A

PROJECT REPORT ON
INDUSTRIAL TRAINING

AT

NATIONAL PROTEIN & SOLVENT LTD

SUBMITTED BY: GUIDED BY:

Patel Snehal R. Miss Jayshri Datta
S.Y.BBA/Div-B
Roll No.-116
Exam No. -
SUBMITTED TO:

SMT. S.B.PATEL INSTITUTE OF BUSINESS

MANAGEMENT
VISNAGAR

HEMCHANDRACHARYA NORTH GUJARAT

UNIVERSITY,
PATAN.

ACADEMIC YEAR – 2009/10

 PREFACE

To study management means to get theoretical and practical

knowledge. Today the world has become more competitive so struggle is
more for human being. To get the job, theoretical as well as practical
knowledge is essential. Hence the study of management is very important.
Knowledge will come through experience. So to get experience management
arranges the training programme frequently.

As a part of B.B.A. curriculum and in order to gain practical knowledge

in the field of industrial aspects, we are required to do a practical training
work in an oil industry for the period of 21 days.

The basic objective behind the preparation of this project report is to

strengthen the fundamental knowledge about present oil industries in India
and its trend.

Obviously we owe an intellectual to all the people who supported us to

prepare and complete a mammoth like this.

I have done the project on industrial training of National Protein &

Solvent Ltd. I have collected information about marketing department,
finance department, personnel department, production department and other
organizational functions from the company itself and from Internet also. By
preparing this report, I have tried to analyze finance situation and production
capacity of different products of the company.

ACKNOWLEDGEMENT

Practical training is one of the most important requirements in B.B.A.

We received a very graceful encouragement from our professor Miss Jayshree
Datta.

I am thankful to owners of the company and Accounts Manager Mr.

Ashvin Kansara for spending his valuable time with us and providing
necessary information required. I am also thankful to Shri Pravinbhai J. Modi
for granting us permission. I am also thankful to staff for their cooperative
behavior.

I am also thankful to our college authorities for conducting this

training. I would sincerely thank our principal Mr. Madhubhai Patel for
imparting us an opportunity to put us in the stream of practical management.

Snehal
 CONTENT

SR. PARTICULARS PAGE

NO. NO.
1. GENERAL INFORMATION
1.1 INDUSTRIAL PROFILE
1.2 COMPANY PROFILE
1.2.1 NAME OF THE COMPANY
1.2.2 ADDRESS OF FACTORY
1.2.3 REGISTERED OFFICE
1.2.4 CORPORATE OFFICE
1.2.5 AUDITORS
1.2.6 BANKERS
1.2.7 BOARD OF DIRECTORS
1.3 SIZE OF UNIT & FORM OF ORGANIZATION
1.4 ORGANIZATION CHART
1.5 CONTRIBUTION OF THE UNIT
1.6 MISSION OF THE COMPANY
2 PRODUCTION DEPARTMENT
2.1 INTRODUCTION
2.2 PRODUCTION ORGANIZATION CHART
2.3 PRODUCT PLANNING
2.4 FRONTLINE PRODUCTS
2.5 MANUFACTURING PROCESS
2.6 RAW OIL PROCESS
2.7 INSTALLED CAPACITY
3 PERSONNEL DEPARTMENT
3.1 INTRODUCTION
3.2 RECRUITMENT
3.3 SELECTION
3.4 WELFARE FACILITIES
 3.5 TIME KEEPING SYSTEM
3.6 TRAINING AND DEVELOPMENT
3.7 PRAMOTION & TRANSFER
3.8 PERFORMANCE APPRAISAL SYSTEM
3.9 WAGE & SALARY
3.10 PROVIDENT FUND SCHEME
3.11 TRADE UNIONS
3.12 PERSONAL RECORDS
4 MARKETING DEPARTMENT
4.1 INTRODUCTION
4.2 ORGANIZATION STRUCTURE
4.3 PRICING POLICY
4.4 SALES PROMOTION
4.5 MARKETING SEGMENTATION
4.6 DISTRIBUTION CHANNEL
4.7 ADVERTISING
4.8 MARKET RESEARCH
4.9 COMPETITORS
5 FINANCE DEPARTMENT
5.1 INTRODUCTION
5.2 FINANCE ORGANIZATION CHART
ORGANIZATION OF FINANCE
5.3
DEPARTMENT
5.4 PROJECT COST
5.5 CAPITAL STRUCTURE
5.6 GROSS PROFIT
5.7 NET PROFIT
5.8 UNSECURED LOAN
5.9 SALES
5.10 RATIO ANALYSIS
6 COLLECTIVE BARGAINING
7 SWORT ANAYLSIS
8 FINDINGS
9 CONCLUSION
10 BIBLIOGRAPHY
 GENERAL
INFORMATION
INDUSTRIAL PROFILE

What is Edible Oil?

Edible oil or cooking oil is purified fat of plant origin, which is usually
liquid at room temperature (Saturated oils such as coconut and palm are more
solid at room temperature than other oils).

Some of the many different kinds of edible vegetable oils include: olive
oil, palm oil, soybean oil, canola oil, pumpkin seed oil, corn oil, sunflower oil,
safflower oil, peanut oil, grape seed oil, sesame oil, argan oil and rice bran oil.
Many other kinds of vegetable oils are also used for cooking.

The generic term "vegetable oil" when used to label a cooking oil
product refers to a blend of a variety of oils often based on palm, corn,
soybean or sunflower oils.

Edible Oil Industry in India

Climatic conditions in India favor growing a variety of oilseeds. On the

demand side, a growing population and vastly varied dietary habits have
ensured a thriving market for edible oil in the country. In fact, there is a
substantial demand overhang, which is expected to continue for some years.
At present, this is offset by imports that cater to almost half of the total
domestic consumption. With cheap imports threatening to cripple the
domestic industry, the government is walking a tightrope between filling the
demand supply gap and the political need to keep the domestic industry in
good health. Unorganized, medium and small players dominate the industry.
Hence, quality remains a concern. There is need for better regulatory control
to protect consumers.
An average Indian's yearly edible oil requirement has gone up from 7.0 kg in
1996-97 to 11.8 kg in 2000-01. Despite the variety of oilseeds grown in India,
the country imports a substantial quantity of edible oil, which also works out
cheaper. Allied factors contributing to imports are the higher cost of
cultivation in India and uneconomic oil extraction systems.

Oilseeds in India account for around 5.0 percent of the Gross National
Product (GNP) and 14.0 percent of the country's area under cultivation of
crops. Castor, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower,
Sesame and Sunflower are some of the major oilseeds grown. India produces
10 percent of the world's oilseeds, but has a low productivity of around 850-
900 kg per hectare (compared to a world average of around 1,100-1,350 kg
per hectare).

The amount of oil extracted from the seed varies with the type and quality of
seed. In many cases, the oil recovery rate is upwards of 30.0 percent with
Sesame accounting for a high 45.0 percent.

Domestic consumption of edible oils has been growing at 4.0-5.0 percent a

year. The consumption in 2001-02 was around 25.75 million tons. Non-
packaged oils account for nearly 50.0 percent of consumption in both urban
apnd rural markets. In the remaining 50.0 percent contributed by packaged
oils, branded oils constitute a small portion of approximately 10.0-15.0
percent.
COMPANY PROFILE

• Name of the Company:

National Protein & Solvent Ltd.

• Address of Factory:

Plot No. 447,448,450,452 to 455,

Dediyasan GIDC, Phase-II
Modhera Road, Mehsana-384002

• Registered Office:

Plot No. 452 to 455,

Dediyasan GIDC, Phase-II
Modhera Road, Mehsana-384002

• Corporate Office :

101,102, Neelkamal Complex,

B\h. Havmore Restaurant,
Navrangpura,
Ahmedabad – 300009.

• Auditors:

A.L. Thakkar & Co.

Chartered Accountants, Ahmedabad.

• Bankers:

1) State Bank of Indore Ashram Road, Ahmedabad.

2) The Ranuj Nagrik Sahakari Bank Ltd.Malgodown, Mehsana.

3) HDFC Bank Ltd.Mehsana.

 • Board Of Directors:

Shri Pravinbhai J. Modi. (Chairman & Executive Director)

Shri Bhagwanbhai B. Patel
Shri Rameshbhai P. Modi
Shri Pankajbhai N. Patel
Shri Arvindkumar A. Modi
Shri Ravjibhai B. Patel
Shri Unmesh R. Bhavsar
Shri Amit V. Bhavsar
Shri Nitin N. Bhavsar
(Executive Director)
(Executive Director)
(Executive Director)
(Executive Director)
(Executive Director)
(Executive Director)
(Executive Director)
(Executive Director)

SIZE OF UNIT & FORM OF ORGANIZATION

Size of the organization refers to scale operation & capital employed in
the size of the organization. National Protein & Solvent Ltd. is a large scale
unit. Its total investment is more than 65 crores. The total land occupied is 20
hectors.
Form of organization differs in terms of capital contribution,
management & objectives. Generally there are three form of business
organization. They are as follow:
1. Public Organization
2. Private Organization
3. Co-operative organization
National Protein & Solvent Ltd. is the co-operative organization. It
can be defined as under:
“A Co-operative organization is an association of persons usually of
limited means, who have voluntarily join together to achieve a common
economic and through the formation of a democratically controlled
organization, making equitable contribution to the capital required &
accepting a fair share of risk & benefits of the under taking.”
ORGANIZATION CHART

DIRECTOR

JOINT
MANAGING
DIRECTOR
MANAGING
DIRECTOR

ACCOUNT HR
MANAGER MANAGER

OTHER EMPLOYEES
STAFF
CONTRIBUTION OF THE UNIT

Contribution of an Industry is very important in industrialization. The

National Protein & Solvent is progressive company. The unit is
manufacturing good quality products and it has also created good market for
its product. The Selling of the product of National Protein & Solvent Ltd. is
increasing day by day, because the unit is maintaining better quality of
product. The production is also in large quantity.

National Protein & Solvent Ltd. has been established in 2002, and
then also it has a remarkable turnover. This unit contributes greatly to the
Industry. In future also the contribution of this unit will be more effective in
industry.

MISSION OF THE COMPANY

 “To be the best company in technology, quality, service for providing

better food products to the customers.

 To produce quality product and also make selling growth very high.”

 Make good name in the market.

PRODUCTION
DEPARTMENT
INTRODUCTION

Production is the base of organization of out put if any product. There

are many products in National Protein & Solvent Ltd production department
is quite, intelligent and hard work.

Production is the sum of total four factor land, labour, capital and
entrepreneur by the help of these entire factors the organization can increase
its output and business.

Production means utility and energy to satisfy the want of people. It

covers all the activity of resources such as labour energy raw material
equipment and machines etc.
PRODUCTION ORGANIZATION CHART

Production Manager

Supervisor R & D In charge

Labour Lab Assistant

PRODUCT PLANNING

The National Protein & Solvent Ltd is producing edible oil.For

production of its product the unit is doing various types of planning.The unit
sales edible oil independently. It is responsible for the sale of oil.

 Product Range:
The company has kept different names for different products and they
are as under:

1. Shreeji Soyabean oil

2. Oskar palm oil
3. Lijjat Vanaspati ghee

These are the products of National Protein & Solvent Ltd.These

products are refined and sold to the dealers, wholesalers or direct to
costumers. Hence the company has various types of product range to sell.

 Product Category:

The product has different categories in weight. There are tins of metal of
various sizes. The soyabean oil, palm oil is packed in 15Kg tin, 5Kg tin. The
minimum size of tin is 600gm, 1kg tin.
FRONTLINE PRODUCTS
• Soyabean oil
• Cottonseed oil
• Palmolein oil
• Sunflower oil
• Mustard oil
• Groundnut oil
• Vanaspati oil
MANUFACTURING PROCESS

Seed Processing and Solvent Extraction Plant

Seeds are cleaned to remove impurities like Stones, Broken Seeds,
Husks etc., cleaned seed are charged into hoppers through chain conveyor.
After opening of dumpers, seeds start to pour in Kettle of the machine, and
the steam will be directly passed through seeds. Centrally revolving clamped
shaft will mix the seed and steam to make seed soft and will push it to screw
press chamber of the machine. Cakes are cleaned to remove impurities like
husk, stones particles etc, through pre cleaner and destoner which will be
further fed to the Cracker Breaker to make small pieces. This cake can be fed
to the solvent extractor. In the solvent extractor cakes will be sprayed through
food grade Hexane and so on will extract the oil content (7 to 9 %) out of the
flakes. This mixer will be further fed to De solventiser Toaster to evaporate
hexane particles and oil particles. Output of the toaster section at bottom is De
Oil Cake and will be separately collected, conveyed and packed in Gunny
Bag or PP bag. Evaporated particles will be fed to Distillation and
recuperation section to depart oil and hexane. This recovered hexane will be
reused in the process. So produced raw grade oil will be required to go
through refining to produce refined Solvent extracted mustard oil.

Refining Process of Edible Oil

Refining means to remove impurities from the oil, which are not desirable.
Oil having two types of impurities

1. Oil soluble as coloring matter, odiferous compound, free fatty acid,

gummy materials etc.
2. Other types of impurities are oil insoluble as sand, seed fragment, dust,

straw etc.
NPSL is using two methods for refining of raw oil.

1. Chemical Process
2. Physical Process

Vegetable oil refining consist of all necessary operations to which oil is

submitted in order to obtain a final product of which the color, taste, smell
and stability make it apt for human consumption. Most of the vegetable oils
contain impurities, such as fatty acids, phosphatides, pigments, metals etc.,
which have to be removed so as to obtain a product.

The different steps of the process depend upon the type and quality of the oil
to be treated.
Chemical Process

In chemical process impurities of oil is removed by the reaction of some

chemicals. The chemical refining consists in :

• Acid conditioning Neutralization

• Separation of gums and soap in centrifuge
• Washing with water with separation of soap with centrifuge
• Bleaching
• Deodorizing

Physical Process
In physical process impurities are removed by physical method means, there
is no chemical reaction taking place.

• Bleaching
• Deodorizing
Acid conditioning cum neutralizing process

De-gumming:
De-gumming is the process of removal of phosphatides and other limy or
mucilaginous material. The process consists of hydrating the gums by
subsequent removal by centrifugal separation. The oil obtained is then sent for
neutralization.

Bleaching:
The oil, after initial purification, is bleached by contact with activated earth
and charcoal to improve the color of the oil to acceptable levels. The process
also removes any soap traces left in the oil after water washing any other
metallic compounds present in the oil. The process consist of mixing the oil
with adequate quantities of bleaching earth, heating it for a specified time
temperature cycle followed by removal of bleaching earth from the oil by a
filtration process.

Deodorizing:
The bleached oil still needs deodorizing to remove impurities, which impart
objectionable odours or flavors to the oil. The oil is subjected to high
temperature and high vacuum conditions. The oil is cooled, mixed with
antioxidants and filtered. The final product is sold in the market as refined
vegetable oil.
RAW OIL PROCESS
By crude oil is pumped
↓
Heated with continuous exchange heater
↓
Addition water
↓
Pass through precipitation tank
↓
Swelling of gums
↓
Oil and hydrated gums are separated
↓
Addition of phosphoric acid
↓
Conditioning process
↓
Neutralization of mixture
↓
Addition of caustic lye
↓
Separation of impurities
↓
Washing of residual soap
↓
Oil is transferred to vacuum dry
↓
Spread through nozzle
↓
Recovering refined oil
↓
Reduction of color
↓
Passes through bleacher

Explanation: -
Very first the crude oil is pumped at high temperature. It is heated with
continuous exchange of heater. In this pumped oil some portion of water is
added and it is allowed to pass through the precipitation tank. By this process
the gums are purified. Here two parts are separated i.e. oil and hydrated gums.
In this mixture, there is an addition of a sophisticated acid for the conditioning
process. Then it is sent to another tank for the neutralization of mixture of oil
and hydrated gums. In this mixture there is an addition of caustic lye. By the
process of filter the impurities are separated from the mixture. After that the
oil is transferred to vacuum dry to dry it up. The oil is spread through the
nozzle of tank. Here the refined oil is recovered and the reduction of colour is
performed. For the final step the oil is passed to the bleacher.
 INSTALLED CAPACITY
Refining edible Oils 800TDP
Vanaspati Ghee 200TDP
The details of the proposed installed capacity of the unit are as follow:
Particulars %age of input MT pd. MT pd. MT pd.
De-gummedSoya Oil(DSO) 400 10000 120000
Crude Palm Oil(CPO) 400 10000 120000
Yield & bye-products
De-gummedSoya Oil(DSO) 97.5% 390 9750 117000
Refined Palm Oil 93.7% 374.8 9370 112440
Transfer of refined oil to Vanaspati Section
RBD Soya Oil (10%) 975 11700
RBD palm (40%) 3750 45000
Sub Total 4725 56700
Add indigenous oils 100% 6 150 1800
Total of Vanaspati Section 4875 5850
Bye products
De-gummed Soya Oil(DSO)
Acid Oil 1.6% 6.4 160 1920
Deodistillate 0.2% 0.8 20 240
Palm fatty acid distillate 5.8% 23.2 580 6960
Final product mix
De-gummedSoya Oil(DSO) 114000 8775 105300
Refined Palm Oil 67500 5620 67440
HydrogenatedVanaspati Ghee 58500 4875 58500
Sub Total 240000 19270 231240
Acid Oil 2160 160 1920
Fatty Acid 6960 580 6960
Deodistillate Soya N.A. 20 240
Sub Total 9120 760 9120
 HUMAN
RESOURCES
DEPARTMENT
INTRODUCTION

Employees hold a key place in business-No business enterprises can

exists and function without employees. The success of business enterprise
depends, to a large extent of the quality of its personnel. Personnel
management is that part of the process of management which is specifically
concerned with the people employed in and organization.

The basic aim of personnel management is to create a satisfied

workforce its other objectives must not be over looked because they are
equally important.

The growth of the business depends mainly on the willingness and

ability of its employees.
RECRUITMENT

“Recruitment is a process of searching for prospective employees

and stimulate and encouraging them to apply for jobs in an organization.”
form the social point of view recruitment is significant because it help in
discoursing talented & component workers, mobilizing labours & in better
utilization of human resources.
In National Protein & Solvent Ltd. recruitment of employees is
done by giving advertise for employment in local newspaper of mehsana
district and for recruitment of managers & other staff member it gives
advertise in Gujarat samachar, sandesh. There are 400 labours and 60
members in staff including clerks & manager in the company.
In this unit recruitment is done by various ways, like by
interview, by contract, or company contacts the educational institution if the
company requires workers for technical work then it contacts ITI institute. If
it requires managers then it contacts management institutes only males are
recruited in this company. There is no female in the whole unit.
 Sources of Recruitment
1. Internal Sources
2. External Sources
1. Internal sources
Internal sources are carried inside the organization. These sources are
very crucial & beneficial to the organization such as,
• Present Employees
• Former Employees
• Previous applicant
• Friends & Relatives of present employees
 National Protein & Solvent uses all this sources of recruitment.
Present employees are given promotions it increases the morale & employees
get motivation.
2. External Sources
External sources are outside the organization sometime the
management of the company arranges recruitment form the external sources.
National Protein & Solvent recruits the employees from the external
sources such as:

Advertisement in newspaper:
Advertisement is the most effective means for recruitment
National Protein & Solvent gives advertisement for employment in regional
& local newspaper as well as other state circulated newspaper.

Database:
The whole database which is maintained in unit of those applicants who
have applied previously is checked and the applicants are given first
opportunities for job.
SELECTION

Selection is the step of recruitment process. Selection means selecting

that person who possesses the necessary skills, ability, to work efficiently.
The objective of selection process is to determine whether an applicant meets
the qualification for a specific job and to choose the applicants who are most
likely to perform well in that job selection is deliberate effort of the
organization to a select a fixed number of persons from large number of
applicants.

Selection process involves number of steps through it is not necessary

to followed each step for every job. Organization may follow some steps and
may exclude some steps form selection process. There may be different stages
of selection process for different kind of job.

In National Protein & Solvent for selecting the employees there is one
committee. This selection committee selects the person by taking at interview
and oral and written questions are asked to the persons who came of selection.
And then if the person is proper for a particular job. He is selected by the
committee or HR manager.

In National Protein & Solvent Ltd. there is no special induction

process but it follows simple induction program such as introduction of new
employees is done with other employees and he is guided for his job &
necessary information is given so that he can adjust himself easily in the
organization.
WELFARE SERVICES
The unit provides some kind of welfare activities to its employees.
 Canteen Facility:
In the company there the canteen facility is available to the employees
at a reasonable rate canteen facility provide a dish of food at RS. 15/- which is
affordable by employees.
 Quarters Facility:
The company provides quarters to manager, clerks and employer for
living.
 Transportation Facility:
The company provides transportation facility for workers & others staff
members. There is a bus which is used ad transportation facility. The bus
facility is given for those who are coming from near by village or from
mehsana.
 Bonus:
National Protein & Solvent Ltd. gives bonus to its workers at the time
of Diwali. Bonus is given at the rate of 20% of the annual income of workers.
For working overtime the workers is given extra wages.
TIME KEEPING SYSTEM
In National Protein & Solvent Ltd. has the time-keeping system. Each
employee when enters in the company the time of entering is recorded by the
watchmen & when the employees come out from the company the time is
recorded again by watchman so that the employee’s working period of time
can be known.
There are 3 shifts:
First shift - 8:00am to 4:00pm
Second shift - 4:00pm to 12:00pm
Third shift - 12:00pm to 8:00am
The recess time is of one hour during the shifts.
For officers office is 10:00am to 6:00pm and presence is marked on registered
cards. The plant is working continuously for 24 hours. The company
concentrates more on punctuality of time. So if the employee is late than his
time of coming then his wages is being cut down.
TRAINING AND DEVELOPMENT
Training is given for such reasons:
 To improve the efficiency of the employees.
 To increase productivity by imparting ledge about the correct method of
work.
 To increase the skill of the employees & there by help them in getting
promotion.
 To inculcate in the minds of the employees favorable attitudes to work.
PROMOTION & TRANSFER POLICY

 PROMOTION:
Promotion means advancement in job & Increase in authority,
responsibility & pay scale of employees.
Transfer refers to change of job with in organization to same position in
another department with same authority & responsibility. Most organization
promote their employees either on & basis of their seniority or offer taking in
to account their competency & qualification. The usual policy is to take merit
in to consideration. Some time length of services, education-training courses
completed previous work history etc are the factors, which are given more
weight while deciding for promotion.
In National Protein & Solvent Plant, while giving promotion to the
employee they do not consider experience of educational qualifications but
the behavior of employee, honestly, ability & merit are the main factor on
basis of which promotion given.
Promotion to the employees is given by the HR manager of the unit &
to the managers it is given by the managing directors.

 TRANSFER
Transfer policy in National Protein & Solvent is in such way that the
employees get transfer from one department to another because of their work
experience, skills, specialty & efficiency. The employees are transferred by
HR manager of the unit.
PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is systematic, periodic & so far as humanly

possible, an impartial rating of an employee’s excellence in matters pertaining
to his present job & to this potentialities for company, of a man’s services on
his job. The main purpose of the performance appraisal is to provide
systemization judgement to back up salary increases, transfer, demotion or
termination. They are used as a base for coaching & counseling the individual
by the superior there are so many method used for performance appraisal like
ranking system. Rating sales forced choice etc.

National Protein & Solvent Ltd. is not using any specific method for
performance appraisal. It takes into account performance appraisal of person
only when promotion is to be given. And if the worker is efficient and
possesses the necessary skills and working capacity then the HR manager of
the unit gives promotion to him by increasing post or salary.
WAGE & SALARY
Wages means the amount paid to the labours for the work and salary
means the remuneration paid to the clerks or managers on monthly or annual
basis.
The wages & salary depends on experience knowledge and educational
qualification of the person.
National Protein & Solvent pays wages to the employees according to
their working period of time or per day RS. 80 to 100. Their working period is
8- hours.
The staff members & managers are given above RS. 5000/- per month.
The salary of manager is decided by the management.
PROVIDENT FUND SCHEME
Every co-operative organization mostly provides provident fund
scheme to the employees. Various schemes are provided by the organization
to the workers for satisfying them.
National Protein & Solvent Ltd. also provides the various schemes to
attract more & more present from which the unit provides the provident fund
scheme, at a rate of 12% provident fund is very helpful for the employees. So
every co-operative organization tries to provide more & more schemes for the
employees. Apart from this loan facilities are provided at a reasonable rate of
interest are given at time of any critical requirement.

Provident fund: - 10% from employee’s salary

2% Company’s Contribution.
TRADE UNIONS
Trade union is nothing but a union of labours. If the employees
demands something & the organization is not ready, in that circumstances,
trade union become very useful for the employees. It means trade union is
nothing but a union of the employees to satisfy their demands & conditions
speedily.
In National Protein & Solvent there is trade union of labour. Not a
single union is there. If any body try to make the union than the Gujarat edible
Oil can drive away them from the plant. So for this reason no one can try to
make union of the labour & also no one can join in to the union. So this is the
most disadvantage of this plant as point of view of labours. and advantageous
for the company.
PERSONNEL RECORDS
A records is an account or statement describing in detail an event
happening, a situation or evaluating an enterprise or a product that is proposed
to be manufactured. Many organization keep records of their personnel with
different information about each employee with variety of details, about his
name, skills, qualifications, abilities, experience, age, address, family
background etc.
In National Protein & Solvent Ltd. detailed records about their
personnel are not kept but general information regarding each employee is
kept which may be useful sometime. In National Protein & Solvent they
keep personnel records with following information’s.
Name with surname, Father’s name, Date &Place of Birth, Age, Sex,
Nationality marital status, cast & Religions, present & permanent Address,
Date of confirmation & appointment department in which he is posted.
Information about family & Educational Qualifications.
MARKETING
DEPARTMENT
 INTRODUCTION

A unit can be successful if it adopts a better marketing system

marketing is system which includes business activities like planning,
distributing & selling satisfied products to the consumers. If marketing done
in better way then more profit can be earned from the product.
National Protein & Solvent Ltd. is also doing marketing activities
such as product planning, distributing products to the wholesalers, retailers
and deciding pricing policies.
Marketing management is a process of a system which helps to provide
good quality of the products to the customers, according to demand of the
customers.
ORGANISATION STRUCTURE
PRICING POLICY

Price is the main feature of the product because the price of any product
depends on its quality. So, the Gujarat Edible Oil decides its prices according
to the quality and also affordable by the costumers.

This unit is operating on a co-operative basis with the aim of providing

maximum social welfare services to the people and also providing a better
quality of oil.

Gujarat Edible Oil does not give more commission or discount to

wholesaler and intermediary. Because it is not selling its product at a high
price or not earning more profit on a product. It earns a few percentages of
profit.

It sells the product by earning minimum profit. It prices which can

affordable for customers. The prices of soyabean oil, palm oil are being
changed daily.

But average price for 15Kg tin for soyabean oil palm oil is RS.600/-.
Some time it increases or decreases.
SALES PROMOTION

Sales promotion includes all those short-term marketing activities,

other than personal selling, advertising, publicity which stimulated consumer
purchasing effectiveness. Its main objective is to increase the buying response
by ultimate users.

There are two kinds of sales promotion consumer sales promotion &
Dealer sales promotion. Sales promotion such as coupons, cash refund offers
if product is defective, prizes, free trials, warranties etc.

National Protein & Solvent Ltd. is applying the tools for sales
promotion such as giving prizes, discount on purchase of more goods,
coupons are given with the product in which there are chances to win the
prizes.
Sales Promotion Diagram:

Manufacturer

Advertising Dealer
Agency

Retailer

Customers
MARKETING SEGMENTATION

National Protein & Solvent Ltd. is producing edible oil and market
segmentation is not possible on the basis of product.

But there are traders some are big and some are small who are
purchasing oil from the company regularly. It is purchased daily by some
traders and there are stockiest also. When the price is low they purchase oil
and keep stock of it and when the price increases they sell to costumers.
These types of traders are not buying oil regularly.
DISTRIBUTION CHANNEL

DISTRIBUTION NETWORK

Company

Dealers
Agent

Retailers

Consumers

A channel of distribution is a group of individual and organization to

which directs the flow of products form produces to customers. The main
function of this element is to find out appropriate ways through which goods
are made available to the costumers.

National Protein & Solvent Ltd. has adopted a simple distribution

channel it distributes the produced good to the wholesaler and wholesaler
distributes to retailers & retailer to costumers. The goods are distributed
directly to the retailers also. And to the stockiest, stockiest sells those goods
to the customers when the prices are increased then their purchasing price. So
it has a simple distribution channel.

The unit also distributes the products to other states like Haryana, Uttar
Pradesh, Punjab, and it distributed to the cities like Ahmedabad, Surat,
Mehsana and Vadodara in Gujarat.
ADVERTISING

Advertising is activity of presenting the ideas, goods, services of a

company that company has to sponsor it does advertise.

The main objective of advertisement is bring awareness and

knowledge of new product or changes in the quality of existing product,
among people. There are various kinds of advertising such as information, it
gives knowledge about new product reminder advertise stimulate repeat
purchase of product & services. Advertising is mainly at commercial
transaction. Advertising influences the buying behavior of consumer.

National Protein & Solvent Ltd. gives advertise for making

people aware of its new product or changes in the quality of existing product.
It gives advertise in newspapers such as Gujarat samachar. It gives advertise
of products such as refined soyabean, palm oil.
MARKET RESEARCH

Marketing research is considered with investing, analysis &

measurement of market demand. It is only one branch of marketing in
formation system. It is a study of actual & potential buyers. It includes
attitudes of dealers at market place, analysis of sales data, analysis of market
share of a firm etc

Marketing Research includes:

 Consumer research
 Sales research
 Advertising research
 Market research
 Pricing research
 Product research
 Distribution channel research

National Protein & Solvent Ltd. does marketing research by survey

of wholesaler, retailers, and costumers. It knows about the problems of
costumers for not buying the product by asking the customers or retailers and
tries to solve the problem faced by the customers.
COMPETITORS

• Gokul Refoils & Solvent Ltd

• Vimal

• Tirupati
 FINANCE
DEPARTMENT
INTRODUCTION

Finance is the lifeblood for every business for any organization finance
plays an important role for its success without finance no one can start his or
her business. So finance is the base for starting any industry. Financial
management is concern with the planning & controlling of the firms financial
sources. We need financial for the production of good and services as well as
their distribution the efficiency of product & market operations is directly
influences by the enterprise is performed by the financial personnel. Finance
function assured an important role in business system & it should be given
equal important as with production & marketing function.

It has been said that business takes money to make money. This is not
true the statement needs correction. If you have money, and you manage it
properly you will make more money. This management of finance is
important for all. Finance is that part of managerial activity which is
concerned with planning and controlling of the firm’s financial resources.

In National Protein & Solvent plant there is not a separate finance

department but there is an account department in which financial activities are
being done in the finance department.

Here finance department working under the asst. manager (F&A)

namely Mr. Ashwin kansara. Due to have efficient skills & abilities Gujarat
Edible oil did not face any financial problems
ORGANIZATION CHART

Finance Manager

Assistant of Finance Manager

Accountant

Clerk

Computer Operator
ORGANIZATION OF FINANCE DEPARTMENT

Finance management begins on important function of business

organization of finance department has to be properly formed. In financial
management three aspects should be given due importance. Viz,
capitalization, wise allocation of capital and rising of fund activities.

Organization of finance department means the division and the

classification of various functions, which are to be performed by the finance
department. So in this regard the major decisions to be taken by the finance
department are:
1. Investment Decision
2. Financing Decision
3. Dividend Decision
4. Liquidity Decision

In National Protein & Solvent Ltd. finance department is done

according to size & nature of the business. All Financial decisions are taken in
this department and financial functions are done effectively.
Construction Section Area Amount
(in lacs)
Productive Section 6280 Sq.mtr. 343.90
@5500per Sq.mtr.
Manufacturing Section 1920 Sq.mtr. 88.30
@4600per Sq.mtr.
Packing & Utility 4428 Sq.mtr 159.40
@3600.

Cold Room 2052 Sq.mtr. 94.40

@4600
Cost of developing of pack, loading & 30000 Sq.mtr. 90.00
Unloading
Cost of Boundry 50.00
Plant, foundation, Chimeny boiler 577.10
house etc.
Total 1403.10
PROJECT COST
The total cost of the project is Rs.69.04 crores with details as under:
RS. Lacs

Land cost and registration 325

Construction cost 1403
Plant and machinery 2795
Testing equipments 25
Contingencies 118
Misc. assets (power plant/storage tanks) 832
Prelim and prop exp. 207
Margin for working capital 1199

Total 6904
CAPITAL STRUCTURE
Capitalization means the total value of all the securities i.e. share and
debentures issued by a company and reserves, surplus and value of all other long-
term obligation. The firm includes:

 The value of ordinary and preference shares.

 The value of all surplus earned and capital.
 The value of bonds & Securities still not redeemed.
 The value of long-term loan.

Capitalization is used in its quantitative aspect and refers to the amount at

which a company’s business can be valued.

Name Rupees Rupees Rupees

2006-07 2007-08 2008-09

Partners Capital 662775.15 3528253.43 3722004.97

Secured loans 3088649.47 3017065.47 3028991.47
Unsecured loans 6780636.41 6307627.41 7386347.00
Sundry creditors 449967.70 1565291.76 1974382.00
GROSS PROFIT

Year Profit (Rs.)

2006-07 2882461.34

2007-08 4135440.36

2008-09 4536761.11

GROSS PROFIT

5000000
4500000
4000000
3500000
3000000
2500000
PROFIT
2000000
1500000
1000000
500000
0
2006-07 2007-08 2008-09
NET PROFIT

Year Profit (Rs.)

2006-07 325488.50

2007-08 337388.87

2008-09 1076905.54

NET PROFIT

1200000

1000000

800000

600000
PROFIT
400000

200000

0
2006-07 2007-08 2008-09
UNSECURED LOAN

Year Amount (Rs.)

2006-07 6307627.41

2007-08 7386347.00

2008-09 12175347.00

UNSECURED LOAN
14000000
12000000
10000000
8000000
6000000 AMOUNT

4000000
2000000
0
2006-07 2007-08 2008-09
SALES OF LAST THREE YEARS

Year Sales (Rs.)

2006-2007 13690701.39
2007-2008 22613320.11
2008-2009 34964627.97
5000000
4500000
4000000
3500000
3000000
2500000
sales
2000000
1500000
1000000
500000
0
2006-07 2007-08 2008-09
RATIO ANALYSIS
Ratio analysis is one of the techniques of financial analysis where ratios
are used as a yardstick for evaluating the financial condition and performance
of a firm.
Ratios may be classified according to functions or tests as solvency,
liquidity, or profitability ratios and according to nature as leverage ratios and
activity ratios.

 Liquidity ratios:
A liquidity ratio is a ratio, which points out whether there are sufficient
liquid resources to meet the short-term liabilities. They are meant to
measure the company’s financial strength to meet current obligations.

 Current Ratio:
Current Assets
Current Ratio =
Current Liability

For year: 2007-2008

9,07,81,827
= ––––––––––––––
2, 00, 51,045

= 4.53

For Year : 2006-2007

10,80,93,170
=
3,20,73,442

= 3.3
 For Year : 2005-2006
6,05,61,079
=
1,32,52,513

= 4.57
This current ratio measure the firm’s ability meet it current
obligation. Generally 2:1 ratio is preferable here the current ratio is
high because of high current that represent the first high ability school
and to meet current moment there obligation. In year 2004-2005 and
2005-2006 and 2006-2007 are lot of the 4.57 and 3.3 and 4.53
respectively.

 Quick Ratio:
Current Assets - Investment
=
Current Liability

For year:2007-2008
1, 34,06,966
= ––––––––––
2,00,51,045

= 0.67

For year : 2006-2007

2,61,05,501
= –––––––––––––––
3,20,73,442

= 0.81
For year : 2005-2006

43,92,611
=
1,32,52,513

= 0.33
 Quick ratio represents the company ability to meet its immediate
obligation. Here the ratio is whole year the ratio excludes the inventory
and bank over staff. Here the ratio year 2004-2005 and 2005-2006 and
2006-2007 are 0.81 and 0.33 and 0.67 respectively.

 Net Working Capital:

Net working capital means the different between current assets &
current liabilities : excluding short term bank borrowing is net working
capital or are as firms liquidity.

Net working capital

=
Net Assets

NET WORKING CAPITAL: Current Assets – Current Liabilities

NET ASSETS: Fixed Assets + Current Assets – Current Liabilities

For year : 2007-2008

7, 07, 30,782
= –––––––––––––
5, 43, 08,126

= 1.30
For year : 2006-2007

7, 60, 19,728
=
13,3,27,854

= 0.58
For year : 2005-2006
4, 73, 08,566
=
10, 95, 02,581

= 0.43
 The ratio shows the proportion of the working capital in net
assets. If the ratio is high than the more proportion of working capital in
total assets. If the ratio is higher than the working capital remain idle
and the ratio is lower than the it is bed for the company. Here the ratio
for year 2004-2005 and 2005-2006 and 2006-2007 are 0.43 and 0.58
and 1.30 respectively.

 Solvency ratios:
These are long-term ratios, a pointer to the future and long-term
solvency of the company in which creditors, bankers and financial
institutions have great stake.

 Debts Equity Ratio :

Total debts
=
Net worth

TOTAL DEBTS = Secured Loan + Unsecured Loan + Sundry Debtors

NET WORTH = Share Capital + Reserve & Surplus

For year : 2007-2008

11, 48, 98,031
= ––––––––––––––
9, 95, 39,318

= 1.15
For year : 2006-2007
11, 09, 37,521
=
4, 39, 61,236

= 2.52
 For year : 2005-2006
7, 10, 21,402
=
4, 46, 21,875

= 1.59

The debt equity ratio describes lenders contribution for each

rupee of the owner’s contribution. Here the debts equity ratio for the
year 2004-2005 and 2005-2006 and 2006-2007 are 1.59 and 2.52 and
1.15 respectively.

 Debts Ratio:

The some type of debts may be used analysis the large term
solvency of a firm. The total debt will include the short term and long
term borrowing from financial justitution, debenture, differed payment
agreement for laying capital equipment bank borrowing public deposit
and other interest bearing loan.
Total debts
DEBTS RATIO =
Net assets

For Year: 2007-2008

11, 48, 98,031
= ––––––––––––––
7, 64, 36,744

= 1.50
For year: 2006-2007
11, 09, 37,521
=
5, 43, 08,126

= 2.04
 For year: 2005-2006
7, 10, 21,402
=
6, 21, 94,015
= 1.14

Here by looking this figures debts ratio. We that there is gradual

change in the level of propriety funds rashers than wanders contribution
on year 2004-2005 and 2005-2006 and 2006-2007 the debts ratio of
1.14 and 2.04 and 1.50 respectively.

 Activity ratios:
These ratios establish a relationship between sales and various
assets of the firm, how well the assets are being made use of and the
speed with which they are converted into sales.
Sales
NET ASSETS TURN RATIO =
Net assets

For year: 2007-2008

1,22,02,50,025
= –––––––––––––––––
7, 64, 36,744

= 15.96
For year: 2006-2007
74, 42, 86,332
=
5, 43, 08,126
= 13.70
For year: 2005-2006

50, 57, 69,997

=
6, 21, 94,015

= 8.13
 Net assets turn over measures the company ability of sales for a
given level of assets. A firm’s ability to produce a large volume of sales
for a given amount of net assets is the most important aspects of its
operating performance. Here this ratio is high in year 2004-2005 and
2005-2006 and 2006-2007 are 8.13 and 13.70 and 15.96 respectively.

 Total Assets Turn Over Ratio:

Total assets turn over ratio is computed on the total assets turn
over in addition to or instead of assets turn over. This ratio shoes the
firm’s ability in generation sales from all financial resources committed
total assets.
Sales
Total Assets Turn Over Ratio =
Total assets

Total assets = Current assets + Fixed assets

For year: 2007-2008

1,22,02,50,025
= ––––––––––––––––
22, 13, 96,880
= 5.51
For year: 2006-2007
74, 42, 86,332
=
21, 08, 84,629
= 3.52
For year: 2005-2006
50, 57, 69,997
=
9, 62, 50,068
= 5.25
 The ratio indicated the relationship between sales & total assets.
This ratio that how much sales in generated by company with given of
level of total assets. This ratio for year of 2004-2005 and 2005-2006
and 2006-2007 are 5.25 and 3.52 and 5.51 respectively.

 Fixed Assets Turn Over Ratio:

The fixed assets turn over is established relationship between

company’s fixed assets with its sales.
Sales
=
Fixed assets

For year: 2007-2008

1,22,02,50,025
= ––––––––––––––
7, 64, 36,744

= 15.96
For year: 2006-2007
74,42,86,332
=
5, 43, 08,126

= 13.70
For year: 2005-2006
50, 57, 69,997
=
6, 21, 94,015

= 8.13

The fixed assets turn over shows the sales of accompany for a given
level of fixed assets means. How much sales generated by a company
has a good performance. The ratio for year 2004-2005 and 2005-2006
and 2006-2007are 8.13 and 13.70 and 15.96 respectively.
 Current Assets Turn Over Ratio:
The current assets turn over means the relationship firm’s current
assets with the sales.
Sales
Current Assets Turn Over Ratio =
Current assets

For year: 2007-2008

1,22,02,50,025
= ––––––––––––––
9,07,81,827
= 13.44
For year : 2006-2007
74,42,86,332
=
10,80,93,170
= 6.89
For year : 2005-2006
50,57,69,997
=
6,05,61,079
= 8.35

The current assets turn over ratio of any firm shows the
relationship between the company sales with its Current assts. Here by
looking the figures of current assets turn over ratio we find that there is
a continuity of ratio, which may the positive impact of the company’s
sales or the maintaining current assets as what the company is required.
  Profitability ratios:
Ratios that are meant to measure the profit-earning capacity of
the firm in its business operation fall under this category.

 Gross Profit Margin Ratio:

The gross profit margin ratio of firm is the ratio of company

gross profit divided by sales.

Gross profit
= * 100
Sales

GROSS PROFIT = Sales – Cost of good sold

COST OF GOOD SOLD =Opening stock + Purchase + Purchase Exp.
- Closing stock

For year 2007-2008

1,23,03,06,189
= ––––––––––––––
1,22,02,50,025

= 100.82
For year: 2006-2007
71, 99, 74,734
= * 100
74, 42, 86,332

= 96.73
For year: 2005-2006
45, 19, 46,426
= * 100
50, 57, 69,997

= 89.36
 The gross profit margin ratio reflect the efficiency with which
management product each unit of products. If the ratio is high the
management is more efficiency the low gross profit margin ratio
indicates the lower cost of goods sold due to inability of management

 Net Profit Margin Ratio:

The net profit margin ratio is show the company’s profit position
we derived the formula of net profit margin ratio.

Profit after tax

= * 100
Sales

For year: 2007-2008

1, 88, 71,082
= –––––––––––––––––– * 100
1,22,02,50,025

=1.55
For year: 2006-2007
13, 39,361
= * 100
74, 42, 86,332
= 0.18
For year: 2005-2006
7, 74,831
= * 100
50, 57, 69,997

= 0.15
This ratio expresses the companies over all ability of
generation each rupees of profit is a sales. It expresses the company’s
ability of manufacturing, administrating and selling the product. The
ratio of 2004-2005 and 2005-2006 and 2006-2007 are 0.15 and 0.18
and 1.55 respectively.
COLLECTIVE
BARGAINING
Collective bargaining is essentially a process in which employee act as a
group in seeking to shape conditions and relationship in their employment.

We can say about collective bargaining a tree is known by its shape

fruits etc. like wise collective bargaining may best be known by its
characteristics. In National Protein & Solvent Ltd. has pointed out the
following functions.
1. Achieve an efficient functioning of the organization.
2. Lay down fair rates of wages and other norms of wearing
conditions.
3. To secure a prompt and fair rates of wages and other norms to
working conditions.
4. To establish uniform conditions of employment.
5. To increase the economic strength of employees and management.
6. To promote the stability and prosperity of the company.
7. To provide a method of the regulation of the conditions of
employment.
Industrial harmony is essential for economic progress. By the way of
collective bargaining an industry may grow rapidly and firmly. Collective
bargaining has much importance in the field to management.
SWOT ANALYSIS
STRENGTH
 The promoters have sufficient experience in the field of
trading of edible oil and ghee.
 Good infrastructure facilities.
 The product being dealt in by the company is of mass
consumption and essential items.
 Technical & commercial flexibility.
 Existing self-sufficient marketing apparatus.
 Benefit of 100% excise duty exemption for 5 year.
WEAKNESS
 Price of import oils is influence by international market price
and there is uncertainty to some extent.
 The benefit of excise exemption may be diluted /neutralized
as several units are installing fresh capacity in the same belt.
 The implementation of the project and commencement of
commercial projection may be delayed resulting in increase in pre-
operative expenses.
FINDINGS
1. Company should make some concrete effort towards
advertisement to create brand awareness of the company.
2. Company needs its publicity in big and it can be done by road
shows advertisement as well as by hording.
3. They believe in recruit of attitude and train for skills. They don’t
believe ideas are the monopoly of seniors only.
4. Benefit, association and growing in volumes and intensity of
relationship with clients.
5. Manufactures should raise public awareness about GEOL issued
through seminar etc.
6. Company should not be dependent on distributors & dealers for
sales. They should develop their own distribution network.
7. The company should offer consumers, retailer and distributor
schemes.
8. There should be more inclement of workers as well as field force
in development innovative packaging and promotional sales.
CONCLUSION
National Protein & Solvent Ltd. It is growing day by day. There is efficient
co-ordination between workers and management. The company has accepted
new technology and therefore time is saved due to have been one of the good
firms serving towards Country’s progress.

This company also forms the product; company can show that it is best
qualitative product at a medium price. So that it is beneficial to the consumer
and society both. So this company not only earning profit more but also they
protect to the customer.

Our best wishes are always with them for fast development of the
concern.
 BIBILIOGRAPHY

For preparation of this project report we have benefited from some

Websites, books and article. The lists are given below.

http://www.oilandgaseurasia.com/articles/p/102/article/970/
http://www.google.co.in
http://www.wikipedia.org
 FINANCE MANAGEMENT:-

• Prasanna Chandra
• I.M. Pandey
• Khan & Jain

 MARKETING MANAGEMENT:-

• Philip Kotler

 PERSONNAL MANAGEMENT:-

• C. B. Mamoria
• Pro. Varma & Agrawal
ANNUXURE
 NATIONAL PROTEIN&SOLVENT LTD.
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2008
PARTICULER SCHEDULE 31.03.2008 31.03.2007
INCOME
Sales I 122025002 744286332
Other income J 128443 2448552

1220378468 746734884
Stock increase (+) / Decrease(-) 9927721 -26760150
1230306189 719974734
EXPENDITURE
Raw material L 1097571237 642208628
Manufacturing expenses M 49851565 29829815
Salaries & wages N 8932259 4703841
Administrative expenses O 2898148 1356365
Interest & finance charges p 7988894 6603027
Selling expenses Q 25874508 26238089
Depreciation 6080998 6963681
Misc. Expenditure Written off 61000 6818

1199258608 717910265
Profit Before Taxation 31047581 2064469
Less: Provision for income tax
Current tax 12233000 1440000
Deferred tax -88377 -733519
Previous year 6800 12627
Fringe benefit tax 25076 0
Profit after taxation 18871082 1339361
Add: balance as per last year 20062235 18722874
38933317 20062235
Appropriations
General reserve 0 0
Proposed dividend 0 0
Balance carried to balance sheet 38933317 20062235
Total Appropriations 38933317 20062235

For, National protein & Solvent Limited

NATIONAL PROTEIN&SOLVENT LTD.
BALANCE SHEET AS ON 31ST MARCH 2008
PARTICULER SCHEDULE 31.03.2008 31.03.2007
Source of funds:
Share holder funds
Share capital A 42252500 23899000
Share application money 0 2000000
Reserve & surplus B 57286818 20062236
99539318 45961236
Loan fund
Secured loan C 65175052 74521088
Unsecured loan D 43599332 13224537
Total 108774384 87745625
208313702 133706861
Application of fund
Fixed assets
Gross block E 130615053 102791459
Less: depreciation -54178308 -48483332
Net block 76436744 54308126
Investment 0 0
Current assets, loan & advance F
a. inventories 77374861 81987669
b. sundry debtor 6123647 23191896
c. cash & bank balance 7283319 2913605
d. loan & advance 72903472 5549255
(i) 163685293 113642419
Less: current liabilities and provision G
a. current liabilities 20051045 32073442
b. provision (ii) 12233000 1440000
(i-ii) 32284045 335135442
Net current assets 131401249 80128977
Differed tax assets -641866 -730243
Misc. expenditure H
1117575 0
(to the extent not written off)
Total 208313702 133706861

For, National protein & Solvent Limited