CHAPTER 1 Formatted: Left

Introduction aboutIntroduction about the Internship :Internship:

The internship programme is offered by the university with a target of helping the understudy to
take in the practical experience in internship and field work in regards to internship while execute
the theory to practical study information and learn in work involvement in organization and
investigating the organization principles and control in regards to internship. The understudy while
take an interest in building up the organization objectives while execute the methodology in
organization

Formatted: Justified, Space After: 8 pt

The internship an individual study to do the internship in organization with respect to specific point
in determined field. The student understudy limit will be expanded in organization, by actualize
theoretical information in practical way the reasonable learning in organization

An internship gain the relevant knowledge, skills, and behavior to enter into the particular career
field as well as given the wide experience. The major component of this experience is the formation
of the professional attitude.

Formatted: Justified, Space After: 8 pt

Internship helps to develop the personality and capacity to adapt to, and handle challenging
situations in the real business world. Internship program helps to acquire transferable skills such
as communication skills, interpersonal skills, teamwork skills, and problem solve.

About the Organization

The internship study was conducted at “PARSONS NUTRITIONALS PRIVATE LTD.”
Harohalli, Karnataka. The objective of the study is,
● To study the organizational structure.
 ● To study about the functioning of various departments.
● To study the financial statements of a company.

An operation of a business derives its efficiency and effectiveness from the optimum
utilization of it’s resources, which acts as a bridge between production and distribution.
Internship is a learning and experience about company environment and a skill development
process which helps in building student’s career.

About Industry

Biscuit industry is one of the major beverages and food industry under FMCG industry. It is
developing fast rate, in creating nations.

In the organized division the biscuit business conveys roughly 59% of the aggregate
assembling, the staying 41% being supply through the unorganized bakeries. The enterprise
includes 2 huge scale producers, around 50 medium scale units and 2500 small scale units running
in the nation, as at 2015-2016. The disorderly zone is imagined to have roughly 30000 small and
little bakeries through out India.

The composed zone of the biscuit makers yearly turnover (as at 2016-2017) is Rs 12350 crores.
Regarding organized division biscuit producing in 2015-2016 is expanded to 3.90 million tons.

In the SSI district, the Biscuit undertaking which move toward becoming until the point when at
that point held, wind up noticeably saved in 1997-98, as per the administration strategy,
fundamentally underpins on the Abid Hussain Committee’s rules.

2
The yearly manufacture changed into around 12.4 Lakh tons in 2007-2008 in the consequent 5
years, biscuit production generation saw a yearly development of 10% to 12%, up to 2009-10.

In 2011-12 production expanded insignificantly by 2.75% when 2012-13 the development is

around 3%.

Nutritious snacks food is bundled as to health cognizant in the biscuit industry to be had at
unimaginably forceful charges, volumes and unprecedented flavors. In step with the NCAER
examine, biscuit is predominately extraordinary by people from the lessening level of society, for
the most part kids in each rural and metropolitan area with a standard month-to-month benefits of
Rs . 850.00.

Biscuit can be broadly categorized into the following segments:

(Based on production of 2017-2018) Formatted: Indent: Left: 0"

Glucose 45%

Marie 12%

Cream 11%

Crackers 12%

Milk 13%

Others 07%

(Based on production of 2017-2018) Formatted: Centered

Glucose 45%

3
 Marie 12%

Cream 11%

Crackers 12%

Milk 13%

Others 07%

In recognition of industry's obligations towards the community, being a part of it, biscuit
manufacturers supply biscuits to the social welfare agencies in all States for the benefit of school
children, senior citizens and other needy sections of the society. FBMI Members have always
responded positively to our appeal as also by the Government, to rush truckloads of biscuits to the
people affected by earthquakes, floods, famine etc. The industry has also participated in supplying
biscuits to the people of war ravaged Afghanistan and presently to the Iraqi people, under the aegis
of the UN. As regards the consumption pattern is concerned surveys and estimates by industry
from time to time indicate the average consumption scenario in the four zones.

These are the follows:

Northern States: 27%

Southern States: 25%

Western States: 24%

Eastern states:24%

Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass Consumption
Goods) sector. The commodity is also price sensitive, as a consequence of which, even when the
Excise Duty was doubled on biscuits in 2000-01 biscuit manufacturers, including the major brands,

4
were not able hike MRPs to the extent of the steep increase in the Duty. Taxation, both Central
Excise Duty as also State Sales Tax, other miscellaneous levies i.e. Turnover tax, local area tax,
purchase tax, octroyed, has been a major deterrent in the growth of the biscuit industry. The CII
Study Report has identified Biscuit as one of the products that should treated as "Merit Good for
the purpose of liberal tax policy both by the Centre and States.

Besides lack of technology upgradation in manufacturing, packaging etc has also been a factor
affecting our industry, along with inadequate financial credit and support particularly for the
medium and small-scale biscuit units.

On the other hand, the Government of India has identified food processing industries as a priority
area to be encouraged for growth and development and created the Ministry of Food Processing
Industries (which was till then a Department in the Ministry of Agriculture) headed by a Ministry
of State with Independent charge.

The Food Processing Ministry has been rendering yeomen service to the industry, of which biscuit
manufacturing is an important part. The Ministry, with the objective of enabling food processing
Industries to undertake technology upgradation diversification. Expansion as also to set up new
units has formulated scheme of grants and financial assistance.

Biscuit manufacturing as well as other bakery products like Bread etc. are Agro based industries,
with the major inputs - wheat flour/Atta sugar, milk Vanaspati /vegetable oil etc. all being
agriculture produces. Industries such as Biscuit are also languishing as they are not able to achieve
their potential for higher production, in the absence of the concrete food Processing Industry
Policy. FBMI in close coordination with other organizations and apex Chambers, initiated to urge

5
the Govt of India to formulate a comprehensive Policy Document, for smooth growth and
harmonious development of the industry. The Food Processing Industry Policy, which has been
evolved as a result of various workshops, deliberations and representations by a large cross section
of food processing industries, is yet to be finalized. It is hoped that the Ministry of Food Processing
Industries, GOI would initiate action for implementation of the policy expeditiously.

Biscuit Production:

The production data provides up to the calendar year 2017, entire manufacture turned into
18,85,000 tone’s as against 16,75,500 tone’s inside the previous year.

The production of biscuits for the remaining 8 years is as below

2010- 1120485

2011- 1185000

2012- 1260000

2013- 1350000

2014- 1385000

2015- 145600

2016- 1675000

2017- 1885000

6
 CHAPTER-2

COMPANY PROFILE

PARSONS NUTRITIONALS PRIVATE LTD.

BACKGROUND:

Parson Nutritional Pvt Ltd. is a biscuit producing unit with the state of fine art and business
benchmarking facility with set up capacity of 25000MT/year. Presently this firm is occupied with
assembling of 140000MT/year biscuit for GlaxoSmithKline customer health care Ltd.

Parsons organization produces solid and great tasty biscuit i.e., Horlicks biscuits, Oats, (Animal
formed) in 20SKU`s changing from 35gm to 500gm of every stand-out release. The unit is ISO
9001-2000 guaranteed and reviewed with the guide of GSK`s essential extraordinary group. Our

7
relationship with GlaxoSmithKline is 20years old, which talks about our good and translucent
working.

Parsons Nutritionals Pvt Ltd. is a registered under the companies act, 1956 by the enroll of
companies, NCT, Delhi wide registration no. U65311DL2002PTC115025 incorporated on
18thApril, 2002. The firm advanced by Mr. Raj Deep Mann, Mr. Swapna Deep Mann and Mr.
Surinder Singh as promoters. Under contract producing the organization was elevated to set up
committed biscuit producing unit for GSKCHL. The company has been manufactured biscuit
Under the brands names of Horlicks and Boost for GSKCHL the organization has been produced
the biscuits.

The Parsons Company supplies the biscuits all through the India and other adjoining nations like
Nepal, Bangladesh, and Srilanka and Middle East as it contract producing unit for GSKCHL. The
organization were seeing the past patterns most noteworthy Quality Management System (QMS)
and Good Manufacturing Practices (GMP).

In 2012 another unit began in Bangalore for supply of southern states. Exhibit organization having
committed creation of biscuits and Oats for manufacturing M/s GlaxoSmithKline Consumer
Healthcare Limited. In 2012 another milestone of the company had a concurrence with M/s Kraft
food for manufacturing of biscuits under contract producing the Project is in starting stage.

On 29 Sep 2016 Parson Nutritional Pvt Ltd Annual General Meeting [AGM] turned Into
understood and as in line with records from Ministry of Company Affairs [MCA], its balance
sheet was last field on 31 march 2016.Surrender pal Singh, Swapna deep Mann, Sukhbir Singh
Mann, and Sandeep Singh all are Directors of Parson Nutritionals Pvt Ltd.

NATURE OF BUSINESS

8
Parsons nutritionals private limited is a manufacturing company.The company mainly
concentrates on nutritional and tasty biscuit products. The company is all about reaching the
needs and preferences of the customers about the taste and quality of the biscuit products. As
now it is one of the leading and fast growing company in the Food (Biscuits and Chocholates)
industry. The company is involved in manufacturing of :

● Horlicks Biscuits
● Cadbury Gems
● Horlicks Oats
● Oreo Biscuits
● Dairy milk Likable
●

MISSION, VISION, QUALITY POLICY

MISSION:

"To sharpen the efficiencies for guaranteeing reliable quality and customized arrangements that
surpasses the necessities and desires of the customers."

VISION:

"To become one of the world's driving associations in contract manufacturing fragment by
following global accepted procedures, strategic operation management and quick business
development."

9
QUALITY:

Quality is the key driver of business at Parsons. The company has outlined an all around
characterized quality administration framework to be taken after at each stage. A stringent mind
approaching raw materials, work in-process control and last assessment guarantees immaculate
execution of all requests. The committed group of value inspectors at the organization can rethink
quality control program according to the necessity of the industry. Continuous quality
improvement drive Parsons objective to fulfill the customer requirements for consistence

QUALITY POLICY:

Quality Matters:

Quality strategy for Parsons Nutritionals Pvt Ltd:

1. To guarantee that we reliably convey to our customer, both interior and outside alike,
products and services which totally meet their necessities as far as security,
effectiveness and quality
2. To meet these requirements first time, on time and each time
3. To receive quality as a need in all our business procedure

10
 4.To acquire the dedication of all the employees in the organization to quality as an
aggregate duty and encourage constant improvement in successful execution of the quality
management system

5.To set up a system in place for setting up and periodic survey of quality goals for
nonstop change in quality management system

With the objectives of:

1. Every year diminish in outer customer complaint

2. A service supply of high quality items

3. Compliance with normality necessity

4. Continual improvement in quality KPI's

PROMOTERS: Promoted by,

● Mr. S.S. Mann, (NDRI Graduate, Year 1971)

● Raj Deep Mann, (MTech RMIT University, Melbourne, Australia- Joined business in
February 2000)
● Sandeep Mann (Bachelor of Engineering from Thapa’s, Patiala, MBA from
Oxford University, U.K)
● Surinder Singh- (Mechanical Engineer)
● Currently as Executive Director and responsible for all technical works and project works

11
PRODUCT / SERVICES PROFILE::

Dairy Milk Lickables:

Fig.no.2.1 Fig.no.2.2

Cadbury Oreo

12
 Fig.no.2.3 Fig.no.2.4

Horlicks Biscuits

Fig.no.2.5 Fig.no.2.6

Cadbury Gems

13
 Fig.no.2.7 Fig.no.2.8

Horlicks Oat

Fig.no.2.9 Fig.no.2.10

14
Biscuit Manufacturing System

Fig.no.2.11 Fig.no.2.12

Fig.no.2.13 Fig.no.2.14

15
THE PROCEDURE OF BISCUIT MANUFACTURING INCLUDES THE

FOLLOWING STAGES:

MIXING:

This is a procedure where all ingredients are put together in right extent for dough formation. These
ingredients are then fed into Mixers where blending is done and dough is set up for molding
/cutting .Major ingredients are flour, fat, sugar and others according to the item one might want to
have.

MOULDING:

In this area we laminate the dough into sheet, which at that point goes down to gauge rollers, and
sheet thickness is accomplished for molder/cutter. Here we have a cutter or molder according to
the variety where one gets the shape and sizes of biscuits.

BAKING:

This is the zone where we pass these molded wet biscuits into baking oven. The biscuit are baked
on desired temperatures. Different kind of heating are accessible now a days according to the
comfort and cost. Distinctive type ovens are available.

PACKING:

When biscuits discharges from the oven end a similar biscuit is coming for packing table through
conveyor same will be packed in distinctive packing machines in view of the gram age.

16
INFRASTRUCTURE FACILITY/ LIST OF MAIN EQUIPMENT:

a) Pneumatic Conveying System for Wheat Flour and Sugar

b) Online Sugar Pulverizes

c) Automated Batching and dishing out gadget for Wheat Flour and Sugar

d) Computerized Chemical Batching and dispensing gadget

e) Mixers, computerized Dough Feeder

f) Rotary Molding device

g) Herbal gas Fired Oven

h) Cooling Conveyor

i) Metallic Detectors

j) Stacker and Packaging Tables

k) High pace drift Wrap machines for Slug less

l) Family pack and canteen

m) Packing Machines

n) Vertical FFS for Pillow Pouches

o) Central HVAC for Packing hall and production area and FDV for other areas

p) RO Plant for process and drinking water

q) Other Allied service equipment like, Generators, Compressors, etc.

17
OWNERSHIP PATTERN:

● The Parsons Nutritionals Private Limited Company is a private limited company.

● Parsons Nutritional Private Ltd Company have a 100% ownership.
●

AWARDS AND ACHIEVEMENT:

● 2012- Parsons nutritionals pvt ltd. Started

● 2013- Manufacturing of Horlicks oats
● 2014- Manufacturing of Britannia & Oreo biscuits
● 2016- Manufacturing of Cadburys gems chocolates

In 2012 around 27 crores was its investment and now the company has around 200 crores
investment, this is the biggest achievement of this company.

● 2010-2011
a) 5th Most Trusted Brand in Economic Times Brand Equity Trusted Brands Survey

b) Business World Most Respected Company Award 2011

c) Business World Most Respected Company Award 2011

● 2012-2013

18
a) National Quality Award b) Manufacturing supply chain award

Fig.no.2.15 Fig.no.2.16

2013-2014

a) India’s 2nd Most Meaningful Brand 2013

b) The Platinum Award (Packaged Foods category) in the Reader's Digest Trust Brand Awards
2014

19
FUTURE GROWTH AND PROSPECTS:

Planning to have more MNC for producing all sort of food items.

● To carry on the business of producing, preparing, packing, bundling, refilling, marking of

all types food and milk items, food material, arrangements and shopper items.

● To make, create, process, get ready purchase, offer and arrangement in soya milk, soya
milk, items and arrangements, soya bean based food and soya oil solvent extricated or
generally including splash dried milk powder, cheese, curd, ice-cream, kids food, proteins
food and other readiness of soya oats and lentils including flour and dal, soya snacks
food, soya desserts, soya treats and chocolates, soya wearing food flavored with leafy
foods and soya refreshments and different items and arrangements of each kind nature
and description.
● To make, deliver, process, get ready, purchase offer and arrangement in a wide range of
biscuit, breads, cakes, ice cream parlor, desserts, chocolates, toffees, breakfast foods,
protein foods, deictic items strained baby foods, tea and coffee, grain items, wheat chips
and arrangements of various types.

20
 CHAPTER-3

MCKINSEY’S 7S FRAME WORK:

Mckinsey 7S model was developed by Robert Waterman and Tom Peters during early 1980s by
the two consultants mckinsey Consulting organization. The model is a powerful tool for assessing
and analyzing the changes in the internal situation of an organization. It is based on 7 key elements,
which determine the organization’s success, which should be interdependent and aligned for
producing synergistic outcomes. The model can be used widely in various situations where an
alignment is required:

● For improving organizational performance.

● Analyzing and evaluating the effects of futuristic changes on the organization.
● Can be a useful framework during the situation of Merger and Acquisition involving
striking an alignment between the key processes of an organization.
● Providing a commentative framework for implementing a strategic plan of action.
● The model can be effectively applied to various teams or groups or projects as well.

21
The McKinney 7 S model refers to the seven key interrelated or integrated elements of an
organization which are subdivided into hard and soft elements:

The Hard elements are within the direct control of the management as it can be easily defined and
identified. The following elements are the hard elements in an organization.

1. Strategy: It is the plan of action, or the roadmap or the blueprint by way of which an
organization gains a competitive advantage or a leadership edge.

2. Structure: This refers to organizational structure or the reporting pattern.

3. Systems: This includes the day to day activities in which the staff members involve

themselves for ensuring the completion of their assigned tasks.

The Soft elements are less tangible and are difficult to be defined and identified as such elements
are more governed by the culture. But according to the proponents of this model, these soft
elements are equally important as the hard elements in determining an organization’s success as
well as growth in the industry. The following elements are the soft elements in an organization:

1. Shared Values: The superordinate goals or the core values which get reflected within the
organizational culture or influence the code of ethics.

2. Style: This lays emphasis on the leadership style and how it influences the strategic decisions,
people motivation and organizational performance.

3. Staff: The general staff or the capabilities of the employees

4. Skills: The core competencies or the key skills of the employees play a vital role in defining
the organizational success.

22
 Fig.no.3.1

MCKINSEY 7S MODEL:

As per the above diagram, the shared values in the center of the model influence all the other
elements of the model which are interconnected and interrelated. The rest other elements
originate from the very reason for the existence of the organization which is the vision which is
formed by the creators of the values in an organization. If the values change, the rest other
parameters equally undergo a change.

The 7S model identifies the inconsistencies or gaps between various elements and provides a
strategic plan of action for reaching from the current state to the desired organizational state.
The alignment between each element can be checked by paying attention to the following
steps:

23
 ● Assessing the Shared Values: Assessing whether the shared values are in consistency
with the elements such as structure, systems and strategy and if not then determining
what may be changed.

● Assessing the Soft Elements as well as the Hard Elements in terms inter dependence and
alignment between them and the possible course of action if these elements do not
support each other.

● Making changes or adjustments and then analyzing whether these elements function in
alignment or not.

According to Waterman and Peters, this model can be used by following five steps: The first step
involves identification of those elements of the framework which do not align properly. It equally
involves assessing the inconsistencies in the relationships between all the elements. The second
step is concerned with the organizational design optimally and this optimal fit will be different for
different organizations. The third step involves deciding the course of actions or the changes which
are required to be implemented. The fourth step is the actual implementation of the change and the
final stage or the fifth stage is the final review of the 7S framework.

HARD’S

24
A. STRATEGY:

STRATEGY OF THE PARSONS NUTRITIONALS PRIVATE LTD.`

● The Strategy of organization is to fulfill its customer by giving better support of its
customer.
● To affect the collaboration of the workers by fulfilling their social, economic
psychological needs through appropriate welfare projects and advantages.
● Keeping in mind the end goal to increment the quality, efficiency and furthermore to
expand moral of the employees.
● To affect training and development to workers, to upgrade the expertise and learning to
the changing innovation to improve its quality.
● To adopt advance technologies to achieve competitive advantage and to the power of
expected targets.
● Since organization manufacturing for all the MNC`s target and conveyance.
● The Strategy is clear to guarantee target accomplishment with quality from ability and
trained resources.

B. STRUCTURE:

25
Definition:

Structure describes the chain of authority and obligation in an organization those connections are
frequently diagrammed in hierarchical outlines. Most organization utilize some mix of structure
ones-to achieve their desires. A structure is the formalizing of connections, parts and obligations
with the goal that it will acknowledge and perform work.

Structure is an appointment expert framework implies the organization structure divides every
division it autonomous part and basic leadership the departmental heads will answer to
administration subsequently structure is clearly delegation authority.

C. SYSTEM:

Parson nutritional pvt ltd is an organization, which is orderly in doing everyday work and any work
concerned is done in an extremely systematic and complex way. The different frameworks that
exist at Parson Nutritional are as following:

● Quality control framework

● Procurement framework

PURCHASE SYSTEM OF PARSONS NUTRITIONALS:

26
Buying the crude material, these are required for the production of biscuits, oats, chocolates and
food items.

Parsons nutritionals private ltd. has approaches and standard working methodology for
guaranteeing the work keeps running in methodical way. These are altogether observed through
internal audit and certification audits.

SOFT’S

I. STYLE:
Style is one of the seven levels which top control can use to bring about organizational changes.
The style of an undertaking in accordance with the Mckinney's frame work will become
obvious through the pattern of action taken with the aid of contributors of the best
control assemble over a time period. The parts of business by methods for human
beings down the employer reporting connections may furthermore convey the style of
the organization.

Parsons encourages participative administration style to guarantee quality and safe items. It
includes every one of the representatives, temporary workers, advisors, business partners and
others.

Participative leadership style of best administration at Parsons Nutritionals Pvt Ltd.

● Maintain discipline inside the organization.

● Gives directions and orders to the subordinates.
● Listened to subordinates and reacts to their desires.
● Takes critical choices for the institution.

27
 ● Maintain unity in the company.
● Inspires and inspires the various people of his organization.
● Attain or plan focuses for his organizations.
● Maintain discussion inside the office.

II. STAFF:

In Parsons there are 2 types of staff:

● Permanent workers:
Permanent Workers are a selected through organization straight forwardly through walking,
campus recruitment and references. Those are trending different phases of training there after
permitted to convey the work.

● Out sources/contractual workers:

Contractual labourer’s named through contractual workers and frequent trainings are directed or
desired work.

III. SKILLS:

Parsons empowers and well-trained ability required for manufacturing and packing of desired item
through small training projects to report the expertise on following strategies those are

● Skill matrix
● Skill gap analysis
● Training identification
● Class room trainings
● Work shop trainings
● On the job trainings and so on.

28
IV. SHARED VALUE:

A shared value is a fundamental trademark or attitude promote by an organization to

persuade the conduct of individuals from the organization. In basic words, shared values are what
cause regions. The organization creates great quality items for which it has additionally gotten an
award.

● Customer services and quality items:

Organization needs to keep up customer connection and development. For the reasons, it is
meeting them periodically to listen their necessities and anticipating exception and to provide
quality items at reasonable costs.

● Social welfare:
The organization is routinely engaged with social welfare exercises. It is giving medical and other
facilities to its employees and furthermore giving donating funds to the society for their prosperity.

● Environment pollution control:

To guarantee in operations and most standards of surroundings wellbeing in its manufacturing
plants and townships through taking appropriate and effective measures.

29
Porter’s Five Force Model :

Porter’s five forces model, refers to a framework based on the competitive analysis,
introduced by Prof. Michael E. Porter. The model determines the intensity of competition in any
industry is a mix of five competitive factors operating in different areas of the whole market.

The Porter’s five forces is a broadly used model in business that refers to the five important
factors that drive a firm’s competitive position within an industry.

Porter’s five forces means a business model that identifies the main factors contributing to a
company’s competetive edge over its competitors.

Porter’s Five Force Model includes 5 competitive factors. They are :

● Competition rivalry.
● Threat of New Entrants.
● Threat of Substitution.
● Bargaining power of Buyers.
● Bargaining power of Suppliers.

30
 Fig.no.3.2

Porter’s Five Force Model with reference to Organization :

The Biscuit Industry :

The Indian Biscuits Industry is the largest among all the food industries, with a turnover of
around Rs.3000 Crores. India is known to be the second largest manufacturer of biscuits in the
world, the first being the USA.

Biscuits were assumed as sick-man’s diet in earlier days. But today, as a result of them being
easy to carry, tasty to eat, cholesterol free and reasonable at cost, they have become one of the
most loved fast food products for every age group.

Industry Rivalry :

● Immense competition and a multitude of producers.

● Cyclic nature of demand, ensures an environment of cut-throat competition.
● Every manufacturer seeks to gain a competitive edge.
● Companies like Britannia, ITC, Parle-G, Parmount nutritions, Sunfeast, are the leading
companies in this industry.

31
Threat of New Entrants :

● Governmental Regulations and Policies.

● Multiplicity of food laws.
● Hike in central excise duty on biscuits.
● Dynamic consumer preferences.

Threat of Substitutes :

● Low switching costs.

● Extremely price sensitive industry.
● Numerous substitutes, in both the organised as well as unorganised sector can be found in
the biscuit industry.

Bargaining power of Suppliers :

● The biscuit industry’s principal raw material requirements are that of wheat flour, sugar,
shortenings, salt, sal volatile, sweet jelly, glucose, and starch.
● High supplier concentration across the country for the supply of wheat flour, sugar and
salt.
● The biscuit processing machines are usually purchased from certain select suppliers as
such advanced technology is not easily accessible in the Indian markets.
● Thus, the threat of bargaining powers of suppliers is limited.

32
Bargaining power of Buyers :

● Tastes and preferences of consumers in this products change and hence brand loyalty is
low in these products.
● Low switching cost makes consumers switch from one supplier to another.

CHAPTER-4

PARSONS NUTRITIONALS PRIVATE LIMITED COMPANY

SWOT ANALYSIS

Fig.no.4.1

33
STRENGTHS:

● Brand building capacities: Brand image of the organization existing in the industry, each
organization has a solid brand image to buyers.
● Diversified item scope of the industry covering all sections. The depth of circulation
● Low and mid value of the item.
● The strength of the organization is, that it gives national and multinational organizations
with manufacturing and packaging services at standard with the best in the industry.
● The organizations primary concentration is to give 100% consumer satisfaction.

● It gives services to extensive variety of items including food items, biscuit, oats items
and some more.
● Parsons Nutritionals adopts environmental management and occupational health and
safety management standard with universal best approaches. The organization is resolved
to promote the security of the employee and to ensure the environment

WEAKNESS:

● Dependence on retailers and grocery stores for showing diversified items on shelf.
● Lack of technology up gradation
● Transportation Problem
● Connectivity issue (communication problem, signals, internet)
● Very small market share outside India
● Lack of poor infrastructure facilities
● The parson nutritional pvt ltd company is out of the city

34
 ● Similar products produced by many companies like Horlicks biscuits, Cadbury gems,
Oreo biscuits, Horlicks oats, etc.

OPPORTUNITIES:

● Indian Biscuit Manufacturers' Association (IBMA) gauges yearly development of around

20% in next couple of years.
● Has a decent brand name and a decent market share.
● Attracting food manufacturing MNC because it has a very good quality standard.
● Rise in purchasing power of consumer
● Biscuit market has very good sales
● Introducing nutrition products to attract more customers
● Expansion in other countries.
● Strong demand for biscuits in Karnataka and neighbouring states

THREATS:

● Competition from another brand

● Rise in price of raw materials

35
 ● Improving manufacturing capacity required more capital

CHAPTER-5

FINANCIAL STATEMENT ANALYSIS

PARSONS NUTRITIONALS PRIVATE LTD.

COMPARATIVE BALANCE SHEET

AS ON 31st MARCH 2017 AND 31st MARCH 2018

SL PARTICULARS The Year The Year Absolute Percenta

NO Ending Ending Changes ge
. 31/3/2017 31/3/2018 (Increase or Changes
Decrease) (Increase
or
Decrease

36
 )
%

1 Sources of Funds
A Shareholders Funds
Share Capital 10,00,00,000 12,00,00,000 2,00,00,000 20%
Reserves & Surplus 9,28,39,507 10,40,00,000 1,11,60,493 12.02%
Money pending - 7,40,000 (7,40,000)
Allotment of shares
Total Capital/ 19,28,39,507 22,98,39,504 3,69,99,997 19.18%
Liabilities (A)
B Non-current
Liabilities
Long-term 9,00,00,000 8,00,00,000 (1,00,00,000) (11.11)%
Borrowings
C Current Liabilities
Short-term (11,00,000) (11,00,000)
Borrowings
Bills payable 1,19,55,000 3,19,75,000 2,00,20,000 167.46%
Short-term 2,01,00,000 - (2,01,00,000) (100)%
Provisions
Other current 4,87,76,000 6,87,75,000 1,99,99,000 41%
Liabilities
Total current 8,08,31,000 3,08,31,000 (5,00,00,000) (61.85)%

37
 liability (C)
Total source of 44,36,70,507 45,97,78,109 1,61,07,602 3.63%
Funds(A+B+C)
2 Application of
Funds
A Fixed Assets
Intangible Assets - - - -
Tangible Assets 27,34,08,000 28,45,00,000 (1,10,92,000) (3.89)%

Total Fixed Asset 27,34,08,000 28,45,00,000 (1,10,92,000) (3.89)%

(A)

B Loans and
Advances
Long-term loans & 6,60,19,507 7,88,39,014 1,28,19,597 19.41%
advances
Total loans & 6,60,19,507 7,88,39,014 1,28,19,597 19.41%
Advances (B)
Bills Receivables 2,70,19,000 4,27,47,109 1,57,28,109 58.21%
Inventories 6,98,50,000 8,98,60,000 2,00,10,000 28.64%
Cash & Cash 23,74,000 40,57,000 16,83,000 24.35%
equivalents
Total current Assets 10,42,43,000 8,64,07,891 (1,78,35,109) (17.10)%
(C)

38
 Total Applications 44,36,70,507 41,75,62,905 (2,61,07,602) (5.58)%
of Funds (A+B+C)
Table.no.5.1

INTERPRETATION

● In the above comparative balance sheet, there is an decreased by (1,10,92,000)

(3.89%).and long term debts are also decreased by (3,00,000) (17,64%).it means the firm
lowered long term debts to buy fixed assets.

● The current assets are decreased by (17.10%) . and current liabilities are also decreased
by (61.85%). it means the business paid all its current liabilities out of current assets.

● The total capital/liabilities increased by (3,69,99,997) (19.18%) . and the total loans and
advances were increased by (1,28,19,597). (19.41%).
● The bills receivables increased by (1,57,28,109). (58.21%)
● The cash & and cash equivalents increased by (16,83,000). (24.35%)

CONCLUSION:

● In the above comparative balance sheet, the business lowered working capital finance to
meet its long term as well as short term obligation, it is not good for the business to use
working capital to long term assets. And same as well as current assets and current
liabilities.
● In the firm only, increased capital/liabilities and loans and advances

39
 PARSONS NUTRUTIONALS PRIVATE LIMITED

COMPARATIVE PROFIT & LOSS ACCOUNT

FOR THE YEAR 31 MARCH 2017 AND 31 MARCH 2018

SL PARTICULARS Year ending Year ending Absolute Percentage

NO 31/3/2017 31/3/2018 Changes Change
(Increase or (Increase or
Decrease) Decrease)

1 INCOME

Sales of Products 81,37,70,689 92,56,70,789 11,19,00,100 13.75%

40
 (Gross)

Less:Excise duty 65,69,789 71,78,698 6,08,909 9.26%

Sales of Products (Net) 80,72,00,900 90,72,00,900 10,00,00,000 12.38%

Other operating 56,48,797 64,89,978 8,41,181 14.89%

revenues

81,28,49,697 91,36,90,878 10,08,41,181 12.40%

Other Incomes - - - -

Total Income (A) 81,28,49,697 91,36,90,878 10,08,41,181

2 Expenditure

Cost of Goods 64,81,62,935 70,63,82,396 5,82,19,461 8.96%

consumed

Buying of traded goods - -

Direct costs 3,03,07,427 3,06,07,597 3,00,170 0.99%

Interest & Financial 1,61,36,585 1,43,36,565 (18,00,020) (11.15)%

Expenses

Other expenses 1,45,93,105 1,47,67,098 1,73,993 1.19%

Depreciation in the year 1,08,10,138 96,10,325 (11,99,813) (11)%

Total Expenses (B) 72,00,10,190 77,57,03,981 5,56,93,791 7.73%

Profit before Tax (A- 9,28,39,507 13,79,86,897 4,51,47,390 48.62%

B) PBT

Provision for tax - - - -

Profit after Tax 9,28,39,507 13,79,86,897 4,51,47,390 48.62%
Table.no.5.2

INTERPRETATION:

● In the above Comparative Profit and Loss Account the Net sale as been increased

41
 by 10,00,00,000. 12.38%. compared with year end 31/03/2017 and year end
31/03/2018 profit and loss account.

● Other operating revenue also increased by 8,41,181. 14.89% compared with year
end 31/03/2017 and 31/03/2018 profit and loss a/c.

● Cost of goods consumed increased by 5,82,19,461. 8.98% comparative with the year of
31/03/2017 and 31/03/2018 profit and loss a/c.

● Interest and financial expenses are decreased by (18,00,020). (11.15%). And depreciation
in the year are also decreased by (11,99,813). (11%). Comparative with the year of
31/03/2017 and 31/03/2018 profit and loss a/c.
●

CONCLUSION:

● In the above comparative income statement it is found that the company is planned well
to meet its profit after tax obligation 4,51,47,390 . 48.62% and al through company
requirement.

PARSONS NUTRITIONALS PRIVATE LIMITED.

BALANCE SHEET AS ON 31/3/2017 AND 31/3/2018

SL PARTICULARS The year ending The year ending

NO 31/3/2017 31/3/2018

42
1 Sources of Funds
A Share Holders Funds
Share Capital 10,00,00,000 12,00,00,000
Reserves & Surplus 9,28,39,507 10,40,00,000
Money pending allotment for - -
shares
B Non-current Liabilities
Long-term Borrowings 9,00,00,000 8,00,00,000
Long-term provisions 8,00,00,000 7,00,00,000
C Current Liabilities
Short-term Borrowings (11,00,000)
Bills Payables 1,19,55,000 3,19,75,000
Other current Liabilities 4,87,76,000 6,87,75,000
Short-term provisions 2,01,00,000 -
TOTAL SOURCE OF FUNDS 44,36,70,507 45,97,78,109
2 Applications of Funds
A Fixed Assets
Tangible assets 2,70,19,000 2,60,19,090

Intangible assets - -
B Current Assets
Bills Receivables 2,70,19,000 2,60,19,090

43
 Inventories 6,98,50,000 8,98,60,000

Cash and Cash Equivalents 23,74,000 40,57,000

Short-term loans and Advances 50,00,000 30,00,000
TOTAL APPLICATIONS OF 44,36,70,507 41,75,62,905
FUNDS
Table.no.5.3

PARSONS NUTRITIONALS PRIVATE LIMITED Formatted: Centered

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED

31/3/2017 AND 31/3/2018

SL PARTICULARS Year ending Year ending

NO 31/3/2017 31/3/2018
1 INCOMES

44
 Sales of Products (Gross) 81,37,70,689 92,56,70,789
Less: Excise Duty 65,69,789 71,78,698
Sales of Products (Net) 80,72,00,900 90,72,00,900
Other operating revenues 56,48,797 64,89,978
81,28,49,697 91,36,90,878
Other Incomes - -
TOTAL INCOMES (A) 81,28,49,697 91,36,90,878
Expenditures
Cost of goods consumed 64,81,62,935 70,63,82,396
Buying of traded goods - -
Direct costs 3,03,07,427 3,06,07,597
Interest and Financial expenses 1,61,36,585 1,43,36,565
TOTAL EXPENSES (B) 72,00,10,190 77,57,03,981
Profit Before Tax (PBT) (A-B) 9,28,39,507 13,79,86,897
Provision for tax - -
Profit after tax 9,28,39,507 13,79,86,897
Table.no.5.4
Ratio Analysis :

Net Asset Ratio :

In Finance net assets refers to the value of a company’s assets minus its liability for
individual the concept is the same as net worth.

Net Asset Ratio = Sales / Total Asset

45
 Year Sales Total Assets Ratio

2016-2017 81,37,70,689 443670507 1.8341

2017-2018 925670789 417562905 2.2168

Graph no. 5.1

Interpretation :

The above table shows that the company’s Net Asset Ratio is increased from the year 2016-
17 to 2017-18, which is a positive growth sign of a company.

Net Profit Ratio :

Net Profit Ratio= Net Profit / Net Sales

46
 Year Net profit Net Sales Ratio

2016-2017 92839507 80,72,00,900 0.1150

2017-2018 13,79,86,897 90,72,00,900 0.1521

Interpretation :

The above table shows that the company’s Net Profit Ratio is increased from the year
2016-17 to 2017-18, which is a positive growth sign of a company.

Debt Equity Ratio :

Debt Equity Ratio = Debt / Equity

47
 Year Debt Equity Ratio

2016-2017 60731000 100000000 0.60731

2017-2018 100750000 120000000 0.83958

Graph no.5.3

Interpretation :

The above table shows that the company’s Debt and Equity ratio, which is moderate in the
result.

Current Ratio :

Current Ratio = Current Assets / Current Liabilities

48
 Year Current Assets Current Liability Ratio

2016-2017 131243000 80831000 1.6236

2017-2018 122936090 99650000 1.2336

Graph no.5.4

Interpretation :

The above table shows that the company’s current liability is increased from the year 2016-
17 to 2017-18, which is not a positive change in company.

Net Profit Margin Ratio :

49
 Net Profit Margin Ratio =Net profit Before Interest and tax /Sales Revenue

Year Net profit Before Sales Revenue Ratio

Interest and tax

2016-2017 92839507 812849697 0.1142

2017-2018 137986897 913690878 0.1510

Graph no.5.5

Interpretation :

The above table shows that the company’s Profit Margin Ratio do not have a remarkable
changes in the year of 2016-17 and 2017-18.

50
 CHAPTER-6

LEARNING EXPERIENCE:

The internship work has made a sense of practical introduction and illumination at the top of the
priority list with reference to what really an organization and how theoretical ideas are practiced.
With just theoretical learning, a few administration ideas were marginally hard to analyze. In any
case, after the internship work the specialist felt enabled with certainty to understand different
management ideas in a business way.

The internship work at Parsons Nutritionals Private Ltd has given a clear image of an organization.
The internship work helped a considerable measure in reviewing the theoretical ideas, which was
learnt in the MBA course. The analyst also went over real problems faced by organization in
finance, HR and so on., and the path in which the management handled those issues.

During the internship work, it was realized that management is the back-bone of each organization.
Entire experience in the organization became very pleasurable. The reaction and help got from the
administration and group of employees. Mr. Shashidhar, HR manager who guided me on this
internship. The atmosphere and effective circumstance were empowering inside the
organization/company.

The internship was conducted for 4 weeks, and it starts with an Introduction about Internship,
Industry profile and company’s profile, Back ground, Nature of business, and it’s Vission,
Mission, Quality Policy, Production/Service profile, Ownership pattern Achievements and
Awards and Future growth and prospects McKinney’s frame work, SWOT Analysis and it deals
with financial statement analysis, learning experience, Annexture and Bibilography.

51
BIBLIOGRAPHY:

Referred links:

https://www.managementstudyguide.com/mckinsey-7s-change-model.htm

https://en.wikipedia.org/wiki/Oreo

https://www.hq.nasa.gov/iwgsdi/Manufacturing.html

Bibliography
David, F. R. (2005). Strategic Management (concept & Cases). Prentice -Hall of India Pvt Ltd.
Dr.Jawaharala. (2010). Financial Analysis. Himalaya Publishing House.
Dr.Sri.Maheshwari. (2010-2011). Accounting for Management. Vikas Publishing House.
Jones, C. W. (2009). Strategy Management Integrated Appraisal. Houghton miffin co.
Robert A Pitts, D. L. (2009). Strategic Management. South Western Census Learning.

52
53
54
55