Professional Documents
Culture Documents
At
SHAH PULP AND PAPER MILLS LTD, VAPI
(FROM 1ST MAY 2010 TO 10TH JUNE 2010)
SUBMITTED TO:
VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT
GUIDED BY:
FACULTIES OF B.B.A
SUBMITTED BY:
PRIYANKA TANWAR
ARADHANA SINGH
VANRAJ SOLANKI
VAIBHAV PATEL
SAURABH SINGH
DECLARATION
that has fulfilled the needs of our learning desires and has made us
ACKNOWLEDGEMENT
2
We are heartily indebted to all the employees of the
shah pulp and paper Mills Limited, especially Mr. P. R. Mallaya
who is the finance manager of the company. Mr. Mallaya has
supported us during the entire training session and provided
us all the needed information that can help us in completing
the project report. Besides him all the employees of the shah
pulp and paper mills Limited co-operated with us and helped
us as much they could.
CONTENTS
Sr no. Particulars
1. Objectives of the project
2. Introduction of the firm & details
3. Organizational structure
4. No. of departments
5. Production department
6. Quality control department
7. Finance department
8. Marketing and sales department
9. Human resource department
10. Conclusion
11. Suggestion
12. Annexture
3
• TO LEARN HOW TO INNOVATE YOUR IDEAS AND
FULFILL THE MAIN OBJECTIVE OF THE ORGANISATION AND ALSO
THE PERSONAL GOALS.
• TO BECOME A HUMAN ASSET.
4
• Sourcing World—class Raw Material from
Internationally Reputed Manufacturers.
• To enter the new phase of challenge driven by
commissioning of additional capacity.
• Creating strong R & D department to develop new
kind of qualitative paper.
• To ensure customers success, provide specially
designed process by which the customer receives
quality products, on time and adequate quantity
Shah pulp and paper mills Limited supplies to all major and
leading newspapers in India as newsprint is the major segment
of the industry where as substantial demand and supply exist.
5
Plant performance
The Company initially started this unit with an installed
capacity of 16500 TPA. Subsequently looking to the newsprint
demand and supply in the domestic market and to remain
competitive with the other newsprint manufacturer, the
Company has made investments regularly in the existing plant in
due course of business. The Company has borrowed term loans
from IDBI, GIIC and SBI time to time for their expansion project
to increase the installed capacity of the plant as well as to
produce better quality of newsprint.The Company has
concentrated on quality and quantity. The Company has
increased the installed capacity of the plant from 16500 TPA to
18000 TPA in the year 1998-1999, 19800 TPA in the year 1999-
2000, 24750 TPA in the year 2000-2001, 26400 TPA in the year
2001-2002 and 29700 TPA in the year 2002-2003 to 2003-04 and
33250 TPA in 2005-06. Currently, the installed capacity of the
plant is 36000 TPA.
CORPORATE OFFICE:
ANGELINE APARTMENT,B/202,
JUNCTION OF OLD POLICE STATION ROAD
& SAROJINI ROAD,VILE PARLE(W),
6
MUMBAI:400056
E-MAIL:SPPML@SIFY.COM
SHAHPULP@GMAIL.COM
PLANT ADDRESS:
PLOT NO.97,SILVASSA ROAD,
GIDC,VAPI-396 195
GUJARAT(INDIA)
TELO260)2425858
ORGANISATIONAL STRUCTURE
7
OF SHAH PAPER MILLS LTD.
BOARD OF
DIRECTORS
MANAGING
DIRECTOR
DIRECTOR
SUPERVISORS STORES
MACHINE ACCOUNT
OPERATOR MANAGER
ACCOUNTS
WORKERS
ASSISTANT
LABORATORY COMPUTER
INCHARGE OPERATOR
ASSISTANTS CASHIER
TELEPHONE
OPERATOR
NO OF DEPARTMENTS
8
SR NAMES OF THE DEPARTMENTS.
NO.
1. Production department
2. Quality control
3. Finance department
9
PLANS OF PRODUCTION
10
For example, if 100kg of a particular raw material is required by
production department, stores will give it if it’s available
otherwise it would place orders to its supplier of raw material.
PRODUCTION PROCEDURE
11
Sorting
RM loaded to pulp
mill
Dying process
Refining
Fan pump
Wire
Dryer
Rewinder
final product
QC
DISPATCH
12
TYPES AND CLASSES OF MATERIAL HANDLING EQUIPMENTS.
“controlled movement of material from receipt, through
storage and production and up to the shipment of finished
products is known to be MATERIAL HANDLING”
The equipment used for this purpose is called material
handling equipments.
In SHAH PULP the following materials are used
1. CLASSIFICATION ON THE BASIS OF FORM OF MATERAIAL:
According to classy there can be three broad categories:
For solid materials
o Lifts
o Conveyer belts
o Drum trolleys
13
o Lifts
Manual system
o Hand carts
14
♦ Time of arrival of material
♦ Purchase order date
MATERIAL RECEIPT PROCESS
As the goods enter the company premises G.R.N. is
prepared.P.O. i.e. purchase order is compulsory to receive
the material. The material entered is kept on weighing
machine and verified whether the qty is okay, it is then
unloaded in stores.G.M. is informed about the receipt of
material.
MATERIAL ISSUE PROCESS
Material issue process is simple in SHAH PULP. The plant
which needs any material, be it RM , they give a requisition
slip to the inventory department. On the basis of the
requisition slip inventory department allocates material to
the concern department according to REQ.NO i.e. requisition
number. As the material is issued on the port as all the
material comes through ship.
15
This level consists of maintaining machines at a regular period
of time. It includes checking of bearings, belts and other such
parts. this activity is done periodically.
2. PREVENTIVE MEASURES:-
It is an activity where parts of machines are repaired or
replaced before they are actually gets damaged and result into
some large and serve losses. For example :- welding of any part
before it is damaged completely.
3.BREAK DOWN:-
If any plant machinery undergoes breakdown, the plant in
charge or production head will inform maintenance department
through break-down slip. After receiving the slip, maintenance
department head would send his workers to breakdown area. In
the breakdown slip following details are filled:
Machine details, timings of breakdown, nature of breakdown.
16
QUALITY CONTROL SYSTEM
QC is mostly done of three levels. In shah pulp, the quality of
the material is checked at RM level, work-in-process level and
finished goods level.
1.RAW MATERIAL:-
17
For controlling the quality of the material, it starts testing the
RMthe company uses for manufacturing its goods. After
purchase dept. receives the RM ordered previously, it prepares
G.R.I.N., Showing amount of goods i.e. RM entered in the
company.
This is stored in the warehouse making store head aware of the
details of the material.
The store head prepares format of RM, G.R.I.N. and is
forwarded to the QC dept.
As QC dept. receives RM, G.R.I.N. it takes a sample of the RM
from store for testing purpose.
Each RM has to posses certain specifications. The presence and
absence of each specification is monitored while QC dept. does
testing.
The RM used are mixed waste, old news papers, over issued
newspapers, magazines. The RM is imported from foreign
country like European, Latin and U.S.A.
2.WORK-IN-PROCESS MATERIAL:-
In shah pulp everyday, production head, QC head, and unit
head have meeting and decide the product to be manufactured
for that day. The different types of chemicals are used to
remove the printed ink on the paper like hydrogen peroxide,
bleaching powder, diesel, washing powder.
In QC dept, premix sheet is prepared, which includes :
♦ Number of RM required for the product
♦ Name of the RM
This premix sheet is sent to the prod. Dept. and according to
the details stated prod. Dept. order’s RM from stores and prod.
Starts.
18
As and when required, prod. Dept. sends work-in-process
samples to QC dept. for testing. Here also different tests are
applied for different goods and its different grades.
After testing QC MEMO is prepared where the result of the test
are mentioned. It also states if any specifications are missing in
the product. If there is any drawback, it is also marked in QC
MEMO. This is sent to the prod. Dept. they make the
modifications in its manufacturing and do further production.
3.FINISHED GOODS
After final product is manufactured, it is also tested by QC
dept. in the final product same specification as in semi-finished
product are required only few additional mechanical properties
are required like:
♦ Tensile strength
♦ Cross bracking strength
♦ Electrical strength surface
♦ Volume strength
♦ Shrinkage is detected
After testing these properties in the final product QC dept.
verbally informs prod. Dept. about the reliability of the
products and get “daily production deposition slip” from the
prod. Dept.
19
Now finally, when the product is forwarded to the prod. Dept.
after being approved and then the final product is forwarded to
dispatch dept.
And their the final product is packed and dispatched according
to sizes and different qty.
DOCUMENTS KEPT IN QC DEPT
♦ goods receipt no.
♦ goods received inspection report
♦ premix sheet
♦ QC MEMO
♦ Daily production deposition slip
♦ Certificate of product conformity
20
FINANCIAL POSITION OF THE FIRM ON THE BASIS OF KEY
WORKING CAPITAL RATIOS
21
For imported stock:
Average Stock
X 365/ On average, company turns over the value of its entire
Cost of =[(833*+2210*)/2] = 96 stock every 96 and 42 days.
Goods 5800* X (365) days
Sold
Obsolete stock, slow moving lines will extend overall
Stock Turnover For indigenous stock: stock turnover days. Faster production, fewer product
(in days) lines, just in time ordering will reduce average days.
Average Stock
X 365/
Cost of =[(644*+223*)/2] = 42
Goods 3768* X (365) days
Sold
22
Current Assets are assets that the company can readily
turn in to cash or will do so within 12 months in the
course of business. Current Liabilities are amount
company is due to pay within the coming 12 months.
For example, 1.5 times means that company should be
Total Current Assets/ able to lay its hands on Rs1.50 for every Rs1.00
Total Current = 4754* company owe. Less than 1 times e.g. 0.75 means that
Liabilities 2611*
= 1.82 company could have liquidity problems and be under
Current Ratio
Times pressure to generate sufficient cash to meet oncoming
demands. But the ratio shows that company is in good
position.
*THE AMOUNT GIVEN IS IN LAKH
(Inventory + Receivables
- Payables)/
Working 25 % of This percentage means that working capital needs are
Sales =2677*+1115*- 1904*
Capital Ratio Sales not so high relative to company’s sales.
7661*
*(THE AMOUNT GIVEN IS IN LAKH)
23
WORKING CAPITAL RATIOS SHOWING LIQUIDITY OF THE FIRM
The current ratio is also known as the working capital ratio and
is normally presented as a real ratio. That is, the working capital
ratio looks like this:
We got the ratio 1.82: 1 for the year ended 31 March 2009 was
to divide the current assets by the current liabilities and that
gives us:
475,378,55
Current assets
=4 =
1.82
Current 261,172,65
liabilities 3
24
So we automatically know that the ratio is 1.82: 1
311,525,54
Current assets
=9 =
2.08
Current 149,242,32
liabilities 8
25
The Acid Test Ratio:
The acid test ratio is also known as the liquid or the quick ratio.
The idea behind this ratio is that stocks are sometimes a
problem because they can be difficult to sell or use. That is, even
though a supermarket has thousands of people walking through
its doors every day, there are still items on its shelves that don't
sell as quickly as the supermarket would like. Similarly, there
are some items that will sell very well.
We'll look at the stock turnover ratio in detail later but here's
the acid test ratio for The Shah pulp and paper mill.
We can take the figures we need from the current ratio section
and then do the calculations. Here are the acid test ratios for the
year ended 31 March 2001:
Acid Test Ratio For The Shah pulp and paper mill.
26
NOTE: *THE AMOUNT GIVEN IS IN LAKH
The fact that the differences between the current and acid test
ratios are too large tells us that the Shah pulp and paper mill
stocks are too large. The stocks are worth around Rs. 2,677 lakh
in 2009,BUTsince current assets are Rs.4,754 lakh, that's a huge
level of stock holdings. But yes the difference between the
current ratio and acid test ratio in 2009is lower as compare to
2008,so this is a good indication for the company.
Additionally, the acid test ratio has increased over the two-year
period, meaning that the Shah pulp and paper mill has a
stronger liquidity position than it had before. Normally that is a
good thing.
Bottom of Form
27
Return on Working Capital:
28
Creditors: Amounts falling due within one 1,904 1,064
year
Provision for taxation 369 282
Other liabilities 338 146
2,611 1,492
Total liabilities
Interest
Rate of * 25 * 1 * 100 =
= earned = = =
interest 100 100 100 5%
Amount saved 500 20 20
29
(ROSF) just as easily if we wanted, but generations of
accountants consider it as ROCE.
There is the Calculation of ROCE for the Shah pulp and paper mill
now; and here are the figures:
For 2009
For 2008
30
ROCE for the year 2009is almost 26% that’s a good percentage
by all standards. This is a good result as it shows that the
business is effectively earning around 26% on the (investment)
funds that the shareholders have invested in the Shah pulp and
paper mill.
31
Average
Stock Stocks
=
Turnover (Cost of
Sales/365)
32
because If there's less stock to worry about, lower investment in
stocks meaning that the money they used to have tied up in the
stock room is now free to spend somewhere else. But now large
amount of investment is done in inventory, company should do
check upon it.
There are good reasons why the company allows people to pay
on credit even though literally it doesn't make sense! If the
company allow people time to pay their bills, they are more
likely to buy from it than from another business that doesn't
give credit.
The length of credit period allowed is also a factor that can help
a potential customer decide whether to buy from your company
or not: the longer the better, of course.
Why is credit control so important? For the Shah pulp and paper
mill total amount owing by debtors was Rs.1115lakh at the end
of 31 March 2009,which as a percentage of total assets, is
12.09%. That's a lot of money in absolute terms.
Average
Debtors'
= Debtors
Turnover
Credit Sales/365
We have to assume, by the way, that all sales are credit sales
unless we know which sales are for cash.
The calculations:
34
Creditors' Turnover Ratio:
Average
Creditors'
= Creditors
Turnover
(Cost of Sales/365)
35
Creditors Turnover Ratio for the Shah pulp and paper
mill
31 March 2009 1,904 100 days
6,960 ÷ 365
31 March 2008 1,064 57 days
6,810 ÷ 365
2009 2008
(In lakh) (In lakh)
Other incomes 42 24
2009 2008
36
(In lakh) (In lakh)
Cash at start 27 22
Where
Hence
37
Creditors’ deferral period=1904/(6960/360)=100 days.
(In crores)
38
2008 92
2009 82
S A L E S S C E N A R IO
S A LE S
TU R N O V E R , 1 ,
1 0 0 0 0 0 00 0 0 S A LE S
920000000
TU R N O V E R , 2 ,
9 00 0 0 00 0 0 82 0 0 0 0 0 0 0
8 00 0 0 00 0 0
7 00 0 0 00 0 0
6 00 0 0 00 0 0
YEAR
SALES
5 00 0 0 00 0 0
S A L E S TU R N O V E R
4 00 0 0 00 0 0
3 00 0 0 00 0 0
2 00 0 0 00 0 0
1 00 0 0 00 0 0
Y E A R, 1, 2008 Y E A R, 2, 2009
0
1 2
YEA R
39
SOURCES OF
FUNDS
SHARE HOLDERS (in (in
FUND crores) crores)
Share capital 11 11 0 100
Reserves and surplus 17.38 18.85 (1.47) 7.79
Total 28.38 29.85 (1.47) 4.92
LOAN FUND
Secured loans 16.93 2.29 14.64 639.3
Unsecured loans 12.65 4.69 7.96 169.7
Total 29.58 6.98 22.6 323.7
APPLICATION OF
FUND
Gross block 43.96 46.58 (2.62) 5.62
Less: depreciation 15.44 17.53 (2.09) 11.92
Net block 28.52 29.05 (0.53) 1.82
Investments 51.39 50 1.39 2.78
Land 2.76 2.76 0 100
Tax 54.34 11.04 43.3 392.2
Current assets 4.754 3.115 1.639 52.61
Less : current 2.611 1.492 1.119 75
liabilities
Net current assets 2.143 1.623 0.52 32.03
GRAPHICAL REPRESENTATION
40
800000000
700000000
600000000
500000000
S e rie s 1
400000000
S e rie s 2
300000000
200000000
100000000
0
YEAR L IA B IL IT IE S A S S E TS
41
TYPES AND CLASSIFICATION OF PRODUCTS
42
They have a dealers network. They export their products to Sri
lankans and china.
♦ PRIME
♦ SUPER DELUX
♦ SPECIAL SUPER DELUX
CATEGORY OF NEWSPRINT
1.PRIME:- it’s the most used paper category by the local and
small print media centers. It’s the lowest in quality, cheaper in
price & light shaded. It uses mixed & ONP(old news paper).
43
SALES PROCEDURE
♦ Grade
♦ Quantity
♦ Rate
♦ Date
♦ Mode of payment
♦ Mode of dispatch
♦ Transporter’s name
♦ Freight, etc.
MARKETING CHANNEL
44
SHAH PULP & PAPER LTD. Deals with consumer products.
Therefore, only one marketing channel exists.
MANUFACTURER
DEALERS
CUSTOMER
FINAL CONSUMER
DOCUMENTS OF SALES:-
♦ INDENT
♦ INVOICE
♦ GATE PASS
♦ FORM 45(SALES TAX)
45
is against the sea form or else 5% tax is to be paid. 0.15% transit
insurance is paid.
PURCHASE PROCEDURE
♦ Previous experience
♦ Customers’ recommendations.
♦ Data source available on internet.
46
The re-evaluation of the supplier is done on the basis of the
quality performance of the supplier. The quality rating is
calculated on a monthly basis.
PURCHASING INFORMATION:-
♦ Specifications
♦ Price
♦ Quantity
♦ Packing
♦ Delivery date
♦ Mode of transportation
♦ Credit
♦ Quality system requirement. If any
♦ Verification of purchased product.
♦ Purchase order
♦ Purchase register
♦ Indents
CUSTOMER’S LIST
SR.NO. NAMES
2 Divya bhaskar
3 Dainik Bhaskar
4 Jagaran group
5 Lokmat etc.
47
6 Bombay samachar
SUPPLIER’S LIST OF
RAW MATERIAL
1. Mayur paper mart
2. Paras papers
CHEMICALS
1. Agarwal coal corporation
2. Maheswari builders
3. G.M.D.C
4. Kemoax corporation
5. Nikhil epec chemicals
6. Shah chemicals
STORES &
SPARES, WIRES
& FABRICS.
1. Paper international
2. V.G. recycling group
3. Gautam enterprises
PRICE LIST
48
PRODUCT PRICES
49
HUMAN RESOURCE PLANNING
50
1. Determining job specifications
2. Analyzing job responsibility and workload.
3. Forecasting human resource demand & supply.
4. Finalize the no. of personnel required with eligibility.
Staff 71
workers 185
TOTAL 606
RECRUITMENT PROCEDURE
51
When the head reveals a vacancy, the first step in this direction
of employing people is requisition of workers for the vacancy
arises. This requisition should clearly state the following:
SOURCES OF RECRUITMENT
In SHAH PULP & PAPER LTD. They firstly make a study of the
vacancy with regard to its urgency and need and decide whether
it should be fulfilled through internal or external source.
52
SELECTION PROCEDURE
1. General interview
2. Application blank
3. Depth interview
4. Medical test
♦ DEMOTION
53
In SHAH LTD. When a new employee is placed, he has to spent
three days in each department to understand the overall
function and methods of the organization and staff.
METHODS OF TRAINING
54
VESTIBULE
TRANING
TRAINING
FULFILL
MENT
SEMINARS
CONDUCTE
D BY
ASSOCIATI
ONS
55
In this system each employee is provided with a particular card
and has to punch his or her card as they enter and exit the
company premises. It is done at the entrance in the security
room.
56
COMPENSATION STRUCTURE
BASIC _
HRA 10%
CONVEYANCE 10%
MEDICAL 5%
PF 12%
ESIF 6.5%
BONUS 8.33%
WELFARE ACTIVITIES
57
The following services are being provided to SHAH LTD.
Employees:-
ACCOMODATION FACILITY.
SAFETY FACILITY such as gumboots, masks, apron for lab
technicians etc.
MEDICAL FACILITY as the employees are provided with
group medical insurance and yearly medical checkup for all
employees is mandatory.
REST ROOMS
PURE & COLD DRINKING WATER.
LUNCHROOM for staff and workers.
ADEQUATE LIGHT AND VENTILATION FACILITY.
UNIFORMS to workers at production area.
CONCLUSION
58
475,378,554- 261,172,654= 214205900
59
customer decide whether to buy from that company or not: the
longer the better, of course.
60
but company’s reputation, the quality of service and
any flexibility provided by its suppliers may suffer.
61
SUGGESTIONS
ANNEXTURE
62
63