Uvesh Popatia
I undersigned UVESH POPATIA, the student of S.Y.B.B.A. here by declare
that the project work presented in this report is my own work and has carried it out
under the guidance of PROF. J.P. MAJMUDAR OF SWAMI SAHAJANAND
COLLEGE OF COMMERCE & MANAGEMENT - BHAVNAGAAR.
NAME:
DATE:
PLACE:
SIGNATURE:
Madhu Silica Pvt. Ltd
Uvesh Popatia
P reface In the era, where today’s world, India and its citizens stand-is the one
where everyday new things come up and in very few time becomes an
outdated item.
At this time, students studying management studies not only to read
out books and on going articles but also to learn the basic pillars of Indian
industries. What are industries like? How do they perform? How are they
formed? Is to be known first and then comes how to manage its different parts
is to be learnt.
To learn and know all this, it is necessary for the students to visit
industries in different sectors.
I have visited Madhu Silica Pvt. Ltd. and have tried to present a
project report a solid proof of my visit, covering all the different parts of the
industry from the past of the industry said my experience of the visit.
Madhu Silica Pvt. Ltd
Uvesh Popatia
A cknowledgement I am feeling great pleasure in submitting this survey of Madhu
Silica Pvt. Ltd. as a part of practical study. This project helped me a lot in
acquiring valuable knowledge regarding silica.
I am so much thankful to GOD to give me enough strength so that I am
able to prepare my project report. I am also thankful to my parents, they
provide me all the facilities for my studies and they are always being guide and
best teachers for me. They are really my ideals.
I would like to thank Prof. SURESH BHAI SAVANI, managing trustee
of our college.
I am thankful to principal CHHAYA BEN PAREKH for providing me
educational as well as moral guidance, and give us such nice opportunity.
Dr. J.P. MAZMUDAR, he is our guiding teacher and help me at every
stage of my training, I am heartly thankful to him.
My special thanks to Prof. SHITAL BEN PAREKH for her warm help
and she is our permanent helper in even other educational activities.
My official thanks to Mr. RAMESH BHAI SHAH for give me
permission to visit his unit and give me enough information which needed. I
am also thankful to all the people of industry who directly or indirectly helped
me in my industrial training.
I am also thankful to whole the faculty staff who eveready to help me
when I needed help.
My warm thanks to JIGNA BEN GAJJAR for always motivating me
and also to NILESH BHAI TRIVEDI and MATANGI BEN DAVE for give us
official information and always co-operate me.
Madhu Silica Pvt. Ltd
Uvesh Popatia At last, I am thankful to the countless people who directly or indirectly
help me in the completion of my project training.
Perhaps language is the device that can give only the slight view about
it, but I have done it with my best effort.
Thank you.
Signature:
Madhu Silica Pvt. Ltd
Uvesh Popatia
C ompany P rofile HEAD OFFICE : 40, G.I.D.C. Estate Chitra, Bhavnagar-364004 Gujarat, India.
PHONE : (0278) 2445415 2445437 2446161
FAX : (0278) 2446159 2569183 GRAM : Madhu
E-MAIL : [email protected]
WEB SITE : www.madhusilica.com
BANKERS : State Bank of Saurashtra H.D.F.C.
Madhu Silica Pvt. Ltd
Uvesh Popatia
I ndustry F amily 1. MR. RAMESH SHAH -Managing Director
2. MR. DARESHAK SHAH -Executive Director
3. MR. BHARAT RAWAL -Technical Director
4. MR. VINOD SHETH -Research & Development Manager
5. MR. DHANANJAY BHATT -Administration Officer
6. MR. PRAVIN PARMAR -Account Manager
Madhu Silica Pvt. Ltd
Uvesh Popatia
…Index … Candidate’s statement
Preface
Acknowledgement
Company Profile
Industry Family
GENERAL INFORMATION
HUMAN RESOURCE DEPARTMENT
MARKETING DEPARTMENT
FINANCE DEPARTMENT
Contribution of Unit to the Industry
My Experiences on the Visit
Madhu Silica Pvt. Ltd
Uvesh Popatia
G eneral I nformation
Madhu Silica Pvt. Ltd
Uvesh Popatia
G eneral I nformation 1. History and Development of unit
2. Size of unit and form of organization
3. Manufacturing process and products
4. Organization structure
5. Time keeping system
6. Employee services
Madhu Silica Pvt. Ltd
Uvesh Popatia
H istory and D evelopment of
U nit Madhu Silica Pvt. Ltd. established in 1971 named MADHU
CHEMICALS as a small scale partnership unit. After establishing its name as
a manufacturer of calcium carbonate, from 1978, Madhu Chemicals diversified
into the production of specialty inorganic chemicals, especially silica-silicate
based chemicals.
The changes in the firm came when the next generation promoter
joined the firm, he was Mr. Ramesh Shah. The commercial production of
MFIL range of precipitated silica to suit the requirements of rubber industry
began in 1978. Ten years later; in 1988 saw the rechristening of the company
to Madhu Silica Pvt. Ltd.
Expanding its physical boundaries, the company’s manufacturing
unit lies spread in the covered area of 1500 msq. The setting up of AQUAGEL
CHEMICALS LTD. in 1992 and DSIR (Department of Scientific and
Industrial research) recognized govt. of India approved RESEARCH AND
DEVELOPMENT CENTRE in 1996 speaks volume of the growth orientation
of the company.
MSPL’S MFIL range precipitated silica’s now find their way to
toothpaste food and pharmaceuticals, cosmetics pesticides and detergents,
Madhu Silica Pvt. Ltd
Uvesh Popatiaplastics, inks and paints, footwear rubber goods and tyre industries to name a
few.
Thus, on the road of development from 1978, when the company
diversified, the promoters established AQUAGEL PVT. LTD. in Navagam
with equity partnership of HLL (Hindustan Liver Limited) to manufacture
silica on 1992.
In 1996, they started R & D Department, and in same year up
gradation of spray dryer was done. In 2001 new planned was commissioned. In
2003 yet another plant was set up in Bhuj manufacturing soap. This plant has
been record breaking as the whole plant was set up only in time period of 6 to
7 months, generating its own desired electricity by windmills. Now in 2005,
they are planning to set up 100% export oriented unit to be set up in Chitra
with the capacity of producing 10,000 p.a. of dental grade and 5,000 tons of
rubber grade silica.
Madhu Silica Pvt. Ltd
Uvesh Popatia
S ize of U nit and F orm of
O rganization Madhu Silica Pvt. Ltd. is a medium scale industry covering about
1500 square meter land. One plot is solely consisted of R & D Department
building where as other two plots consist of the whole manufacturing body
joined with the registration office.
As far as the form of the organization is concerned, in the beginning
the firm was started as partnership but gradually got transformed into private
limited company.
Madhu Silica Pvt. Ltd
Uvesh Popatia
M anufacturing P rocess and
P roducts In Madhu Silica Pvt. Ltd. the production process is much more
advanced. The regular up gradation of the machinery is done; the latest one
was done in 1996. The production process of the company has also under gone
vast changes. The explanation of the production process is view as below.
Soda + Silica sand (reacted)
Sodium silicate glass + Steam
Sodium silicate slurry + Sulphuric acid
Silica precipitates out
Reacted silica slurry + Filtration and washing (water + salt gets removed
during filtration)
The cake is dried in flash dryer / cake is converted into slurry and spray
dried
Product pulverization if required & packing.
Madhu Silica Pvt. Ltd
Uvesh Popatia
The product so manufactured by the company is precipitated
silica is mainly used as filler.
O rganization S tructure
Managing Director
Technical Executive Chief R & D Director Director Executive Manager
In charge of Laboratory R & D Commercial In charge Assistants
Account Laboratory Assistants Assistants
Administrative Plant Maintenance Head Supervisors Head
Office staff Workers Assistants
Madhu Silica Pvt. Ltd
Uvesh Popatia
T ime K eeping S ystem Madhu Silica Pvt. Ltd. is basically a day and night industry. So, the
work for administrative staff starts from 8.30 a.m. to 5.00 p.m. For labourers
there are three shifts from 8.30 a.m. to 4.30 p.m., from 4.30 p.m. to 12.30 a.m.
and from 12.30 a.m. to 8.30 p.m. Workers in the shirt get 1 hour lunch break as
well as the workers in the shift changes.
Being a company competing at an international level, there are very
few holidays in the company. Administrative staff works for 6 days a week
where as the manufacturing goes on for 7 days.
They have only 8 holidays in a year. For the supervisory staff, there
are very few holydays. But they do get leave for a specific or worthwhile
reason.
Madhu Silica Pvt. Ltd
Uvesh Popatia
E mployee S ervices No much detailed information is given in this section except some.
To get more out of workers recent trend in the private sector is that they have
workers on department basis but pay them on contractual basis. But no such
things exist in the industry.
As the management is involved with the day-to-day work their
relationship with workers is very cordial, open and friendly. They are always
ready to help one another if time demands. The employees are majority
regional, upto certain extent relatives of present employees are also employed.
Mostly the new employee is kept under the guidance of experienced employee
and is given charge of their work. The employee is kept under supervision of
his seniors and is guided for their work. Performance of the worker is apprised
basically by giving them financial and material rewards. There are less chances
of getting promotion in the dress of performance appraisal, because there is
less opportunity of getting promotion in this industry.
Madhu Silica Pvt. Ltd
Uvesh Popatia
H uman R esource
D epartment
Madhu Silica Pvt. Ltd
Uvesh Popatia
H uman R esource
D epartment Madhu Silica Pvt. Ltd
Uvesh Popatia 1. Introduction
2. Recruitment, Selection and Induction
3. Training and Management development
4. Job description (management level only)
5. Promotion and transfer policy
6. Performance appraisal system
7. Wage and salary administration
8. Working of E.S.I. scheme
9. Study of provident fund scheme
10. Grievance handling procedure
11. Personnel Records
I ntroduction
Madhu Silica Pvt. Ltd
Uvesh Popatia1. Total number of employees : Permanent 145 Temporary 55
2. Type of employees : Skilled 45 Unskilled 155
3. Qualifications of employees : Middle schools to Chemical Engineers
4. Approx. age group : 25 to 40
5. Bonus : Yes
6. Provision of Records : Yes
7. Training needed and given : Partially
8. Promotion opportunity : Internally yes
9. Insurance applicability : Yes
10. Provident fund : Yes
11. Register I.D. Maintained : Yes
Madhu Silica Pvt. Ltd
Uvesh Popatia
R ecruitment, S election and
I nduction Madhu Silica Pvt. Ltd. is medium scale company. No, more
detailed recruitment selection process is undergone. Applications are invited
and kept as a record interview of candidates is also taken.
Recruitment is done both internally and externally, but the
employees are majority regional. Upto certain extent relatives of present
employees are also employed.
As far as induction is concerned, mostly the new employee is kept
under the guidance of experienced employee and is given charge of their work.
Madhu Silica Pvt. Ltd
Uvesh Popatia
T raining and M anagement
D evelopment According to the ability of the employee, training is imparted to him.
The training programme is less formalized. Mostly the employee is kept under
supervision of his seniors and is guided for their work. Once in a year seminars
of ISO trainer and experts in various fields are held. Register regarding the
presence of the worker during the seminars is also maintained.
In this seminars they are mostly given information about their safety, how to
use new machinery, managing breakdowns, avoiding accidents and
introduction of new technologies coming up in their field.
Sometimes important seminars regarding quality control and research
and development, employees are sent to attend these lectures by the company.
Madhu Silica Pvt. Ltd
Uvesh Popatia
J ob D escription The worker is apprised basically by giving them financial and
material rewards. There are less chances of getting promotion in the dress of
performance appraisal. There is less opportunity of getting promotion in this
company.
The records maintain the performance of the worker is appraised
by giving them financial rewards. Once in a year the labours are given 5 to 10
kgs. Of wheat, rice etc. Depending on the rule, some times proportionate
amount of salary is deducted because of the employees’ long and informed
absence at work.
They include in it the attendance of the workers, which informed
the management about their performance. It also includes their salary records,
training records, attendance regarding their presence in special seminars.
Madhu Silica Pvt. Ltd
Uvesh Popatia
P romotion and T ransfer
P olicy
Regarding the transfer policy, Madhu Silica Pvt. Ltd. has only one
production site, so there is no question of transferring the employees.
Sometimes the employees are transferred internally i.e. - different departments
of the company. This is also done when some adjustment has to made
regarding the running of some equipment or to adjust for some employees who
are on leave or are absent.
At Madhu Silica Pvt. Ltd. the employees are promoted not by their
post but by their salary. There is an increment in their salary but not by change
in post. Sometimes there are changes in posts also but they are very few.
Generally their post or designation remains the same.
So, the managing director decides the increment in the salary.
While the increment is to be given, the employee behavior, way of working
etc. is observed and than accordingly he is given the increment.Madhu Silica Pvt. Ltd
Uvesh Popatia
P erformance appraisal system Performance of the worker is appraised basically by giving them
financial and material rewards. There are less chances of getting promotion in
this industry.
In short, as per the records maintain the performance of the worker
is appraised by giving them financial rewards. This known by the events like
common lunch, hanuman kathaa, which is to be attended by people, like M.D.
to SHOP FLOOR worker.
Madhu Silica Pvt. Ltd
Uvesh Popatia
W age and S alary
A dministration No much detailed information is given in this section, except some.
Employees and workers are paid salary on monthly basis according to
government minimum wage act.
To get more out of workers recent trend in the private sector is that
they have workers on permanent basis but pay them on contractual basis. But
no such things exist in this company. Though they do sometimes need workers
on contractual basis for unloading the raw material.
Madhu Silica Pvt. Ltd
Uvesh Popatia
W orking of E.S.I. S cheme The employee states insurance scheme is compulsory for all the
manufacturing units who have more than 10 employees or more than that.
Madhu Silica Pvt. Ltd. provides the E.S.I. according to the rules laid
down by the government.
1.75% of the employees’ salary is deducted and the company adds
another 4.75% to this amount. Moreover in this scheme, if any of the worker
meet with an accident, their medical bills paid under E.S.I.
Regarding the providend fund the government rules are of deducting
8.33% from the salary of its employees. As per the rules laid by the
government, every organization that has employed more than 20 people has to Madhu Silica Pvt. Ltd
Uvesh Popatiacompulsory pay the providend fund to its employees. This minimum that any
company has to provide to its employees. No company can deduct less than
8.33%
Madhu Silica Pvt. Ltd. provides 12% of providend fund to its
employees. This providend fund rule is compulsory for all the manufacturing
units. The providend fund is provided to the employees on their retirement.
S tudy of P rovident F und
S cheme The employee states insurance scheme is compulsory for all the
manufacturing units who have more than that.
Regarding the provident fund, the government rules are of deducting
8.33% from the salary of its employees. As per the rules laid by the
government, every organization that has employed more than 20 people, have
to compulsory pay the provident fund to its employees. This is the minimum
rate that any company has to provide to its employees. No company can deduct
Madhu Silica Pvt. Ltd
Uvesh Popatialess than 8.33%. This rate is as per the rule of the government regarding the
provident fund.
Madhu Silica Pvt. Ltd. provides 12% of provident fund to its
employees the provident fund rule is compulsory for all the manufacturing
units. This provident fund provides to the employees on their retirements.
G rievance H andling
P rocedure
Grievance handling means if any dispute arise, the way of handling
such situations and the necessary steps to solve the problems which are
Madhu Silica Pvt. Ltd
Uvesh Popatiacreated. Here both, the manager and the employee sit together and solve the
problem.
Madhu Silica Pvt. Ltd. in which all the employees can directly
approach the directors if any problem arises. The directors try to solve their
problems that the employees are satisfied upto the possible extent.
Madhu Silica Pvt. Ltd. keeps very good relationship with its
employees. All the employees are satisfied with the working of the company
and the management. The company does not keep any employees in the dark.
The company takes advice from its labour lawyer.
This procedure helps the company to maintain good relations with
its employees. This procedure must be in such way that there is no loss of time
and production.
P ersonal R ecords Personal records of each and every worker are maintained here. It
includes attendance of the workers, which inform the management about their
performance. It also includes their salary records, training records, attendance Madhu Silica Pvt. Ltd
Uvesh Popatiaregarding their presence in special seminars and even details regarding their
family is also maintained.
M arketing
D epartment Madhu Silica Pvt. Ltd
Uvesh Popatia
M arketing D epartment 1. Product Planning
2. Market Segmentation
3. Pricing Policies
Madhu Silica Pvt. Ltd
Uvesh Popatia4. Channels of Distribution
5. Sales Promotion
6. Advertising
7. Market Research
P roduct P lanning In this firm, there is separate R & D Department for development of
new products and researches. The need of customers for the different grades of
silica is identified and accordingly they are produced and tested at the R & D
Madhu Silica Pvt. Ltd
Uvesh Popatiacenter. If the customer approves the sample, then block production is done in
the factory. Here the R & D center plays a very important role in launching
new products. This was about producing and manufacturing new products.
Most of all manufacturing and producing present product is done on
the basis of orders received. Though as such much of the goods are produced
more than required so that at some stage due to some break down if at all, the
firm is not able to produce, spare goods may be used to meet their supply.
M arket S egmentation To any marketing of a firm, an understanding of its market and
market dimensions is undoubtedly very important. However aggregates of
buyer-seller relationship and consumer demand, though important, lose much
Madhu Silica Pvt. Ltd
Uvesh Popatiaof relevance when decisions are to be taken in relation to a specific consumer
or consumer group. It is so because consumer differ so widely in terms of
space, time, perception and value that ownership is possible only when these
differences are known and cared.
Madhu Silica Pvt. Ltd. has also divided its market accordingly, as
silica is an industrial product; the segmentation is done on the bases of
different industries using silica. The industries using silica are Tyre industry,
Tooth paste industry, Pesticides, Pharmaceuticals, Detergents, Salt, Rubber
rollers, Conveyor belts etc. They have further divided these industries into big
users and small users of silica. Silica is an end use application product as a
result the segmentation accordingly. The company is able to identify its
different markets and able to reach many customers. The company has
distributors in the main cities of the country. These all distributors are
connected internally and they act accordingly.
P ricing P olicies Being a private limited company, I can’t give much information
about the pricing of the product.
Madhu Silica Pvt. Ltd
Uvesh Popatia Madhu Silica Pvt. Ltd. being the largest silica manufacturing
company has to complete international giants not only at national level but also
at international level. These giants have about 40 to 50 plants set up world
wide and so can afford to lower down price to the maximum extent.
Thus, this company has to set up its price more on the basis of
competitors than on their supply and demand.
C hannels of D istribution Distribution channels play a very important role in achieving the
marketing objectives. Undoubtedly value utility is created by the manufacture
Madhu Silica Pvt. Ltd
Uvesh Popatiaof product or service but distribution channels create time and place utilities.
Both the market and the distribution channel are often more crucial than the
product. The channels of distribution are primary and the product is secondary.
The channels of distribution create a value added to almost all the products.
The company has accordingly divided channels so as to meet
customers’ demands.
The company has the P>A>C type of channel.
Where, P= Producer
A= Agent
C= Customer
There is an Agent in between the Producer and the Customer. The
company has similarly set up the Agents in various locations of the India. In all
of the big cities in India, the company has appointed agents who act as a
connecting link between the producer and the customer.
List of customers are :
Tooth paste : HLL, Geoffiney Manners Ltd., Nepal Liver Ltd.
Pesticides : Bayer(India) Ltd., Excel Industries, ICI surfactants.
Pharmaceuticals : Glaxo(India) Ltd., Smith Kline Beechen Pharmaceuticals, E-Merk(India) Ltd.
Tyre : MRF, Ceat, Apollo.
Detergents : HLL, Uni Liver - Srilanka
Rice Rubber Rollers : Parkman Group, Mahalaxmi Group, Tirumala Polymers.
Conveyor Belts : Relaxo Group, Josco Group, Turbo Industries.
S ales P romotion
Madhu Silica Pvt. Ltd
Uvesh Popatia Product manufactured by this company is not a fast moving one, so
there are less promotional schemes. Sales promotion schemes for this company
can be termed as negligible. The only promotional point they give is pricing.
This benefit is specifically given to the regular customers buying above certain
limit.
A dvertising Madhu Silica Pvt. Ltd
Uvesh Popatia This company manufactures a producer’s based product, so no such
formal advertising of the product is undergone. Mostly publicity of the product
is done via dealers, professional meetings with directors of the customer
company’s, participating in trade fairs and advertising on net and sometimes in
news papers.
M arket R esearch Madhu Silica Pvt. Ltd
Uvesh Popatia The company as such is under taking market research. Some times
samples of competitors are collected and investigated for the different
proportions of mixture and quality of their product is checked.
Some times even consumer surveys are taken. Questionnaire is
prepared and filled once collected and even meeting with the dealers is done so
as to know the response of the customers and even with the directors of other
company’s to get their direct response.
F inance D epartment Madhu Silica Pvt. Ltd
Uvesh Popatia
F inance D epartment 1. Introduction
Madhu Silica Pvt. Ltd
Uvesh Popatia2. Accounting system
3. Financial planning
4. Capital structure
5. Working capital management
6. Cash and Bank management
7. Fixed asset management
I ntroduction Approximate capital invested : 25 to 30 crore
Madhu Silica Pvt. Ltd
Uvesh Popatia Capital invested by : Owners and Bankers
Provision of depreciation : RBM method (Reducing Balance Method)
Rate of depreciation : Depending on Machinery
Approximate working capital : 6 crore
Approximate fixed capital : 12.96 crore
Tax paid : Monthly
Rate of excise : 16%
Approximate turn over of 2005 : 24.57 crore
Auditors : P.G. Hemani
Bankers : SBS, HDFC
A ccounting S ystems
Madhu Silica Pvt. Ltd
Uvesh Popatia Any company should select the proper accounting system for its
financial transactions. If the selection of the accounting system is appropriate,
than only that system is beneficial for the company.
Madhu Silica Pvt. Ltd. has selected double entry system of
accounting. All the day to day accounting procedures are done on a daily basis.
The company has computerised double entry accounting system. All the
entries in the computer are done on daily basis. There is a system of collecting
the information for the data to be entered in the computer. All the financial
information is collected first from all the departments and than the accounting
work is carried forward. The balance sheet is prepared on the monthly bases,
because of this company does not have to face any difficulty at the end of the
year.
All the debtors’ and the creditors’ list are also prepared. So,
whenever the company wants any information about the accounts, we can
obtain the computer information very quickly.
F inancial P lanning Madhu Silica Pvt. Ltd
Uvesh Popatia There is not much detailed information about the financial aspects of
the company is given. But some of the minor questions were being answered.
Some of them are accounts prepared by the company are annually done and in
accordance with the rules of the government. They prepare accounts according
to English method. Their financial position is sound and it is a profit making
unit. They transfer amount to reserves depending upon the percentage of profit.
One of the financial aspects is inventory management; the company
carries on this aspect. Inventory is maintained in proper proportion; so that
without being much capital blocked in it, the goods can be supplied just in
time. Finance management says that each and every event in the firm should
be carried out just in time, but just in case due to some or the other reason if at
all the production can’t be carried out stock reserves are maintained to meet
the demand and supply of goods just in time.
Their monthly sales is around 800 tons and the ratio of assets and
liability of the company is 2:1 which shows that the company is trust worthy
and sound.
C apital S tructure Capital structure can affect the value of the company by affecting its
expected earnings. Any company will have to decide on its capital structure Madhu Silica Pvt. Ltd
Uvesh Popatiavery efficiently. While it is true that financing mix can’t affect the total
earnings of a firm as they are determined by the investment decision. It can
affect the share of earnings belongings of the shareholders. The capital
structure decision can influence the value of the firm through the earnings
available to the share holders. The importance of an appropriate capital
structure is thus obvious. There is a view point that strongly supports the close
relationships between leverage and value of a firm. In other words, there is
northing such as optimum capital structure.
The capital structure of Madhu Silica Pvt. Ltd. is planned in a very
appropriate way. Earlier the capital was divided into two parts. First owned
capital and second borrowed capital. It had 50% owned capital and 50%
borrowed capital. The borrowed capital was only of the bank loan. The rest
was the owned capital.
At present the company has 100% owned capital. At present the
company capital is 25 to 30 crores. The company has paid back all its loans to
the bank and now it has totally owned capital.
W orking C apital
M anagement Madhu Silica Pvt. Ltd
Uvesh Popatia Working capital management is concerned with the problems that
arise in attempting to manage the current assets. The current liabilities and the
inter-relationships that exist between them. The term “current assets” refers to
those assets which in the ordinary course of business can be or will be turned
into cash within one year without under going a diminution in value and
without disrupting the operations of the firm.
The working capital management at Madhu Silica Pvt. Ltd. is
according to the standard. The company has enough current assets to pay of its
current liabilities. The company provides credit for a period of 30 days to its
customers. Most of the payments are received in time and so it does not creates
any problem for the company. The company has planned its working capital in
such a way that it does not have to face any problem regarding the working
capital management.
Madhu Silica Pvt. Ltd
Uvesh Popatia
C ash and B ank
M anagement Cash and bank management is done of the key areas of working
capital management. A part from the fact that it is the most current liquid asset.
It is the common denominator to which all current assets can be reduced
because the other major objectives of cash managements are two folds. First to
meet the cash disbursement needs and second to minimize funds.
Madhu Silica Pvt. Ltd. handles cash and bank very carefully.
Regarding cash, the company has the petty cash system. All the small expenses
are done in cash. That includes the miscellaneous expenses such as office
expenses and other day to day expenses. Whenever the company needs cash,
the only income for the company in cash is from the bank. The company
withdraws cash from the bank, whenever it needs. All the payments of the
company are in form of bank draft only. So, it does not have any income in
form of cash.
As the company receives all its payments in form of bank draft, it
has to maintain its bank account very well. Every month the bank account is
cross-checked, so that if there is any error, it can be caught. Most of the
expenses are done in cheques. The payment sent to the creditors is also in
cheques. The company has a cash credit account in the bank. The company has
to give a stock statement to the bank every month because the cash credit is
given by the bank on the stock of the company.
Madhu Silica Pvt. Ltd
Uvesh Popatia
F ixed A sset M anagement Assets may be described as valuable resources owned by a business,
which were acquired at measurable money cost. Here as the name suggests
such assets are fixed in the sense, that they are acquired to be retained in
business on a long term basis to produce goods and services and are not for
resale.
The total assets of Madhu Silica Pvt. Ltd. are worth of Rs.12 crore and
96 lakhs. This includes all it assets including the land, building, machinery,
equipment, R & D department instruments etc. The company has a policy of
wealth maximization. The company has increased a lot of its assets. The
company is constantly increasing its assets.
Madhu Silica Pvt. Ltd
Uvesh Popatia
C ontribution of the U nit to
the I ndustry In India the company’s manufacturing silica MSPL is one of the largest
silica manufacturing company. Only few companies in India are in this field.
Its contribution to the industry is that it increases value of India in front of
foreigners by competing with some of the international giants.
Second and most important contribution of the company to Indian
government is the generation of foreign exchange.
Third contribution of the company is it generates employment and
fourth is it assists the smaller units in its field in testing the rubber compounds
in its R&D laboratory.
Madhu Silica Pvt. Ltd
Uvesh Popatia
M y E xperiences on the V isit My experience on the visit of the Madhu Silica Pvt. Ltd. was really
very pleasant. The atmosphere in which I had been was very friendly. After
visiting the industry and knowing things about the industry, it was hard to
believe that such a big company competing at an international level with its
customers like pepsodent, close up, and MRF tyres could have been situated in
Bhavnagar.
With very ease Ms. Neepa Mehta had been supplying the
information except for some of the financial staff, which normally private
companies do not give. While visiting the company only thing I felt that the
company does not have is its publicity. It may be because of the manufacturing
of producer’s goods. Thus, completing my project I would like to say is my
visit was very comfortable and knowledge imparting.
Thank you.
Madhu Silica Pvt. Ltd
Uvesh Popatia
Madhu Silica Pvt. Ltd