1.

1 INTRODUCTION

SRI RAM POLYMERS is a manufacturing company, produced plastic water tanks.

Sri Ram Polymers is a small scale unit, the company is situated in Dharmapuri District,
Tamilnadu State. The company produced plastic water tanks with different capacities 300
liters to 5000 liters and the tanks are produced in two different colors are black and blue.

During the course of training an attempt has been made to study the production,
marketing and financial aspect of the company. The company engaged in the production of
single product, plastic water tank. So it is easy to study the various aspects of the company
without much difficulty. Moreover, the company can make proper records for each activity,
and these records are kept correctly for the future reference. It is also very helpful to the
training.

Sri Ram Polymers is a well reputed company in Dharmapuri for producing water
storage tanks. Besides other rotor molded products. This was the significant factor for
investment in this sector till today. Sri Ram Polymers had a policy for development by adding
improvement to its products and introducing new products that serves the community,
construction and industries.

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1.2 OBJECTIVES OF THE STUDY

The main objective of this study is to understand the overall operations of the
company.

Objectives of the study are:

 To make a general awareness of the production aspect of the unit.

 To know the organizational activities.
 To study the human resource management system in a firm.
 To study the organizational structure of the firm.
 To evaluate the general problems of the firm.
 To know the profitability of the firm.

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1.3 SCOPE OF THE STUDY

This study is mainly of an academic one and the training will throw some light on
some positive and negative aspect of various business enterprise selected for training.

The scope of the study is neither narrow nor wide, only the serious attempt has been
made to understand this firm as a whole has been studied. Further the study is concentrated
on major areas like production, marketing and finance.

In this study, the production aspect also includes the study of raw material
management system. Labour management manufacturing process qualities policies of the
firm. In the areas of marketing include the brief study of marketing activities. It also includes
the channel of distribution, customers. In financial area includes the study about some past
year’s financial position of the company.

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1.4 LIMITATIONS OF THE STUDY

The study also includes some type of limitation. The availability of data is a main
limitation in this study and the time available for the study is limited. They can keep a proper
record of their activity that would help the study. The information for writing this report has
been taken from financial statement prepared by the firm.

 The analysis was made for a period of 10 days only.

 The value of money is not taken into consideration.
 The depth study is not possible with limited data available.
 The time available to conduct study was restricted to 2 weeks.
 The study depends upon secondary data also, which may affect it.

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2.1 COMPANY PROFILE

This gives the detail information about the profile of the company. It includes the
registrations and commencement, types of product manufactured, machine used for the
manufacturing process and the organizational structure of the company.

2.1.1 REGISTRATION AND COMMENCEMENT:

The Sri Ram Polymers is a small scale industrial unit, which produce water tanks and
the company registered with the Government of Tamilnadu in the year 2002. The company
begins its operation or running in the company in the July 2002. This is a partnership firm,
the company was started with 2 partners. They contribute equal amount at capital for the
establishment of the firm and the company follows the rules and regulations of the Indian
Partnership Act. The company situated at Dharmapuri District.

The factory manufacturing license is issued by the factory inspector of Tamilnadu

Government under Sales Tax Department issue the license of selling the product.

2.1.2 HISTORY OF SRI RAM POLYMERS:

The company began in 15th October 2002 by two enterprising young men with a
daring vision, started with 4 workers in Dharmapuri, Tamilnadu. Their aim was to
manufacture high quality plastic water tank and market them in reasonable price. Within a
short span of time, this company made inroads into Tamilnadu and other Southindian market.
It is an ISO 9000:2008 certified company.

SRI RAM POLYMERS supports the manufacturer 12 years warranty on fresh water
tanks against any manufacturing defect which are designed and warranted for water use only,
at ambient temperature and are not intended nor warranted for chemical and fuel storage.

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2.1.3 TYPES OF PRODUCT PRODUCED:

Sri Ram Polymers produce water tanks with two colors, black and blue. The tank can
be produced with different capacities ranging from 300 liters to 5000 liters. The company can
produce water tanks according to the demand and order placed by the prime consumer and
agent. The order of the water tank can be increased in the seasonal period, for meeting this
increased demand in the season. The company can purchase required raw material and
consumable and appoint additional workers on the basis of daily wages for increasing the
production of the company.

For meeting the additional order placed by their agent, the company can increase their
productivity by operating the company in two shifts. The company working in two shift only
in the seasonal period, other period the company can working in their normal time.

2.1.4 MACHINE USED FOR THE PRODUCTION AND LABOURS:

The Sri Ram Polymers started its operation in July 2002. The machines used for the
production process are:-

One rock ‘N’ roll extruder and pulveriser machine, two grinding machine, one cooling
chamber and one generator. These machines are purchased from Gujarat and Tamil Nadu.

At the time of starting, the company has 9 permanent workers and some other workers
are worked on the basis of daily wages. Now the company’s total number of permanent
workers is increased to 28 and some workers are worked on the basis of daily wages, the
number of workers is increased in the seasonal period.

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2.1.5 QUALITY POLICY OF THE COMPANY:

The quality manual has been prepared in line with the requirement of the ISO
9001:2008. The quality management system is established, implemented, maintained and
continuously improved by the Sri Ram Polymers according to the guidance provided in the
quality manual.

The quality policies of Sri Ram Polymers are as follows:-

 Supply of good quality produced by on time delivery.

 Fulfill customer satisfaction and their requirement by continuous improvement in
system and production process.
 Improvement of delivery performance up to 100%.
 Increasing sales turnover.
 Reducing breakdown.
 Reduce customer rejection and complaints.

2.2 ORGANIZATIONAL STRUCTURE

Managing partner - Administration Managing partner - Technical

Manager

Administrative in charge Production supervisor

Finance department Workers

Production department

Sales department

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2.3 AUTHORITIES AND RESPONSIBILITIES OF THE MANAGER

 Report to managing partner.

 Also management representative of the organization.

 Overall responsibilities for financial function.

 Handle the enquiries and order.

 Responsibilities for placing order to supplier.

 Preparations of purchase order and verification in purchase order.

 Initial evaluation and selection of supplier.

 Periodic performance rating of supplier.

 Responsibilities for store keeping and periodic verification of stock.

 Follow up with product engineer to dispatch product within committed date.

 Direction and control of sales, purchase and store accounts and production activity.

Ensure that process need for the quality management system established, implemented

and maintained as per ISO 9001:2008.

 Conducting management reviews.

 Reporting the performance of quality management system and need for improvement in

the management reviews follow up.

 Co – ordinate directs and motivates the staff and employee to effective performance of

organization with regard to quality management system.

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2.4 AUTHORITIES AND RESPONSIBILITIES OF MANAGEMENT
PARTNER

 Managing partner in administration.

 Co – ordinate and motivate administrative department for achieving sales target.
 Provide adequate resources and personnel for effective implementation of the quality
management system.
 Planning and setting operation goal.
 Review and monitor sales performance.
 Recruitment of staffs.
 Overall direction and control of organization.
 Setting quality policy and quality objectives.
 Managing partner in technical.
 Deal with all the technical issue of the organization.
 Overall in charge of the machine if any breakdown occurs.
 Organizing mould for the production.
 Review and monitor sales performance.
 Control of organization.
 Setting quality policy and quality objectives.

These are the authority and responsibility assigned to the managing partner.

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2.5 WORKING CONDITION

This indicates the detail about the raw materials used for production and clear detail
about the maintenance provided to the machinery and labour management.

2.5.1 RAW MATERIALS

SRI RAM POLYMERS produces water tanks with different capacities 300 to 5000,
the raw material availability is directly affect the production of the company. Insufficient
availability of raw material of required quality and quantity at required time. It is an
important problem is faced by management. The raw materials used for manufacturing water
tanks are lid, LLDPE, master batch, plastic granular black power and blue power.

The raw materials are purchased through dealers within and outside of Tamilnadu.
The prime dealer of raw material is located in different areas they are from Cochin, Thrissur,
Aluva, Ahemadabad, Uttar Pradesh, Coimbatore and Salem.

The order of raw materials are given after considering in the available stock of the
raw materials in the company and required quality for producing sufficient product for
meeting the demand of the product. The company can produce according to the demand is
increased in the seasonal period.

As per the seasonal requirement the order placed for raw material also changed from
December to May the demand of water tanks can be increased as compare with other period.
Therefore, meeting the increased demand in the season, the firm can purchase addition
amount of raw material in advance for meeting the increased demand.

The raw materials can be purchased after checking the quality of the material.

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2.5.2 MATERIAL MANAGEMENT PROCESS

 SELECTION OF SUPPLIERS
 Selection on the basis of past experience with respect to quality and accurate
delivery of material. The quality feedback is received from the production
supervisor.
 If there is a need for any new suppliers in the market and send to the managing
partner. Then the managing partner can provide approved suppliers list.

 PLANNING AND PRODUCTION MATERIAL

 The raw material and production related consumable are purchased based on
customer order or schedule or day to day stock review by the production
supervisor. If found stock quality is less to meet the consumer order to
production supervisor can inform to the manager for purchasing additional raw
material.
 Mostly verbal purchases are given to the approved suppliers on the requisition
basis emergency purchases done from the suppliers other than approved supplier
on the time basis.

 RECEIPTS OF MATERIAL
 The materials received from the supplier are inspected as per the quality
management policies of the Sri Ram Polymers and store in the material storage
area. Poor quality material are rejected and immediately sent back to the
suppliers.
 The received raw material and consumable quantity are checked and updated in
the material, suitable informed to the suppliers. The accepted materials are stored
in their respective storage location and the stock ledger of raw material and
consumable are updated for the receipt of corresponding quantity.
 For the product is separate stock in maintained and updated in the finished
products stock register.

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  ISSUE OF MATERIAL
 The materials are stored under the control of production supervisor. The materials
required for products is issued and updated in the purchase intend from itself by
the manager and receivers sign is obtained in the same form.

2.5.3 PRODUCTION PROCESS

 After order given by the manager daily production plan is prepared by the production
manager or supervisor.
 The raw material/consumable planning is carried out by production supervisor based
on the order/schedule received from the customers.
 If any additional schedules are received from the customers, production supervisor
amends the daily production planning, if it is found to be acceptable.
 The raw material/consumable planning is also received for additional order and it
necessary requirement are informed to purchased in charge.
 In case of non availability of required capacity of manager decided about the action to
be carried out for increasing the capacity to be required level.
 The incoming in process and final inspection process are carried out as per their
quantity plan by production supervisor.
 To ensure that operation follows the work instruction and the inspection and training
process are carried out at all stages as per quality plan is ensured by the manager.
 The extraction and pulverizing process which deals in the preparation of raw material
for final stage production.
 The final stage of production is modeling. In this stage mould is opened and checked,
if there is any problem occurred in the mould then it is corrected.
 Then the standard time is fixed for each tank according to the capacity of the tank,
when this process gets completed the mould is kept for cooling.

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2.5.4 INSPECTION PROCESS

Inspection is an important for achieving the goals of the firm like achieving the
designed quality of the product. The inspection process is completed in three different stages.

 INCOMING PROCESS:
 On receipt of raw material from suppliers the raw material are inspected as per
quality plan incoming material and the details are recorded in the material
inward inspection register.
 The raw materials are accepted based on the test certificate received from the
supplier given for every lot.
 The non conformance identified during this inspection are sent back
immediately to the supplier.

 IN PROCESS STAGE:
 The dimensional and visual parameters are checked as per the quality plan and
recorded in the process report.
 If there is any rejection witnessed in the process stage then it is recorded in the
non conformance register and then the corrective action measures are taken
into consideration.
 Since the extraction process plays vital role in the preparation of raw material
the temperature in the three zones are to be maintained properly and so it is
monitored the extraction in process report. It is verified with the respective
work instruction.
 Overall moulding, extrusion and pulverization are monitored in given way.
That those processes are undergone as per the work instruction.

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  FINAL STAGE:
 The details of final inspection are recorded in the inspection report, after final
inspection is carried out as per the quality plan.
 Testing process.

All the dispatch stage after the final inspection is made the leakage testing is
undergone for different position. The testing is done in such a way that the tank is completely
filled with water and kept in a uniform surface.

To ensure the thickness during the initial stage before molding the raw material mix
ratio, this would be in the correct preparation and it is verified as per the work instruction
given powder mix ratio before molding.

 First in first out method is used in the SRI RAM POLYMERS for the consumption of
raw material.

In SRI RAM POLYMERS all the inspection activities are carried out by production
supervisor as per the quality plan. This helps to achieve the better quality product with
minimum cost. Therefore, the proper inspection at the proper time is an important factor for
achieving the goals of the firm.

2.6 MAINTENANCE OF PLANT & MACHINERY

Maintenance of plant and machinery is an important factor. Machines are not work
properly for a long period without a proper maintenance so the maintenance is directly linked
to the productivity of the firm.

SRI RAM POLYMERS follows the preventive maintenance; it means the

maintenance is provided at advance for avoiding breakdown and damages. It is provided at
particular interval like quarterly, annually, weekly or monthly according to the requirement
and type of the machine. This helps to increase the productivity by reducing the breakdown in
the production.

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2.7 LABOUR MANAGEMENT

The workers are an important and most valuable asset of the organization. There is a
close connection between workers and profit. Proper selection and management of workers
will help the firm to produce maximum products and avoiding damages.

SRI RAM POLYMERS gives more importance to workers and providing training to
the required employees this helps the workers too effectively with improved knowledge.

2.7.1 PROCESS OF HUMAN RESOURCES MANAGEMENT

 Based on the management reviews decision. New recruitment are selected and
provided training to the selected employees.
 After completing of training process evaluate the effectiveness of training and it is
recorded employees history card. Based on the feedback result manager decided
his/her condition in the area. It needed the training period is extended to another 6
months to review.
 Once in a year all the employees skills to be identified in employee history card whole
work effecting quality of the product is recorded.

Normally it is done in the month of May. The following are taken in to consideration
during identification of training needs:

 Performance of employees.
 Report problem.
 Introduction of new technology/system.
 New result.
 Job transfer.

 Based on the identified skill once in a year training is scheduled in the employee
history card. The training program can be conduct internally/arranged external. After
completion of training the detail like topic, date, training friendly and signature of the
participants are recorded in the employee history card.

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  After two month from the date the effectiveness of training is evaluated and the result
is recorded in the employee history card, it necessary training is arranged. Through
awareness training program it is ensured that all employees are made aware of the
relevance and importance of their activities and how they contribute in the objectives
of the organization.

2.8 EMPLOYEE WELFARE MEASURES IN SOUTHIN POLYMERS

In SRI RAM POLYMERS provide all recovery welfare amenities required to their
employers. The welfare amenities help is improve the morale of workers and effectively
working for the company the welfare amenities provided by Sri Ram Polymers to their
employees include:-

 Free uniform, shoes, etc. provided to the employee.

 Sri Ram Polymers fund, fixed amount is charged from salaries of employees or
number of find every month.
 Marriage gift: Non receivable amount of Rs. 10000/- per lend at the time of marriage
and completion of one year service.
 Personal loan provided to employees at the loan amount of Rs. 25000/30000 and will
recovered at that interest rate of 5% or not.
 Educational less can be provided to the required employees.

In SRI RAM POLYMERS some casual workers are worked on the basis of daily
wages. The wages are paid at the last week of the month and the bonus is provided to the
waged paid the management can provide same allowances. Create a better working condition
and a better relationship between worker and management.

3. FUNCTIONAL DEPARTMENTS

The main functional departments of ‘SRI RAM POLYMERS’ are:-

o Purchase department
o Production department
o Marketing and sales department
o Finance department
o Personal department

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 o Research and development department

3.1 PURCHASE DEPARTMENT

The purchase department performs a vital role in an organization. For efficient

performance of the department is functioned under the direct charge of a purchase manager.
This department is also known as material department. The purchasing department is entitled
to purchase all types of materials needed for production.

The main responsibility of this department is to ensure continuous supply of raw

materials for uninterrupted flow of production. The purchase manager is a skilled person in
the material procurement ensures better selection of the raw materials.

3.1.1 FUNCTIONS OF PURCHASE DEPARTMENT:-

The purchase department is entrusted with the important function of procurement of

material for the organization. Purchase manager is a professional specialist in the art of
purchasing.

The function of the purchase department is summarized as follows:

 To establish purchase policies, procedures and practices.

 To identify and choose the best source of supply of raw materials.
 To purchase required quantity of materials of higher quality at lowest price under
most favourable terms of payments.
 To coordinate their activities with other sections of the department such as stores
section, inspection section, accounting section, etc.
 To verify and approve the invoices for payment.
 To maintain proper records relating to purchase.

3.2 STORES DEPARTMENT

The raw materials purchased are brought into the raw materials store. This department
is under the charge of storekeeper and he assists the purchase manager in material
purchasing. This department is the supply centre for production. The important functions of
store department are to inform the material requirements to the purchase manager, storing the
material received and issuing it to various production departments timely and adequately.

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18
The firm maintains two stores they are;

 RAW MATERIAL STORE

The firm maintains two stores they are; the raw material store is concerned with
storing of different kinds of materials and issuing it to the production departments
timely. The store receipts maintained to record the inflow and outflow of materials.
Generally the store maintains three levels of stoke such as maximum level, minimum
level and re – order level.

 FINISHED GOODS STORE

It is concerned with storing of finished products till their dispatch. The store keeper
prepares a delivery order whenever an order is received. The delivery order provides
information about the goods ordered, their quantity and rate. The tax rates, packing
details, weight of goods, etc. are also maintained. Store activities are controlled and
maintained by a store keeper

3.3 PRODUCTION DEPARTMENT

Production means creating utility for something. It is the process of converting raw
materials into finished products. Production is the centre function of a manufacturing
concern. All the production procedures are carried out by this department according to the
direction of the production manager. He was the technical knowledge of production and
ability to lead the department in a uniform manner. Production department consist of
production manager, supervisor, and different grades of workers. Production manager takes
all the important decisions relating to the production.

The production management plays an important role in an organization. Various

challenges are faced by them on the production of different products. Some of them are;

 Better design structure for the smooth flow of production.

 Different production policies and control measures adopted in this organization.
 Research and development needs to design innovative products.
 Simplification and standardization of products.
 Increased cost of raw materials and non availability of skilled labour.

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3.3.1 PRODUCTION PROCESS

Imported machines and customized Machines are used for production. The raw
materials LLDPS (Linear Low Density Poly Ethylene) and master batch are mixed in proper
ratio and filled in the extruder and check the water level and maintain the temperature. After
meeting granule is taken.

The granule material is filled in funnel for pulverizing. The granule is heated at a
minimum of 180(C and maximum 210(C after pulverization process the powder is collected.
Filter the powder for pure and fine finish. Fill the powder in a bag and check weight.

After heating powder into liquid, it goes to the injection moulding machine. In this
machine, dies are situated and dies help in moulding the product into required shape. After
this process the moulded product is then cooked using cooling machine. After manufacturing
one type of product there is a gap of 5 – 10 minutes to change the dies. This time will be used
for checking the machine and for maintenance. This helps to reduce the chances of
breakdown of the machine at the time of production.

In production department workers, officers and machine operators are worked very
efficiency and orderly. Dies of the product are changed according to the order of the product.

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3.4 MARKETING DEPARTMENT

The ultimate purpose of production is the satisfaction of human wants. Production of

goods as no meaning unless they are distributed to consumers. The goods produced should be
transferred to consumer at a time when they need them.

Consumer can satisfy their wants only when their goods reach in their hands.
Marketing helps to satisfy to consumers, they transferring goods to the ultimate consumer.
Thus marketing makes goods more useful to the society by getting them where they are
wanted when they are wanted and by supplying them it those people who want them.

The SRI RAM POLYMERS demand is very low in the year in which the company
started its production and get into the market. But now the company have some prime
customers, these customers buy main portion of the company’s total production.

3.4.1 MARKETING EXPENSES

Marketing expenses means the expenses incurred for the marketing activities of the
firm, the firm cannot able to marketing expenses but they are able to control the expenses and
reducing it by using modern advanced marketing technologies.

The SRI RAM POLYMERS marketing their product with the help of marketing
agencies and marketing companies there are situated in Tamil Nadu and Pondicherry.

The marketing agencies help to market their product with low costs. These
intermediaries increase the profit by reducing the marketing expenses. The following books
are maintained by the department;

 ORDER REGISTER
This book shows the details of the orders received by the company from each
customer. The company can know the balance of orders in hand at any point of time
using this book.

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  ITEM REGISTER
This register is used for ascertaining the quantity of goods issued and the balance of
the remaining kept in the store. Whatever and whenever be the dispatch, then such
item will be deducted from the item register.

 SALES REGISTER
This register is used for recording quantity of goods sold. The firm can know the
exact sales level at any point of time using this register.

3.4.2 DIFFERENT DISTRIBUTION CHANNEL USED IN MARKETING

The Sri Ram Polymers produced water tanks and marketed in different way. The
water tanks are produced with different capacities 300 to 5000 liters and in two colours black
and blue. The different distribution channel bridges to gap between producer and consumer.

Distribution channel means the part of network through which the product are made
available to consumer. It works as means of moving goods from producer to consumer. It
overcame time, place and possession gaps and provide goods and services to people who
want them the distribution channel or marketing channel performs the following function: -

 Information gathering
 Consumer motivation
 Placing order
 Bargaining
 Risk bearing
 Service providing
 Marketing research
 Demand forecasting

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 The following figure illustrates the different distribution channel used by the
company.

MANUFACTURER CONSUMER

MANUFACTURER RETAILER CONSUMER

MANUFACTURER AGENTS RETAILER CONSUMER

These are the different distribution channel used by the company. The
company can produce goods according to the order placed by the retailer and marketing
agent. This help to produce sufficient product and avoiding the over and under production.

3.4.3 COMPETITOR OF THE FIRM

There are a number of big, small unit in Tamilnadu and in other state where there
products are manufactured. These are the competitors of the firm. Competition is an
important challenge faced by the company for existing in the market and make more market
share and earning the maximum return.

For achieving more marketing share in the competitive market, the company can
provide more advertisement and sales promotion activities. Thus company can study the
competitor’s sales promotional activities and their product prices and other services provided
to the consumers. After a careful study about the competitors activities the firm takes action
for marketing their products, through most effective method. The decision regarding pricing
of the product and the channel of distribution depends upon the policies of competitors the
firm cannot able to exist in the market. The price can be fixed only after comparing. The
competitors and market price, this is advantages to the firm for exist and make more profit.

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3.4.4 PRIME CUSTOMERS OF SOUTHIN POLYMERS

The prime customers of the Sri Ram Polymers are:-

M/s GANGA Enterprises, Palakkad & Coimbatore

M/s Royal Marketing, Salem

M/s BMC Agencies, Hosur ,Krishnagiri Dt

M/s SVA Enterprises, Kochi

M/s Saleem Polymer Industries, Bangalore

M/s Mynaas Plastics, Salem

A better portion of the company’s total production can be purchased by these agencies
and these are the prime customers of the Sri Ram polymers. The company can make a better
relationship which these prime customers, they provide the important the important market
information is helpful to the firm for producing the product as suitable to compete in the new
market.

These are the prime customers of the company and the company has some other local
customers and some other agencies and dealers, the remaining portion of the company’s total
productions are purchased by these consumers. The company can produce more products. If
the consumers are order and purchase in more quantity of products. The price of products are
calculated in almost scientific way before calculating the price of a product the management
consider the lost of each items is taken and utter scheduling these various factor like
availability of raw material labour charges, over heads, expenses, statutory level of other
industries and add on certain percentage of profit.

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3.5 SALES DEPARTMENT

The ultimate aim of the business is to make profit and it can be achieved only through
selling its products. Sales are the only element in marketing which generates cash or profit.
All the marketing elements are incurred in various costs and are make upped from the profit
earned by the company through sales. All the marketing strategies and policies are ultimately
aims at proper selling of the company’s products. The organizational objectives achieved
only through sales.

The sales department plays an important role in the organization. It is the income
generating department in every organization. In this company the sales department is headed
by a sales manager having relevant experience in this field. He is assisted with a clerk and
with the help of clerk, sales manager undertakes the selling activities. The company receives
sales orders through various agents. On receiving different orders, the sales clerk makes
arrangements for the delivery of goods. He records the details of products delivered in a book
shown as delivery order book. This book act as a future reference for the manager of the
company to know the exact sales levels.

The Sri Ram Polymers sell its products mainly in Tamilnadu. The company has strong
distribution headed with a separate manager and then undertake all the transportation
activities through various agents. It ensures timely delivery of its products.

3.6 FINANCE DEPARTMENT

Finance is the most crucial factor in any organization. The working of the industry
largely depends on finance. It requires proper management. The financial strength of a
company should be sound enough to carry out its operations smoothly without any delay in
its functions. A company’s financial strength is reflected in its financial statements. Proper
administration and management is essential for better survival for the current and future
performance. The main functions of this department are the efficient planning, control and
effective utilization of cash inflows and outflows.

It is well known that finance is the life blood of business. Adequate and timely
finance is necessary for effective functioning of any industry. Thus every management of the
company should be much care about its finance arrangements and must ensure that the funds
25
are properly developed. Each company have separate finance department headed with a
different finance manager and he coordinates and controls all the procedures relating to the
company. Each department of the company needs sufficient finance, thus it is the duty of the
financial manager to control the funds used.

Cash delivered from the sales and other funds raised are managed by the finance
departments. Financial manager is in charge of this department. He gives necessary
instructions and advises to the assistants for the effective control of the fund. The finance
department of this is fully computerized and all transactions are recorded through it. It is done
by qualified persons and records are up to date and correct.

3.6.1 SOURCES OF FINANCE

The company has two important sources of finance. They are:

 OWNED FUNDS
The amount contributes by the owner is known as owned fund. This includes initial
capital contribution and accumulated profits. It is beneficial to the company because
it is risk free capital and no interest is needed.

 BORROWED FUNDS

Amount borrowed from individual or institutions like bank, finance corporations etc
constitute borrowed capital. Loan may be taken for long term, short term and medium
term. It is a risky capital because the company should be liable to pay interest for it.
The payments are done only if there is profit. So a firm must take and manage the
borrowed funds adequately.

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3.7 PERSONNEL AND ADMINISTRATION DEPARTMENT

Human resources are the most valuable asset in any organization. The success and
failure of an organization largely depends upon the employees working in it. Availability of
skilled workers is essential for every manufacturing concern. An organization whether small
or large must ensure themselves that they have adequate skilled and experienced employees
to meet every challenges. The main function of this department is to recruit, select, train and
place the workers in the right job according to their skill and ability. This department is
headed with a human resources manager and administers all the matter relating to various
personnel’s working in the organization.

3.7.1 BENEFITS ENJOYED BY THE LABOUR

The company provides a good working environment to its labours to yield better
result from the work force. The plant structure of the company is in the way that placing
similar and sequential machineries in proper order to improve the speed of working.

It is a great advantage to the workers that heavy movement of material is not takes
place. The plant has enough space for easy movement of workers and materials hence no
congestion in the plant.

The following are the various benefits provided by the company to its workers:-

 Salary/wages
 Bonus
 Dearness allowance
 Paid leaves
 Medical bills
 Provident funds
 Festival and special allowance
 Recreation and other benefits

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3.7.2 QUALIFICATION

The minimum qualification for the office staff is graduation and an experience in the
similar field not less than three years. There is no minimum qualification fixed in case of
workers. If they posses required skill and knowledge and experience in the similar field are
appointed.

3.8 RESEARCH AND DEVELOPMENT DEPARTMENT

Research and development department is entrusted with the function of marketing

research. It involves the study relating to buyer behavior, product or brand preference,
advertising awareness, sales promotion activities, physical distribution, competition and so
on. marketing research, the management of the company can know that the consumers
changing taste and preferences, the type of quantity and quality of products needed, at which
time and price, purchasing power of consumers, best method of distribution etc. each of item
is much relevant to the concern.

Research development gives necessary instructions to the production department from

time to time for the development of products. The marketing research enables the research
department to take correct decisions about the changing product needs of customers and
instruct the production department to produce the goods accordingly.

Development department develops new patterns of products as per the instructions

from the research and marketing department. It analyzes the product department. Then the
marketing department quotes the price of the product.

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FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 FINDINGS

Finding may helpful for identifying points of weakness and improving efficiency.

 From the overall view, it creates a general awareness for the social group of
customers.
 The Organizational activities point out the net profit ratio graph. Which shows, a
positive result.
 The Human resource system is functioning in a proper channel. Which always look
after the employee welfare and also all motivational factor.
 Transportation cost is high.
 From the analysis it is found the organizational activities are functioning in a proper
channel.
 Since, from the analysis it is found that the net profit ratio is always in a positive side.
Hence it supports the loans and borrowings are increasing year after year, it will
reduce the profitability.

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4.2 SUGGESTIONS

 For improving profitability and liquidity. The company should use long term funds
for financing fixed assets and a part of current assets.
 The company should maintain the current liquidity position, through continuous
evaluation.
 The company can improve their profitability by keeping adequate working capital.
 Competition is tough so, the company should promote their promotional activities.
 To reduce transportation cost, bulk quantity delivery/purchase should be done.
 Try to control the borrowings by making of reserve funds.

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4.3 CONCLUSION

The main objective of this project is to analyze the “Organizational Study on SRI
RAM POLYMERS” on the basis of findings of this study, several suggestions are given
during the three previous years. so the current financial soundness is good, The company
should also try to increase sales again as to increase its income level. The company could
able to deliver the products at reasonable price and quality to their suppliers in general the
performance of the company has been good.

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