G H RAISONI INSTITUTE OF ENGINEERING & TECHNOLOGY NAGPUR 2020-2021 A Summer Internship Project Report ON LEAD AND SUPERVISE TEAM AND MAINTAIN FINANCIAL RECORDS Submitted To: - In partial fulfilment of the requirement of Master of Business Administration Program of G. H. Raisoni Institute of Engineering & Technology, Nagpur Year 2021-2022 ‘Company Mentor Asutosh Kamble 1.0. Dr. Maanish Chava G.HLR.LE.T, Nagpur Guided By Prof. Asmita Mudliar GAR jagpur Specialization Financial Management & Marketing ManagementA Report on “LEAD AND SUPERVISE TEAM AND MAINTAIN FINANCIAL RECORDS” OF “Pitambar Majur Kamgar Sahakari Sanstha” By Mayur Kshirsagar [GHRIETN200000481] ‘A Report submitted in partial Fulfilment of the requirements of MBA program of logy Nagpur GH Raisoni Institute of Engineering and Technok Company Mentor College Mentor Asutosh Kamble DR. Manish ChavaATE CERTIF Certified that the project report entitled Lead And Supervise Team And Maintain Financial Records has been successlully completed by Mayur Kshirsagar under the guidance of Prof. Monali Musale in recognition to the partial fulfillment for the award of the degree of Master of Business Administration, G H Raisoni Institute Of Engineering & Technology Nagpur Prof. Monali Musale Dr.Maanish Chava (Project Coordinator) (H.0.D)Mae eee PMKSS5 PITAMBAR MAIL Internship Certificate Date:10 Nov 2021 Place: Amgaon “This is to certify that Mr. Mayur Kshirsagar a student of MBA Semester III of G H Raisoni Institute of Engincering and Technology, Nagpur has completed his internship in Finance Department at Pitambar Majar Kamgar Sahakari Sanstha for 60 days from 20 Aug 2021 to 20 rt 2021. During the period of his Intemship programme with us he was founel fo be demonstrated good Management skills a self-Motwvated attinide to learn new things. His performance exceeded expectations. we-wish him all success and well place in life. For Pitambar Majur Kamgar Sabakari Sanstha Aeaitesd hamble ‘Asutosh Kamble Project Manager Pitambar Majur Kamgar Sabaari Sanstha, Kadanpipar Reg No.983.in front oF LIC Training Centre Amgon, Dist. Gondia, Maharashtea 441902ACKNOWLEDGEMENT \ project in an organization is an experience wherein the academic knowledge gained from the institute is applied in a practical manner. | had an opportunity to complete my summer project in ambar Majur Kamgar Sahakari Sanstha”. The project is at source of learning and a good experience as it made me aware of professional culture and conducts that exists in an organization, In this journey many people were influential without whom the task would have been incomplete. I hereby express heartfelt gratitude to Mr. Ashutosh Kmble who gave me opportunity to do project in Pitambar Majur Kamgar Sahakari Sanstha.DECLARATION in this project is has been done by Me, 2. The work con irk has not been submitted eo any other Institute for any degree or b. The w diploma. T have followed the guidelines provided by the Institute in preparing the project report 4. Thave conformed to the norms and guidelines given in the Ethical Code of Conductof the Institue. ¢ Whenever [ have used m is (data, theoretical analysis, figures. and text) from other sources, Ihave given due eredit to them by citing them ir details in the references, in the text of the reportand giving th Name: -Mayur Kshirsagar Signature: -EXECUTIVE SUMMARY ness is touch to make maximum utilizat les turnover, profits and abowe to the n nent resaurees with an aim 01 the deep inc pec! Theoretical knowledge » practical work tene filly employed to capture today’s ¢ market. The main objective of Disset ind Project is petting with the necessary theoretical inp id to gain sufficient practical exposure to establish distant linkage belween the conceptual knowledge ta ons, Practical work thus plays an important role in developing and img one’s skill in the field of business and management and won. There is big fight going on each segment of various types of y . There exist a good number of competitive companies in each segment, Which are trying hard to sell masimum number of cases in that sezment to snatch maximuin market share as it is directly reluted to the profits, sales turnover and image of the companies. I had complet summer taining from Pitambar Majur Kamgar Sahakari Sanstha, The whole two-month training period was a stress able period as my financial and marketing skills were explored by the company, financial research comprises one of the most important fascinating facts of the financial policies of the companies. All the learnt thearies sce too flourished as practical situations in front of me while going through the work in the training period. In this report I have tried to cover almost every aspect, which 's directly or indirectly related in this segment in the specified zone Initéally, 1 ‘vied to know the various related factors. For this, [ studied consumers and tried to know what were theit views regarding the brand loyalty in the city and also found good and bad things about the mutual thing. | mainly focused on what kind of strategies Pitambar Majur Kamgar Sahakari Sanstha, will require to develop 60 as to responsible market After collecting the related data from these sources, 1 analysed the data and come up with various strong and weak points, on the basis ‘of which | have derived certain conclusions and recommendations, mer's satisfaction. F retical work nial concepts of concepts pi es us ict and skills, which are succe:Sr. No, [325] Objectives yo aie TABLE OF CONTENTS Particulars | ‘Acknowledgment [a Deck | | Executive Summary [6 Part ‘nredustiom Literature Review ‘Researeh Methodalogy Research Design Sd ‘Study Design 43 44° (Conclusion and Findings 5 ‘ Referenacs bling [Data Analysis.nduction to the Construction Industry ies consist of fenance and lexity and her they are s ally renowned companies undertak jects. More high cost and . EVery constuction project requires fi needed blic-private ver gc for finance various fei a public, pri up resources include cash ad assets of the firm an this is t. Decisions that are made on the pany's financial fiure and therefore ding the company’s to bid on a large project has ’ fect a cor made by the personnel is very ad industries imoduction of Company mic wark force. who are shapiny and converting their dreams into ike all hat adds perceptible wale 19 nee between shareholders holders rs benefitsal decisions that in the the firm — Phillioppatus ied for ideal wse about assets, Assets need id. Limited So, the focus, everywhere, will be should make. siming output, starts with those set inputs. state funded booth be uated furthermore non w's only tip of the ieeberg clinched rm them with gainful ventures. Study uncovers a associations have maintained losses, because of nonatencance for proficient financial snayement weside foss-making associations to tru Methodology thodology used to achieve our goal will be cE ed mainly on interviews through the major victims of the conflicts. At some points, site cus face by and owners; who are ace to solve these issues ans also » process. In the statistical 10) Page‘Objective stribution. From cresting in uilization of finances lead gers ta dedicate resources and distribute them among efficiency of an organizati oes of . This flather decides the ory activity of the project in a for tracking of construction ‘We will further discuss different ideas with respec (0 cost implications of sustainability issues th are involved in construction developmen, planning of construct required at diffe helps the project p aspects. Different amounts are |. Proper planning of funds for construction a project dui ef the project, ThSWOT Analysis Strengths Dynamic The interesting things about construction companies that you won't see them building ove type of houses, companies, industries, and roads: neither would you see the same type of struction. The art and construction design of every house, building, mall. road, ar company because the construction companies keep on working different types of Efficient Efficiency matters a ot in this industry. Ifthe company and its workers are less efTicient, then ii would increase the expense level. In simple wards, lex: efficient means more expense that ‘would result in less profit and increasing cost Time and efficiency ate interdependent variable factors because construction bas to complete the project on a specific date. Ifthe workers aren't efficient, then it would not only inerease cost and expense, but it would also make it difficult to meet the deadlines. Follow Deadlines The timing and desdlines of the projects are very important. t doesn't mean that you have to compromise on the quality and safety of the work. It:means that you would follow all the standard operating peocedures (SCs) and finish the peoject an time. For instance, if you're unable to meet the client's deadlines, then it would result in the loss of 4 current client, increasing cost, and ill reputation to the company. The bed reputation would make it very difficult for the company to attract the next client Well-experience Management ‘The Construction Company is one of those companies where your managemect skills are tested. How efficiently you allocate resources among workers, and assign them different tasks based on their capabilities 10 get the work done, That's why well-established companies pay significumly well 10 their project managers because they help therm to finish projects on time and win new clients. Poor management means vastage of human capital and material resources, and failure wo the company. Variety of Projectsindustry, the same, but the p with other companies. What if the other company go down along with it. It is because construction companies require clients, and there are always here who want construction companies to finish their project because of some other company, but the construction come back in the next peoject if it performs well and efficiently uses its Weaknesses Relying on One Client Some construction companies rely only on one type of client if they keep on doing it. Then it ‘would be the death of their business. Therefore, it is necessary that you should expand your horizon and work with various types of clients, You would not only gain experience through this, [fone industry runs out of business, then yeu ean work with other clients and businesses since you already have experience in itas well ited New Projects Ifthe construction company is focusing only on the building of houses, then there's « limit to it, Soon the market will be flooded with competition and the mew project would become extinct. ‘Your company can't afford to sit around and wait for the relevant clients to give you the business. Therefore, you must learn to adopt new trends and work with new clients and businesses. Cosily Poor Decision Ifthe project managers don't have sufficient experience and skill set, then they would make poor decisions. That would result in wastage of resources af capital and resources. Therefore, it is important that you should carefully recruit project managers who wuld make smart decisions. Some campanies only rely on the experience of project managers, if they aren't experienced, then they won't promote them. They completely avoid the expertise and skillset of people, and they don’t get a promotion at the end of te day. t's necessary that they should keep in mind the expertise, skill, and experience. OpportunitiesSeparate Staff for New Clients Notice Trends w the trends, For instance, if you see ing some new kinds of the architect. Then yau expansion in your region, then it's also a Smart Houses Technology has brought many new changes almost in every field. Now, people want smart houses fully equipped with tech gadgets and the intemet of things (oT). Hf your company and jon’t learn to deal with new changes and technology, then you won't get new clients, Threats Economic Recession Companies run their business operation within the country's economy, and companies don't have any control aver their country’s economy. If the economy of the country is in recession and investment in the husiness is getting lower. Consequently, people and businesses. would stop all of theit investment plans. Such factors are out of the reach of the censtruetion companies Foonamic recession changes the attitude of the people, and they would become towards spending their meney becmuse of the uncertain economy. Pechaps they won't find work for the next month, and they may need the money to live. When spending is lower, then businesses would start shutting dewn and so are the companies a8 well COVID-19 The Coronavirus (COVID-19) has quarantined everyone and limit them into thelr houses. The ronds, factories, businesses, and companies arc locked because of the fear af being infected, In such circumstances, you can’t buy material or hire anyone te work. The canstruction companies won't find new clients and projects to work on. Conclusion After studying the swot analysis of a construction company, we have realized that the construction industry is @ very profitable business if the economy of the eount company should also follow new trends and adapt prevailing tech changesplanning and eomiral sxbsyster repli capital investment opportunities nd management of the long-Le (an emity nd effets of the capital markets far a company planning processes necessary to mamage the or Jhoices imcosporsies investment done sete possessions (called Concerning van money budgeting) Vesture On curren sakes would Hkewiss and only financing choices called wocking capital decision 2) Financial decisions - they iewify with those rising of particular fund fam disse! HSA = ich wll rey on choice for sor Br sorce, ime ff financing, expense about Fn ane the returns thereby. 4) Dividend decisiow-the fund administration faculty need with tke chores with views of the et benefit distribution. Net profits are generally divided ima tn «Dividend for shareholders- Dividend and the rae oft hrs uo be decided by Retained Profis-Amownt of retained profits has «0 be faallzed ‘which will depend upon expansion and diversification plans ofthe enterprst FINANCIAL MAN: AGEMENT rnmnetary related issues associates! with & advising on cash flow and payments! vratvworth, 2004, p. 514), Simibaly, Burton Shaw-Gunn (2009) described nancial ‘penapement tobe understanding wha, wen and Why. oats Wil Be incurred before the project uring the project knowing —what costs have been incurred Financaal managensent is the effective control of all project. The areas include —contollmg expeniitus. ‘commences and thenwher this expendiure happened and. wht future cosis art planed. (Grew Ban Jackson financial information with your beam ~ and simyone of Impostor us project The more they se reat mumibers he mane key they 00 oumable for an accurate reporting of rt to your project. What dot really mean by this” Ad the nd ofthe week, that ast ns. of Lime that penject team members aaa cy orrked but really cart accoum for have to go somewhere, Ad thal sem einy to be the projet whose project manage is NOT watching the financials Bt © tanh, 1F you discuss financials and any concerns wich them regulaety, then your project will not be the see oe thoes rey” hots charged wo Trust me on this ne. Bete yt ty i see for yourself (Brad Egeland 2014. Py 1) Financial Management should be consid ‘naset of stting up a wew business. but understandably in realay this in “C abways the case. Ul umber of triggers poms which can point towards a need fer proper Cnancia MaRABEMes practices as your trusiness grows, including: «Missing imponant dendines such as payment of bills or VAT return subrnission «You have less time 19 spend geverating sales and new business, or completing orders, a5 administration becomes a burden: « Invoicing not being completed ina timely manner and oustanding debts not being chased; « You may be suffering fro Hudgson, Blox) ratress and work may be toking over personal time, (ParEsss rhe imerview of D. Hugh Taylor by Mel Hensey addres four financial issues that cnginesring managers mst understand: and addeess throuph their accounting staff ‘llboratively provide for effective financial management of their consulting enginesring OF design firm, These areas are: basic financial dala, accounting reports and supper. other Peer ak management essentials, and acquisitions of ther Fs ‘The paper provides basic tckground and parameters for success financial management (D Hugh Taylor. Melville Hemsey, 1990). (Dr. Raza Ali Khan. Pg. 4) Financial risk and consirucuan goes hand: project developer. the rote risk: i shoulders, projet i 9 huge topic conterplating underfunded o¢-unerbidJct and ered hecks and m Joins chock agreements Consistency (Scour Wolfe, 2013) A closer understanding of the relationship between the two inter-related tomes of risk management and finance on construction projects, it is becoming increasingly crucial to be objectives ofthe investor, the owner fend — user) and the constructor and its supply in. Financial risk have beaadly be classified as Bankrupécy of project partner, Pivetustion tion rate, Fluctuation of interest rate, Fh st of exchange rate, Rise in for! prices. Insurance risk , Currency exchange risk, Liquidity Risk. Financial risk are ane of the critical risk faced by any construction industry as financial fhilures may lead to complete closer of the company leading to huge losses and legal suits. (Dr. Mf. J, Kothaikar, 2013. Pg 5} Maturity of Project Financial Management Financial management includes the processes of acquiring and managing the flaancial respurces for the projeet. Compared to project cost management, project financial management ie more concerned with revenue sources and monitoring net cash flows for the construction project than with managing day-to-day costs, The major processes involved i financial THantgement are Financial Planning. Financial Control, Administration and Records. (Abadir Hi. Yiraam, 2011. Pg 134)ke effective and et of reseurces wolders © Become more stakeholders fidence of fimding neenckes, park © Gain advantage ins competition for Prepare for long-term finanMETHODOLOGY Research Design First of all initial dita that is 4 as secondary data and is very necessary 10 conduct sources. The source of secondary data collection ncludes peevious research anicles, books and blogs related to risk management, Akhough in research papers this kind of data is regarded as secondary data but i is very useful and peovides: a lot of guidance in preparing imerview questions, i alsa helps in broadening your horizon and gives you different aspects ofthe topic to think about wing many research articles and books, some amicles and topics (that I found the c) were selected for review. Those cherry picked anicles were reviewed in detail data was prepared. acted and are requested for interview. People from both the side that is consukant and contractor side are interviewed, in order to obtain a comprehensive pulceme. In interviews first the whole background and nature ofthe rescarch stuly was conveyed to the interviewee, than they are asked to give their on potential risk that could occur indifferent risk catsgories during planning or construction phase, they are alsa asked in suggest the impact of risk and remedial measure that must be tasked to avert the‘GAL LLY TURE UU UCT aa STUDY DESIGN it of the is asked 3 represent the most. The main ‘© Phase 2: Interviewed Section Firstly, phase 1 consist of personal informtion of the expertise which includes there experience, designation and their organisat subdivided in five) portions with significant w the research stuy. This section includes the main objective of Ibe questionnaire which involves the particular questions to be interviewed details. The imerviewer section was by the expertise of the construction industry. These sections are enlisted according to the major construction phases which are required to build up the Finance of construction prope. The sections are as Gallows; Potential Entrants — the threal off new entraets, Industry Compesitors ~ rivalry amoeg, exssting, Firms Substitutes ~ the threat of substitwe products oe services: Buyers ~ the bargaining power of buyers: V. Suppliers - the bargaining power of suppliers ‘Afier conducting the survey the supgestions which were suggested by the expertise are examined aed there results are analyzed wo achieve the outcomes of the research saucy. Data Collection Methodalogy There can be various ways of bow data can be collected; @ caw be via persora! snicrview. tekphome imerviews, post maib, and anline, but due to time constraints ad availablity of aolPocenel to etiswre proper collection of d for some personal T sle-of | to S(where $ refers io the highest significance and 1 refers 1 abe less st < Targeted Audience “The targeted audience was constection industries professional proticing for wx 1 ‘years, Special attention given to the project managers, Resident Engineers, site staffs, contract vminisirators other managerial stafT of targeted companies who have significant exPs 0 ai Megace ioues, Tks dstacolocted Eromall thence stakebokiers ofthe construction walush¥ re mere Resed oa the contactors as theyane moe lvely Lo encounter withthe finance isosDATA ANALYSIS Analyses of Resp The interviews were conducted to ec sive point of Tabl Respondents ‘Contractor Client Consultant Total The below charts describe the section 1 ef the questionnaire as i's comprises of personal information of the iaterviewer whereas these charts hows the cumulative frequency of the section undes the following eaclings © Type (Table 1) Experience (Table 2) © Qualification (Table 3)Qualification Evaluation of Potential Entrants: According to the survey, respondents helieves that new entrants does effect the performance, 5 well as the resources and switching cost compare to the organization itself. The new eitcants give the organizations threats as well as opportunity to perform better. In order to- gain advantage, 75% respondents think that the company uses more resources to compete against them. Additionally 67% believes that switching cost effects on company peoject. Table: 4 POTENTIAL at % 7m ga new eotrnok tect companys i is company requiring more cash sa assets resources ta eampet satesrate ne ern? db pe cml ti oe deePp e E E fF E E GE E 5 t b rr i ir Evaluation of Industrial Competitors: a wide variety of investment within ihe penject diversification is generate A necessary to have a diversify project. Also the project. The more you diversify your ve advamage over the competitors INDUSTRY COMPETITORS '= boss eampetiion gives the | rovect a diveestication? : . L ‘Does cempotition effects the coat z 3 a 5 Evaluation of Substitutes: According ta the respondents, 67% agrees to have substitute product or services that is beneficial for Financial management also $B believes that it effects on performance of the project. If company hires nwre contractor or engineer in a project it gives best result in Hess time bur it will affect the finance of the company. Also in order to hawe any mishap happened companies always uses backup plan ready in order to gain competitive advantage,SUBSTITUTES Does th stants preduct oF svrvices sen high rect av a end management? Does substitute effects an the 2 : 5 Sometimes it bargains switching cost affects the project shows the survey, 30%. Also it information, and differentiation shows 33% improvement in construction livdustry. 42% believes that many consultants in-a project give the bess commutation an the praject. This shows ‘that switching cost gives the project more investment but it gives the effective result. Management focuses more on 3 enginoers on every project so that communication barriers mot come in between the profitability Evaluation of Buyers: Table: 7 ses ergs slching cost readve to em slicing cst "oes tert informatian and pects improves the cont eticincy anc _Bttensininconsretion neuatry? Does many eocsultant invoives in a WrageEvaluation of Suppliers: ves edge to the compet individual hellewes # oat, Also iniprowe the sncaes he harping ene at mop encaage the comenstion (dtheeration of qt mpc? sets the arguing ove of Shay prone the reat (tare ard integration elie 2 ‘rosa eftachrd feng atin of Evaluation af Delivery System: “The respondent was asked to mark the significance of delivery system which suit them best 1 andi financial issues oftheir Firm, which were anticipated through the Tierature review. After the statistical analysis it was found that overall design bid build has the highest significance in delivery system, | PageTable: # Evaluation of Phase of Ca ‘onstruction phase is the yysical work and extneme ‘ean be prevent by maintain th s schedule of critical path with resource loadin israted highest inthe # activity reporting to the client is also important ‘Table: 10 PHASES OF CONSTRUCTION i Wiad =Evaluation of Stakeholders: nterviewed that roction project engineers are highly responsible for Fahe project because at their stage th fh ist of tems, ding stages pl — play vital role in satisfying the all stakeholders, ACTUAL WORK DONE Week !-Induction program Week 2 -Intraduction and training session ‘Week 3-Leamed about how to check and fill tender ‘Week 4 Control Project costs, Quality arxd Progress Week $- Marth report Week 6 - Co-cedinate and verify project development process. Week 7+ Maintain Financial records Weck f+ Reporting all bills to avditar Also, Manage occupational health and safety in the workplace. Select, operate and mainiain equipment and supplies, Weekly wages provide to workers Participate in process improvement, Manage daily altendance in workplace Manage budgets and financial plans, Advice on Project and statutory requirementsCONCLUSION AND FINDINGS world is yeen the project stakebe ‘nance requires understanding about presentation, budget te Financial stability of the proje a some efforts to avoid the financial problens Research studics have shown that proper : u | management can be a major factor in the failure of projects, The above study focuses the different phases / aspects of the construction project and found that each phase has potential ta disturb financial steadiness and if proper arteation not pay Overall, it ean be concluded that to secure the finance of the project the management be very much dedicated to theit performance, cast and money of the firm, Whereas assuring financial management of the project ta be most effective it should have an ‘eagle eye over all the activities and techniques implemented on the project. Each and every item of the project must be enlisted so that finance of the project can easily he managed and be controlled by the authorities, Hence the delivery system which got the highest significance is design bid build! metho and construction phase possess maximum affect in the change of finance in the project whereas this all depends upon the engineer which can either safe the mauey of the project or get it to another Peat.REFRENC |hutps:/www aahyate conypdd Sampler n_lntro. pel ages Risk wsiry of developing eoumtries by Abaulr H Yimam 2 5. Burtonshaw-Ciunn, 8, A, (2009), Risk and financial management im construction. Surrey, © Publishing Linnited 6. Ashworth, A. (200), Cast studies ef'buildings (4th ed }, Harlow, England: Pearsac! Prentice Hall 7. NED university 8. Marketing Research by Philip kotlex 9, bap: burgesshodgson.co.uk/blog details asp? ArticleID-355# VijCSn¥rL IU 10, www-slideshare: met 11. Five Ways to Reduce Financial Risk on a Construction Project By Seat Wolfe 12. Research Methodology bry CR. Kathart