PREFACE

A practical study is an important part of the syllabus of a BBA-III semester program. It gives us an opportunity to relate theoretical knowledge with real corporate situation. It also helps to improve our analytical skill, communication skill, and knowledge.

We have done the project on Industrial Training of BAJAJ Tiles. This project is totally based on secondary data. We have gathered information about Finance Department and other organizational processes from the company itself and from the Internet. In this project, we have tried to analyze financial situations in context of ratios and different organizational processes of BAJAJ Tiles.

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ACKNOWLEDGEMENT

Practical training is one of the most important requirements in B.B.A. through this acknowledgment. I express our sincere gratitude towards all those people helped in the preparation of this project, which been a learning experience. I am thankful to owners of the company and Accounts manager Mr. _________________ for spending his valuable time with me and providing necessary information required. I am also thankful to Mr. ____________ for granting me permission. I am also thankful to staff for their cooperative behaviour. I am also thankful to our college authorities for conducting this training. I would sincerely thank our principal Prof. Krishanaraj Chudasma for imparting me an opportunity to put me in the stream of practical management. I would also like to thank our Prof. Haresh Ozha and Prof. Hitesh Patel for their support.

Thanking You,

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No.

INDEX Item

Page No.

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Introduction
Finance is the lifeblood for every business for any organization finance plays an important role for its success without finance no one can start his or her business. So finance is the base for starting any industry. Financial management is concern with the planning & controlling of the firms financial sources. We need financial for the production of good and services as well as their distribution the efficiency of product & market operations is directly influences by the enterprise is performed by the financial personnel/ finance function assured an important role in business system & it should be given equal important as with production & marketing function. It has been said that business takes money to make money. This is not true, the statement need correction. If you have money, and you manage it properly you will make more money. This management of finance is important for all. Finance is that part of managerial activity which is concerned with planning and controlling of the firms financial resources. In BAJAJ Tiles plant there is not a separate finance department but there is an account department in which financial activities are being done in the finance department.

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Organization of Finance Department

Finance management begins on important function of business organization of finance department has to be properly formed. In financial management three aspects should be given due importance. Viz, capitalization, wise allocation of capital and rising of fund activities. Organization of finance department means the division and the classification of various functions, which are to be performed by the finance department. So in this regard the major decisions to be taken by the finance department are.

Investment Decision Finance Decision Dividend Decision Liquidity Decision

In BAJAJ Tiles finance department is done according to size & nature of the business. All financial decisions are taken in thesis department and financial function

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Capital Budgeting
Capital budgeting may be defined as decision making process by which an organization evolution the major investment proposal keeping due consideration for the Amount needed for the investment Amount available for the investment Amount that can be acquired from different resources The cost of rising funds Future case inflow. In capital budgeting the profitability of each project has to be carefully evaluation. There are many techniques, which can be used to determine profit balance of a project. There is various kind of budgeting are as follows. Sales budgeting Production budgeting Purchasing budgeting Capital expenditure budgeting

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In short spending in the acquisition of such expenditure facility is called the capital. Expenditure and planning of such expenditure is called up the capital budgeting.

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PARTICULARS A SOURCE OF FUNDS 1 SHARE HOLDERS' FUNDS Share capital Reserve & surplus 2 LOAN FUNDS Secured loan Unsecured loan 3 DEFERRED TAX LIABILITY (NET) TOTAL B APPLICATION OF FUNDS 4 FIXED ASSETS Gross block (less) Depreciation Net block capital work in progress Total assets 5 INVESTMENT CURRENT ASSETS,LOANS & 6 ADVANCES a CURRENT ASSETS Inventories sundry debtors cash & bank balance loans & advance

2003-04

2002-03

313.75 3666.75

312.75 3394.96

921.26 677.13 319.25 5898.14

527.13 261.96 4496.80

3185.68 460.00 2725.68 31.21 2756.89 23.30

2257.76 470.00 1787.76 1787.76 22.85

4146.98 4983.55 1995.97 2120.32 4505.19 4128.82 783.55 864.12 11431.69 12096.81

(less) CURRENT LIABILITIES & b PROVISION Current liabilities

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8041.30 9238.49

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PARTICULAR INCOME Sales Operating Income Other Income Total Rs EXPENDITURE Material Consumed Other Material Consumed Manufacturing Expenses Payment to & Provision for Employees Administrative and General Expenses Selling & Distribution Expenses Financial Charges Depreciation T otal Rs. Profit/ (Loss) before Tax Less : Provision for taxation Profit / Loss after Tax Add : Profit from previous year Less (Short provisions for pre.yr.)

2003-04

2002-03

53814.99 70.72 692.27 54577.98

40685.80 77.18 212.61 40975.59

48262.90 1404.91 676.95 115.145 104.05 1846.64 387.70 247.61 53045.91 1532.07 522.05 1010.02 1412.78 23.27

19003.9 2587.42 628.26 125.06 112.56 2128.29 317.63 261.17 25164.29 1581.13 790.56 790.57 2119.26 6.53

Balance carried to Balance Sheet

2399.53

2903.3

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1.

CURRENT RATIO

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Current Ratio = Current Asset / Current Liabilities Current Asset = 11431.69 Current Liabilities = 8313.74 Current Ratio (03-04) = 11431.69 = 1.37 8313.74 Current Ratio (02-03) = 12096.81 = 1.31 9238.49
1.38 1.36 1.34 1.32 1.3 1.28 2002-03 2003-04 Ratio

2.

LIQUID RATIO:-

Liquid Ratio = Liquid Asset / Liquid Liabilities Liquid Asset = 7284.71 Liquid Liabilities=8313.74 Liquid Ratio (03-04) = 11431.69-4146.98 8313.74 Liquid Ratio (02-03) = 7113.26 = 0.77 9238.49 = 7284.71 8313.74 = 0.88

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0.88 0.86 0.84 0.82 0.8 0.78 0.76 0.74 0.72 0.7 2002-03 2003-04 Ratio

3.

PROPRIETARY RATIO:-

Proprietary Ratio = Shareholders Fund / Total Asset*100 Shareholders Fund = 313.75 + 3666.75 Total Asset = 2756.89 + 11431.69 Proprietary Ratio(03-04) = 3980.5 *100 = 28 % 14188.58 Proprietary Ratio(02-03) = 3707.71 *100 = 26.7 % 13884.57

28 27.8 27.6 27.4 27.2 27 26.8 26.6 26.4 26.2 26

Ratio

2002-03

2003-04

4.

DEBT EQUITY RATIO:-

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Debt Equity Ratio = Long Term Liabilities / Shareholders Fund*100 Long Term Liabilities = 677.13 Shareholders Fund = 3980.5 Debt Equity Ratio(03-04) = 677.13 *100 = 17.11 % 3980.5 Debt Equity Ratio(02-03) = 527.13 *100 = 14.22 % 3707.71

18 16 14 12 10 8 6 4 2 0 2002-03 2003-04 Ratio

5.

STOCK INVENTORY TURNOVER:-

Stock Inventory Ratio = Cost of Good Sold / average stock Cost of Good Sold = 4147.18 Average Stock = 4146.98 + 4983.55 / 2 Stock Inventory Ratio(03-04) = 4147.18 = 0.91 4565.25 Stock Inventory Ratio(02-03) = 19094.48 = 4.18 4565.25

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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2002-03 2003-04 Ratio

6.

DEBTORS TURNOVER RATIO:-

Debtor Turnover Ratio = Credit Sales / Average Debtor Credit Sales = 53814.99 Average Debtor = 1195.97 + 2120.32 / 2 Debtor Turnover Ratio(03-04) = 53814.99 = 32.45 1658.15 Debtor Turnover Ratio(02-03) = 40685.80 = 24.54 ` 1658/.15
35 30 25 20 15 10 5 0 2002-03 2003-04 Ratio

7.

CREDITORS TURNOVER RATIO:-

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Credit Purchase/Average Creditor Credit Purchase = 49667.81 Average Creditor = 8041.30 Creditors turnover Ratio(03-04) = 49667.81 = 6.18 8041.30 Creditors turnover Ratio(02-03) = 21591.32 = 2.69 8041.30
7 6 5 4 3 2 1 0 2002-03 2003-04 Ratio

8.

TOTAL ASSET TURNOVER RATIO:-

Total Asset Turnover Ratio = Net Sales / Total Asset Net Sales = 53814.99 Total Asset = 5898.14 Total Asset Turnover Ratio(03-04) = 53814.99 = 9.12 5898.14 Total Asset Turnover Ratio(02-03) = 40685.8 = 9.05 4496.8
9.12 9.1 9.08 9.06 9.04 9.02 9 2002-03 2003-04 Ratio

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9.

DEBTOR RATIO:-

Debtor Ratio = Debtor+Bills Receivable / Average Daily sales Debtor = 1995.97 Average Daily Sales = 147.44 Debtor Ratio(03-04) = 1995.97 = 13.54 147.44 Debtor Ratio(02-03) = 2120.32 = 19.02 111.47
20 18 16 14 12 10 8 6 4 2 0

Ratio

2002-03

2003-04

10.

CREDITOR RATIO:-

Creditot Ratio = Creditor+Bills Payable / Average Daily Purchase Creditor = 8041.30 Average daily Purchase = 136.08 Creditor Ratio(03-04) = 8041.30 = 59.1 136.08 Creditor Ratio(02-03) = 9238.49 = 156.19 59.15

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160 140 120 100 80 60 40 20 0 2002-03 2003-04 Ratio

11.

NET PROFIT RATIO:-

Net Profit Ratio = Net Profit / Net sales * 100 Net Profit = 2399.53 Total Sales = 53814.99 Net Profit Ratio(03-04) = 2399.53 * 100 = 4.46 % 53814.99 Net Profit Ratio (02-03) = 2903.3 *100 = 7.14 % 40685.8
8 7 6 5 4 3 2 1 0 2002-03 2003-04 Ratio

12.

RETURN ON ASSET:-

Return on Asset = Profit After Tax / Average Total Asset Profit after Tax = 1010.02 Average Total Asset = 5898.14 + 4496.80 / 2

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Return on Asset (03-04) = 1010.02 5197.47 Return on Asset (02-03) = 790.57 5197.47

= 0.194 = 0.15

0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0

Ratio

2002-03

2003-04

DU PONT CHART

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Calculation of ROI With the help of Du Pont Chart

Inventories = 4146.98

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Receivable = 1995.97 Cash = 4505.19 Current Liabilities = 8041.30 Cost of sale = 53814.99 49667.81 = 4147.18 Administration & selling expense = 1950.69

Working Capital = Inventories + Receivable + Cash - (Current liabilities) Working Capital = 10648.14 8041.30 = 2606.84 Cost of Sales & Expenses = Cost of sale + Administration & Selling expense Cost of Sales & Expenses = 4147.81 + 1950.69 = 6098.50 Net Profit = Sales - Cost of Sales & Expenses = 53814.99 6098.50 = 47716.49 Total Investment = Working Capital + Fixed Asset = 2606.84 + 2756.89 = 5363.73

Profit Margin = Net Profit / Sales = 47716.49 / 53814.99 = 0.89

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 Turnover = Sales / Total Investment = 53814.99 / 5363.73 = 10.03 Return on Investment = Profit Margin * Turnover = 0.89 * 10.03 = 8.93 So, the Return on Investment of the company is 8.93

SWOT ANALYSES
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 Good Infrastructure facilities. The product being dealt in by the company is of mass consumption and essential. Technical & commercial flexibility. Existing self-sufficient marketing apparatus. Good transportation facilities for retailers & employees

WEEKNESS: The implementation of the product and commencement of commercial projection may be delayed resulting in increase in preoperative expenses. Trade union facility is not for worker. It is the week point for worker of the company

FINDING

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1. Company should make some concrete effort towards

advertisement to create brand awareness of the company.

2. There should be more inclement of worker as well as field force

in development innovative packaging and promotional sales.

3. Company needs its publicity in big and it can be done by road

shows advertisement as well as by holding

4. The company should offer consumers retailer and distributor

scheme.

5. They believe in recruit of attitude and trained of skill. They do

not believe ideas are the monopoly of seniors only.

6. Company should not be dependent on distributor and dealers

for sales they should develop their own distribution network.

7. Manufactures should raise public awareness about GEOL

issued seminar etc.

8. Benefit association and growing in volume and intensity of

relationship with clients.

9. Trade union facility id not there for worker.

CONCLUSION

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BAJAJ Tiles is growing day by day. There is efficient coordination between workers and management. The company has accepted new technology and therefore time is served due to have been one of the good firms serving towards countrys progress. This company also forms the product; company can show that it is best quality product at a medium price. So that it is beneficial to the consumer and society both. So this company not only earning profit more but also they protect to the customer. My best wishes are always with them for fast

development of the concern.

BIBLIOGRAPHY
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For preparation of this project report I have benefited from some books and articles. The lists are given:

FINANCE MANAGEMENT: o I.M.Pandey o Khan & Jain o Prasanna Chandra

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