicals has succeeded in providing good quality products and services
followed by an updated technology. By research and development, well equipped
quality and assurance departments the company has achieved excellence in providing
quality products. M.N. Chemicals has multinational customers like Novozymes South
Asia Pvt Ltd, Normal Ltd and Orchid Ltd, Fine Chemicals Ltd, Ajanta Pharma Ltd etc.
Recently M.N. Chemicals received ISO 9001-2008 for their quality system. The
company has further ambitious plans to expand and improve its activity in
manufacturing some more drugs in the upcoming years.
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2.2 NATURE OF THE BUSINESS

The nature if the business explains whether the company is carrying the large-
scale business or the small-scale business. The M N Chemicals is a small-scale business
organization. This is an engaged in the limited production of the bulk drugs. The initial
capital is just 30 lakhs. The labor which was used in the starting period is very less. At
present there are 102 workers. The place where industry is located it also urban area. It
is an industry which is phasing the problem of no proper facilities of the road, electricity
and communication at the beginning. With the great difficulty they started
manufacturing the bulk drugs like sodium chloride IP, Potassium Chloride IP. M N
Chemical Limited Company is established in the year of 1994. After facing the
difficulties like the problem of transportation, raw material and power and it has able
to produce the products and able to survive in the competitive world. At first it was
started as the partnership firm than it is become as the private company. The production
capacity of the company is expanded to 1800 mega tones to 3600 mega tone
2.3 VISION, MISSION, QUALITY POLICY
2.3.1 Vision
Strive to develop and employ innovative technological solutions to add value to
business with progressive and proactive approach.
2.3.2 Mission
Over the year, M N Chemical has persistently endeavored to impart the highest
values to its consumer. This is a unique establishment that keep the promise to live up
each of its commitments with sheer dedication to fulfill the needs of all those who meet
us.
2.3.3 Quality Policy

They have adopted total quality control system to achieve the quality control system to
achieve the quality production to the customer satisfaction. Raw materials, packing
materials, finished products and processed control test are carried out of every stage in
quality control laboratory
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2.3.4 Quality Objectives

1. To impart necessary training to employees, perform their tasks effectively and
build team culture
2. To achieve customer satisfaction to the highest level
3. To consistently upgrade the technology innovations
4. To maintain clean, safe and hygienic environment
5. To reduce cost of production and thereby serve the society
2.4 WORKFLOW MODEL
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2.5 PRODUCT PROFILE
SODIUM CHLORIDE
The required quantity of commercial grade salt is dissolved in water to get brine
solution. This solution is then treated with chemicals to remove the Sulphates, Calcium,
Magnesium, Iron and other heavy metals. After successful completion of this process,
the solution is allowed to settle 6 to 8 hours and filtered to get clear solution. The same
solution is adjusted to PH 5 to 6. It evaporates in the evaporating vessel and crystals
formed fed into centrifuge and after centrifuging the same is dried in the drier at 100-
degree c. After proper drying the material is tested in the laboratory and packed in
HDPE polyline bags of 50 Kgs.
POTTASIUM CITRATE
The potassium citrate is manufactured by adding citric acid to caustic solution quite
slowly and to get PH 8.5. Then after cooling the solution is filtered and concentrated in
an evaporator. After testing in the laboratory, the material, potassium citrate is packed
in HDPE ploy lined bags
SODIUM ACETATE
The sodium acetate can be manufactured by adding acetic acid to caustic soda solution
in D.M water. Then filtered and evaporated to get the crystals. These crystals
centrifuged and then dried at 60 degree Celsius for about one hour. Then the material
is tested and packed.
POTTASIUM CHLORIDE
Dissolve the technical grade potassium chloride in D M water and treat chemicals to
remove the impurities and allow it to settle for clarity. Then adjust PH to 6 by adding
HCL and evaporate the same and to crystallize. After crystallized concentrate in
centrifuged and then dried in a tray drier. After testing the same in laboratory, pack the
same in HDPE polyline bags of 50 kgs.
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SODIUM CITRATE
The required quantity of Citric acid is dissolved in pure water to get clean solution. And
then caustic soda is slowly added to get PH 8.5. The reaction is exothermic heat develop
and precaution is taken during the reaction. The reaction is cooled and material is
formed centrifuged and dried in a tray drier. Then tested and pack the same in HDPE
Polyline bags of 50 Kgs.
2.6 OWNERSHIP PATTERN
The M N Chemicals Ltd was established on 5th June 1994 under the company’s act
1956. When the M N Chemical was established it was a partnership firm. In the year
1998 it was converted into private company.
• Chairman and Managing Director Naveen Patil

• Executive Co-Ordinate Sridhar Patil.
• Nityanand Naik Manager of the Quality Assistance.
2.7 ACHIEVEMENTS AND REWARDS

• MNC achieved several awards and recognition including the prestigious GMP
certification.
• 2006: Awarded by jewel of India for its outstanding performance
• 2004: National gold star award
• MNC proposes to get the QMS validates leading to MNC being awarded a
certificate of companies to ISO 9001:2008.
• It is also awarded by the international Institute of the Education and
Management (IIEM) Delhi
2.8 COMPETITOR ANALYSIS

The major competitors for the company are
1. Bombay Rasino Herbs Offering premium quality Ammonium Chloride,

Potassium Chloride, Zinc Sulphate Heptahydrate, Zinc Sulphate Monohydrate
this company is also offering different 27 product ranges they also produce
sodium chloride IP which has different grades and they are selling this at 15
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rupees lower, whereas M N CHEMICALS are selling sodium chloride at 18

rupees.
2. J D Industry Belgaum selling the products at 16 rupees
3. Nandu chemicals Hubli,
These are industries who compete in pricing levels and also in quality products
2.9 MARKET SHARE ANALYSIS
The area of operation of small units is generally localized catering to the

location of local or regional demand. The overall resources at the disposal of small-
scale units are limited and as a result of this, it is forced to confine its activities to the
local level.
2.10 SKILL MATRIX AND COMPETENCY MAPPING
2.10.1 Competency Mapping
Competency mapping is a process to identify key competencies for an organization

and a job and incorporating those competencies throughout the various processes in the
sense job evaluation, training, recruitment of the organization.
Competency mapping involves the process by which we determine –
The nature and scope of a specific job role, the skills required, the level of knowledge
required, and the behavioral capacities required to apply those skills and knowledge in
that role.
• Competency mapping plays a vital role in selecting, recruiting and retaining the
right people. When the competency required for a particular job position is
mapped, an accurate job profile is created.
2.10.2 Skill Matrix

A skill matrix is a table that displays people’s proficiency in specified skills and
knowledge as well as their interest in working on assignments using these skills and
knowledge.
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1- Basic Skills 2- Can Work with Assistance

3- Can work independently 4- Can Train Others.
2.11 FUTURE GROWTH AND PROSPECTUS

M N Chemical Pvt ltd manufactures bulk drugs and fine chemicals in India, at
present they are producing 300 Mt of different chemicals and soon they are going to
increase their production to 400 Mt of different chemicals.
Their main future growth:
➢ To gain customers by their good quality of products.
➢ To provide employment opportunity
CUSTOMERS OF THE COMPANY
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Name of the unit: M N Chemicals Ltd.
Constitution: Private Closely Held Limited Company.
Registered Office of the Industrial Estate, Hedge road, Kumta-

Company 581343 Karnataka
Year of Expansion 2002
Ownership Pattern Private Company
Type of Industry Bulk Drugs Manufacturers.
(Pharma intermediaries)
Infrastructure Power, Water, Stream, Manpower.
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CHAPTER - 3
MCKINSEY’S 7’S MODEL
3.1 INTRODUCTION
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom
Peters, Robert Waterman and Julien Philips with a help from Richard Pascale and
Anthony G. Athos. Since the introduction, the model has been widely used by
academics and practitioners and remains one of the most popular strategic planning
tools. It sought to present an emphasis on human resources (Soft S), rather than the
traditional mass production tangibles of capital, infrastructure and equipment, as a key
to higher organizational performance. The goal of the model was to show how 7
elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared
values, can be aligned together to achieve effectiveness in a company. The key point of
the model is that all the seven areas are interconnected and a change in one area requires
change in the rest of a firm for it to function effectively.
3.2 FRAMEWORK OF MCKINSEY’S 7S MODEL

According to this model there are seven basic dimensions which represent the
core of managerial activities. The originators of the model have coined the managerial
variables with words beginning with the letter ‘S’ so as to increase the communication
power of the model. The 7 ‘S’ are,
• Strategy is a plan developed by a firm to achieve sustained competitive

advantage and successfully compete in the market. What does a well-aligned
strategy mean in 7s McKinsey model? In general, a sound strategy is the one
that’s clearly articulated, is long-term, helps to achieve competitive advantage
and is reinforced by strong vision, mission and values. But it’s hard to tell if
such strategy is well-aligned with other elements when analysed alone. So, the
key in 7s model is not to look at your company to find the great strategy,
structure, systems and etc. but to look if it aligned with other elements. For
example, short-term strategy is usually a poor choice for a company but if it
aligned with other 6 elements, then it may provide strong results.
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• Structure represents the way business divisions and units are organized and
includes the information of who is accountable to whom. In other words,
structure is the organizational chart of the firm. It is also one of the most visible
and easy to change elements of the framework.
• Systems are the processes and procedures of the company, which reveal
business’ daily activities and how decisions are made. Systems are the area of
the firm that determines how business is done and it should be the main focus
for managers during organizational change.
• Skills are the abilities that firm’s employees perform very well. They also
include capabilities and competences. During organizational change, the
question often arises of what skills the company will really need to reinforce its
new strategy or new structure.
• Staff element is concerned with what type and how many employees an
organization will need and how they will be recruited, trained, motivated and
rewarded.
• Style represents the way the company is managed by top-level managers, how
they interact, what actions do they take and their symbolic value. In other words,
it is the management style of company’s leaders.
• Shared Values are at the core of McKinsey 7s model. They are the norms and
standards that guide employee behaviour and company actions and thus, are the
foundation of every organization.
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Fig 3.2 McKinsey’s 7S Model
3.2.1 Strategy
Strategy relates to systematic action to attain the goals of the business and to the
way it communicates and executes the vision and direction of its businesses. Strategy
is an organization plan designed to achieve the defined objectives and a set of choices
and actions to achieve a viable competitive benefit.
According to the McKinsey’s Model, strategy could be characterized as "the

organization’s plan for the development of good quality and well-being policies for
good quality and safety protection is a consistent set of actions directed at obtaining
sustainable benefits over competitive improvement through client use and allocating
funds for MN chemicals. The waste disposal approach taken by the company should be
taken into account. Waste disposal project was taken into consideration in plant
prosperous therapy.
3.2.2 STRUCTURE
ORGANIZATION STRUCTURE
An organizational structure consists of activities such as task allocation, co-ordination

and supervision, which are directed towards the achievement of organizational aims.
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Organizational structure refers to the basic hierarchical procedure in which the

organization carries out their business accompanying baggage that shows whose tasks
are divided and integrated. These relationships are frequently diagramed in the
organizational chart. Most of the organizations use some mix of structure pyramid,
matrix or networked ones to accomplish their goals. The structure is formalizing
relationship, roles and responsibilities in order or components are interrelated or
interconnected. The entire workforce works towards achieving the organization’s
vision and mission. This is essential for achieving organizational goals and objectives.
Fig 3.2.1: Organization Chart
The above organizational structure shows that managing director has a major
position in the company and he gives the information, suggestion to managers of several
department of production Manager, Lab Chief, Marketing Manager, Stores Manager,
Security Officer, HR manager is working under the Managing Director. Departments
are separately structured and those department headed by different manager under the
assistant managers are designated. The design of organizational structure is a critical
task of the top arrangement of an organization. It refers to organization arrangement
and relationships. It prescribes formal relationships among various positions and
activities. It helps to co-ordinates various departments by this over all activities
conducted effectively. Major decision however is taken at the top-level management of
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the company. For analyzing and for taking decision the top management will consult
the managers and lower level staff. Performance of various tasks in department will be
assigned to its functional head.
Responsibilities:
Managing Director
• He has to make decisions for certain issues. For example, the decision relating
to the production and quality management, adoption of the new techniques and
machineries sales and distribution of the product.
• Managing director supervises the whole works of lower category of the officials
and also, he gives guidelines for those officials.
• Managing director control over activities of working group, also supervise day-
to-day transaction systematic manner.
• All officials must have to follow his guidelines in a responsive manner.
Following are the main departments in an organization
• Human resource Department

• Finance Department
• Production Department
• Stores Department
• Marketing Department
3.2.1.1 Human Resource department
The Human Resource department is responsible for the most important resource
that plays a key role in the development of the organization. Human resource
management is concerned with people at work and is to develop good relationship
between management and employee. Personnel management is that part of total
management of an organization, which specially deals with human resources in respect
of their procurement, their development, their motivation, towards the attainment of
organization objective. Human resource management (HRM) is the function within an
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organization that focuses on recruitment and management of the people who work in
the organization.
Managing
Director
H.R
Manager
Assistant
H.R
Manager
Shift
Officer
Fig 3.2.1.1Structure of Human resource department
The human resource department in the company is leaded by the Mr. Gajanan
who is HR manager and also Co-Ordinates of the Quality Control Department.
Human Resource Department main work is to manage the people who are
working in the organization. As per the department rules the department is headed by
Managing Department. He takes the main decision relating to the HR department.
Under his direction the Training and Human Resource Department is working. The HR
manager appoint the Asst. Manager, to what work and decisions, manager has to follow
the task. Then he will assign work to workers who are working under him and give the
proper training to them. Asst. Manager assigns the work to shift manager and
supervisor. Supervisor guides and provides timely information to workers.
3.1.1.2 Finance Department
Finance is like backbone of the company so that the company should have
appropriate funds to meet their expenses and to stay in market by having good funds to
survive in business, and his company is having good surplus and reserves in every year
which should be managed for future uncertainty in business and even cash and bank
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balance has increased which shows company’s good performance in business. Finance
is the major part of every organization. It is therefore the requirement of every
organization to maintain records of finance which consists of all expenditure and
incomes of the organization. For this organization have different financial statements.
Managing
Director
Accounts
Officer
Chief
Assistent
Accounts
Officer
Accountant
Clerk
Fig 3.2.1.2 Structure of Finance Department
The finance accounts department in the company leaded by the Nuveen Patel is
having the 23 years of experience in the field of the finance and accounts. In finance
department accounts officer check all the documents which is collected from various
departments. Any decisions which is related to the financial aspects of the company, it
will be decided by this account departments only. He completely understands all the
information of various the departments, which is related to finance, which is essential
to take that decision.
The structure shows, the finance department is headed by Account Officer.

Account officer (finance and account), who is supported by the Assistant Account
Officer is further helped by assistants. They are engaged in the preparation of day- to-
day transaction and also the preparation of various books requires for the maintenance
of asset and liability of the company. The Managing Director appoints the Account
Officer, Manage Cost and Budget Cost section, Cash and Bill section and Tax salary
Section.
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Assistant Accounts officer maintains tax related works and employee salary.
Clerks are working under cost, budget, cash, bill, tax salary section managers, they
maintain the day to day financial books, ledgers and updating finance transaction and
they follow the top management decision like estimation a forecasting of the cost
expenses.
3.2.1.3 Production Department
The Production department of the company is led by Mr. Vasanth Rao. He is

acting as a director of the operation. He is a F.D.A approved manufacturing chemist
having a 23 year of experience. Production is the process by which raw materials and
other inputs are converted into finished products. production department is headed by
Managing director.
Managing
Director
Product
Manager
Assistant
Production
Manager
Supervisor
Fig 3.2.1.3 Structure of Production Department
Production is the process by which raw materials and other inputs are converted
into finished products. Manager will take the decision regarding the production policies
and they have to give the report to the higher authority of the company. Here general
manager appoints the Assistant Manager. Assistant Manager assigns the work to the
supervisor, supervisor providing guidance and assigns the work to the employees and
workers. According to his guidance workers do their works
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Manufactured products and cost of raw materials
1. Sodium chloride:
The required quantity of commercial grade salt is dissolved in water to get brine
solution. This solution is then treated with chemical to remove the sulphate, calcium,
magnesium, iron and other heavy metals. After successful completion of this process
the solution is allowed to settle 6 to 8 hours and filtered to get fine solution. The same
is adjusted to pH 5 to 6. It evaporates in the evaporating vessel, and fed into a
centrifuging the same is dried in the tray drier at 100 C. after proper drying the material
tested in the laboratory and packed in HDPE ploy lined bag of 50kgs.
Raw material required one production and its costs:
Quantity Cost (Rs) Amount (Rs)
Common salt 1115kgs 11.00 12265
Sodium Chloride 3kgs 40.00 120.00
Soda Ash 3kgs 23.00 69.00
Caustic soda 2kgs 36.00 72.00
HCL 4Ltr 7.00 28.00
Filter Aid 100gms 64.00 6.40
Charcoal 10gms 45.00 0.45
Fuel-LDO 300mtrs 1100mtrs 1760.00
Packing charges 50kg bags 23.00 460.00
TOTAL 14780.95
Cost of production- per kg 14.78
Selling price- per kg Rs 18.00
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2. Potassium citrate:
The potassium citrate is manufactured by adding citrate acid to caustic potash

solution quite slowly and gets pH 8.5. Then after cooling, the solution is filtered and
concentrated in an evaporator. After cooling crystallized material is centrifuged and
then dried in a tray drier.
Raw material required for one mega ton production and its cost:
Citric Acid 832kgs 70.00 58240.0
Caustic potash 375kgs 65.00 24375.0
Filter Aid 100gms 64.00 6.40
Fuel- (Fire wood) 2mtrs 1100 2200.00
Packing charges 20mgs 23 420.00
TOTAL 85281.4
Cost of production-per kg 85.30
Selling price-per kg Rs 90.00
3.Sodium Acetate
The sodium acetate can be manufactured by adding acetic acid to caustic soda
solution in D M water. Then filtered and evaporated to get the crystals. These crystals
centrifuged and then dried at 60 C for about one hour. Then the material is tested and
packed.
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Raw material required for production of one mega ton and its cost:
Acetic Acid glacial 750kg 30.00 22500.00
Caustic Soda 350kg 36.00 12600.00
Filter aid 100gms 64.00 6.40
Fuel-LDO 3mtrs 1125mtrs 3300.00
Packing Charges 20 25 500.00
TOTAL 38906.40
Cost of production- per kg 38.9
4. Potassium Chloride:
Dissolve the technical grade Potassium Chloride in D M water and treat

chemical to remove the impurities and allow it to settle for clarity. Then adjust pH to 6
by adding HCL and evaporate the same to crystallize. After crystallized concentrate is
centrifuged and then dried in tray drier.
Raw material required for one mega ton production and its cost:
Potassium chloride tech 1150kg 38.00 43700
Barium chloride 3.00kgs 40.00 120.0
Potassium carbonate 0.50kgs 40.00 20.0
Caustic potash 1.00kgs 65.00 65.0
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HCL 0.50kgs 7.00 3.50
Filter Aid 100.00gms 64.00 6.40
Fuel-Fire wood 2.5mtrs 1100 2750.0
Packing charges 20 21 420.0
TOTAL 47085.0
Cost of production-per kg 47.10
5. Sodium citrate:
The required quantity of Citrate Acid is dissolved in pure water to get clean solution.
And then Caustic soda is slowly added to get pH 8.5. The reaction is exothermic heat
developing and precaution is taken during the reaction. The reaction is closed and
material formed is centrifuged and dried in a Tray Drier. Then tested and pack the same
in HDPE poly lined bag of 50 kg.
Raw material required for one mega ton production and its costs:
Citric soda 861kgs 70.00 60270.00
Caustic soda 375kgs 36.00 13520.00
Filter Aid 0.50kgs 64.00 32.00
Fuel-LDO 1mtrs 1100 1100.00
Packing charges 20 21 420.00
TOTAL 75322.00
Cost of production per-kg 75.33
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Selling price per-kg Rs 80.00
3.2.1.4 Store Department
A store department is a retail establishment which specializes in satisfying a

wide range of consumer’s personal and residential durable goods product need and at
the same time offering the consumer a choice multiple merchandise lines, at variable
price points, in all product categories. Store department its work is store the finished
product sufficiently with good temperature. The store department is working as link
between production and marketing department. After conversion of raw material as
finished goods immediately it goes to store department then store manager send those
finished goods to marketing.
Managing
Director
Stores
Manager
Assistant
Stores
Manager
Clerk
Worker
Fig: 3.2.1.4 Structure of Store Department
Store is the function of receiving, storing and issuing materials. It involves

supervision or clearance of incoming suppliers. The store manager receives material
requirement indent from different indent from different department. The managers
assign the work to Assist. Manager has to verify the indent with correct specification
and quantity. After Asst. manager will check indent they assign to supervisor, he checks
quantity available in stock at store and take further action. Clerk will give material and
maintain properly. The supplier prepares a quotation and send to the store manager, the
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supplier receives the quotation from different suppliers. Then they analyze best
quotation and send to top management.
Functions of Store department
Following are the main functions of store departments are
• Keeping the materials in stores with proper tag in respective racks

• Stock position will enter in stock register.
• On respect of the issue of slip from consuming department.
• Material will be receiving and will be entered in corresponding ledger.
• Balance stock available in store will be shown in registered.
• For minimum stock item which special stock-maintained purchase action will
be taken by stores if the minimum stock level goes billow the required level.
• Inventory management.
3.2.1.5 Marketing Department
Introduction
Marketing is a systematic function and it has its own importance in every

organization. Main objective of marketing department to identify customers need and
satisfies their needs. The objective can be achieved only by moving goods and services
from producers to final consumer. Marketing department has close contact with the
production department because the marketing department is one, which provides
information regarding customer needs in the sense of production design, style and
packaging contains other information regarding the product.
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Managing
Director
Marketing
Manager
Assistant
Marketing
Manager
Sales
Person
Fig: 3.2.1.5 Structure of the marketing department
The marketing department acts as a guide and lead the company other
departments in developing producing, fulfilling and servicing products or services for
their customers. From the above it is clear that structure of marketing department starts
from chief executive officer, general manager for administration and marketing for sale
under him. Asst manager assign work to sales people. Marketing people maintain all
marketing functional areas and collect the amount. There are two sales agents within
state and intending agent for outside the state who collects the order from the customer
in all over India.
3.2.3 System
This is another hardware element of business. It is the idea about companies buying
system, management system and accounting practicing system.
• Buying System
This is another part of the company hardware. The concept is to buy a system, sell
a system, manage M N Chemicals Pvt. ltd Ltd, the company is maintaining its stock
using a FIFO method for the purchases of Bangalore, Chennai, Pune, Gorgon raw
materials. the Management and Manufacturing Association of EFD Induction Company
fixes the product cost. Company attempts to keep the product up-to-date.
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• Selling System
The firm sells its product by employing intermediaries and displaying their heating,
hardening, etc. products of distinct truths depending on the burst factor and gram square
meter value through marketing executives Based on these parameters the business sells
its product to intermediaries.
• Management System
The management in the company is more of democratic. People may interact with
higher authority member to discuss the issues. They are more of people oriented they
share their thoughts and views with their subordinates.
The services supplied in the business for the employee are outstanding whenever
issues can be solved as easily as possible. M.N Chemicals Pvt. Ltd. with heating,
hardening manufacturing association fixes the price if the product. Company is trying
to maintain up to date in supplying their product.
3.2.4 Skill
skill relates to the reality that staff have the abilities to pursue a business
strategy. Training and development to ensure that individuals understand and keep up
to date about their employment.
With the latest technique the company requires technical skills for production
and manufacturing division. Also, it requires strong management skills in marketing
and H.R division. The marketing executives must have good communication skills and
better knowledge of the company and its products.
M N Chemicals Pvt. Ltd. Company gives more stress on production. This also
gives importance to maintain standard in quality of products. M N Chemicals Pvt. Ltd.
Company main intension is continuing improvement in product and processes. The
primary objective of the business is to preserve high product quality which is the
company's key instruments for achievement. At the same time organization success also
depends on the skills of the employees. The company conducting different training
programs to employees in order to meet the quality of the product of M N Chemical
Pvt. Ltd. Company keeps up grading process and getting feedback from the customers.
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A skill is an ability to perform a particular work. It requires a good education quality,

skills to work, and make a task as very effective.
3.2.5 Staff
In the McKinney’s 7S framework the term “staff” as a specific connotation.
According to Waterman and his colleagues the term “staff” refers to the way
organization introduce young recruits into the main of their activities and the manner
in which they manage their careers as the new entrants develop into future.
The number of workers who have attained SSLC qualification is 26 and PUC is
30 and under qualification 23, and the post-graduation 14, the number of unskilled
workers is 9.
Staff implies human resource schemes that include assessment, training,

salaries, and intangibles, such as motivation, morale, and attitude of employees. The
staff refers to any organization's workers.
M N Chemicals Pvt. Ltd gives salary to office workers once in a month it means
end of the current working month as per their position. And give wages to daily
workers.
Duties and responsibilities of technical staff
• Maintenance of the machine for less breaks down hours by adopted preventing
maintenance.
• Security of the product for quality maintenance in the shift hours
• To achieve maximum product for meeting the targets during shift hours
• Make arrangement for running the machinery for product with minimum waste
generation.
• Productivity of the process of production maintain at higher level.
• To fix the quality of product to the level so that there is no complaint from customers
• To maintain harmony in the labor class involving in the machine operation.
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Employee schemes
Company provides the following amenities and benefits to its employees,

through these employees get more job satisfaction
➢ Bonus
As per bonus act company is providing bonus facilities to each and every employee
through bonus labor interest on the work will goes on increase
• Education allowance Rs 1800 as a gesture
➢ Leave
Each and every employee’s gets leave facility, casual leave, and sick leave
facility and weekly holiday also provided by the company to its labors as it is a process
industry so they are given staged weekly holiday.
➢ Employees provident fund scheme
Company is providing to each and every employee on the basis of designation

of employee the PF volume is decided and other facilities.
➢ Canteen
M N Chemicals Pvt Ltd having a good and healthy canteen facility to its employees
➢ Uniform
The company providing uniform facility to its permanent worker as agreed in

the wage settlement. That is 3 pairs of uniforms to each and every worker every year.
➢ Personal safety during training period
M N Chemicals Pvt Ltd Company has personal safety policy to the workers during
training period.
• Many wallboards are kept in the plant to bring awareness of safety to their
employees.
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• First aid and fire extinguisher programmers (in house and outdoor program)
organized in order to bring the awareness of safety employees.
3.2.6 Style
M N Chemical Pvt Ltd, company is a private Ltd; whole staffs are treated as
family members. Workers will operate with the interests of their own. Different
organization follows different style. In the case of problem to be solved by a group
people i.e. top down level management of the company. For solving a particular
problem, the managing director of the company will call the departmental heads. They
will gather in the conference hall and starts the discussions for solving the problem.
If it is marketing problem Marketing Manager of the company collect the

required information from the sales executives. The marketing manager analysis this
information and present it to the Managing Director and departmental heads when they
assemble in the conference hall. In the same manner if any problem occurred in H.R
(human Resources) field H.R Manager collect the required information analysis this
information and present it to /the Managing Direction and get required solution for
particular issues.
Management by objective method and management philosophy centered on

turning an organizational goal into a specific objective based on the presumption that
setting a private goal makes an employee engaged, leading to stronger results. M N
chemicals Pvt Ltd Company will attempt to motivate each and every employee in the
aspect of personal goal as well as their organization objective.
As management at all levels is involved in setting their objectives, they are more
committed to achieve the goals and generally they work hard to achieve them. This
style of management basis is for organizational change. A manager at all levels
becomes more aware of the overall objectives and this helps them in understanding
their role in total organization.
At the same moment, this approach contributes to employees trying to improve

their working conditions and contributes to a rise in their power in the working group.
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3.2.7 Shared Values

It refers to the core or fundamental values that are widely shared in the
organization serves as a guiding principle that is important. These values have great
meaning because they focus attention and provide broader sense of purpose. Values are
things that would strive for even if they were demonstrably not profitable. Values act
as an organization’s conscience, providing guidance in time of crisis.
The values and beliefs of the company untimely they guide employees towards
valued behavior. The company tries to satisfy employees, shareholders, customers.
Each and every company must allow shared values. Shared Values refers to the
attitude, cultured values, beliefs and philosophy of an organization. It is backbone for
organizational success. M N Chemicals Pvt. Ltd believes in superior quality and
standard of product for maintaining the quality the company always take care the
overall activities of the company. Company will receive important suggestion from the
side of employee’s interest of the company.
If there is any good suggestion from shop owners, whole sellers, and customers
the company takes the valuable suggestion from the shop owner, whole sellers and in
the side of the customers. To maintain a good relation with the customer it always meets
their needs. M.N Chemicals Pvt, Ltd Company believes that business success is the
combined effort of both management and employees. That it will give much important
on employee’s suggestions and their demand.
PORTER’S 5 FORCES MODEL
Five forces model was created by M. Porter in 1979 to understand how five key
competitive forces are affecting an industry. The five forces identified are
1. Threat of new entrants. This force determines how easy (or not) it is to enter
a particular industry. If an industry is profitable and there are few barriers to
enter, rivalry soon intensifies. When more organizations compete for the same
market share, profits start to fall. It is essential for existing organizations to
create high barriers to enter to deter new entrants
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2. Bargaining power of suppliers. Strong bargaining power allows suppliers to

sell higher priced or low-quality raw materials to their buyers. This directly
affects the buying firms’ profits because it has to pay more for materials.
3. Bargaining power of buyers. Buyers have the power to demand lower price or
higher product quality from industry producers when their bargaining power is
strong. Lower price means lower revenues for the producer, while higher quality
products usually raise production costs. Both scenarios result in lower profits
for producers.
4. Threat of substitutes. This force is especially threatening when buyers can

easily find substitute products with attractive prices or better quality and when
buyers can switch from one product or service to another with little cost. For
example, to switch from coffee to tea doesn’t cost anything, unlike switching
from car to bicycle.
5. Rivalry among existing competitors. This force is the major determinant on

how competitive and profitable an industry is. In competitive industry, firms
have to compete aggressively for a market share, which results in low profits
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Porter’s 5 forces model of M N Chemicals

THREAT OF NEW ENTRANTS low level of entry barrier
BARGAINING POWER OF SUPPLIERS Moderate
BARGAINING POWER OF BUYERS high
THREAT OF SUBSTITUTES Low
COMPETITIVE RIVALRY Highly competitive market
THREAT OF NEW ENTRANT-LOW
• High capital requirement to run company

• Govt regulation and restriction
• Patent regulation
• Huge capital required for R and D
BARGANING POWER OF SUPPLIERS-MODERATE
Chemical industry mostly depends on few large suppliers for raw material
supply, Substitute are very limited, switching cost of suppliers are more because of long
term agreement
Major raw material suppliers of M N CHEMICALS LTD
SI NO VENDOR NAME MATERIAL
1 Thailand and China exports Sodium chloride
2 Madhav Magnesium- Gujarat Magnesium Chloride
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3 Nirla salt Salt
4 Indian Potassium Limited Potassium Chloride
5 U K Salk from England Sodium chloride
6 Sang Froid Pvt Ltd Calcium Chloride
BARGANING POWER OF BUYERS -HIGH
• Buyer are increasing online portals to purchase medicine those that best meet
there needs
• They are ready to switch to other competitors because they have a greater
number of suppliers to choose
• Major buyers of M N CHEMICALS are Nirmala life health care, Buy upon
India, Navakar pharmaceuticals chemical, Food and Drug Corporation, Canton
Laboratory Mumbai, Sushrutha Industries
THREAT OF SUBSTITUTES - LOW
Buyers need same type of chemicals for their usage Change in chemical
composition involves more Rand D cost .There is no common substitutes for chemicals
if they want to produce similar products they require strong R and D department and
high degree of knowledge to produce new products it cost more expense to company
so there is low level of substitutes
COMPETATIVE RIVALARY-HIGH
The major competitors for the company are
1. Bombay Rasino Herbs Offering premium quality Ammonium Chloride,

Potassium Chloride, Zinc Sulphate Heptahydrate, Zinc Sulphate Monohydrate
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this company is also offering different 27 product ranges they also produce
sodium chloride IP which has different grades and they are selling this at 15
rupees lower, whereas M N CHEMICALS are selling sodium chloride at 18
rupees.
2. J D Industry Belgaum selling the products at 16 rupees
3. Nandu chemicals Hubli,
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CHAPTER - 4
SWOT ANALYSIS
SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a

framework for identifying and analysing the internal and external factors that can have
an impact on the viability of a project, product, place or person. SWOT analysis is most
commonly used by business entities, but it is also used by non-profit
organizations and, to a lesser degree, individuals for personal assessment.
Additionally, it can be used to assess initiatives, products or projects.
Strength of M N Chemicals
• A profit-making company engaged in manufacturing of bulk drugs and

intermediaries.
• Company is promoted by technicians and professional having exposure to the
industrial field.
• The location of plant builds in favorable climate condition.
• A Versatile plant capable of change in product mix.
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• Established clientele like nice chemical Cochin, Morgan Industries madras,

Tata pharmaceuticals Bombay, Lakme Ltd. Bombay, S D fine chemical
Bombay, Goa Antibiotics, TDC Ltd marketing network of the company is good.
• The quantity of the products already tested by recognized industrial chemical
research laboratories.
• Contribution from promoters 51.45% of the post public issue equity capital.
• The sensitivity analysis indicate that the unit is capable of withstanding
pressures on margins on account of increase in raw material cost or decrease in
setting price and still generates surplus to service the borrowing and equity.
• The unit is expecting to breakeven at low capacity utilization.
Weakness of M. N. Chemicals
• High overload and fixed costs.

• High transportation cost: most of the raw material purchasing from out of state.
And the main customers staying in out of state, it is difficult to send the produce,
so it will take cost huge.
• No job security.
• Pollution control measures are weak in the company.
• Lack of delegation of water.
Opportunity of M. N. Chemicals
• Raw material: all raw materials are available easy.

• Location: location of the industry is excellent.
• Availability of employees to expand plant capacity.
• All the required infrastructure facility is easily available.
• The company required well modernized technology to produce the quality
product.
• The land required for the proposed expansion one acre is available at the
KSSIDC industrial layout at Kumta. Availability of the land is helpful to
improve the company.
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Threat of M. N. Chemicals
• Stiff competition: the company facing tough competition from other company
to market the product.
• Distant place from Raw material Source: there is the large distance between
supplier and organization so it takes too much cost for transportation.
• Better technology of other manufactures could help them to supply goods at
lesser rates, which could eat the market share.
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CHAPTER- 5
ANALYSIS OF FINANCIAL STATEMENTS
To analyze and interpret financial statements, various instruments are used.

They are: Financial statement horizontal and vertical comparison, fund flows and cash
flow statements, ratio analysis, etc.
Ratio Analysis
Analysis of ratio is an important tool for analyzing the organization's financial

position. Ratio means a quantitative or numerical relationship between two items /
variables. The relationship between two financial statements figures may also be shown
in percentage terms. By using this tool, one can systematically interpret the strengths
and weaknesses, historical performance and present economic results of "M N
Chemical, Kumta after ratios are implemented as an instrument.
1. Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations or those due within one year
Current Ratio= Current asset

Current liability
YEAR CURENT ASSETS CURRENT LIABILITIES CURRENT RATIO
2016 ₹ 7,72,01,683.96 ₹ 8,33,38,416.05 0.93
2017 ₹ 8,72,77,079.60 ₹ 10,00,97,558.63 0.88
2018 ₹ 8,47,12,629.20 ₹ 9,88,80,850.21 0.86
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CURRENT RATIO
0.93
0.88
0.86
2016 2017 2018
Interpretation
The Standard Current Ratio is 2:1, however the firm can have a ratio of smaller
or bigger than that depending on working series. The current asset is Rs 7.7 crore, Rs
8.7 crore, Rs 8.5 crore for the year 2016, 2017, 2018 respectively. Current liability stood
as Rs 8.3 crore, Rs 10 crore and Rs 9.8 crore approximately for the year 2016, 2017,
and 2018 respectively. The current ratio for the years under study stood as 0.93,0.88
and 0.86 for the year 2016, 2017, 2018, It is found that current ratio is decreasing from
year to year.
2. Quick Ratio
The quick ratio is an indicator of a company’s short-term liquidity position and

measures a company’s ability to meet its short-term obligations with its most liquid
assets.
Quick ratio = Current asset - inventory
. Current liabilities
YEAR CURENT ASSETS INVENTORY CURRENT LIABILITIES QUICK

RATIO
2016 ₹ 7,72,01,683.96 ₹ 81,17,421.38 ₹ 8,33,38,416.05 0.83
2017 ₹ 8,72,77,079.60 ₹ 1,06,58,351.06 ₹ 10,00,97,558.63 0.77
2018 ₹ 8,47,12,629.20 ₹ 86,89,956.00 ₹ 9,88,80,850.21 0.77
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QUICK RATIO
0.83
0.77 0.77
2016 2017 2018
Interpretation
The current asset is Rs 7.7 crore, Rs 8.7 crore, Rs 8.5 crore for the year 2016,
2017, 2018 respectively. Current liability stood as Rs 8.3 crore, Rs 10 crore and Rs 9.8
crore approximately for the year 2016, 2017, and 2018 respectively. The company is
facing difficulties in its liquidity also. Standard quick ratio is 1:1.
3. Debtors Turnover Ratio:

The debtor’s turnover ratio is an activities ratio measuring how efficiently firm
uses its assets.
Debtors turnover ratio= Net credit sales
Average debtors
YEAR NET CREDIT SALES AVEARGE DEBTORS DEBTORS TURNOVER

RATIO
2016 ₹ 6,06,78,415.50 ₹ 4,11,31,832.86 1.48
2017 ₹ 6,41,29,812.50 ₹ 3,12,17,721.69 2.05
2018 ₹ 9,31,18,789.50 ₹ 6,43,99,601.51 1.45
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DEBTORS TURNOVER
2.05
1.48 1.45
2016 2017 2018
Interpretation
increase in debtor’s turnover ratio indicates that recovery takes place in

less time period, but if there is decrease in the debtor’s turnover ratio then recovery
takes place high time period. Debtors turnover was good in 2017 whereas it is not much
satisfactory in 2016 & 2018.
4. Fixed asset turnover ratio
The fixed asset turnover ratio is used by analysts to measure operating

performance.
Fixed asset turnover = Net sales

Fixed asset
YEAR NET SALES FIXED ASSET FIXED ASSETS TURNOVER
2016 ₹ 6,06,78,415.50 ₹ 3,55,46,041.00 1.71
2017 ₹ 6,41,29,812.50 ₹ 4,11,31,447.76 1.56
2018 ₹ 9,31,18,789.50 ₹ 4,15,25,638.76 2.24
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FIXED ASSETS TURNOVER
2.24
1.71
1.56
2016 2017 2018
Interpretation
Decrease in ratio may indicate that in efficient utilization of assets, 1.71 in 2016
decreased to 1.56 in 2017 which increased to 2.24 in 2018 which shows a bad sign.
Assets are not properly being utilized in the organization.
5. Inventory turnover ratio
Inventory turnover is a ratio showing how many times a company has sold and
replaced inventory during a given period.
Inventory turnover ratio = sales

Inventory
YEAR NET SALES INVENTORY INVENTORY TURNOVER

RATIO
2016 ₹ 6,06,78,415.50 ₹ 81,17,421.38 7.48
2017 ₹ 6,41,29,812.50 ₹ 1,06,58,351.06 6.02
2018 ₹ 9,31,18,789.50 ₹ 86,89,956.00 10.72
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INVENTORY TURNOVER RATIO
10.72
7.48
6.02
2016 2017 2018
Interpretation
A low turnover rate can indicate poor liquidity, possible overstocking. Here we
can interpret that if the ratio has high then its holding period of inventory is less, and if
less ratio of inventory then large holding period of stock which is not good for the
organization. Organization’s holding period is less and it is an advantageous to the
company.
6. Gross Profit ratio:
It is the ratio that shows the relationship between gross profit and total net sales
revenue. It is a popular tool to evaluate the operational performance of the business.
G/P Ratio = (Gross profit ÷ Net sales) x 100
YEAR GROSS PROFIT NET SALES G/P RATIO
2016 ₹ 53,886.09 ₹ 6,06,78,415.50 0.09%
2017 ₹ 16,05,650.00 ₹ 6,41,29,812.50 2.50%
2018 ₹ 19,54,553.02 ₹ 9,31,18,789.50 2.10%
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GP Ratio
2.50%
2.10%
0.09%
2016 2017 2018
Interpretation
Generally, A high gross profit margin means that the company did well in
managing its cost of sales. It also shows that the company has more to cover for
operating, financing, and other costs. In the year 2016 since the company had less
revenues from the operation and the expenses were more, the company had very less
gross profit where as it improved significantly in 2017. 2018 is also not a worst
condition.
7. Net profit ratio:

It is the ratio that shows the relationship between net profit and total net sales
revenue. It shows the companies actual profit capacity.
N/P Ratio = (Net profit ÷ Net sales) x 100
YEAR NET PROFIT NET SALES NP RATIO
2016 ₹ -52,38,028.91 ₹ 6,06,78,415.50 -8.63%
2017 ₹ 12,99,650.00 ₹ 6,41,29,812.50 2.03%
2018 ₹ 15,80,353.02 ₹ 9,31,18,789.50 1.70%
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NET PROFIT RATIO
2.03% 1.70%
2016 2017 2018
-8.63%
Interpretation
Net profit (NP) ratio is a useful tool to measure the overall profitability of the
business. A high ratio indicates the efficient management of the affairs of business.
Company has suffered a huge loss in 2016, that is because of its performance in
operation and it had also had a theft in that year, these lead to a massive loss of -8.6%.
But in the next year it was able to recover from -8% to 2.03%. Last year also company
enjoyed a decent profit of 1.70 %.
8. Return on investment
Return on investment (ROI) measures the gain or loss generated on

an investment relative to the amount of money invested.
ROI= Net Profit /Total Investment
YEAR NET PROFIT TOTAL INVESTMENT ROI
2016 ₹ -52,38,028.91 ₹ 4,60,43,748.00 -11.38%
2017 ₹ 12,99,650.00 ₹ 4,87,60,322.00 2.67%
2018 ₹ 15,80,353.02 ₹ 5,15,71,765.00 3.06%
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RETURN ON INVESTMENT
2.67% 3.06%
2016 2017 2018
-11.38%
Interpretation
As, 2016 suffered a huge loss it also had the low Return on Investment. But
after that year it earned a decent return on investment and the return is increasing
gradually from year to year. It is advised to further increase ROI. In order to increase
ROI, it’s better to invest in the better productive project so that they can earn more
return on investment.
9. Return on Equity (ROE) Ratio

ROE is a profitability ratio that measures a company's ability to generate profits
from its shareholders ' investments in the company. In other words, the return on equity
shows how much profit each dollar generates from common equity.
ROE=Net Income/ Shareholders Equity
YEAR NET INCOME CAPITAL EMPLOYED ROCE
2016 ₹ 6,21,83,331.40 ₹ 6,82,54,270.00 0.91
2017 ₹ 6,54,61,018.54 ₹ 6,82,54,270.00 0.96
2018 ₹ 9,43,09,641.41 ₹ 6,82,54,270.00 1.38
RNSIT MBA 47
RETURN ON CAPITAL EMPLOYED
1.38
0.91 0.96
2016 2017 2018
Interpretation
Amount available to equity share holders are increasing year by year, which is
a good sign for the equity share holders of the company. 0.91,0.96 & 1.38 was the
ROCE for the years 2016, 2017 & 2018 respectively.
10.Cash Ratio
Cash ratio is the ratio of very liquid current assets such as cash and short-term
marketable securities of a company to its current liabilities. Cash ratio is the most
conservative liquidity ratio because it takes only the near-cash current assets and
compare them with current liabilities. This ratio is most relevant for companies in crisis
situations.
Cash + Cash Equivalents

Cash Ratio =
Current Liabilities
YEAR CASH & EQUIVALENTS CURRENT LIABILITY CASH RATIO
2016 ₹ 2,70,311.46 ₹ 8,33,38,416.05 0.004
2017 ₹ 5,04,582.81 ₹ 10,00,97,558.63 0.006
2018 ₹ 6,39,628.94 ₹ 9,88,80,850.21 0.007
RNSIT MBA 48
CASH RATIO
0.007
0.006
0.004
2016 2017 2018
Interpretation
The standard cash ratio is 1. Since we can see that the ratio does not meet the
standard, this implies that the business does not maintain sufficient money to finance
its activities.
By the ratio analysis It has been concluded that the company is not up to
standard in many of the ratios. And it is a warning call for the company to change its
operations. 2016 loss has played a considerable factor in the overall development of the
company. Company should increase its ratios, otherwise it may get into the danger
position.
RNSIT MBA 49
CHAPTER - 6
LEARNING EXPERIENCE
Internships are rapidly becoming crucial for any job and can give a lot of
experience to learners hoping to move forward. M.N Chemical Ltd.’s organizational
study gave me the chance to study distinct departments and their functions.
• It gave me the chance to experience the organization's implementation of
policies.
• Manufacturing Practices and how the manufacturing actually works has been
studied.
• I understood what an organization structure is and who has an authority
relationship.
• Understood how to communicate with the top-level managers in the company.
• To get knowledge about the different department in the organization.
• To understand what are Key Performance Indicators and Key Result Areas.
• The learning experience gained by me during internship was very much
practical oriented. I could see the concepts and theories, which I studied in the
class, are being applicable practically during internship like organization
structure, discipline system.
I had a great time watching the company's operations as it provides me insights into an
organization's working environment. The training exposed me to many of an
organization's facts, i.e., M N CHEMICALS LTD, as well as helping me acquire
practical understanding that will assist me in my career.
Bibliography
• G.A. COLE, STRATEGIC MANAGEMENT- THEORY AND PRACTICE, 2ND EDITION,
THOMSON LEARNING HIGH HOLBORN HOUSE, 2006
• KHANADELWAL N.M. -WORKING CAPITAL MANAGEMNT IN SMALL SCALE
INDUSTRIES, ASHISH PUBLISHING HOUSE, NEW DELHI-1985
• M.Y. KHAN AND P.K. JAIN, FINANCIAL MANAGEMENT, TATA MC GREW HILL
PUBLICATIONS
RNSIT MBA 50
Website Reference
• http://mnchemicals.co.in/about-company.php
https://en.wikipedia.org/wiki/McKinsey_7S_Framework
• https://www.slideshare.net/
• https://www.investopedia.com/
RNSIT MBA 51
ANNEXURES
M N CHEMICALS LTD
PSO BLOCK BANGALORE PALACE,
BANGALORE – 560052
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2018
PARTICULARS Note No 31.03.2018 31.03.2017
Income
Revenue from operation/service P ₹ 9,31,18,789.50 ₹ 6,41,29,812.50
Other Income Q ₹ 11,90,851.91 ₹ 13,31,206.04
Total Revenue ₹ 9,43,09,641.41 ₹ 6,54,61,018.54
Expenses
Cost of material consumed R ₹ 7,11,69,888.81 ₹ 4,59,19,193.49
Employee benefit expenses S ₹ 71,78,433.00 ₹ 51,43,797.00
Finance cost T ₹ 22,56,816.31 ₹ 24,90,149.68
Depreciation and amortization expenses F ₹ 24,94,035.00 ₹ 19,48,809.00
Other expenses U ₹ 92,55,915.27 ₹ 83,53,419.37
Total expenses ₹ 9,23,55,088.39 ₹ 6,38,55,368.54
Profit before tax ₹ 19,54,553.02 ₹ 16,05,650.00
Earlier years Short/Provision
Loss on theft ₹ - ₹ -
Tax expenses
Current Tax ₹ 3,74,200.00 ₹ 3,06,000.00
Deferred tax ₹ - ₹ -
Tax on Regular Assessment ₹ - ₹ -
Profit after tax ₹ 15,80,353.02 ₹ 12,99,650.00
Profit/(loss) B/F ₹ 46,49,119.91 ₹ 33,49,469.91
Profit /(loss) C/F ₹ 62,29,472.93 ₹ 46,49,119.91
RNSIT MBA 52
M N CHEMICLS LTD
PSO BLOCK BANGLORE PALACE
BANGALORE
BALANCE SHEET AS ON 31ST MARCH 2018
Particulars NOTE 31-03-2018 31-03-2017
NO
I. EQUITY AND LIABILITIES
1. Shareholders fund
(a). Share Capital A ₹ 6,82,54,270.00 ₹ 6,82,54,270.00
(b) Reserves and Surplus B ₹ 62,14,149.75 ₹ 46,49,109.73
(c)Money Received Against Share Warrant ₹ - ₹ -
2. Share application Money Pending Allotment ₹ - ₹ -
3. Non-current Liabilities
(a) Long Term Borrowings ₹ - ₹ -
(b) Deferred Tax Liability (Net) ₹ 83,000.00 ₹ 83,000.00
(c) Other Long-Term Liability ₹ - ₹ -
(d) Long Term Provisions ₹ - ₹ -
4. Current Liability
(a)Short Term Borrowings C ₹ 7,02,48,733.03 ₹ 6,23,34,194.13
(b)Trade Payables D ₹ 2,83,76,056.59 ₹ 3,51,30,463.60
(c)Other Current Liability ₹ - ₹ -
(d)Short Term Provision E ₹ 2,56,060.59 ₹ 26,32,900.90
TOTAL ₹ 17,34,32,269.96 ₹ 17,30,83,938.36
ASSETS
Non-Current Assets
1.(a) Fixed Assets
Tangible Assets F ₹ 4,14,05,721.76 ₹ 4,10,11,530.76
Intangible Assets ₹ 1,19,917.00 ₹ 1,19,917.00
Capital W-I-P ₹ - ₹ -
Noncurrent investments G ₹ 4,69,82,036.00 ₹ 4,45,03,750.00
RNSIT MBA 53
Deferred tax Assets ₹ - ₹ -
Long term loan ₹ - ₹ -
Other non-current Assets H ₹ 2,11,966.00 ₹ 1,71,661.00
2. Current Asset
(a)current Investment I ₹ 45,89,729.00 ₹ 42,56,572.00
(b) Inventories J ₹ 86,89,956.00 ₹ 1,06,58,351.06
(c)Trade Receivables K ₹ 3,29,23,502.82 ₹ 3,14,76,098.69
(d)Cash and Cash equivalents L ₹ 6,39,628.94 ₹ 5,04,582.81
(e)Short-term Loans and Advances ₹ -
(f)other current Assets M ₹ 3,78,69,812.44 ₹ 4,03,81,475.04
TOTAL ₹ 17,34,32,269.96 ₹ 17,30,83,938.36
RNSIT MBA 54
M N CHEMICALS LTD
PSO BLOCK BANGALORE PALACE,
BANGALORE – 560052
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2017
PARTICULARS Note No 31.03.2017 31-03-2016
Income
Revenue from operation/service P ₹ 6,41,29,812.50 ₹ 6,06,78,415.50
Other Income Q ₹ 13,31,206.04 ₹ 15,04,915.90
Total Revenue ₹ 6,54,61,018.54 ₹ 6,21,83,331.40
Expenses
Cost of material consumed R ₹ 4,59,19,193.49 ₹ 4,85,76,713.19
Employee benefit expenses S ₹ 51,43,797.00 ₹ 44,83,481.00
Finance cost T ₹ 24,90,149.68 ₹ 21,98,415.21
Depreciation and amortization expenses F ₹ 19,48,809.00 ₹ 16,71,904.00
Other expenses U ₹ 83,53,419.37 ₹ 51,98,931.91
Total expenses ₹ 6,38,55,368.54 ₹ 6,21,29,445.31
Profit before tax ₹ 16,05,650.00 ₹ 53,886.09
Earlier years Short/(excess)Provision
Loss on theft ₹ - ₹ 51,98,399.00
Tax expenses
Current Tax ₹ 3,06,000.00 ₹ -
Deferred tax ₹ -
Tax on Regular Assessment ₹ - ₹ 93,516.00
Profit after tax ₹ 12,99,650.00 ₹ -52,38,028.91
Profit/(loss) B/F ₹ 33,49,469.91 ₹ 85,87,498.82
Profit /(loss) C/F ₹ 46,49,119.91 ₹ 33,49,469.91
RNSIT MBA 55
M N CHEMICLS LTD
PSO BLOCK BANGLORE PALACE
BANGALORE
BALANCE SHEET AS ON 31ST MARCH 2017
Particulars NOTE 31-03-2017 31-03-2016
NO
I. EQUITY AND LIABILITIES
1. Shareholders fund
(a). Share Capital A ₹ 6,82,54,270.00 ₹ 6,82,54,270.00
(b) Reserves and Surplus B ₹ 46,49,109.73 ₹ 33,49,469.91
(c)Money Received Against Share Warrant ₹ - ₹ -
2. Share application Money Pending Allotment ₹ - ₹ -
3. Non-current Liabilities
(a) Long Term Borrowings ₹ - ₹ -
(b) Deferred Tax Liability (Net) ₹ 83,000.00 ₹ 83,000.00
(c) Other Long-Term Liability ₹ - ₹ -
(d) Long Term Provisions ₹ - ₹ -
4. Current Liability
(a)Short Term Borrowings C ₹ 6,23,34,194.13 ₹ 6,06,42,963.10
(b)Trade Payables D ₹ 3,51,30,463.60 ₹ 2,06,29,997.27
(c)Other Current Liability ₹ - ₹ -
(d)Short Term Provision E ₹ 26,32,900.90 ₹ 20,65,455.68
TOTAL ₹ 17,30,83,938.36 ₹ 15,50,25,155.96
ASSETS
Non-Current Assets
1.(a) Fixed Assets
Tangible Assets F ₹ 4,10,11,530.76 ₹ 3,54,26,124.00
Intangible Assets ₹ 1,19,917.00 ₹ 1,19,917.00
Capital W-I-P ₹ -
Noncurrent investments G ₹ 4,45,03,750.00 ₹ 4,21,00,100.00
RNSIT MBA 56
Deferred tax Assets ₹ - ₹ -
Long term loan ₹ - ₹ -
Other non-current Assets H ₹ 1,71,661.00 ₹ 1,77,331.00
2. Current Asset
(a)current Investment I ₹ 42,56,572.00 ₹ 39,43,648.00
(b) Inventories J ₹ 1,06,58,351.06 ₹ 81,17,421.38
(c)Trade Receivables K ₹ 3,14,76,098.69 ₹ 3,09,59,344.68
(d)Cash and Cash equivalents L ₹ 5,04,582.81 ₹ 2,70,311.46
(e)Short-term Loans and Advances ₹ - ₹ -
(f)other current Assets M ₹ 4,03,81,475.04 ₹ 3,39,10,958.44
TOTAL ₹ 17,30,83,938.36 ₹ 15,50,25,155.96
RNSIT MBA 57

Organisation Study

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Project Report on

In partial Fulfillment of the requirements for the award of the degree of

Internal Guide External Guide

Prof. Ajit Deva Mr. Nityanand Naik

Department of MBA and Research Centre

In partial Fulfillment of the requirements for the award of the degree of

Internal Guide External Guide

Prof. Ajit V Deva Mr. Nityanand Naik

Department of MBA and Research Centre

I, SHIRISH UPADHYA, hereby declare that the report entitled “ORGANIZATION

Place: Bengaluru SHIRISH UPADHYA

It was my privilege to undergo the organization study at M. N Chemicals. There are

I wish to express my profound gratitude to Dr. H N Shivashankar, Director, RNSIT, for

I also express my sincere thanks to Dr. U Bhojanna, Head of Department, MBA

It is my foremost duty to express my wholehearted thanks to my guide Mr. Ajit V Deva

Place: Bengaluru Shirish Upadhya

Chapter 1 1.1 Introduction about the Internship 01

1.2 Industry Profile 02

Chapter 2 Organization Profile 04

2.2 Nature of the Business 05

2.3 Vision, Mission, Quality Policy 05

2.4 Work Flow Model 06

2.5 Product Profile 06

2.6 Ownership Pattern 08

2.7 Achievement and Rewards 08

2.8 Competitor Analysis 08

2.9 Market Share analysis 08

2.10 Skill matrix & Competency mapping 09

2.11 Future Growth and Prospectus 10

Chapter 3 MC Kinsey’s Model 12

Porters Five Force Model 32

Chapter 4 SWOT Analysis 36

Chapter 5 Analysis of Financial Statements 39

Chapter 6 Learning Experience 50

Studying the organization, it must concentrate on changing certain elements of the

The research focuses on the manufacturing process conducted out in M N CHEMICALS

Internship is a process in which students render their service to an organization

• To get practical knowledge about the company

1.3 Growth of chemical industry

High Domestic Consumption

The Indian chemical industry has a diversified manufacturing base that

Promising Export Potential

M N Chemicals is located at Kumta, UttarKannada District, Karnataka state

From a tiny start in 1995, M N Chemical Ltd began manufacturing bulk

2.2 NATURE OF THE BUSINESS

2.3 VISION, MISSION, QUALITY POLICY

2.3.3 Quality Policy

2.3.4 Quality Objectives

2.4 WORKFLOW MODEL

2.5 PRODUCT PROFILE

2.6 OWNERSHIP PATTERN

• Chairman and Managing Director Naveen Patil

2.7 ACHIEVEMENTS AND REWARDS

2.8 COMPETITOR ANALYSIS

1. Bombay Rasino Herbs Offering premium quality Ammonium Chloride,

rupees lower, whereas M N CHEMICALS are selling sodium chloride at 18

2.9 MARKET SHARE ANALYSIS

The area of operation of small units is generally localized catering to the

2.10 SKILL MATRIX AND COMPETENCY MAPPING

2.10.1 Competency Mapping

Competency mapping is a process to identify key competencies for an organization

Competency mapping involves the process by which we determine –

2.10.2 Skill Matrix