A
SUMMER TRAINING REPORT
ON

“METHOD STUDY & MATERIAL MOVEMENT” AND
COMPANY OVERVIEW
AT
"KABRA EXTRUSION TECHNIK
SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENT OF MBA
PROGRAMME

SUBMITTED BY: UNDER THE GUIDANCE OF:

PATEL HIREN B. INTERNAL GUIDE AT GRIMS PROF. ANITHA THOMAS

EXTERNAL GUIDE AT COMPANY
Mr. S.L.GANDHI (P&A MANAGER KABRA EXTRUSION TECHNIK)

POST – GRADUATE CENTRE
GIDC RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES,
VAPI
AFFILIATED TO
VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

CERTIFICATE- This is to certify that Mr. Patel Hiren B. has satisfactorily completed the project work at Kabra Extrusion Technik Ltd, under the guidance based on the declaration made by the candidate and my association as guide for carrying out this work, I recommend this project report for evaluation as a partial requirement of the MBA Programme of Veer Narmad South Gujarat University, Surat.

DATE: PROF ANITHA THOMAS
GRIMS, VAPI (PROJECT GUIDE)

This project report is forwarded for the evaluation Vice/Voce Examination to the Veer Narmad South Gujarat University.

DATE: (Dr R.S.SHAH) Director GRIMS, VAPI

STUDENT DECLARATION

I, Mr. Patel Hiren B., the student of GIDC RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES, VAPI, affiliated to Veer Narmad South Gujarat University,Surat Hereby declare that this project report is a result of culmination one my sincere efforts
.
I declare that this submitted work done solely by me and to the best of my knowledge, no such work has been submitted by any other person for the award of post graduation Degree or Diploma.

We also declare that all the information from various secondary sources has been duly acknowledge in this Project Report.

DATE: ______________________
[PATEL HIREN B.]

ACKNOWLEDGEMENT

A Project Report is never successfully completed without the guidance from appropriate person. So, now it is the right time to express my sincere gratitude towards all those, who have helped me to complete the project.

I would like to thank our Director Dr.R.S.Shah who has given me the opportunity. I am very much grateful to External Guide Mr.S.L.Gandhi and also the Internal Guide Prof Anitha Thomas, whose guidance and support helped me to complete this project successfully. Without their Guidance the work would never been completed.

And I am greatly to all advisers who helped me knowingly or unknowingly for getting the information and taking interest in this report. I am also thankful to entire faculty and staff of GRIMS, Vapi without which this project would be not a successful one. Last but not the least I would like to appreciate my parents who have always motivated me directly and indirectly to do my work with utmost Dedication.

Place: VAPI Thanking You
Date: [PATEL HIREN B.]

|SR NO. |PARTICULARS |PAGE NO |
|1 |OVERVIEW OF KABRA EXTRUSION | |
|2 |PRODUCT PROFILE | |
|3 |PRODUCTION DEPARTMENT | |
|4 |HR DEPARTMENT | |
|5 |MARKETING DEPARTMENT | |
|6 |FINANCE DEPARTMENT | |
|7 |METHOD STUDY | |
|8 |MATERIAL MOVEMENT | |
|9 |BIBLIOGRAPHY | |

OBJECTIVES

← To understand the Business Mechanism and to run it profitably in Competitive Business Environment. ← To Understand the role of each subsystem (Dept) and its relationship with other Subsystems for the Business as a System ← To get the Practical Interface of Industry by applying Theoretical Concepts.

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2.1 HISTORY OF THE COMPANY

The company was incorporated on 21st October 1982 and was converted into a public limited company on 30th March 1984. The company was set up with the object of manufacturing Twin Screw Extruders complete with downstream equipment for PVC Pipes, profiles, section and garments in technical collaboration with M/s Battenfeld Extrusionstechnik Gmbh, West Germany. The company has entered into technical collaboration with M/s UNICOR Rahn Plastmaschinen GMBH, Germany, for the manufacture and marketing of corrugators & lay flat machines for drip irrigation & allied extrusion equipments. The company has also entered into the manufacture of gravimetric feeding save mat systems in technical collaborations with Index Gmbh, Germany. It is engaged in the manufacture of single and twin-screw plastic extrusion plants with allied machines, over the last 4 decades. The single screw extruders range from 19mm to 150mm for outputs from 2 Kegs/hour to 1000 Kegs/hr. The company offers single screw extrusion plants for the production of Mono and Multilayer films, Raffia Tapes, Lamination films, Tubing, etc. Kabra Extrusion technik, is the market leader in the production of pipe extrusion lines. The company has collaboration with world leader Battenfeld of Germany for twin-screw extrusion lines for PVC pipes, profiles & pellets apart from polyolefin pipes. They collaborated with Battenfeld, which is a part of SMS Plastics Technology -the world's largest plastic machinery manufacturers, ensures they remain at the cutting edge of technology and have the best next generation extruders. Their Twin-screw plants range from 50mm to 168mm extruders for outputs ranging from 80 Kgs/hour to 2000 Kgs/hour.
The core center of their manufacturing facilities is at Daman and is spread over an area of 4, 00,000 sq.feet.It is equipped with the latest state-of-the-art CNC special purpose machines for in-house machining. Some of these machines are:

1. Mazak Machining Center - for accurate machining of critical components 2. Wanderer screw cutting machine for accurate cutting of even the most complicated extrusion screws 3. TBT deep hole boring machine, for twin & single barrels, with boring capacity up to 5 meters long. 4. 4th Gas nitriding furnace 5.2 mtr deepest in India for nitriding of various components. 5. Other CNC machines for cylindrical grinding, etc.

The most critical components of the extrusion machines like screws, barrels, dies, spirals, thrust bearing housings, etc. are manufactured in-house on these high precision machines, which ensure strict quality control.

2.2 COMPANY PROFILE

Registered Office "Kolsite House" Off-Veera Desai Road Andheri (West) Mumbai - 400053, Maharashtra India

Tel. (022) 26734822-24

Fax (022) 26735041

Website http://www.kolsite.com

Banker State Bank of India (SBI), Industrial Finance Branch (Mumbai)

Compliance Officer Mr. Y D Sanghavi
Auditors A. G. Ogle & Co.

Board of Directors

Name Designation
Mr. Shreevallabh G Kabra Chairman and Managing director
Mr. Satyanarayan G Kabra Vice Chairman & Managing Director
Mr. Haridas S Sanwal Director
Mr. Yagnesh B Desai Director
Mr. Punamchand C Parmar Director
Mr. Mahavir Prasad Taparia Director
Mr. Anand S Kabra Executive Director

REGIONAL OFFICES:

DELHI:
AHMEDABAD:

402, Lalita Complex,Jain Mandir Road,
Near HDFC, Navrangpura,
Ahmedabad 380 009.
Phone: 079-26447841/26564828

Fax: 079 - 26427281 e_mail ahmedabad @kolsitegroup.com

KOLKATTA:

Shree Ganesha Centre,D/2nd Floor,

216, A J.C. Bose Road, Kolkatta 700 017.

Phone: 033-2475963/406308

Fax: 033-2474221 e-mail Kolkatta
@kolsitegroup.com

1108-10 Hemkunt House
6, Rajendra Place New Delhi - 110 008.
Tel: 011 – 25734587/25711962

Fax No. 5755319 e_mail delhi @kolsitegroup.com

CHENNAI:

C-1, Gems Court,
14 Khader Nawaz Khan Road,

Nungambakkam, Chennai 600 006.

Phone: 044-28332041/28332823 Fax: 044-28332553 e_mail chennai@kolsitegroup.com

BANGLORE:

Unit No. 211, Barton Centre
M.G Road, Banglore – 5600001
Tel : 080 – 25598897/25550318
Fax : 080 – 25598897 e_mail : bangalore @kolsitegroup.com

HYDERABAD:

507/E, 5th Floor, “Navaketan”,
Opp Clock Tower, S.D. Road, Secunderabad-500 003.
Tel: 040-27806410/31
Fax: 040 – 27806431 e_mail hyderabad @kolsitegroup.com
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We, at Kolsite group are committed to demonstrate our leadership in our chosen field of business by focusing all our actions towards customer’s satisfaction and make significant contributions to his success.

We shall continue to innovate our processes, products and services to provide value for money in all our - efforts - both internal and external.

Total employee involvement, sincerity of purpose and commitment to objectives are the pillars of this vision where all of us will perform as a team and shall trust and respect each other.

[pic]

[pic] Collaboration with Battenfeld Extrusiontechnik GmbH, Germany - A leading global player in Plastics Extrusion Technology for: Complete Twin Screw Extrusion Lines for PVC / CPVC / PVC Foam Core Pipes, PVC Pellets and Profiles, Single Screw Extrusion Lines for Polyolefin Pipes. • Battenfeld is part of SMS Group - World’s leading Plastics Machinery Manufacturing Conglomerate.

• Collaboration has given KET the cutting edge technology and competence to produce the best Next Generation Extruders.

• Kabra Extrusiontechnik has access to advanced Plastics Extrusion technologies of Joint Venture Partners - Battenfeld Extrusionstechnik, Germany and American Maplan Corporation, USA.
Next Generation Extruders offer processors the manifold benefits of:

# Higher Output

# Lower power consumption per kg output

# Reduced maintenance costs

# Higher end product quality

# Lower investment per kg output

INDUSTRY STRUCTURE AND ITS DEVELOPMENT

The company is engaged in capital goods sector, manufacturing plastic extrusion machinery, specializing in manufacturer of plants to produce a wide range of plastic pipes like PVC, HDPE, LDPE, PP, Composite pipes etc. PVC pipes sector has almost 40 % shares of total PVC resin business. Pipe Extrusion machinery is the largest market and the company has about 65 % shares in this segment. Demand for pipe is growing due to the thirst on agriculture, water management, telecommunication and other infrastructure areas. Films are finding increasing application in various kinds of packaging. Tape is use to make woven sack bags which in turns are3 use for packing of agriculture products, cement etc. HDPE pipes in last couple of years are being widely use for telephone, ducting. PP pipes are use for chemical industry as well as for plumbing. LDPE pipes are use significantly for drip irrigation.

ORGANIZATION STRUCTURE:-

LIST OF DEPARTMENTS IN KABRA EXTRUSIONTECHNIK LTD:

• Service/marketing service department • Engineering/design • Planning • Purchase • Store • Quality assurance • Machine shop • Electrical • Assembling • Trial & testing • Account • Maintenance • Nitriding • Adm.personnel • EDP

DIVISION OF WORK: -

Division of work in kabra is based on the department. No person is doing the same job and a unique job is assigned to each employee based on his efficiency, knowledge, capability, and designation. And there are nearly 16 departments in the company.

REPORTING: -

Lower to higher:
Subordinates reporting to the superiors according to their work distribution.
Interpersonal coordination:
Coordination is done based on what sort of work is. Purchase department coordinates with accounts department with finance perspective.

Reporting is done through mails, inter-com, personally etc.

GENERAL PROCEDURE

PROCESS FLOW: -

GENERAL PROCEDURE

PROCESS FLOW: -

• The productions of extrusion machines are customer driven as it finds customized application depending upon the customer requirement. • This product does not find bulk usage, as it is not a commodity product. • The production of the extrusion machinery is started after customer executes the order. • The marketing department gets the order from the customer as per customer requirement. • The requirements are transfer to planning & engineering department. • Planning & engineering department Making “BOM” (bills of material) and design the whole machine. • The planning group co-ordinates with the purchase department. • Purchase department take decision of making or buying component. • The purchase department plans for the purchase of necessary raw material. • In machine shop makes screw, barrel and other item. • All these entire semi finish components are store at store department. • Before storage of component check quality of component at quality assurance department. • Component check on the base of design, specification, physical damage. • When component are as per quality level at that time its give Green label and accept it. • But component is not as per quality levels at that time its give Red label and reject it. • When these components are buying from vender then resend to vender. • But component are making on machine shop at that time this component throw to scrap or modifying design of component and use it. • As per planning store department issue the raw material to assembly department. • The assembly section then assembles different part to manufacture finished product. • After completion of assembly of machine trial & testing of finished product. • In trail & testing done on the base of performance, capacity, out put of plant. • Also done customer trails. When customer is satisfied with the plant then plant is ready for dispatch. • Eriction and commisning department arrange for installations of the product at customers end and also provides technical knowledge how to use it. • And also provided after sale service when plant as not good working condition.

PRODUCTION

DEPARTMENT

PRODUCTION DEPARTMENT

INTRODUCTION

Production is the basic activity of all industrial units. Production is the process by which goods and services are created. Production function can offer competitive advantage to a firm in various ways, prominent among them being shorter new product lead times, more inventory turns, greater flexibility and reduced wastage. All other activity revolves around production activities. The end product of production activities is the creation of goods and services for the satisfaction of human wants. Production activities are nothing but step-by-step conversion of one form of material into another either chemically or mechanically. Production function is the conversion of Raw materials into finished products.

2.3 PRODUCT PROFILE

• RAFFIA TAPE LINES • KABRAREC PP/HDPE TAPE STRETCHING LINE • MULTILAYER BLOWN FILM PLANTS • THREE LAYER BLOWN FILM PLANTS • FULLY AUTOMATIC SHEET WINDER • BLOW FILM PLANTS • HM-HDPE/LLDPE BLOWN FILM PLANTS • PP HIGH OUTPUT BLOWN FILM PLANTS • PIPE EXTRUSION LINES • SINGLE SCREW EXTRUDERS • TWIN SCREW EXTRUDERS • TWIN SCREW PVC PELLETISING LINES

[pic]

LDPE/NM-NDPE/LDPE BLOWN ILM PLANTS
Extruder: 30mm, 45mm, 55mm, 65mm, 75mm. Output: 12 - 100 kgs/hr.
Lay flat width: 90 - 1500mm. Rotating die - optional.

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THREE LAYER BLOWN FILM PLANTS
Extruder: 3 X 47mm, 3 X 55mm, 3 X 58mm. Output: 105 - 220 kgs/hr.
Lay flat width: 600mm - 1500mm Optional: Oscillating Nip

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KOLSITE - BATTENFELD PVC PELLETIZING PLANTS collaboration with Battenfeld, Germany Extruder: 50, 65, 90.
Output: 80 - 700 kgs/hr.

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High Output Dies -
These dies guarantee full utilization of extruder capacity in manufacturing of PVC pipes. Moreover larger range of pipe diameter saves considerable time in change over.

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Parallel Screws - Wear Properties...
Twin Parallel Screw Extruder means optimum price/output ratio, improved reliability in extrusion, lesser wear for screw and barrel and easy maintenance.

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HIGH - OUTPUT NM BLOWN FILM PLANTS Extruder: 40mm.
Output: 40 kgs/hr.
Lay flat width : 350 - 600mm

[pic]

IGN SPEED PP/H®PE TAPE PLANTS Extruder: 65mm, 75mm, 90mm, 100mm. Output : 100 - 350 kgs/hr.
Orientation Oven lNONOFI ENT/BOX STRAPPING PLANTS Extruder : 45mm, 55mm, 75mm. Output : 30 - 80 kgs/hr.

PRODUCT’S APPLICATION: -

1) TAPE LINES: -

• Cement bags • Food grains • Jumbo bags • Leno bags • Textiles • Salt bags • Sugar bags • Tarpaulin • Packaging of chemical, minerals

2) FILM LINES: -

2.1) Mono layer blown film lines

• Shopping bags • Heavy duty bags • Detergent bags • Stretch film • Textiles carry bags • Foam film • Shrink film • Mulch film • Packaging industry like garments, confectionery.

2.2) Multi layer blown film lines: -

• Food packaging • Milk, ghee oil • Lamination • Heavy duty bags • Shrink film • Stretch cling film • Carrier bags • Refuse bags

3) PIPE LINES: -

• Agriculture/irrigation pipes • Sprinkler pipes • Drip pipes • Water supply/pressure pipes • Effluent collection & disposal system • Hydro transport/solid transport • Gas/compressed air supply & sewer pipe • Submarine & underwater pipe • Electric/telecom cable conduits • Chemical & edibles transportation

PRODUCTION DEPARTMENT

ORGANOGRAM

ELECTRICAL DEPARTMENT

ORGANISATION CHART

MAIN COMPONANT MAKING BY ELECRICAL DEPT: -

In this electrical dept main two type of panel are making .one is CONTROL panel and other one is DRIVE panel. Also making down stream.

CONTROL PANEL: -

Control panel are use for control temperature and flow of air.

In all plant has use HEAT EXCHANGER for heating plastic raw material.

And AIR BLOWER is use for flowing air. Airs are use for making molted plastic raw material bubble and also use for cooling purpose.

Changing temperature of HEAT EXCHANGER and airflow of AIR BLOWER control panel are use.

DRIVE PANEL: -

• In all plant MOTOR, GEARBOX & WINGING equipment are use. • Controlling speed of motor, gearbox, belt drive & winding equipment DRIVE PANEL are use.

Both panels are made in electrical department ON CONTRACT BASE.
And electrical department does IN HOUSE WIRE RING.

MACHIN SHOP DEPARTMENT

Machine shop lay out can further be divided into 3 zones as
Zone 1-(barrel line)
Zone 2-(screw line)
Zone 3-(nitriding)
About 450 screws & 350 barrel are produce in a year.

MANUFACTURING FACILITES KET's extensive manufacturing facilities are at Daman, (a Union Territory of India) spread over an area of 4,00,000 sq. feet. It is equipped with the latest state-of-the-art CNC special purpose machines for in-house machining and other crucial production functions like

Deckel Maho Gildemeister (German make) High Speed (Spindle Speed 12,000 RPM), Precision Vertical Machining Centre - Mainly used for accurate machining of precision components like ‘T’ Dies, Thrust box castings and Die Head components.

Mazak (Japanese make) High Speed Precision Double - Column Machining Centre - for accurate machining of critical components.

Victor Taichung (Taiwan make) Turning Centre - for precision turn components like Die head parts, Punches and Cavities Scroll Cams.

Sanco Precision Horizontal Boring &Milling Machine.

Wanderer Screw Cutting Machine - for accurate cutting of Screws.

Tibo Loch (German make) Deep Hole Drilling Machine - for production of Twin and Single Barrel

TBT Deep Hole Boring Machine - for Twin and Single Barrels, with boring capacity of 5 meters deep.

4 Nos. Gas Nitriding Furnaces, which include one of 5.2 meters, the deepest in India - for nitriding of various components.

Other CNC Machines - for cylindrical grinding, drawing and other critical functions.

Mitutoyo Co-ordinate Measuring Machine (Japanese make) - For precision dimensional checking of the accuracy of components of Thrust bearing housing, Split housing, Barrel adaptor, Barrel flange, Haul - off, Dies, etc.. The most critical components like Screws, Barrels, Dies, Spirals, Thrust Housing, Gear Boxes, etc. are manufactured in house on high precision machines under strict quality control.

MAINTENANCE DEPARTMENT

ORGAOGRAM

MAINTENANCE DEPARTMENT

The major importance of Maintenance is keeping all the machinery and other facilities in good condition. It may stated that the maintenance is not only repairs but much wider than that. The major importances of maintenance are:

• DEPENDABILITY • KEY FACTOR IN QUALITY ASSURANCE • COST CONTROL • AVOIDING EQUIPMENT FAILURE

In the company, maintainance budget us prepared and used to determine whether he actual expanses are within the estimates. Their annual budget for maintaining the plant is around 5 lacs Rs. With the staff members of 15. They have their own stores department for the critical parts which are very useful when the problem of break down. They continuously analyze the past data regarding the reason for the break down. They follow both style of maintaining the plant: • Preventive • Break down

Because of their continuous analysis of the past data, they reduce the time of replacement of the machines. And their strategy of keeping the critical parts make them reducing the time of break down.

STORE DEPARTMENT

INVENTORY MANAGEMENT

• The stores department issued a notice, which includes details of component and their current inventory. • This notice helps purchasing department of taking the appropriate decision about purchase. • When the stores department receives any component, the first step is to note the record of the detail information of component. It is called the GRN[Goods Receive Note] • To note this GRN, There are 3 staff members to note this GRN. • The goods are not allowed to enter in the campus with out GRN. • After GRN is done, the next step is to check the challan which contain the over all information of goods receive by the company. For that the staff member inspects the current goods situation like packing and other situation. • After checking, the next step is to move these goods in their quality assurance department. • Challan sent to the member who notes the GRN. • Quality Assurance department checking the quality and testing of component and giving their feedback. • When quality is checked, the quality department puts the label of Green and Red according to the criteria, if quality is nit up to the mark, the inspector puts red labels. • After the process of checking the quality, the next step is to record of goods which is already checked. This material is sent to their stores department.

• All process is computerized and all the staff members can use this system. • The system, which they are using, is their private software, which is established by the head of department Mr. Harish Patel. • After component is store and when the requirement of the component, all the component has their tags with it, this tag is showing item No. Total Quantity No., Location and Name of Inspector. Who has checked that product? • The total procedure starting from the goods receive to the issued to the Production department, the whole system is computerized and every stage of the movement of a material, the specific staff members have to record those movement after the material is receive by the company. • As the total cost of single plant is around 6 laces to 2 crores, therefore the total turnover is approx. are 16 crores. • The total staff members are 20 includes 6 workmen and 2 drivers in receiving area. • There are around 12000 to 15000 component is require for a particular plant. So the inventory control is a key factor and analyzing of total material movement helps the management to take the appropriate decision.

PURCHASING CYCLE

The purchasing function listed below will be perform in tandem to complete a transaction from its completion.Ceratin steps can be noticed in the process of initiating and completing the transaction. The Steps Are 1. Recognition of Need: At first stage need is recognized by the engineering department and stores department. 2. Description of Requirement: Now at this stage engineering department sends Bills of Material to Purchase Department, And Stores department also sends details regarding their current Inventories. 3. Source Selection: At this stage, company does marketing research. Company own employees do marketing Research and on the basis of survey they identify the prospective supplier in maximum numbers. From which the task of Madam Kotha (DGM, Purchase) is to evaluate. Company analyze, compare to make final decision to select the 10 most prospective suppliers. The evaluation and selection criteria are as under:

• Suppliers Prospectus • Quality • Price • Present Dealing with other companies • After Sales Service • Credit Period.

After this, the selected or scrutinized suppliers which are selected by the company on which the presentation is prepared by the DGM, this presentation is delivered in the purchase meeting where VP evaluates on the basis of the presentation and companies objectives after which, the most eligible suppliers are to be approached by the DGM, on the basis of advice of VP. 4. Price and Availability are determined: After the supplier is selected the next step f negotiation and time period are decided through the meeting with the supplier. 5. Purchase order prepare and sent out to supplier 6. Acceptance of purchase order is obtained from the supplier 7. Follow up and Expediting: Now the step is to ensure that order is receive by the company in time or not, It helps to take the decision for the future procurement of material from this particular supplier.

T & T DEPARTMENT

TRIAL AND TESTING DEPARTMENT

This department’s major responsibilities are taking trial of given plant before dispatching plant to the customer and give their feedback to the engineering department regarding plant’s performance and any instruction which could help engineering department. As per the above department chart, there are specific individuals for all plant, which exist in the company. There are Manager, Engineer and DGM for this department. This organization is showing concern for customer as they invite customer for the free trial of the plant in their company. This department focusing more on performance and focusing on output as well as quality that customer expect from the plant. This trial and testing department are responsible for the commissioning of plant before dispatching to the customer. This department taking trial of output and quality to check the plant’s capabilities that helps not only to customer but also to the engineering department that also receiving feedback from trial and testing department which help them in next plant.

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• KET has developed strong R&D capabilities in field of Plastics Extrusion Machinery and Technology, which has helped customers to get the benefits of higher outputs, productivity, cost efficiencies and better end product quality.

• It has been in the forefront in adopting some of the latest advanced western technologies and constantly innovating to make these technologies work for the customers.

• In 1996, it became the first plastics extrusion machinery manufacturer in India to get the prestigious ISO 9001 - 2000 Certification.

HUMAN RERSOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Human resource management function concerned hiring, motivating and maintaining people in the organization. It focuses on people in the organization. The primary objective of the HRM is to ensure the availability of the competent and wiling workforce to an organization. HRM is not a stand-alone department, but rather a means to assist the organization with its primary objective. Whereas HRD is a part of HRM. It is a function more concerned with training and development, career planning and development and organization development. The Kabra Extrusion Technik, the activities include: • HR planning • Recruitment and selection • Training and development • Employee Welfare and Safety

HR PLANNING

RECRUITMENT Recruitment is the process of searching for and obtaining applicants for jobs, from among whom the right people can be selected. It is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected. Recruitment process said to end with the receipt of applications, In practice the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. A recruitment programmed helps the firm in at least four ways: • Attract highly qualified and competent people • Ensure that the selected candidates stay longer with the company. • Make sure that there is match between cost and benefit. • Helps the firm create more culturally diverse work force.

FACTORS GOVERING RECRUITMENT Recruitment is naturally subject to influence of several factors. These include external as well as internal.
EXTERNAL FACTORS: of particular importance is the supply and demand of specific skills in the labour market. If the demand for a particular skill is high relative to the supply, an extraordinary recruiting effort may be needed. When the unemployment rate in given area is high, the company’s recruitment process may be simpler.
INTERNAL FACTORS: This factor like Recruitment Policy of the organization. The policy is to prefer internal sourcing, as own employees know the company well and can recommend candidates who fit the organization’s culture. Another related policy is to have temporary and part time employees. An organization hiring temporary and part time employees is in a less advantageous position in attracting sufficient applications.

RECRUITMENT PROCESS The process comprises of different stages which consists of specific procedure in recruiting the employees: • PLANNING: Planning involves the translation of likely job vacancies and information about the nature of these jobs into a set of objective or targets that specify the Number and Type of applicants to be contacted.

The company KABRA EXTRUSION TECHNIK, The department like FINANCE, MARKETING as well as PRODUCTION, sent the form called MANPOWER REQUISITION FORM to the Human Resource Management, giving full details about their requirement. This form contains the information as under: • Details of position 1. Job Grade : 2. Numbers : 3. Job Description : • Details of requirement 1. Quality : Essential_____ Desirable____ 2. Experience Essential_____ Desirable____ 3. Age Essential_____ Desirable____

• Attracting Job seekers : After the Human Resource Management sort listing the requirement of the department which need manpower, their next step is to attract the job seekers through different methods like ➢ PLACEMENT AGENCIES ➢ CAMPUS INTERVIEW ➢ ADVERTISEMENT IN NEWSPAPERS

The Human Resource Management trying to attract the seekers through above method and trying to attract as many as application for the right person at a right place.

• SORT LISTING THROUGH CRITERIA: All the application are sort listing through different criteria with the help of department’s requirement like Age, Quality, Experience and salary structure and make few among all the receive applicants. • The next step is to send call letters to the sort listed applicants; this call letters contains the data like Salary structure, other terms and conditions, etc.

The recruitment process is over when company sent the call letters who are eligible to the require Job.

SELECTION After the call letters are sent to the applicants, and when applicants come to the company, the selection process starts. The Interview starts with the 6 member’s team takes the Interview. The panel includes HR manager, VP and DGM OF department joins together to select eligible applicants. • First step is to take preliminary interview, to give some Information regarding company’s expectation and their wants. After giving this introduction, they ask about what he/she’s expecting about salary. • The department’s members ask question about the knowledge and experience about the job which he/she will doing here. • The HR manager’s are taken the training regarding how to conduct an interview, what kind of behaviour is required and how to communicate with the Interviewee. • After completion of preliminary Interview, they takes final decision for capable among all the applicants. The company giving them a form which contains the family background, their personal goal, their expectation from the company, and academic qualification. • After the Interview is over, Company giving an offer letter to those who are eligible for the post. This offer letter contains all the terms and condition regarding company’s policy and their rules which must be followed by the new comers. The applicants have to sign this offer letter before joining.

APPOINTMENT LETTER

Appointment letter showing terms and conditions with schedule:

TRAINING AND DEVELOPMENT

The HR department having a calendar of training and development which showing the schedule of giving training, HR department gives various types of HR as well as technical training to their workers and new recruiters. Training Menus: this menu showing that all the new recruiters require some fixed training, which are already in training menu.

This organization inviters External as well as Internal faculty and give seminar to new recruiters as well as existing trainees about company’s system and how to improve productivity and skills to achieve organization’s goals as well as individual’s goals. The trainees have to filled a form of feedback and evaluation form as well as suggestion form and submit it to HR manager.

They give following types of training: • Induction Training: Here the recruits are given an induction training of one week where the new trainee has to work in the different plants in which he/she is recruited. • Safety Training: It is given to all the employees, in batches fr four days in a week for a one hour. • HR Training: This training is for the team building and self up gradation of the training employees not directly related to his job. • Operators Training: Whenever any new machine or a new system is adopted in the plant, the person who has to handle it is given training regarding its working safely and maintenance.

There is no Performance Appraisal System in Kabra Extrusion Technik for last 5 years.

SAFETY AND HEALTH Safety is the simple term means freedom from the occurrence of risk of injury or loss. Industrial safety or employee safety refers to the protection of workers from the danger of Industrial accident
NEED FOR SAFETY AND HEALTH:
An accident free plant enjoys certain benefit like: • Cost saving • Increase productivity • Legal

In KABRA EXTRUSION TECHNIK has a safety committee, which gives special 3 months training regarding safety about how to use safety equipment, and steps which is require for safety purpose. Company has his own doctor which visit 4 days in a week, regular check up of all employees and staffs. The safety equipment like Smoke detector, Glows, spectacles, safety boots, apron and smoke detector, CO2 cylinder. First aid box also there in emergency cases. All the employees are provided medic claim from company.

MARKETING DEPARTMENT

MARKETING DEPARTMENT
INTRODUCTION
Marketing deals with identifying and meeting human and social needs. Marketing is an organizational function. Marketing’s role is to “deliver a higher standard of living”. Good marketing is no accident but a result of careful panning and execution. Marketing is both an ART and SCIENCE Good marketing has become an increasingly vital ingredient for business success. As per Mr. Prasad [DGM of Marketing dept.], Marketing is the factor that converting the needs of customer into wants. They believe that to maintain the relation with the customer is also a part of marketing. As per the views of Mr. Prasad, The main target is how they can keep their customer loyal for longer? The company is producing an industrial product not FMCG. So per unit price is around 20 to 25 lacks Rs. Therefore the customer’s needs and requirement is very important to the company if the company wants to serve them by the best way.

DEPARTMENT VISION: -

• To delight customer by providing service in time and always. • Focus to build organizational image in the market by maintaining and developing customer relationship. • Develop the business potential.

DEPARTMENT MISSION: -

• Ensure that supplied plant perform at its optimum level as customer place. • To secure repeated business from the customer.

ACTION, WAYS & MEANS TO ACHIEVE THE GOAL: -
Attend break down calls from customers as fast as possible.
Constantly much the customer for feedback on plant performance and suggestion on improvement.
Render service and spares as and when required by customer.
Improve quality of plant by regular CRB meeting. (Complain review board)
Upgrade skill knowledge of all personnel by imparting necessary training.

MARKETING DEPARTMENT

(M K S E)

ORGANOGRAM

MARKETING CONCEPT

They follow the Marketing concept which is not to find the right customer for their product but the right product for the customer. To gain the competitive advantage by creating, delivering and communicating superior customer value which is more effective than the competitor.

Sales promotional activities:-

Promotion plays a distinct role in marketing. It is a combined effort of salesman, advertisement and marketing channels. Promotion Mix consists of the Following. ❖ Advertising ❖ Sales Promotion ❖ Other sales promotional activities

ADVERTISEMENT: The product is an industrial product, so the advertisement in the magazines helps customer and company itself. Customer came to know about their product and their other information. The company has his own website which is www.kolsite.com

SALES PROMOTION: the company promotes their product through their own Exhibition as well as with a joint Exhibition with companies like Reliance which is well known. So they organize this Exhibition 2 times per year at the following places: • Domestic market: Delhi, Mumbai, Bangalore, Kolkata • International market: Dubai, Ghana, South Africa

Other sales promotional activities:

• They find out from their past data of their customer and list out 10 loyal customer and give them special discount and other benefit like giving them spares parts’ kit to maintain customer relation. • They provide the facility of 1 year warranty and guaranty depending upon the components and their features. • They continuously receive feedback and any instructions and recommendation from their existing customer about their services to increasing their services.

CORE COMPETENCIES

They Are the Market Leader in the Extrusion Technik, They Have Collaborate with The Germany’s Leading Company Batten field which give them competitive advantage from their competitors. Because this company has the advanced technology.

Their main competencies are in Screw and barrel which they are making in houses.

Their main core competencies are they provide free installation of their plant while the competitors take charges for the installation.

They are giving free kit of critical parts which help them while break down of their machines.

Kolsite Worldwide

Company’s technological leadership through collaborations, quality & services are well accepted in global market. Government of India has recognized the performance in exports by granting the status of an “Export House". The exports growth rate is 30% and has over 700 Kolsite plants installed in 52 countries overseas.

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SERVICE

KABRA EXTRUSION TECHNIK believes, “The End of Sale is the Beginning of Commitment". They Endeavour to design and manufacture the plant, using reliable components, requiring least service. However, KET respond fast whenever need arises. Their service staff & highly trained engineers attend to your requirements through nine service branches. To meet customer urgent requirement of original spare parts, Company stock thousands of components in their spare warehouse. Long term consistency in quality is the primary measure of value for money. At Kolsite, quality is the way of life and it is no small wonder that the company has been a Leader in Plastic Extrusion Machinery, in India. The Kolsite Group today, holds the distinction of being the only Plastic Machinery manufacturer to be accredited with ISO Certifications, for its three companies:

KOLSITE MASCHINE FABRIK LTD., - ISO 9001 KABRA EXTUSIONTECHNIK LTD., - ISO 9001 PLASTIBLENDS INDIA LTD., - ISO 900

Sales and Service includes

Company Believe "The End of Sales is the Beginning of Commitment"

Training

Training is imparted to our customer's personnel during trial & testing of plants ordered by them at our factory. Troubleshooting skills are also imparted as a special need for new entrants.

Technical Support

Support in terms of technical maintenance & polymer selection is readily available from our engineering & service team, as well as our team of experienced service personnel. Solutions to problems related to process, machine maintenance & operation are available.

Service

Service is extended to plants spread out in India & Overseas through a network of branches comprising of technically sound & qualified electrical, mechanical & electronic service technicians.

Spare Parts

Spare stores covering the complete range of equipment supplied by the Kolsite Group of Industries is maintained at the works. Dispatch of spares parts is available within 24 hrs. to any location subject to commercial formalities & requirements being clear.
Manual

Preventive maintenance & operation manuals are delivered to the customer for reference. Information on circuit diagrams, maintenance, operational care & lubrication, safety, major operational instructions, part lists, detailed manuals of bought out components like motors, gear boxes are included

COMPETITORS

• JP INDUSTRIES • D G P WINDSOR • RAJOO ENGINEERING

CUSTOMER RELATIONSHIP MANAGEMENT

There are many factors affecting for the customer satisfaction. • Completing order at a time • No damage at dispatch and installing • Erriction and commissioning at time • Given extra critical parts with the plant • Instruction regarding maintenance and operating machine • Giving Better quality and production as per given capacity • After sales services As per the company’s mechanism of receiving the order from customer, The Company asks about their requirement and their needs to serve them better. The product which they are making is an industrial product and price is around 20 to 25 lacs so it is very important to identify their needs and requirement. They interact with the customer and receive feedback from them about not only product but their services also. This will give them proper direction and help them to serve in better prospects. They also track the customer defection and rejection levels. They track the satisfaction levels.

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INTRODUCTION OF FINANCE

The primary purpose of any business is to earn profit. To earn profit, the business has to produce goods or render services. To do either, management of business must have adequate supply of funds. It is the responsibility of the finance department to ensure the supply of needed funds. Financial management is the application of planning and control to the finance function of a business to ensure that the funds needed are raised and use effectively for it’s benefit. Financial management means procurement of funds at minimum cost and its effective use in order to maximize the wealth of shareholders.

|FINANCIAL HIGHLIGHTS |
| | | | | | |
| | | | |(Rs. In Lacs) |
| |2005-06 |2004-05 |2003-04 |2002-03 |2001-02 |
|OPERATING RESULTS | | | | | |
|Sales & Other Income |10388.15 |7398.96 |8594.50 |4281.60 |5186.63 |
|Profit before Depreciation, Interest & Tax |1016.30 |808.68 |1164.62 |551.53 |716.08 |
|Less : Depreciation |151.29 |133.21 |122.58 |97.11 |94.31 |
| Interest |37.71 |12.18 |16.73 |13.98 |23.79 |
|Profit before tax |827.30 |663.29 |1025.31 |440.44 |597.97 |
|Less : Provision for Tax |210.00 |185.00 |205.00 |130.00 |140.00 |
|Less / Add : Provision for Deferred Tax Assets / |15.18 |-20.17 |-49.42 |37.49 |-104.49 |
|(Liabilities) | | | | | |
|Less : Taxation of earlier years |_ |_ |_ |13.57 |_ |
|Net Profit after tax & deferred tax |632.48 |458.12 |770.89 |334.36 |353.49 |
|Retained earnings |268.72 |184.39 |500.06 |214.33 |233.46 |
|Earning per share(EPS) |9.00 |6.97 |11.96 |9.05 |10.31 |
|Dividend (%) |40% |35% |35% |35% |35% |
| | | | | | |
| | | | | | |
|Assets Employed | | | | | |
|Fixed Assets (NET) |2397.09 |1781.51 |1896.92 |1708.90 |1459.03 |
|Current Assets (NET) |2593.19 |2715.49 |1491.06 |1579.03 |1216.46 |
|Capital Employed |5256.12 |4887.86 |4355.19 |3978.33 |3589.36 |
| | | | | | |
|Financed By | | | | | |
|Share Capital |685.90 |685.90 |685.90 |342.95 |342.95 |
|Reserves |3697.46 |3428.76 |3216.73 |3059.62 |2860.66 |
|Total Shareholder Funds |4383.36 |4114.66 |3902.63 |3402.57 |3203.61 |
|Borrowings |645.97 |531.23 |230.75 |403.38 |175.88 |
|Debt : Equity |0.15 : 1 |0.13 :1 |0.06 : 1 |0.12 : 1 |0.05 : 1 |
| | | | | | |
|Others | | | | | |
|Book Value Per Share (Rs.) |64.00 |60.00 |56.90 |99.21 |93.41 |
|Gross Fixed Assets |3407.21 |2654.49 |2669.17 |2371.21 |2033.81 |
|Employees Cost |733.43 |523.28 |448.47 |394.92 |377.76 |
| | | | | | |
|Number of Issued Shares |6859000 |6859000 |6859000 |3429500 |3429500 |

CATEGORIES OF SHARE HOLDERS
AS ON 31ST MARCH 2006

|SR. NO |Categories |no. of share held |% of share holding |
|1 |Promoters |3836275 |55.93 |
|2 |Public, financial institute, banks and insurance co|12550 |0.18 |
|3 |Private corporate bodies |433202 |6.32 |
|4 |NRI’s/OCBs |90642 |1.32 |
|5 |Indian public and others |2486331 |36.25 |
| |Total |6859000 |100 |

DISTRIBUTION OF SHARE HOLDING
AS ON 31ST MARCH, 2006

|No. of Equity shares |No. of Share holders |% of Share holders |No. of shares |% of Shares |
|Up to 500 |6564 |88.43 |1107814 |16.15 |
|501-1000 |503 |6.78 |406533 |5.93 |
|1001-2000 |182 |2.45 |286252 |4.17 |
|2001-3000 |68 |0.92 |165985 |2.42 |
|3001-4000 |21 |0.28 |77829 |1.14 |
|4001-5000 |22 |0.29 |103164 |1.50 |
|5001-10000 |31 |0.42 |216816 |3.16 |
|10001 and above |32 |0.43 |4494607 |65.53 |
|TOTAL |7423 |100 |6859000 |100 |

EXPORT
Documents
1. Original irrevocable Documentary credit number. 2. Shipping Bill. 3. FEMA Declaration. 4. Bill of exchange. 5. Bill of lading number. 6. Invoice no. for total value of US Dollars duly certified by merchant chamber. 7. Certificate of origin. 8. Packing list. 9. Certificate to Beneficiary and fax to over insurance to insurance company & applicant. 10. Certificate of Beneficiary letter & Registered mail ack.

Customer country

Customer county of KABRA Extrusionstechnik is South Africa, Dubai, Bangladesh, Srilanka and Germany etc.

Payment 1. Performa payment: In this method payment is paid after the delivery of product. 2. Term payment : In this method payment is immediately paid
Transportation
In case of Export transportation is done by the way of sea.

|PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH,2006 |
| PARTICULARS | For the year ended | | For the year ended |
| |31.03.2006 | |31.03.2005 |
| | | | |
| INCOME | | | |
| Sales | 1,038,815,352 | | 739,896,084 |
| Increase/(Decrease)in work in progress & stock of finished | 32,205,287 | | 8,882,785 |
|goods | | | |
| TOTAL | 1,071,020,639 | | 748,778,869 |
| | | | |
| EXPENDITURE | | | |
| Raw Materials consumed | 769,399,792 | | 505,813,155 |
| Manufacturing and other expenses | 126,647,305 | | 109,769,678 |
| Employees Emoluments & Staff welfare | 73,343,370 | | 52,328,136 |
| Interest | 3,770,799 | | 1,218,160 |
| Depreciation | 15,129,577 | | 13,321,027 |
| TOTAL | 988,290,843 | | 682,450,156 |
| Profit Before Tax | 82,729,796 | | 66,328,713 |
| Less: Provision for tax | 21,000,000 | | 18,500,000 |
| Profit After Tax | 61,729,796 | | 47,828,713 |
| Add/(Less): Deferred Tax Assets/(Liabilities) | 1,518,155 | | 2,016,805 |
| Profit after Tax and Deffered Tax | 63,247,951 | | 45,811,908 |
| Add/(Less):Income/(Expenses)of earlier year | 1,280 | | 2,764,422 |
| | 63,246,671 | | 48,576,330 |
| Add: Balance b/f from previous year | 178,346,650 | | 162,143,732 |
| Amount Available for Appropriations | 241,593,321 | | 210,720,062 |
| APPROPRIATIONS | | | |
| Transfer to general Reserve | 6,400,000 | | 5,000,000 |
| Proposed Dividend | 31,902,320 | | 24,006,500 |
| Provision for Tax on Dividend | 4,474,300 | | 3,366,912 |
| Balance carried to Balance Sheet | 198,816,701 | | 178,346,650 |
| TOTAL | 241,593,321 | | 210,720,062 |

|BALANCE SHEEET AS AT 31st MARCH, 2006 |
|PARTICULARS |AS AT 31.03.2006 |AS AT 31.03.2005 |
| | | | |
|1. SOURCES OF FUNDS | | | |
| | | | |
|1. Shareholder's Finds | | | |
|(a) Share Capital |68,590,000 | |68,590,000 |
|(b) Reserves and Surplus |369,746,001 | |342,875,950 |
| | | | |
|2. Loan Funds | | | |
|(a) Secured Loans |33,797,613 | |40,922,885 |
|(b) Unsecured Loans |30,800,000 | |12,200,000 |
| | | | |
|3. Deferred Tax Liability |22,678,997 | |24,197,152 |
|TOTAL |525,612,611 | |488,785,987 |
| | | | |
|2. APPLICATION OF FUNDS | | | |
| | | | |
|1. Fixed Assets | | | |
|Gross Block |340,720,631 | |265,449,560 |
|Less: Depriciation |101,010,985 | |87,298,289 |
|Net Block |239,709,646 | |178,151,271 |
| | | | |
|INVESTMENT |26,583,726 | |39,085,082 |
| | | | |
|2. a) Current Assets, Loans & Advances | | | |
|(1) Inventories |220,504,899 | |165,784,552 |
|(2) Sundry Debtors |128,630,498 | |104,736,784 |
|(3) Cash & Bank Balances |15,036,117 | |7,738,833 |
|(4) Loans & Advances |117,741,058 | |177,200,847 |
| |481,912,572 | |455,461,016 |
|b) Less: Current Liabilities & Provisions | | | |
|(1) Current Liabilities |149,059,262 | |110,914,768 |
|(2) Provisions |73,534,071 | |72,996,614 |
| |222,593,333 | |183,911,382 |
|Net Current Assets (a-b) |259,319,239 | |271,549,634 |
| | | | |
|TOTAL |525,612,611 | |488,785,987 |

WORKING CAPITAL

Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth, also called net current assets or current capital.

CONCEPTS OF WORKING CAPITAL

There are two concept of working capital

GROSS WORKING CAPITAL refers to the firm's investment in current assets. Current assets are the assets which can be converted into cash within an accounting year (or operating cycle) and include cash, short-term securities, debtors, (accounts receivable or book debts) bills receivable and stock (inventory).

NET WORKING CAPITAL refers to the difference between current assets and current liabilities. Current liabilities are those claims of outsiders which are expected to mature for payment within an accounting year and include creditors (accounts payable), bills payable, and outstanding expenses. Net working capital can be positive or negative. A positive net working capital will arise when current assets exceed current liabilities. A negative net working capital occurs when current liabilities are in excess of current assets.

4.2 NEED FOR WORKING CAPITAL

The need for working capital to run the day-to-day business activities cannot be overemphasized. We will hardly find a business firm which does not require any amount of working capital. Indeed, firms differ in their requirements of the working capital.

We know that a firm should aim at maximizing the wealth of its shareholders. In its endeavor to do so, a firm should earn sufficient return from its operations. Earning a steady amount of profit requires successful sales activity. The firm has to invest enough funds in current assets for generating sales. Current assets are needed because sales do not convert into cash instantaneously. There is always an operating cycle involved in the conversion of sales into cash.

|Calculation of Working Capital Needs |
| | |
|(A) Investment In Inventory | |
|1. Raw Material 52 Days | 17,646,440 |
|2. Work In Progress 34 Days | 9,287,406 |
| | |
|(B) Investment In Debtors 46 Days | 128,434,895 |
| | |
|(C) Cash Balance | 15,036,117 |
| | |
|(D)Investment IN Current Asset (=A+B+C) | 170,404,858 |
| | |
|(E)Current Liabilities | 94,589,830 |
| | |
|(F)Networking Capital (D - E) | 75,815,028 |

INTRODUCTION TO RATIO ANALYSIS

Ratio Analysis is a study of relationship among various financial factors in a business, as disclosed by a singles set of statements and a study of trend of this factor as shown in series of statement.

Ratio analysis is a widely used tool of financial analysis. It is defined as a systematic use of ratio to interpret the financial statements so that the strength & weaknesses of a company as well as its historical performance & current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two items/variables.

Ratio analysis is one of the methods of analyzing financial statements. It has been our experience that financial statements in their original form are collection of monotonous figures; Ratio analysis measures the profitability, efficiency & financial soundness of the business. The relationship between two facts like gross profit & sales or current assets & current liabilities.

Ratios refer to the use of the arithmetic expressions to highlights relationships between various figures of financial statements. Ratio may express relationship between two figures of the profit & loss account & another from balance sheet from available data, ratio can be computed but only a few are meaningful & of interest to us.

USE OF RATIO ANALYSIS

“A ratio is known as a symptom like blood pressure, the pulse rate or the temperature of an individual. The uses of ratio analysis are:

1) Managerial Use: -

a) Helps in Financial Forecasting & Planning: - Planning is looking a head & the ratio calculated for a number of years work as a guide for the future meaningful conclusion can be drawn for future from their ratio. Thus, ratio analysis helps in forecasting & planning.

b) Helps in Co-Ordination: - Ratios even help in co-ordination, which is of almost importance in effective business management. Better communication of efficiency & weakness of an enterprise results in better co-ordination enterprises.

c) Other Uses: - There are 50 many other uses of the ratio analysis. It is an essential part of the budgetary control & standard costing.

2) Utility of Shareholders/Investors. An investor in the bank will like to assess the financial position of the concern where he is going to invest. Ratio an will be useful to the investor for making up his mind whether present financial position of the concern warrants further investment or not.

3) Utility of Government. Government may base its future policies on the basis of industrial information available from various units. The ratio may be used as indictor of public as well as private sector.

Ratio Analysis

Liquidity Ratios:

(1) Current Ratio

Current Assets/Current Liabilities

Year
2004-05 4.1 06. 3.233026687

The current ratio represent margin of safety for creditors, Comparing two years ratio current years ratio is less compare to previous year. (2) Quick Ratio

Current Assets-Inventories/CL

Year
2004-05 2.61
2005-06 1.75

An ideal Quick ratio is said to be 1:1. if it is more ,it is considered being better. The idea is that for every rupee or current liabilities, there should be at least one rupee of liquid asset. so, in this case previous year’s quick ratio is better.
Leverage Ratios:

(1) Debt Ratio

Total Debt (TD)/Net Assets (NA)

Year TD = 53,122,885 NA = 449,700,905
2004-05 0.1181 TD = 64,597,613 NA = 499,028,885 06. 0.1294

(2) Debt-Equity Ratio

Total Debt/Net worth

Year Net worth = 68,590,000 05. 0.77

06. 0.94

(3) Capital Employed to Net worth

CE/NW = NW + TD/NW

Year CE = 121,712,885
2004-05 1.77 CE = 133,187,613
2005-06 1.94

Coverage Ratios:

(1) Interest Coverage

EBIT =86,500,595 Interest =37,70,799

EBIT/Interest 22.939593

EBDIT = 101,630,172
EBDIT/Interest 26.95

Activity Ratios:

(1) Inventory Turnover Ratio

COGS/Avg.Inventory COGS = 755,072,302 Avg.Inventory = 167,529,404

2004-05 4.50 times COGS = 988,290,843 Avg.Inventory = 193,144,726
2005-06 5.11 times

Raw Material Inventory Turnover

Material Consumed /Avg. Raw Material Inventory

Mtrl.Consumed = 5,724,458,606 Avg.RM Inventory = 105,838,849

2004-05 5.40 times Mtrl.Consumed =769,399,792 Avg.RM Inventory =110,910,134

2005-06 6.94 times

The Company holds 52 days inventory of Raw Materials

WIP Inventory Turnover

Cost of Production / Avg. WIP Inventory

COP = 687,410,626 Avg. WIP Inventory = 61,690,556 05. 11.14 times

COP =863,841,810 Avg. WIP Inventory = 82,234,592
2004-05 10.50 times

The Company holds 34 days inventory of WIP

(2) Collection Period

ACP = Debtor / Sales * 360

Debtor = 104,736,784 Sales = 701,407,663
2004-05 54 days

Debtor = 128,630,498 Sales = 1,005,142,658 05. 46 days

Profitability Ratios:

(1) Gross Profit Margin

Sales – Cost of Goods Sold / Sales

Sales = 701,407,663 COGS = 682,450,156
2004-05 2.70 %

Sales = 1,005,142,658 COGS =988,290,843
2004-05 2.70 %

(2) Net Profit Margin

PAT / Sales

PAT= 47,828,713
2004-05 6.82 %

PAT= 61,729,796 05. 6.14 %

(3) Return on Equity (TA)

EBIT /TA

EBIT=67,546,873 TA= 633,612,287

2004-05 10.66 %

EBIT=86,500,595 TA=721,622,218
2005-06 11.99 %

(4) Return on Equity (NA)

EBIT /NA

NA = 449,700,905 05. 15.02 %

NA =499,028,885 06. 17.33 %

(5)Return on Equity

ROE= PAT / NW PAT= 47,828,713 NW =411,465,950
2004-05 11.62 %

PAT= 61,729,796 NW =438,336,001 06. 14.08 %

(6) Earning per Share (EPS)
PAT/ No. of shares issued

PAT= 47,828,713 No. of shares = 6,859,000 05. 6.97 Rs.

PAT= 61,729,796
2005-06 8.99 Rs.

|Current asset holding period | | |
| | | |
|Inventory Requirement |Annual |1 Month |
| | | |
|Raw Material |122,167,664 |10,180,639 |
|Work In Progress |98,337,235 |8,194,769 |
| | | |
|Total Inventory |220,504,899 |18,375,408 |
| | | |
|Debtor |128,630,498 |10,719,208 |
| | | |
|Operating Cash |_ |_ |
| | | |
|Total Working Capital Required |349,135,397 |29,094,616 |

Ratio of Sales
To estimate Working Capital requirement as a ratio of sales on the assumption that current assets change with sales, average is 30% of annual sales that is Rs.32, 99, 90,146.

Ratio of Fixed Investment
To estimate working capital requirement as a percentage of fixed investment, average is 15% of investment that is Rs.39, 87,559.

|CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET AS AT 31st MARCH 2006 |
| | | |
|Particulars |2005-2006 |2004-2005 |
|(A) CASH FLOW FROM OPERATING ACTIVITIES |RUPEES |RUPEES |
|Net Profit Before Tax & Extra- ordinary Items | 82,729,796 | 66,328,713 |
| | | |
|Add :Adjusted for | | |
| Depreciation | 15,129,577 | 13,321,027 |
| Loss on Sale of Fixed Assets | 746,279 | 128,485 |
| Interest Paid | 3,770,799 | 1,218,160 |
| Income of Earlier Year | (1,280) | 2,764,422 |
| | 102,375,171 | 83,760,807 |
|Less :Interest Income | 1,780,871 | 4,270,801 |
| Surplus on Saleof Investment | 6,869,581 | 3,311,414 |
| Profit On Sale of Fixed Assets | 231 | 1,474,095 |
| Dividend Received | 8,650,316 | 10,908,746 |
|Operating Profit Before Working Capital charges | 85,074,172 | 63,795,751 |
|Add :Increase/(Decrease) in Current Liabilities | 37,988,615 | 15,333,345 |
| Increase/(Decrease) in Provision | (14,973,994) | 3,677,154 |
| | 108,088,793 | 82,806,250 |
|Add/(Less):Increase/Decrease in Inventories | (54,720,347) | 3,489,704 |
| Increase/Decrease in Receivables | (23,893,714) | (13,412,086) |
| Increase/Decrease in Current Assets | 54,467,389 | (141,288,404) |
| | 83,942,121 | (68,404,536) |
|Less :Income Tax Paid | 14,491,758 | 13,411,443 |
| Interest Paid | 3,770,799 | 1,218,160 |
|Net Cash from Operating Activities | 65,679,564 | (83,034,139) |
|(A) | | |
|(B) Cash flow from Investing Activities | | |
| Purchase of Fixed Assets | (77,997,499) | (13,802,026) |
| Sales of Assets | 563,500 | 13,367,859 |
| Sale of Investment | 19,370,937 | 60,946,597 |
| Interest Received | 1,780,871 | 4,270,801 |
| Dividend Received | 8,650,316 | 10,908,746 |
|Net Cash generated/used in investing Activities (B) | (47,631,875) | 75,691,977 |
|( C) Cash Flow from Financing activities | | |
| Increase/(Decrease) in Secured / Unsecured loans (Working capital) | 11,474,728 | 30,047,396 |
| Inter Corporate Deposit refund received | 1,500,000 | 6,000,000 |
| Dividend Paid | (27,217,534) | (27,005,187) |
|Net Cash from financing activities ( | (14,242,806) | 9,042,209 |
|C) | | |
|Net Increase in cash & cash Equivalents A+B+C | 3,804,883 | 1,700,047 |
|Add :Cash & Cash equivalents at the beginning of the year | 2,745,834 | 1,045,787 |
| Cash & Cash equivalents at the close of the year | 6,550,717 | 2,745,834 |

METHOD STUDY:-

“Method study is a scientific technique of observing, recording and critically examining the present method of performing a task or job or operation with the aim of improving the present method and developing cheaper method”.

OBJECTIVE OF METHOD STUDY: -

• To study the existing/proposed method of doing any job, operation or activity. • To develop an improved method to improve productivity and to reduce operating cost. • To reduce excessive material handling or movement and thereby reduce fatigue of workmen. • To improve utilization of resources. • To eliminate wasteful and inefficient motions. • To standardize work methods or processes, working conditions, machinery, equipments, and tool.

ADVANTAGE OF METHOD STUDY: -

• Work simplification. • Improved working method (cheaper method). • Better product quality. • Improved work place layout. • Improved equipment design. • Better working condition/environment. • Better material handling and lesser material handling cost. • Improved workflow. • Less fatigue to operation. • Optimum utilization of all resource. • Higher safety to workmen. • Shortest production cycle time. • Reduced material consumption and wastages. • Reduced manufacturing cost and higher productivity.

METHOD STUDY PROCEDURE: -

The various steps involved in method study are:

1.SELECT:
The work or job to be studied and define the objective to be achieved by method study. The job selected to have maximum economic advantage, shall offer vast scope for work improvement through reduction of excessive materials handling and fatigue of workmen offer scope for improving the working condition and improving the utilization of resources.

2.RECORD:
a) Process charts:
1. Outline process chart,
2. Flow process chart; man, material and equipment type,
3. Two hand process chart,
4. Multipal activity charts.
b) Diagrams:
1. Flow diagrams,
2. String diagrams,
3. Cyclegraph,
4. Chrnocyclegraph.
3. EXAMINS: -
The record event critically and in sequence. Critical examination involved answer to a number of questions. An activity can be eliminated, simplified or combined with an other. The basic questions are,

Purpose: what is done?
Person: who dose it?
Place: where it is done?
Means: how is it done?
Sequence: when is it done?

4 DEVELOP: -

The improved method by generating several alternatives and selecting the best method. The factor to be considered while evaluating alternatives and selecting the best method are:

1. Cost of implementation. 2. Expected saving in time and cost. 3. Feasibility. 4. Producibility. 5. Acceptance to design, production planning and control, quality control, production and sales departments. 6. Safety and effective. 7. Economical.

Establish the new method by providing suitable equipment design, mechanical aids, jigs and fixtures, tools, working condition, material handling equipments, workplace layout and work planning and control techniques.

5. INSTALL: -

The improved method in three phases – planning, arranging and implementing phases. The programmed of installation and schedule are planned and necessary requirements such as resources, equipment, tools, operating instructions to worker are provided. The implementation phase involves the introduction of the developed method is practiced to achieve the desired results.

6. MAINTAIN: -

The new method by ensuring that the installed method is functioning well. This is done by periodic checks and verifications at regular intervals. Proper control procedures are used to ensure that the new method is practiced to achieve the benefits of methods study and also to achieve higher productivity.

PROCESS CHARTS USED IN METHOD STUDY

OUT LINE (OPERATION) PROCESS CHART: -

Surveys and records an over all picture of the process and states only main events or steps sequence-wise,

• It helps visualizing and comprehending the full process so that necessary improvement may be made if required. • It shows relationship between the different activities. • It considers only operation and inspection, and thus it makes use of only two symbol, • Description of operations and inspections are written on the right-hand side of the symbol and • Actually and out line process chart is the first step or the beginning of detailed analysis.

OUT LINE (OPERATION) PROCESS CHART: -

TASK: - SCREW MAKING

CHART BEGINS: - BAR CUTTING

CHART END: - INSPACTION

CHARTED BY: -…………………..

DATE: -……………………………

Screw making

Required size cutting (1/2 hr)

Rough machining (4 day)

Drilling (2 day)

Inspection (1/2 hr)

Finish machining (3 day)

Rough grinding (2 hr)

Hobbing (7 hr)

Thread milling (12 hr)

Stress relished (3 day)(24 hr in farness)

Straitening (4 hr)

Finish thread milling (8hr)

Inspection (3day)

Polishing (6 hr)(with help of belt)

Straitening (3 hr) (hydraulic press)

Finish grinding (3 hr)

Nose cutting (2 hr)

Inspection

Nitraiding (8 day)(120 hr in farness)(NH4)

Buffering (3 hr)(for sinning)

Straitening (3 hr) (hydraulic press)

Inspection

SUMMARY: -

17

4

Activity chart for barrel

Activity Charts are generally represented by symbols because symbols produce a better and quick understanding of the facts. Process charts use the following 4 basic symbols to record different type of event.

Symbols: -

Operation - O

Transportation - (

Inspection - (

Delay - D

Storage - (

|Sr. no |Dist |Symbol |Time |Activity |Remark |
|1 |200m | O ( D ( ( | |Inward material | |
|2 | |O ( D ( ( |½ hr |Quality check | |
|3 | |O ( D ( ( | |Store | |
| 4 |40m |O ( D ( ( | |Move to cutting m/c |By trolley |
|5 | |O ( D ( ( | |Await movement | |
|6 | |O ( D ( ( |3 hr |Cutting | |
|7 | |O ( D ( ( | |Move to rough cutting | |
|8 | |O ( D ( ( |4 day |Rough cutting |To vender |
|9 | |O ( D ( ( | |Inward material | |
|10 | |O ( D ( ( | |Move to finishing m/c | |
|11 | |O ( D ( ( |3 hr |Finishing | |
|12 | |O ( D ( ( | |Move to rough drilling | |
|13 | |O ( D ( ( |4 hr |Drilling | |
|14 | |O ( D ( ( | |Move to boring | |
|15 | |O ( D ( ( |4 hr |Boring | |
|16 | |O ( D ( ( | |Await movement | |
|17 | |O ( D ( ( | |Move to milling | |
|18 | |O ( D ( ( |4 hr |Milling |Dowel hole |
|19 | |O ( D ( ( |½ hr |Inspection |On m/c |
|20 | |O ( D ( ( | |Move to nitraiding | |
|21 | |O( D ( ( |8 day |nitraiding |120 hr furnish |
|22 | |O( D ( ( | |Move to honing | |
|23 | |O( D ( ( |4 hr |Honing | |
|24 |10m |O( D ( ( | |Move to inspection | |
|25 | |O( D ( ( |3 hr |Inspection | |
|26 | |O( D ( ( | |Store | |

FLOW PROCESS CHART (MAN TYPE): -

TASK: - DIE BASE GRINDING

Take job from store

Hold the raw material in machine table base

Lubricant spread on job

Wait for few second

Start hand grinding machine

Grinding a job at required level

Stop grinding machine

Remove lubricant from finish job

Inspection

Transport to store Store it

FLOW DIAGRAM: -

A flow diagram is a drawing or a diagram, which is drawn to scale. It shows the relative position of production machinery, jigs, fixtures, etc. and marks the paths followed by men and materials.

Steps in drawing a flow diagram: • Draw to scale the plan of the work area. • Mark the relative positions of machine tools, benches, store, racks, inspections, etc. • From the different observations, draw the actual movement can be marked in different colors. Process symbols may also be added on to diagram.

And find the best possible way for material movement.

EXISTING PRODUCTION SET UP: -

The production department at KABRA mainly consists of two divisions.
1) Machine shop- for manufacturing of screw & barrels.
2) Assembly section for assembling the machine parts to from the final product.
1) Machine shop lay out can further be divided into 3 zones as:-

Zone 1-(barrel line)
Zone 2-(screw line)
Zone 3-(nitriding)

About 450 screws & 350 barrel are produce in a year.
2) The assembly section can further divided in main 3 zones as:-

Zone 1-(pipe line)
Zone 2-(film line)
Zone 3-(tape line)

Each line consists of assembly line, trail & testing, and for dispatch.

MACHINE SHOP PLATLAYOUT: -

ASSEMBLY AND T&T DEPT PLANTLAYOUT

No change required in T & T plant layout.

ALTERNATE PRODUCTION SET UP: -

• In the existing production set up, all most care has taken by the management to minimize the material movement in the plant as the present organization set up. • Cranes, trolleys are provided at appropriate locations for easy material handling and movement. • Some change in plant layout than minimizing the material movement. • Instead of inspection room, maintenance room shifted nitriding section. • And store is shifted at nitriding section. • When we do this thing at that time we minimized material movement. • When we do this thing at that time store is near to machine shop and also nirtaiding section is also near to barrel and screw line so we reduced material movement.

SUGGESTED PLANTLAYOUT OF M/C SHOP: -

FINDING: -

STORE DEPATMENT PLANT LAYOUT: -

STORE

At store department

• The receiving area of store is not much more arrange purchase materials in a systematic way to.

RECOMMENDATION: -

• Company has open space near the store department. So company can increase the area of the store to arrange the purchase material in a systematic way.

(BUYING) MATERIAL MOVEMENT FROM INWARD TO SHOP FLOOR

(MAKING) MATERIAL MOVEMENT FROM INVERD TO SHOP FLOOR

Material handling equipment:

1.Hydraulic Hand Pallet Truck

Hydraulic Hand pallet Truck has a rugged main body designed for heavy duty, made of channels to give maximum strength with minimum weight ensuring a dependable lifting action. The pallet Truck has a pump actuated by steering handle, gives greatest leverage for fast and effortless lifting. A foot control valve is provided for positive variable speed lowering of Loads, 90 degrees Swivel in each direction with steering handle. The load is lifted by a hydraulic piston acting vertically, coupled directly to the forks and through linkage to the rear wheels gives a true horizontal lift of the forks and load.
[pic]

Attributes
Easy to operate

Sleek and Elegance

Smooth Movement

Minimum Maintenance

Application
For pallet handling, Transferring materials from one place to another place.

2.ELECTRIC WIRE ROPE HOIST ( CAPACITY 0.25 to 20 TONS )

Light Lift Electric Wire Rope Hoist are suitable for medium and heavy duty operations. The hoists are designed in modular construction with each component easily accessible for maintenance. The Rope drum, Gear Box, Motor, Brake and Panel can be easily attended to. The frame is of sturdy design fabricated from steel plates and is welded / bolted type.

Control

The hoist is controlled from ground level by means of Pendent type Push Buttons operating on low voltage of 110 volts to ensure safely of the operator. Control panel is of enclosed type, easily removable cover complete with Transformer Contactors and Fuses.

3.WIRE - ROPE HOISTS

[pic]

"Power-Master" brand wire-rope hoists are offered in ten capacities in the range from 0.5 Tone to 20 Tones. They are designed in modular construction in accordance with IS 3938. The Hoists are sturdy with adequate factor of safety. Tested quality steel wire rope to IS 2266 and forged hooks confirming to IS 3815 are used. Rope guide prolongs rope life. Hoist is operated through push button station with control voltage of 110V, 42V or 24V. "Power-Master" brand flameproof wire-rope Hoists are specially built with flameproof electrical to suit hazardous area confirming to IS 2148.

Attributes

• Frame is all steel fabricated and machined type • Rope Drum is made out of sturdy seamless pipe or fabricated from steel plates and is grooved to take the full lift without over winding. The drum shaft revolves in ball bearings, ensuring smooth running • Rope Drum is made out of sturdy seamless pipe or fabricated from steel plates and is grooved to take the full lift without over winding. The drum shaft revolves in ball bearings, ensuring smooth running • Rope Drum is made out of sturdy seamless pipe or fabricated from steel plates and is grooved to take the full lift without over winding. The drum shaft revolves in ball bearings, ensuring smooth running

FINDING: -

AT MATERIAL HANDLING

• In the company, they are using overhead crane as material movement handling system to move finish and semi finished good like barrel and screw. To carry the good they have arrangement of hook and belt in the crane. Which is not appropriate as it’s produce uneven balance. And due to this uneven balance finished good may fall from the crane.

Recommendation: -

• Instead of hook and belt system in crane. If company uses fixtures instead of belt they can reduce the uneven balance and it will also provide proper fixing between finished goods and crane.

• BIBLIOGRAPHY ➢ www.materialhandling.com ➢ www.kolsite.com ➢ Catalogue of the company ➢ Annual Report of Kabara Extrusion Technik ➢ Marketing Management by Philip Kotler ➢ Production by Ashwathappa

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-----------------------
VP OPERATION

QA

NITRIDING

MAINTANANCE

EDP

M/C SHOP

DGM EDN

DGM STORES

DY MGR ADM. & PER.

PURCHASE

PLAN

VP MATERIALS

GM FINANCE

GM DESIGN

GM SALES

Sr. MGR EXPORT

REGIONAL MGR

GM SERVICE

VP PROJECT

PRESIDENT

PRESIDENT OPERATION

VP QA

VP ENG.

MD

VP MKTING

ASSY SHOP

CHAIRMAN

VP.WORKS

MGR.
M/C SHOP

DGM.
M/C SHOP

DGM.
ELECT

DGM.
MAINT

DGM.
T&T

DGM.
ASSLY

MGR.
TAPE

DGM.
STORES

MGR.
FILM

MGR.
MAINT

MGR.
PIPE

QUALITY CHECK

MAKE COMP Decision

BUY COMP Decision

PURCHASE DEPT

ENGG. DEPT. MAKE “B O M”

SALES DEPT. TAKE ORDER

RESEND TO VENDER

SCRAP

REJECTION COMP

ACCEPT COMP

AFTER SALES AND SERVICE

ERICTION &COMMISNING

DISPATCH OF PLANT

CLEAR PAYMENT OF PLANT

PAINT & PACKING OF PLANT

CUSTOMER TRIAL (T&T)

TAKE TRIAL OF PLANT

ISSUED COMP TO ASSEMBLY

STORE COMP

REJECTION COMP

PRODUCTS

MULTI LAYER

TAPE LINES

PIPE LINES

FILM LINES

MONO LAYER

V.P WORKS

DGM ELEC

ENGINEER

MANAGER

WORKER (ELECTRICIAN)

ELECTRICAL DEPARTMENT

CONTROL
PANEL

DRIVE
PANEL

DOWN
STREAM

VP.WORKS

DY.GENERAL MANAGER

MANAGER

EXECUTIVE

FITTER

FITTER

ELECTRICIAN

ELECTRICIAN

DGM

DY.MANAGER

OFFICER
Job issue

OFFICER 1
Binning

OFFICER 2
Receiving

OFFICER
Rejection

Jr. OFFICER

Jr. OFFICER
2

Jr. OFFICER 3
Binning

OFFICER
Receiving

Workman

Sr. Assistant

Forklift driver 2

Assistant

VP WORKS

DGM T&T

MGR
FILM

MGR
TAPE

MGR
PIPE

ENGG

ENGG

ENGG

Sources Of supply Through references

Identification of deficiency of Manpower

Matching the supply with the recruitment

Recruiting the personnel at a particular post as per the qualification

Giving them targets and furnishing timely reporting to measure the standards against actual achievement

Appointment Letter

Experienced Recruiter

Fresh Recruiters

6 months provision

1 years training

COMM.ASST

SR.ASST

OFFICER

DY.MAN

SR.ENGG

EXEC

MANAGER

SR. MANAGER

4

17

16

3

15

14

13

12

2

11

10

9

8

7

6

5

1

4

3

2

1

Flow process chart number

Depat: sheet-of sheet summery Charted by:

Product: date: operation O

Opn: approved by: transportation(

Part no date: inspection (

Qty delay D

Present- storage (
Proposal

1

2

3

4

5

1

C N C

C N C

MILLING
M/C

DRILING
M/C

GAS NITRAIDING

SCREW LINE

MINTENANCE DEPARTMENT

BAR BARREL LINE

TESTING
LAB

LATH M/C

PRESS M/C

M/C LUBRICANT

BORING
M/C

MILLING M/C

DRILING M/C

STORE

GATE

INSPECTION ROOM

Space

DIE ASSEMBLY

TAPE LINE

FILMLINE

ELECTICAL DEPARTMENT

PIPE LINE

DRILING
M/C

C N C

C N C

MILLING
M/C

STORE

SCREW LINE

BAR BARREL LINE

LATH M/C

PRESS M/C

M/C LUBRICANT

MILLING M/C

DRILING M/C

TESTING
LAB

INSPECTION ROOM

MAINTENACE ROOM

GAS NITRAIDING

CONSUMABAL
STORES

SPARE
PARTS

RECEIVING STORES

REJECTED
MATERIAL

GATE

QUALITY
ASSURANCE

GATE

MAIN
UNLODING
GATE

Security office (record)

Inward in gate

Verification

Quality check

Resend

To vender

UN loading

Rejected

Giving red label

Storing

At store

Accept

Giving green label

Issue material

To assembly dept

Security office (Record)

Out ward material

SECURITY ENTRY

INWARD MATERIAL

QUALITY CHECK

UNLORDING STORE

ACCEPT
RAW MATERIAL

STOREING
RAWMATERIAL

ISSUED TO M/C SHOP

SCRAP

QUALITY CHECK

REJECT FINISH GOOD

STOREING FINISH GOOD

ISSUED TO ASSEMBLY

ACCEPT FINSH GOOD

OUTWARD REJECTED
MATERIAL

SECURTY ENTRY

REJECT
RAWMATERIAL

RESEND TO VENDER

SECURTY ENTRY

OUTWARD REJECTED
MATERIAL