HR Institute of Higher

Education, Hassan
presentation on
Business Familiarisation Report

Internal guide: External guide:

Ms.Sudha Mr. Darshan
Asst. prof. Presented by: Asst. HR Mgr
Dept. of Commerce, Amreeen Khanam Pyramid Timber
HRIHE, Ankitha.L.D Associates Pvt. Ltd.
Hassan. Navitha.K.N Yelwala,
Rashmi.H.M Mysore.
Explore creativity
Explore design
Witness innovation
Feel quality
Find inspiration
its all hear ………in Pyramid
Timbers
INDUSTRY PROFILE
Plywood is highly versatile designed product. The plywood industry is more
than 74 years old in India. It was started on small scale. In 1906-07 plywood
was imported to India for first time costing of Rs.31 lakh.

In 1947-48 the factories started diversify its product to : flush doors,
profitable plywood, black boards, attractive plywood marine and aircraft
plywood produced in Indian factories.

Now a days in every place it may be industrial office or houses are using
plywood fixtures this may lead to expansion of showrooms, factories where
they also design different products in plywood.
COMPANY PROFILE
Name :- Pyramid Timber Associates Pvt. Ltd.
Nature of business:- Plywood Manufacturing company
Founder of company:- Mr. Mohammadi.T.Vagh
CEO:- Mr. Ali Azgar Vagh
COO:- Mr. Hussain.M.Vagh
Year of establishment:- 1987
Located area:- Hunsoor road, Yelwala, Mysore
Legal status of company:- Private Limited Company
GST No:- 29AABCP0488K1Z1
Engaged in :- Manufacturing of wooden doors, Doors frames, decorative veneers,
Finger jointed boards, Wall paneling's, Sawn Sizes and Exotic Table tops.
VISION & MISSION :
 VISSION
 Pyramid timber associates will be the benchmark for wood based industry
in delivering quality, reliability, value and environment, management
through sustainable growth

MISSION
 Integrity and Ethics
 Customers satisfaction and value
 Work culture
 Innovation
 Safety, Health and Environment
 Employee satisfaction
Objectives:
 To promote the quality of products.
 To build the reputation of Pyramid Timbers Associates.
 To Enhance the volume of business in domestic and export markets.
 To maintain the brand loyalty of its customer.
 To provide the best quality products to the customers and ensure customer
satisfaction.
 To provide the customized products based on the customers expectation and
preferences.
.

Quality policy

 The company never compromises in quality. Quality assurance is their main

motto.
 Special care is taken while manufacturing the products.
 Their keys of manufacturing or controlling quality:
Seasoned products
Excellent workers
Great finishing
 It is been maintaining the export quality. They are enjoying monopoly in high
quality wooden furniture.
 FUNCTIONAL DEPARTMENTS
1. Production department
2. Marketing department
3. Finance department
4. Human Resources department
5. Stores department
1. Production Department:
 They use the timber for producing various products.
 The main product of this company is FJ Board.
 Other products they produce are Veneers, Doors and Table tops.
 The wood that is required for the production is acquired from both as well as
international market.
 The company imports from Canada, France, Sri lanka, Russia etc.
 In India it procures Timber from Bangalore, Chennai, Ahmadabad and Hyderabad.
Product overview
1. FJ Board

•Asian Walnut

•Indian Teak - Natural and Oil finish

•Burma Teak - Natural and Oil finish

2. Doors
•Engineered and Designer doors

•Flush doors

•Moulded skin doors

•Veneered moulded skin doors

•Door skins

•Solid wood doors

3.Veneers
 American Walnut
 Asian Walnut
 Burma Teak
 Golden Teak
 Silver Oak
 Rose Wood
 Pine Wood
4. Table Tops

•Solid Teak
•Finger Joint Teak
•Solid Walnut
•Finger joint Walnut
Process
1.Joinery Division
Log yard

Saw mill

Seasoning kilon

Finger joint

German moisture resistant glue

High frequency press

Moulding

Profile wrapping

CNC machine

Packaging
2. Veneer Division

Log Yard

Boiling Vats

Veneer Slicer

Veneer Drying

Hot press

Storage
3. Doors & Table tops

Hot press for door and Veneer product

CNC machine cutting

UV polishing line

Manual polishing

Spray machine

Packaging
2.Marketing department
Due to high standard of quality maintained by the quality control department of this
company, the product of company have found ready acceptance in market both in
India and abroad

Distribution of channel : zero – level- channel

Pricing strategy
Online marketing
Continues innovating & Product diversification
3.HR Department:
HR resource is concerned with the issues of managing people in the organization.

The purpose of HR department

Recruitment and selection
Training and development
Performance appraisal

Attendancesystem
Wage and salary
Benefits
Welfare measurements
4. Finance department

 Management of company cashflow

 Financial reporting
1. To ascertain the profit of the business
2. To ascertain the financial position of business
 Management of Taxes
 Share capital
1. Authorized capital
2. Paid up capital
5.Stores departments
 Raw material
Finger joint

 Finished goods
veneers
finger joint

 Documents
Stores Indent
Goods inward note
positive recall
Goods register note
Card X
issue slip
Stores warrant
 SWOT analysis of pyramid timber associates:
STRENGTH

•Company has foreign exports where they have international contacts of

business.
•Effective waste management.
•They do not leave any wastage they use it by recycling.
•High brand value.
•Good Returns on Capital Expenditure – Pyramid Timber Associates is
relatively successful at execution of new projects and generated good returns
on capital expenditure by building new revenue streams.
•Pyramid Timber Associates has strong free cash flows that provide resources
in the hands of the company to expand into new projects.
•The company with its dedicated customer relationship has been able to
achieve a high level of customer satisfaction among present customers.
WEAKNESS
•Damages of wood or quality of wood can be decreased due to changing
climate.
•Labor turnover.
•Investment in Research and Development is below the fastest growing
players in the industry. Even though Pyramid Timber Associates is spending
on Research and Development, it has not been able to compete with the
leading players in the industry in terms of innovation.
•High price due to high cost of production.
OPPORTUNITIES
•They have opportunity to trade more in international level.
•Acquiring new and updated technology.
•New markets in railing, roofing and ceiling of woods, decorative.
•New trends in the consumer behavior can open up new market for the
Pyramid Timber Associates.
•Product diversification.

THREATS
•In may cause unhealthy in polishing department due to smell and dust so
they are Recruiting north Indian people because they are capable than local
people
•Seasonal demand
•Growing competition
•Imitative products enter to markets
•Government policies
 TOWS analysis
STRENGH – OPPORTUNITIES (max-max)

•The present trade is trending through online; the company is planning to

trade through online which will opportunities to increase trade export and
import of good quality.

•They have effective waste management methods, they can reuse the wastage
and produce different kind of products and diversify their product.

•The company has follows rules and laws ,so they or getting support which
helps the company to smoothly undertake its business without any much
threats in its business they can even ask favor form the political parties .

•It has high level of customer satisfaction and good customer relationship
which provides great opportunity for the organization to build revenue.
 STRENGTH –THREATS (max-mini)

•The company already has brand value in the market loyal customers they buy
the company’s product inspite of other competition
•By following the rules and regulation of government this leads to easily
adopt of government policies
•The company maintained good quality of products and brand equity the
customers not going to imitative products.

WEAKNESS – OPPORTUNITIES (mini- max)

•There was zero level promotion before but now they are planning to give
advertisements.

•By using updated technology they can protect and preserve the timber that are available
seasonally.
WEAKNESS –THREAT (mini-mini)
• By using effective promotional activities that is advertisement and other
promotional activities leads to helps and avoid the competition.
• Reduce the threat of imitative products by investing more to R&D
department because with the help of R&D department they come with
innovative products.
• Rising in raw material cost can pose a threat to the Pyramid Timber
Associates' profitability.
Mc Kinsey’s 7s Frame work
STRATEGY
Strategy is a term that refers to a complex web of thoughts, ideas, insights,
experiences, goals, expertise, memories, perceptions and expectations that

provides general guidance for specific actions in pursuit of particular ends.

• Selling directly to end customer

•Quality check at every stage

•Continuously innovating

•Automated Operation
STRUCTURE
Managing
director

CEO COO

Maintenanc
Finance Accounts Production HR Store e
manager manager manager manager manager manager
SKILL
The skill is an ability to perform an activity in competent manner.

 Technical skills
 Human skills

There are 3 categories of employees in the company:

 skilled workers
 Semi-skilled workers
 Un-skilled workers

They provide on-the-job training for a period of 11 months to improve their skills on
the basis of employees’ knowledge
They don’t provide off-the-job training.

•
STAFF
The company is accommodating various employees, they comprise
of staffs, workers and trainees. The people in organization are very
dedicated and work towards the improvement of the organization.

Number of employees
There are 250 employees in the company.
 Management staff – 50
 Workers- 200

They provide on-the-job training to the staff for a period of 11 months, based
on the job description.

The teams of the pyramid timbers association

SYSTEM
A set detailed methods, procedures and routines established to carry out
a specific activity, perform a duty, or solve a problem,

There are some systems are followed by company:

• Inventory control system
• Management Information System
• Quality Control management
• Performance Measurement System
STYLE

Participative Management style

It is also called as employee involvement decision making
Employees are invited to share in the decision making process of the firm by
participating in activities such as setting goals , determining work schedules
and ,making suggestions

Shared values
it is usually developed by the organization’s leadership then adopted by members
of the organization
 Integrity and ethics
 Respect
 Quality management
 Dignity
ANALYSING THE FINANCIAL PERFORMANCE ON THE BASIS OF RATIOS

Current Ratio
The current assets consist of cash and assets that can easily Be turned
into cash and the current liabilities consist of payments that a company
expects to market in the near future. Thus, the ratio of the current assets to the
current liabilities measures the margin of liquidity. It is known as the current
ratio
Current ratio= current assets/ current liabilities

year Current assets Current liabilities Ratio

2017 26,87,08,013 22,04,72,270 1.21:1
2018 32,10,12.361 27,12,37,874 1.83:1

INTERPRETATION
The current ratio was 1.21 for the year 2017 then it has increased to 1.83 in
the year 2018.the current liability started decreased in 2018
 ANALYSIS

As per the analysis current assets values is more then compare to current
liabilities, high ratio indicates over capitalization, low ratio indicates under
capitalization so that pyramid timbers associates has more capitalization in
market.

2. Quick Ratio

The ideal Quick Ratio of 1:1 is considered to be satisfactory. High Acid Test
Ratio is an indication that the firm has relatively better position to meet its
current obligation in time . On the other hand, a low value of quick ratio
exhibiting that the firm's liquidity position is not good.

quick ratio= current assets –inventory/current liabilities

 Year Current assets- Current liabilities Ratio
stock
2017 22,04,12,094 22,04,72,270 0.999:1

2018 26,98,13,442 27,12,37,874 1:1

INTERPRETATION

The quick ratio was 0.999 for the year 2017 and then it has increased to 1 in
the year2018. The current liability started decreased in 2018

ANALYSIS
As per the analysis quick assets value is more than current liabilities,
high ratio indicates the liquidity position of the company so that pyramid
timbers associates has have the liquidity position in market
 Net Profit ratio

The net profit margin measures the percentage of each monetary unit
from sales remaining after all costs and expenses, including interest, taxes,
and preferred stock dividends, have been deducted.
Net profit ÷ Net sales) x 100
Year Net Profit Net Sales Ratio
2017 3,4,77,90,79 49,37,93,596 3.602
2018 45,23,23,38 53,40,19,091 8.470

INTERPRETATION

The net profit ratio was 3.602% for the year 2017 and then it has increased to
8.47 in the year 2018. The sales started increase in 2018 and continued in the
market
ANALYSIS
At the time profitability company follows the budgetary techniques here every
years profit will be compared to financial budget of the current year and past
year financial performance of the company, so that compare to 2017 and 2018
firm’s profitability increase so for as the more trading capacity in the market

Debtors turnover ratio

It is an accounting measure used to measure how effective a company is is in extending

credit as well as collecting debts

Net credit sales/ average debtors

year Credit sales Average debtors ratio

2017 49,37,93,596 101690224 4.86
2018 53,40,19,091 92648004 5.76
INTERPRETATION
The debtors turnover ratio was 4.86 for the year 2017 and then it has increased
to 5.76% in the year 2018. The average debtors started decreasing in 2018

ANALYSIS
As per the analysis net credit sales is more compare to average debtors, high
ratio indicates better cash position, low ratio indicates low cash position so that
pyramid timbers associates has better cash position.

Return on Equity (ROE).

It is another very important measure of a company's profitability that

reveals how much profit it generates with the money shareholders have
invested.

ROE = Net Income / Shareholders’ Equity

 Year Net income Share holders Ratio
equity
2017 347,79,907 9,77,07,372 0.36
2018 4,52,32,338 12,64,82,959 0.357

INTERPRETATION

The return on equity was 0.36 for the year 2017 and then it has
decreased to 0.35 in the year in 2018.the shareholder fund started decrease in
2018.
LEARNING EXPERIENCE
.
 They have focused more on the quality of the product.
 Their efficient works in organisation
 They operate globally and have contacts with different countries for their imports and
exports.
 There is a continuous and efficient Supply chain management and inventory management in
the company.
 They provide only on-the-job training to their employees based on their requirement with
their own strategies and procedures
 It is located in the proper industrial area hence, it does not disturb the residential areas.
 They maintain good relationship with the customers and their workforce.
 There is an efficient waste management.
SUGGESTION
Training can be given in much more better way where they can give full
satisfaction to employees by that they can expect more performance by employees.
The company should give basic amenities to employees
The company should encourage employees by giving increasing bonus and salary