project report on dhanhar exim by sunny gandhi and sunil ambolikar

1
A
Report
On
Summer Training at
“Dhanhar Exim Pvt Ltd”
From: 29th April, 2009 to 15th June,2009

In The Partial Fulfillment Of
BBA Program.
Submitted By:
36-Sani Gandhi
7- Sunil Ambolikar
S.Y. BBA
DIV – I

Submitted To :

BRCM COLLEGE OF BUSINESS
ADMINISTRATION, SURAT

Academic Year-2012-13

BRCM COLLEGE OF BUSINESS ADMINISTRATION, SURAT

2
Declaration
We hereby declare that the project report Entitled A Study on
“Dhanhar Exim Pvt Ltd.” is result of our own training work carried out during AprilJune 2013 and has not been previously submitted to any other university or institution for
any other examination and for any other purpose by any other person.

We will not use this project report in future to use a submission
to any other university or institution or any publisher without written permission of our
guide.

We also promise not to allow any other person to Copy or
publish any part of this report in any form.

If We are found/caught as defaulter of above declaration, I
Know that my present or future submission may become in valid and college has the
right to this thesis.
Name of Student
Sani B Gandhi
Sunil R Ambolikar

Date
Place


3
ACKNOWLEDGEMENT
We would like to thanks to Veer Narmad South Gujarat University to
include this summer training in the curricular of B.B.A. program that made us gain the
practical knowledge in the corporate business world.
We are honored to Mr.Jayesh Desai, the director of B.R.C.M. college of
Business administration and our all faculty members who always offered us useful
suggestions on the project.
On the completion of our project, we would like to express my sincere
thanks to all those who have guided, advised & supported us during my project work at
Dhanhar Exim Pvt ltd.
We take this opportunity to depict our sincere and hearty indebtedness to
the management of Dhanhar Exim Pvt Ltd. for giving us an opportunity to serve in esteem
organization.
We thankful to Mr. Hitesh Vankawala & Mr. Sandip Vankawala(Head of
Marketing Department and Finance department), Mr. Jignesh Vankawala and Mr. Nilesh
Vankawala (Head of production and quality control department), Mr. Dhansukh Vankawala
& mr. Jagdish Vankawala(Head of HR Department) for giving us the precious opportunity to
work at Dhanhar Exim Pvt ltd. And for our project guide. They gave us the detailed
information about their system and spend their valuable time for us.
At last, we thank all our friends and members of Dhanhar Exim Pvt Ltd for
their co-operation and passion and encouraged us to carry out the project and try our best.
Your Sincerely
Sani B. Gandhi
Sunil R. Ambolikar
Date
Place


4

No.

Chapter

Page No.

1

Introduction

08

2

Marketing & Sales functions

15

3

Production Management

49

4

Finance & Accounts

78

5

Human Resource Management

101

6

Experience and Conclusions

140

7

Bibliography

141

8

Annexure

142


5
CHAPTER 1: INTRODUCTION
1) Industry Details
2) Company Details
3) History of organization
4) Location of offices, branches and factories
5) Detail of promoters & owners
6) Performance highlight of Dhanhar Exim Pvt ltd
7) Organization structure of the company
8) Future plans of organization
CHAPTER 2: MARKETING & SALES FUNCTION
1)

Detailed organization structure of marketing department

2)

Types and classification of products & their sales volume

3)

Details of competitors

4)

Unique feature of various products of company

5)

Customer segmentation & targets markets

6)

Distribution net-work

7)

Sales procedure

8)

Study of how customer orders are processed

9)

Documents related with sales

10) Comparison of 4Ps of various products of organization With competitors
11) Study of generic level competition
12) Pricing polices
13) Promotional and advertising polices
14) Taxes applicable on sale activity
15) Study of control system & reporting system designed for Sales employees working in
field
16) Different reports generated in Marketing Management


6
CHAPTER 3: PRODUCTION MANAGEMENT
1)

Detailed organization structure of production department

2)

How production plan is prepared from sales plan

3)

How production plan is converted in material requirement Plan & ultimately in
purchase plan

4)

Analysis of plant location considering various factors

5)

Plant lay-out of entire factory showing positions of various departments buildings

6)

Internal plant lay-out of main production departments

7)

Types & classes of material handling equipments

8)

Inventory control system

9)

Inventory valuation method

10) study of material codification system
11) Different records kept in store
12) Material receipt procedure
13) Material issue procedure
14) Documents related with material issue & receipt
15) Purchase procedure
16) Documents of purchasing
17) Maintenance planning system
18) Records related to production operations at different Machines & with different
department
19) Quality control system
20) Quality control guidelines of raw materials & finished Products
21) In process quality control guidelines
22) Documents related to quality control
23) Different reports generated in production department


7
CHAPTER 4: FINANCIAL MANAGEMENT & ACCOUNTS
1.

Revenue budgeting

2.

Capital budgeting

3.

Costing method

4.

Cost structure

5.

Costing sheets & classification of costs in different Categories

6.

Working capital management

7.

Preparation & analysis of funds flow statement

8.

Internal audit polices financial control system

9.

Accounting polices

10. Methods to calculate depreciation
11. P&L account & balance sheet by ratio analysis, Common sized statement
CHAPTER 5: HUMAN RESOURCE MANAGEMENT
1)

Study of organization structure to decide what type of Organization structure is
designed for company

2)

Study of basis departmentation in each department

3)

Human Resource planning process

4)

Recruitment

5)

Selection process

6)

Documents related to recruitment & selection

7)

Sources of recruitment

8)

Job description & job specification for various positions

9)

Performance appraisal process and documents

10) Promotion, demotion & increment policy
11) Different welfare activities
12) Employment records kept
13) Training & development
14) Induction training
15) How training needs are identified for existing employees?
16) Lab our relation & activities of trade union
17) Wage & salary administration &Incentive & motivation system

8


9
Industry details
History of Masala industry


From time immemorial, India has been considered as the “spice bowl of the world”. The
history of Indian spices is almost as old as the “human civilization of spices”



We all have read in school history books that voyagers from around the world have
travelled to India in search for the spices. But the history of our spices more than what is
recorded, more than 7000 years old. Even before Greece and Rome were discovered, the
sea voyagers were sailing with Indian spices, perfumes and textiles to their homelands.



Ancient cultures and dynasties were spending major portion of their treasury on Indian
spices, silks, brocades, Dhaka Muslin and cloth of gold, etc. It is believed that the
Parthian wars were being fought by Rome largely to keep open the trade route to India.



Vasco Da Gama set sail southwards with four ships from Port of Lisbon in Portugal at the
start of 14th century. His aim was to search for a new route to India and rest of Asia. The
journey that lasted 2 long years, took Da Gama and his crew on 39000 kilometers round
trip, around the continent of Africa to India and then back to Lisbon. Only 2 out of the 4
ships made it back home, but they brought a cargo of spices and other products worth 60
times the cost of the said voyage.



It is also said that Indian spices and her renowned products were the main temptations for
crusades and expeditions to the East. The cost of the spices today is menial, but this was
not always the story. Indian spices were once a royal luxury and that men were willing to
risk their lives in quest of them. Though it were the Dark Ages, but there were rich
people who had gold to exchange for pepper and cinnamon.



The spices of the East were valuable in those times, during these Middle Ages, a pound
of ginger was worth a sheep, a pound of mace worth three sheep or half a cow. Pepper,
the most valuable spice of all, was counted out in individual peppercorns, and a sack of
pepper was said to be worth a man`s life.



By the year 1000 A.D. Arabians had conquered the Indus valley, what is now India. They
brought the cumin and coriander that mixed with Indian pepper, ginger and turmeric
make up the base of so many South Asian dishes. In India, Arabian traders got the rare
and exotic spices of the Far East from local spice merchants. India had spent the previous

10
two millennia spreading its culture to the Spice Islands of the east. Such was the
importance of spices those days.


Broadly, there are two main subdivisions of spices one being the major spices and the
other is minor spices. For example the spices like pepper, cardamom, ginger, turmeric,
chilies etc., comes under major category. The important minor spices grown in India are
ajwain, aniseed, caraway, celery, coriander, cumin, dill seed, fennel, fenugreek, garlic,
onion, saffron, vanilla etc.

Company details


DHANHAR MASALA BHANDAR Pvt. Ltd. introduces itself as a leading manufacturer
and exporter of Indian particularly Masala‟s, Hing‟s and others. Established on 1966, the
company has always followed the philosophy of providing quality products and services
to our ever increasing clientele. Today DHANHAR has become a name synonymous to
Indian spices, its tastes and aroma; and has become a name of repute in spices and hing
industry.



The name “DHANAHAR” itself connotes “MASALA”



DHANHAR MASALA starting in the home place and its first product is “hing”.

Meaning of the Dhanhar name:
DHAN means “LAXMI”
HAR means “MAHADEV”


DHANHAR name comes of the two dynamic people, first is DHANSUKHLAL and
second is HARKISHANLAL.



DHAN comes of the DHANSUKHLAL &



HAR comes of the HARKISHNLAL

History of the organization – an Overview


Thirty Eight year back, two dynamic entrepreneurs, Mr. Dhansukh Chhabildas
Vankawala and Mr. Jagdishchandra Harkishandas Vankawala; pioneers in spices / hing
industry and connoisseurs of Indian tastes, joined hands together to start Dhanhar Masala;
supported by Mr. Bipinchand Chhabildas Vankawala; a mechanical engineer by

11
profession. The firm started as a gruh udyog, manufacturing hing, graduated in terms of
size and volume; obviously due to healthy response from the market. In the 1972, a
manufacturing plant was established in Surat. The company started manufacturing spices
in 1976 with a single product “Dal Shak Masala” and has consistently climbed up the
growth ladder since. The company at present is manufacturing more than 30 different
spices. For bulk orders, we can customize the products according to your requirements.


In 1990, a major milestone was achieved when the company got “AGMARK”
certification for its Hing. In 1995, same certification was accorded to Spices. When
Company started, it goes in the loss, but after some time loss converted in the big and big
profit. In the 1977 the price of the “Dal Shak” masala was just 7 RS. In 5 Kilo. So, it‟s
very chipper. In the 1988 Hing‟s packaging stared and published name of the
“BHANDHANI HING” and also developed the brand name of Dhanhar Masala. All the
production by manually, no machine work of this time. On this time means, 1988; the
staff was just 10 people in Dhanhar Masala and now the staff is about 62 people in
Dhanhar Masala. Manually work‟s time period is 1988 to 1996, means about 8 year.

Location of its office, branch and factories
Location of manufacturing unit
167,Ashwinikumar road, Nr, shamshan
bhumi ,Fulpada, Surat, Gujarat, India

Location of its administrative office

5/354 Dhanhar house, Bhajiwadi pole,
Bhagal char rasta, Bhagal, Surat –
395003 Gujarat, India.

Details of promoters and owners:


Under the able guidance of the promoters, the company has reached to a position, par
excellence. Mr. Hitesh Vankawala (B.Com. L.L.B.) And Mr. Jignesh Vankawala
(B.Com), able sons of Mr. Dhansukhbhai joined business in 1992 and 1998 respectively.

12
Also the able sons of Mr. Jagdishchandra, Mr. Sandip Vankawala (B.Com.) joined the
company in 1992 and 1998 respectively. Mr. Hitesh and Mr. Sandip are looking after
Sales Department whereas Mr. Jignesh and Mr. Nilesh are looking after Production and
Quality Control Departments.


The new entrants are following their fathers‟ footsteps and have the enough dynamism
and acumen to lead the company to new heights.



The company boasts of modern machinery and high technology to attain the quality
without losing the traditional aroma of Indian spices. Our products are well known for
their high purity.



The reliability, flexibility, competitive pricing and prompt service have been the pillars of
the company‟s reputation and success.

Performance highlight of Dhanhar Exim Pvt ltd:


Company has more success in Masala industries and has won many awards in this field.



The awards are listed as following
Name of the award

Year of winning

1. UDHYOG

2000

2. VYAPAR

2002

3. UDHYOG

2003

4. MERA BRAND

2004

5. GRAHAK SURAKSHA SAMITI CERTIFICATE


The company has created the image of a good supplier of Masala in south Gujarat
market.



Dhanhar Masala is also known for its “chip rate and best quality.


13
Organizational structure of Dhanhar

Dhanhar Exim Pvt
Ltd.

General manager

Head of
marketing
department

Head of
production
department

Head of finance
department

Head of human
resourcces
department

Mr. Jignesh

Mr. Hitesh

Mr. Hitesh

Mr.Sandip

production
manager

Agent

Accountant

assistant

Assistant

clerk

cashier

peon

workers

Peon

clerk


14
Organizational profile of Dhanhar Exim Pvt ltd
Year of establishment

1964

Legal status of the firm

Private Ltd. Registered under Indian
companies act 1956

Income tax registration no.

AADCD2614D

Central sales tax no.

24720601590C

Value added tax registration no.

24220601590V

Import Export code

5210003132

Nature of Business

Manufacturer, exporter, and wholesaler

Major markets

Indian subcontinent

Turnover of finished goods

4 times/ year

Future plans of the Dhanhar Exim Pvt ltd.


To establish a strong market place in the whole Gujarat market. To make reputation
in market.



They are thinking to expand product line of flour which is including water chestnut
flour and now thinking to make a flour for locha and khaman flour.



They are planning for installing new machines for packaging which will help them in
cheaper packaging and faster.



They are about to make more Masala for example bikaneri papad Masala, chicken
gravy Masala, Mamada Masala(non vegetarian category)


15


16
1. Organization Structure of marketing department
Marketing
Department
Mr. Hitesh
(Head 1)

Mr. Sandeep
(Head 2)
Agent

clerk

peon

o Here at Dhanhar marketing department is being managed by two heads Mr. Hitesh
and Mr. sandeep respectively
o Agent and sales person works under two heads
o Clerk is at 3rd level in the hierarchy
o Peon is working under the head of a clerk.

2. Types and classification of Products of Dhanhar
o

There are many Masala product of DHANHAR MASALA industry.

o

Here at Dhanhar they have mainly Three product line Which are below here:
1. Spices
2. Flour
3. Chick peaces

o

All the product categories are shown in the following table.


17
Products
A. Spices
Basic spices

Value added spices

1. Asafetida Powder

2. Punjabi Gravy Masala

3. Kashmiri Chilli Powder

4. Pomegranate Powder

5. Black Pepper Powder

6. Rajwadi Garam Masala

7. White Pepper Powder

8. Biryani Pulav Masala

9. Coriander Powder

10. Sandwich Masala

11. Chili Powder

12. Tandoori Chicken Masala

13. Chiwada Masala

14. Tea Masala

15. Dry Ginger Powder

16. Chicken Masala

17. Dry Mango Powder

18. Undhiyu Masala

19. Red Chili Powder

20. Vada Pav Masala

21. Turmeric Powder

22. Pickle Masala

23. Ginger Powder

24. Patra Masala

25. Jeera Powder

26. Kesar Milk Masala

27. Hing Powder

28. Jaljira Powder

29. Kashmiri Chilli Masala

30. Kasuri Methi
31. Kitchen King Masala

Value added spices
32. Chhole Chana Masala

33. Meat Masala

34. Dabeli Masala

35. Mutton Masala

36. Garam Masala Powder

37. Nimbu Soda Masala

38. Egg Curry Masala

39. Panipuri Masala

40. Fish Masala

41. Pav Bhaji Masala

42. Butter Milk Masala

43. Fruit Chaat Masala

B. Water Chestnut flour
C. Chick peas
D. Mahendi Powders


Here company do not have sales volume for individual products


18
3. Details of Major competitors of Dhanhar Exim Pvt ltd:
1. Ramdev Masala



India, the Queen of Spices, has always attracted the world with her exotic masalas. In
fact, the connection goes back many centuries. Ramdev has preserved the Indian values
in all its products ever since it started as a small unit in 1965, in Ahmadabad, India. A
small step became a giant leap in no time. But there was a binding force, a commitment
that helped Ramdev keep its promise of purity and freshness in its products for all these
years. Ramdev‟s immense belief in the philosophy of „reaching a customer‟s heart
through quality‟ has enabled it to spread the rich Indian heritage to millions of homes all
over the globe.

2. M.D.H Masala



Mahashian Di Hatti Limited is an Indian manufacturer, distributor and exporter of ground
spices and spice mixtures under the brand name MDH. It specializes in several unique
traditional blends of spices suitable for different recipes. The company was founded in

19
1919 by Mahashay Chuni Lal as a small shop in Sialkot. It has since grown in popularity
all over India, and exports its products to several countries. It is associated with
Mahashay Chuni Lal Charitable Trust. The MDH brand name is very well known
throughout India

3. Everest Masala



Everest Spices is an Indian manufacturer, distributor and exporter of ground spices and
spice mixtures under the brand name Everest. It is India‟s largest spices brand based in
Mumbai. More than 20 million households use Everest spices regularly. The brand is
stocked by 400,000 outlets in more than 1000 towns across India. Everest is a major
exporter to the US, the Middle East, Singapore, Australia, New Zealand, East Africa and
other countries. More than 3.705 billion packs of Everest sold each year. There more than
42 blends under the Everest brand name.

4. Catch Masala



Catch Spices is India‟s foremost spices brand known for its matchless product quality and
innovative approach. Catch spices are ground using the unique state-of-the-art Low
Temperature Grinding (LTG) technology, which prevents the evaporation of volatile &

20
delicate oils from spices. Catch Spices thus retain the original aroma and wholesome
flavor of authentic spices. The complete assortment comprises of a variety of salt and
pepper sprinklers and a diverse range of whole, ground and blended spices. Catch Spices
are packed in food grade metal-lined cartons, flexible laminates and convenient
composite cans available in a variety of pack sizes

5. S.k. Masala



Founder Mrs. Kulusumben K. Panjwani has started the business 45 years ago in Surat
city, Gujarat. Her elder son Mr. S. K. Panjwani having very good tasting skills has
shouldered her responsibility on product development & came up with best blends. Few
famous spices from the house of S.K. Masala are " Kashmiri Chilli powder “, " Garam
Masala " , " Chicken Masala " , " Milk Masala " & " Pav Bhaji Masala ".Younger son Mr.
B. K. Panjwani who is a Chairman of Retail Trade in Chamber of Commerce in South
Gujarat from last 7 years & Member of Productivity Council of India got into retailing &
expanded the business across Gujarat & Saurastra .Third generation is also emerging as
back born of S. K. Masala. They have started atomization process at plant & expanded
the business internationally in markets like UK & SA.

6. Nilon’s Masala


21


Nilon‟s Enterprises Private Limited was founded way back in 1962 by Shri Suresh B.
Sanghavi as a cottage industry. From a humble beginning, Nilon‟s has today become the
largest producer of Pickles, Tooty-Fruity and Roasted Vermicelli in India. Managed by a
professional and dynamic team, Nilon‟s is now among the fastest growing processed food
company in India.

7. Badshah Masala



In the span of 4 decades, Jhaveri Industries has garnered international acceptance and its
own brand equity in the world spice arena. Under its brand name Badshah, Jhaveri
Industries has been formulating new flavours and aromas through its innovative research
techniques.



Today, Badshah is synonymous with aromatic fervor and genuine quality. Winner of
many prestigious awards, including the "Mera Brand Award", Badshah is the first choice
of households across the Indian subcontinent and is fast emerging as a global player.
With a third of our sales accounting in exports, Badshah has carved a niche of its own in
the international spice market.



The manufacturing unit located at Umergaon, Gujarat has been mandibly supported by
our administration office in Mumbai. Our unique research methodology helps us
understand the latest food and spice preferences, keeping in mind the geographical
location, religion and traditional cuisines of any particular region.

8. Gajanand Masala


22


Gajanand Foods Pvt. Ltd., Ahmedabad, was founded and established by Shree
Natvarbhai K. Patel, in the year 1982, with a small unit. At present our company has
grown almost five times than we started with, that is only due to our quality, proper
customer care and our efforts to reach the smallest customer in our city Ahmedabad, our
State Gujarat, our Country India and now in across the globe! Our aim to reach millions
of kitchen can be achieved through customer's love, trust and proper feedback for our
products.



Taking forward the vision of their father, Mr. Jayesh Patel and Mr. Samir Patel have
implemented new ideas and expanded the product range by introducing more and more
innovative products. With the uncompromised motto of customer satisfaction, the
company has defined its business ethics and has crafted its quality policies. This has
eventually made the company a front-runner and a reliable source of quality in the
national as well as global market.

9. Other : Gondal Masala, Vijay Masala, Suhana spices and other local Masala makers.
4. Unique feature of various products
1. Water Chestnut Flour


Dhanhar is the one of the most celebrated Water Chestnut Flour (Singoda Atta &
Rajgara Atta) Manufacturers and Suppliers from Gujarat. Their Water Chestnut Flour is
widely used to prepare different Indian dishes. The hygienic processing and tamper-proof
packing of their Water Chestnut Flour has made it ultimate hit among our clients. The
wide demand of their Water Chestnut Flour testifies our claims of being the prime Water
Chestnut Flour manufacturers and suppliers from Surat, Gujarat.


23
Special feature


Made from natural ingredients



Made as per traditional standards which offer premium taste



Offers prefect flavor



Amazing aroma



Freshness assurance

2. Mahendi Powder
o Mehendi Powder, manufactured by Dhanhar, is of the best quality that is used for hand
decoration, for hair coloring and in various ceremonies. their Mehendi Powder is of the
finest quality and has also gained appreciation in other countries. We manufacture pure
Mehendi Powder without chemical and it is instantly used for hair coloring and
conditioning.
Uses


For body & hand decoration



For hair color &conditioning



For hand & body design use

Special Features


100% pure form contains no herbs or chemical



Can be used for hair conditioning & hair color



Perfect choice for marriage and other festive occasion



Colour will last for several days

3. Chickpeas
o The company is chiefly engaged in the manufacturing and supplying of Chickpeas all
across the country. The Chickpeas, provided by them, are known for their excellent taste
and high quality. Cleaned and processed by using the latest techniques, Dhanhar
Chickpeas are highly demanded amidst the widespread clients.


24

Special features


Perfect flavor



Amazing aroma



Freshness assurance



Properly cleaned

4. All other spices
o The company is a prime Spices Manufacturer and Supplier in India and Spices are provided in a
wide variety, which is processed by using the premium ingredients. The assortment of Spices
comprises of Asafetida Powder, Biryani Pulav Masala, Butter Milk Masala, Chhole Chana
Masala, Chicken Masala, Chili Powder, Chiwada Masala, Coriander Powder, Dabeli Masala, Dry
Ginger Powder, Dry Mango Powder, Egg Curry Masala and other 31 spices.

Special features


available in many packaging like 50gm, 100gm, 200gm,500gm, 1 kg, Bulk Packing
starting from 5 rupees.



Freshness is being assurance and properly cleaned.



Made from natural ingredients



Tamper proof packing



Hygienic processing


25
All other spices are being presented in the following with their special features
Asafetida

Biryani pulav Masala

Special features

Special features



Good taste



Unmatched Taste



Hygienic processing



100% natural ingredients



Tamperproof packaging



Hygienic processing



Pure natural ingredients



Tamper proof packagings



Good scent

Butter milk Masala

Praised For


Give health benefits



Appetizing taste



Made from safe and
natural products




Chiwda Masala

Benefits

Fish Masala

Acknowledged For

Praised For :







Add flavor to food



Helps in digestion



Natural relief from gas



Stomach upset problem



Lower the cholesterol



Different sizes

level




standards which offer



Hygienic processing

premium taste

Widely used in
preparation of chivda

Chili powder

ingredients


Made as per traditional



Coriander powder

Special features


Made from natural

Made from handpicked

Praised For




Amazing aroma



Freshness assurance

Fruit chaat Masala

excellent quality chilies


Hygienically processed



Perfectly grinded



Matchless freshness



Made from natural

Special feature

ingredients



Mouth watering taste






Made from natural



Special feature

ingredients

premium taste

Dry mango powder






Amazing aroma

Tamperproof packing


26


Freshness assurance



Completely fresh

o slightly sour and tangy
taste being used as an

Garam Masala

acid flavoring agent not
loosing color and flavor
for longtime bring used

Ginger Masala
Acknowledged For :
Known For
o

for cooking and medical
purposes

Made as per the traditional
art of spices



o

o rich source of vitamin
a,e and selenium protect

Long shelf life

o

Safe and nutritious

o

Completely natural

sponge puddings to give a

ingredients

warm sweet flavor

against heart disease
and other ailments high
in iron high in

cooking



Kashmiri chilly Masala

carbohydrates helpful in Features
decreasing acidity and





Have an Aromatic odor



Used in tandoori and other
barbecue marinades

Adds flavor to food



Long shelf life



Known For

Essential ingredient in



Good soothing agent



Used in pickles

Benefits


Ginger may also decrease
joint pain from arthritis



Prevent against diarrhea



Prevent against nausea
Folk remedy for cough
and cold



Lower cholesterol

Used in preparing
ayurvedic medicines



Rich source of vitamin E

Kesari milk Masala

Rich source of vitamin A



Considered as stimulant

your tea

Prevent from rheumatic
disorders



Medicinal Uses

Add ginger powder to



Benefits


all mixed spices



Free from additive
Taste enhancer

Prepare a delightful

with seasonal fruits

Natural and fresh



Jeera powder




poor digestion.

Add to cake, biscuits and

ginger punch blending it

antioxidant low in



Use the ginger powder in

Special feature


27


As Carminative



Stomach astringent



Hing Masala

Useful in diarrhea and



Mainly used in



Hygienic processing



Tamper proof packaging

ingredients in its

100% natural ingredients



natural products used as

Unmatched Taste

veterinary medicines

preparation tamper proof
packing


Meat Masala

for skin.
Kitchen king Masala

made from natural
ingredients made as per

Nimbu soda Masala

traditional standards

Acknowledged For :

premium taste offers
prefect flavor amazing
aroma freshness assurance



Unmatched taste



Praised For :

completely fresh perfectly
grinded

Made from natural and
rare herbs

Made from natural

Pomegranate Powder

ingredients
premium taste





Amazing aroma



Freshness assurance

mesmerizing taste made
from 100% natural spices

health problems






Eases stomach related

Mutton Masala



Special features

Many medicinal qualities





Act as a coolant helps in
improving appetite good

Specialties


giving health benefits
appetizing taste safe and

Special feature

dyspepsia problems




Benefits

Pani puri Masala
Appreciated For :





Made from natural
ingredients



High in vitamin C



High in potassium



Tamperproof packing



Good source of the B



Completely fresh

vitamin


Contains pantothenic


28
acid,potassium and

Appreciated For :




Unmatched freshness






Premium quality



Rich source of fiber and

Reducing heart disease



Purity Assurance



Hygienic tamper proof
packing

risk factors




Perseverance of natural
essence of turmeric

Known For


Samnhar Masala

Made from natural

Made from complete
natural ingredients

pomegranate seeds

Special features



Special features

low in calories

Mesmerizing taste



Turmeric powders

antioxidant polyphones

Rajwadi Masala


Tea Masala
Acknowledged For :

Made from natural


ingredients

premium taste



Purity Assurance



Hygienic tamper proof








Amazing aroma

premium taste





Freshness assurance



Amazing aroma



Freshness assurance






packing

essence of turmeric
White paper powder

Vada pav Masala



Made from natural white
pepper



Made from complete
natural ingredients

Known for


Appreciated For :

Perseverance of natural


Undhiyu Masala
Praised For :







Made from natural

premium taste



Give health benefits

ingredients



Offers perfect flavor



Appetizing taste



Tamperproof packing



Amazing aroma



Made from safe and



Completely fresh



Freshness assurance

natural products




29
5. Customer segmentation and target market
Segments and respective target market
1. Vegetarian and non vegetarian food eaters


In this segment vegetarian and non vegetarian both segment are targeted.



For Non vegetarian , company needs fish Masala ,chicken Masala, Mutton Masala,
Egg curry Masala, Meat Masala.



For Vegetarian they make near about 30 Masala which are Garam Masala ,kitchen
king Masala, tea Masala,etc.
Segment

Target market

Vegetarian

Vegetarian

Non vegetarian

Non vegetarian

2. Segment based on income ( very poor, poor, average, higher middleclass and rich)


In this segment 3 segments are targeted which are poor , average, higher middleclass
groups.



For poor and average customers they make small packages starting from 5 Rs onwards



For High Income middle class Groups they make Packages of big size and they also
target high quality Basmati Rice
Segment

Target market



Very Poor



Poor

Products offered



Poor

Packages start from 5 to
10 Rs



Average



Average

Packages of 50 grm,100
grm,200 gram, 500 gram
and 1 kg



Higher Middle Class



Higher Middle

All Masala

Class


Rich


30
3. Segment based on type of market
a. Customer market ( direct customers)
b. Industrial market ( hotels , restaurants, tea stoles. Food selling vendors)


Here Both segments are targeted



For customer market they target wholesalers, retailers, and Agents.



For Industrial Markets they target mainly Hotels, restaurants and food vendors
because these customers are selling addible items which require large no. of Masala
and company can gain a huge profit.

4. Segment based on habit of eating/ test and preferences in which spicy food eaters and
people love to have Masala in drinks etc.

6. Channel of distribution for Dhanhar
Meaning of Channels of distribution: 

According to American Marketing Association, “A channel of distribution, or
marketing channel, is the structure of intra – company organization units and extra –
company agents and dealers, wholesale and retail through which a commodity, product or
service is marketed.”



Marketing channel may be defined as, “A pathway composed of intermediaries, who
perform such function as needed to ensure smooth flow of goods and services from the
manufacturing ends to the consuming ends in order to achieve marketing of the produce
of a company.”

Channel of distribution in Dhanhar Masala


The producer and the final customer are part of every channel. We will use the number of
intermediate levels to designate the length of channel. There are many type of distribution
channel in industry. There are following:
1. Zero-level channel


31
2. One level channel
3. Two level channel
4. Three level channel
A. Three level of distribution channel (full distribution channel)

Manufacturer
(Dhanhar masala)

CNF (Super
Stockiest)

Wholesaler/ Agent

Retailer( small shops,
departmental stores
and hotels)

Consumer



Dhanhar Masala Pvt. Ltd. Use three level of distribution channel in general cases
where they sale from their outlet to the super stockiest which in turn sales products to the
agents and agent sale it to the big and small wholesalers or retailers and it goes further to
retailer and finally to the customers.

B. Zero level of distribution channel (full distribution channel)

Dhanhar masala's outlay at Bhagal

customer purchasing directly


32


Dhanhar Masala Pvt. Ltd. use to zero level channels in rare case here if known
customer is asking for a small purchase then only they sale directly to the direct
customer.

C. One level of distribution channel (full distribution channel)
retailer (small
shops, departmental
stores or some
hotels)

Dhanhar masala's
outlay at Bhagal



customer
purchasing directly

Dhanhar Masala Pvt. Ltd. use to one level channels in case where the retailer or small
shopkeeper or many department store in near around area or many hotels purchases
Masala from Bhagal outlay and in turn retailers sale it to regular customers.

D. Two level of distribution channel (full distribution channel)


In two level distribution channel company sales products to the super stockiest or
wholesaler and they sale it to retailers like super store or departmental store and they sale
it directly to the final customer.



This distribution channel can be shown as following.

Manufacturer
(Dhanhar)
super stockiest
(CNF)
Retailer (small shops,
departmental stores or
some hotels)

Final customer

wholesaler

Retailer (small shops,
departmental stores
or some hotels)

Final customer


33
7. Sales procedure & 8. study of how customers are processed


Sales procedure in Dhanhar Exim Pvt. Ltd. is a very systematic and easily processed. As
soon as an inquiry by customer is received, whether through verbal, telephonic or written,
or from the website and then the quotation with price and type of product is sent to the
respected customer. If the customer will be satisfied, he will send reply for terms and
condition and that time marketing manager or assistant of the company will go for
finalization of the terms and conditions at the customer place and if customer satisfied
will give order for product. Order given by the customer to the marketing manager will
be issued to production planning department. After the delivery schedules, production
planning done. It consists of Bill of Material and material requirement planning.



After preparing production planning, execution of production plan is done and when raw
material is converted into finished good final quality checking is done and accepted
products are dispatched to respective customers.



This process can be explained as following:

inquiery from the customer (through verblely, written
letters or telephonic or inquiry from website
"Dhanharmasalas.com

quatation including price and type of the product is sent to
the customer
order from the customer ( if customer is satisfied)

Material requirnment planning and bill of material

Production

dispatch of order and sent to the customer


34
9. Documents related with sales
At Dhanhar Exim Pvt Ltd , Sales-related business transactions are recorded in the system as
sales documents. There are as following


Sales queries: inquiries and quotations



Sales orders



Outline agreements, such as contracts and scheduling agreements



Customer problems and complaints, such as free of charge deliveries and credit
memo requests



Cash memo

10.(a.) Composition of product, price, place and promotion for Dhanhar :
Market mix

At Dhanhar

Product



Product ranging from spices( 41 item) for all people (
vegetarian , non vegetarian, spicy food eaters or people love to
have some spice in their drinks like tea Masala or buttermilk
Masala etc) and they make water chestnut flour and Basmati
rice and chick peas in all available packaging.



Price

So at Dhanhar they do have a good product mix.



Here Dhanhar set their price according to the competitors price
so they follow the going rate pricing method but they use mark
up pricing also for deciding the price for their product.



So here Dhanhar generally go with market price of other
companies and they have the mark up for 50 to 70 % and hence
they can satisfy intermediaries and customers both.

Place



Here Dhanhar have good Distribution channel ranging from
Zero, One, two and full levels of Distribution channel .



Here the company have a benefit that company can reach to
every area of south Gujarat and middle Gujarat and hence


35
company can get the benefit of a good and small and hence
speedy distribution channel.

Promotion



Company have promotion policy of giving a hand bag on the
purchase of Rs.1000 and more and a travelling bag on the
purchase of more than of Rs 2000.



Company do have an appropriate advertisement policy .



Here they will decide the advertisement budget according to
overall budget prepared by finance department.



Here their budget is generally between 5, 00,000 to 8, 00,000
rupees.



They mainly give advertisement in Guajarati newspapers and on
FM and they use Hoardings for advertisement purposes.



So we can say that company has an appropriate policy regarding
promotion and advertisement.

10 (b.) Comparison of 4p’s of Dhanhar with competitors
A. Product :


While comparing Dhanhar products with competitors , Dhanhar is quite ahead as
Ramdev has 43 Masala varieties while Other competitors like Everest has 43
Masala and S.K and Gajanand and nilon etc company have products ranging from
30 to 40 products while Dhanhar has 47 Masala with lots of varieties targeting
both Non vegetarian and vegetarian food eaters.

B. Price:


On comparing pricing policy with competitors Dhanhar has always kept its price
lower than competitors. For example 50 grm hing is available at Dhanhar in 18 rs
and in 24 rs while other hing like Ramdev hing and others are available in 28 to
33 rs.


36
C. Place:


Dhanhar has all zero level, one level, two level and three level of channels. And
on other side comparing to Ramdev, Everest and S.k Masala Dhanhar have poor
distribution channel because Ramdev, everest, Catch Masala etc have distribution
channel all over in India and generally these Masala are found in every general
store or departmental store. So Dhanhar have all level of distribution channel but
due to less number of distributors,other companies found to be superior than
Dhanhar.

D. Promotion:


As far as promotion or advertisement part is concerned Dhanhar do have an
appropriate policy but Ramdev and everest have advertisements all over India and
they do have good sales promotion schemes for intermediaries and customers and
at local level S.K Masala and gajanand Masala also have good advertisements in
newspapers and many hordings are found at many places but Dhanhar‟s target
market is south Gujarat and they are able to attract the customers.

11. Study of generic level of competition


In the Masala industry in Gujarat region, mainly in south Gujarat, Dhanhar has to face
a tough competition mainly with Ramdev Masala and Everest Masala and S.K
Masala and Gajanand Masala also are good marketer in Masala industry but Dhanhar
is able to survive in the competition due to following two reasons
1. providing natural products with very less usage of chemicals
2. Giving more commission to the intermediaries (minimum 20%)



So in this way Dhanhar is able to survive in tough Masala competition



While in Water chestnut flour market, Dhanhar has to face a little competition with
small Atta maker flour mills who make Singoda flour on small scale basis.



Though in water chestnut flour competition Dhanhar is market leader due to
following reasons
1. made from fresh singoda and no added chemicals
2. more commission to retailers


37
3. 170 Rs per kilogram, and available in small packet of 100 gram also and hence
cheaper also.


So it can be said that Dhanhar with good composition of marketing and products
running their organization at a good pace.

12. Forecasting and sales plan preparation


Dhanhar systematically do forecasting and prepare sales plan on base of forecasting.



The sales forecast establishes the level of activity used in all the other forecasts and
budgets for the business. If your sales forecast varies wildly from your actual results,
your cash flow and profitability forecasts will similarly be inaccurate. Regularly updating
forecasts ensures current market intelligence, buying signals from clients and the efforts
behind the marketing strategy can be taken into account for the next forecast.



In Dhanhar Exim Pvt Ltd company use following sources to forecast to sale for future.
1. Sales Forecasting through Past sales method
2. Sales Forecasting through performance of Distributor
3. Sales Forecasting through Review the market

Sales Forecasting through Past sales method


In this method Dhanhar Exim pvt Ltd use previous year sales for sale forecasting.
Generally company takes last year sales as a base and adds some percentage to last year
sales.



They here generally use trend percentage method for estimating future sales.



This can be seen as following…….

Product

Sales

in Sales

in Trend percentage

Sales estimation

2011

2012

Garam Masala

300000

320000

106.6666667

341333.333

Tea Masala

150000

107000

71.33333333

76326.6667

Red chili powder

400000

470000

117.5

552250

water chestnut powder

700000

820000

117.1428571

960571.429

for 2013


38
Sales Forecasting through Distributor


Company also use each Distributor‟s sales of last a year as a base for sales forecasting
and give them target with adding some percentage in to sales, here they consider the
average sales of past three year and add some percentage to average sales, and they
accumulated sales of all Distributor. In that company accumulate sale of all distributor
and give them target via adding some percentage in to accumulated sale or average sale
of all distributor. This is only possible when company can forecast demand of each
distributor.



Here if average performance is higher than last year sales then they give only 2% growth
and if average performance is less than last year sales then they give 5% growth.

Distributor’s Sales in Sales
name

2010

in Sales in Average

2011

2012

Percentage Sales

performance growth to estimation
average

for 2013

sales
Distributor 1

8,92,000 10,00,875 11,00,000 9,97,625

5%

10,47,506

Distributor 2

4,00,000 2,30,000

1,70,000

2,66,667

2%

2,72,000

Distributor 3

5,00,000 4,00,000

4,70,000

4,66,667

5%

4,79,500

Distributor 4

5,60,000 7,00,000

8,20,000

6,93,333

5%

7,28,000

Sales Forecasting through Review the market


Through Review the market via industry experience and intelligence, company to know
what is happening with the competition, and company can also look at their financial
strength through Companies House filings. Are they growing or contracting? What are
they doing with their pricing? Is this a sign of an aggressive sales strategy? What your
competitors do will inevitably affect your sales. So that answering to these questions, it
helps to sales forecasting.


39
13. Pricing policy


It is easy to decide the % of the profit, which are added to cost?



It is easy to set price according to the competition. So now we will see how Dhanhar
Exim Pvt. Ltd. set their product price.



Price which the customers are required to pay for the goods. It should meet the
expectation of customers and make customers satisfied which will ultimately increase
the royalty towards the company.



Pricing is done by considering various factors such as pre-received value by
customers, competitor‟s price, government policy, firm‟s objectives, etc.



Now we will see what pricing policy by Dhanhar Exim Pvt. Ltd its product
considering various costs, which they have, incurred such as fixed cost, variable cost.

Price = (fixed + variable+ overhead ) costs + % of profit


They will always keep a keen eye on the price of the raw material as almost 50% to
60% cost of product cost is covered by raw material cost.



They will also consider the price in the market. But here one should know that
Dhanhar Exim Pvt. Ltd never compromised on the quality of product.



Here company have adopted going rate pricing where the Dhanhar Exim Pvt. Ltd
charge the price on the bases on prices of Everest, Ramdev, M.D.H, and Gajanand
Masala.



Here company follows going rate pricing but they also have some mark up on their
cost for profit.



Here company does not set price by its competitors, here they set the mark up on the
cost and then they decide the price.



For example if a Dhanhar water chestnut powder of 1kg packet has following cost
structure then,
Variable cost per unit= 45 rs,
Fixed cost 42, 00,000 rs for all products
Expected unit sales is 12, 00,000 units of all products aggregate sales

40
Then unit cost= variable cost + (fixed cost/unit sales)
=45 + (120, 00,000/16, 00,000)
=61+ 7.5
=68.5
So here unit cost of water chestnut powder is 47.5 rs per 1kg
And if company have mark up of 60% then
Mark up price= unit cost/ (1-desired return on sales)
= 68.5/ 0.40
=171 rs
So according to mark up price, water chestnut powder can sale 1 kg packet at 170 rs.

Pricelist of Dhanhar Exim Pvt Ltd

Product
RAJWADI
GARAM
MASALA

weight
25 gm
50 gm
100 gm
200 gm
500 gm

AGMARK
HING

50 gm

17.50

100 gm
200 gm
500 gm

34.00
67.00
165.00

weight
15.g
50.g
100.g
200.g jar
500.g ar

Price
5.00
22.00
40.00
75.00
155.00

50 gm
100 gm
200gm
500 gm
1kg

8
15
29
70
140

5.00 TEA
8.00 MASALA
15.00
29.00
70.00

15.g
50.g
100.gm
500 gm
500.g Jar

5
25
48
205
175.00

50.g
100.g
200.g
500.g
1.kg

SUPER
GARAM
MASALA

12.00 PUN.
18.00 GREVI
34.00 MASALA
83.00
155.00

15.g
50.g
100.g
200.g
500.g

5.00
18.00
35.00
68.00
130.00

50.g

17.00 CHHOLE

15.g

5.00

15 gm
50 gm
100 gm
200 gm
500 gm

NO.300
HING

SUPER HING(DABBI)

price
5.00
12.00
23.00
46.00
110.00

Product
PAVBHAJI
MASALA

Special Garam Masala


41
100.g
DELUX HING
(DABBI)

50.g
100.g

33.00 CHANA
MASALA
35.00
65.00

KASHMIRI CHILLI
POWDER

100.g
200.g
500.g

27.00 IDLE
50.00 SABHAR
120.00 MASALA

CHILLI
POWDER

50.g
100.g
200.g
500.g
1.kg
5.kg
5.kg

7.50
14.00
27.00 BIRIYANI
65.00 MASALA
125.00
525.00
600.00 RAJGARA LOT

50.g
100.g
200.g
500.g
1.kg
5.kg

7.50
14.00
27.00
65.00 KICKEN
125.00 KING
600.00 MASALA

50.g
100.g
200.g
500.g
1.kg

7.00
12.50
24.00 CHAT
57.00 MASALA
105.00

50.g
100.g
200.g
500.g
100.g
1.kg

8.00
15.00
28.00 PANIPURI
65.00 MASALA
20.00
190.00

FINE
CLASSIC
Turmeric powder

Classic
CORIANDER
POWDER

CORINDER
CUMIN
POWDER
SHINGODA LOT

ROCK SALT

MILK MASALA

TEA MASALA

40.g
100.g
20.g
50.g
100.g
50.g

2.00
5.00 JIRU POWDER
55.00 LILO MARKO HING
135.00
275.00 KALO MARKO
HING
18.00


50.g
100.g
200.g
500.g

18.00
35.00
68.00
130.00

15.g
50.g
100.g
200.g
500.g

5.00
18.00
35.00
68.00
130.00

15.g
50.g
100.g

5.00
17.00
33.00

100.g
200.g
500.g

16.00
32.00
80.00

15.g
50.g
100.g
200.g
500.g

5.00
17.00
33.00
65.00
135.00

15.g
50.g
100.g
200.g
500.g

5.00
13.00
24.00
45.00
110.00

15.g
50.g
100.g
200.g
500.g

5.00
13.00
24.00
45.00
110.00

1.kg

210.00

1.kg

370.00

1.kg

250.00

42
LAL MARKO HING

190.00

50.g
500.g

7.00
65.00

50.g
500.g

8.00
75.00

50.g

7.00

SP.G.MASALA

1.kg

175.00

SPECIAL GINGER
POWDER

1.kg

1.kg

CHEVDA MASALA

SURTI MASALA

1 kg

210.00

200.g
500.g

29.00
70.00

200.g
500.g

34.00
80.00

105.00
LIMBU-SODA

DELUX MASALA

500.g

140.00

SP.TEA MASALA

1.kg

214.00 CHHAS MASALA

JINGER POWDER

1.kg

180.00

DALSHAKMASALA

250 g

70.00

MARI POWDER

500.g

204.00

FISH
MASALA

50.g
100.g
200.gjar
500.gjar
100.g
200.g
500.g

AACHAR
MASALA

20.00
38.00 GUNDAKERI
74.00 MASALA
150.00 GOL-KERI
15.00 MASALA
29.00
70.00

14. Promotional and advertisement policies at Dhanhar Masala
Meaning of promotion: 

Promotion means a set of efforts made by the company for stimulating the demand for
its product or products without making any alteration in product mix, price and channels
of distribution.

What is done for promotion?


Dhanhar Exim generally follows following promotional activity.
o Customer purchasing Masala item above Rs 1000 to 1999, Dhanhar Masala gives
one Shopping Beg having printed their name Dhanhar and address.
o Customer purchasing Masala item above Rs 2000 up Dhanhar Masala gives one
Traveling Beg, having printed their name Dhanhar and address.

43
o And special bags are given to regular customers at the time of Diwali.
o Sometimes they carry the scheme on certain products like 20% extra on the
packaging of 1 kg.
Advertising policies


Here company does have an advertisement in newspapers but on the small scales.



Here they will first decide the communication and advertisement budget for the whole
year and they will plan during which season they are going to give promote their product.



Here they will decide the advertisement budget according to overall budget prepared by
finance department.



Here their budget is generally between 5, 00,000 to 8, 00,000 rupees.



They mainly give advertisement in Guajarati newspapers and on FM and they use
Hoardings for advertisement purposes.



Advertisement photo in Gujarat Samachar newspaper is as following.



Here in advertisement they are mainly focusing on seasonal products for example in June
and July they have advertisement regarding pickle Masala because it is the season of

44
mango while in the month of august they have advertisement regarding Water chestnut
flour as it is the month of many festivals.


Here they use various hoardings also which are given to distributors for the publicity
purposes which can be shown as following.



Here for advertisement purposes they give advertisement in a magazine called yellow
page which is a business magazine having details of suppliers, manufacturer and
distributors.



Dhanhar is giving advertisement which can be seen as following.



Here dhanhar‟s Masala administrative and store department phone numbers can be seen.



Here this advertisement is given in Surat addition of Yellow pages magazine.

15. Taxes applicable on sales activity


In India, there are two types of taxes on sale of goods – one levied by the Central
Government and the other levied by the State Governments.

45


What Dhanhar Exim has to pay is discussed as following.

1. Taxes applicable on sales activity within the Gujarat state (Intra-state Sale)


Sale or purchase of goods within a particular state is called Intra-state Sale. According to
Gujarat Sales Tax Act (GST), 1969. Prescribed in the act, Dhanhar Exim Pvt Ltd charge
3% sales tax on their customer within Gujarat. According to Gujarat value added tax
(GVAT), 2003 Dhanhar Exim Pvt Ltd charge extra 1% Vat Tax under section 7(1) is a
charging section which is levied on sales of goods, listed in schedule II and schedule III
after charging sales tax.

2. Tax on sales activity in inter-state Sale


A sale or purchase of goods between two states is called inter-state sale, is governed by
the Central Sales Tax Act, 1956 (CST Act). According to Central Sales Tax Act (CST),
1956, prescribed in the act Dhanhar Exim Pvt Ltd charge 5% sales tax on their interstate
customer on sale of goods. According to State VAT legislation Dhanhar Exim Pvt Ltd
charge extra 2% Vat Tax after charging sales tax.
So taxes applicable on sales activity can be viewed as following

Sales

Act

Tax applicable

Sales within

Gujarat Sales Tax Act (GST)

3% + 1% according Vat Tax under

Gujarat

& Gujarat value added tax

section 7(1) = total 4 % tax

(GVAT)
Sales outside

Central Sales Tax Act (CST), 5% tax according CST + 2% additional

Gujarat

1956

Tax = total 7%S

16. study of control system & reporting system for employees working in
marketing department
1. Control regarding Dispatch of goods


The controlling system is very necessary for sales employees. At Dhanhar controlling
system is very clear. No one can take the lot outside the factory before the signature of
dispatching manager. Dispatching manager issues the bill for the goods which is send out


46
of the factory. This bill would be collected by the security manager, and then they
allowed any one to let the goods outside the factory. This system is also applicable for the
purchased goods. No one can take the goods inside the factory, first security manager
check the goods and then allowed to enter into the factory.

2. Control regarding target achievement for distributors


The controlling system regarding sales distributor is in terms of the sales target they have
to achieve given by the marketing manager.



Company also use each Distributor‟s sales of last a year as a base for sales forecasting
and give them target with adding some percentage in to sales, here they consider the
average sales of past three year and add some percentage to average sales. Here if
average performance is higher than last year sales then they give only 2% growth and if
average performance is less than last year sales then they give 5% growth.



If a distributor is able to achieve his goal, he will be rewarded with extra % of sales
commission mainly 2 %TO 3 % of his total sales.



If a distributor is failed to attain his goal for continuously for 3 times, he will be removed
from their distribution channel.

17. Document Report generated in marketing department


The different reports generated in marketing department are as follows:
1. Customer feedback report
2. Customer complain report
3. Sales report
4. Profitability chart for various distributors
5. Conversion of samples into orders
6. Sample making time

7. Number of samples to be made to confirm an order


47


48
A. Structure of production department in Dhanhar Masala

Mr.Jignesh
(head 1)
Production
department

production
manager

assistant

workers

Mr.Nilesh
(head 2)

o Here at Dhanhar production department is being managed by two heads Mr. Jignesh
and Mr. Nilesh respectively.
o Production manager works under two heads.
o assistant is at 3rd level in the hierarchy
o Workers are working under the head of a assistant.
Meaning of Production: 

“Production is the process of converting the raw material and for the other input the
product for further production of the finished goods or services so that utility of input is
created or enhanced and the need of customer are satisfied.”

Example: - Consumer goods, Industrial goods, Services of transport, Medical treatment,
Education, Insurance, Banking etc.


49
Definition of Management: 

“Management means creating and maintaining an environment in which individual
working together in group willingly contribute there best to achieve the predetermined
goal and objective timely though the effective utilization of sources such as money,
material, technology etc.”

Production Management: 

“Production Management means creating and maintaining environment in which
individual working together in group willingly contribute their best to produce to satisfy
the goods and services by optimum utilization of raw material and other input so as to
timely satisfy the need of customers”

B. How production plan is prepared from sales plan

Sales plan prepared by Marketing Department and Sales order

sequencing the activity
( important order or order having earlier delivery date are given prirority)

deciding production planning quantity through checking quantity of
current stock of finished goods , work in progress and expacted closing
stock

production plan quantity

1. First of all, Marketing Manager will forecast demand of customer and prepare sales
plan according to their requirement or also estimate sales for future period on the

50
basis of Market situation. Then marketing department gets sales order from customer.
At Dhanhar Exim Pvt Ltd, one customer can order via online and direct
communication through telephone or letter or personal talk.

2. Here in the second step marketing manager will send the demand data about each
product of Dhanhar to the production department where they will sequence the
activity of production where important products or products whose delivery date is
earlier is given the priority by production department and upcoming season‟s product
quantities are also managed, for eg in august month many Hindu festivals comes and
many people have fast on such festivals and in fast people eat products made from
water chestnut flour , so production department have to make water chestnut flour in
the month of July so that it is available to marketing department in august.

3. In the third step they will do production planning so that they can have exact quantity.
Here they will first check the current stock of finished product and if production is in
progress then that quantity is also considered and they will subtract both current stock
and WIP quantity from total marketing forecast and they will add expected closing
stock at the end of planning period. Here Dhanhar considers the stock , they have to
send to their selling outlet at Bhagal for sale in current period .
So, production planning quantity = marketing sales forecast- current stockcurrent Work in progress (if any) + requirement of Finished product for sales in
current period + expected closing stock
Current period = July
Planning period = August
Production plan quantity for water chestnut flour for the month of August =
Market forecast (2700 kg) - Current stock (715 kg) – current WIP (00) + current
expected sales (280 kg) + closing stock Expected (600 kg)
= 2865 kg
So, Dhanhar have to make 2865 kg of Water chestnut flour in the month of August.

4. In such way production plan quantity for all products at Dhanhar.


51

C. How the production plan is converted in Material Requirement Plan &
ultimately in purchase Plan

production plan quantity

Bill of Material for various products showing quantities of raw material

Determining net quantity for Raw material through checking current stock
of RM , pending order quantity, closing stock and safety stock of RM and
current periods requirnment

placing orders to the supplirs

1) First the production department gets an order from the buyers. After getting the
confirm order production manager prepares production plan. They send this
production plan to raw material and stock manager of the factory.
2) In the second step they will prepare Bill of Material for each product, BOM is the
statement showing quantity of raw material and other inputs required to produce that
product.
3) Here in the 3rd step production department have details of all raw material required to
produce one product and from total quantity required, they will subtract current stock
of raw material and quantity required to produce quantity for orders which are
pending and they will add quantity they want as closing stock and as safety stock at
the end of planning period.
Net material requirement quantity = quantity needed for production - current
stock of raw material – quantity needed to produce pending orders(if any) +
requirement in current period + expected closing stock and safety stock

52
Material requirement planning for Water chestnut Flour (from above
production plan, we can see that production forecast is for water chest flour is
2865 kg)
Current period = July
Planning period = August
Raw material singoda required for making water chestnut for the month of
August = production plan quantity (2865 kg) - Current stock of singoda (630 kg)
– quantity needed for pending orders (00) + closing stock Expected and for
safety stock (600 kg)
= 2835 kg
So here Dhanhar Exim Pvt Ltd has to order for 2835 kg of Singoda for making 2865
kg of water chestnut.
4) The merchandiser place the order to the supplier of raw material as per the
requirement. By this way they prepare purchase plan.


They do not believe in maintaining stock. So they have to prepare purchase plan every
time. Normally they purchased raw material from Surat and Mumbai.

D. Plant location of Dhanhar Exim Pvt ltd


Plant location is mainly selection on these areas where the business should well establish
for maximum utilize of economy and effectiveness. It is an important decision in long
term.



Location of plant is most important factor in a private sector. There are many factors are
affected e.g. if the place was outside the city then they are free from paying octroi for
their product, various taxes, labour transmission facilities, living home to the labour or
employee like houses, cottages etc., for the raw material storage facility to the certain
extent to run production smoothly. When plant or site is located in near or in the city they
have no expense to rent for the employee or labour houses, available good infrastructure
in compare to the far from the city area, less transportation cost, easy distribution of
goods in less time. Dhanhar Masala Pvt. Ltd. plant is located at no far from the city


53
and not near to the city. It is located in industrial zone of fulpada in this area they get
benefits from the government and electricity, water, roads, communication channels.

Production house
Plant location of
Dhanhar
administrative

office



Survey no.
167,Ashwini kumar
road, Nr, shamshan
bhumi,Fulpada,
Surat,(Gujarat)
India.

Dhanhar
house,Bhajiwadi
pole,bhagal char
rasta,Surat –
395003(Gujarat)
India.

Dhanhar Masala Pvt. Ltd. Chooses this area because there are available enough raw
material with proper quality & quantity. Easy distribution of their product & profitable to
the industry. They not thinking for the changing the site. They want to buy or take on the
lease new site near the old plant.



The population is increasing day by day and residential area will come near to the
industrial area so that Dhanhar Masala Pvt. Ltd.

more concentrate on environment not

harmful to the their citizen. The company will think to establish new plant far from to the
residential area.
Factors affected the selection of Dhanhar Exim pvt ltd locations and Benefits
(evaluation) of plant location


Various factors which affected plant site selection and benefits from that location
are as following.

1. Proximity ( nearer) to market
2. Proximity ( nearer) to raw material sources

54
3. Type of business
4. Availability of manpower
5. Availability of infrastructure and other factors of production
6. Law & order
7. Political system and economical system of the country
8. Ideology of ruling political party and opposite parties
9. Cost of land and real estate
10. Other support system
11. Climate factors
12. Mindset of local society
13. Topography of soil
14. Nature of business
15. Tax incentives and other
16. Personal factors
They are as following……..
1. Proximity (nearer) to market


Dhanhar Exim Pvt. Ltd. is located in the prime area of surat. The benefit of this
location is that they can serve to whole south Gujarat market where they have more
number of customers compared to other parts means they can serve to places like
Navsari, Valsad or vapi which are in southern part and to Bharuch, Ankleshwer and
Narmada which in Northen part of Surat and hence surat is a central location and
hence company can reach to the customers in easy way.

2. Proximity (nearer) to raw material sources


Adequate raw material is available for Dhanhar Masala Pvt. Ltd. The main
reason for Choosing this area because there are available enough raw material with
proper quality & quantity



Regular supply is possible as Surat is very near to N.H. 8. So transportation
facilities are available all the time.


55
3. Other support system


There are various banks available around to the company like HDFC bank and
sutex bank and Bank of Baroda etc.



As in some industry continuous supply of power is important factor. And here
Torent Electricity Board provides continuous supply of power.

4. Availability of manpower


Important input of Unskilled or blue color workers is available at economical cost.



Regular & cheap supply employee is available in the area of Ashwini kumar.



Manpower availability with required skills.

5. Availability of infrastructure and other factors of production


Dhanhar Exim Pvt ltd has its own state of art infrastructure at manufacturing plant
in Gujarat, India. Aimed with capable of producing more Masala per month.



Company does have separate buildings for administrative work and production
work at Bhagal and at Ashwinikumar respectively.

6. Topography of soil


The soil of Ashwinikumar area is harder so that manufacturing process can be
carried on without any further problems. And here company doesn‟t have very
heavy manufacturing so production can be carried easily.

7. Type of business & Nature of business


The Dhanhar Exim Pvt ltd is running the business concerning with manufacturing
of Masala and other edible products which can be manufactured in any area and
also in prime area of city or village and hence Dhanhar Exim Pvt ltd have no
requirement to be away from Surat city and hence Ashwinikumar is a proper place
for them.

8. Political system and economical system of the country


Here as this company is only concerned with Manufacturing of Masala no political
system affects the working and management of the company.

56

9. Ideology of ruling political party and opposite parties


Here the ruling party which is B.J.P have always supported industrialization and
always promoted business against agriculture which always been an issue to the
opposite party. But Ideology of ruling party is always positive that‟s why they are
still in Masala industry since 1965.

10. Cost of land and real estate


The Dhanhar Exim Pvt ltd was established in 1965 and at that time surat was a
developing area Surat district and they got the Ashwinikumar area‟s land at some
economical cost but at that time Bhagal was the main area of Surat city and hence
they have to pay slightly more at that time.

11. Climate factors


As Dhanhar Exim Pvt ltd is of manufacturing company of Masala and hence do not
require having a specific climate. For e.g. a pharmaceutical company requires clean
air in their premises but for Masala making nothing more is required.

12. Mindset of local society


Here the local ladies are getting the job and as it is only a Masala making firm local
people have no point for opposing the company manufacturing.

13. Law and order


As company‟s both working places are in prime area of surat city they don‟t have to
pay after security of working place compared to rural area and hence Dhanhar got
benefited.

E. Plant layout of entire factory


Here different plant layout for each deprtment is not there because Dhanhar has its
production unit at Ashwinikumar and administrative office is located at Bhagal


57
where marketing and finance department works. While there storage department is
near Bhagal Vegetable market.


Thus internal plant layout for each department is not possible.



This is Dhanhar‟s administrative area where marketing and finance department is
located.



While their storage department named Dhanhar Masala Bhandar is located near
Bhagal Vegetable Market. Which can be seen in following map.

Dhanhar Exim Pvt ltd,
Bhagal, suart.

F. Internal plant layout of main production department
 Plant of Production Department at Ground Floor area
 Here According to production process of cleaning, grinding, Mixing, packing and
labeling, various departments are made.


58

 While Storage department for finished products are made on the 1st flour.
G. Types and classes of Material Handling Equipment
1. Trolley:


Trolley is being used mostly in the material department for the movement of small
article from one rack to another and also used in the movements‟ equipment and
man oriented equipment. Trolley can be as following.

.
2. Hand carts: hand cart has the same utility as Trolley but it is used outside of the
plant for movement of shipping packages of finished products.


59
3. Convey belts:


Dhanhar uses conveyor to transport materials on conveying system. Conveyor
utilizes a moving belt that slides along a flat steel bed with pulleys at both ends.



Here Dhanhar mainly uses it for movement of raw materials.

4. Elevators:


Elevators are used for the vertical movement at Dhanhar between two floors and for
moving finished products from production department to underground flour which
is the storage area. Elevators uses electricity for vertical upward movement while
use gravity while downward movement. Lifts transport goods vertically to multiple
heights (from the ground to a mezzanine for example) or horizontally for increased
order picking throughput.

5. Crates and boxes:


Dhanhar provides the baskets, bins, boxes, pallets and other containers that are
durable enough to handle the day-to-day rigors of your operations.

6. Pipelines


Pipeline is used for liquid form inventory movement and of water and wastage
materials.

7. wooden pallets:


Wooden pallets are the most common type of pallet, which are also made of metal,
plastic and paper. Flat transport support structures, wooden pallets give forklifts the
ability to easily lift and place products and materials on pallet rack.



Wooden pallet cab be seen as below


60

Classification of material Handling Equipments
A. Classification on the Basis of Form of the Material
1. For solid Material


Hand Carts



Conveyer Belts



Elevators



Crates and Boxes

2. For Liquid material


Pipes



Canals(For waste material)

B. Classification as per path of movement


Elevators



Pipeline



Conveyor belt



Hand cart

C. Classification as per Direction of movements
o Handling is required between two departments, between two locations within a
department and also at one work-station or machine


Elevator and pipeline for vertical Movements

61


Handcart and conveyor belt for horizontal movements

D. Classification as per starting point and destination point


Crates and boxes for intra department Material handling



Handcart and trolley for Inter department Material Handling

E. Classification as per sources of power
1. Manually powered: Handcart, trolley, crates and boxes
2. Online electronic Power Source: Elevators

H. Inventory control system
 Here at Dhanhar Masala, they have ABC inventory control system in which they
record the transactions of inventory in computer and arrange them in descending
order in the form of their monetary value.


Here benefit from this system is” It is able to record multiple units of measure, as
they purchase in “bags, jars, kg, etc.”



In this system name of RM its batch and material code and Barcode is inserted.



The installation of Stockroom has improved their inventory accuracy, reduced
rush orders, reduced over buying and in general streamlined the purchasing and
inventory process for this small business.

Format of ABC system at Dhanhar
Raw material
name

RM code

Money value cumulative

% of total

Class

of RM

consumption value

(A, B, C)

I. inventory valuation method
o Materials are issued to the different jobs, works, and orders from the „store‟. The cost of
finished product largely depends upon the price changed for raw-material issued to the

62
jobs. Various methods are used for inventory valuation, which will solute with industry
condition. The methods of inventory valuation are as follows:
1. FIFO method (first in first out)
2. LIFO method (last in first out)
3. HIFO method (highest in first out)
4. Average cost method
5. Market price method
6. Standard cost method
7. Base stock method
o Dhanhar Exim Pvt Ltd is using FIFO (first in First out Method) for valuation of
inventories, in this method
Guidelines for inventory valuation method
Raw material
o Stock different ingredients are values as per the price of purchasing. So if dry water
chestnuts are being purchased at 6 rupee per kilogram and suppose 25 paisa is inspection
cost then 6.25 is the value of water chestnut.
Work in progress
o Top management has decided that Work in progress is valued as per the half cost of
manufacturing multiply by quantity of WIP.
Finished goods
o Final Masala product is being valued as per manufacturing cost multiply by total stock of
polished raw material.
Tools and equipments


63
o There is stock register of how many tools and equipments are used. According to this
register tools or equipments used multiplied by cost or price of that tools and equipment.

J. Classification of inventories according to ABC & VED analysis
ABC analysis
o Abc analysis is analysis according to the value of items. In Dhanhar, the inventory
consists of hundreds of items and many employees are controlling them. In order to
affect economy in controlling such large inventory Dhanhar uses a system known as
ABC (Always Better Control) analysis.

o It has been found from the experience that all items included in inventory are not of
equal importance. A few items in the inventory represent a large proportion of total
value of inventory. Hence, more attention must be devoted to the control of such
items. All the items are divided into three categories.

1. A – Category


It includes those items which are very important and of high value but forms only a small
proportion of total quantity of inventory.



At Dhanhar, there are 40 items which are comes in category A and they represents as much as
54% of value of inventories. Strict control over receipt, storage and issue should be exercised
over these items such as Black Pepper, whole cardamom, red chili, turmeric, dry singoda,

Cotton Seeds Oil, Nutmeg, Coriander, Ginger, Plastic Bag( for packing), Rajgara etc.
2. B – Category


Items included in category B are not as important as those in category A interms of money,
but are important enough for its proper records to be maintained. They constitute 65 items of
total number of items, but represent 28% of total value.



Here such items are Ajwain, Mint Leaves, Black Salt, Rock Salt , Cinnamon Leaves etc

3. C – Category


The remaining items must be placed in category C. they are not so important form the view
point of maintaining control over the receipt and consumption such items constitute 50% of
the total number of items but they represent 18% of total value.


64
ABC analysis of Dhanhar
Category

No. of items(in % of total Value of items ( in % of total
number of items)

value of inventory)

A

40 items (21.05)

54

B

55 items(28.95)

28

C

95 items (50%)

18

This ABC analysis can be shown as following

100
80

60
40
20
0
0

21.05

50

100

VED analysis


The possible consequences of material stock outs when demand arises from the basis
of VED analysis. The cost of shortage depends upon the seriousness of the situation.
Items are grouped as V(Vital), E(Essential) and D(Desirable).



This classification of inventory is based on importance and application of different
items in production process. According to this classification there are three categories
of item VED.



Vital items are those items without which production will instantly stock all main raw
materials are obviously vital items. Similarly, there can be some another low value
items which are absolutely necessary for production process. As explained above,


65
spar parts of machines like power generator or Quality control liquid becomes vital
items. For example for making water chestnut flour dry singoda is vital product.


Essential items are those items without which efficiency of production process will
reduce. Absence of these items may not cause total stoppage of production but rate of
production may go down or wastage of material may increase.



For Example at Dhanhar elevator is most important because it is helpful for multi
level movement of material and if it is not working then it will affect the efficiency.



Desirable items are those items, without which it will be inconvenient to do
production operation. Without these items, production is not going to stop or slow
down.



Example: weight measuring instruments, staplers small tool of safety devises are such
desirable items.

In Dhanhar, there is no system like VED analysis but by doing VED analysis those who are
responsible for availability of various raw material and items may know which items are
important for production process.

K. Study of material codification system


Material codification system is a system in which each parts is given different codes
for identifying particular product by giving alphanumeric codes. Alphanumeric codes,
which are given to different parts, are unique so that computer will able to keep
accurate information in it.

Now we are going to study alphanumeric codes.
1. RM045: Here RM means material related items. For example red chillis, dry ginger
may be given the code 0454 and 0567.
2. FG012: Here FG means finished goods which made in factory. For example Tea
Masala may be given a code FG180
3. JB022: Here JB means job repairing items. Items which are used for repairing and
maintenance. For example nuts, bolts, various machines spare parts etc.
4. C12: Here C means consumables items. Greece, oil etc.


66
L. Records keep in store:
1. Material Receipt Register
2. Material Issue Register
3. Stock Register
4. Store Register of Assort Department
5. Wastage goods Register
6. Reject goods Register
7. Finished goods Register

M. (a) Material receipt procedure


At Dhanhar, there is systematic process for material receipt as follows.

1) The first step is purchase order given by company to suppliers.
2)

When material comes it is not directly sent to store department but it is given for quality
checking. In Dhanhar, there is one laboratory to check the quality of materials. They are
checking the quality of goods and compare with quality of sample which is given by suppliers.

3) If there is any discrepancy, it should be immediately reported to the purchase department and
that goods are sent to rejected goods department.
4) Rejected goods department take necessary action for the return of goods to suppliers.
5) If the goods are of quality, receiving section will prepare a “goods receive note”. Four copies
of the note are prepared and three copies are sent to the store keeper along with the goods
received and they attach green color “accept card” with materials.
6) Received material is store in various containers by store department and issue when they get
order.

(b)Material issue procedure
As we done previously, we will see material procedure step wise.
1. Suppose the sales department gets the order of 100kg Pavbhaji Masala. Then
purchase department will see current availability of stock and store department and by
watching condition they are taking decisions.
2. After the store department is given required stock, production department approach
the store department for getting required material for producing 100kg Pavbhaji

67
Masala, so that the store department will send accurate and adequate material to
production department, which will reduce the wastage cost.
3. Now store department will approach to material requirement department which will
give them the bill of material report of 100kg Pavbhaji Masala.


One thing should be noticed that consumable items, workers have to approach the
store department with requirement slip for getting the required material.

N. Documents related to material issue and receipt
1) Material receipt register
2) Material issue register
3) Stock register
Material Receipt Register
Date

Name of Dealer

Challan no.

Item

Quantity

Remark

Material issue register
Date

Name of Dept

Material Issue Form

Item

Quantity

Remark

Balance

Remark

No.

Stock Register
Date

Receipt

Of

Quantity

Price

Date of

Issue

Issue

Quantity

Receipt


68
O. Purchase procedure
1.

First requirement for raw material is felt after making raw material purchase plan,
so here which product in how much quantity to purchase etc are determined.

2. After that search for the supplier is done in which they write the letters for
quotations from the suppliers. And here supplier sends the quotation for the specified
material.
3. In the third step company selects the suppliers who are providing good quality of
material at the reasonable rate.
4. Fourth step is about communication and negotiation between company and supplier
regarding quantity to be sent and by what way payment is needed to be done and
about the payment terms and condition and credit period.
5. In this step final price is decided
6. This step is about placing the order with certain quantity and delivery date.
7. Receipt of material is the last step of purchase procedure.

requirenment of raw material is felt
Inquiery about suppliers ( quatation)
selecting one supplier which satisfies more
Negotiation ( communication)
Decide the final price
Place the purchase order
Receipt of material


69
Documents related with purchasing
a. Inquiry letter:


This is the letter which is send by the purchase manager to suppliers. If
communication is written then the purchase manager can have the proof. But if the
means of communication is telephonic then there can be no proof. And if the
communication is done by e-mail then there will be definite proof.

b. Response letter:


This letter is given by the supplier to purchase manager. This is the letter in response
to the inquiry letter. This letter is in the form of quotation. Which contain the price of
the goods that manager have asked and also other information.

c. Comparison Statement:


This is the statement which is prepared by the purchase manager.

After

receiving the quotation from the supplier the manager will prepare this kind of
comparison statement. This statement contains the comparison between all suppliers.
And on the basis of this they will decide whether to select the particular supplier or
not.

Comparison statements
Dhanhar Exim Pvt Ltd
Bhagal, Surat
Comparative statement of quotations
Tender no………

Opened on…………

Name of material………
Serial

Name of

no

supplier

Entered by……….

quantity

Price

Duties and

Terms of

taxes

Remarks

delivery

Checked by……….


70
Purchase order
Dhanhar house,
Bhajiwadi pole,
bhagal char rasta,
Surat – 395003

Phone no: (0261)225121224
PURCHASE ORDER
Purchase Order No:
Supplier Quotation:
TO:

No. & Date:

Please supply the following items on the terms and condition mentioned below.
Sl
No

Description

Material

size

Qty.

Price

Amount Delivery

code

date

Terms of delivery……..
For Dhanhar Exim
Purchase Manager

P. Maintenance planning system


Maintenance planning for various machines used production department necessary
for continuous production. At time, break down of one machine can hamper whole
process of the production and also leads to delay delivery. To avoid all this things,
there is one master key and that is compulsory periodically maintenance.



At Dhanhar, maintenance of consumable machine is done on a fixed period and
definitely at the time of breakdown of the machinery point. After breakdown experts
for bigger faults immediately repair machinery.


71


At Dhanhar maintenance of different machines is done on the based on the limits
given to each machines and also keep records for each machines with no. of
breakdown in whole month and even for year. If any machinery shows more than
expected breakdowns than it is inform by service man to top management for the
replacement of machinery

Q. Quality control system at Dhanhar Exim Pvt ltd
Quality: 

Quality refers to the sum of attributes or properties that describe a product. These
are generally expressed in terms of specific product characteristics such as length,
width, colour, etc. These characteristics must be quantitatively expressed in terms
that can be objectively measured or observed.

Quality Control: Quality Control refers to those activities used to refer to a specific organization
within the Industrial enterprise which is assigned responsibility for many of the activities
necessary to achieve quality objectives.
Methods of Quality Control, which are uses in the Dhanhar Masala Pvt. Ltd
There are three method uses, which are given below:1. Inspection: inspection is done by the worker on the job and improving the quality
wherever he finds any fault.
2. Quality Circles: at Dhanhar group of many person are given various products for
production and one with best individual performance is elected as a group leader and
all group leaders meet frequently for quality improvement.
3. Statistical Quality Control (SQC): this method is followed by laboratory scientist
for checking the quality of raw material and finished products.


Most of use Inspection and Statistical Quality Control by Dhanhar Masala Pvt.
Ltd. in the Factory.

72
Quality control:

Quality is the key thing the business of exports. Dhanhar is also paying more
attention to the quality control. In this company there is quality control department
directly under the quality control manager and production head.



The structure of the quality control department is as follows:

production
manager

quality control
manager

line quality
controller
(for basmati
rice , for
spices)

checkers

General guidelines for quality control


They have to use hand gloves while production during grinding, mixing, and
cleaning.



In every 5 hours the floor is cleaned by the house keeping members.



They use wet & dry dustbin to throw waste and to keep environment hygienic and
eco-friendly. Plastic bag used in a dustbin are change twice in a day.



They use fresh herbs and ground nut spices and cleaned before grinding.



They never use expire product before getting it from general store they always check
the manufacturing or expire date.



And they always clean the cleaning, mixing and grinding machine after making each
spice. For example after making tea Masala they will clean each machine.


73
R. Quality control guidelines for raw material and finished products
For raw material
 For raw material quality control, first the company checks the quantity in which the
order was being placed and is the product as per the order or not? And check list is being
made.


In the 2nd stage company sends the raw material to the laboratory for the checking of
quality.



At Dhanhar raw material samples are tested for multiple times, at every point of the
supply chain to ensure the highest quality and product consistency. The Dhanhar
Quality Assurance program consists of a fully-integrated QC lab which is complete
with testing capabilities on chemical, micro/ macro-sanitary & microbiology parameters
as well as Inspection standard.



Here Raw material is tested that if it of good quality or not and for how much time it is
consumable.

For finished goods


Before checking the quality of finished product it is checked that whether the weight of
packging is proper or not.



Then after it is checked that for how much time product is consumable for example if
Tea masala is consumable within 12 months of packaging and if the product made has
expiry date before given then that production lot may be rejacted.



While checking the quality of Finished products, quality of packaging is also checked,
here durability of packing and Labeling is checked.

S. In process quality control guidelines


At Dhanhar in process quality control is checked in 3 steps which are as following

1. Quality control at cleaning stage: here in this stage company checks that whether raw
material is properly cleaned or not. After Removing Dust & Stone it is checked that
whether raw material is properly cleaned or not. Here this part is more important for
ground nut spices.

74
2. Quality control at grinding stage: here in this stage company checks that whether raw
material is properly grinded or not. For example red chili powder is to be made then in
this stage it is checked whether it is perfectly grinded and is in completely powder form
and here it is also checked whether chili seeds are not there in the powder.
3. Quality control at Mixing stage: here in this stage company checks that whether raw
material is properly mixed or not. for example in Shambhar Masala rock salt, cumin
seed, ginger, dry mango, ajwian, chili, black salt, dry mango ,mint leaves, compounded
asafetida, Citric Acid is mixed in proper quantity or not and it is checked through
chemical process in the laboratory.

T. Documents related to quality control
1. Finished product report
2.

Raw material report

3. Packing material report
4. In process report
5. Re-test report
6. R.M. order sample record
7. Suggestion record
8. Complain record ( outside)
9. Release order record
10. Date stock registered.

U. Different reports generated in production department
1. Material issue and receipt record
2. Stock register
3. Maintenance record
4. Machinery hour records
5. Quality control reports
6. Purchase and inquiry report


75


76
1. Detailed organization structure of finance department
General Manager
Head of Finance
department
Accountant

Clerk

Cashier
o Here at Dhanhar finance department is being managed by head Mr. Hitesh
o Accountant has to work under Mr. Hitesh
o Clerk is at 3rd level in the hierarchy
o Cashier is working under the head of a clerk.

2. Revenue Budgeting
o Revenue budgeting plays an important role in every financial procedure.
o In this company also, revenue budgets are prepared on the requirement basis.
o In the first stage, sales plan are prepared from the entire marketing process.
o From sales plan, production plans are prepared as to fulfill the customer requirement.
o In the next stage, with the help of production plan, raw materials requirement are planned
i.e. how much raw-materials are to be purchased from different dealers.
o Estimation of labour hours is also done and estimated working days are considered and
hence total employment cost are determined.
o Lastly revenue budgets are prepared to estimate the entire financial flow of the company.


77


The calculation of revenue budget is very easy to understand and calculate. We can
simply calculate the revenue budget by deducting all the expenses of the company by
all the incomes. If the revenues exceeds the expenses, that means company is in profit
criteria and if the expenses exceeds the revenues, that means company is in loss
criteria.

The revenue budgeting process can be explained as following.

sales plan by
marketing
department

total expanses
are estimeted

total income is
determined

production
plan

estimeted cost
of labour

Incomeexpanses

material
requirnment
planning

purchase of
raw material

profit or loss

3. Costing methods


The methods to be used for the ascertainment of cost of production differ from industry to
industry. It primarily depends upon the manufacturing process and also on the methods of
measuring the departmental and finished products.



There are various methods of costing are as follows:
1. Unit costing
2. Job costing
3. Contract costing
4. Batch costing
5. Process costing
6. operation costing
7. Operating Costing

78
8. Multiple operations costing



Dhanhar Exim Pvt Ltd use batch costing methods. Dhanhar Exim Pvt Ltd use this
methods because in Batch Costing, products are produce in a lot ,say in 5000 units,
product like Hing, so Batch is given as “05 JUN 13”, for this product ,it includes
product name, product code month of Manufacturing, year. Thus Batch is used for
ascertaining the cost of product. In Dhanhar Exim Pvt Ltd, All the Products are
usually kept in stock for selling to customers on demand. Whenever a particular
product is required, one unit of such product is not produced but a lot of say 500 or
1000 units of such product are produced. It is therefore also known as “Lot Costing”.



In Dhanhar Exim Pvt Ltd Separate Batch cost sheets are maintained for each batch of
products. Each batch is allotted a number. Material requisitions are prepared batch
wise, the direct labour is engaged batch wise and the overheads are also recovered
batch wise. Cost per unit is ascertained by dividing the total cost of a batch by
number of items produced in that batch. Production orders are issued only when the
stock of finished goods reaches the ordering level. In case the batches are repetitive,
the costing work is much simplified. Since in batch costing production is done in
batches and each batch consists of a number of units

Cost per unit in a batch = Total cost of a batch/ Number of Items produces
Product name

Batch

Product name

code
Chilli powder & Kashmiri Chilli 01

Batch
code

Turmeric powder

02

Masala
Water chest nut

03

Sour mango pickle Masala

04

Hing

05

Sweet mango pickle Masala

06

Coriander Powder

08

Raj wadi garam Masala and 07
super Garam Masala
Dry Ginger Masala

09

Jeera Masala

10

Coriander cumin Powder

12

Black paper powder

11

White paper powder

13

Kitchen King Masala

14

Biryaani pulav Masala

15

Tea Masala

16


79
Chhole Chana Masala

17

Sambhar Masala

18

Pav bhaji Masala

19

Mutton Masala

20

Chicken Masala

21

Egg Curry Masala

22

Fish Masala

23

Nimbu soda Masala

24

Meat Masala

25

Pomegranate Powder

26

Pani puri Masala

27

Dry mango Masala

28

Sandwich Masala

29

Jal jeera Masala

30

Kasuri methi

31

Patra masala

32

Undhiyu Masala

32

Chiwda Masala

33

Dabeli Masala

34

Asafetida powder

35

Fruit chaat Masala

36

Saffron

37

Ravaiya Masala

37

Surati dalshak Masala

38

Butter milk Masala

39

Curry Masala

40

Rajwadi milk Masala

41

For example batch of some products are shown in following images
a. Sweet mango pickle Masala
code = 06
 Here 06 is the code of sweet
mango pickle Masala, batch
code is “06 JUN 13”

b. Sour mango pickle Masala code = 04


Here sour mango pickle Masala code is 04 and batch code is “04 APR 13”


80

c. Hing code =05


Here Hing code is 05 and batch code is “05 MAY 13”

4. Cost structure
 Cost structure can be divided in three parts viz fixed cost, variable cost and semi
variable cost.

Total Cost

Fixed Cost

Variable Cost

Semi-variable cost


81
5. Costing sheets & classification of costs in different categories
Cost Sheet
Particular
Amt for 2010-11 Amt for 2011-12
Consumptions of Raw materials
32083964
34400853
Direct Labour
673495
829740
Direct expenses
1121268
2312434
Prime Cost
33878727
37543027
Depreciation and repairs
725639
765163
Insurance
65000
690000
Electrcity expenses
990860
1000900
Works cost
35660226
39999090
Administrative overheads
1121268
2312434
Cost of production
36781494
42311524
Add: Opening Stock of Finished Goods
521755
1036536
less: Closing Stock of Finished Goods
1004820
1464109
Cost Of Goods sold
36298429
41883951
Selling and Distribution Exp.
Advertisement Expences
690000
710000
Distribution Expences
102985
127890
packaging and labelling expences
426700
456700
Cost of Sales
37518114
43178541
Profit
8830827
11526258
Net Sales
46348941
54704799

Classification of Cost in Different category
The cost are classified broadly classified into three category .they are classified as follow.
1) Factory cost
Factory Cost for year 2010-11 and 2011-12 are as follow
Factory cost
2010-11
Depreciation and repairs
725639
Insurance
65000
Electrcity expenses
990860
Direct Labour
673495
Direct expenses
1121268
Total
3576262


2011-12
765163
690000
1000900
829740
2312434
5598237

82
2) Administration Cost
Administration Cost for year 2010-11 and 2011-12 are as follow.
Administration Cost
2010-11
Salary
750000
Depreciation of office furniture
26262
Telephone & postage
32556
Printing and stationary
31450
Audit fees
15000
Legal charges(including Tax)
124500
Office electricity
74354
Other Expenses
67146
Total 1121268

2011-12
1520000
64635
88832
77658
15000
243500
158468
144341
2312434

3) Selling and distribution Cost
Selling and distribution Cost for year 2010-11 and 2011-12 are as follow.
Selling and distribution Cost
2010-11
2011-12
Advertisement Expenses
690000
710000
Distribution Expenses
102985
127890
packaging and labeling expenses
426700
456700
Total
1219685
1294590

6. Working capital management at Dhanhar Exim Pvt Ltd
Meaning of working capital


Working capital to a company is like the blood to human body. It is the most vital
ingredient of a business. Working capital management if carried out effectively,
efficiently and consistently will assure the health of an organization.

Meaning:

Working capital is defined as the excess of current assets over current liabilities.



Current assets are those assets which will be converted into cash within current
accounting period or within the next year as a result of ordinary operation of the business.
They are cash or near cash resources. At Dhanhar this includes:
A. Cash and bank balance
B. Receivables
C. Inventory

83
a. Raw materials, stores and spares
b. Work in progress
c. Finished goods
D. Prepaid expenses
E. Short term advances
F. Temporary investment


The value represented by these assets circulates among several items. Cash is used to buy
raw material, to pay wages and to meet other manufacturing expenses. Finished goods are
produced. These are held as inventories. When these are sold account receivable brings
cash into the firm. The cycle starts again.

Circulation of current liabilities:

Current liabilities are the debts of the firms that have to be paid during the current
accounting period or within a year. These include:

A. Creditors for goods and RM purchased
B. Outstanding expenses
C. Short term borrowings
D. Advances received against sales
E. Taxes and dividend payable
F. Other liabilities maturing within a year

Sources of fund
1. Taking loans
 Dhanhar Masala Pvt. Ltd. requires and uses Short Term Capital for running the
business. Short Term Capital to finance its working capital requirements.


Dhanhar Exim Pvt. Ltd. Takes loans from some industrial bank and co operative
bank.

2. Retained earnings and depriciation


Dhanhar Masala Pvt. Ltd. use only Retained Earnings in the business firm.


84


Depreciation charged and retained earnings represent the internal sources of finance
available to the company.



If the depreciation charges are used for replacing worn-out equipment, retained earnings
are used as working capital souces.



Dhanhar Exim normally retains 30 to 40 percent of profit after tax for financing growth.

Advantages of the Retained Earnings at Dhanhar Exim Pvt. Ltd.
1.

Retained Earnings are readily available internally. They do not require taking to
outsiders.

2.

Retained Earnings effectively represent effect of additional equity in the firm.

3.

There is no transfer of control when a firm relies on retained earnings.

4.

Retained earnings have an advantage of lower Tax.

3. Bank overdraft


Company sometimes takes the bank overdraft facility for the payment to the
creditors.

Allocation of funds to Different Departments: 

Dhanhar Masala Pvt. Ltd. industry providing funds to different departments in their
budgeting program.
Particulars
marketing department
wages and salary
production
employee welfare
capital budgeting

% of allocation
18
41
31
3
7


85

allocation of finance
employee welfare
3%

capital budgeting
7%
marketing
department
18%

production
31%

wages and salary
41%

Statement Showing Net Working Capital of Dhanhar Exim Pvt Ltd
Particular

2011

(A)Estimation of current Assets
Inventories
Sundry Debtors
Cash & Bank Balance
Loans & Advances
Total
Less(-)
(B)Estimation of current Liability
Sundry creditors
Provision
Total
Net Working Capital (A-B)

2012

1036536
901865
201629
569000
2709030

1464109
997917
370393
578600
3411019

1574795
159485
1734280
974750

1971952
171055
2143007
1268012


86
7. Preparation and analysis of Fund flow statements
Statement Showing Changes in working Capital of Dhanhar Exim Pvt Ltd
Particular

2011

2012

increase in

decrease

W.C

in W.C.

(A)Estimation of current
Assets
Inventories

1036536

1464109

427573

Sundry Debtors

901865

997917

96052

Cash & Bank Balance

201629

370393

168764

Loans & Advances

569000

578600

9600

Total

2709030

3411019

Sundry creditors

1574795

1971952

397157

Provision

159485

171055

11570

Total

1734280

2143007

Net Working Capital (A-B)

974750

1268012

increase in working

293262

Less(-)
(B)Estimation of current
Liability

701989

408727
293262

capital
total

1268012

1268012

701989

701989

Fund Flow Statement
Sources of fund

Amount

Application of fund

Amount

Borrowing Loans

1254500

Purchase of fixed assets

1957665

Profit from operation

102459

Purchase of investments

25032

Increase in working capital

293262

Total 2275959

Total 2275959


87
8. Internal audit policies & financial control system





Internal audit system is very important for any industry. By the audit, management
can know where the company stands. This is the best way to control and remove
deices. Management can also easily know whether they are earning profit or incurring
loss.
The balance sheet and profit and loss A/C of Dhanhar Masala Pvt. Ltd. is audited
every year at the end of the march.
An audit of Dhanhar Masala Pvt. Ltd. is conducted in accordance with auditing
standards generally accepted in India. Audit is planned and performed to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on test basis evidence supporting the
amount and disclosure in the financial statement. An audit above includes assessing
the accounting principles used significant estimates made by the management as well
as evaluating the overall financial statement presentation. Here auditing is done half
yearly.

Types of Payment to Auditor

Amount (Rs.)

Audit Fees

15000

Tax Audit Fees

5000

Other Matters

5000

Services Tax

1250

9. Accounting policies
1. Method of accounting:


The company follows mercantile systems of accounting as mentioned in the
companies act, 1956.

2. Fixed assets:


All fixed assets are recorded at cost of acquisition including installation cost wherever
applicable excluding motivate amount.

3. Depreciation:

88


It is being provided according to the companies act 1956 considering written down
value method using single shift working in respect of plant and machinery. In respect
of other assets depreciation is provided according to rates prescribed in schedule IV
of the company‟s act 1956 in case of addition during the year. Depreciation is
provided of the prorate basis.

4. Inventories:


Inventories are valued at the cost or net realizable value whichever is lower.

5. Income and expenses recognition:


Income and expenses are accounted for an accrual basis.

6. Miscellaneous expenditure:


Miscellaneous expenses are amortized over a period of 10 years.

7. Doubtful debts / advances :


Provision is made in the accounts for debts / advances that in the opinion of the
management are considered doubtful of recovery.

10. Methods to calculate Depreciation






Every company has to undertake a proper depreciation method for maintenance of
depreciation provision. Each asset in the business has its own useful life. The main
base of such useful life depends upon the period on which the assets can be used.
Because of the usage of the asset its working capacity decreases and so does the
utility price of it. This reduction in the value of an asset is known as depreciation.
With the reference to above explanation, depreciation can be understood as the
amount to be written off out of the cost price of that asset during its useful life.
According to Carter, “gradual and permanent reduction in price of an asset is called
depreciation”
In Dhanhar Masala Pvt. Ltd., depreciation is being provided according to the
companies act 1956 considering written down value method using single working in
respect of plant and machineries. For other assets depreciation is provided according
to rates prescribed in schedule VI of company‟s act 1956. In case of addition during
the year depreciation is provided on prorate basis. For income tax purpose,
depreciation is calculated as per the WDV method (Written down value) based on
taxes involved.


89
11. Analysis of P & L Account & Balance sheet by ratio analysis
A. Liquidity Ratio

No. Name of Ratio
1.

Current Ratio
=
Current Assets
Current Liability

31st March
2010-11
2140030
1734280
=1.23:1

31st March
2011-12
2832419
2143007
=1.32:1

Comment: Generally 2:1 current ratio is recommended by Government. In 2011-12
Current ratio is Higher than previous year. It implies that for every 1 Rs of current
liability, 1.32 Rs of current assets are available to meet them. It is satisfactory than
last year. but which shows that company was not able to meet its current obligations
as and when required.

2.

Liquid Ratio
=
Liquid Assets
Liquid Liability

1103494
1734280
=0.6362:1

1368310
2143007
=0.6385:1

Comment: The liquidity position of the company is also satisfactory than its
previous year. The liquid ratio in the year 2010-11 was 0.6362:1, which was
0.6385:1 in the year 2011. Company should take immediate steps to increase quick
assets.

B. Solvency Ratio
No.

Name of Ratio

1.

31st March
2010-11
3580796
8302695
=0.43:1

31st March
2011-12
4602255
9557195
=0.48:1

Debt Equity Ratio
Long Term Debt
Share holders Fund
Comment: the standard ratio is 2:1 . Dhanhar Exim Pvt Ltd debt equity ratio is

under control as it is 0.43.which represents a satisfactory capital structure of business.

8302695
9557195
Proprietary Ratio
Share-Holders Fund
13617771
16302457
Total real Assets
=0.6:1
=0.58
Comment: In 2011-12,the ratio was gone down from 0.60 to 0.58. it is recommend
2.

to increase owners fund.

3.

Fixed Assets to proprietary
Ratio
Fixed Assets
Share-Holders Fund

11426164
8302695
=1.38:1

13393429
9557195
=1.40:1


90
Comment: The ratio of a firm is greater than 1. Which means creditors obligation has
been used to acquired a part of the fixed assets.

C. Profitability Ratio
No. Name of Ratio
1.

Gross Profit Ratio
Gross profit
Net Sales

31st March
2010-11
10187495
46348941
=21.97%

31st March
2011-12
14125699
54704799
=25.82%

Comment: The GP ratio of company is higher than its precious year which shows both
selling price and cost of goods sold have changed, the combined effect being increase in
gross margin.

2.

Net profit Ratio
Net Profit after Tax
Net sales

5919147
46348941
=12.77%

8255093.6
54704799
=15.09%

Comment: The profitability is higher than last year hence it is very useful to proprietors
is shows an index of efficiency and profitability.

3.

Operating Ratio
COGS + Operating Exp.
Net Sale

41094376
46348941
=88.66%

48776778
54704799
=89.16%

Comment: The ratio was 88.66% in year 2010-11 which is slightly increase by 0.5 % in
year 20111-12.which shows company was more efficient in year 2010.

4.

Operating profit Ratio
Operating Profit
Net Sale

10187495
46348941
=21.97%

14125699
54704799
=25.82%

Comment: In 2010-11 the ratio was 21.97 % which is increased by 3.85% in year 201112.which shows company can say better position in year 2011-12.

5.

Return on Capital employed
Operating Profit
Capital employed

10187495
11883491
=85.23%

14125699
14159450
=99.76%

Comment: This ratio is higher than the last year. It implies that long term funds supplied
by the creditors and owners of the company get higher return on their investments due to
increase in operating profit.

6.

Return on Shareholders Fund
Net Profit After Tax
Share Holders Fund

5919147
8302695
=71.29%

8255093.6
9557195
=86.37%

Comment: In 2011-12 ,The ratio was higher than year 2010-11. So that Shareholder gets
high return on their investment due higher net profit than year 2010-11.


91
Activity Ratio
No.

Name of Ratio

31st March 201012

31st March 2011-12

1.

Capital Turnover Ratio
Net Sales
Capital Employed

46348941
11883491
=3.9 Times

54704799
14159450
=3.86 Times

Comment: In 2010-11 , The ratio was 3.9 times which was decrease to 3.86 times in 201112. which indicates lower profitability position in year 2011-12.

2.

Working Capital Ratio
Cost of sale
Net working capital

37518114
974750
=38.48 Times

43178541
1268012
= 34.05 Times

Comment: In 2010-11,the ratio was satisfactory than year 2011-12. Because
The ratio is decrease from 38.48 to 34.05 times which shows there was high investment in
working capital and there was less profit.

3.

Stock Turnover Ratio
COGS
Average Stock

36298429
779145.5
=46.58 Times

41883951
1250322.5
= 33.5Times

Comment: The ratio was in year 2010-11 was 46.58 times decreased to 33.5 times. Which
shows efficiency of the firm is decreased. So some steps should be taken to push sales up.

4.

Fixed Assets Turnover Ratio
Cost of sale
Net Fixed Assets

37518114
11426164
=3.28 Times

43178541
13393429
=3.22 Times

Comment: In 2010-11 the ratio was higher than year 2011-12 .so company have to required
intensive utilization of fixed assets.

5.

I. Debtors Turnover Ratio
Net credit sale
Average Debtors
II. Debtors Ratio
Months/Days in a year
Debtors turnover Ratio

11587235
901865
12.85 Times
345
12.85
=27 Days

13676200
997917
=13.70 Times
345
13.70
25 days

Comment: The debtors turnover ratio during the period 2010-11 was 12.85 times which
increased to 13.70 times which shows company received early payments from customer.

6.

I. Creditor Turnover Ratio
Net credit Purchase
Average Creditor
II. Creditors Ratio
Months/Days in a year
Debtors turnover Ratio

8272196
1574795
5.25 Times
345
5.25
=65 Days

10733808
1971952
5.44Times
345
5.44
63 Days

Comment: The creditor ratio during the period 2010-11 was 5.25times which increased to
5.44.which shows company was enjoy less credit period from supplier.

92
Highlights of Ratio
31st March2010-11

Name of Ratio

Liquidity Ratio
1. Current ratio
2. Liquid Ratio
Solvency Ratio
1. Debt Equity Ratio
2. Proprietary Ratio
3. Fixed Assets to proprietary Ratio
Profitability Ratio
1. Gross Profit Ratio
2. Net profit Ratio
3. Operating Ratio
4. Operating profit Ratio
5. Return on Capital employed
6. Return on Shareholders Fund
Activity Ratio
1. Capital Turnover Ratio
2. Working Capital Ratio
3. Stock Turnover Ratio
4. Fixed Assets Turnover Ratio
5. Debtors Turnover Ratio
6. Debtors Ratio
7. Creditor Turnover Ratio
8. Creditor Ratio

31st March 2011-12

1.23:1
0.6362:1

1.32:1
0.6385:1

0.43:1
0.6:1
1.38:1

0.48;1
0.58:1
1.40:1

21.97%
12.77%
88.66%
21.97%
85.23%
71.29%

25.82%
15.09%
89.61%
25.82%
99.76%
86.37%

3.9 Times
38.48 Times
46.58 Times
3.28 Times
12.85 Times
27 Days
5.20 Times
65 Days

3.86 Times
34.05Times
33.5 Times
3.22 Times
13.7 Times
25 Days
5.44 Times
63 Days

12. Trend Analysis And Comparative Statements

Comparative Statement of Balance Sheet
PARTICULARS
SOURCES OF FUND
SHAREHOLDERS' FUNDS:
 Share capital
 Reserves and Surplus
 Loan funds

2010-11

2011-12

absolute

Percentage

6856100
1446595
3580796

6856100
2701095
4602255

0
1254500
1021459

0
86.72088594
28.52603164

TOTAL
APPLICATION OF FUNDS:
 Fixed Assets
 Investments

11883491

14159450

2275959

19.15227604

11426164
51577

13393429
76609

1967265
25032

17.21719555
48.53326095


93
Current Assetes,Loans and
Advances:
 Inventories
 Sundry Debtors
 Cash and Bank
Balances
 Loans and advances
Total Current Assets
Less: Current liabilities and
Provisions
 Current Liabilities
Creditors For Goods
 Provisions
Total Current Liability

1036536
901865
201629

1464109
997917
370393

427573
96052
168764

41.2501833
10.6503745
83.70026137

569000
2140030

578600
2832419

9600
692389

1.687170
32.35417261

1574795

1971952

397157

25.21960001

159485
1734280

171055
2143007

11570
408727

7.254600746
23.56753235

Trend Analysis of Balance sheet
PARTICULARS
SOURCES OF FUND
 Share capital
 Reserves and
Surplus
 Loan funds

2010-11

2011-12

percentage

6856100
1446595

6856100
2701095

0
0
86.72088594 186.7208859

3580796

4602255

28.52603164

128.5260316

TOTAL
 Fixed Assets
 Investments
Advances:
 Inventories
 Sundry Debtors
 Cash and Bank
Balances
 Loans and advances
Provisions
Creditors For Goods

11883491

14159450

19.15227604

119.152276

11426164
51577

13393429
76609

17.21719555
48.53326095

117.2171956
148.5332609

1036536
901865
201629

1464109
997917
370393

41.2501833
10.6503745
83.70026137

141.2501833
110.6503745
183.7002614

569000
2140030

578600
2832419

32.35417261

132.3541726

1574795

1971952

25.21960001

125.2196


Trend

94
 Provisions

159485
1734280

171055
2143007

7.254600746
23.56753235

107.2546007
123.5675323

Comment: here trend analysis of balance sheet shows that sources of fund will
increase by 19.15% and application of fund will increase by 23.57%
Common Sized Statement of Balance Sheet


Here percentage of total sources of fund are taken as basis

PARTICULARS
2010-11
SOURCES OF FUND
6856100
 Share capital
1446595
 Reserves and Surplus
3580796
 Loan funds
TOTAL
 Fixed Assets
 Investments
Advances:
 Inventories
 Sundry Debtors
 Cash and Bank
Balances
 Loans And Advances
Provisions
Creditors For Goods
 Provisions

percentage

2011-12

percentage

57.69432568
40.39869906
30.13252587

6856100
2701095
4602255

48.42067
19.07627
32.50306

100

14159450

100

11426164 96.15157701
51577 0.434022292

13393429
76609

94.59004
0.541045

1036536 8.722487357
901865 7.589226095
201629 1.696715216

1464109
997917
370393

10.34015
7.04771
2.615871

569000 4.788155265
2140030 18.00842867

578600
2832419

4.0863017
20.00374

1574795 13.25195601

1971952

13.92676

159485 1.342071955
1734280 14.59402797

171055
2143007

1.208062
15.13482

11883491

Comment: here common sized statement of balance sheet shows that
percentage of all sources of fund compared to total of sources of fund are
decreasing in 2012 compared to 2011 % of all application of fund compared to
total are almost same in both year with minor changes.

95
Comparative Statement of Profit & loss A/c
PARTICULARS
GROSS SALE/INCOME
FROM OPERATION
Closing Stock
Net Sales/Income from
operation
short term loans
Other income
total of income
Expenditure
Consumption of raw
materials
Purchase of traded goods
Employees cost
electricity expanses
Advertisement
insurarnce exp
Depreciation
distribution expanses
packaging and labling
expanses
Other expenditure
Total Expenditure
profit before interst & tax
Interest & other
charges(net)
profit before tax
current tax tax
net profit after tax

2011
49823359

2012
58374139

absolute
8550780

Percentage
17.16219093

3474418
46348941

3669340
54704799

194922
8355858

5.610205796
18.02815301

569000
1154285
101370003

578600
1514490
118841368

9600
360205
17471365

1.687170475
31.20589802
17.23524167

32083964

34400853

2316889

7.221330257

1004820
673495
990860
690000
65000
725639
102985
426700

1378510
829740
1000900
710000
690000
765163
127890
456700

373690
156245
10040
20000
625000
39524
24905
30000

37.18974543
23.19913288
1.013261207
2.898550725
961.5384615
5.446785523
24.18313347
7.030700727

1121268
37884731
63485272
1081115

2312434
42672190
76169178
1425555

1191166
4787459
12683906
344440

106.2338353
12.63690905
19.97928905
31.8597004

62404157
74743623
12339466
21841454.95 26160268.05 4318813.1
40562702.05 48583354.95 8020652.9

19.77346798
19.77346798
19.77346798

Trend analysis of profit and loss account for year 2011-12
PARTICULARS
GROSS SALE/INCOME
FROM OPERATION
(less) Closing Stock
operation
short term loans
Other income

2011
49823359

2012
58374139

percentage
17.16219093

Trend
117.1621909

3474418
46348941

3669340
54704799

5.610205796
18.02815301

105.6102058
118.028153

569000
1154285

578600
1514490

1.687170475
31.20589802

101.6871705
131.205898


96
total of income
Expenditure
Consumption of raw
materials
Purchase of traded goods
Employees cost
Advertisement
insurarnce exp
Depreciation
expanses
Other expenditure
Total Expenditure
profit before interst & tax
Interest & other
charges(net)
profit before tax
current tax tax

48072226

56797889

18.34836017

118.3483602

32083964

34400853

7.221330257

107.2213303

1004820
673495
990860
690000
65000
725639
102985
426700

1378510
829740
1000900
710000
690000
765163
127890
456700

37.18974543
23.19913288
1.013261207
2.898550725
961.5384615
5.446785523
24.18313347
7.030700727

137.1897454
123.1991329
101.0132612
102.8985507
1061.538462
105.4467855
124.1831335
107.0307007

1121268
37884731
10187495
1081115

2312434
42672190
14125699
1425555

106.2338353
12.63690905
40.8442693
31.8597004

206.2338353
112.636909
140.8442693
131.8597004

9106380
3187233
5919147

12700144
4445050.4
8255093.6

41.98201322
41.98201322
41.98201322

141.9820132
141.9820132
141.9820132

Comment: here trend analysis of profit and loss account shows that total
income shall increase by 18.35 and total expenditure will increase by 12.63%
and net profit will increase by almost 42% and hence we can say that company
has a good growth.

Common sized statement of profit and loss for year 2011-12
PARTICULARS

2011
49823359

percentage
2012
of net sales
107.4962187 58374139

percentage of
net sales
106.707529

GROSS SALE/INCOME
FROM OPERATION
Closing Stock
operation
short term loans
Other income
total of income

3474418
46348941

7.496218738 3669340
100
54704799

6.70752853
100

569000
1154285
48072226

1.227644015 578600
2.490423675 1514490
103.7180677 56797889

1.05767686
2.76847741
103.826154


97
Expenditure
Consumption of raw
materials
Purchase of traded
goods
Employees cost
Advertisement
insurarnce exp
Depreciation
expanses
Other expenditure
Total Expenditure
profit before interst &
tax
Interest & other
charges(net)
profit before tax
current tax tax

32083964

69.2226474

34400853

1004820

2.167945973 1378510

2.51990689

673495
990860
690000
65000
725639
102985
426700

1.453096846
143.6028986
1.488707153
0.140240529
1.565599956
0.222194936
0.920625134

1.51675907
140.971831
1.29787516
1.2613153
1.39871275
0.23378205
0.83484449

1121268
37884731
10187495

2.419187959 2312434
81.73807251 42672190
21.97999518 14125699

4.2271136
78.0044727
25.8216816

1081115

2.332555991 1425555

2.60590483

9106380
3187233
5919147

19.64743919 12700144
6.876603718 4445050.4
12.77083548 8255093.6

23.2157767
8.12552186
15.0902549

829740
1000900
710000
690000
765163
127890
456700

62.884525

Comment: here common sized statement of profit and loss shows that
percentage of expenditure to net sales is almost same in both years while
expenditures are decreasing in 2012 compared to 2011 and net profit compared
to net sales in percentage is increasing in 2012.


98


99
Structure of Human resources department and Study of organization
structure company wise and department wise ( function wise
departmentation)

Board of
directors

General
manager

Production
manager

Marketing
manager

Human resources
department Head

personnel
officer

Finance
manager

personnel
manager

supervisor

clerk

 If we study the human resources department in simplified way then structure
for Human resources department can be as following.


100
HR Department
Head

Personal Manager

Personal Officer

Supervisor
Worker
Clerk
Peon

Study of basis for departmentation


The organization structure, which Dhanhar Exim Pvt. Ltd. has, is the functional
organizational structure.

Now, firstly we will see what basically a functional organizational structure is?


Functional organization structure is basically divided into several functional areas
(Dhanhar Exim Pvt. Ltd. Have 11). And the functional experts in that area, manages each
functional area.



Each functional area will serve the other entire department in the organization.



For example, purchase department will handle all the purchase of all department and the
head of the particular function will issue orders throughout the organization with respect
his function only.


101


Thus we can say that an individual in company will receive instruction from several
function heads. And every functional expert enjoys functional authority over subordinates
in any department.



Now, if you see the organization structure given in the chart, it has basic four (4) main
functional areas:1) Marketing
2) Production
3) Human resource
4) Finance



Now, it is very clear that all the departments including all supporting functional area,
Dhanhar is following functional organizational structure. Each and every department of
the company is provided or has an expert of that function suppose if you will take R&D
department, it is having the expert in mechanical technology, who will do R&D for
innovative results. We will further see that R&D department head has authority to issue
any of the subordinates (according to type of work) irrespective of which department he
belongs to. For example, Mr. Dhirubhai of R&D can ask store department clerk to issue
materials required for R&D purpose. He can ask the subordinates of production
department to come along with him and help him to do R&D work when trials has to be
conducted. In this way any functional areas head has authority over the subordinates of
other departments of other department with respect to its function only.



Apart from these four functional areas Dhanhar has following departments
1. Storage department
2. Research and development department
3. Purchase department
4. Accounting department
5. dispatching department


102
Human Resource Planning
Definition of HRP: 

“HRP includes the estimation of how many qualified people are necessary to carry out
the assigned activities, how many people will be available, & what, if anything, must be
done to ensure that personnel demand at the appropriate point in the future.”



HRP is the process of getting the right number of qualified people into the right job at the
right time. It is the system matching supply & demand of manpower.

Time duration of HRP in the Dhanhar Masala Pvt. Ltd.
Short Term Plan: 1 year
Process of Human Resources Planning

Organization Objectives & Plans

Demand for human resorces from caapacity requrinment
planning

HR Programming ( supply of human resources and filling gap of
number of employees or skils or knowledge)

actions are taken which can be interms of
recruitment, promotion, transfer , demotion or training) &
allocation and utilisation of human resources

Evalution and control


103
Human resource planning process is important to making effective planning for personnel.
The steps taken by Dhanhar Masala Pvt. Ltd. is describing below:
1. Organization Objectives & Plans


First they analysis the organizational plan it means see deeply future plan of the various
department or organization.



Here they will determine the future activity taking care of finance, marketing and mainly
production department.



If they are about to increase the level of production then they will do HRP for recruiting
more causal workers.

2. Organization Objectives & Plans


Then after they forecast demand of manpower required in future they think which type of
manpower demand is required is arise & which department and how much personnel is
required .then they find sources of manpower.



Capacity requirement planning is also used here, for example if a worker can produce
100 kg tea Masala and if company want to produce 10000 kg in a particular month and
they have to make 25 type of Masala in that month then they will require ( 10000/ 100) =
100 employees per day.



Here they don‟t have a scientific method for judging the demand, they just forecast the
future production on the basis of experience and productivity through performance
appraisal system and they determine the demand of employee.

3. HR Programming


Once the demand is decided then they forecast the supply of the manpower it means best
sources is available to recruit the employee. Then they match the demand and supply of
manpower.



Here supply can be determined through internal sources viz. promotion transfer or from
external sources like for causal workers they use consultants and contractors and some
housewives belonging to poor families.



Here they will determine the gap is well which can be in quality also or quantity also.

104


Where Surplus of hours or employee will result in to Reduced hours or causal employee



Where Shortages of hours or employee will result in to : Recruitment of causal employee.



Where for managerial executives lack of skills are filled through training by current managers
and induction training program.



Where for managerial executives surplus of skills and potential are filled through promotion
to managerial positions.

4. Action plans


Actions are taken which can be in terms of recruitment, promotion, transfer, demotion or
training) & allocation and utilization of human resources.



Here implementation of HR programming part takes place.

5. Evaluation & Control


Evaluation & Control is the final phase in the HRP process. The HR plan should include
budgets, targets & standards. It should also clarify responsibilities implementation &
Control which will enable achievements to be monitored against the plan.

 In this planning following points they take into consideration for its HR planning:


When HR needs arises.



Which type of manpower is required in future?



Source of required manpower available for the organization in future.



Is any diversification is done in the organization in short term OR in long term.

Recruitment
Definition of Recruitment


“Recruitment is the process of finding & attracting capable applicants for employment.
The process begins when new recruits are sought & ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected.”

105
Process of the Recruitment for causal workers
There are four steps for the Recruitment process of workers at the Dhanhar Masala Pvt. Ltd.,
which are below here
Planning
(number of employee and type of employee)

sources for recruitment are found
(internal or external)

searching for the causal worker

Evaluation & Control

1. Planning:


Planning is the first step of the Recruitment process. Planning‟s involves the translation
of likely job vacancies & information about the nature of the job.



Dhanhar Masala, Recruitment planning deals with the type of the employee which is
causal worker which can do day to day production and no special qualification is
required.



Here number of workers which are needed are also determined which is the part of
capacity requirement planning also.



Here according to production requirement and possibility of getting worker are taken care
off.

2. Sources of recruitment


Here Dhanhar will find out causal workers from the various sources of recruitment which
are explained in details in later part.



These sources are as following…..
a. Internal source: reference of present employees and former causal workers

106
b. External sources: walk ins and write ins, contractors, competitors, trade associations.

3. Searching


Here company searches for the causal workers from the above internal and external
sources.



Here company searches the employee and they try to convey the employees to work in
the organization for a long period.

4. Evolution and control


Evaluation & Control is necessary as considerable costs are incurred in the recruitment
process. Statistical information on the time taken for the process, salaries for recruiters,
time spent on preparing job description, job specifications, Recruitment overheads &
administrative expenses.

Process of the Recruitment for managerial vacancies

Planning
(number of employee and type of employee)

strategic Development
{sources for recruitment are found (internal or external) , make or buy decision and
technological decision}

searching and screening ( for managerial possitions)

Evaluation & Control

There are four steps for the Recruitment process of workers at the Dhanhar Masala Pvt. Ltd.,
which are below here

107
1. Planning:


Planning is the first step of the Recruitment process. Planning‟s involves the translation
of likely job vacancies & information about the nature of the job.



Dhanhar Masala, Recruitment planning deals with the type of the employee which is
causal worker which can do day to day production and no special qualification is
required.



Here number of workers which are needed are also determined which is the part of
capacity requirement planning also.



Here according to production requirement and possibility of getting worker are taken care
off.

2. Strategy Development: Once it is known how many & what type of recruits are required serious consideration
needs to given to:
i) “Make or Buy” decision


“Buy” means hired skilled workers & professionals. It employees has the advantage in
the sense that the skilled professional & labour can be the work immediately & little
training in terms of induction training may be needed.



Make decision means promoting the lower level employee to higher position and giving
them training and making them capable for higher position.



At Dhanhar, they only Buy the employee for higher positions.

ii) Where to and how to look ( Sources of recruitment)


Here Dhanhar will find out managerial workers from the various sources of recruitment
which are explained in details in later part.



These sources are as following…..
a. Internal source: reference of present employees and former causal workers
b. External sources: walk ins and write ins, contractors, competitors, trade associations.


108
iii) Sequencing the activities in the recruitment process


Company also looks at what time they have to recruit besides knowing where and how to
look for the job applicants.

3. Searching and Screening:


Here company searches for the managerial employees from the above internal and
external sources .Here company searches the employee and they try to convey the
employees to work in the organization for a long period.



Screening is to remove from the recruitment process, at an early stage, those applicants
who are visibly unqualified for the job. It screening, clear job specifications are
invaluable. Applicant qualification judged on the basis of their knowledge, skills, abilities
& interests required to do the job.

4. Evaluation & Control: 

Evaluation & Control is necessary as considerable costs are incurred in the recruitment
process. Statistical information on the cost of advertisements, time taken for the process,
salaries for recruiters, time spent on preparing job description, job specifications,
Recruitment overheads & administrative expenses.

SOURCES OF RECRUITMENT
Dhanhar use both internal and external sources which are as follow in detail.
A. Internal source


Dhanhar uses internal source when they need more employees in short period of time.

1. Relative of present employees or employees reference


It is important internal source of Dhanhar. Dhanhar use this source when it requires
argent employees for production at low cost. A major concern with employee
recommendation is that the referred individuals are likely to be similar in type to those
who are already working for the company.

109
2. Promotion and transfer
This Pharmacy often uses promotion and transfer for vacant sits. This is a good source of
internal recruitment. Promotions to hire positions are advantigable for pharmacy by various
kinds. Another way to recruit from preset employee is transfer without promotion. Pharmacy
uses it when other branch has required skill and experienced employee.
3. Former employee
Former employees are also an internal source of applicants. Some retired employees may be
willing to come back to work on part time bases or may recommend someone would be
interested in working for the pharmacy.
B. External sources
External sources far outnumber the internal methods. Specifically, sources external to a
pharmacy are:
1) Advertisement


Advertisement is one of the important source of recruitment of Dhanhar Exim Pvt ltd.
Company use newspaper and FM Radio as a tool of advertisement.
1. Newspaper ads are very useful because it give a brief outline of the job and this ads
are used to recruit executive employee and These people are always read news paper
so news paper is effective for recruit executive employee.
2. FM Radio is useful for recruiting causal employee and unskilled employee. Because
it may be possible that, they may not read ads in newspaper so that‟s why company
gives ads in FM radio for recruiting casual worker.

2) Consultants and Labour Union


In Company, labour unions are being used as source of recruitment for lower level job.
Many such union leaders are cooperative and constructive can be promoted to
supervisory role. Unions are asked to make recommendations for employment of people
as a matter of goodwill and cooperation.


110
3) Gate Hiring


Gate hiring is quite useful and convenient method in company when large number of
such people may be required by the company. Company uses this source for unskilled
and semiskilled worker.

4) Walk ins, talk ins and write ins


Many time Dhanhar gets Walk ins, talk ins and write ins for various jobs which can be
through personal visit, telephonic transaction or letters and when company feels the need
of employee they use these sources.

Selection
Meaning of selection: 

Selection is the process of picking individuals (out of the pool of job applicants) with
requisite qualification & competence to fill jobs in the organization.



The objective of selection process is to determine whether an applicant meets the
qualifications for a specific job & to choose the applicant who is most likely to perform
well in that job.



Selection is the most important process of the any Company and Industry. Selection is the
base of choose best workers and employment for the Industry.

Process of the selection at Dhanhar for managerial positions:
There are five types of the Recruitment process uses in the Dhanhar Masala Pvt. Ltd., which
are below here:


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Preliminary Interview

application blank
Selection Test ( situation and projective test)

Employment Interview ( panel interview in mostly case)
Reference Check
physical examination( to avoid labour turn over and absentism)
job offer for six months
employement for permenant basis
1. Preliminary Interview:


Preliminary Interview is the first step of the selection process in Dhanhar Masala.



It helps in rejecting undesirable and unqualified candidates.



Here necessary information of employees about education, skills, experience and
expected salaries etc. are taken.



It will help in determining whether it is worth wile for a candidate to

fill up the

application form or not.


Preliminary interview helps in rejecting misfits for the job, which did not appear in the
application forms.

2. Application blank


When employees come for job or apply for the job, he has to fill one blank form which
includes all basic details about him. This form is known as application blank. By this


112
form company collect basic detail about applicant. H R Manager analyzes that form and
selects some applicant for further process.


This form include following item:
i.

Name

ii.

Address (permanent residential address)

iii.

Address (native place address or address of person who gave the referance)

iv.

Contact no. of both addresses

v.

Educational qualification

vi.

Work experience

vii.

Physical features like height, weight etc

viii.

Where he worked last (address)

ix.

Expected salary

3. Selection test:


Generally test is used to determine the applicant‟s ability, aptitude and personality.
Different type of tests is taken in Dhanhar Masala, which are as follow.
a. Situation test: based on situation handed to candidate and rating them on the based
on the performance.
b. Objective test
c. Behavior test: The attitude and behavior is also check along with work test. During
the days of work test applicant‟s behavior is supervise by assistant manager (HR).
How applicant is behave with other employee, Nature of applicant, Attitude, etc. are
check during behavior test.

4. Employment Interview:


An interview test is conducted at the beginning and at the end of the selection process.
The emphasis here is on the latter .Different types of interview in the Dhanhar Masala
Pvt.Ltd Which are as follow.
a. One to one interview
b. Panel Interview which includes panel of members from top management.


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5. Reference Check:


Reference check is the most important step in the selection process. Many employee
request name, address and telephone No. of reference for purpose of verifying
information and perhaps, gaining additional background information on an applicant.

6. Physical Examination:


In this step, Physical Examination of applicant is carried out to ascertain his physical
fitness for the job .It will reduces the rates of absenteeism, accidents, & labor turnover.
The result of medical fitness test is recorded in a statement preserved in the personnel
records.

7. Job Offer for six months:


After Physical examination, a list of suitable applicants is prepared. The list is sent to the
line manager who required the personnel. He offer right job to suitable applicants. An
Applicants formally approved by the manager concerned are appointed by the issuing
appointment letter.



Here job is offered for six months and are under the strict observation.

8. Job Offer for six months:


Here if performance of worker is found satisfying in 6 months and if employee is also
ready for job then he is offered the job for permanent time.

Selection procedure of causal Workers


From All the applications it receives, the personnel manager will screen out inappropriate
candidate on the basic of criteria they have formed. Generally criteria for worker
selection include as through which person, the candidate has come past jobs, past records,
qualifications and experiences etc. From all applications after screening out, personnel
manager will call the candidate to the company, may 4-5 persons a day but basically
depends upon the circumstances.


114


Personnel manager and one of the directors will take informal interview with workers.
But mainly selection of workers depend upon his practical knowledge and how efficient
he is on the specific job so the candidate is required to do some job on particular machine
after giving some instruction. If he will be able to give results as desired or according to
criteria set by personal manager. So the candidate satisfies all the criteria, he will get the
job, and afterward also up to one month they will see the performance of worker and if
found satisfactory, he will continue on the job otherwise may reject the person.



So we can have general steps for selection process for non technical staff.

general
application
recieved

screening

informal
interview

job offer for
permenant basis

job offer for 1
month

practical testing
of worker on a
machine

Documents Related to Recruitment and Selection
Dhanhar have following kind of document for recruitment and selection:


Application blank



Wages structure



Appointment letter



Agreement between company and employee


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Job Description:

Job Description is a written statement showing job title, tasks, duties and responsibilities
involved in a job. It also prescribes the working conditions, hazards, stress that it can
produce and the relationship with other jobs. Flippo has defined job description as
follows.



“A job description is an organized, factual statement of duties and
responsibilities of a specific job. In brief, it should tell what is to be done, how
it is done and why. It is a standard of function, in that it defines the appropriate
and authorized content of a job.”



At Dhanhar Masala, H R Manager is not prepared any kind of documents related to job
description. He just gives as brief idea about tasks, responsibilities, working condition,
and facility.

A. Job description for Human resources manager
1. Job Title: Human Resources Manager
2. Reports to: General Counsel
3. Department: Legal/Human Resources
4. Division: Administration
5. Salary Grade: I
6. Package Plan plus: Yes
7. Salary : 400,000 per a.n.m
8. Working days: 6 days in a week
9. Working hours: 11.00 A.M. to 5 P.M.
10. Position summary:


The Human Resources (“HR”) Manager has overall responsibility for the HR
function as it relates to all CA team members, including employee relations,
compensation and benefits administration, development, implementation and
administration.


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

Human resources programs and employment policies, personnel record-keeping,
workers compensation and team member safety issues, training and workforce
development, and compliance with HR laws and regulations.



Employment policies in the contexts of hiring, discipline, employment termination,
training, compensation, benefits, leave, equal opportunity and other human resources
issues. The HR Manager must be open and available to discuss human resources
matters with the entire workforce.

11. JOB RESPONSIBILITIES:


Maintain knowledge of and ensure compliance with employment-related laws and
regulations.



Manage actions and proceedings brought against Dhanhar arising in connection with
employment, benefits and workers compensation issues.



Maintain all personnel files, ensure DHANHAR is in compliance with all laws and
regulations and demonstrates “best practices” in regard to personnel information
management.



Provide leadership in effective conflict resolution for all personnel.



Work with senior management to craft consistent, equitable and competitive
compensation and incentives.



Serve as a resource for team leaders in handling employee issues and assist them in
counseling employees, conducting evaluations, staff training, problem-solvingand
consensus-building.



Serve as a resource for all team members by being available and accessible to discuss
all human resources related issues.



Oversee the Organizational Development & Training function and develop employee
training programs.



Maintain inter- and intradepartmental work flow by providing information to and
Cooperating with co-workers.



Assist in hiring by providing job descriptions and advertisements.



Develop, implement and participate in employee recognition programs.


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

Enhance job performance by applying up-to-date professional and technical
knowledge gained by attending seminars and conferences and reviewing professional
publications.

B. Job description for marketing manager
1. Job Title: Marketing Manager
2. Reports to: Department Head of Finance, HR and Production
3. Department: marketing/ sales
5. Salary Grade: I
7. Salary : 370,000 per a.n.m
10. Responsibility


Develop pricing strategies, balancing firm objectives and customer satisfaction.



Identify, develop, and evaluate marketing strategy, based on knowledge of
establishment objectives, market characteristics, and cost and markup factors.



Evaluate the financial aspects of product development, such as budgets, expenditures,
research and development appropriations, and return-on-investment and profit-loss
projections



Formulate, direct and coordinate marketing activities and policies to promote
products and services, working with advertising and promotion managers.



Direct the hiring, training, and performance evaluations of marketing and sales staff
and oversee their daily activities



Negotiate contracts with vendors and distributors to manage product distribution,
establishing distribution networks and developing distribution strategies



Consult with product development personnel on product specifications such as
design, color, and packaging. And Compile lists describing product or service
offerings.

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

Use sales forecasting and strategic planning to ensure the sale and profitability of
products, lines, or services, analyzing business developments and monitoring market
trends.



Initiate market research studies and analyze their findings.



Conduct economic and commercial surveys to identify potential markets for products
and services.

11. Activities


Making Decisions and Solving Problems -- Analyzing information and evaluating
results to choose the best solution and solve problems.



Selling or Influencing Others -- Convincing others to buy merchandise/goods or to
otherwise change their minds or actions.



Communicating with Supervisors, Peers, or Subordinates -- Providing
information to supervisors, co-workers, and subordinates by telephone, in written
form, e-mail, or in person



Processing Information -- Compiling, coding, categorizing, calculating, tabulating,
auditing, or verifying information or data.

C. Job Description for Finance manager
1. Job Title : Finance Manager
2. Reporting To : Department head of Marketing, HR and production & purchase
3. Department : Finance & accounting
5. Salary Grade: I
7. Salary: 390,000 per a.n.m
10. Responsibility


119


Develop and analyze information to assess the current and future financial status of
firms.



Evaluate data pertaining to costs in order to plan budgets.



Oversee the flow of cash and financial instruments.



Prepare financial and regulatory reports required by laws, regulations, and boards of
directors.



Communicate with stockholders and other investors to provide information, and to
raise capital



Analyze and classify risks and investments to determine their potential impacts on
companies.



Examine, evaluate, and process loan applications.



Review collection reports to determine the status of collections and the amounts of
outstanding balances.



Review reports of securities transactions and price lists in order to analyze market
conditions.



Submit delinquent accounts to attorneys or outside agencies for collection.

11. Activities to be performed


Prepare monthly management accounts for the organisation and individual depots,
including variance analysis



Supervise bank reconciliations, petty cash, expenses



Supervise VAT quarterly returns,



Assist in preparing yearly budgeting and cash flow forecasts



Assist in preparing draft yearend financial accounts prior to audit



Maintain and develop sound accounting systems.

D. Job Description for Accountant
1. Job Title

: Accountant

2. Reporting To

: Head of Finance department

3. Department

: Finance

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4. Time

: 10 A.M to 6 P.M

5. Working Days

: 6 in Week and Holiday on Sunday

6. Salary

: 10000 to 18000 per month

7. Salary Grade: II
8. Package Plan plus: No
9. Responsibility and Duties:


Prepares asset, liability, and capital account entries by compiling and analyzing
account information.



Documents financial transactions by entering account information.



Recommends financial actions by analyzing accounting options.



Summarizes current financial status by collecting information; preparing balance
sheet, profit and loss statement, and other reports.



Substantiates financial transactions by auditing documents.



Maintains accounting controls by preparing and recommending policies and
procedures.



Guides accounting clerical staff by coordinating activities and answering questions.



Reconciles financial discrepancies by collecting and analyzing account information.



Secures financial information by completing data base backups.



Maintains financial security by following internal controls.



Prepares payments by verifying documentation, and requesting disbursements.



Answers accounting procedure questions by researching and interpreting accounting
policy and regulations.



Complies with federal, state, and local financial legal requirements by studying
existing and new legislation, enforcing adherence to requirements, and advising
management on needed actions.


121


Prepares special financial reports by collecting, analyzing, and summarizing account
information and trends.



Maintains customer confidence and protects operations by keeping financial
information confidential.



Maintains professional and technical knowledge by attending educational workshops;
reviewing professional publications; establishing personal networks; participating in
professional societies.



Accomplishes the result by performing the duty.



Contributes to team effort by accomplishing related results as needed.

E. Job description for Computer Operator
1. Job Title : Computer operator
2. Reporting To : Head of Finance department, Production department
3. Department : Finance and production
4. Time : 10 A.M to 6 P.M
5. Working Days : 6 in Week and Holiday on Sunday
6. Salary : 7000 to 12000 per month
7. Salary Grade: III
8. Package Plan plus: No
9. Responsibility and Duties:


Oversee maintenance and operation of computer hardware systems.



Control console of mainframe digital computer or set of minicomputers.



Set controls on computers and peripheral devices.



Maintain logbooks or records for job runs.



List malfunctions that occur during shift.



Perform maintenance tasks such as checking for viruses, backing up tape, upgrading
software, and other basic maintenance.



Assist programmers and analysts with testing and debugging new programs.

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

Monitor systems remotely.



Locate and solve other malfunctions.



Load files onto storage media.



Help network administrators ensure network connections are in place.



Ensure network and servers are functioning properly.



Connect computer peripherals for users.



Help new employees get their computer running.



Clear equipment at end of operating run and review schedule.



Notify supervisor or computer maintenance technicians of equipment malfunctions.



Retrieve, separate and sort program output as needed, and send data to specified
users.

Job specification:

Job specification is also known as man or employee specification, is a statement of
minimum acceptable qualities required in a job incumbent for the effective performance
of the job. In contrast to job description which provides various features of the job, job
specification specifies various feature of the job holder.



Flippo has defined job specification as follow: “Job specification is a statement of
minimum acceptable human qualities necessary to perform a job properly ….. It is a
standard of personnel and designates the qualities required for acceptable performance.”

A. Job specification for Human resources manager
Educational qualification, experience


Master‟s degree in HR Management or related discipline required; Master‟s degree
preferred.



At least 5 years of professional experience across all HR disciplines, including
employment, benefits, compensation, employee relations, training and development,
workers compensation and conflict resolution.



Experience working with a diverse workforce.



Fluency in English as a second language preferred.


123
B. specification for marketing manager


Master‟s degree in Management specialized with marketing or related discipline required;
Master‟s degree preferred.



At least 5 years of professional experience and Knowledge of principles and methods for
showing, promoting, and selling products or services. This includes marketing strategy
and tactics, product demonstration, sales techniques, and sales control systems.



Knowledge of administrative and clerical procedures and systems such as word
processing, managing files and records, stenography and transcription, designing forms,
and other office procedures and terminology.



Experience and knowledge of principles and processes for providing customer and
personal services. This includes customer needs assessment, meeting quality standards
for services, and evaluation of customer satisfaction

C. specification for Finance manager


Ideal candidates will have a formal accountancy qualification (full or part qualified) from
a recognized accountancy body.



A minimum of five years experience in a similar role.



Excellent Excel, QuickBooks and MS office skills.



Knowledge of economic and accounting principles and practices, the financial markets,
banking and the analysis and reporting of financial data.

D. specification for computer operator


Educational qualification includes any bachelor degree in management or commerce. for
eg Bcom or BBA or Mcom.



Should know operating current version of Tally.



No experience are required, fresher‟s are also welcomed.

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E. specification for Accountant


A minimum of a Bachelor‟s Degree with an emphasis in accounting.



At least two years of experience in the area of financial statement preparation, budgeting,
payroll, purchasing, accounts payable, and accounts receivable, or the equivalent.



Experience working with an automated financial management system.

Performance Appraisal System


A failure in the life general and acceptable but not to correct the mistakes is a big
mistake. So in this way performance appraisal is very necessary in order to find out the
mistakes we have done i.e. we have to appraisal performance, and make it on the right
path before it too late.



So shell we see what really performance appraisal is in the human resource system of
company? Performance appraisal is basally a systematic evaluation of the individual with
respect to his or her performance on the job and his or her potential for development.



Today Dhanhar have too much of competition and one mistake can make Dhanhar out of
market.



Dhanhar has following system for performance appraisal.

Process of the Performance Appraisal
There are Six types of the Recruitment process uses in the Dhanhar Masala Pvt. Ltd., which
are below here:


125
Establishing Performance Standards ( which are different for sales
person and production workers and executives)

Communicating the Standards (informed to respective department
and employees)

Measuring Performance

Comparing the Actual with the Standards ( comparision with other
employees are also done)

Reasons for deviations are found and discussion for the Appraisal

Taking Corrective Actions are taken by improving standard or puting
right placement or improving the situation
1. Establishing Performance Standards


Dhanhar Masala has determined the following performance standards…..



These process starts with setting performance criteria to be used for appraising the
performance of employees. The criteria are specified with the help of job analysis which
reveals the contents of a job. These criteria should be clear, objectives in writing.



The employee must have to come timely and employee has to follow the rules made
by the company and government. Employee not goes outside the plant or site without
the permission of his superior or authority. In the organization this rules touch every
person who work in the firm.

Performance appraisal criteria for Dhanhar employees
PARAMETERS
Points to be considered


126
Quality of work

Least number of errors identified.

Attendance

Time keeping:
Shift timing (Dhanhar Masala Pvt. Ltd. has only one shift
that is day shift and time is: 9 a.m. to 8 p.m.)
Break(12.30 to 1.30 p.m. lunch break)

Customer Focus

1. Subject knowledge/Knowledge of project
2. Aware of client requirement.
1) Behave in a professional manner at work place and

Discipline

follows company‟s policies.
2) Busy with own work and not leaving the chair.
3) Dress code.
4) Maintaining office discipline like putting off light and
AC when not in use.

Responsibility

1) Take responsibility of work execution.
2) Completion of targeted work in time.
3) Setting target.

Take Initiative

1) Take initiative at work
2) Generation of new inquiry and getting new work
order.

Leadership skill

1) Inspires and motivates team member and juniors.
2) Work planning and organizing abilities.
3) Ability to develop team member/juniors
4) To create positive work environment

Communication skill

1) Is able to understand and communicate in appropriately
with all levels of the organization.
2) Talking politely.


127
3) Attempt to talk in English.

2. Communicating the standard


The parameter set by manager is communicated with employee and examiner. If there
is any problem with parameters and need to improve than send back to H R Manager
and improve it. Well communicated parameter is helpful to making performance
appraisal process prefect. If the parameter is communicate than employees can know
that how they have to behave.

3. Measuring the performance


Performance is measured according to the parameters set by specialist. Production
manager note down the data received actually in the form in which the standard is
already written. He put the original data in front of the standard.



Here performances are measured in such way that it can be measured with other
employees also. For example kilograms of tea Masala produced by employee X.

4. Comparing actual performance with the standard


The data received actually is compare with the standard data. If it is less than standard than the
performance is not good and vice versa.



Here performances are measured with other employees also.

5. Reasons and discussion


Here reason for deviation is found and whose mistake was it. For example break in
machinery was problem or wrong methodology of worker etc can be a reason.



Here whatever reason is found then discussed with employees and if needed then it is
discussed with top management is well for training purpose or purchase of new
technology.

6. Correction

128


When the result is achieved, the result is needed to communicate with employee.
There is meeting between employee and examiner or H R Manager, he tell the result to
employee. If the result is bad, than examiner give guidelines to improve the
performance in positive manner.



Here if problem with standards are found then standards are improved.

PERFORMANCE APPRAISAL FORM
DHANHAR EXIM PVT LTD


Employee Name:



Department:



Designation:



Date and time:



Name of the appraiser:

Sr.No.

Parameters

Excellent

Very

Good Average

Good
1
Quality of work
2

Attendance

3

Customer Focus

4

Discipline

5

Responsibility

6

Take Initiative

7

Leadership


Poor

Remarks
if Any

129
8

Communication
Skill

9

Dependability

10

Other curricular
activities

Total Rating

Sign of the appraiser:
Sign of the worker:


Note: Here for managers and employees same form is used and if some parameter is
not related to that job it is kept blank.

Employee Welfare activities


Welfare activities, before 20 years was never priorities for the companies. Their only aim
was to earn maximum bucks and human talents are just more the source likes raw
material, technology etc., which they exploit as much as they can and make fortune for
their companies. They believe employee according to „x‟ theory.



But in 1990s, whole scenario was changing, global and the companies soon to realize the
power of human assets and how motivated human assets can change their fortune for the
company. So the companies stated investing more in building human assets by providing
various incentives, welfare activities etc. because of employee is able to give its 100%
output to company.



So, that is how welfare activities for employees marks fortunes for the company, what
welfare activities its employee to retain its no-1 position at Dhanhar Masala Pvt. Ltd.,
which are as following

1. It is providing cold and fresh drinking water from the better, the production area for
the workers and even they are purchasing 30 litters can of mineral water for its

130
workers at AshwiniKumar layout and 10 litters for staff members and customers at
Bhagal administrative office.
2. Proper ventilation space is providing in each department in the organization.
3. Group mediclaim has been taken by Dhanhar Exim Pvt. Ltd for uncertainties in the
factory premises. Even they have taken ESI (employee state insurance) for in staff
member.
4. PPF for its staff member is also given by the company. Who has the salary lees than
Rs.7500. it cuts salary of these people by 12.5% and adds the same from their side?
5. For safety, the company has provided first aid kit for its workers in each department.
6. For the social upliftment of the worker‟s family, they even provide notebooks and
stationary free of cost every year.
7. For sales persons they provide two wheelers for taking orders and receiving
payments.
8. They have provided the reliance mobile to mostly all the staff members for internal
talk.
9. Provide good condition of equipment and also provide better environment
for work.
10. Company provides individual changing room and a common rest room.

Employees records kept
1) Attendance records
2) Wage and salary register
3) Recruitment and selection related records
4) Training and development record
5) Compensation details
Training and development


As we already know the basic difference between the training and development i.e.
Training is given to employee for doing specific job by giving knowledge of specific
skills and development on the other means overall increase in talent, so that employee

131
can handle any future jobs, which marks its future bright. So, there is vast difference
between training and development. Generally training is given at the workers level,
where one just requires specific skill for completing a specific task. But development is
needed at the executive level, where one has to live in dynamic and ever-changing
environment, so today every company are investing heavily in training and development
of employees as they have realized that what is needed to on the pinnacle of this world.


Now we will see how Dhanhar Exim Pvt. Ltd. is satisfying the training and development
needs of its employees.



At the workers level, they are not recruiting any person from outside for the training of
workers. They basically rely on existing workers. Which is the workers level from quite
some years to give training to fresher workers, on in charge of that particular work will
give training to the new worker. But for specific requirement they even higher
professionals for the training of their workers. For e.g. they will hire the person to train
the workers of Dhanhar Exim Pvt. Ltd .



If we talk about staff members‟ particularly technical side and management side fresher
are given training by the senior members some time higher professionals, if they found
necessary. Time period for training of new entrants is generally 7 to 10 days.

How training needs are identified for existing employees?


Training: - the very important aspect for developing a specific skill mostly the worker
for workers class but that is doesn‟t mean that staff member or management people don‟t
required any training.



We will see now how Dhanhar Exim Pvt. Ltd. is identifying the training needs and how
they will fulfill it.
1) When the wastages in some section increase than the prescribed limit them they
identify the worker from the document they keep and if required, they offer training,
mostly from senior people.
2) When the work of some document because slow then they will try to find out the
reason behind it (reasons may faulty method of working, workers laziness, worker,
inefficiency etc.) and give training properly.


132
3) Now coming on to the management employer, it management employer found that
managerial worker is not working efficiently for e.g. the some head is not able to deal
with the problem for task effectively. Then management try to solve this problem by
giving required training and sometimes even that person will ask the management that
he went such and such training for the development of his skills. For e.g., that if
purchase manager of Dhanhar Exim Pvt. Ltd., is not able to negotiate price with the
supplier effectively and purchasing products at higher prices. So the management will
hire a professional for developing his negotiation skills or they will send him to search
type of training programs or seminars etc.
So this now training need are identified and solved by Dhanhar Pvt. Ltd. which can be
summarized as following
1) When quality level will not maintained.
2) There is conflict between employees.
3) New technology is coming.
4) Install new machinery.
5) Need to increase the productivity.

Induction Training


Induction or orientation program is held in the Dhanhar Exim Pvt Ltd whenever new
employee has to undergo 2 to 3 days induction training. In case of worker joining the
company, supervisor undertakes 3 to 4 days induction training. Worker is given
guidelines about the company rules and regulation and also he is given training about
how to operate the machine. Induction or orientation program, at officer level, is
undertaken by the manager of concerned department. Manager gives guidelines about the
policies of company and manager introduces employee to training to their subordinate.



The following step is followed by HR Manager during induction training.

1) Meet the new employee in his office personally
2) Give them necessary detail about the organization
3) Understand them the rules and regulation of the organization
4) Take him to his superior and subordinate and introduce him (employee) with them

133
5) Provide him tools and other necessary item

Following details are given to the new employee
1) History of Dhanhar Masala
2) Name and designation of managers
3) Employee‟s designation and responsibility
4) Layout of department
5) Production and other processes of Masala making.
6) Job duties, location, tasks, objectives etc
7) Safety steps
8) Employee benefits such as pays, holidays, welfare activities
9) Introduction to superiors, coworkers and other staff

LABOUR RELATION


As know by every one employer are the most valuable assets of the company and they
works in a group and where there is a group, these comes communication interaction and
this creates relations, rather good or bed. Relation is every company needs to be very
good and mature to make company reach at the acme of success.



As we already said earlier that Dhanhar Exim Pvt. Ltd. is small-scale unit, they have
around 100 workers and 50 staff members, so they don‟t have any trade union or any
such association in the organization.



Now, we quickly move on to the topic of labour relation, labour relation basically means
the relation between the management (employer) and worker (employee). But if see it in
broader aspect, state is also involved which protects and interests 5 of both employees
and employers by making some rules and policies etc.



So, we will see, as usual, in the context of Dhanhar Exim Pvt. Ltd. seeing the fantastic
relationship between the management and employees may flabbergast one. We think that
it might not be true, so we will like o give you one e.g., which we have observed, in
factory premises. There was water tank, and management person has just taken the glass
of water and when worker from production department came, the first give a glass of
water to the worker and put one‟s arm on his shoulder. This is the only one example we


134
have discussed there are lots of such example of this kind. So we can say that from this
discussion that management people are very cordial in dealing with workers.


Another reason for the excellent relationship can be attributed to the background of the
workers. As being from some religion, there is very less conflict among them. Most of
the workers at here are from „Patel‟ community and basically from same society so they
better understand each other‟s need.



Thus, the entire staffs of this company are very co operative with each other like family
member.

Objective of industrial relationship at Dhanhar Exim
o Develop a sense of co-operation.
o Develop commitment and sense of belongingness.
o To protect and safe guard the interest of labour as well as management.
o To promote and maintain industrial peace and harmony.
o To ensure and establish industrial democracy.
o To increase production as well as productivity.
o To improve living standard of workers by pay of fair wages, benefits and provision of
better living and work condition.

Promotion and demotion policy
Promotion


Promotion refers to a higher post carrying greater responsibilities, higher status and best
salary. It is the upward movement of an employee in the organization‟s hierarchy to
another job commanding greater authority, higher status, and better working condition.



In Dhanhar Masala promotion is done on seniority plus work or merit basis. The worker
who has worked minimum 5 years and who performs well, work efficiency is good will
be promoted as motivation.



Promotion is mainly done as increase salary if the vacancy in higher post than employee
will be promoted on higher post.


135
Promotion in Dhanhar Masala 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 increase in salary
3) 10 % bonus salary every year



If the employee is good, hard working and have more ability than he will be promoted
but he must be 5 year senior.



If there is no vacancy in higher post than promotion will done as increase in salary.



Every employee gets 10% extra of salary every year as promotion.



Promotion will be done by proper analysis of annual data of employee, work record,
behavior, etc.

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:
1) If the quality of work done by employee is very poor after training also not
improving.
2) If he will not regular, here Dhanhar allows 4 leave in a month and if a worker
breaks the limit of 4 leave for 3 times in a year then he/ she will be demoted.
Here Dhanhar has made demotion policy but they don‟t believe in demotion.

Wage and Salary Administration


Wages represent hourly rates of pay & Salary means monthly rate of pay, irrespective of
the number of hours put in by the employee. Wages and Salaries are subject to annual


136
profit. They differ from employee & depend upon the job – nature, seniority & merit.
Wages & Salary, both are part of Components of Remuneration.
There are three policies of the Wages, Which are below here:
 Minimum Wage
 Fair Wage
 Living Wage


A minimum wage should provide for workers family, for his efficiency, for the
education of his family, their medical cure. Minimum Wage 3000 at the Dhanhar Exim
Pvt. Ltd.



A fair wage should provide for productivity of labour, place of industry in the economy
of a country, prevailing rates of wages. Fair Wage 4000 in the Dhanhar Exim Pvt. Ltd.



A living wage should provide for forms the basis for fixing minimum wage, capacity of
the industry to pay. Living Wage 6000 in the Dhanhar Exim Pvt. Ltd.

There are two methods of the Wage Payment, which are uses in Dhanhar Exim Pvt.
Ltd.


The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure and an equitable labour cost structure.



At Dhanhar Exim Pvt. Ltd. The wage and salary administration according to both „Time
Wage System‟ and „Piece Wage System‟. For the workers, it applies piece wage system
and for the administration staff, it applies time wage system.

Methods

Depended

Time Wage

Depended on the time for Administration Executives

Piece Wage

Depended on the piece (unit) for Workers


137
Wages and Salaries structure in the Dhanhar Exim Pvt. Ltd.:


Company‟s wages and salaries are paid by incentives and also called payment by result.
Incentives are depend open the productivity of the employee.



Here a worker have to produce minimum 1000 pieces a day and 2000 pieces are the limit
for the time wage system and number of pieces produced above 2000 units are paid 1
rupee for 1 unit.

Productivity of workers

Salaries

1000 to 2000 units

3000

2000 to 3000 units

4000

3000 to 3500 units

4500

3500 to 4000 units

5000

4000 to 5000 units

6000



This is a structure of paying salaries in the Dhanhar Masala Pvt. Ltd.



Fix grade salary system is applicable for the employees like managers,human
resource and account department staff, security, peons and cleaning staff.

Employees

Salary Level* (Rs. Per Month)

Departmental Manager

25,000 – 35,000

Computer Operator

6,000 – 9,000

Security Staff

4,000 – 6,000

Peons

4,000 – 6,000

Cleaning Staff

4,000 – 6,000


138
Compensation packages


Compensation function is refers to providing & fair remuneration to employees for
their contribution to the attainment of organizational objectives



At Dhanhar Exim Pvt Ltd, The pay package of executives and employees consist of
several components of compensation are such as follow.

1. Basic Pay:


The primary part of pay package in Dhanhar Exim Pvt ltd is same for executives and for
workers. That is Basic Salary for Administrative Executives.



Basic wage are provided on work done (piece wage system), for lower level and
unskilled employees



For Administrative Executives and managers Basic pay is fixed salary based on time
wage system.



Company pays basic salary and wage based on relative worth of job.

2. Bonus:


At Dhanhar Exim Pvt ltd , Every employee is paid with a minimum bonus of 8.33% of
the basic salary of an employee and the bonus is to be paid within 6 months from the
close of the accounting year.



Some bonus amount is also given at the time of Diwali

3. Allowances:


In Dhanhar Exim Pvt Ltd, mainly two types of allowances are paid in addition to Basic
pay.



Conveyance Allowances: Dhanhar Exim Pvt ltd also pay conveyance allowances to those
employees who go for out of city or in intra city for business purpose.

4. Incentive:


At Dhanhar Exim Pvt Ltd Incentive compensation system is performance linked
remuneration paid with a view to inspire employees to work hard and do better.


139


In starting of shift, Company decide some target to employee, those employees are
successes to achieve target, these employees are able to get incentive if not they are not
able to get incentive.

5. Fringe benefit:


At Dhanhar Exim Pvt. Ltd. also provide fringe benefit for such top employee these
benefits are as follow.
1) Provident fund
2) Gratuity
3) Medical care
4) Hospitalization
5) Accident relief
6) Health and group insurance

Incentive system
Concept of incentive


Incentives are given in this competitive world to retain the employ in the organization,
which was not the trend in the past. Incentives are the reward received by a worker who
is performing extra to what other is performing. It gives the motivation to the employees
to more efficiently and effectively.



Incentives are depend open the productivity of the employee.



Here a worker have to produce minimum 1000 pieces a day and 2000 pieces are the
limit for the time wage system and number of pieces produced above 2000 units are paid
1 rupee for 1 unit.
Productivity of workers

Salaries

Productivity of workers Salaries

1000 to 2000 units

3000

3500 to 4000 units

5000

2000 to 3000 units

4000

4000 to 5000 units

6000


140
3000 to 3500 units


4500

Here at Dhanhar 8.33 % bonus to the workers are also given on their basic salary.


141
Conclusion and summary
Improvements and suggestions
By this project we understand the perfect scenario of the Dhanhar Exim pvt ltd. So by our
experience in the company we are giving some suggestions to the company for more
improvement.


The standard of the salary paid to the employees would be increased. So that it
becomes motivate for the employees. Specially for production and lower level
employee.



The company is not having good knowledgeable people and not employees who have
high degree and also not experienced person.



Company should try to focus at saurasta region for expansion.



The company should increase the advertisement to increase the sales volume.



Proper transportation should be provided to deliver raw material and finished
products as they are mainly using manual equipments.



Packaging should be made very attractive.



One person is the head of two departments and there are two heads in each
departments and hence confusing.

The company has a strong vision and ability to stand properly in the time of recession. Their
all managers are very experienced and familiar with the company.
Company is also giving more importance to safety of the employees. They also provides the
facilities of residence and transportation to their employees. They are also the followers of
the government rules and regulations.
It was a great and unforgettable experience for us to do our training in “Paras Dhanhar
Exim Pvt Ltd.” The Managers and the administrative staffs gave a very good guidance in
their field.


142
Bibliography:
The following are the list of books referred:
 B.S.Shah –Management Accounting S.Y B.B.A

 B.S.Shah – Financial Management S.Y.B.B.A
 Production and Operation Management Notes of Mr. Ojas Desai
 Marketing Management by Philip Kotler 13th edition.
 Human Resource Management by Aswathappa 13th edition.
 Human Resource Management by C.B Gupta
 Annual reports of The Dhanhar Exim year 2009-2010, 2010-2011 and 2011-12
The following are the web sites and links:
www.Dhanharmasala.com
www.yellowpages.com
www.Tradeindia.com


143
Annexure


144


145


project report on dhanhar exim by sunny gandhi and sunil ambolikar

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project report on dhanhar exim by sunny gandhi and sunil ambolikar