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PVC PUMPS PVT. LTD.

, DAVANGERE

An Overview of Indian Pump Industry


Pumps play a dominant role in the sectors like agriculture, production of oil and natural gas,
petroleum refining, petrochemicals, power generation, domestic and household utilities, etc,
and contribute a major part in nations economy.
Rajiv C. Amin
Pump is not a new concept in the Indian industry. In fact, the Pichkari which Lord Krishna
and his playmates used for splashing colored water on Gopi's, can be termed as the oldest
reference to a pump concept, especially of the reciprocating plunger type. Thus, pumps must
be an Indian invention, but commercial production of pumps in India, as contemporarily
understood, is quoted to be way back in the first decade of twentieth century.

Manufacturing Scenario
Presently, the gross value of pumps production in India is estimated to be in the order of
US$ 450 million (approx. 1.2 million No.).The scales of production and corporate structures
of manufacturers range from the small scale industries, medium to large scale industries, both
in the unorganized sectors and also public sector units.
In terms of drive ratings, the range of manufacture extends from fractional horsepower
designs to large pumps of drive rating of the order of three MW. Almost all types of pumps,
manufactured internationally, are also made in India.

Demand and Supply Situation


Indian pumps have contributed to the nations economy significantly. Prominent sectors
amongst them are agriculture, onshore and offshore production of oil and natural gas,
petroleum refining, petrochemicals, mining, ship-building and marine duties, power
generation, public water supply and sanitation, domestic and household utilities, process
industries producing fertilizers, insecticides, pesticides, drugs and pharmaceuticals, textiles,
soaps and detergents, cosmetic and health care products, dairies, vegetable oil and processed
and packed food products, breweries, paints, etc.
Indian pump manufacturers seem to fulfill all the demands of pump-usage, since imports are
not very significant. Some special construction pumps of special materials used for special
duties like requirements of very fine vacuum are also imported. The quantities are small
although the unit cost of these pumps may be high.
Globalization of Indian economy increased enthusiasm of some importers to sporadically
import a few container-loads of run-of-the mill type pumps for agriculture and domestic
duties. However, those events do not seem to have caught any fancy in the Indian markets.
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Pump automatically gets imported with systems, not de-packaged for items that can be
procured indigenously. Yet,
Users do seek import substitutes due to the cost-effectiveness of Indian manufacture and for
better guarantee of support with respect to after-sales service.

Technologies, Collaborations and Indigenous R&D


Most of the world-renowned technologies have been operative in India. Majority of them
seem to be European, to name a few, KSB, Seltzer, Weir, SPP, Allweiler, Bornemann,
Alsthom, Stork, Terromecanica, Godiva, Pleuger, Grundfos, ABS, Flight, Denver Orion, etc.
Amongst them American, Japanese and Australian technologies can be sighted in
Worthington-Dresser, Ingersoll Rand, Goulds, Durco, Ebara, Asia LMI, Warman, etc. Indian
technical skills and engineering aptitudes have shown good capabilities of almost immediate
absorption of the involved design, manufacturing and quality control specifications and
application engineering needs. That gives a good picture of the internationally competitive
field already in play in India.
The Indian craftsman often enterprises in reverse engineering at very competitive costs.
Amongst the notable achievements of indigenous development and R&D can be cited, the
primary coolant pumps and sodium coolant pumps for nuclear power, large 2250 mm
delivery-size vertical turbine pumps and concrete volume pumps for cooling water circulation
in thermal power generation can also be cited.
Cavitations studies and CFD (Computational Fluid Dynamics) analysis of flow patterns at
pump suction and deriving improvements in pump and sump designs are all becoming
common practice.

Indian pump industry: Marching on the growth path


India has been a traditional producer of pumps with a seven decade history. However, it is
only with the recent globalization that the country is marking and increasing its presence in
the world pump market.
While major global economies are still feeling the effects of the 2009 recession, signs of
strength are occurring in the Indian economy. Investor confidence has largely been restored,
and investments that had been suspended due to the slowdown in demand are beginning to
pick up pace.
Water has become a crucial commodity in many regions, India not excluded. Emphases on
water quality, coupled with stringent wastewater discharge regulations, are creating
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opportunities for the water and wastewater space to see the potential for significant growth.
This creates an opportunistic scenario for pumps suppliers.

Reasons for pump market growth


India has been a traditional producer of pumps with a seven decade history. However, it is
only with the recent globalization that the country is marking and increasing its presence in
the world pump market. India produces more than two million pump units per year, with
about 95 percent of demand accounted for by domestic manufacturers and imports making up
the remaining percentage.
The water and wastewater sector is one of the top three end-user markets for pumps in India
and is expected to be a strong area of demand for pump manufacturers through the next
decade.
Several key factors are driving opportunity and growth in the Indian water and
wastewater industry, as well as the pump industry as a whole:
Maintaining and enhancing water quality: Increased regulations, efficient legislation and
pragmatic guidelines are expected to be areas of focus. This is important if environmental
degradation is to be eventually controlled and reversed. Compliance will become an
important measure for the industry.
Infrastructure expansion: Indias gross domestic product (GDP) growth has hovered at
about 8 percent, and infrastructure-related development investments in the 11th Five Year
Plan are planned in the multiple billions.

Challenges in water management, created by several factors:


1. Indias growing economy, increasing middle class, expanding infrastructure and vast
agricultural region are contributing to water challenges. India is the worlds largest
user of groundwater, using about 230 cubic kilometers every year (more than one
quarter of the global total). With the prevalent drought conditions in many arid states
due to inadequate rainfall, groundwater levels have been depleting at a rapid pace.
This is expected to increase demand for pressure booster and deep well submersible

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pumps to draw water from greater depths.

2. Urbanization of the country has lead to the migration of more than one billion people
from villages to major cities, creating pressure on the existing infrastructure,
including the delivery of utility water after removal and treatment of wastewater.
3. Rising consumption and decreasing supply of uncontaminated water is driving the
growth of desalination plants in this country, also a boon for pumps.
Indias emergence as a low-cost manufacturing hub India has a dual advantage of low-cost
labor and highly technical, skilled manpower. This is an enticing proposition to the western
multinational pump manufacturers that can set up manufacturing facilities and reduce
production costs by substantial levels. This scenario facilitates not only addressing the
increasing domestic demand but also in exporting pumps to neighboring regions, including
the Asian growth engine countries. Growing real estate/housing sector growth in this specific
portion of infrastructure is expected to increase demand for energy efficient water pumps,
offering both cost savings and reduction of carbon footprint.
Market challenges
While this market holds great promise for increasing pump revenues in the water and
wastewater space, many factors challenge sustained market growth. One is the continued
potential for political instability, which can have significant negative effects on projects
funded by the government. A change in government tends to delay or abolish planned
projects, particularly in the water and wastewater sector. A further issue is the inconsistency
in the implementation of environmental standards at the state level. This is a major restraint
on market growth in the most states dont have systems in place to monitor water pollution
levels sufficiently, systematically and consistently. Moreover, environmental agencies have
not been granted firm support or influential legislative mandates, limiting their capacity to be
effective. A lack of conscious efforts for the enforcement of environmental legislation can
affect the growth in the pumps market.
Projected growth
In spite of these issues, the overall Indian pumps market in the water and wastewater sector is
expected to continue in growth mode. The figure 1 shows forecast for this industry through
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2016. In figure 1, revenues in the base year of 2010 were an estimated 5,635.8 million Indian
rupees (INR), which translates, based on January 2011 conversion rates, to just under $124
million (which includes both centrifugal and positive displacement [PD] pumps). Currently
centrifugal is the bulk of this number, constituting approximately over 95 percent of
revenues. While growth is expected for both types of pumps, centrifugal units are expected to
continue to be heavily favored in demand. The compound annual growth rate for pumps in
this sector is forecast at just over 18percent, based on the growth trends indicated for the
country as well as the industry.

Centrifugal pumps play a pivotal role in municipal water supply and irrigation projects. With
many projects lined up in both these areas during the forecast period, strong growth is
projected for these units. PD pumps are largely confined to wastewater treatment and sanitary
requirements. Lack of awareness among end users and consultants about the energy savings
potential from these units is a deterrent for growth in this type pump. Overall, rising water
demand in India due to increasing population and rapid urbanization is expected to drive a
variety of infrastructure activities, from industrial/commercial/ municipal water treatment and
distribution to wastewater applications to desalination projects. Additionally, increased
regulations and more strict compliance enforcement point to a robust scenario for the water
and wastewater sector in India over the next decade.

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COMPANY PROFILE
3.1 BACKGROUND AND INCEPTION OF THE COMPANY
Name of the company

- PVC Pumps Private Limited

Year of Incorporation

- 1989

Board of directors:

- Mr. T.M Chandrakhanth


Smt. Latha
Smt. Sumithra
Smt. Parvathamma

Legal Status

- Private Limited Company

Unit Under reference

- Lokikere cross Davangere.

PVC Pumps private ltd is leading manufacturer and of Submersible pumps, PVC PUMPS.
PVC Pumps (P) Ltd in 1989 which is registered as a private limited company under
companies act.
Approach wise company will keep minute to minute touch with their associates whether it
may be creditors, Vendors, Customers, Employees to enable the company to achieve lasting
companionship.

3.2 NATURE OF BUSINESS CARRIED


PVC Pumps Private ltd is a Manufacture of Submersible pumps:
Submersible pumps
The product ranges are as below:

100 mm single phase pumps


100mm 3 phase submersible pumps
150mm 3 phase submersible pumps
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Open well 3 phase submersible pumps
Open well 1 phase submersible pumps
Self Fleming pumps
The material of pumps shall conform to the grades as per IS 8034 and 9283 are any other
standard as per customer requirements. The pumps capacity for 0.5HP to 20HP and installed
capacity 500 pumps per month.
The list is exhaustive however PVC PUMPS will make anything and everything clients look
for in precision Submersible pumps.
It includes purchase of raw materials and conversion of raw material into finished goods and
selling of finished goods into their clients.
PVC PUMPS purchase raw material from:
High-Tech Industries Jaipur
CVC Trading Co (Bangalore)
Kaveri Engineering Co
Minol Enterprises
Ganesh Engineering Works (Ahmadabad )

3.3 VISION, MISSION AND QUALITY POLICY


Vision:
To be the most successful submersible pump manufacturer/ supplier in Karnataka
Mission:
To manufacture and supply quality submersible pumps at right time to satisfy continuous.
Quality Policy:
To manufacture and supply quality submersible pumps as per Is-standards

at right

time to satisfy customer requirements through continuous improvements

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The quality policy was declared by managing director in a meeting of all employees called by
him on 25.03.2001. He explained the meaning of quality policy & intention of management
in terms of organisational commitment.
He explained the roles of each and every individual towards achievement of quality policy
through quality objectives.
The quality policy boards written in both English & Kannada are displayed in the
organisation at prominent places.
The deployment of quality policy among the staff is done through ground discussions.
Deployment of the quality policy among the workman is done through group discussion by
respective HOD.
We at PVC pumps private ltd are committed towards achieving total customer satisfaction
by providing quality product at right time, through team work at all levels of our
organization
PVC pumps have been giving a better quality product to their clients from many years. Since
they are producing better quality products, now they have already got ISO 9001:2008
Quality policy is realized throughout the organization by

Communicating the quality policy to all the employees in a systematic manner

Monitor and follow-up results on a continuous basis

Implementing continual improvement processes throughout the organization

Quality objectives of the organization are


To define and document customer requirements and review effectively so as to
ensure customer satisfaction.
To procure quality materials and services from approved sources.
To process quality products through continues monitoring and improvements in
process and technology.
Optimum utilization of resources to supply quality products consistently.
To work as a team and motive each other each other to common goal.
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To shoulder social responsibility by keeping safe and hygienic environment.
Optimal utilization of critical machinery as well as consistently meeting the customer

delivery requirements.

PRODUCT PROFILE
PVC PUMPS manufactures a wide range of pumps components based upon the specific
needs of their clients. The various products of PVC PUMPS are as follows:
Submersible pumps
The product ranges are as below:

100 mm single phase pumps


100mm 3 phase submersible pumps
150mm 3 phase submersible pumps
Open well 3 phase submersible pumps
Open well 1 phase submersible pumps
Self Fleming pumps

3.5 AREA OF OPERATION:

Plot No 1-C, K.IADB. Industrial Area,


Lokikere Road, DAVANGEREGE 577005

3.6 OWNERSHIP PATTERN:


Name of the shareholder

Relationship with promoters

Share in capital

Mr. Prasad

Promoter

60%

Mr. Vijayakumar

Cousin

20%

Mr. Chandrakhanth

Cousin

20%

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Competitors information
Asian Pumps Pvt Ltd,
Bangalore.
Vinayaka Industry,
Hiriyur.
Bairavi Industries,
Sondur.
INFRASTRUCTURAL FACILITIES:
All infrastructure facilities required to support the organizational processes are provided. This
includes buildings, workspace and associated utilities, process equipment, tools and
supporting services.
Area:
Unit 1: 2400 sq. ft built up area and 50000 sq. ft open area
Other facilities:

It has a separate plant and modern technology for producing product.

Rest room facilities

Water facility

Company provides security measures for employees.

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ORGANISATION STRUCTURE AT PVC PUMPS

MANAGING DIRECTOR

MANAGER

ASST.MANAGER

HOD -PPC

HOD PURCHASE

HOD - QA

SIC Stores

SIC - QA

HOD MARKETING

Chart No: 1 showing organisation structure Of PVC Pumps.

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FUNCTIONAL AREAS AT PVC PUMPS

5.1 PRODUCTION DEPARTMENT

5.2 FINANCE DEPARTMENT

5.3 MARKETING DEPARTMENT

5.4 HUMAN RESOURCE DEPARTMENT

5.5 QUALITY DEPARTMENT & QMS

5.6 MAINTENANCE DEPARTMENT

5.7 SUBCONTRACTOR & LOCAL LOGISTICS RECEIVING

Chart No: 2 showing functional areas of PVC pumps.

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PRODUCTION DEPARTMENT
STRUCTURE OF PRODUCTION DEPARTMENT AT PVC PUMPS

BOARD OF DIRECTORS

MANAGING DIRECTOR

OFFICE ASST.

ASST.MANAGER PRODUCTION

SUPERVISORS

OPERATORS
& HELPERS

Chart No: 3 showing structure of production department of PVC pumps.


PRODUCTION
Production is the process by which raw material and other inputs are converted into finished
goods.
PRODUCTION MANAGEMENT
Production management refers to application of management principles to the production
function in a factory. In other words, production management involves application of
planning, organizing, directing and controlling to the production process.
Production function can offer competitive advantages to a firm in the following areas:

Shorter new- product-lead time.

More inventory turns.

Shorter manufacturing lead time

Higher quality.

Better customer service.

Reduced wastages.

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PRODUCTION ACTIVITIES AT PVC PUMPS:
PVC PUMPS comprises of advanced production unit guided by assistant production
manager. The activities of production department start from production planning.

The responsibilities and authorities vested with production in-charge are as follows:

Daily production planning.

Production monitoring.

Review of non-conforming products.

Production as well as quality control.

Production equipment maintenance and repair.

Health and safety.

ISO Documentation.

Attending external audits.

MANUFACTURING (PRODUCTION) PROCESS AT PVC PUMPS:


The basic step involving in manufacturing process consists of:

Incoming Inspection

Cutting

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Lathing

Pressing

Winding

Assembling

Fitting

Quality Test ( Performance Test )

Painting

Packing

Forwarding

MANUFACTURING PROCESS FLOW CHART:


DISPATCH

RECEIVE
CUSTOMER ORDER

FINAL INSPECTION
PURCHASE PO TO
SUPPLIER

PACKING

RECEIVE RAW
MATERIAL FROM
SUPPLIER

PAINTING

RECEDICLARATION OF ISI
INCOMING INSPECTION
QUALITY TESTING
CUTTING

PERFORMANCE CHECKING

LATHING

PRESSING

FITTING

WENDING

ASSEMBLING

Chart No: 4 Showing Manufacturing Process Flow Chart.


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Customer order is received on monthly basis. Raw material and subcontract parts are received
through Invoice/DC as applicable along with the Self inspection reports or Test certificates,
where applicable.
Incoming Inspection:
Preliminary inspection is done by the stores personnel for verification of the part no, grade,
quantity, and packing etc. The discrepancies on the preliminary inspection is entered in the
DC/invoice and communicated to the supplier. For hardware no inspection except for
quantity carried out. Consumable and spares are inspected against, visual defects, brand
name, type code and quantity and updated in the Bin Card. Inspections of all incoming
material are taken up against the General Inspection plan and the respective drawings or
specifications. The results of the inspection are recorded. Tools are inspected for specification
and against drawings as necessary for the purchase of the same. On occasion of material
rejected at the incoming stage, a supplier Defect notice is raised and is forwarded along with
rejected parts to the supplier and the same is followed up by the QA In charge
Lathing

A lathe is a machine tool which rotates the work piece on its axis to perform various
operations such as cutting, sanding, knurling,drilling, or deformation with tools that are
applied to the work piece to create an object which has symmetry about an axis of rotation.
Lathes are used in metalworking, metal spinning, Thermal spraying/ parts reclamation, and
glass-working. Lathes can be used to shape pottery, the best-known design being the potter's
wheel. Most suitably equipped metalworking lathes can also be used to produce most solids,
plane surfaces and screw threads or helices. Ornamental lathes can produce three-dimensional
solids of incredible complexity. The material can be held in place by either one or
two centers, at least one of which can be moved horizontally to accommodate varying
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material lengths. Other work-holding methods include clamping the work about the axis of
rotation using a chuck or cullet, or to a faceplate, using clamps or dogs.
Examples of objects that can be produced on a lathe include candlestick holders, gun
barrels, cue sticks, table legs, bowls, baseball bats, musical instruments (especially woodwind
instruments), crankshafts, and camshafts.

PURCHASE DEPARTMENT
Purchase department is responsible for co-coordinating the acquisition of the goods and
ensuring that the management receives the beast value for its money spent on its goods and
services.
MISION OF PURCAHSE DEPARTMENT
The mission of purchase department is to purchase equipment, materials, supplies and
services when needed, in the Right Quality, in the Right Quantity, at the Right Price and from
the Right Source.

STRUCTURE OF PURCHASE DEPARTMENT AT PVC PUMPS


PURCHASE DEPARTMENT

MANAGER

ASST. MANAGER

Chart No: 5 Showing Structure Of Purchase Department At PVC Pumps.

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PURCHASE DEPARTMENT AT PVC PUMPS
Purchase department at PVC PUMPS involves highly qualified personnel for the best
purchase. Purchase department is concerned with purchasing all the materials required in the
operation of the company. Purchase includes both cash and credit purchase.
PVC PUMPS has developed a supplier evaluation form whose criteria should be met by the
required supplier based upon which supplier are selected i.e., approved vendor list is prepared
for those who are being selected.
Production department identifies the need for the raw materials and notice to purchase
department and finally purchase department take purchase action.
The responsibilities and authorities vested with purchase head are as follows:

Purchasing of raw material/brought out items.

Supplier corrective actions.

Attending external audits.

VENDORS LIST FOR SOME RAW MATERIAL


CAST IRRON SUPPLIERS:
GANESH ENGINEERING WORKS (AHAMEDA BADH)

BLACK PAIPS SUPPLIERS:


CVC TRADING CO (BANGALORE)

45 MM BASED STEEL SHAFT SUPPLIERS:


KAVERI ENGINEERING CO
MINOL ENTERPRISES

WENDING WIRES SUPPLIERS, SUBMERSIBLE 3 CORE PLANT CABLE


HIGH-TECH INDUSTRIES JAIPUR

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PURCHASE PROCESS AT PVC PUMPS

PURCHASE INDENT

PURCHASE ORDER

INWARD (MATERIAL)

QUALITY INSPECTION

GRN (GOODS
RECEIVED NOTE)
PREPARATION

Chart No: 6 Showing Purchase Process At PVC Pumps.

STORE DEPARTMENT
STRUCTURE OF STORE DEPARTMENT AT PVC PUMPS

STORE DEPARTMENT

MATERIAL HANDLER

Chart No: 7 Showing Structure Of Store Department At PVC Pumps.

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STORE
According to oxford dictionary definition:
Store as building where goods are kept.
Stores or storage is the function of receiving, storing and issuing material. Store is not meant
for stocking purchase material alone. Partly finished goods, finished goods, spares and
consumables stores are also kept in store.
FUNCTION OF STORES

To receive raw materials and account for them.

To provide adequate and proper storage and preservation to the various items.

To meet the demands of the consuming departments by proper issues and account for
the consumption.

To minimize obsolescence, surplus and scrap through proper codification,


preservation and handling.

To highlight stock accumulation, discrepancies and abnormal consumption and effect


control measures.

To ensure good housekeeping so that materials handling, materials preservation,


stocking, receipt and issues can be done adequately.

To assist in verification and provide supporting information for effective purchase


action.

VARIOUS TECHNIQUES OF INVENTORY CONTROL USED BY STORE HEAD

FIFO

LIFO

TWO BIN system

STORE DEPARTMENT AT PVC PUMPS


At PVC PUMPS all the material purchase are systematically stored by assigning certain
numerical codes to particular materials so that the required components/materials can be
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easily located at the time of requirement. Store department works in cordial relationship with
purchase and production department.

INVENTORY CONTROL TECHNIQUES USED AT PVC PUMPS

FIFO(First In First Out)

LIFO(Last In First Out)

The responsibilities and authorities vested with store head are as follows:

Receipt & issue of accepted materials.

Bin card maintenance.

Maintaining of minimum stock.

Monthly stock statement preparation.

Shelf life items monitoring and control.

Control of hazardous materials.

ISO Documentation.

Attending external audits.

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FINANCE DEPARTMENT
STRUCTURE OF FINANCE DEPARTMENT AT PVC PUMPS

ADMINISTRATIVE DEPARTMENT

ACCOUNTS

ASST. MANAGER ACCOUNT

ACCOUNT ASSISTANT

Chart No: 8 showing structure of finance department at PVC pumps.


FINANCE
Finance may be defined as the provision of money at the time when it is required. Finance
refers to the management of flows of money through an organization. It concerns with the
application of skills in the manipulation, use and control of money. Finance is so
indispensable today that it is rightly said to be the lifeblood of an enterprise.
BUSINESS FINANCE
Business finance can be defined as an activity or a process which is concerned with
acquisition of funds, use of fund and distribution of profits by a business firm. Thus, business
finance usually deals with financial planning, acquisition of funds, use and allocation of
funds and financial controls.
According to Guthmann & Dougall:
Business finance can be broadly defined as the activity concerned with the planning, raising,
controlling and administrating the funds used in the business.
The finance department has been the brain of the organization. Thats why it is called as the
lifeblood of the organization.
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The basic functions of financial department are as follows:

Monitoring the financial transaction.

Capital expenditure analysis.

Raising and managing the funds.

Working capital management.

Analysis and interpretation of financial statement.

FINANCE DEPARTMENT AT PVC PUMPS


PVC PUMPS has a well developed finance department which is headed by managing
director, director technical and assistant managers account. Finance department play an
important role in the functioning and coordinating of all department of the organization.
The total turnover of the company is more than 2 crores in the last 2010 2011.
PVC PUMPS has a well established finance department which is computerized using
TALLY.
Mostly used source of finance at PVC PUMPS is bank finance.
Major functions of financial department at PVC PUMPS are as follows:

Maintaining of books of accounts.

Bills payable.

Cash and bank payments.

Raw material purchase payments.

Dispatch documents.

Central exercise and sales tax.

Inventory and store evaluation.

ISO Documentation.

Attending external audit.

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MARKETING DEPARTMENT:
TYPICAL STRUCTURE OF MARKETING DEPARTMENT
MARKETING DIRECTOR

SALES
PROMOTION

RESEARCH

Chart No: 9 showing typical structure of marketing department.


MARKETING
According to American Marketing Association
Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.

IMPORTANCE OF MARKETING
IMPORTANCE OF MARKETING

To consumers

To society

To the firm
-Business planning and
decision making

-Provide information

-Provide employment

-Provide satisfaction

-Delivery standard of living

-Selection facility

-Protection from depression

-Developing successful
exchanges

-Increase standard of living

-Increases national income

-Helpful in increasing profits

-Creation of utilities

-Communication with society

Chart No: 10 showing importance of marketing.

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MARKETING DEPARTMENT AT PVC PUMPS
Every organization involves marketing department. However, the degree of marketing
depends upon the nature, product of the organization.
PVC PUMPS doesnt have any specialized or particular product i.e., product are designed
and produced as per the needs and order of the customer. So, PVC PUMPS lacks an effective
marketing department.
Major product of PVC PUMP is:

Submersible pump

The formulation of marketing strategies is originated towards the 4ps of marketing are
explained below
PRODUCT
Product is anything that can be offered to satisfy customer need.
PVC PUMPS doesnt deals with any particular types of product. Since it fabrication
based industry it produces any variety of products as per the design and need of
customers.
PVC PUMPS products are unique and high quality. It has designed its strategy
keeping in view the customer satisfaction and quality products released to the market.
The following features of the product are considered before releasing a product for
sale.
-

Quality

Brand

Packing

Design etc

PRICE
Price stands for the amount of money customers have to pay to obtain the product.
The marketing manager should determine the price in such a way that the firm is able

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to sale its product successfully. Pricing decision and policies have direct impact on the
sales volumes and the profits of the organization.
PVC PUMPS always sets reliable price for its product. Price for the product is sets by
the director of the company. Manpower time, raw material cost, transportation cost,
competitor price etc are taken in consideration before setting the final price for the
product.

PLACE
Place mix comprises the activities that make the product available to the target
customer. The place mix calls for selecting channels and outlets through which
products reach into the hands of the customers and arranging their physical movement
to different markets segments.
PVC PUMPS doesnt involve channel such as wholesalers and retailers and even own
retail outlets. It directly used the available transportation facilities to supply the
finished products.
PROMOTION
Promotion deals with informing and persuading the customers regarding the
organizations products.
PVC PUMPS doesnt involve any promotional activities. So personal or direct selling
is the best method for the company.

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PVC PUMPS PVT. LTD., DAVANGERE


5.4 HUMAN RESOURCE DEPARTMENT
TYPICAL STRUCTURE OF HR DEPARTMENT

PROMOTER

MANAGER

CLERKS

STRUCTURE OF HUMAN RESOURCE DEPARTMENT AT PVC PUMPS


HUMAN RESOURCE DAPARTMENT

PRODUCTION

PURCHASE

QUALITY & QMS

STORE

SUBCONTRACTOR
& LOGISTICS

MAINTENANCE

Chart No: 11 showing structure of human resource department at PVC pumps.


HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM is about managing people. It is concerned with
management of human energy and competencies.
According to Decenzo & Robbins:
HRM is responsible for getting competent people, training them, getting them to perform at
high effort level, & providing mechanisms to ensure that these employees maintain their
productive affiliation with the organization.
Basic HR function involves recruitment, selection, training & development, motivation,
performance appraisal, compensation management, labor relation/industrial relation,
employee welfare etc.
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PVC PUMPS PVT. LTD., DAVANGERE


HUMAN RESOURCE AT PVC
Human resource department at PVC PUMPS is managed under the control of manager Mr.
NAGARAJ. PVC PUMPS consists of highly experienced semi skilled staff directing the
operation in PVC PUMPS. All personnel go through regular training.
PVC PUMPS currently employed 10 employees as:

6 permanent workers including

4 temporary workers including

Team comprises of various individuals involved in various activities such as:

Raw material procurement staff.

Quality checkers.

Production specialists.

Machine operators.

Semi skilled & unskilled labors.

RECRUITMENT
According to Edwin B Flipped:
Recruitment is the process of searching for prospective employees and stimulating then to
apply for the job.
INTERNAL RECRUITMENT AT PVC PUMPS
At PVC PUMPS mostly the following internal recruitment takes place:

Employee referrals.

EXTENAL RECRUITMENT AT PVC PUMPS


PVC PUMPS mostly recruit employees externally through:

Labor contractor

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PVC PUMPS PVT. LTD., DAVANGERE

Besides, employees referrals too.

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INTERVIEWS conducted at PVC PUMPS are mostly

Face-To-Face interview.(oral)

Interview by assigning the actual task to perform to those who have gained
experienced in that field.

TRAINING & DEVELOPMENT PROGRAMMES AT PVC PUMPS


According to Dcenzo & Robbins:
Training is a learning experience in that it seeks a relatively permanent change in an
individual that will improve the ability to perform on that job.
PVC PUMPS spend adequate amount of time and money on training and development
programmers such as:

Once in a year safety training is conducted.

Orientation classes are conducted to make the new recruits adaptable to the
organization culture, organization environment.

Training from superiors

EMPLOYEE WELFARE/SERVICES AT PVC PUMPS


PVC PUMPS have good HR policies for employee salary & wages, Incentive, medical care,
accident relief and insurance as mentioned below:
Salary & wages depends upon qualification, level and experience of the employees.
At PVC PUMPS,
Minimum salary

Rs.4000 (Gross)

Maximum salary

Rs.15000 (Gross)

Bonus employees working for 1 month are eligible for bonus.


Bonus is calculated minimum 8.33%
Incentive is almost double of salary.
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PVC PUMPS PVT. LTD., DAVANGERE


Employee state insurance (ESI) scheme of INDIA is a multidimensional social security
tailored to provide socio-economic protection to worker population and their dependents
covered under the scheme.
ESI is applicable for only those whose gross salary is less than Rs.15000. premium is not
refundable. ESI premium is calculated on the gross pay (salary) as:
1.75% of gross pay-----Employee side
4.75% of gross pay------Employer side
Medical care includes ESI scheme, First aid box.
PVC PUMPS provides cool and safe drinking water, washing and well maintained toilet
facilities within the company premises.
Uniform is provided twice a year.
SAFETY AND HEALTH MEASURE AT PVC PUMPS

PVC PUMPS is highly concerned about employee safety and health measures.
For ensuring safety and health they provide:

Safety shoes.

Gloves.

Safety training once in a year.

Eye care glasses.

First aid box

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PVC PUMPS PVT. LTD., DAVANGERE


QUALITY DEPARTMENT AND QMS
STRUCTURE OF QUALITY DEPARTMENT AT PVC PUMPS

QUALITY DEPARTMENT

QUALITY MANAGER

Chart No: 12 showing structure of quality department at PVC pumps.


QUALITY
Quality may be defined as sum total of features of a product which influence its ability to
satisfy given demand. Dimension of quality includes performance, features, reliability,
serviceability, appearance, customer service, safety.
QUALITY CONTROL
QC refers to all those functions or activities that must be performed to fill the company
quality objectives. It is an approach to prevent the defects rather than detecting the defects.
QUALITY CONTROL AT PVC PUMPS
Quality policy of PVC PUMPS
We at PVC PUMPS private Ltd are committed towards achieving total customer
satisfaction by providing quality product at right time, through team work at all levels of our
organization.
QC department of PVC PUMPS includes highly qualified and experienced work
force. They consistently monitor and verify all components at every phase of the
manufacturing cycle from inception of raw material to final inspection of Finished Goods.
The responsibilities and authorities vested with QC head are as follows:

Inspection of incoming, process and finished goods.

Preparation of inspection Reports.

Attending the customer complaint.

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PVC PUMPS PVT. LTD., DAVANGERE

Interact with customer on non- conformities.

Interact with supplier on quality issue and develop action plan for improvement.

Monitoring of customer complaints and communicating to relevant personnel in the


organization.

Attending external audits.

MAINTENANCE DEPARTMENT:
STRUCTURE OF MAINTENANCE DEPARTMENT AT PVC PUMPS

DIRECTOR

MAINTENANCE DEPARTMENT

Chart No: 13 showing structure of maintenance department at PVC pumps.


MAINTENANCE
Maintenance is defined as the function of production management that is concerned with day
to-day problem of keeping the physical plant in good working condition.
MAINTENANCE MANAGEMENT
Maintenance management is concerned with planning, organizing and directing the resources
in order to control the availability and performance of the industrial plants to some specified
level.
MAINTENANCE TYPE
Break down or corrective maintenance.
Preventive maintenance.
Predictive maintenance.
Routine maintenance.
Planned maintenance.
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MAINTENANCE DEPARTMENT AT PVC PUMPS
Maintenance department in PVC PUMPS is concerned with maintaining the healthy
condition of the machines and equipment of the company for regular operations.
In PVC PUMPS daily, weekly, monthly maintenance activities are carried on. Maintenance
department at PVC PUMPS.
The responsibilities and authorities vested with maintenance department are as follows:

Preventive and Breakdown Maintenance of machines of machine

Maintenance of tools.

New installation of equipment.

Keeping stock of spares.

Plant protection.

Waste disposal.

ISO Documentation.

Attending external audits

SUB - CONTRACTOR & LOCAL LOGISTICS RECEIVING:


STRUCTURE OF SUB-CONTRACTOR &LOCAL LOGISTICS AT PVC PUMPS
SUB CONTRACT & LOCAL LOGISTICS RECEIVING

SUB-CONTRACT INCHARGE

METERIAL HANDLER

Chart No: 14 showing structure of sub-contractor &local logistics at PVC pumps.

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SUB-CONTRACTOR
A sub-contractor is an individual or in many cases a business that signs a contract to perform
part or the entire obligation of anothers contract.

LOGISTICS
The process of planning, implementation and controlling the efficient, effective flow and
storage of goods, services and related information from point of origin to point of
consumption for the purpose of conforming to customer requirement.

SUB-CONTACTOR AT PVC PUMPS


PVC PUMPS deals with several sub-contractors in course of manufacturing the particular
product.
A product may comprise of several parts. Thus for cost effectiveness, time-saving, quality
etc PVC PUMPS enter into sub-contracts manufacturing of such components/assemblies.
The responsibilities and authorities vested with the Incharge of sub-contractor and
local logistics receiving are as follows:

Receipt of the inward material, verification of qty, physical damage and documents

GRN preparation and offering to inspection

Sending materials for job work and receiving materials from job work

ISO Documentation.

Attending external audits.

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PVC PUMPS PVT. LTD., DAVANGERE


MC KINSEYS 7S MODEL

Chart No: 15 showing MC KINSEYS 7S model.


Application of Mc Kinseys 7s model
The 7-S model is better known as McKinsey 7-S model. This is because of two
persons who developed this model, Tom Peters and Robert Waterman, have been consultants
at McKenzies & co. at the time. The model starts on the premise that an organization is not
just structure, but consists of seven elements.
The 7-S model is a tool for managerial analysis and action that provides a structure with
which to consider a company as a whole so that the organizations problems may be
diagnosed and a strategy may be developed and implemented. The 7-S is a framework for
analyzing organizations and their effectiveness. It looks at seven key elements that make the
organizations and their effectiveness:

Structure

Skill

Style

Strategy

System

Staff

Shared value.

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PVC PUMPS PVT. LTD., DAVANGERE


Description of 7 Ss
SYSTEMS:
Every organisation has some systems or internal processes to support and
implement the strategy and run day-to-day affairs. For example, a company may follow a
particular process for recruitment. These processes are normally strictly followed and are
designed to achieve maximum effectiveness.
RECRUITMENT SYSTEM
INTERNAL RECRUITMENT AT PVC PUMPS
At PVC PUMPS mostly the following internal recruitment takes place:

Employee referrals.

EXTENAL RECRUITMENT AT PVC PUMPS


PVC PUMPS mostly recruit employees externally through:

Labor contractor

Besides, employees referrals too.

Advertisement

TRAINING SYSTEM
PVC PUMPS spend adequate amount of time and money on training and development
programmers such as:

Once in a year safety, first aid and fire fighting training are conducted.

Orientation classes are conducted to make the new recruits adaptable to the
organization culture, organization environment.

Training from superiors

Operative Training

STYLE:
This includes the Leadership style of top management and the overall operating style
of the organization. Style impacts the norms people follow and how they work and interact
with each other and with customer.
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PVC PUMPS PVT. LTD., DAVANGERE


The management training is totally democratic there are no restrictions to any
employee to express his opinion. PVC Pumps has got open door policy i.e. any level of
employee can meet directly to his superior or managing director without any hesitation. This
leads to the free flow of communication within the organization.
STAFF:
The people / human resource management- processes used to develop managers, socialization
processes, ways of shaping basic values of management cadre, ways of introducing young
recruits to the company, ways of helping to manage the careers of employees.
PVC PUMPS consists of highly experienced semi skilled staff directing the operation in PVC
PUMPS. All personnel go through regular training.
PVC PUMPS currently employed 10 employees as:

6 permanent workers including

4 temporary workers including


Temporary workers

Permanent workers

Total

Technical

Nontechnical

10

Total

Table No: 1 showing type of employees in PVC pumps.


SKILL:
Skills include the distinctive competencies that reside in the organization. These can
be distinctive competencies of people, management practices, systems and technology.

The employees need to have both specific as well as generic skills. Generic skill
mean problem solving skills, decision making skills, communication skill etc. Specific skill
means time management, shop floor management, building teams, leadership, Motivation,
creativity and environment. Shop floor employees are ITI and Diploma holder Mechanical
engineer Technicians.
STRATEGY:
Strategy refers to the systematic action and allocation of resources to achieve the
companies aim. The company is procuring the good quality of raw materials from local
suppliers, which increases their quality of the finished goods to meet the customer
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expectations. The integrated vision and direction of the company as well as the manner, in
which it drives, articulate, communicates and implements that vision and direction. It can also
be defined as the choice of direction and action that the company adopts to achieve its
objectives in a competitive situation.
VISION, MISSION
Vision:
To be the most successful submersible pump manufacturer/ supplier in Karnataka
Mission:
To manufacture and supply quality submersible pumps at right time to satisfy continuous.
INVENTORY CONTROL TECHNIQUES USED AT PVC PUMPS

FIFO(First In First Out)

LIFO(Last In First Out)

The responsibilities and authorities vested with store head are as follows:

Receipt & issue of accepted materials.

Bin card maintenance.

Maintaining of minimum stock.

Monthly stock statement preparation.

Shelf life items monitoring and control.

Control of hazardous materials.

ISO Documentation.

SHARED VALUES/SUPER ORDINATE GOALS: All members of the organisation share


some common fundamental ideas or guiding concepts around which the business is built.
This may be to make money or to achieve excellence in a particular field. These values and
common goals keep the employees working towards a common destination as a coherent
team and are important to keep the team spirit alive.

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PVC PUMPS PVT. LTD., DAVANGERE


SWOT ANALYSIS OF THE COMPANY
SWOT Analysis is made to analyze the internal strength and weakness and external
opportunities and threats. As such it is instrumental in strategy formulation and selection.
Successful business builds on their strengths, correct their weaknesses, and protect against
internal and external threats. They also keep an eye on their overall business environment and
spot and exploit new opportunities faster than competitors. The technique is simple and
effective.
STRENGTHS:

It is something the organization does well relative to competitors. It arises from resources and
competencies available in an organization. It creates strategic advantage.

Company manufactures quality pumps & supplies to government.

PVC Pumps is producing 650 pumps per month.

Competent promoters having 25 years of experience in the same line of business.

PVC Pumps having semi skilled & unskilled employees.

Continuous improvement in profit.

Continues increase in demand for pumps is also one of the positive thing to the
company

Continuous supply of raw materials by suppliers helped the company to work


continuously.

Satisfied and motivated employees & workers.

Company has got ISO 9001- 2000 certification.

WEAKNESSES:
It is something the organization does poorly relative to competitors. It arises from deficiency
in resources and competencies. It creates competitive disadvantage

Lack in infrastructural facilities.

There is no promotion strategy.

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PVC PUMPS PVT. LTD., DAVANGERE

PVC pumps having old machineries.

Lack of labor availability.

OPPORTUNITIES:
It is the major favorable situation in an organizations external environment. It provides
position of superiority in relation to competitors.

Government5 is given some exemptions to the company.

It can produce the pumps according to demand.

New technologies are increasing.

Increasing demand for pumps.

THREATS:
It is a major unfavorable situation in an organizations external environment. It provides
position of inferiority in relation to competitors.

Strong competitors.

Changes in technology.

Political or Environmental changes.

Lacks in financial strength.

Low quality materials supplied by the suppliers.

Insufficient supply of power.

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PVC PUMPS PVT. LTD., DAVANGERE


PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 & 2011
SCH
NO

PARTICULAR

For the year ended


31st March 2010 RS

For the year ended 31st


March 2011 RS

1. INCOME :
Gross sales
Other

8
Total

42,855,938

51,712,778

489,151

457,382

43,345,089

52,170,160

38,541,746

45,485,506

853,684

1,147,326

760,000

760,000

1,872,182

1,908,331

72,232

61,515

42,099,844

49,362,678

1,245,245

2,807,482

4,089

11,340

375,083

858,634

379,172

869,974

866,073

1,937,508

2. EXPENDITURE:
Raw Materials Consumed

Manufacturing Expenses

10

Salary to Staff
Other Expenditure

11

Depreciation
Total

Net Profit Before Tax

Provision for FBT


Provision Of Current Year Tax

Profit After Tax

Table No: 2 showing profit & loss account of PVC pumps.

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PVC PUMPS PVT. LTD., DAVANGERE


BALANCE SHEET AS ON 31ST MARCH 2010
SCH
NO.

PARTICULAR

As at 31st
March2010

Rs

SOURCES OF FUNDS:
Share holders funds :
Share Capital

100,000

1,935,340

Unsecured Loans

2,035,340

355,000

Subsidy

27,900

Secured Loan

1,160,605
TOTAL

3,578,845

APPLICATION OF FUNDS:
3

Fixed Asset :
Gross Block

3,252,479

Depreciation

587,124

Net Current Asset:

2,665,355

Current Assets Loans And Advances:


Closing Stock

225,000

Sundry Debtors

6,509,920

Cash in Hand

77,302

Cash at Bank

1,384,918

Deposits

6,779,082

Other Assets

787,259

Less: Current Liabilities & Provisions

15,763,481
14,849,991

TOTAL

913,490
3,578,845

Table No: 3 showing balance sheet of PVC pumps.


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PVC PUMPS PVT. LTD., DAVANGERE


BALANCE SHEET AS ON 31ST MARCH 2011
Particular

SCH
NO.

As at 31st
March2011

Rs

SOURCES OF FUNDS:
Share holders funds :
Share Capital

100,000

3,872,848

3,972,848
355,000

Unsecured Loans

27,900

Subsidy
TOTAL

4,355,748

APPLICATION OF FUNDS:
3

Fixed Asset :
Gross Block

3,252,479

Depreciation

648,639

Net Current Asset:

2,603,840

Current Assets Loans And Advances:


Closing Stock

355,650

Sundry Debtors

5,321,245

Cash in Hand

65,595

Cash at Bank

847,622

Deposits

4,739,851

Other Assets

1,305,879

Less: Current Liabilities & Provisions

12,635,842
10,883,934

TOTAL

1,751,908
4,355,748

Table No: 4 showing balance sheet of PVC pumps.

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Ratio Analysis
SL NOs

Type of ratio

Standard ratio

Company ratio
2011

2010

1.

Current Ratio

2:1

1.13

1.06

2.

Quick ratio

1:1

1.13

1.05

3.

Debt equity ratio

0.50:1

1.30

1.92

4.

Net profit ratio

3.71

2.0

5.

Gross profit ratio

3.36

2.11

6.

Operating profit ratio

5.38

2.87

7.

Profitability ratio

0.25

0.11

8.

Cost of goods sold ratio

90.06

88.90

9.

Operating cost ratio

98.00

96.28

10.

Debt to asset ratio

0.36

0.36

11.

Fixed asset turnover ratio

16.04

13.18

12.

WC turnover ratio

3.36

2.11

13.

Stock turnover ratio

1:1

161.84

135.7

14.

Debtor turnover ratio

0.88

0.73

15.

Creditors turnover ratio

0.92

3.34

16.

Current asset turnover ratio

9.9

8.40

17.

Asset turnover ratio

3.28

2.28

18.

Return on asset

11.10

4.96

19.

Return on investment ratio

56.1

29.89

20.

Basic earnings power ratio

17.7

6.55

21.

Debtors collection period


ratio

37.23

54.82

Table No: 5 showing ratio analysis of PVC pumps.

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PVC PUMPS PVT. LTD., DAVANGERE

INTERPRETATION:
Table No 5 showing ratios
1) CURRENT RATIO
Current Assets
Current Ratios =
Current Liabilities

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. But
the company is having Rs 1.06 of CA for every 1 Re of CL even though it has increased,
when it compare to last year. The company has to concentrate on its liquidity position.
2) QUICK RATIO
Quick Assets
Quick Ratio =
Current Liabilities

According to Industry standards liquid ratio must be 1:1 but the company is having 1.13:1 in
2011 which is greater than the industry standards & previous year ratio is 1.05:1 which is
greater than the industry standards. Hence by seeing this we can interpret that it has been
increased compare to previous year.
3) DEBT EQUITY RATIO
Long Term Debts
Debt Equity Ratio =
Long Term Equity
It shows the relationship between debt and equity. The ideal ratio is 0.50:1. That is for every
50 paisa of debt, 1Rs of equity should be there. The company is having Rs 1.30 of debt for
every 1 Rs of equity. Hence by seeing this we can interpret that it has been decreased
compare to previous year. In present case, the debt-equity ratio is more than one in both the
years. So we can say that it is a lever firm. We can do more trading on equity. It is very
beneficiary to shareholder if the firm having more EBIT. When the EBIT is more and more
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PVC PUMPS PVT. LTD., DAVANGERE


over a period of time, interest cost cannot be change proportion to changes of EBIT. Interest
is a fixed cost. So, if EBIT is higher in a particular period we cannot pay the higher interest.
PVC Pumps pvt ltd. is under profit in 2011.
4) NET PROFIT RATIO
Net Profit

Net Profit Ratio =

*100

Net Sales

It shows the relationship between net profit and net sales. This ratio indicates the profitability
of the firm. The company is having net profit of 3.71 in 2011 which is high compare to
previous year (2010) i.e. 2.0. This shows that the companys net profit has been increased
compare to previous year. So the company has maintained a good profitability in the firm.
5) GROSS PROFIT RATIO
Gross Profit
Gross Profit Ratio =

*100
Sales

The company is having gross profit margin of 3.36 in 2011 which is high compare to
previous year (2010) i.e. 2.11. This shows that the companys gross profit has been increased
compare to previous year.
6) OPERATING PROFIT RATIO
EBIT
Operating Profit Ratio =

*100
Sales

It shows the relationship between EBIT and net sales. It is computed to analyze cost of
operation in relation to sales. Operating expenses include office expenses, administrative
expenses, selling expenses and distribution expenses. The company is having operating profit
of 5.38 in 2011 which is high compare to previous year (2010) i.e. 2.87. This shows that the
companys operating profit has been increased compare to previous year.
7) PROPRIETARY RATIO
Share Holders Fund
Proprietary Ratio =
Total Asset (CA + FL)

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It shows the relationship between Share Holders Fund and Total Asset. The company is
having Proprietary of 0.25 in 2011 which is high compare to previous year (2010) i.e. 0.11.
This shows that the companys Proprietary has been increased compare to previous year.
8) COST OF GOODS SOLD RATIO
Cost of goods sold
Cost of goods sold Ratio =

*100
Sales

The companys cost of goods sold ratio is 90.06 in 2011 which is more compare previous
year (2010) i.e. 88.90 . It shows that the company reduced its cost on sale of goods which is
good for company.
9) OPERATING COST RATIO
Cost of Goods Sold
Operating Cost Ratio =

*100
Net Sales

It shows the relationship between Cost of Goods Sold and Net sales. The companys
Operating Cost ratio is 98.00. In 2011 which is less compare previous year (2010) i.e. 96.28.
It shows that the company decreases its Operating Cost which is helpful for companies Profit.
10) DEBT TO ASSET RATIO
Long Term Debt
Debt to Asset Ratio =
Total Asset (CA + CL)

It shows the relationship between Long term debit and Total Asset. The company is having
Debt to Asset of 0.36 in 2011 which is equal compare to previous year (2010) i.e. 0.36. This
shows that the companys Debt to Asset is Equal compare to previous year.
11) FIXED ASSETS TURNOVER RATIO

Sales
Fixed Asset
turnover Ratio =
Fixed Assets

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It shows the relationship between Net sales and Fixed Assets. The companys Fixed Asset
Turnover ratio is 16.04. In 2011 which is more compare previous year (2010) i.e. 13.18. It
shows that the company increases its Fixed Asset Turnover which is good for company.
12) WORKING CAPITAL TURNOVER RATIO
WC (CA-CL)
WC Turnover Ratio =

*100
Sales

Companys net working capital ratio is 3.36 in 2011 & 2.11 in 2010, this clearly indicates
that the companys working capital is more compare to previous year; hence it is good for
smooth work flow in the organisation.
13) STOCK TURNOVER RATIO
Cost Of Goods Sold
Stock Turnover Ratio =
Average Stock

It shows the relationship between Cost of Goods Sold and Average Stock. The companys
Stock Turnover Ratio is 161.84. In 2011 which is more compare previous year (2010) i.e.
135.7. It shows that the company increases its Stock Turnover.
14) DEBTOR TURNOVER RATIO

Sales
Debtor Turnover Ratio =
Average Debtors
It shows the relationship between Sales and Average Debtors it needs to be noted that debtors
should be taken before making any provision for doubtful debts... The companys Debit
Turnover Ratio is 0.88. In 2011 which is more compare previous year (2010) i.e. 0.73. It
shows that the company increases its Debit Turnover.
15) CREDITORS TURNOVER RATIO
Credit Purchase
Creditors Turnover Ratio =
Average Creditors

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It shows the relationship between credit Purchase and Average Creditors. It reveals average
payment period. Lower ratio means credit allowed by the supplier is for a long period or it
may reflect delayed payment to suppliers which is not a very good policy as it may affect the
reputation of the business. The companys Credit Turnover Ratio is 0.92. In 2011 which is
less compare previous year (2010) i.e. 3.34. It shows that the company decreases its credit
Turnover in 2011.
16) CURRENT ASSET TURNOVER RATIO
Cost Of Goods Sold
Current Asset
turnover Ratio =
Average Current Assets

The Companys cost of goods sold is 9.9 times of average current asset in 2011, 8.4 times in
2010. It indicates that the companys current asset turnover is more in 2011 compare to 2010
17) ASSET TURNOVER RATIO
Net Sales
Asset Turnover Ratio =
Total Asset

It shows the relationship between Net Sales and Total Asset. The companys Asset Turnover
Ratio is 3.28. In 2011 which is more compare previous year (2010) i.e. 2.28. It shows that the
company increases its Asset Turnover.
18) RETURN ON ASSETS

EAT
Return On Asset Ratio =

*100
Average Total Assets

It shows the relationship between EAT and Average Total Assets. The companys Return on
Asset Ratio is 11.10. In 2011 which is more compare previous year (2010) i.e. 4.96. It shows
that the company increases its Return on Asset. ROA is an odd measure its numerator
measures the return to its shareholders, whereas its denominator represents the contribution
of all investors. PVC Pumps pvt ltd is getting good income on its all assets.

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19) RETURN ON INVESTMENT RATIO.
Operating Profit
Return on investment Ratio =

*100
Capital Employee

The companys Return on investment Ratio is 56.1 in 2011 which is more compare previous
year (2010) i.e. 29.89 . It shows that the company increases its Return on investment which is
good for company.
20) BASIC EARNING POWER RATIO
EBIT
Basic Earning power Ratio =

*100
Total Asset

The companys Basic Earning power ratio is 17.7 in 2011 which is more compare previous
year (2010) i.e. 6.55 . It shows that the company increases its Basic Earning power which is
good for company. It is a measure of business performance which is not affected by interest
charges and tax burden. By this ratio can know that PVC pumps are having power to
overcome by changes made by government.
21) DEBTORS COLLECTION PERIOD RATIO

Debtors Collection period


Ratio =

Sundry Debtors
*365
Sales

The Companys Debtors Collection period Ratio is 37.23. In 2011 which is less compare
previous year (2010) i.e. 54.82. It shows that the company reduces its Debtors Collection
period which is good for company.

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PVC PUMPS PVT. LTD., DAVANGERE


FINDINGS

There is a lack in infrastructural facilities like factory building , sanitation problem,


drinking water facility, store maintenance etc.

Company is facing a problem of bottleneck because of old and outdated machineries.

It is lagging behind in promotional activities like advertising and all.

It is supplying most to government organisation but not concentrating on general


public.

It is facing problem of power supply, labor, and technology.

More computation from other large scale industries.

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PVC PUMPS PVT. LTD., DAVANGERE


SUGGESTION

The Company has to adopt the concept of TPM (Total Preventive Maintenance)
which will help them to avoid the breakdowns and delay in production. And The
Company has to construct the new building for the convenience of employees for
reducing the material handling time. The company has to recruit permanent workers
& company has to give Proper training to present workers and also company have to
provide drinking water and they have to improve the quality of storage of row
materials.

In the present competitive market, promotion plays a significant role in business and
maintaining the image of the company, thus the company needs to concentrate more
on various promotional measures like advertisements, contests, customers meets etc.
to reach and create awareness among the customers.

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PVC PUMPS PVT. LTD., DAVANGERE

LEARNING EXPERIENCE
Firstly I would like to place on record my sincere thanks to the management of
PVC PUMPS PRIVATE LIMITED, DAVANGERE for their kind permission to
undertake 30 days implant training in their organization. Its a fabulous experience
what I studied in organizational study.
I studied many practical aspect as compared to theoretical aspects and it is also
exposed me about working of an organization, to relate the theoretical concepts learnt
in the classroom to organizational functioning, decision making crotalarias and real
life application of management.
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 Analyses of the present status & future strategies of the
company.

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PVC PUMPS PVT. LTD., DAVANGERE

BIBLIOGRAPHY
Company annual report 2010 2011

TEXT BOOK
Financial Management 5th Edition by M.Y KHAN & P.K JAIN page No: 6.1 to 6.37
Marketing Management by Philips Kotler dorling kinderlo of publishers, New
Delhi 5th edition, 2012 page no :- 4,6,50,58
Human resource management by VSP Rao Anurag jain publisher New Delhi 2nd
edition year 2010, page No:- 123,137,143,144,189-191,340,342.

Websites
http://www.google.co.in/ McKinney 7s Model last accessed (August 3 2012)
http://www.google.co.in/ PVC Pumps pvt ltd last accessed on (June 15 2012)
http://ww.wikipedia.org/ wiki. pump industry last accessed on (28/07/2012)

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