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HITESH NAKRANI

INTRODUCTION

Today chemicals are inevitable for each and every

country. Because today, in most of the field of production
chemicals is required for materials like in the field of Drug
and , in the field of chemistry, in the field of automatic energy
etc. ZACFA CHEMICALS is not providing product directly to
the consumers. But it first, provides to the other industries as
raw material for making them finished . And thereby , they are
made to sell in the markets.

ZACFA CHEMICALS is in a field of

DRUG and SYRUP. It produces raw materials for the Drug for
tacking dieses. ZCFA CHEMICALS is also exporting its products
in foreign country in African Countries like Kenya, Nairoby, Africa
etc. it provides in a Pakistan. it has a share of 25% of total
production in exports.

Company has a capital

intensive production process. It has a 12 workers in
the company

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COMPANY PROFILE

Name : ZACFA
CHEMICALS
Factory Address : Plot no. 212/ A,
G.I.D.C. Chitra,
: Bhavnagar 364003

Office Adress : As above

Type of Business : Partnership Firm
Name of Partner : Mr. Manishbhai Shah
Mr. Devendrabhai
Shah
Banker : HDFC
Auditor : Piyushbhai Doshi
Established : 1981

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Contact : 9426165994

E-mail zacfachem@yahoo.co.in

Legal Adviser : Mr. Parekhbhai

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HISTORY AND DEVELOPMENT OF THE UNIT

Every company has its own

history of development since its inception. In the
beginning period of time ZACFA CHEMICALS was selling
FINE CHEMICALS. Since that day, recently ZACFA
CHEMICALS is selling FINE chemicals. When ZACFA
company was started, it was selling its product to the local
level. But today we can see their products at many levels
in the countries.

ZACFA CHEMICALS was started as a partnership

firm in 1981-82, by Mr. N. B. Pathak. But today pathak sir
has retired from the company. Recently, company is run
by Manishbhai and Devendrabhai.
When it was started, company had
a only one product i.e. FINE chemicals. As a time passed,
their ability, efficiency increased and captured a medium
share in the Drug & Chemical market. after 2000
Manishbhai joined the company and Pathak sir was

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retired. Having experience of eight years Manishbhai is

always ready to adopt a new technology.

SIZE OF THE UNIT & FORM OF THE ORGANISATION

There are mainly two sectors i.e.

production and services sectors. They differ in
investment limits
1 – Small Scale Industries (SSI) :

small Scale industries are those

which have investment Between Rs. 25 Lac To 5
Crore. in short
while in the case of Service sector it
is Between
10 Lac To 2 crore
2-Medium Scale Industries (MSI) :

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Medium Scale industries are those

industries which have investment Between Rs. 5
Crore To 10 Crore .
while in the case of Service Sector
it is Between
2 crore To 5 crore.

3-Large Scale Industries (LSI) :

Large scale industries are those

industries which have investment more than 10 Crore

So, According to
above criteria ZACFA CHEMICALS is the SMALL SCALE
INDUSTRIES. As it has investment of Rs. 25 Lac.

 Form of the Organization

There are so many types of

business firm such as Sole Propritor, Partnership firm,
Joint Stock company, Co- Oprative Organisation, Public
co- opration etc.

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Partnership is a firm in which

two or more than two and less than 20 partners can be
involved to carrying out the same business. In that
context ZACFA CHEMICALS is a PARTNERSHIP
FIRM.

MANUFACTURING PROCESS

The manufacturing process of

the company is very easy and short too. All the steps are
taken by the help of the technology and machinery.
Generally, ZACFA CHEMICALS is not making any
finished goods. It is making raw materials for the other
industries.

Collection of raw material

Mixing

Drying

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Packing

1.Collection of raw material :

This is the first or beginning step of the production process. For

smooth running of the production process , adequate collection of the
raw material is necessary. ZACFA CHEMICALS collect its raw material
from all over india. Specifically , company raw material from Bhopal at
responsible prices.
Required raw material are Caustic Lye, Sodium Silicate , Soda Ash
Sea Bitten.
2.Mixing :
At this stage caustic lye and soda Ash are Mixed. Then after
2 hour sodium silicate and sea bitten are added in the former mixture
of the raw material. After mixing this raw material , they are put in the
boiler and are blended for half an hour.
3.Drying :

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After mixing the raw material and boiled for half an hour, they are drown
out from the boiler in order to dry them. Now the raw material ia ready .
But they have to dry in order to make them in a different size and in
4.Packing :
At this stage the raw material is ready for selling in the market
after making in proper packing. Company is selling their products in an
only one packet size i.e. a packing of 25 kg. All the product are packed
in a form of 25 kg.

PRODUCTION CAPACITY & QUALITY CONTROL

ZACFA CHEMICALS has a

production capacity of 1 TON per day
Quality of the product is very crucial
and inevitable factors for each & every business for growing
in a speedy way. ZACFA CHEMICALS is very conscious
regarding the quality of the product. All the chemical
industries have to maintain their quality according to the
norms and conditions of the IP(INDIAN PHARMACEUTICAL)
across all over the india. So, ZACFA CHEMICALS first of all
tests their products according to the rules and regulation of
the IP. They always sells standard products. They also take
opinion of the other buyers and potential buyers company’s
products.

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In the case of Exporting of the

raw material , Each & every companies have to maintain the
standard of the BP (British Pharmaceutical). So the company
also takes into account BP’s standard and norms and
conditions for providing the best quality.

ORGANIZATION STRUCTURE

OWNER

ASSISTANT
MANAGER

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PRODUCTION MARKETING FINANCE PERSONNEL

ACTIVITIES ACTIVITIES ACTIVITIES ACTIVITIES

TIME KEEPING SYSTEM

The time keeping system is the most

important part of the organization. Because with the
help of this function , the owner knows that how much
products will be produced in a day. This function is also
useful in determining the wages of their workers. And
also helps in determining the production cost.

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In ZACFA CHEMICALS
attendance is taken by the worker’s signatures. There is
one shift to work i.e. 09 A.M TO 7.00 P.M.
ZACFA CHEMICALS is very
conscious regarding time keeping system. All the
workers come in company in time and regular. If any
workers or officers go out the company , their outsider
time are listed down in movement register. At the end
of the day, owner checks this registers and sees the
movement of the employees. If genuine reason is
not found out , employee will be called by the owner
and to be punished In terms of whether the extra
overloaded work or monetary punishment. But
generally , they are punished with extra work loaded.

CONTRIBUTION OF THE UNIT TO INDUSTRY

AS a part society, every company has to

contributes more or less to its society. By doing some
kind of works, they can get favorable response from
society. By doing that, people will understand that
company cares for the public. Without contribution
company cannot exist for longer period of time in the

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market. When one firm is products, it is called

separate firm. But group of these firms called as
INDUSTRY.

ZACFA CHEMICALS is giving their

contribution to the export of the country. And thereby,
it helps the nation in becoming self reliant in the field
of chemicals & Drug industries. The company is
exporting in Pakistan, Kenya, Nairobi etc. Further,
company has always tried best to prove itself
effectively in terms of huge amount of production. And
it is going to make a new expansion plan.

EMPLOYEE SERVICES AND BENEFITS

Services and benefits are

given by the organization to employee, play a vital
role for motivating them to achieve their fully
performance. These services make the good
relationship between workers and management.
Mostly these facilities depend upon company’s
internal policy.

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ZACFA CHEMICALS
provides various types of facilities to employees
These are:
Housing facilities, Canteen facilities,
Medical facilities .Loan facilities, Entertainment
facilities, Uniform facilities, Bonus facilities, Library
facilities.
 Canteen facilities
The firm provides canteen
facility only to its workers working in the factory.
the firm also provide Tea and meal facility to its
employees at a very reasonable rate.
Medical facilities
Medical facilities also available in this
industry. The first treatment at the time of accident is given to
the employees. The company also takes the insurance policy
of employees. At the time of permanent disablement and long
diseases, the firm also provides medical treatment. ZACFA
CHEMICALS has its own physician.

 Loan facility

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This industry also provides the loan to their

employees for any important or urgent matter like marriage .
education
for employee’s children
ect. they provide loan without charging any interest.

 Entertainment facility
The firm also provides some type of
Entertainment facility to their employees. They arrange three days
tour in a year in firm’s private vehicle without taking any charges.
They also arrange show for their employees regarding .

movies. from which they can learn something new They watch
movies like business oriented . comedy oriented etc.

 UNIFORM FACILITY
All employees of the company
provided two pairs of uniform with stitching
allowance once in a year. And also shoes,
spectacles
(required person) are provided .

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 BONUS FACILITY

As ZACFA CHEMICALS believes

in providing economic support to it’s employees .
Company provides bonus to their employees on
Diwali.
in bonus scheme , they get some amount and
other things like tour packages.

 LIBRARY FACILITY
All employees are provided library
facilities like Newspapers, Magazines, rich collection
of the books on technical & non technical
Management etc. During lunch period of time
employees are provided time to read the
magazines and other books.

VISION OF THE COMPANY

Every companies have some

specific vision in terms of target. Vision helps the

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company in increasing the morale of the

employees working in the organization. In the
vision, company makes expectations i. e. by this
time of period we will complete our goal. E.g.
Gujarat government has a vision of 2010

ZACFA
CHEMICALS also has a vision of launching two
new products by the end of March - 2009. the
products are
Magnesium Hydro site paste and Aluminum
Magnesium Hydro site paste.

1.INTRODUCTION

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H.R.M. stands for Human

Resources Management. As per its name it is
very clear that H.R.M. means to manage people
working in the organization in a proper and
efficient way. Human Resource are very important
and precious assets for the company . Without
Human resources company can not work
smoothly.

According to the Edwin flippo

“HRM is planning , organizing, directing, and
controlling of the procurement development ,
compensation, maintenance separation of the
human resources.”

2.ORGANISATION OF PERSONNAL DEPARTMENT

personnel department generally acts in an
advisory capacity. It provides information , offer and

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suggestion and is not responsible for the end result.

Generally in a big firm many people are working
simultaneously. Because of that large numbers of people
, company will require a efficient management of their
employees . So that work can be done with effectively
and risk of duplication can be avoided. they are liable.
But As we know that in ZACFA
CHEMICALS all the activities are done by only one
person i. e. Assistant manager. So there is no any
particular organization chart of the company.
But the general chart of the personnel department is
an under :
Personnel
Manager

Clerk Process Time keeping

(Senior) In charge Clerk

Typist Labours

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3.RECRUITMENT , SELECTION & INDUCTION

 RECRUITMENT :
In normal cases, the recruitment can
be defined to put the right person at the right job.
“Recruitment means nothing but give awareness about job
vacancy. “ The success and failure of the company is mainly
depending on its recruitment. If we choose wrong person for
then performance of the company will definitely decline. It
can be done in two ways.
• Internal : Internal Recruitment means the persons who
are working in the company at presently, give them
promotion or transfer to filling required gap.
• External : External Recruitment means persons are
recruited with the help of external sources i.e. Advertising ,
Campus interview (placement) , Employment Exchange etc.
ZACFA CHEMICALS is recruitment
employees most of time by the External Sources. Company
gives advertisement in the newspaper, they also take help
from the Employment Exchange.

SELECTION :

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After identifying the sources of human

resources , searching for employees and stimulation
them to apply in the organization, the management has
to perform the function of selecting the right employees
at the right time. Selection is deliberating effort of the
organization to select a fix number of personal from a
large number of application . The purpose of selection is
to choose the best of suitable job candidate for each
unfilled job reject rest unqualified persons .
In ZACFA CHEMICALS
selection are not on the base of any written exams or
any interview. But it is made on the basis of the some
criteria like employees should have studied upto tenth.
Then after are they are trained.

 INDUCTION :
Induction is the process of receiving and
welcoming an employees when he first joints a company
and giving him the basic information. He needs to settle
down happily and start work. When a new candidates is
selected from the external sources. So the new comes
like “a bird imparted from its group.” so the induction
must be taken into account by the firm. We can say that
it is a welcome process. The idea of this process is to
make the feel free and generate enthusiasm in the new
come. Though it is small but meaningful. In the ZACFA

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CHEMICALS new employees are welcomed with warmly and

are given flowers, gifts etc.

4.TRAINING AND DEVELOPMENT

 TRAINING :
Every organization needs to have
well trained people to perform the activities that have to
be done. Every organization should provide training to all
employees irrespective to their skill. Employee training is
one of the fundamental operative functions for human
resource management. Training is the act of increasing
the knowledge and skill of an employee for doing a
particular job. Training is not something i.e. done once to
new employees, it is used continuously in every well run
establishment. The efficiency of an organization depends
on his ability to work and type of training he received.
Thus training can be defines as
“The organized procedures by which people learn
knowledge and/or skill for a definite propose.”
In ZACFA CHEMICALS all the
employees are given on the job Training. So that they
can be given practical knowledge regarding how to do the

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job. In chemical industry this type of training is helpful, As

there is a lots of risk in doing work with the chemicals.

 DEVELOPMENT :
Management development is a
systematic process of growth and development by which
the managers develop their abilities to manage. The
management development refers to developing an
employee in the areas of management, administration,
organization etc. In management development, the
company is to establish the program and the
development opportunities for its present and potential
managers.

In ZACFA CHEMICALS for the

sake of development of the employees, they are asked
suggestions for the company’s policy. Sometimes they
are given some extra work which can increase their
leadership quality and decision making traits. It is for a

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longer period of time . The company also focuses on

the future development of the employees by giving
them such types of responsibilities etc.

5. JOB DISCRIPTION

Job description is an important

document, which contains a statement of job analysis, duties and
responsibilities about the job . It is basically descriptive in nature
and it tells us what should be done? Why It should be done ?
How it should be done and where it should be done? Job
description also tells to the employee about their work.

In ZACFA CHEMICALS one

written document has been prepared that contains the complete
the job. Company has a separate file of job description.

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6.PROMOTION AND TRANSFER POLICY

• PROMOTION :
Promotion means advancement of an
employee within the organization. Promotion may take play
seniority, hard working ability or good. A promotion involves
a change from one job to another i.e. better in terms of
status, monkey and responsibility. Promotion is an activity
through which an adjustment in the size of an enterprise can
be made to cope with the changing situations.

According to Scott and cotheir “A

promotion is the transfer of an employee from one place
to another which pays more money and satisfaction,
respects etc. “

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In ZACFA CHEMICALS promotion is given

on the basis of the seniority Company believes that with
increase in the experience in the company , employee will
have got more knowledge regarding the job. And thas”s why
they should be given promotion in the company. On the part
of the promotion in the company As employee completes 3
year, salary will be doubled.

• TRANSFER :
Transfer is a change of job where
an employees gets the same amount of salary,
duties and responsibilities regarding first job. In
transfer, the employee gets the opportunity to
change the situation but other thing remains the
same. Generally transfer doesn’t involve promotion.

But in the ZACFA

CHEMICALS there is no any Transfer Policy.

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7.PERFORMANCE APPRAISAL

Performance appraisal is
a method of evaluating the behavior of employee in
the work spot, normally including both the aspects of
job performance of the worker but also his potential for
development. Performance appraisal influences the
employee’s future level of effort, activities, results etc.

It is inevitable that some

evaluate the performance of the hired personnel twice.
Thus, performance appraisal is a method of measuring
skill, ability, etc. of the employee. It is a process of

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estimating the value, the excellence or status of some

person.

In the ZACFA
CHEMICALS performance of the employee are
measured on the basis rate system and employee’s
productivity.

8.WAGE AND SALARY ADMINISTRATION

Organization expects efficient performance form
their employees in order to contribute to the attainment of the
individual goals. Organization reward their employees who
contributed to the achievement of goals. This reward includes
wages, salary administration is the essentially systematic
approach to the problem ensuring that employees are paid
in a logical and fair manner. Wage and salary administration
should be controlled by some proper agency.

Wage refers to the hourly rate of return

, Which are paid to the workers for their working in the
company. While refers to the weekly or monthly rate of return,
which are generally paid to the administrative workers. The

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main purpose of the salary & wage administration is to

establish and maintain an equitable wages and salary
structure.

In ZACFA CHEMICALS , most of the

employees are on the administrative. Hardly, some labours are
hired on a contract based. As they complete a job,
immediately they are paid their wages. In the case of
administrative employees are paid their salary on 5th and 6th
date of each month. The average salary of the employees in
the company is the Rs.6000.

9. WORKING OF E.S.I. SCHEME

Employee state insurance (ESI) scheme is

application in favor of the company right from its
establishment. It gives benefits in following events.

 Accident event

 Sickness

 Specified reason when an employee can at work

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25% are credited to E.S.I. scheme. Under this scheme

employees get following benefits.

 Employee can get free medical service in E.S.I. hospital.

 In the case of injury or sickness , 75% of the salary are
given as a medical benefits.

 There is three month maternity leave for women workers.

In the case of death of employee

his/her family members gets pension and compensation too.
Under this scheme , employees have to contribute 1.75% of
their total salary while the company contributes

4.50% of the employee’s salary. The total 6

employee state insurance (ESI) is a scheme that
gives benefits to employees. It is the insurance
taken for the employee by the organization. This
scheme provides security while the employee is one

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work or service in the unit. It defines the accidents

in the monitory terms.

As we know that ZACFA

CHEMICALS is concerned with the chemicals ,
electronic etc. Further, companies have 12 workers.
So this scheme is applicable in the company.

10. PROVIDENT FUND SCHEME

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Provident fund means

collection of money from the salary of employees and it will
be paid at the time of retirement , disablement or any other
occasion. This scheme was started in 1962, and spared in
all the industries . Any company having more than 50
workers can joint this scheme. Under this scheme ,
employee have to contribute at 12 % of their total salary.
And company adds another 12 % in it. Thus , employee
gets totals of 24 % as a provident fund.

This provision is made for the

employee’s future life. By this scheme employees get some
financial security for their old age. This is statutory scheme
means for welfare of permanent employees and their family
members. The employees of the company also have a loan
have a loan under this scheme. This loan is given according
to rules & regulation of the company.

In ZACFA CHEMICALS there are no any

provisions for provident fund.

11.GRIEVANCE HANDLING PROCEDURE

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A Grievance is assign of employee’s

discontent with job and its nature. The employees has got
certain aspiration and expectation, which he thinks, must be
the organization where he is working. When the organization
fails to satisfy the employee need, it develop a feeling of
dissatisfaction.

It is not possible that every human

being live peacefully together in the society. The same thing
happens in the company where all are working together. Thus,
grievance is caused due to the difference between the
employee expectation and management practice. Hence, a
grievance may be viewed as complex psychological
phenomenon calling for human rather than any procedure or
legal action in its analysis and solution.

In ZACFA CHEMICALS hardly

grievance arises. If any grievance arises, manager of the
company soon tries to solve it in a satisfactory manner.
Sometimes , help of the owner are also taken to tackle the
problems.

12.COLLECTIVE BARGAINING AGREEMENT

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Collective bargaining is a
process in which the representative of the labour
organization and the representative of the business
organization meets and attempt to negotiate a
contract or agreement. Collective bargaining is used
for compromising the conflicting interests of
employees and employer. It is a method by which
trade unions protected of improved the condition of
their member’s working lives.

It is called collective because the

employees as a group select representative to meet
and consult with management. In each and every
unit, employees have always demand for high salary,
promotion, protection etc. Collective bargaining helps
in ironing our many differences between workers and
management ironing.

In ZACFZ CHEMICALS
there is no any collective bargaining agreement. As
and when any problem arises out, company solves it
them selves.

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13.TRADE UNION

The general view of trade union

is that, this is a group of employees or workers formed
to project the interest of the employee. But according to
section 2(B) of the trade union Act of 1926.

“A trade union is any combination whether

temporary of permanent formed primarily for the
purpose of regulation between workman & employees
& or for imposing restrictive condition to the conduct
of any trade or business and include any federation
of two or more trade unions.”

The union workers for the satisfaction

of their member. Workers join trade unions to achieve
their objectives, which is they couldn’t achieve individually.

In the ZACFA CHEMICALS there is no any trade

union exists.

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14. PERSONNEL RECORDS

A record is piece of
writing or a chart, which provides ready information and
which preserves evidence for future reference or use.
Personnel records provide the information about any
employee when the need of it arises.

Records provides tangible

evidence of the past activities of an organization. It also
provides information relating to various aspects of human
resources of an organization viz, wage and salary,
productivity, social security, absenteeism, employee welfare ,
job satisfaction turnover etc. It includes Name Address, date
of appointment, Date of birth, Educational qualification,
Performance, Hobbies, Telephone no, photograph etc of
each employees.

Company maintains the

personnel records of n the employees in computerized
manner. it is also updated as a employee comes in a
company or goes out from the company.

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1. INTRODUCTION

Each and every business

organization has one of the most essential activities i.e.
Marketing Management. The main two goal of the
marketing management to attract new customers by
providing superiors value and to keep current customers
by delivering satisfaction.

Definition

“Marketing is a social managerial

process by which individuals or groups obtain what
through creating and exchanging products and value
with other.”

In a fast changing and challenging

environment, marketing has been viewed an on going or
dynamic process involving a set of interaction activities
dealing with a market offered by producers on the basis
of reliable marketing anticipation. Thus, we can say that
the success of every company depends upon some extent
to its favorable marketing management.

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2.ORGANIZATION OF MARKETING DEPARTMENT

Organization structure refers to the
framework by which employees of all organization are
related with each with other. It specified the authority &
responsibility of personnel working together. the structure
of department also indicates that who is the superior
and who are the subordinates.
As we know that ZACFA CHEMICALS is a
partnership firm and in this firm all the activities are
done by a single person who is a manager of the
company. So there is no any special department of
marketing management in the company.
But the general from of the department is as under :

Managing
Director

Marketing
Manager

Assista Salesmen Salesmen

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HITESH NAKRANI

3.PRODUCT PLANNING

The product planning is the

tangible and important single component of the marketing
program. Product planning is the result of co-ordinate efforts
of a number of specialists. Product planning can assure
normal rate of return on investment and continuous growth of
the enterprise. Thus product defined as, “The act making out
and supervising the search, screening, Development and
commercialization of new products.”

To fight with the competitors and being

stable in the competitive market, it is necessary for every
company to think about planning trough which company
creates demand of their products.

ZACFA CHEMICALS plans for its

products on the basis of demand of raw materials in the
market. Majority sales volume of ZACFA CHEMICALS comes
from the direct selling to the industries. So, company plans
for its new product on the basis of order of the other existing
industries or potential buyer industries.

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4.MARKET SEGMENTATION
Marketing consist of buyers
differ in once or more respects. They may differ in their
Wants, needs, purchasing power, buying, attitudes and
geographical locations. This varied and complex buyer
behavior is the root cause of marketing segmentation. A
market segment is a meaningful buyer group having similar
wants.
According to Philip kotler, market segmentation
means, “Dividing a market into distinct groups of buyer
with different needs, characteristics or behavior who
might separate product or marketing mixes,”
Market segmentation is a
method for achieving maximum market response from limited
resources. In the sense, market segmentation is the strategy
of “divide and conquer.” Thus, such adequate segmentation is
the product highly affordable at time. ZACFA CHEMOCALS
has segmented markets on the basis of both Age and geographic.

• Age :
As we know that ZACFA CHEMICALS is in the
business of Drug and Chemicals in the context of age, company
sells their products on the basis of age.

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E.g. For the children a low power of raw material is used to

make drug.
While for the adult high power of raw material is used to make
drug. This so because of the effects of the drug are different people.

• Geographic :

Company has divided its market into various

geography
like Ankleshwar, Bhuj, Banglore, Pakistan, Kenya,
Nairoby, Africa etc. The main objective of the
company of geographic segmentation is to spread
out to all over the potential markets.

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4. PRICING POLICIES

Sale is the only income for

any business concern But “price is the main factors.
Whish affect the sale or market To determine price of any
product is too much curial problem for any organization,
because success policy must be adopted to have maximum
sales revenue. Through proper pricing policy, the marketing
objectives and corporate goals can be achieved. Price is
the variable factor determining the revenues or incomes .
Procedure have to take decisions about pricing under
various circumstances. And pricing also defers according to
the nature of the product, durability, financial resources, and
extent of competition in the market. Thus pricing policy

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provides the general framework within within which

managerial decisions are made on pricing
ZACFA CHEMICALS has adopted
the Cost Plus Pricing Policy . Company directs sells its
products to the industries without use of any middlemen . So
, the commission of the middlemen will not arise.
Consequently, the price of the company’s products will be
lower compare to other product’s prices.

6.CHANNELS OF DISTRIBUTION

Distribution channel is one of the vital

point of marketing. In the field of marketing, channels of
distribution are rout or path way by which good & services
flow or move from production To Consumer.
Every Organization tries to forge a proper
distribution channel in the making of a product and services
available available for use
for the consumers. It depends on the nature of the products and
company

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policies

Channels of Distribution

Manufacture

Agent & Dealer

Wholesaler

Retailer

Consumers

Direct Channel :

 Direct Channel is the way by which Company sales direct

to the

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consumers without helping of any middlemen , salesmen

or any other intermediates.

Indirect Channel :

 Indirect Distribution channel is the way through which

company sales its products with the help of middlemen ,
Agents, Dealers wholesalers Retailers etc.

ZACFA CHEMICALS sells their products

through the
direct channels of distribution That means directly to the
consumers
(industries). Company uses its own transportation to
reach products to the industries.

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7.SALES PROMOTION
Sales promotion consists of short –
term incentives encourage purchase or Sales of a product or
services . Where advertising offers reasons to buy a product
is necessary. it is not expenditure but is an investment, whish
company can pay marketing effort.

Sales promotion is an important in marketing to

lubricate the marketing efforts . Sales promotion is a
marketing activity other than advertising, publicity and
personal selling that stimulate consumer purchasing and
dealer effectiveness in Sales promotion is the bridge or a
link covering the gap between advertising and personal
salesmanship. it is an integrated part of the marketing
efforts.
ZACFA CHEMLCALS gives credit period of
60-75 days. In all the industries credit period plays a very
important role due to shortage of finance. Company also

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gives cash discount of 5% on cash payment. Due to such

type of cash discount, buyers are included to pay less
payment than actual.

8. ADVERTISING

The modern age is an era

competition. To stand with competition, every company
has to think of new user of product or they have find
out new buyers. For their purpose advertising is the
most important tool. Advertising is activity by which
visual or oral messages are addressed to the general
public at a time. Advertising desires of new products.
Modern advertising informs guides , educates as well
as protects buyers so that they can buy intelligently
and raise their standard of living.

Advertising defines as “any paid

form of non- personnel presentation and promotion
of ideas, goods or services by an identified
sponsor.”

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ZACFA CHEMICALS gives

their advertisement in magazines such as Global
Enquiry magazine, Trade India .com, Dainik Bhasker
which are famous magazines.

9.MARKET RESEARCH

Market research is systematic and

intelligent investigation or study of “who, where, when, why, and
how” of actual and potential buyers. Marketing research involves
studies relating to buyer’s behavior, product of brand
preferences, product or brand usages, advertising awareness,
sales promotion, dealer’s and competition and so on.
All the issues of business
houses can’t be solved on the information collected from various
sources. That is why company relies on marketing research
program and collect information to have sound decisions.
“Marketing research is the systematic
gathering recording and analyzing of date about problems
relating to the marketing of goods and services.”
ZACFA CHEMICALS researches on the
basis of demand of the product in the market. Company
receives directly orders from it’s buyers i.e. industries. So,
company doesn’t need to make more marketing research. But

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when company seeks to introduces new product into market,

company researches about the opinion of the buyer.

1.INTRODUCTION
Blood is very necessary and
vital for human life Finance is very necessary and vital for
business life . Without finance, business can not be
possible . So financial management is an integral part
of overall management. Financial management
provides a conceptual and analytical framework for
financial making. Finance makes the wheels of business
to run business smoothly.

Financial management is that

managerial. activity which is concerned with the planning
& controlling of the firm’s financial resources. The
financial management covers both acquisition of funds as
well as their allocation.

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Financial management can be broken down into three

major decisions.
I. The investment decisions
II. The finance decisions
III. The dividend policy decisions

2.ORGANIZATION STRUCTER OF FINANCE DEPARTMENT

The main work of finance department is to

manage records systematically. because the responsibility for financial
management are spread throughout the organization and it plays a
vital in overall management. it is essential for every organization to set
up a sound & efficient organization for the finance function.
As we know that in ZACFA
CHEMICALS all the activities i.e. marketing , production, human
resources and financial matters are handled by a single person who is
assistant manager of the company. So, there is no any special
department of the finance management in the company.
But the general chart of the finance department is under :
Managing Director
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Finance
Manager
Computer Accountant Cashier
Operator

Typist Assistant

3.FINANCIAL PLANNING
Financial planning means to plane the
finance, which will be needed in future. planning is one of the
ways, which can reduce the risk in future. Financial planning
is a continuous process that can not be stopped.
with help of proper planning company can
achieve higher degree of profit with great success . So the
company, which has adopted proper financial planning, will
never face the problem related to finance and is being able to
reach the top. The contingency of finance may occur in any
industries due to improper financial planning. To avoid this
type of problem, any organization has to prepare a proper
financial planning.
The need of finance can be different in different
situation. The need of finance can be,

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• Short term finance : Within one year

• Medium term finance : One year to five years

• Long term finance : More than five years

ZACFA CHEMICALS plans both short term as well

as long term. company receives so many orders in advances.
So, company have to make a short term financial planning.
Thus , the proportion of short term planning in the company is
larger than long term planning .

4.CAPITALIZATION
Capitalization is the lifeblood of
business. Without it a company can’t work. The
capitalization is the addition of Share capital, Borrowing
Capital, Debenture capital, and Pre reserve. The
capitalization can be of three types :

1. Over Capitalization :
Over capitalization is the situation when
the earning is less than its capital investment. A

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business is said to be over capitalization when a fair

return is not realized on capitalization.

2. Under Capitalization :
Under Capitalization is the situation when
the Earning is more than the capital investment

3. Fair Capitalization :
If the industry has enough finance according to
its requirement then it is called fair capitalization. It is
very essential for a business firm to have fair
capitalization. Shashi industries have fair

capitalization because it has adequate capital. The

financial manager has to maintain the fair position of
capital and it is maintain. The position of finance is
strong of shashi industries at position.

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In the ZACFA CHEMICALS, there has

never been over capitalization . But in the year 2000
there was a under capitalization situation because of
the efficient utilization of resources and prosperity
period. Recently, in the company situation is optimum
capitalization which shows company’s efficiency.

5.CAPITAL STRUCTURE

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Capital structure refers to the mix of

the long term sources as well as Debt funds, Loans,
Equity, Preference shares etc.
The success of any company or the credit
of any company depends on the capital structure. It
shows positions of the company. It is also useful for
public who have invested their money in the company.
It means it indicates shareholder’s wealth.

The capital structure of ZACFA

CHEMICALS is very simple. Company has not taken any
secured loan or unsecured loans, there is no any
borrowed capital. Company has its own capital i.e.
ownership capital.

6.MANAGEMENT OF WORKING CAPITAL

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Working capital Management is

concerned with problems that arises in attempting to
manage the current Assets. The current liability &
interrelationship between them. Sufficient working
capital is required to sustain sales activity in the
organization.

The working capital is consisting of three things :

•Investment

•Receivables

•Cash & Bank

Inventories :

Inventories is composed of assets that will be sold in the

future in the normal case business operations. Inventories as a Current
assets, the assets which firm store as a inventories in anticipation of
needs are Raw materials & finished goods.

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Receivables :-

The Receivables represents an important

components of the current assets of a firm. it may be defined as “Debt
owned to the firm by selling of the goods or services to any in the
course of business.

CASH & BANK :

Cash & bank management is one the key areas of

working capital management A part the fact that it is the most liquid current
assets. Cash is the common denominator to which all current assets can be
reduced because the other major liquid assets. i.e. receivable & inventory get
eventually converted into cash.

A firm is well advice to hold adequate cash balances but

should avoid excessive balances. So cash budgeting is a device to help a firm
to plan and control the use of cash.

ZACFA CHEMICALS has

invested 60 % of its total assets in working capital . Company maintains
adequate stocks of raw material so that orders can be finished and provided
in time. Company also takes care about the credit period given to its debtors.
So that operating cycle of the company can be run with properly and smoothly.

7. PROFITABILITY & DIVIDEND DISTRIBUTION

The operating of a firm and its ability to ensure adequate returns
to its shareholders depends ultimately on the profits earned by
the firm. High degree of profitability makes the organization in the

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top. High profitable business attracts people to invest their many in

the firm and it also attracts other financial institution that is directly or
indirectly related with the organization.
DIVIDENDS DISTRIBUTION:
Dividends refer to that portion of a
firm’s net earning’s, which are paid out to the shareholders. Since
dividends are distributed out profit. the alternative to the payment of
dividends is the retention of earning/profit.
A major decision of financial
management is the dividend decision in the since that the firm has to
choose between distributing the profit to the profit to the shareholder &
plugging They back into business. The choice would obviously hinge
on the one the maximization of shareholder’s wealth.
ZACFA
CHEMICALS has a ownership capital So, profit of the company are
distributed among the partners of the company The ratio of the profit is
1 : 1 .that means whatever profits are generated, are distributed in a
50 % 50 % . As we know that company has not any borrowed capital.
So , company doesn’t need to pay any dividend.

8.CAPITAL BUDGETING

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Capital Budgeting refer to

total process of generating . evaluating . selecting and
following of capital expenditure alternative. The firm allocate
the financial resources to new investment proposal. The
capital budgeting decision means a decision as to whether or
not money should be invested in a long term project In any
business. the commitment of funds in a land. building.
equipments. debtors and other types or assets must be
judiciously met.

This depended on company

that which type of methods we should use. In ZACFA
CHEMICALS . NPV methods are used for capital expenditure
decisions.

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CONCLUSION

At last . I would like to express my

feelings towards ZACFA CHEMICALS . After visiting the
ZACFA CHEMICALS I came to know that how they are
working , the workers who are working in ZACFA
CHEMICALS . are doing their work very fast , I have never
seen before and I also felt that they are speedy .

At the conclusing part ,

I would like to express my deeply feeling after preparing
this project . I came to know that how business is running .
All the department are working vary excellently in ZACFA
CHEMICALS . really , it is my unforgettable experience
that give me full knowledge.

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BIBLIOGRAPHY

Sr. No Subject Books name Author

1 Human Resource Text & Case K. Aswathappa

Management

2 Marketing Principle Kotler

Management Of &
Marketing Armstrong

3 Financial
Management Finance S.P. Shah

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ZACFA CHEMICAL