A

INDUSTRIAL TRAINING REPORT ON:

VANRAJ BESAN MILL PVT .LTD.

PREPARED BY:

DALAL KASIM

B.B.A. SEM 4

ROLL NO 16

GUIDED BY:

PROF. KAUSAR MARFANI

SUBMITTED TO:

BHAKT KAVI NARSINH MEHTA UNIVERITY

INSTITUTE:

NOBLE GROUP OF INSTITUTIONS

JUNAGADH

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 DECLARATION:

Dalal Kasim

S.Y.B.B.A Sem:4

Noble college,

Junagadh.

I under signed Dalal kasim student of B.B.A. SEM 4 here by declared that the project
report is my own work and has been carried out under the guidance of Prof .Kausar marfani
of Noble College, Junagadh.

Further I declare that this report has not been submitted to any university for any other
examination.

Place: Junagadh Signature:

Kasim dalal

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 ACKNOWLEDGEMENT:

My sincere efforts have made me to accomplish the task of completing this project. I
have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals.

I would like to express my sincere gratitude to all faculty members of the college for
providing me with facilities required to do my project.

I am highly indebted to Prof.Kausar marfani for his valuable guidance which has
promoted my efforts in all the stages of this project work. My thanks and appreciation goes to
my classmates, in developing my project and the people who have willingly helped me out
with their abilities.

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 MAIN INDEX

SERIAL NO. CONTENTS PAGE NO

1 General information 5-15

2 Marketing Department 16-27

Human Resource
3 28-47
department
Finance and accounting
4 48-67
Department

5 Result and Finding 68

6 Limitation of the study 69

7 Conclusion/Suggestion 70

8 Biblography 72

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 GENERAL INFORMATION

INDEX

SR NO CONTENT

1 Introduction to industry

2 Top 10 major companies

3 Introduction to company

4 History and development of unit

5 Size of unit and form of organization

6 Product profile

7 Manufacturing process

8 Organization structure

9 Time keeping system

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 INTRODUCTION OF INDUSTRY

 Shree Vanraj Besan Mill Private Limited is an unlisted private company incorporated
on 16 November, 2006. It is classified as a private limited company and is located in
Junagadh, Gujarat.

 Under the one roof with more than 150 workers working in a historical city of
Junagadh, Jamnagar, Bhavnagar Amreli and Porbandar.Also in the cities like
Ahmadabad Vadodara, Surat, Bangalore, Jaipur, Delhi, Ludhiana, Jimmy Hisaar and
with all leading grain market in Saurastra.

 Industry Directors:-

 c
DIN: 01645881
APPOINTMENT DATE: 16 Nov, 2006

 SAVITABEN DILIPBHAI MEGHPARA

DIN: 01648494
APPOINTMENT DATE: 16 Nov, 2006

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 Top 10 Major Companies

Name Started on Product view

1. Tata Sampann
2015

2. Fortune
2000

3. Rakesh Group
1975

4. Natureland Organic
2002

5. Organic Tattva
2012

6. Pro Nature
2006

7. Rajdhani
1966

8. 24 Mantra
2004

9. Sri Sri Tattva

2020

10. Pure & Sure

2011

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 Introduction Of Company
Name: Shree vanraj Besan Mill PVT.L.T.D

Address: Near marketing yard, yard road,

Dolatpara ,Junagadh
Mobile: (+91)7600049300,9825150222

Phone: (0285)2661346,2661745

Company No 049385

E-Mail: vanrajbesan@yahoo.com

Bankers: Axis bank ltd., HDFC Bank Ltd.

Segment: Staple food

Industry: Food and Beverages
Company size: Unreported

Company class: Private

gCompany category: Company limited by shares

Company sub category: Non-govt.Company
Paid up capital: 30lakh

Authorised capital: 35Lakh

 Shree Vanraj Besan Mill Private Limited is an, private company incorporated on 16
November, 2006. It is classified as a private limited company and is located in,
Gujarat. It's authorized share capital is INR 35.00 lakh and the total paid-up capital is
INR 30.00 lakh.

 Products & Services: Atta, Soji, Besan, Meinda , Rawa.

Category: Manufacturer
 The current status of Shree Vanraj Besan Mill Private Limited is - Active.
 The last reported AGM (Annual General Meeting) of Shree Vanraj Besan Mill Private
Limited, per our records, was held on 30 September, 2022. Also, as per our records,
its last balance sheet was prepared for the period ending on 31 March, 2022.

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 History and Development of Unit

 Shree Vanraj mill Pvt.Ltd. has started this business in the decade of 1976 in junagadh.
Which has a widespread rural area. They have established a partnership firm the
name “SHREE VANRAJ BESAN MILL CO.” now converted into “ SHREE
VANRAJ BESAN MILL PVT.LTD.” The main business activities are manufactured
and trading of, Besan , Maida, Rawa, Sooji and Atta. Under the one roof with more
than 150 workers working in the junagadh a historical city.

 Their business dealing are in saurastra region and with all leading grain market in
Saurastra.

 The company holds remarkable market share compare to others. At present company
has 42 brand scenario of agro base foods processing industries.

 At present company has an established production capacity 29,000 M.T. per year of
Besan and 21,900 M.T. Per year of Maida , Rawa, Sooji and Atta. This runs at the
level of 95% of the capacity round the clock 365 days. VANRAJ GROUP OF
COMPANIES has a best level of Financial and marketing strategy in the present
market.

 At present it has 5000 customers of traders brokers, Hoteliers, Register Institution

Farsan & Sweet Market.

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 Size of unit

 According to industrial policy 1991 there are three types of industries are existing in
india:

 Small Scale Industry (more than 25 lakh but less than 5 cr).

 Medium Scale Industry (more than 5 cr but less than 10 cr).

 Large Scale Industry (more than 10 cr).

 SHREE VANRAJ BESAN MILL PVT. LTD. Can be placed as a small scale industry.

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 Forms Of Organization

 SOLE PROPRIETERSHIP:- A business owned and operated by a single person. One

of the simplest and easiest business types to set up.

 GENERAL PARTNERSHIP:- A business owned by two or more people who share

responsibilities and profits.

 PRIVATE LIMITED COMPANY:- It refers to the company which is not listed on a

stock exchange and the shares are held privately by the members concerned. In short
the company is owned by its founders management, or a group of private investors.

 PUBLIC LIMITED COMPANY:- It implies a company that is listed on a recognized

stock exchange and whose shares are traded openly by the public.

 CORPORATION:- A type of fully-Independent business with shareholders. One of

the most complex business type.

 LIMITED LIABILITY COMPANY:- A mixture of partnership and corporation

designed to make it easier to start small business, One of the most popular business
type for startups.

 NON-PROFIT ORGANIZATION:- A type of business that uses its profit for

charitable purposes. Tax-exempt, but must follow special rules.

Shree Vanraj Mill Pvt. Ltd. Is a “Private Limited Company”.

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Product Profile

Price 70 to 75 rs.
BESAN
Per kg

Price 45 to 50 rs.
MAIDA
Per kg

Price 30 to 40 rs.
RAWA
Per kg

Price 25 to 35 rs.
SOOJI
Per kg

Price 25 to 30 rs.
PESA ATTA
Per kg

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 P
n
o
C
F
D
e
t
ld
M
h
is
g
k
c
a
Besan Processing Unit:-
Manufacturing Process

 Cleaning:- Eliminate pebbles, broken grains and other impurities from Gram.

 Conditioning:- Based on physical properties of gram dal, remove other coloured

gram halves. Water content, if any, should be removed by drying to maintain
minimum 12 to 14% moisture.

 Milling:- The gradual milling system should be adopted for milling and operation
consists of breaking, scalping and purification, reduction and dressing. Thus obtained
flour is further pass through battery of sieving machines to obtained super fine grade
and fine grade material. The husk separated is collected from other chutes, whereas
other sieved coarse material again feed-back for milling into roller machine.

 Finishing:- Sometimes, finished excellent flour (besan) is mixed to obtain a standard

and uniform desired properties, characteristics and colour.

Besan is packed directly in gunny bags, poly-line gunny bags for bulk selling and in
laminated pouches or poly-bags for retail selling

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P
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Organization structure

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 Time Keeping System

Time playing important role in active anywhere and any activity without the time
duration no one can perform their tasks within a time durations no one direction without time
no one can mention all the schedule.

In the time keeping system the arrival and depature of the employees is recorded.

 The Vanraj Besan Mill has its Own Time Keeping System as Follow:-
 Vanraj besan mill was working days Mon to Sat Sunday will be holiday if the work
was there then they should go and work otherwise Sunday will be holiday.

SR NO SHIFTS TIME DURATION

1 First shift 8:00am to 8:00pm 12 Hrs

2 Second shift 8:00am to 8:00pm 12 Hrs

3 Office work time 9:00am to 7:00pm 11 Hrs

4 Break Time 12:30am to 2:00pm 1.5 Hrs

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 MARKETING DEPARTMENT

Index

SRNO CONTENT

1 Introduction

2 Product decisions

3 Market segmentation

4 Pricing Policies

5 Market Promotion

6 Channel Distribution

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 INTRODUCTION

In the Vanraj besan company the marketing department Head Praful Bhai Patel which
was head of marketing department and control all marketing department.

Marketing is form of communication between a business house and its customers with
the goal of selling its products or services to them. Goods are not complete products until
they are in the hands of customers. Marketing is that management process through which
goods and services move from concept to the customers.

, while also driving potential and recurring customers to a company’s products

or services.

Here are some roles that the marketing department plays within the company:

 Create image and manage brand image

 Analyze marketing trends
 Create promotional strategy
 Monitor competition
 Receive customer feedback
 Manage marketing budget
 Expand organization reach

In the market an entrepreneur has to manage all the marketing activities in the way that
can produce goods and services according to needs and wants of customer.

It is the marketing department job to reach out to prospect

PRODUCT DECISION

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 Anything of value that fulfills the requirement of the end user is known as a product.
It can be goods or services, tangible or intangible, physical or psychological. The customers
and competitors largely depend upon the products offered by the company.

Product decision in marketing refers to the company’s mindful decisions, major or

minor regarding their product.

It consists of 4P’s of Marketing-: Product, Price, Place and Promotion.

Organization takes these decisions to attain their objectives and become profitable in
the long run.

 Elements of Product Mix:-

1. Product Decision:

 Product variants
 Quality, size, style
 Branding, labeling, Packaging

2. Price Decision:

 Price list, discount, credit terms

3. Promotion Decision:

 Advertising, sales promotion, personal selling

 Publicity

4. Place Decision:

 Identification of intermediaries, physical distribution

 Type of channel

“Vanraj Besan Follow this product decision”.

MARKET SEGMENTATION

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 In market, market segmentation is the process of dividing a broad consumer or
business market, normally consisting of existing and potential customer, into sub-groups of
consumer based on some type of shared characteristics.

The purpose of market segmentation is to identify different groups within your target
audiences so that you can deliver more targeted and valuable messaging for them.

According to Stanton,”Market segmentation consists of taking the total heterogeneous

market for a product and dividing it into several rule market or segments each of which tends
to be homogeneous in all significant aspects.”

In India we have three main automobile industries at Bombay, Calcutta and Chennai.
Vanraj Industry Concentrates more in Bombay and Pune as it is in large Market.

The market segments should be measurable and large enough to generate consistent profits
and justify the company's marketing and other investments .

The product mix and pricing strategy would depend on the location and the competitive
environment.

PRICING POLICY

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 A pricing policy is a company’s approach to determining the price at which it offers a
good or service to the market. Pricing policies help companies make sure they remain
profitable and give them the flexibility to price separate products differently.

Especially those just getting into the besan or looking to start seriously besan business
in order to earn some income; struggle with how to cost their products correctly.

 For premium pricing:-

This refers to costing a product at a high price due to high quality. The target market
is usually consumer looking for good quality; who aren’t worried about budget.

 The vanraj besan pricing policy of product is decided as in which the

people can purchase easily and the give best quality but premium
quality price is different.

MARKET PROMOTION

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  After deciding pricing policies, the next stage is to decide about how to plan
promotional strategy to create awareness, persuade, and convince consumer by
highlighting the powerful selling points by using various promotional tools.

 The market promotion can be done through social media like Instagram, Whatsapp,
Facebook, Twitter, google, etc.

 The businesses may want to quickly boost their customer base and pull in earnings
fast to get a head start. These businesses should definitely be investing in digital
advertising in at least a couple of categories, depending on the type of product they
sell, to experiment and see which type of advertising pulls in the most leads. A larger
business, on the other hand, may want to hone in on one type of advertising that
seems to be working well.
 Vanraj besan were doing market promotion through pampletes and banner in the
market or in shop painiting or wall painting doing there marketing and do there
product promotion through holdings.

CHANNEL OF DISTRIBUTION

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 Distribution channels are the paths that products and services take on their way from
the manufacturer or service provider to the end consumer.
1. Two-Level Channel:-

Wholesalers generally make bulk purchases, buy from the producer, and divide the goods
into smaller packages to sell to retailers. The retailers then sell the goods to the end buyers.
The two-level channel is suitable for more affordable and long-lasting goods with a larger
target market

 The vanraj besan is two level channel which they can do manufacture and they give it to
wholesaler to retailer to customer.

HUMAN RESOURCE DEPARTMENT

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SR NO CONTENT

1 Introduction

2 Recruitment, Selection

Training and Development

3
Programme

4 Promotion and transfer policy

5 Wage and Salary Administration

6 Employee Welfare activities

7 Grievance Handling Procedure

INTRODUCTION

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 The Human Resources department (HR department) of an organization
performs human resource management, overseeing various aspects of employment, such as
compliance with labor law and employment standards, interviewing and selection,
performance management, administration of Employee benefits, organizing of employee files
with the required documents for future reference, and some aspects of recruitment (also
known as talent acquisition) and employee offboarding. They serve as the link between an
organization's management and its employees.

 The duties include planning, recruitment and selection process, posting job ads,
evaluating the performance of employees, organizing resumes and job applications,
scheduling interviews and assisting in the process and ensuring background checks. Another
job is payroll and benefits administration which deals with ensuring vacation and sick time
are accounted for, reviewing payroll, and participating in benefits tasks, like claim
resolutions, reconciling benefits statements, and approving invoices for payment.HR also
coordinates employee relations activities and programs including, but not limited to,
employee counseling. The last job is regular maintenance, this job makes sure that the current
HR files and databases are up to date, maintaining employee benefits and employment status
and performing payroll/benefit-related reconciliations.

RECRUITMENT AND SELECTION

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 Recruitment and selection is part of a multi-layered process. Recruitment involves
actively seeking out and advertising to potential candidates and obtaining their interest in the
position. Selection refers to the process of determining the best candidate from the pool of
applicants.

 There are 7 Process of recruitment and selection are as follow:-

 Take a look at the Process of recruitment and selection:

1. Receive a job order.

2. Source candidates.
3. Screen applicants.
4. Shortlist candidates.
5. Interview candidates.
6. Conduct testing.
7. Extend a job offer.

 Let us discuss in detail :-

1. Receive a job order:-

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 When you receive a job order from your client, you can get the recruitment process
rolling. A job order should include information about the position you’re filling and a well-
written job description

The job description should tell potential applicants everything they need to know about the
job, including:

 Job title.
 Detailed description of the job.
 Required and preferred qualifications.
 Location.
 Salary range.

If the job description does not give enough information, or if it is not written in a way that
could attract top talent, consider re-writing it.

To find applicable candidates, you need to understand the job order. Ask your client
questions about the job order if you need more clarification.

2. Source candidates:-

 Once you fully understand the open position, the next step of the recruitment and
selection process is to source candidates.

There are many ways you can source passive candidates and active candidates. Active
candidates are those actively looking for work while passive candidates are not. Successful
recruiters are able to source both types of candidates.

 You can source candidates using the following tools and sources of recruitment:-

 Social media.
 Online job boards.
 Your recruiting database.
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  Referrals.

Social media:  is a great tool for finding both active and passive candidates. You can post
job descriptions on your social platforms.

Online job boards:  attract active candidates. And, some job board integration works with
your recruiting software, so you can add applicant information directly into your database.

 Recruiting database:  is a great resource for sourcing candidates. If you use recruiting
software with an applicant tracking system, you have candidate information stored. You can
reach out to candidates to let them know about the open position.

Refer:  you to top talent. Talk to candidates you successfully placed. And, you can work with
other recruiters in split placements by sharing job orders and candidates.

3. Screen applicants:-

 Screening applicants is a vital step in the recruitment and selection process. This is
where you can learn more about each applicant, which helps you narrow down your pool.

You can conduct telephone screenings and include a variety of pre-screening interview
questions. During screenings, ask behavioral interview questions that allow you to learn more
about the candidate’s personality and how they would function in the open position.

Ask candidates about themselves, including their work history and career goals. Verify that
they understand the job description and are qualified.

Phone interviews should last about 30 minutes. Though they won’t be as long as a full
interview, you can still learn enough to help you narrow down candidates. Create a candidate
scorecard to rank candidates and keep track of their responses. Take notes so that you can
compare candidates after you have talked with all of them.

4. Shortlist candidates:-

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 Recruitment shortlisting is the process of advancing a few candidates from your pool.
Your shortlist of candidates should be around three people.

These are the candidates you want to invite for a face-to-face interview with your client. Your
client does not have time for one-hour interviews with 20+ people.

Narrowing down your pool of candidates can be challenging because you don’t want to
advance the wrong candidates. Take the time to learn about each candidate’s experiences,
qualifications, and personality so you can be confident you shortlist the right people.

5. Interview candidates:-

 After you have narrowed down your candidates, you need to pass along their information
to your client. Then, your client will interview the candidates. Typically, you should be
present during interviews to take notes, ask questions, and give your opinion afterward.

The face-to-face interview helps you and your client really get to know the candidates. You
can study their body language and ask more behavioral interview questions. The interview
process helps you and your client get a feel for the candidate’s work ethic.

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Again, use an interview scorecard to rank candidates and compare them later. Rank
candidates on things like experience, education, and skills.

6. Conduct testing:-

 To further test a candidate’s skills, you and your client might consider conducting job-fit
tests. A job-fit assessment test helps you and your client determine how the candidate would
mesh with the company.

A job-fit test can take anywhere from 30 minutes to one hour. It asks a series of questions
candidates must answer honestly.

You should also conduct background checks on each candidate. And, you need to check
references to verify information and learn more about their character and work ethic.

7. Extend a job offer:-

 The final stage of the selection process is actually selecting a candidate. Extend the job
offer to the candidate your client wants to hire.

The candidate might try to negotiate the salary your client offers. Talk with your client to see
whether the requested salary is possible.

 Vanraj besan not have they hr manager but in that case the interview taken by marketing
manager or finance manager

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 TRAINING AND DEVELOPMENT PROGRAMME

 Training and development initiatives are educational activities within an organization

that are designed to improve the job performance of an individual or group. These programs
typically involve advancing a worker’s knowledge and skill sets and instilling greater
motivation to enhance job performance.

 Training programs can be created independently or with a learning administration

system, with the goal of employee long-term development. Common training practices
include orientations, classroom lectures, case studies, role playing, simulations and computer-
based training, including e-learning. Sometimes referred to as Human Resource Development
(HRD), most employee training and development efforts are driven by an organization’s
HRD function.

 Objective of Training and development :-

1. Increased Productivity.
2. Quality Improvement.
3. Learning time Reduction.
4. Safety First.
5. Labour Turnover Reduction.
6. Keeping yourself Updated with Technology.
7. Effective Management.

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 1. Increased Productivity:-

 For any company, keeping the productivity at its peak is as important as getting in new
customers for business. Since even a slightest of the disturbance can take the business to the
brink of huge losses. Moreover, to tackle with the immensely growing competition in the
target market, it is important for one to increase the productivity of its workers while
reducing the cost of production of the products.  So, that’s where the training comes as a
savior of the company, jumps in the scenario and takes it out of the dangers bravely.

Training takes the current capabilities of the workers of a brand, polishes it and makes them
learn and devise new and effective methods of doing the same thing, in a repeated manner. In
other words, the training, if done in a proper way, can give your business a whole new look
with a much powerful base as experienced workers at its core.

2. Quality Improvement:-

 Improving the quality of the product is obviously one of the main objectives of training
and development  since it’s not like those times when customers weren’t such quality
conscious. Today’s customer knows what’s better for him and what’s not. Simply said, those
old methods of some sweet talk and business won’t work for much long, because once they
know the reality behind the curtains through the services and products quality, they will leave
the company as it is without giving it, even, a second thought.

Just think of it as if you and your competitor are competing for the same service with some
difference in quality but at the same price, it is obvious that they will choose the one who is
better at handling the task without any quality degradation. Even if your price is a little
higher, then it is most likely the case that most of the customers will come to you.

3. Learning time Reduction:-

 Keeping an eye on the learning capabilities of employees, and providing them the help
which they need, can be highly beneficial in longer runs. This capability of theirs’ is what
that determines how quickly an employee grabs the newly discovered fact and so, shape the
future products on this discovery. The weaker the capability, the harder it is to learn. But this
scenario can also be supported by the usage of proper learning material and experienced
instructors who prefer real-life experience than cramming. So, reducing the learning time is
also one of the main objectives of training and development.

4. Safety First:-

 Safety of anyone, either he is a worker, an officer or even a customer, is not something

that can be taken lightly, especially in cases, where one knows that even a minute mistake can
even lead to life threats. Therefore, providing the knowledge, for using the equipment in a
proper way and creating the life-friendly product, also belongs to one of the major objectives
of training and development. The higher, the employees are better at handling equipment, the
better it is both for the company and for the workers.

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 5. Labor turnover Reduction:-

 No business can flourish well while it is regularly turning over its workforce since it is
obvious that every new workforce will require some time to understand the type of work, its
principle and safety precautions, which lead to decreased productivity. Moreover, it also
diminishes the feeling of self-confidence among the workers, and this really isn’t a good
thing.

On the contrary, training ensures that the company doesn’t need to turn over its workforce
again and again because it prepares the employees to face any situation which proves helpful
in bringing in the feeling of workers. Therefore, the workforce feels safe and secure at a
particular job.

6. Keeping oneself Updated with Technology:-

 Computers and mobile phones are the miracles of the past but the world of today is far
more advanced than that. It’s time for latest technologies capable of connecting the world in
just a blink of an eye. Now, earthlings are trying to reach far off planets to get information
about the life force present there. Newer technologies are rolling in and we could continue to
list it down but we haven’t got time for that.

Training and education to the employees keep them updated with the latest of the additions to
the technologies, methods, techniques and processes. Since it also opens a new gateway for
them to look for a way which is greater in productivity and efficiency but decreases the need
of manual work immensely.

7. Effective Management:-

 One of the primary objectives of training and development process is to give rise to a
new and improved management which is capable of handling the planning and control
without any serious problem. With the knowledge and experience gathered through training,
acting as the guiding light for this newly shaped management, it lets them handle the tough
decisions and confusing realities thus opening the way for bigger and better opportunities for
business for the cause of the brand.

 Vanraj besan company which the training and development programe in which the
training should be given to the worker which was a newly appointed the training period of the
newly people is as per the person upto one month.

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 PROMOTION AND TRANSFER POLICY

Promotion:-

  Is an upward movement on the organizational ladder. It involves shifting an employee

from a lower designation to a higher designation. On taking charge of the higher position, the
employee will have greater authority, status, responsibilities, and so forth. And at the same
time, he will get better remuneration and emoluments.

Transfer:-

is a lateral move on the organizational ladder. It inthvolves shifting an employee from one
place to another, like one branch or department to another. This does not involve a change in
position, job responsibility and remuneration.

Both transfer and promotion are a part of internal mobility within the organization.
Companies adopt this procedure to maintain its effectiveness. Also, it aims at utilizing the
human resources of the organization in the best manner.

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  Promotion:-

Definition: 

 Promotions refer to the entire set of activities, which communicate the product, brand or
service to the user. The idea is to make people aware, attract and induce to buy the product, in
preference over others.

 There are several types of promotions. Above the line promotions include advertising,
press releases, consumer promotions (schemes, discounts, contests), while below the line
include trade discounts, freebies, incentive trips, awards and so on. Sales promotion is a part
of the overall promotion effort.

There are also:

1. Personal selling: 

 One of the most effective ways of customer relationship. Such selling works best when a
good working relationship has been built up over a period of time.
This can also be expensive and time consuming, but is best for high value or premium
products.

2. Sales promotions:

  This includes freebies, contests, discounts, free services, passes, tickets and so on, as
distinct from advertising, publicity and public relations.

3. Public relations:

 PR is the deliberate, planned and sustained effort to establish and maintain mutual
understanding between the company and the public.

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  Transfer:-

 It is a form of internal mobility, in which the employee is shifted from one job to another
usually at a different location, department, or unit. Transfer can either be temporary or
permanent depending on the decision of the organization, and it is initiated by any of the two,
i.e. employer or employee.

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 WAGES AND SALARY ADMINISTRATION

 Wages:-

 A fixed regular payment earned for their services typically paid on an hourly, daily or
weekly basis. Wage compensation pays to employees for work for a company during a
period. Wages or labor charges always pay based on a certain amount of time.

  For example; Employees who receive labor charges cannot also receive a salary, but
they can receive a commission. A commission is a payment for a specific action.
Commissions are most commonly found in the sales industry. Salesmen and women often
pay a base wage and then paid a commission based on how many sales they make during a
period.

 Types of Wages:

In wages are of many types as follows:

1. Piece Wages:-

 Piece wages are the wages paid according to the work done by the worker. To calculate
the piece wages, the numbers of units produced by the worker are taken into consideration.

2. Time Wages:-

 If the labourer is paid for his services according to time, it is called as time wages. For
example, if the labour is paid Rs. 35 per day, it will be termed as time wage.

3. Cash Wages:-

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 Cash wages refer to the wages paid to the labour in terms of money. The salary paid to a
worker is an instance of cash wages.

1. Wages in Kind:-
 When the labourer is paid in terms of goods rather than cash, is called the wage in kind.
These types of wages are popular in rural areas.

2. Contract Wages:
 Under this type, the wages are fixed in the beginning for complete work. For instance, if
a contractor is told that he will be paid Rs. 25,000 for the construction of building, it will be
termed as contract wages.

Concepts of Wages:

The following are the two main concepts of wages:

A. Nominal Wage:- B. Real Wage:-

A. Money Wages or Nominal Wages:-

 The total amount of money received by the labourer in the process of production is called
the money wages or nominal wages.

B. Real Wages:-
 Real wages mean translation of money wages into real terms or in terms of commodities
and services that money can buy. They refer to the advantages of worker’s occupation, i.e.
the amount of the necessaries, comforts and luxuries of life which the worker can command
in return for his services.

 Salary:-

 A salary is a form of periodic payment from an employer to an employee, which may be

specified in an employment contract. It is contrasted with piece wages, where each job, hour

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or other unit is paid separately, rather than on a periodic basis. From the point of view of
running a business, salary can also be viewed as the cost of acquiring and retaining human
resources for running operations, and is then termed personnel expense or salary expense. In
accounting, salaries are recorded in payroll accounts.
 In the vanraj company the wage system is given to daily as per there work and salary
given on the month end or starting in that the bonus and rewards also given to the employee
as per the work.
 Salaries are typically determined by comparing market pay-rates for people performing
similar work in similar industries in the same region. Salary is also determined by leveling
the pay rates and salary ranges established by an individual employer. Salary is also affected
by the number of people available to perform the specific job in the employer's employment.

 Objectives:-

1. Enable an organisation to have the quantity and quality of staff it requires.

2. Retain the employees in the organisation.

3. Motivate employees for good performance for further improvement in performance.

4. Maintain equity and fairness in compensation for similar jobs.

5. Achieve flexibility in the system to accommodate organisational changes as and when

these take place.

6. Make the system cost-effective.

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 EMPLOYEE WELFARE ACTIVITIES

 Employee welfare means “the efforts to make life worth living for workmen.”

 According to Todd “employee welfare means anything done for the comfort and
improvement, intellectual or social, of the employees over and above the wages paid which is
not a necessity of the industry.”

 It can include monitoring and improving work conditions, providing health and safety
resources and infrastructure, accident prevention, and various other measures to ensure that
employees are healthy and safe.
 Vanraj industry provides following amenities to their employees for the purpose of
betterment of their lives:-

 Medical care programs.

 Unemployment benefits.
 Work-injury compensation.
 Arrangements for transport of labour.

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 GRIEVANCE HANDLING

 Grievance handling is the management of employee dissatisfaction or complaints (e.g.

favouritism, workplace harassment, or wage cuts). By establishing formal grievance handling
procedures, you provide a safe environment for your employees to raise their concerns.
 Employee grievance can be defined as the discontentment caused by the gap between
what your employees expect and what they fail to get. It may or may not be justified but
needs to be tackled very carefully. A considerable amount of time must be invested by the
HR person to talk to the employees to understand their grievances.

 Steps of Grievance Handling:-

1. Create the system:

 The first thing is to set up the grievance redressal system for your companies to help your
employees lodge complaints and grievances so that you can resolve them. Something that you
must consider here is-

The grievance procedure must be added to the employee handbook’s content so that all can
easily access it.

Someone must take responsibility for grievance receipts. You must ensure the employees that
their complaints are placed in confidence. Generally, it should be someone from the Human
Resources Department.

The place of receiving the complaints must be within reach to all. That is, it should be located
centrally. If you use a grievance box, it should be in the area of common accessibility.

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As it might involve personal matters, it is essential to focus on confidentiality while dealing
with employees’ grievances. Involving the least number of people prevents the issue from
being widespread.

The complaints put forwards must be followed up timely. That is, no issue should be on hold
for a long time. It should follow a schedule to expect a certain level of responsiveness within
a specified period.

2. Acknowledge the grievance:

 It would help if you listened more than you talk while dealing with employee
grievances. When your employees come to you lamenting over an issue, lend them your ear.

That doesn’t mean that you should resolve it immediately but so that your employees know
that their complaint is acknowledged. Let your employees know that you have received their
report and are willing to do something about it.

3. Investigate:

 Not all issues qualify for a hearing. Generally, it is essential to review whether the
grievance is valid or not. Inquire about the incidents or situations and gather any relevant
information. It may not always be necessary but if the matter involves other staff, they will
need to be informed and given a chance to explain themselves and put forward their own
shreds of evidence.

Once the investigation is over, you can arrange a formal meeting.

4. Hold the formal meeting:

 The employee with the grievance and all the relevant parties should be called to be
present in the formal hearing. The employee can put forward any evidence that backs up the
complaint and explain how they would like the problem to be resolved. Later on, you can
circulate the minutes of the meeting notes.

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5. Take your decision and act accordingly:

 This is the decision making phase. Once you have collected all the required information
and closely examined the situation, you should decide.

You might decide to accept the grievance in whole or part or reject it altogether. It would
help if you let the employee know in writing about the actions that you will take. At the same
time, you can advise the employee on how they should deal with similar situations.

6. Appeal process:

 Your employee might not accept your decision and has the right to an appeal. Here again,
your grievance policy should outline the terms and conditions of the appeal process.

It should start with an appeal letter written by the employees, informing them why they want
the decision to be reconsidered. To ensure impartiality, the appeal should be heard by another
manager or supervisor who was not a part of the first meeting.

An appeal hearing with new evidence should follow this. The decision of the same should be
informed to the employee in writing. If your employee is still not satisfied, it can either be
mediated or escalated to the employment tribunal.

7. Review the situation:

 It’s always healthy to have an objective look back at your decisions. If the employee is
happy with the resolution, you were good at settling the issue. In fact, it can prove significant
to your company culture.
If the prevailing policy ensures justice, it can foster a sense of pride and accountability in the
employees’ work. That’s the benefit of implementing a fast and effective grievance
procedure.

8. Uproot the main cause of grievance:

 Your aim is to go for a long-lasting solution. That is, a formal complaint should be
addressed once and for all. This prevents your employees from coming back again and again
with the same issue.

The key solution here lies in identifying the root cause of the problem and making sure to
solve the problem completely, with the scope of adjustments, if necessary.

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 FINANCE AND ACCOUNTING DEPARTMENT

SR NO CONTENT
1 Introduction
2 Financial planning

Capitalization: Whether the

3 unit is under capitalized or
under capitalized

Capital structure: Financial

4 Leverage and capital gearing

Management of working
capital
1: Management of
inventories
5
2: Management of
Receivables
3: Management of cash
including cash budget

6 Leverage analysis

7 Ratio analysis

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 INTRODUCTION

 The term, finance has to be understood clearly as it has different meaning and
interpretation in various contexts. In the words of Howard and Upton, “finance may be
defined as that administrative area or set of administrative functions in an organization which
relates with the arrangement of cash and credit so that the organization may have the means
of carrying out its objectives as satisfactorily as possible”.

 In vanraj besan the finance department where handled by Tejas bhai, managing funds
within the organization and planning for the expenditure of funds on various assets. It is the
part of an organization that ensures efficient financial management and financial control
necessary to support all business activities.

 Roles and Responsibilities of a Finance Department

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A. Bookkeeping:-

 This is the most basic function of the finance department. It involves the day-to-day
recording, analysis and interpretation of a company’s financial transactions. This will include
the tracking of all expenses (purchases, payments etc.) and sales of finished products. In
some startup companies, this role is often carried out by a bookkeeper who might be replaced
by more specialized payables and receivables clerks as the company grows or expands its
operations.

B. Management of company’s cash flow:-

 It is the duty of the finance department to manage all cash flows into and out of a
company and ensure that there are enough funds available to meet the day-to-day running of
the company.  This area also encompasses the credit and collections policies for the
company’s customers, to ensure that vendors and creditors are paid correctly and on time;
and that the company is also paid correctly and as when due.

C. Budgets and forecasting:-

 In this function, the finance department works with managers to prepare the company’s
budgets and forecasts and also give feedback with regards to the financial standing of the
company. This information can be used to fulfil the cash needs of each department, plan
company staffing levels, plan asset purchase and expansions at minimum cost before they
become necessary.  The finance department can also use past records from respective
departments to make better budget and forecast over long-term and short-term time horizons.

D. Advising and sourcing longer-term financing:-

 It is the duty of the finance department to advise companies on the best financing mix
that could yield the company the best profit and also help them source longer-term financing
at the lowest cost such that there is a profit level of liquidity. Some of the many varied paths a
company can source funds to finance their business as discussed in one of our articles “10
Most Common Ways to Finance Your Business” include bank credit or private lender debt
or, share issues to private investors (where applicable).
E. Management of Taxes:-

 Running a company involves paying tax, and it is the duty of the finance department to
handle tax issues. This includes creating good corporate relationships with government by
remitting PAYE (Pay As You Earn) to the relevant authority, and ensuring that
implementation of tax matters are done within the framed policies.

F. Management of Company’s Investments:-

 Apart from analyzing and selecting new investments, it is also the duty of the finance
department to manage company’s existing assets. The finance department should be
concerned with current assets apart from fixed assets. The company’s working capital needs
to be managed efficiently in such a way as to maximize profitability relative to the amount of
funds tied up since it has more implication on the firm liquidity than its fixed asset.

G. Financial Reporting and analysis:-

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  Financial reporting and analysis is the function that takes raw accounting entries and
transforms them into meaningful, usable and comparable financial statements. The finance
department contributes to organizational growth by measuring and reporting on regular bases,
key numbers that are vital to the success of the company. This will likely include a summary
of all funding sources, expenditures and reserves available for future use (excluding those
already committed and budgeted for current period) some non-financial information.  And are
usually communicated to managers in a logical and understandable format.

H. Assist managers in making key strategic decisions:-

 The finance department provides company management with information necessary to

make strategic decisions such as which markets or projects to pursue, the payback periods for
large capital purchases, decision on what should be given out as dividend out of the
company’s earnings and what to plough back into the business, the best financing mix that
could yield the company the nest profit, decision on how to allocate funds to investment etc.,
thus, making sure that money is being used in the best way.

The main functional activities carried out by the finance department are:

 raising finance
 preparing budgets
 preparing final accounts

 Raising finance:-

 It is the responsibility of the finance department to ensure a business has enough money
to pay bills. To do this they may be required to raise extra finance. This can be done through
applying for bank loans or grants.

 Preparing budgets:-

 It is important for a business to plan ahead so they can see how much money is expected
to come into and out of the business. To do this a business uses a budget which is prepared by
the finance department.

 Preparing final accounts:-

 Final accounts are required by all businesses to see how much profit or loss has been
made and what the business is worth. The final accounts are prepared by the finance
department.

FINANCIAL PLANNING

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 Financial Planning is the process of estimating the capital required and determining it’s
competition. It is the process of framing financial policies in relation to procurement,
investment and administration of funds of an enterprise.

 The task of determining how a business will afford to achieve its strategic goals and
objectives. Usually, a company creates a Financial Plan immediately after the vision and
objectives have been set.

The financial planning activity involves the following tasks:

 Assess the business environment

 Confirm the business vision and objectives
 Identify the types of resources needed to achieve these objectives
 Quantify the amount of resource (labor, equipment, materials)
 Calculate the total cost of each type of resource
 Summarize the costs to create a budget
 Identify any risks and issues with the budget set.

 A financial plan is an overall evaluation of an individual's current pay and future financial
state by using the current known variables to predict the future income, asset values, and
withdrawal plans.

Features of Financial Planning:-

 
 Simplicity: A sound financial structure must provide a simple financial structure that
could be managed easily and understandable even to a layman.
 Foresight: Foresight must be used in planning to know the estimate and the need for
capital which may be estimated as accurately as possible. A plan visualized without
any foresight will outcast disaster for the company.

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  Flexibility: Repeating the financial adjustments becomes necessary hence its
flexibility is required so that it is easily adaptable
 Optimum use of Funds: Capital should not only be adequate but should also employ
productive effects. A financial plan should prevent wasteful use of the capital, thus
avoiding idle capacity to ensure proper utilization of funds to earn the capacity in an
enterprise.
 Liquidity: Current assets are to be kept in the form of liquid cash. Cash is also
required to finance purchases, to pay the daily needs like paying salaries, wages, and
other incidental expenses.

 Four Pillars of Financial Planning

  

1. Managing Cash Flow and Financial Resources:-

  This critical first pillar focuses on making sure you and your loved ones are provided for.
It encompasses emergency funds, insurance coverage (such as Long-Term Disability and Life
Insurance), estate planning guidance, and ensuring your ability to meet your goals.

2. Accumulating Wealth:- 

 This second pillar is what most people think of when they hear "financial planning." It
extends far beyond reviewing your investment portfolio, incorporating such considerations as
purchasing a home or vacation home, planning for current or future education expenses,
managing debt and saving for a special purpose or project.

3. Managing Income Taxes: -

 In addition to considering tax implications when making recommendations, this third

pillar also includes coordination with your tax preparer so your tax-prep experience is as
smooth and stress-free as possible.

4. Planning for Retirement: - 

 Retirement planning requires far more than ensuring adequate income from government,
private, and personal sources. This fourth pillar also encompasses providing for the inevitable
cost of health and long-term care, coordination with your estate plan, and managing your
pension distributions.

CAPITALIZATION

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 Capitalization is an accounting rule used to recognize a cash outlay as an asset on the
balance sheet—rather than an expense on the income statement. The cost of fixed assets,
such as computers, cars, and office buildings, are recorded on the general ledger as the
historical cost of the asset and not expensed in full against earnings in the current accounting
period. These costs are said to be capitalized, not expensed .

 In finance, capitalization is a quantitative assessment of a firm's capital structure. Here it

can refer to the book value cost of capital, which is the sum of a company's long-term debt,
stock, and retained earnings. The alternative to the book value is the market value or market
capitalization.

 Capitalization is an accounting method in which a cost is included in the value of an asset

and expensed over the useful life of that asset, rather than being expensed in the period the
cost was originally incurred. In addition to this usage, market capitalization refers to the
number of outstanding shares multiplied by the share price, which is a measure of the total
market value of a company.

 There are two types of Capitalization:-

1. over capitalization.
2. under capitalization.

1. Over- capitalization.
 Over-capitalization refers to that state of affairs where earnings of the corporation do
not justify the amount of capital invested in the business. In other words, an over-capitalized
company earns less than what it should have earned at fair rate of return on its total capital.

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 According to Bonneville, Dewey and Kelly, “When a business is unable to earn a fair
rate of return on its outstanding securities, it is over-capitalized.”

 Overcapitalization occurs when a company has issued more debt and equity than its
assets are worth. The market value of the company is less than the total capitalized value of
the company. An overcapitalized company might be paying more in interest and dividend
payments than it has the ability to sustain long-term.

Causes of Over-Capitalization being as under:

(1) Promotion of a Company with Inflated Assets:

 A company right from its incorporation falls prey to overcapitalization if it has been
established with assets acquired at higher prices which do not bear any relation to their
earning capacity. Such a situation arises particularly when corporate form of organization is
adopted by converting a partnership firm or when private limited company is converted into
public limited firm because in that process assets may be transferred at price higher than their
real value with the result that the book value of the corporation will be higher than its real
value.

(2) Company Promoted with High Promotion Expenses:

 Over-capitalization may sometimes result because high expenses were incurred in

promoting an enterprise and promoters were fabulously paid high price for their promotional
services, particularly when the earnings of the company do not subsequently justify the
capital employed.

(3) Over-estimating Earnings at the Time of Promotion:

 A mistake in initial estimate of earnings may subsequently land a corporation into over-
capitalization since capitalization based on such an estimate is not justified by income which
the firm actually earns. For example, a company’s initial earning was estimated at Rs. 10,000
and industry’s average rate of return was fixed at 12 percent. Accordingly, company’s
capitalization was decided at Rs. 83,333 (10,000 × 25/3). Subsequently, it was found that
company actually earned Rs. 8,000. Evidently in such a case company’s capitalization should

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have been fixed at Rs. 66,000. Thus, the company will be said to be overcapitalized by Rs.
16,667.

(4) High Capitalization Rate to Capitalize Earnings:

 Despite correct estimate of earnings a company may plunge in state of over-capitalization

if higher capitalization rate was applied to determine its total capitalization. For example, a
company’s earning was estimated at Rs. 10,000 and the industry average rate of return was
fixed at 8 percent. Hence capitalization rate applied was 12.5 percent. By applying this rate
the company’s capitalization was worked out at Rs. 1, 25,000

(5) Company Formed or Expanded During Inflationary Period:

 Generally, companies started in the days of inflationary conditions turn into over-
capitalized concerns afterward when the inflationary conditions subside because assets were
acquired at inflated prices which do not bear any relation with their earning capacity.
Alongside this, in anticipation of high earnings during boom period there is strong tendency
to fix the capitalization at high figure.

(6) Shortage of Capital:

 Sometimes, over-capitalization may be the result of shortage of capital. Because of

underestimation of financial requirements a firm may be capitalized at low level. This may
cause serious problem to the firm subsequently when it experiences shortage of funds to meet
emergent requirements compelling the firm to procure necessary funds at unreasonably high
rate of interest..

(7) Defective Depreciation Policy:

b Many companies become over-capitalized because they did not make adequate provision
for depreciation, replacement or obsolescence of assets. Inadequate depreciation causes
inefficiency in the company which, in turn, results in its reduced earning capacity.

(8) Liberal Dividend Policy:

 Liberal dividend policy may also contribute to over-capitalization of a company.

Companies following too liberal dividend policy continuously for long period of time shall be
definitely deprived of the benefits of retained earnings. Thus, in the first instance such
companies fail to build up sufficient funds to replace old and worn-out assets and
consequently, their operating efficiency suffers. Secondly, these companies may, in times of
necessity, be compelled to take recourse to costlier borrowing which, in turn adversely affects
their earning position. The combined effects of these may land these companies in state of
over-capitalization.

(9) Fiscal Policy:

 Taxation policy of the Government may also be responsible for company’s over-
capitalization. Due to negative taxation policy firms tax liability increases and is left with

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small residual income for dividend distribution and retention purposes. Further, such policy
also restricts the benefits to tax deduct-ability on account of depreciation provision.
Consequently, operating efficiency of companies suffers drastically and state of over-
capitalization develops in companies.

2. Under-capitalization:-

 Undercapitalization occurs when a company does not have sufficient capital to conduct
normal business operations and pay creditors. This can occur when the company is not
generating enough cash flow or is unable to access forms of financing such as debt or equity.

 ‘Under-capitalization’ should never be misconstrued with inadequacy of capital. Truly

speaking, this term is used to denote the state of affairs just converse of over-capitalization.

Causes of Under-Capitalization Potent causes of under-capitalization in a company are

as follows:

(1) Under-Estimation of Initial Earnings:-

 If earnings of new venture were under-estimated and the enterprise was capitalized
accordingly, it may find itself in condition of under-capitalization afterwards when it’s actual
earning was much more than what was anticipated.

(2) Using Low Capitalization Rate:

 If low capitalization rate was employed to determine capitalization of a company, it

might plunge in state of under-capitalization subsequently when it would be found that actual
capitalization rate was much higher than the employed one.

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(3) Deflationary Condition:

 Companies set up in recessionary condition generally become under-capitalized after

recession is over. There are two factors contributing to this tendency. In the first instance,
during recession assets are purchased at exceptionally low prices which bear no relation with
their income producing capacity. As period of recession abates, earning position of the
companies tends to improve. This would result in increase in real value of assets while book
value of assets remains as before and the consequence would be under-capitalization.
Secondly, companies set up in period of recession are capitalized at low figure anticipating
low level of business income. But as the period of recession is over, company’s earning
capacity improves and the result is undercapitalization.

(4) Conservative Dividend Policy:

 Company following conservative dividend policy builds up substantially large funds

available for replacement and renovation of obsolete assets and for financing developmental
and expansion purposes. This thus goes a long way in improving earning position of the
company.

(5) Maintaining High Standards of Efficiency:

 By employing new techniques of production and rationalization of production activities,

operating efficiency of a company can be improved.

 The Vanraj Besan is undercapitalized company and the company have enough capital.
The company used corrected by exploring routes of raising additional funds – this can
primarily be done through issue of additional shares and raising of low-cost long-term debt

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 CAPITAL STRUCTURE

 Capital structure refers to the specific mix of debt and equity used to finance a
company's assets and operations. From a corporate perspective, equity represents a more
expensive, permanent source of capital with greater financial flexibility.

 Capital structure relates to how much money—or capital—is supporting a business,

financing its assets, and funding its operations. It can also show company acquisitions and
capital expenditures that can influence the business's bottom line.

 Factors affecting the capital structure

Various factors might affect the evaluation of the structure; these factors are categorized into
two groups, internal factors and external factors.

1. Internal factors:

  The capital structure of a business or a startup depends upon its size, theme, and nature.
The firm’s age and the plan also play an active role in determining the same.

However, in official terms, the trading on equity and the period or purpose of financing are
significant factors affecting any business’s capital structure.

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2. External factors:

  The external factors consist of those policies and documentation that the owner cannot
control. The external factors include the taxation policy, economic fluctuation in the market,
and the level of competition.

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 MANAGEMENT OF WORKING CAPITAL

 Working capital management ensures the best utilization of a business's current assets

and liabilities for the company's effective operation. The main aim of managing working
capital is to monitor a company's assets and liabilities to maintain adequate cash flow and
meet short-term business goals.

 Working capital management is a business strategy designed to ensure that a company

operates efficiently by monitoring and using its current assets and liabilities to their most
effective use.

 Working capital management requires monitoring a company's assets and liabilities to

maintain sufficient cash flow to meet its short-term operating costs and short-term debt
obligations. Working capital management involves tracking various ratios, including the
working capital ratio, the collection ratio, and the inventory ratio. Working capital
management can improve a company's cash flow management and earnings quality by using
its resources efficiently.

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 MANAGEMENT OF INVENTORIES

 Inventory management helps companies identify which and how much stock to order at
what time. It tracks inventory from purchase to the sale of goods. The practice identifies and
responds to trends to ensure there’s always enough stock to fulfill customer orders and proper
warning of a shortage.

 Once sold, inventory becomes revenue. Before it sells, inventory (although reported as an
asset on the balance sheet) ties up cash. Therefore, too much stock costs money and reduces
cash flow.

 One measurement of good inventory management is inventory turnover. An accounting

measurement, inventory turnover reflects how often stock is sold in a period. A business does
not want more stock than sales. Poor inventory turnover can lead to deadstock, or unsold
stock.

 Benefits of Inventory Management

Saves Money- Understanding the stock trends make you invest money in the right amount of
stock at the right time. This practice saves money as well as maintains cash flow for the
organization. It also allows you to keep less stock at each location, be it store or the
warehouse.

Improves Cash Flow- Inventory management allows you to spend money on the inventory
counts that sell.

Satisfies Customers- Inventory management makes sure that the customers' demands are
met without waiting.
However, with several benefits, there are challenges associated with inventory management
as well.

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 MANAGEMENT OF RECIVABLES

 Account receivables refer to the outstanding invoices or money which is yet to be

paid by your customers. Until it is paid, such invoices or money is accounted
as accounts receivables. Also known as bills receivables. You need cash all the time to
keep your business running smoothly and ensuring the accounts receivables are paid on
time is essential to manage cash flow efficiently.

 Management of Receivables is also known as:

 Payment Collection
 Collection Management
 Accounts Receivables

 Objectives of Receivable Management

1. Monitor and Improve Cash Flow

2. Minimizes bad debt losses
3. Avoids invoice disputes
4. Boost up sales volume
5. Improve customer satisfaction
6. Helps in facing competition

BENEFITS OF RECEIVABLES

1. INCREASE IN SALES:

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  Most of the firms sell goods on credit, either because of trade customs or other conditions.
The sales can be further increased by liberalizing the credit terms. This will attract more
customers to the firm resulting in higher sales & growth of the firm.

2. INCREASE IN PROFITS:

 Increase in sales help the firm in to easily recover the fixed expenses & attaining the
break-even level. Increase the operating profit of the firm.

3. EXTRA PROFIT:

 Sometimes, the firm makes the credit sales higher than the usual cash selling price. This
brings an opportunity to the firm to make extra profit over & above the normal profit.

 Factors affecting the size of investment in accounts receivable are as follows:

 Firm Credit Policy. ...

 Average Collection Period. ...
 Credit Collection Efforts. ...
 Expansion Plans. ...
 Large Orders with extended Credit Requirements. ...
 Growth Oriented New Customer. ...
 Accidental happenings.

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 MANAGEMENT OF CASH BUDGET

 A cash budget is a document produced to help a business manage their cash flow. A cash
budget is prepared in advance and shows all the planned monthly cash incomings (receipts)
and any planned cash outgoings (payments).

 Preparing a cash budget has a number of benefits:

 It can identify any times where there may be a shortage of cash. This will allow the
business to plan ahead and arrange extra funding such as a bank overdraft.
 It can help to regulate expenses. Any months where expenses are high will be highlighted
by a cash budget.
 It will clearly show where a business has more cash than expected (surplus) or less cash
than expected (deficit). This will allow a business to plan more effectively and make better
decisions.
 Businesses need to manage their cash flow to enable them to operate effectively. It is
important to be able to interpret a cash budget and justify suitable solutions to cash flow
problems.
 The main items shown on a cash budget are:

 Opening balance - This is the amount of money you have available at the beginning of the
month. It is the same amount as the closing balance from the month before.
 Receipts – This is a list of all the money coming into the business such as sales or rent
received.
 Payments – This is a list of all money you expect to go out of your business such as rent,
wages or electricity.
 Closing balance – This is the cash left at the end of the month after all payments have
been taken away from the business receipts.

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 LEVERAGE ANALYSIS

 This analysis is conducted to understand the level of risk associated with the financing
decision It gives the magnitude of change in one variable due to change in another variable

 There are three types of leverages

1. Operating Leverage
2. Financial Leverage
3. Combined Leverage

1. Operating Leverage:-

 Operating leverage can be defined as the degree of change in the level of EBIT due to
a change in sales Operating leverage occurs due to presence of fixed operating cost in
the business. It can also be calculated by an alternate formula: . Contribution /EBIT
The higher the fixed cost ,the higher will be the DOL and therefore higher the
operating risk

2. Financial Leverage:-

 Financial Leverage is the change in the level of EPS due to change in EBIT
Financial leverage occurs die to presence of Fixed financial cost ( Interest ) in the
business Alternate formula for calculating DFL is EBIT/EBT

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 Lets take an example of a company A whose data is taken for two periods of time

Particular Period1 Period 2

Sales 100 110

Less: variable
40 44
cost(40%of sales)

Contribution 60 66

Less: Fixed cost 20 20

EBIT 40 46

 Using the formula for DOL, the result is 1.5 which means that for every 1 % change
in sales the EBIT will change 1.5% . I.e. the magnitude of change will be more than in
proportion. But ,if there are no fixed cost then the DOL will be 1 which means that if
the sales change by 1% the EBIT will also change by 1 %.

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 RESULT & FINDING

 Study on different training and development on “SHREE VANRAJ BESAN MILL

PVT.LTD.”

 80% respondents are male and 20% respondents are female.

 61.7% retailers are between the ages of 20-30 and 36.7% retailers are between the
ages of 30-40 and 1.7% retailers are between the ages of 40-50.
 More than 60% retailer income between the 20000-40000.
 100% retailers have stock of Vanraj Besan.
 More than 70% retailer sold this brand since 1-3 years
 90% retailers gives credit facility to customer.
 100% retailer satisfied with Vanraj Besan Company.
 Advertising factor is agreed to the retailer to encourage immediate sales.

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 LIMITATIONS

1. Operational Production Capacity of Besan is 900-1000 Kgs per day. First year,
Capacity has been taken @ 50%.
2. Working shift of 8 hours per day has been considered.
3. Raw Material stock is for 15 days and Finished goods Closing Stock has been taken
for 10 days.
4. Credit period to Sundry Debtors has been given for 11days.
5. Credit period by the Sundry Creditors has been provided for 12 days.
6. Depreciation and Income tax has been taken as per the Income tax Act, 1961.
7. Interest on working Capital Loan and Term loan has been taken at 11%.
8. Salary and wages rates are taken as per the Current Market Scenario.
9. Power Consumption has been taken at 25 KW.
10. Selling Prices & Raw material costing has been increased by 5% & 5% respectively in
the subsequent years.

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 CONCLUSION

 Here, presenting the report on role of retailer on “Shree Vanraj Besan Mil Pvt. Ltd.”
Role of retailer is very important in distribution channel because only retailer are selling
goods and services directly to consumers.

Retailer kept large stock of Shree Vanraj Besan Mil Pvt. Ltd. They also satisfied with
profit generate from the Shree Vanraj Besan Mil Pvt. Ltd. Demand of the product is also
good. From the survey I conclude that the most of retailer gives second rank to the brand of
Shree Vanraj Besan Mil Pvt. Ltd. Most of retailers sale all the products of the vanraj Besan
Mill Pvt. Ltd.

 At the end of the project it can be very easy to conclude that “Vanraj Industry”, is one of
the best industries in Junagadh. In this industry the internal relation between the workers and
managers is very well. The management of the company is very well planned and effective.

 It is one of the best industries visited by me at Junagadh. Every employee values the
customer is result in 100% customer satisfaction.

 The workers are highly satisfied with the wage and salary system and the welfare
policies adopted by the company.

I wish heartily best of luck and great & bright future.

My best and Heartly wishes with “Shree Vanraj Besan Mill Pvt. Ltd.”

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 BIBLOGRAPHY

To complete this project I have referred to following books:-

o www.vanrajexports.com
o www.investopedia.com
o www.tofler.in
o www.zubacorp.com

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