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Neel D Patel (Roll No. 1346)



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This is a stationary manufacturing industry which manufactures different kind of stationary for
all different class of people and for everybody to use as per their need. These companies are
helpful to all those who want to purchase stationary. These industries as well serve directly to
those big customers who want to have Stationary with their own style and need.

Book industry is very wide and so much invention is taking place now a day so that it is getting
expansion. These industries as well help Government by providing books to poor people for free
of cost and as well for very low prices. These industries have also a good impact on our
Economy and a good share in our Economy.

 ?   . is a company manufacturer of stationary item useful
for students and other office use. There are many other competitor industries of stationary
manufacturer. The aim of all these industries is to fulfill the need of long books, note books,
graph books, exercise book, drawing book etc. to the school industry and college industry.
These manufacturers also provide stationary to corporate world and offices as per their need. In
this part of manufacturing they manufactures note pad, office pad, white paper for printers and
other computer stationeries.

In Stationary industries there are many players or competitors. Big industries in stationary
industry are as follow:

c Navneet Publications (India) Pvt. Ltd.

c ›akar Books (India) Pvt. Ltd.
c Saurabh Pustak Bhandar International
c Rainbow Books Pvt. Ltd.
c Expressions, ITC Ltd.
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The organization structure of ? 

 ?    is designed as below:

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cm  c
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cm  c
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m  c
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 c $$c c    c $$c c m    c%c# c c   cm  c

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›s shown above the organization structure of the ?  
 ?      is
simple and well coordinated. It is divided into three levels as following.
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Shree Vimalbhai is the promoter of the company who is current managing director of the
company. He is the vanguard of the total management team. Shree Sumatikumar is B.O.D
(Board of the director) of the company. Key decision making regarding the strategies and all top
management decisions are carried out by Shree Vimalbhai and Shree SumatiKumar.

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Middle management of ?  
 ?      is divided into four

1) Production Department:
2) Marketing Department
3) Finance Department
4) H.R Department

Shree Motidas is the head of production department. He is working with the company from last 6
years. He is the most knowledgeable person in the company about the production. ›ll the key
decisions about the production department of both the units of the company is handled by him.

Shree Vimalbhai who is Managing director of the company is also working as head of Marketing
and Human resource department. ›ll key decisions regarding both departments are carried out by

Shree Laxmipat is the head of finance department. He works with the company from last 7 years.
›ll financial decisions are carried out by him.
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Under production department there are two branch managers handling both production units of
Masma and Olpad. Under marketing department there are three heads of three marketing offices
of company who undertakes all marketing activities of lower level. In finance department cashier
and accountant of company performs all finance activities. ›ll the H.R activities are performed
by their respective department heads and branch managers.

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The entire operation of the company is divided in to four different departments.

1. Production.
2. Finance.
3. Marketing.
4. Human resource management.
Under production department there are six different departments performing different operations
of production which are, Ruling Dept., Folding Dept., Stitching Dept., Binding Dept., Finishing
& Cutting Dept., and Packing & Dispatching Dept. The base of departmentation in production
department is the operation it performs in the production process.

In Finance department the departmentation is entirely based on the functions of finance

department. The finance activities are carried out by accountant and cashier of the company.

Marketing department is entirely divided into three different areas. Surat branch, Saurastra
branch, Maharastra and Gawuhati branch. We can say the departmentation is entirely based on
main areas of company¶s marketing.

Human resource department in ?  

 ?     . is very informal and
unstructured so the activities related to human resource management are carried out by the
department heads of respective departments and one branch manager is appointed for these
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Distribution network of the company appears very simple at first glance but it is very well
established and aids for smooth Safe and timely distribution of company¶s product to its final
customers. The distribution of the company¶s product follows the below stated procedure.

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Company receives customer orders at both regional and central office. Order received from
central office is converted into final product and than it is directly sent to Distributors and
wholesalers or they may be processed through regional office according to the area of
distribution. ›nd than it is sent to the retailers of different areas like stationary shop, bookstalls
etc. through them they are finally reached to final consumers of the product.

The Company operates with two production units and hence there are two production
department, one administrative office and one Finance or ›ccounting department. The majority
part of the human resource of the company is contributed by production department and hence
the policies related to Human resource are mainly focused to production department only.
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Production unit 1 (Olpad) 190
Production unit 2 (Masma) 38
Marketing Department 4
Finance department 4
Human resource department 5
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,""c&c( Managing director and B.O.D)c 2
c&c(Department head and Branch manager)c 12
%c&c(assistants, accountants, cashiers, workers )c 227
Though the company is working with such a large no of employees, there is no formal Human
resource department. Human resource is the most important element in every organization,
without which no firm can function properly. However, The Company appliances do not much
emphasize on the H.R dept. and does not offer much welfare facilities to its employees.

Before discussing about Human resource planning procedure in ? 

  First of all we have to understand what do the term human resource planning means.
In simple terms Human resource planning is the process of forecasting firms future demand for
and supply of right kind of people in right number.

³ Human resource planning includes estimation of how many qualified people are required to
carry out assigned activity, how many will be there and what if any thing must be done to ensure
personnel supply equals to personnel demand at appropriate point in future ´

How ever the ?  

 ?      Does not follow the human resource
planning process formally and systematically but it follows the following steps for Forecasting
future demand and supply of manpower.

1.c Human resource demand forecast.
2.c Human resource supply forecast.
3.c Programming & Implementation

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Demand forecasting is the process of forecasting future quantity and quality of people
required. While forecasting demand the company studies following factors and then estimates
the future requirement of number and kinds of people.

- Competitor¶s technological change and policies

- Technological Changes
- Legal factors


- Production level
- New product ( for example the company is going to launch new brand
notebook called T›RGET for which they will have to increase capacity
and will have to increase man power.)
- Long term plans

Depending upon the above factors the company estimates the number of people that will be
required in future no formal method is followed by the company for demand forecast.
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Supply forecasting measures the number of people likely to be available from within the
organization and outside the organization. In order to estimate the number of people that will be
available from outside and inside the company, firm analyses following sources:

c c c - Present employees
- Employee referrals
- Competitor¶s employee (Those who wish to join ? 

?   )
- Employee exchanges
- Contractors.

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If the company find that supply will be more in future than demand than they currently do not
take any steps and if they finds that demand will be more than supply than they arranges
programs like recruitment, selection, placement etc.

³Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.´

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1)c When the firm acquires new machine permanent worker is needed to operate that
2)c When any existing worker resigns or fired the job permanently need for new worker
3)c During seasons where production load increases due to high demand requirement of
temporary worker arises.
4)c When the existing worker goes for a leave for a long period say more than 20 days a
temporary worker is required to fill that vacancies.
5)c When the firm is not satisfied with any existing worker in terms of behavior,
punctuality, work it requires new worker to replace that worker.


Whenever the company feels need for recruitment it mostly turns towards its internal
sources but some times when the firm disables to manage new employee from internal sources it
also takes help of external recruitment sources.

1)c Internal sources
2)c External sources
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When the proprietors feel need for recruitment he asks the existing workers ³Is there any worker
do you know?´ and the existing workers if they know any one they send a person. Thus existing
workers proves to be most useful internal sources of recruitment. This source is used by the
company for lower and middle level employees.

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The workers who have previously been working in the firm and they have resigned or fired from
the firm also may want to join the firm. Or they may recommend some one.

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The firm selects a worker is his performance exceeds to a certain standers in his selection test
other wise that candidate is rejected; some times the candidate may also be rejected because of
some other reasons. If that candidate comes again in the firm and asks for the job and if the
proprietor finds need of that person he hires him. Normally this source serves for temporary
recruitment when demand is high. Such candidate proves helpful for low level work.

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The proprietor also brings his relatives for administrative work some times.

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The traders also some time recommends some one.

½c Some Times It ›lso Happens That The Worker Him Self May Come Directly ›nd ›sk
For The Job.
The ?  
 ?      uses following external resources to recruit
persons from outside the organization.

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The firms give advertisements in local news papers classification page. This source is rarely used
by the firm. ›ccording to the proprietor, if all other sources fail then only this source is used.
Thus this source is helpful during the shortage of workers.

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The workers working competitors firm are also recruited. This type of workers is given first
preference. This source is mainly used for higher level employees.
The ?  
 ?     . follows following recruitment process for
recruiting the manpower against vacancy.

1.c Collecting details about current vacancies in the industry.

2.c ›dvertisements of vacancies internally
3.c Selection of the recruitment sources
4.c Sources activation
5.c Informing job applicants regarding the job, details
6.c process all applicants with efficiency
7.c Suitable candidates are screened out based upon their qualifications.

Selection is the process of choosing the most suitable persons out of all the applicants. In this
process relevant information about applicants is collected through a series of steps so as to
evaluate their suitability for the job to be filled.
Selection is the process of matching the qualifications of applicants with the job requirements. It
is the process of weeding out the unsuitable candidates and finally identifies the most suitable
candidate. Selection divides all the applicants into two categories-

(a) Suitable,
(b) Unsuitable.

Selection may be described as a process of rejection because generally more candidates are
turned away than hired. Selection is different from recruitment.

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-c Receipt of applicants
-c Screening of applicants
-c Personal interview
-c Reference checkup
-c Selection test

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›dministrative department of ? 

 ?    receives the applicants
of interested candidates.
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Received applicants are screened out. The applicants, visibly disqualified for the jobs are
rejected. Most suitable and qualified candidates are called for the interview.
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›fter screening of application the prospective employees are asked for personal interview. The
candidates are interviewed by one of the directors of the company, the head of the relevant
department and also the employees having in depth knowledge regarding the job.

They uses mixed type of interview that is some questions are structured (predetermined) as well
as unstructured [not pre determine).

Moreover in this interview the interviewer allows the interviewee. On the basis of which he
evaluates that candidate. The evaluation is done during the interview and after the interview.

½c What is your work experience?

½c Where were you working previously?
½c What job you were doing there?
½c Why did you leave the previous job?
½c What was your paying their?
½c What salary do you expect?

›part from how these questions some technical question related to the job are also asked.

›fter this interview the interviewee is asked to leave contact number.

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›fter the personal interview the reference of the person is checked up.

I.c To ensure that weather the candidate has given the right information [ans.] on the questions
asked to him.
II.c To know his behavior with previous employer
III.c To get some additional information about his character and background.

The background is usually checked up on telephone or personally meeting. ›fter the interview is
finished the interviewers asks his existing workers about that candidate. Many times it happens
that the existing worker know that person the reference from his previous employer is also
checked up.

i c

›fter the reference is checked up the candidate is called for the test.
There is not any kind of written test over here, the test is as below:

½c The candidate is asked to work on the machine to prepare a sample.

½c ›nd when the candidate works, he is being observed by the Supervisor.

The main things that is his style to work, hand movements, methods, accuracy are observed and
from this the interviewer becomes able to know his performance level [how much work does he
know?] and his aptitude [how much time he will take to learn?]

In this test if the workers fails to meet the desired standers he his rejected. ›nd if his
performance is considered at required level than he is informed about his selection.

Job description is a functional description of what the job entails. It is descriptive in nature and
defines the purpose and scope of the job. Job description is a written record of the appropriate
and authorized content of a job. It is a factual and organized statement describing the job in terms
of its title, location, duties, responsibilities, job conditions, hazard and relationship with other
jobs. It tells us what is to be done, how it is to be done and why. The main object of the job
description is to differentiate from the other jobs and to set outside its outer limits. Job
description is an important document as it helps to identify the job and gives the clear idea of
what the job is.

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c !c This post is Located in To handle all the Department and
Head Office of the to keep control on the Company
c This post is Located in the To handle activity of all area of
Head Office of any City or particular City
!1cc This post is Located in To handle all the ›ctivities
Branch of the Company handled at Branch Level
"#c]c This post is Located in in To handle all the ›ctivities that
each Department like comes under the related
Production, Finance, Department
Marketing, Personnel
*1c This post is Located in the To handle all the ›ctivities related
office of the company with Cash Payments and Cash
where Cash is received Collections
!!c This post is Located in To handle all the ›ctivities of
every Branch Office of the accounts
c This post is Located in To handle all the ›ctivities related
every site of Production with Machines and Maintenance
"c This post is Located in To handle all the ›ctivities related
every site of Production to particular machine which he is
Plant handling
]"c6c1c This post is Located in To handle all the ›ctivities which
every site of Production Operator orders to do for the
Plant fulfillment of the task
+(c This post is Located in To handle all the ›ctivities
every site of Production regarding labour work like
Plant shifting, handling etc.


Job specification or men specification or employee specification is a statement of the minimum

acceptable human qualities required for the proper performance of the job. It is a written record
of the physical, mental, social psychological and behavioural characteristics which a person
should possess in order to perform the job effectively. Physical characterists include height,
weight, chest, vision, hearing, health, age, voice, poise, hand and foot coordination, etc. Mental
characterists consist of general intelligence, memory, judgment, ability to concentrate, fore sight,
etc. Social and psychological characterists comprise emotional stability, flexibility, personal
appearance, pleasing manners, initiative, drive, conversational ability, etc. Other personal
characterists include sex, education, family background, job experience, extra-curricular
activities, hobbies, etc. ›ll these traits may be classified into three categories:

½c Essential attributes which a person should possess.

½c Desirable attributes which a person ought to possess.
½c Contra-indicators which will become a handicap to successful job performance.
Job specification tells what kind of a person is required for a given job. It serves as a guide in the
recruitment and selection processes. It is also helpful in training and appraisal of employees. Job
specification is criticized on the ground that involves the great deal of subjectivity. It is
restrictive in nature as it restricts the development of an individual in the job. Organizations
generally tend to specify relatively high requirement for the formal education and training with
the result that highly qualified personnel end up doing routine jobs. Despite these problems it is
necessary to specify for every job the minimum acceptable human qualities.

In ? 
 ?    for Job Specification only personal characteristics
are taken into consideration. Which are as mentioned bellow:

½c Sex
½c Education
½c Family Background
½c Job Experience
½c Extra-Curricular ›ctivities
½c Health

³Promotion means an improvement in pay, prestige, position and responsibilities of an employer

within his/her organization.´ › new job is promotion far an employees. Only when it caries
increased responsibility ties and enhanced salary.

In ? 
 ?    The promotion is mainly done among work levels.
There is no Scope of promotion for account department or to other administrative departments.
The promotion is work levels takes place in the following order.


m  +c * c




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Thus worker performing low level work can be promoted to middle level work and the worker
doing middle level work can promoted to high level work. The sequence of promotion strictly
follows the above hierarchy. There is no scope for any worker to be promoted directly from low
level work to high level work. The low level worker can only be promoted to middle level work
so on.
Bases of Promotion:

1.c Seniority of the worker in terms of experience:

2.c Performance of the worker.

Both these Bases are taken into account while choosing the candidate for promotion to be given.
c c
The ?  
 ?     . Emphases only on the vertical promotion that
increase in employee¶s pay responsibility and designation along with change in nature of job.

1.c Pay increase

2.c Work load increases
3.c Prestige
4.c Drawing power (Monitory drawings )


There is also scope of demotion in the firm. › high level worker can also be demoted to middle
level or law level. The reason which may cause demotion of the worker is his performance level
I. E. suddenly decrease in his performance or level of work.
³Transfer involves change in job (along with change in place of job) without change in position,
pay or responsibilities.´

›s mentioned before company has two production units one was established in 1992 and other
with increased capabilities was established in 2003. The company transfers the employees from
one production unit to another unit when the requirements are felt.

Internal transfer among jobs is not present in company only uses transfer at external level. Some
times the employee with better capabilities are transferred to other production unit on temporary
bases for certain time period.

½c When one production unit feels shortage of employee because of heavy demand of the
product manufactured is experienced and at the same time the other production unit¶s
worker are in surplus in number than company uses temporary transfer to balance the
shortage of employee.c
½c ›s the unit which was established in 2003 is new some times some technical errors are
experienced than the well experienced employees from old established unit are
temporarily transferred to that unit to solve the problem.c
½c Sometimes employee also ask for transfer to other production unit may be due to
unsatisfactory climate and other family related issues than after negotiation and following
the rules he/she is given transfer to other production unit.c
Transfer is also used as the weapon for punishment to the employee. Some times if the
performance of employee is found to be less than minimum level than he/she is threatened of
transferring to other production unit.

³Training is any attempt to improve current or future employee performance either by increasing
his/her ability to perform through learning, usually by changing employ¶s attitude or by
increasing employ¶s knowledge and skills.´

Thus, the main purpose of training is to bridge the gap between the job requirement and present
competence of an employee. So we can say that training aims at improving the performance and

In ? 
 ?    Training is only given on technical Base (only Job

Company do not provides any formal kind of training programmed for employees.

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1.c When a new employee joins, he is given some basic knowledge related to how
to operate the machine carefully, what kind of accidents can take place? , when
to oil machine? , how much rest does the machine require in each shift etc.

2.c Secondly if the appointed worker¶s performance does not meet the standards
and if the proprietor feel that he is capable of being trained? Special training is
given to him.

3.c When an existing worker¶s performance deteriorates suddenly or gradually and

the notices that, that employee is given training.

4.c When the worker asks for training.


When the new employee join the company, the company give them introduction training. In
introduction training, the company introduces its every function to the employees.

When a new employee joins an organization, he is completely a stranger to the people, work
place and the work environment. Therefore, he is likely to feel insecure, shy and nervous. In the
absence of information and support caused by a gap between his expectations and the real
situation. Induction or orientation can help overcome these problems. Once an employee is
selected and placed on an appropriate job, the process of familiarizing him with the job and the
organization begins.


In simple words, Performance appraisal is an objective assessment of an individual¶s

performance against well defined benchmarks.

³Performance appraisal is the systematic evaluation of the individual¶s performance with respect
to his or her performance on job and his or her potential for development´

 ?      follows following parameters to assess the
employee¶s performance.

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Company follows formal appraisal system to evaluate the performance. The performance
appraisal program occurs twice a year.

Company¶s performance appraisal is limited only to individual level there is no space for group,
department, or division level appraisal programs.

Production manager and supervisor of the concerned employee are used as the rater of the
performance of employee. These both evaluate the performance of employee at work and rate
them combine.

c c
½c 5$c
The degree to which the produced product under the respective employee is similar to idle

½c !"$
The degree to which employee is participative in management decisions and other management

½c !$
The number of days per month or year employee is marked as present on job.

½c "$
The quantity of the output produced whether in terms of number of units produced or in
monitory terms how much he has contributed to company?

½c *&$
Creative/innovative methods of work or activities developed by the employee. ›ny alternative
method suggested by employee.

To meet growing demand of company¶s product in country the company has recently
installed fully automatic plant at Masma (Surat). Company has installed technologically
advanced and fully automatic plant worth 5 to 6 croers rupees. This technological
advancement helps organization to maintain its position in whole industry. No other
company in the book market is having such advance and automatic technology for
production. With this technological advancement of manufacturing company has doubled its
export during last year due to the best quality products produced by this plan.
c.ccc c

Company is in a good mood of expanding its operations beyond its current situation and
capacity. Recently Company has installed a new automatic plant worth 7 Croers at Masma site.
The company is still planning for further expansion and growth.

The company is interested to enter in a new segment of Computer Stationary. For that purpose
Market Research is going on. So there is no need to get amazed if you see Computer Stationary
Product of å ?
 brand in next 6 to 8 months.

The company is going to introduce office stationary in wide range as per need of different offices
and other institutes. The company is introducing Photo Copier Paper (Xerox Paper) in next one
or two months.

The company is also interested in expanding its current Product line.

The competition in the Stationary Market is growing day by day and hence Company is planning
its future strategy keeping in mind Strengths, Weaknesses and the emerging Opportunities and
Threats in the environment.
!c /889c /88ic /88ac

c.c., c c c c
1) Shareholders¶ funds:
a) Share capital 6042600 4034000 4032000
b) Reserves and Surplus 19631217 5576086 7285719
2) Loan funds
a) secured loans 72349488 62405950 28716669
b) unsecured loans 96754386 92374983 53986706
3) Deferred Tax Liability 2019070 5586168 2359379
c.c 3 9: 9:93c 39 ::3:c 9J8a:Jc

* c.c.,
c c c c
1) Fixed ›ssets
a) Gross Block 94455287 90675029 32371976
b) Less: Depreciation 19207193 11070215 8491647
c) Net Block 75248094 79604814 23880329
2) Current ›ssets, Loans & ›dvances
a) Inventories 56350306 51360725 52550010
b) Sundry Debtors 48911405 28710091 16573221
c) Cash and Bank Balance 10261805 9539390 8110705
d) Loans and ›dvances 29293641 17297051 6614453
c 3aa3:3i:c 389 8:/i:c JaJ c
Less: Current Liabilities and provisions
Liabilities 22593220 16375577 11175729
Provisions 675270 159307 172516
c /J/9a 8c 39iJaac 33Ja/aic
c*,)) c

c 3/3ia99:c 8J:/J:Jc :/i883aac
c 3 9: 9:93c 39 ::3:c 9J8a:Jc
!c /889c /88ic /88ac
 *c c c c
1. Sales 204224553 177394591 151808099
2. Other Income 20532840 15457228 12103650
3.Increase in Stock 0 0 13979299
c //a:i:J Jc 3 /i33 c 3:: 38ac
 ,)c c c c
Decrease in stock 1760594 8156836 0
Cost of materials 175048148 150625580 142692098
Manufacturing expanses 8419196 6889394 11934925
›dministrative expanses 3321518 3007265 2378151
Financial charges 16039707 11086655 8964879
Selling and distribution expanses 8354453 7685966 7459170
Extra ordinary items 520626 559292 617524
Depreciation 8136978 2891087 2450922
c //3983//8c 3 8 8/8:ic 39J i:/ic
c"cc1cc J3i93:Jc 3 a :aac 3J JJ: c
Less: prior year¶s adjustments 1000 270754 0
cc1cc'c-c J3ii3:Jc 39: 9 8c 3J JJ: c
Less: provision for income tax
a) Current year¶s tax 274754 159307 172516
b) deferred tax -3567098 3226789 329925
c) Fringe benefit tax 80675 0 0
d) previous year¶s tax 7775 11227 8210
cc1ccc-c 9Ji 89:c 33:3:9JJc /:/c
›dd: Previous year¶s P&L a/c Balance 4938386 6656019 5773291
Balance available for appropriation 11297453 4938386 6656019
Proposed dividend 296721 0 0
Corporate dividend tax 41615 0 0
!c!c%cc'!c1c 38 i 33:c a JJ9c 99i983 c

!c #c
Net Profit before Tax 1475483
+ Depreciation 19207193
+ Reserve & Surplus 14055131
ccccccc.c#c"c Ja:J:8:c
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!c /889c /88ic !c !c
*cc c c c c
Inventory 56350306 51360725 4989581
Sundry Debtors 48911405 28710091 20201314
Cash & Bank Balance 10261805 9539390 722415
 c 33ii/Ji39c  938/89c /i 3JJ38c c
*c'c c c c c
Liabilities 22593220 16375577 6217643
 c //i J//8c 39J:ii::c c 9/3:9aJc
 c3c  c / J8/ 9c :J/Ja9/ c /i 3JJ38c 9/3:9aJc
Increase in W.C. 19695667 19695667
c / J8/ 9c / J8/ 9c /i 3JJ38c /i 3JJ38c
!c #c !c #c
Issue of Capital 2008600 Purchase of F.›. 3780258
Treading Profit 27180009 Non Treading Expenses 46553072
Non-Treading Income 16735104 Payment of Loans 13843073
Funds from operating 34737807 Increase in W.C. 19695667
Long Term Borrowings 3210550

c J:/8:8c c J:/8:8c

Internal ›udit Policy and Financial control system at ? 

is informal and not so much systematic. The main areas of their concern are as following:

½c Purchase
½c Collection
½c Stock ( inventory)

Every Sunday Shri Babulal Bhati prepares one informal financial reports which are audited by
the accountants and sent to all department heads that analyses it from various prospective and
tries to take various corrective actions.

½c Inventory balances supply and demand
½c Inventory acts as a buffer between critical Supply Chain interfaces
c supplier ± procurement

c procurement ± production

c production ± marketing

c marketing ± distribution

c distribution ± intermediary

c intermediary ± user

½c Inventory allows for economies of scale in

c Purchasing

c Transportation

c manufacturing

There are various reasons for holding inventory. Inventory acts as a buffer between supply and
demand fluctuations and irons out supply chain system failures. The smoother your supply chain
operates and the better you are able to forecast the less inventory you have to hold, unless you
gain some economies of scale in purchasing, transportation and or manufacturing.

½c Raw Material Inventory
½c Work-in-progress Inventory
½c Finished Goods Inventory

There are three categories of inventory; too much in either may be a bad thing unless you
have reasons for it such as seasonality, production runs, and prevention of stock outs or
improvement of customer satisfaction levels.