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A STUDY ON THE BUSINESS PRACTICES

INCAPRICORN FOOD PRODUCT

A SUMMER PROJECT REPORT

Submi tted by

NILAMATHI.RRegister Number: 1391026

In partial fulfil

ment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

in

DEPARTMENT OF MANAGEMENT STUDIES

SRI RAMAKRISHNA ENGINEERING COLLEGE

Coimbatore-641 022

AUGUST 2014

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SRI RAMAKRISHNA ENGINEERING COLLEGE

COIMBATORE-641 022

Department of Management Studies

A SUMMER PROJECT REPORT

AUGUST 2014

This is to certify that the project report entitled

A STUDY ON THE BUSINESS PRACTICES INCAPRICORN

FOOD PRODUCT

is the bonafide record of project work done by

NILAMATHI.R

Register Number: 1391026

of Department of Management Studies during the year 2013-2015

__________________ __________________________

Guide Director Management Studies

Submitted for the project Viva-Voce examination held on ______________

_______________ ________________

Internal Examiner External Examiner

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DECLARATION

I affirm that the Project titled A STUDY ON THE BUSINESS PRACTICES IN CAPRICORN

FOOD PRODUCTbeing submitted in partial fulfilment for the award of MBA is the original work

carried out by me. It has no tformed the part of any other project work submitted for award of any

degree or diploma,either in this or any other university.

NILAMATHI.R

1391026

I certify that the declaration made above by the candidate is true.

PROF.VANAJAAssociate Prof.

Department Of Management Studies

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ACKNOWLEDGEMENT

I am very thankful to the Management, Dr.A.Ebenezer Jeyakumar, Director (Academics) and

Dr.N.R.Alamelu, Principal of Sri Ramakrishna Engineering College for providing facilities to complete

the project work.

I express my immense gratitude to Dr.K.Chitra, Director, Department of Management Studies, and to

Prof.Vanaja, Associate Professor, Department of Management Studies, for her constant support to

undergo study in an extensive manner and her continuous encouragement and valuable guidance to

complete this project successfully.

I extend my sincere thanks to Mr.Vijaychanthakanth HR manager for rendering their whole hearted

support from the organization side for the successful completion of this project.

My heartfelt thanks to My Parents and My Friends who supported and encouraged me and made my

endeavours possible.

I also thank all who have helped me directly and indirectly in completing this project work.

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EXECUTIVE SUMMARY

This study is intended to help Capricorn decide upon the steps to be taken care for customer satisfaction

so that the growth of the company keeps on improving. Primary data have been used for analysis.

However, secondary source have yielded preliminary information.

Research conducted was descriptive in nature. Descriptive research helped me to develop the concept to

clearly establish priorities, to divulge adequate information which helps me indecision making and thus

essential for making the study a success.

A structured questionnaire was used to obtain required information and to assess the customer

satisfaction level and to find the ways through which the company can come up to the expectation of

customer so that the optimum satisfaction level can be achieved. I have used random sampling for my

survey. Care was taken that the respondents were as diversified as possible. A sample size of 30

respondents was taken from Krishnagiri. I collected data and analyzed them. I have critically analyzed

each and every question in the questionnaire and then given the managerial implication. This analyzed

data was later converted into bar diagrams for convenience. This also made it easy to draw a conclusion

based research and provide a presentable format for the report. Later on the information were compiled to

form a presentable report. Along with this I also learnt the Company operation of Capricorn. A better

strategy to satisfy customer is only the way to gain customer attention and to penetrate more in own

catchment area. Strategy must be in all area like Promotional offer/Scheme, Product Pricing, Employee

behavior, Billing Process, Product Assortment, Product quality in terms of RATER. It is found in the

research that customers are price sensitive hence Capricorn should give those offers which can facilitate

more money saving as the customers are price sensitive. Once the conservative thought would abolish,

definitely the retail will grow with leap and bound, ultimately it would benefit Capricorn.

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TABLE OF CONTENTS

Chapter No. Title Page No.

1 INTRODUCTION

1.1

History of Company

1.2Products and services

1.3 History of organisation

1.4Mission and vision

1.5

Organisation chart

1

1

3

4

5

6

2 MICRO AND MACRO ANALYSIS

2.1 Macro Economic Analysis Global Scenario

2.2Micro Economic Analysis- Indian Scenario

2.3 Swot Analysis

8

10

12

14

3 MARKETING DEPARTMENT

3.1 Marketing Initiatives Taken By Bank

3.2 Segmenting Targeting and Positioning

3.3 Marketing Mix

3.4 Competitors List

3.5 Complaints Handling3.6 Online Policy Manager

HUMAN RESOURCE DEPARTMENT

4.1 Responsibilities of Human Resource Department

4.2 Human Resource Planning

4.3 Performance Appraisal

4.3 Source of Recruitment

4.4 Training and Development

4.6Employee Benefit4.7 Motivation

4.8 Dispute and Resolution

4.9 Inspection

FINANCE DEPARTMENT

5.1 Finance Activities of Bank

16

18

20

22

24

2627

28

29

29

30

30

32

3233

34

36

37

38

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CHAPTER I

1 INRODUCTION:

The aim of this project is to study completely about the management and the industrys

present strategy they handle to achieve companys goal and to meet their competitors. This

summer project will be very much useful for us to understand present situation of the companys

and to develop ourselves. In this project we prefer to study fully about all the departments in the

company with the help of the employees working there.

ABOUT THE COMPANY:

Capricorn The company located at krishnagiri main road, kalkudapatti, krishnagiri district,

Tamilnadu. The company has been exploiting the potential of hygienic and high quality mango

pulp to the society. The initial period, a diminutive quantity of mango drink procured around the

villagers and sold the raw mango to various places of the district.

1.1 COMPANY PROFILE:

Name of the company: CAPRICORN FOOD PRODUCT INDIA LTD

Controlling authority: Corporation Office in Chennai.

Registered office:chennai

Anna nagar

Chennai-600089.

Telephone: 0091-44-32525000

Number of Plants: 12

Year started in Chennai: 1914

Shift Timings: I shift - 6.00 am to 2.00 p.m. II shift - 2.00 p.m. to 10.00 p.m. III shift -10.00

p.m. to 6.00am General Shift - 8.30 am to 12.30p.m / 1.30p.m to5.30 pm

Managing Director:

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Bankers: ICICI/ State Bank of India / Indian Bank

Insurance Company: National Insurance Company

Nature of industry: Food company

1.2 Product and Services :

Mango product and production of mango pulp to brought the mango from various place in

tamilnadu is an export oriented food processing company it manufacring tropical fruit pulp

Business locations:

Zonal offices: ANDRA HOUSUR ,BANGLORE, CHENNAI.

Stock offices:, Nagpur, Goa, Chennai, Bangalore, Dharwad, Lucknow, Trichy, , Ahmadabad,.

Sub-contracting units: CHENNAI ,TAMILNADU

MANGO PULP

TOMOTO PULP

GOA

FRUT FURESS PULP

1.3 HISTORY

Capricorn food product India ltd it was started 10 November , 2010 export oriented product

manufacring mango fruit pulp

Quality management system ISO 9001:2008 and Environmental management system ISO

14001:2004certified.

QUALITY:

Quality management system ISO 9001:2008 and Environmental management system ISO

14001:2004certified.

Certified FSSC 22000:2010 for The Food Safety Management Systems

Member of SGF-IRMA (European Quality Systems)

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Certified for Kosher by STAR KOSHER

Certified for Halal by JamiatUlama-E-Maharashtra

Certified by BRC for Global St

FACTORIES:

Factory 1, kalkudapatti, Krishnagiri district, Tamil NaduMango product

Factory 2Hosur krishsngiri district, Tamilnadu- mango pulp production line.

FACTORY 3 CHITTOR ,Andhra pradhesh

1.4 VISION AND MISSION:

1.4.1 VISION:It will enhance its world leadership in confectionary by creating value for people

through delightful and imaginative high quality products.

1.4.2 MISSION :

* To develop, manufacture and market high quality and innovative products for their consumers

through efficient use of their resources and in partnership with their customers.* To create a fulfilling workplace for their employees built on trust, mutual respect and

appreciation of their diversity.

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1.5 ORGANISATION CHAT

ORZAGATIOCHATI

MARKETING

DEAPARTMENT

PRODUCTION

DEAPARTMENTHR DEAPATMENT

FINANACE

DEAPARTMENT

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MICRO AND MACRO ANALYSIS

CHAPTER II

2 MICRO AND MACRO ANANALYSIS:

2.1 Environmental Factors:

Macro environment

1. Demographics

a) Age

Briefly, we can say that CAPRICORN mango drinks are popular among every age group.

This is because its delicious, nutritious, hygienic and the bestconfectionary product.

b) Socioeconomic status

Previously, people used to prefer maaza. The reason was that it used to be cheap, available in

large quantities and worth a compromise on quality for price. To target such people,

CAPRICORN came up with a 20 rupees economical CAPRICORN mango drink which is

within the affordability of every income group of Indian. With this introduction low income

people switched to CAPRICORN mango pulp provided them with high quality, nutrition, and

delicacy at a very reasonable price.

c) Location of residence

CAPRICORN Maaza is available everywhere right now. Where education and awareness

level is relatively high and people willingly go for the hygienic, nutritious and high quality

products irrespective

of their prices.

2. Economics Conditions

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a) Operations Restrictions

b) Labor Policies

c) Domestic Economic Problems

3. Social and Cultural Forces

First of all, we have to define what society is. Society is all about people in general, living in

communities. Then we have to know what culture is. Culture is basically the customs,

beliefs, way of life, and social organization of a particular country or group.

Now we have to see how and in what ways the cultural and social forces affect the marketing

of our chosen organization, CAPRICORN in India. The first aspect that will be brought

under consideration is:

Family

In a country like India , family plays a major role in the everyday life of an individual. .

Besides having it as an accessory of food, simple mango drink is also used as a raw material

for cooking, which is again a part of our tradition, our culture. CAPRICORN provides the

Indian families with all that they require purity, taste, hygiene everything in the

CAPRICORN products.

4. Political and Legal Forces

Political and legal forces also influence every companys conduct. Political and legal forces

on marketing would be categorized into:

a) Trade policy

Taxes (state and local taxes).. Increase in vans for transportation is thus an uncontrollable

factor and demands tax payments.

b) Quality Control

"We at CAPRICORN India Corporation Limited, endeavor to provide our products withappropriate quality at right time and at an affordable cost."

c) Open/close economy:

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Its an open economy facilitating foreign investments and allowing free trade.

5. Technology

CAPRICORN uses the term "clean technologies" to describe its working environment. This

term is defined as "manufacturing processes or product technologies that reduce pollution or

waste, energy use, or material use in comparison to the technologies that they replace."

Microenvironment

1. Market

In marketing, the term market refers to the group of consumers or organizations that is

interested in the product, has the resources to purchase the product, and is permitted by the

law and other regulations to acquire the product.

In marketing any given good or service, three specific factors need to be considered:

People or organizations with needs,

Their purchasing power, and

Their buying behavior

2. Suppliers

The people or firms that supply the goods or services required by a producer to make what it

sells and also the firms that provide the merchandise, a wholesaler or retailer resells are the

suppliers and are a vital part of a firms marketing success.

3. Marketing Intermediaries

Marketing intermediaries are independent business organizations that directly aid in the flow

of goods and services between a marketing organization and its markets.

There are two types of intermediaries:

a) Middlemen, wholesalers and retailers

As for CAPRICORN confectionary wholesalers are given license (i.e. those with best

chillers).However middlemen are less involved because it mostly done by their self owned

departments.

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b) Channels of distribution

They operate between a company and its markets and between a company and its suppliers.

These are the facilitating organizations that provide services such as transportation,

warehousing, and financing that are needed to complete exchanges between buyers and

sellers.

2.3 SWOT ANALYSIS:

STRENGTH:

1. Good brand position and quality which is consumer favorites.

2. Strong partnership with retailers.

3. Stores are available in almost every market.

4. The shareholders have limited responsibility with regard to the debts or trials against the

corporation.

5. Corporations can obtain more capital through the sale of their actions.

6. A corporation can deduct the cost of benefits (benefits package) that offers to its managers and

employees.

WEAKNESS:

2. Packing is not attractive

3. The process of integration requires more time and money to compare to other models of

organization.

4. The corporations are supervised and subject to rules of entities: federal, state and some local,

and therefore might have to comply with many more requirements and administrative documents

to demonstrate compliance.

OPPORTUNITIES:

1. Increase personal relation in village.

2. Increase product range .

3. As the harbor is near, can export the products by increase quality and range to the small

continue.

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THREATS:

1. Highly qualified employees in big brand.

2. Huge investment on advertisement by other brands.

FUNCTIONAL AREAS

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3.1 MARKETING MANAGEMENT

3.1.1 Product/Service:A price competitive edge while the distribution strategies will ensure that the products

reach the final consumers.

3.1.2 Product Segmenting, Targeting and

Positioning:-

SEGMENT

People looking to have

Maaza

slice

fruit

TARGET

Lower

Middle and

Upper middle class

POSITIONING

Positioned as a brand

Tasty

3.1.3 Marketing Mix

Products:

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Product description

This marketing strategy will be offering a particular product in the market. It is

specifically offering white soft drinks in the Indian market. The main brand that is to beintroduced in the market is Capricorn soft drinks which is mainly targeted for the youth andchildrens. The product will be offered in 300 ml bottel, 500 ml 700 ml and 1 ltrbottel. The

co-brands are lacto king, Capricorn maaza, slice ,fruit . These will be the most important sized

packages that the product will be sold in. it will be sold in whole sale and retail.

Pricing strategies

Since the product is being offered for the first time in the market, the company will useprice penetration strategy where it will use low prices strategy to penetrate the market. However

this will be combined with cost plus pricing since it will have to operate at a profit market.

However the initial price set up will be based on the low prices to penetrate the market. Theproduct Capricorn maaza will be offered at Rupee 20 , slice 10rs and the products from the

price of mango drinks.

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Place (Physical Distribution)

LOCATION:

Companies now days are shifting base to lower cost of production which make sense .Production

base in cities or metros have become non-viable as cost of living , cost of raw material ,overhead

cost and transportation cost have gone above the roof . Companies are moving to low cost areas

locally companies have shut operation in DELHI , MUMBAI , CHENNAI , KOLKATA and

moved to areas like UTTARAKAND , JHARKHAND , JAIPUR , BADI , etc..

Business locations:

Zonal offices: Delhi, Kolkata, Mumbai, Chennai

Stock offices: krishsnskiri-tamilanadu,banglore- Karnataka,chittorAndra pradesh

Subcotact :chittorAndra,Banglore - karnataka

contracting units: chennai

Promotion:

Advertisement

Centralized Distribution

Centre

Chennai

Andhra

PradeshKarnataka

Maharastra

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Presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertisement will be provided on TVs, Billboards, catalogs, posters, banner ads.

Personal Selling

A process of helping and persuading one or more prospects to purchase a good or

service or to act on any idea through the use of an oral presentation. Sales presentations,sales meetings, sales training samples. These are the personal selling is been done inCapricorn.

Personal Selling

Paid intimate stimulation of supply for a product, service, or business unit by planting

significant news about it or a favorable presentation of it in the media.

3.1.4 Distribution Channel:-Manufactures normally use intermediaries for talking their products to the users. The

intermediaries bear a variety of names. All such intermediaries constitute the marketing channel.The manufacturers branch offices, depots, warehouses and showrooms too form a part of the

marketing channel. Where institutional channels like chain stores, super markets, etc. are used bythe firm, they too form part of the marketing channel .

Type of marketing intermediaries:-

C&F agents (CFAs)

Stockiest/distributor/whole seller

Semi-whole seller

Retailer/dealer

In coverage Capricorn being covered not all over Orissa, it covers seventy percent of total

state. the company target to cover the total state very soon. Instead of all these company is on

growing stage. Total sale is comparatively appreciative.

Distribution chart

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3.1.5 Competitors List:

Capricorn competes with other packaged foods companies as well as store brands from

retailers Capricorns major competitors are:

CompanysCompetitive Advantage

Competitive Advantages(current)

Innovation is at the heart of creating brands people love. Capricorn investment intechnology of taste, flavor, packaging, process development and nutrition has never been greater.

Scale of production

Distribution channel Loyal base of customers

Competitive Advantages(tobedeveloped)

Segmentation on the basis of income of the people in terms of branding

Packaging

Availability in the rural areas

Manufacture CFA Whole sellers Retailers Customers

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3.2.6 Market Strategy:-

Segmentation:

Market segmentation is one of the steps that go into defining and targeting specific markets. It is

the process of dividing a market into a distinct group of buyers that require different products or

marketing mixes.

Demographical bases (age, life cycle, occupation, income)

Geographical bases (states, regions, countries)

Behavior bases (product knowledge, usage, brand loyalty)

Target Marketing:

Target Marketing involves concentrating your marketing efforts on one or a few key segments.

Target marketing can be the key to a businesss success.

The beauty of target marketing is that it makes the promotion, pricing and distribution of your

products and/or services easier and more cost-effective.

Cost Leadership (Undifferentiated or Mass) Strategy

Differentiation Strategy

Segmentation Strategy

Positioning:

Positioning can be defined as how your target market defines you in relation to your competitors.

A good position makes the product unique and is considered a benefit by the target market.

Product should be unique.

Product has to be beneficial

Affordable price

Quality packaging

3.1.7 CRM in customer contact centers

CRM systems are customer relationship management platforms. It is a platform for

progressing the payments and other related query management.

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3. Production and Operation:

3.2.1 Manufacturing Facility of CAPRICORN:

A state of the art manufacturing plant is at chennai. CAPRICORN India's manufacturing

facility is located at banglore , which is in the southern part of India. The factory is housed in

Buildings constructed .; but refurnished inside to accommodate the state of the art equipment.

Apart from having the own factory at Krishnagiri, CAPRICORN India also has dedicated Sub-

Contracting in units at Andra, Chennai. All the products are manufactured under the most

hygienic conditions. Great care is exercised in the selection and quality control of Raw Materials

and packing materials. Rigid quality controls are implemented at every stage of production

process. Every batch of production is checked thoroughly using modern equipment.

The factory at chennaii has been awarded with ISO 14001:1996 and HACCP awards by BVQI.

3.2.2 Quality policy

HACCP:

Food Safety Management System -

Hazard Analysis Critical Control Point (HACCP) is a preventive system of food

control. It involves examining and analyzing every stage of a food-related operation to identify

and asses hazards; determining the 'critical control points' at which action is required to controlthe identified hazards; establishing the critical limits that must be met at, and procedures to

monitor, each critical control point; establishing corrective procedures when a deviation is

identified by monitoring; documentation of the HACCP plan and verification procedures to

establish that it is working correctly.

HACCP Policy

We are committed to provide safe products to our customers at all times, we shall strive to

achieve this through,

Practicing Systems & Procedures as per HACCP requirements.

Implement Control measures to ensure that the products are free from physical, Chemicaland Microbiological hazards.

Continuous improvements through training activities.

Adherence to Good Manufacturing practices and Good Hygiene Practices.

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Quality Policy

We at CAPRICORN India Corporation Limited, Endeavour to provide our products with

appropriate quality at right time and at an affordable cost

Towards this we would -

Continually improve our products and processes.

Educate, train and develop all our employees for enhancing their skills, knowledge andquality of work life.

Provide safe products to our customers.

Adhere to good manufacturing practices.

ISO 9001:2000 specifies the requirements for a quality management system where an

organization:

Needs to demonstrate its ability to consistently provide product that meets customer and

applicable regulatory requirements, and

Aims to enhance customer satisfaction through the effective application of the system,including processes for continual improvement of the system and the assurance of

conformity to customer and applicable requirements.

It is now the only standard in the ISO 9000 family against whose requirements the quality

system will be certified by an external agency. The ISO 9001:2000 certification signifies

a global benchmark in customer satisfaction, product quality and leads to significant

reduction in defects levels. The standard recognizes that the word product applies toservices, processed material, hardware and software intended for or required but the

EVIRONMENTAL POLICY:

Environmental Management Systems -

ISO 140v 01:1996

Environmental management is a tool designed to assist an organization to remain in touch

with the environmental interactions and consequential impacts of its activities and products. It

provides the organization with programs and procedures to achieve due diligence in meeting

regulatory requirements. Its also promotes continual improvement performance.

An environmental management system is essentially a management framework to ensure

you evaluate how your business impacts the environment, know what impacts are significant,

and processes in place to minimize the significant environmental impact.

The basic element of our environmental management system is enabling our organization

to:

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Establish an appropriate environmental policy;

Identify its most significant environmental impacts;

Identify relevant legislative, regulatory and industry specific requirements; set appropriate environmental objectives and targets;

Establish programs to implement the environmental policy and achieve objectives and

targets, and; Continuously improve the environmental performance through improvement of the EMS.

Organizations can experience a number of benefits from implementing an effective

environmental management system, such as:

Preventive of pollution.

Reduction of consumption of materials and energy.

Limited liability by providing evidence of due diligence. Improved access to capital.

Improved industry/government relations.

May reduce insurance costs.

Improved public relations.

Our Environmental Policy:

We are committed to the society we live in and it is our endeavour to improve continually

the environment around by -

Ensuring Zero discharge of effluents and developing a green belt to improve our

environment.

Adhering to the emission norms to protect the quality of ambient air. Focusing on conservation of energy and seeking opportunities for using alternative and

renewable energy sources.

Imparting awareness on the need for environmental protection to the people in theneighbor hood.

Adhering to all statutory and regulatory requirements.

DISTRIBUTION NETWORK OF CAPRICORN INDIA CORPORATION:

Transportation investments often have direct effects on the spatial distribution of a

region or country's population and economic activity. Improved access to employment centres,decreases in the travel time of trips and changes in the distribution of economic centresaffect

the location decisions of people and businesses.

FACTORIES:

krishns

giriHosur Andra Maharastra Banglore chennai

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Plant LocationOur manufacturing unit will be located at 4/111, Anna Nagar, High road, Manapakkam,

Chennai-600089.

To export our product we use the Central Government transport facility named as Inland

Container Depot which is located at Andra.

La our is easily available since there are many such labour contractor available andra

UP. We will get skilled and unskilled labour as per our need. Technical people are alsoavailable easily to monitor the quality and consistency of our product.

3.2.3 Plant Layout

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3.2.4 Lean manufacturing:

Lean production, often simply, "lean", is a production practice that considers the

expenditure of resources for any goal other than the creation ofvaluefor the end customer to be

wasteful, and thus a target for elimination. Working from the perspective of the customer who

consumes a product or service, "value" is defined as any action or process that a customer wouldbe willing to pay for.

Lean production, aims to reduce waste. Waste is looked at in terms of time, money and

quantity of resources used in production. Reducing these elements aims to increase productivity

and efficiency.

Benefits of Lean Manufacturing

CAPRICORN uses lean production techniques to bring benefits other than gains to

efficiency and quality. It also helps to create social and environmental benefits. Social benefits

are those shared by the communities in which Nestl operates.

Kaizen

Kaizen is another idea developed in Japan. It supports lean production by introducing the

idea of continuous improvement. Kaizen is a concept that makes improvement the responsibility

of everyone involved in production. Improving efficiency becomes a continuous process, not a

one-off activity. Kaizen implies that even the smallest improvement should be made, as many

small improvements can lead to big savings.

Elimination of Waste

Value refers to the aspects of a product that customers think it is worth paying for. Addedvalue refers to activities or processes that make the product better or worth more. Value can be

added through changes to design or changes to the way a product functions or behaves. Value

can also be added by reducing waste which in turn reduces production costs. Any activity which

puts cost on a product without adding value is waste. Waste can happen at any part of theprocess. Muda is the Japanese term for waste. Muda is broken down into the seven areas that

make up the mnemonic TIMWOOD. (Transport, Inventory, Motion, Waiting time, Over-

Processing, Over-Production, Defects)

3.2.5 Details of machinery and sources of machineries

The product will be manufactured by Full Automatic mango Production Line

(QH200), with this system, baking the moulds, depositing, forming etc. series procedure can

be achieved automatically.

http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)

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the growth of the small batch craft chocolate "industry" here in the India. Furthermore, we think

that at that price point it will be necessary to produce at least 1 ton per month of finished

chocolate in order to be able to break even.

Capacity utilization

The maximum production capacity of our plant would be 400 TONES/day and wewill try to utilize optimize resources and our capacity of utilization is 300TONES/day.

Raw Material Sourcing:

1. MANGO

2. MANGO PULP POWDER

3. SUGER

.

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3.3 Financial Department

Financial Management is a operational activity of business i.e., responsibility for obtaining thefund & effective utilizing the fund for effective operation that is called financial management

Definition Of Financial Statement Analysis:

The process of reviewing and evaluating a company's financial statements (such as

the balance sheet or profit and loss statement), thereby gaining an understanding of the financialhealth of the company and enabling more effective decision making. Financial statements recordfinancial data; however, this information must be evaluated through financial statement analysis

to become more useful to investors, shareholders, managers and other interested parties.

Finance Department Chart of Capricorn India Corporation Limited

3.3.1 Book of accounts

The financial statements are prepared and presented in accordance with Indian Generally

Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis.

GAAP comprises of accounting standards notified by the Central Government of India under

Section 211(3C) of the Companies Act, 1956, other pronouncements of the Institute of CharteredAccountants of India and the provision of Companies Act, 1956, to the extent applicable. The

accounting policies have been uniformly applied by the Company and are consistent with those

used in the previous year.

3.3.2 Share Price of the company:

95,60,021 equity shares of Rs.10/- each

94, 79,788 (99.16%) equity shares have been dematerialized as on December 31, 2013.

Capital Budgeting:

HEAD FINANCE

FINANCE MANAGER

EXECUTIVE

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Capital budgeting is the technique of making decision for investment in long term

proposals. It is a process of deciding whether or not to invest the funds in a particular proposal,the benefit of which will be available over a period of time longer than one year.

.

3.3.3 Capital Structure:

3.3.4 Deprecation Method:

Depreciation is provided on the straight line method at the rates of depreciationprescribed in Schedule XIV to the Companies Act, 1956. If the managements estimate of the

useful life of a tangible fixed asset at the time of acquisition of the asset or of the remaining

useful life on a subsequent review is shorter than that envisaged in the aforesaid Schedule,

depreciation is provided at a higher rate based on the managements estimate of the useful life /remaining useful life. Pursuant to this policy, based on the estimated useful life of the assets,

depreciation is provided in respect of certain assets at the rates which are higher than the

corresponding rates prescribed in Schedule XIV to the Companies Act, 1956. The

Estimated useful life of various tangible fixed assets is as under:

Description Estimated useful life (in years)

Building 28

Plant and machinery 5 - 13

Computer and accessories 5

Furnitures and fixtures 5 - 10 Office equipments 5 - 10

Vehicles 5All tangible fixed assets individually costing Rs. 5,000 or less are fully depreciated in

the year of purchase.Leasehold improvements are amortized on a straight line basis over the useful

remaining useful life of the asset or the lease period whichever is lower.

Type of CapitalInvestment

Capital Investment inPhysical Assets

Land , Building,Machinery, Vehicle,

Computer

Capital investment inmonetory Assets

Cash, Bank.

Capital investment in IntangibleAssets

R&D, T&D,

MKT Development

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3.3.5 Financial Statements

Particulars Dec '12 Dec '11 Dec '10 Mar '10 Mar '09

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share -- -- -- -- --Operating Profit Per Share (Rs) 21.77 21.09 9.71 23.95 15.46

Net Operating Profit Per Share (Rs) 313.26 285.16 172.94 500.81 453.59

Free Reserves Per Share (Rs) -- -- -- -- 84.03

Bonus in Equity Capital 1.62 1.62 1.62 4.10 4.10

Profitability Ratios

Operating Profit Margin (%) 6.95 7.39 5.61 4.78 3.40

Profit Before Interest And Tax Margin(%)

1.76 1.09 -0.14 2.31 0.30

Gross Profit Margin (%) 1.78 1.10 -0.14 2.32 0.30

Cash Profit Margin (%) 7.31 7.97 2.01 3.78 1.84

Adjusted Cash Margin (%) 7.31 7.97 2.01 3.78 1.84Net Profit Margin (%) 2.20 1.75 -3.71 1.34 -1.24

Adjusted Net Profit Margin (%) 2.20 1.75 -3.71 1.34 -1.24

Return On Capital Employed (%) 1.86 1.39 0.15 12.16 2.00

Return On Net Worth (%) 1.47 1.08 -1.40 5.96 -5.33

Adjusted Return on Net Worth (%) 1.47 1.08 -1.40 5.96 -5.35

Return on Assets Excluding

Revaluations

472.74 465.77 460.70 113.08 106.34

Return on Assets Including

Revaluations

472.74 465.77 460.70 113.08 106.34

Return on Long Term Funds(%) 1.86 1.39 0.15 12.16 2.01

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Liquidity And Solvency Ratios

Current Ratio 1.67 2.00 1.99 0.81 0.72

Quick Ratio 1.17 1.20 1.25 0.38 0.30

Debt Equity Ratio -- -- -- -- 0.01

Long Term Debt Equity Ratio -- -- -- -- --

Debt Coverage Ratios

Interest Cover 183.80 82.68 5.99 29.38 0.24

Total Debt to Owners Fund -- -- -- -- 0.01

Financial Charges Coverage Ratio 521.63 310.34 90.37 55.65 1.73

Financial Charges Coverage Ratio

Post Tax

484.33 293.01 30.67 41.66 1.89

Management Efficiency RatiosInventory Turnover Ratio 9.59 7.46 6.02 9.45 9.53

Debtors Turnover Ratio 34.06 44.17 39.32 51.72 49.72

Investments Turnover Ratio 9.59 7.46 6.02 9.45 9.53

Fixed Assets Turnover Ratio 0.62 0.57 0.34 1.48 1.36

Total Assets Turnover Ratio 0.67 0.61 0.38 4.43 4.41

Asset Turnover Ratio 0.67 0.62 0.69 0.79 2.90

Average Raw Material Holding -- -- -- -- 29.76

Average Finished Goods Held -- -- -- -- 29.77

Number of Days In Working Capital 53.73 63.55 63.56 -22.64 -38.10

Profit & Loss Account Ratios

Material Cost Composition 53.87 58.33 57.57 67.13 61.75

Imported Composition of RawMaterials Consumed

0.71 1.25 9.26 0.60 0.77

Selling Distribution Cost Composition 5.84 5.75 6.59 -- 17.19

Expenses as Composition of Total 1.57 1.32 0.69 0.91 0.68

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Sales

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit -- -- -- -- --

Dividend Payout Ratio Cash Profit -- -- -- -- --

Earning Retention Ratio 100.00 100.00 -- 100.00 --

Cash Earning Retention Ratio 100.00 100.00 100.00 100.00 100.00

Adjusted Cash Flow Times -- -- -- -- 0.11

Dec '12 Dec '11 Dec '10 Mar '10 Mar '09

Earnings Per Share 6.97 5.07 -6.46 6.74 -5.68

Book Value 472.74 465.77 460.70 113.08 106.34

Balance Sheet of the Company:

Particulars Dec

'12

Dec '11 Dec '10 Mar '10 Mar '09

Sources Of Funds

Total Share Capital 9.56 9.56 9.56 3.77 3.77

Equity Share Capital 9.56 9.56 9.56 3.77 3.77

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 442.38 435.72 430.87 38.88 36.33

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net worth 451.94 445.28 440.43 42.65 40.10

Secured Loans 0.00 0.00 0.00 0.00 0.00

Unsecured Loans 0.00 0.00 0.00 0.00 0.34

Total Debt 0.00 0.00 0.00 0.00 0.34

Total Liabilities 451.94 445.28 440.43 42.65 40.44

Particulars Dec

'12

Dec '11 Dec '10 Mar '10 Mar '09

Application Of Funds

Gross Block 481.38 479.43 483.90 127.67 127.46

Less: Accum. Depreciation 106.16 90.70 82.65 73.15 69.68

Net Block 375.22 388.73 401.25 54.52 57.78

Capital Work in Progress 32.03 8.42 0.27 0.01 0.77

Investments 0.00 0.00 0.00 0.00 0.00

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Inventories 33.30 38.69 28.90 20.84 20.10

Sundry Debtors 10.07 7.51 4.83 3.58 3.73

Cash and Bank Balance 43.25 37.46 30.58 15.10 6.17

Total Current Assets 86.62 83.66 64.31 39.52 30.00

Loans and Advances 24.82 12.48 13.95 11.81 18.25

Fixed Deposits 0.00 0.00 0.00 0.00 0.07Total CA, Loans & Advances 111.44 96.14 78.26 51.33 48.32

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 55.71 47.50 38.62 62.33 60.45

Provisions 11.04 0.52 0.73 0.88 5.98

Total CL & Provisions 66.75 48.02 39.35 63.21 66.43

Net Current Assets 44.69 48.12 38.91 -11.88 -18.11

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 451.94 445.27 440.43 42.65 40.44

Contingent Liabilities 5.43 23.68 151,420.00 2.22 1.51

Book Value (Rs) 472.74 465.77 460.70 113.08 106.34

Capital Structure:

Capricorn India Corporation

Capital Structure

Period Instrument --- CAPITAL (Rs. cr) --- - P A I D U P -

From To Authorized Issued Shares (nos) Face Value Capital

2012 2012 Equity Share 370 9.56 9560021 10 9.56

2011 2011 Equity Share 370 9.56 9560021 10 9.56

2010 2010 Equity Share 370 9.56 9560021 10 9.56

2009 2010 Equity Share 10 3.77 3771289 10 3.77

2008 2009 Equity Share 10 3.77 3771289 10 3.77

Profit & Loss of the Organization:

Capricorn India CorporationParticulars Dec

'12

Dec '11 Dec '10 Mar '10 Mar '09

Income

Sales Turnover 319.54 288.74 173.86 197.03 183.52

Excise Duty 20.06 16.12 8.53 8.16 12.46

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Taxation

a)

Minimum alternate Tax: not applicable for domestic exportb) Registration of Central Excisec) Registration of Sales Tax

d) Registration of The Income Tax Act 1961 (PAN No.)

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00

Per share data (annualized)

Shares in issue (lakhs) 95.60 95.60 95.60 37.71 37.71

Earning Per Share (Rs) 6.97 5.07 -6.46 6.74 -5.68

Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00

Book Value (Rs) 472.74 465.77 460.70 113.08 106.34

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3.4 HUMAN RESOURCE

3.4.1 Objectives of Human Resource Department

To define the process to ensure adequate control over hr policies /procedure document in

computerized mode.

Procedure

Distribution list for the hr manual is prepare maintained and updated by the corporate

administration executive.

Policies and procedure are identified with latest revision and date in the distribution list.

3.4.2 Recruitment

RIGHT PERSON IN THE RIGHT JOB

It is the policy of the company to employ always the best suited person for all its man power

needs. The process selection will therefore be on the basis of merit, ability, competence,

experience and potential.

Sources of Recruitment

Candidates already placed on wait list following an interview

Internal candidates

Existing data bank

Approved recruitment consultants

News paper advertisement

Internet based recruitment

Campus interview

Employee reference.

RECRUITMENT PROCESS:

Source of manpower

Short list of application

Interview call letters

Interview

Issue of offer letter and pre employment medical examination

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No contribution (E)

Employee is not focused on the objectives and in fact has a negative impact on the

companys objective.

3.4.4 Welfare Benefits:

1. Long service award

2. Annual medical check up

3. Hospitalization expenses for dependent parents

4. Group personal accident policy

5. Marriage Gift

6. Funeral expenses & Death Relief

Long Service Award

To recognize and appreciate management staff who have served in the company for 20

, 25, 30 and 35 years.

Complete year of service Award

2025

30

35

150 aseptic package250 aseptic package

375 aseptic package

500 aseptic package

Annual medical check up

The facility of a comprehensive medical checkup by a competent nominated hospital or

diagnostic center to all management staff and their spouse.

A. Below 40 yearsonce in a 2 years.

B. 40 years and aboveevery year.

Tests

Hemoglobin P.C.V

R.B.C

MHV, MCV, MCH

Total W.B.C

Platelet count

Differential count

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E.S.R

Blood grouping / Rh typing

Complete urine Analysis

E.C.G (Resting)

Hospitalization expenses for dependent parents

Employees who have a need to avail of this benefit to cover hospitalization

expenditure for dependent parents, shall apply to corporate HR head with the bills, records etc.

The amount extended is an interest free loan which shall be recovered in 36 months ins talents.

Group personal accident policy

Medical expenses incurred consequently to the injury/accident will be reimbursed

under personal accident policy.

Description of injury Extent of injury

1. Death only

2. Loss of two limb, two eyes or one limband one eye

3. Loss of two limb, two eyes

4.

Permanent total disablement

100% of CSI

100% of CSI

50% of CSI

100% of CSI

Marriage gift

The company shall buy a gift cheque for Rs. 1001/- and present it to the employee on

the day of his/her marriage.

Terminal benefit

Provident fund

Superannuation

Gratuity

Retrial benefits

Provident fund

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The various benefits admissible under the provident fund are of the following type:

a) Nonfundable loan towards Housing, Sickness, Marriage/Education, Natural calamities,

etc..,

b) Lump sum payment in full and final settlement of the provident fund account.

Superannuation

The Superannuation scheme covers all executives borne on the probationary confirmed

rolls of the company.

Retirement on normal pension date

Retirement after normal pension date

Retirement before normal pension date

Death while in service Resignation/cessation of service

Gratuity

Gratuity is payable all executives who join in the probationary/confirmed role of the

company and have completed five years of service under normal circumstances or below five

year ink the case of death or retirement due to physical /mental infirmities.

Retirement

This policy shall apply to all employees (excluding work men retiring from the serviceof the company)

a) Retirement souvenir

b) Exgratia

c) Leave encashment

3.4.5 LEAVE

Types of leave

Earned leave

Casual leave

Sick leave

Maternity leave

Advance leave

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CHAPTER V

LEARNINGS

1.Time Management

Time Management should be followed each and every production department people .it

improve higher production and good will.

2.other Learnings

Even in the company working other state employee even they treated like very equally as our

state employees by all higher managers.

FINDING AND ANALYSIS

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FINDING AND ANALYSIS:

Gender

TABLE :1 Gender

INTERPRETATION ;

Most of that womens are preparing the soft drinks more the men.

60%

40%

Respondent

male female

Gender Respondent Percentage%

Male 18 60

Female 12 40

Total 30 100

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AGE

AGE Respondent Percentaage%

15to18 8 27

18 T0 25 10 33

25TO 30 7 23

ABOVE35 5 17

Total 30 100

Table 1.2 Age

INTERPRETATION ;

Mostly preparing the soft drink age group between 18 to 25.

27%

33%

23%

17%

Respondent15to18 18 T0 25 25TO 30 ABOVE35

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Education Qualification

SSLC 5

12 7

UG 8

PG 7

OTHER 3

TOTAL 30

Table 1.3 education Qualification

5

7

8

7

3

SSLC 12 UG PG OTHER

RESPONDENCE

RESPONDECE

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Monthly Income

Monthly income Respondents Percentage%

5000 to 10000 7 23

10000 to 20000 10 33

20000 to 50000 8 27

above 50000 5 17

Total 30 100

Table 1.4 Monthly income

INTERPRETATION ;

Most of that preparing the soft drinks theirs monthly income 10000 to 20000.

23%

33%

27%

17%

Respondents

5000 to 10000

10000 to 20000

20000 to 50000

above 50000

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Which soft drink consume :

soft drink Respondent Percentages %

coco drink 10 33

Orange drink 5 17

lemon drink 7 23

mango drink 8 27

total 30 100

Table 1.6 which soft drinks prepared to buy

INTERPRETATION ;

Most of the people to preparing the coco drinks more then other.

33%

17%23%

27%

coco dring orangedrink lemon drink mango drink

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Mango drink

mango drink Respondent Percentage%

brand 8 27

taste 15 50offer 7 23

total 30 100

Table 1.7 Mango drinks

INTERPRETATION ;

Most of the people to like and have a soft drinks only taste .

27%

50%

23%

Respondents

brand taste offer

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Quantity

Quantity Respondents Percentage%

200ml 9 30

300ml 5 16

500ml 8 27

1 ltr 5 17

2 ltr 3 10

Total 30 100

Table 1.8 Quantity

INTERPRETATION ;

Most the respondent they like to buy a soft drinks in 300 ml bottle .

30%

16%27%

17%

10%

Respondents

200ml 300ml 500ml 1 ltr 2 ltr

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purchase

purchase Respondents percentage %

super market 8 27

Retail shops 7 23

bakery 8 27

other 7 23

total 30 100

Table 1.10 purchase

INTERPRETATION ;

More Respondents they are buying the soft drinks through super markets .

27%

23%27%

23%

Respondentssuper market Retail shops bakery other

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buying pattern:

buying pattern Respondents Percentage%

occasions 10 33

festival 5 17

offers 5 17

no specify pattern 10 33

total 30 100

Table 2 Buying pattern

INTERPRETATION ;

Most of the Respondents are buying the soft drinks occasion .

Attracting add

Attracting add Respondents percentage %

33%

17%17%

33%

Respondents

occasions

festival

offers

no specify pattern

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Minut maid pulpy orange 5 17

Minut maid mixed fruit 6 20

Maaza 9 30

Slice 7 23

Fruiti 3 10Total 30 100

Table 2.1 Attracting add

INTERPRETATION ;

Most of the Respondent they are attracting by the adds .

17%

20%

30%

23%

10%

Respondents

Minut maid pulpy orange

minut maid mixed fruit

Maaza

slice

Froti

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Consumer perception on Mango soft Drinks

Questionnaires

DEMOGRPHIC DETAILS

1.Age (in years)

1) 15to 18 2) 18 to 25 3) 25 to 35 4) Above 35

2.Gender

1) Male 2) Female

3.Education qualification

1) 10 2) 12 3) UG 4) PG 5) other

4. Monthly income (in Rs)

1)5000 to 10,000 b) 10,000 to 20,000 3)20,000 to 50,000 4) above 50,000

1.How frequently do you consume soft drink?

1) once in a day 2 Twice a day 3) 3 to4 times a week 4) occasionally

2.Which of the following soft drink do you consume ?

1) coco drinks 2) orange drinks 3) Lemon drinks 4) Mango drinks

3.What do you look for when do buy a mango drink?

1) Brand 2)Taste 3)offer

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4.How much quantity do you purchase for the particular occasion ?

1)2oo ml 2)300ml 3)500 ml 4)1 ltr 5)1.5 ltr 6) 2 ltr

5.please specify to sources to awareness for the mango soft drink?

1) Tv add 2 )Ratio 3) Magazines 4) Trough friends

6.Where do you purchase the soft drink ?

1) super markets 2) Retail shops 4) Bakery 5) others

7.What is your view on taste of all the soft drink product?

Very good Good Neutral Bad Very bad

Coco cola

Fanta

Maaza

sprite

Tumpsup

Limca

Minute maid pulpy

orangeMinute maid mixed

fruit

slice

8.Specify your buying Patten?

1) occasions 2) festival 3) offers 4) No specify Patten

9.How do you view the price of soft drinks product?

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