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Navnir

man Institute of Management

A
Project Report
On
Summer Training at
“SHAH PUBLICITY”

Submitted by,
“Payal Jain”

Under the Guidance of


Mr. Narendra Jadav

Submitted on,
“27TH JUNE 2009”

In Partial Fulfillment of the Requirements for the Admission in V Semester


in
BBA Program.

Submitted to,
Navnirman Institute of Management (NIM-BBA College), Bharthana, Surat.
Affiliated to VNSGU, Surat.

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ACKNOWLEDGMENT

As per the syllabus of our B.B.A degree I have successfully completed my


summer training. I have selected “SHAH PUBLICITY” to complete my training. It
was very difficult task for me to make this project report a real, but I got significant
assistance from people around me.

A world-beating thanks to my family for their invariable uniformly support


during this project.

I owe gratitude to Mr. Narendra jadav for his valuable advice and
guidelines for systematic approach towards this project work and all other helps
he has provided as a mentor.

Mr. Rupesh shah is a person to whom I would like to give honor for
assigning this project to me and guided throughout the journey of the project.

I would also like to thank the other employee of SHAH PUBLICITY and
Faculty members of my college, Mrs. Radha vyas, Mr. Baxish, Mr. Mayur Patel
for their unvarying support.

I would like to conclude this acknowledgement by giving gratitude to


myself for being me.

--- Payal Jain

May-June, 2009.

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Executive Summary

In today’s era outdoor advertising industry are one of the largest


industry in India and this is acquiring high growth rate.

In Indian economic advertising a vital part and there is large scope to


learn and earn also. So to understand this I wanted to make project report in any
leading company in the industry.

At that time I found shah publicity to prepare a project. Shah publicity is


one of the leading industrial group in India, plays a leading role in the field
outdoor advertising. The company provides a wide range of products such as
hoardings, kiosks, gantries etc.

During my study on this subject I found that all the functional areas are

very important .So I made my project report on general study of the company.

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Index

Sr. No. Content Pg. No.


 1 Profile of the Company & Industry.
1.1 History of Company
1.2 A glimpse picture of industry

 2 Marketing Department
2.1 Marketing Environment (Competition)
2.2 Products of the company (Product Mix)
2.3 Packaging & Labeling
2.4 Price of Products (Pricing Policies)
2.5 Organization’s buying process
2.6 Product Life Cycle (PLC)& Marketing Strategies
2.7 Channels of Distribution
2.8 Marketing/ Sales Department at a glance
2.9 Promotional Activities
 3 Human Resource Department
3.1 Activities of Personnel/ Human Resource
Department
3.2 Recruitment & selection
3.3 Human Resource Planning
3.4 Training & Development
3.5 Promotion & transfer
3.6 Performance Appraisal
3.7 Wages & Salary Structure
3.8 Employee Welfare
3.9 Human Resource Audit
3.10 Hierarchy Structure of Organization/ Department
3.11 Absenteeism Rate
3.12 Employees Turnover
 4 Production Department

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4.1 Plant Layout
4.2 Technology used
4.3 Machinery operation Stores
4.4 Plant Location, Controls of Raw Material in Process
& Finished Goods
4.5 Quality Control
 5 Finance Department

5.1 Cash Budget & Flexible Budget


5.2 Sources of Funds
5.3 Issuing Shares (if applicable)
5.4 Providing Funds to different Department
5.5 Balance Sheet & Annual General Report
(Rearrangement of Balance Sheet & P & L account
in common Size Statement)
5.6 Working Capital, Cash, Inventories, Receivables etc.
5.7 Ration Analysis with interpretation

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Chapter-1
Profile of the company & Industry

History of “SHAH PUBLICITY”

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 Profile of the company

“SHAH PUBLICITY” is one of the most well known India's leading outdoor
advertising service providers. Since 1973, we are successfully reaching the
whole spectrum of target audience through our innovative, creative and
appealing gantries, hoardings, kiosks and trivisionss, etc. We have twice installed
the biggest hoardings in the Surat city.
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Advertising is an art to achieve targeted sales figure through effective and


efficient message dissemination to the audience and Shah is masters in this art.

Shah is not only the numero uno outdoor advertising firm of Gujarat state, but
shah is also marching ahead as the leading ad service provider in the country. Its
services are coupled with innovative ideas and modern technology and this
provides us the winning edge over everyone else in the business. Shah offer a
full range of services aimed at reaching the specific demographic targets of the
clients, and is in a position to provide hoardings as per the customer's
requirements.

 Some milestones of shah publicity

 In 1973 establishment of company by Mr. yashwant bhai shah

 The biggest hoarding in the city installed by shah publicity for the second
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 In 1996 shah publicity get sole advertising rights of Sardar Bridge in Surat,
where it place Gujarat’s first backlit kiosks.

 In 1997 first LED display hoarding was installed in surat having size of 20’
x 10’.

 In 1999 first ever gantry was installed on Sardar Bridge. After that 25
gantries are installed subsequence Surat and south Gujarat.

 In 2000, in new millennium shah publicity is entered in indoor media of


vinyl, flex, backlit flex etc.

 In 2003 first time “trivision” was introduce in south Gujarat having size of
20’ x 10’.

 In 2004, Beautiful island having miniature of aircraft on athwagate circle.

 Founder of shah publicity

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Wherever you go in the city of Surat, you will find a hoarding of shah publicity.
YASHWANT SHAH, the owner of shah publicity, is the ace media man. He was
born in Daman, had a tough time since childhood.

He raised two hoardings of 12’ *8’ near varachha subway and moti talkies as side
business with the main job in paradise provision store. The 30 number bidi and
dinesh mills, lalgate were his first clients. The annual rent was just rs. 500. The
municipal commissioner and collector helped him to raise the funds with the help
of local mills; next year, yashwantbhai was the owner of 40 such hoardings.

Today, after 25 years, the hoardings of ‘shah publicity’ are seen at every nook
and corner of the city. In south Gujarat area, shah publicity, the biggest agency
has erected more than 800 boards. They have won many awards for best
services at state level.

Yashwant bhai loves Surat; he has always helped the local authorities for
publicity of public interest.

 The workers profile

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There are about 40 people employees in the office of shah publicity which
includes the board as well as the receptionist.
There are all about 100 of labour for the laborious job I.E. for placing the
hoarding , the painting job, some small works, erection of the hoarding,
moving of the hydraulic Mobil van etc. name and post of some of the staff
member have been mentioned

MR. YASHVANT SHAH : Owner

MRS RUPESH SHAH : Marketing CEO and HR


(Working since 12 YEARS) manger

MR VISHAL SHAH : Member of the BOD &


(Working since 13 YEARS) HOD

MRS RINA SHAH : Administration Dept.


(Working since 7 YEARS)

MR ASHISH : Administration Dept.

MR UJJAVAL : Account Dept.

MR CHANRESH : Manager

MR RAMESH : Supervisor

Ms. JIGNA : Account Dept.

MR RAJNIKANT : Labour

A glimpse picture of Outdoor Advertising Service Industry.

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 What Outdoor Advertising?

Outdoor advertising includes various types of promotional displays, from highway


billboards to transit posters and arena placement, all geared towards
communicating a message to the public. The message might be to buy a product,
take a trip, vote for a politician, or give to a charity. It might even be a public
service announcement. There are many kinds of outdoor advertising choices.
Eateries and hotels commonly make use of highway billboards to steer
customers in for a rest or a bite. The automobile and tourism industries account
for a very large percentage of billboard revenue. Bus benches often feature
outdoor advertising for local businesses, while bus shelters might display a major
movie promotion. Beverage companies commonly make use of sporting events
and arenas, among other venues, while taxicabs, buses, railways, subways and
wall murals offer other forms of outdoor advertising.

 BENEFITS OF OUTDOOR ADVERTISING

 More and more people are spending time outdoor. and spending greater
time in commuting..
 Delivers high frequency at each location.
 Provide continuity of an advertising massage.
 Sustains name and image awareness.
 Assure dominance in selected or extensive

 Some outdoor disadvantages

 Outdoor advertising is a glance medium. At best, it only draws 2-3


seconds of a reader’s time.

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 Message must be brief to fit in that time frame. 95% of the time, either the
massage or the audience is in motion.
 The nature of the way you have to buy outdoor advertising is not
conductive to a very short, week-long campaign.

The media world is the most dynamic branch of advertising and outdoor is its
broadcast medium.

 WHY OUTDOOR?

In today’s fragmented media world, outdoor advertising is the one answer to


target mass audiences effectively.

People of all backgrounds and nationalities are spending more hours each day
out of the home: commuting, working, shopping and socializing. This is
particularly true of young, mobile people who are traditionally hard to reach with
other forms of advertising.

With brand fighting for recall advertiser are committing larger budgets to the
medium each year in order to deliver high impact displays in busy town and city
centers throughout the world.

 Outdoor Advertising Service Industry

Outdoor advertising is a necessity for many businesses. If you only advertise in


your store, you won’t be able to advertise to local prospects and those driving or

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walking by. You can get a lot of business from passersby who stop in to your
store on impulse. Of course, people get those impulses from seeing your outdoor
advertising, usually in the form of a poster printing piece like a huge sign or
billboard.

Posters work well for businesses that have a large, local target market. That’s
why billboards are so popular – they can reach hundreds of thousands of people
in the course of just one day on a busy highway. Many people don’t think of a
billboard as a poster, but most billboards are just huge posters pasted together to
create one huge poster.

Advantages of outdoor advertising posters You can’t switch off an outdoor


advertisement. People can turn off the TV or radio, they can’t turn off billboards
and other outdoor posters. When people drive by billboards or walk by posters on
the side of a building, they can choose not to look, but they often do look. Even if
they don’t want to, curiosity gets the best of them and by the time they’ve decided
they don’t really need to read the poster, they’ve already read it. That leads to the
next advantage.

Posters are easy to digest. By their very nature, posters are graphic elements
with little text. People process images much faster than they process a word,
which means posters can be quickly and easily understood.

People spend a lot of time in their vehicles. The average commuter spends 25
minutes on her drive to work which is nearly an hour a day spent driving past
billboards and signs. When you factor in traffic, that’s probably is an hour spent
sitting on highways and city streets, bored. When people are bored they like to
look at interesting things. That’s where your outdoor advertising comes in.

Posters aren’t as expensive as other forms of advertising. Outdoor advertising,


which pertains mostly to billboards, are priced as CPM, or cost per thousand.
(Mille means thousand in Latin. Why not just shorten it to CPT? Sometimes it is
seen as CPT, but most printers refer to it as CPM. I’m not sure why.) CPM is the
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cost of reaching 1,000 potential viewers through an outdoor advertising display.
You can find the CPM of a billboard by dividing the monthly cost by the monthly
circulation in thousands. The billboard company that rents the space can tell you
what the monthly circulation is of each billboard. Circulation is the number of
people who see the billboard each month. So, if you pay $2,000 to rent a
billboard for one month and the billboard has a monthly circulation of 2,000
viewers, you’ve just paid $1 per view. If the monthly circulation is 10,000 for that
same $2,000 billboard, you’ll only pay 20 cents per view. That’s cheaper than
postcard marketing!

If you can find a great spot for a billboard at a reasonable cost, give it a try. Just
make sure your message is short (less than eight words) and that your graphics
are able to do your talking for you. You can gain many new customers for little
money.

 Outdoor Advertising Service Industry in India

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The Indian advertising industry comprises establishments that create and sell
advertisements for media such as newspapers, periodicals, radio, and television.
The Indian advertising industry has been evolving at a fast pace over the past
few years owing to an increase in the forms of media and communication and the
emergence of new distribution channels. In 2005, this industry experienced a
growth of xx%. Currently India has a low ‘advertising spend to GDP’ ratio as
compared to other economies. Competition for the outsourcing business and
creativity leakage represent the major issues and implications. However, the
television advertising is expected to register high rates of growth, with India
expected to become Asia's leading cable market by 2010.

It also studies the competitive landscape including the top three agencies- JWT,
O&M, and Lowe’s. Since the agencies are not listed and do not disclose their
financial information, the report has alternatively covered a summary of their
operations and competitive strategies. The report concludes with an outlook on
the industry.

 Outdoor Advertising Service in Surat

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Surat is a fastest growing city in the state of Gujarat; outdoor advertising is the
one answer to target mass audiences effectively.

People of all backgrounds and nationalities are spending more hours each day
out of the home: commuting, working, shopping and socializing. This is
particularly true of young, mobile people who are traditionally hard to reach with
other forms of advertising.

With brand fighting for recall advertiser are committing larger budgets to the
medium each year in order to deliver high impact displays in busy town and city
centers throughout the world.

 Growth of Shah Publicity in Surat

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who could have thought for about 25 years ago that advertisement could make s
big profession and for a city like surat where a small shop was a safe medium for
income and to try out something new was considered like trying to commit suicide
but for one man challenge was his life, his passion to do something new and he
did it. He ventured into the unknown business of outdoor advertising company.

In 2005 shah publicity achieved 1000 hoardings and 1000 kiosks across south
Gujarat. Today it is not only south Gujarat’s no.1 out of home advertising
company, but also it provides more services and access to modern technology
than anyone in business. Shah publicity offers full range of services aimed at
reaching the specific demographic targets of the clients, and are in position to
provide 100 hoardings anywhere in south Gujarat as per the clients requirements.

It handles regular painting, vinyl, printing-cutting and postings, most efficient film
banner making, displaying and fixing, integrated hoarding publicity, creative
image displaying screen painting, tin plates and tin board manufacturing, moving
publicity on wheels, wall paintings, p.o.p. organizing and many particular needs in
outdoor advertising.

 Objectives

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Over the years, we have worked with a large number of PRIVATE
AND GOVERNMENT ORGANISATIONS. We have years of experience in
such worked and understand well the complexities, procedures and
deadlines involved.

Our scope of work in this category has included corporate campaigns,


product campaigns, public service campaigns as well as a vast array of
design, print and placement jobs.

The objective of advertising is to change public attitude


And behavior and stimulate positive change in society.

Our approach is to try and understand human motivation, not just


distribute campaign material.

By translating our understanding creative and using sophisticated media


tools, we help achieve the goals.

Our proud history of long-term client relationship best testifies to the power
and effectiveness of our work

“Bigger is better” and shah publicity breathes this outdoor mantra and they
believe that small things must be left small on a 12 inch or so box what
world needs is something huge to remember.

“THINK OF ADVERTISEMENT THINK OF SHAH”

A client service routine has been developed in consultation with staff and
clients and takes into account feedback from the clients advertising
agency and customer feedback. It is subjected to ongoing review to
ensure that it remains current and continues to set relevant standards for

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service quality. At the same time it is always reviewed that none of these
standards go against law.

 Vision and Mission

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Accord is a professional company that strives with a vision to assist clients
in the development and growth of their presence and awareness by way of
outdoor advertising. We pride ourself in impeccable customer services;
everything in our power is done to accommodate our clients in their
outdoor advertising needs, as well as any other assistance our greatest
satisfaction stems from the loyalty our clients have shown us. Our clients
are not money signs, they are friends. Our services provide a full
complement of outdoor advertising agency services which includes:
Planning
Designing
Execution
Control

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CHAPTER – 2

MARKETING DEPARTMENT

2.1 Marketing Environment (Competition)

“All businesses operate within an environment, which directly or indirectly affects


the way in which they function, just as we as consumers live within a cultural and

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social environment which to a greater or lesser degree determines the way in
which we behave as individuals.” said Elaine O’Brien, University of Strathclyde.

Unlike the controllable marketing mix variables, the environmental forces are not
controllable by marketers. However, marketers can control how they deal with
those uncontrollable forces by identifying and monitoring those forces that are
relevant to their firms. They also must forecast changes in these forces if they are
to develop effective marketing plans and strategies.

All organizations operate within environments. That is, all profit-making and not-
for-profit organizations are surrounded by, and must contend with, external
forces. Managers cannot govern the nature of these environmental forces. These
uncontrollable influences affect consumers’ behavior and organizations’
development of effective marketing mixes.

Conceptually, the forces that comprise the marketing environment are viewed as
existing at two levels. They are categorized as micro and macro influences. The
microenvironment consists of those forces that directly affect the marketing
programs of a particular firm. The activities of marketing intermediaries,
company, customers, suppliers, and competitors are all examples of external
forces that influence the marketing actions of a specific organization. The macro
environment encompasses the broad environmental system within which all
organizations must conduct business. In one sense, it defines or creates the
structure of the marketplace for all organizations. The particular elements that
make up the macro-environment are demographic trends, economic, natural,
socio and cultural influences, political and legal issues, and technological
advances.

The market environment is a marketing term and refers to all of the forces
outside of marketing that affect marketing management’s ability to build and

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maintain successful relationships with target customers. The market environment
consists of both the macro environment and the microenvironment.

The microenvironment refers to the forces that are close to the company and
affect its ability to serve its customers.

Competitors are also a factor in the microenvironment and include companies


with similar offerings for goods and services. To remain competitive a company
must consider who their biggest competitors are while considering its own size
and position in the industry. The company should develop a strategic advantage
over their competitors.

When dealing with the marketing environment it is important for a company to


become proactive. By doing so, they can create the kind of environment that they
will prosper in and can become more efficient by marketing in areas with the
greatest customer potential. It is important to place equal emphasis on both the
macro and microenvironment and to react accordingly to changes within them

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 Competitors of Shah Publicity


1. venus
2. skumar
3. soni publicity
4. prithvi advt.
5. desai
6. Others etc.

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AWARENESS OF SHAH PUBLICITY]

1%

AWARE
UNAWARE

99%

The above chart describes the market strength of shah publicity

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 The Few Important Sites Owned by Shah Publicity

In an outdoor advertisement business it is of very great importance to find out


new sites where hoardings, kiosks etc. can be placed so one needs to be very
quick and capable enough to pay for the rent of the site to the government or the
respective person who owns that place and thus your success largely depends
on the sites you possess.

The sites owned by shah publicity are

 The trivision at athwagate


 The hazira industrial belt area
 All the posts starting from the st. Xavier’s school ghod dod road to parle
point
 The backlit hoardings opp simandhar apt near Sargam shopping center
 Almost all of the hoarding site in Bombay market area
 The largest hoarding placed in ring road
 The gantries at sardar bridge
 The gantries at udhna
 The gantries at Dumas road
 The hoarding opp the surat airport
 The bus shelter at lake view garden
 The bus shelter near the goverdhan mandir ichhanath road
 Almost all of the hoardings opp and near the railway station
 The hoarding at starting of varaccha
 All of the kiosks at the sardar bridge
 The hoarding placed at the end of the sardar bridge adajan
 The hoardings site at Vivekananda circle nanpura
 The bus shelter at parle point

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 The garden kiosk at the lake view garden
 The highest hoarding in the chowk near the arts and law college
 The hoardings and unipoles at chowpati and opp classic hotel respectively
 The mobile vans seen near ghod dod road
 The hydraulic mobile van near athwalines area
 The vision panels in varachha
 The vision panels on ring road
 A few of the sites at navsari and bardoli
 The kiosks from athwagate to athwalines
 The unipole near pooja abhishek
 The backlit kiosks at brcm college
 The few sites lal gate
 The hoarding at lal darwaja

 Client List
There are a large number of national and international clients of shah publicity.
Some of them are as follows.

 Dhiraj sons
 Airtel
 Hutch
 Bata
 Citi bank
 Kaya skin clinic
 Hero Honda
 Foot funda
 Venus photo studio
 Vivaah
 Sonica

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 Shital photo
 Reliance
 Bsnl
 Iscon mall
 City mall
 Bank of baroda
 Kids zee
 Prakash jewelers
 Pantaloons
 Westside
 Provogue
 Maa & baby
 K.khushaldas jewelers
 Diam jewels
 Cinderella
 D’lords
 Dhiraj fashion world
 Stay fit
 Pt education
 Career forum
 Colgate
 Pepsodent
 YOU(internet connection)
 Tata sky
 Rajhans
 Garnier
 Amul
 Sumul
 Taj gateway

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 Times of india
 Subway
 Utsav
 Bleu mobile
 Motorola
 Nokia
 Raj empire
 Ashirwad houses
 Bazaar kolkata
 Corral holidays
 Gitanjali
 D ‘dmas
 Idea
 Athmiya vidhya mandir
 Deewan-e-khaas
 Pizza hut
 u.s.pizza
 Food court
 Sugar n spice
 OMAXE
 Maruti
 Flying cats
 Frankfinn
 Intelligent guidance
 Real spoken English
 Paris
 Personality development
 Roop mangal
 Videocon

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 Onida
 B>more
 Tata fabrics
 Park inn
 House full
 Cream n crust
And above all shah publicity also has contract with Surat Municipal Corporation to
place some hoardings and kiosks with exclusive rights to shah.

2.2 Products of the Company (product Mix)

Main products are:

TRIVISION BUS
HOARDING KIOSKS GANTRIES
S SHELTERS

Illuminate BACK LIT


d
GARDEN
KIOSKS
Sizes
varying
from
10’x10’ to
170’x20’
Backlit
hoardings

Display
hoardings

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Other products are:

• Mobile van
• Unipoles
• Public utility
• Vinyl
• Neon sign
• Signages
• Wall paintings
• City bus

UNIQUE GIGANTIC GANTRY OF 100’ X 15’ AT HAZIRA G.I.D.C.


GANTRIES
TWO GANTRIES BEAUTIFYING THE SARDAR BRIDGE - “PRIDE OF SURAT”
MORE THEN 15 GANTRIES AT VARIOUS LOCATIONS IN SURAT CITY.

WELCOME GANTRIES AT BARDOLI, VYARA, SACHIN & MANY MORE AT PARLE


POINT, ATHWA GATE AND RING ROAD.

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HOARDINGS
1000 HOARDINGS ACROSS SOUTH GUJARAT
SIZES VARYING FROM 10' X 10' TO 170' X 20'
OVER 300 ILLUMINATED HOARDINGS INCLUDING.

GARDEN KIOSKS
NEWLY INTRODUCED SERVICE TO DISPLAY ADVERTISEMENT IN THE GARDENS.

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TRIVISION
FIRST TRIVISION OF 20' x 10' SIZED WAS INTRODUCED IN GUJARAT. TRIVISION HAS
BEEN INSTALLED AT ATHWA GATE, SURAT.
TOW MORE TRIVISION OF 10' x 10' SIZED HAS BEEN INSTALLED AT SARDAR
BRIEDGE, SURAT.

Product Description

Back Lit Bus Shelter


We are involved in manufacturing back lit bus shelters with back-lighting, which is
used to make all the important messages properly visible to consumers. These
back lilts are one of the catchy medium of marketing the products. These are
placed in high potential places to attract more and more target audience. We are
specialized to manufacture back lilts as per client’s requirements.

BackLitHoardings
Best used to show all the brands with an appealing way, these hoardings are
made to promote the products. These hoardings are placed in markets, where
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the possibility of potential customers is high like shopping complexes and malls.
Now a days, these back lit hoardings are the best and reasonable way to
showcase companies and their products.

Building Wrap
This is just like an online skyscraper, but the medium is offline. We manufacture
building wraps of different sizes, that depends on the choice of the clients. This is
also called building graphics, tall wraps etc. This is a new option of marketing the
products and companies. Now a days most of the retail houses are using this
type of banners to show their company names.

Display Hoardings
We make gigantic hoardings which grab maximum attention of the customers due
to their larger than life effect, attractive design and creative theme. Some of the
highlights of our hoarding services are:
• 1000 hoardings across South Gujarat
• Sizes varying from 10' x 10' to 170' x 20'
• Over 300 illuminated hoardings
One Way Vision We are specialize in best possible way of promoting and
marketing the brands in the market. One of the medium is One Way vision; we
use these types of banners in various turning points and bus and taxi stops. They
are capable to get your attention, and are enough to increase the curiosity
regarding the brand.

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hoardings
13% 5%
kiosks
1%
5% 47% bus shelter
gantries

29% unipole
trivision

The above chart describes that hoardings are most preferred.

2.3 Packaging and Labeling

Packaging

Packaging as all the activities of designing and producing the container for the
product. Packages might include up to three levels of material.

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 Primary package: Cool water cologne comes in a bottle.
 Secondary package: In a cardboard box.
 Shipping package: In a corrugated box containing six dozen boxes.

In shah publicity, the products are as such hoardings and kiosks such products
thus packaging do not take place.

Labeling

The label may be a simple tag attached to the product or an elaborately


designed graphic that is the part of the package. It might carry only the brand
name, or a great deal of information. Labeling performs various functions:

 Label identifies the product or the brand


 Label also grades the product such as on the fruits of reliance fresh written
best quality or export quality.
 It describes the product such as:
 Who made it where it was made
 When it was made
 What it contains
 How it is to be used
 How to use it safely
 The label can also promote the product through attractive graphics.

Whereas labeling, under each hoarding or kiosk or anything small board showing
name of shah and its contact no. is placed which helps in recognizing that the
concerned product is of shah publicity which serves as a label of shah publicity.

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CREATIVITY OR CONTENT

5%

CREATIVITY
CONTENT

95%

2.4 Price of the Products (Pricing Policies)

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LOCATION

ACQUISITION

COST

These three are the major factors which are taken into account while deciding the
pricing policies.
Location is most prominent factor.
For ex: the hoarding placed in the midst of the city would cost more in relation to
the hoardings placed at the outer areas of surat.

2.5 Product Life Cycle (PLC) and Marketing Strategies

We define a product as "anything that is capable of satisfying customer needs.


This definition includes both physical products (e.g. cars, washing machines,
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DVD players) as well as services (e.g. insurance, banking, private health care).
Businesses should manage their products carefully over time to ensure that they
deliver products that continue to meet customer wants.

The stages through which individual products develop over time are
commonly known as the "Product Life Cycle".

The classic product life cycle has four stages (illustrated in the
diagram below): introduction; growth; maturity and decline.

Marketing strategies

Marketing strategies have four stages:


 Introduction stage
 Growth stage
 Maturity
 Decline

Introduction

Growth

Decline

Maturity

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,

Sales

Introduction Growth Maturity Decline

Time

1. Introduction

At the Introduction (or development) Stage market size and growth


is slight. It is possible that substantial research and development costs have been
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incurred in getting the product to this stage. In addition, marketing costs may be
high in order to test the market, undergo launch promotion and set up distribution
channels. It is highly unlikely that companies will make profits on products at the
Introduction Stage. Products at this stage have to be carefully monitored to
ensure that they start to grow. Otherwise, the best option may be to withdraw or
end the product

2. Growth.

The Growth Stage is characterized by rapid growth in sales and


profits. Profits arise due to an increase in output and possibly better prices. At
this stage, it is cheaper for businesses to invest in increasing their market share
as well as enjoying the overall growth of the market. Accordingly, significant
promotional resources are traditionally invested in products that are firmly in the
Growth Stage.

3. Maturity

The Maturity Stage is, perhaps, the most common stage for all
markets. It is in this stage that competition is most intense as companies fight to
maintain their market share. Here, both marketing and finance become key
activities. Marketing spend has to be monitored carefully, since any significant
moves are likely to be copied by competitors. The Maturity Stage is the time
when most profit is earned by the market as a whole. Any expenditure on
research and development is likely to be restricted to product modification and
improvement and perhaps to improve production efficiency and quality.

4. Decline

In the Decline Stage, the market is shrinking, reducing the overall


amount of profit that can be shared amongst the remaining competitors. At this

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stage, great care has to be taken to manage the product carefully. It may be
possible to take out some production cost, to transfer production to a cheaper
facility, sell the product into other, cheaper markets. Care should be taken to
control the amount of stocks of the product. Ultimately, depending on whether the
product remains profitable, a company may decide to end the product.

Shah publicity has crossed its introduction stage which can be revealed from that
almost 99% of public is aware of its services and its name.

As shah publicity is a service industry, it is growing since 25 years and will grow
further.

In last 2 years it has acquired 95% market of south Gujarat and has become a
leading outdoor advertising agency of south Gujarat.

Day by day it is making efforts to grow more and satisfy its customers to the
fullest.

Now shah publicity is in maturity stage as nowadays outdoor advertising has


crossed growth stage and also its products have grown since years.

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loc ation

print quality
14%
28%
19% junc tion

5% 14% v is ibility
10% 10%

traf f ic direc tion


s ite
af ter s ales
s erv ic es
hoording ty pe

The above chart shows the factors that are taken into account while placing a
hoarding.

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2.6 Channels of Distribution

The producer and the final customer are the part of every channel. We will
use the number of intermediary levels to designate the length of a channel.
There is basically 4 channels of distribution:

Manufacturer Manufacturer Manufacturer Manufacturer

Wholesaler
Wholesaler

Jobber

Retailer Retailer
Retailer

Consumer
Consumer Consumer Consumer

 Zero level: It consists of manufacturer selling directly to the final consumer.


 One level: Contains one selling intermediary such as retailer.
 Two level: Consist of two intermediary typically a wholesaler and retailer.
 Three level: consists of three intermediary wholesaler, jobber and retailer.

Channels normally describe a forward movement of products from source


to the end user.

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As shah publicity is a service industry, it mainly uses zero level channels.
There are no intermediaries in the process. It directly deals with the customers
understand their requirements and offer them the product which most fulfills their
requirement.

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2.7 Marketing / Sales Department at a Glance

DIRECTOR

MARKETING MANAGER

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE


(SALES PERSON, (SALES PERSON, (SALES PERSON, (SALES PERSON,
SURAT) VAPI) BHARUCH) BARODA)

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2.8 Promotional Activities

The main purpose of advertising is to provide information to the


customer and to improve the sales. It gives the brief ideas about the company
and product, which is very much helpful in competitive market. Advertisement is
published in to the different media at the particular time limit.

Shah publicity do not carry out any kind of promotional activities except launching
schemes for their existing customers.

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Chapter-3

Human Resource Department

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3.1 Activities of Personnel/HR Department

DIFFERENCE BETWEEN PERSONNEL AND H.R


DEPARTMENT

DIMENSIONS PERSONNEL DEPT. H.R DEPARTMENT

Employment Careful delineation of Aim to go beyond contract


Contract written contract
Rules Importance in following Can do outlook important with
the clear rules rules
Guidance to mgmt. Procedure Business need
actions
Behavior referent Norms, customs and Values and mission
practices
Managerial task v/s Monetary in personal Nurturing
labour mgmt.
Key relations Labour management Customer
Initiative Piece meal Integrated
Speed Slow Fast
Management role Transactional Transformational leadership
Communication Indirect Direct
Price mgmt. skill Negotiation Facilitation

Selection Separate and managerial Integrated and key tasks


tasks
Labour mgmt. Collective bargaining Individual contracts
contract
Pay Job evaluation(fix) Performance related
Job designing Division of labour Team work
Conflict handling Use temporary members Manage climate and culture
Respect Labour is treated as People are treated as asset.
tools.

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3.2 Recruitment & Selection

 Recruitment Definition

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“Recruitment is the process of searching for prospective employees and
stimulating, encouraging them to apply for job in an organization.”
Recruitment is the process of finding and attracting capable applicants for
employment. The process begins when new recruits are sought and ends when
their applications are submitted. The result is a pool of applicants from which new
employees are selected.”
Recruitment is two way process. It takes a recruiter and a recruitee.
Recruitment is a linking activity as it brings to gather those with job (employer)
and those sinking job (prospective employees).

 Steps of Recruitment Process

The Standard recruitment process consists of a series of five steps:


I. Recruitment planning
II. Strategy development
III. Searching
IV. Screening
V. Evaluation and control
These are some Standard Steps of Recruitment Process. It is not compulsory for
any origination to follow all these.
In Shah Publicity, do recruitment as such not a define process but they use both
internal and external sources.

 Selection Definition

Selection is the process of choosing the most suitable persons out of


all applicants.

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In this process relevant information about applicants is collected through a series
of stapes so as to evaluate their suitability for the job to be filled. The process of
selection is to pick right person for every job.
“Selection is the process of matching the qualification of applicant
with the job requirements.”
Selection may be described as a process of rejection because more candidates
are turned away then is hired.

 Steps of Selection Process

The Standard selection process consists of a series of seven steps.

Preliminary Interview

Application Blank

Selection Test

Employment Interview

Medial Examination

Reference Check

Final Approval

Shah publicity do Selection, they select candidates on their


qualification and his/her experience. They also give chance to new
comer or fresher.

3.3 Human Resource Planning

 Definition of HRP

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“Human Resource Planning is the process forecasting a firm’s future
demand for, and supply of, the right type of people in the right
number.”
“HRP includes the estimation of how many qualified people are necessary to
carry out the assigned activities, how many people will be available & what if
anything must be done to ensure that personnel supply equals personnel
demand at the appropriate point in the future.”
“HRP is the process by which originations ensure that it has the right number &
kind of people, at the right place, at the right time, capable of effectively &
efficiently completing those tasks that will help the organization achieve its overall
objectives. HRP translates the organizations’ objectives & plans into the number
of workers needed to meet those objectives. Without a clear-cut planning
estimation of an organizations’ need is reduced to mere guesswork”
HRP is the system matching supply & demand of manpower.

 Process of HRP

The major stages involved in human resource planning are given below:
I. Analyzing Organization Plans
II. Forecasting demand for Human Resources
III. Forecasting supply of Human Resource
IV. Expected Loss of Manpower
V. Estimating Manpower Gaps
VI. Action Planning
Shah do HR planning, they estimate the requirements and then and take action
according to it. As such no formal procedure for this.

3.4 Training & Development

Every individual who is selected for the job needs the training. Without getting
training it is not easy for the individual to perform the job accurately and the
precisely. He should be given at least the basic knowledge with the help of which
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he can carry out his work. Therefore, training is a must for each and every
employee working in the organization. It helps the employees to get the basic
facts of their jobs and the working environment under which they are supposed to
perform their duties.
Briefly, we can say that training is the process of increasing the knowledge and
skills for doing a particular job. It is an organized procedure by which people get
the knowledge and develop certain skills for a definite purpose. The purpose of
training is basically to bridge the gap between job requirements and present
competence of an employee. Training is aimed at improving the behavior and
performance of a person. It is a never ending process. Training is closely related
to education and development but needs to be differentiated from these terms.

Shah publicity gives training to the employees who needs after their work have
been examined. And also the training is given to those who are new in the
organization. So the company gives training not to all but the few of its
employees. The company gives the training for about 15 to 30 days. The
employees are observed by the senior officers.
And advertising is a highly dynamic concept their for development is never
ending process in this company.

3.5Promotion & Transfer

 Promotion

Promotion means an improvement in pay, prestige, position and responsibility of


an employee within his or her organization.
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In promotion the salary of the workers is raised according to his efficiency.
Shah publicity the promotion is given on the basis of performance as well as
experience basis. Some of the factors which influence the promotion are his post
records, person’s behavior, his interview report, job knowledge etc.
The company follows the seniority basis for promotion because the seniors are
usually more experienced and the young people may get the chance for gaining
more knowledge, skills etc.
The purposes for promotion are mentioned below:
1. To motivate employees to higher productivity

2. To attract and retain the services of qualified and competent people

3. To identify and reward the efficiency of the employees

4. To fill up higher vacancies from within the organization

5. To build loyalty, morale and a sense of belongingness in the employee.

 Transfer

There are very less cases of transfer in the office its more at the factory.
Conditions for transfer:
• When an employee had joined for a specific department at that time there
was no vacancy in that department, slowly it was observed that he works better
than the person currently working in that department so he can be transferred to
this respective department of higher productivity.
• Necessity of manpower at the work place.
• Employee’s personal need, due to personal problems and preferences

3.6 Performance Appraisal

 Definition

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According to Flippo,” Performance appraisal is the systematic, periodic
and an impartial rating of an employee’s excellence in matters pertaining to his
present job and his potential for a better job.”
performance appraisal is a formal, structured system of measuring and
evaluating an employee’s job related behaviors and outcomes to discover how
and why the employee is presently performing on job and how the employee can
perform more effectively in the future so that the employee, organization, and
society all benefit.
Performance appraisal is also useful in providing proper guidance to
the employees who are potential of success and require a bit of guidance.
Human resource is the most valuable asset for any organization; every firm does
a huge investment in it and believes that the value, which human asset can
increase in them, is much more than any other asset.

 Process of Performance Appraisal

1. Job Analysis, Job Description and Job Specification

2. Establishing Standards of Performance

3. Communicating Performance Standards to Employees

4. Measuring Actual Performance

5. Comparing Actual Performance with Standards and Discussing the


Appraisal with Employees

6. Initiating Corrective Action, if any.

In shah publicity performance appraisal program appraisal is done at a simple


level.

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 The appraisal is done for all the employees at that time only, the
most important criteria for appraisal evaluation is the performance
of the employee at work.
 The performance appraisal is two way, the superior evaluates the
subordinate as per the prior set criteria set by the HR manager for
the performance appraisal.

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3.7 Wages & Salary Structure

Wage derives from words which suggest "making a promise," often


in monetary form. Specifically from the Old French
word wagier or gagier meaning to pledge or promise, from which the money
placed in a bet (wager) also derives.
A salary is a form of periodic payment from an employer to an employee, which
may be specified in an employment contract. It is contrasted with piece wages,
where each job, hour or other unit is paid separately, rather than on a periodic
basis.
From the point of a view of running a business, salary can also be viewed as the
cost of acquiring human resources for running operations, and is then termed
personnel expense or salary expense. In accounting, salaries are recorded in
payroll accounts.
Wages represent the hourly rates of pay and salary refers to the monthly rate of
pay, irrespective of the number of hours put in by an employee. Wages and
salaries are subject to annual increment. The wages differ from employee to
employee and it also depends on the nature of the job, seniority and merits. On
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the other hand we can define salary as the amount of money paid to an
employee monthly or yearly.
Two copies of the pay slip are maintained. One is given to the employee and the
other is kept by the company for its records.

In shah totally wages are not predefine some part of salary is fixed but some par
is paid accordance to ones performance.

3.8 Employee Welfare

 Definition

According to the Oxford dictionary employee welfare or Labor welfare


means the efforts to make life worth living for workmen.

In the words of Arthar James Todd, “Labor welfare means anything done
for the comfort and improvement intellectual or social of the employees
over and above wages paid which is not a necessity of the industry.”

 Types of Welfare Services

Intramural: - these services are provided within the establishment. These


include latrine and urinals, washing and bathing facilities, crèches, rest
shelters, canteens, uniform, medical aid, library, recreation facilities, free
or subsidies food, etc.

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Extramural: - these services are provided outside the establishment.
These consist of housing accommodation, transport, maternity benefits,
children’s education, sports fields, family planning and welfare, holiday
homes, leave travel facility, workers cooperative stores, fair price shops,
credit societies, vocational guidance, interest free loan, etc.

In shah publicity HR manger take care of all this to great extent.

 Insurance: accidental policy is provided to employees at all levels.

 Canteen is provided at plant

 Provides sanitation, ventilation, light and drinking water facility to


employees at plant as well as office.

3.9 Human Resource Audit

 Meaning of HR Audit

HR Audit means the systematic verification of job analysis and design,


recruitment and selection, orientation and placement, training and development,
performance appraisal and job evaluation, employee and executive
remuneration, motivation and morale, participative management, communication,
welfare and social security, safety and health, industrial relations, trade unionism,
and disputes and their resolution. HR audit is very much useful to achieve the

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organizational goal and also is a vital tool which helps to assess the effectiveness
of HR functions of an organization.

 Scope of HR Audit

Generally, no one can measure the attitude of human being and also their
problems are not confined to the HR department alone. So it is very much broad
in nature. It covers the following HR areas:
1. Audit of all the HR function.

2. Audit of managerial compliance of personnel policies, procedures and


legal provisions.

3. Audit of corporate strategy regarding HR planning, staffing, IRs,


remuneration and other HR activities.

4. Audit of the HR climate on employee motivation, morale and job


satisfaction.

 Benefits of HR Audit

It provides the various benefits to the organization. These are:


• It helps to find out the proper contribution of the HR department towards
the organization.

• Development of the professional image of the HR department of the


organization.

• Reduce the HR cost.

• Motivation of the HR personnel.

• Find out the problems and solve them smoothly.

• Provides timely legal requirement.


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• Sound Performance Appraisal Systems.

• Systematic job analysis.

• Smooth adoption of the changing mindset.

Approaches to HR Audit
There are five approaches for the purpose of evaluation of HR in any
organization:
• Comparative approach

• Outside authority

• Statistical

• Compliance approach and

• Management By Objectives(MBO)

Shah publicity does not conduct HR audit.

3.10 Hierarchy Structure of Organization/ Departments

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Chairman

M.D/
Directer

General Manager

H.R manger

Administration officer

3.11 Absenteeism Rate

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While estimating demand for manpower, the prevailing rate of absenteeism in the
company should be considered. In shah the absenteeism rate is 5 to 6 % only.
In shah publicity punching system is used to mark attendance of employees
and very 3 half days or coming late is considered as one half day.

3.12 Employees Turnover

Employee turnover ratio means in the year how many new employees recruited
and how many left the job. The employee turnover ratio of shah is nearly 5%.

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Chapter4

Production department

4.1 Activities in Production Department


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Shah publicity is a service industry and its main products are hoardings,
billboards, kiosks, gantries, trivisions and all products relating outdoor advertising
as shah publicity is one of the most leading outdoor advertising agencies of south
Gujarat.

Due to this kind of products production plant of shah publicity is not fixed and
there is no specific process followed or location identified for production.
All kinds of processes are done in a manual way and using manual technology.

Even though the activities the activities are performed at macro level they are as
follows:
1. Location is identified.
2. Skilled engineers are appointed.
3. Designers are hired.
4. Skilled workers are recruited for labour work.
5. Electricians are hired.
6. Finally hoarding is placed.

In this first of all, location where hoarding is to be placed.


Then after on the basis of location and size engineers will design a structure
which is strong and durable and reliable and which takes into consideration all
sorts of quality standards.

Then designers design the aesthetic structure to be printed on the hoarding. It


is the concerned party’s wish that whether to use designs of their own or get it
done by shah publicity designers.
After this comes the work of printing which shah publicity does not do it by its
own in spite it gets it done from somewhere else.

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After the banner has been printed it is been fabricated by the skilled labour at
right time at the right position in a correct manner.
After this electrician does the electric fitting to make it more visible and
beautiful to viewers. In this two types are available. They are:
• Front lit
• Back lit

This is done according to the requirements of the customers.


Once this entire process gets completed periodic check is maintained that
whether lighting is proper, is it properly visible and all that.

4.2 Pant Layout

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“Plant layout is physical arrangement of various buildings, production


department, technical utilities and location of various machines within each
production department. The process of preparing plant-layout for new
manufacturing or service setup is called layout design.”

As we know that co. does not have any specific production unit thus it does not
also have specific plant layout.

It follows project layout which refers to the layout according to the requirements.
As it covers entire south Gujarat thus when it has to place hoardings or any other
thing out of Surat city it carries all of its raw materials and machines required for
the purpose and makes it there and fixes it there only.
Sometimes also if the size of the product is very big and for which transport is not
feasible then also raw materials and required machines are taken at the
concerned location and the work is done there.

The entire process is as follows:


1. cutting
2. welding
3. printing
4. installing

This entire is known as fabrication.

4.3 Technology Used


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In shah publicity various types of machines and equipments used are:

Welding machine Used for fabrication

Gas cutter Used for cutting

Drilling machine To drill holes etc.

Hexo machine For cutting plywood

Manual hexo machine For cutting plywood

1. Welding Machine

Betterman cd stud welder single phase maximum stud size 8mm

Ready to weld with hand torch and spares

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BOC Micro 15 Plasma TIG Welder

Key features
Complete package with Water Cooler, Foot Control and Hand Torch
Mains supply single phase 240/220 volts
Low range current 0.1 to 2.0 amps
High range current 1.5 to 15 amps
Manuals
Dimensions L815xW635xH510mm
Weight 150KG
All packages include New Torch, Earth and Regulator unless otherwise stated
Ready to plug and play!

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The basic purpose of this machine is it is used for fabrication.


Fabrication means joining the different parts and constructing the entire
structure.

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2. Gas Cutter

The gas cutter is used for cutting purpose.


With the help of this machine frames of various sizes and shapes can be cut and
used according to the requirement.

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3. Drilling Machine

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Specifications
Heavy duty 500 watt machine
Precision drill chuck of 13mm capacity with key
Easy to use switch to toggle between standard/hammer drill functions
2 speed drill with maximum no load speed of 2600 rpm
Insulated shock proof plastic body
Easy grip swivel handle with depth gauge
In built spirit level for straight drilling

4. Hexo Machine

This machine is basically used for cutting plywood.

5. Manual Hexo Machine

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This is also used for cutting plywood but this is manual and do not consume
electricity.

Machine Operation Stores

In this organization store part is very limited. As there is no specific production


unit spare parts and other things required also are very les. And also shah
publicity is very reputed company even if they place order at the time
requirement they get the products on time. Whereas some materials related to
fabrication and electricity are stored in some quantity to meet the urgent
needs

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Company Name: Shah Publicity


17, Everest Building, Opp. Railway Reserv. Centre,
Company Address:
Athwagate Circle
City/State or Province: Surat/Gujarat
Country/Region: India
Zip/Postal Code: 395 001
Telephone Number: 91-261-2478910

Fax Number: 91-261-2476154

4.5 Plant Location, Control of R.M. in Process and


Finished Goods

Plant location

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Raw materials

In shah publicity raw materials used are mainly of two types:


1. Electricity materials.
2. Fabrication materials.

Electricity materials
 36 w wipro tube
 36 w wipro electronic chawk
 tep roll pvc
 250 m.m. cv cable tie
 1.05 mm Polly cable wire
 1.5 mm 2 core cable
 2.5 mm 2 core cable
 4 mm service wire
 150 w wipro chawk
 250 w focus
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 400 w focus
 400 w tube
 150 w old big body focus
 igniter
 85 w focus
 85 w wipro tube
 32 amp connector switch
 timer switch
 36 w Asian tube fitting
 8x10 sintex box
 20 w chawk (amar)
 36 w copper chawk
 neon chawk
 pvc pipe
 pvc flexible pipe
 10 amp connector
 150w tube (metal light)
 32amp main switch
 flasher
 2.5 3 core azmar cable

Fabrication materials

 2” x 2” angle
 2 ½ x 2 ½ angle
 1 ½” x 1 ½” angle
 10’ x 4’ sheet
 8’ x 16’ sheet

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 12” wooden patti
 10’ wooden patti
 8’ wooden patti
 1” x 1” sq. pipe
 2” x 1” sq. pipe
 ½” round pipe
 tata wire
 nails 1” size
 nails 2 ½ size
 red oxide
 thinner

4.6 Quality Control

INTRODUCTION

Quality is the totality of features and characteristics of a product or service


that bear on its ability to satisfy stated or implied needs. Quality is a sense of
appreciation, that something is better than something else. It changes in a
lifetime from generation to generation and it varies by facts of human activity.
Quality means focusing on production of increasingly better products and
services at progressively more competitive prices.

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Today, companies have no choice but to implement total quality
management programs, if they are to remain solvent and profitable. Total quality
is the key to value creation and customer satisfaction.

The companies, in which the managers concentrate on the quality of goods,


they establish separate department for this purpose called quality control
department. This department is considered superior to any other department
so far as any matter related to quality is covered. The main duty of this
department is setting up quality standard, checking quality of product
manufactured and also for checking quality of inputs and outputs.

In shah publicity quality control is done through periodic checks at regular


intervals of various products placed through out the city and at other places.

Also it uses the standard electricity and fabrication materials of the same
company so that the quality satandrads are not altered and customers do not
have any complain.

Each and every problem is tried to be resolved before the complains of the
customer.

And the most important thing is that the structures and designs prepared by the
engineers are passed by S.M.C. And it issues a stability certificate.
After the issue of this certificate only these designs are considered durable and
safe and thereafter further work continues with them.
[Note: stability certificate and one copy of deign structure is attached in the
annexure]

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Chapter 5
FINANCE DEPARTMENT

“Finance management means the use of such managerial function as


planning and control to undertake finance function.”

Finance department is the area of business management devoted to a


judicious use of capital and careful selection of sources of capital in order to
achieve business goals. And finance management is to required for the company
to know the company’s assets and other matters it helps the organization to take
the decision

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Finance management is that managerial activity which is concerned with
the planning and controlling of the firm financial resources. Still today it has no
unique body of knowledge of its own and draws heavily or economic for its
theoretical concept.

organization‘s main aim to get profit maximization

In this section the accounts are maintained. Accounts are maintained in


traditional methods only. That is in ledger. The whole accounts department is
computerized. Accounts are made on the computers. Purchase, stores,
personnel and sales departments report their activities to the finance department.

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Structure:

Bills ST

Managing director

CHIEF FINANCE OFFICER

Billing Taxation

Dispatc Outward TD VAT IT


h

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Managing director

CHIEF FINANCE OFFICER

Billing Taxation

Dispatc Outward TD VAT IT


h

Main Functions:

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• To record all the accounts.
• To record all the payments of the company.
• It records all the transactions of the company relating to finance.
• To prepare annual reports each year.
• It also helps the organization by Inventory Control System
• To prepare short term budget for the future processes of the organization.
• To count and pay wages to the employees as par rules and regulation of
government.

Objectives:
• To predict the requirements of funds
• To find out the different sources of funds
• To acquire the required funds
• To invest the right amount of funds at right time and at the right place.
• To monitor the performance of various investments made by the
organization
• To maintain full and systematic records of business transactions:
accounting is the language of business transactions. As human memory is
limited and a human being can not remember each and everything
accurately and for a long period of time, the main objective of accounting
is to maintain a full and systematic record of al business transaction
• To ascertain profit or loss of the business: Though the sugar factory is a
co-operative venture and it doesn’t aim to profit maximization, one of the
important objectives of the accounts department is to ascertain profit. At a
point of time the firm does try to maximize profit but all the profit is
distributed in the members of the organization and the farmers. The
objective is to know weather the business is earning profit or incurred
losses. Profit and loss can be ascertained by preparation of profit and loss
account or income statement. A comparison of income and expenditure
gives either profit or loss.

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• To predict financial position of the business: A organization is interested in
ascertaining its financial position at the end of a certain period of time. For
this purpose, a position statement called balance sheet is prepared in
which assets and liabilities are shown if the assets exceed liabilities it is
financially health in other case it is financially weak organization.

Accounting policies:

• Valuation of finish goods is done at average of by products is done at;


average of last three monthly prices.
• Valuation of by- products is done at net realizable valued.
• Bonus and leave enchantment are accounted on payment basis.
• Valuation of fixed assets is done on historical cost.
• Sell of goods recognized as a when goods are dispatch.
• Income & expenditure are account on approval basis.
• Investment is shown at cost

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5.1 Cash Budget and Flexible Budget

Cash budget for the month ended on April, 2009

particulrs april
opening balance 264592.8

cash Receipts

axis bank-PT-047010300003254 100000


rambo circus 39000

total receipts 403592.8

Cash payment

anroli gran panchayat 2500


conveyance & petrol exp. 9100
dinesh solanki 15000
electricity charges 92990
house hold exp. 10000
legal & proffestional exp. 300
legal & proffestional fees 6491
nagarpalika rent 500
office exp. 2890
painting charges 2000
postage & courier exp. 100
premilben r.naika 1000
printing & stationary 170
repair & main to vehicle 5227
salary & wages exp. 1016
salary & wages payable 68068
samirbhai gulambhai 8000
shradha co.op 50000
tele phone exp. 150
transportation 7450
well decore 2760

total payments 285712

closing balance 117880.8

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5.2 Sources of Funds

Despite all the differences among companies, there are only a few sources of
funds available to all firms.

1. They make profit by selling a product for more than it costs to produce. This
is the most basic source of funds for any company and hopefully the method
that brings in the most money.
2. Like individuals, companies can borrow money. This can be done privately
through bank loans, or it can be done publicly through a debt issue. The
drawback of borrowing money is the interest that must be paid to the lender.
3. A company can generate money by selling part of itself in the form of
shares to investors, which is known as equity funding. The benefit of this is
that investors do not require interest payments like bondholders do. The
drawback is that further profits are divided among all shareholders.

In an ideal world, a company would bring in all of its cash simply by selling
goods and services for a profit. But, as the old saying goes, "you have to
spend money to make money," and just about every company has to raise
funds at some point to develop products and expand into new markets.

When evaluating companies, it is most important to look at the balance of the


major sources of funding. For example, too much debt can get a company into
trouble. On the other hand, a company might be missing growth prospects if it
doesn't use money that it can borrow.

Shah publicity mainly uses two kinds of sources of funds:


• Bank loan
• Investments

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This organization mainly takes loan from the axis bank and uses it as one
source of fund.

5.4 Relationship of Finance Department With

Marketing

The job of marketing department is to boost up the sales and increase the
profit of the company. Therefore it is essential for the marketing department
because to continue with any department one surely needs finance. The main
function of marketing department is to explore and research the market so that
company can develop itself. Finance is also required to train the marketing staff
to perform its functions properly. Development and malignance of new or existing
products or services requires finance. Finance assists marketing in promoting the
product moreover it also helps in fixing competitive price of a product. In today’s
highly competitive market it becomes unavoidable to ignore finance, through
finance proves to be a base for marketing they are interrelated with each other by
‘pricing’ {one of the 4 p’s of marketing}
In this company finance assists marketing activities by providing funds for various
promotional activities. It is useful in exploring and making a place in the
competitive market. The companies’ distributors have to bare the major
marketing expenses as they are given the responsibility of marketing
(Promotion).

Production:

Production and finance department are interrelated with each other.


Finance is required for the production activities of the firm. It is required to keep
the cost in control so that finance is used economically and judiciously. Main
functions of the finance department are to minimize cost of production.

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Production and finance department are to make decisions whether to buy or
make a product. To increase product lines also finance is required.

The company requires finance for setting up of plant, buying machineries and
equipments, capital expenditures, etc. obviously the company will also made
finance for day-to-day expenses like operating expenses, and variable expenses
etc.

Personnel:
Personnel department is always heavily dependent on finance department.
Finance department requires personnel along with computerized systems (if any)
to run the department harmoniously.
Even through there may be computerized system but personnel are
required to manage these systems. In this company very little amount of finance
function are undertaken do the requirement of personnel departments limited to
an extent but finance is required to pay the personnel of the company. Hence, we
can say that personal and finance department are interrelated with each other.

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5.5 Balance sheet and annual general report

Common size statement

Profit and loss (2006-07)

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particulars Amount percentage


(rs.)

income

advertisement income 95563459 100


(received)
bank interest 635 0.00066448
dividend 4600 0.00481356
dividend on mutual fund 2000 0.00209285
rent income from property 154073 0.16122585
interest on it refund 71195 0.07450023
ppf interest 5408 0.00565907

total 95801370 100.248956

expenditure
advt. board repairing material 21570349 22.5717541
advt. expenses 301010 0.31498441
audit fee 8750 0.00915622
bad debts 979289 1.02475257
bank commission 63029 0.06595513
bank interest 521948 0.54617948
bonus 70000 0.07324976
sales promotion 5000 0.00523213
commission 839429 0.87839956
conveyance and petrol 257338 0.26928494
depreciation 496615 0.51967039
design 274872 0.28763295
discount 2941645 3.0782111
donation and charity 4501 0.00470996
electricity 2078345 2.17483233
hoarding contract 3756507 3.93090313
hoarding lighting 1764875 1.84680946
insurance 195413 0.20448506
interest to others 760467 0.79577174
internet expenses 18306 0.01915586
labor charges 8151777 8.53022388
legal and prnl charges 66281 0.0693581
legal and prnl fees
mounting charges 8743610 9.14953277
nagarpalika rent 486537 0.50912452
transport 215435 0.22543659
office expenses 94421 0.0988045
office rent 19200 0.02009136
p.p. rent 14669244 15.3502648
painting
Summer training report 1610416 1.68517969
photography charges 661756 0.69247807
Payal
postage Jain
and angadiya 83264 0.08712954 95
printing and stationary 113135 0.1183873
professional tax 1000 0.00104643
smc 14607153 15.2852912
salary and wage 1126000 1.17827464
sardar bridge maintenance 651836 0.68209754
service tax 6445544 6.74477888 Navnir
man Institute of
staff mediclaim Management
1451 0.00151836
staff welfare 12480 0.01305938
telephone 387669 0.40566656
tender 12825 0.0134204
traveling 66518 0.0696061
vinyl making charges 1490230 1.55941404
welding 1404335 1.46953136

net profit 2040089 2.13480029

Balance sheet (2006 - 07)

particulars Amount (rs.) percentage

a) sources of fund
1) proprietor’s capital 7612094 30.73
2) secured loans 1,06,91,200 43.16
3) unsecured loan 64,62,889 26.09
total 24766183 100

b) application of fund
1) fixed assets 74,91,925 30.25
2) investment 8,25,716 3.33

current assets,loan,advances and deposits 3,90,55,126


less: current liabilities & provisions 2,26,06,584
1,64,48,542 66.41

total 2,47,66,183 100

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Profit and loss (2007- 08)

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particulars amount percentage
(rs.)

income

advertisement income 146676142 100


(received)
bank interest 378 0.00025771
dividend 6948.28 0.00473716
rent income from property 244526.13 0.16671159
interest on f.d. 79067 0.05390584
interest on s/b bank 1578 0.00107584
ppf interest 7447 0.00507717

total 147016086 100.231765

expenditure
advt. board repairing material 26279207 17.9164837
advt. expenses 1307963 0.89173535
audit fee 8000 0.00545419
bad debts 1201386 0.8190739
bank commission 83062.2 0.05662966
bank interest 1522405.24 1.03793652
bonus 55000 0.03749758
sales promotion 91073 0.06209122
commission 1307993 0.8917558
conveyance and petrol 313875 0.21399186
depreciation 710791 0.48459892
design 453775 0.30937206
discount 1443497.47 0.98413924
electricity 2368139 1.61453592
hoarding contract 15286429 10.4218919
hoarding lighting 2384274 1.62553635
insurance 291331 0.19862194
interest to others 279047 0.19024703
internet expenses 31895 0.02174519
labour charges 12965693 8.83967416
legal and prnl charges 1000 0.00068177
legal and prnl fees 217085 0.14800294
mounting charges 551207 0.37579868
nagarpalika rent 419146 0.2857629
transport 88234 0.06015566
office expenses 121682 0.08295964
office rent 192000 0.13090063
p.p. rent 19946675 13.5991271
painting 2392420 1.63109008
photography charges 967936 0.65991373
postage and angadiya 53957 0.03678649
printing and stationary 140707 0.09593039
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Balance sheet (2007 - 08)

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Particulars amount (rs.) percentage

a) sources of fund
1) proprietor’s capital 6136221.21 15.46712959
2) secured loans 23,573,546.40 59.42013572
3) unsecured loan 9,962,882.00 25.11271705
total 39,672,656.61 100

b) application of fund
1) fixed assets 8,372,840.14 21.10481338
2) investment 1,371,287 3.456503162

a) current assets,loan,advances and deposits

1) sundry debtors 48,459,019.66 122.1471507


2) sundry debtors for expenses 6,925,428.00 17.45642614
3) cash & bank balance 494,778.98 1.247153637

subt total I 55,879,226.64 140.8507305

less: current liabilities & provisions 30,013,181.00 75.65205752


sundry creditors for expenses 59,793.00 0.150715896
advances from customer 1,838,752.00 4.634809355

subtotal II 31,911,726.00 80.43758278

net current assets

b) loans, advances & deposits 5,961,029.26 15.0255359

total 39,672,656.61 100

Profit and loss (2008- 09)

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particulars Amount (rs.) percentage

income
advertisement income (received) 129433873 100
bank interest 345 0.00026655
dividend 27025 0.02087939
rent income from property 265910.81 0.20544144
interest on f.d. 88436 0.06832524

total 129815589.8 100.294913

expenditure
advt. board repairing material 14419049 11.1400893
advt. expenses 724151 0.55947565
audit fee 9812 0.0075807
bad debts 1193070 0.92176026
bank commission 101548.65 0.07845601
bank interest 2576593.77 1.9906642
bonus 39600 0.03059477
sales promotion 75204 0.05810226
commission 856969 0.66209021
conveyance and petrol 165426 0.12780735
depreciation 923731 0.71367022
design 168540 0.13021321
discount 3094611 2.39088187
electricity 3454724 2.66910347
hoarding contract 12101396 9.34948149
hoarding lighting 1662067 1.28410513
insurance 349756 0.27021984
interest to others 435005 0.33608281
internet expenses 39279 0.03034677
labor charges 9757858 7.53887508
legal and prnl charges 58809 0.04543556
legal and prnl fees 120368 0.09299575
mounting charges 4688772 3.62252314
nagarpalika rent 95170 0.07352789
transport 134868 0.10419838
office expenses 149628 0.11560189
office rent 192000 0.14833829
p.p. rent 24785655 19.1492802
painting 1171265 0.90491382
photography charges 1032621 0.79779812
postage and angadiya 28220 0.02180264
printing and stationary 97742 0.07551501
professional tax 2400 0.00185423
repairs and maintenance 519802 0.40159657
smc 15856206 12.25043
salary and wage 1142493 0.8826847
sardar bridge maintenance 104685 0.08087914
service tax 9212891 7.11783615

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staff mediclaim 13177.42 0.01018081
staff welfare 9477 0.00732189
telephone 449388 0.34719505
tender 44650 0.03449638
traveling 94902 0.07332084
vinyl making charges 4075896 3.14901803
welding 1484485 1.14690611
bus contract expense 6723950 5.19489207
bus shelter expense 896000 0.69224538
consultancy 335590 0.25927525
kasar vatav expense 28669 0.02214953
mobile van contract 315209 0.24352899
preliminary expense 9800 0.00757143
subscription and membership 8005 0.00618463

net profit 3795005.88 2.93200365

total 129815589.8 100.294913

Balance sheet (2008 - 09)

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particulars amount (rs.) percentage

a) sources of fund
1) proprietor’s capital 9427864.15 25.19888756
2) secured loans 15686811.13 41.92786231
3) unsecured loan 12299135.65 32.87325013
total 37413810.93 100

b) application of fund
1) fixed assets 4029095.5 10.76900588
2) investment

a) current assets,loan,advances and deposits

1) sundry debtors 45909458.08 122.7072488


2) preliminary expenses 29400 0.078580608
3) cash & bank balance 4195 0.011212437
4) loans and advances 6263227.19 16.74041493
5) deposits 6965023 18.61618164
59171303.27 158.1536385
less: current liabilities & provisions
sundry creditors for expenses 30638714 81.89145462
provision for expenses 4125904 11.02775659
tax deducted at sources 737943 1.972381272
35502561 94.89159248

net current assets 23668742.27 63.26204597

b) loans, advances & deposits 13745068.66 36.73795403

total 37413810.93 100

5.6 Working Capital

It refers to capital that is held to meet day to day requirements of the business.

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It is classified in two categories:
1. gross working capital
2. net working capital

Gross working capital

It refers to organizations total investment in total current assets viz. cash,


marketable securities, inventory etc. it is also known as circulating capital.

Net working capital

Net working capital refers to the difference between current assets and current
liability.
NWC = CA – CL
CA = current assets
CL = current liabilities

5.7 Ratio Analysis

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Ratio analysis aims at assessing the financial soundness and viability. Ratios are
percentages or relationship of two variables. Gross figures or absolute data of
any company at a point of time has no meaning. A comparison of the same
company at two different time periods will reveal improvement or deterioration.
Ratio Analysis provides the valuable insights into the companies compared, their
performance and overall efficiency. Their comparative picture gives guidance of
corrective measures necessary for any one of them. The investment and
disinvestments decisions on these companies can be based on such comparison
The financial ratios can be classified into four categories:

(A) Profitability Ratio


(B) Liquidity Ratio or Solvency Ratio
(C) Leverage Ratio
(D) Activity or Efficiency Ratio

(A) Profitability Ratio:


Profitability ratios are of two types:

(1) Profitability ratio based on Sales


(2) Profitability ratio based on Investments

(1) Profitability Ratio based on Sales

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(a) Gross Profit Ratio :
It measures the gross profit margin on the total net sales made
by the company. It expresses the degree of efficiency of the
each department and degree of cost control.

Gross Profit Ratio = Gross Profit * 100


Net Sales

Particulars 2008 2007 2006


Gross Profit 76314953 74078559.77 49502708
Net Sales 129433873 146676141.8 95563459
GP Ratio 58.9% 50.50% 51.8%

Interpretation:
From the above calculated ratio we can conclude that in the
year 2007and 2006 the gross profit of the company remains consistent with 50%
But in the year 2008 it increases to 58.9%. This shows that the company’s profit
increases to 8%.

(b) NET PROFIT RATIO

Net profit margin is more specific ratio and measures the


relationship between net profit and sales of a business unit.

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This ratio tells the real efficiency of the business unit after
taking into consideration all expenses.

Np Ratio = Net profit after interest and tax * 100


Net Sales

Particulars 2008 2007 2006


Net profit 3795005.88 4132275.45 2040089
Net Sales 129433873 146676141.8 95563459
N.L. Ratio 2.93% 2.81% 2.13%

Interpretation:
From the above calculated ratios we conclude that the net loss ratio
of the company is continuously increasing in the three years. For the
year 2006 is 2.13%, for the year 2007 is 2.81%, for the year 2008 is
2.93%. The company needs to have a control over its expenses in
relation to the sales.

(B) Liquidity Ratio

(1) C U R R E N T R A T I O

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It measures the solvency of the company in the short term. It
also indicates the firm’s ability to pay its current liabilities .It
shows the strength of credit, working capital and capacity to
carry on effective operation.

Current Ratio = Current Assets/


Current Liabilities
Particulars 2008 2007 2006
C u r r e n t A s s e t s 59171303.27 55879226.64 39055126
Current 35502561 31911726 22606584
Liabilities
Current Ratio 1.67:1 1.75:1 1.72:1

(C) Leverage Ratio:

 PROPRIETARY RATIO

This ratio shows the proportion of proprietors fund to the total


assets employed in the business. The higher the ratio the
stronger the financial position of the enterprise as its signifies
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that the proprietors have provided the larger fund to purchase
the assets. Proprietor’s funds include share capital, reserves
and surplus. Total Assets include the total of the asset side of
the balance sheet.

Proprietary Ratio = Proprietor’s Funds *100


Total Assets

Particulars 2008 2007 2006


Proprietor’s 9427864.15 6136221.27 7612094
Funds
Total Assets 63200398.77 64252066.78 46547051
Proprietary 14.63% 9.55% 16.35%
Ratio

 DEBT EQUITY RATIO

This ratio indicates the relationship between borrowed funds


and owners capital. It is popular measures of the long-term
financial solvency of a firm. This ratio indicates the relative
claim of creditors and shareholders against the assets of the
firm. This ratio is generally 1:1 in public sectors and 2:1 in
private sector.

Debt Equity Ratio = Long Term Liabilities * 100


Shareholders Funds

Particulars 2008 2007 2006


L.T.L. 32985946.78 33536435.4 17154089
Shareholders 9427864.15 6136221.27 7612094
Funds
Debt-equity 3.49% 5.47% 2.25%

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ratio

 Long term fund to fixed assets ratio = Total long term funds
Fixed assets

Particulars 2008 2007 2006


Total long term 32985946.78 33536435.4 17154089
funds
Fixed assets 4029095.5 8372840.14 7491925

Long term fund 8.18% 4.01% 2.29%


to fixed assets
ratio

(D) Activity ratio

 DEBTORS TURNOVER RATIO

Debtors’ turnover indicated the number of times debtors’


turnover each year. Generally, the higher the value of debtors’
turnover, the more efficient is the management of credit. It
measures whether the amount of resources tied up in debtors is
reasonable and whether the company has been efficient in
converting debtors into cash.

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D.T. Ratio = Credit Sales *100
DEBTORS

Particulars 2008 2007


Credit Sales 129433873 146676141.77
Debtors 22437651.04 27692224
Debtors 5.76% 5.29%
Turnover Ratio

 TOTAL ASSETS TURNOVER RATIO

It shows the relationship between total assets to sales.


The sales are affected through investment in fixed assets to
earn profits. The higher the ratio shows that with less amount
of investment in total assets the business has a capacity to sell
more as its profitability is also more.

Total Asset Turnover = Net Sales


Total Assets

Particulars 2008 2007 2006


Net Sales 129433873 146676141.77 95563459

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Total Assets 63200398.77 64252066.78 46547051
Total A s s e t s 2.04% 2.28% 2.05%
Turnover Ratio
(times)

 Fixed assets Turnover:


To ascertain the efficiency and profitability
of business, the total fixed assets are compared to sales. The more
the sales in relation to the amount invested in fixed assets, the more
efficient the use of fixed assets.

Fixed assets Turnover = Sales /


Fixed assets

Particulars 2008 2007 2006


Sales 129433873 146676141.77 95563459

4029095.5 8372840.14 7491925


Fixed assets
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Fixed assets 32.12 17.5 12.75
Turnover
(times)

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Chapter 6

BIBLIOGRAPHY

Books

1) advertising communications and promotion management , McGraw-Hill


international editions), by Jone R. Rossiter

2) Marketing management, 12th ed.. pearson prentice hall,


Philip kotler.; Kevin lane keller (2006)

3) Advertising Management 1996, David A.


Aaker, Batara , Rajeev Jone G. Myers

4) Financial management
Khan and Jain

5) Production Management

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Ashwathappa

6) Human Resource Management


Stephen Robbins

Websites
www.google.com
www.shahpublicity.com

Chapter- 7 Annexure

[Note: stability certificate and design structure format and


questionnaire have been attached.]

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