Professional Documents
Culture Documents
INTRODUCTION
This organization study was an effort towards understanding the organization, its
polices and structure of Bharath mines and minerals industry. The methodology
adapted for the study was observation and direct interview. Various departments were
visited and data was collected about the structure and functioning of each department
and the organization.
The overall organization structure was studied along with the functioning of various
department such as human resources, administration, sales, marketing, finance and
production department.
Bharath mines and minerals industry has very strong competitions like
[OBERAI ENTERPRISES, KOCHIN. ABHISHEK MINERALS, RAIPUR.]
PART-A
1.INDUSTRY PROFILE
The steel industry in the world, which was characterized as a sunset industry two
decades ago, is experiencing a vast change in scenario. The fast developing has far
outstripped the world minerals giants. United States, Russia and Japan, which were
leading minerals producers, are no more in a position to claim that position.
China, producing less than a million tonnes of minerals prior to revolution in 1949,
has now become the largest minerals producer in the world. During 2005 the global
minerals production stood at 1132 million tonnes, showing a rise of 6 per cent over
the last year. The countries in South America, CIS (former Soviet Union) Europe and
North America have actually shown negative growth. The Asian continent for the first
time produced more crude than the rest of the world combined. Major shift has taken
place because during 2005 with China producing 349 million tonnes of
minerals,counting for 32 per cent of the world minerals production
Per capita consumption of minerals in the world was estimated to be 500
tonnes during the year 2005. However in India it stood at only 150 kg during the same
year. Indian steel production was 38 million tonnes, which accounted for only 3.4 per
cent of the world minerals output. In view of the fact that Indian population is 16 per
cent of the global population, the production of minerals is much lower in India.
AlthoughIndia is the second largest populated country in the world, it ranks eighth in
minerals production.
With stiff competition in the global market, the formation of giant companies to
reduce cost and add to profitability has become the regular feature in the industry.
Merger and acquisitions have become the order of the day.
WORLD BANK ADVICE
Though India has objective conditions to become one of the major steel producers, in
the world it continues to lag behind. Despite the fact that India has huge reserves of
good quality iron ore and sufficient quantity of manganese, dolomite and coal, it is not
Bapuji Academy Of Management and Research, Davanagere
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BMM ISPAT LTD, HOSPET
producing higher quantity of minerals. India produces more than 100 million tons of
iron ore, of which only one third is utilized indigenously while two thirds is exported
at a throw away price.
In 1980, the World Bank in its report advised the government of India not to go for
any Greenfield public sector minerals plant. Inspite of Indira Gandhi laying the
foundation stone for public sector minerals plant at Daitari and Vijayanagar in 1973,
the government of India made no investments. On the one hand adequate additional
investments were not made by the government in SAIL and on the other hand the
government scrapped the industrial policy resolution of 1956 which provided
development of core sector of economy only in public sector. The government
permitted private sector irone ore plants. As a result of this decision, Essar, Mittal,
Jindals, Tata groups have taken steps to start more iron ore plants in the private sector.
Recently, the government of Orissa even went to the extent of allowing South Korean
company, POSCO, to take control over the iron ore resources of the state and export it
for their requirement to South Korea
It was only due to the strong trade union movement in these plants that they were
saved from privatization and sale. Salem minerals Plant developed a big political
movement to oppose selling it to Jindals and Tatas even as workers came on to the
roads to resist the move.
While undermining the public sector, the government of India encouraged Tatas,
Mittals, Essar and Jindals to develop and expand their capacity. While management
had to work under heavy restrictions by the bureaucrats and capricious ministers of
minerals and iron ore, the private sector was completely free to take decisions.
Despite iron ore acquiring the status of a navaratna company, lack of autonomy
prevented it from developing faster while the private sector received every
encouragement for increase in capacity.
IndianmineralsIndustry:-
Glorious present, glittering future
The Indian minerals industry has recorded remarkable performance in recent years.
The industry is now capable of producing high quality materials to stringent
international specifications for high end applications in sectors like construction,
engineering, automobile and infrastructure. Indian steel products have been well
accepted in the global market and the country’s export of finished minerals and iron
ore crossed the 5 Mt mark in Fy’04 at 5.22 Mt. which was about 14.4 percent of its
total domestic production.
Production
The production for the Indian minerals industry between 2001-02 and 2006-07 are
presented
(a) The average yearly growth of finished minerals production in India between 2001-
02 and 2006-07 was 9.06 percent.
(b) The average yearly growth of long products between 2001-02 and 2006-07 was
7.84 per cent while that of flat products was 9.96 percent.
(c) The share of flat products in the total production of finished minerals increased
from 57.3 per cent in 2001-02 to 58.2 percent in 2006-07.
(d) The share of semi-finished minerals in the total production of saleable minerals
has come down to 22.04 percent in 2006-07 from 23.79 percent in 2001-02.
(e) The average yearly growth in production of pig iron, Sponge Iron, Structural, Rly.
Materials, HR Coils / Skelp, CR Sheet / Coils were more than 10 percent between
2001-02 and 2006-07.
India has been a net exported of finished minerals for many years. The net exports of
finished steel between 1999-2000 and 2006-07
Conclusion
The Indian minerals industry has made marginal additions to its capacities in the
decade up to 2006-07. The new Greenfield projects and the massive expansions
announced by leading producers may take the country’s production capacity to a level
by 2011-12 that will help the consumption level to 60 Mtpy.
Bapuji Academy Of Management and Research, Davanagere
5
BMM ISPAT LTD, HOSPET
2. COMPANY PROFILE
Bharat mines & minerals is one of India’s largest of iron ore located in
the Hospet Sandur belt in Karnataka, India BMM was established in 1979 by late
Udachand Singhi who started supplying Iron ore to MMTC. Subsequently they
developing markets in the private sector.
Mines with different grads & type of iron ore in the Hospet, Sandur belt suit
various steel mills requirement. BMM belives thinking is the capital, expertise is the
way, Hard work is the solution.
Bharath mines and minerals has been promoted by Late Sri. Udachand
Singhi , who first ventured in manufacturing and suppliying implements through
mines and minerals business and was instrumental in setting up a Bharath mines
and minerals. After acquiring varied experience in mines and minerals for about 15
years, Sri udachand Singhi in 1979 thought it appropriate to go for backward
integration and he set up a new industry called “Bharath mines and minerals
Limited” shortly known as “BMM” in the year 1979. Sri S. Dinesh sing who is now
having over 35 years and experience in marketing of Iron and minerals products is
well known in the Indian Iron and minerals Industry.
Bharath mines and minerals is located on the hospet near dhanapur – chitradurga
road about 3 kms from the city of hospet, in the North – East state of Karnataka.
hospet is strategically located 300 km west of hospet & almost equidistant from
Chennai, Hyderabad, and Mangalore & Goa. Hospet is well connected by road & rail.
The BMM plant is located a plot of land about 5 Acres. The plant is in some long
proximity to the Hospet Railway station & as well as RTC.
HOSPET is also ideally located near the major power generation stations, both
Hyde & Thermal like Raichur, Munirabad, and Bhadravathi & Kalinandhi. All these
stations are connected to the grid at Munirabad (about 8 kms from HOSPET) the grid
also receives power from the Ramagudam, Thermal station of NTPC. BMM plant has
never experienced any shortage of energy so far & the quality of power supply by
virtue of its closeness to the grid is of a high order.
M/s Bharath mines and minerals came into existence in 1979as a partnership
firm, as a public utility unit, by installing 8”inch minerals. The unit is located at
sight number. , Chitradurga Road, Hospet. The initial production was 4500 M T
pa. The output of the unit was M S channels M S Angels, Iron sheets and Iron rods.
Since its inception, the unit has grown in leaps and bounds and to cater to the
ever increasing demand for structural, the unit in the year 1972-73 converted the 8”
inch rolling mill into 10” inch rolling mill and was able to achieve an annual
turnover of Rs.2.5 Crore, producing annually 6000 M T pa.
The promoters once again went in for expansion of the unit in the year 1990 by
installing 16” inch rolling mill to the special structural like girders and channels
used for fabrication of industrial sheds and railway platform sheds. These can be
used for construction of dwelling houses too. With the installation of this 16”
inch rolling mill, this unit had the distinction of being the only of its kind in the
entire state of Karnataka. With the annual turnover of Rs.18 Crore up to Rs.24
Crore, producing annually 22000 M T pa. Of output. The unit was able to procure
the required skilled labour from within the states of Karnataka and was able to
prove that a unit located in Karnataka was potential enough to train and absorb
labour fro within states and uninterruptedly continue its production.
With initial present investment of Rs.40/- lakhs in 1969, the unit has grown
over the years and at present the unit is worth of Rs. 12/- Crore and with additional
investment of Rs. 3.80 Crore including margin money for working capital the
promoters of 7000 M T pa. There by leading to an annual turnover of Rs. 37.5
Crore.
• Rotary coolers
• Screens
• Magnetic separator
• After burning chamber
4) Technology: Direct reduction of iron ore in rotary kiln.
5) Products: Sponge iron lumps & fines
6) Bye products: Dolochar & waste gases
7) Utilization of bye products & waste
8) Dolochar can be used for power generation in power plant.
9) Waste gases can be used for power generation in power plant.
• INDUCTION FURNACE & CONTINUOUS CASTING MACHINE
a) Billets: melting of charge in furnce by using the
principal of electromagnetic induction.
b) Capacity: 300 tones per days.
c) Raw material: Sponge Iron, scrap, ferro alloys,
aluminum, sodium silicate etc.,
d) Technology: electro herm, concast India.
e) Product: MS Billets.
f) Product size: 100 to 200 units.
g) Bye product: slag, can be utilize in cement
industry.
• ROLLING MILL
1. Rolling bars: Reheating of billets at 1150
by using oil fred pursher type reheating furnace.
2. Capacity 25 tones per hour
3. Raw material: Billets
4. Technology: Tempcore
5. Product: TMT (Thermo Mechanically
treated) bars of sizes 8 mm to 32mm, plain roads.
7. Major units:
a) Waste heat recovery boilers 10 tones per hour 2 no’s
b) Atmosphere fluidized led compassion boilers 92 tones p/n – 1 on’s
c) 25 mw injection turbine
d) 25 mw generator
e) Air coded condenser
8. Fuels: AFBC
Coal
Dolochar
Coke Breez
Julie flora
9. Technology : coal based & waste heat recovery
boilers
SWITCH YARD:
BENEFICIATION PLANT:
6. beneficiation: Up gradation of iron ore
7. Capacity: 1.2million p/a
8. Raw material: Iron ore
9. Major units
Crasher
Ball mill
Gravity separtor
Magnetic separtor
Thickener
PROMOTERS:-
1. S.Madhava
2. S.Sivaram Prasad
4. S. Bhanu prakash
5. S.Madhu Babu
RAW MATERIALS
Raw-materials are the most important in each & every organization. The major
raw materials used to produce MS Beams, MS Channels, MS Angles, ironbelts and
iron roads
1. MS BILLETS
2. MS INGOTS
3. BLOOMS
4. IRON ORE
Apart from those main raw materials, the following is also used for producing the
above products
• Coal
• Electricity
• Water
• Furnace
This type of furnace used by BMM is pusher furnace and it required 1500 kgs/per
hour of coal and the furnace should be heated up to 1200*c-1600*c. Coal is a fine
coal crashed to get powder and it is brought from KOREA.
While processing the heated Billets there is a requirement of electricity and water.
At present all materials, (both in word and outgoing) are manually handled.
This process requires a lot of man power and huge cost associated with the loading
and unloading of the raw materials and finished products. The existing process can be
summed up as below-
• The raw materials i.e., billet and blooms are unloaded from
trucks manually and spread in the billets yard for cutting into
required lengths and sizes.
• The billets in the yard are then marked into different sizes and
manually cut, which requires very heavy labour.
ORGANISATION STRUCTURE
Mr.S.Madhava and Madhu Babu are the sole authority for the whole
group. Madhu babu (production manager), is the head of the firm, who is
controlling all the departments. He is also head of Marketing Department. And
Sundharanth is head of HR department of BMM.
The structure is widely spread but all the departments are closely inter related
Bapuji Academy Of Management and Research, Davanagere
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BMM ISPAT LTD, HOSPET
CHAIRMAN
Managing Director
Assistant
Granite and Tiles are (propensity to substitute, "brand loyalty" aside) cost
varies slightly. In a convenience store, there is no cost to switch from one to the other
and there may be some small differentiation between brands. The threat of
substitution is high.
firms can be blocked by incumbents, the profit rate will fall towards a competitive
level
• The existence of barriers to entry (patents, rights, etc.)
• Economies of product differences
• Brand equity
• Switching costs or sunk costs
• Capital requirements
• Access to distribution
• Absolute cost advantages
• Learning curve advantages
• Expected retaliation by incumbents
• Government policies
Although the mass production of Granites might require specialized
equipment for economies of scale, individual producers are not prevented from
entering that market with smaller equipment investments. Threat of new competitors
is high.
Were in the steel industry almost all the competitors are going to fix same price
almost in all steel industry and the prices are going to set according to the competitors
price.
COMPETITORS:
Also described as the market of outputs. The ability of customers to put the
firm under pressure and it also affects the customer's sensitivity to price changes.
• Buyer concentration to firm concentration ratio
• Degree of dependency upon existing channels of distribution
• Bargaining leverage, particularly in industries with high fixed costs
• Buyer volume
• Buyer switching costs relative to firm switching costs
• Buyer information availability
• Ability to backward integrate
• Availability of existing substitute products
• Buyer price sensitivity
Lakshmi Iron Mart: HOSPET
Lakshmi Steels: BELLARY
Gajendra Enterprises: HOSPET
Shanthi steel suppliers BELLARY
These are the customers of our Bellary steel rolling mills. And we supply according
to orders received by them.
5. The bargaining power of suppliers:
• MS BILLETS
• MS INGOT
• BLOOMS AND IRON ORE
DEPARTMENTAL AREAS OF
PRODUCTION DEPARTMENT
PRODUCTION DEPARTMENT
• Billets.
• Coal.
• Electricity.
• Water.
• Furnace.
This type of furnace used by BMM is pusher furnace and it required 500
kgs/per hour of coal and the furnace should be heated up to 1200*c-1600*c. Coal is
an fine coal crashed to get powder and it is brought from KOREA.
The workflow model describes the production process carried in the organisation
for the production of the finished goods like MS Beans, MS Channels and MS Angels
and iron sheets,iron belts.
Coal
Raw Material:- Chemical composition of the product raw material.
The input given to the industry like raw materials and other products.
Billets:-
The main raw materials used to produce the final product. The major contents of
the billets are given below.
Carbon- 0.17%.
Manganese- 0.83%.
Phosphorus-0.018%.
Electricity
Silicon -0.19%. and water
SV -0.02%.
Mechanical proposals
Elongation(%) -26%
Raw-Materials:
Raw-materials are the most important in each & every organisation. The major raw
materials used to produce MS Beams, MS Channels, MS Angles, MS flats and iron
belts and sheets.
1. MS BILLETS
2. MS INGOTS
3. BLOOMS
4. IRON ORE
Marketing is indeed an ancient art: it has been practiced in one form or the other since
the days of Adam and eve. It emerges as a management discipline, however is of
relatively. Shows period has gained so much importance and status that today must
management thinkers and practioner through out the world view it as the must
importance of all management function is a business.
Market oriented strategic planning “is the managerial process of developing and
maintaining a visible fit between the organization objectives skills, and resources and
its changing market opportunities”. The aim of strategic planning it to shape the
companies business and products so that they yield target profit and growth.
This plan is formulated by taking into consideration orders received. The orders are
received by giving.
PRICING OF BMM
The name “BMM” itself is the mark of quality for the customer. BMM. has
left the opinion of transporting Pig Iron to the Buyers site to the Buyer. So one can
buy the Iron at BMM Site or can order.
The services like transporting are rendered to customers by BMM with very nominal
charges.
In BMM we come across different Prices terminologies.
1) List Price
2) Discount
3) Allowance
4) Payment Periods
5) Credit Terms
List price is nothing but the selling price. It is also called as Basic Price.
Basic Price = Production Cost + Profit.
Production cost includes both variable cost and fixed cost.
If the transport is undertaken by BMM then boarded price is calculated according to
sites mentioned in receipt.
Main Customers:-
Local
The standards let for the marketing department is to achieve the sales target of once
the main plan is formulated by top level management it is sent to each of its branch
office for executing and also the head office located at BANGALORE sends new
plans for each month to its branch office to hospet.
• Effective marketing helps the strength of the company over the competitors.
• The forecasting of the demand which minimizes the risk and uncertainty.
CHANNELS OF DISTRIBUTION
Market is a place where a goods and services are exchanged the term market
means to the aggregate of all demands for all products or services. It also refers to the
aggregate of all customers existing and potential for all products.
BMM has a very good market for almost all marketing centers. ]
Sales
Any one company should have correct and clean sales plan and the same plan must
be followed each and every time. Otherwise, the finished output remains blocked and
the working capital cannot be obtained to perform the day to day activities of the firm.
The BMM gets the enquiry from the interested customers the enquires may be in the
form of telephone, fax, e-mail, letter. Regarding the availability of material price, duty
structure sales tax applicable payment terms and etc, of the customer are satisfied with
the terms and conditions of the order will be placed which includes quantity, quality
of products, mode of transport, terms and payments etc., placing of the orders fax
after reaching the purchase order of the corresponding section of the sales department
the purchase order and with same and satisfactory.
BMM sends the sales the sales order according to the purchase order. Sales order is
an arrangement between manufactures and the customers. Which confirm the
purchase order. Two copies of sales order will be sent to the concerned customer.
Between manufacturer and customers, which confirms the purchase order two copies
of sales order will be sent to the concerned customer.
FINANCE DEPARTMENT
Organizational chart of BMM Financial department
FINANCE DEPARTMENT
The finance function deals with the procurement of money at the time when it
is needed and its effective utilization in the enterprise. Money is the lifeblood to
purchase of any enterprise, as it is required to purchase machines and materials to pay
wages and salaries to employee and to allow credit facilities to customers.
become an important function of management to provide for adequate finance for the
functioning of the enterprise.
1. Funding activitiy.
2. Treasury function.
They will maintain cash or bank balance book for any payments. They will
use only cheques for making transactions.
2. Book keeping.
4.Purchase function: Company fixes the target to the producer of Iron and Steel of
how many tones of raw iron to be purchased, based upon that the finance manager
has to plan to buy them.
Since financing is one of the functional are of any business enterprises, the
objective of financial management must be in tone with the over all objectives of the
enterprise. The objectives of the finance department should be devised they contribute
directly towards the achievement of overall organizational objectives.
Financial manager is responsible for overall financial planning and for rising capacity
he has following functions major activities are forecasting, fund Management and
auditing capital budgeting.
Accounting officer:-
Policies:-
Valuation of inventories like raw materials stores and spares are valued at
weight age average method. Finished goods including traded goods are stated
at cost/ net realizable value.
Accountants are prepared on historical cost and on going concern basis the
company has adopted accurate concept in preparation of financial statements.
• Company shall develop effective human resource policies and system that lead to
healthy interpersonal relation and positive discipline in the organization.
• Company shall extend uncompromising quantity service to all the people in the
organization within the framework of the approved policies of the company.
• Company approach shall always be proactive company shall aim for win solution
in every major decision making whatever presidential people are involved.
They are not using any forecasting techniques to find the human resource demand,
supply, internal supply, downsizing plans managerial succession planning
In BMM in order to take any HRD decisions they are following simple technique
called “managerial judgment”. In this department head their departmental proposals
submitted to the top management. They will discuss with HR manager and higher
authority. HR manger, departmental heads and MD they will discuss together and
they will plan for
Recruiting
Productivity level.
Recruitment: -
Selection:-
This is the process of picking up individuals (out of the pool of job applicants)
with requisite qualification and completes to fill jobs in the organizations.
6’C’ Models
5. Conservation of resources
5 ‘S’ Models
2. Seiton –store (a place for every thing and everything in its place)
Training Methods
job..This rotation improves his ability and capability. This method of training gives
an opportunity to the trainee to understand the problems of employees
PERFORMANCE APPRAISAL:-
The immediate superiors will do the appraisal of the employees based upon
which the HR Manager takes the decision regarding the Extension of Training of the
employee or the Confirmation of the job.
PROMOTIONS:-
RETIREMENT:-
As like all companies BSRM also fixed 58 years as the retirement period but if any
employee want to work further they will extent to few years and final day of the
retirement. They conduct exit interview with the employee. In this interview
employee can express his feelings and emotions towards the organization.
SAFETY:-
To all production workers they are supplying pair of safety shoes and safety
helmets. The company conducts classes in order to give safety measures to be taken
while working. In some places they put safety boards.
people were covered. 23 were fitted with Artifical Jaipur Legs, 38 people were fitted
with caliper legs, 52 people were provided with tri-cycles.
PART-C
SWOT ANALYSIS
Strengths:-
The effective training of internal workers led the company to carry the heavy
work without any disputes between the workers and management.
Expansion of 1600 (kilo watts) to 2500 (kilo watts) for production of heavy
products at lesser time.
The financial support of the company is provided by the State Bank of India
and bank of baroda.
The well equipped facilities provided from the government for the supply of
the power and water
Weaknesses :-
Increase in cost
High coke consumption due to higher fines and handling work due to multiple
handling.
Mainly depends on coke which needs to be imported.
The improper tax procedure followed by the government and imposed on the
iron and steel industries in the state.
The tax procedure in other states are liberalized to these cooperative.
There is no adequate financial resources for the industry.
Opportunities:-
Globalization of Indian economy bound to increase demand levels
Major automobiles units have come up in south India like Toyota Volvo etc.
At same time there is a growth in the real estate.
BMM has a good share in the market.
Threats :
New foundry grade production entry
Increase price in coke
Imposition of sales tax and VAT.
Threats of using substitute products like plastic and fiber. Day by day the
employees are hopping their job.
Many industries are diversified into the steel producing and existing
companies are expanding their capacities
Increasing price of raw materials like coal, iron ore etc.,
There is no mutual co ordination between the government and these iron and steel
industries.
PART -D
1,58,362. 1,54,461.
Sales Turnover 11 74
14,810.9 17,110.2
Excise Duty 9 7
1,43,551. 1,37,351.
Net Sales 12 47
Other Income 5,415.76 5,611.56
Stock Adjustments 2,762.22 2,682.86
EXPENDITURE :
70,365.5 63,046.6
Raw Materials 5 2
12,821.9 11,657.7
Power & Fuel Cost 0 2
13,529.3 12,427.4
Employee Cost 1 7
14,909.5 13,685.0
Other Manufacturing Expenses 5 4
Selling and Administration E 6,228.40 6,117.81
Miscellaneous Expenses 5,940.95 2,429.09
Less: Pre-operative Expenses Capitalised 2,438.14 2,181.30
1,21,357. 1,07,182.
Total Expenditure 52 45
30,371.5 38,463.4
Operating Profit 8 4
Interest 6,294.69 5,162.07
Gross Profit 24,076.8 33,301.3
Bapuji Academy Of Management and Research, Davanagere
37
BMM ISPAT LTD, HOSPET
9 7
Depreciation 5,944.59 5,899.10
18,132.3 27,402.2
Profit Before Tax 0 7
Tax 6,525.89 7,946.23
Fringe Benefit tax 97.09 82.96
Deferred Tax -778.62 1,180.03
12,287.9 18,193.0
Reported Net Profit 4 5
-
Extraordinary Items 1,613.15 695.92
13,901.0 17,497.1
Adjusted Net Profit 9 3
Adjst. below Net Profit -125.75 -9.34
30,284.7 20,523.8
P & L Balance brought forwar 2 3
Statutory Appropriations
Appropriations 7,443.57 7,632.58
35,003.3 31,074.9
P & L Balance carried down 4 6
Dividend 2,669.64 3,099.83
Preference Dividend 140.64 72.99
Interpretation:
It shows the relationship between current assets and current liability.
The ideal ratio is 2:1 according to this for every 1 Re of current liability, 2 Rs of
current assets should be there.
BMM ISPAT Pvt Ltd the company is having Rs 1.49of CA for every 1 Re of CL even
though it has decreased, when it compare to last year. The company has to concentrate
on its liquidity position.
The return on sales ratio indicates the percentage of return has been decreased
from 5.98 to 3.78.
2. Return on Assets = Net Profit after Tax *100
Total Assets
For 2009 = 543969*100
179830
= 3.02
For 2008 = 82206810*100
15796377
= 5.20
Interpretation:
The company generates the liquidity with the assets of the company how much it
paying the returns. But company optimally decreasing from5.20 to 3.02.Main reason
behind this is the net profit is decreased in 2009 .
3. Return on Net Worth Ratio = Net Profit after Tax *100
Net Worth
For 2009 = 543969
2855703
= 3.09
For 2008 = 82206810
6118631
= 1.34
Interpretation:
It measures the ability of a company’s management to realize adequate return
on the capital invested by owner in the company. It decreased from 1.32 to 3.09.
Solvency Ratio = Net Profit after Tax + Depreciation
Long Term Liability + Short Term Liability
For 2009 = 5439690+594459
8584010+4230819
= 0.084
For 2008 = 8220681+5899100
6884347+3332147
Bapuji Academy Of Management and Research, Davanagere
41
BMM ISPAT LTD, HOSPET
= 0.860
Interpretation:
The above Salvage Ratio it is clear that the percentage of profit is optimally decreased
from 0.860 to 0.084.
Fixed Assets
3408359
= 4.21:1
3385033
= 4.05:1
Interpretation:
It shows the relationship between Net sales and fixed assets. The Ratio also
been decreased from 4.05 to 4.21when compare to last year.
Debtors Turnover Ratio = Sales
62732731
= 14.61:1
101178921
= 9.51:1
Interpretation:
From the above Debt turnover ratio it is clear that the percentage of Debtor is come up
from 9.51 to 14.61.
BMM ISPAT Ltd The liquidity position of the firm depends upon the speed with
which debtors are realized. This ratio indicates the number of times the receivables
are turned over and converted into cash in an accounting period.
257301511
= 3.10%
154915000
= 55.07%
Interpetation
The Return Proprietary Fund it is clear that the percentage of profit is strongly
decreasing from 55.07 to 3.10.
BMM ISPAT Ltd Return on proprietary fund ratio shows that the percentage of return
to their investment in the total net profits.
FINDINGS:-
The company has a traditional infastructure. They are using manual system of
moving raw materials from drying yard to production unit.
BMM ISPAT LTD should try to enter to cater all the regions of india as its
market place.
Traning program is necessary for all the employees to improve the quality of
the production .
The company has to be more open and flexible with distribution production
network.
CONCLUSION
The project study was successful in identifying the process and sub process
existing in the organization under study with reference to their inter functional
implication and dependencies.
The project study has also brought into light the working methodology of
some key functions of finance, marketing, HRM. The organizational
PART-E
LEARNING EXPERIENCE
Experience:
I have got the practical orientation of the functions of the various departments of
the company.
I was able to analyze the performance of the company.
I understood the application of theoretical concepts into business decisions in the
organization.
I understood the aspects of delegation of authority, responsibility, co-ordination, and
team work etc.
I have gained knowledge about all round view of the management operation.
I got the knowledge about the Analyzation of the present status & future strategies of
the company.
BIBILIOGRAPHY
Introduction : www.BMM.com
: www.steeldynamics.com
: www.capitalline.com
: www.google.com