Internship Report PDF

“A Report on
Organization Study at Balaji Polymers, Davangere”

Submitted By,
PREETHI SURESH
USN: 4BD18MBA46
Submitted to:
VISVESAVARAYA TECHNOLOGICAL UNIVERSITY

BELGAUM – 590 010
In partial fulfilment of the requirement for the award of the degree of the
MASTER OF BUSINESS ADMINISTRATION

Under guidance of
INTERNAL GUIDE: EXTERNAL GUIDE:

Prof. Muhammed Muntaqheem G Mr. Praveen
Asst. Professor Accountant
MBA PROGRAMME - BIET BALAJI POLYMERS
Davangere Davangere
Department Of MBA
Bapuji Institute of Engineering and Technology
Lake View Campus, S S Layout
Davangere – 577004
2018-20
BIET- MBA Programme, Davangere Page No 1

DECLARATION
I, PREETHI SURESH, hereby declare that the Organizational study report on

“Balaji Polymers, Davangere”, prepared by me under the guidance of
Prof. MUHAMMED MUNTAQHEEM G Assistant Professor, MBA Department,
Bapuji Institute of Engineering and Technology, Davangere and external assistance by
Mr. PRAVEEN Accountant, Balaji Polymers, Davangere.
I also declare that this Organizational study is towards the partial fulfillment of the
university regulation for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.
I have undergone an Organizational study for a period of Four weeks. I further declare
that this project is based on the original study undertaken by me and has not been
submitted for the award of any degree from any other University / Institution.
Place: Davangere
Date: 07/08/2019 Signature of the Student

ACKNOWLEDGMENT
It gives me great pleasure to extend my thanks and gratitude to those who have been
instrumental in the completion of this project report.
I thank, Dr. M C Nataraja, Principal, Bapuji Institute of Engineering and Technology,

Davangere.
I thank, Dr. Swamy Tribhuvananda H V, Bapuji B Schools, Davangere, for their support
to undertake this project.
I thank, Dr. Sujith Kumar, Head of the department MBA Programme, Bapuji B Schools,
Davangere.
I sincerely express deep sense of gratitude and appreciation to my internal guide

Prof. Muhammed Muntaqheem G. MBA Programme - Bapuji Institute of Engineering
and Technology, for his careful and valuable guidance, never ending patience and constant
encouragement throughout the project.
I am grateful to Mr. PRAVEEN, Accountant, Balaji Polymers, Davangere, External

guide for providing me the opportunity to undertake this project, without which this project
would have not been possible.
Lastly, I would like to thank my parents and friends for extending their support in
completing the report.
DATE: 07/08/2019 PREETHI SURESH

PLACE: Davangere (USN: 4BD18MBA46)

TABLE OF CONTENTS:
Page
Sl No. Chapters Title No.
EXECUTIVE SUMMARY 06
1 Chapter 1 INTRODUCTION
1.1 Introduction about the industry. 08
1.2 Industry profile. 9-12

2 Chapter 2 ORGANIZATION PROFILE:
2.1 Background 14-15

2.2 Nature of business 16
2.3 Vision, mission, quality policy 17
2.4 Product / Service profile 18-20
2.5 Achievements / awards if any 21
2.6 Future growth and prospects 22
3 Chapter 3 Mckensy’s 7S framework and porter’s five force model with

24-31
special reference to Organization under study.
4 Chapter 4 SWOT analysis. 33-34
5 Chapter 5 Analysis of financial statement, in brief. 36-44
6 Chapter 6 Learning experience. 46
7 Bibliography 47

LIST OF TABLES AND GRAPHS:
Sl No Table num Content Page num

1 Graph: 1.2(a) Indicating the polymer trend in 10
global level
2 Table: 1.2(b) Indicating the growth of polymer 11

industry since 1990-2022
3 Table 5.1(a) Gives the highlights of 5 years 36-37

financial transactions.
4 Table 5.1(b) Shows the balance sheet for the 38-39

year ending 2012.
5 Table 5.1(c) Profit & loss account for the year 42-43
2011 and 2012.

EXECUTIVE SUMMARY
Organization study carried out to study the structure which is followed by the company. It
also studies about the structure of each different department and different functions
followed by them. The organization study also helps to learn more about the company
history and product.
This study focuses on the examination of how individuals construct organizational

structures, processes, and practice and how these, in turn shape social and formal
relationship. The report contains industry profile, company profile. Industry profile
includes Background and history, vision, mission, quality policy, SWOT analysis, product
profile. Study of the organization design shows the present organization structure.
The report discusses about the Indian and global scenario of the paper industry. Then it
goes through company profile which discuss about the history, background, vision,
mission, quality policy and products of the company. And achievements, awards,
certificates which achieved by the organization. Later part includes Mckensy’s 7S
framework and SWOT analysis for the organization study. Further continues with financial
statements, five-year highlights of the financial statement.

CHAPTER 01
INTRODUCTION

1.1: INTRODUCTION ABOUT INDUSTRY:
Plastic is material consisting of any of a wide range of synthetic or semi-synthetic organic
compounds that are malleable and so can be molded into solid objects. Plastics are
typically organic polymers of high molecular mass and often contain others substances.
They are usually synthetic, most commonly derived from petrochemicals, however, an
array of variants is made from renewable materials such as polylactic acid from corn or
cellulosic from cotton linters.
Balaji polymers private limited is a private incorporated on 15th March 2011. It is classified
as non-government company and is registered at registrar of companies, Bangalore. Its
authorized capital is up to Rs. 26,00,000. It is involved in manufacture of plastic bags.
Plastics are organic materials that contain such elements as carbon (C), hydrogen (H),
nitrogen (N), chlorine (CI), and sulfur (S). They are made from raw materials such as oil,
natural gas and coal. The first step in making plastics is the polymerization of the raw
materials, resulting in a product called a monomer.
Balaji Polymers are the medium scale industry which manufactures the plastic bags and the
main purchaser of this industry is the Karnataka forest board. Balaji Polymers supply their
finished goods to this department for their purpose.
This report is done in BALAJI POLYMERS as a part of master of business administration

curriculum with an objective of knowing the working conditions and system are followed
in practical world. This project gives the details of all the major department of BALAJI
POLYMERS.

1.2: INDUSTRY PROFILE:
Polymers are the large molecules composed of repeated chemical units. The terms polymer
is derived from the Greek word’s poly and mers meaning “many parts”. Polymers are the
most rapidly growing sector of the materials industry. Industrial polymers, chemical
compounds used in the manufacture of synthetic industrial materials. In the industrial
polymers, chemistry of, polymers are categorized according to whether they are formed
through chain growth reactions.
Types of polymers are: - 1) addition polymers 2) polyethylene 3) polypropylene 4) acrylics

5) poly (tetrafluoroethylene) 6) condensation polymers.
India, currently the third largest consumer of polymers, is about to become a global
polymers powerhouse. According to recent Global data figures, India is already the
World’s third largest consumer of polymers, growth in the polymers really kicked off in
India after the country’s economic liberalization in 1991.
Despite the fact that India has one of the highest plastics recycling rates in the world (an
estimated 47% of all plastics is recycled) the demand for recycled plastics is huge,
especially for commodity plastics such as PP, PET, PS, LDPE and HDPE.
Plastic industry is significantly contributing to the growth of Indian economy finding its
usage in key industrial sectors – automotive, textile, packaging, irrigation, agriculture, etc.
A wide variety of plastic raw materials is produced to meet the needs of different sectors of
the economy. Polymer raw materials are categorized into a commodity, engineering, and
specialty plastic.
Growing industrialization, increased per capita income and living standard offers a huge
opportunity for the sustained growth of plastic industry in India.

GLOBAL SCENARIO:
The global polymer market is expected to grow at a CAGR of 3.9% from 2015 to 2020.
The demand for polymers is driven by growth in end use markets, such as packaging,
building & construction, consumer goods, horticulture, automotive, rail transport,
electronics and telecommunications.
Polymer industries are continuously substituting metals, glass, paper, and other traditional
materials in various applications due to their lightweight, strength and design flexibility
along with low-cost.
Graph 1.2(a)

INDIAN SCENARIO:
The Indian plastics market is comprised of around 25,000 companies and employs 3
million people. The domestic capacity for polymer production was 5.72m tones in
2009. The State of Gujarat in Western India is the leading plastics processing hub and
accounts for the largest number of plastics manufacturers, with over 5,000 plastics firms .
The growth rate of the Indian plastics industry is one of the highest in the world, with
plastics consumption growing at 16% per annum (compared to 10% p.a. in China and
around 2.5% p.a. in the UK). With a growing middle class (currently estimated at 50
million) and a low per capita consumption of plastics, currently 8kg per head, this trend is
likely to continue. The Plastindia Foundation estimate that plastics consumption is likely
to reach 16kg per head by 2015.
Despite India having a population of 1.15 billion and a work force of 467 million, plastics
companies have reported problems with labor shortages. This has led to increased
investment in technology such as automation and conveyor belt systems.
Table 1.2(b)

GLOBALIZATION AND ITS IMPACT ON POLYMER INDUSTRY:
The role played by globalization in the growth and development of the global plastics
industry are discussed. Globalization has played a key role in changing the way injection
and molding companies formulate and implement their sourcing policies for molds.
Economic developments in China and India have led to increased globalization, while
having a significant impact on growth and development of the global plastics industry.
The plastics industry is by far the largest of all and is a major part of globalization. It is
found around the world, even in the most underdeveloped countries like Congo and
Burundi. Most of the plastic is produced in the Republic of China but some of it is
produced in other countries such as United States. All TNC’s use plastic in one way or
another.
TOP TRUSTED PLASTIC INDUSTRY IN INDIA:
• Kingfa Science and technology Ltd

• Arrow Coated products Ltd
• Wim plast limited
• VIP Industries Ltd
• Nilkamal
• Mayur Uniquoters Ltd
• Responsive Industries Ltd
• Jain irrigation systems Ltd
• Astral Poly Technik Ltd
• Supreme Industries

CHAPTER 02
COMPANY PROFILE

2.1: HISTORY OF THE ORGANIZATION:
Name of company BALAJI POLYMERS
Company address C-52, Industrial estate, Lokikere road, Davangere-05
Name of owner T Ravi Shankar
Year of establishment 15 march 2001
Market covered All over Karnataka
Business type Manufacturer and supplier
Company status active
ROC Roc-Bangalore
Company sub category Non-govt company
Contact person (proprietor) 9449729623
Image 2.1(a)

MACHINERY USED IN BALAJI POLYMERS:
Image 2.1(b)
Image 2.1(c)
Image 2.1(d)

2.2 NATURE OF BUSINESS:
In BALAJI POLYMERS the main business is to produce the plastics which help forest
department for their use and, they even supply for the packing industries.
TEAM OF BALAJI POLYMERS:
• Product developers
• Thickness
• Quality analysts
• Warehousing personnel
• Packing experts
• Sales officials
Customizations available:
• Size
• Thickness
• Shapes
• Colors
• Capacity to hold

2.3: VISION, MISSION AND QUALITY POLICY:
VISION:
Creating and manufacturing wealth of the company with continues expansion for a better
future of all stake holders.
MISSION:
To bring to our customers the benefits of industry leading technology from concepts to
realization.
QUALITY POLICY:
We will involve our customers, suppliers and employees in the process of quality
management. We will comply with all statutory, safety and environmental regulations to
ensure the safety of both our employees and to discharge our responsibility to society.
Image2.3(a)
The quality of these plastic covers is been certified eco-friendly by KARNATAKA

FOREST DPT.

2.4: PRODUCTS / SERVICE PROFILE:
For billions of people plastic bags are an efficient and cheap way to transport goods. As the
production of plastic bags continues to increase worldwide.
BALAJI POLYMERS only produce the polymer bag or polythene bag.
How they are actually made?
Petrochemicals dominate the raw material stock for producing plastic bags. The waste
majority of single use plastic bags are made out of a few structural chains of the molecule’s
polyethylene.
• Extraction of raw material:

The polyethylene that makes plastic bags is drives either
from refined oil or cracked natural gas. These hydrocarbons are found mostly
underground and must therefore be reached by drilling wells. This process disrupts
the local ecosystem and can present disastrous consequences for human and
environmental health if leaks occur.
• Extrusion of plastic film:
To begin the manufacturing process, raw HDPE, LDPE or
LLPDE plastic pellets are again super headed and pressurized to form a uniform
molten liquid-which air is pumped into from below, producing a long thin balloon
of pliable plastic film that passes through a tall vertical corridor.
• Printing:
Single use plastic bags are composed almost entirely of pure polyethylene
molecules, however most plastic bags tend to have some form of branding printed
onto them. The printing process for a sensitive and light material like a plastic bag
requires a series of flexographic rollers that add color and type to bags.
• Converting:
The two printed sheets are then pressed at the edges to form the sides of
the bag. The plastic can be wound and then cut to the desired shape and size,
depending on the desired commercial intent for the bag.

Full form:
HDPE: high density polyethylene
LDPE: low density polyethylene
LLDPE: linear low-density polyethylene
HMHDPE: high molecular weight high density polyethylene
HDPE polymer:
Image 2.4(a)
LDPE polymer:
Image 2.4(b)

LLDPE polymer:
Image 2.4(c)
Image 2.4(d) Image 2.4(e)
The final product comes in three different shapes as shown in the picture [2.4(e)].

2.5: ACHIVEMENTS / AWARDS:
Balaji polymers has not achieved any awards yet.
The ET POLYMERS awards 2017:
A much-needed awards platform for the plastic industry

Worldwide Media private ltd (WWM) organized the ECONOMIC TIMES POLYMERS
awards, first of its kind red carpet award on January 19,2017 at Mumbai.
Image 2.6(a)
This award is been an encouragement for all the polymer industry in India.

2.6: FUTURE GROWTH AND PROSPECTS:
BALAJI POLYMERS is a fully contracted company with the KARNATAKA FOREST

DPT and they are bound to manufacture and supply for that department.
So, the Balaji polymers has another unit with name “Balaji plastic industry” which are the
manufacturers of the polymers with the distribution to the places within state.
• Balaji polymers are expecting to grow by 15% in next three years.

• Balaji polymers can have a growth in increasing the product varieties.
• They can even expand their trade all over Karnataka instead of selected places.
• They also thinking to trade with the packing and moving industries also.

CHAPTER 03
MCKINSEY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE

MODEL

3.1: MCKINSEY’S 7S FRAMEWORK
INTRODUCTION:
The 7S framework for management analysis was developed by Mckensy’s and company.7S
model provides an effective way analyzing an organization, in terms of dynamic
relationship among 7 key elements namely – structure, skill, strategy, system, staff, shared
value.
Richard pascal identified these factors in his book “The art Japanese management”
according to pascal it was because of these factors the Japanese companies excelled over
American firms. A very important feature of this model is that Mckiney’s consultants in
their studies of several firms have extensively tested it.
7S model is very good tool available to the managers, to study the organizations. This
study is important from strategic, marketing, organizational behavior and competitive
perspective. A major premise of the model is that many performance related issues are
rooted among the 7 factors outlines. The 7S are interconnected, aligned and working
together in high performing organization.

Mckiney’s 7S framework analysis for BALAJI POLYMERS is explained as below:
3.1.1: - STRUCTURE:
In Davangere, BALAJI POLYMERS consist two manufacturing units named (1)

BALAJI POLYMERS & (2) BALAJI PLASTIC INDUSTRY. And it has divisions in its
industry in order to have
T RAVI SHANKAR
PROPRIETOR
DEPARTMENTS HELD UNDER THE CONTROL OF PROPRIETOR
PRAVEEN
FINANCE
NAVEEN
PROJECTS
ASHOK
TECHNICAL
S M PATIL
HUMAN
RESOURCE

BALAJI POLYMERS consist of the teams like:
• PROPRIETOR: Here the owner is Mr. Ravi Shankar. He looks after the
overall management of all departments and here he takes the responsibility of
getting the investment into the firm.
• FINANCE DEPARTMENT: This finance department is headed by Mr.
PRAVEEN (Accountant).
He looks after every transaction in industry and maintains every proper record
regarding every activity.
• TECHNICAL DEPARTMENT: This department is headed by Mr. ASHOK
(Mechanical engineer). He looks after the technology to be used in manufacturing
and he has the knowledge of the current trend of updated machinery in the
market.
• PROJECTS HANDLERS: This department has a team of 5 members lead by
Mr. NAVEEN. He and his team are responsible to get the new project ideas for
the company.
• HUMAN RESOURCE DEPARTMENT: This is looked after by Mr. S N
PATIL(HR). He has the ideas of getting resources at the correct time from correct
place. Currently they are finding its raw materials from Mumbai.
3.1.2: - SYSTEM:
Systems are the processed and procedures of the company, which reveal business daily
activities and how decisions are made. Systems are the area of the firm that determines
how business is done and it should be the main focus for managers during organizational
change.
• Here the machinery is placed in industrial area as because the polymer

manufacturing industry produces a heavy noise and smell so industry always
decides to have the manufacturing unit away the locality.
• The various departments are connected through other departments like production
forge shop, production press shop, quality these are connected with store
departments. Especially quality depends on the production department.

• System include the formal and informal procedure that govern everyday activity
covering everything from MIS through the systems at the point of contact with the
customer.
3.1.3: - SKILLS:
Skills are the abilities that the firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of
what skills the company will really need to reinforce its new strategy or new structure.
Here the skills are given more importance as this work is a skill-based sector. So, the
employees chosen are trained according their skills and the new employees are analyzed
with their strength and weakness and those weakness are concentrated more to make
them an efficient employee.
Balaji polymers have the employees skilled and divided into two categories:
1: Employees focused on the production activities and in other word they can be
called as blue-collar employees.
2: Employees focused on machinery maintenance that is the technically skilled

employees with work experience.
3.1.4: - STAFF:
Staff element is concerned with what type and how many employees an organization will
need and how they will be recruited, trained, motivated and rewarded.
• The job and the responsibility have to be assigned according to their skills and
experience.
• The staff motivated to company employees for reaching the target production and
provide rewards to them.
• The company has 85 employees (includes both units).

• The company has two levels of employees:
1: Low level employees with the salary of 6000-7000.
2: Higher level employees with the salary of 12,000-15,000.
(salary here is been decided on their work experience)
Area of training:
• As in polymer industry the employees are supposed to give ON-THE-JOB

training. So, based on their qualification and skills it is decided that they are to be
in production team or technical team and later they are trained.
Qualification:
• The low-level employees need no specific qualification as they deal with

machinery and necessary training is been provided.
• The next level employees need to be mechanical engineer or diploma course.
Safety:
• As safety of employees are given main importance, here as it is completely the on
machine work company provides the insurance of a coverage 150,000 for each
and every blue-collar employee.
• The company provides 50% of employee share and 50% employer share to PF
contribution (15% of their salary).

Employee Record:
• The login of each and every employee are registered by the company.
• The company has is biometric in order to store the employees record or can be
said as attendance.
Image 3.4(a)
3.1.5: STYLE:
I have noticed a democratic leadership style in Balaji polymers because Mr. Ravi
(proprietor) takes decisions after considering the feedback and views of all the
departments or employees and he even considers their valuable suggestions too.
3.1.6: - SHARED VALUES:

Balaji polymers has never compromised with its quality as even the competitors make
changes in quality to earn profit but Balaji polymers have never compromised with its
quality.
3.1.7: - STRATEGY:
Balaji polymers have mainly concentrated on pricing and quality strategy, company has a
low price with good quality. So, we can say that they are following those strategy.

3.2: PORTER’S FIVE FORCE MODEL:
INTRODUCTION:
Porter’s Five Forces analysis is a framework that helps analyzing the level of competition
within a certain industry. It is especially useful when starting a new business or when
entering a new industry sector.
3.2(a)

3.2.1: THREAT OF NEW ENTRANT: {INCREASING}
Balaji polymers is the current manufacturer of the polymers supplied to government in
the surrounding area. So, there is a fear of new entrant trying to get the contract with the
government.
3.2.2: BARGAINING POWER OF SUPPLIER: {HIGH}

As Balaji polymers have a supply contact from only one supplier, they get their raw
materials supplied from Mumbai. So, here the company doesn’t have substitutes, hence
the supplier has a high bargaining power.
3.2.3: BARGAINING POWER OF BUYER/ CUSTOMER: {LOW}

Here the bargaining power of customers is low because Balaji polymers have only one
main customer i.e., Karnataka forest department. So, the payment is a contractual basis
and no way to bargain.
3.2.4: THREAT OF SUBSTITUTES: {LOW}

The government always prefers the eco-friendly products, and Balaji polymers is stood-
up to reach the expectations of their customer (i.e., govt). And company till now doesn’t
find substitutes for their product as it been successful in fulfilling the customer
requirements as per the trend.
3.2.5: RIVALRY AMONG EXISTING COMPETITORS: {NEUTRAL}

Balaji plastic industry has the rivalry with “LAKSHMI POLYMERS” and “ACKRO
POLYMERS” as there is a competition of quality and the price differentiation.

CHAPTER 04
SWOT ANALYSIS

INTRODUCTION:
SWOT analysis is structured planning method used to evaluate strengths, weakness,

opportunities and threats involves in a project or in a business venture and the SWOT
analysis.
Purpose of SWOT analysis:

The purpose of a strengths, weaknesses, opportunities, and threats framework is to get
managers thinking about everything that could potentially impact the success of a new
project. Failure to consider the SWOT could lead to the poor business decisions.
The SWOT analysis of BALAJI POLYMERS is been analyzed as below:
4.1: - STRENGTH:
• Family owned; 18 years established brand name.

• Wide range of products with quality and durability.
• Experienced management and motivated employees.
• Optimum utilization of company resources and human skill capacity.
• Fulfilling social responsibility by keeping environment clean.
• Local market knowledge.
• Using new technologies for the production.
• Strong management.
4.2: - WEAKNESS:
• Limited no of suppliers, over rely on them.

• Lack of improvement in manufacturing process.
• Poor industry image.
• Health hazards.

4.3: - OPPORTUNITIES:
• Improve marketing strategies.

• Supply to food packing industry.
• Changing consumer behavior.
• Trading even outside state.
• Introducing new products to market.
4.4: - THREATS:
• Competitors use e-business.

• Inflation, currency fluctuation.
• Government bans.
• Fluctuation in raw material prices.
• High competition.
• Shortage of skilled labors.
• High cost of energy.

CHAPTER 05
FINANCIAL STATEMENT

INTRODUCTION:
Financial statements are formal records of the financial activities and position of a
business, person, or other entity. Relevant financial information is presented in a
structured manner and in a form, which is easy to understand.
The two main statements explained here are:
• Balance sheet
• Income statement
Five-year highlights:
2012 2011 2010 2009 2008
Production
LDPE bags Tones 33,311 36,960 30,514 30,002 37,808
LDPE sheets Tones 29,802 42,989 30,438 20,686 20,242
Polythene rolls Roll - - - - -
HMHDPE bags Tones 22,417 21,228 22,011 20,445 19,020
HMHDPE sheets Tones 12,046 14,140 12,600 11,900 12,048
SALES
LDPE bags Tones 37,951 35,146 32,978 28,682 31,018
LDPE sheets Tones 30,158 39,280 32,512 21,980 21,488
Polythene rolls Roll - - - - -
HMHDPE bags Tones 23,980 23,890 22,900 19,560 16,800
HMHDPE sheets Tones 14,090 15,286 12,980 10,208 10,820
OPERATING
RESULTS
Turnover ₹ 87,028 79,953 74,715 65,483 54,125
PBDT ₹ 28,272 18,927 17,853 14,114 20,084
Depreciation ₹ 11,077 11,081 12,220 12,719 17,629
Exceptional items ₹ - 5,324 5,160 - -

Taxation ₹ 3654 598 - 166 372
MAT credit ₹ (3654) (598) - (154) (335)
entitlement
Deferred tax ₹ 4938 1,637 362 720 607
NET ₹ 12,258 885 111 663 1,811
PROFIT/(LOSS)
Dividend ₹ 1651 660 - 660 660
FINANCIAL
POSITON
Gross Block ₹ 2,15,871 2,10,374 2,07,934 2,05,632 2,01,596
Depreciation ₹ 1,15,432 1,04,040 93,305 80,866 69,565
Net block ₹ 1,00,439 1,06,334 1,14,899 1,24,766 1,32,031
Paid up capital ₹ 1321 1,321 1,321 1,321 1,321
Reserves and surplus ₹ 62,594 58,547 58,456 58,345 58,455
Net worth ₹ 63,915 59,868 59,777 59,666 59,776
Borrowings ₹ 9,986 4,393 1,042 6,608 8,063
Capital Employed ₹ 13,901 34,261 50,819 66,274 67,839
SOME SELECTED
RATIOS
EARNINGS PER ₹ 19.46 1.34 0.17 1 9
SHARE (₹2)
BASIC)
BOOK VALUE PER ₹ 97 91 91 90 91
SHARE
DIVIDEND ₹ 125 50 - 50 50
(EQUITY SHARES)
DEBT EQUITY % 44:56 55:45 60:40 64:36 64:36
RATIO
Table no 5.1(a)
Like every other company, BALAJI POLYMERS profit also increased from the last five
years. If we see the gross profit and net profit of the company it has been increased year
to year.

BALANCE SHEET:
The balance sheet provides a snapshot of a company’s accounts at a given point in time.
The balance sheet, along with the income and cash flow statement, is an important tool
for owners but also for investors because it is used to gain insight into a company and its
financial operation.
Balance Sheet as on 31-Mar-2012
Sl. Note 2012 2011
1. ASSETS
No
Non-current assets
Property, plant & equipment 2 99,838 1,08,581

Capital work in progress 3 62600 33500
Investment properties 4 - -
Intangible assets 5 26400 11000
Biological assets other than bearer plants 6 2,319 3812
Financial assets:
1.Investments 7 - -
2.loan 8 20500 17500
Other non-current assets 9 5000 8000
Income tax assets (Net) 10 8,268 6082

224,925 188,475
Current assets
Inventories 11 32,757 37,504
Biological assets other than bearer plants 6 150 150
Financial assets
1.trade receivables 12 12,831 11,804
2.cash & cash equivalents 13 2,327 1,262
3.loans 8 3800 4100

4.other financial assets 14 31400 389
Other current assets 15 5190 2749
Assets classified as held for sale 16 1670 -
90,125 57,958
Total assets 309,050 246,433
2. EQUITY & LIABILITIES:
Equity share capital 17 26,882 24,291

Other equity 18 65,595 50,536
Liabilities
Non-current liabilities
Financial liabilities
1.Borrowings 19 29,372 41,912
2.Other financial liabilities 20 3,160 2,804
Provisions 21 5860 4090
Deferred tax liabilities (Net) 22 13,505 8,567
Other non-current liabilities 23 6,127 5794
58,024 63,167
Current liabilities
Financial liabilities
1.Borrowings 24 77,640 32,631
2.Trade payables 25 16,799 19,934
3.other financial liabilities 20 12,433 10,578
Provisions 21 4,289 5,253
Other current liabilities 26 41,388 40,043
152,549 108,439
Total liabilities 309,050 246,433
Table no 5.1(b)

RATIO ANALYSIS
Ratio analysis is a quantitative method of gaining insight into a company’s liquidity,
operational efficiency, and profitability by comparing information contained in its
financial statements.
The purpose and importance of ratio:
Is to evaluate or analyze the performance of the firm in terms of risk, profitability,
solvency, and efficiency. It helps us to compare the trends of two or more company over
a period of time.
1. Current ratio:
The current ratio is financial ratio that measurement whether or not firm has enough
resources to pay its debts over the next 12 months. It compares a firm asset to its current
liabilities.
Current ratio = current asset/ current liability
2010-11: - 57,958/ 108,439 = 0.53
2011-12: - 90,125/ 152,549 = 0.6
It is inferred that current ratio in the year 2012 indicate a little raise in liquidity position,
because it is increased as compared to the year 2011, reason for this increase is current
asset like cash in hand, cash at bank, and sundry debtors increased in the year 2012.
2. Quick ratio:
Quick ratio establishes a relationship between quick or liquid assets and current
liabilities. An asset is said to be liquid if it can be converted into cash immediately.
Liquid asset includes cash, debtor, and marketable securities, Bills receivables.
Quick ratio = Quick assets (CA-Inventory) / Current liability
2010-11: - (57,958-37,504) / 108,439 = 0.19
2011-12: - (90,125-32,757) / 152,549 = 0.4
The Quick ratio in the year 2010-11 was 0.19 and in the year 2011-12 it was 0.4, compared
to previous year it has been increased.

3. Current asset ratio:
This measures a company’s ability to pay short-term obligations or those due within one
year.
Current asset = current asset / fixed assets
2010-11: - 57,958/188,475 = 0.31
2011-12: - 90,125/224,925 = 0.40
It is inferred that Ratio of current asset to fixed asset is increased from the year 2011 to
2012, due to increase in the current assets as well as fixed assets compared to previous
year.

PROFIT AND LOSS ACCOUNT:
The purpose of P&L account is to show whether a business has made a profit or loss over a
financial year. It is a document that measures and reports a company’s expenses and
revenue during a specific period of time.
Statement of profit & loss account as on 31st March 2012
Sl. Particulars Notes 2012 2011

No
1. CONTINUING OPERATION
Revenue from operation 27 1,87,672 1,80,458
Other income 28 237 767
Total income 1,87,909 1,81,225
2. Expenses
Cost of material consumed 29 99,542 1,01,426
Purchase of stock in trade - -
Excise duty on sale of goods 30 10,737 10,454
Changes in inventories of work in progress 31 2,375 4,184

and finished goods
Employee benefit expenses 32 11,834 11,411
Depreciation & Amortization expenses 33 11,076 11,436
Impairment of assets 34 210 -
Other expenses 35 20,376 20,028
Finance costs 36 5,157 7,580
Total expenses 1,61,307 1,66,519
Profit before exceptional items and tax 26,602 14,706

Exceptional items 37 - 5,323
Profit before tax 26,602 9383

Income tax expenses 38
Current tax 3,654 597
MAT credit entitlement (3,654) (597)
Deferred tax 4,937 1,426
Total tax expenses 21,665 7,957
Profit/(Loss) for the period from

continuing operations
3. Other comprehensive income 18
Items that may be classified into profit/loss - -
Items that will not be reclassified into

profit/loss
Re-measurement of employees benefit (797) (235)

obligations
Income tax relating to items that will not be 204 57

reclassified into profit/loss
Other comprehensive income for the (593) (178)

period (Net of tax)
Total comprehensive for the year 22,258 7779
Table no 5.1(c)
Compared to 2011 the company has improved its revenue and has drastically reduced its
expenses by cutting off in the cost of raw materials and other finance cost.

RATIOS
1: Operating expenses ratio:

The operating expenses ratio indicates the average aggregative variations in expenses
where some of the expenses may be increasing while others may be falling. The ratio is a
yardstick of operating efficiency.
Operating expenses ratio = Operating expenses/ Sales
2010-11: - 166,519/ 180,458 = 0.92
2011-12: - 161,307/ 187,672 = 0.85
The operating expense ratio, where as a low ratio is favorable, while high one is
unfavorable. In the year 2010-11 the operating ratio was 0.92 and as on 2011-12 of 0.85
and it has decreased from one to another year.

CHAPTER 06
LEARNING EXPERIENCE

LEARNING EXPERIENCE:
This is the first time I have handled a project in manufacturing industry of BALAJI
POLYMERS. This is a fantastic experience, in one or the other way. The main focus was
to observe practically the aspects which I had learnt theoretically in our management
course. Some of the aspects which I like to highlight is been mentioned below:
I learnt satisfactory information about Human Resource Management. I came to know

that how they will be collecting, allocating and effective utilizing the human resource in
the organization, and finance as well a marketing strategy & present scenario of the
industry.
I got the knowledge about the production, processing, financing and other departments
of the industry. I studied the nature and Background of BALAJI POLYMERS.I studied
the industry sector performance, and industry structure in INDIA. I got to know the
history of polymers in our country as well as in global level. I studied how the external
factor impacts on the respective industry- BALAJI POLYMERS.

BIBILOGRAPHY
Books:
➢ Entrepreneurial development – by S S KHANKA

➢ Strategic management – by S C BHATTACHARYA
➢ Business policy & strategic management –by P K MISHRA
The project information is based on the data given by external guide. These are the
websites used to get the information regarding the impact of polymer industry on Indian
and Global scenario.
Websites:
http://www.indianpolymer
https://www.lucintel.com/polymer-market-2020.aspx
..\Downloads\Knowledge-Paper-ps.pdf
https://www.business-to-you.com/porters-five-forces/

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“A Report on

Organization Study at Balaji Polymers, Davangere”

VISVESAVARAYA TECHNOLOGICAL UNIVERSITY

MASTER OF BUSINESS ADMINISTRATION

INTERNAL GUIDE: EXTERNAL GUIDE:

BIET- MBA Programme, Davangere Page No 1

I, PREETHI SURESH, hereby declare that the Organizational study report on

BIET- MBA Programme, Davangere Page No 2

I thank, Dr. M C Nataraja, Principal, Bapuji Institute of Engineering and Technology,

I sincerely express deep sense of gratitude and appreciation to my internal guide

I am grateful to Mr. PRAVEEN, Accountant, Balaji Polymers, Davangere, External

DATE: 07/08/2019 PREETHI SURESH

BIET- MBA Programme, Davangere Page No 3

1.2 Industry profile. 9-12

2.1 Background 14-15

3 Chapter 3 Mckensy’s 7S framework and porter’s five force model with

5 Chapter 5 Analysis of financial statement, in brief. 36-44

6 Chapter 6 Learning experience. 46

BIET- MBA Programme, Davangere Page No 4

Sl No Table num Content Page num

2 Table: 1.2(b) Indicating the growth of polymer 11

3 Table 5.1(a) Gives the highlights of 5 years 36-37

4 Table 5.1(b) Shows the balance sheet for the 38-39

BIET- MBA Programme, Davangere Page No 5

This study focuses on the examination of how individuals construct organizational

BIET- MBA Programme, Davangere Page No 6

BIET- MBA Programme, Davangere Page No 7

This report is done in BALAJI POLYMERS as a part of master of business administration

BIET- MBA Programme, Davangere Page No 8

Types of polymers are: - 1) addition polymers 2) polyethylene 3) polypropylene 4) acrylics

BIET- MBA Programme, Davangere Page No 9

BIET- MBA Programme, Davangere Page No 10

BIET- MBA Programme, Davangere Page No 11

TOP TRUSTED PLASTIC INDUSTRY IN INDIA:

• Kingfa Science and technology Ltd

BIET- MBA Programme, Davangere Page No 12

BIET- MBA Programme, Davangere Page No 13

Name of company BALAJI POLYMERS

Company address C-52, Industrial estate, Lokikere road, Davangere-05

Name of owner T Ravi Shankar

Year of establishment 15 march 2001

Market covered All over Karnataka

Business type Manufacturer and supplier

Company status active

Company sub category Non-govt company

Contact person (proprietor) 9449729623

BIET- MBA Programme, Davangere Page No 14

BIET- MBA Programme, Davangere Page No 15

TEAM OF BALAJI POLYMERS:

BIET- MBA Programme, Davangere Page No 16

The quality of these plastic covers is been certified eco-friendly by KARNATAKA

BIET- MBA Programme, Davangere Page No 17

BALAJI POLYMERS only produce the polymer bag or polythene bag.

How they are actually made?

• Extraction of raw material:

BIET- MBA Programme, Davangere Page No 18

HDPE: high density polyethylene

LDPE: low density polyethylene

LLDPE: linear low-density polyethylene

HMHDPE: high molecular weight high density polyethylene

BIET- MBA Programme, Davangere Page No 19

Image 2.4(d) Image 2.4(e)

BIET- MBA Programme, Davangere Page No 20