Final Project {Surajit}

8/8/2019 Final Project {Surajit}

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SKYLEAD GROUP OF COMPANIES

BHAVNAGAR-RAJKOT HIGHWAY,

NAVAGAM,

BHAVNAGAR-364060

PREPARED BY GUIDED BY

SURAJIT.A.GOSWAMI Ms. NEHA UPADHAY

ROLL NO. 199 (LECTURER)

SWAMI SAHAJANAND COLLEGE OF COMMERCE &

MANAGEMENT

BHAVNAGAR UNIVERSITY

BHAVNAGAR

BATCH 2008-2011


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A

PROJECT REPORT

ON

INDUSTRIAL TRAINING

AT

SKYLEAD GROUP OF COMPANY

PREPARED BY GUIDED BY

SURAJIT.A.GOSWAMI Ms. NEHA UPADHAY

(LECTURER)

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE

REQUIREMENTS FOR S.Y.B.B.A. OF

BHAVNAGAR UNIVERSITY, BHAVNAGAR, GUJARAT, INDIA.

BATCH

2008-2011


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CANDIDATE STATEMENT

I the undersigned agree that the contents presented in the report is my own work and have

not been copied from any past report.

DATE: -

PLACE: - BHAVNAGAR

SIGNATURE

(Surajit.A.Goswami)


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PREFACE

There is difference between practical implication and theoretical studies. To

become successful manager only theoretical studies is not enough but with that

application of those theories in the work line is also important and as we know, the

management is concerned with the high importance of theories in business. So for

being a student, it is very easy to understand various aspect of management. Thus

this training is an important for B.B.A. student.

This industrial training has given us golden opportunity to understand

management function like marketing, finance and HRM. The training is a ground for

experiencing the real asset of management.

This project is the reflection of what we have understood from this training.

This project shows our understanding in training towards valuable management.


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ACKNOWLEDGEMENT

It is fact that behind the success of students there is always a good

teacher to give direction at the right speed. You require a spark and you can travel

all through your destination. While we were preparing a project on skylead group of

companies all the employees of theirs helped me very much.

For this valuable help I would like to thanks Mr. L.C. Roal and a lot of

thanks for giving me a golden opportunity to allow me to make my project in skylead.

I would like to thanks to manager of all departments who have guided us during my

project work. We thanks specially to Savani sir (Trustee), Shilpa mam (incharge

principal), Hardik sir (coordinator), Neha mam (Lecturer & guide), Mahesh sir (Lab

assistant), Matengi mam (Librarian). At last, but not the least I am very thankful to all

other members of skylead group of companies for extending their help to accomplish

my project successfully.

Date: Name: Surajit.A.Goswami

Place: Bhavnagar Signature:


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INDEX

Number Contents Page

number

1. General information 1.

2. Human Resource Management 10.

3. Marketing 27.

4. Finance 37.

5. Bibliography 47.


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INDEX

1. Introduction.

2. History & Development.

3. Basic information.

4. Size of the unit & form of organization.

5. Manufacturing process and product.

6. Organization structure.

7. Time keeping system.

8. Employee services.

9. Contribution of the unit to the industry.


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INTRODUCTION

Since 1985 the skylead group of companies started its journey towards

the path of success slowly gradually their venture got the new standing among the

highly reputed companies. The skylead group of companies consists of skylead

chemicals STD, Skylink chemicals pvt ltd.

Skylead group of companies owes its conception its industries and

dynamic managing director SHRI LOKENDRA SINH .C.ROAL who is supported in

every step by his better half MRS. MAMTADEVI .L.ROAL with her business acumentogether they have made the companies production and placed the group as the

only Indian manufacturer of sulphonated carboxylic acid and their esters with

their strong and effective efforts the company got a consistent success in its

business venture.


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HISTORY AND DEVELOPMENT

Skylead chemicals ltd is one of the progressive companies in

Bhavnagar. The first step into establishing this organization was put in 1981.The

company started at chitra GIDC by name Quality chemicals pvt ltd, and Mr.K.K.

patel, Mr.Yashodar Bhatt and Mr.Kantibhai constituted as the director and the

production were started in 1982.They produced bromine compounds because of

some benefits, site was selected near navagam. The construction was started in

1985 named Skylead chemical pvt ltd.

Production was started in 1982 they produce Br. compound with the

expanding activities it was not possible to carry out the operation in a small GIDC

plot he therefore shifted business activity to NAVAGAM on Bhavnagar-Rajkot

highway and commenced his business as private limited company named as

skylead chemicals std. the company was initially engaged in manufacturing of range

of bromo compounds.

After continuing the production of bromides for almost 8 years the

company decided to diversify into high value speciality chemicals based on

Isophathalic acid. The product range of company represents monopoly items and

skylead is still alone manufacturer of this product in India.


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BASIC INFORMATION

SKYLEAD GROUP OF COMPANIES

Skylead chemicals ltd.

Skylink chemicals pvt ltd.

Ambica tecnochem pvt ltd.

Address: Skylead group of company.

Bhavnagar - Sihor road.

Navagam {kardej},

Po: Vartej,

Pin-364060

Dist: Bhavnagar,

Gujarat, India.

o Phone: 91-278-2540237 / 2540238

o Fax: 91-278-2540699

o E-mail: [email protected].

o Website: www.skyleadgroup.com.

o Activity: It is a chemical company, it produces textile chemicals such

as NA-SIPA.

o Bankers: State bank of India.
mailto:[email protected]://www.skyleadgroup.com/mailto:[email protected]://www.skyleadgroup.com/


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o Est. Year: 1981

o Area: Navagam.


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SIZE OF THE UNIT & FORM

OF ORGANIZATION

The size of unit is determined through the capital investment in the

business. The size of unit can be of three type i.e. small scale, medium scale & large

scale.

The company is said to be to be small scale if its investment is under

1crore to 5 crore, in medium scale it is 5 crore to 10 crore and in large scale it ismore than 10 crore.

Skylead group of companies had made an investment of rupees 8 crore

in its capital. Its working capital is of 4.5 crore and it mostly export it products.

The company possesses almost all the quality of medium scale industry

and therefore Skylead group of companies can be called medium scale industry. Its

production is on large scale because this company has the monopoly in production

of specialty chemicals.

FORM OF ORGANIZATION :

According to companies act 1956, company can be classified into

different ways. It can also be selected according to requirement and scope of the

business. They can be classified as under:

(1) Sole proprietorship.

(2) Partnership firm.

(3) Joint stock company.


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MANUFACTURING PROCESS AND PRODUCT

POLYMER MODIFIER :

Skylead group of companies manufactures 4 main polymer modifier

products which are mention as below:

1) 5-sodiosulpho dim ethyl isophthalate

2) 5-sodiosulphoisophthalic acid (NASIPA)

3) 5-lithiosulphoisophthalic acid (LISIPA)

4) Sodium 3,5 bis (B-hydroxy ethoxy carbony1)

DRUGS INTERMEDIATES :

1) 5-NIPA

2) DM-5NIPA

3) MM-5NIPA

4) 5-AIPA

5) 5-HIPA

6) 3,5-DNBA


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7) 4-AP

8) DBT

9) 3,5-DABA

10) ATIPA

ORGANIZATION STRUCTURE

MR.L.C.ROAL

[CMD]

MRS.M.L.ROAL

[DIRECTOR]

HOD (all departments)

MANAGER

Dy. MANAGER

OFFICER

CLERK/SUPERVISOR/CHEMIST/OPERATOR/WORKER


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TIME KEEPING SYSTEM

In any organization time is most important and valuable element. Different

company adopts different system for the time schedule of the employees.

Skylead group of companies is more concerned about the time keeping

system. Skylead has its own punching machine. The employees get their

attendance. The punching cards are the details the employees number , serial

number ,dates and time, department name etc. every person in the company has

been given a punch card, these cards of employees are punched in the punching

machine when entered and the data is called from the machine by computer. When

they leave the industry, they have to punch the card in the machine. Thus with the

help of punching system, it is helpful to manage to analyze the regularity of

employees by collecting the timing of arrival and departure.

The working time of company is as follows:

1st shift 7 a.m. to 3 p.m.

2nd shift 3 p.m. to 11 p.m.

3rd shift 11 p.m. to 7 a.m.

General shift 9 a.m. to 5.30 pm.


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EMPLOYEE SERVICES

Employees welfare activities are the voluntary effort by the employer to

provide the best employment in their own industries. Treat employees like partners

and they act like partners.

There are 2 types of welfare activities:

[1] Statuary [2] Unstatuary.

STATUARY:

It means a firm provides facilities given by government which are

compulsory to give.

UNSTATUARY:

It means a firm provides facilities given by government which are not

compulsory to give.

The skylead group of companies provides statutory facilities to motivate their

employees.

CANTEEEN FACILITY:


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The company provides good food facilities to their employees. Company

has given contract for the canteen. It provides breakfast, tea, lunch, dinner at a very

cheap price.

TRANSPORT FACILITY:

The company has its own staff bus which is visited to pick and leave the

employees from the places that are most convenient to them. A company has its

own cars to take manager and executive.

UNIFORM:

The company provides uniform to all the workers.

RESIDENT FACILITY:

A company provides the flats for their executives and also provides

house rent allowance.


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CONTRIBUTION OF THE UNIT TO THE INDUSTRY

The success of any company cannot be measure by the figure of profit

but also by contribution of company towards industry and society. Every unit always

makes more or less extent contribution to its whole industry. It made contribution in

national market as well as international market. Firms plays important role in the

industrial development and in the growth of nation as this firm gets quality DCBMS

and NA-SIPA.

It is Asias only company producing specialty chemicals and also

intermediate goods produced and specialty designed manufacture for expert. In

government manuals they give donation as well they contribute in different kinds of

charity funds.

They give industrial training to college students of B.B.A., M.B.A., BE

(production), BE (chemical), B.C.A., PGCBA, PGDCA etc.


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HUMAN RESOURCE MANAGEMENT

1) Introduction.

2) Organization of personnel department.

3) Recruitment, selection & induction.

4) Training & management development.

5) Job description.

6) Promotion and transfer policy.

7) Performance appraisal system.

8) Wage and salary administration.

9) Working of ESI scheme.

10) Grievance handling procedure.

11) Collective bargaining.

12) Trade unions.

13) Personnel records.

14) Study of provident fund scheme.


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INTRODUCTION

According to Decems and Robbins, HRM is concerned with the people

dimension in management. Since every organization is made up of people, acquiring

their services, developing their skills, motivating them to higher levels of

performance and ensuring that they continue to maintain their commitment to the

organization are ensuring that they continue to maintain their commitment to the

organization are essential to achieving organizational objectives. This is true

regardless of the type of organization government, business, education, health,

recreation or social action.

Human resource management is a management function concerned with

hiring, motivating and maintaining people in an organization.

Human resource management is a process which brings people and

organizations together so that the goals of each one are met effectively and

efficiently.

Among the various factors of production which are used in an organization,

human resource is the most important. This is because the efficient use of physical

resources (i.e. land, machinery, materials) ultimately depends on how the human

factor is put to good use on various operations. The most efficient machinery in the

world will not produce at an optimum level unless the people who operate the

machinery know how to make it perform at its best and most importantly, are

motivated to make their equipment produce efficiently.

Human resource helps in transforming the lifeless factors of production into

useful products. Once they get inspired, even ordinary people can deliver

extraordinary results. They are capable of producing an output that is greater than

the sum of inputs. They can also help in achieving organizational results quickly,

effectively and efficiently.


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But for getting the best out of people, they must be managed well. This is

where human resource management plays a critical role in bridging gaps between

employee expectations and organizational needs by adopting appropriate human

resource strategies and practices.

ORGANIZATION OF PERSONNEL

DEPARTMENT

C.E.O.

PERSONNEL

MANAGER

OFFICER/SENIOR

EXECUTIVE

ADMINISTRATIVE

OFFICER

JUNIOR OFFICER

COMPUTER

OPERATOR

CLERK

PEON


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RECRUITMENT, SELECTION, AND INDUCTION

Recruitment, selection and induction are the operating function of the

personnel department which are procuring, developing, maintaining and utilizinglabour, supervision and managerial force.

RECRUITMENT:

Recruitment is the process of finding and attracting for employment.

The process begins when new recruits are sought and when their applications are

submitted. Recruitment leads to greater productivity, high morale and better

reputation of concern. So it is the basis of success that it becomes very important to

search the right people for right place. SGC has two types of recruitment,

1. Internal

2. External.

The company is doing of following three channels.

Advertisement in newspapers

Direct recruitment on the basis of forced application

Through agents.

The company follows an external recruitment process which is as

under,

After deciding the quality and quantity of personal they will giveadvertisement in newspaper with the post. After receiving the biodata the process

start and the selected persons are called for interview by sending those call letters,

after receiving call letters the employee has to pass through interview. An interview

is face to face observation and performance appraisal method of evaluating where

the interviewer is who is higher in a status in a dominant role.


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SELECTION:

Selection as implies, involves picking for hire a subset of workers

from the total set of workers who have applied for the job. Selection is donecomparing the recruitment of a job with applicants qualifications.

In Skylead, an attempt is made to place the right man on the right job

at the right time while selecting a person.

ReceivingApplication:

Application form are widely used everywhere and constitute on of the

fundamental media through which information is gathered about the applicants.

Skylead personal department invites applicants from prospective applicant. This

helps the company to select high qualified person from large prospective applicants.

Comparison:

The next step to selection procedure is to compare the application

form with each other so that some of the standards can be selected from large group

of applicants.

Interview:

The company calls the selected applicants for personal interview.

Skylead has two type of interview i.e. Oral and written. Qualified and experienced

persons have to give only oral interview while new and fresh persons have to give

both the oral and written interview.

Appointment letter:

The personnel department of the Skylead send letter to those

applicants who are selected after scrutinizing interview procedure and qualification.

This helps the company to select the best person for the job.


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INDUCTION:

Induction is a technique by which a new employee is rehabilitant into

his subordings and introduced to the practices, policies and purpose of the

organization when a candidate is selected from the external sources. In other words

it is a welcoming process the idea is to welcome a newcomer make him feel like a

home. Generate in him a felling that is own however it has significance as a part of

the total organization.


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TRAINING AND MANAGEMENT

DEVELOPMENT

Training:

Training is a process of learning a sequence of programmed behavior. It

is application of knowledge. It gives people awareness of the rule and procedures to

guide their behavior. It attempts to improve their performance on the current job or

prepare them for an intended job. Training is a short term process utilizing a

systematic and organized procedure by which non-managerial personnel learn

technical knowledge and skills for a definite purpose.

Skylead group of companies has a excellent training facilities for both

behavior and technical knowledge. Training needs are identified through various

methods. Employees can approach the head of the department and request for

necessary training which is relevant to job requirement. Company has a separate

training room to co-ordinate with HODs in identifying training needs, organizing and

evaluating the same.

Development:

Development is the activity associated with the managerial personal

such as executives. Development is concern with the theoretical knowledge. The

HRD of SGC gives high attention and development of each and every employee for

the following purpose:

- Increasing efficiency, - Reduce supervision,

- Increase productivity, - Reducing in operational problem,

- Increasing morale of employee, - Effective utilization of resources.


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JOB DESCRIPTION

Job description is an important document which is basically descriptive in

nature and contains a state of job analysis. It provides both organizational and

functional information.

Uses of job description:

It can be used to orient new employees.

It helps in developing performance standards.

It can be used for job evaluation.

It can be used as a basis for productive group discussion particularly if the

process starts at the executives level.

It helps top executives especially when they join the discussion with the one

others responsibility.

In Skylead they have make job description which includes following points:

Job identification.

Job summary.

Job duties and responsibilities.

Relation to other jobs.

Supervision.

Working condition.

Hazards.


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PROMOTION AND TRANSFER

POLICY

PROMOTION:

According to Scott and Clothier, a promotion is the transfer of an

employee to a job which pays more money or one that carries some preferred

status. Although promotions are made on basis of ability, hard work, co-operation,

merit, honesty, many informal influences are powerful determinants of a professional

policy.

In Skylead there are two types of method for promotion:

[1] Seniority + Merit: In this method the senior as well as employee who are

working efficiently is promoted.

[2] Past performance: In this method the promotion is made on the basis of past

performance.

TRANSFER POLICY:

A transfer is a horizontal or lateral movement of an employee from

one job, section, department, shift, plant or position to another at the same or

another place where his salary, status and responsibility are the same. It generally

does not involve promotion, demotion or change in job status other than movement

from one job or at another place.

There are two types of transfer policy:

1.Internal transfer: Internal transfer means transfer in the same company in other

department i.e. personnel department to marketing department.

2. External transfer: External transfer means transfer from one company to another

company i.e. Ambica technochem Pvt. Ltd. To Skylink chemical Pvt. Ltd.


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PERFORMANCE APPRAISAL:

Organizational goals can be achieved only when people put in their best

effort. The performance appraisal may be understood as the assessment in a

systematic way. It is a method of evaluating the behavior of the employee in the

work spot normally including both the quantitative and qualitative aspect of job

performance.

According to Flippo, performance appraisal is the systematic, periodic

and impartial rating of an excellence in matter pertaining to his/her job and hispotential for a better job. Thus in performance appraisal an employees merit like

productivity, leadership, managing activity etc. are judged.

CHARACTERISTIC:1.] Performance appraisal is a process consisting of a series of steps.

2.] It is the systematic examination of an employees strengths and weakness in

terms of the job.

3.] Performance appraisal is a scientific or objective study. Formal procedures are

used in this study. The same approach is adopted for all job holders so that the

results are comparable.

4.] It is an ongoing or continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5.] The main purpose of performance appraisal is to secure information necessary

for making objective and correct decisions on employees.

OBJECTIVES:1) To provide feedback to employees so that they come to know where they stand

and can improve their job performance.


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2) To provide a valid database for personnel decision concerning placements, pay,

promotion, transfer, punishment, etc.

3) To diagnose the strengths and weaknesses of individuals so as to identify further

training needs.

4) To develop positive superior-subordinate relations and thereby reduce

grievances.

5) To test the effectiveness of recruitment, selection, placement and induction

programs.

In skylead group of companies the performance appraisal is done according to the

rating method. In this method any employee is rated according to their capabilities

and them he is granted for promotion.


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WAGE AND SALARY ADMINISTRATION:

Wage and salary administration refers to the establishment and

implementation of sound policies and practices of employee compensation. It

includes areas as job evaluation, surveys of wage and salary, analysis or relevant

organization problems, development and maintenance of wage structure,

establishing rules for administrating wages, wage payment incentives, profit sharing

etc.

Wage represent daily rate of pay and salary refers to the monthly rate ofpay, irrespective of the number of hours put in by an employee. Wages and salaries

are subject to annual increments. They differ from employee to employee and

depend upon the nature of job, seniority and merit.

Generally, the overall plan of wages and salary administration is first

prepared by the personnel manager in consultation and discussion with senior

member of other department. It is then submitted for final approval of the top

executive. Once he has given his approval for wage and salary structure and the

rule for administration, its implementation becomes a joint effort of overall

department.

In skylead the responsibility of wage and salary administration is entrusted

to personnel department or to some job executives.


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WORKING OF ESI SCHEME

The full form of ESI scheme is Employee State Insurance scheme. This

scheme is totally for the benefit of the employing underworkmen compensation act1948. Under this scheme, employer and employees have to contribute and the

government is managing the fund.

CONTRIBUTION OF ESI SCHEME:

That employee whose remuneration is less than Rs. 10000 is

converted in ESI scheme. The benefits are being provided to the employees by this

scheme. A medical benefit for providing an amount to be paid to the doctor who

meets the accident is provided to the employee. In case of employees sickness 75%

salary will be provided. If the ailing period is 28 days or less then it then 3 days

salary is deducted.

When an employee recovers from his injury he is checked by the

doctor. The fitness certificate must be registered while joining the duties again. Thus

this facility is provided by SGC to their employees for safety during the working time.

In case of employees death his family member is given

compensation and the pension. After the payment of compensation it must be

recorded to the register.


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EMPLOYEES GREIVANCE HANDLING

PROCEDURE

In skylead industry grievance handling procedure is managed by

personnel department. However tough the problem is the people under it solves their

problem arbitrarily which results in satisfaction of both i.e. organization as well as the

workers. This satisfaction not only brings positive effect in workers but also in

organization. Due to their hard work and better performance the quality and

productivity of product increases which may result into profit of the company. If

problems are too critical to be solved than it is passed to the top level management.

But in general their arises no question of dissatisfaction among the

employer and employees as they live like a family and the problem are solved in

similar fashion in the family.


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COLLECTIVE BARGAINNING

Collective bargaining is probably the most effective method of resolving

industrial disputes. It occurs when representative of labour union meet managementrepresentative to determine employees wages and benefit to create or revise work

rules and resolve disputes or violation of the labour contact. Collective bargaining is

an spotless procedure for grievance handling as well as any kind of industrial clash.

Objectives of collective bargaining:

To provide an opportunity to the workers to voice their problems on issues

related to employment.

To facilitate reaching a solution that is acceptable to all the parties involved.

To resolve all conflicts and disputes in a mutually agreeable manner.

To prevent any conflicts or disputes.

To develop a conducive atmosphere to foster good industrial relations.

To promote industrial democracy.

To provide stabile and peaceful industrial relations in the organization.

To enhance the productivity of the organization by preventing strikes, lock outs,

etc.

To ensure that participation of trade unions in industry.

But in the skylead industry as the trade union are not allowed hence

the collective bargaining is not possible.


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TRADE UNIONS

Trade unions are voluntary organization of worker and employees

formed to promote and protect their through collective action. Trade unions are notconfirmed to mere striking and negotiating on behalf of workers. Their role is much

wide for e.g. they make their present felt in recruitment and selection, decide who to

hire and under what conditions and also they make a decision of wage salary

structure and negotiate revision once in three to five years.

Characteristic of trade unions:

1}Association: A trade union is an association or combination of employees. It hasa large number of worker members from one or more occupations.

2} Voluntary: Membership of a trade union is voluntary. Generally there is no legal

or other pressure to join a trade union and a person can join or leave the union on

his free will.

3} Permanent: A trade union is a continuing or permanent rather than a temporary

or a casual combination. It has to be long- term body as otherwise it cannot achieve

its objectives.

4}Community of interest: Members of a trade union have common interests and

problems, which motivates them to unite. A union seeks to regulate relations

between employers and workers.

5}Collective action: Trade unions always act through united actions of members

to protect and promote their economic and other interests.

In Skylead industry, trade unions are not allowed and it can also be said that people

working there not require tare unions. The person working in it lives a family they are

having the sense of belonginess in their mind. If at all any problem arises then it

solved by the manager or officer of personnel department at primary stage.


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PERSONNEL RECORDS

The skylead company has in total 120 labour forces which are

considered as its greatest strength. These workers have the felling of belongingnessin their mind. The output of their work not contains the characteristic of good quantity

but also of good quality.

The company records the details of each and every worker. To maintain

this record a separate document or file is prepared which contains all the personal

details like the date of recruitment, the personal information i.e. name, address,

family background etc. and the date of joining the industry, his promotion or

demotion, transfer or separation from industry etc.

The work performed by the employee during his job is recorded as well as

absenteeism is also maintained in the file. If the employee has taken loan, advances

or invested in the company than that records is maintained in the file. Even the

performance and the employee in the organization are recorded in it.


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STUDY OF PROVIDENT FUND

The company follows the provident fund schemes as per the act of

1995 starting from 26th

November. Earlier the provident fund and family pensionscheme were two different things but now it has been clubbed together. During 1996

the rating was 8.33% but then after it was raised to 10% and now it has been raised

by 12%, 8.33% of the employees contribution goes to the family pension scheme

and the rest 3.67% to employee contribution goes to the provident fund.

The minimum desirable service required in the private organization is

of 10 years and the minimum age for provident fund required is 50 years.


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INDEX

1} Introduction.

2} Organization of marketing department.

3} Product planning.

4} Marketing segmentation.

5} Pricing policy.

6} Advertising.

7} Various channels of distribution.

8} Sales promotion.

9} Marketing research.


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INTRODUCTION

As per AMA (American marketing association) marketing is a process

of planning and executing the conceptions, promotion and distribution of ideas,goods, and services to create exchange that satisfy individual and organizational

goals.

1. As per social aspect: Marketing is a social process by which individuals and

groups obtain what they need and want to create offerings and freely exchanging

products and services of values with others.

2. As per managerial aspect: Marketing is the art of selling products.

Marketing is the thinking process which starts before production

commences and ends only after sales, services and satisfaction. It is the set of those

activities which are necessary and incidental to being out exchange relationship. It is

the business activities through which human wants are satisfied by the exchange of

goods and services.

Marketing is the process of exchange which includes two different

aspects.

1) Mental 2) Physical

1) Mental:

Mental investment means the seller must know what the buyer want, what

price, when, where, what qualities, what quantities, etc. on the other hand buyer

must know what is for that sale and what price, where, when, where etc.

2) Physical:

Physical investment means the actual movement of goods and services

the actual movement of goods and services from the point of production and point of

consumption.


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In skylead industry though there is no special department of marketing in

spite of it and the above said strategy is taken into consideration and therefore it has

such a remounted name in the varied economy market.

The functions of marketing in skylead group of companies are carried out

by the head of group Mr. L.C. ROAL and senior executive Mr. SINGH.


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ORGANIZATION OF MARKETING

DEPARTMENT

MARKETING

SEVP

DEPUTY MANAGER

OFFICER

ASSISTANT

This chart shows how marketing is done in Skylead group of companies. Here in this

chart as shown marketing head comes first then under him comes SEVP and under

the SEVP comes the deputy manager and then comes the marketing officer and at

last comes the assistant. This chart shows a downward slope.


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PRODUCT PLANNING

There are three types of product planning in skylead group of

companies which are as follows:

1) Product based product planning.

2) Industry based product planning.

3) Contact random planning.

1) Product based product planning:

In this type of product planning the company produces according to

the products demanded in the market. If the demand is high then product of the

company would also be high.

The skylead group of companies follows the industry product, which

are used as raw material for finished goods in other industries.

2)Industry based product planning:

In this type of product planning industry produces as per the

requirements by another industry and according to their orders. The industry

produces their output.

3) Contact random planning:

Skylead group of companies also has contact random planning.

Here the costumers order and according to that order they produce. The company

delivers goods after certain period of time and satisfies the requirements of the

customers.


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MARKET SEGMENTATION

Marketing segmentation may be defined as subdivision of the target

market into subgroup of consumer population with identifiable distinct and

homogenous characterizations, with a view to developing and perusing distinct and

differentiated marketing programs for each subgroup in order to enhance consumer

satisfaction and the profit position of the business. It is an act of dividing of the

market into distinct group of buyers who might have required separate and

marketing mix.

Types of market segmentation:

1) Geographic segmentation: It calls for dividing the market into different

geographical units such as nations, state, regions, countries, cities or

neighborhood.

2) Demographic segmentation: Here the market is divided into groups on

the bases of variables such as age, family size, family life cycle, gender, income,

occupation, education, religion, generation, nationality and social class.

3) Psychographic segmentation: Psychographic is the science of using

psychology and demographic to better understand the consumers. Here the

buyers are divided into different groups on the bases of psychological or

personality traits or characteristic.

4) Behavioral segmentation: Here the buyers are divided into groups on

the bases of knowledge, attitude, use or response to a product.

R.S. Javer had defined that looking of buyer or segment the market

is described its market segment. In skylead group of companies the segmentation,

the whole market on the geographic area business through market segmentation

each state demand is given personal attention.


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PRICING POLICY

Pricing policy is one of the most crucial and decision Wang part of

marketing management. Sales are affected by the price. A slight variation in price

can lead a big difference in sales as well as on profit. So a company has to fix the

price very systematically and giving due consideration to many factors.

Skylead group of companies has adopted the cost oriented price policy.

The price under this method determines by adding a desired percentage of profit on

cost of the product.

Price of product = Fixed cost + Variable cost + Profit.

Skylead group of companies consider the following factors while fixing the

price of any product:

o Cost of raw material.

o Manpower.

o M/s expenses.

o Taxes.

o Government policy.

o Profit margin.


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ADVERTISING

Advertising is one of the four major tools for the company as to direct

successive communication to target buyer and public.

Advertising means to attract the customer to purchase their product and

make their product popular in the market. Advertisement effect the behavior of

consumer in great extent. Advertising is nothing but a paid form of non personnel

presentation of promotion of ideas, goods or services. It communicates about the

product and services and also about the firm which produce the product.

Modes of advertising:

Now-a-days there are many media available for advertising they are as

follows:

1. Television.

2. Newspaper.

3. Radio.

4. Posters.

5. Hording.

.

Due to specific characteristic of the product that it is not directly

consumable product, the company has no large budget for advertising as they do

not need to advertise, skylead group of companies are not needed for advertising

but sometimes in some specific chemical maximize or some special import- export

magazine, they do advertise. The other source of advertising is the chemical fairs in

which they participate very actively.


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CHANNEL OF DISTRIBUTION

The channel of distribution are the means through which the product move

from the purchased or manufacturer to ultimate consumer is an internal part ofmarketing and its function is to distribute spread out as disseminate.

According to prof. Philip kotler, marketing or trade channels are a set of

independent organization involved in the process of marketing, product or services

available for use or consumption.

Marketing channel for customer:

Manufacturer to Customer.

Manufacturer to Retailer to Customer.

Manufacturer to Wholesaler to Retailer to Customer.

Manufacturer to Wholesaler to Jobber to Retailer to Customer.

Business marketing channel:

Manufacturer to Industrial customer.

Manufacturer to Industrial distributor to Industrial customer.

Manufacturer to Manufacturer factor representative of sales branch to Industrial

customer.

Manufacturer to Manufacturer Repetitive of sales branch industrial distributor to

Industrial customer.

Skylead has a direct contact with their customer in the domestic market

and in international market they appoint territory agents to contact with their

customers.


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SALES PROMOTION

Philip kotler defines as, promotion encompasses all the tools in the

marketing mix whose major role is pervasive communication.

Sales promotion activity is vital ingredient of the promotion mix. It is a

sales effort undertaken by business to boost sales level of product. It is a selling and

advertising which backup the pre-selling and stimulates the impulse. Sales

promotion of diverse connection of incentive tools mostly short term design to

stimulate quicker, great purchase of particular product or service by customer or

trade.

Promotion activities have specific purpose which is as under:

1) To attract new customers.

2) To know customers about the introduction of new policy.

3) To encourage present customers to buy more.

In SGC the marketing executive Mr. Vala said in recent year sales

promotion is fastest growing method of promotion for firm for increasing the sales.


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MARKET ING RESEARCH

Marketing research is most essential tool for development of any industry.

It is the systematic gathering and analysis of data about problem connected with the

industry. Marketing research is the systematic design, collection analysis and

reporting of data relevant to specific marketing situation facing an organization.

As we know that there are many methods of marketing research. They are as under:

1. Survey method.

2. Field method.

3. Mail survey.

4. Panel research.

5. Observation approach.

SGC has no marketing research because they have monopoly product.

They have producer to consumer distribution channel. They themselves are price

market and their distributors for their product. But incase of any complain regarding

finished goods from the buyers and then the sales executives meet them and solve

problem. If there is any change in the quality then executive try to solve the problem

through quality control department.


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FINANCIAL

MARKETING


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INDEX

1.] Introduction.

2.] Capital budgeting.

3.] Capital structure.

4.] Working capital, its sources and management.

5.] Management of cash and receivables.

6.] Inventory management techniques.

7.] Ratio analysis.

8.] Leverage.

9.] Capitalization.


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INTRODUCTION

Finance is regarded as the life blood of business. Finance is one of the

basic foundations of all kind of economic activities. It has rightly been said thatbusiness need money to make more money. It is also true that money budgets make

more money only when it is properly managed effective and efficient utilization of

finance. It has been also considered as an important function of financial

management as a result of it. The scope of financial management is wider now.

Any company needs financial facility to meet day to day commitment.

Money is very important for each and every organization, without finance no one can

start the business. It is only one accepted factor by which exchange of goods and

services is possible.

FINANCE:

Finance means provision of fund. Finance is working as the heart of

the business. Finance regards as the heart of business. Finance is one of the basic

foundations of all kind of economic activities.

MANAGEMENT:

Management is the art of getting work done through others.

Management is multipurpose organization manage to business; manage to

manager, mange to work and workers.

FINANCIAL MANAGER:

Every organization has a financial manager to manage the finance

in the business. He manages the finance and wherever it is needed.

FINANCIAL MANAGEMENT:

Financial management means procurement of funds and effective

utilization and to achievement of business target and goal. The decision regarding

financial must be properly taken by an organization.


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It is said that business takes money to make money. The goal of

financial management is to increase the firms overall market value and its long term

wealth.

Henry ford remarked Money is an arm or leg, you either use it. The

remark explains the significance of money or cash. Thus, the financial management

is the most important tank for every manager.


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CAPITAL BUDGETING

Capital budgeting means planning for capital. It also means marketing

the capital investment decision. It is concerned with long term project. It evaluatesthe profitability of project which gives more profit. Capital budgeting helps selection

of best proposal.

Capital try to see whether investment proposal which gives reasonable

return to investors. Capital budgeting also involve ranking of different proposal for

selecting the best project.

Capital budgeting may be used for replacement of assets, expansion of

programmes, diversification, and modernization or for research and development.

Skylead group of companies is budgeting every month because the

turnover of skylead is more.


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CAPITAL STRUCTURE

Capital structure refers to the composition of capital, i.e. the mix of sources

from which the long term funds required by business are to be or raised. In broadersense capital structure included various types of shares issued debenture reserves

loan and retained earnings.

Goals/principle of capital structure management:

Cost principle:

According to this principle, ideal capital structure should minimize cost of

financing and maximize earnings per share.

Risk principle:

According to this principle, ideal capital structure should not accept unduly

high risk.

Objectives of capital structure planning:

To issue security which are transferable?

To maximize the profit of the owner of the company.

In Skylead Company the capital structure is done in the systematic manner as it is

one of the important aspects of finance. The factors affecting, it is taken into

consideration and then the capital structure of the company is made.

Features of an appropriate capital structure:

1) Profitability.

2) Flexibility.

3) Conservation.

4) Solvency.

5) Control.


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MANAGEMENT OF WORKING CAPITAL

The working capital management is as the name itself implies capital

required to carry on the routine work. Short term requirement of capital is known asworking capital.

These are two concepts of working capital:

1) Gross working capital.

2) Net working capital.

1) GROSS WORKING CAPITAL:

Gross capital refers to the firms investment in total current assets.

2) NET WORKING CAPITAL:

It means the difference between current assets and current

liabilities of the portion of current assets, which is financed with long term funds.

But skylead, it means the current assets which can be converted incash in short time. The working capital of skylead is associated with SBI Chitra

branch and the working capital is 5.5 crores and some cash balance is there, which

is maintained by cashier. Every two year projection of credit monitoring assessment

is undertaken at SBI branch from 1988.

The account starts when any purchase process or sale process is over

because after that the entry should be made. It is historical function for any

transaction. First voucher is made in journal or ledger. The company exporting and

importing goods it needs foreign exchange. This need is satisfied by SBI.


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MANAGEMENT OF CASH AND RECEIVABLES

Cash is the most liquid form of asset. It is crucial asset in day-to-day

business operation. It is basic required to run the business at the same time it is also

the basic output expected to be realized by selling the product or service of a

business. A firm has to maintain a balance between very high working capital and

very low working capital. The main characteristic of this asset that this can be readily

sold and converted into cash. They are important to meet plan and outflow of funds.

Cash management is concerned with managing of

Inside and outside of the firm.

Cash flow within firm.

Cash balance held by firm at a point of time by financing deficit or investing

surplus.

The company has to maintain optimum cash balance which will neither

be excess or short.

Skylead group of companies maintain the sufficient cash balance to the

daily requirements. They have increased their capacity through proper collection of

cash and proper disbursement.


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INVENTORY MANAGEMENT TECHNIQUE

Inventory to as stock of raw material which business firm has to maintain

with them to meet unexpected circumstances. The management has to decide the

quantum of the ideal size of stock that they should maintain. If stock is higher the

capital will be blocked and if it less it may result in a loss. Therefore inventory

management is an important aspect of financial management.

Inventory management assumes important because of that investments in

inventory constitute one of major investment in current asset. The various forms in

which a manufacturing concern may carry inventory are a raw material work in

process, finished goods and stores and supplies.

Skylead group of companies maintains the necessary amount of inventory

which is necessary. In order to earn maximum profit i.e. it maintains optimum stock

of raw material and for these they have their own separate store department.


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RATIO ANALYSIS

Simple meaning of ratio means relation in between two matters presenting

in a percentage manner known as a ratio. For the justification of financial position

following various types of ratio can be applied:

1) Gross profit ratio = Gross profit/sales*100.

2) Net profit ratio = Net profit/ sales*100.

3) Operating ratio = C.O.G.S. + operating expense/ sales*100.

4) Expense ratio = Expense/ sales*100.

5) Stock turnover ratio = C.O.G.S./Average stock.

6) Current ratio = Current asset/Current liability.

7) Liquid ratio = Liquid asset/ Liquid liability.

The respective company has not enclosed their financial records so we

are unable to give their ratios.


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LEVERAGE

There are various sources of long term capital and a finance manager has

to decide the combination of available resources either there may be equity share

and debenture or equity or preference share or all the three sources that is known as

capital structure decision.

Capital structure decision has great influence on share holders written

entries. If the company is using more borrowed capital then share holders risk and

return both increases. Leverage is used to understand this relationship.

James Horne has defined leverage as the employment of an asset or

funds for which the firm pays the fixed asset and fixed return.


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CAPITALIZATION

According to Gesternberg, capitalization comprises ownership capital

and surplus in whatever firm it may appear, and borrowed capital which consists ofbonds or similar evidences of long-term debts.

The capitalization is divided into three parts. They are as follows:

Over capitalization.

Under capitalization.

Fair capitalization.

OVER CAPITALIZATION:

When a company has consistently been unable to earn the prevailing

rate of return on its outstanding securities, it is said to be over capitalized. For

example, if a company earns a profit of Rs.50000 and normal rate of earnings in

similar industry is 20%, the capitalization on value earning would be (20*50000/100)

Rs.250000. But if the company has issued shares and debentures of more thanRs.250000, it would be an index of over capitalization.

UNDER CAPITALIZATION:

When a corporation earns exceedingly high income on its capital, it is

said to under capitalization.

FAIR CAPITALIZATION:

It opposite of other two as it is neither over capitalization nor under

capitalization in this the true picture of the company can be seen i.e. in this the

assets are shown at their actual price prevailing in the market.

The company which has fair capitalization can know about their real position in the

market by the company itself with other.


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Skylead group of companies follows the fair capitalization. Their

accounts show the real picture of their assets which is very good sign for the

success of any company.

BIBLIOGRAPHY

Philip kotler, Kevin Lane Keller, Abraham Koshy, Mithilesher Jha, Marketing

Management 12th edition, Person Education 2007.

C.B. Gupta, Human Resource Management 8th edition, Sultan Chand & sons

2007.

S.P. Shah, Jayshree Thakore, R.K. Balyan, Human Resource Management &

Industrial Relation 2nd edition, Mahajan Publishing House 2003-04.

Final Project {Surajit}

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