| Company | Phone Number |
| Alco Aluminium Products, Chengannoor | 4792451702 |
| Anna Group of Companies, Kizhakambalam | 4842680700 |
| Aquaplast India Kundannoor, Kochi | 4842195938 |
| AVT Biotechnology, L.J International Ltd. Kinfra | 4842415177 |
| Basil Rubber Factory (Pvt)Ltd, Kothamangalam | 4852822295 |
| Binani Zinc Ltd, Binanipuram | 4842540276 |
| BOS Natural Flavors Pvt.Ltd, Pathipalam.Kochi | 4842525252 |
| Brahmins Foods India Pvt.Ltd, Thodupuzha | 4862223561 |
| Bramsco Garments Pvt.Ltd,Pampakuda | 4852274996 |
| carris pipes and tubes pvt.Ltd, Kovappady | 4842649061 |
| CEMA Electric Lighting Products India Pvt.Ltd,Edappally | 4843120301 |
| Chirackal Agro Mills,Kalady | 4842463508 |
| Chloroplast ,Koovappady | 4842649056 |
| Cochin Cements Limited, Velloor | 4829256755 |
| Cochin Contiments Pvt.Ltd,Thodupuzha | 486226193 |
| Coir Board, Ernakulam | 4842351788 |
| Cosmo Vision Herbal India Pvt.Ltd, Kundukad, Trissur | 4884265935 |
| Crust n Crumb Food IngrediancePvt.Ltd,Nellad | 4843239300 |
| Cryptm Confectioers (India) Pvt.Ltd.Thodupuzha | 486222880 |
| Davon Foods Ltd, Chungom.Kottayam | 4812391755 |
| Deshabhimani Newspapper | 4842530006 |
| Dynamic Techno Medicals Pvt Ltd, Ashokapuram,Aluva | 4842837970 |
| Eastern Treats Ltd,Edappilly | 4843001100 |
| Elite Foods Pvts Ltd, Peringandoor, Trissur | 4872204817 |
| Erayil Products, Chengamanad, Ernakulam | 4842474336 |
| FACT, Udyogamandal | 4842546609 |
| Five Star Aqua Minarals, Kolenchery | 4842760476 |
| Forest Industries( Travancore)Limited, Aluva | 4842623641 |
| GEO SeafoodsPvt.Ltd,Thoppumpady. Kochi | 4842231356 |
| Grandmas Food Products, Muvattupuzha | 4852834730 |
| Green Mount Spices Pvt.Ltd, Kothamangalam | 4852827371 |
| GTN Textiles Ltd, Ravipuram | 4843928300 |
| Guardian Controls Limited,Thodupuzha | 4862200255 |
| Hanna Polymers,Pvt.Ltd, Thodupuzha | 4862226104 |
| Haritha Pharmaceuticals, Varantharappilly.P.O, Trissur | 4872760791 |
| Highlands Tea Factory, Kattappana | 9961475399 |
| Hindustan Newsprint Ltd, Vellooor. Kottayam | 4829256221 |
| HMT Machine Tools Limited, Kalamassery | 4842540731 |
| Hykon Power Electronics Pvt.Ltd, Kuttanallur Trissur | 4872351511 |
| K.K.R Group of companies,Kalady | 4842462422 |
| Kancor Ingredients Ltd Trikkakara | 4843051100 |
| Kannan Devan Hills Plantation Company Pvt.Ltd., Munnar | 4865230561 |
| KEL ,Mamala.P.O, Kochi | 4842787702 |
| Kerala Agro Machinery Corporation Ltd, Athani | 4842474301 |
| Kerala Feeds Ltd, Kallettumkara,Trissur | 4802720179 |
| Kitex Garments Ltd.Ltd,Kizhakambalam | 4842682200 |
| KLF Nirmal Industries Pvt.Ltd | 4802826705 |
| KPL Oil mills Pvt.Ltd Irinjalakuda | 4802825222 |
| KSE Ltd. Irinjalakuda | 4802825476 |
| Kunnath Pharmaceuticals Pvt Ltd, Marine Drive | 4843048286 |
| Kurian Abraham Pvt.Ltd. Kottayam | 4812300343 |
| L&P Rubber Products,Perumbavoor | 4843242820 |
| Lunar Rubbers Pvt.Ltd, Thodupuzha | 4862222474 |
| Malabar Food Stuff Company, Koratty Trissur | 4802730990 |
| Malankara Plantations Ltd, Kottayam | 4812568335 |
| Meat Products ofIndia Ltd. Koothattukulam | 4852252365 |
| Metrolla Steels Ltd, Muvattupuzha | 4852548313 |
| Moolans International Exim Private Limited | 4846466000 |
| Mother Agro Foods(P) Ltd, Angamali | 4842455741 |
| MRF Limited, Kottayam | 4812570461 |
| Mundeth Storage systems Private Ltd, Koovappady | 4842649065 |
| MVJ Foods (India) Pvt.Ltd ( Melam) Panampally Nagar Kochi | 4842604917 |
| Nadukkara Agro Processing co Ltd. Muvattupuzha | 4852261547 |
| Nagarguna herbal concentrates Ltd, Thodupuzha | 4862276112 |
| NCL Industrials Limited, Pnampally Nagar, Kochi | 4842322114 |
| New Vinco Corporation, Elanji | 4852257464 |
| Nikasu Frozen Foods International, Kakkanad | 4842413167 |
| OEN India Limited,Vyttilla | 4842301132 |
| OMEGA Pipe Pvt Ltd. Chalikkavattom, Vennala | 4842803343 |
| Paragon Polymer Products Pvt.Ltd, Kottayam | 4812564788 |
| Parayil Agro Foods Private Ltd.Nariyanganam, Kottayam | 4822239476 |
| Parisudham Oils Pvt.Ltd, Koothattukulam | 4852250812 |
| Pavizham Healthier Diet Pvt.Ltd, Koovappady | 4842649310 |
| PDDP Kalady, | 4842464605 |
| Plant Lipids (P)Ltd, Kolenchery | 4843051500 |
| Poineer Fruit Cans,Kovappady | 4843258203 |
| Pooja Condiments Private Ltd.Kunchithanny | 4865265283 |
| Primier Aluminium Industries, Angamaly | 4842457744 |
| Priyadarshini Co-operative Spinning MillsLtd.Kottayam | 4812556744 |
| R.M.Equipments,Nellad | 8026320763 |
| Rashra Deepika Ltd., Kottayam | 48130122600 |
| Richi Ayurveda Hospital and Research Centre, Erattupetta.Kottayam | 4822272263 |
| Royal Bituchem Chemical Company, Muvattupuzha | 4853090355 |
| Rubber Board, Kottayam | 4812572707 |
| Rubco, Pampady | 4812509257 |
| Rubek Baloons Pvt.Ltd,Valayanchirangara,Ernakulam | 4842655545 |
| Sandhya Development Society,Pala | 4822247138 |
| Sreedhareeyam Ayurvedic Medicines Pvt.Ltd | 4852253007 |
| Sud - Chemie India Pvt.Ltd,Binanipuram | 4846646000 |
| Sunlit Electro Control Pvt.Ltd, | 4842760329 |
| Supreme Food Industries Perumbavoor | 4842524335 |
| Tata Global Beverages Ltd., Munnar | 4865230561 |
| TELK Angamaly | 4842452251 |
| Toyo Rubbers Pvt.Ltd, Thodupuzha | 4862200491 |
| Travancore Cements Limited,Kottayam | 4812361371 |
| Unipower Transformers Pvt.Ltd, Kakkanad | 4842426781 |
| Usha International Ltd.Edachira, Kakkanad | 4842421724 |
| Veekshanam Printing& Publishing.Co, Kochi | 4842361522 |
| V-Guard Industries ,Vennala.Kochi | 4843005000 |
Wednesday, 1 May 2013
List of Company with Phone Number - Organisation Study
NATURE AND SCOPE OF FINANCIAL MANAGEMENT
CHAPTER I
NATURE
AND SCOPE OF FINANCIAL MANAGEMENT
Finance is one of the
basic foundations of all kinds of economic activities. Finance is defined as “provision
of money at the time when it is required”. Every enterprise, whether
big, medium, or small, needs finance to carry on its operations and to achieve
its targets. Without adequate finance, no enterprise can possibly accomplish
its objectives. So finance
is regarded as the lifeblood of any business enterprise. The subject of
finance has been traditionally classified into two;
Public Finance: - It deals with the requirements, receipts
and disbursement of funds in the govt. Institutions like states, local
self-govt. and central govt.
Private Finance: - It
is concerned with requirements, receipts, and disbursement of fund in case of
an individual, a profit seeking business organization and a non-profit
organization.
Thus, private finance can be classified
into;
Personal Finance: - Personal finance
deals with the analysis of principle and practices involved in managing one’s
own daily need of fund.
Finance of Non-Profit Organization: - The
finance of non-profit organization is concerned with the practices, procedures
and problems involved in financial management of charitable, religion,
educational, social and other similar organizations.
Business Finance: - The study of
principle, practices, procedures and problems concerning financial management
of profit making organization engaged in the field of industry, trade and
commerce is undertaken under the discipline of business finance. Business
finance deals with the finance of business objectives and it is concerned with
the planning and controlling firm’s financial resources.
According to GuthMan and Dougal
business finance can be defined as the “activity concerned with planning,
raising, controlling and administrating of funds used in the business”.
Wheeler defines business finance as
“that business activity which is concerned with the acquisition and
conservation of capital funds in meeting the financial needs and overall
objectives of business enterprise.”
Financial management is
concerned with business finance, i.e. the finance of profit seeking
organization. Business finance can further be classified into 3
categories, viz.
a) Sole
proprietary finance
b)
Partnership firm finance
c)
Company or corporation finance
Corporation finance or broadly speaking business finance can be defined as the process of rising,
providing and administrating of all money/funds to be used in a corporate
(business) enterprises.
Financial Management
Financial management is concerned
with the management of funds in a corporate enterprise or financial management
is concerned with the procurement and use of funds in a business. Financial
management is the managerial activity, which is concerned with the planning and
controlling of the firms financial resources.
Definitions:
According to Solomon Ezra, “financial management is concerned with the
efficient use of an important economic resource, namely capital funds”.
“Financial management is concerned
with the managing of finance of the business for smooth functioning and
successful accomplishment of the enterprise objectives”
The term financial management,
managerial finance, corporation finance and business finance are virtually
equivalent and are used inter-changeably, most financial managers how ever
seems to prefer either financial management or managerial finance..
Finance function
Finance function is the
most important of all business functions. It remains a focus of all activities.
It is not possible to substitute or eliminate this function because; the business
will close down in the absence of finance. According to Solomon Ezra “finance function
as the study of the problems involved in the use and acquisition of funds by a
business”. It starts with the setting up of an enterprise and
remains at all times. The funds will have to be raised from various sources.
The receiving of money is not enough, its utilization is more important. The
money once received will have to be returned also. It may be easy to raise
funds but it may be difficult to repay them.
Aims of Finance
function
The primary aim of finance
function is to arrange as much funds for the business as are required from time
to time. This function has the following aims:
1.
Acquiring Sufficient Funds: - The main aim of finance function is to assess
the financial needs of an enterprise and then finding out suitable sources for
raising them. The sources should be commensurate with the need of the business.
If funds are needed for longer period’s then long term sources like share capital,
debentures, term loans may be explored. A concern with longer gestation period
should rely more on owner’s funds instead of interest- bearing securities
because profits may not be there for some years.
2. Proper
Utilization of Funds: - Though raising of funds is important but their
effective utilization is more important. The funds should be used in such a way
that maximum benefit is derived from them. The returns from their use should be
more than their cost. It should be ensured that funds do not remain idle at any
point of time.
3.
Increasing Profitability: - The planning and control of finance function
aims at increasing profitability of the concern. To increase profitability
sufficient funds will have to be invested. Finance function should be so planned
that the concern neither suffers from inadequacy of funds nor wastes more funds
than required. A proper control should also be exercised so that scarce
resources are not frittered away on uneconomical operations.
4.
Maximizing Firm’s Value: -Finance function also aims at maximizing the
value of the firm. Besides profits, the type of sources used for raising funds,
the cost of funds, the condition of money market, the demand for products are
some other considerations which also influence a firm’s value.
Financing
Decisions or Decisions of Financial Manager
a.Investment Decision: - The investment
decision relates to the selection of assets in which funds will be invested by
a firm. The assets, which can be acquired, fall into two broad groups- Long term
assets and Short term assets. The aspect of financial decision making with
reference to long term assets is termed as “capital budgeting” and to short term
assets or current assets is termed as “working capital management”
b. Financing Decisions: - It is the
second important function to be performed by the financial manager. Broadly
he/she must decide when, where and how to acquire funds to meet the firms
investment needs. The financial manager must strive to obtain the optimum best
capital structure for his/her firm. The mix of debt and equity is known
as the firm’s capital structure. Optimum capital structure
means capital structure that maximizes the value of firm and minimizes the cost
of capital.
c. Dividend Decision: - - It is the
third important function to be performed by the financial manager. The
financial manager must decide whether the firm should distribute all profits or
retain them or distribute a portion and retain the balance.
d. Liquidity Decision: - Liquidity
means the capacity of a firm to convert an asset into cash within a short
period without much loss. It is a decision regarding the outflow and inflow of
cash. In addition to the management of long-term asset, the current assets
should be managed efficiently against the dangers of ill liquidity.
Scope or
Content of Financial Management/
Finance Function:-
The main objective of
financial management is to arrange sufficient finances for meeting short term
and long term needs. A financial manager will have to concentrate on the
following areas of finance function:
1. Estimating Financial Requirements: -
The first task of
financial manager is to estimate short term and long-term financial
requirements of his business. For this purpose, he will prepare a financial
plan for present as well as for future. The amount required for purchasing
fixed assets as well as for working capital will have to be ascertained.
2. Deciding Capital Structure: -
The capital structure
refers to the kind and proportion of different securities for raising funds.
After deciding about the quantum of funds required, it should be decided which
type of securities should be raised. It may be wise to finance fixed assets
through long-term debts and current assets through short-term debts.
3. Selecting a Source of Finance: -
After preparing
capital structure, an appropriate source of finance is selected. Various
sources from which finance may be raised include: share capital, debentures,
financial institutions, commercial banks, public deposits etc. If finance is
needed for short period then banks, public deposits and financial institutions
may be appropriate. On the other hand, if long-term finance is required then,
share capital, and debentures may be useful.
4. Selecting a pattern of Investment: -
When funds have been
procured then a decision about investment pattern is to be taken. The selection
of an investment pattern is related to the use of funds. A decision will have
to be taken as to which asset is to be purchased. The funds will have to be
spent first on fixed assets and then an appropriate portion will be retained
for working capital. The decision-making techniques such as capital budgeting,
opportunity cost analysis etc. may be applied in making decisions about capital
expenditures.
5. Proper cash Management: -
Cash management is an
important task of finance manager. He has to assess various cash needs at
different times and then make arrangements for arranging cash. The cash
management should be such that neither there is a shortage of it and nor it is
idle. Any shortage of cash will damage the credit worthiness of the enterprise.
The idle cash with the business will mean that it is not properly used. Cash flow
statements are used to find out various sources and application of cash.
6. Implementing Financial Controls:-
An efficient system of financial management
necessitates the use of various control devises. Financial control devises
generally used are budgetary control, break even analysis; cost control, ratio
analysis etc. The use of various techniques by the finance manager will help
him in evaluating the performance in various areas and take corrective measures
whenever needed.
7. Proper use of Surplus: -
The utilization of
profit or surplus is also an important factor in financial management. A
judicious use of surpluses is essential for expansion and diversification plan
and also in protecting the interest of shareholders. The finance manager should
consider the following factors before declaring the dividend;
a. Trend of earnings of the enterprise
b. Expected earnings in future.
c. Market value of shares.
d. Shareholders interest.
e. Needs of fund for expansion etc.
Objectives/Goals of Financial Management or Business
Finance
The firms’ investment and
financing decisions are unavoidable and continuous. In order to make them
rationally the firm must have a goal. It is generally agreed in theory that the
financial goal of the firm should be the maximization of owner’s economic
welfare. Owner’s economic welfare could be maximized while maximizing the
shareholders wealth as reflected in the market value of shares. The main
objective of a business is to maximize the owner’s economic welfare. This
objective can be achieved by;
1)
Profit Maximization
2) Wealth Maximization
Profit
Maximization: -
Profit
maximization means maximizing the rupee income of a firm. Profit earning is the
main aim of every economic activity. No business can survive without earning
profit. Profit is a measure of efficiency of a business enterprise. Profit also
serve as a protection against risk which enables a business to face risk like
fall in prices, competition from other units, adverse govt. polices etc. So the
profit maximization is considered as the main objective of business.
Arguments for profit
maximization;
1.
When profit earning is the aim of business, the profit maximization should be
the main objective.
2.
Profitability is a barometer for measuring efficiency and economic prosperity
of a business enterprise.
3.
Profits are the main source of finance for the growth of a business.
4.
Profitability is essential for fulfilling social goals.
5.
A business will be able to survive under unfavorable situation only if it has
some past earnings.
Criticism of Profit Maximization: -
1.It
is vague: - The price meaning of profit maximization objective is unclear.
Whether short term or long term profit, profits before tax or after tax, total
profit or earning per share and so on.
2. Ignores
the timing of the return: - The profit maximization objective ignores the
time value of money. If values benefits received today and benefits received
after a period as the same, it avoids the fact that cash received today is more
important than the same amount of cash received after some years.
3. It
ignores risk: - The streams of benefit may possess different degree of
certainty. Two firms may have same total expected earnings, but if the earnings
of one firm fluctuate considerably as compared to the other, it will be more
risky. Profit maximization objective ignores this factor.
4. The
effect of dividend policy on the market price of share is also not
considered in the objective of profit maximization.
5. Profit maximization
criteria fail to take into consideration the interest of govt., workers and
other persons in the enterprise.
6. The
firm’s goals cannot be to maximize profit but to attain a certain level or rate
of profit, holding a certain shares of the market or a certain level of sales.
Wealth
Maximization: -
It is assumed that the goal of the firm should be to maximize the
wealth of its current shareholders. Wealth maximization is the appropriate
objective of an enterprise. Financial theory asserts that wealth maximization
is the single substitute for a stockholder’s utility. When the firm maximizes
the stockholder’s wealth, the individual stockholder can use this wealth to
maximize his individual utility. It means that by maximizing stockholder’s
wealth the firm is operating consistently towards maximizing stockholder’s utility.
A stockholder’s current wealth in the firm is the product of the number of
shares owned, multiplied with the current stock price per share. Stockholder’s current wealth in a firm =
(Number of shares owned) x (Current stock price per share). The financial
manager must know the factors, which influences the market price of shares;
otherwise he would find himself unable to maximize the market value of company’s
shares. The wealth maximization is a criterion for every financial decision.
Besides profit, the type of sources used for raising funds, the cost of funds,
the condition of money market are some factors that influence the market value
of shares.
Implications
of wealth maximization
It serves the interests of suppliers of
long term and short-term loaned capital, employees, management and society.
1. Short – term lenders are primarily
interested in liquidity position so that they get their payments in time.
2. The long –term lenders get a fixed rate
of interest from the earnings and also have a priority over share holders in return of their
funds.
3. The employees may also try to
acquire share of company’s wealth through bargaining etc.
4. Management is the elected body of
shareholders. The shareholders may not like to change a management if it is
able to increase the value of their holdings.
The efficient allocation of productive resources will be essential for
raising the wealth of the company
5. The economic interest of society is served if various
resources are put to economical and efficient use.
Arguments against Wealth Maximization: -
1.The
objective of wealth maximization is not necessarily socially desirable.
2.The
firm should not to increase the shareholders wealth but also to see the
interest of customers, creditors, suppliers, community and others.
3.There
is some controversy as to whether the objective is to maximize the shareholders
wealth or the wealth of the firm, which includes other financial claim holders
such as debenture holder’s preference stock holders etc.
4.The
objective is not descriptive of what the firms actually do to maximize the
wealth.
Finance
manager:
A financial manager is a person who
is responsible to carryout finance functions. He is one of the members of the
top management team. The financial manager, there fore, must have a clear
understanding and strong grasp of the nature and scope of the finance
functions.
Functions of a
Finance Manager
The changed business environment in the recent past has widened the role of a financial manager. The Functions of a Finance Manager are;
1. Financial Forecasting and Planning: -
A financial manager has to
estimate the financial needs of a business. How much money will be required for
acquiring various assets? The amount will be needed for purchasing fixed assets
and meeting working capital needs. He has to plan the funds needed in the
future. How these funds will be acquired and applied is an important function
of a finance manager.
2. Acquisition of Funds: -
After making financial planning, the next
step will be to acquire funds. There are a number of sources available for
supplying funds. These sources may be shares, debentures, financial
institutions, commercial banks etc. The selection of an appropriate source is a
delicate task. The choice of a wrong source for funds may create difficulties
at a later stage. The pros and cons of various sources should be analyzed
before making a final decision.
3. Investment of Funds: -
The funds should be used in the best possible way. The cost of acquiring
them and the returns should be compared. The channels, which generate higher
returns, should be preferred. The technique of capital budgeting may be helpful
in selecting a project. The objective of maximizing profits will be achieved
only when funds are efficiently used and they do not remain idle at any time. A
financial manager has to keep in mind the principles of safety, liquidity and
soundness while investing funds.
4. Helping in Valuation Decisions: -
A number of mergers and
consolidations take place in the present competitive industrial world. A
finance manager is supposed to assist management
in making valuation etc. For this purpose, he should understand various methods
of valuing shares and other assets so that correct values are arrived at.
5. Maintain Proper Liquidity: -
Every concern is required to
maintain some liquidity for meeting day-to-day needs. Cash is the best source
for maintaining liquidity. It is required to purchase raw materials, pay
workers, meet other expense, etc. A finance manager is required to determine
the need for liquid assets and then arrange liquid assets in such a way that
there is no scarcity of funds.
Risk
Risk means possibility of loss or
injury. In other words Risk is the difference between expected return and
actual return. Risk can be traditionally classified into two .They are;
1. Systematic risk and
2. Unsystematic risk
Systematic risk
Systematic risk
represents that portion of the total risk of an investment that cannot be
eliminated or minimized through diversification. Systematic risk is also known
as non-diversifiable risk or market risk e.g.:
1.
The govt. changes the interest rate policy.
2.
The corporate tax rate is increased.
3. Changes
in inflation rate.
4.
Changes in investor’s expectation.
5.
Respective
credit policy.
Unsystematic risk
Unsystematic risk represents that portion of the total
risk of an investment, which can be eliminated or minimized through
diversification. Unsystematic risk is also known as diversifiable or unique
risk. e.g.-
1. Strikes.
2. Availability of raw material.
3. Management capabilities and
decisions.
4. Competition.
Risk -return trade off
Financial decisions of a
firm often involve alternative courses of actions. A finance manager has to
select amongst the various alternatives available to him. For example, while
making an-investment decision, he has to decide whether, the firm should go in
for a machinery having capacity of 50,000 units or 2,00,000 units. In the same
manner the financing decision may involve a choice between a debt equity ratios
of 1:1 or 2:1, the divided decision may be concerned with the quantum of
profits to be distributed. The alternative course of action implies different
risk-return relationship as there is positive relationship between the amount
of risk assumed and the amount of expected return. A machine with higher
capacity may give a higher expected return but involves higher risk of
investment, whereas the machine with lower capacity may have a lower expected
return and a lower risk of investment. A higher debt-equity ratio may help in
increasing the return on equity but will aisa enhance the financial risk.
While
making a financial decision, one has to answer the basic questions: What is the
expected return? What is the risk involved? How would the decision influence
the market value of the firm? The
financial manager has to strike a balance between various so$gees so that the
overall profitability of the firm and its market value increases.
Time value of
money:-
The time value of money is
perhaps the most fundamental principle needed to understand and make financial
decision. The concept in general, implies that a rupee today is worth more than
a rupee a year later. The computation of value over time is done through the
process of compounding and discounting;
1. Compounding
of single sum:-
The
process of computing the future value, based on the initial amount, the
interest per period and the number of periods is called compounding. The future
value to be received after a number of years can be calculated by using the
following equations:-
a) Annually
F= P(1+r)n
b) Half
yearly
F=P(1+r/2) 2n
c) Quarterly
F=P(1+r/4) 4n
P= Present Value
r= Rate of interest
n= Number of years
2.
Discounting of a single sum:-
The
process of finding the present value based on future amounts, interest rate per
period and the number of periods is known as discounting. Discounting is
exactly the reverser of compounding. This can be calculated by using the
following equations
P = F
(1+r)
n
Organisation Study - Guidelines
ORGANISATION
STUDY - GUIDELINES
A.
OBJECTIVE
OF THE ORGANISATION STUDY
The
education of any future manager will be incomplete without exposure to working
in an organization. The project, a study of an industrial, business or service
organization, is therefore made an essential academic requirement for the first
year students of the MBA programme. The students spend one month, working in
and learning from an organization.
The
assignment provides the student with opportunities to:
·
Have a first
hand exposure on the concepts and skills to real life management situations.
·
Relate class
room learning of concepts and skills of real life management situations.
PERIOD
OF THE STUDY
The student
is required to work full-time for a minimum of 30 consecutive calendar days on
the rolls of the organizations (including Sundays and holidays). Actual working
days, therefore will not be 30 but less by the number of Sundays and Holidays.
During the training, the participant is not eligible for any leave except under
unavoidable circumstances. The Study is also to be planned during the months of
June-July and the students have to submit their Study report to the department
within 30 days of commencement of the 3rd semester course.
CONFIDENTIALITY
& CONDUCT
a)
When
discussing the project with superior, ascertain which elements of the work are
confidential.
b)
Treat the
project as confidential unless a formal written indication to the contrary is
given. Do not discuss the project with the friends and even with executives in
the organization unless the supervisor has expressly favoured such discussion.
c)
The student
has to adhere to the rules and regulations applicable to the trainees of the
organization and should not misuse facilities (such as subsidized lunch and
transportation). If they intent to make use of any facility (computer,
stationery, etc.) they have to get prior approval from the concerned
authorities of the organization.
d)
Note that
they will be required to make good and fully indemnify the organization for any
loss or damage suffered or sustained by it by their misbehavior or improper
conduct and neither the college or university will have any responsibility or
accountability in such matters.
e)
Comply with
the prescribed dress code, if there is one.
f)
The student
has to ensure that he does not do anything that will bring disrepute to his own
the B school or the university’s name. If there is any report of such
misconduct from the organization concerned appropriate action may be taken by
the B School / University.
D.
EVALUATION
OF THE STUDY
1.
The Study
report carries 100 marks and is fully internal in nature. Of these 60 marks for
the Study report to be given by the internal guide and 40 marks on the basis of
a viva conducted on the Study. The viva will be evaluated by a committee
comprising of faculty members other than internal guide.
2.
To ensure
the seriousness of the Study and to have a feedback from the industry, a
Three-stage Reporting system is being practiced. On joining the organization
for the Study, the student is to send a Joining Report to the B School. Then
the student is to send a Progress Report countersigned by the Supervisor in
each week during the period of study. An Evaluation Report should be obtained
from the supervisor of the organization at the end of the study. The Evaluation
Report is to be filled in by the supervisor and handed over in a sealed envelope,
and sent to the B School on completion of the project through the student. The
format of the Joining Report, Progress Report and Evaluation Report will be
given to each student from the B School.
3.
If the Study
is not satisfactory and the student does not get the required pass marks he has
to do a remedial Study along with the next batch of students.
E. HOW TO GO
ABOUT THE WORK
1.
Have an
organization Supervisor in the organization. Visit the organization and have a
walk through and to identify and acquaint themselves with the different
departments.
2.
Make the
organization chart for the organization and try to understand the functions of
the managers/officers and supervisors in the different departments. Also
collect all information relating to the General Management as given in the
Report Format. Record these observations of yours and clarify with your
supervisor to check if the same is correct.
3.
Identify the
key functions of each department and try to understand how it is carried out
(the process). Collect all relevant information regarding the procedures and
activities relating to various departments as given in the Fourth chapter of
the Report Format given below. You have to make a record of how the various
activities are done in the different departments of the organization.
4.
Try and
interact with personnel and customers (both external & internal) users, to
find if there are problems with the processes. Make record of your findings.
5.
Make a SWOT
analysis of the organization in consultation with the supervisor.
F. GUIDELINES
FOR PREPARING THE ORGANISATION STUDY REPORT.(FORMAT OF REPORT)
While
preparing the Study Report the following have to be kept in mind:
1.
The cover
page will have the title of the project, name of the participant, guide as well
as the name of the B School, and University.
2.
The next few
pages after the cover page will be as follows:
a.
Certificate
from the organization where the study was done duly signed.
b.
Certificate
from the Director of the B School signed by both the Director and the internal
guide.
c.
Declaration
of the authenticity of the Study duly signed by the student.
3.
Subsequent
pages will be :
a.
List of
contents
b.
List of
tables/charts.
There will be six chapters as follows:
4.
The first chapter will be the
introduction and will contain such items as Executive Summary, background
(need) of the study, objectives and scope of the study, the methodology of the
study and limitations of the study.
5.
The second chapter gives industry
profile, the group profile (if company is part of a group), the company profile
(history, people behind it, present status-market share, competition etc.) and
the product profile. The full organization structure also found a part of this
chapter.
6.
The third chapter gives the detailed
observations of the General Management of the organisation.
The following are a list of indicative areas
that could be covered for the study in this chapter:
a.
The Planning
process
b.
The
Decision-making process
c.
Information
systems
d.
Communication
systems
e.
General
Strategies
f.
Control systems
g.
Organisation
Manual
h.
Duties and
responsibilities of the Top Level Managers
7.
The Fourth chapter gives the functional activities in each
department. Find how the following are done in each department. The actual
procedures of each item is briefly explained. This chapter may be conveniently
divided into sections, each section being given to each department.
a.
Human
Resource or Personnel Department
1)
Human
Resource Planning
a)
Job Analysis
b)
Job
Description & Job Specification
c)
Job Design
2)
Recruitment
and Selection
3)
Placement
& Selection
4)
Training
& Development
5)
Transfer,
Promotions & Separations
6)
Wage &
Salary Administration
a)
Job
Evaluation
b)
Constituents
of Salary
c)
Incentives
& benefits
7)
Performance
Appraisal
8)
Health &
Safety
9)
Welfare measures
10) Worker’s participation
11) Employee Grievance
12) Trade Unions & Labour Relations
13) Personnel Records & Audits
b.
Marketing
and Sales Department
1)
Analysis of
environment
2)
Market
Intelligence & Market Research
3)
Marketing
Information System(MIS)
4)
Segmenting,
Targeting & Positioning
5)
Distribution
strategy
a)
Retailing,
wholesaling channel
b)
Sales force
strategy
6)
Pricing
strategy
7)
Promotional
activities
8)
Product
strategy
9)
New product
strategy
10) International marketing
11) Marketing Control & Audit
c.
Production
Department
1)
Product
Capacity
2)
Process Flow
& Plant Layout
3)
Operations
Planning & scheduling
4)
Inventory
management & control
5)
Supply chain
management
a)
Logistics –
inbound & outbound
b)
Warehousing
6)
Use of
computer in process – ERP system
7)
Control
measures
8)
Quality
management
a)
TQM/TPM
b)
ISO and
other certifications
9)
Workers
participation – quality circles.
d.
Accounting
and Finance Department
1)
Capital
Structure
2)
Financial
Statement Analysis
a)
P&L
Statement
b)
Balance
Sheet
c)
Ratio
analysis
3)
Revenues
a)
Sales
b)
Break up
product/unit wise
4)
Expense
a)
Major Raw
Materials
b)
Sales &
distribution
c)
Overheads
5)
Working
capital
a)
Accounts
receivable & Accounts payable
b)
Inventory
c)
Working
capital cycle & funding
6)
Budgeting /
Break Even Point
7)
Control
measures / Audit
e.
Any
other Departments
If there are
departments other than the above mentioned departments in the organization,
such departments may be merged with the above departments if possible or may be
shown under separate section.
8.
The Fifth chapter presents a SWOT
Analysis which shows the strength, weakness, opportunity and threats of the organization.
The Report is to be concluded with a summary of important observations noticed
about the organisation.
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