a.

Company profile

Company introduce themselves as Tulsi paper mill Pvt. Ltd. The company
established by the Manger Director of the company. Name of the MD is Mr.
Ashok Gangani. Company work in the industry since last 3 years. Company
register their name in industry in 2007.and they start their production in March
2013.
The company produce superior quality of paper called super duplex board
paper / N.H paper board and penetrated into the market with good results. It
has a strong B2B(Business to Business) marketing network. They supply their
product to the various industry. Like, Textile industry, garment bond, paper
boxes, Pharmaceuticals industry and food packaging. They also supply their
product to foreign market.
Communication has now been replaced by packaging as the single largest
category of paper use at 41% of all paper used. Tulsi paper mill is the largest
paper mill Production house of its kind and is among the Top in paper
production in Gujarat.
Tulsi paper miil today produces around 200 MT of Duplex boards of various
GSM & Grades per day. Tulsi paper mill has also become one of the best
paper mill in India to produce high quality board from wood free recovered
paper.
Tulsi paper mill is ISO certified company.

Infrastructure & Facilities

Location:
The Tulsi paper mill located in Dastan village, Kadodara, Bardoli road
at palsana in Surat, Gujarat, India.
Raw Material:
They purchased their coal at minimum cost and talking about waste
paper 60% are imported waste and 40% local waste.
Water:
At The Tulsi Paper Mills Ltd., we require about 90,000 to 1,00,000 KL
of water per day, which is drawn from River Kali. We use pure and potable
water having low iron content for manufacturing paper.

Power:
They use both self-generated and purchased power for production
purposes. They have achieved complete self-sufficiency in power generation.
They also have surplus power capacity upto 20 MW for export. Apart from

self-generation, they also have the provision for grid connectivity of 8250
KVA. Our captive power generating capacity is 82.14 MW
Steam:
Their requirement for steam for manufacturing paper is met by four
coal fired FBC boilers with a steam generating capacity of 330 Mt/Hr and two
chemical recovery boilers with a capacity of 258 Mt/Hr.

 Quality Control/Central Laboratory: For quality control and research on raw

material and processes, they have a fully equipped research lab in the paper
mill. The central laboratory carries out detailed analysis of water, process
materials, effluent stack gases, and intermediate product. Their quality control
laboratory focuses on complaints, customer service, product development,
and testing, inspection, and monitoring of products and processes.

Labour: they have employed 110 individuals as on March, 2013.

b. Organogram

STORE
MANAGER
ELECT.
MANAGER
PURCHASE &
PLANT
DIRECTER

POWER &
MARKETING
DIRECTER

GM (PLANT)

ENGG.

MECH.
MANAGER
ENGG.

FOREMAN

PRODUCTION
MANAGER

WORKER

SALES
MANAGER

DISPATCH

MARKETER

H.R MANAGER

ASS. H.R

MD

PULP
DIRECTER

SAFTEY &
SECURITY
GM (PLUP)

FORMAN
STATUTORY
AUDIT

AUDIT DEP.
INTERNAL
AUDIT
FINANCE
DIRECTER

EXISE
INCHARGE
ACCOUNT
MANAGER

DATA ENTRY
BILLING
SECTION

OPERATER

FOREMAN

c. Department
Human resource management:

In Tulsi paper mills human resource processes are rooted in business

priorities, market realities and long term oriented. Inherent in them are
the qualities like innovation, continuous learning and improvement in
the work processes, talent identification and nurturing. Their HR
processes stem from the faith in human potential and its creative
power. The compensation package of the Tulsi paper mill matches with
the industry standards with qualities of flexibility, valuing talent and
encouraging career growth.

Tulsi paper mills HR processes stem from the faith in Human Potential
and its Creative Power. Their work culture that enable its Human
Resources enjoy professional freedom. Their Learning Center is a
forum where unique learning events take place as a part of the process
of institutionalization of continuous learning.

Production department:

Production department mange by the production manager and plant

supervisors. He is the key contributor to the process of developing the
quality assurance and R&D functions in the organization. Later on with
his abilities in technical and administrative skills, took over the role of
managing the production operations. He is specialized in the areas of
technical sales, and product development. He is the critical in-house
resource for various learning events being conducted in various
technical areas.

Marketing department:

Marketing department is not seen much in this company as it is b2b

(business to business firm) but still they make grocer and calendar for
marketing purpose. And the reason being for this is they do make
products customized and according to the need of business and
demand for the same.
6

 Dispatch /distributor/sales department:

Dispatch department assisted by supervisors and dispatch clerks.

Purchase department:

Purchase of raw material is supervised by director purchase. Director

purchase is assisted by purchase manager and raw material quality
managers.

Finance department :
o Finance department is handle by finance manager who has a chartered
accountant, has a distinguished career in the are a of corporate finance
and brings with him a unique combination of skills from accounting,
costing, secretarial services and financial management. he started his
career in 1985 and added to his profile significant skills in the areas of
taxation, costing, insurance, working capital management, project
funding by way of debt from multinational agencies, raising equity etc.
Ever since he joined Tulsi paper mill he has been instrumental in
bringing in the financial discipline and analysis that helped the
management to take various cost effective decisions. He has made
significant contributions in identifying the financial institutions for
sourcing the funds for the mill development plan.

d. SWOT analysis
Strengths of company :

They use Latest technology for high grade paper manufacturing,

Latest equipment to have a cost effective production.

The have a complete knowledge of local market.

They have skilled workforce for the relevant task.

They export or import their material so that they can take advantage of
cost.

Company do B2B business.

Weaknesses of company :

There are large numbers of small scale industries in India whose

production capacity is only 12, 90,382 tonnes so this industry are small
compare to other industry

Because of the high cost of the ERP they cannot use ERP in their
system.

High loan rates are their because they 60% finance from the bank side.

Opportunities of company :

Increase in various usage of Duplex board.

Now days the in any product packaging are very important. So that
their paper demand is more in the market

In paper manufacturing industry the uneducated employee is required.

So the income of the labor is very low. So that they labour cost is very
low.

They can create their global market.

Threats of company :

Automated machine is increased the cost.

Price change in the raw metrical is also increase the cost.

Government rule regulations are very hard to implement.

PROJECT A:
Topic 1: A study of quality control system of company with respect
to opinion of customer.
Topic 2: Suggest a new Recruitment process.
Topic 3: A study on Information system use by the organization.

A quality management system (QMS) is a collection of business processes

focused on consistently meeting customer requirements and enhancing their
satisfaction. It is expressed as the organizational structure, policies,
procedures,

processes

and

resources

needed

to

implement quality

management.

The benefits of a QMS A fully documented QMS will ensure that two
important requirements are met:
1. The customers requirements confidence in the ability of the

organisation to deliver the desired product and service consistently meeting their
needs and expectations.
2. The organisations requirements both internally and externally, and at
an optimum cost with efficient use of the available resources materials, human,
technology and information.

 Basically for packaging industry :

1. Textile garment board
2. Consumer goods
3. Paper board
4. Pharmaceutical

Types of quality in Tulsi paper mill:

1. Uncoated
The Final goods here is uncoated as Tulsi paper mill is using wasted

paper used in different parts of India & from foreign countries so it is very essential to
remove all the coating and then according to the customers requirement coating is
added and products are made. But here the finished goods if purely uncoated.
The product here is Cheap, easy to make and use but the problem
here is there no moisture resistance as it is uncoated so if it gets in contact with
water it will get spoil.
The use of this type of product in packaging industries in consumer
goods such as AC, refrigerator, TV and oven etc. and these goods are used when
goods are transported within india and not beyond boundaries outside India.

2. LWC - Lightweight coating

As we saw earlier that coating is done according to requirements of
customer, here lightweight coating is applied.

10

The use of these products in packaging industries in paper boards

as

Virgin
1. Folding Box Boards
2. Solid Bleached Boards
Recycled
1. Coated Duplex White back
2. Coated Duplex Grey back
3. Coated High Burst Liner

3. HWC - High weight coating

Here, high weight coasting is applied on paper board consumer goods.
It is use for long distance transport such as exporting goods. The
goods here are basically of higher value and according to the requirements of
customers.

4. 230-550 gm/Sq mt
In this category, the goods are categorised on the thickness of paper
board as determined from around 230-550gm/Sq mt. This is also customized.
Hence basically Tulsi paper mill does quality check on the bases of
requirements of customers products.

11

CUSTOMER OPINION ABOUT TULSI PAPER MILL:

I conducted a survey of 10 customers by asking them the following questions:
1. Does this product satisfy you as per your requirements?
A) YES

B) NO

2. Does the products price is reasonable as per its quality?

A) YES

B) NO

3. Which quality is more important in our Product material?

A) Toughness

B) Protection

C) Durability

4. Will you be comfortable, if company reduced the price but the products
quality is deteriorated?
A) YES

B) NO

5. Will you be comfortable, if company increases the price is but the products
quality is improved?
A) YES

B) NO

FINDINGS:
1. 8 out of 10 customers are satisfied of the products offered to them.
2. 7 customers are reasonable happy of the price of product compared to
its quality offered.
3. 3 customers gave importance to toughness, 5 customers went for
protection and 2 went for durability.
4. 4 out of 10 customers will be comfortable if quality is deteriorated when
price is reduced.
5. 6 customers were comfortable if price is increased along with its
quality.

12

List of Customers whom I surveyed:

I.

Mukesh co & Ltd

II.

Vijay Desai Pvt Ltd

III.

Orient Paper & Industries Ltd

IV.

Rainbow Papers Ltd

V.

Khanna Pvt Ltd

VI.

Vaghela Co & Ltd

VII.

Patel Co & Ltd

VIII.

Varya Co & Ltd

IX.

Bharmal Co & Ltd

X.

Lokhandwala co & Ltd

13

HUMAN RESOURCE MANAGEMENT IN TULSI PAPER MILL

Existing policy of recruitment in Tulsi paper mill

Here, the company is recruiting the employees on the basis of
complete reference and no scientific theory is applied.

Few disadvantages of reference method of recruitment are:

1. Limited Choice
2. It discourages capable persons from outside to join the concern
3. For posts requiring innovations and creative thinking, this method of recruitment
cannot be followed.

Hence here I can suggest the company to recruit employees with a proper theory
and process of recruitment are as under:
1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here, planning involves
to draft a comprehensive job specification for the vacant position, outlining its major
and minor responsibilities; the skills, experience and qualifications needed; grade
and level of pay; starting date; whether temporary or permanent; and mention of
special conditions, if any, attached to the job to be filled

2. Strategy Development:
Once it is known how many with what qualifications of candidates are required, the
next step involved in this regard is to devise a suitable strategy for recruiting the
candidates in the organisation.
The strategic considerations to be considered may include issues like whether to
prepare the required candidates themselves or hire it from outside, what type of
recruitment method to be used, what geographical area be considered for searching

14

the candidates, which source of recruitment to be practiced, and what sequence of

activities to be followed in recruiting candidates in the organisation.
3. Searching:
This step involves attracting job seekers to the organisation. There are broadly two
sources used to attract candidates.
These are:
i. Internal Sources, and
ii. External Sources

4. Screening:
Though some view screening as the starting point of selection, we have considered it
as an integral part of recruitment. The reason being the selection process starts only
after the applications have been screened and shortlisted.
Job specification is invaluable in screening. Applications are screened against the
qualification, knowledge, skills, abilities, interest and experience mentioned in the job
specification. Those who do not qualify are straightway eliminated from the selection
process.
The techniques used for screening candidates vary depending on the source of
supply and method used for recruiting. Preliminary applications, de-selection tests
and screening interviews are common techniques used for screening the candidates.
5. Evaluation and Control:
Given the considerable cost involved in the recruitment process, its evaluation and
control is, therefore, imperative.

15

Advantages of implementing recruitment process:

1. Reduced Recruiting Costs.

2. Scalable Recruiting Capacity
3. A Consistent and Predictable Recruit-to-Hire Process
4. Increased Candidate Quality
5. Increased Hiring Manager Satisfaction
6. Enhanced Employment Brand

16

MANAGEMENT INFORMATION SYSTEM IN TULSI PAPER MILL

TULSI PAPER MILL uses a CORAL CUSTOMIZED SOFTWARE. This software is
according to the needs and requirements of their organisation.
They are having 20 computers in the organisation which is interrelated with each
other and it is also having internet facility.
SUPPLY CHAIN MANAGEMENT is seen here from dispatch department to
distributor department.
Here the organisation do not need ERP because of its capacity and size of the
organisation but in peak time when the organisation is running in full capacity still
they need to ignore and left few customers .

Advantages
1.

This software is well organised and it is as per the requirements of the

company

2.

According to the size of the organisation, this type of software is well and
good.

3.

Tailor made

Custom software is contrived by utilising the latest up-to-date technology. The

system is developed exceptionally to satisfy the clients business requirements. Any
discontent or difficulty of the client that appear during the development process can
be improved while the formulation of the software with customer permission and that
is

4.

the

most

MINIMAL

significant

benefit

of

the

custom

software

development.

COST

Sometimes the costs associated with developing custom business applications for
your business are higher than purchasing a ready-made product, and sometimes
they are not. The long-term benefits of investing in developing custom business
applications are far more valuable than purchasing a ready-made product. Plus
imagine the additional cost you would incur when paying for licences, be it short or
long

term

or

implementation

when

17

you

buy

off

the

shelf

products.

5.

Maintenance

With custom application development, your software is maintained for as long as you
require it to be. With off-the-shelf software, your business is at the mercy of the
software developer you are purchasing from.

6.

Integration

Custom software is a great solution for program integration. Businesses in need of

numerous software programs can enjoy the benefits of operating on one custom
software application designed to integrate multiple processes. Custom software in
this respect helps you to accomplish more of what you need.

7.

Support

A major benefit you get with custom business applications is an efficient and reliable
technical support plan. You will have full access to a technical support team that was
involved in the development process of your application, so all your encountered
problems are resolved in an efficient manner.

18

 The purpose of the project is to look at the quality management system and
the customer opinion about the company as well as the system that is used in
the organisation and the recruitment policies.

Tulsi paper mill is having integrated software called CORAL, which is

customized according to the needs and requirements of the company and if
they want to implement ERP they certainly can but the cost is too much and
they do not even require that type of system at least for now.

Tulsi paper mill have a well organised quality management system, well the
quality is determined and maintain according to the requirement of the
customer and the company respectively.

The recruitment policy was only referred to reference method but they can
follow a proper scientific approach as recruitment process in order to take
advantage of a potential candidate.

It was found out that the customer are having a good image of the products
offered to them and are also willing to pay higher if the quality of the product
improves.

19

 From my study, I can conclude that the MIS system implemented by Tulsi
paper mill is very accurate. It provides all the information regarding the
customers requirement and also helps the company at the same time.

It is also concluded that HR policies are implemented well but there are still
chances of improvement in the organisation.

It is also concluded that by providing improved quality product, the customer

satisfaction is improved.

The quality management system is such that the company is able to maintain
the quality of products in the best possible way.

20

I would like to recommend the company on the basis of my study that,

company should change its HR policies.

I would like to recommend the company on the basis of my study that,

company should change its CORAL CUSTOMISED SOFTWARE to replace
with ERP System.

I would like to recommend the company should improve its quality of product
on the basis of customer opinions.

21

Group B:
Topic 1: A Study on material handling system
Topic 2: A Study of Working Capital of Tulsi paper mill
Topic 3: Costing method followed by Tulsi paper mill

TULSI PAPER MILL

22

MATERIAL HANDLING SYSTEM

The image shown above is captured in Tulsi paper mill. (Forklift)

This includes mechanisms like various conveyors, stackers, elevators, etc.
Power, pulp, chemicals, paper rolls and board paper, other products are all
handled by appropriate Handling Equipment.
By utilizing the latest conveying equipment technology, TULSI PAPER MILL design
and implement material handling systems with the accuracy and flexibility to meet
the ever-changing needs of Converting production schedules.
When cases of products come from just about anywhere, anytime, at any speed, it is
essential that material handling equipment and packaging equipment work together.
That integration requires communication, and not just at the equipment level.
Each of the conveyors, wrappers, case packers, tapers and palletizers require
product to be delivered to them in a specific manner. To achieve a true System
Integration as those products move, so too must the information move about any
particular product. The Material Handling System Control must maintain continuous
contact with Main System Control to make it possible for each product to be routed,
stored, and accumulated to reach its proper unitized load destination.
23

The journey begins at the converting lines where information is gathered about
what products are being sent and ends in the warehouse with palletized loads,
properly labelled for lift truck routing.
This understanding has allowed TULSI PAPER MILL to assist clients in integrating
systems to meet those demands.
It all starts with recycle based Production Process.
TULSI PAPER MILL is not a manufacturer: we design systems based on your
requirements, not on what we produce. That way, you get options on the kinds of
material handling and packaging equipment to best serve your application. We
specialize at blending technologies and equipment to create the optimum solution for
you.

24

Waste paper (plastic, coasting, pine, spales)

Crushing

Laminate

Automation

Pulp solution

Cleaning process

Cutting and finished goods

25

Services for paper & pulp converting operations:

Product Conveyors

Product conveyors takes all the raw material as waste papers gathered from india as
well as from foreign countries to crushing process. This equipment tranfers the raw
material to crushing machine where it is used.

26

 Crushing machine:

Crushing machine crushes the raw material into useful material that can be used for
further process and then it is taken to next process that is laminating it.

27

Roll Handling Conveyors:

Roll Handling conveyors are ideal for transporting heavy cylindrical loads which
can be difficult to manipulate and control. These modular units which are custom
designed to suit your load, size and speed to ensure the most efficient system for
your application. It can rotate rolls reducing the need for clamp or pole trucks
during transitional operations. This equipment can also help start and stop rolling
using top and bottom pivot bumpers and kickers to initiate movement or cushion
the roll to a stop.

28

 Pulp Solution and cleaning process:

This equipment does clean and remove all the dirt and various other materials from
waste material and divides it into semi segments as plastic, paper, quoting etc.

29

Poly bag Systems

Many mills find themselves in the position of needing to convey both cases and poly
bags on the same equipment. Poly bags are relatively new, but they are gaining
popularity in the industry. Eventually, we think most mills will want systems flexible
enough to handle its loads, whether poly bag or in cartons.
Conventional conveyors typically cannot handle these loads, but TULSI PAPER
MILL has designed multiple systems that do, utilizing EZ-Logic with 2" roller centres.
The conveyor must be electronically zone controlled or use a sensor roller to achieve
zero pressure in order to convey the poly bag.
The benefit is that you don't lose accumulation space. Zone breaks are normally
needed to separate items on a conveyor. With this application, zone breaks are not
necessary, which means more product can be placed on the conveyor.

30

Overhead roll handling devices

Roll handling is required to transport wound rolls of material from manufacturing

processes to storage or shipment areas. Roll handling is also used for
transporting rolls from the receiving department to web processing equipment.
Tulsi paper uses this roller quite efficiently. It is use to move heavy materials from
one place to another so smoothly that there is very less wastage or undue loss is
not seen. It moves according to the person makes it move and placed it in the
right area.

31

Double Stackers/ CROWN FORKLIFT

A forklift (also called a lift truck, a fork truck, or a forklift truck) is a powered
industrial truck used to lift and move materials short distances. Here it transfers to
finished good to various warehouses in Tulsi paper mill.

32

Working capital management in TULSI PAPER MILL PVT LTD:

Meaning of working capital:

Working capital to a company is like the blood to human body.
It is the most vital ingredient of a business. Working capital management if carried
out effectively, efficiently and consistently will assure the health of an organization.
In simple terms, working capital refers to the cash a company requires in order to
finance its day-to-day business operation or in other words, working capital refers to
the amount of capital which is readily available to an organization. The term working
capital is more an accounting term a management concept. There are two concept of
working capital for the purpose of definition

There are mainly two concepts of the working capital:

Gross Working Capital: According to gross concepts, working capital refers to the
organizations investment in total current assets viz. cash marketable securities,
inventory etc. It is also known as circulating capital.

33

Net Working Capital: Net working capital is that portion of firms current assets
which is financed by long-term funds.
The formula to find out working capital is as follows :

Working Capital = Current asset Current liabilities

Working capital is defined as the excess of current assets over current liabilities.
Current assets are those assets which will be converted into cash within current
accounting period or within the next year as a result of ordinary operation of the
business. They are cash or near cash resources. Generally the working capital
management refers to that part or capital which is not tied up in fixed assets but it is
used to meet day to day requirement of business. This type of capital is used to
make payments for purchase of row material, wages, salary to meet other expenses
till good area sold in the market and money collected against that sale, during this
time money is to be required to perform various day to day transactions and to do
the payment or regular intervals.

The Working Capital of TULSI PAPER MILL products:

Working capital is defined as the excess of current assets over current liabilities.
Current Assets:
Current Assets are those assets which would convert into the cash in short time
within current accounting period or within the Next year as a result of ordinary
operation of the business.
They are cash or near cash resources.
This includes:

Cash and bank balance,

Receivables,
34

Inventory,

Raw materials, stores and spares.

Work in progress.

Finished goods.

Prepaid expenses,

Short term advances,

Temporary investment,

The value represented by these assets circulates among several items. Cash is only
used to purchase raw material, and to pay wages and to meet other manufacturing
expenses. Finished goods are produced from the raw material. These are held as
inventories. When these are sold account receivable brings cash into the firm.
Let us more clearly with the help of the diagram

Cash

Raw Material
Inventory

Receivables

Finished
Goods
Inventory

Cash invested into RAW-MATERIAL. Then process on it and make it as useful to

people or market. At last sold it in the market and get money against the product.
And again those funds invested into the company to make more products.

35

Working capital sources:

The sources of funds used for financing of working capital mainly include the
following:

1. Loans from commercial banks

2. Public deposits
3. Trade credit
4. Factoring
5. Discounting bills of exchange
6. Bank overdraft and cash credit
7. Advances from customers
8. Accrual accounts

From which the Working capital which they use are:

o Bank Overdraft
70 to 75%
o Bank loans
o Finance from partners 25 to 30%

36

Working Capital of TULSI PAPER MILL:

CURRENT ASSETS, LOANS AND ADVANCES

31/03/2014

31/03/2015

Finished Goods

787,466.00

956,725.00

Stock-in-Process

87388

197259

Raw Materials

352,683.00

525,135.00

Total Inventories

1,227,537.00

1,679,119.00

Debtors

1901,865.00

2097,917.00

Total Debtors

1901,865.00

2097,917.00

Cash on hand

525253

92515

Balance with Banks:

1997652

2446539

Total Cash & Bank Balances

25,22,905

25,39,054

Total Current Assets

5,652,307.00

6,609,455.00

CURRENT LIABILITIES AND PROVISIONS

31/03/2014

31/03/2015

Sundry Creditors

25,557,513

29,949,429

Other Liabilities

735,282

822,523

Total Creditors

26,292,795

30,771,952

A. CURRENT ASSETS
1. Inventories

2. Sundry Debtors (Unsecured and Considered

Good)

3. Cash and Bank Balances

A. CURRENT LIABILITIES

B. PROVISIONS

37

For Taxation

259,485

271,055

Total Provisions

259,485

271,055

TOTAL Current Liability

26552280

31,043,007

Net Working Capital :

20899973.00

24433552.00

38

Costing methods in TULSI PAPER MILL:-

Different industries follow different methods of costing because of the differences in

the nature of their work. The various methods of costing are as follows:

1. Job Costing:
In this case the cost of each job is ascertained separately. It is suitable in all cases
where work is undertaken on receiving a customer's order like a printing press, motor
workshop, etc. In case a factory produces a certain quantity of a part at a time, say
5,000 rims of bicycle, the cost can be ascertained like that of a job. The name then
given is Batch Costing.

2. Batch Costing:
It is the extension of job costing. A batch may represent a number of small orders
passed through the factory in batch. Each batch here is treated as a unit of cost and
thus separately coasted. Here cost per unit is determined by dividing the cost of the
batch by the number of units produced in the batch.

3. Contract Costing
Here the cost of each contract is ascertained separately. It is suitable for firms
engaged in the construction of bridges, roads, buildings etc.

4. Single or Output Costing :

Here the cost of a product is ascertained, the product being the only one produced
like bricks, coals, etc.

5. Process Costing

39

Here the cost of completing each stage of work is ascertained, like cost of making
pulp and cost of making paper from pulp. In mechanical operations, the cost of each
operation may be ascertained separately; the name given is operation costing.

6. Operating Costing
It is used in the case of concerns rendering services like transport, supply of water,
retail trade etc.

7. Multiple Costing
It is a combination of two or more methods of costing outlined above. Suppose a firm
manufactures bicycles including its components; the parts will be coasted by the
system of job or batch costing but the cost of assembling the bicycle will be
computed by the Single or output costing method. The whole system of costing is
known as multiple costing.

Tulsi paper mill uses the batch cum continuous costing methods. As Tulsi
paper mill produces the products as per the batch process system it uses the
batch costing method.

40

Cost structure:Cost structure refers to the types and relative proportions of fixed and variable costs
that a business incurs. The concept can be defined in smaller units, such as by
product, service, product line, customer, division, or geographic region. Cost
structure is used as a tool to determine prices, if you are using a cost-based pricing
strategy, as well as to highlight areas in which costs might potentially be reduced or
at least subjected to better control. Thus, the cost structure concept is a
management accounting concept; it has no applicability to financial accounting.

To define a cost structure, you need to define every cost incurred in relation to
a cost object. The cost structure of Tulsi paper mill on the bases of different
elements is below:

Classification
of Cost

Fixed Cost

Variable Cost

41

SemiVariable Cost

Cost sheet:
Tulsi paper mill does not follow any formal costing system so they dont have cost sheet.

Cost sheet for producing 1 ton of paper board

Particulars

Per ton

Amount

Material consumed

19.73

3600000

Direct wages

14.25

2600000

Prime cost

33.97

6200000

Other expenses

18.08

3300000

Depreciation

1.59

290000

Factory cost

53.64

9790000

Financial cost

0.38

70000

Cost of production

54.03

9860000

Add: Factory OH

Add: Administration OH

42

Add: stock of FG

0.55

100000

Cost of goods sold

54.58

9960000

Tax

1.32

240000

Profit

9.86

1800000

Net sales

65.75

12000000

Add: Selling & distribution

43

Tulsi paper mill is using various types of material handling equipments for
handling material starting from raw material to finished good.

Tulsi paper mill uses batch cum continuous costing process.

Tulsi paper mill is acquiring finance taking loans for banks (approx. 75%) and
25 % of finance is raise from partners.

44

 From my study, I can conclude that the costing process implemented by Tulsi
paper mill is very accurate. It provides all the information regarding the per
unit cost.

It is also concluded that material handling equipments can be replaced with

better equipments so there are still chances of improvement in the
organization.

From my study it can be concluded that the working capital implemented by

Tulsi paper mill is appropriate and helps the management in taking decisions
regarding how much finance to be reserved and how much can be invested in
the market.

45

Annexure
1. Does this product satisfy you as per your requirements?
A) YES

B) NO

2. Does the products price is reasonable as per its quality?

A) YES

B) NO

3. Which quality is more important in our Product material?

A) Toughness

B) Protection

C) Durability

4. Will you be comfortable, if company reduced the price but the products
quality is deteriorated?
A) YES

B) NO

5. Will you be comfortable, if company increases the price is but the products
quality is improved?
A) YES

B) NO

46

Bibliography
http://www.princeton.edu/~ota/disk3/1983/8312/831207
http://www.bastiansolutions.com/blog/index.php/2013/08/08/how-muchdoes-convjeyor-cost/#.Vyl8LoR97IU
http://www.sciencebuddies.org/science-fair-projects/topsciencefair_finding_scientific_papers.shtml
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2
&cad=rja&uact=8ved.c2E
https://www.google.co.in.url?sa=t&rct=j&q=&six-benefits-of-customsoftware-for-your-business%2Fusg=AFQjCNHjICJ,dc2E

BOOKS:
Cost & management accounting, M.N.ARORA, Himalaya Publications
house
Production & management, kanishka bedi
Human resource management, Gary dessler, Bijuvarkkey, Pearson
Marketing management, kotler
Management information system, laurdon and laurdon, pearson
Financial management, I M pandey
Operation research, J K Sharma

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