AMRUT EXPORT LTD.

Summer Training Report at

Amrut export ltd.

( Vraj shila diamond merchant)

In Partial Fulfillment of the

Requirement for the degree of
BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY:-

NAME:- ROLL NO:-

Ghadiya misa. 34
Kashyap dipak. 36
Kalavadiya priti. 38
Ghaskata dhvaj. 42

Submitted To:

PROF. VIDHI JOSHI.

Shree s.v patel college of computer science and business management
surat.

Affiliated To:

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

Year:-2017-2018.

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DECLARATION

We, KASHYAP DIPAK, GHADIYA MISA, KALAVADIYA PRITI, GHASKATA

DHVAJ, Hereby declare that the report on summer training in AMRUT
EXPORT LTD. is a result of our own work and our indebtedness to other
work/publication if any have been only acknowledged.

Place: Surat
Date: 10/07/2015

GHADIYA MISA.
KASHYAP DIPAK.
KALAVADIYA PRITI.
GHASKATA DHVAJ.

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ACKNOWLEDGEMENT

Expressing our profound gratitude and thanks to AMRUT EXPORT LTD. And its
Owner, Mr. SAVJI PATEL for allowing us to undergo our training in AMRUT
EXPORT LTD.

We also indebted to Mr.Bhargav (HR DEPARTMENT) for his timely guidance

and all other staff and workers of the company for their kind co-operation for our
successful project completion.

We are grateful thanks to our mentor Mr. VIDHI JOSHI I/C Principal of Shree
s.v Patel College of Management and computer science. And thanks to faculty
guides for their throughout help in conduction the training in most efficient way.

GHADIIYA MISA.
KASHYAP DIPAK.
KALAVADIYA PRITI.
GHASKATA DHVAJ.

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INDEX

CHAPTER - 1 GENERAL INFORMATION..9

1.1 Introduction...9

1.2 History of diamond...9

1.3 Industry profile10

1.4 Company profile.11

1.4.1 Fonder.11

1.4.2 Vision..12

1.4.3 Mission12

1.4.4 Code of conduct..12

1.4.5 Organization structure.............13

1.4.6 Company executive. .......13

1.4.7 List of directors...14

1.4.8 Infrastructure facility...14

1.4.9 Product profile.14

1.4.10 World famous diamond.........15

1.4.11 Types of communication channel.19

CHAPTER 2 PRODUCTION DEPARTMENT..20

2.1 Organization structure.20

2.2 Definition of production management...21

2.3 Types of product.21

2.3.1 Marquise..21

2.3.2 Heart22

2.3.3 Princess...23

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2.3.4 Round..23

2.4 Analysis of plant location considering various factors...24

2.4.1 Factor affecting selection of plant location.24

2.4.2 Internal plant layout of production department...25

2.5 Production process..26

2.6 Material handling equipment.33

2.7 Inventory control system.36

2.8 Quality control system36

2.9 Quality control guidelines...37

CHAPTER 3 HUMAN RESOURCE DEPARTMENT...39

3.1 Organization structure.39

3.2 Definition of HRM..39

3.3 Recruitment & selection..40

3.4 Promotion, demotion & transfer policy..40

3.4.1 Promotion....40

3.4.2 Demotion.41

3.4.3 Transfer...41

3.5 Performance appraisal.41

3.6 Training & development system.............................42

3.6.1 Training...42

3.7 Classification of workers42

3.8 Legal provision...43

3.9 Wage & salary administration.44

3.9.1 Wage system...44

3.10 Trade union...44

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3.11 Fringe benefit44

CHAPTER 4 MARKETING DEPARTMENT....44

4.1 Organization structure.45

4.2 Definition of marketing management.45

4.3 Competitors.45

4.4 Market segmentation...46

4.5 Marketing mix.46

4.5.1 Production mix....46

4.5.2 Promotion mix.50

4.6 Distribution network...51

CHAPTER 5 FINANCE DEPARTMENT...53

5.1 Organization structure53

5.2 Definition of finance management.53

5.3 finance activity53

5.4 Accounting method.54

5.5 Long term source of finance...54

5.6 Short term source of finance...54

5.7 Taxes...55

5.8 Computer software..55

5.9 Trading & P&L account..56

5.10 Ratio analysis57

5.10.1 Liquidity ratio...57

5.10.2 Profitability ratio...........................59

5.10.3 Efficiency ratio..61

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5.11 Trend analysis & common size statement.64

CHAPTER 6 PURCHASE DEPARTMENT....66

6.1 Organization structure.66

6.2 Purpose66

6.3 purchase procedure.67

6.4 Documents of purchasing....68

6.5 Suppliers selection..68

BIBLIOGRAPHY..69

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EXECUTIVE SUMMERY:-

AMRUT EXPORT is a part of diamond industry, headquartered in the

KAPODRA with more than INR 30 million $ annual turnovers. AMRUT
EXPORT is in the business of manufacturer of the policed diamonds or also the
import and export the policed and rough diamond since 1970.

Which is known for their density, quality and natural resistance towards termites
and borers are the only selected species of diamond. To ensure to controlled their
product quality.

The companys other branch as BHARAT DIAMOND BOURSE is existing in the

Bandra (e), Mumbai-400051.

As we are the student of BBA we appear summer internship in the AMRUT

EXPORT. For study of functional area as Production, HR, Marketing, Finance and
Purchase department. As a part of project and collect the information about all
above department.

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CHAPTER-1 GENERAL INFORMATION

1.1 INTRODUCTION:-

Management is a process by which people, technology, job task and other resource are combined
and coordinated so as to affectively achieve organizational goal.

The summer training conducted at AMRUT EXPORT is to study of organizational structure,

span of control, organizational culture etc. of organizational the relevance of the study is to
understand the above mention fact through organizational scenario.

1.2 HISTORY OF DIAMOND:-

DEFINITION:-

A very hard mineral that is a form of carbon, is usually nearly colorless, and is used especially in
jewelry.

The name of diamond is derived from the ancient Greek word (adamas), which means
proper, unbreakable, untamed, which means unconquerable suggesting the eternity
of love.

Diamond is crystallized mineral essentially composed of carbon.

However, diamond are thought to have been first recognized and mined in India, where
significant deposits of the stone could then be found many centuries ago along the rivers
Krishna and Godavari .

Diamonds have been known in India for at least 3000 to 6000 years.

Natural diamonds are rare gift from mother earth to mankind.

Diamonds were formed billions of years ago, deep within the earth.

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Only a small number survive the journey to the earths surface.

Diamonds are forever! Sparkling diamond are the center of attracting since the very
beginning. Diamonds have been associated with romance, legend, strength and power,
over the centuries. However diamond has acquired its unique status as the ultimate gift of
love.

The Greek also believed thats the fire in the diamond reflected the constant flame of
love. Diamond essence lives longer.

1.3 INDUSTRY PROFILE:-

Size of the industry:- The diamond industry in India today is worth about Rs. 6000 crores
and is rated amongst the fastest growing diamond markets in the
world.
Geographical Gujarat, Mumbai , Surat, etc
distribution:-

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Output per annum:- Indian has exported rough diamonds worth US$ 566 million in
2007-08 and polished diamonds of worth US$ 14.18 billion.
Percentage in world market Today India is the largest diamond
cutting and polishing center in the world, it enjoys 60% value share
for diamond cutting and polishing. 85% volume share and 92%
share of the world market in terms of number of pieces

Market Capitalization:- Indian Diamond Industry currently constitutes about 15% of Rs. 900
crores approx. of the market and is growing at a rate of 40%

1.4 COMPANY PROFILE:-

Name of the company:- Amrut export ltd.

Company address:- Vraj shila, kapodra, cross road, varacha, surat.
Company branch:- Ge4030, Bharat diamond, bourse, Bandra (e),
Mumbai.
Year of establish:- 1970
Types of industry:- Large scale industry
Business operation:- Rough and polished diamond
Management details:- Owner- Ravjibhai patel
Director- Bhavesh kikani

Turnover:- 30million$ per year

Constitution:- Private organization

1.4.1 Founder:-

MR. Ravjibhai patel, the founder of the company, has started organization as on 18 January
1970. He is the managing director of the AMRUT EXPORT LTD. AMRUT EXPORT LTD has
WELL KNOWN brand image in the area of varachha kapodra. Here the quality is to be mattered.

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1.4.2 Vision:-

People development: - people development is over way of keeping our people happy.
Quality: - we dont just insist on quality, we are careful about it.
Innovation: - we always innovate, therefore we are.
Trust: - we trust not by making promises, but by keeping them.
Customer focus: - we are all eye and ears when it comes to customer focus.
Here vision is to be the to make aware market about this brand and and make growth of
the company.

1.4.3 Mission:-

To provide maximum satisfaction to the customer through best quality and customer care.
To continuously upgrade machine technology and increase the productivity.
To utilize the surpluses for the further development and expand the company.
Get position top in 10 the diamond industry market.

1.4.4 The code of conduct:-

1. Ethical conduct
2. Transparency
3. Delegation
4. Overall supervision and control
5. Equality
6. Cordial relation
7. Health, safety & environment
8. Sharing of information
9. Fair dealing
10. Company facility

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1.4.5 Organization structure:-

Owner

Director

Manager

Clerk

Suprvisior
Worker

1.4.6 Company executive:-

Sr.no. Name Designation

1. Ravjibhai patel Owner

2. Bhavesh kikani Financial manager

3. Ranjeetbhai rampariya Marketing manager

4. Bhargav patel HR manager

5. Chirag dhameliya Production manager

6. Sanjaybhai hirapara Purchase manager

7. Chandubhai movaliya Supervisor

8. Bhavesh lakhani Clerk

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1.4.7 List of the directors:-

Sr.no. Name Designation

1. Ravjibhai patel Owner

2. Ghanshyambhai patel Vice chairman

3. Bhavesh kikani Director

1.4.8 Infrastructure facility:-

Have separate plant or area.

A well-furnished room allocated to the employee at organization who are at permanent
basis.
It has two separate offices one is the managing director and another is for the conference.
Industry has its own material handling equipments and other statutory infrastructure
facility.

1.4.9 Product profile:-

The major focused of industry is on the diamond quality and the customer satisfaction. The
company has get good responses from the customer about the product, and get appreciated by
other diamond base industry.

Here in this AMRUT EXPORT LTD. Provides various type of diamond. Those are various types
of the diamonds like, marquise, heart, princess, round, pear, radiant, oval, baguette,
cushion, emerald.

But this company more focused on round shape diamond and its also specialization in the
round diamond.

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1.4.10 World famous diamond:-

The Great Star of Africa:-

Weight: 530.20 carats

Color: unknown

Clarity: unknown

Cut: Pear

Source: Transversal, South Africa

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The Orloff:-

Weight: 189.62 carats

Color: slightly bluish green

Clarity: "exceptionally pure"

Cut: Mogul-cut rose

Source: India

Centenary Diamond:-

Weight: 273.85 carats

Color: Grade D Colorless

Clarity: Bright

Cut: Modified

Source: South Africa

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The Regent:-

Weight: 140.50 carats

Color: unknown

Clarity: unknown

Cut: Cushion shaped brilliant

Source: India

The Kohinoor:-

Weight: 108.93 carats

Color: unknown

Clarity: unknown

Cut: Round Brilliant

Source: India

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The Taylor-Burton:-

Weight: 69.42 carats

Color: F-G (colorless)

Clarity: Internally Flawless

Cut: pear-shape

Source: Premier Mine, South Africa.

The Blue Hope:-

Weight: 45.52 carats

Color: dark blue

Clarity: flawless

Cut: Oval Brilliant

Source: India

1.4.11 Types of communication channel:-

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foramal

communication
channel

informal

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CHAPTER-2 PRODUCTION DEPARTMENT

2.1 ORGANIZATION STRUCTURE:-

Production manager

Mr. Jitendrabhai

Assort manager Planning Sawing manager Polishing

manager manager

Asst. Manager Asst. Manager Asst. Manager Asst. Manager

Workers Workers Workers Workers

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2.2 DEFINITION OF PRODUCTION MANAGEMENT:-

Production management means planning, organization, director and controlling of production

activities.

Production management deal with converting raw-material to finished goods or products. It

brings together the 6M means:

Men, Money, Machine, Material, Method, Markets.

2.3 TYPES OF PRODUCT:-

Following are the types of diamond which are the polished and export.
Marquise
Heart
Princess
Round
Pear
Radiant
Oval
Cushion
Emerald
HERE IS THE MAIN FOCUS ON THE FOUR TYPES OF THE DIAMONDS.

2.3.1 Marquise:-

The marquise cuts origin dates back to the 18th century when king Louis xv of France (1710-
1774).

The marquise diamond cut, also known as the football-shaped cut, the boat-shaped cut, the eye-
shaped cut is rarely seen as the engagement ring world compared to other less vintage cuts.

The marquise cut began as a cut for diamond; it is widely used with other gems like emeralds,
rubies, sapphires.

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2.3.2 Heart:-

The modified brilliant-cut heart shaped diamond is a unique and unmistakable symbol of love.
Heart shaped diamonds are popular in solitaire pendants as well as rings.

Heart shaped diamonds of less than .50 carats may not be a good choice, as the heart shape is
more difficult to perceive in smaller diamond.

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2.3.3 Princess:-

The princess cut diamond, first created in 1980 by betzalel amber and Israel is the most popular
fancy cut, especially for engagement rings.

2.3.4 Round:-

The round cut diamond is the most popular diamond shape, representing approximately 75% of
all diamonds sold. Due to the mechanics of its shape, the round diamond is generally superior to
fancy diamond shape at the proper reflection of light, maximizing potential brightness.

Virtually all round diamonds are brilliant cut, meaning they have 58 facets.

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2.4 ANALYSIS OF PLANT LOCATION CONSIDERING

VARIOUS FACTORS:-

There are two plant of AMRUT EXPORTLTD, the main plant in the kapodra road, varachha,
Surat and the other one is located in Bandra (e).

2.4.1 Factors Affecting Selection of plant Location:-

Cheaper land:-

The price of the land is cheaper as compare to in a other city so, AMRUT EXPORT

LTD, can expand their business by spending less.

Near to most of the employees:-

As we know that Surat has a large amount of skilled labor and most of them stay in

katargam & varachha area. And the main factory of AMRUT EXPORT LTD is located in

Varachha so it is easy to get skilled labor over there. And it is also near to most of the

employees.

Labor availability:-

Production plant of AMRUT EXPORT LTD is situated in the city. And as highest

number of skilled workers comes from Katargam, Varachha and nearby area labor is

available easily.

Cost of living:-

Cost of livening in Katargam & Varachha is low compare to urban area. So the expenses

related to workers tend to be low. And so that manufacturing cost decreases.

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2.4.2 INTERNAL PLANT LAY-OUT OF PRODUCTION DEPARTMENT:-

The building has four floors. Out of that this firm owned 1st, 2nd and 3rd floors. On each floor

different activities are performed.

Ground floor:-

Security

Parking

1st floor

Polishing Department

Brutting Department

Boiling Department

Maintenance Department

2nd floor

Maxi Brutting Department

Half Brutting Department

Marking Department

Laser Department

4P Department

3rd floor

Office

Account Department

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Cleaving Department

Assort Department

4th floor

Other firms offices.

2.5 PRODUCTION PROCESS:-

Assortment

Planning

Cleaving & Sawing

Boiling

Assorting

Bruiting

Polishing

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The entire production process starts with the rough assortment and ends with the stone being polished.

The production process of diamond is given below.

There are mainly seven steps which are as follows:

1. Rough Assortment:-

This is a very important department, as a diamond begins its journey of being transformed from a rough

to a polished stone from here onwards. The work of this department is to check the rough stone and to

determine its properties such as purity, color, & size etc. i.e. 4'C's namely color, clarity, carat, cut.

Keeping all these 4Cs in mind they give the rough stone a grade.

2. Planning:-

This is also one of the most important phases of the entire manufacturing process. It can also be

known as the brain department of the entire process. Marking is done after examining each rough

diamond to decide how it should be cut to get the greatest value. The shape of the rough diamond and

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the number and location of blemishes are first considered. Since the crystalline structure of diamond

causes it to have a grain, it is critical to plan for the facets of the diamond to be made in the correct

direction. Taking these factors into account, the planner decides how the diamond should be cut and

marks it to indicate where the stone should be cleaved or sawed. It is also known as Signing or

Marking.

3. Cleaving and Sawing:-

Here the experts have to decide whether the marked diamond should be cleaved as per the mark

and planes of each individual diamond. When the stone is very large and valuable, cleaving it is a

critical process, because a mistake by the planner or the cleaver can shatter the diamond. The cleaver's

job is to cut the diamond into two pieces to bring out the best angles and establish what the final cut will

be. Cleaving is done by hi-tech laser machine marking and then by chisel and hammer. However, some

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stones have too many stress points and might fragment if cleaved, so they must go to the sawyer. This

process is extremely meticulous and time-consuming.

If the diamond needs to be cut, blades or laser machines do it, which is the latest technology in

sawing. The saw used in diamond processing is a paper-thin disk of phosphor bronze that rotates on a

horizontal spindle at about 4,000 rpm. The diamond is clamped so it rests against the blade and is sawed

for several hours, depending on the size of the diamond. Since diamond is the hardest substance on

earth, it can only be cut by another diamond.

Therefore, diamond dust is used on the saw, as well as the actual diamond dust generated by the crystal

being cut.

4. Boiling:-

Boiling plays very important role in the business of diamond. After cleaving or cutting by laser

sawing machine the diamond being dark or black, so to make it clean boiling process is useful. They use

sulfuric acid to boil the diamonds.

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5. Assorting:-

After boiling, diamond has the need for assortment so assortment of diamond is done twice in the

manufacturing of the diamond. It is done second time because after cleaving shape of diamond will be

change so this process is compulsory.

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6. Bruting:-

In this department, bruters give different shapes to the diamonds as earlier planned, in such a

way that the polisher can achieve maximum yield. Normal bruters, Maxi bruters, advanced bruters as

well as laser bruting machines are used in this process. The bruter has to take its utmost care of the

diamond at this process so that it does not break. Also in this process the bruter has to leave as much of

natural skin on the piece of diamond as possible. This is because one can check out that the weight loss

of the diamond in this process is not more than required. In the whole process of bruting the main aim of

the bruter is to give a shape to the rough diamond in such a way that its optimum effect can be achieved

by the polisher, without any extra weight loss than required.

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7. Polishing:-

After being bruted a diamond passes to the polishing department where the final work of faceting

is done. Polishing means the process of giving the diamond its final look. The diamond is clamped onto

a revolving cast-iron lap that has been charged with diamond dust. The fine diamond dust acts as an

abrasive to polish away small imperfections and make the surface of the stone perfectly smooth.

Here the artisan has to be very careful at all stages as even a small mistake done by him can make the

diamond look poorer than what it might have looked had it been cut properly. This is the last step in the

manufacturing process of the diamond.

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2.6 MATERIAL HANDELING EQUIPMENT:-

1. Tray:-
Plastic tray is useful to handle the Diamonds. Assorting is done only with the use of this

tray.

2. Tongs:-

Tongs are used to pick the diamond and place it at appropriate location.

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3. Packet:-

Internally, the diamonds are transferred from one person to other or from one department

to another department through packet. It is made from paper. In the upper side of the packet

weight, shape, lot no., piece, etc. are written.

4. polythene pouch with zip:-

If the diamond is in the big lot than it is handled in such polythene pouch which have zip

by which we can pack it. This pouch is mainly used during import and export.

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5. Elevator:-

Big machines and other heavy items are transferred by elevator.

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2.7 INVENTORY CONTROL SYSTEM:-

It is the process of controlling timings and quantities of two inventory transactions. The

first is purchase or acquisition of inventory and the second is usage of inventory.

Inventory control in any company is all about to control and keep knowledge about

Received, issued and the balanced stock in the store. AMRUT EXPORT LTD. also control

inventory and get some benefit, which is added to the profits of the company.

The main objective for controlling inventory is to meet the customer requirement timely,

effectively. Efficiently, smoothly and satisfactorily and other objectives are as follows:

To gain economy of purchase or production in lots

To balance various costs of inventory such as order cost and inventory carrying cost

To meet unforeseen future demand due to variation in forecast figures and actual figures

To smoothen the production process

To meet the time lag for transportation of goods

To balance the stock out cost

To minimize losses due to deterioration, damage. Obsolescence etc

2.8 QUALITY CONTROL SYSTEM:-

Quality is one of the most widely used terms in management. The term quality does not

mean the best one, but it is related to some specific standards of particular good and services.

Quality is the first priority that the customer demands in his product. If there is lack of quality in

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the product then the customer will reject the product and find a new supplier. Quality plays a

very important role in all competitive industries.

AMRUT EXPORT LTD. set some standard which strictly followed by each and every

employee. The managerial people always keep in touch with new technology and ready to establish

it. The one piece of diamond is moving from at least 15 people and checked at least 30 times with

eye glass. So quality level is maintained properly. They provide guidelines regularly to employees.

2.9 QUALITY CONTROL GUIDLINES:-

The standards or guidelines for maintain quality is as follow:

Raw material Rough diamond:-

Purchase high quality of rough

It should well cut and assorted

Rejection should be as possible as low

The possibility of preparing polished diamond from it should be high.

Work In progress:-

Plan is made good by which the best shape will come out.

Level of rejection or wastage should be at minimum.

During boiling level of chemical should be standard so that line will appear.

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During bruting and polishing, the weight loose should be minimum.

The table, bottom, and pavilion of diamond should be good.

Finished products polished diamond:-

The weight of polished diamond should be 29% to 32 % of total weight of rough during

bruting and polishing.

After prepare the diamond, cleaning should be done properly so that diamond will be shine

more.

Final shape of diamond should be ideal not so shallow or deep.

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CHAPTER: - 3 HUMAN RESOURCE DEPARTMENT:-

3.1 ORGANIZATION STRUCTURE:-

OWNER

HR MANAGER

SUPERVISOR

WORKERS

3.2 DEFINITION OF HRM:-

HRM is the planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end individual,
organizational and social objectives are accomplished.

OBJECTIVES OF HRM:-
1. To help the organization complete its goal by providing well trained and well motivated
employees.
2. To employee skill and knowledge of employees efficiently and effectively to utilize
human resource effectively.
3. Job satisfaction and self actualization of employees.
4. To establish and maintain productive self respect and internally good.
5. Relationship among the group to bring out maximum individual development.
6. To develop and maintain quality life.

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7. To maintain high moral and maintain good relationship within the organization.
8. To maintain ethical policies and behavior inside and outside the company.

AMRUT EXPORT is highly successful in management its production human assets.

Mutual understanding between the management and worker is appreciable in of the
matter of the achievement of organizations ultimate goals.

Human resource structure:-

General Manager is the head of the HR department followed by factory executives, who
deals with all the matter is the HR department.

3.3 RECRUITMENT AND SELACTION:-

1. This process is totally based on the references.

2. Worker are under contract are skilled, semi skilled, unskilled.
3. Here in AMRUT EXPORT LTD. Worker are mostly hired by the references of existing
workers. Like workers friends, relatives, neighborhood etc.
4. Here the recruiting the worker on the bases of the trust and loyalty of the existing
workers.
5. Company highering the probationary worker.
6. In the AMRUT EXORT LTD. Higher the specific age employee for the specific task
(operation). For example,
department Age required
(year)
Sorting 30 to 40
Sarin 18 to 25
Laser & 4p 20 to 30
Polishing 30 to 45

3.4 PROMOTION, DEMOTION & TRANSFER POLICY OF A.E:-

3.4.1 PROMOTION:-

Promotion refers to process of increasing pay, prestige, position, responsibilities of the

existing worker in the his/her organization.

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Promotion in AMRUT EXPORT LTD. Is as follow:-

The decision of promotion is taken by every department manager.
For managerial post decision is taken by top management.
There are mainly three ways of promotion:-
1. Increase in salary.
2. Send to higher post with increasing in salary.
3. 15% bonus salary every month.
If the employee is good, hard working and have more ability than he will be promoted.

3.4.2 DEMOTION:-

Demotion is the downward movement of employee from up position to down position

with decrease in salary. Demotion is done because of following reason:-
If the quality of work done by employee is very poor.
If he will not regular.
Behavior is very poor.

3.4.3 TRANSFER:-

Transfer is the process of shifting an employee from one job to another job without
changing in his/her job and position.

3.5 PERFORMANCE APPRAISAL:-

In AMRUT EXPORT the head of the department is doing a performance appraisal

To identify the employee for various function like. Promotion, demotion &
transfer.
Its help to determine training and development need of employee.

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3.6 TRAINNING & DEVELOPMENT SYSTEM:-

3.6.1TRAINNING:-

Training is the process of increasing the knowledge and skill for doing a particular job it is an
organized procedure by which people learn knowledge & skill for a definite purpose.

Training is given in 3 categories:-

Management training
Office training
Senior executive training

Need for training:-

Job recruitment
Technological changes
Organizational viability
Internal mobility

In AMRUT EXPORT LTD. Training is given to 6 months. Officers and senior executives attend
the management development programmed organized by institutes. Training is not uncommon in
AMRUT EXPORT LTD.

3.7 CLASSIFICATION OF WORKER:-

1. Permanent worker
2. Probationers
3. Substitutes
4. Temporary
5. Casual

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3.8 LEGAL PROVISION:-

SHIFT:-

Here only a two shift are followed from the 8:00 AM to 8:00 PM and 8:00 pm to 8:00 AM.

ATTENDENCE PUNCHING MACHINE:-

In the AMRUT EXPORT LTD. Have a punching machine for taking a attendance of the worker
at the starting of the day and the end of the day.

ENTRANCE AND EXIT:-

The worker should enter in the organization on appropriate time and should not leave the
organization during the working hours.

LEAVE AND HOLIDAYS:-

Leave with the wages will be allowed to the worker to the as provide for in the chapter of
factories act.
National and religion holiday should be provided to the worker.
Sick leave, accident leave etc. leave should also be provided by the company.
On the Sunday in the AMRUT EXPORT LTD is the holiday for the worker of the
company.

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3.9 WAGES AND SALARY ADMUINISTRATION:-

Here in the AMRUT EXPORT LTD, the manager analyze and interpret the need of the
employees, so that reward can be individually design to satisfy the worker. Here in this
organization the salaries to be given on the bass of the two method .

3.9.1 WAGE SYSTEM:-

1. Time wage system

2. Piece wage system

TIME WAGE SYSTEM:-

Here in the wages is paid on the basis of the time is to be spent at the work area.

PIECE WAGE SYSTEM:-

Here is the wages is given on the basis of the piece of the diamond produced by the worker.

Here in the most of the diamond company using the time wage system.

3.10 TRADE UNION:-

It is inevitable of the AMRUT EXPORT LTD.

Affiliated to the locals of the Surat.

Affiliated to the Mahesana, Rajkot and also Nepal.

3.11 FRINGE BENIFITE:-

Room provided by the company for the workers.
A well maintained workstation also provided.
Its also providing the transport facility to the worker.

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CHAPTER4- MARKETING DEPARTMENT:-

4.1 ORGANIZATION STRUCTURE:-

OWNER

MARKETING
MANGER

MARKETING
EXECUTIVE

4.2 DEFINITION OF MARKETING MANAGEMENT:-

Marketing management is defined as the process of overseeing and planning product

development, advertising, promotion and sales. An example of marketing management is
creating plan and implementing the plan.

AMRUT EXPORT LTD, marketing due to the high standard of quality maintained by the
employees of this company, the product of the company have satisfactory acceptance in markets.
The company has succeeded in manufacturing programs on the basis if firm order, which is
regularly for all types of the diamond. The diamond manufactured by the company is being
regularly used for making jewelries. The product of the company is sanded to the Mumbai, US,
UK, New York, SPAIN etc.

4.3 COMPETITORS:-

List of the competitors:-

1. SRK. Diamond
2. Dharma nandan diamond
3. Kiran diamond
4. Bhagvati diamond

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4.4 MARKET SEGMENTATION:-

It is well-established organization manufacturing and polishing high and good quality of the
diamonds. Company believes in quality. In order to ensure the quality of product that should be
check by employee company has an efficient marketing strategy. The price of diamonds are
comparatively high, but of the high quality. The company is targeted at the high income as well
as the low income groups.

Products are the segmented as:-

1. Consumer market
2. Business market
3. Global market

4.5 MARKETING MIX:-

4.5.1 PRODUCTION MIX:-

It produces a limit of marquise, heart, princess cut diamonds to suit specific requirement in the
domestic or the international market. It also the main focus to produce the round cut diamonds

The main characteristic of diamond is known as 4 Cs of diamond.

1. CARAT

2. CUT

3. CLARITY

4. COLOR

1) CARAT:-

The weight of a Diamond is measured in carats, with one carat being equivalent to 100

points and 5 carat = 1 gram. Larger stones are often more highly valued, but size should not be

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the only consideration--high brilliance, which varies according to clarity, cut, and color grade, is

highly desirable in a diamond.

For example, if we have 10 diamonds of each 1 carat and 1 diamond of 10 carat, the price of 10

carat diamond is more than 10 diamonds each of 1 carat. As we had already mentioned that

shining of diamond affects its price. So reflection of light is more in 15 carat diamond and vice

versa.

2) CUT:-

The cut of a diamond determines how it reflects light, which is responsible for its sparkle or

brilliance. A well-cut diamond is cut by a skilled professional to the best proportions possible so

that light will be reflected from each of its mirror like facets and disperses through its top. Too

shallow cut will let light escape through a diamond's bottom, causing it to appear dull, while too

deep cut will allow light to be lost through the sides of diamond, making it appear dark.

Diamond with perfect color and clarity could nevertheless have poor brilliance if it is not

well cut. Price of diamond depends upon the shining that is reflection of diamond. It means that

if light reflection is maximum than its is defined as a diamond of excellent cut and vice versa.

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GIA (Gemological Institute of America) had given 5 grades to diamonds according to its cuts:

1. Excellent

2. Ideal

3. Very Good

4. Good

5. Fair

3) CLARITY:-

A diamond's most distinguishing characteristics are its inclusions, marks that are often

invisible to the naked eye. However, under a jeweler's magnifying loupe or microscope they can

look like crystals, tiny rivers, or clouds. A diamond's clarity is determined by the presence or

absence of inclusions. (Fewer inclusions mean better clarity) and how visible they are. The

greater is the diamond's clarity, the greater is its brilliance and value. A diamond categorized as

internally flawless will have no inclusions, but this is extremely rare.

Diamonds with very, very small inclusions are graded as VVS1 or VVS2. Those with larger

inclusions are considered lower-grade. Diamonds with inclusions that are visible with the naked

eye are graded l1 to I2. These factors are given by GIA.

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4) COLOR:-

Though diamonds come in a wide range of colors, colorless diamonds have

traditionally been considered the most valuable. Most diamonds are graded on a scale

using the letters of the alphabet, from D (colorless), the best grade, through Z (a light

yellow). It is difficult for the untrained eye to notice such variations in color unless stones

are being compared side by side. The comparatively rare colored diamonds are known

as fancy-colored and are also quite valuable.

Diamonds that are graded D, E, and F tend to be the most expensive because of their rarity.

4.5.2 PROMOTION MIX:-

Promotion refers to creating incentives for buying. For promotion AMRUT EXPORT LTD.

depends on the following:

Customer relation.

Price discount

Personal selling

Direct marketing

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AMRUT EXPORT LTD. does not go for any advertising activity as such; it has a good

brand image of itself in the market.

4.6 DISRIBUTION NETWORK:-

A distribution channel performs the work of moving goods from producers to consumers. It

overcomes the times, place, possession gaps that separate goods and services from those who

need or want them.

The customers of AMRUT EXPORT LTD. are each person interested in buying diamonds,
also big dealers and jeweler manufacturers are fixed customers etc. AMRUT EXPORT LTD. has
its own office for sales at Surat, Mumbai, Delhi, Hongkong, Dubai, Newyork, London, Shenzen,
Indonesia, Bangkok, Moscow etc. At this office there are some sales executives who contact
directly to the customer and also contact the brokers. There are intermediaries like brokers or
agents. In some case selling is done by personal meeting with buyer but in some cases they have
to send the diamonds to the buyers located at different cities or countries so that they require
some courier agencies. So we can say that AMRUT EXPORT LTD. have multi level distribution
network.

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Production unit

(Finish product)

Head office

Sales office1 Sales office 2 Sales office 3 Sales office 4

Brokers Customers Brokers Customers

Customers Customers

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CHAPTER5 FINANCE DEPARTMENT:-

5.1 ORGANIZATION STRUCTURE:-

OWNER

ACCOUNTANT

CHARTERED
ACCOUNTANT

5.2 DEFINITION OF FINANCIAL MANAGEMENT:-

Financial management is the operational activity of the business that is responsible for
obtaining and effectively utilizing the funds necessary for efficient operation

5.3 FINANCE ACTIVITY:-

Here in the AMRUT EXPORT LTD. Finance department has activity is as follow

Provide finance to purchase department, marketing department and all other department.
Keep record of all important finance related documents and bills.
Provide dally report of income and expenses.
Make arrangement of loan from banks, shroffs, and other financial institutes.
Maintain all the accounts, balance sheet and prepare the annual report.

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Main activity of finance department is to give the salary to the worker according to the
wage system and keep record of the payment.

5.4 ACCOUNTING METHODS:-

AMRUT EXPORT LTD follows the double entry system for accounting book keeping.

Double entry accounting is based on the accounting equation that was developed around 1494 by
Luca pacioli, a Franciscan friar who was a friend and collaboration Leonardo da Vinci. Paciolis
equation is profound in its simplicity.

Assets = liabilities+ equity

Double entry accounting puts this equation to use by making sure that every finance transaction
is recorded with an entry that utilizes at least two accounts and where total amount of money on
the debit side equals the total amount of money of credit side.

5.5 LONG TERM SOURCE OF FINANCE:-

The availability of long term source of finance for AM RUT EXPORT LTD from the following,

Bank
Financial institutes

5.6 SHORT TERM SOURCE OF FINANCE:-

The availability of short term source of finance for AMRUT EXPORT LTD from the following,

Shroffs
Partners
Other business organization

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5.7 TAXES:-

Various taxes is to be paid by AMRUT EXPORT LTD, to the government and others

Vat
Excise
Custom
Income tax
Stamp duty, transfer tax etc.

5.8 COMPUTER SOFTWARE:-

Computer software used by the company is tally ERP-9

Lets know about the tally

Tally .ERP 9 has all the features required for performance business management. You bank and
pay utility bills from home, why not your business transaction call up a stock status report and
print a copy from wherever you are? Tally .ERP has been designed with you in mind. Powerful
connectivity makes information availability with your staff, CA and professionals, round-the-
clock, in any place. Its quick to install and allows incremental implementation a novel
capability.

Tally ERP 9 includes all the business things like, Accounting, Finance, Inventory, Sales,
Purchas, Manufacturing cost, Job costing, Payroll etc.

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5.9 TRADING, P&L A/C FOR THE YEAR ENDED 31ST MARCH OF 2015
& 2016:-

Balance sheet of MARUT EXPORT LTD, on the 31st march of 2015 and 2016.

Particulars As on 31st As on 31st

march, march ,
2015(RS) 2016(RS)
Partners
funds:-
Partners 76,79,29,602 84,47,22,562
capital
Loan funds:-
Secured loans 1,77,13,73,839 1,99,27,95,669
Unsecured 3,87,933 1,77,17,61,772 4,50002 1,99,32,45,671
loans
Current
liabilities &
provision:-
Current 41,07,30,305 49,69,83,669
liabilities
Provisions 9,63,00,000 50,70,30,305 12,61,53,000 62,31,36,669
Total 3,04,67,21,679 3,46,11,04,902
Application
of funds:-
Fixed assets-
Opening 12,02,31,184 16,47,16,722
WDV
+Additions 6,30,25,2365 5,79,83,217
-Deduction -11,04,000 -11,08,593
-depreciation -3,57,18,651 -4,49,08,913
Closing WDV 14,64,33,769 17,66,82,433
investment 4,34,300 5,76,900
Differed tax 35,04,914 37,94,612
assets
Current
assets, loans
& advances:-

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inventories 1,57,14,03,720 1,86,79,02,413

Sundry 1,12,64,82,618 1,30,24,83,669
debtors
Cash & bank 3,34,00,252 2,64,01,254
balance
Other current 5,00,453 4,03,494
assets
Loan & 16,45,61,653 2,89,63,48,696 22,69,04,326 3,42,40,95,106
advances
Total 3,04,67,21,679 3,60,51,49,051

5.10 RATIO ANALYSIS:-

5.10.1 LIQUIDITY RATIO:-

1. Current ratio:-

current ratio= Current assets

Current liability

Year Current assets (RS) Current Current ratio

liability(RS)
2014-15 2,89,63,48,696 41,07,30,305 7.052:1
2015-16 3,42,40,95,106 49,69,83,669 6.890:1

2. Acid test /quick ratio:-

Quick ratio= Quick assets

Quick liability

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Year Quick assets (RS) Quick liability(RS) Quick ratio

2014-15 2,73,12,86,590 2,89,63,48,696 0.943:1
2015-16 3,19,67,87,286 3,42,40,95,106 0.934:1

3. Proprietary ratio:-

Proprietary ratio= Shareholders fund

Total assets

Year Shareholders Total assets(RS) Proprietary ratio

equity(RS)
2014-15 76,79,29,602 3,04,67,21,679 0.252:1
2015-16 84,47,22,562 3,60,51,49,501 0.234:1

4. Debt / equity ratio:-

Debt equity ratio= External equity

Internal equity

Year External Internal equity(RS) Debt / equity ratio

equity(RS)
2014-15 1,77,17,61,772 7,67,92,96,021 2.307:1
2015-16 1,99,32,45,671 84,47,22,562 2.360:1

5. Capital gearing ratio:-

Capital gearing ratio= Fixed interest

Non fixed interest

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Year Fixed interest(RS) Non fixed Capital gearing

interest(RS) ratio
2014-15 1,77,17,61,772 76,79,29,602 2.037:1
2015-16 1,99,32,45,671 84,47,22,562 2.360:1

6. Fixed assets to proprietary fund ratio:-

Fixed assets to proprietary ratio= Fixed assets

Proprietary fund[SHF]

Year Fixed assets(RS) Proprietary Fixed assets to

fund(RS) proprietary fund
2014-15 14,64,33,769 76,79,29,602 0.190:1
2015-16 1,76,68,92,433 84,47,22,562 0.209:1

7. Long term fund to fixed assets ratio:-

Long term fund to fixed assets ratio= Long term fund

Fixed assets

Year Long term fund Fixed assets Long term fund to

fixed assets ratio
2014-15 2,53,96,91,374 14,64,33,769 17.344:1
2015-16 2,83,79,68,233 17,66,82,433 16.063:1

5.10.2 PROFITABILITY RATIO:-

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1. Gross profit ratio:-

gross profit ratio= Gross profit * 100

net sales

Year Gross profit(RS) Net sale(RS) gross profit ratio

2014-15 32,99,87,255 4,15,87,24,256 7.93%
2015-16 3,44,01,91,899 4,53,30,09,440 75.89%

2. Operating ratio:-

Operating ratio= Total operating expenses * 100

Net sales

Year Operating Net sales(RS) Operating ratio

expenses(RS)
2014-15 3,85,80,97,930 4,15,87,24,256 92.77%
2015-16 0 4,53,30,09,440 0%

3. Net profit ratio:-

Net profit ratio= Net profit * 100

Net sales

Year Net profit(RS) Net sales(RS) Net profit ratio

2014-15 22,35,72,051 4,15,87,24,256 5.38%
2015-16 69,61,38,110 4,53,30,09,440 15.36%

4.Return on capital employed:-

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Return on capital employed= profit after tax + interest * 100

Total capital employed

Year PAT + Total capital Return on capital

interest(RS) employed(RS) employed
2014-15 13,81,47,965 2,53,96,91,374 5.44%
2015-16 43,09,56,603 2,83,79,68,233 15.19%

5. Return on shareholders fund:-

Return on shareholders fund= profit after tax * 100

Shareholders fund

Year PAT(RS) SHF(RS) Return on SHF

2014-15 13,81,47,965 1,77,17,61,772 7.80%
2015-16 43,09,56,603 1,99,32,45,671 21.62%

5.10.3 EFFICIENCY RATIO:-

1. Stock turnover ratio:-

Stock turnover ratio= cost of good sales

Avg. inventory

Year Cogs (RS) Avg. Stock turnover

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stock[inventory] ratio
(RS)
2014-15 3,82,87,37,001 1,57,14,03,720 2.44
2015-16 3,83,68,71,330 1,86,79,02,413 2.054

2. Stock velocity:-

Stock velocity= 365 Days or 12 Months

Stock turnover ratio

Year Days / Months Stock turnover Stock velocity

ratio
2014-15 365 2.44 149.59 Days
2015-16 365 2.054 177.70 Days

3. Debtors turnover ratio:-

Debtors turnover ratio= net credit sales

Avg. debtors

Year Net credit Avg . debtors (RS) Debtors turnover

sales(RS) ratio
2014-15 4,15,87,24,256 1,12,64,82,618 3.692
2015-16 4,53,30,09,440 1,30,24,83,619 3.480

4. Debtors velocity:-

Debtor velocity= 365 Days or 12 Months

Debtor turnover ratio

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Year Days Debtor turnover Debtor velocity

ratio
2014-15 365 3.692 98.86 Days
2015-16 365 3.480 104.89 Days

5. Creditors turnover ratio:-

Creditors turnover ratio= Net credit purchase

Avg. Creditors

Year Net credit purchase Avg. creditors(RS) Creditors turnover

(RS) ratio
2014-15 3,82,87,37,001 41,07,30,305 9.322
2015-16 83,64,48,329 49,69,83,669 1.683

6. Creditors velocity:-

Creditors velocity= 365 Days or 12 Months

Creditors turnover ratio

Year Days Creditors turnover Creditors velocity

ratio
2014-15 365 9.322 39.15 Days
2015-16 365 1.683 216.87 Days

As opening inventory is not given so we have taken closing as average inventors.

As opening debtors is not given so we have taken closing as average debtors.

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5.11 TREND ANALYSIS & COMMON SIZE STATEMENT:-

Particular Trend Common Common

size size
2014-15 2015-16 2014-15 2015-16
Partners
fund
Partners 90.91% 24.41% 25.21%
capital
Loan funds
Secure loans 88.89% 57.58% 58.14%
Unsecure 86.21% 88.89% 0.01% 57.59% 0.01% 58.15%
loans
Current
liabilities &
provision
Current 82.64% 14.36% 13.48%
liability
Provision 76.34% 81.37% 3.64% 18.00% 3.16% 16.64%

Total 88.03% 100.00% 100.00%

Application
of funds
Fixed assets
Opening 72.99% 4.76% 3.95%
WDV
+ Additions 108.70% 1.68% 2.07%
-Deduction 99.59% 0.03% 0.04%
Depreciations 79.54% 1.30% 1.17%

Closing 82.88% 5.10% 4.81%

WDV

Investment 75.28% 0.0167% 0.01%

Differed tax 92.37% 0.11% 0.12%

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assets

Current
assets, loans
& advances
Inventories 84.13% 53.97% 51.58%
Sundry 86.49% 37.63% 36.97%
debtors
Cash & bank 126.51% 0.76% 1.10%
balances
Other current 124.03% 0.01% 0.02%
assets
Loans & 72.52% 84.59% 6.56% 98.93% 5.40% 95.06%
advances

Total 84.51% 104.16% 100.00%

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CHAPTERS 6 PURCHASE DEPARTMENT

6.1 ORGANIZATION STRUCTURE:-

0WNER

PURCHASE
STORE MANAGER

PURCHASE
EXECUTIVES

6.2 PURPOSE:-

To lay down the procedure for procuring / purchasing of items from domestic supplier as well as
import. Scope procurement item like rough diamonds, whitener, acetone, oil, machines,
equipment etc.

Purchase department deals with all purchase of the organization, it has two purchase
departments:-

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6.3 PURCHASE PROCEDURE:-

There are 2 types of purchases: import purchase and Local purchase.

The various departments as per their requirements inform the purchase in charge about the
quantity and quality of Rough diamonds required. The purchase in charge then forwards the
details to the administrative office from where the negotiation with the suppliers is done and the
order is placed for the Rough diamonds.

Purchase request to purchase department

Sending the inquiry of product to different suppliers including with price, quality,

Items and terms of payment etc

Asking quotation from different suppliers. In quotation, they mentioned price rate,

Quality level, delivery time, payment term etc

Then after makes a comparison between price level and delivery date. Select the

Supplier, which is giving rough diamonds at low price rate and earliest delivery

Date

Giving purchasing order

Make the payment

Material inward.

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6.4 DOCUMENTS OF PURCHASING:-

Application form

Performa invoice of supplier

License of import

6.5 SUPPLIER SELECTION:-

The extent control on suppliers and their product/services is the dependent on relative
importance of the product/services on this company operation of supplier are selected on the
basis of:-

1. Qualification/past experience of suppliers information is available respect to records of

their qualification and subsequent performance.
2. Suppliers can be re-evaluated and other disqualified for non-performance other
justifiable reasons, during a manager review of material specification are referred to in
enquiries and purchase orders.
3. Emergency purchase can be authorized by managing director appropriate adequate
information about the product is provided in the purchase order or other documents.

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BIBLIOGRAPHY

B.S.S (2008-09), Management Accounting . Ahmedabad : B.S Shah Prakashan.

C.B.G Human Resource Management.

Philip. K. Marketing Management

Web Sites

https://www.merriam-webster.com/dictionary/diamond
https://www.brilliance.com/education/diamonds/history
http://www.indianmirror.com/indian-industries/diamond.html
http://www.studiosoft.it/jewelryworlds10.htm
http://www.lumeradiamonds.com/diamond-education/marquise-diamond
http://www.lumeradiamonds.com/diamond-education/heart-shaped-diamond
http://www.lumeradiamonds.com/diamond-education/princess-cut-diamond
http://www.lumeradiamonds.com/diamond-education/round-diamonds
https://www.google.co.in/search?q=attendance+punching+machine&source
=lnms&tbm=isch&sa=X&ved=0ahUKEwjK5czSldTUAhUHO48KHY6gB
GgQ_AUICigB&biw=1242&bih=575#imgrc=irFHJagASfstbM:
http://4cs.gia.edu/en-us/diamond-carat-weight/
http://www.lumeradiamonds.com/diamond-education/diamond-cut
http://4cs.gia.edu/en-us/diamond-clarity/
https://en.wikipedia.org/wiki/Diamond_color
http://www.tallysolutions.com/website/html/tallyerp9/series-b-neweditions-
diamondedition-unlimitedmultiuser.php

SHRI S.V PATEL COLLEGE OF C.S & B.M Page 69