A

REPORT
On
ORGANIZATION ATTACHMENT PROGRAMME
Submitted to
DR. Govind Dave
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)
B.B.A. PROGRAMME

Constituent of Charotar University of Science and Technology

(CHARUSAT)
B.B.A. (2017-20)
Semester-5
Prepared by
Name-Hemaxi Soni
ID. No.-17BBA071

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ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude towards Mr. Bimal Desai the Chief Executive
Officer of Suyog electrical, HALOL who gave me permission to do my OAP Project in Suyog
electrical and supported me in acquiring practical knowledge throughout guiding me in my
project.
I would also like to thank my faculty guide Mr Arpit Patel, for his keen interest, valuable
guidance, and inspiration. His intellect, persuasiveness and insistence on a good work were a
guiding light in the darkness of my ignorance.
I would also like to express my sincere thanks to the other faculty members in personnel who
have helped me in carrying out my Internship programme. Lastly, I would like thank all the
persons who have helped me directly or indirectly in completing my project successfully.

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DECLARATION

I, Hemaxi Soni(17BBA071) Student of the third year BBA program at Indukaka Ipcowala
Institute of Management (I2IM) hereby declare that the report on organization attachment
program entitled is the result of my own work. I also acknowledge the other works / publications
cited in the report.

Name: Hemaxi Soni(17BBA071)

Place: Changa

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Contents
Introduction of industry...................................................................................................................5
1.2Future scenario of the company..................................................................................................6
1.3 Major players of the company...................................................................................................6
2. Introduction of organization........................................................................................................6
2.2Branches and Location.............................................................................................................11
2.3 Mission of the company...........................................................................................................11
2.4 Values and belief of the company...........................................................................................12
2.5 Objectives of the company......................................................................................................12
2.6 Achievement of the company..................................................................................................12
2.7 SWOT Analysis.......................................................................................................................14
3.1 FINANCIAL DEPARTMENT................................................................................................17
BALANFE SHEET AS ON 31ST MARCH 2018 AND 31ST MARCH 2017................................18
PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2018 AND31ST MARCH 2017
.......................................................................................................................................................19
4 .1 MARKETING DEPARTMENT...........................................................................................26
4.2 Classification of products or goods.........................................................................................27
4.3 Customer segmentation...........................................................................................................28
4.4 Sales network...........................................................................................................................28
4.5 Sales procedure........................................................................................................................28
4.6 Comparison of 4P’s with competitors.....................................................................................29
4.6.1PRODUCT.............................................................................................................................29
4.6.3 PLACE..................................................................................................................................31
4.6.4 PRAMOTION.......................................................................................................................31
4.7 Pricing policy...........................................................................................................................31
4.8 Order processing system..........................................................................................................32
4.6 Promotion and advertising policy............................................................................................32
5.1 PRODUCTION AND PLANNING DEPARTMENT.............................................................33
5.1.1 Manufacturing Process.........................................................................................................34
5. 1.2Inventory control system......................................................................................................34
5.1.3Material Issue Procedure.......................................................................................................34
5.1.4Provision for Material Handling............................................................................................35
5.1.5 Quality control system..........................................................................................................35

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5.1.6 Maintenance planning system...............................................................................................35
5.1.7 Quality policy.......................................................................................................................35
6.1 HUMAN RESOURCE DEPARTMENT................................................................................37
6.1.1 Job Qualification and Expertise............................................................................................37
6.1.2 Recruitment...........................................................................................................................38
6.1.3 Competences, Awareness, and Training...............................................................................38
6.1.4 Training process and Development......................................................................................39
6.1.5 Wages and Salary.................................................................................................................39
6.1.6 Welfare Activity...................................................................................................................39
6.1.7 Incentive Scheme Performance Appraisal............................................................................40
Abstract..........................................................................................................................................56
Keywords.......................................................................................................................................56
Introduction....................................................................................................................................56
Literature review............................................................................................................................57

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 Part – 1

Introduction of industry
Power is one of important thing in now days and to transmit and distribute it in today’s world,
we need state-of-the-art cables. Cable companies around the world are busily trying to address
the growing need for quality cables. Many of them have been able to produce a steady supply of
cables, and some of them are delivering cables that are not only durable and reliable but also safe
for the customer.
Wire & Cable Asian country |Bharat| Asian country| Asian nation} magazine has featured during
this article the highest cable makers in India -companies that area unit famed for his or her
commitment to quality and innovation which area unit The following companies are the major in
this particular industry.

1. Policab wires pvt. Ltd

2. Sterlite Technologies Ltd.
3. Finolex Cables Ltd.
4. RR Kabel
5. Diamond Power Infrastructure Ltd.
6. KEI Industries Ltd
7. Gupta Power Infrastructure Ltd.
8. RPG Cables (A Division of KEC International Ltd.)
9. Apar Industries Ltd. (Unit: Uniflex Cables)

1.2Future scenario of the company

 Expansion of the company in the all over India.
 Set- up of additional special test facility which are limited globally and constraint for
testing.
 Stepping up the innovation agenda to ensure more scalable innovation in cost competitive
products.

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1.3 Major players of the company
1. MR. Bimal Desai = director of suyog electrical
2. MR. Toshal Desai= technology director

2. Introduction of organization

2.1 Brief history of the company

Suyog Electricals Pvt.ltd. is globally-integrated company focus on developing and manufacturing

cables. SEPL is private company. SEPL is manufacturing and supplier type of company. SEPL
is among the leading cable companies in India with registrations, Approvals & supplies to
various Central government, State government and Private sectors. ISO 9001:2015 certified for
Quality Management Systems. Closely held Limited Company with 10 Million Turnover in 1990
to 1500 Million turnover for the year 2016-2017. Management runs by Technocrats with
Engineering background and having experience of 20-25 years.
Suyog Electricals Ltd., an Is o 9001:2015company engaged in manufacturing of the complete
range of power, control, signal, instrumentation, rubber & pvf cables. The company was
incorporated in the year 1983 & has been in progressively established itself since past 28 years
with a turnover for 2012–13 of RS. 121.75 corset GIDC Halol, 40kms. From Vadodara
(Gujarat).
SEPL is one of the pioneers in introducing KYNAR insulated HMWPE sheathed catholic
protection cables for the first time in India and have executed various jobs in catholic protection
systems.
SEPL Cables have also been exported & accepted by Petrochemical Industry like Seven Seas
Petroleum L.L.C, Oman, wherein SEPL have supplied consequent orders on the customer
specification of ‘Field Bus Cables'.

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Particular Details
Name Of Company Suyog electrical
Economic Sector Manufacturing unit
Founder Of Company Mr. Bimal Desai
Address(Manufacturing Plant & 2204,2205 suyog electrical, halol GIDC
Corporate Office)

Contact Number 91-265-6621151

E-mail id suyog@seplcables.com
Nature Of Company Private ltd company
Type of Company Manufacturing Of cables and wires
Quality Certificate Manufacturing of cables and wires company
Listing Status Not listed
No. Of Employee 25
Manufacturing Cables and wires
Managing Director Mr. Bimal Desai
Website www.seplcables.com

Following are the major products of the SEPL Company

Flexible Wires / Cables  XLPE power and control cables

 PVC power and control cable  Instrumentation cables

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 Thermocouple extension cables Braided cables

 Aerial bunch cables

KYNAR/HMWPE cables

 Railway signalling cables  EPR insulated cables

2.2Branches and Location

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The another branches of the company is in Baroda. 24, Arunodaya Society, 1 Madhuvan
Apartment, Alkapuri, Vadodara, Gujarat 390007

2.3 Mission of the company

1. Be the best at customer services.
2. Be the best at employee satisfaction.
3. Be the best at innovation, continuous improvement and product development.
4. Together driving outstanding financial result.

2.4 Values and belief of the company

1. Trust
2. Integrity and Honesty.
3. Dignity, respect & compassion.
4. Passion for excellence: Determination to be the best.
5. Perseverance, particularly in face of adversity.
6. Positive, optimistic attitude - SEPL can do whatever we set our mind to do.

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 7. Creativity and Innovation.

2.5 Objectives of the company

1. Safety and Environment.
2. Customer loyalty and satisfaction

2.6 Achievement of the company

 Global switch export

 Also certified with ZED (Zero effect Zero effect)

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2.7 SWOT Analysis

strength weakness
1.High level of customer satisfaction 1.Limited success outside core business
2.Reliable external providers

swot analysis

Threat
opportunity 1.New technology developed by the
1. Stable free cash flow competitors or market disrupter could be a
2. New customer for online channel serious threats to the industries in medium
to long term future

1. Strength
 High level of customer satisfaction
o The company with its dedicated customer relationship management department
has able to achieve a high level of customer satisfaction among present customer.

 Reliable external providers

o It has a strong base of reliable external provider of raw material thus enabling the
company to overcome any supply chain bottom line

2.Weakness
Weakness are the area where Suyog Electrical can improve upon strategy is about making
choices and weakness are the areas where a company can improve using SWOT analysis and
build on its competitive advantage and strategy positing

Limited success outside core business

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  Even though Suyog electrical is one of the leading organization in its industries it has
face challenges in moving to other product, segment with its present culture.

3. Opportunities
1. Stable free cash flow
o Stable free cash flow provides adjacent product segments with more cash in banks the
company can invest in new technology as well as new product segments. This would open a
window of opportunities for Suyog electrical ltd.
2. New customer for online channel
o Over past few year the company has invested vast some of money into the online
channel. This investment open new sales channel for Suyog electrical limited

3. Decreases in cost of transportation

o Because of lower transportation prices can also bring down the cost of Suyog electrical
ltds products thus, providing an opportunity to company either to its profitability or past
on benefits to the customer

4. Threats.
1. The company can face lawsuits I whereas market given different continuous fluctuations
regarding product standard those market.
2. New technology developed by the competitors or market disrupter could be a serious threats to
the industries in medium to long term future

3.1 FINANCIAL DEPARTMENT

Organization structure 3.1.1

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 managing
director

director

finance manager
accountant

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Capital struture
Capital structure refers to the mix of long term source of fund, such as debenture, long term loan
debt preference share capital and equity share capital including reserve & surplus. With the
planned capital structure, a company can get success. Therefore, it’s being increasingly released
that a company should plan its capital structure to maximize the use of funds and to be adapting
more easily to changing conditions.

The money manager ought to set up optimum capital structure for his company ought to develop
associate applicable capital structure for its company, the money manager ought to aim at
maximising the semi permanent market price per share.

600000000

545927692
500000000

449527146
400000000

300000000

200000000

100000000

0 22166000 22166000
2016-17 2017-18

share capiital reserves and surplua

1. Current ratio

Current ratio is the most frequently used ratio to measure company’s liquidity as it’s quick,
intuitive and easy measure to understand the relationship between the current assets and current
liabilities

Formula Current Ratio =CurrentAsset ⁄ CurrentLiabilites

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Year Current assets Current liabilities Ration
2016-2017 555114538 122851186 4.51
2017-2018 772315628 263869404 2.92

current ratio

5
4.5
4
3.5
3 4.51
2.5
2.91
2
1.5
1
0.5
0
2016-17 2017-18

current ratio

(source- As per the company’s detail)

Interpretation
In Suyog Electricals the current ration of year 2016-2017 is 4.51 and in year 2017-2018 the
current ratio is 2.91 and it is deceasing in oreder.
2.Debt to equity ratio
Debt to equity ratio is a capital structure ratio which evaluates the long-term financial stability of
business using balance sheet data. It is expressed in term of long-term debt and equity
Equation= total long term debt
Total share’s equity

Year Total long term debt Total share’s equity

2016-2017 4603497 449527146
2017-2018 4235811 545927692

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 debt to equity ratio
0.16

0.14

0.12

0.1

0.08
0.14
0.06
0.11
0.04

0.02

0
2016-17 2017-18

debt to equity ratio

(source- As per the company’s detail)

Interpretation
As per the table, ratio of debt to equity of year 2016-17 is 0.11 and ratio of debt to equity for
year2017-18 is .014, which 0.3 more than the FY 2016-17

3.Debt to capital ratio

Equation= total debt
Total debt+total share’equity

Year Ratio
2016-2017 0.10
2017-2018 0.21

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 debt to capital ratio
0.25

0.2

0.15

0.1 0.21

0.05 0.1

0
2016-17 2017-18

debt to capiotal ratio

(source- As per the company’s detail)

Interpritation
As the above table debt to capital ratio of year 2016-2017 is .10 and the for year 2017-2018 the
ratio is 0.21.
5.Net Working capital
Working capital is the ratio difference between a company’s current assets and current liabilities.
It is a measure financial of company, which calculates whether a company has enough liquid
assets to pay its bills that will be due in a year. This ratio’s formula tells us the short-term, liquid
assets remaining after short-term liabilities have been paid off. It is a measure of a company’s
short-term liquidity and it is also important for performing financial analysis, financial modelling
and managing cash flow.
Formula Net Working Capital Ratio = Current Asset – Current Liabilities
Year Current assets Current liablities Working capital
2016-2017 527248139 122821186 404426953
2017-2018 772315628 263869404 508443224
(source- As per the company’s detail)
Interpritation
The net Working Capital computed above resulted in a positive amount, it mean that the
company has enough current asset to meet its current liabilities, If all current liabilities are to be
sold. But there is one negative side of it that inventory days have increased.

5. Overall Profitabilty Ratio

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 Net profit
Overall profitability ratio=
Total sales

Year Overall profitabilty ratio

2016-2017 3.65
2017-2018 2.93

Column1
4

3.5 3.65
3
2.93
2.5

1.5

0.5

0
2016-2017 2017-2018

Column1

(source- As per the company’s detail)

5. Quick ratio
The quick ratio is an indicator of a company’s short-term liquidity position and measures
a company’s ability to meet its short-term obligations with its most liquid assets.
liquid assets
quick ratio=
current liablities

year Liquid assets Current liablites

2016-2017 95199776 122821186
2017-2018 125732444 263869404

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 Quick ratio

0.18
0.16
0.14
0.12 0.18
0.1
0.08
0.06
0.05
0.04
0.02
0
2016-17 2017-18

Column1

(source- As per the company’s detail)

INTERPRITATION
As per the above table of quick ratio it was .05 in year 2016-17 and it is increase in year 2017-
2018 and it is increse by 0.13 and thisis good for the company.

6. INVENTORY TURNOVER
Inventory Ratio measured how many times the inventories are restored during the year.
Inventory Turnover Ratio calculates company's efficiency in turning its inventory into sales.
Its purpose is to calculate the liquidity of the inventory. Inventory Turnover Ratio is estimate
as "turnover times". Average inventory used for inventory level to minimize the effect of
seasonality
Equation= Cost of goods sold
Average inventory

YEAR COGS AVE inventory Inventory turnover

2016-2017 89444068 88351891 1.01
2017-2018 138732783 127738870. 1.08

INTERPRITATION
As per the above table of inventory turnover ratio in year 2016-2017 is 13.20 which is increase
Gross Profit Ratio

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Gross profit ratio is a profitability ratio which shows the relationship between gross profit and
total net sales revenue. It is a popular tool that evaluates the operational performance of the
business. The ratio is computed by dividing the gross profit figure by net sales.

Formula Gross Profit Ratio = Gross Profit * 100

Net Sales
Year 2016-17 2017-18
Gross Profit 144182247 173899116
Net Sales 1244239893 1660818309
Ratio 11.58 10.47
Interpretation
As per the above table of gross profit ratio table in year 2016-17 it is 11.58 and in year 2017-18
it is 10.47. In year 2017-18 ratio is decrees because in year 2017-18 net sales increased.

11.8
11.6
11.4
11.2
11
10.8
10.6
10.4
10.2
10
9.8
2017-18 2016-17

Net Fixed Asset Turnover Ratio

This fixed asset turnover ratio is an efficiency ratio, it is measure company’s return on their
investment in property, plant, and equipment by comparing net sales with fixed assets. The
Creditors, on the other hand, want to make sure that the company can produce enough revenues
from a new piece of equipment to pay back the loan they used to purchase it.
Formula
Net Fixed Asset Turnover Ratio = Total Sale
Net Fix Asset
Year 2016-17 2017-18
Total Sales 1244239893 1660818309
Fixed Asset 646171314 898048071
Net Fixed Asset 1.92 1.849
Interpretation
Here, net fixed asset ratio of suyog electrical Private Ltd is decreasing .

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 Working Capital turnover Ratio
Working capital turnover ratio is calculated by dividing the net sales by average working
capital. This ratio shows company’s efficiency in generating sales revenue using total working
capital available in the business during a particular period of time.

Formula Working Capital Turnover Ratio = revenue

Net Working Capital

year Revenue Net working capital

2017-18 1660818309 1244239893
2016-17 508046224 427220352

ratio
3.25
3.2
3.15
3.1
3.05
3
2.95
2.9
2.85
2.8
2.75
2017-18 2016-17

ratio

Interpretation
Here, Suyog electrical Pvt. Ltd. Ratio is moving up and down because they not get success in
one product.

Net Profit Ratio

Net Profit is generally the net effect of operating as well as financing decisions taken by the
company. It is call as Net Profit ratio because of in the numerator we have Net Income (Net of all
the operating expenses, interest expenses as well as taxes)
Formula
Net Profit Ratio = Net profit after tax * 100
Net Sales

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year NPAT Net sales
2017-18 103073620 1660818309
2016-17 100253528 1244239893

ratio
9
8
7
6
5
4
3
2
1
0
2017-18 2016-17

ratio

Interpretation

The higher ratio of this ratio is good for the company, but in this case it is decreasing order.
Because they have paid the loans and advances

Cash Ratio

Cash ratio  considers only the Cash and Cash Equivalents (there are the most liquid assets within
the Current Assets). If the company has a higher cash ratio, it is more likely to be able to pay its
short term liabilities.

Formula
Cash ratio = Cash and cash Equivalents + A/c Receivables
Current Liabilities

Year Cash and cash Current liabilities

Equivalents
2016-17 26359332 264269404
2017-18 484079078 123751186

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 ratio
0.22

0.21

0.2

0.19

0.18

0.17

0.16
2017-18 2016-17

ratio

Interpretation
In year 2017-18 and in year 2016-17 it is like 0.18 and 0.21 respectively, in year 2017-18 cash
and cash equivalents are higher than year 2016-17 and current liabilities of year year 2017-18 are
lower tha year 2016-17.
Net Fixed Asset Turnover Ratio
This fixed asset turnover ratio is an efficiency ratio, it is measure company’s return on their
investment in property, plant, and equipment by comparing net sales with fixed assets. The
Creditors, on the other hand, want to make sure that the company can produce enough revenues
from a new piece of equipment to pay back the loan they used to purchase it.

Formula = Net Fixed Asset Turnover Ratio = Total Sale

Net Fix Asset

Year Total Sales Fixed assets

2017-18 1660818309 121166013
2016-17 1244239893 89666721

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 ratio
13.8
13.8
13.8
13.8
13.79
13.79
13.79
13.79
13.79
13.78
2017-18 2016-17

ratio

Interpretation

Net fixed asset ratio of year 2017-18 is 13.79 and 2016-17 is 13.8. there is no high change in net fixed
assets ratio because total sales and fixed assets both are increased in both the year.

Net profit margin ratio

The net profit margin is equal to how much net income or profit is generated as a percentage of revenue.
Net profit margin is the ratio of net profits to revenues for a company or business segment. Net profit
margin is typically expressed as a percentage but can also be represented in decimal form.

Net profit margin = profit after tax

Sales
year 2017-18 2016-17
Profit after tax 103073620 100253528
sales 168170188 1284416550

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 ratio
0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2017-18 2016-17

ratio

Gross profit margin ratio

Gross margin ratio is the ratio of gross profit of a business to its revenue. It is a profitability ratio
measuring what proportion of revenue is converted into gross profit (i.e. revenue less cost of goods sold)

Revenue − Cost of Goods Sold

Gross profit Margin = 
Revenue

year revenue COGS

2017-18 1660818309 138732783
2016-17 1244239893 89444068

ratio
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2017-18 2016-17

ratio

Interpretation

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In both the year ratio of gross profit margin is constant.

Operating Profit Margin Ratio

Operating profit or Earnings before Interest and Taxes (EBIT) margin calculates the rate of profit
on sales after operating expenses. EBIT or earnings before interest and taxes, also called
operating income, is a profitability measurement that measures the operating profits of a
company by subtracting the cost of goods sold and operating expenses from total revenues.
Formula
Operating Profit Margin = EBIT
Total Sales

year EBIT Total sales

2017-18 1442188657 1681701188
2016-17 1161875536 1284416550

ratio
0.91
0.9
0.89
0.88
0.87
0.86
0.85
0.84
0.83
0.82
2017-18 2016-17

ratio

Interpretation
The firm’s operating ratio was low in last the year2017-18. Because, EBIT has decreased in
similar proportion to total sales.

Return on Equity Ratio

It is based only on the common shareholder’s equity. Choose the dividends and minority
interests are deducted from Net Income as they are a priority claim. Return on equity provides us
the Rate of return earned on the Common Shareholder’s Equity.
Formula
Return on Equity Ratio = EBIT
Shareholder Equity

year EBIT Shareholder’s equity

2017-18 1442188657 568093722
2016-17 1161875536 472093147

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 ratio
2.56
2.54
2.52
2.5
2.48
2.46
2.44
2.42
2017-18 2016-17

ratio

Interpretation
A higher return on asset shows that the business was able to successfully utilize the resource
provided by its equity investor and the company accumulated profit in generating income.

Total Asset Turnover Ratio

This ratio is a comparison of sales to total assets. It is provides with an indication on how
efficiently the assets are being utilized to generate sales. This ratio calculate how efficiently a
firm uses its assets to generate sales, so a higher ratio is always more favorable. Higher turnover
ratio means the company using its assets more efficiently. Lower ratio means that the company
isn’t using its assets efficiently and most likely have management or production problems.
Formula:
Total Asset Turnover Ratio= Total Sales
Total Assets
Year Total sales Total assets
2017-18 1681701188 898048071
2016-17 1284416550 646171314

ratio
2
1.98
1.96
1.94
1.92
1.9
1.88
1.86
1.84
1.82
1.8
2017-18 2016-17

ratio

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Return on total Asset Ratio
Return on Assets or Return on Total Assets relates to the organization’s earnings to all capital
invested in the business. Two important things to note there:-
1) Please note that in the denominator, we have Total Assets which basically takes care of both
the Debt and Equity Holders.
2) Likewise in the numerator, the Earnings should reflect something that is before the payment of
interest.
Formula Return on Total Assets Ratio = EBIT
Total Asset
Year EBIT Total assets
2017-18 1442188657 898048071
2016-17 1161875536 646171314

ratio
1.85
1.8
1.75
1.7
1.65
1.6
1.55
1.5
2017-18 2016-17

ratio

Ratio Summary
Sr. No Ratio 2016-17 2017-18
1 Current ratio 4.51 2.92
2 Debt to equity ratio 0.11 0.14
3 Debt to capital ratio 0.10 0.21
4 Overall profitability 3.65 2.93
ratio
5 Quick ratio 0.05 0.18
6 Inventory turnover 1.01 1.08
ratio
7 Gross profit ratio 11.58 10.47
8 Net fixed turnover 1.92 1.849
ratio

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9 Working capital 2.9 3.2
turnover ratio
10 Net profit ratio 8.05 6.2
11 Cash ratio 0.21 0.18
12 Net profit margin 0.07 0.61
ratio
13 Gross profit margin 0.92 0.92
ratio
14 Operating profit 0.9 0.85
margin ratio
15 Return on equity 2.46 2.54
ratio
16 Total assets turn 1.98 1.87
over ratio
17 Return on total 1.79 1.6
assets

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 4 .1 MARKETING DEPARTMENT
Organization structure

MARKETING MANAGER

(MR. C.D RAVAL)

MARKETING EXECUTIVE

1. Mr. Dixon Poul

2. Mr. Hardik Joshi

SALES CO-ORDINATOR

(MR. SATISH PARMAR)

4.2 Classification of products or goods

Suyog electrical ltd is manufacturing different type of power, control, instrumentation and
telecommunication cable since last 22 years.
All SEPL cables are carefully, inspected at each stage of production as per stringent Quality
Assurance plan. SEPL cables have been recognized and approved by almost all leading
companies and government agencies

4.3 Customer segmentation

Company have following product which is applicable in various industries as below:

signak & instrumentation

cables 31 | P a g e
als

arial bunche cables

 extension compensating

suyog elect
cables

equipment and machinary

contol cables

power industries
cables of industrial
electronics
chemicals,petrochemicals
cables /wires
and fertilizer
computer cables

goverment and semi

goverment
kynar

engineering industries

consultants and
contarctors

electricals and electrinocs

ltd

steel industries

4.4 Sales network

There is no sales network in the Suyog electronics. There is no middle man in the organization.
They have a direct contact with their customer. There is absence of sales network diagram.

4.5 Sales procedure

The sales from the company is done by the standard procedure that is my getting an order with
the perfect details they start manufacturing it and then as per the requirement of the customer the
order is packaged and delivered to the customers with an invoice of sales from the company. The
payment is taken on Cheque basis.

4.6 Comparison of 4P’s with competitors

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 product

prmotion
4p's price

place

4.6.1PRODUCT

Major products of the SUYOG ELECTRICALS are as follow

Products provided by Suyog electrical Products provided by polycab

Signal and instrumentation cable Power cables
Arial bunched cables Control cables
Control and power cables Instrumentation cables
Extension compensating cables Solar cables
Equipment and machinery cables Building wires
Cables for industrial electronics Flexible single/Multi core
Computer cables Communication cables
Flat cable Other cables
Copper braids
High flexible cables
Copper and aluminum cables
Filed bus cables
Filed bus cables
KYNAR
Miming cables for miming
Thermos plastic cables
Coaxial cables

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 Submersible flat cables

4.6.2 PRICE

Price of the suyog electrical is 10% charges on actual cost.

Place

There are 2 branches of Suyog electrical pvt ltd. 1 st one is located in Baroda and another is
located in halol.
All the production of SUYOG ELECTRICALS is done at halol. Because arability of labor is
more with compare to Baroda, because halol is semi urban place where majority of people are
not skilled.

4.6.4 PRAMOTION
Suyog electrical are not giving any advertisement because 70%of the work of SEPL is based on
GEB (Gujarat Electronic Board) work. And left 30% of their work is based on Indian railway.

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4.8 Order processing system
GENERATING
CUSTOMER
PAYMENT
INQUIRY AS
ONLINE

REPSONCE
FROM THE
SUPPLY
COMPANY

FINAL ORDER
&TERMS
AND
CONDITION

4.6 Promotion and advertising policy

There is no advertising policy because the majority work or 70% work of SEPL is GEB. And
because of this they don’t required any advertising policy.
Supply Chain Management

Manufacture Agent Customer

5.1 PRODUCTION AND PLANNING DEPARTMENT

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PRODUCTION AND
PLANNING
 MANAGER QUALITY LAB LAB ASSISTANT
(1.MR. A.S GIRI (1. MR .MAHENDRA (1.MR.HITESH
PAREL BHALIYA
2. JITENDRA
GUPTA) 2.MR. DILIP PATEL) 2. UMANG PATEL)

6.1.1 Manufacturing Process

copper/
alumminium
road

drawing

insulation

standing laid
up

armouring'

outer shelth

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Following are the production of the company

Product range Approved by

Signal & instrumentation cables BIS-IS:1554(I)IS:694,7098,14255
Arial bunched cables EIL
Control and power cables PDIL-project development India ltd
Extension compensating cables MECON
Equipment ands machinery cables TATA Consultant ltd
Cables for industrial electronics Dalal consultant
Computer cables Crompton graves
Flat cables C-DOT
Copper braids Railways
High flexible cables NPC
Copper and aluminum cables Indian defense
Filed bus cable SAIL
Rubber cables ABB
KYNAR L&T
Miming cables for miming SIEMENS
Thermo plastic for mining IOCL
Auto cables Department of atomic energy
Coaxial cables BHEL
Submersible flat cables PGCIL-power grid corporation of India
NTPC

5. 1.2Inventory control system

Suyog Electrical truly follows the first in first out method for any raw materials. They believe
that if they first use earlier raw material for product in this case they not bear problems of
inventory control.

Organization Structure of Store Department

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 MANAGING DIRECTOR

DIRECTOR

MANAGER
STORE

Basic Function
 Identification of all materials stored.
 Receipt of incoming materials.
 Storage and preservation
 Materials handling
 Issue of materials to users within the organization
 Processing of customer orders
 Dispatch of finished goods
 Maintenance of the stock records
 Store accounting
 Stock taking

They use FIFO (Fist in Fist Out) Method in Raw material.

5.1.3Material Issue Procedure

As discuss with the dispatch manger of the Suyog Electrical, they unload a raw material in
particular place and there is store of material or there is a room for the same where they stored
the raw material. Store keeper give raw material to the worker on the bases of requirement of
production.

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5.1.4Provision for Material Handling

Suyog electrical planned for material arraignment customer vice, staking of drummer customer
vice for inspection & then deliver the same or dispatch the same.

So that we can easily finding customer vice drums which will help us to easily find for finished
goods and as well as stored.

5.1.5 Quality control system

Quality control system of Suyog electrical is as per the QAP (Quality Assurance Plan).

5.1.6 Maintenance planning system

SEPL made preventive maintenance programme each and every machinery should be take in
preventive maintenance on quarterly bases.
For example =machine num 1,2,3 are used in month June ,July and august
Machine num 4,5,6 are used in month September ,November

5.1.7 Quality policy

Suyog Electricals are committed to achieve highest level of customer satisfaction by providing
quality of cables.
SEPL shall strive to remain an environmentally responsible entity, ensuring of safe and risk free
work environment.
Suyog Electricals has QHS policy (QUALITY, HEALTH AND SAFETY POLICY)
Create situation to avoid hazard, reduce risk and building accident free work environment by
proactive measures and prevent injury and health.
Enhance awareness amongst employees, contractors, External providers, visitors, customers for
risk reduction.
Comply with all the applicable legal and other requirements related to Health, safety and quality
of products/Services.

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 6.1 HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCES

MANAGER
ASSISTANT
(MR. HAMIR
(MR . B.K MIKRAL)
MAHIDA)
6.1.1 Job Qualification and Expertise

Sr no Designation Qualification and

experience
1 H.R. executive 5 years experience in same
filed
2 Marketing executive Graduated/5 years

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 experience
3 Planning executive 5 years experience

4 Purchase executive Graduated / 5 years

experience in same filed
5 Dispatch executive Graduated / 5 years
experience in same filed
6 Production executive 5 years experience in same
filed
7 Maintenance executive ITI/ 3 years experience in
same filed
8 Q.C DEE/3 years experience in
same filed
9 P.Q.C supervisor 3 years experience in same
filed
10 Supervisor 3 years experience in same
filed

6.1.2 Recruitment
The recruitment policies of the Suyog electrical is based on government site for all the
employees. And they give advertisement for the recruitment.

collection of prilimary final selection

advertismnet
data interview interview

6.1.3 Competences, Awareness, and Training

All the people in the organization have some bearing on the quality of the product and product
that the organization provides to its customer.
Management therefore ensures that everyone is appropriately skilled for the tasks which they
have to undertake and shall be imparted training for quality related aspects.
A master list of training working in Suyog electrical ltds, is maintained as per format
no.SEL/F/MNG/03. Training record is maintained for each employee on form of
SEL/F/MNG/03.
The new employees will be given training for all the activities of the company by human
resources they will also be given training of all related quality/management system and job
related training. The same is recorded in format no SEL/F/MNG/06. The new employees are
taken based in competences level plan.

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6.1.4 Training process and Development

The training process of the Suyog electrical is as follow.

 They do various surveys for that.
 They evaluate the performance of the employees and if the training is needed
they arrange some tanning session for the employees.
 For the new employee , they provide full training session for that.

6.1.5 Wages and Salary

Wages of labor
Normally wages are on monthly bases on Suyog Electricals ltd. And all the wages are as per the
government policy for all skilled and unskilled labor.

Salary

Level Management Amount ( )

Top Level 40000+
Middle Level 15000-40000
Low Level 10000-15000

6.1.6 Welfare Activity

There are many welfare activities performed by the company towards their employees.

 Celebration of birthdays at the end of the every month of every employee who have their
birthdays in that month together.
 Provides Lemon Juice everyday in the season of summer due to the heat.

6.1.7 Incentive Scheme Performance Appraisal

The incentive provided to the employees is different at each level and each position. There is a
fixed amount of incentives provided to every employees of the company.

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My learnings:-
Suyog electrical gives me the opportunity to gain the practical knowledge about the industry.

 How to deal with client

 I learnt that how to work with government website, this is new experience for me and
learnt many things from this
 How to generate E-way bills.
 Online transporting entry
 I learnt that how Suyog electrical satisfied their customer needs.
 How to work with the EPFO site.
 How to deal with employees and worker with the organization.
 Good practical experience on accounting activities.
 Understand the financial position of the organization and growth of the firm.
 How they are managing the quality of the products.
 I also learnt about the different type of the cables and wires and, where they are use.
 I also learnt about the organizational culture and organizational study
 How to maintain different document and financial data

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 PART –II
REEARCH TOPIC =IMPACT OF CAPITAL STRUCTURE ON
PROFITABILTY

Abstract
This research is based on the identification of the impact of capital structure on profitability of
the Suyog electrical ltd. This research is based on secondary data collection. Capital structure is
the combination of debt and equity that finance the organization’s strategic plan. The main
purpose of this study is to assess the impact of profitability on capital structure in suyog
electrical. the purpose of the study is to investigate the impact of capital structure on firm’s
performance.

Keywords
Capital structure, profitability, firm performance, suyog electrical.

Introduction
The capital structure plays an essential role in the financial decision-making process, maximizing
the company's performance and value. The term structure of the capital is the mixture of different
securities issued by the company to finance its operations. These mixtures of different financing
methods issued by the company are called the capital structure of the company. Saad (2010)
argues that the capital structure financially means how a company finances its assets through a
combination of capital, debt or hybrid securities. Similarly, the capital structure is used to refer to
the proportional debt-to-equity ratio. In general, the capital of a company is its net worth, the
value of its assets amount owed to its creditors. In corporate law, capital refers to vital. Capital
Structure is a combination of owner's funds (shares) and (debts). Simply put, the capital structure
is debt and equity, which constitutes the overall capital of a company. Klayman, Bagdy and Ellis,
(1994) defined capital structure such as the composition of the various sources of funds and
credits: equities and bonds, private securities, loans and banks' lines of credit, commercial

44 | P a g e
creditors, debt financing, leasing, installment purchases, and speculated and self-financing
through retaining profits. A company's debt is made up of all borrowings from the government,
legal financial companies, private individuals and banks, other financial institutions, debentures
and all deferred payment liabilities. Equity consists of equity, share premiums, reserves, excess
earnings and discretionary provisions in the event of an emergency. In recent decades, the capital
structure has become one of the most interesting issues in the corporate finance literature.

Objective
1. To find the relationship between the capitalization and profitability.
2. To study a cash flow.

Literature review
 As per the [ CITATION att \l 1033 ] perform study on the effect of capital structure on
profitability. They found that there is a negative effect of capitalization on profitability.
They are choose three main variable as part of the it, i) total debt ,ii) short term debt and
iii) long term debt. They find that total debt and short term debt have a negative impact
on it and only long term debt have positive impact on profitability.
 Hussain Muhammad and others studied on the impact of capital structure on firm
performance. They told that based on correlation result study finds a negative relation
ship between debt to assets and firm performance variables. They also find that there is
positive relationship between debt to equity and firm performance. Regression analysis
shows that there is significant impact of capital structure on firm’s performance.
Although companies generally depend on debt capital, financial analysts and managers
should therefore be cautious when using debt as a source of financing, as the almost
negative relationship between the capital structure and firms performance.
 Moh’d Zira AL-Hadid studied on impact of capital structure on financial performance.
As per their study they found that there is no significant difference between the average
value of the debt-to-equity ratio and the operating benefit. This means that with a slight
change in the capital structure, there is not a large variation in the company's operating
income. It should be noted that the financial cost is deducted from the statement of results
after the calculation of operating income. There is also a significant change in the
percentage of operating income relative to the venture capital ratio. It is therefore
concluded that there is an important link between the capital structure and the operating
profits obtained by a company.

 Irfan Mehdi studied on “Impact of Capital Structure on profitability”. They search that
that the current responsibility has positive relationship with the profitability of the
company, this is due to the short-term borrowing costs, are they profitability of the
business, as a non-current liability relative to current liabilities. Empirical results show a
positive relationship between MM-II, but this it is not due to the tax protection available
in the debts, but to the other factors. Since the tax shield is available in both non-current
liability and non-current liability have a significant negative relationship with

45 | P a g e
 profitability. There is an unexplored factor behind the negative liability relationship
profitability of these companies.

 Idode, Patrick Esiemogie, Adeleke, Toyin Mary and others performed study on
Influence of capital structure on profitability. They research that The main objective of
the capital structure is to have an adequate combination of debt and capital that can
maximize shareholder wealth (Watson - Head,2007), but unfortunately, this target is not
always achievable due to some of the shortcomings such as managing inefficiency,
inherent risk in business, diminishing ethics and serious abuse of insider information.
This study reveals that the return is negatively related to the capital structure and is
statistically not significant with short-term debt with total assets and total debts.

 Tawhida Khatoon and Md. Moyazzem Hossain studied on Capital Structure and
Firm’s Financial Performance: Evidence from Listed Cement Companies of Dhaka Stock
Exchange of Bangladesh. As per their research they suggest that the effect of fixed effect
model(FEM) has been used to estimate the effect of variation in capital structure to the
variation in the corporate performance and the result revealed that shot term debt and
cash flow have significantly positive influences. Where long term debt to equity,
tangibility and liquidity have significantly negative impact on most of the proxy variables
of firm performance.

 Alhassan Musah studied on THE IMPACT OF CAPITAL STRUCTURE ON

PROFITABILITY OF COMMERCIAL BANKS IN GHANA. His study examined that
the effect of capital structure like short term debt ratio, long term debt ratio, and total debt
ratio on profitability like return on assets and equity. He found that there is an inverse
relation between growth in customer deposit and profitability of banks. And in his study
he also said that capital structure has significant impact on profitability.

Variable for study

1) Dependent variable
Profitability
2) Independent Variable
Capital
Reserve and surplus

Research methodology
 Type of research
Descriptive Research

 Sources of Data
Annual Report of Suyog electrical pvt ltd. Of 2016-2017 and 2017-2018.

 Area and Period of Study

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The study concerned with financial aspects of Suyog electrical PVT LTD. The Study period
consist of 2 years from 2016-2017 and 2017-2018.

 Tools for Analysis

Profitability ratio
 Gross profit ratio
 Return on sale ratio
 Return on assets ratio
Interest coverage ratio
Common size statement

Research model

capital structure
(independent
profitabilty of firm
variable)
(dependent variable)

Actual research
Capitalization structure simply refers to the money a company uses to fund operations and where
that money comes from. Capital will be raised either through the acquisition of debt or through
equity.

Year Capital Net profit

2017-2018 Share capital=2,21,66,000 194787924
Reserve and
surplus=54,59,27,692
2016-2017 Share capital =2,21,66,000 160338686

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 Reserve and
surplus=44,95,27,126

Cash flow statement of suyog electrical

PARTICULR 2017-18 2016-17

(A Cash flow from operating activities:
) Net profit before tax and extra ordinary items 17,38,99,116 14,41,82,247
Adjustment for:
Depreciation &write – offs 1,24,71,415 1,18,05,335
Interest &financial cost 1,34,76,214 1,14,81,056
Dividend and interest income (45,74,926) (68,07,613)
Profit on sale of assets (4,83,894) (3,22,340)
Operating profit before working capital changes 19,47,87,92 16,03,38,686
Adjustment for:
(increase)/ decrease in trade receivables (15,16,41,580) (5,93,97,590)
(increase)/ decrease in inventories (6,67,73,959) (21,18,057)
(increase)/ decrease in short tem loan and advances 1,12,22,205 1,12,30,591
(increase)/ decrease in long term loan and advances 3,67,686 (2,96,086)
(increase)/ decrease in other current assets (2,91,920) (13,35,696)
(increase)/ decrease in trade payables\ 35,95,744 2,67,18,022
(increase)/ decrease in short term provision (66,95,984) (30,81366)
(increase)/ decrease in other current liabilities 1,45,41,666 (1,63,78,280)
Cash generated from operations (8,88,217) 11,56,80,225
Direct taxes (6,61,56,386) (4,40,54,128)

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 Net cash flow from operating activities(A) (6,25,44,603) 7,16,26,097

Cash flow from investing activities

Interest and dividend income 45,74,928 68,07,613
Purchase of fix assets/ investments (4,40,46,815) (3,34,32,283)
(B)
Sale of fixed assets / investment 5,60,000 4,50,000
3,89,11,886 2,70,47,670
Net cash flow from investing activities(B)
Cash flow from financial activities
Short term borrowings paid 12,95,76,971 13,31,38,239
Long term borrowings paid 1,40,77,561 1,69,38,011
(C)
Dividend paid (55,41,500) (44,33,200)
Dividend tax (11,31,575) 9,05,259
interest and financial cost (1,34,76,213) (1,14,81,056)

Net cash flow from in financing activity (C) 12,35,05,064 (13,30,19,744)

D Net increase/ decrease in cash and cash equivalent
(A+B+C) 2,20,45,575 (8,84,68,318)
E Cash and cash equivalent (opening) 2,26,59,332 11,48,27,650
F Net increase/ decrease in cash and cash equivalent
(D+E) 4,84,07,907 2,63,59,332
Cash and cash equivalent(closing)
4,84,07,907 2,63,59,332

Comparative analysis
Gross Profit Ratio
Formula= Gross Profit ÷ Net Sales*100

Year 2016-17 2017-18

Gross Profit 144182247 173899116
Net Sales 1244239893 1660818309
Ratio 11.58 10.47
Interpretation
In suyog electrical pvt ltd, gross profit ratio in year 2017-18 is decreasing because net sales are
increased with compare to year 2016-17.

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Return on sale
Formula= net income ÷ Net Sales

Year 2016-17 2017-18

Net income 1284416550 1681701188
Net Sales 1244239893 1660818309
Ratio 1.03 1.01

Interpretation
In year 2016-17 it is more than the year 2017-18 because net sales and net income both are
increasing with compare to FY 2016-17.
Return on assets
Formula= Net Income ÷ Average Total Assets

Year 2016-17 2017-18

Net income 1284416550 1681701188
Avg of total assets 323085657 449024035
Ratio 3.97 3.74
Interpretation
In year 2017-18 average of total assets is increasing but when we talk about the net income it is
not increasing more but the purchase of assets high in year 2017-18.

Factors affecting capital structure

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 condition
of money
cost of market goverment
capital policy

needs of
nature of
the
business
investors

size of capital debt to

company equity
structure ratio

Debt to equity ratio

Equation= Total long term debt
Total share’s equity

Year Total long term debt Total share’s equity ratio

2016-2017 4603497 449527146 0.11
2017-2018 4235811 545927692 0.14
Interpretation
As per the table, ratio of debt to equity of year 2016-17 is 0.11 and ratio of debt to equity for
year2017-18 is .014, which 0.3 more than the FY 2016-17.

Interest coverage ratio

Equation = EBIT/ interest

Year EBIT Interest expenses Ratio

2016-17 1161875536 11481056 101.19
2017-18 1442188657 13476214 107.01
Interpretation
By using this interest coverage ratio in year 2017-18 it is 107.01 and in year 2016-17 it is 101.19.
in year 2017-18 it is increasing because of the EBIT.

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 Common size statement

2017-18 2016-17
total Total
Particular expenses expenses percentage expenses expenses Percentage
cost of material consumed 1388531040 1681701188 82.56705 1001430032 1284416550 77.9677
other manufacturing
expenses 66264592 1681701188 3.940331 49779064 1284416550 3.875617
change in inventories,
finished good and wip 60145583 1681701188 3.576473 6596487 1284416550 0.513578
employee benefit expenses 51181276 1681701188 3.043423 39244556 1284416550 3.055438
final cost 13476214 1681701188 0.801344 11481056 1284416550 0.893873
other expenses 36179748 1681701188 2.151378 33096946 1284416550 2.576808
Depreciation 12314786 1681701188 0.732281 11799135 1284416550 0.918638
96.81228 89.80165

Interpretation
1. In year 2016-17 the percentage of cost of material consumed is 77.96 and in year 2017-18
it is 82.56, difference between this 2 year is 4.6%.
2. Other manufacturing expenses are in increased in year 2017-18 by 0.10% because of
following expenses are increased in FY 17-18.
 Electricity charges.
 Labour & security exchange.
 Loading and unloading expenses.
3. Changing in inventories, finished goods and WIP of FY 17-18 is very high than last year because
of the closing stock
4. Employee benefit expenses in FY 17-18 is 3.04 and in FY 2016-17 it is 3.05 which is same in the
both the year.
5. In FY 2017-18 final cost of the Suyog electrical is 0.80 and in FY 2016-17 it is 0.89. In year 17-
18 it is decreased by 0.09 because of bank charges and bank processing fees are very less.

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