Forge & Forg Project Report-Prince Dudhatra

8/2/2019 Forge & Forg Project Report-Prince Dudhatra

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AN INDUSTRIAL VISIT

ON

PREFACE

1

Prepared By : Mr. Dabhi DharmendraR.

Class : S.Y.B.B.A.

Year : 2007-2008

Roll No. :

College : Shree H. N. ShuklaCollege

Guided By : Ms. Dina Kanani

Submitted To : Saurashtra University


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Action is the language of commitment it speaks louder than

words

Learning by Doing is the hidden condition of the

management course. The theoretical knowledge of the class room

discussion has its own limitations

According to syllabus of Saurashtra University it is

compulsory for every student of S.Y.B.B.A. to prepare report of

manufacturing industry.

Practical training is very important constitute in the field of

education. According to need education policy adopted practical training

has been introduced for the student.

In S.Y.B.B.A., students have to visit a particular industry. I

have also visited Forge & Forge Pvt. Ltd. which got ISO certificate.

ACKNOWLEDGEMENT

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I take this opportunity to experience my deep sense of gratitude

and regarded towards those who have directly and indirectly helped me

in my practical study of industrial training.

I specially thanks to Ms. Dina Kanani who gave me all

information about how to prepare industrial training report and all the

necessary information which are required.

I am also very much thankful to Mr. Sudhir Mehta accountant

of the firm for sharing his wonderful experience and guidelines during

the visit of the company.

I am also very thankful to managing director Mr. N. M. Patel.

DECLARATION

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I, the undersigned Dabhi Dharmendra R. from S.Y.B.B.A. here

by declare that the project work presented in this report is my own work

and has been carried out under the supervision of Ms. Dina Kanani, H.

N. Shukla College.

DATE : [Signature]

PLACE :

GENERAL INDEX

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SR. NO. TITLE PAGENO.

1. GENERAL INFORMATION 6

2. PRODUCTION DEPARTMENT 17

3. PERSONNEL DEPARTMENT 33

4. MARKETING DEPARTMENT 48

5. FINANCE DEPARTMENT 59

6. SUGGESTION 71

7. FUTURE PLAN 73

8. SWOT ANALYSIS 75

9. CONCLUSION 77

10. BIBLIOGRAPHY 79

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Index

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SR.NO.

TITLE PAGENO.

1. PROJECT REPORT AT GLANCE 8

2. HISTORY & DEVELOPMENT 11

3. LOCATION & CHART 12

4. BANKERS 14

5. SIZE & FORM OF THE ORGANIZATION 15

6. GENERAL ORGANIZATION

STRUCTURE

16

1. PROJECT REPORT AT A GLANCE:

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Name of the Company:

Forge & Forge Pvt. Ltd.

History of the Unit:

The promoter of the unit is Shri Valjibhai Jagjivanbhai Patel.

The unit was started on a very small base in the beginning. Its

manufacturing activity started in August, 1976, at that time it was a sole-

proprietor firm.

At time passed its turnover and production capacity increased

and so the unit was converted into private limited company.

Year and Date of Establishment:

1st June, 1974

Year of Registration:

1974, under companys act 1956

Promoters:

Shri Valjibhai Patel

Size of the Unit:

Large Scale Unit

Total area Covered:

Around 8 crores

Bankers:

1. Corporation Bank

2. HDFC Bank

Accounting Year:

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April to March

Turnover:

Rs. 38, 34, 98,000 (inclusive of all other income)

Auditors:

Sanghavi & Co.

Existing Managing Group:

1. Mr. N. M. Patel: M.D.

2. Mr. Sudhirbhai : Accountant

3. Mr. Jitubhai : Personnel Officer 4. Mr. Prarinbhai : Sales Officer

5. Mr. Vajpaee : Sales Officer

6. Mr. Jai Shankar : Purchase & Store Officer

7. Mr. Mansukhbhai : Dispatch Officer

8. Mr. Parmalbhai : Die-shop Supervisor

9. Mr. Berabhai : Cutting-shop Supervisor

10. Mr. Sultanbhai : Forge shop Production in-charge11. Mr. Jansanbhai : Design Officer

Product made:

The product made by Forge and Forge are die-steel and

allude steel job such as:

1. Lister crank shaft

2. Small crank shaft

3. Connecting road

4. Railway spare part

5. Automobile spare part

6. Flange

Special Achievement:

It has received two ISO: 9002 certificate in year 2001.

Factory Address:

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M/s. Forge & Forge Pvt. Ltd.,

Ahmedabad road,

Rajkot 360003

Telephone No. : 2456101

Fax no. : 2456101

Total Capital Investment:

Rs. 9, 51, 86,000=00

2. HISTORY & DEVELOPMENT:

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Gujarat state is considered as an industrial developed state,

from very beginning of the state. i.e. from 1st may 1961 Gujarat state is

generally having its own reputation as a peaceful progressive state.

The promoter of this unit is Shri. Valjibhai Jagjivanbhai Patel,

the unit was started on a very small base in the beginning. It is

manufacturing activity started in august, 1976. At the time it was sole

proprietor firm.

At time passed its turnover and production capacity increased

and so the unit was converted into private limited company.

3. LOCATION & CHART:

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The ideal location is that which permits the lowest cost in

production process and distribution of a product or service.

If the location of the business in unsuitable the concern cannot

be economically and profitably, even though the entrepreneur has

enough capital and managerial skill. There are number of instance of the

business units that failed due to wrong location has a great depend upon

the survival and prosperity of business unit. It must be remembered that

the business may be running successfully at a particular location but

circumstances may be change and location may also have to be shifted.

Plant location:

Plant location is one of the important factors. The plant of

Forge & Forge Pvt. Ltd. is located on Ahmedabad Road.

Main reasons for establishment of plant location are:

- At the time of establishment this place was out of city.

- Easy availability of labor.

- Easy transportation facility.

- At the promoter belong to the Rajkot he wants to locate the

plant near city only.

After deciding above factor he locates the plant at that popular

place.

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PLANT LOCATAION CHART

GARDEN GARDEN

RAJKOT N. H. 8B AHMEDABAD

1. Administration 2. Time Office 3.Stores 4.Heat Department

5.R.M. Stock Yard 6. Forging Stock Yard 7.Die Shop 8.Forge

Shop

13

3

WASTE &

SCRAP

YARD

1LAB

2

Q. C.

7 4

8

5

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4. BANKERS:

a. Corporation Bank:

Dhebar Road, (RAJKOT)

b. HDFC Bank:

New Gymkhana (RAJKOT)

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5. SIZE & FORM OF THEORGANIZATION:

In every country government adopts a different policy

for measuring the size of the unit. In the new policy government adopted

investment measuring policy on the basis of investment the company or

the industry can be divided in three types:

1. Small Scale Industry

2. Medium Scale Industry

3. Large Scale Industry

The industry whose investment is more than 5 crores as per

government rules come under large scale industry. Forge & Forge Pvt.Ltd.is having total capital investment of Rs. 9, 51, 86,000, so thats

why it is large scale industry.

Again, the industry can be divided into three types according to

the nature of the business:

1. Sole proprietorship

2. Partnership firm

3. Public limited company

The Forge & Forge Pvt. Ltd. is private company.

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6. GENERAL ORGANIZATIONSTRUCTURE:

Organization is a group of people working together co-

operative under authority that mutually benefits the organization it may

also be said as grouping the activities to be performed.

Chart of Structure

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INDEX

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SR.NO.

TITLE PAGENO.

1. INTRODUCTION 19

2. MEANING & DEFINITION 203. PRODUCTION CONTROL 21

4. ORGANIZATION CHART 22

5. RAW-MATERIAL 23

6. MACHINE & MATERIALHANDLING EQUIPMENTS

24

7. PRODUCT MADE 25

8.PRODUCTION PROCESS

299. WASTE & STOREMANAGEMENT

31

10. QUALITY & POLUTIONCONTROL

32

1. INTRODUCTION:

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It is said that production management is the heart of every

business and we are all operations managers.

Buffers says: productive systems are mans unique invention

they are means by which we create the candles list of good and services,

that are needed to modern society.

2. MEANING & DEFINITION:

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Production means creativity of utilizes and it covers all the

activity of resources such as labor, energy, materials, equipments,

machinery, etc...

Production management is the planning, acquisition use and

the control of the provision use of goods and services. It refers to

application management of production functions in a factory. In fact

production management is a whole term it involves planning, organizing,

directing and controlling the manufacturing and its ancillary activity to

produce useful goods and services in order to satisfy customers wants

and to generate profits for the firm.

Definition:

In the words of Babby Shore, it is management of anyoperational system which transforms inputs into output.

3. PRODUCTION CONTROL:

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Production control involves implementing the production plans

in accordance with the planned schedules by co-ordination different

activities. It seeks to ensure that production operations. It directs and

cheeks the courses and program of the production work. It is preliminary

concerned with the flow of materials, running of machines, smoothfunction of manufacturing system and checking the deviations from

production plans. It ensures that actual performance of production

activities occurs in accordance with the products schedules routing and

programs.

Definition:

According to E.F.L.Beech, production control is specific

application of control functions and it is concerned with recording from

programs and variation of standards.

The Forge & Forge Pvt. Ltd. is keep production control by

material machinary, labour and checking production process is running

as production planning.

4. ORGANIZATION CHART:

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Organization means a group of people whom working in

company and also benefits to organization.

As Forge & Forge Pvt. Ltd. company is concerned there is

an excellent organization structure where authority and responsibility

flow from upward to downward and complaint going from downward to

upward.

5. RAW-MATERIAL:

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Managing Director

Semi-skilled Person

Production Director

Unskilled Person

Supervisor [Highly-Skilled Person]


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The most important resource of any industry is raw material. It

is the basic need for production. Thus, availability of raw material in

proper quantity required and at proper time is an important factor.

Steel is the main raw material used by forge & forge Ltd. Steel

is used in its various from for the production. Following are the raw

material of forge & forge Ltd.

The raw-material used for production process:

- Steel Billet

- High Carbon Billet

- EN-9

- MS 20mm

- CRS

The raw-material is brought from Mumbai, Vishakhapatnam

and Ahmedabad. Quality of raw-material is of different grade and as per

customer requirements.

6. MACHINE & MATERIAL HANDELINGEQUIPMENT

Machine:

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Machine is one of the important tools/assets of any unit.

Without then production process would be too slow. These machines are

to be handled with care and are to be maintained forge & forge Ltd

maintains their machines used as follows

Drop Hammer

- Foreign Press

- Various type of Furnace

- Compressor

- Generator

- Machines for manufacture dies

- Hack of Machines

- Benison of Machine

- Steering Machine

Material Handling Equipments:

Machines used for transfer materials are:

- Cart

- Folk Lift

- Trucks

7. PRODUCTS :

The products is a bundles of all kinds of satisfaction of both

material and non-material kinds ranging from economic utilizes to

satisfaction of a social psychological natives.

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The product made by Forge & Forge Pvt. Ltd. is die-steel

foreign and alloyed steel jobs such as,

- Lister crank shaft

- Small crank shaft

- Connecting road

- Railway spare parts

- Automobile and spare parts

- Flange

The product made by Forge & Forge Pvt. Ltd. is used in oil

engine and automobiles sector etc.

PRODUCTS

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8. PRODUCTION PROCESS:

First of all the raw-material of product is brought from outside

it is taken to raw-material stores.

1. CUTTING:

In this stage all the billets are cut in the right weight according

to requirements for manufacturing of listed crank shaft. The EN-9

billets weight about 13.6kg.

2. WEIGHTING:

After cutting the process is weighted in the stage. The weight isaccording to requirements.

3. HEATING:

In this stage all the small process of billets is dropped into

furnace and heat is given to them about 1100C to 1200C.

4. FORGING:

After heating the pieces is taken to this stage here the shape isgiven to those pieces puling them. This forging machine is of 10 tons.

This knows n as filter hammer.

After this process the produce is taken to press machine where

the wastage is separated from the product and product becomes finished

goods.

5. INSPECTION:

In this stage inspection is done into categories accepted good

the goods ready to dispatch and rejected goods are sold out lower price.

In these stage three types of inspection is done:

I. Heat inspection

II. Final inspection

III. Laboratory inspection

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6. SPOT BRUSHING:

This process is done only to give shining to the product. This

process is done in alloyed steel only.

Furnace - Hammer - Press - Ready for inspection by Q.C.Dept.

EXTRA OPERATIONS:

- Heat Treatment

- Normalizing- Shot Blasting

As per the customers demands.

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OK

REWORK

REJECTION


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9. WASTE & STORE MANAGEMENT:

WASTE MANAGEMENT:

During the production process the material comes out after the

prying process is collected and sold in the market scrap. The waste

material is separated from the product with the help of press machine.

Forge & Forge Pvt. Ltd. is done waste management by that

waste material is saprated from the product with help of press machine.

STORES MANAGEMENT:

Store management is one of the important factor of productiondepartment. After producing finished goods there must be some storage

policy. Forge & Forge Pvt. Ltd. uses FIFO method to store products.

10.QUALITY & POLUTION CONTROL:

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QUALITY CONTROL:

Quality control means control quality during the manufacturing

process. It is the mechanism to ensure quality standard as per

requirements.

In Forge & Forge Pvt. Ltd. is done quality controled by

following ways:

1. Physical and chemical examination in the laboratories.

2. Sample checked for dimensional ascendancy and metallurgy

soundness

3. Hot parings checked for paying defects at frequent inerrable.

4. Correct hardness testing

5. Critical components, minutely examined on crack detectionmachine.

POLUTION CONTROL:

Polution control is important factors to the company because

polution free location is create clean place and workers morality to the

organization.

The Forge & Forge Pvt. Ltd. is having wide space in the

firm of garden and trees in provided the area it control the noise and air-

pollution.

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INDEX

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SR.NO.

TITLE PAGENO.

1. INTRODUCTION 35

2. MEANING &DEFINITION 363. ORGANIZATION CHART 37

4. TIME KEEPING SYSTEM 38

5. RECRUITMENT & SELECTION 39

6. TRAINING & DEVELOPMENT 41

7. WAGES & SALARY 42

8.EMPLOYEES BENEFITS

439. EMPLOYEES 44

10. PROMOTIONS & TRANSFERPOLICY

45

11. PROVIDENT SCHEME & ESISCHEME

46

12. TRADE UNIONS & MERITRATINGS

47

1. INTRODUCTION:

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Personnel management is one of our most complex and

challenging field of endurance it meets the firms requirements for an

effective work force. It is concerned with the expectations of both

employees and society in general preparing to work with human rather

than objects is important in industry.

Dale Yolder says: Managing people is the heart and essence of being a

manager

Fredrik Kapple says: People are our most important resources and

every people have to be his own personal man.

There is an often quoted phase, Management is people. It

indicates the fact that personnel are the responsibility of online

organization.

2. MEANING & DEFINITION:

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MEANING:

Personnel management includes activities for procuring on the

effective use of human resources on an organization. It concerned with

the development with the highly indicated smoothly functioning work

forces. It is planning, acquiring, developing, utilization and maintaining

human resources in the achievements of the organizational goals.

DEFINITION:

In the words of Dale Yarder, manpower management

effectively describes the process of planning and directing the

application development and utilization of human resources inemployment.

3. ORGANIZATION CHART:

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Personnel management is a staff functions and personnel

department offers advice and services to all line executives on personnel

matters. The personnel manager has the ultimate responsibility for all

personnel and labor policies. A staff and is expected to guide advise,

provide policies. A staff unit is expected to give advise provide services.Maintain control and perform administration tasks.

4. TIME KEEPING SYSTEM:

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Time keeping system is important to regular working time

keeping running good that as create more productivity.

The General office time is from 09:00 to 05:30.

Recess time is 01:00 to 01:30

For workers shifts are as follows:

TIME RECESS WORKING

HOUR

08:00 A.M. to 12:00 to 12:30 8

04:30 P.M.

04:30 P.M. to 09:30 to 10:00 712:00 A.M.

12:00 A.M. to 04:30 to 05:00 7:30

08:00 A.M.

There is a card system. The cards contain arrival time,

departure time, etc... Whenever worker comes into the unit for duty he

has sign the card and write the time. Any employee coming late or

leaving the unit before time for official or personnel reasons to us to

make appropriate notes on the register maintained separately from theregister a date sheet is prepared and sent to the accounting department

for salary of the employees coming later is deducted.

5. RECRUITMENT & SELECTION:

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RECRUITMENT:

Recruitment is the most important work of the personnel.

Department for achieving the organization goal and optimizing various

resources require the right.

The three Aim:

- Material

- Machine

- Money

Recruitment is discovering of potential applicants or candidatefor actual or anticipated organization vacancy.

Recruitment aims that meeting the job recruitment and job

specifications it bring the job taken and job given face to face another.

FORGE & FORGE PVT. LTD. has more number of

unskilled labors. The requirement of skilled labors is limited to the

extent of operating machines. The demand for unskilled workers can be

the rural areas. Situated near the production unit, this also helps the poor

people in getting employment.

The company when needs skilled employees, it gives

advertisement in local newspapers and chooses the most suitable person.

SELECTION:

Selection means a process by which the qualified personnel canbe chosen from the application who has offered their services to the

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organization. In Forge & Forge Pvt. Ltd. there is no formal selection

procedure but people who are known and people references are selected.

The procedure can be distributed as:

I. INTERVIEW:

An interview is taken in which job related knowledge, general

knowledge, experience, etc the candidate are checked, if the person is

found suitable for the job, he is appointed.

II. CHECKING OF REFERENCES:

This provides the experience of other about the applicant and

also information about certain qualities which accurate measurement by

other mean references may be made to reputation of or honesty of theapplicant.

III. SUPERVISORS CONSTANT:

As the immediate boss in not associated with the interview

committee. The candidate required to be informal about the boss and

secure his approval, but in this firm procedure is not needed because

labor turnover is almost nil.

6. TRAINING & DEVELOPMENT:

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TRAINING:

Training is more important because without training workers

does not work properly. He dont know production process and

machinary so training is important.

As for as there Forge & Forge Pvt. Ltd. is concerned there

is no formal procedure for training but untrained and new labors as

employees work under the supervision of the trained labor and employee

on this get perfection and their job.

DEVELOPMENT:

Development is the related process which covers not only this

activity which improve job performance but also those which bringabout growth of personality, helps individual in toward actualization of

their progress. Potential capacity so that they can not become only good

employee but also a batter man and women.

Forge & Forge Pvt. Ltd. also improves workers job

performance and also improves standard of living and developed

personality.

7. WAGES & SALARY:

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The basic purpose of wages and salary administration is to

maintain equitable wage and salary structure. The employee is working

to get momentary returns, so it should be fair enough.

In Forge & Forge Pvt. Ltd. labors are paid the time wage.

i.e. the wages based on amount of time spent in the organization are paid

monthly wages.

The labors are paid wages as the minimum wages.

The salary is paid to the employee within 1st seven days of the

month.

Firm follows the minimum wages living wages and wages

policy.

Its management is satisfied by the employees than increment isgiven for certain period.

8. EMPLOYEES BENEFITS:

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Organization provides a wealth of service that employees find

desirable services are usually provided by the organization, at no or

marginal cost to the employees.

Forge & Forge Pvt. Ltd. provides a number of such

benefits which has helped the employee to be satisfied with their job as

well as the management has motivated them to perform their best ability.

Forge & Forge Pvt. Ltd. gives the following benefits to the

employees:

1. Providing bonus to the workers during the festivals

2. Having staff welfare programs like providing food to

employees and employees.

3. They also have certain facility which provide food services atsubsidized rates

4. They also provide earn leave and casual leave

5. Workers are provided safety aids like show for working in fore

shop spectacles, helmet, etc

6. They are provided medical facilities reimbursement of medical

expenses incurred and including hospitalization charge for employee and

their family.

9. EMPLOYEES:

NUMBER OF EMPLOYEES: 221

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TYPES OF LABOR INVOLVED:

1. Highly skilled labor

2. Skilled labor

3. Unskilled labor

EMPLOYEES TURNOVER:

As the firm is concerned the labor turnover is almost nil. This

shows that organization of the company is healthy and satisfaction

company since the very existence of the company. These workers and its

labors face neither by its employee nor problems.

EMPLOYEES RECORD:

They are maintaining the fair record of their workers.

10.PROMOTIONS & TRANSFER POLICY:

PROMOTION POLICY:

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Promotion policy is motivated process by which employees are

worked properly and best perform to achived promotion places.

Forge & Forge Pvt. Ltd., promotion is given to an

employees basis of his knowledge, ability and performance. Here

promotion has no connection with seniority, ability and performance is

given higher consideration in this company.

TRANSFER POLICY:

Forge & Forge Pvt. Ltd. does not have any transfer policy

internally or externally.

11.PROVIDENT SCHEME & ESI

SCHEME:

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PROVIDENT FUND:

Forge & Forge Pvt. Ltd. provides this provident fund

benefits as per provident fund scheme, under this scheme person

retirement till the services and to his window. There after till he survives.

In case of premature death to person is paid to his window during his

lifetime.

E.S.I. SCHEME:

Forge & Forge Pvt. Ltd. provides ESI scheme to its

employees not earning the salary more than Rs. 6500 there the employee

contribution is dedicated from their earning safety.

12.TRADE UNIONS & MERIT RATINGS:

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There is no such trade union which shows that the company

has not faced any labor problems and Forge & Forge Pvt. Ltd. taken

keen interest in the retirement of employee.

- Strike if any

- It should be noted that there is not a single day strike or lock in

the history of the unit.

MERIT RATINGS:

They verify the person to do practical job and gives merit

accordingly.

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INDEX

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SR. NO. TITLE PAGENO.

1. MARKET & MARKETING 50

2. MARKETING MANAGEMENT 51

3. ORGANIZATION STRUCTURE 52

4. PRODUCT MADE 53

5. PRICING POLICY 54

6. PROMOTION MIX 55

7. DISTRIBUTION CHANNEL &

MARKET RESEARCH

56

8. COMPETITIONS 57

9. REGULAR & CREAM CUSTOMERS 58

1. MARKET & MARKETING:

The term marketing comes from the words mark which are agroup of a sellers or buyers. Who are willing to exchange goods and

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considered with the direction of proposal activities towards the

attainment of marketing goals.

DEFINITION:

According to American Marketing Association, Marketing

Management is the process of planning and executing the conception,

pricing, promotions and distribution of ideas goods and services to create

exchanges that satisfy individual and organizational goals.

W. J. Station says, Marketing management is the marketing

concept in action.

3. ORGANIZATION STRUCTURE:

In marketing management there is organizational structure is a

structure which involves companys line and staff organization in a

marketing field.

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In Forge & Forge Pvt. Ltd. organization structure are as

follows:

It has very simple organization structure. Marketing manager is

the head of marketing department and under his works. Sales manager and

purchase manager are under sales manager, there is sales assistant and

clerical staff and under purchase manager purchase assistant and clerk.

4. PRODUCT MADE:

The product is a bundle of all kind of satisfaction of both a

material and non material kinds ranging from economic activities to

satisfaction of a social psychological nature.

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The products for the Forge & Forge Pvt. Ltd. are steel die

and allude steel job such as,

1. Lister steel shaft

2. Small crank shaft

3. Connecting road

4. Railway spare parts

5. Automobile and tractor parts

6. Flange

5. PRICING POLICY:

Every company keep pricing is a stable and competitors price.

When a company increases there prices the company will not achive

market share company keep pricing cost + profit margin.

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In this Forge & Forge Pvt. Ltd. the method used for pricing

a product is cost plus for markup method.

PRICE:

Product expense

+ Over heads

+ Labor charge

+ Profit Margin

It adopts a variable pricing policy where discrimination is

made between the buyers. Here the prices are negotiable for large andvaluable customers are offered lower price and better discount.

The objective captains in mind determining product are:

1. Market share

2. Sales growth

6. PROMOTION MIX / POLICY:

The Forge & Forge Pvt. Ltd. does not adopt any

kind of promotion for their products. Their rate is very competitive in

the market and its demand for their products is very high. Hence, they

dont feel the need of promotion. They believe in personal selling andthe buyers make direct contact to the firm.

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The total amount for promotion is nearly 2% of their turnover.

7. DISTRIBUTION CHANNEL &MARKET RESEARCH:

DISTRIBUTION CHANNEL:

They are using two types of distribution channel:

1. Direct distributor

2. Indirect distributor

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The Forge & Forge Pvt. Ltd. adopts direct distribution.

They do not take the help of any intermediation like agents as retailer or

wholesalers. The consumer directly comes to the company where all

terms and conditions are decided any place to order.

MARKET RESEARCH:

Market share means number of customer to the product.

The market share ofForge & Forge Pvt. Ltd. is about to 70

%.

8. COMPETITORS:

The competitors for the company are:

1. Micro Forge

2. Kadvani Forge

3. Mars Forge

4. Echjay Steel

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It uses certain elements to face this competition which are:

- To keep more stock

- Controlling cost

- No transportation charge

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REGULAR & CREAM CUSTOMER

1. P.M.DIESEL PVT LTD.2. GUJARAT FORGEIN LTD.

3. TOPLET ENGINE PVT.LTD.

4. SAURASTRA LTD.

5. ARVIND IND.

6. NISLUSE ENGINEERS MUMBAI

7. LAXMI ENGINEERS

8. LAXMI SPARES PARTS PVT. LTD.

9. SAKARIA ENGINEERS CO.

APPROX 75 % OF CUSTOMESRS ARE LOCAL I.E. FROM

RAJKOT.

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Index

Sr.

No.

Title Page

No.1. INTRODUCTION 61

2. MEANING & DEFINITION 62

3. ORGANIZATION CHART 63

4. MANAGEMENT FOR FIXED ASSETS 64

5. BANKERS 65

6. DEPRICIATION 66

7. CREDIT & TAX POLICY 67

8. PROFIT ANALYSIS 68

9. CAPITAL STRUCTURE 69

10. SOURCE OF FINANCE 70

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1. INTRODUCTION :

Finance is one of the basic foundations of all kinds of

economic activities. It is the master key of business and industry.

Finance is regarded as the life blood of a business organization. It is said

that finance is the oil of wheel, millions of bonus and spirit of trade

commerce and industry.

Henry Ford once remark money is an arm or a leg, you either

use it or loss it. Wood row Wilson has often stated, finance is not

arithmetic, finance is a great policy without sound Finance no sound

government is possible.

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2. MEANING & DEFINITION :

Financial management deals with the financial activity, which

is concerned with the planning and controlling of the firm financial

resources. It means that the entire games of managerial efforts and

decisions devoted to the management of finance both its resources and

uses of the enterprise.

DEFINITION:

In the word of Weston and Brigham, financial management is

an area of financial decision making harmonizing individual motive and

enterprise goals.

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3. ORGANIZATION CHART :

The organization of finance department means the decision and

classification of various functions which are to be performed by finance

department.

The Forge & Forge Pvt. Ltd. is taken decision and

classified financial work as following ways:

Mr. Gopalbhai Patel is the finance manager and Mr. Sudhirbhai

is the chief-accountant under his works the assistant accountant and

clerk.

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4. MANAGEMENT FOR FIXED ASSETS :

The management of fixed assets refers to the process of

management. There are some fixed assets in the business. The firm is

taking the regular care of their fixed assets. They maintain their assets.

Forge & Forge Pvt. Ltd. (2007) having fixed assets like:

1. Gross block -78144399

2. Depreciation-57028943

Net block 20515456

Forge & Forge Pvt. Ltd. (2008)

1. Gross block-83265468

2. Depreciation-63873877

Net block 19391591

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5. BANKERS :

Forge & Forge Pvt. Ltd. sometimes need more finance that

time company take borrowed money as banks.

1. CORPORATION BANK,

Dhebar road, Rajkot.

2. HDFC BANK,

New Gymkhana, Rajkot.

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6. DEPRECIATION :

As carter has put it, Depreciation is the gradual and permanent

decrease in value of an asset from any cause.

In Forge & Forge Pvt. Ltd. is calculate depreciation to

follwing ways :

Plant & Machinery : 27.26%

Die Block : 30%

Office Building : 5%

Equipment : 13.81%

Vehicle : 25.89%

Furniture : 18%

Depreciation assets comprise a significant portion of the assets

of much enterprise and as such depreciation has a significant effect indetermining and presenting the financial position and results of the

operation of that enterprise.

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7. CREDIT & TAX POLICY :

CREDIT POLICY:

Credit policy is important to finance department for deciding

saving funds, reserve investment etc factors.

Forge & Forge Pvt. Ltd. credit policy depends upon the

customer to customer its their worthiness and depends upon the smooth

dealing for the rating on the customers. We frequently reviewing several

aspects such as timely re-payment smooth dealers order quality, etc

TAX POLICY:

It pays tax as the corporation tax the company pays 16% duty

on sale while modern amount is getting rate from purchase of raw-

material.

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8. PROFIT ANALYSIS :

Profit analysis is the most simplified method for analysis of

financial position. Thus it is an important tool for financial analysis.

Some of ratio as under:

2006:

Gross Profit: Rs. 49,99,30,376

Net Profit: Rs. 1,57,00,169

Gross profit ratio = (Gross Profit / Sales) * 100

= (49,99,30,376 / 52,77,65,034) * 100

= 94.73%

Net profit ratio = (Net Profit / Sales) * 100

= (1,57,00,169 / 52,77,65,034) * 100

= 2.97%

2007:

Gross Profit: Rs. 56,33,17,850

Net Profit: Rs. 3,36,76,778

Gross profit ratio = (Gross Profit / Sales ) * 100

= (56,33,17,850 / 611,44,32,52) * 100

= 92.13%

Net Profit Ratio = (Net Profit / Sales) * 100

= (33,67,67,78 / 611,44,32,52) * 100

= 5.51%

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9. CAPITAL STRUCTURE :

Capital structure may be defined as that capital structure of

combination of debt & equity that leads to the maximum value of the

firm. Capital structure can the value of the company by affecting either

its expected earning as the cost of capital of both. While it is true that

financing can not affect the total earning of the firm as they are

determined by investment decision can influence are value of the firm

through the earning available to the share holder.

The capital structure of Forge & Forge Pvt. Ltd. is as

under.

In 2007 :

Share Capital: Rs. 25,00,000

Reserve & Surplus: Rs. 91,35,59,70

Secured loans: Rs. 45,69,98,22

Unsecured loan: Rs. 90,91,41,86.

In 2008 :

Share capital : Rs. 25,00,000

Reserve & Surplus: Rs. 13,357,7921

Secured loans: Rs. 3,57,30921

Unsecured loan: Rs. 10,83,63,530

Investment : Rs. 92,69,539

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10. SOURCE OF FINANCE :

Source of finance means sources of financial for companies in

trend of depression and other situation when company need more

finance.

Forge & Forge Pvt. Ltd. Source of finance is own

companies finance and by banks.

- Corporation Bank

- HDFC Bank

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SUGGESTION

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After studing all aspect of the Forge & Forge Pvt. Ltd. I

would like to give some suggestion:

Unit have requires more fresh and skilled workers

The company must have more technology and facilities. The company gives facilities to departmental manager and staff

manager.

Unit have should explore a scope for international market.

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FUTURE PLAN

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Each and every industry has its own wishes and plan.

FORGE & FORGE PVT. LTD. is a company which is going on day

to day toward top.

In the modern competitive area the FORGE & FORGE

PVT. LTD. has made very good process. It also wants much & more

demand in future. In the future plan of the company, the manager of the

company needed that gave a more facility, to gave a workers or labour

and department of the company. The company gave facility like

insurance, medical facility etc.

The company aims at modifying their quality product &

reduction in cost of production. The company wants to produce a good

quality of product in minimum price. It is unit among different store.

Company plays various revenue such as duty. Income tax, sales tax,octroi tax, other change applicable from the time to time as may be

imposed by the Government. Company provides best quality of product

of his company to the society.

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Strength:

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Quality of product

Loyal customers & employees

Financially sound

Use of latest technology

Weakness:

In company most of customers are from local

area and regular.

So, no need to advertisement.

Opportunity:

They have opportunity to take over

international market because of law price and good quality both

together.

They should increase their export.

Threats

Business competitors

Economical slow down

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BIBLIOGRAPHY

The project report prepared under to guide of project in charge

M/s Dina Kanani and the project of last few year.

WEB SITE:

www.forge&forge.com

Company Name: Forge & Forge Private Limited

Contact Person: Mr. Atul Nagrecha (Manager)

Telephone: +(91)-(281)-2456101

Fax: +(91)-(281)-2456104

Address: Ahmedabad Road, Near Rajkot

Welcome Gate,

Rajkot, Gujarat - 360 003 (INDIA)

Forge & Forg Project Report-Prince Dudhatra

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Transcript of Forge & Forg Project Report-Prince Dudhatra