SUMMER INTERNSHIP PROJECT ON

“FINANCIAL RATIOS ANALYSIS”

Undertaken at

Alok Industries Limited

Submitted in partial fulfilment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BATCH (2022-24)

Submitted by Name of the Industry Mentor

Sohamkumar Mahendrabhai Patel Manmohan Rawat
MBA Semester II
2206172000632

Under the Guidance of

Dr. Tapesh Dubey

Professor of Faculty

PARUL UNIVERSITY
FACULTY OF MANAGEMENT STUDIES
P.O. Limda, Tal. Waghodia, District Vadodara – 391760
 Declaration

I Soham Patel , Enrolment No. 2206172000632 from PIMR ( MBA), Semester

III of the Parul University, Vadodara hereby declare that the Summer
Internship Report at Alok Industries Limited is an original work and the same
has not been submitted to any other Institute for the award of any other degree.

Date: 9/07/2023 Signature of the

Student
Soham Patel
 INSTITUTE CERTIFICATE
To be provided by Internal SIP Guide upon satisfactory submission of SIP Report in the provided
time line of submission. Irregular students will face issue in obtaining such certificate and all
students are hereby instructed to strictly adhere to provided deadlines in order to avoid academic
action.
 (ON ORGANIZATION’S LETTERHEAD)
SIP Completion Certificate

This is to certify that Complete Name of the Student, student of Master of

Business Administration from Batch of 2022-24, (Name of your Institute
PIET/PIMR), Enrolment Number 22061XXXXXXXX has successfully
completed Summer Internship Program at Complete Name of the
Organization during DD/MM/YYYY to DD/MM/YYYY under my guidance
and supervision. He/She has successfully conducted a study and completed
project on Insert SIP Title.

Seal of the Organization Signature of Industry Mentor

Date: Full Name of the Mentor

Designation
 PREFACE

Training is the journey and not destination.

 Finance and Function of Finance are the part of Economic activities. As this
report also include the Financial Ratio Analysis which checks upon the
efficiency of the firm. Ratios indicate the trend or progress or downfall of the
firm and are aid to measure financial solvency. This project start with
industry analysis, introduction of the company and organization, four major
departments of the firm they are finance, marketing, production and human
resource. Which are included in general training part and specific research
includes concept definition, literature review, objective of the research,
research methodology, limitation of research, and the ratio analysis of
various ratios, and suggestion. I am sure that this project report would give us
enough food for covering different departments of the firm and also the
various ratios. I have collected all the needed information for the project
report at my best level and the information provided are true and authentic.
 ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance and
encouragement of other people. This one is certainly no exception.”

I would like to extend my sincere and heartfelt obligation towards all the
personages who have helped me in this endeavour.
Without their guidance, help, cooperation & encouragement, I would not have
made headway in the project.

I am Thankful to my Trainer who gave me an immense experience of the textile

world which can never be described through words.

I am also thank full to all the staffs at Alok Industries for providing us with
proper guidance and beautiful friendly environment around.
 INDEX

Sr. No. PARTICULARS Page No

Chapter-1 INDUSTRY STUDY
1.1 Introduction
1.2 Growth and Evolution of ____________ Industry in India
____________________ Industry Analysis: Michael Porter’s Five
1.3 Forces Model
Chater-2 COMPANY STUDY
2.1 Introduction of Company Name
2.2 Mission and Vision
2.3 Goals and Objectives
2.4 Organization’s Structure
2.5 Board of Directors and Key Executive Officers
2.6 Product and Services Offered
2.7 Key Milestones/Awards Achieved by the Organization
2.8 Key financial/operational results for last 5 years
2.9 Overall financial/operational Performance of the Organization
2.10 SWOT Analysis of Organization
Chapter-3 DEPARTMENTAL STUDY
3.1 Introduction of the _________________ Department
3.2 Activities of ___________________ Department
3.3 SWOT Analysis of the Department
Documents (Worked upon by the student while he/she was
3.4 Interning at the Organization)
Interdependence of department/Area under study with other
3.5 departments/operational areas
3.6 Analytical study of work/assignments/training
3.7 Conclusions
3.8 Suggestions
3.9 Outcomes of the Summer Internship
Chapter-4 RESEARCH
4.1 Title of the Study
4.2 Abstract of Research
4.3 Introduction of the Research Area
4.4 Literature Review
4.5 Define Research Problem/Research Objectives
4.6 Hypotheses
4.7 Research Methodology
4.7.1 Research Design
4.7.2 Sample Design and Sampling
Data Collection Instrument’s Selection, Preparation and
4.7.3 Collection
Research/Data Analysis (SPSS/AMoS/Advance Excel/NViVo
4.7.4 etc.)
4.8 Findings
4.9 Conclusions
4.10 Industrial/Managerial/Societal Implications
4.11 Limitations
4.12 References
4.13 Appendices
 Objectives of summer training are as follows:

To gain the practical knowledge in the real business world.

To learn more about the professional atmosphere and adopt the professional behavior.

To learn how to innovate your ideas and achieve the main objective of the organization.

To know about all departments of the firm like finance, marketing, human resource and

production.

To know what is the production process, plant layout and location layout, maintenance of

machines, basic raw material, semi- finished goods and finished goods.

In department of marketing what is their distribution channel, their major customer, and

major competitors.

In department of finance, to know how the administration and maintenance of financial

assets takes place and how the working takes place in the organization related to finance.

To know financial position of the company and is efficient to carry all its current claims or

not by conducting financial ratio analysis.

8
Chapter 1
Industry study:

9
 Textile
Industry

Chapter one

Industry Profile:

Textile Industry in India

Textile Industry in India is the second largest employment generator after agriculture. It holds
significant status in India as it provides one of the most fundamental necessities of the people.
Textile industry was one of the earliest industries to come into existence in India and it accounts
for more than 30% of the total exports. In fact Indian textile industry is the second largest in the
world, second only to China

Textile Industry is unique in the terms that it is an independent industry, from the basic
requirement of raw materials to the final products, with huge value-addition at every stage of

processing. Textile industry in India has vast potential for creation of employment opportunities
in the agricultural, industrial, organized and decentralized sectors & rural and urban areas,

particularly for women and the disadvantaged. Indian textile industry is constituted of the

10
following segments: Readymade Garments, Cotton Textiles including Handlooms, Man-made
Textiles, Silk Textiles, Woolen Textiles, Handicrafts, Coir, and Jute.

Till the year 1985, development of textile sector in India took place in terms of general policies.
In 1985, for the first time the importance of textile sector was recognized and a separate policy
statement was announced with regard to development of textile sector. In the year 2000,

National Textile Policy was announced. Its main objective was: to provide cloth of acceptable
quality at reasonable prices for the vast majority of the population of the country, to increasingly
contribute to the provision of sustainable employment and the economic growth of the nation;
and to compete with confidence for an increasing share of the global market. The policy also
aimed at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which
the share of garments will be US $ 25 billion. The textile industry is anticipated to generate
12mn new jobs in various sectors.

Growth and Evolution of Alok Industry in India

• India has rich resources of raw materials of textile industry. It is one of the largest

producers of cotton in the world and is also rich in resources of fibers like polyester, silk,
viscose etc.

• India is rich in highly trained manpower. The country has a huge advantage due to lower
wage rates. Because of low labor rates the manufacturing cost in textile automatically
comes down to very reasonable rates.

• India is highly competitive in spinning sector and has presence in almost all processes of
the value chain.

11
• Indian garment industry is very diverse in size, manufacturing facility, type of apparel

produced, quantity and quality of output, cost, requirement for fabric etc. It comprises
suppliers of ready-made garments for both, domestic or export markets.

• Indian textile industry is highly fragmented in industry structure, and is led by small
scale companies. The reservation of production for very small companies that was
imposed with the intention to help out small scale companies across the country, led
substantial fragmentation that distorted the competitiveness of industry. Smaller
companies do not have the fiscal resources to enhance technology or invest in the high -
end engineering of processes. Hence they lose in productivity.

• Indian labor laws are relatively unfavorable to the trades and there is an urgent need for
labor reforms in India.

• India seriously lacks in trade pact memberships, which leads to restricted access to the
other major markets.
 Chapter 2
Company
study:

Introduction of company name

13
 Chapter 2
Company Profile:

History of company:-

Established in 1986 as a private limited

company, Alok began with texturizing of
yarn and steadily expanded into weaving,
knitting, processing, home textiles and
readymade garments. And to ensure
quality and cost efficiencies Alok have
integrated backward into cotton spinning
and manufacturing partially oriented yarn
through the continuous polymerization
route. Alok also controls an extensive
embroidery operation through its sister

concern, Grabble Alok Impex Ltd.

In 1993, Alok became a public limited company. Since then it have continued to increase
the scale of its operation and the range of its activities. Today, Alok is amongst the “A
Group listed companies” on India’s leading stock exchanges.
That is how they have evolved into a diversified manufacturer of world-class home textiles,
garments, apparel fabrics and polyester yarns, selling directly to manufacturers, exporters,
importers, retailers and to some of the world’s top brands.
Alok has recently entered the domestic retail segment through a wholly owned subsidiary,
Alok Retail India Limited, with a chain of stores named ‘H&A’ that offer garments and

14
home textiles at attractive price points. With the sales turnover of around Rs. 2966 crores in

F.Y.2008-09, Alok is amongst the fastest growing vertically integrated textile companies in
India.

They have also ventured into the realty space through wholly owned subsidiaries with
investments in some prestigious projects in Mumbai.
Latest achievements of company are S.E.Z. (Social Economic Zone) and this plant held in
Surangi. S.E.Z. means no interference of government and police.

15
 The joint adventure of company is making Embroidery Company with Austria company
name Garble Alok Impex Ltd. The company’s Sulzer division is in Dadara. The company’s

processing plant in Vapi. Company’s made-up Division is also in Vapi

Company’s Milestone.

Years Events

1986 Incorporation of the Company

1993 Becomes a public limited company with a Rs. 4.5 crore IPO

1995 Sets up financial and technical collaboration with Grabal, Albert Grabher GmbH & Co
of Austria to make embroidered products through a joint venture company, Grabal
Alok Impex Ltd

2003 Export Trading House status granted

2004 Turnover surpasses Rs. 1,000 crore

2006 Texprocil silver trophy awarded for second highest export in manufacturer exporter –
made ups category

2007 • ISO 9001:2000 certification obtained

• 60 per cent stake in Mileta a.s.– a Czech Republic-based textile company

acquired

• Controlling stake in U.K based retail store chain, ‘qs’ (now Store Twenty one)
acquired

• Organic cotton contract farming commenced

• Gold Trophy for best export performance to ‘Focus LAC’ countries awarded
by Synthetic & Rayon Textile Export Promotion Council

• Awarded Silver trophy for highest fabric exports and Bronze trophy for highest
made ups export

16
2008 • Turnover crosses Rs. 2,000 crore

• Exports crosses Rs. 1,000 crore

• Joint venture with National Textile Corporation (NTC) to develop, revive New
City Mills, Mumbai and Aurangabad Textile Mills, Aurangabad formed

• Awards from TEXPROCIL for 2007-2008

• Gold Trophy for highest exports of bleached/yarn dyed/ printed fabrics

• Silver Trophy for highest export of made ups

• Bronze Trophy for highest global exports

• Special achievement award for exports in fabrics

• Awarded Outstanding Exporter of the Year – Textiles at the International

Trade Awards 2007-08; presented by DHL CNBC TV 18 and powered by
ICRA

Company’s SWOT analysis:-

SWOT Analysis is done in order to learn about the strength, weaknesses, opportunities & threats
of the company.

STRENTH:-
During the year the Alok textiles export grew around 31% to RS.111 crores from RS.27 crores in

previous year. The total turnover of Alok Industries ltd RS.1069 crores had an increase of
34.47% over the previous year’s turnover of RS.795 crores. The profit before tax during the
years was Rs.93 crores an increase of 57.63% over the previous year’s figure of RS.59 crores.
Alok manufacturing facilities comprises some of the equipments that have met the stringent
requirement of global retailers & importers in terms of quality, pricing environment aspects.

17
 WEAKNESS:-
As to state there are no specific weaknesses for Alok Industries, the only problems they are
facing is the heavy competition with the international market as well as foreign market.

OPPORTUNITIES:-
The Indian textiles Industry has a much more potential to grow in next organization because
major textile payers in U.S.A & Europe are out-location manufacturing company due to the high
cost of manufacturing.

The Govt. is supporting this industry by technology up gradation scheme, gradual reduction of
import duties on Textile Machineries, Rationalization of Indirect taxes. Etc.

The industry can avail opportunities that may come in from strategy-tie-up with textile giants
from the western word for supply of goods, technical know-how, equity participation, etc.
By this we can penetrate overseas market.

THREATS:-
Textile industry is facing some challenges also, so Alok Industry cannot remain insolent from
this corporation needs to become focused & Flexible.
They will have to define key principals required to achieve operational excellence & develop
strategies to become customer- focused organization.

Products of Alok Industry Ltd

1) Cotton and Blended Yarn 2) Apperal Fabrics
Wowen

3) Apparel Fabrics Knits 4) Work Wear Fabrics

19
5) Garments Woven & Knitted 6) Home Textiles- Bed
Linen

20
7) Polyester Texturized- Yarns 8) Going Organic &
Going Green

9) Home Textiles-Terry Towels 10) Embroidery

21
 Company’s vision
To become the world's best integrated textile solutions enterprise with leadership position across

products and markets, exceeding customer & stakeholder expectation.

Company’s mission
They will:

• Offer innovative, customized and value added services to our customers

• Actively explore potential markets & products

• Optimize use of all resources

• Maximize people development initiatives

• Become a process driven organization

• Be a knowledge leader and an innovator in our businesses

• Exceed compliances and global quality standards

22
• Be an ethical, transparent and responsible global organization.

Some of the Alok ’s diversified

International and Domestic Customers

Competitors of A lok:-

➢ Raymond company ltd.

➢ Siyaram company ltd.
➢ Century Textiles ltd.
➢ Vardhaman ltd.
➢ Welspun ltd.

23
 ➢ GHCL ltd.

➢ Nahar Textiles ltd.

➢ Creative ltd.
➢ Arvind mills

Plant Locations

SPINNING • 412, Saily, Silvassa, U T of Dadra & Nagar Haveli

WEAVING • Babla Compound, Kalyan Road, Dist. Bhiwandi, Thane

• 17/5/1and521/1,RakholiSaily, Silvassa, U T of Dadra & Nagar

Haveli

• 209/1 & 209/4, Silvassa, Village Dadra, U T of Dadra & Nagar

Haveli

KNITTING • 17/5/1 and 521/1, Rakholi / Saily, Silvassa, U T of Dadra &

Nagar Haveli
PROCESSING • C-16/2, Village Pawane, TTC Industrial Area, MIDC, Navi
Mumbai, Dist. Thane

• 268, Village Balitha, Taluka Pardi, Dist. Valsad, Gujarat

• 254,VillageBalitha,Taluka Pardi, Dist. Valsad, Gujarat

GARMENTS • A 130-134, TTC Industrial Area, Khairne, MIDC, Navi Mumbai

• 374/2/2, Saily, Silvassa, U T of Dadra & Nagar Haveli

MADE UPS • 374/2/2, Saily, Silvassa, U T of Dadra & Nagar Haveli

• 268,VillageBalitha,Taluka Pardi, Dist. Valsad, Gujarat

POY • 521/1, Saily, Silvassa, U T of Dadra & Nagar Haveli

HEMMING • 103/2, Rakholi, Silvassa, U T of Dadra & Nagar Haveli

24
POY & • 521/1, Saily, Silvassa, U T of Dadra & Nagar Haveli
TEXTURISING
YARN

Office Locations

REGISTERED B/43 Mittal tower

OFFICE:
Nariman Point,Mumbai-400 021.

CORPORATE Peninsula Tower, ‘A’ Wing,

OFFICE: Peninsula Corporate Park,

G. K. Marg, Lower Parel,

Mumbai 400 013

Divisions of Alok

25
ORGANIZATIONAL CHART

26
 CEO Project Director
Mr. Aich Mr.S.C. Goyal

V. P. Made Ups President Prod. President Comm. V.P. Engg

S.P. Bhupna Mr. A K Pal Mr. A K Pal Mr. Gurpal
Singh

Chief
Mgr.Utility
Wider Knits Normal Yarn Printing Terry Mr. Kasat
Width VP Width Dying DGM Towel
GM Mr. VP GM Mr. GM DGM Maint.
Mr. Jagpat Mr. Mr. Parvani Mr. Mr.
Waancho Gohel Naidu Parvani Abbassi

Mgr. ETP
GM Knits
Mr. Kaul
Mr.
Raajeshkara

DGM HR.
V.P. Accounts
Mr. Bhuvanesh Mr.
Gupta Digvijay
Head Product GM Q & A
Devp. Mr. Chuabal
Mr. AV PPC Mgr. MIS &
Vaidva Mgr. Purchase
DGM Finishing Mr. Sanjeev Costing
Mr. Vinoj
Mr. Shavant Sen Mr. Singh
DGM Q & A
Mr.
Chakraborty DGM Process Mgr. IT
GM Prod.& Devp
Mr. Somendu Mr. Hetal Desai Mgr. Exise
Mr. Jain
Sen Mr.
GM PPC Sharma
Mr. DGM Folding Mgr. Stores
Debashish Mr. Thakkar Mr. Dhavade
27
Chapter 3

Departmental
studies:
Production
Department

30
 Production Department

Production is one of the main stages of an enterprise without which a manufacturer can’t
survive. It converts the raw material into semi-finished goods and then converts into finished
goods.

According to Buffa, “Production management deals with decision making regarding production
of goods & services at the minimum cost according to demand of customers through the
management process of planning, directing, and controlling”.

Production Planning

Alok produces textile products. Before producing product Company plans a schedule on a yearly

base, monthly bases & it goes very deeply by preparing a weekly schedule.
For preparing this schedule they consider the following points.
❑ The lead of the product.
❑ The preparation time of the product.
❑ The demand of the product in market.
According to these points they use to plan the schedule and give the order to produce the

product.

Responsibility of the Production M anager

The responsibility of the production manager in to the Alok Company is as follows.

➢ To control the cost of the production.
➢ To motivate workers for maximum efforts.
➢ To fulfill demand of the customer.
➢ To plan production schedule.
➢ To avoid defective goods.
➢ To maintain enough semis finish goods as well as finish goods.

31
 ➢ To decide on way of handling and re handling.
➢ To maximize utilization of machinery and manpower.

Production Planning and C ontrol

The aim of the department is fulfill the customer requirement on the time better quality and
coordinate with the marketing at head office and the production department at Silvassa (Rakholi)

Buyer-Head Office- PPC- Production

This Department is job is to

Check the possibility of availability yarn

Give the data to customer

Meet the given data
Instruct the production units as per priority

Greige Department:

In this department all the raw material comes from Silvassa (Alok division 2nd branch). 95% of
raw material receives from Silvassa branch and rest from outside source/party. There are 3
godowns and centralized SAP system to know about the raw material. Then the stitching of
cloths is done and then lot no. is given to each set of roll with quality checked. It has the capacity
of producing 1.50 lack meters/day but they produce only 1.30 lack meter/day. Then this material
is send to Bleaching Department for further process.

Bleaching Department:

There are three machines in this department. These machines are imported from Germany.

1. Singedesigne: This machine works for shinning & designing the material.This batch is kept
in rotation for 8Hrs

32
2. Pre-treatment: This machine works for whiteness & smoothness of the material. There are

three procedures to the material whiteness & smoothness. There are INJECTA,
EXTRACTA, and IMPACTA.

Injecta: Gives the steam pressure to material in water at 200 ° C for stretching the cloth
from 5 mts to 7 mts.
Extracta: In this section the material is washed by hard washer, soft washer & steam
washer at 90 C.

Impacta: To remove the natural fats & waxes from the material they use this machine.
1. Mercerization: In this process the material is kept in role why dry process or wet process. If
the process is going for continuous process then the wet process is been role and to kept it in
go down it is kept as dry. For the dyeing process the material is been giving in wet form.

Dyeing Department:

In this process 3% color & one 1% chemical is pumped through CDR machine. Then after
dyeing the material the hard wash is done and then the material is been dried and the role is

been send to finishing department.

Finishing Department:

Finishing is applied on the textile material by different chemical and mechanical means. The
finish to be applied on textile material depends upon the end of the fabric.

MACHINERY IN FINISHING DEPARTMENT

STENTER(Monforts) 3
BRUSHING MACHINE(Lafer) 1
SUEDING MACHINE(Lafer) 1
SANFORISER(Monforts) 1

Folding D epartment

33
After finishing the fabric comes to the folding department for the inspection and packing and
grading. Folding department works in four sections

1. Inspection and Grading

2. Recording & data entry
3. Grouping & Sampling
4. Packing

Laboratory Department:

Alok Industry is certified by ISI so the product is of good quality so this department for tests test
of material is tested by this department or that there is different machine for check the yarn.

Printing D epartment:

This is the department were printing is done on the material came from engraving department.
There are 12 color shades in a machine. This machine name is Arioli Loop Ager from Germany.
This machine can color 90 meter of cloth in 1 min.

34
Production process Flow Chart of Alok Industries Ltd.

35
 Human
Resource
department

36
 Depart
ment
Human Resources Department
Meaning:

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to

people such as compensation, hiring, performance management, organization development,

safety, wellness, benefits, employee motivation, communication, administration, and training

Recruitment

37
For recruitment of worker/staff category employee for all unskilled, semi skilled and highly
grade the firm has different approaches like direct recruitment private employment, agencies,
advertisement in news papers and personal sources. Different technique is used for recruitment
as per situation need importance and urgency for recruitment of man power. Minimum

education qualification for trainee in STD 10th pass minimum age criteria for category whether
staff or worker is 18 years on the date of recruitment is must.

Direct Recruitment:-

The company has adopted recruitment policy for workers belongs to un-skilled and semi skilled
grade employees. On every alternative day at the factory main gate personal department
conducts the recruitment activity at the factory gate for the persons willing to join the company.

Through private Employment agencies:-

For the recruitment of skilled and highly skilled grade employees this type or recruitment source
are preferred. The data base of candidates with relative qualification experience and training is
available with the agencies. As per our criteria we call prospective candidates for an interview
and evaluation the abilities intelligence attitude and experience.

Through Newspaper:-

For the specific recruitment in many cases the application are invited through the advertisement
in regional/national news papers. All the application will be shown to concern department heads
of short listed candidates are called for interview.

Through personal Source:-

We invite people for interview whose information/bio-data will come across/ brought to our
knowledge through any of their friend/relatives/classmates or senior or juniors working with our
organization.

HRD
MR . DI GVIJAY SI NGH
(CHIEF MANAGER P & 38
MR. SANJAY M R. SAMPATH MR. KALPESH M R. M URLI
(ASST. RAVAL (TRAINING &
PANDEY
M ANAGER) (EXECUTIVE . DEVELOPMENT)

Training and development

Every organization needs to have well framed and experienced employee to perform the
activities which have to perform. If the existing people can meet the recruitment then training is
of no importance. But it is found vice-versa as for existing employee also newer knowledge of
various ways of doing and performing the task in more efficient and cost effective manner
keeping in touch with competitiveness, modernization and increase the versatility and
adoptability of employee.

As the jobs have become more complex, the importance and requirement of training has
increased to meet organization objectives. Training is process of learning a sequence of
organized input to improve the employees job skill, knowledge, and change in attitude towards
his work.

Training methods:-

On the job

Counseling/direction & guidance

In house training

39
 External training

Employees at all levels are expected to endeavor for “self development” and should try to excel
in their performance on their present job and should prepare for future job.

Training modules:-

AWARENESS PROGRAM

QUALITY

PRODUCTIVITY/SKILLS DEVELOPMENT
SAFETY/HEALTH ENVIRONMENT

LATEST TRAND IN TECHONOLOGY

BEHAVIOURAL AND COMMUNICATION

HRM FOR LINE MANAGER

TECHNOLOGY ASPECTS

COMPUTER AWARNESS PROGRAMME

External training:-

Nomination is done for external programme for which there are no internal programmes. The
P&A department will maintain a list of training programme being organized in the country along
with evaluation report on the quality of these programs. Based on individual training
requirement, the P&A department will recommend to the A.Vp/E.D through the concerned
department heads, names of staff to be nominated for various training programmes.

In respect of external nomination, the participants on return of the programme attend by him to
the concerned manager and a copy of it along with a copy reading materials shall be sent to the
P&A department within maximum period of weeks from return of the training programme.

Ethics of employment

40
Alok Industries Ltd. is professionally managed company; therefore certain ethics of employment
is necessary for achieving climate in organization.

No interview is to be conducted/Bio-data from be got filled-in without the approval of

personal dept.
– Personal dept arranges and conducts the requirements process only after approval for
requirement is sought. The interview panel is to be earned marked well in advance off the
interview and the interview briefing is required to be given to all the panel members by the
personal dept. No direct hope, commitments, whatsoever regarding employment should be
given to anyone.
No compromise on quality standard of people should be made.
Frank and free opinion should be exchanged during the course of interview by the panel.
All appointment are subjected to credential verification and in case of false, part information
or concealed information, the employment of the concerned person is liable for termination,
without assigning any cause or notice or compensation in lieu thereof.
All appointment will be subjected to production of satisfactory proof release by the previous
employer, salary terms, and previous employment and experience certificate of all previous
employers.
All appointments are subjected to credentials given by the selected candidate being verified
and reference report being satisfactory. In case any employee gives wrong information or
conceal facts in either the “Application for employment” from or in subsequent declaration
to the company, his employment is liable for termination, without any notice or
compensation in lieu thereof.

Period of the candidate joining the duty, the personnel dept will complete following formalities.

➢ Intimate the date of joining to the dept. head

➢ Seating arrangement (Through personnel dep.)

➢ Arrange through P&A for residential accommodation, if required or agreed upon

41
➢ Draw up orientation/Training Programme

➢ Finalize the job allocation/description with dept. / division head considering recruitment
objectives.

Induction:

The personnel dept. will be Responsible for

➢ Completing joining formalities, such as joining report, checking of medical

➢ Certificates and medical checkup etc.

➢ Instruction to concern executive.

➢ Acquainting to new entrant with organization structure, Rules & Regulation

➢ Background and history of the company, local information and Assistance.

The induction programme of new entrant will is for five days.

After completing the cycle of indication the new entrant will be sent to the concerned dept.
whenever necessary, the P&A dept. will also issue a general circular regarding the new entrant
and his assignment, for information of all employees in company.

Types of appointment:

➢ PERMANENT: All appointments will be against the permanent sanctioned vacancies. All
appointments would be on probation of six months. Confirmation will not be deemed to have
taken place, unless conveyed in writing. In the absence of any written communication, the

probationary period would automatically stand extended.

➢ TEMPORARY: Wherever such appointments are authorized, they will be for limited

period, specified in their terms of appointments, not exceeding 60 days at any stage.
Extension of temporary period beyond 60 days shall also be authorized by A.V.P.

➢ TRAINEES: The Company may engage, from time to time, services of such fresh
graduates/diploma holders (Technical and Non technical). Who on successful completion of

42
 their training period would be absorbed in staff at suitable levels? The terms of appointment
and benefits/facilities for such appointments would be as finalized by the management from
time to time.

Payment of fare to candidates called for interview

Unless otherwise specified, payment of fare to all outstation candidates called for an interview
will be made on the following basis:-

A) All candidates called for Manager & above

B) All persons called for Dy. Manager & below fare

Joining expenses:

It is not the normal practice of the company to pay joining expenses incurred for selected
candidates for joining or moving his residence on selection. Exception this can only be
authorized by the M.D/E.D/A.V.P. in writing.

Letter of intent:

All candidates selected for appointment as staff shall be offered letter of intent indicates the position for
which they have been selected. Formal letter of appointment shall be handed over to the
candidate, on the term mutually agreed upon, on the day of joining duty.

Pre-joining formalities:

Candidates selected for joining as staff will be issued letter of intent indicating, a part
from the position for which selected, the date/ place of reporting, the documents etc. at
the time of reporting duties.

43
 Marketing
Department

44
 Marketing Department

Marketing is an important activity in our society. Marketing today requires more proximity
towards customer. It also requires:
1) Of end users more understanding.
2) Creating more moment of truth and delight.
3) Retaining customer.
4) Relationship marketing.

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 Modern definition of M arketing: -

“Marketing is continues process of discovery and translating consumer wants into appropriate

product services. Creating demand for this product and serving the demand with the help of
distribution such as wholesaler and retailer. “

The American marketing association defined marketing as:-

The performance of business activities that directs the flow of goods and services from

producer to customer

M arketing management:-

Marketing management is an ongoing process involving identification of consumer need and

wants of converting them into appropriate products and satisfying the demand of consumer who
are the most merciless, meanest and toughest marketing disciplinary. It is an important
functional area of business.

-According to Phillip Kotler:

“The market concept is customer orientation backed by integrated marketing aimed at
generated customer satisfaction to satisfy organizational goals.”

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 4Ps of Marketing Mix

Product

Alok is more concern about the product they are always try to give qualitative product to their
buyers, they have product planning & control department.

This is playing vital role in the organization. It creates the link between the production
department and marketing department. It exchanges the information between the departments.

Manufacturing plans are made, based upon input from marketing and designing .The
development of fabric deciding the specification is done by designing while the acceptability to
market and the quality is decided by market.

They conduct booking session twice in a year in order to decide what should be produced for
season.

A yearly plan is 1st made based upon the expectation of marketing. The capacity balancing is
then done & the entire production is divided in to the available production capacity at various

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locations depending upon the capacity loading, the requirement for marketing the converted into
manufacturing.

Raw material, Dyes& Chemicals, other horizontal inputs and optimum utilization of capacity are
the major balancing factors which decide the feasibility of timely delivery.

After allocation of plants of various location .Any problem faced at any location need an
immediate attention so that other location take up the production need in order to meet the
deadline of delivery.

Place

Alok is basically fabric manufacturer so they are not selling their product directly. They are
selling their product retailer like Wal-Mart, M&S. They are distributing their product through
agent for international buyers. The web has created a platform whereby organizations can now
directly communicate with the customers, as a result of which many of the channels are being
disinter mediated. This disintermediation does not necessarily mean that they completely
eliminate the intermediaries, but rather when it comes to shipping the products it may outsource
some of the distribution functions like the storage, transportation from third party firms.

Price

Pricing strategy at Alok: Pricing is one of the linchpins of marketing strategy and success.
Every organization has their own technique for pricing & Alok is one of them. The company
adjusts product prices to reflect changes in costs and demand and to account for variation in
buyers and situations. Many times they are using online auctions. It is a popular and innovative
way of pricing. Top Management or Responsible person who has authority, they can be

participating in online auction where buyers bid against each other. The highest bidder wins.

They are using Geographical pricing to decide the price. It includes Geographical
considerations strongly influence prices when costs must cover shipping heavy, bulky, low -unit-
cost materials. Buyers are all over the world so there are variations in price in different area of
the world. Another strategy is value pricing where they are offering right quality at fair price.

48
Many times they compromise with the price when order in bulk. Price is also depending upon
the quality of product. They are always providing high quality product.

Basic structure of Price: Total Fabric Price=Basic price of fabric + Overhead + Transportation
cost + Profit.

Promotion

The next element of the marketing mix is deciding the appropriate set of ways in which to
communicate with customers to foster their awareness of the product, knowledge about its
features, interest in purchasing, likelihood of trying the product and/or repeat purchasing it.
Effective marketing requires an integrated communications plan combining both personal selling
efforts and non-personal ones such as advertising, sales promotion, direct marketing and public
relations. Put together, they are referred to as the promotion mix.

Elements of Promotion

Personal Selling

Sales Promotion

Public Relations (PR.

Direct Mail

Trade Fairs and Exhibitions

Advertising

Sponsorship

Alok is promoting their self in such approaches like trade faire & exhibition. It helps to make
new contacts and renewing old ones. The main purpose is to increase awareness and to
encourage trial & attract the new customer.

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They also promoting through sponsorship where company pay associated with particular events
like Fashion show the attributes of the event are then associated with the organization.

Direct mail is the very highly focused way to develop relationship with customer. The mail is
sent out to the potential buyers and responses are carefully monitored.

Branch Offices of Marketing Plants

Bangalore Vapi
Chennai Silvassa
Delhi Navi Mumbai
Sri Lanka Thane
United States
Bangladesh

M arketing strategies :-

The choice of marketing strategies hinges on a number of consideration like the company’s.
Current market share.
Current and Planned Capacity
Customer price sensitivity.
Marketing Growth.
Competitors.
The company may find a number of alternatives for fulfilling its purpose but it needs to be select
one The company needs monitor the impact of marketing strategies on its sales, market shares,
cost, profit and long term investment

Strategies related to P roduct:

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A product means a bundle of benefits, which satisfy the human need. According William
Stanton, “A product is a complex of tangible attributes including packing, color and service
which the buyer expect as offering of satisfaction of wants and need.”

✔ Q uality:-

For Alok Industries ltd. quality stands at a first place. And it is most important to any production
house. Also consumer satisfaction is the best scale for the quality measures and they are favor in
Alok Industries Ltd.

✔ Packing and Labeling:-

– In Alok product are packed as per the convenience of consumer. So packing is also changed
on the basis of customer.

are also change on the basis of the customer feedback.

ts for exporting are packed separately using some specific material only.

✔ Brand name:

Brand name is the effective tool to identify and to differentiate

The product from the competitor’s product.
Brand name is an attractive parameter for the customer while they choose one among
different product.
Alok industries ltd .has brand name “ALOK “itself.

✔ Sales department:

In sales department firstly consumer inquiry for our product if consumer like the material of
company so he give order of some quality and from that we make A sales order and the

procedure of sales department is begin.

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So consumer check the material and then he give order then companies authorized person decide
that the sales should be done or not if authorized person approve so the department see the when
another parties order will full fill then give date and try to finish that order.

When the order is full filled by department they inform the party and also say to collect their
order when the party comes to collect the order they make legal document and make Challan and
the payment in some specific time period.

52
 Finance
Department

53
 Finance Department
Finance is the lifeblood of the industries because we cannot imagine business without finance, as
it is the central point of all the business activity. Whether big or small, government finance
function is of equal importance. Finance is defined as the provision of money at the time it is
wanted.

Till 1950 finance function was regarded as the function only of rising finance of the business.
There after it has undergone remarkable changes over the time. Since last 30 to 40 years the
important function of finance management is of effective efficient utilization of finance.

Financial management means rising of adequate funds at the minimum cost and using them
effectively in the business. It is concerned with financial problem in business.

Management Hierarchy

Accounts & Finance Department

FINANCE & ACCOUNTS DEPARTMENT

V.P ACCOUNTS
(Mr. Bhuvanesh Gupta)

Senior Manager Accounts

(Mr. Deepak Jain)

Accounts Officers

54
 Assistants

Procedure of Accounting Department

Gate Entry

Store department GRN (Goods Receipt Note)

Accounts

Booking Checking Payment Audit

Bo ok ing process

Accounts Booking Manager VP Accounts

(Assistant) (Check) (Sign)

P ayment process

Assistant Manager VP Accounts Party

(Check (Sign) Distribute

Importance of Finance Department:-

55
1. Finance is required for the scheme of modernization, expansion and development of
existing enterprise.
2. The financial plan helps to check out the success of the company.
3. The effective financial plan will provide sufficient funds to business.
4. Finance department is always linked with success of other departments where it is
responsible to provide necessary finance.

Responsibility of finance Department

In modern enterprises the financial manager occupies a key position. He is one of the dynamic
members of the management and his role day by day becoming more pervasive, progressive,
intensive and significant in solving complex problem. The responsibility of financial manager
includes:

✔ Raising of funds
✔ Minimizing cost of funds raised
✔ Allocate funds prudently
✔ Control the working of an organization
✔ Maintain enough liquidity

Registered Maintained:-

✔ Cash and bank book

✔ Sales register
✔ Debit Note
✔ Credit Note
✔ Purchase register
✔ Trial Balance
✔ Profit & Loss A/C
✔ Balance Sheet

56
 Accounting Procedure:

Here the entries are made and it is sent to the head office and there the account is maintained.
The account procedure starts from the raw material enter to the company. The procedure of
account as follows:-

1. The security officers firstly check the goods or raw material enters at the gate and note down
the no. of vehicle.
2. Then the goods and brought to the quality control lab where it is check and approval is OK
then the goods are stored in the stored department and the entry is made there.
3. The book entry is done after the material stored
4. After the book entry is sanded to the account department where the bill order slips are
compared with other.
5. After the document are checked and signed by the head of the department and manager and
manager and the data are entered in the particular account.
6. Then the daily entries are mail to head office.
7. After making the entries the payment activity is made during the period.
8. The required fund for the payment generally comes from the head office.

Credit policy of Alok:

Credit is facility provided by the company, which enables the creditor to extend the pay off

period to some days as per company’s policy. Alok generally provided the credit facility of 30
days to all the parties or consumer of product.

Dividend:-

Dividend is that amount of capital or profit, which is shared between the shareholders of the
company after meeting all the expenses. The director had authorized the payment of an interim

57
dividend of Rs.60 per share during the year the expenses. The director had authorized the

payment of an interim dividend of Rs.60 per share during the year.

Export:-

During the year made the export and the efforts are made to achieve the higher growth.

Insurance :-

Plant and machinery, stock, building etc of the companies have been adequate insured.

Accounting policy of Alok:

Basic of preparation of financial statement:- The accompanying financial statement has

been prepared under historical cost convention in accordance with generally accepted

accounting principles and provisions of the company

Use of estimates - The preparation of financial statement in conformity with the generally

accepted accounting principles required estimates and assumptions to be made that affect

the reported amounts of assets and liabilities on the date of the financial statement and the

reported amounts of revenues and expenses during the period.

Fixed assets : - Fixed assets are recorded at the cost of acquisition including incidental

expenses. They are stated at historical cost.

Depreciation :- Depreciation on the fixed assets is provided on written down value method

excepted in respect of non-factory

Investment;- Investment classified as long term investments a fare started at the cost

provision is made to recognize a declined, other than temporary n the value of investment.

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Foreign Currency Transaction ; - Transaction in foreign currency is recorded at the

original rate of return exchange in force at the time transaction is affected.

Revenue Recognition : - Revenue in respect of insurance, interest, etc is recognized only

with it is reasonably certain that the ultimate collection will be made.

Audit System : - Audit is the process of checking, verifying and inspecting the financial

procedure and position of the company. They are two types of audit are carried out in Alok

Internal audit

Statutory audit
Conclusion and
Suggestions
 Conclusion and Suggestion

 Company needs to invest more in its current assets if it fails to do so then in

near future company’s CL may increase over CA and short term liquidity

position might be in threatening condition and it may struggle to meet its

current obligations.

 Company needs to keep more liquid asset in form of cash as cash is

considered to the most liquid asset.

 Company needs to exercise control over its investment in inventories as

inventories are considered to less liquid as compared to BR and other readily

convertible or marketable securities. If company fails to do so then it may not

be able to meet its current obligation. Company needs to improve its debt

position by reducing debt in its capital mix, otherwise it may led to creditors’

pressures and constraints on managements independent functioning and

energies. If company fails to reduce its debt, it may get entangled in a Debt

Trap.
 It’s high time for company to think about its indebtedness. Company needs to
reduce its debt capital in order to sound financially strong. Otherwise, company
may suffer great strains, it may even fail to pay interest charges of creditors, as a
result their pressure and control may further tightened. Company needs to review
its portfolio regarding use of debt in its capital mix.
 The company should make efforts to improve the operational efficiency, or to retire
debt to have a comfortable coverage ratio, by analysing the variability of the
company’s cash flows over time
 Failure of reducing investment in sluggish inventories doing so may lead to
increased costs and reduced profits. So the absolute inventories must be written off.
 Company should investigate and find out slow moving or absolute stock and take
appropriate steps to write-off them as soon as possible otherwise this will
adversely affect working capital and liquidity position of the company
 Company needs to reduce investment in sluggish inventories that leads to
unnecessary tied-up of funds. Failure of doing so may lead to increased costs and
reduced profits. So the absolute inventories must be written off
 Company should improve its collection policy by improving credit terms and
policy. More sales promotion activities should be carried out t increase sales at
this given level of assets. On the other hand it necessary to check whether assets
are properly valued i.e. whether undervalued or overvalued because valuation of
assets is very important.
 Company should make efforts to reduce its variable costs in order to earn more
profit margins in near future.
 So company must purchase the material as and when needed so as to reduce
cost of goods sold. And company also needs to exercise control over its
unnecessary administrative and office expenses.
 If company is not able to control its cost of goods sold it will damage its profitability
 position which reduce investor’s confidence.