A

SUMMER TRAINING REPORT

at

Submitted in partial Fulfilment of

The requirement for the Degree of

Bachelor Of Business Administration (BBA)

Submitted By:
Md Rizwan : 2021068338
Kewlani Kashish Dinesh : 2021068340
Singhania Gopanshi Vivek : 2021052185
Shah Vivek Sanjeevkumar : 2021052168
Rathod Ananya Kamlesh : 2021052117

Under the guidance of:

Dr. Heta A. Desai

Assistant Professor
SDJ INTERNATIONAL COLLEGE, VESU
VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

JULY – 2023
 DECLARATION

We, the undersigned students of TYBBA (Sem. V), hereby declare that Summer
Training Report (STR - 501) prepared by us at below mentioned company is the
original work carried out by us and also is the result of our hard work and
compliance of all the policies and guidelines framed by the University, college
and the company concerned. We also declare that this report has been created by
us and has not been published anywhere else other than submitted to our SDJ
International College, Vesu, Surat.

Name of Student Name Of

SP ID Signature
Company

2021068338 MD RIZWAN

2021068340 KEWLANI KASHISH DINESH

KP
SANGHVI
2021052185 SINGHANIA GOPANSHI VIVEK
JEWELS
PVT. LTD.
2021052168 SHAH VIVEK SANJEEVKUMAR

2021052117 RATHOD ANANYA KAMLESH

Date :
Place : Surat
 ACKNOWLEDGEMENT

At this point, when we are about to finish our project work, it is our privileged opportunity to
thank all those people for their contribution provided to this Summer Training work.

Firstly, we wish our heartfelt thanks to in-charge principal of this college Dr. Aditi Bhatt, who
always motivate us to fulfil our dreams and lead us in the direction of growth. She has given
her valuable inputs for effective completion of this project.

Next, we would like to thank our IQAC Coordinator Dr. Vaibhav Desai, who always work
and think in the direction of betterment of the student and institute as well as supporting us
with all the necessary resources to finish our three golden years of graduation.

We cannot forget the contribution of my project guide Dr. Heta A Desai, without the support
of whom we would have never completed this report. His constant help, guidance and
continuous teaching has given us so many inputs on academic as well as non-academic front.

We also would like to thank Dr. Milind Parekh for availing necessary help during Summer
Training Report in the right direction.

I would also like to thank Mr. Viral Patel, Assistant Librarian, with the effort of whom,we could
get the insights and learning from past years report.

We thanks to Mr. Pritesh Patel, Company Mentor, Surat. For his valuable and continuous
guideline for preparation of Summer Training report.
 INDEX
Sr. No. Chapters Pg. No.
1 General Information 1
1.1 Name and Location of Company 2
1.2 Name and Location of Other Branches 2
1.3 Brief History 2
1.4 Name of Founders and Chairman 3
1.5 Vision Statements 4
1.6 Mission Statement and Values Shared 4
1.7 Organisational Structure/ Hierarchy 5
1.8 Controlling System 7
1.9 Corporate Social Responsibility 8
1.10 SWOT Analysis 12
2 Finance Department 14
2.1 Trading and P&L Account 15
2.2 Balance Sheet 17
2.3 Financial Statement Analysis 18
2.4 Ratio & their Interpretation 26
2.5 Accounting Procedure 37
3 Marketing Department 39
3.1 List Of Products 40
3.2 Number Of Customers 44
3.3 Major Competitors 44
3.4 PLC Concept & Association of their Product with Respect To 45
PLC Stage
3.5 Market Segmentation 46
3.6 Promotional Tools Used 47
3.7 Pricing Method Followed 52
4 Human Resources 54
4.1 Recruitment Procedure 55
4.2 Selection Process 59
4.3 Number of Employees 63
4.4 Attendance Maintenance 67
4.5 Dress Code 69
4.6 Training & Development Policy 71
4.7 Compensation Policy 75
4.8 Leave Policy 79
4.9 Safety Policy 88
4.10 Loan Policy 91
4.11 Work Norms Policy 94
4.12 Performance Appraisal Policy 97
4.13 Grievance Handling Procedure 101
5 Production Department 104
5.1 Plant Location 105
5.2 Plant Layouts Used 105
5.3 Raw Materials Used 107
5.4 System Used 108
5.5 Heavy Machineries Used 110
5.6 Products and Services produced 116
5.7 Process Used for Production 117
5.8 Description of Layout 132
5.9 Material Handling Equipment 133
5.10 Inventory Control Methods 135
5.11 Order Quantity, Lead Time, Reordering Level 135
5.12 APP (Aggregate Production Planning) 140
5.13 MPS (Master Production Schedule) 142
5.14 Bills of Material 143
5.15 Capacity Requirement Planning 145
5.16 Material Requirement Planning 148
5.17 Quality Control Techniques 151
5.18 Work Study 153
5.19 On the Job Training to Workers 154
6 Purchase Department 156
6.1 Purchase Procedure 157
6.2 Purchase Lead Time 163
6.3 Ordering Costs 164
6.4 List of Suppliers 168
6.5 Re-ordering Time 170
Conclusion 171
Bibliography 173
 CHAPTER-1

GENERAL INFORMATION

1
NAME AND LOCATION OF COMPANY
Name of Company : KP Sanghvi Jewels Pvt. Ltd.

Location of Company : Hazira - Adajan Rd, Ichchhapor, Hazira, Gujarat

Surat-394510

Year of Establishment : 30th May 2000

Chairman : Kishore Sanghvi

Founded by : Late Shri Hajarimal Sanghvi and Late Shri Babulal

Sanghvi.

1.2 NAME AND LOCATION OF OTHER BRANCH

NAME : KP SANGHVI INTERNATIONAL PVT.LTD.

ADDRESS : Plot No. GJ 04, SEEPZ++, SEEPZ-SEZ, Andheri East, Mumbai,

Maharashtra 400095

1.3 BRIEF HISTORY

Carrying their family values and a vision to establish their name in the Diamond Industry, two
brothers, Late Mr. Hajarimal Sanghvi and Late Mr. Babulal Sanghvi, set up a diamond trading
company in the post-Independence era. With their hard work and passion, they created a legacy
of 50 years and earned a great position in the diamond industry. Named after the initials of their
grandparents Kaniben and Poonamchand Sanghvi, The KP Sanghvi Group was built on the
foundation of four key pillars – Ethics, Morals, Foresight and Hard Work.

2
1.4 NAME OF FOUNDERS AND CHAIRMAN

FOUNDERS

Late Shri Hajarimal Sanghvi Late Shri Babulal Sanghvi

CHAIRMAN

Kishore Sanghvi

3
1.5 VISION STATEMENTS
We follow the tradition of upholding honesty, integrity, and ethics that foster growth without
compromising our core values. We strongly believe in empowering people by investing in
them, nurturing them, protecting them, and creating opportunities for them to grow and excel
within. With these core values as our guiding compass, coupled with a strong belief in organic
growth, we continue to leap forward in the global diamond industry and the world beyond. In
addition, to set examples of excellence on a global scale; we also strive to make a larger,
positive impact on the lives of all stakeholders by creating value and wealth for all.

We are always looking for new talent to join the company. If you think the KP Sanghvi Group
is a good fit for you, head over to our careers page for more information.

1.6 MISSION STATEMENT AND VALUES SHARED

Ever since then, the company has dedicated itself to the art of craftsmanship with perfection
and diligence, exemplified in our products, ethics, and people. I am determined to build a
compelling link between all the generations of the KP Sanghvi family and enable the group to
reach higher heights.

Upholding the values and inspiration gathered by the first generation, we have fostered a strong
relationship with clients all over the world while maintaining the integrity and true essence of
our legacy. Having faith in the power of observance, organization, and patience has led to
bridging a gap between generations. It has also helped us lay a solid foundation for the future
of KP Sanghvi.

We have reached higher heights because of the values instilled in us and the loyalty of our
customers, ambitious and talented employees, and our mining suppliers. We believe in
delivering exceptional customer service as our work is a temple and K P Sanghvi is a name
synonymous with trust.

A sincere and heartfelt thanks to all who have helped us carve this legacy and perfection.

4
1.7 ORGANISATIONAL STRUCTURE/ HIERARCHY

CEO
Jimit Sanghvi

INTERNATIONAL

HR
(Vaishali Dalvi)

PD INTL & MIS

SALES
(ANKITA SHAH)

ECom EU CAD / CAM / Design

Merchandising
(Ashish Mody) (Aakar Shah) (Harisha / Ashvini /
Jitendra / Suryakant)
US EU Sales US ME
(Gautam Begani / (Mayur) (Jyoti, Bijal, Zakir) (Kirti, Kashish)
Rinku Ghia)

EU Sales EU
(Harsh) ECom
(Zelam, Nidhi,
US Sales Team (Mahesh)
Deepesh)
(Bruce, Laura,
Russell, Traci)
NRI Sales MIS US Back Office
(Mita) Team
(Shruti Shah)

ME Intl Sales Mktg Back Office

(Kamlesh Solanki) (Narayan M)

DIAMOND BUYING
F & A (RONAK INTL (PRATIK /
KHANDELWAL) NILESH)

HIGH END DESIGN

INC Intl
(Hardik Barbhaya) (Anil Chavan) (ADHIR GUPTA)

5
 CEO
(Jimit Sanghvi)

Domestic + International HR
(Shailesh Rathod) (Aparajit Chatterjee)

HR OD Team
Sales
(Pritesh Patel) (Dhanraj / Nikunj)

North ROI
(Aakar Shah) Operational HR
(Rajnish & Manish)
(Vaishali / Pritesh)
West & Central East
(Ravi Jain & Jinesh
Jain) (Ankur Jhaveri)
PD & R /D
South (Ankita Shah)
(Tushar Shah)
ME Indian Retailers NRI Nepal CAD / CAM / Design Sample
(Kamlesh Solanki) (Shruti Shah)
(Sunil Dattani) (Saraj Gouda)

F&A Merchandising Operations & B/O

(Sonam Jain) Team (Aaliya Mukri)

Accounts & MIS Costing MBMG Corporates

(Raj Patel) (Umesh Rana) (Priyanka Jain) (Ruchika / Raju)

Accounts & Exim Standalone North

(Kiran Patel) (Komal Dhotre) (Azmin Baria)

Mfg (Dom) Mfg (Intl)

(Govind Sawant)
(Virendra Singh)
Mfg
CL Second Floor (Amit Barot) Diamond
(Vacant) (Suresh) (Manish Dani)
Ground Floor (AC) 1st Floor
PPC Refinery (Santosh Shetty) (Sandeep Lad) Diamond Team
(Swapnil Lad) (Anand Ghewade) (Sangam , Priyesh)
Second Floor Third Floor
Central Stores (Guru / Santosh) (Rahul)
(Ashish) (Amulya Patra) Exim
(Sarjerao Mane)
PPC Refinery
Diamond Diamond Buying (Sushant Mane) (Jayanto Pandit)
(Jay / Nikhil) Domestic Exim Team
(Pratik / Nilesh) Central Stores (Ganesh & Sanket)
(Anita Poojary) (Raju Patere)

High End production Sampling Intl

Adhir Gupta (Amit Das)

Production CNC (Marol)

(Suraj Gouda) F & A (Intl) Chains & Findings (Vacant)
(Anil Chavan) (Apoorva Jhaveri)

IT S/W
IT H/W
(Madhumeeta)

Mumbai Surat
Software Team (Nitin Kataria) (Manish Bedre)

6
1.8 CONTROLLING SYSTEM

INDUSTRIAL HYGIENE

• Food Hygiene- Hygiene in food and beverage production ensures that food and
beverage products are fit for human consumption. This means that food and beverages
are free from levels of hazardous contaminants that could result in an unacceptable risk
to human health. Clean utensils are also provided in the dining hall to the workers to
ensure proper hygiene.
• General Manufacturing- Manufacturing hygiene aims to prevent product contamination
that may occur through the introduction of unwanted materials, substances or
microorganisms into a manufactured good or process. Different stages have different
hygiene requirements, so appropriate procedures need to be established, documented
and monitored for each stage.
• Workplace Housekeeping- Cleanliness is maintained in the industries from entry to exit.
This includes regular sweeping and mopping, cleaning of tables and workspaces and
organising the materials like papers and documents. Waste is also disposed regularly.
• Assessing Risks- Conducting a full assessment of the facility provided, finding out
which key areas are prone to clutter, spills, dirt, and other environmental factors that
can affect everyone’s health and safety, such steps are taken to assess the risk involved
in the workplace.
• Ventilation - Industrial ventilation systems are designed to exhaust and intake a specific
amount of air at a specific speed, which results in the removal of undesirable
contaminants in a specific area or space. While all ventilation systems follow the same
basic principles, each system is designed specifically to match the type of work and the
rate of contaminant release by an industrial process.
• PPE Kits – PPE kits are provided to workers to ensure that any hazardous particles do
not come in contact with the skin that could cause damage to the bare skin or affect
health.

7
WORK ENVIRONMENT

• Clear Communication- Proper devices like landlines and mobiles are used for seamless
internal communication experience. For specific agendas, quick short calls are
organised. It allows everyone to share their inputs and feel that their ideas are being
valued.
• Effective Teamwork- Company sets clear goals for the organisation. They clearly define
roles and responsibilities for every team member. The company incorporates
transparency with regular team meetings to assign tasks and establish shared goals to
ensure that everyone is on the same page and working towards the same goals. The
corporation focuses on creating a strong sense of commitment within workers by
allowing them to spend some time together and develop a relationship with their team.
Managers encourage inclusivity and variety of thinking while giving every team
member the freedom to express their open thoughts and ideas on the current topic.
• Diversity- In order to increase workplace diversity, the management examines the
company’s composition and culture and employs diverse candidates at all stages of
recruiting. The Company updates workplace policies to be more inclusive like dress
codes, holidays, parental leave, work schedule, etc. Another way this company
promotes inclusivity and welcoming of diverse hires is by hosting diversity training for
current employees
• Respect- The management promotes constructive criticism and praises the strengths of
the employees. In resolving workplace conflicts, the manager actively listens while
identifying points of agreement and disagreements ensuring swift and fair tackling of
issues, treating people with respect and dignity, and thus encouraging a culture of
positive employee relations.
• Employee Well-being- The managers recognise and appreciate hardworking employees
and make them realise what a crucial part of company they are, to inspire and make
them feel fulfilled and satisfied with their jobs. Teamwork can be stressful – but it is
inevitable part of work process. By enabling easy collaboration, managers optimize
their employees’ wellbeing and decrease their stress levels.

8
1.9 CORPORATE SOCIAL RESPONSIBILITY
KP Sanghvi stands for much more than just diamonds, jewellery, or infrastructure. The name
carries a certain value and stature with which comes a sense of responsibility to society at large.
Our business philosophy is based on integrity, honesty, trust, and the need to balance business
success with social responsibilities. Based on these principles, we have contributed toward
giving back to the community as part of our strong social ethics.

• The first woman-only diamond polishing factory in Surat is a first-of-its-kind initiative by

the KP Sanghvi Group, to help women be independent and have a livelihood within the
context of India's patriarchal society.

9
• KP Sanghvi is committed to enhancing renewables for the benefit of society and mother
earth. 20% of the total electricity consumption is received from renewable energy sources
like Solar. So far, the energy generation amounts to 15381203 kwh.

• KP Sanghvi Hospital and Eye Care provides medical care and medical educational
opportunities as a part of its activities to serve the community.

10
• On May 30th, 1998; our founders, devout followers of Jainism, constructed a place of
worship called the Pavapuri Tirth Dham.

• Established over two decades ago, the KP Sanghvi Charitable Trust allows us to provide
aid, welfare, and disaster relief across the nation

11
1.10 SWOT ANALYSIS

Strength

• Reliable suppliers.

• Beforehand Production Planning.

• Successful track record of developing new products.

• Automation of activities with advanced technologies like 3D printing, CAD etc.

• Strong Cash Flow in hand.

• Highly skilled workforce through successful training and learning program.

• Most trusted brand for diamonds and coloured stones.

• Customization of orders available as per customer’s need.

• 3-4 days priority basis delivery period.

Weakness

• The marketing of the products left a lot to be desired.

• New technologies require increased investment.

• Not highly successful at integrating firms with different work culture.

• Inventory Management is not optimum.

• Customization of orders increases complexity and time consumed for production.

Opportunities

• New market opportunities due to rise in customer trends.

• Opening up of new markets because of globalization.

• Organization’s core competencies can be a success in similar product field.

• Demand of coloured stones are increasing globally.

• Tie-up with established brands (white labelling opportunities)

• Changes in environmental policies builds up opportunities for expanding market base.

12
Threats

• Change in people’s preference.

• The demand of the highly profitable products is seasonal in nature.

• Competition from global companies.

• Rise in Inflation leading to lower price margin as price cannot be changed repeatedly.

• Labour and export laws in different countries are different.

• The company has not been able to tackle the challenges present by the new entrants in
the segment and has lost small market share in the niche categories.

13
 CHAPTER-2

FINANCE DEPARTMENT

14
2.1 TRADING & P&L ACCOUNT:
Figures for the period Figures for the period
(Current reporting (Previous reporting
period) period)
Particulars
From: From:
01/04/2020 01/04/2019

To: To:
31/03/2021 31/03/2020

(I) Revenue from Operations

Domestic Turnover
(i) Sales of goods manufactured 251,620,283.00 483,077,137.00
(ii) Sales of goods traded 91,016,635.00 43,239,970.00
(iii) Sales or supply of services 45,485,102.00 49,566,654.00
Export turnover
(i) Sales of goods manufactured 262,481,189.00 0.00
(ii) Sales of goods traded 0.00 0.00
(iii) Sales or supply of services 4,339,619.00 0.00
(II) Other Incomes 4,341,745.00 147,590.00
(III) Total Revenue [I+II] 659,284,573.00 576,031,351.00
(IV) Expenses
Cost of material consumed 532,771,543.00 437,315,881.00
Purchases of stock in trade 11,900,763.00 8,535,047.00
Changes in inventories of -3,002,371.00 -41,997,119.00
-Finished goods
-Work-in-progress -64,106,671.00 6,021,978.00
-Stock in trade 0.00 0.00
Employee benefit Expense 67,504,621.00 66,328,627.00
Managerial remuneration 0.00 0.00
Payment to Auditors 126,000.00 126,000.00
Insurance expenses 1,497,689.00 1,796,931.00
Power and fuel 3,480,667.00 4,320,455.00
Finance cost 101,718.00 83,192.00
Depreciation and Amortization 7,582,351.00 6,162,557.00
expense
Other Expenses 63,410,186.00 60,880,171.00
Total Expenses 621,266,496.00 549,573,720.00
(V) Profit before exceptional and 38,018,077.00 26,457,631.00
extraordinary items and tax (III-
IV)
(VI) Exceptional Items 0.00 0.00
(VII) Profit before extraordinary 38,018,077.00 26,457,631.00
items and
tax (V-VI)
(VIII) Extraordinary Items 0.00 0.00
(IX) Profit before Tax (VII-VIII) 38,018,077.00 26,457,631.00
(X) Tax Expense
(1) Current Tax 9,345,420.00 7,207,555.00

15
 (2) Deferred Tax 551,518.00 230,821.00
(XI) Profit (Loss) for the period from 28,121,139.00 19,019,255.00
continuing Operations (IX-X)
(XII) Profit/(Loss) from 0.00 0.00
discontinuing
operations
(XIII) Tax expense of discontinuing 0.00 0.00
operations
(XIV) Profit /(Loss) from 0.00 0.00
discontinuing
operations (after tax) (XII-XIII)
(XV) Profit/ (Loss) (XI+XIV) 28,121,139.00 19,019,255.00
(XVI) Earnings per equity share
before extraordinary items
(1) Basic 281.21 190.19
(2) Diluted 281.21 190.19
(XVII) Earnings per equity share
after extraordinary items
(1) Basic 281.21 190.19
(2) Diluted 281.21 190.19

16
2.2 BALANCE SHEET:
Figures for the period Figures for the period
(Current reporting (Previous reporting
period) period)
Particulars
31/03/2021 31/03/2020

(I) EQUITY AND LIABILITIES

(1) Shareholder's Fund
(a) Share capital 2,750,000.00 2,750,000.00
(b) Reserves and surplus 553,550,725.00 525,429,586.00
(c) Money received against share 0.00 0.00
warrants
(2) Share application money pending 0.00 0.00
allotment
(3) Non-Current Liabilities
(a) Long term borrowings 0.00 0.00
(b) Deferred tax liabilities (net) 0.00 0.00
(c) Other long-term liabilities 0.00 0.00
(d) Long term provisions 2,854,218.00 1,615,355.00
(4) Current Liabilities
(a) Short term borrowings 10,000,000.00 0.00
(b) Trade payables 106,709,180.00 54,926,597.00
(c) Other current liabilities 12,426,921.00 2,755,292.00
(d) Short term provisions 146,235.00 133,901.00
Total 688,437,279.00 587,610,731.00
(II) ASSETS
(1) Non-current assets
(a) Fixed assets
i. Tangible assets 41,624,757.00 32,783,377.00
ii. Intangible assets 547,191.00 603,880.00
iii. Capital work-in-progress 21,579,084.00 0.00
iv. Intangible assets under 0.00 0.00
development
(b) Non-current Investments 14,570,205.00 62,187,754.00
(c) Deferred tax assets (net) 46,937.00 514,270.00
(d) Long term loans and advances 5,496,141.00 11,752,598.00
(e) Other non-current assets 155,466.00 129,392.00
(2) Current Assets
(a) Current Investment 0.00 0.00
(b) Inventories 437,277,711.00 313,326,747.00
(c) Trade receivables 126,263,625.00 151,819,260.00
(d) Cash and cash equivalents 13,961,833.00 4,533,959.00
(e) Short term loans and advances 23,662,781.00 9,587,988.00
(f) Other current assets 3,251,548.00 371,506.00
Total 688,437,279.00 587,610,731.00

17
2.3 FINANCIAL STATEMENT ANALYSIS
Analysis of Financial statements is a systematic process of analysing the financial information
in the financial statements to understand and take economic decisions.

TECHNIQUES OF FINANCIAL STATEMENT ANALYSIS

Analysis of Financial Statements involves analysis and interpretation of Financial Statements.
For this, a number of tools or techniques have been developed by financial experts.
Commonly used tools for Financial Statement Analysis are:

I. COMPARATIVE STATEMENTS
Comparative Statements or Comparative Financial Statements mean a comparative study of
individual items or components of financial statements, i.e., Balance Sheet and Statement of
Profit & Loss of two or more years of the enterprise itself.

In Comparative Statements, amounts of two or more years are placed side by side along with
change in amounts in absolute and percentage terms to facilitate comparison. Both Statement
of Profit and Loss and Balance Sheet are prepared in the form of Comparative

Statements or Comparative Financial Statements. This technique of financial analysis is also

known as Horizontal Analysis. This technique is used for intra-firm analysis (i.e.,
comparison of actual values of one period with those of another period for the same firm) as
well as for inter-firm analysis (i.e., comparison of actual values of one firm with another firm
of similar nature and size).

Absolute Change = Current Year - Previous Year

Percentage Change = Absolute Change x100

Amount of Previous Year

II. COMMON-SIZE STATEMENTS

Common-size Statements or Common-size Financial Statements mean statements in which
individual items of financial statements of two or more years are placed side by side and
thereafter converted into percentages taking a common base. Common base taken is Total
Assets are Total of Equity and Liabilities, in the case of Common-size Balance Sheet and
Revenue from Operations, in the case of Common-size Statement of Profit & Loss.

18
In Common-size Balance Sheet, the Total Assets or Total of Equity and liabilities is taken as
100 and all amounts are expressed as percentage of total. Similarly, in Common-size
Statement of Profit & Loss, Revenue from Operations, i.e., Net Sales is taken as 100 and all
amounts of incomes and expenses are expressed as a percentage of Revenue from Operations,
i.e., Net Sales. This technique of financial analysis is also known as Vertical Analysis.

III. RATIO ANALYSIS

Ratio is an arithmetical expression of relationship between two related or interdependent
components of financial statements of an accounting period. An analysis of financial
statements with the help of accounting ratios is termed as Ratio Analysis. Ratio Analysis is an
important tool or technique for analysing financial statements, i.e., Balance Sheet and
Statement of Profit & Loss. It helps in assessing the profitability, solvency, liquidity and
efficiency of an enterprise.

19
 I. COMPARATIVE STATEMENTS:
• Comparative Balance Sheet Statement
Particulars Note Previous Year Current Year Absolute Percentage
No. 2019-20 2020-21 Change Change
(I) EQUITY AND LIABILITIES
1 Shareholder's Fund
(a) Share capital 2,750,000.00 2,750,000.00 0.00 0%
(b) Reserves and surplus 525,429,586.00 553,550,725.00 28,121,139.00 5.35%
(c) Money received against share
warrants 0 0 0.00 0.00%
2 Share application money
pending allotment 0 0 0.00 0.00%
3 Non-Current Liabilities
(a) Long term borrowings 0 0 0.00 0.00%
(b) Deferred tax liabilities (net) 0 0 0.00 0.00%
(c) Other long-term liabilities 0 0 0.00 0.00%
(d) Long term provisions 1,615,355.00 2,854,218.00 1,238,863.00 76.69%
4 Current Liabilities
(a) Short term borrowings 0 10,000,000.00 10,000,000.00 0.00%
(b) Trade payables 54,926,597.00 106,709,180.00 51,782,583.00 94.28%
(c) Other current liabilities 2,755,292.00 12,426,921.00 9,671,629.00 351.02%
(d) Short term provisions 133,901.00 146,235.00 12,334.00 9.21%
Total 587,610,731.00 688,437,279.00 100,826,548.00 17.16%
(II) ASSETS
1 Non-current assets
(a) Fixed assets
i. Tangible assets 32,783,377.00 41,624,757.00 8,841,380.00 26.97%
ii. Intangible assets 603,880.00 547,191.00 (56,689.00) (9.39%)
iii. Capital work-in-progress 0 21,579,084.00 21,579,084.00 0.00%
iv. Intangible assets under
development 0 0 0.00 0.00%
(b) Non-current Investments 62,187,754.00 14,570,205.00 (47,617,549.00) (76.57%)
(c) Deferred tax assets (net) 514,270.00 46,937.00 (467,333.00) (90.87%)
(d) Long term loans and advances 11,752,598.00 5,496,141.00 (6,256,457.00) (53.23%)
(e) Other non-current assets 129,392.00 155,466.00 26,074.00 20.15%
2 Current Assets
(a) Current Investment 0 0 0.00 0.00%
(b) Inventories 313,326,747.00 437,277,711.00 123,950,964.00 39.56%
(c) Trade receivables 151,819,260.00 126,263,625.00 (25,555,635.00) (16.83%)
(d) Cash and cash equivalents 4,533,959.00 13,961,833.00 9,427,874.00 207.94%
(e) Short term loans and advances 9,587,988.00 23,662,781.00 14,074,793.00 146.80%
(f) Other current assets 371,506.00 3,251,548.00 2,880,042.00 775.23%
Total 587,610,731.00 688,437,279.00 100,826,548.00 17.16%

20
 • Comparative P & L Statement
Particulars Note Previous Year Current Year Absolute Pecrcentage
No. 2019-20 2020-21 Change Change
(I) Revenue from Operations
Domestic Turnover
(i) Sales of goods manufactured 483077137.00 251620283.00 (231456854.00) (47.91%)
(ii) Sales of goods traded 43239970.00 91016635.00 47776665.00 110.49%
(iii) Sales or supply of services 49566654.00 45485102.00 (4081552.00) (8.23%)
Export turnover
(i) Sales of goods manufactured 0.00 262481189.00 262481189.00 0.00%
(ii) Sales of goods traded 0.00 0.00 0.00 0.00%
(iii) Sales or supply of services 0.00 4339619.00 4339619.00 0.00%
(II) Other Incomes 147590.00 4341745.00 4194155.00 2841.76%
(III) Total Revenue [I+II] 576031351.00 659284573.00 83253222.00 14.45%
(IV) Expenses
Cost of material consumed 437315881.00 532771543.00 95455662.00 21.83%
Purchases of stock in trade 8535047.00 11900763.00 3365716.00 39.43%
Changes in inventories of 38994748.00 (92.85%)
-Finished goods (41997119.00) (3002371.00) 0.00 0.00%
-Work-in-progress 6021978.00 (64106671.00) (70128649.00) (1164.55%)
-Stock in trade 0.00 0.00 0.00 0.00%
Employee benefit Expense 66328627.00 67504621.00 1175994.00 1.77%
Managerial remuneration 0.00 0.00 0.00 0.00%
Payment to Auditors 126000.00 126000.00 0.00 0.00%
Insurance expenses 1796931.00 1497689.00 (299242.00) (16.65%)
Power and fuel 4320455.00 3480667.00 (839788.00) (19.44%)
Finance cost 83192.00 101718.00 18526.00 22.27%
Depreciation and Amortization
expense 6162557.00 7582351.00 1419794.00 23.04%
Other Expenses 60880171.00 63410186.00 2530015.00 4.16%
Total Expenses 549573720.00 621266496.00 71692776.00 13.05%
Profit before exceptional and
(V) extraordinary items and tax (III-IV)
26457631.00 38018077.00 11560446.00 43.69%
(VI) Exceptional Items 0.00 0.00 0.00 0.00%
Profit before extraordinary items
(VII)
and tax (V-VI) 26457631.00 38018077.00 11560446.00 43.69%
(VIII) Extraordinary Items 0.00 0.00 0.00 0.00%
(IX) Profit before Tax (VII-VIII) 26457631.00 38018077.00 11560446.00 43.69%
(X) Tax Expense
(1) Current Tax 7207555.00 9345420.00 2137865.00 29.66%
(2) Deferred Tax 230821.00 551518.00 320697.00 138.94%
Profit (Loss) for the period from
(XI)
continuing Operations (IX-X) 19019255.00 28121139.00 9101884.00 47.86%
Profit/(Loss) from discontinuing
(XII)
operations 0.00 0.00 0.00 0.00%
Tax expense of discontinuing
(XIII)
operations 0.00 0.00 0.00 0.00%
Profit /(Loss) from discontinuing
(XIV)
operations (after tax) (XII-XIII) 0.00 0.00 0.00 0.00%
(XV) Profit/ (Loss) (XI+XIV) 19019255.00 28121139.00 9101884.00 47.86%

21
 Particulars Note Previous Year Current Year Absolute Pecrcentage
No. 2019-20 2020-21 Change Change
(XVI) Earnings per equity share before 0.00 0.00%
(1) Basic 190.19 281.21 91.02 47.86%
(2) Diluted 190.19 281.21 91.02 47.86%
(XVII) Earnings per equity share after 0.00 0.00%
(1) Basic 190.19 281.21 91.02 47.86%
(2) Diluted 190.19 281.21 91.02 47.86%

22
II. COMMON-SIZE STATEMENTS
• Common-size Balance Sheet Statement
Particulars Note Percentage of
No. Absolute Amounts Balance Sheet Total
Previous Year Current Year Previous Current
2019-20 2020-21 Year (%) Year (%)
(I) EQUITY AND LIABILITIES
1 Shareholder's Fund
(a) Share capital 2,750,000.00 2,750,000.00 0.47% 0.40%
(b) Reserves and surplus 525,429,586.00 553,550,725.00 89.42% 80.41%
(c) Money received against share
warrants 0 0 0.00% 0.00%
2 Share application money
pending allotment 0 0 0.00% 0.00%
3 Non-Current Liabilities 0.00% 0.00%
(a) Long term borrowings 0 0 0.00% 0.00%
(b) Deferred tax liabilities (net) 0 0 0.00% 0.00%
(c) Other long-term liabilities 0 0 0.00% 0.00%
(d) Long term provisions 1,615,355.00 2,854,218.00 0.27% 0.41%
4 Current Liabilities
(a) Short term borrowings 0 10,000,000.00 0.00% 1.45%
(b) Trade payables 54,926,597.00 106,709,180.00 9.35% 15.50%
(c) Other current liabilities 2,755,292.00 12,426,921.00 0.47% 1.81%
(d) Short term provisions 133,901.00 146,235.00 0.02% 0.02%
Total 587,610,731.00 688,437,279.00 100.00% 100.00%
(II) ASSETS
1 Non-current assets
(a) Fixed assets
i. Tangible assets 32,783,377.00 41,624,757.00 5.58% 6.05%
ii. Intangible assets 603,880.00 547,191.00 0.10% 0.08%
iii. Capital work-in-progress 0 21,579,084.00 0.00% 3.13%
iv. Intangible assets under
development 0 0 0.00% 0.00%
(b) Non-current Investments 62,187,754.00 14,570,205.00 10.58% 2.12%
(c) Deferred tax assets (net) 514,270.00 46,937.00 0.09% 0.01%
(d) Long term loans and advances 11,752,598.00 5,496,141.00 2.00% 0.80%
(e) Other non-current assets 129,392.00 155,466.00 0.02% 0.02%
2 Current Assets
(a) Current Investment 0 0 0.00% 0.00%
(b) Inventories 313,326,747.00 437,277,711.00 53.32% 63.52%
(c) Trade receivables 151,819,260.00 126,263,625.00 25.84% 18.34%
(d) Cash and cash equivalents 4,533,959.00 13,961,833.00 0.77% 2.03%
(e) Short term loans and advances 9,587,988.00 23,662,781.00 1.63% 3.44%
(f) Other current assets 371,506.00 3,251,548.00 0.06% 0.47%
Total 587,610,731.00 688,437,279.00 100.00% 100.00%

23
 • Common-size P & L Statement
Particulars Note Percentage of Balance
No. Absolute Amounts Sheet Total
Previous Year Current Year Previous Current
2019-20 2020-21 Year (%) Year (%)
(I) Revenue from Operations
Domestic Turnover
(i) Sales of goods manufactured 483,077,137.00 251,620,283.00 83.88% 38.42%
(ii) Sales of goods traded 43,239,970.00 91,016,635.00 7.51% 13.90%
(iii) Sales or supply of services 49,566,654.00 45,485,102.00 8.61% 6.94%
Export turnover 0.00% 0.00%
(i) Sales of goods manufactured 0 262,481,189.00 0.00% 40.08%
(ii) Sales of goods traded 0 0 0.00% 0.00%
(iii) Sales or supply of services 0 4,339,619.00 0.00% 0.66%
Total Sales 575,883,761.00 654,942,828.00 100.00% 100.00%

(II) Other Incomes 147,590.00 4,341,745.00 0.03% 0.66%

(III) Total Revenue [I+II] 576,031,351.00 659,284,573.00 100.03% 100.66%
(IV) Expenses
Cost of material consumed 437,315,881.00 532,771,543.00 75.94% 81.35%
Purchases of stock in trade 8,535,047.00 11,900,763.00 1.48% 1.82%
Changes in inventories of
-Finished goods (41,997,119.00) (3,002,371.00) (7.29%) (0.46%)
-Work-in-progress 6,021,978.00 (64,106,671.00) 1.05% (9.79%)
-Stock in trade 0 0 0.00% 0.00%
Employee benefit Expense 66,328,627.00 67,504,621.00 11.52% 10.31%
Managerial remuneration 0 0 0.00% 0.00%
Payment to Auditors 126,000.00 126,000.00 0.02% 0.02%
Insurance expenses 1,796,931.00 1,497,689.00 0.31% 0.23%
Power and fuel 4,320,455.00 3,480,667.00 0.75% 0.53%
Finance cost 83,192.00 101,718.00 0.01% 0.02%
Depreciation and Amortization
expense 6,162,557.00 7,582,351.00 1.07% 1.16%
Other Expenses 60,880,171.00 63,410,186.00 10.57% 9.68%
Total Expenses 549,573,720.00 621,266,496.00 95.43% 94.86%
Profit before exceptional and
(V) extraordinary items and tax (III-IV)
26,457,631.00 38,018,077.00 4.59% 5.80%
(VI) Exceptional Items 0 0 0.00% 0.00%
Profit before extraordinary items
(VII)
and tax (V-VI) 26,457,631.00 38,018,077.00 4.59% 5.80%
(VIII) Extraordinary Items 0 0 0.00% 0.00%
(IX) Profit before Tax (VII-VIII) 26,457,631.00 38,018,077.00 4.59% 5.80%
(X) Tax Expense
(1) Current Tax 7,207,555.00 9,345,420.00 1.25% 1.43%
(2) Deferred Tax 230,821.00 551,518.00 0.04% 0.08%
Profit (Loss) for the period from
(XI)
continuing Operations (IX-X) 19,019,255.00 28,121,139.00 3.30% 4.29%
Profit/(Loss) from discontinuing
(XII)
operations 0 0 0.00% 0.00%

24
 Particulars Note Absolute Amounts Percentage of Balance
No. Previous Year Current Year Previous Current
2019-20 2020-21 Year (%) Year (%)
Tax expense of discontinuing
(XIII)
operations 0 0 0.00% 0.00%
Profit /(Loss) from discontinuing
(XIV)
operations (after tax) (XII-XIII) 0 0 0.00% 0.00%
(XV) Profit/ (Loss) (XI+XIV) 19,019,255.00 28,121,139.00 3.30% 4.29%
Earnings per equity share before
(XVI)
extraordinary items
(1) Basic 190.19 281.21 0.00% 0.00%
(2) Diluted 190.19 281.21 0.00% 0.00%
Earnings per equity share after
(XVII)
extraordinary items
(1) Basic 190.19 281.21 0.00% 0.00%
(2) Diluted 190.19 281.21 0.00% 0.00%

25
III. RATIO ANALYSIS & THEIR INTERPRETATION
1. Liquidity Ratios:
Liquidity Ratios are the ratios computed to evaluate the capability of the entity to
meet its short-term liabilities. Commonly used liquidity ratios are:
(a) Current Ratio or Working Capital Ratio
The current ratio is a liquidity ratio that indicates a company’s capacity to repay
short-term loans due within the next year.
Current Ratio = Current Assets (CA)
Current Liabilities (CL)
Current Assets Current Current Ratio
Liabilities
2019-2020 479,639,460 57,815,790 8.3:1
2020-2021 604,417,498 129,282,336 4.68:1

Current Ratio
9
8
7
6
5
4 8.3
3
2 4.68
1
0
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: The current ratio describes the relationship between a company's assets and
liabilities. An ideal current ratio is 2:1. From the above graph we can interpret that in
the previous year the current ratio was 8.3 which is quite higher than the ideal ratio;
indicating unequal employment of funds by the company. Current Ratio has improved
in the current year falling from 8.3 to 4.68 indicating better management of funds as
compared to last year but company still has scope of improvement.

26
 (b) Quick Ratio or Acid Test Ratio
Liquid Ratio or Quick Ratio or Acid Test Ratio is a liquidity ratio which
measures the ability the enterprise to meet its short-term financial obligations,
i.e., Current Liabilities. It establishes the relationship between liquid assets and
current liabilities.

Liquid Ratio = Liquid Assets

Current Liabilities
(Liquid/Quick Assets = Current Assets - Inventories - Prepaid Expenses)

Liquid Assets Current Quick Ratio

Liabilities
2019-2020 166,312,713 57,815,790 2.88:1
2020-2021 167,139,787 129,282,336 1.29:1

Quick Ratio
3.5

2.5

1.5 2.88
1

0.5
1.29

0
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: The quick ratio explains the company's capacity to pay its current liabilities
without needing to sell its inventory or obtain additional financing. An ideal quick ratio
is 1:1. From the above graph we can interpret that in the previous year the liquid ratio
was 2.88 which falls to the liquid ratio of 1.29 in the current year. The liquid ratio of
the previous year is quite high as compared to signalling inventory holdups while the
liquid ratio of the current year indicating that the company is in good financial health
with regard the ability to pay off the debt obligations.

27
2. Solvency Ratios:
'Solvency Ratios' are the ratios which show whether the enterprise will be able to
meet its long-term financial obligations, i.e., long-term liabilities.
(a) Debt to Equity Ratio (D/E)
Debt to Equity Ratio shows relationship between long-term Debts and Equity
(i.e., Shareholders Funds) of the enterprise. It is computed to assess long-term
financial soundness of the enterprise.
Debt to Equity Ratio = Debt
Equity
(Debt = Long-term Borrowings + Long-term Provisions)
(Equity = Share Capital + Reserve and Surplus)
Debt Equity Debt to Equity Ratio
2019-2020 1,615,355 528,179,586 0.003:1
2020-2021 2,854,218 556,300,725 0.005:1

Debt to Equity Ratio

0.006

0.005

0.004

0.003
0.005
0.002
0.003
0.001

0
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: The D/E ratio explains how much of a company is owned by creditors
compared with how much shareholder equity is held by the company. An ideal D/E
ratio is 2:1. From the above graph we can interpret that in both the previous the D/E
ratio was as low as 0.003 and in the current year with a slight growth in the D/E ratio
was 0.005 (less than 1); indicating that the company is utilizing its assets and borrowing
less money from the market.

28
 (b) Debt to Assets Ratio
The debt-to-total-assets ratio shows how much of a business is owned by
creditors compared with how much of the company's assets are owned by
shareholders.
Debt to Assets Ratio = Total Debt
Total Assets
(Total Debt = Short-term Debts + Long-term Debts)
(Total Assets = Total Assets = Non-Current Assets (Fixed assets.i.e., Tangible
and Intangible assets + Non-Current Investment + Long Terms loans and
Advances) + Current Assets)
Total Debt Total Assets Debt to Total Assets
Ratio
2019-2020 1,749,256 586,967,069 0.0029:1
2020-2021 13,000,453 666,655,792 0.0195:1

Debt To Asset Ratio

0.025

0.02

0.015

0.01 0.0195

0.005
0.0029
0
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: The D/A ratio explains a how much debt a company owns compared to its
assets. An ideal D/A ratio should be less than 1. From the above graph we can interpret
that in both the previous year the D/A ratio was as low as 0.0029 and in the current year
with a slight growth in the D/E ratio was 0.0195 (less than 1); indicating that the
business has more assets than it does debt.

29
 (c) Proprietary Ratio
The proprietary ratio is a financial ratio that measures the proportion of a
company’s total assets that are financed by its shareholders’ equity.
Proprietary Ratio = Shareholder's Funds
Total Assets

(Shareholder’s Fund = Share Capital + Reserves and Surplus)

Shareholder’s Fund Total Assets Proprietary Ratio
2019-2020 528,179,586 587,610,731 0.9:1
2020-2021 556,300,725 688,437,279 0.81:1

Proprietary Ratio
0.92

0.9

0.88

0.86

0.84
0.9
0.82

0.8

0.78 0.81

0.76
2019-2020 2020-2021

2019-2020 2020-2021

Analysis: From the above graph we can interpret that in both the previous the
proprietary ratio was 0.899 and in the current year with a slight decrease in the
proprietary ratio was 0.81; indicating almost no risk to unsecured lenders and creditors
and the enterprise getting benefit of trading on equity.

30
3. Activity Ratios:
Activity Ratios are also known as Performance ratios or Turnover Ratios. These
ratios measure the effectiveness with which the enterprise uses its available
resources.
(a) Inventory Turnover Ratio
The inventory turnover ratio, is the number of times a business sells and replaces
its stock of goods during a given period.
Inventory Turnover Ratio = Cost of Revenue from Operations (COGS)
Average Inventory

Here, Cost of Revenue from Operations is also known as Cost of Goods Sold.

Cost of Revenue Average Inventory Inventory

from Operations Turnover Ratio
2019-2020 414,196,242 375,302,229 1.10 (in times)
2020-2021 481,043,931 375,302,229 1.28 (in times)

Inventory Turnover Ratio

1.3

1.25

1.2

1.15
1.28
1.1

1.05 1.1

1
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: Inventory Turnover ratio shows the number of times amount invested in
inventory is rotated. A very high Inventory Turnover Ratio shows overtrading and it
may result in working capital storage. 1.28 portrays a lengthy inventory turnover cycle
and the company needs to work on it.

31
 (b) Working Capital Turnover Ratio
Working Capital Turnover Ratio shows the relationship between working
capital and Revenue from Operations. It indicates the number of times a unit of
Rupee invested in working capital produces sales.
Working Capital Turnover Ratio = Revenue from Operations
Working Capital
(Working Capital = Current Assets – Current Liabilities)

Revenue from Working Capital Working Capital

Operations Turnover Ratio
2019-2020 575,883,761 421,823,670 1.37 (in times)
2020-2021 654,942,828 475,135,162 1.38 (in times)

Working Capital Turnover Ratio

1.39
1.38
1.37
1.36
1.35
1.34 1.38
1.37
1.33
1.32
1.31
1.3
2019-2020 2019-2021
2019-2020 2019-2021

Analysis: Working Capital Turnover Ratio is used to ascertain whether or not the
working capital has been effectively used in generating revenue. From the above graph
we can interpret that the enterprise has similar ratio in both the years, indicating a
company is on the solid ground in terms of liquidity and is able to generate a larger
number of sales.

32
4. Profitability Ratios
Profitability Ratios helps the enterprise to check the efficiency in business.
Profitability Ratios are:

(a) Gross Profit Ratio

The Gross Profit Ratio is used to determine the efficiency with which the
production or purchase operations and selling operations are carried on.
Gross Profit Ratio = Gross Profit x 100
Revenue from Operations
(Gross Profit is also known as Profit before exceptional and extraordinary items
and tax)

Gross Profit Revenue from Percent

Operations
2019-2020 161,687,519 575,883,761 28.08 %

2020-2021 173,898,897 654,942,828 26.55 %

Gross Profit Ratio

28.5

28

27.5

27
28.08
26.5

26 26.55

25.5
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: Gross Profit Ratio established the relationship of Gross Profit and Revenue
from Operations. This ratio shows the gross profit margin on goods sold. From the
above graph we can observe that there is decline in current year from past year, which
indicates comparatively lower profitability.

33
 (b) Operating Ratio
Operating Ratio is used by the organization to determine how efficient a
company’s management is at keeping operating costs low while at the same
time generating revenues or sales by comparing the total operating expenses of
a company to that of its net sales.
Operating Ratio = Operating Cost x 100
Revenue from Operations
(Operating Cost = Cost of Materials Consumed + Purchases of Stock-in-Trade
+ Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-
Trade + Employees Benefit Expenses + Depreciation and Amortization
Expenses + Other Expenses (other than Non-operating Expenses))
Operating Cost Revenue from Operations Percent
2019-2020 547,567,597 575,883,761 95.08 %
2020-2021 619,541,089 654,942,828 94.59 %

Operating Profit Ratio

95.2
95.1
95
94.9
94.8
94.7 95.08
94.6
94.5
94.59
94.4
94.3
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: Lower Operating Ratio is considered better because it leaves higher profit
margin to meet its non-operating expenses, to pay dividend, etc. A rise in the Operating
Ratio usually indicates in decline in its efficiency.

34
 (c) Net Profit Ratio
Net Profit Ratio is the percentage of after-tax profit of the enterprise to its net
sales. It reveals the remaining profit after all costs of production, administration
and financing have been deducted.
Net Profit Ratio= Net Profit After Tax x 100
Revenue from Operations
Net Profit after Tax Revenue from Operations Percent
2019-202 19,019,255 575,883,761 3.30%
2020-2021 28,121,139 654,942,828 4.29%

Net Profit Ratio

5
4.5
4
3.5
3
2.5
2 4.29
1.5 3.3
1
0.5
0
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: Net Profit Ratio is an indicator of overall efficiency of the businesses. Higher
ratio is considered better for the business. In the previous year of 2019-2020 the
percentage was 3.30 which increased to 4.29 in the current year of 2020-2021 indicating
an improvement in the operational efficiency.

35
 (d) Return on Investment Ratio

Return on Investment (ROI) is a performance measure used to evaluate the

profitability of an investment or compare the efficiency of a number of different
investments.
Return on Investment = Profit before Interest, Tax and Dividend x 100
Capital Employed
(Capital Employed = Share Capital + Reserves and Surplus + Long-term
Borrowings + Long-term Provisions)

Net Income Average Assets Percentage

2019-2020 26,457,631 529,794,941 5%
2020-2021 38,018,077 559,154,943 6.8 %

Return on Investment Ratio

8

4
6.8
3
5
2

0
2019-2020 2020-2021
2019-2020 2020-2021

Analysis: Calculating the ROI can be helpful as it is a fair measure of the profitability.
The ROI of any company must be compared with its own ratio of the previous year
which was 5 % which inclined to 6.80 % in the current year. Rise or Improvement in
the ROI indicates that the company has increased in sales which lead to rise in revenue.

36
2.4 ACCOUNTING PROCEDURE
KPS Jewels usually follows the eight basic steps of Accounting Cycle; these steps are often
automated through accounting software and technology programs.

Recording the Posting from

Determining
Identifying the transactions journal books
the Unadjusted
transactions. into journal to ledger
Trial Balance.
books. accounts.

Preparing the
Closing the Adjust the trial Adjusting the
financial
books. balance. Journal Entries.
statements.

• Identifying the Transactions.

Each economic transaction is identified and properly recorded in the company’s books
of accounts. Recordkeeping is essential for recording of transactions. There are
expenses other than sales which are also to be recorded.

• Recording the Transactions into Journal Books.

Point of sale technology can help to combine steps one and two, but company also
tracks their expenses. The method for recording transactions depends on whether the
organisation uses the accrual basis or the cash basis of accounting for its accounting.
Regardless of the actual cash receipt and payment, revenues and costs are recorded in
the entity's books in the period in which they are generated and incurred, respectively,
under the accrual method of accounting. Cash accounting, on the other hand, only
records transactions when actual cash is received or paid. The Company follows
double-entry accounting; each transaction has a debit and a credit equal to each other.

• Posting from Journal Books to Ledger Accounts.

Once a transaction is recorded as a journal entry, it is posted to an account in the general
ledger. The general ledger provides a breakdown of all accounting activities by account.
Due to the fact that practically all accounting is now done electronically, the ledger is

37
 no longer as important as it once was because all transactions are now automatically
registered.

• Determining the Unadjusted Trial Balance.

A trial balance tells the company its unadjusted balances in each account (this is usually
done electronically and automatically, but not always). This stage can catch a lot of
mistakes if those numbers do not match up. The unadjusted trial balance is then carried
forward to the fifth step for testing and analysis

• Adjusting the Journal Entries

To check if the debits and credits are equivalent, a worksheet is made. There will need
to be modifications made if there are inconsistencies. When using accrual accounting,
adjusting entries could be required for revenue and expense matching in addition to
identifying any problems.

• Adjusting the Trial Balance

When all the adjusting entries have been completed, a trial balance must be created
before creating the financial statements to ensure that all the credits and debits balance
out.

• Preparing the financial statements.

The corporation then creates its income statement, balance sheet, and cash flow
statement after making any necessary adjustment entries.

• Closing the Books.

In the eighth step, the company finally completes the accounting cycle by closing its
books at the end of the day on the designated closing date. The concluding remarks
offer a report for analyzing performance throughout the course of the time. Closing is
typically an excellent time to submit paperwork, make plans for the following reporting
period, and go through a schedule of upcoming activities.

38
 CHAPTER-3

MARKETING DEPARTMENT

39
3.1 LIST OF PRODUCTS
List of some of the products which are offered here at KP Sanghvi:

1. BRACELET

2. BANGLE

40
3. NECKLACE SET

4. NOSE PIN

41
5. EAR RINGS

6. PENDANT

42
7. MEN’S RING

8. PENDANT SET

43
9. TANMANYA

3.2 NUMBER OF CUSTOMERS

KP Sanghvi Jewels Pvt. Ltd. caters up to more than 200 local and international consumers.

3.3 MAJOR COMPETITORS

• Sheetal Jewellery House LLP

• Kiran Gems Pvt. Ltd.
• Aura Jewels
• Uni-Design Jewellery Pvt. Ltd.

44
3.4 PLC CONCEPT & ASSOCIATION OF THEIR PRODUCT
WITH RESPECT TO PLC STAGE

KPS Jewels Pvt. Ltd. is in the Growth Stage

• Sales are increasing quickly; three of the top 5 clients of the firm, Caratlane, Tanishq,
and Malabar Gold & Diamonds, have all been placing more and more orders over the
previous 1.5–2 years.
• Increasing profitability - From a financial perspective, the growth phase of the product
life cycle leads to more sales and income. Over the previous few years, the Company
has easily met its sales goals. In 2022–2023, the company had growth of 30%; this year,
a growth rate of 35% is the goal.
• Expansion - The business intends to increase the size of its activities by building a new
hub that is more than 1,60,000 square feet. The manufacturing of jewelry will be
centered at this hub, while the present plant will remain operational using just
diamonds. Price to penetrate market - The Company uses decreased prices to capture
major market share and it has been proven successful.
• Build intensive distribution - The business makes its items available to clients in every
market imaginable.

45
3.5 MARKET SEGMENTATION

MARKETING SEGMENTATION

MASS SEGMENTATION

KPS Jewels Pvt. Ltd. uses mass segmentation i.e., serves a diverse range of
customers and markets. All are welcome as long as they meet the margin
requirements. With mass segmentation, a corporation chooses to ignore the
distinctions between market segments and appeal to the whole market with a
single product or strategy. The goal of disseminating a message to as many
individuals as possible is supported by this tactic.

Advantages of mass segmentation:

• A large number of customers, as there’s no target audience; every person is a potential
customer for the business.
• A large customer base reduces the customer acquisition cost of the business;
• Targeted ads cost a lot of money when compared to the mass messaging system.

Disadvantages of mass segmentation:

• This method may not be feasible for many small businesses because they lack the
resources, labour, and capital requirements needed for mass marketing.
• Increased competition is another challenge, as mass segmentation follows a general
approach and cannot tap into niche markets with specific needs. This leaves a gap for
the competitors.

46
3.6 PROMOTIONAL TOOLS USED
1. User-Friendly and Aesthetic Jewellery Website.

KPS Jewels, a renowned jewellery company, has crafted a remarkable online presence
through their impeccably designed website and a logo that perfectly embodies their
brand identity. The company's website stands out for its exceptional user-friendliness,
allowing visitors to navigate effortlessly and explore their stunning collection of
jewellery. The website has been skilfully optimized to be mobile responsive, ensuring
a seamless and visually appealing browsing experience across various devices. With
the inclusion of a convenient search bar prominently displayed, users can quickly and
efficiently find their desired pieces, enhancing the overall functionality of the website.
KPS Jewels' dedication to creating an intuitive and accessible online platform
exemplifies their commitment to providing exceptional customer service and
establishing a strong digital presence in the competitive jewellery market.

2. Post High Resolution Photos of Your Jewellery.

The Company takes great care in regularly sharing high-resolution pictures online,
which are captured by professional cameras and edited to ensure the best quality.
Additionally, they employ CAD designers who utilize specialized software to create
digital images that closely resemble real-life products. This meticulous attention to
detail in visual representation serves as a powerful tool for attracting new customers
and keeping existing clients informed about the latest products, designs, and styles. By
providing visually appealing and lifelike images, the Company successfully engages its
audience, ignites their interest, and keeps them updated with the exciting offerings

47
 available. This proactive approach to showcasing their products helps the Company
establish a strong online presence and effectively communicate their brand's vision and
creativity.

3. Recent Social Media Advertising.

In order to expand its reach and connect with a wider audience, the company has taken
a proactive approach by developing its presence on popular social media platforms,
such as Instagram. By creating official accounts on these platforms, the company can
engage with users in a more interactive and visually appealing manner. Social media ad
campaigns have proven to be a highly effective strategy for the company, enabling them
to target and reach potential customers who may not have been aware of their products
or services previously. Through well-crafted advertisements and engaging content, the
company can showcase its offerings and highlight its unique selling points to captivate
the attention of prospective clients. This concerted effort on social media has not only
attracted new customers but has also helped solidify the company's presence and
reputation among potential clients who may be seeking similar products or services. By
establishing a strong online presence through social media, the company has opened up
new avenues for growth and brand awareness, ultimately contributing to its overall
success.

48
4. Email Marketing for Jewellery Brands.

KPS Jewels sends emails to promote their jewellery products. It's a great strategy
because it helps them connect with their customers on a personal level. They can send
personalized messages and offers directly to their customers' email inboxes. This makes
the customers feel special and valued. It's also a smart way to build a loyal customer
base because they can keep in touch with their customers and provide them with
exclusive benefits and updates. By sending emails, KPS Jewels can learn more about
what their customers like and want, and they can use this information to improve their
products and services. Overall, email marketing is a perfect strategy for KPS Jewels to
reach and engage with their customers in a personalized way and build strong
relationships with them.

5. Social Media Influencer Strategy.

All of Serena Williams Jewellery is carefully made by KP Sanghvi, who pays great
attention to detail. KP Sanghvi works closely with Serena, taking her guidance and
making sure the jewellery matches her vision. The company has also collaborated with
other well-known influencers and top brands to promote their jewellery. By working
with these influencers and brands, they get more exposure and reach a wider audience.
It's a way for the company to showcase their jewellery to more people and build their
reputation. Collaborating with influencers and high-profile brands helps them create
buzz and generate interest in their jewellery. Overall, it's a strategy that has helped the
company gain recognition and grow their brand.

49
6. Events and Exhibitions.

KPS Jewels actively participates in a variety of events, exhibitions, and conventions

held in different countries, such as Las Vegas and Singapore. At these gatherings, they
set up booths dedicated to showcasing their stunning collection of jewellery. By
attending these events, KPS Jewels has the opportunity to reach a targeted audience
consisting of individuals who are genuinely interested in their offerings. The booths are
meticulously designed to leave a lasting impression, captivating visitors with the beauty
and craftsmanship of their jewellery. By being present at these events, KPS Jewels
ensures that their brand remains in the forefront of people's minds, leaving an indelible
mark and fostering potential connections and partnerships.

50
7. Selling Jewellery with local Retailers.

KPS Jewels expands their reach by partnering with reputable high-end brands like
Caratlane and Tanishq, who sell their jewellery in their stores. This collaboration helps
KPS Jewels build greater brand awareness and instil trust among consumers. By
offering their pieces through these established retailers, KPS Jewels can leverage their
partner's reputation and customer base to reach a wider audience. To maintain the trust
and reputation, KPS Jewels maintains high quality standards and ensures that their
products meet the specific requirements of the retailers. This collaboration not only
enhances the visibility and availability of KPS Jewels' jewellery but also establishes
their brand as a trusted and sought-after choice among discerning customers.

51
3.7 PRICING METHOD FOLLOWED

Cost-plus pricing • Calculate your costs and add a mark-up.

Competitive pricing • Set a price based on what the competition charges.

Price skimming • Set a high price and lower it as the market evolves.

• Set a low price to enter a competitive market and raise

Penetration pricing it later.

• Base your product or service’s price on what the

Value-based pricing customer believes it’s worth.

ADVANTAGES DISADVANTAGE

Cost- • Time-saving way to price • Does not incorporate

plus pricing the value to the
customer
Value- • A boon to artisanal • Not beneficial for all
based pricing goods, high-tech products products where
and other unique services. differentiation is not a
key variable.

52
VALUE-BASED PRICING

In value-based pricing, the perceived worth to the client is largely determined by how well it
meets their individual requirements and wants. The customers here are the brands that place
bulk orders under the white-label manufacturing services that KPS Jewels Pvt. Ltd. offers.

The price is set by the customer that’s placing the order, if the company cannot match the price,
they have to let go of the order completely. That can entail making product changes to better
suit the price range provided by the client.

COST-PLUS PRICING

RAW
IN-HOUSE
MATERIALS
RAW Here, the price
PROVIDED
Here, the price MATERIALS includes:
BY CLIENTS
includes: Metal, Coloured
Labour Cost + Gemstones &
Production cost + Diamond Cost +
Margin* Labour Cost +
Production cost +
Margin*

*Margins differ from client to client as some people have a

tendency to bargain but large corporations prefer fixed margins.

53
 CHAPTER 4

HUMAN RESOURCE DEPARTMENT

54
4.1 RECRUITMENT PROCEDURE
4.1.1 Objective
• The success of an organization largely depends upon its team members who strive
to exceed customer expectations despite a rapidly changing and competitive
industry. Therefore, hiring of competent team members to meet the business goals
is essential for the success of the organization.
• The purpose of this section is to explain the Recruitment and Selection process
followed at KPS which will be used as a guideline for any Recruitment and Selection
to be carried out across all KPS locations so as to keep the processes uniform.

4.1.2 Scope
• All full-time prospective candidates - salaried, temporary staff, retainers or on
contract

4.1.3 Guidelines for Recruitment Process

Annual Manpower Planning

• The recruitment process would normally be the result of a formal manpower

planning budgeting exercise conducted at the beginning of the accounting
year.
• The and annual manpower planning requirements have to be approved by the
management in consultation with the HOD’s through Manpower Requisition
Form.
• The steps to be followed for the Manpower Planning Process is as follows:
1. Current Headcount Review – HOD’s are required to assess their
current manpower & match it with the future requirement concurrent
with the yearly budgeting exercise. Manpower Plans will need to be
submitted to HR by HOD’s along with budgets giving details of the
position(s) and the schedule of filling in the positions by the last
week of November every year.
2. Proposed / Required Headcount – Recruitment plan for the year
will be based on growth plans of the company, projects in pipeline,

55
 size of the project and thus the team requirement.
3. Recruitment Budget, Costing and Sourcing- Once the recruitment
plan is finalized, HR will work on the recruitment budget for the year.
The points to be considered while recruitment of candidates are as
follows:
• New positions – Necessitated by an assessment of KPS
business, market environment, strategy and business plan, and
changes in structure and the annual plans. This will form part
of the sanctioned force table of the organization.
• Replacement positions - Vacant due to separations, transfer,
promotions, death, etc.

Types Of Employees

Full time salaried Contract

Temporary Staff Retainers
employees Employees
•Salaried employees •Employees who •Employees NOT •A contract
on the payroll of work in KPS but on the payroll of employee is one
KPS working full are hired on the company but who is on the
time with company temporary / hired to provide or payroll of an
as specified from contract basis for a render domain external agency
time to time short duration; are expertise to the that contracts out
not entitled to few organization. the employee’s
benefits services to the
•Employees who employer
have crossed their
retirement age, but
are required by the
organization may
be placed under
this category.

56
Manpower Requisition

• All the recruitments shall be done only as per the manpower plan which should
be frozen at the beginning of the year based on the business plan.
• Any vacancy arising due to business exigencies and not budgeted will have
to be approved by the respective Line Manager / Director.
• Based on the urgency of the recruitment, HR department shall decide on the
sources of recruitment and timelines of completion of recruitment process.
• HR department shall send regular updates to the Line Manager on the status of
the recruitment process.

Job Descriptions (JD)

• A detailed job description is drafted for all positions – existing and new. Position
descriptions are to be reviewed whenever the duties or requirements of a position
change significantly, or whenever a new position is proposed.
• A revised position description is a pre-requisite for any recruitment action. JDs
are to be drawn up by HR in close consultation with the HOD.

Channels of Recruitment

The following channels will be used to source talent based on the requirement of the
position:
• Internal Sources: Employee Referrals, Internal Job Posting etc.

• External Sources: Placement Consultants, Institutes, Job Portals, Social

Networking etc.

The decision to choose a particular source of recruitment from the above table would
depend on the cost and time factors subject to approval from the management.

57
The following chart depicts the various stages of the recruitment and selection process of the
organization:

Manpo New
wer Recruit Selectio Hire On
Offer &
Requisit ment n -
Hire
ion stages Process boardin
Process g

•Identification •Sourcing •Technical Test •Finalization of •Handover of

of vacancy by candidates – (If any) employment employee
Line Manager Internal & terms (Salary Joining kit
– whether external •HR Interview negotiation)
replacement or sources •Joining
new •Line manager / •Reference Formalities –
•Creating CV HOD interview Check Documentation
•Approval of database
vacancy by •Interview with •Offer letter •07-30-60-90
Director/HOD •Shortlist Director (If days
on requisition candidates reqd) Onboarding
form & JD
approval
•Final approval
•Creating JD

58
4.2 SELECTION PROCESS
4.2.1 Guidelines for Selection Process
• The selection panel will need to share a common understanding and / or agree on
the job description, selection criteria and method of assessment of shortlisted
candidates.
• All candidates will go through 2 – 3 rounds of personal interview and / or
accompanied by technical assessment tests wherever deemed suitable by the HR
and / or the management.
• All candidates need to fill the Application Form before their interview commences.
• HR department will conduct the first level of screening / interview and short-listing
of resumes obtained from various sources based on the job description detailed by
the reporting manager. Along with the screening, a technical assessment (If
required) will also be done.
• Based on the feedback received, the candidates will be called for the next round of
interview with the Reporting Manager / Functional Head / Departmental Head.
• The final round of interview will be with the Director (If required). The grid table
for the conduction of interviews is as below:

1st Round of 2nd Round of 3rd Round of

Position Grade
Interview Interview Interview
Senior Management
L1 & L2 COO / CHRO** CEO / CHRO** -
Level
Middle Management M1 / M2 / Hiring Manager /
HR Manager CEO / COO
Level M3 Dept. Head
Junior Management E1 / E2 / E3
HR Manager Hiring Manager Dept Head
Level
Others (Staff /
G1 / G2 HR Executive Hiring Manager -
Worker
** Either of the two rounds

• HR department will be responsible for making arrangements for the interviews like
ensuring availability of interviewers, arranging for the venue of interviews,
communicating vacancy details and coordinating for interview timelines with the
candidates, plan the logistics etc.

59
 • Applicants who submit false information or who do not include material information
about their employment history at any point during the recruitment process shall be
disqualified from the interview process, and if hired, could subsequently be terminated.
• At the end of the interview, the interviewer(s) will have to fill in the Interview
Assessment Form.
• Only if the candidate meets the selection criteria in the first round of interview, he / she
will be recommended to the next round.
• In case of any disagreement with the recommendations on any aspect, the interviewer
must make detailed notes on reasons for rejection.

4.2.2 Reference Check

• HR shall conduct a reference check with the references provided by the candidate after
obtaining prior consent of the candidate. The reference checks would be done by the
way of e-mail / telephone.
• The HR department will also carry out background checks of candidates to whom an
offer is made on the information provided by the employee. In the event of any
discrepancy or issue arising from such checks, the HR department will meet with the
employee to clarify such issues. In the absence of satisfactory clarification, the
Company will rescind the employee’s offer and permanently bar the employee from
reapplication for positions within the Company.
Background checks may include:
• Identity check
• Academic / Professional Verification
• Background Verification (Proof of Residence, etc.)
• Previous Employment Verification
• Performance at the previous employment
The reference check form is a structured questionnaire for reference check as a process which
is mandatory for all grades.

The following steps should be followed while conducting reference checks:

• Ensure that the candidate gives reference that know him well professionally or
academically.
• Candidate’s permission will be taken before conducting the reference check

60
 process.
• Reference check may be done over a telephone / email by HR Department only.

Making an Offer

• HR department shall issue an offer letter (Annexure 5) to the candidate once he

clears all the rounds. HR shall decide the compensation in consultation with the
Directors and / or Line Managers. Any offer, where the designation / grade / any
relevant or important data being offered is different from that indicated on the
approved vacancy, shall require prior approval of the management.
• No hiring shall be done in the absence of an approved MRF (Manpower Requisition
Form).
• Approved manpower requisition indicating the vacancy / position is mandatory
before finalizing and rolling out an offer. This is applicable for all positions.
• A copy of offer letter must be duly signed by the prospective employee and returned
to the HR department for record purpose.
• If the candidate refuses the offer / compensation negotiation is not successful, HR
shall inform the respective Line Manager. On the approval of the Directors,
renegotiation of the compensation may be initiated. HR will arrange for a meeting
with the backup / alternative candidate.

Candidate Fitment

• The fitment process should be done in such a manner that internal parity is largely
maintained. Exceptions to this rule will need the approval of the management
• Typically, the offer will be based on the pay scales that are applicable for the current
level, seniority and skill levels within the existing teams.
• The offer is subject to the successful completion of reference check process.

Issue of Appointment Letter

• HR department shall issue a formal appointment letter to the candidate along with
the job description on the day of joining. The appointment letter shall contain details
of the terms and conditions of employment along with the salary structure.

61
 • The employee must sign and return the copy of the appointment letter and complete
other formalities on the day of joining. If an employee does not return the signed
copy, it will be deemed that the employee has not accepted all the terms and
conditions therein and his employment maybe terminated forthwith.

Trainees / Apprentice / Consultants / Contract Staff

• The Company may appoint Apprentice / Trainees at different levels /

grades as per business requirements. Their tenure in the company shall be
for a period of 12 to 36 months.

• The Company may appoint contract staff based on the needs of the client
or the project. In such a case the contract agency will be appointed to
provide the necessary manpower staff.

• The Consultants / Retainers would be paid retainership fee based on the

agreement in the contract. The fee will be agreed upon at the time of
entering into the contract.

62
4.3 NUMBER OF EMPLOYEES

Active Employees [2022-23]

1800
1600
1400
1200
1000
800
600
400
200
0
April'22 May'22 June'22 July'22 Aug'22 Sept'22 Oct'22 Nov'22 Dec'22 Jan'23 Feb'23 Mar'23 April'23
Out Sourcing 0 0 0 139 138 0 0 0 0 0 0 0 0
KPS Jewels 483 563 597 639 685 699 695 721 746 666 666 674 716
Total 483 563 597 778 823 699 695 721 746 666 666 674 716

Recruited Employees [2022-23]

250

200

150

100

50

0
May'22 June'22 July'22 Aug'22 Sept'22 Oct'22 Nov'22 Dec'22 Jan'23 Feb'23 Mar'23 April'23
Outsourcing 8 7 11 6 0 0 0 0 0 0 0 0
KPS Jewels 75 108 69 103 63 17 89 34 42 34 55 70
Total 83 115 80 109 63 17 89 34 42 34 55 70

63
4.3.1 Employee Graphs with respect to Active Employees April’23

Gender

131

585

Male Female

Staff & Worker

49
85 151

431

Production Staff Production Worker Product Development Enabling

64
Active Employees Head Count (Tenure Wise)
14 8

222

472

0-1 yrs 1-5 yrs 5-10 yrs 10 yrs & above

65
4.3.2 Employee Graphs with respect to Recruited Employees
[Last 12 months]

Recruited - Gender [KPS Jewels]

76

683

Male Female

Recruited Staff & Worker [KPS Jewels]

19
86 125

529

Production Staff Production Worker Product Development Enabling

66
4.4 ATTENDANCE MAINTENANCE

4.4.1 Objective

• To reduce the time that is consumed when attendance is taken manually. Unlike the
manual process, an online system easily helps management to analyze employee’s
attendance details as per requirement.

4.4.2 Attendance Recording System

• There are 5 biometric machines at this corporation to record the attendance of every
employee.
• First punch-in to last punch-out equals to one attendance.
• Only purchase department employees are allowed to punch in several times in order to
make purchases, as employees are not allowed to use their cell phones.
• The HR manager pulls in the daily attendance records from the machines and then
enters the data in the system.

67
4.4.3 Benefits
• Reliable Accuracy
There were plenty of issues and errors when manual systems were used. For instance, some
employees neglected to enter their time accurately, and other times they purposefully exploited
the system through entering extended periods of time. Such problems have been resolved by
automated attendance systems, which are renowned for their reliability and precision in
timekeeping. There are little to no possibilities of your staff tampering with the system because
they collect and log data in real-time.
• Increased Productivity
Calculating the pay for each employee while gathering and maintaining attendance data
manually may be extremely time-consuming and labor-intensive. The manual process is also
prone to errors which can translate to payroll errors. With an automated attendance
management system, you can drastically save time and effort in keeping track of your
employees.

68
4.5 DRESS CODE
4.5.1 Objective
At KPS, employees are required to maintain a smart dress code which reflects a clean, neat and
professional environment.

4.5.2 Scope
This policy covers all employees of KPS who do not have a uniform to be worn (whether
contractual or employed on permanent basis).

4.5.3 Guidelines
While in Office / Business Meetings / Weekdays
Men: Formal trousers with full or half sleeve shirts. Footwear should be black or brown shoes
on normal days of working
Women: Sarees, Salwar Kameez and / or Western formal dresses. Footwear would include
sandals / leather shoes
Casual dressing if worn during weekdays will be with the permission of the unit head and will
adhere to the guidelines mentioned under ‘Saturday Dressing’

Saturday Dressing
• Clean and neat casuals which includes jeans / denims and smart T-shirts without
abusive and insensitive messages / images
• Footwear on these days will include sneakers / sandals well suited to the dress
• Short pants, track suits, caps, multi pocket denims, cargo pants, kurtas, chappals,
slippers, bare feet etc. are not allowed.

Uniform for Production Employees

• Company shall provide uniforms annually to production employees which should be
worn while at work on all working days. It shall be the responsibility of the employees
to maintain the uniform. No additional allowance will be given to maintain the uniform.
In case the uniform is torn, worn out or stolen, the employee shall have to bear the
expenses of buying a new pair for himself. Frequent incidence of non-compliance (i.e.
not wearing uniform while on duty) shall lead to disciplinary action.
• Personal Protection Equipment (hand gloves, lab coat & face mask) provided by the
company is to be worn at all times by the employees wherever required as a safety
precaution.

69
 • All employees are given slippers to be worn inside the factory (All such items gather
gold dust, which is collected & refined for use in future).
• Laundry facility will be provided by the company for employees for washing their
uniform.

Jewelry and Piercing

• Employees working in the production department in the company are not allowed to
wear any kind of jewelry – chains, rings, earrings etc. For married women only
mangalsutra is allowed.
• In order to maintain a safe workplace, wearing facial piercings, ear piercing is not
permitted (i.e. nose rings, eyebrow rings, tongue, etc.). Body piercing, tongue studs are
not permitted and must be removed before coming on duty.
• Any accessories such as watches and belts etc. are also not permitted for production
staff within the workplace and if worn should be with prior permission only.

Tattoos
Visible tattoos are to be discouraged and where present should not be offensive to others. They
are deemed to be offensive and should be appropriately covered

Hair
Hair should be neat and tidy at all times. Headscarves worn for religious purposes are
permitted. Facial hair for men is permitted provided that it is kept neat and in shape.

Facial Covers
Employees wearing facial coverings (veil/burqa) for religious reasons are expected to remove
them whilst on duty to ensure their identification.

Disciplinary action taken for any inappropriate dressing

• If the clothing fails to meet the defined standards as mentioned above, employees shall
be asked not to wear such inappropriate dress again.
• If the offence is repeated beyond one occasion, employees shall receive a warning in
writing.

70
4.6 TRAINING & DEVELOPMENT POLICY

4.6.1 Objective

• To ensure success of the organization by continual development of its employees with

the necessary competencies to perform at the highest level.
• Professional development of our people and recognize the importance of training and
development for them.
• To help our people enhance their skills and knowledge at every opportunity in order to
perform their current job more efficiently and effectively and to be better prepared for
career opportunities which may arise.

4.6.2 Scope

• This policy applies to all employees irrespective of their employment status, function,
grade or location.

4.6.3 Types of Training

1. Induction Training

• It has been detailed above in the Induction Policy for reference. Induction is also
considered to be a training intervention for new employees.
2. In-House Training

• In-house training helps to close the occupational training needs gap. Employees may
be required to attend the in-house courses provided by the HOD / Training Manager.
Such courses provide the skills and knowledge needed for one to perform the job and
they are held at regular intervals. Details of all such training interventions conducted
by the business units will have to be shared with the HR for record in Training
attendance sheet.
3. External Training

• External training can help an employee in keeping abreast of the latest market updates
and reduce the shortfalls of an employee in meeting their job objectives and

71
 performance requirements. Such training may refer to seminars offered or conducted
by other training companies and are open for public participation.
• Any sponsorship of such training must be justified by the line manager and approved
by the HOD, subject to allocation of the staff training budget.
3. On the Job Training (OJT)

• In – house and on-the-job training is an on- going activity which is entrusted upon the
Head of Department / Reporting Manager to administer to the team while they work on
the process and while performing it.
• The Manager must identify gaps for his team members and impart / provide / make
provision for technical training to enable to the team to perform better at work / job.
• The manager also identifies the soft skills gap for his team members.

4.6.4 Guidelines of the Process

1. Responsibilities

• It is the responsibility of the Functional Head to:

• Identify and consider training and development as an integral part of the
business planning process.
• Ensure that the training and development needs of all staff are assessed and
provided for in accordance with this policy.
• Agree and identify appropriate and cost-effective training and development
solutions.
• Nominate team members and send approvals to HR for record purpose.
• All employees are responsible for:
• Identifying their own training and developmental needs and bring these to the
attention of their line manager.
• Undertaking training and development activities which will enable them to
perform their work efficiently and effectively.
• Role of HR Department
• HR will ensure necessary reports on employee’s training needs that assists in
preparing the overall training calendar.

72
 • Responsible for timely updating the Learning and Development Policy and
review the same periodically. Any change in the policy needs to be
communicated to employees within the defined timeline.
• Administration of in-house training programs including internal coordination
and confirmation and deriving final approval for course training programs from
HODs – training to be imparted based on training budget sanctioned.
• Document control and record maintenance.
• Seeking training feedback.
• Measuring training effectiveness.

2. Training & Development Needs

• Training and development will be provided not only to perform the work effectively
but also for the professional development of the employee. Line managers will identify
the training needs of their staff keeping in mind the areas of development and future
growth potential of the employee. Training and development needs, once identified will
be collated by HR and priorities assessed.
• HR in coordination with the HODs will prepare an annual training plan with a
systematic exploration of the skill gaps within the businesses.
• Training Need Identification (TNI) will normally commence with the appraisal process.
The sanction of training budget shall be done at the same time.
• Trainings for an individual shall be conducted as per the outcome of the PMS process
and also in case of business needs.
• The training calendar along with cost details will be shared with the Management for
each business for approval. Based on immediate business needs and priority, training
programs will be identified and training calendar will be prepared.
• The training list will be shared with the HODs who will be required to nominate team
members on training programs on quarterly basis.
• As each role requires a blend of technical, business and interpersonal skills, there may
be a variety of structured and unstructured training solutions available like:
• On the job learning, including learning from other members of staff via job
shadowing, mentoring, in house skill sharing, staff away days etc.
• Job coaching by senior colleagues.

73
 • Job rotation between inter / intra department.
• Formal structured training programs involving internal and external courses.
• Training calendar will be prepared by the HR department based on the training plan,
training budget and training need analysis received from an employee appraisal and
HODs feedback.
• The final list of training and development programs – both technical and behavioral
programs will be shared with the HODs quarterly.

3. Training Measurement & Evaluation

• It is critical to establish a procedure to measure the impact of training on individual,

department / section and organization.
• Training effectiveness is measured with the help of training feedback form, participant
evaluation form and post training effectiveness form.
• A detailed report is compiled and sent to concerned HOD to take appropriate actions.

4. Attendance in the Training Programs

• Employees will be required to attend such training programs punctually and earnestly;
in case an employee is unable to attend the training program; he / she must inform his
/ her immediate reporting manager well in advance with reasons.
• On return from the training programs, the employee must fill up the training feedback
form and submit the same to the HR department. The employee will also have to prepare
a brief write up on his / her key learnings from the seminar / conference / courses etc.
and submit the same to HR department and his / her reporting manager.

74
4.7 COMPENSATION POLICY

4.7.1 Objective

• To ensures employees are paid a fair salary for their contribution to the organization
(consistent with laws of the land, where applicable). The policy requires that salaries
be equitable throughout the company and comparable to those for similar positions in
the marketplace.

4.7.2 Scope

• All employees on the rolls of KPS whether fixed or contractual.

4.7.3 Guidelines

Compensation Philosophy: KPS believes that compensation and the approach to rewards in
the organization play a very important part in attracting and retaining talent and inbuilding our
culture. We believe in rewarding our employees appropriately based on their contribution,
expertise & delivery. Our compensation is built around:

• Building a culture of performance & meritocracy.

• Adopting market aligned practices as regards to compensation & benefits.
• Complying with all statutory requirements and abiding by all laws including taxation.
• Fair and equitable compensation for all without any discrimination.
• Equitable to external and internal market.
• Variable pay shall be according to the targets, quantum shall be decided in the
beginning of the year.
Components of Compensation

1. Basic Salary: -

It is a key element of the compensation and is the basis of all retirement benefits. The basic
salary for all levels ranges from 30% to 50% of gross pay depending upon the grade level.
Tax implication: Fully taxable.

2. House Rent Allowance: -

75
 • The limits for House rent allowance for all levels is 50% of basic salary.
• Tax implication: Exempt subject to certain conditions up to limits defined below.
• The HRA can be tax-exempt up to the extent of rent paid if the:
• Employee actually pays rent.
• Employee can show proof of actually having paid rent.
• Employee does not own a house in his / her name in the city of work.
• Payment to family members is acceptable as rent but proof of payment is
required.
• The tax exemption limit is defined as the least amount of the following:
• Actual HRA Received.
• Rent paid less 10% of Salary (Salary = Basic Salary + Dearness Allowance).
• 50% of Basic Salary in Metros & 40% of Basic Salary in Non-Metros.
3. Provident Fund: -

• Provident Fund is a statutory requirement under the Employees Provident Fund &
Miscellaneous Provisions Act, 1952. Both the company and employee will contribute
12% each of the basic salary or maximum of Rs. 1800/- whichever is lower, to this
fund. Employees will be allowed to draw loans on their contributions as per the PF
rules.
• Tax Implication: The contribution by the employee is tax free subject to tax limit.
• Administration: Employees are required to fill all the necessary documents and make a
nomination of next of kin for PF.
• Applicability: The contribution to PF is voluntary and if employees may choose to opt
out of PF at the time of joining basis their salary.
4. Gratuity: -

• Gratuity is payable under the Payment of Gratuity Act 1972 on separation of employees
for any cause including resignation, death or disablement subject to completion of 5
years continuous service with a maximum tax emption provided at Rs. 20 Lakhs. All
employees will be entitled to 15 days of last drawn basic salary per completed year of
service. The gratuity amount will be computed on the last drawn basic salary at the time
of separation. There are usually no deductions in gratuity except under the following
conditions:

76
 • The employee has willingly or knowingly damaged the assets of the
organization. The employer can deduct such portion of the value of the property
that has been damaged from the gratuity due to the willful negligence of the
employee.
• If the employee has taken a loan from the organization and the loan remains
unpaid at the time of separation of the employee.
• If the payout of the gratuity amount exceeds INR 20 Lacs, then the gratuity
becomes taxable as per the relevant provisions of the income tax act.
• Any deductions not specified herein but form a part of the gratuity act as
communicated by the government from time to time.
• Gratuity is a component of the CTC provided to an employee.
• Calculation: Amount of gratuity is calculated as below – 0.577 * last drawn basic salary
x number of completed years of service or thereof in excess of 6 months.
• No of years of service will be rounded off to the nearest integer value to arrive at the
figure for tenure ex. If the employee has completed 5 years and 3 months the same will
be taken as 5 years. If the employee has completed 5 years and 7 months, then the same
will be taken as 6 years.
• Employee, while leaving the services of the organization will have to apply for gratuity
to the HR department in the prescribed format available.
• KPS will ensure that the disbursal of the gratuity amount is done within 30 days of the
employee application.
5. ESIC: -

• ESIC is applicable to employees whose monthly Gross salary is up to Rs. 21,000/- per
month. ESIC is completely nontaxable component.

Compensation Administration

• KPS is required to deduct Tax at source (TDS) at the applicable rate as per the laws of
the land governing the income tax rules at the time of deduction and payment of TDS.
• Employees will have to self-declare the amount of investments made to the HR
department every year in April. The tax computation for the year will be done based
on this statement and tax will be deducted monthly from employees

77
 • The deductions will be available subject to submission of proof of investments by
January of the financial year. In case the employee fails to do so, all amounts for which
necessary proof has not been submitted will be fully taxed. It is important to note that
the company deposits tax for the year by March and the company will not refund any
tax deducted. An employee will have to go through a separate process directly with the
Income tax authorities to get their refunds.

Filing Tax Returns

• The responsibility for filing tax returns is entirely of the employee and not of the
organization.
• The company will provide employees with Form 16 to assist him in filing his / her
returns.

78
4.8 LEAVE POLICY

4.8.1 Objective

• To help employees balance their family and work life and at the same time ensure
employee productivity at desirable levels.

4.8.2 Scope

• It applies to all employees and trainees of KPS.

4.8.3 Guidelines

• All applications for planned leave must be made at least two weeks in advance using
leave request form.
• All leaves to be approved by the respective reporting managers.
• Employees are required to schedule their leave (s) with the approval of the HoD. Leave
must be approved in advance with the exception of sickness or exigencies.
• A leave form should be completed, signed by the employee’s HoD & forwarded to HR
for action.

Power to Refuse / Revoke Leave

Leave of any kind cannot be claimed as a matter of right. When exigencies of service so require,
discretion to refuse or revoke leave of any kind is reserved with the authority empowered to
grant it and an employee already on leave may be recalled by that authority, when considered
necessary in the interest of the Company.

79
Obligation to Furnish Leave Address

An employee shall, before proceeding on leave, intimate the concerned authority which granted
leave, his / her address and telephone number (s), while on leave and shall keep the said
authority informed of any change in the address previously furnished.

Types of Leave

Categories of leave are:

1. Earned Leave (EL) / Privilege Leave (PL)

2. Casual Leave / Sick Leave
3. Maternity Leave

1. Earned Leave (EL) / Privilege Leave (PL)

• Earned Leave (s) are earned in the current year based on the actual days worked in the
previous year. Earned leave is applicable to all confirmed employees. Employees are
eligible for 16 days Earned Leave in a year.
• Leave entitlement period is from 1st January to 31st December.
• Leave will be credited to employee’s account on monthly basis.
• Employees are required to fill in the leave application form /submit their leave request
on email or on the intranet, 15 days in advance when they are planning to take leave for
3 days and above. Leave for longer duration (more than 7 days) must be applied for at
least 1 month in advance.
• Maximum leave to be given in a block is 10 days unless any emergency to be decided
by the reporting Manager.
• The employee’s immediate superior has the discretion to sanction, revise, curtail or
revoke leave at any time according to the workload situation. The immediate superior
must check the leave balance given by HR before sanctioning leave.
• No leaves will be carried forward. All balance leaves will be encashed at the end of the
calendar year.
• In case of cancellation of leave, same should be informed to the HR department for
reversal of leave debit from the leave account in order to ease the payroll processing.

80
 • Any public holiday / week off falling in between / preceding / succeeding the leave
period will be considered as a part of the leave.
• Employees on probation will not be eligible for use of PL though accumulation will
continue.
• Balance PL will not be adjusted against shortage of notice period under any
circumstances.

Encashment:

• Annual PL is encashable once during the end of the year. All leaves balance will be
encashed.
• Encashment of annual leave shall be based on monthly gross salary at the time of
encashment.
• Amount of encashment will be credited to the employees account in the salary for the
month of February.

2. Casual Leave / Sick Leave

• Each employee will be eligible for 3 Casual Leaves and 3 Sick Leaves in a calendar
year.
• Employees will be credited with 0.25 CL & SL for every completed month in service.
• Employees joining on or before 15th of each month will be eligible for 0.25 CL / SL
whereas those joining after 15th will not be eligible for any leave.
• CL / SL will lapse out at the end of the year and will not be carried forward or encashed.
• Any public holiday / week off falling in between / preceding / succeeding the leave
period will be considered as a part of the leave.
• Process for application of CL / SL remains the same as PL.

81
Extension of Leaves

• The company does not encourage extensions of leave.

• It however understands unforeseen emergencies and, in such instances, leave will be
extended at the discretion of the management.
• All applications seeking extension of leave should be addressed in writing to the
reporting managers.

Absconding From Work

• Unauthorized absence is a clear misconduct offence.

• Any extension of approved leave requires intimation to the Reporting manager / HOD.
• If an employee consecutively remains absent for seven days without management
approval, then it is treated as a breach of code of conduct.
• Seven days consecutive unauthorized leave shall disqualify the employee from OT duty
(for next 2 months).
• In case an employee repeats unauthorized leave instance for two quarters then warning
letter will be extended for same.
• If the instances of unauthorized deduction are more than three times in a year then the
same will reflect in the employee’s annual review.
• Any leave taken due to any emergency situation needs to be intimated to the HOD
through phone / email and the same has to be submitted to HR department.
• If the employee continues to remain absent, HR will send a show cause notice to the
last known address of the employee.
• If no response is received from the employee, the HR will issue a second show cause
notice to the employee.
• If still no response is received, then HR may issue a domestic enquiry notice and
instruct the employee to depose before an enquiry officer.
• If the employee is not present before the enquiry officer on the first hearing, a second
date is notified to the employee to appear before the enquiry officer.
• If the employee does not appear for the second time, then an ex party decision can be
passed to terminate the services of the employee.

82
 • If at any point in time the employee appears before the HR or the enquiry officer and
does not state the reasons of absence to the satisfaction of the HR / Enquiry officer,
then suitable action as per the rules and regulations of the company can be taken.
• If an employee absconds while in service and has induced collateral damage to the
company (Whether intentionally or unintentionally), the Company has every right to
recover the amount equivalent of the damage caused from the full and final settlement
of the employee and / or file a complaint with the local law authorities.

Leave Without Pay (LWP)

• It is not the policy of the company to encourage this practice. In exceptional cases
employees may be entitled to leave without pay with prior sanction.
• The employee must notify his immediate supervisor, who will also inform the HR
department. The HR department and reporting manager will jointly decide on such
requests.
• Leave taken over & above the limits / extended / unauthorized / without HOD’s
permission would be treated as leave without pay.
• Such leave will not be permitted beyond 9 days unless it is for medical reasons;
exceeding this limit shall lead to disciplinary action.
• Any unauthorized LWP shall have an impact on the annual performance appraisal
review and the quarterly review.

Leave Application Process

• KPS encourages employees to plan their leave carefully keeping in view the interest of
both the company and the employee concerned.
• Employees must fill in the leave card which must be duly signed and approved by the
immediate reporting manager. Employees can also seek the approval of the reporting
manager on email / intranet, which will be considered valid.
• All leaves must be approved and sanctioned by the immediate reporting manager.
• Leaves need to be applied at least 15 days in advance and approved by the reporting
manager Reporting Manager to ensure that his immediate reportee and himself shall
not take leaves together unless approved by the functional head / Director and HR.
• HR will track the attendance report and tally the same with employee’s leave records.
83
 • If any of the leaves consumed are sandwiched with Work Off’s or Public Holidays, then
the given Work Off’s or Public Holidays shall not be considered for Leave deduction
subject to maximum of 10 days of continuous leave.

3. Maternity Leave & Benefit Policy

Objective

The Maternity Leave and Benefit policy intends to:

• To facilitate leave to women employee undergoing maternity

• Regulate the employment of women in the organization for certain periods before and
after child-birth.
• Provide maternity benefits to eligible employees.
Scope

• All women employees (irrespective of the status of marriage), will be entitled to

maternity benefits as per the Maternity Benefit Act, 1961 and the applicable statute
from time to time.
Guidelines

• Every female employee who has completed a minimum of 80 days of service with the
company in the 12 months prior to the delivery whether or not in probation can avail
maternity leave.
• The total maternity leave is 26 weeks or 182 days from the date of start of leave and is
applicable for the first two pregnancies only. For the third pregnancy females would be
eligible for 12 weeks or 84 days of maternity leave.
• Maternity leave cannot start earlier than 8 weeks before due date.
• Maternity benefits can only be withdrawn if the employee joins some other organization
during the period of her maternity leave.
• In case of Maternity leave, intervening public holidays, Saturdays and Sundays shall be
included in the computation of leaves.
• In case of miscarriage or medical termination of pregnancy, an employee is entitled to
six weeks of paid maternity leave subject to a maximum of two times.

84
• Employees are also entitled to one additional month of paid leave (To be deducted from
leave balance of employee) in case of complications arising due to pregnancy, delivery,
premature birth, miscarriage, medical termination or a tubectomy operation (two weeks
in this case).
• In case a female employee plans to adopt a child, leave may be granted for up to 3
months provided the child is less than 1 year old (With production of medical certificate
/ adoption certificate). No encashment and accumulation is allowed.
• Neither can ML be carried forward, nor can it be encashed.

85
Unauthorized Leave Policy

Objective

• Unauthorized absence, often referred to absence without leave, occurs when an

employee fails to attend work without prior approval from the management. It is
possible to retrospectively authorize an employee’s absence, for example in emergency
situations or a sudden bereavement. Management can authorize absence in a wide
variety of situations including family related leave, compassionate leave, unnatural
phenomena / calamities etc.
Scope

• This policy is applicable to all employees of KPS.

Guidelines

• Unauthorized absence is a clear misconduct offence.

• Any extension of approved leave requires intimation to the Reporting manager / HOD.
• If an employee consecutively remains absent for three days without management
approval, then it is treated as a breach of code of conduct.
• Three days consecutive unauthorized leave shall disqualify the employee from OT duty
(for next 2 months).
• In case an employee repeats unauthorized leave instance for two quarters then warning
letter will be extended for same.
• If the instances of unauthorized deduction are more than three times in a year, then it
will impact the employee’s annual review.
• Any leave taken due to emergency situation needs to intimate the HOD through phone
/ email and the same has to be submitted to HR department.
• If the employee continues to remain absent, HR will send a show cause notice to the
last known address of the employee.
• If no response is received from the employee, the HR will issue a second show cause
notice to the employee.
• If still no response is received, then HR may issue a domestic enquiry notice and
instruct the employee to depose before an enquiry officer.
• If the employee is not present before the enquiry officer on the first hearing, a second
date is notified to the employee to appear before the enquiry officer.

86
• If the employee does not appear for the second time, then an ex-party decision can be
passed to terminate the services of the employee.
• If any point in time the employee appears before the HR or the enquiry officer and does
not state the reason of absence to the satisfaction of the HR / Enquiry officer, then
suitable action as per the rules and regulations of the company will be taken.

87
4.9 SAFETY POLICY

4.9.1 Objective

• At KPS, we believe that sustainable success can be reached only through people. No
other asset in the company is as important as the people that contribute with their work
to our culture and our business results. Workplace Health & Safety policy establishes
KPS approach to health and safety matters, affirms the commitment to preventing harm,
and helps to promote safe working practices.
• It also provides useful direction for managers and staff further serves to get everyone
within the same safety roof of the organization. Therefore, we devote all the necessary
energy and attention to protect employees, contractors and any other people involved
with the company along the value chain, including suppliers, customers and the public.
4.9.2 Scope

• Applicable to all employees

4.9.3 Guidelines

Occupational Safety and Health

1. Legal & Regulatory Compliance

KPS to establish its own internal policies and procedures to fulfill the relevant legal and
regulatory obligations relating to occupational safety and health, and to ensure compliance.

2. Management Resources

KPS will devote staff, technology, and capital to creating workplaces that are safe and healthy.

3. Establish, Maintain & Improve an Occupational Safety & Health Management System

KPS will establish an occupational safety and health management program, and regularly
maintain and improve it.

4. Definitions of Roles, Authorities, & Responsibilities, and Organizational Maintenance

KPS will administer the occupational safety and health management program and to promote
continuous autonomous improvement, it will also define the roles, authorities, and
responsibilities of the elected head, legal staff, managers, and supervisors of the program.

88
 5. Removal & Reduction of Hazards & Potential Causes of Damage

The KPS management team involved in Health Safety activities should assess risks, identify
hazards and potential causes of damage, and remove or reduce them.

6. Setting up of plan

Setting goals, formulating & implementing plan for occupational safety & health management.

7. Auditing & Review by Management

The management will conduct regular audits to monitor the occupational safety and health
program. It will also review the audit results and recommend improvements to the program.

8. Education and Training

The Company will provide its employees with education and training in accordance with the
Occupational safety and health management program.

9. Creating Equipment Safety Standards

To prevent occupational safety risks involving equipment, reviews safety conditions for all
newly installed equipment by evaluating compliance with its Equipment Safety Standards.
These precautionary audits take place when the Company builds new plants and installs new
production equipment in existing workplaces.

Occupational Health

Regarding special tasks such as the handling of heavy objects or chemical substances, KPS
will conduct work reviews and provide appropriate safety equipment while aiming to reduce
such work as much as possible.

Fire Safety

KPS is committed to providing a safe environment for its staff, vendors and visitors. Part of
this safety responsibility is in the provision and management of fire safety systems and
procedures. All members of KPS, their visitors and contractors, have a statutory responsibility
in ensuring compliance with the law and complying with the fire safety provisions defined
within this policy. Fire is recognized as a major threat to the activities of the organization. An
outbreak of even a small fire creates risk to both life and property, damage to the environment
and may compromise our normal business activities.

89
The organization will ensure, so far as is reasonably practicable, that the risk associated with
fire will be managed in compliance with the practice and any other relevant legislation that
may impact upon it. Our fire safety practice includes:

1. Annual fire safety drills and trainings.

2. Appointment of fire marshals in the organization.

3. Signage and fire escape route within the factory premises.

4. Fire extinguishers at important place.

90
4.10 LOAN POLICY

4.10.1 Objective

To enable the employees to seek financial support from the company to attend any important
needs.

4.10.2 Scope

All confirmed employees on payroll of KPS.

4.10.3 Guidelines:

• Employee would be extended financial support in terms of a loan for the following
reasons –
• Marriage for Self
• Marriage of child
• Short term financial help for education of school going children
• Medical reasons not covered under the medical insurance of the company or
ESIC
• House repairs / purchase etc.
• Employee availing the loan needs to submit the documents to the HR for verification
of expenses for which he / she is asking for loan with the loan application cum approval
form.
• Minimum of 24 months of continuous service to be mandatory for availing loan
amount.
• Employee must have two guarantors from the company who will be signing the
undertaking along with the employee.
• The approval will be done from the functional manager along with the HR.
• If the employee wishes to exit the services or if the company terminates the service, the
repayment must be done on or before date of relieving, else guarantors will be liable
for the repayment.

91
 • If an employee wants to repay the balance amount in a single installment, the employee
can inform HR about his intent & HR shall facilitate the repayment. Mode of payment
will be by cheque.
• Loan will be approved only if the employee satisfies the eligibility criteria and the loan
is availed exclusively for the purpose mentioned above reasons only.
• Employee is not eligible to apply for second loan, while the repayment of first loan is
still pending / ongoing.
• Minimum 6 months gap is required for applying second loan.
• There is a defined corpus of INR 200,000/- set out for employees to avail loans. Once
this corpus is exhausted, no new loans are issued and new loans can be availed only
once existing employees start paying their monthly installments. At any given point in
time, no more than 200,000/- should be the outstanding amount of employees’ loan to
the organization.

Guarantors

• Guarantors: Minimum 2 guarantors are required who are full time confirmed employees
of the company.
• In case the employee leaves the organization without any information during the
repayment of loan, the guarantor will be held responsible for loan repayment.
• The Guarantor should be loan – free.
• Loans are non – transferable.

General Guidelines

• Loan has to be paid in 1 year in 12 equal installments.

• No additional loans to be granted, when an employee has an existing loan with KPS.
• Cool off Period: There should be a gap between 2 consecutive loans of minimum of 6
months.
• Proof of documents to be collected against which the loan is taken. Application form &
relevant documents to be provided against loan application shall be reviewed.
• Salary deduction to a maximum extent of 25% of the monthly earnings in case of
monthly installments.

92
 • Proof of expenses / event has to be submitted before / after (within a month of availing
loan failing which the loan shall be automatically cancelled. In case of house purchase,
proof has to be submitted within one month and failing which the loan shall be
automatically cancelled and the company shall recover the entire loan amount from
employee’s next month salary onwards.

Documents Required to be Submitted for Loan:

• Marriage for Self

• Marriage invitation card along with loan application form
• Marriage of Child
• Marriage invitation card along with loan application form
• Short term financial help for education of school going children
• Fee receipt / Fee demand letter for current year to be produced along with loan
application form
• Medical Reasons (Original to be checked and returned incase employee is claiming
refund under Mediclaim)
• Hospital bills copy
• Discharge summary copy
• Final Bill Copy
• Medical Reports
• House repairs / purchase etc.
• Receipt / (s) of payment / (s) made to the developer / contractor
• Copy of the Allotment Letter / Buyer Agreement
• Proof of identity and residence to be submitted along with the above documents

93
4.11 WORK NORMS POLICY
4.10.1 Objective
The objective of this policy is to regulate the working hours at KPS and ensure general
discipline across the company.

4.11.2 Scope
This policy applies to all employees of KPS.

4.11.3 Guidelines
• Production Staff @ SEEPZ: Monday to Saturday: 8.00 a.m. to 4.30 p.m. (incl. lunch
time of 30 minutes) Sunday: Weekly off.
• Production Staff @ Surat: Monday to Saturday: 8.00 a.m. to 6 p.m. (incl. lunch time of
30 minutes) Sunday: Weekly off.
• Production Staff @ Marol: Monday to Saturday: 8.00 a.m. to 4.30 p.m. (incl. lunch time
of 30 minutes) Sunday: Weekly off.
• Support Staff @ SEEPZ: Monday to Saturday: 8.00 a.m. to 4.30 p.m. (incl. lunch time
of 30 minutes) Sunday: Weekly off.
• Support Staff @ Surat: Monday to Saturday: 8.30 a.m. to 5.30 p.m. (incl. lunch time of
30 minutes) Sunday: Weekly off
• Support Staff @ Marol: Monday to Saturday: 9.00 a.m. to 5.30 p.m. (incl. lunch time
of 30 minutes) Sunday: Weekly off.
• Assignment of shift duties, preparation and allocation of rosters are prerogatives of the
HODs. They will discharge the same in due consideration of work requirements and all
employees will be required to follow the same.
• Employees can change or alter shifts only after prior approval of HODs.
• In each shift employees will be given a lunch break of 30 minutes on a departmental
rotation basis. These breaks will be staggered in a manner such that working is not
affected adversely.
• Shift rosters, change in work hours must be communicated to HR.
• If employees are required to exceed their working hours due to business exigencies the
same has to be approved by the respective HOD with the timings and intimated to HR.
• Regular attendance is compulsory for the efficiency of operations and is an essential
condition of employment.
• It is mandatory for employees to punch in through the facial recognition every time
they enter or exit the office. This is extremely important to keep a track of their in and
out time.
• Employee reaching the office late must inform his / her immediate reporting manager
accordingly on telephone.
• In case an employee has missed to punch, it should be intimated to the HOD and HR,
else shall be treated as absent.

94
 • Support staff are discouraged to work beyond the stipulated time unless there exists an
exigency. In case an employee works beyond the stipulated time, then the same should
be communicated to HR in writing. Female employees are not allowed to work beyond
6.00 pm in any case.
• Employees are allowed to come late by 10 mins thrice a month.

4.11.4 Leaving Office During Working Hours (Outdoor Duty or OD)

• Prior approval from respective Reporting Manager is a must.
• Employee travelling outside city or any neutral venue should apply for Outdoor duty
(OD) within 2 working days & get it approved from the reporting authority, failing
which the day will be treated as absent.
• Female employees during their 8th / 9th month of pregnancy are allowed 2 hours of
concession in their work hours (either late or early) and the same should be informed
to HR prior in writing.
• In case of medical urgency, an employee can leave early. If he / she leaves post 1.00
pm, it shall be considered as half day and if he / she leaves post 3.00 pm it would be
considered as full day. However, the same should be communicated by HOD to HR in
writing, else it will be treated as absent.

4.11.5 Late Mark

• In case an employee punches after 10 minutes (Ex. 8.11 a.m. for production in Mumbai)
then he / she shall be marked ‘Late’. Three late marks in a month are allowed and from
4th late mark onwards, half day leave shall be deducted
• In case an employee comes beyond 30 minutes on any given day it shall be considered
as ‘Half Day’.
• The immediate reporting manager shall be responsible for addressing the problem of
regular late coming by certain employees. Employees not attending office punctually
will be subject to disciplinary action.

4.11.6 Half Day Timings

• First half of the day (8.00 am to 1 pm)

• Second half of the day (12.00 noon to 6.00 pm)
• This facility of Half day is allowed maximum twice in a month subject to HOD’s
approval.

4.11.7 Payroll Cycle

• Attendance is linked to timely payment of salary on monthly basis. It follows a cycle
of 28 / 29 / 30 / 31 days as the case may be.

95
• Employees need to update their pending leave approvals to HR department.
• Salary will be processed by 7th day of the month subject to no exigencies.
• Salaries are disbursed to the respective employee’s bank account and salary cheques
are issued only in case of new recruits – for the 1st month of joining.
• Employee will get a copy of their pay slip (hardcopy / softcopy) post the credit of salary
to the employee account.

96
4.12 PERFORMANCE APPRAISAL POLICY

4.12.1 Objective

• Rewards and Recognition Policy is designed to encourage employees particularly field

staff whose performance is outstanding either individually or through teams that
contribute to the overall objectives of the organization.

4.12.2 Scope

• All employees of KPS

4.12.3 MONETARY AWARD

1. Best employee of the year

Every year, a committee chooses one best employee from the production team and one best
employee from the non – production team.

Scope

Those who have completed at least one year of service in the system & have participated in the
quarterly assessment at least for the last 4 quarters.

Frequency: Yearly

Criteria

• Quarterly Assessment Incentive

• Recommendation of Team Leaders / Managers on:
• Team spirit
• Attitude towards company, seniors, co-workers, customers
• Relation / co-ordination amongst each other
• Suggestion for changes / innovation / improvements / corrective actions
• How do he / she take care of company property, tools, materials, machines
• Maintenance of discipline (Timing, loitering, idle time, use of language, willingness to
adhere to rules / procedure, amount / type of supervision needed by worker, service
record)

97
 • Accurate reporting / communication
• Help in developing company image

2. Quarterly Assessment Incentive

The Performance Linked Incentives for the winners is as below:

1. 1 Commendation letter in a year: 25% of monthly gross salary.

2. 2 Commendation letters in a year: 60% of monthly gross salary.
3. 3 Commendation letters in a year: 100% of monthly gross salary.
4. 4 Commendation letters in a year: 150% of monthly gross salary with a gift voucher of
a maximum Rs. 2500 per month.
Details of Performance Linked Incentive (Quarterly Assessment)

• Every quarter, assessment forms will be filled up by the functional head / line manager,
which makes an assessment on targets achieved for the particular quarter ex. Designs,
collections, production output, quality, gold loss / breakages, attendance, development
work etc.
• A person getting a score of 4.0 and above will be given a commendation letter, with
monetary rewards based on the number of 4.0 plus scores achieved by him / her.
• Monetary rewards will be as mentioned below.
• The quarterly performance score shall be considered in the Annual Appraisal process.
• Employees at G2 level and below would only be considered for this incentive.

3. Long Service Awards

The company wishes that an employee enjoys a long tenure with us. It will give Service Awards
for completion of 5, 10, 15, 20 etc. years of services rendered in the company.

Scope

All employees will receive the award on successful completion of 5 years, tenure is considered
from date of joining.

Frequency: Once a year.

Benefits:

98
 Certificate
20 Yrs 15Yrs 10Yrs 5 Yrs

• Gift voucher • Certificate • Certificate • Certificate • Certificate

(Rs. 10000)
• Gift voucher • Gift voucher • Gift voucher • Gift voucher
• Medical Check (Rs. 7500) (Rs. 7500) (Rs. 5000 (Rs. 2500)
– up (Up to Rs.
1000) • Medical Check • Medical Check • Reimbursement
– up (Up to Rs. – up (Up to Rs. of child school
• Reimbursement 1000) 1000) fees for the
of child school current year*
fees for the • Reimbursement • Reimbursement
current year* of child school of child school
fees for the fees for the
• Emergency current year* current year*
Leave**
• Emergency
Leave**

* Reimbursement of child's school fees

After completion of each milestone of service, depending upon financial stability of employees,
management may reimburse the child's fees as a special case. Final decision regarding approval /
reimbursement, limit will be taken by management on a case-to-case basis.

**Emergency Leave
After completion of each milestone as stated above, if an employee would like to take a long leave due
to critical illness (self or immediate family member) or completion of a course etc., then employee will
be allowed to take max. 15 days of sabbatical leave with pay. The leave needs to be utilized within 1
year of completion of milestone. Final decision will be taken by management on a case-to-case basis.

4.12.4 NON-MONETARY AWARD

1. Employee of the month

Along with day-to-day work, employees can participate and earn the tag of ‘Employee of the
month’ via ‘Wow Cards’.

2. SPOT Awards
This is a simple but effective instant recognition scheme called Wow Card, often in the midst
of our daily work, we discover that one or more employees have done something:

• Extraordinary

99
 • Out of way
• Unique, in his / her daily work – life which has increased the efficiency / quality or
have impressed the customer which must be recognized / made note of
Procedure For Issuing This Note:

• The moment Manager / Supervisor comes to know about something ‘unique’ performed
by any employee, he / she will sign and issue ‘Wow Card’ to the concerned employee.
• Via each ‘SPOT Award’ employee will earn 10 points.

3. Einstein Cards
Genius Cards are introduced in the company and suggestions are invited from all employees
every month for continuous improvement in quality / production / change in technology /
process / procedures and manpower utilization.

• Supervisor / Manager of each Department will encourage employees to give their Ideas
/ Suggestions as Genius Cards in the Prescribed Form. The same should be submitted
on last Saturday of every month
• Line Managers will forward the Genius Cards to the team who will assess each card
and pick up the best cards keeping in view of the following criteria:
• Practical applicability of Ideas / Suggestions
• Increase of productivity / quality / ease of work
• Saving in Cost / Time / Through-put
• Breakthrough in the process / bench work / manufacturing
• Details of all Genius Cards will be logged and team will take a printout of each card
along with employee name and put it on the notice board for other’s reference
• For each genius card, employee will earn 10 points

100
4.13 GRIEVANCE HANDLING PROCEDURE

4.13.1 Sexual Harassment

KPS treats sexual harassment as gross misconduct under the service rules and other applicable
laws and action will be initiated appropriately for such misconduct. It is necessary for
employees to deal with their colleagues and third parties with full fairness, respect and dignity
and realize that his / her behavior will be attributed to the company and can affect its reputation.
Currently India has a specific legislation dealing with sexual harassment through an act called
‘The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act
2013’.

Types of Sexual Harassment

1. Quid pro quo (meaning ‘this for that’) form of harassment – A person or authority,
usually the superior of the victim or someone who has direct control over the working
conditions of the victim demands sexual favors for getting a job benefit (like good
increment, promotion etc.) & threatens to not extend benefits to the employee if sexual
favor is not met. In other words, implied or explicit promise of preferential treatment
in his / her employment or implied or explicit threat of detrimental treatment in his /
her employment or implied or explicit threat about his / her present or future
employment status will amount to quid pro quo sexual harassment.

2. A hostile work environment arises when an employee creates a work environment

unsafe through:

• Verbal – Includes sexual words / language and other sexual suggestive

comments.
• Non-Verbal includes showing gestures or written offensive material and making
offensive sounds.
• Physical conduct includes intentional touching of the body and inappropriate
display of body which interferes with another employee’s job performance or
creates the workplace atmosphere intimidating, hostile, offensive or
humiliating. In other words, among other circumstances, if it occurs or is present
in relation to or connected with any of these acts like interference with the
employees work or creating an intimidating or offensive or hostile work
environment for him / her, or humiliating treatment likely to affect his / her
health or safety will amount to sexual harassment.

101
If You Are Harassed
If you believe you have been subjected to or witnessed sexual harassment committed by
anyone, including visitors or other non-employees, you should:
• Tell the offender that his behavior is unwelcome and ask him to stop immediately.
• Keep a record of incident / s (dates, times, locations, possible witnesses, what
happened, your response). It is helpful and necessary to have a record of events, since
such records can strengthen your case and help you remember the details over time.
While submitting your written complaint it is necessary to have all details and evidences
attached to the complaint.
• If, after telling the offender to stop his behavior, the sexual harassment continues, report
the abuse to your reporting Manager. If the respondent is your reporting manager, then
report it to the HR Department. Sexual harassment complaint can also be addressed to
one of the members of the Internal Committee constituted to address sexual harassment
complaints. If you so desire you may forward the complaint to the Internal Committee
through email to HR.
• Such a complaint should be made in writing and within a period of three months from
the date of incident and in case of a series of incidents, within a period of three months
from the date of last incident.
• Once the aggrieved employee makes a complaint it is necessary for the complainant to
keep the information about the complaint strictly confidential.

102
4.13.2 Workplace Harassment
Workplace harassment & violence includes workplace behavior by supervisors, co-workers or
third parties that is unwelcome, offensive, intimidating, humiliating or threatening to an
individual or a group of individuals. To promote equality and fairness for all, including actively
opposing prejudice and discrimination on grounds of gender, race, ethnic origin, religion, class,
marital status, sexual orientation, gender identity, age, disability or caring responsibilities.

Guidelines for disciplinary action

KPS have a clear moral responsibility to take action on harassment and to ensure that
complaints are taken up and dealt with correctly. Once the individual believes that he / she
believe have been discriminated against, harassed or have not been given equal opportunities
at work, you are encouraged to submit a complaint to:
• Your manager
• Your skip-level manager
• Human Resources
The following steps determine how the domestic enquiry shall be conducted:
Step 1: The enquiry commission shall conduct Preliminary enquiry.
Step 2: Issue Charge-sheet.
Step 3: Suspension pending enquiry.
Step 4: Constitute Domestic Enquiry.
Step 5: Enquiry Report.
Step 6: Decide Punishment.
Step 7: Issue Final Show Cause Notice.
Step 8: Awarding punishment.
Step 9: Appeal Procedure.
Step 10: Seek Approval for punishment (if required).

103
 CHAPTER-5

PRODUCTION DEPARTMENT

104
5.1 PLANT LOCATION
Hazira - Adajan Rd, Ichchhapor, Hazira, Gujarat Surat - 394510

5.2 PLANT LAYOUTS USED

The type of plant layout used in KP Sanghvi Pvt. Ltd. is Process layout.

Process layout also known as functional layout is adopted because

1. Products are not standardized

2. Quantity produced is small

3. There are frequent changes in design and style of product

4. Job shop type of work is done

5. Machines are very expensive

Thus, it is suitable for job order production involving non-repetitive processes and customer
specifications and non- standardized products.

All the machines which perform similar type of functions are grouped together at one location.
Here the departments are created and jobs are processed / products are produced in a
customized manner i.e., the job will pass from those machines only which require the
processing of those machines and vice-a-versa. In other words, unlike product layout, raw
materials need not to pass from each machine to complete their process. Here, the quantity of
raw material is issued to a machine which performs first operation. This machine may be
situated anywhere in the factory. Now, for the next operation, quantity is provided to different
machine which may be situated in same factory or say in other part of the factory. The material
may need to be transported to this another part of machine. This is the reason why we need
variable path material equipment like trolleys, trays, etc. This layout creates departments or
functional groupings in which similar type of activities are performed. Process layouts are
designed to process items that involve a variety of processing requirements. The variety of jobs
that are processed requires frequent adjustments to equipment. This will result in discontinuous
work flow / intermittent production system.

105
106
5.3 RAW MATERISALS USED

ZINC COPPER

GEMSTONE GOLD SILVER

PLATINUM TITANIUM BRASS

DIAMOND PEARLS

107
5.4 SYSTEM USED (INTERMITTENT)
“Intermittent situations are those where the facilities must be flexible enough to handle a
variety of products and sizes or where the basic nature of the activity imposes a change of
important characteristics of the input (e.g. change. in the product design). In instances such as
these, no single sequence pattern of operations is appropriate, so the relative location of the
operation must be a compromise that is best for all inputs considered together.”

The following are the characteristics of intermittent production system:

• The flow of production is not continuous.

• The volume of production is generally small.
• A wide variety of products are produced at the same time
• General machines, and equipment are used so as to be adaptable to a wide variety of
operations.
• No single sequence of operations is used and periodical adjustments are made to suit
different jobs or batches.

5.4.1 Types of Intermittent System Used:

Batch Production:

• Batch production pertains to repetitive production. It refers to the production of goods, the
quantity of which is known in advance. It is that form of production where identical
products are produced in batches on the basis of demand of customers’ or of expected
demand for products.
• This method is generally similar to job production except for the quantity of production.
Instead of making one single product as in case of job production, a batch or group of
products are produced at one time. It should be remembered here that one batch of products
may not resemble with the next batch.

Job Production:

• Job or unit production involves the manufacturing of a single complete unit with the use of
a group of operators and process as per the customer’s order. This is a “special order” type

108
 of production. Each job or product is different from the other and no repetition is involved.
The product is usually costly and non-standardised.
• Customers do not make a demand for exactly the same product on a continuing basis and
therefore production becomes intermittent. Each product is a class by itself and constitutes
a separate job for the production process. Shipbuilding, electric power plant, dam
construction, etc. are common examples of job production. They create batch orders of
jewellery like necklaces, bracelets, and rings for luxury brands like Tanishq Jewels,
Malabar Gold and Diamond, etc.

109
5.5 HEAVY MACHINERIES USED

1. Digital Vacuum Wax Injector (wax sticks):

This wax injector is used to create the

wax stick mold for the use in the casting
process. The injector melts the wax at a
pressure ranging from 30-55 kpa
(depending on the size of the piece) and
then the molten was is injected into the
mould and the wax tree stick is ready.

2. Digital Vacuum Wax Injector (wax tree branches):

This wax injector is used to create the

wax stems mold for the use in the
casting process. The injector melts the
wax at a pressure ranging from 30-55
kpa (depending on the size of the piece)
and then the molten was is injected into
the mould and the wax tree steams are
ready.

110
3. Mixing & Vacuuming:

This machine is used to mix powders like Plaster of Paris (POP) powder with water and
creates vacuum to avoid air bubbles in the mixture. It takes about 7-8 mins for gold.
[RHS- mixing machine specifically for Platinum (Pt); because of high melting point of
Pt and rigidity. It takes about 20-22 mins for Pt.]

4. Furnace:

This Furnace is used to melt the wax tree

which is positioned in the centre of the
POP mould.
The heating process usually takes 14 hrs.
Temperature:
For gold and other metals, 620°C
For Platinum, 900°C

111
5. Gold Casting with Pressure: Platinum Casting with Pressure:

This machine is used to melt the metal (usually gold) and then creates a vacuum at the
bottom so that the melted gold can be penetrated through the mould evenly.
[RHS- This machine is specifically for Platinum.

112
6. Water Jet Machine:

This water jet machine, uses high-pressure

water jets to flush out the POP mixture from
the workpiece's crevices so that it is now
prepared for additional filing and polishing.

7. Sprue Grinding:

This machine works to the action of rubbing

or friction between the abrasive particles and
workpiece material.
Due to this, workpiece is fed against the
rotating abrasive wheel to remove material in
the form of very small size of chips.

113
8. Filing:

Filing is a basic technique used for

the most important shaping and
finishing of the workpiece. Files are
used for cutting, shaping, and
smoothing metal. Close inspection is
done for precision.

9. Polishing:

The workpiece's uneven surfaces are

polished off using the polishing machine.
Additionally, the use of water and a
quickly rotating blade gives the
workpiece a shiny appearance.

114
10. Ultra-Sonic Machine:

The ultra-sonic machine uses a high

frequency (ultrasonic) pressure wave and
passing it through a solution. The pressure
wave causes the solution to form bubbles on
the surfaces of jewellery when placed in the
solution.

11.Electrolysis:

The electrolytic refining process for

gold uses hydrochloric acid as the
electrolyte. The anode is made of gold alloy
and the cathode is usually a thin sheet of
high purity gold. The electric current
ionises the electrolyte and transfers
dissolved gold from the anode to the
cathode, thereby increasing the purity and
cleaning of the gold at the cathode.

115
5.6 PRODUCTS AND SERVICES PRODUCED

5.6.1 PRODUCT PRODUCED

BRACELET PENDANT WITH PENDANT

CHAIN

NECKLACE SET BANGLE EARRING

RING NOSE PIN LOSE

DIAMONDS

COLORED TANMANIYA
GEMSTONES

116
5.7 PROCESS USED FOR PRODUCTION

117
STEP-1 DESIGNING

Making jewellery is a magical process, no less! The entire process of designing jewellery
includes numerous processes, from designing to making models to the last step of quality
assurance.

The first step in the process of manufacturing jewellery is designing the piece. The designing
stage is where a jewellery designer develops a jewellery design concept and brings it to life
after analysing and assessing it.

2D Design

118
STEP-2 CAD/CAM

The second step, which comes right after designing, is the CAD/CAM stage, which uses CAD
software such as CorelDRAW, Matrix & Jewel CAD. CorelDRAW is a design software which
helps in giving a neater picture to a rough jewellery sketch created by an analog designer.
Matrix & Jewel CAD are software that designers frequently use to enhance the design's
dimensional correctness and quality. Additionally, it aids in the development of a
manufacturing database. When a jewellery designer has finished creating a concept, it is then
printed out and entered into a computer design programme. The CAD software, or computer-
aided design technology, is used to convert the "concept on paper" into the "system." The
machining and production processes are handled by the CAM, or computer-aided
manufacturing, software.

Computer Aided Design

119
Computer Aided Manufacturing

120
STEP-3 MODEL MAKING
Making a jewellery mould is the process used to guarantee that jewellery products may be
faithfully replicated in the future. Resin or Wax model is first created before the casting is
actually done. Models might be as straightforward as a simple ring or as intricate as
sophisticated jewellery with many interlocking colours.

The original metal models are built from cast designs created by wax carving or CAD jewellery
design, or from handmade jewellery.

3D Printed Model

121
STEP-4 WAX TREE

The creation of wax pieces is the following step in the jewellery manufacturing process. Wax
sculptures are created using Elastosil, Rubber or Metal moulds. In order to manufacture wax
models, the mould must be mounted on a professional wax injector machine and pressure
injected into the cavity. Casting is done using these wax replicas.

'Treeing' is the process of soldering the wax components to a wax stem. The procedure of
"treeing" entails attaching a spruce at a steam angle of roughly 45 degrees to each piece of wax.
The top of the tree is filled with the lighter objects, and the bottom is filled with the heavier
ones.

Making of Wax Tree

122
STEP-5 CASTING

The stage of casting, which is one of the most difficult operations, is included in the jewellery
manufacturing process at KP Sanghvi Jewels Pvt. Ltd. Casters who are skilled and experienced
are needed for the casting procedure. The casting procedure starts with the mixing stage; where
the Plaster of Paris (POP) powder with water to create a slurry. The mixing time for creating
gold cast is 7-8 minutes and 20-22 minutes for Platinum cast. Then, the wax tree is placed in a
steel flask during the entire casting process, followed by a slurry of POP powder that takes
about two hours to solidify. The flask is then heated in an electric furnace for 14 hours, 740-
620 ℃ for CAM models and 600 ℃ for wax models (GOLD) and 900℃ for Platinum. As a
result, the wax melts and the tree cavity are left behind. The molten metal that has resulted is
then poured into the flasks and allowed to cool. The jewellery is then exposed in the shape of
a casting once the molten metal has cooled and been destroyed by squirting high pressure water.

Metals Models POP Mixing Furnace

Gold CAM model 7-8 mins 740-620℃

Wax model 7-8 mins 600℃

Platinum Wax model 20-22 mins 900℃

Metals Melting Temperature Solidifying

of metals
Yellow Gold 1020°-40° C 15-30 min

White Gold 1050°-60° C 15-30 min

Pink Gold 1030°-60° C instant

Platinum 1900℃ instant

123
Casting Furnace

124
STEP-7 SPRUE GRINDING

The production procedure for jewellery continues with the grinding stage. The grinding step
entails using a polisher to remove the nub (which develops after casting, once the raw casting
is taken off from the casting tree and emerges where the spruce was joined to the gold piece).
To smooth the surface of a gold piece of jewellery, the polisher uses a motorised grinding
machine. The last polishing step, known as grinding, is carried out by putting the jewellery
item up to a rotating grinding wheel in order to produce the desired smooth surface.

125
STEP-8 FILING

The fabrication of jewellery proceeds to the following stage, which is filing. Filing is the
process of removing extra metal or solder from the item. To remove the casting layer and
provide a flawless finish, several tools like files and burns are used. After filing, the task of
assembling—which involves using a soldering iron or laser to link two or more components of
the same design—is completed.

Following that, polishing is done to give the piece of jewellery a neat and fine finish, increasing
its value. The tumble, pre-polishing, and ultra cleaning processes are the three procedures that
make up the polishing stage. You should be aware that prior to the diamond being set.

126
STEP-9 SEMI POLISHING

Semi Polishing stage is a stage where the polishing of the jewellery takes place. The
polishing is done to ensure the better shine of the jewellery. The polishing can be carried out
by both means; either manual or by machine. The tools which help the craftsmen to polish the
jewellery manually includes soft buff, solid buff, hair buff, single line ball buff, coin buff,
platinum polishing rouse, red and green rouse (to impart shine), black lustre to remove
casting or filling layers, and white lustre for the removal of roughness.

127
STEP-10 METAL SETTING

The procedure of setting or fastening the gemstone in the jewellery is known as the metal
setting. The lac (a natural clay-like substance) is heated slowly over the burner and then it is
stuck/pasted thickly on a wooden rod. While it is still hot, the workpiece is fixed on it; after it
cools down, the gemstones/diamonds are set on it. Different metal settings are used to produce
various designs. Even the combination of various metal settings is employed to give the
jewellery piece a compelling appearance.

128
STEP-11 RHODIUM PLATING

The production process for jewellery ends with the rhodium plating. The Rhodium Plating
procedure entails covering a piece of jewellery with the Rhodium (a precious metal with a
brilliant white colour that offers improved protection to the item against scratches and tarnish).
Rhodium is applied to yellow gold to produce a visually pleasing design and pattern, while the
same is applied to white gold to enhance its whiteness (because white gold is not naturally so
white.)

SOP for the preparation of new bath solution in KP Sanghvi

Kindly wear all your safety equipment before performing the below steps:

Step -1: Please empty your Rhodium bath tank into fresh cans.

Step -2: Dismantle the filter and other accessories attached to it. (e.g., Silicon pipes, magnetic
pump, filter cartridge, anodes, heater, air agitation pipe)

Step -3: Wash the tank, filter and accessories 3 times with distilled (DI) water to remove all the
chemical properties of previous solutions.

Step – 4: Now clean the tank and filter accessories once more with distilled (DI) water. Please
wash it thoroughly as any metallic presence can change the properties of the new bath.

Step -5: Please keep a fresh filter cartridge for the new bath aside. It will be needed after the
new bath is prepared.

129
STEP-12 QUALITY CONTROL

The quality control stage, which comes last in the process of making jewellery, is just as crucial
as the other phases. The quality control stage is when it is made sure that the finished product
corresponds to the established set of quality standards and fulfils all necessary requirements.
Three approaches are used in quality control: measurement, visual inspection, and mechanical
inspection.

MEASUREMENT: The quality control measurements are used to analyze as well as evaluate
the quality of the different processes involved in a project against the standards of the
organization or on the requirements specified during the project management planning.

VISUAL INSPECTION: Visual inspection for quality control involves examining the product
or material using the naked eye or magnifying tools, such as microscopes or cameras, to detect
any visible defects, deviations, or irregularities.

MECHANICAL INSPECTION: Mechanical quality control is a set of mechanical checks that

detects potential errors in translated content that are easily missed by the human eye. Many QC
tools also have a function for checking consistency with any glossary that has been provided
for the project, checking whether the terms in the glossary or term base have been used in the
translation.

(NOTE : QC is performed after every step. )

130
5.7.1 MOLD MAKING COMPARISON

TRADITIONAL HAND WAX COMPUTER

SUITAB Suitable for simple pieces, Suitable for artistic suitable for works that

-ILITY such as initials or any sheet works that want to need complex
works, including those show delicacy, such assembling, high
with inscribed complicated as horses showing accuracy or the ones that
patterns and cut the metal their movements or have multiple
sheets according to the any works that need to gemstones, for example,
lasered layouts. show natural patterns. a ring with 20 CZ stones,
which must be equally
1.1 mm. in size.

PROS Low cost and fast. This method can As a high-tech, popular,
produce a lot of exotic and prevailing method. it
pieces that can hardly is easier to find a CAD
be found elsewhere. designer to do this
method for you from
around the world.

CONS It's hard to produce This method requires High cost.

complex models with this artistic skilful
method. craftsmen, and it's
hard to find one.

131
5.8 DESCRIPTION OF LAYOUT (PROCESS LAYOUT)
‘Process layout involves grouping together of like machines in one department.’

‘Process layouts are designed to process items or provide services that involve a

variety of processing requirements.’.

All the machines which perform similar type of functions are grouped together at one location.
E.g., Machines performing polishing activity are placed into polishing department; machines
performing casting functions are fixed in casting department and so on. Here production is
done in the batch or in the lot. In process layout, variable-path material handling equipment
(trays, trolly, etc.) are needed to handle the variety of items. In process layout, production
system is not much vulnerable to shutdowns, as machines are arranged by types rather than by
sequence.

Advantages of Process Layout

• The system can handle a variety of processing requirements.

• Flexibility in production is facilitated.
• The whole system may not shut down, if one machine doesn’t work.
• It is possible to use individual incentive system for workers.
• Machines are less costly and easy to maintain as compared to in product layout.

Disadvantages of Process Layout

• Inventory cost can be high if batch processing is used.

• Equipment utilisation rate is low.
• Accounting, inventory control and purchasing becomes a bit difficult as
compared to product layout.
• Supervision becomes more difficult.

132
5.9 MATERIAL HANDLING EQUIPMENT

1. Velvet trays

2. Plastic trays

3. Plastic seal pouches

133
4. Plastic boxes of different sizes

5. Trolley

134
5.10 INVENTORY CONTROL METHODS
NOT APPLICABLE

5.11 ORDER QUANTITY, LEAD TIME, REORDERING LEVEL

5.11.1 ORDER QUANTITY

KP Sanghvi Jewels Pvt. Ltd. accepts orders ranging in quantity from 1 to more than 1,000. The
base condition is that the selling price should comprise the making cost and a 10-15% margin.
The salesperson directly rejects any order that doesn't meet this requirement.

5.11.2 LEAD TIME

Lead time: the time gap between placing of order with supplier and receiving it by customer
are as follows:

KP STANDARD LEAD TIME FOR CUSTOMER /ONLINE ORDER.

Ring / Necklace IGI

Bangle / Necklace/ META
Earing / Handmad +HM+CARD+TPQ
Bracelet Small L
Pendent e C

ADD+>
7 7 10 20 3 GOLD
>
ADD+>
15 15 25 3 PT
>

135
DELIVERY LEAD TIME (INHOUSE) COMMERICAL /STOCK

IGI + HM +
Zone Production Delivery
Order Type Third-party
/Branch Lead Time Cycle
QC

Regular order 25 5 30

regular order
All Dom 30 5 35
(Platinum)

Sample order
15 3 18
(ready Cad)

Regular
21 2 23
order
regular
order 21 2 23
CL
(Platinum)
Sample
order (ready 15 3 18
Cad)

SEZ/KP144 Regular order 14 3 17

TITAN regular order 21 2 23

Online /
TITAN customer 5 2 7
order
regular
SEZ ORD 25 0 25
order

KP1014
/MELLORA
regular order 7 3 10
Online /
KP1014
customer 5 2 7
/MELLORA
order

136
DELIVERY LEAD TIME (OUTSOURCE)
COMMERICAL +SPECIAL (after Raw material)
VENDOR
Zone Order KP+PROD Delivery
LEAD
/Branch Type +QC+IGI Cycle
TIME

regular
OUT 20 6 26
order

Online /
OUT customer 15 5 20
order

READY regular
MOUNTING order
10 15 25
Online /
READY
MOUNTING
customer 5 10 15
order

137
5.11.3 REORDERING LEVEL

The reorder point occurs when the quantity on hand drops below to a predetermined amount.
That amount generally includes expected demand / units to be used during lead time & perhaps
an extra cushion of stock, which serves to reduce the probability of experiencing a stock out
during lead time.
• KP Sanghvi Pvt. Ltd. places the order for its requirement from banks in form of loans
and this takes up to 3 months or 90 days.
Re-order Level = Average Usage X Lead time (in days) = AU X LT
(Per customer order quantity)
Gold Requirement
TCL Casting CNC Loc Find Rolling Total
MAY 9.328 0.000 1.480 4.264 15.072
JUNE 0.000 0.000 0.00 0.000 0.000
Total requirement 15.072

Gold Requirement
SEZ Casting CNC Loc Find Rolling Total
MAY 20.066 0.000 0.313 20.379
JUNE 0.000 0.000 0.00 0.000 0.000
Total requirement 20.379

Gold Requirement
JCL Casting CNC Loc Find Rolling Total
MAY 1181.19 0.00 297.553 213.45 1692.193
JUNE 0.00 0.00 0.00 0.00 0.000
Total requirement 1692.193

Gold Requirement
DOM Casting CNC Find Rolling Total
MAY 2503.426 0.000 465.119 437.159 3405.704
JUNE 9.532 0.000 3.165 3 15.697
Total requirement 3421.401

138
Therefore, total gold requirement:

Gold Requirement
SUM Casting CNC Loc Find Rolling Total
MAY 3714.010 0.000 764.465 654.873 5133.348
JUNE 9.532 0.000 3.165 3.000 15.697
CNC/Rolling (up to MARCH-23) 0.000
Total requirement for fulfilling orders 5149.045

• Average usage = 5149.045 / 2 = 2574.52

• Lead time (in days) = 90 days
• Re-order Level = Average Usage X Lead time (in days)
• Re-order Level = 2574.52 * 90 = 2,31,706.8 gms

139
 5.12 APP (AGGREGATE PRODUCTION PLANNING)
Aggregate planning is a method for developing an overall manufacturing plan that ensures
uninterrupted production at a facility. Aggregate production planning typically is applied
to a 3- to 18-month period. Aggregate planning covers all production activities at a facility
(or for large enterprises, across several facilities), not just individual production runs or the
manufacture of individual products.

KEY TO SUCCESS- 2023-2024 BOTTLENECKS OF PRODUCTION

On time delivery 90% - 95% Re-Casting April Report Need
Net loss 1.5 maintain (23-34) DIA Broken Need Dept Report
Loss recovery 93% - 94% F.T.R Report Report
Quality S.O.P- Base work Q.C Report Rejection Report
Improvement F.I.F.O
Tools & Work Base
Consumables Cost tools - purchase
Manpower Need Manpower
Control
Dept Report
Man power As per worker -costing
utilization v/s output Order Issues -
Increase Product - Capacity
Production Worker- Capacity DIA/ CLS Issue CVD/IGI rejection
Efficiency CAD/CAM Issue CAD QC
Delivery Delay Report
Gold Loss -
Order 1st property Dept Recovery% Report & Discuss
Raw material property with department
ALL HOD & Plan evening/morning Tools & -
SUPERVISORS Consumables Cost
Output Quality Control
Target set I.G.I -
Watch work Job work -
Point mark Wax Set Issue& Output

The primary objective of production planning to accomplish for uninterrupted production

planning are:
• Complete effectiveness in the use of materials, commodities, and resources.
• Reduce production waste and get rid of extra materials in the purchase management
process.
• Efficiency using labor force management, the amount of time required to produce
goods, and the availability of equipment.

140
 CELL 1 WIP Target Achieve
Qty
FILING 7 15 30
FILING & 3 5 15
ASSESSING
Pre-Polishing 8 15 15
MST 14 12 16
Polishing 49 40 65

CELL 2 WIP Target Achieve

Qty
FILING 182 100 68
FILING & 48 50 70
ASSESSING
Pre-Polishing 35 50 107
MST 58 58 94
Polishing 130 80 73

CELL 3 WIP Target Achieve

Qty
FILING 71 70 55
FILING & 5 5 18
ASSESSING
Pre-Polishing - - 2
MST 52 52 93
Polishing 148 100 103

To resolve the company's root-cause bottlenecks, all department leaders get together. These
sessions take place frequently, and everyone is encouraged to offer ideas and solutions. This
helps in Aggregate Production Planning.

141
 5.13 MPS (MASTER PRODUCTION SCHEDULE)

WHAT TO PRODUCE?

WHEN TO PRODUCE?

HOW TO PRODUCE?

SALES
PROJECTION

ROUGH CUT
CAPACITY
PLANNING

CHECK
MATERIAL
AVAILABILITY

WEEK NUMBER
END ITEM PROJECT-
ED SALES WEEK1 WEEK2 WEEK3 WEEK4 WEEK1 WEEK2 WEEK3 WEEK4
RING 22543 4508.6 4508.6 4508.6 4508.6 4508.6 4508.6 4508.6 4508.6
TANMANIYA 6012 1202.4 1202.4 1202.4 1202.4 1202.4 1202.4 1202.4 1202.4
EARRINGS 15029 3005.8 3005.8 3005.8 3005.8 3005.8 3005.8 3005.8 3005.8
PENDANT 6763 1352.6 1352.6 1352.6 1352.6 1352.6 1352.6 1352.6 1352.6
NECKLACE 5260 1052 1052 1052 1052 1052 1052 1052 1052

(Note: All units are in grams.)

We check for material availability following the completion of a rough capacity plan. If the
raw materials don't satisfy the specifications, more are ordered, and then the manufacturing
process begins.

142
5.14 BILLS OF MATERIAL
A Multilevel BOM is used here in KP Sanghvi Pvt Ltd.

INTENDED BILL OF MATERIAL

Jewel code: /AEN4123PDMCR

Design category: PENDANT WITH CHAIN

A list of the components needed to make a product, along with instructions on how to
accomplish it, can be found in a bill of materials (BOM).

Manufacturers and suppliers effectively manage their inventory and manufacturing processes
by using the BOM (Bill of Materials) as a reference document. It is a crucial step in the
manufacturing process since it gives a detailed breakdown of all the parts needed to construct
a product and helps to guarantee that the final item satisfies the necessary quality standards.

PART NO DESCRIPTION QUANTITY UNITS LEVEL

1 Gold(grams) Each 1
2 Diamond 36 Each 1
3 Casting - Each 2
4 Chain 1 Each 2
5 Hook 1 Each 2
6 Diamond 1 24 Each 2
7 Diamond 2 2 Each 2
8 Diamond 3 1 Each 2
9 Diamond 4 6 Each 2
10 Diamond 5 2 Each 2
11 Diamond 6 1 Each 2

143
 CASTING

GOLD CHAIN
14 KARAT (YELLOW GOLD)

HOOK
(YELLOW GOLD)

DIAMOND 1
PENDANT SIEVE SIZE: +0
(with Chain)
AEN4123PDMCR

DIAMOND 2
SIEVE SIZE: +00

DIAMOND 3
SIEVE SIZE: +000
DIAMOND
DIAMOND 4
SIEVE SIZE: -0000

DIAMOND 5
SIEVE SIZE: 3-3.5

DIAMOND 6
SIEVE SIZE: 9-9.5

144
5.15 CAPACITY REQUIREMENT PLANNING

FORMULAE

Per day output (in grams) = No. of Workers * Production per Unit * Shift per Day (in hours)

Workers Output = Total no. of Days (in month) * Per Day Output (in grams)

Total product output (in grams) = Worker output * Rolling period

Loading work (in grams) = Product Output * Worker Output

PER DAY
OUTPUT

WORKERS
OUTPUT

TOTAL
PRODUCT
OUTPUT

LOADING WORK
(CAPACITY
REQUIREMENT
PLANNING)

145
 CRP PLAN KP Sanghvi Pvt. Ltd.
PER DAY
NO. OF PRODUCT SHIFT OUTPUT WORK
WORKER
CELL NO. DEPARTMENT WORKERS ION PER (gms) DAY IN
OUTPUT
PER DEPT. PER UNIT DAY MONTH

Filing
18 3.5 10 630 25 15750
(gms)
Metal Setting
CELL 1 20 35 10 7000 25 175000
(Stone)
Polishing
19 3 10 570 25 14250
(Gms)
Filing
3 3.5 10 105 25 2625
(gms)
Metal Setting
CELL 2 3 10 10 300 25 7500
(Stone)
Polishing
2 5 10 100 25 2500
(Gms)
Filing
5 3.5 10 175 25 4375
(gms)
Metal Setting
CELL 3 5 10 10 500 25 12500
(Stone)
Polishing
5 3 10 150 25 3750
(Gms)
Filing
4 4.5 10 180 25 4500
(gms)
Metal Setting
CELL 4 4 10 10 400 25 10000
(Stone)
Polishing
2 6 10 120 25 3000
(Gms)
Filing
5 4 10 200 25 5000
(gms)
Metal Setting
CELL 5 4 10 10 400 25 10000
(Stone)
Polishing
5 2.8 10 140 25 3500
(Gms)
Filing
21 4 10 840 25 21000
(gms)
Metal Setting
CELL 6 38 13 10 5000 25 125000
(Stone)
Polishing
13 5.4 10 702 25 17550
(Gms)
Filing
14 3.5 10 490 25 12250
(gms)
Metal Setting
CELL 7 20 25 10 5000 25 125000
(Stone)
Polishing
11 3.6 10 396 25 9900
(Gms)
GRAND
221 210
TOTAL

146
 CRP PLAN KP Sanghvi Pvt. Ltd.
OUTPUT LOADING WIP REQ
WORKER ROLLING EXP.
CELL NO. DEPARTMENT IN WORK IN PER
OUTPUT PERIOD CAPACITY
GRAMS GRAMS MONTH

Filing
15750 15% 2362.5 18112.50 15750
(gms)
Metal Setting
CELL 1 175000 15% 26250 201250.00
(Stone)
Polishing
14250 15% 2137.5 16387.50 14250
(Gms)
Filing
2625 15% 393.75 3018.75 2625
(gms)
Metal Setting
CELL 2 7500 15% 1125 8625.00
(Stone)
Polishing
2500 15% 375 2875.00 2500
(Gms)
Filing
4375 15% 656.25 5031.25 4375
(gms)
Metal Setting
CELL 3 12500 15% 1875 14375.00
(Stone)
Polishing
3750 15% 562.5 4312.50 3750
(Gms)
Filing
4500 15% 675 5175.00 4500
(gms)
Metal Setting
CELL 4 10000 15% 1500 11500.00
(Stone)
Polishing
3000 15% 450 3450.00 3000
(Gms)
Filing
5000 15% 750 5750.00 5000
(gms)
Metal Setting
CELL 5 10000 15% 1500 11500.00
(Stone)
Polishing
3500 15% 525 4025.00 3500
(Gms)
Filing
21000 15% 3150 24150.00 21000
(gms)
Metal Setting
CELL 6 125000 15% 18750 143750.00
(Stone)
Polishing
17550 15% 2632.5 20182.50 17550
(Gms)
Filing
12250 15% 1837.5 14087.50 12250
(gms)
Metal Setting
CELL 7 125000 15% 18750 143750
(Stone)
Polishing
9900 15% 1485 11385 9900
(Gms)
GRAND
54450 65500
TOTAL

147
5.16 MATERIAL REQUIREMENT PLANNING
MRP is developed for the jewelry industry through recycling, reusing, and remanufacturing.

They use information from the BOM to calculate the requirements of the materials and
components for further processing.

The primary outputs include the main production schedule, which includes the products to be
produced and the raw materials required, the product and raw material stock quantities at the
end of each period, the amount of demand met, capacity usage, the quantities of waste, scrap
and recycled raw materials, the quantities of recycled and remanufactured returned products,
and the raw material supply amount for each period.

The primary goals include reducing total production costs and reducing scrap and waste,
planning return remanufacturing and recycling, and planning the supply of raw materials
(primarily gold in this model), reducing demand backlog, and lowering finished product and
raw material stock levels and effectively utilizing resources. It also takes this into account
returned product, scrap, waste, and return recycling and collections as raw material gold to
minimize supply costs.

Gold Requirement
ORDER 1 Casting CNC Find Rolling Total
MAY 2503.426 465.119 437.159 3405.704
JUNE 9.532 3.165 3 15.697
Total requirement 3421.401

Gold Requirement
ORDER 2 Casting CNC Loc Find Rolling Total
MAY 1181.19 297.553 213.45 1692.193
JUNE 0.000
Total requirement 1692.193

Gold Requirement
ORDER 3 Casting CNC Loc Find Rolling Total
MAY 20.066 0.313 20.379
JUNE 0.000
Total requirement 20.379

148
 Gold Requirement
ORDER 4 Casting CNC Loc Find Rolling Total
MAY 9.328 1.480 4.264 15.072
JUNE 0.000
Total requirement 15.072

Gold Requirement
SUM Casting CNC Loc Find Rolling Total
MAY 3714.010 0.000 764.465 654.873 5133.348
JUNE 9.532 0.000 3.165 3.000 15.697
CNC/Rolling (up to MARCH-23) 0.000
Total requirement 5149.045

Stock in hand
Total
Central 1588.574
Rolling
Melting
Refinery (Approx 92%) 4495.120
Dust Record
From CL

Total Stock in 6083.694

hand

Total metal required included -934.649

(requirement + extra metal+ CNC - Stock)

JOB work order for outside vendor

Total Metal -934.649

Req.

149
The manufacturing and sales managers first compile the orders that need to be produced. The
quantity of gold and other raw materials required is then determined by the production planning
and control head. Typically, each work piece requires 3.5-4 grams, plus an additional 15% for
casting and a further 15% for chains. Before the manufacturing starts, the company's director
lodges an order with the bank for the needed quantity of gold. Other goods and raw materials
are also outsourced prior to the production's 21-day period.

150
5.17 QUALITY CONTROL TECHNIQUES
In KP Sanghvi Jewels Pvt. Ltd. the quality control technique used is Process Control. In this
technique processes are evaluated and modified as needed to maintain and enhance
performance. In order to attain consistency, this is often a technical procedure employing
feedback loops, controls at the industrial level, and chemical processes. Process Control is done
to ensure that production process is not outside the acceptable limits.

Preleasing-Check Points are as follows

• Technical Parameters:
• Finding & Accessories:
• Finishing:
• Hall Marking / Lab Instructions:
• Rhodium & Gillit Instruction:
• To Make as per Customer Sample/CZ Sample:
• Colour Stones Instruction:
• Mounting/Semi-mounting Products

Technical Parameters:

• Size, Length, Open able, Karat, Colour, 2/3 Tones, Types Of Loops, Expected Metal
Weight, Diamond Weight.

Findings & Accessories:

• Specify Chain Length with Kadi Qty & Lock & it’s clear types (Casting/Machine
Made/Sadak/TV Tower/Mesh etc.) Also reference design, (Not to put Just as “Matching
Chain”) Post/Nut, Miracle plates with exact sizes. This details to be updated under
“Finding column” available only in PO. (Not in Comments).

Finishing:

• Specify required Finishing clearly (Natural/matt/Glossy/Brush/Sand blast etc.)

• Hall Marking & LAB Instruction:
• Mention LOGO in PO Comments. Provide License Copy.

151
 • V.IMP >> Specify very clearly Lab Type & exact Location >> (Customer
End/Leo/DGLA/DHC/IGI/GIA etc.) & Card Details – Co branding, Smart Card,
B2B_3fold Card.

Rhodium & Gillit Instruction:

• Specify clearly (No just “As Per Image”).

• For 2/3 Tones Product to specify if to make by metal or by Rhodium effect.
• If required on specific areas then mention area > fake prong, multigrain, metal balls.

To Make as per Customer Sample/CZ Sample:

• Specify in PO comments as well as availability (By whom/when)

Colour Stones:

• Specify clearly if required “Changeable”. Mention Types Synthetic, “Onex” or

“Doublet”

Mounting/Semi-mounting Products:

• Specify clearly in comments which stones to be set & where (KPS factory /Customer
end).

152
5.18 WORK STUDY

MAN-MACHINE CHART

In a semi-automatic operation of a casting department, following activities are observed:

1. Worker picks up raw material piece from tray – 5 seconds

2. Worker loads raw material piece in machines – 10 seconds

3. Worker starts machine by setting temperature – 5 Seconds

4. Machine runs automatically – 60 seconds

5. Worker unloads finished piece from machine – 10 seconds

6. Worker quenches the flask – 10 seconds

7. Worker weighs finished piece - 20 seconds

8. Worker cuts the pieces of tree. -60 seconds

9. Worker puts finished piece in the box – 20 seconds

Cycle Time 180

Worker Idle Period 40
Machine Idle Period 120

153
5.19 ON THE JOB TRAINING TO WORKERS

Sr Department Working Criteria Qualification On the Job

No Training

Machine Cleaning, Cam Piece 12th Pass, Basic

-
Weight & Bagging, Deeping Knowledge

1 CAM Support Cutting & Normal Filling 10th Pass 3 months

Cad Support. Platform Ready & 12th Pass, ITI, Op &

3 months
Machine Operating Tech Knowledge

12th Pass,
Small Design Making 3 months
Institution Course
2 Cad & Manual
12th Pass,
Basic Design Making 3 months
Institution Course

Mould Finding, Design Matching,

3 Waxing 10th Pass 6 months
Basic Wax Cloning, Sprue Attach

4 Wax setting Diamond Counting, Prong setting 10th Pass 6 months

Tree Cutting & Tree Washing,

10th Pass 6 months
Design Part Matching, Weighting
5 Casting
Runner Making, & Tree Making,
10th Pass 6 months
Grinding

Ultra Stream Cleaning, Soldering,

6 Filing 10th Pass 6 months
Buffing & Normal Filling

154
Sr Department Working Criteria Qualification On the Job
No Training

Ultra Stream Cleaning, Put Pieces

7 Setting on Lakh, Loose Stone, Cupping, 10th Pass 6 months
Prong setting & Micro Setting

Pre Polish, Kapda Light & Final

8 Polish 10th Pass 6 months
Polish

Masking, Cleaning, Touch UP, Pen

9 Rhodium 10th Pass 6 months
Rhodium, Dipping

12th Pass, Basic

Follow up, Entry, Tally, Loose
10 QC Computer -
Stone Check, QC basic knowledge
Knowledge
B. Com/BCA, Basic
Packing, Excel Work & IGI Work
11 IGI Computer -
Knowledge
Knowledge
B. Com/BCA, Basic
12 Dispatch Packing, Excel Work Computer -
Knowledge

Vacuum Cleaning, Dust Collection,

13 Refinery 10th Pass 6 months
Dept Cleaning

B. Com/BCA, Basic
Computer Wax, Wax Setting, Casting, Filling,
14 Computer 3 months
Operator Setting, QC, Rhodium, Polish
Knowledge

155
 CHAPTER 6
PURCHASE DEPARTMENT

156
6.1 PURCHASE PROCEDURE
EMPLOYEES

SUBMIT REQUEST TO
THE PURCHASING
DEPARTMENT

REQUEST QUOTES
INVESTIGATE
FROM VENDORS FOR SELECT A VENDOR
VENDORS
PURCHASE DEPARTMENT

THE ITEMS NEEDED

WAS THE
SUBMIT PURCHASE
PURCHASE
REQUISITION FOR
ORDER
APPROVAL
APPROVED?

YES
FINANCE DEPARTMENT

ISSUE PURCHASE RECEIVE INVOICE SUBMIT

ORDER TO VENDOR FROM VENDOR PAYMENT
RECEIVING GOODS

RECEIVE
GOODS/COMPLETED REVIEW ORDER
SERVICE

157
• NEED IDENTIFICATION
When a department realizes that they require a good, tool, or service to improve their
operations, the process of purchasing starts. While carrying out their everyday tasks,
team members can assist in identifying needs by alerting their managers to any
difficulties they have. The company might start the purchasing procedure after
determining a necessity.

• SUBMIT REQUEST TO PURCHASE DEPARTMENT

The managers of the particular department submit a request to the purchase department
manager and they proceed with further processing.

• INVESTIGATE VENDORS
The manager looks for potential vendors who can offer the required good or service.
They search for local companies if shipping costs factor into their purchase. During this
stage, they consider several suppliers and compare them against one another.

• REQUEST QUOTES FROM VENDORS

They send proposals to different vendors to make sure the goods or services are
affordable, are able to be delivered on time, and comply with any rules or specifications
set forth by the company.

• SELECT A VENDOR
The Company then selects a vendor offering the best quote that follows all the
specifications fulfilling the requirement.

• SUBMIT PURCHASE REQUISITION FOR APPROVAL

After they have selected a vendor and agreed on the details, the purchase manager sends
a formal purchase request that initiates the purchasing process.

158
• ISSUE PURCHASE ORDER FROM VENDOR
After the purchase request has been approved, the finance department will issue a
purchase order to the vendor. That purchase order signals to the vendor that the purchase
request has been approved and that they can proceed with the request.

• RECEIVE INVOICE
The vendor will then send the Purchase Manager an invoice. The invoice includes a
comprehensive cost breakdown and is a request for payment.

• RECEIVE GOODS/ SERVICES

The company receives the goods or the completed services by the supplier with the
expectation of the specifications according to the quote.

• REVIEW ORDER
When the order is delivered, the manager inspects it for any defects or items that the
vendor didn't fulfil. Being on time is essential because the supplier must take care of
any issues before the manager releases the payment.

• SUBMIT PAYMENT
After the company receives the goods or services, they have to pay the vendor. Finance
Department sends the payment over to the vendor in the preferred method of payment.

159
Advice For Indent

Outward Gate-Pass

160
Vendor’s Invoice

161
Tools Purchase Order

162
6.2 PURCHASING LEAD TIME

PRECIOUS METALS
ZONE ORDER TYPE LEAD TIME
GOLD 2 DAYS
SURAT
ALLOY 1-2 DAYS
MUMBAI PLATINUM 2 DAYS
UDAIPUR PLATINUM 3-4 DAYS

COLOUR STONES
ZONE ORDER TYPE LEAD TIME
STANDARD 3-7 DAYS
JAIPUR / MUMBAI SPECIAL CUT 15-20 DAYS
PINK PEARLS 7 DAYS

DIAMONDS
ZONE ORDER TYPE LEAD TIME
STANDARD 7 DAYS
MUMBAI
SPECIAL CUT 7 DAYS

OTHER ITEMS
ZONE LEAD TIME
SURAT 2 DAYS
OTHER STATES 2 DAYS
INTERNATIONAL 4-6 WEEKS

163
6.3 ORDERING COSTS
COLOUR STONES
STONE TYPE COST CARAT
SEMI-PRECIOUS 2$ - 50$ 15
PRECIOUS 60$ - 1500$ 500
SYNTHETIC 0.5$ - 5$ -
*Note: Quantity is ordered as per requirement.

ITEM LIST
TOOLS SUB-
TOOLS GROUP
GROUP TOOLS NAME QTY RATE AMOUNT
NAME
NAME
CAPITAL SARTORIUS WEIGHING
FIXED 349800.00
GOODS & SCALE 6 58300.000
ASSETS 0
SPARE (LOCAL) (BSA423S_420GM/0.001MG)
CAPITAL
FIXED WEIGHING SCALE (TABLE
GOODS & 1 8000.000 8000.000
ASSETS TOP-10KG)
SPARE (LOCAL)
CAPITAL
FIXED ULTRASONIC CLEANER 118000.00 118000.00
GOODS & 1
ASSETS (20 LTR) 0 0
SPARE (LOCAL)
CONSUMABLE
GAS NITROGEN
& TOOLS GAS 4 695.000 2780.000
(CASTING)
(LOCAL)
CONSUMABLES
PENCIL PENCIL BUFF-RED-2 MM* 500 8.000 4000.000
& TOOLS
CONSUMABLES
COTTON APPRON - DISPOSABLE* 500 40.000 20000.000
& TOOLS
CONSUMABLES
COTTON COTTON FINGER 1,000 2.500 2500.000
& TOOLS
CONSUMABLES PENCIL BUFF-BROWN-3
PENCIL 1,000 8.000 8000.000
& TOOLS MM*
CONSUMABLES PENCIL BUFF-BROWN-2
PENCIL 1,000 8.000 8000.000
& TOOLS MM*
CONSUMABLES
COTTON MASK DISPOSABLE* 1,000 1.500 1500.000
& TOOLS
CONSUMABLES
COTTON CAP DISPOSABLE* 1,000 1.200 1200.000
& TOOLS
CONSUMABLES
CHEMICAL ENAMEL BOWL # 12 2 55.000 110.000
& TOOLS
CONSUMABLES
CHEMICAL ENAMEL BOWL # 14 2 80.000 160.000
& TOOLS
CONSUMABLES
CHEMICAL ENAMEL BOWL # 16 2 150.000 300.000
& TOOLS
CONSUMABLES JETTING HAND GLOVES
GLOVES 4 250.000 1000.000
& TOOLS 18 INCH
CONSUMABLES
CHEMICAL NITRIC ACID 72 % 50 65.000 3250.000
& TOOLS
CONSUMABLES
CHEMICAL HCL 100 12.000 1200.000
& TOOLS
CONSUMABLES
CHEMICAL ACETONE PURE 30 88.000 2640.000
& TOOLS

164
CONSUMABLES
CHEMICAL ALLUM POWDER 30 22.000 660.000
& TOOLS
CONSUMABLES RUBBER HAND GLOVES-
GLOVES 2 350.000 700.000
& TOOLS 18"
CONSUMABLES ULTRA CLEAN SOLUTION
CHEMICAL 20 225.000 4500.000
& TOOLS (GOLDEN)
CONSUMABLES
CHEMICAL DEIONISED WATER 20 23.000 460.000
& TOOLS
CONSUMABLES CONSUMABL MACHHING BOX - (FOR
30 170.000 5100.000
& TOOLS E DIAMOND)
CONSUMABLES TWEEZER (DIAMOND)
TOOLS 44 20.000 880.000
& TOOLS NO.12*
CONSUMABLES CONSUMABL
DIAMOND PACKET NO.02 100 1.200 120.000
& TOOLS E
CONSUMABLES CONSUMABL
DIAMOND PACKET NO.03 100 1.600 160.000
& TOOLS E
CONSUMABLES CONSUMABL
DIAMOND PACKET NO.04 100 2.400 240.000
& TOOLS E
CONSUMABLES ASSORTING PAD PAPER
PAPER 150 7.000 1050.000
& TOOLS (11X17)
CONSUMABLES CONSUMABL 10,00
DIAMOND PACKET NO.01 0.350 3500.000
& TOOLS E 0
ELECTRIC &
HARDWARE SS NUT BOLT 2" 100 19.000 1900.000
HARDWARE
ELECTRIC &
HARDWARE BEARING 693 ZZ 100 40.500 4050.000
HARDWARE
ELECTRIC &
HARDWARE BEARING 684 ZZ 100 55.500 5550.000
HARDWARE
ELECTRIC &
HARDWARE MR BEARING 126ZZ 100 55.500 5550.000
HARDWARE
ELECTRIC &
HARDWARE MR BEARING 148ZZ 100 55.500 5550.000
HARDWARE
ELECTRIC & DATA CABLE FOR
ELECTRIC 1 1450.000 1450.000
HARDWARE (WEIGHING BALANCE)
ELECTRIC &
HARDWARE 2.40 MM PCD DIE 1 5500.000 5500.000
HARDWARE
ELECTRIC & CLAIM Z TYPE 4 FT 2" (H)
HARDWARE 1 254.800 254.800
HARDWARE RP
ELECTRIC &
ELECTRIC ASSORTING WHITE LAMP 2 1850.000 3700.000
HARDWARE
GENERAL
GENERAL COTTON DHOTI (SET) 3 428.570 1285.710
(LOCAL)
GENERAL
GENERAL COCONUT OIL (200 ML) 10 80.950 809.500
(LOCAL)
GENERAL
GENERAL MEDICINE KIT.2 1 22.000 22.000
(LOCAL)
GENERAL
GENERAL WALL HOOK 9 6.000 54.000
(LOCAL)
GENERAL PACKING & POLY BAG # 12 X 16* - 240
5 432.200 2161.000
(LOCAL) DISPLAY GUAGE
GENERAL PACKING &
GI BOX 12X12X12 6 280.000 1680.000
(LOCAL) DISPLAY
GENRAL
GENERAL WATER BOTTLE (01LTR) 2 26.000 52.000
(LOCAL)
GENRAL
GENERAL WATER BOTTLE (01LTR) 2 26.000 52.000
(LOCAL)
GENRAL PACKING &
GI BOX 8X5X4 12 175.000 2100.000
(LOCAL) DISPLAY

165
GENRAL PACKING &
GI BOX 8X5X4 12 95.000 1140.000
(LOCAL) DISPLAY
GENRAL PACKING & POLY BAG # 2 X 3* - 240
10 15.500 155.000
(LOCAL) DISPLAY GUAGE
GENRAL PACKING & POLY BAG # 10 X 12* - 240
10 335.000 3350.000
(LOCAL) DISPLAY GUAGE
HOUSE
HOUSE
KEEPING & BROOM SOFT 5 110.000 550.000
KEEPING
PANTRY
HOUSE
HOUSE COTTON MOOP- DORI +
KEEPING & 5 237.290 1186.450
KEEPING CLIP
PANTRY
HOUSE
HOUSE
KEEPING & GLASS WIPPER (SMALL) 6 46.610 279.660
KEEPING
PANTRY
HOUSE
HOUSE
KEEPING & GARBAGE BAGS 30 X 50 20 94.920 1898.400
KEEPING
PANTRY
HOUSE
HOUSE
KEEPING & COLIN 24 76.270 1830.480
KEEPING
PANTRY
HOUSE
HOUSE
KEEPING & HARPIC LIQUID-500/600ML 24 97.460 2339.040
KEEPING
PANTRY
HOUSE
HOUSE
KEEPING & CLEANER (PHYNOIL) LTR 30 19.070 572.100
KEEPING
PANTRY
HOUSE
HOUSE TIDE WASHIG POWDER -
KEEPING & 50 59.320 2966.000
KEEPING 500 GM (PKT)
PANTRY
HOUSE
HOUSE
KEEPING & LIFEBUOY SOAP 144 27.970 4027.680
KEEPING
PANTRY
PRINTING &
STATIONERY PENCIL - (NATRAJ) 20 4.500 90.000
STATIONERY
PRINTING &
STATIONERY POSTIT PAD_YELLOW 2X3 1 20.000 20.000
STATIONERY
PRINTING & NOTE BOOK 200PEGS
STATIONERY 1 40.000 40.000
STATIONERY JUMBO
PRINTING & TABLE PAD AJANTA
STATIONERY 1 65.000 65.000
STATIONERY WHITE 3.5X5.5 SQU
PRINTING & BOX FILE EX. STRONG
STATIONERY 8 77.000 616.000
STATIONERY STEEL CLIP
PRINTING & BOX FILE HALF- CASH
STATIONERY 6 77.000 462.000
STATIONERY VOUCHER
PRINTING & BOX FILE EX. STRONG
STATIONERY 8 77.000 616.000
STATIONERY STEEL CLIP
PRINTING & CALCULATOR CITIZEN
STATIONERY 1 210.000 210.000
STATIONERY (OT-512)
PRINTING &
STATIONERY WHITE CHALK 1 10.000 10.000
STATIONERY
PRINTING & PUNCH FOLDER A/4
STATIONERY 100 1.330 133.000
STATIONERY MULTI P.P. SOFT
PRINTING &
STATIONERY SPRING FILE 6 18.000 108.000
STATIONERY
PRINTING &
STATIONERY TISSUE ROLL 4 30.000 120.000
STATIONERY
PRINTING &
STATIONERY MARUTI TISSUE* 24 56.000 1344.000
STATIONERY

166
REPAIRS &
PLANT & MS PLATE FOR
MAINTAINANC 6 3000.000 18000.000
MACHINERY (WEIGHING BALANCE)
E
REPAIRS &
PLANT & RUBBER SHEET FOR
MAINTAINANC 6 300.000 1800.000
MACHINERY (WEIGHING BALANCE)
E
REPAIRS &
PLANT & ACRYLIC BOX FOR
MAINTAINANC 6 1600.000 9600.000
MACHINERY WEIGHING SCALE
E
REPAIRS & O RING FOR- PLATINUM
PLANT &
MAINTAINANC MACHINE VTC200- 1 2900.000 2900.000
MACHINERY
E 40496110
REPAIRS &
PLANT & REGULATOR FOR- ARGUN
MAINTAINANC 1 7500.000 7500.000
MACHINERY GAS (ESAB AR-10)
E
REPAIRS & FLASH LAMP,
PLANT &
MAINTAINANC REPLACEMENT KIT WITH 1 38500.000 38500.000
MACHINERY
E O RINGS
REPAIRS &
PLANT &
MAINTAINANC FOOT PEDAL FOR CPP M/C 1 28320.000 28320.000
MACHINERY
E
REPAIRS &
PLANT & DI WATER FILTER
MAINTAINANC 1 10706.000 10706.000
MACHINERY CARTIDGE
E

167
6.4 LIST OF SUPPLIERS
SR. SUPPLIER NAME LOCATION WORK DESC.
NO.

1 ACZET P. LTD. MUMBAI STAMPING MACHINE

2 AKSHAR ENTERPRISE HAZIRA BUILDING ITEM
3 ANGEL LASER INSTRUMENT SURAT LASER MACHINE
4 ANKITA MARKETING SURAT COMPUTER PARTS
5 AROYAL SURAT CARPET
6 BANGALORE REFINERY BANGALORE GPC POWDER
7 BEST TOOLS SURAT HARDWARE
8 BHADRESH SALES & CORPORATION SURAT ELECTRICAL
9 BHARGAV STATIONERY SURAT STATIONERY
10 BHAVIN MECHATRONIC SURAT WEIGHING SCALE
11 BLUETECH IMPEX SURAT CAM LIQUID
12 BIG ENTERPRISE MUMBAI TAG & PRINTER
13 CASCADESTAR INTERNATIONAL MUMBAI / SURAT LASER MACHINE
LLC
14 CAPRICORN SECURITY MUMBAI METAL DETECTOR
15 CERAMIC HOUSE SURAT MARBLE
16 CLASSIC MARBLES SURAT MARBLE
17 CITIZEN SCALE MUMBAI WEIGHING SCALE
18 COURSYS DIGITECH MUMBAI PRINTER FOR PLATINUM
MACHINE
19 DARSHAN JEWEL TOOLS MUMBAI CONSUMABLE & TOOLS
20 DARSHAN TOOLS SURAT CONSUMABLE & TOOLS
21 DARSHNI ENTERPRISE HAZIRA ELECTRICAL
22 DONALDSON INDIA HARYANA DONALDSON DC /
FILTER BAG
23 DECENT BABY CARE SURAT CLOTH / APRON
24 DN TRANSPORT SURAT / MUMBAI TRANSPORT
25 DO IT IMPEX SURAT / MUMBAI MACHINERY / LIQUID /
RHODIUM
26 EXCEL INDUSTRIES / WELL WORTH MUMBAI POLISHING MACHINE /
DC
27 FISCHER MEASUREMENT TECH MUMBAI GOLD SCOPE /
TUNCHING MACHINE
28 GAUTAM IMPEX SURAT CONSUMABLE & TOOLS
29 GLOBAL SERVICES MUMBAI PINO - RHODIUM
30 GATI SOFTECH SURAT SOFTWARE
31 HALLY INSTRUMENTS MUMBAI STIRRER MACHINE
32 HEMNAV VENTURES SURAT CASTING POWDER
33 HETVANSH JEWELS SURAT CASTING POWDER
34 HIMACHAL PLYWOOD SURAT ALUMINIUM / GLASS
35 IIDGR LONDON SYNTHDETECT
MACHINE
36 INFO SONIC MUMBAI ULTRA & STEAM
37 JALARAM CHEMICAL SURAT STAINLESS STEEL
38 JAY KAY ENGINEERING MUMBAI CONSUMABLE & TOOLS

168
39 JEWELTECH RAJKOT MACHINERY-MELTING /
ULTRA / STEAM
40 KANACK SOLUTION SURAT LASER MACHINE
41 KLEENAL INTERNATIONAL MUMBAI VACUUM MACHINE
42 KESARIYA WOODLAM SURAT PLY ITEM
43 KRISHNA ELECTRICAL & MUMBAI HARDWARE
HARDWARE
44 KUNJ PHOTO SURAT CAMERA
45 LOGOTECH COMPUTER SURAT BARCODE LABEL
46 MAHA DARSHNI ELECTRICALS HAZIRA MOTOR REWINDING
47 MAHAVIR IMPEX MUMBAI CONSUMABLE & TOOLS
48 MAHAVIR INTERNATIONAL SURAT CONSUMABLE & TOOLS
49 MANAS FABRICTION MUMBAI PP MATERIAL WORK
50 MANSA ENTERPRISES SURAT TEA & COFFEE
51 MEHTA SAFETY HAZIRA SAFETY ITEMS
52 METRO CASH & CARY SURAT STATIONERY & ALL
GENERAL ITEMS
53 MILLENIA TOOLS AND SERVICES MUMBAI OTEC CHEMICAL
54 NAVBHARAT CARBON MUMBAI RHODIUM / PLATING
MACHINE
55 P P AURORA AGENCIES SURAT STATIONERY ITEMS
56 PARTH FABRICATION MUMBAI FABRICATION WORK
57 PERFECT MACHINERY TRADERS MUMBAI POLISHING MACHINE /
DC
58 PRAKASH TRADERS SURAT LPG GAS
59 PRECIOUS ALLOYS / LEGOR MUMBAI RHODIUM / ALLOY
60 PUSHPAK PLASTIC SURAT HOUSEKEEPING ITEM
61 QADRI GRAPHICS SURAT BOOK PRINTING
62 R.K. WATER CARE SURAT FILTER ITEMS
63 RADICAL SCIENTIFIC EQUIPMENT HARYANA MICROSCOPE- QC
PVT. LTD
64 RAJHANS FURNITURE (CHAIR) SURAT CHAIR
65 REINVENT ENGINEERING MUMBAI CRUCIBLE ITEM
66 S. P. ULTRASONIC MUMBAI ULTRA & STEAM
67 SAMARTH SECURITY SYSTEM MUMBAI METAL DETECTOR
68 SARTO ELECTRO EQUIPMENTS MUMBAI CAM LIQUID
69 SHREE ASHAPURA SANITARY SURAT HARDWARE
70 SHREE GHANSHYAM ENTERPRISE SURAT ELECTRICAL
71 SHREE SAI TECHNOLOGIES SURAT TELEPHONE
72 SHREEHARI ELECTROCHEM SURAT RHODIUM
73 SHREEJI CORPORATION (GAS) SURAT ARGON GAS
74 SHREEJI CORPORATION (MOTOR) SURAT VACUUM PUMP
REPAIRING
75 SHREEJI ENGINEERING AHMEDABAD VACUUM PUMP
76 SONI ENTERPRISE MUMBAI TAAR PATA / DIE
77 SPEEDCOM INDIA SURAT CAMERA
78 SUPREME DIAMOND TOOLS SURAT DIAMOND TOOLS
79 THE DECORA INCORPORATION SURAT PARDA / CEILING
80 VAPSON JEWELLERY EQP MUMBAI SELVET / GLUE /
BURNISH

169
 81 VEKARIA ENGINEERING WORKS JAMNAGAR FACETING MACHINE
ITEM
82 VIBRANT TOOLTECH SURAT TOOL LAPPING WORK

PRECIOUS METALS
SR. SUPPLIER NAME LOCATION WORK DESC.
NO.

1 JAIN JEWELERS SURAT GOLD

2 SAPNA BULLION SURAT GOLD
3 NK JEWELS SURAT GOLD
4 KOTAK MAHINDRA BANK (LOAN) SURAT GOLD
5 BN JEWELERS MUMBAI PLATINUM
6 RAVINDRA HERISUS UDAYPUR PLATINUM
7 NAV BHARAT CARBON COMPANY SURAT ALLOYS

DIAMONDS
SR. SUPPLIER NAME LOCATION WORK DESC.
NO.
1 K P SANGHVI & SONS LLP MUMBAI ALL TYPES OF
DIAMONDS

STONES
SR. SUPPLIER NAME LOCATION WORK DESC.
NO.

1 SHREEJI GEMS JAIPUR PRECIOUS, SEMI PRECIOUS &

SYNTHETIC
2 KAP JEWELS JAIPUR PRECIOUS, SEMI PRECIOUS &
SYNTHETIC
3 VINAYAK GEMS JAIPUR PRECIOUS, SEMI PRECIOUS &
SYNTHETIC
4 SHREE RAM MUMBAI PRECIOUS, SEMI PRECIOUS &
INTERNATIONAL SYNTHETIC

6.5 RE-ORDERING TIME

The reorder time is the minimum inventory or stock level for a specific product that triggers
the reordering of more inventory when reached.
According to KP Sanghvi Pvt. Ltd. HR Manager, they believe in holding no inventory and later
ordering raw materials in accordance with the needs and requirements of the completed product
that the client has requested.

170
 CONCLUSION
KP Sanghvi Jewels Pvt. Ltd. is known to satisfactorily cater to the demands of its customer
base. The business came into existence in 1965 and has, since then, been a known name in its
field. Customer centricity is at the core of KP Sanghvi Jewels Pvt. Ltd. and it is this belief that
has led the business to build long-term relationships. Ensuring a positive customer experience,
making available goods and/or services that are of top-notch quality is given prime importance.
The Finance department provides the funds for the company’s numerous operations and aids
in making wise investments in the company’s short and long-term assets. When making
decisions, they consider the company’s objectives of expansion and shareholder wealth
maximisation. Every day, all of the department heads assemble to address problems and create
goals. The departments collaborate to eliminate bottlenecks and improve job quality.
The Marketing division In Mumbai employs a variety of strategies, from banners and stalls to
social media marketing, to attract new customers. They operate in accordance with fashion and
give priority to local customers’ needs. The marketing division advertises to everyone and does
not use segmentation. As long as they match the margin specifications, anyone can buy their
products.
The Human Resource division runs efficiently and plans out the recruiting and on boarding of
new staff as and when needed. The personnel are happy with their roles, and any indication of
distress is handled impartially and professionally right away. The company works as a unit, and
nobody is treated badly no matter what position they hold in the company. The HR department
makes sure to hold people accountable for their mistakes and celebrate their successes, which
creates a positive and meaningful work environment.
The Production department includes production manager, director, supervisor and workers who
work for production activity. The Production division is proficient in carrying out its duties,
delivering goods of the highest calibre, and monitoring the efficacy of the production. The
resources are properly utilized in order to reduce wastage, chaos and double allocation. Right
across the street from their current facility, they are currently expanding into a new production
unit. They will be more productive, have a larger workforce, and operate more efficiently and
effectively thanks to the installation of this new industrial facility. This addition will help gain
new opportunities for the company.
The Purchase department of any company plays an important role in the smooth functioning
of the production process and the amount of profit the company earns by the end of the day. If
a company purchases way too expensive raw materials, that brings down the overall profit and
can even lead to losses. Examining the market for different suppliers, comparing the prices and
quality of raw materials they provide and then selecting a few is not an easy task. The purchase
department of KPS Jewels Pvt. Ltd. works flawlessly and manages to provide raw materials
and other resources as and when required.
A safe working environment is a right of every employee and the Safety department of KPS
Jewels Pvt. Ltd. works day and night to make sure their employees gets to enjoy it. There’s no
negligence in the maintenance and repair of the machinery and equipment used. Every piece
of new machinery or equipment goes through a thorough examination, and the employees are
properly trained before they’re even allowed to use it. With safety equipment like fire
171
extinguishers, fire alarms, safety goggles, helmets, gloves, etc. in place as well as a business
code of conduct for the prevention of any distress or injustice, the company prioritises the
safety and wellbeing of all of its 700+ employees.
We are all grateful of the chance to comprehend the application of the theory covered in the
Bachelor of Business Administration programme. We made the greatest choice by selecting
KPS Jewels Pvt. Ltd. As our SIP company. It is a laborious process to make jewellery, and it
takes time and effort from the moment it is created until the final customer receives it, but the
company does a great job of handling it. We have learned valuable life lessons from the hard
work and integrity of each and every employee of this organisation, lessons that we will carry
with us wherever we go. The staff of KPS Jewels Pvt. Ltd. was extremely helpful and patient
during our training and entertained all out questions no matter how trivial they were. They
made us feel at home, and we will always cherish what they taught us.
We hope for the prosperity of this business, and after seeing first-hand how good the
management is, it’ll be no surprise to witness KPS Jewels Pvt. Ltd. at the top of the list of
jewellery manufacturers.

172
 BIBLIOGRAPHY

BOOKS:
• Analysis Of Financial Statements - TS Grewal

WEBSITES:
• www.kpsanghvi.com/
• www.kpsjewels.com/
• www.instagram.com/kpjewelsofficial
• www.google.com/
• www.mca.gov.in
• www.wallstreetmojo.com
• www.investopedia.com
• www.lucidchart.com
• www.thestreet.com/markets/commodities/product-life-cycle-14882534
• www.pinterest.com/

173