PROJECT

PRIME VENEERS LTDKANNUR, KERALA

Internship Training Study Report

Submitted in the partial fulfillment of the course of

Master of Business Administration

Submitted By

Avinash Vijayan

3 rd sem , MBA

4SN09MBA10

SRINIVAS INSTITUTE OF TECHNOLOGY

VALACHIL

CHAPTER - 1

INTRODUCTION

Starting of the Prime veneers Limited was the land mark of plywood industry in

India.Plywood is a glued wood product,built of veneer in such a manner that the grains

of each veneer is at right angles so that of adjacent veneers. The modern development

of various product was possible by improvement of glues especially by the producing of

synthetic resin adhesives.

Plywood is a panel product manufactured by gluing together two or more veneer

to both sides of veneer respective products are all veneer plywood and solid core

plywood. This is used for boats, furniture and many other products.

The first manufacturing of veneer was in ancient Egypt around 3000 B.C. it was

made by hand sewing and was used for making costly furniture for kings and princes,

combined with the pieces of other materials. The first veneer might have been

upgraded in Europe by French mechanic in 1812. The first veneer machine came from

French in 1834 and peeling in 1918. The first factory for manufacturing veneer was

established in Germany in the middle of 19th century. In the last decade this industry

achieved tremendous growth and quality became better. Now a rapid development is

taking place in this field.

The Prime Veneers Ltd, the largest intergrated wood processing complex in

South India was strated by in the year 1945 by Mr. T.P ABDULLA, who is well known in

the plywood industry, especially in Indian Plywood industry.Mr. T.P ABDULLA, the

founder-Managing Director of PVLtd was a dynamic personality who had achieved the

highest caliber.

LOCATION:

The Prime Veneers Ltd is located at Baliapatam in kannur. Kannur is well

connected to other towns and cities through railways and roadways. It has all important

facilities like banking and transportation.

ORIGIN:

PV Ltd was established in 1955, the company started manufacturing of swan

timber and plywood on a modest scale with a few indigenously and landed manchinery.

Due to the progressive outlook and relentless efforts PV’s founder Shri, T.P ABDULLA,

a doyen of progress over years and business expanded to its present status and today

it is one of the biggest industry in South India with employee strength of 400.

GROWTH:

The manufacture of plywood was stepped up steadily by addition of new

machines, mostly imported. The company also diversified from tea cheats and

commercial plywood to decorative plywood, black board, flesh doors, shuttering and

marine plywood, aircraft plywood etc.

An industrial license was obtained in 1974 for manufacture of densified wood

with a capacity of 2000 M.T. per annum. Since then the company has been producing

components of densified wood. In 1974 a plant for manufacture of furniture was added.

A reverse osmosis based desalination plant, the first in kerala with most modern

technology to purify brackish ground water and sea water, was successfully

commissioned in the year 1996 thus over coming the acute shortage of water required

for production during summer.

CHAPTER – 2

COMPANY PROFILE

OBJECTIVES OF THE COMPANY:

1) To purchase and acquire all machinery stores and other movable in relation

to the production and manufacturing of veneers and plywoods, a complete set

of which havebeen purchased from the supply department of government of

india and with a view to enter into and adopt the agreement for the sale there

of referred to there in for the acquisition of necessary site for the construction

of factory buildings and of the appurtenances their to and carry on the same

into effect with or without modification.

2) To establish erect equip work and maintain the factory for there production of

such veneers and plywoods of all sizes and shapes and manufacturing there

from household furniture, window and door pannels and frames and any other

articles which could be produced there from and which company may choose

to produce there from and also trades its all kinds of plywood and to do

accounts which may be necessary or useful in connection with the carriage

and improvement of the trade.

3) To buy, sell, manufacture, repair, exchange or hire, import or export, and deal

in all works. Plants, machinery, tools, utensils, procedures, materials,

substances, articles, chemicals and all things capable of being used in any

business as for said either in india or elsewhere or persons having dealings

with the company .

4) To start establish and carry on in connection with any of the trades of

business independently there of any trade whether manufacturer or otherwise

which may seem to be capable of being conveniently caused or in connection

with any of the business.

5) To purchase , taken on lease,hire or otherwise acquire any land or lands and

any right of way of rights, privileges, and concessions and any factory,

machinery implements, tools, hired and dead stock stores effect and other

properties real or personal, immovable or movable to further the objects of

the company as set fourth in memorandum of association.

MANAGEMENT:

At the date of adoption of the articles of association the business of the company

is subject to the supervision of the board of directors be carried on by Sri. T.P

ABDULLA in renewal there of with the approval of the central Govt. shall be deemed

part of these articles.

The management and staff are classified into 5 ranks. They are;

M1,M2,M3,M4 and M5.

The supervisors are divided into 5 ranks. They are;

S1,S2,S3,S4 and S5.

The workers are classified into 3 categories. They are;

Semi skilled, Skilled and Highly skilled.

DIRECTORS:

1) The number of directors should be not less than five and not more than 15

including the ex-officio directors and the nominee director. Only individual can be

the directors.

2) So long Mr T.P ABDULLA is the director of the company,Mr.K.P HAMEED is not

liable to retire by rotation while he is the MD of the company and shall be entitled

to hold office. He is removed in the manner ,discribed in the agreement between

the company and the said Mr. K.P HAMEED now existing and that may be

renewed in such manner from time to time.

3) As on when an ex-officio director vacates offices for any cause whatever the

director may feel the vacated office by appointing other ex-officio director in his

place, notice of such removal should be given to the members of the company.

4) Directors shall not be required to hold any qualification shares in the company.

MARKET:

Due to the high standard of quality maintained by the company, the products of

the company have found ready acceptance in markets both in India and abroad. The

company has succeeded in arranging manufacturing programs on the basis of firm

orders that flow in regularly used for manufacture of T.V. Cabinets, bus bodies, boat

building, building construction, Railways, Furniture industry, etc.. The hardboard is used

for partition walls, feels ceiling, furniture industry, packaging, automobile industries,

shoes manufacturing etc. The densified wood is being supplied to the industrial

consumers in the form of filter plates, chequered boards for flooring in buses and

railway coaches, and to manufactures of high voltage electrical transformers, switch

gears and various other industrial products in the electrical, chemical and textile

industries. The DAP compounds are being used by the electronic and molding

industries. The furniture manufactured by the company is being absorbed by the

market and adorns drawing rooms, bedrooms, schools, offices gardens etc. The

products of the company are I being exported to Germany, Holland, France, U S A,

Sweden, UK, West Asia, Sri Lanka and South East Asian Countries regularly. Pre-

compressed pressboard are particularly used for electrical and transformer insulation

purposes .

CHAPTER – 3

PRODUCTS OF THE COMPANY

Products:

The company produces traditional, general-purpose commercial and decorative plywood. In addition to that , the company proudly presents an exciting range of special plywood panel and materials for specific application. The products of the company are;

i. FIRE RETARDANT PLYWOOD: This plywood is ideal for residential and non-residential building, transportation vehicles.

ii. AIRCRAFT PLYWOOD: Aircrafts plywood used for gilders, small aircraft manufactures. These plywoods are available in 0.8mm thickness and above. These ply woods are also available in diagonal constructions for extra flexibility. It is used for the production and maintanance of aircraft.

iii. MARINE PLYWOOD: Marine plywoods are used in boat buildings and sterrss ring industry users. This plywood ensures smooth sailing of vessels in the harsh marine environment.

iv. RESIN COATED PLYWOOD: Boiled Water Resistant(BWR) plywood is coated with special grade phonemic resin. Resistant to water and material abrasion, phonemic resin coated plywood import a superior finish to the concrete surface and avoid the tedious and expensive plastering operation.

v. FLOORING BOARDS: These boards haveben developed using veneer hardboard laminates. The boards have been given social water repellent treatment and the unique is that they can be cut to any size to suite the requirement of the floor.

vi. SUPER BLOCK BOARDS: Bonded with phonemic resin to reduce by special process with extra care. This product is free from warping and surface undulation.

vii. FURNITURE: WIP specialises in exquisite and molded plywood furniture, which will exceed your expectations regarding strength and durability. WESTIND Furniture is manufactured utilising the finest building materials available in the market.

viii. COMPERG MOLDED CHAIR SEATS : For rail coaches, auditorium, theaters and restaurants.

ORGANISATIONAL CHART

The organisation chart shows the authority and responsibility relationship of

personnel in an organisation. The authority and responsibilities of different managerial

personnel in the company is clearly shown in an organisation chart. It is a bird eye view

of the authority responsibility relationship in an organisation. Organisation chart of

Prime Veneers Ltd is shown bellow;

ORGANISATION CHART

THE PRIME VENEERS LIMITED

MANAGING DIRECTOR

Executive Director

General Manager

(Technical)

Chief Accounts Officer

Development Manager

Workers ManagerPlant Manger

DWD Executives

Plywood, Flush Door, Block BoardDensified wood products

HB/PEP Store Electrical

Sales Manager

Central Excise

Marketing Mgr.

Technical Mgr.

Company secretary

General Manager

(Administration)

Quality mgt. syste

Purchase Executive

Import Export

CHAPTER – 4

DEPARTMENTAL STUDY OF PRIME VENEERS Ltd

The Prime veneers has different functional departments which control different

functional activities of the organization. Each department has one departmental heads

that has the ultimate control over the department. There are mainly 5 departments. The

important departments are as follows;

1. Production department.

2. Human Resource department.

3. Sales department.

4. Marketing department.

5. Finance department.

CHAPTER- 5

PRODUCTION DEPARTMENT

Production involves conversion of raw-materials in to finished goods. It can be briefly explained as follows.

In the Prime veneers Ltd. the raw materials that are used to the output is steam

wood, and chemicals. After Introducing these raw materials to a series of process the

finished goods are obtained PV Ltd produces three raw materials to a series of process

the finished goods are obtained. PV Ltd produces there category of products, namely,

Plywood,

Hardboard

Furniture.

The wood that is required for the production is acquired from both local as well

as international markets.PV Ltd imports wood from Malaysia, South Africa, South

America etc. In India wood is obtained from Kashmir, Mysore, Wayanad, Andaman,

Irritty.PV’s processing line is made up of Italian, Germany and Swedish machinery.

INPUT

(RAW MATERIALS)

CONVERSION

PROCESS

OUTPUT

(FINAL PRODUCT)

Production process of PLYWOOD:

The entire production process consists of a series of operation carried out

sequentially to obtain the final product. The production process of plywood in PV Ltd

can be briefly summarized as follows:-

1. Log yard :

Log yard is a lakes or reservoirs where the timber logs for production are stored . The

water Act as preservers and help in maintaining the wood with out drying .The stored

timber are manually or automatically collected and supplied using the belt conveyer .

2. Cross cutting :

Cross cutting is the process of cutting the timber loges in to various lengths .Cutting is

done by large saw machine .The timber is cut in to lengths of normally 3 feet to 8 feet .

3. Boiling :

Timber is normally hardwood .So in order to soften the timber log it is boiled in

boilers for a minimum of 24 hours @ 80 to 1600 c steam .boiling is mainly done to make

the cutting and peeling of logs easy.

4. Peeling:

This is an important process .the boiled logs are put in to peeling machines and

peeled . The peeled layer is rolled up on to rollers .These layers are called as veneers .

5. Clipper:

The rolled up veneer is passed through clipper machines and cut in to various

sizes .Cutting is done to separate the various types of veneers (face or core) or with

damage ,thickness etc.

6. Drying:

The clipped veneer are wet ,to dry them these veneers are passed through hot

steam dryers .Veneers are dried depending up on their thickness. Steam is passed at

high 0 c and veneers is passed through this hot steam. Different thickness veneers are

dried at different time durations .

7. Edging & Joining :

The dried up veneer edges are always irregular .It is edged on all sides using

machines to make the sides regular and then the sides are glued. The glued veneers

are placed together and passed thorough a machine to join together .

8. Gluing :

The is a process where the core venner is glued uniformly and equally on both

sides .The glue roller machine in used for spreading of adhesive .Both side of the

veneer can be glued at a time .The machine consists of two rollers covered with the

rubber and minimum thickness of veneer that can be passed in this machine is 0.3mm.

9. Assembling :

This is an important process in plywood manufacturing minimum of 3 ply is

required 2face and 1 core .Face veneer is placed across the core veneers grain.

According to thickness of plywood required the size of veneer and no of cores also

changes .Every plywood consists of odd no of veneers. For finding the thickness of

veneers in plywood the formula is.

Thickness of veneers = total thickness/ no veneers

10. Free Press:

The assembled board is given a free for sticking up the layers together .The free press

may vary from 20-30 min depending on the adhesives used. The free press is done

from the simple kemp press

11. Hot Press:

This is another important process in plywood manufacturing . After free press

the boarx is pressed under high pressure and temperature varies with different types of

plywood .temperature is used for drying the resin and pressure for .reducing the

thickness.

12. Trimming:

Trimming is the process of cutting the plywood into required sizes .It is used

to straighten the edges of the plywood .Usually the board is assembled with 1-2 inch

allowance in both lengthwise and widthwise. In trimming machine one set of circular

saws are used for cutting the edges .One is fixed and other moves.

13. Sanding:

Sanding is done in order to smoothen the surface and get the finishing .This

is done by passing the board through a sanding machine . There are 3 types of sanding

machine

1 Drum sander

2 Belt sander

3 Wide belt sander

14 Finishing:

Finishing is the process of giving the final touches the board by cleaning off the

damages on the face veneer .Fine splits and cracks on surface of the plywood is filled

with French choke powder of airtight powder.

MANUFACTURING PROCESS OF PLYWOOD

CHAPTER - 6

LOGYARD

CROSS CUTTING

BOILING

PEELING

CLIPPER

DRYING

EDGING AND JOINING

GLUING

ASSEMBLING

FREE PRESS

HOT PRESS

CONDITIONING

TRIMMING

SANDING

FINISHING

HUMAN RESOURCE DEPARTMENT INTRODUCTION:

The effective management of an organization involves planning, organizing,

staffing, leading, co-ordinating, monitoring and controlling the 4 M’s;

Men

Machines

Materials

Methods

The 4 M’s are known to be the supporting pillars of an organization. All the four

M’s are equally critical. However, the Human Resources are found to be the deciding

the factor, for they decide the effectiveness of the other.

HRD Policy:

It is PV Ltd’sendeavour to select, place, develop and maintain competent

personnel at all functional positions within the organization.

HRD Objectives:

Define job requirements

Evaluate and select the right personnel

Provide career plan for employees

Identify training needs and provide them

Develop personnel skills through job enrichment.

Occupational safety and health, conducive work environment and Personnel welfare

is planned for and implemented. The current editions of the following statutory/

regulatory requirements guide PV Ltd;

1. The Companies Act

2. The Factories Act, 1948

3. The Industrial Disputes Act, 1947

4. The Minimum Wages Act, 1948

5. Payment of Wages Act, 1936

6. The Contracts Labour (Regulation & Abolition) Act, 1970

7. Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

8. Employees’ State Insurance Act, 1948.

CLASSIFICATION OF WORKMEN :

Workmen shall be classified as: -

a) Permanent workman: A permanent workman is a workman who has

been engaged on a permanent basis and includes any person who has

satisfactorily completed probationary periods of six months in the same or

another occupation in the industrial establishment including breaks due to

sickness, accident, leave, lock –out, strike (not being illegal strike) or

involuntary closure of the establishment.

b) Probationer: A probationer is one who is provisionally employed to fill a

vacancy and who has not completed one year’s continues service in the post.

A permanent workman employed in a new post as a probationer may at any

time during the probationary period be retrieved to his old permanent post.

c) Badly or Substitute: A Badly or substitute is one who is employed in

the post of a permanent workman or a probationer who is temporarily absent.

d) Temporary workman : A Temporary workman is one who is engaged

for work which is of essentially temporary character.

e) Casual workman: A casual workman is one whose employment is of a

casual nature.

f) Apprentice: An Apprentice is a learner who may be paid or unpaid during

the period of his training. I shall not be obligatory on the part of the company

to provide an apprentice with work in the factory after his training.

LEAVE AND HOLIDAYS :

National & Festival Holidays with wages will be allowed to the workmen as

provided for in the Kerala industrial Establishment (National & Festival Holidays)

Act.

Leave for sickness, maternity and accident will be allowed to the workmen as

provided for in the Employees’ State Insurance Act.

A workman may be granted casual leave of absence without wages for 10 days in aggregate in a calendar year

PERSONNEL AND WELFARE FUNCTIONS

1. Job Design.

A Job may be defined as a “collection or aggregation of tasks, duties,

responsibilities which has a whole is regarded as a regular assignment to individual

employees’. Job Design is the division of the total task, to be performed. It is a

procedure and tool for determining the specified task, operations and requirements of

each job. After a job has been defined, it is analyzed, i.e., each task is described in

detail.

2. Evaluation and Selection of Candidates.

The selection procedure is concerned with securing relevant information about

an applicant. The resume’ are thoroughly and short listed. The short-listed candidates

are interviewed.

3. Placement .

Placement is the determination of the job to which an accepted candidate is to be

assigned, and his assignment to that job. A proper placement reduce employee

turnover, absenteeism and accident rates and improves morale.

4. Training and development.

Training is a process of learning a sequence of programmed behavior. It is

application of knowledge. Every employee is trained either on the job or off the job for

the following:

To increase productivity.

To improve quality

To improve organizational climate.

To improve health and safety.

Personal growth.

5. Welfare activity

The following welfare facilities are there in our Organization;

a) E.S.I Scheme

b) Workers Canteen at subsidized rates.

c) Staff Mess

d) Co-operative Credit Society.

e) Medical Re-imbursement for those not covered under E.S.I

f) Ambulance

g) Festival Advances

h) Book Advance

i) Staff Recreation Club

6. Trade Union

Trade Unions are an inevitable part of modern industrial setup. Trade unions

influence industrial democracy, morale and productivity. The following are the four trade

unions in PV Ltd.

CITU (Affiliated to CPM)

INTUC (Affiliated to Congress)

STU (Affiliated to Muslim League)

CHAPTER – 7

SALES DEPARTMENT

Sales are the part of marketing. Sales come after the positioning of the product

in the market. Sales department deals with the selling of the products. PV Ltd sells its

products through.

Direct sales

Company owned reports

Agency service

Direct sales means company receives the order from the customers and

supplies the goods directly from the company. Usually the customers are not allowed

credit.

Company owned depots in the depots that we managed by the company.

Company receives the orders through the depots and supplies the goods through it.

Company has 42 sales depots throughout the country.

Agency sales mean company has authorized agency depots and these

agencies receive orders from the customers and company supplies goods through

depots to the agencies. Agencies are given commission at a certain percentage. The

agency should periodically made a report about the sales and submit it to the company.

Each year company will make a sales target and using as well as the sales using

makes and takes necessary steps to achieve the target. A sales day book is prepared

by the department to know about the sales per day.

Sales are carried out directly by PV Ltd. The company fixes the price and sold at

these rates.

1. Ex-Factory Rate :

Here the price declared with the central excise and for this excise duty has to be

paid.

2. Ex-Depot Rate:

There are all most 35 depots materials are sent on stock transfer Ex-depot rate

includes ex factory rate along with the freightCharges.

3. Tender enquires:

Tender are invited from railway ordinance dept. etc. as per the tender’s quotation

are sent.

TYPES OF SALES:

Industrial sale

Export

Local or Domestic Sales

Main customer of this company are Indian Railway, HMT, KSRTC,

Shipyard, ,Maruthi, Toyatta etc.

Products are mainly exported to countries like U.S.A, Netherland, srilanka,

japan, Canada, france etc.

Domestic buyers are mainly carpenters, furniture companies& Local peoples for

their domestic uses.

EXPORT &IMPORT

Export and import are those transaction or business held between the countries.

The activities related to export or import I start when the company centers In to a

contact with a party. The [objectives of this is to popularizes the product to the

international market.

A concern should have an IE code to deal with the international market. This

is acquired by registering in to the joint Director of foreign trade. They should follow

the export policy of the Govt. of India

EXPORT

Export means selling the product out side the country. It helps popularize

the product and also to promote their product world wide. PV deals with export of

almost its entire product. Nearly 30 percentage of its total sale are from export, which

include export to all part of the world. Export demand of WIP plays a very I vital role

in promotion of the company. Export carries out as out the export policies of

government of India and responsibilities lies in the hands of export /import executives

IMPORT:

The purchasing orders are placed after strictly following rules and regulations of

the export and import control policy,. In voices are sent to the potential suppliers and

purchase department, to select the suitable suppliers. Then place the order authorized

by managing director for the purpose of raw materials and capital goods. On arrival or

cargo by air/ sea payment of bill is arranged through the bankers. After payment of

customs duty and other formalities the cargo is realized.

CHAPTER – 8

MARKETING DEPARTMENT

The PV Ltd has got separate Marketing Department which is recently developed

PV is marketing more than 100 products. Products are segmented as;

1. Domestic

2. Institutional

3. Automotive

4. Export

Brand and quality are the main marketing strategy followed by PV. The PV has a

unique product range that cannot be duplicated.

The PV has gained 70% market share on Hardboard itself. PV is the price leaders in

hard board marketing.

Almost all Car Manufactures like TATA, Ford, Toyota, Hyundai andMaruthi are the

customers of PV. Automotive segmentation is followed by PV towards this car

manufactures.

The main sales promotion followed by PV is direct contact by Architects, Builders etc.

The PV also issue national magazines as promotion tools. Marketing segmentation

adopted by PV is niche is DAP manufacturing PV has got marketing leadership in the

World after Japan and America.

SEGMENTATION OF MARKETING:

Market segmentation means the process of taking the total heterogeneous

market for a product and dividing it into several sub markets or segments ,each of

which tends to be homogeneous in all significance .The market of PV Ltd is divided into

the following segments .

EXPORT MARKET:

The PV exports their products to the following countries

Germany .

Bahrain

Sri Lanka

Israel

U A E

Malaysia

U S A

South Africa

INDUSTRIAL MARKET:

The main industrial consumers of PV Ltdare :-

Car manufacturers

Clock manufacturers

Mayor industries

LOCAL MARKET:

These include the customers who purchase the plywood and hardboard for the

purpose of ceiling separation , door separation , and block separation

APPLICATION BASED SEGMENTS:

Building construction industry .

Interior designing

Board building industry

Automotive building

Specific application products

PROMOTION:

The term sales promotion cannot be taken to mean what it commonly does.

Sales promotion is a part of promotion mix .Basically ,promotion is an exercise in

information persuasion and influence “ Thus promotion means the overall co-ordination

of advertising , selling publicity and public relation .promotion is a helpful function

designed to make all the other marketing activities more efficient”.

The PV Ltd follows the following measures for the sales promotion .

Personal visit

Direct mailing campaign

Exhibitions

CHAPTER – 9

FINANCE DEPARTMENT

The Prime Veneers Ltd is a widely held public tailed company listed in cochin

and Chennai stock exchange .the company has a capital of 13 crores invested in

various types of assets , and equally share of the company is 8 croresPV Ltd has a well

defined financial departments which deals with the financial requirement of the

company . This department deals in all money matters like sources and application of

funds .The PV Ltd issues share to its public for the purpose of raising capital

Accounting procedure:

PV Ltd follow double accounting system and also maintain four types of journals.

They are;

1. Cash payment book (CPB)

2. Bank payment book (BPB)

3. Cash receipt book (CRB)

4. Bank Receipt book (BRB)

For these four types of journals, a sub ledger is prepared. This sub ledger are

classified into three :

a. Accounts Receivable Books (ARB)

b. Accounts Payable Book (APB)

c. Personal Ledger (PL )

At the end of every month the sum total of the sub ledgers are transferred to the

main ledgers. Then there should have the equality in the amount of the sub ledger and

main ledger, i.e.

Total Amount of Sub Ledger = Total Amount of Main Ledger

The next accounting procedure is preparing the trail balance. At the end of every

financial year, profit and loss account and Balance Sheet prepares, from which financial

position of PV Ltd is noticed.

Sources of Fund:

The main source of funds are;

1. Internal Source:

a. The Main internal source of fund of PV Ltd is income generated from sales.

b. Reserves are the another sources of fund other than income form sales.

Current loss are adjusted by this reserves.

2. External Source :

a. The main external source of funds is term loan from bank and financial

institutions like SBI, Canara Bank, Punjab National Bank, IFCI etc.

b. Share Capital .PV Ltd is a widely held Public Limited Comapny. Recently

company issue authorizde shares 13,00,00,000 from which 8,48,00,000 are subscribed

capital. Company also adopt right issues (during crisis premium is given to shares),

bonus shares (when company is under capitalized)

Company issues preference shares to ICICI, HDFC like financial institutions. These

preference shares are redeemed.

Equity share capital is a major source of finance followed by the Company. Previous

years 24% dividend was given to the share holders because of the lack of operating

profit.

Working Capital:

Present working capital of the company is 23 crores obtained from the following

basis. 7 crores from SBI

10 crores from Dena Bank.

Some times company pledged machineries for raising term loans in order to meet

purchasing of scarce resources.

Functions

1)Allocation of funds

2) Raising of fund

3) Profit Planning

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 st MARCH,2010 .

SchNo

For the Year ended 31.03.2010

For the year ended 31.03.2009

INCOME

Sales 816052 719,255

Less: Excise Duty recovered on sales

63519 752,533 85,242 634,013

Other Income 9 7,702 1,282

Increase / (Decrease) in stock 10 (4,522) 21,001

Total 755,713 656,296

EXPENDITURE

Purchase of finished goods 1,037 797

Materials Consumed 11 246,220 205,950

Manufacturing and Other Expenses 12 343,762 294,719

Finance Charges 13 57,698 61,551

Excise Duty (1,669) (3,173)

Prior Period Adjustment 14 3,534 1,447

Total 650,582 561,291

Profit before Extraordinary Items, Depreciation and Taxation

105,131 95,005

Less : Extraordinary Item (See Note No.B (10) of Schedule 16)

9,964 -

Profit before Depreciation and Taxation

95,167 95,005

Less : Depreciation 5 46,599 46,607

Profit before Taxation 48,568 48,398

Less: Provision for Taxation

- Current Tax 5,442 5,500

- Deffered Tax 16,999 -

- Fringe Benefit Tax 291 130

Profit for the year carried to Balance Sheet

25,836 42,768

Earning per share )in Rupees)- 15

(Basic & Diluted – (Face value of Rs. 10/- each)

- Including Extra ordinary Items 2.5 4.5

- Excluding Extra ordinary Items 3.7 4.5

Significant Accounting Policies and

Notes to Accounts 16

BALANCE SHEET AS AT 31 ST MARCH, 2010

Sch. No As at 31.03.2010

As at 31.03.2009

I SOURCE OF FUNDS

1. Shareholder’s Funds

a) Capital 1 223200 223200

b) Reserves and surplus 2 121790 84488

2. Loan Funds

a) Secured Loans 3 469786 480645

b) Unsecured Loans 4 18256 19635

3. Defered Tax Liablity 16999

TOTAL 850031 807968

II APPLICATION OF FUNDS

1 Fixed Assets

a) Gross Block 5 1193164 1183150

b) Less: Depreciation 778083 732396

c) Net Block 415081 450754

d) Capital Work in progress - 3456

2. Investments 6 5632 5632

3. Current Assets, Loans and Advances

7

a) Inventories 417870 424145

b) Sundry Debtors 112722 97695

c) Cash and Bank Balances 47558 29902

d) Loans and Advances 47589 42515

A 625739 594257

Less: Current Liabilities and Provisions

8

a) Current Liabilities 145105 186623

b) Provisions 51316 59508

B 196421 246131

Net Current Assets (A – B) 429318 348126

Total 850031 807968

CHAPTER - 10

SWOT ANALYSIS

SWOT stands for Strength, Weakness, Oppurtunities and Threats. Strength and weakness are esential factors. SWOT analysis is the tool for auditing the organisation and its environment. It is the first stage in planning and helps marketers to face on key

issues.

STRENGTH:

The company has been maintaining a high quality for its products and as its products are well accepted in the market by quality concious customers.

The company has a well established Research and Development unit, one of the best in the wood based industries.

The product of PVLtd is certified by ISO. A very dedicated work force. Instalation capacity of the company is very high so that it can improve upon its

production if needed. Goodwill and Brand image of the company, it has a very high brand image which

has been built over the last 50 years with acquired goodwill.

WEAKNESS:

There is an acute shortage of good raw materials which forces the company to import raw materials.

Lack of good distribution network compared to the competitors. The price of PV products is very high as compared to others. Promotional activities of PV Ltd is not so good as that of competitors. Poor administration. Poor overall maintanance of factory.

OPPURTUNITIES :

The company is leading supplies to railways, defence, automobile, electrical, transport etc.

The product of the company are being exported to gulf countries and foreign countries.

There is always a possibility of stable demand for wood industry. The company diversified from the production of commercial plywood to

decorative plywood, block board, air craft plywood etc.

Threats :

In some product ranges imported items are available at labour cost than is currently produced India.

The working of company has been adversily affected by the effect of globalisation.

Government thight policies with regard to wood industry. Environmental threats.

CHAPTER – 11

FINDINGS AND SUGGESTIONS

Findings:

On the basis of study following findings are notable;

Very dedicated work force. Since the company has a very high brand image which has been built over

the last 50 years. There always a possibility of stable demand for the products. The company is facing competion from both national and international

market. The companiesadvertisementsare very less. They give more importance to quality than price of the product. The management is very keen in welfare activities of the company’s

employees. The employee-employer relationship is found to be cordial. There is no external recruitment in the company

The company was awarded the ISO 9001-2000 certificate.

Suggestions:

The following suggestions are recommended;

Advertisement has to be increased in large scale.

The company must motivate the workers to produce more.

The company should also have external recruitment policy.

Price of the plywood and hard board should be reduced to some extend.

The company must concentrate on international market and increase their

export.

The company must take steps to better the working environment.

CONCLUSION

The Prime veneers Ltd was established in 1955. The company started

manufacturing of sawm timber of plywood on the modest scale with a few indigenously

and landed machineries. Due to the progressive outlook and relentless effort of WIP’s

founder Shri, T.P HAMEED, a doyen of the wood based industries in India.

Today PV is one of the biggest wood based industry intergrated complex in the

country also in South East Asia with an employee strength of 400.

From the study it is clear that the company should make arrangement for

alternative source for the supply of raw materials. This will help the company to improve

the financial position. The company must also provide better living conditions to the

workers apart from the monetary incentives. It will help the company to reduce labour

problems.

Plywood industry is becoming more and more popular in the country and in the

world because of the shortage of wood in required size. The present requirement are

very vivid and wide which can be meet by plywood or other artificial items. So the

company is having a good future in both national and international market.