PROJECT

PRIME VENEERS LTD

KANNUR, KERALA Internship Training Study Report

Submitted in the partial fulfillment of the course of Master of Business Administration

Submitted By Avinash Vijayan 3rd 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 PVs 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. Precompressed 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. ii. FIRE RETARDANT PLYWOOD: This plywood is ideal for residential and nonresidential building, transportation vehicles. 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. 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. 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. 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. SUPER BLOCK BOARDS: Bonded with phonemic resin to reduce by special process with extra care. This product is free from warping and surface undulation. 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.

iii.

iv.

v.

vi.

vii.

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 (Administration) General Manager (Technical)

Import Export

Purchase Executive

Quality mgt. system

HB/PEP

Store

Electrical

Company secretary

Chief Accounts Officer Development Manager Workers Manager

Technical Mgr. Marketing Mgr.

Plywood, Flush Door, Block Board

Central Excise Sales Manager

CHAPTER 4

Plant Manger DWD Executives

Densified wood products

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.
INPUT (RAW MATERIALS) CONVERSION PROCESS OUTPUT (FINAL PRODUCT)

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, y y y 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.PVs processing line is made up of Italian, Germany and Swedish machinery.

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

LOGYARD
CROSS CUTTING

BOILING

PEELING

CLIPPER
DRYING

EDGING AND JOINING

GLUING

ASSEMBLING
FREE PRESS

HOT PRESS

CONDITIONING

TRIMMING

SANDING

FINISHING

CHAPTER - 6

HUMAN RESOURCE DEPARTMENT INTRODUCTION:

The effective management of an organization involves planning, organizing, staffing, leading, co-ordinating, monitoring and controlling the 4 Ms; Men Machines Materials Methods The 4 Ms are known to be the supporting pillars of an organization. All the four Ms 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 Ltdsendeavour to select, place, develop and maintain competent personnel at all functional positions within the organization.

HRD Objectives:
y y y y y 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 years 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 :

y National & Festival Holidays with wages will be allowed to the workmen as provided for in the Kerala industrial Establishment (National & Festival Holidays) Act. y 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:

j To increase productivity. j To improve quality j To improve organizational climate. j To improve health and safety. j Personal growth.

5. Welfare activity
The following welfare facilities are there in our Organization; a) b) c) d) e) E.S.I Scheme Workers Canteen at subsidized rates. Staff Mess Co-operative Credit Society. Medical Re-imbursement for those not covered under E.S.I Ambulance Festival Advances

f)
g)

h)

Book Advance Staff Recreation Club

i)

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. y y y 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 tenders quotation are sent.

TYPES OF SALES:
y y y 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 y y y y y y y y Germany Bahrain Sri Lanka Israel UAE Malaysia USA South Africa .

INDUSTRIAL MARKET:
The main industrial consumers of PV Ltdare :y y y 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:

y y y y

Building construction industry . Interior designing Board building industry Automotive building

y 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 . y y y 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 31st MARCH,2010.

Sch No INCOME Sales Less: Excise Duty recovered on sales Other Income Increase / (Decrease) in stock Total EXPENDITURE Purchase of finished goods Materials Consumed Manufacturing and Other Expenses Finance Charges Excise Duty Prior Period Adjustment Total Profit before Extraordinary Items, Depreciation and Taxation Less : Extraordinary Item (See Note No.B (10) of Schedule 16) Profit before Depreciation and Taxation Less : Depreciation Profit before Taxation Less: Provision for Taxation - Current Tax - Deffered Tax - Fringe Benefit Tax Profit for the year carried to Balance Sheet Earning per share )in Rupees)(Basic & Diluted (Face value of Rs. 10/- each) - Including Extra ordinary Items - Excluding Extra ordinary Items Significant Accounting Policies and Notes to Accounts 14 11 12 13

For the Year ended 31.03.2010 816052 63519 752,533 7,702 (4,522) 755,713 1,037 246,220 343,762 57,698 (1,669) 3,534 650,582 105,131 9,964 95,167

For the year ended 31.03.2009 719,255 85,242 634,013 1,282 21,001 656,296

9 10

797 205,950 294,719 61,551 (3,173) 1,447 561,291 95,005 95,005 46,607 48,398

46,599 48,568

5,442 16,999 291 25,836 15

5,500 130 42,768

2.5 3.7

4.5 4.5

16

BALANCE SHEET AS AT 31ST MARCH, 2010

Sch. No I SOURCE OF FUNDS 1. Shareholders Funds a) Capital b) Reserves and surplus 2. Loan Funds a) Secured Loans b) Unsecured Loans 3. II Defered Tax Liablity TOTAL APPLICATION OF FUNDS 1 Fixed Assets a) Gross Block b) Less: Depreciation c) Net Block d) Capital Work in progress 2. 3. Investments Current Assets, Loans and Advances a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Loans and Advances A Less: Current Liabilities and Provisions a) Current Liabilities b) Provisions B Net Current Assets (A B) Total 8 6 7 5 3 4 1 2

As at 31.03.2010

As at 31.03.2009

223200 121790 469786 18256 16999 850031

223200 84488 480645 19635 807968

1193164 778083 415081 5632

1183150 732396 450754 3456 5632

417870 112722 47558 47589 625739

424145 97695 29902 42515 594257

145105 51316 196421 429318 850031

186623 59508 246131 348126 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:
y y y y y y 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:
y y y y y y 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:
y y y y 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:
y y y y 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 companys 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 WIPs 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.