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An organisation study at globe-tech fortune industry private limited
CHAPTER 1:
1.1 INTRODUCTION ABOUT THE ORGANISATION

FortunIndustries is a full-service machine shop started in 2003. It is equipped with
latest technology in CNC Milling, CNC Turning, with acquisition of multi-function
CNC Machining. It is supplying engineering components for various industries like
Tools, Dies, Automobile, Electronics etc. Because of "Under One Roof" Concept,
Fortune is one of the Biggest Supplier to its customers and are Growing together.
Precision machineries are helping to meet the production
COMPANY LOGO
The specialty of Globe Tech Fortune Industries is it has got all type of conventional
machineries to support the CNC activities. All these conventional machineries are
helping to meet the production requirement and competitive price as well with highest
quality. Globe Tech Fortune Industries is engaged in manufacturing various types of
Press tools, Precision Tools, Jigs, Fixtures, and supply of Pressed Tools for Pressing
Machines Globe Tech Fortune Industries is supplying components tools to various
types from small scale industries to foreign companies. Throughout the process Globe
Tech Fortune Industries is maintaining high quality standards. The proposition for
success of Globe Tech Fortune Industries is evolved around a philosophy echoing
consistent quality assurance.
BANGALORE INSITUTE OF TECHOLOGY Page 1

They hog a slice of overall business pie on the strength of producing highest quality
standards throughout the production chain. The proposition for success of Globe Tech
Fortune Industries is evolved around a philosophy echoing consistent quality
assurance. They hog a slice of overall business pie on the strength of producing
highest quality standards throughout the production chain. Globe Tech Fortune
Industries provides heat treatment processes for ferrous metals, like die steels,
Stainless Steels and also does case hardening, Normalizing, Annealing, Hardening
and Tempering, Stress Relieving, Stabilizing of metals.
The Heat Treatment Unit was established in 2009. The unit has a total strength of Forty
people that includes our management, technicians and administration and support staff.
Globe Tech Fortune Industries is located in the industrial area of Bangalore, Karnataka
and has grown with the engineering and manufacturing industry here.
Globe Tech Fortune Industries is managed under the able leadership of Mr Ganesh
Hegde, Proprietor and Mr Pradeep Kumar Teerth Metallurgist who has over two decades
of experience in the specialized areas of heat treatment and case hardening and has
worked with several reputed companies and across several industrial applications.
1.2 INTRODUCTION ABOUT THE INDUSTRY
Industrial manufacturing is a major growth sector for the Indian economy with
diverse companies including those engaged in manufacturing of machinery and
equipment, electrical and metal products, cement, building and construction material,
rubber and plastic products and automation technology products.
Manufacturing Industry in India has gone through various phases of development over
the period of time. Since independence in 1947, the domestic manufacturing sector has
travelled from building the industrial foundation in 1950’s and early 1960’s, to the
license–permit Raj between 1965 to 1980. Then it underwent a phase of liberalization of
1990’s and finally to the present phase of global competitiveness. The Indian
Manufacturing sector currently contributes 16-17% to GDP and gives employment to

around 12% (2014) of the country’s workforce. Various studies have estimated that
every job created in manufacturing has a multiplier effect in creating 2–3 jobs in the
services sector. In a country like India, where employment generation is one of the
key policy issues, this makes this sector a critical one to achieve inclusive growth.
Manufacturing is thus rightfully at the centre-place of the Hon’ble Prime Minister’s
Vision for Make in India (MII), which is to increase contribution of manufacturing to
GDP to 25%. With a view to achieving this objective Prime Minister Narendra Modi
launched MII on September 25, 2014.
While a number of factors like robust domestic demand, a growing middle class, a young
population and a high return on investment, makes India a credible investment destination
and presents an attractive opportunity to manufacturers, MII campaign has emerged as a
unifying factor with a holistic approach to take India to a new level of economic growth.
The 25 strategic sectors that have been identified under the campaign offer a gamut of
opportunities for investment. Further, a concerted plan is underway to initiate policy
reforms in the identified sectors to further buttress manufacturing growth.
The MII initiative has provided fresh impetus to several sectors and has presented
before the companies a wide scope for investments and opportunities in terms of
partnerships, collaborations or joint ventures, R&D, manufacturing, distributorship,
financing and insurance or local support.
The future of Indian Manufacturing remains bright and we look forward to seeing the
sector going from strength to strength in the coming years. Global economic scenario
as well as the steps taken by the Government impact performance in the
manufacturing sector in the short, medium and long term.
CII through its various activities under the aegis of National Manufacturing Council
has been at the forefront of the MII agenda and worked closely with the Government
in providing inputs on key issues across the manufacturing spectrum to facilitate
growth, enhance efficacy and competitiveness as well as generate business
opportunities for both local and foreign investors. The overall mission of the Council

has been to align with MII and help manufacturing sector increase its contribution to
25% by 2022.

CHAPTER 2
2.1 BACKGROUND
Fortune
Export to
Industries M/Shop Acquisition Merger with
of Fastec Germany Preci tech
Inception Industries
2003 2009 2014 2016 2017 2018
Fortune Globe-Tech
Acquisition of
Industries Heat Fortune-Pvt. Ltd
Bhirava
Treatment & Company
Industries
Laboratory
Fortune industry machine shop was started in 2003. In 2009 fortune industries added
heat treatment and laboratory to the company. The fortune industry acquisitioned
Fastec industry in 2014. And in 2016 Bhirava industry was acquisitioned. The fortune
industry started exporting internationally to Germany in the year 2017. Fortune
industry merged with preci tech in the year 2018 and became globe-tech fortune
industry pvt.ltd. company.
Fortune Industries is a full-service machine shop started in 2003. It is equipped with

latest technology in CNC Milling, CNC Turning, with acquisition of multi-function
CNC Machining. It is supplying engineering components for various industries like

Tools, Dies, Automobile, Electronics etc. Because of “Under One Roof” Concept,
Fortune is one of the Biggest Supplier to its customers and are Growing together.
The specialty of Fortune Industries is it has got all type of conventional machineries
to support the CNC activities. All these conventional machineries are helping to meet
the production requirement and competitive price as well with highest quality.
Fortune Industry is engaged in manufacturing various types of Press tools, Precision
Tools, Jigs, Fixtures, and supply of Pressed Tools for Pressing Machines.
In the manufacturing of Tools, Jigs, Dies, Fortune achieves the customer satisfaction
by its team work and multi skilled workmen's in following sections:
1. Cutting Section
2. Turning Section
3. Milling Section
4. Drilling & Tapping Section
5. CNC Milling Section
6. CNC Turning Section
7. Surface Grinding Section
8. Assembly section
The major customers for the unit are reputed companies like
1. Kennametal India Ltd.,

2. Ingersoll Rand International India Ltd.,
3. Hitachi Koki India ltd.,
4. Canara Hydraulics Pvt Ltd.,
5. Soplar India Pvt. Ltd.,
6. Pragathi Transmission Pvt. Ltd.
7. Indo – US MIM Tec Pvt. Ltd.
8. Rotark controls pvt.Ltd.
9. L & T.
10. Aequs private Limited.
11. Ams india ltd
12. Motherson sumi
13. Concentra (tegu tech)

14. Zylindrotek systems

15. Magnum machine tools
16. B g k hydraulics & engineering co. (rane - Coimbatore)
17. Tmeic
18. Ingresoll rand
19. G c l india pvt ltd
20. Canara hydraulics
21. Rotork
22. Zircast pvt. Ltd.
23. Bonfiglioli transmission (pvt) ltd. {btp}
Heat treatment facilities that are provided are:
• Pit type Gas Carburizing Furnaces
• Sealed Quench Furnace
• Inspection Facilities
• Metallurgical Lab Facilities

2.2 NATURE OF BUSINESS
Nature of Business Manufacturer,
Managing director Mr Ganesh Hegde
 L&T
 GEAROCKFORGE PRIVATE LTD
 FEDERAL MOGUL GOETZE
Key Customers  BILLFORGE
 KENNAMETAL INDIA LTD
 AUTOMOTIVE LEVERS
 QUALITY AUTO MOTIVES
No.438, 12 Cross, 4th Phase, Peenya Industrial Area,

Registered Address
Bengaluru - 560058, Karnataka, India.
Industry Manufacturing, service
Total Number of
120 to 150 People
Employees
Year of Establishment 2003
Legal Status of Firm Sole-Proprietorship Firm
Annual Turnover Rs. 11 - 13Crore

2.3 MISSION, VISION, QUALITY POLICY
MISSION
“To serve customers with passion, by providing the best service and to earn customers
satisfaction, enthusiasm through continues improvement driven by the integrity,
teamwork, motivation of Fortune Employees.”
VISION
“To provide Employment to 2000+ people and to be a leading manufacturing of

precision machined parts and with all type of Heat treatment facilities, by
achieving 100% customer’s satisfaction in sales, services and providing the best
value-added services to all customers’’.
QUALITY
❖
Globe Tech Fortune industries facilities and services are certified for quality from
leading industry standards and we are also an ISO 9001:2008 certified Unit.
❖
Globe Tech Fortune Industry has established manufacturing and quality control
processes that enable us to ensure that every batch of heat-treated products offers
the same consistent quality and performance as it is expected to.
❖
Our services have been certified for vendor quality and rating by leading
industrial organisations and certification agencies.

2.4 WORKFLOW MODEL
Customer Quotation Purchase

order
Heat Rough Raw

treatment turning material
CNC Milling Cylindrical

operations operations grinding
Quality
Dispatch
control
1. First, the customer sends the quotation to the company for manufacturing the
required customized products for the company, then the company in return sends
the price quotation to the buyer company, if the company is satisfied with the
price the it drafts the purchase order along with the drawing of the products to be
manufactured with detailed specifications.

2. The next step is the arrangement of raw materials, the raw materials are available
in the company stock or if the company has to order for the required raw materials
from its suppliers.
3. After availing the raw materials, they have to undergo rough turning that is using
lathe machine. The semi-finished products are to be modified according to the
required sizes, thickness and length.
4. Then they are sent to GFC department for heat treatment this will be in
accordance with the customer specifications. If required they are further sent to
SQF for cooling.
5. Then the raw materials are converted into finished products with the help pf
suitable machineries.
6. The final process is quality checking, whether the manufactured products will
match the requirement of the customer order and should go through quality
inspection.
7. After the product passes through the quality check it will dispatch to the customer
and receives payment.

1.3 PRODUCT/SERVICE PROFILE
HEAT • GAS CARBURIZING FURNACE (PIT TYPE)

TREATMENT • SEALED QUENCH FURNACE
HT PROCESSES ARE:
CARBURIZING & HARDENING (CASE DEPTH 0.2 TO 4.0MM)
CARBURIZING & ANNEALING (CASE DEPTH 0.2 TO 4.0MM)
THROUGH HARDENING
CARBO NITRIDING
NORMALIZING
ANNEALING
STRESS RELIEVING
STABILIZING
• GAS CARBURIZING FURNACE

• Pit type Gas carburizing furnaces

• dimension- 680mm X 1500 mm Number: 3
• Pit type Tempering Furnaces
• Dimension- 680mm X 1650 mm Number: 3
• Quench oil tanks
1) Capacity 7500ltrs (grade: MF 200) : 2
• Ovens-2 No’s
• SEALED QUENCH FURNACE
• Sealed Quench Furnace – 3 No.

Capacity :650Kgs/batch
Dimension :650 Width X 650 HeightX1250 length
• Box type bogie hearth Tempering Furnace: - 1

NO Capacity:1500 Kgs
• Alkali washing machine: - 1 No

PRODUCTS:
Following sections are present in Globe-Tech Fortune:
1. Cutting Section
2. Turning Section
3. Milling Section
4. Drilling & Tapping Section
5. CNC Milling Section
6. CNC Turning Section
7. Surface Grinding Section
8. Assembly section

Laboratory equipment's are:

• Micro hardness tester
Make : MatsuzawaJapan
• Microscope
Make : Metji Japan
• Sample cuttingmachine
Make : Chennai Metco
• Specimen mountingmachine
Make : Metji
• Polishing machine
Make : Chennai Metco

PRODUCTS PRODUCED ARE:
1. ENTRY GUIDE 2. VANE
3. KURBEL 4. CRANK WITH BOLT
5. HEAT SINK 6. SHAFT WITH CRANK

7 DECKEL 8. COOLING ELEMENT
9. BLOCK

2.6 OWNERSHIP PATTERN

The company was established by Mr. Ganesh Hegde in the year 2003. It is a
sole proprietorship company registered office is at Bangalore. Mr. Ganesh
Hegde a visionary and an industrialist in the state of Karnataka.
2.7 ACHIEVEMENTS
Turnover in Millions
150 134
85 94
100 71
41 42 48
50 30
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
2003 2018
2 EMPLOYMENT IN NUMBERS 150
2.7 FUTURE GROWTH AND PROSPECTS
Expansion of fortune industry by addition of an extra unit at Peenya with facilities like
1. cold forging which is a manufacturing process where a bar stock is inserted into a
die and squeezed with a second closed die. The deformation starts at room
temperature and changes the shape and size of the initial part until it has assumed the
shape of the die.
2. SQF and CMM a coordinate measuring machine is a device that measures the
geometry of physical objects by sensing discrete points on the surface of the object
with a probe.

CHAPTER 3
3.1 MCKINSEY’S 7S FRAMEWORK WITH REFERENCE TO

ORGANISATION UNDERSTUDY
The McKinsey 7S model involves seven interdependent factors which are

categorized as either "hard" or "soft" elements.
Hard Elements Soft Elements

Strategy Shared Values
Structure Skills
Systems Style
Staff

The way the model is presented in figure above depicts the interdependency of the
elements and indicates how a change in one affects all the others. Let's look at each
other elements specifically:
Strategy: The plan devised to maintain and build competitive advantage over the
competition.
Structure: The basic organization of the company, its departments, reporting lines,
areas of expertise, and responsibility (and how they inter- relate).
Systems: Formal and Informal procedures that govern everyday activity, covering
everything from management information systems, through to the systems at the point
of contact with the customer (retail systems, call centre systems, online systems, etc).
Skills: The capabilities and competencies that exist within the company. What it does
best.
Shared values: Called " super ordinate goals". The values and beliefs of the company.
Ultimately, they guide employee towards 'valued' behaviour.
Style: The leadership approach of top management and the company's overall
operating approach.
Staff: The employees and their general capabilities.
1. STRATEGY
Proposed Strategy
❖
Strengthen Indian and Foreign operations.
❖
Maintain and seek control over Raw materials.
❖
Focus on “Under One Roof’’ concept.
❖
Focus on High Growth in competitive markets and pricing stability in
Developed markets.
❖
Increasing focus on high quality products.

Growth Strategy
The following figure shows the Organisational Growth Strategy:
2.STRUCTURE
The Structure of the company was modified in the year 2003, to suitably incorporated
changes which will lead to the adequate realization and maximum benefits from the
much talked about criticized activities.
The following figure shows the Organisational Structure: -
Managing Director
Director
Accounts & Stores

Admin
Quality Billing Incharge
Purchase Logistics Assurance head Prod Planning Incharge
Head Incharge & Control Head
Maintenance
Production
Supervisor
Operators
Helpers

3. STAFF
Globe-Tech Fortune Industry’s recruitment policy is designed to attract the right

talented person at the right time, to enhance the net worth of the human capital and to
obtain the best results and possible person on job, which will contribute to company’s
welfare and effectiveness activities.
The Company’s Recruitment policy aim at:

❖
Being fair and consistent.
❖
Being disciplinary on the ground.
❖
Follow the statutory rules and regulations.
Training and Development:
❖
Faculty Support.
❖
Safety training received special attention based on the guide lines
identification of skill gaps.
❖
Up-skilling employees through process based, on the job training and
technical courses through any engineering institutes.
4. SKILL
Managing the manpower with a human touch has and always will be the cornerstone
of the HR policy of Globe-Tech Fortune Industries. The factors that helped the
success of rightsizing at Globe-Tech Fortune Industry could be summarized as under:
Cultural Issues
❖
To take steps to understand the employees needs and wants/ expectations.
❖
To make preparation of mind and attitude to understanding.
❖
To create an excitement through intense counselling.
❖
To motivate an individual by sharing information.
Leadership
❖
Identification of key leaders within a working environment.
❖
Open and collaborative leadership.
❖
Development of soft skills in handling the delicate process or activities.
❖
Empowerment of leaders at all levels to take quick decisions.
Education and Communication
❖
Developing climate of trust and openness.
❖
Making an employee’s awareness of new machines and technology.
❖
Educate an employee by sharing ideas, knowledge etc.,
❖
Communicate the rules, regulations, policies and procedures of a Company.
5. SHARED VALUES
The various values shared at Globe-tech fortune industries are as follows:
• Deliver smile, delight and superior value to external and internal customer.
• High respect and concern for external and internal customers
• Customer focused high-performance culture.
• To attract the best talent, retain and offer an innovative, exciting and
rewarding work climate.
• Transparency.
• Continuous learning and development.
6. SYSTEM
The present system has been designed keeping mind any organisation in the
manufacturing industry when the primary resources is manpower and raw materials.
This system can be customised and implemented in any manufacturing industries. It
gives a tool to manage the human resource and raw materials through effective and
efficient development and management of manpower and raw materials.
The various systems that exist at the industries are as follows:
• Purchase system

• Billing system
• Quality control system
Purchase system:
• The person who requires items will raise an intent to purchase department.
Purchase department will take quotation from various parties.
• Purchase department will raise order comparison form and it will be signed by
purchase department, Costing, Finance Head and passed to Purchase committee.
Once it passes purchase committee it will be sent for Management approval.
After management approval Purchase department will raise purchase order to

party.
Billing system:
• Goods will be transferred from factory to customer
• invoice will be raised to the company's appointed customer.
7. STYLE
Globe-Tech Fortune Industry has combines functionality and style, to take a never
before range in supplying engineering components like tools, dies, automobile,
electronics etc. because of “Under One Roof’’ concept.
Appeal against products or goods of discharge or dismissal should be addressed to

the Directors of the Departments or Committee concerned. The time limit of the
appeal should be a specific period from the date of issue of such orders.

3.2 PORTERS FIVE FORCE MODEL WITH REFERRENCE TO

THE ORGANIZATION AT STUDY
Porter's Five Forces is a model that identifies and analyses five competitive forces
that shape every industry, and helps determine an industry's weaknesses and
strengths. Frequently used to identify an industry's structure to determine corporate
strategy, Porter's model can be applied to any segment of the economy to search for
profitability and attractiveness.
1. Competition in the industry
This force refers to the number of competitors and their ability to undercut a company.
The larger the number of competitors, along with the number of equivalent products and
services they offer, the lesser the power of a company. Suppliers and buyers seek out a
company's competition if they are able to offer a better deal or lower prices. Conversely,
when competitive rivalry is low, a company has greater power to charge higher prices and
set the terms of deals to achieve higher sales and profits.

2. Potential of new entrants into an industry
A company's power is also affected by the force of new entrants into its market. The
less time and money it cost for a competitor to enter a company's market and be an
effective competitor, the more a company's position may be significantly weakened.
An industry with strong barriers to entry is an attractive feature for companies that
allows them to charge higher prices and negotiate better terms.
3. Power of suppliers
This force addresses how easily suppliers can drive up the cost of inputs. It is affected
by the number of suppliers of key inputs of a good or service, how unique these inputs
are, and how much it would cost a company to switch from one supplier to another.
The fewer the number of suppliers, and the more a company depends upon a supplier,
the more power a supplier holds to drive up input costs and push for advantage in
trade. On the other hand, when there are many suppliers or low switching costs
between rival suppliers a company can keep input costs lower increasing profits.
4. Power of customers
This specifically deals with the ability that customers have to drive prices down. It is
affected by how many buyers or customers a company has, how significant each
customer is, and how much it would cost a company to find new customers or
markets for its output. A smaller and more powerful client base, means that each
customer has more power to negotiate for lower prices and better deals. A company
that has many, smaller, independent customers will have an easier time charging
higher prices to increase profitability.
5. Threat of substitutes
Substitute goods or services that can be used in place of a company's products or

services pose a threat. Companies that produce goods or services for which there are
no close substitutes will have more power to increase prices and lock in favourable
terms. When close substitutes are available, customers will have the option to forgo
buying a company's product, and a company's power can be weakened.

1. Threat of new entrants

New entrants are attracted to the machine tools industry by the profits involved.
Globe-Tech is known for its quality standards and is one among the few
companies to have in-house metallurgical lab facilities. Also, the huge
investments involved might act as a barrier to new entrants.
2. Threat of substitutes
Globe-tech has many automobile companies as its customers. The change in
technology and the shift in demand from diesel to electric machines pose a threat
to Globe-Tech as electric engines do not require heat treatment, thus depriving the
company of its sales.
3. Bargaining power of customers

Peenya industrial area by itself houses almost 2000 machine shops and 50-100
heat treatment companies. In spite of the rough competition, the standard rates (in
terms of tonnage) across the industry curb the bargaining power of the customers.
4. Bargaining power of suppliers

the industry does not have any monopoly suppliers. The raw material rates being
standard across the industry, the suppliers do not enjoy much bargaining power.
5. Competitive rivalry
The machine tools industry comprises of a huge number of companies. Globe-
Tech has to compete with almost 2000 machine shop companies just in the Peenya
industrial area. Globe-Tech has established a strong hold and customer base over
the years and is well informed about the competitor’s policies and performance
which has contributed to the survival in this industry.

CHAPTER 4
SWOT ANALYSIS
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to

evaluate a company's competitive position and to develop strategic planning. SWOT
analysis assesses internal and external factors, as well as current and future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at

the strengths and weaknesses of an organization, its initiatives, or an industry. The
organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or
grey areas and instead focusing on real-life contexts. Companies should use it as a
guide and not necessarily as a prescription.
1. Strengths describe what an organization excels at and what separates it from the
competition: a strong brand, loyal customer base, a strong balance sheet, unique
technology, and so on. For example, a hedge fund may have developed a
proprietary trading strategy that returns market-beating results. It must then decide
how to use those results to attract new investors.
2. Weaknesses stop an organization from performing at its optimum level. They are
areas where the business needs to improve to remain competitive: a weak brand,
higher-than-average turnover, high levels of debt, an inadequate supply chain, or
lack of capital.
3. Opportunities refer to favourable external factors that could give an organization a
competitive advantage. For example, if a country cuts tariffs, a car manufacturer
can export its cars into a new market, increasing sales and market share.
4. Threats refer to factors that have the potential to harm an organization. For
example, a drought is a threat to a wheat-producing company, as it may destroy or
reduce the crop yield. Other common threats include things like rising costs for
materials, increasing competition, tight labour supply and so on.

SWOT ANALYSIS OF GLOBE-TECH FORTUNE INDUSTRY PRIVATE

LIMITED
STRENGTH: -
 Highly skilled team


Globe-Tech has a highly skilled team both in managerial skills as well as
technical skills.

 Motivated & Enthusiastic leader

The managing director of the organisation is a motivated and enthusiastic
leader who helps in motivated and for creating a positive working
environment for his employees.

 Brand Reputation

Globe-tech has created a brand for itself due to its high quality maintained by the
company and also the quality of service provided has always been excellent.
 Under "single roof" concept

Globe-tech follows under single roof concept where all the required processes
for manufacture of components/tools are done at the company without any
outsourcing.
WEAKNESS: -
 No marketing team

The company lacks at having a marketing team which affects them for
increasing their sales.

 Lack of design team

The company does not have a design team which could be used to design own
products. They have to depend on the designs given by the customers.

 Maintenance

Maintenance cost of the furnaces for the heat treatment are very high as they
are always turned on and the machines are 24 hours 6 days a week which
increases the maintenance cost.

 Communication

The communication between the management and employees is mainly oral
thus many information is lost among them.

 Safety measures

Even though there are safety measures available at the company many employees
are unwilling to wear them due to social cultural and personal issue.
OPPORTUNITY: -
 To delight the customers


Since der are about 2000 machine shops at Peenya area the company has an
opportunity to delight the customers by exceeding their expectations.

 Vendor Development

There is an opportunity in doing vendor assessment, vendor rating,
performance which is currently not done.

 Budget Allocation

The company has not system or management for tracking of allocated budget.

 Developing own product

The company has an opportunity to develop its own product using the
available resources and the technical knowledge of the management.

 People management

A system has to made so as to reduce the number of absentees since if one
employee is absent no other employee is capable of doing his job due to the
different machines and skill requirement.

 Fortune help desk

Development of a help desk so as to help any queries for customer and
employees of the organization.
THREATS: -
 No cost reduction

There cannot be any cost reduction as all the machine shops in the area have a
single price to reduce competition among themselves.

 Government Pollution regulation.

CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENT
Balance Sheet as on 31st March 2017 & 2018.
PARTICULARS 2017 2018

( Amt in Rs) (Amt in Rs)
1. SOURCES OF FUNDS
Capital 1,20,26,076 1,47,80,135
Secured Loans 3,34,58,363 3,38,86,553
Unsecured Loans 67,99,302 72,57,615
Total 5,22,83,741 5,59,24,303
2. APPLICATION OF FUNDS
Fixed Assets 2,26,10,709 2,26,30,989
Investment 10,93,923 53,02,808
Current Assets, Loans & Advances
Sundry Debtors 1,35,20,310 1,60,72,616
Deposits 21,01,772 29,17,296
Loans & Advances 57,10,999 75,26,847
Cash & Bank Balances 6,81,654 8,17,252
Closing Stock 1,10,89,680 1,13,24,500
Less: Current Liabilities & Provisions 1,67,594 -
Sundry Creditors 2,07,22,540 1,56,19,881
Provisions 8,02,270 10,48,126
Total 5,68,09,047 6,65,92,311

FINANCIAL STATEMENT ANALYSIS
1. CURRENT RATIO
The current ratio is a liquidity ratio that shows organization capacity to pay short- and
long-term obligations.
CA is sum of stock in trade, sundry debtors and balance of cash and bank.
Current liability is Current portion of short-term debt
Current ratio= Total Current Assets / Total Current liabilities.
5.1 Table showing Current Ratio
Year CA CL RATIO
(Amt in Rs) (Amt in Rs)
2017 3,10,02,643 2,15,24,810 1.44
2018 3,57,41,215 1,66,68,007 2.144
CURRENT RATIO
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2017 2018

2. QUICK RATIO
The Quick ratio is a measure of how well a company can meet its short – term financial
liabilities. Also known as the Acid – test ratio, it can be calculated as follows:
Quick ratio= (Cash + Marketable Securities + Accounts Receivable) / Current

Liabilities
5.2 Table Showing QR
Year Quick assets Current liability Ratios

2017 2,15,24,810 2,15,24,810 0.75
2018 1,98,07,164 1,66,68,007 1.18
`
QUICK RATIO
2
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2017 2018

3. Gross Profit Ratio:
Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between
gross profit and total net sales revenue. It is a popular tool to evaluate the operational
performance of the business. The ratio is computed by dividing the gross profit figure
by net sales.
Gross Profit Ratio= Gross Profit / Net sales
5.3 Table showing Gross Profit Ratio
Year Gross Profit Net sales Gross Profit

(Amt in Rs) Ratio
2017 1,67,72,310 1,51,69,969 1.10
2018 1,65,71,246 2,85,29,305 0.58
GROSS PROFIT RATIO

2
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2017 2018

4. Net Profit Ratio:
The Net Profit percentage is the ratio of after- tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been
deducted from sales, and income taxes recognized.
Net Profit Ratio= Net Profit / Net Sales *100
5.4 Table showing Net Profit Ratio
Year Net Profit Net Sales*100 Net Profit Ratio

(Amt in Rs)
2017 28,10,057 1,51,69,969*100 18.50%
2018 31,26,390 2,85,29,305*100 10.90%
NET PROFIT RATIO

2
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2017 2018

5. PROPRIETARY RATIO
Proprietary ratio is the amount of shareholders equity to total assets, and it gives an
complete picture of the amount of capitalization presently helps to support a business.
And it is called as Equity ratio.
Net worth = Capital + Reserves+ P&L a/c credit balance

TA = NCA + CA
Proprietary Ratio= Net worth / Total assets
5.7 Table Showing Proprietary Ratio
Year Net worth Total Assets Proprietary Ratio

2017 1,20,26,076 5,36,13,352 0.22
2018 1,47,80,135 5,83,72,204 0.25
PROPRIETARY RATIO
2
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2017 2018

6. FIXED ASSETS TO NET WORTH RATIO
Fixed assets to net worth ratio is a ratio measuring the solvency of a company. This
ratio indicates the extent to which the owners' cash is frozen in the form of fixed
assets, such as property, plant, and equipment, and the extent to which funds are
available for the company's operations (i.e. for working capital).
Fixed assets to Net Worth = Net fixed assets / Net worth
5.6 Table Showing Proprietary Ratio
Year Fixed asset Net worth Proprietary Ratio

2017 2,26,10,709 1,20,26,076 1.88
2018 2,26,30,989 1,47,80,135 1.53
FIXED ASSET TO NET WORTH RATIO

2
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2017 2018

CHAPTER 6
LEARNING EXPERIENCE
The training helped me to know the various departments in detail so I can get the
knowledge about the organisation from different aspects and to study the functions of
different departments. It helped me to feel the real business environment and to know
the activities of the different staff.
The organisation uses Tally ERP 9 and i-SEED software overall in all departments of
the organisation to make any kind of transactions such as to note down inventory
purchases, products sold, and also to prepare bills and receipts etc.
The training is very useful as it manifolds the confidence apart from theoretical
knowledge to know various departments effectively contribution towards the
fulfilment of organisational goal, to know about the partial aspects of the functioning
of an organisation.
It helped me to know the relation between various departments & co-relation of them.
Preparation of project imparts of professional skills which will be great to use in
future. It helped me to know the strategies used by the company to achieve its
objectives and about welfare facilities adopted by the company, to know about
company competitors and to know how to behave in corporate world.

Bibliography
Books:
1. Strategic management by R. Srinivasan
Websites:
1. www.fortuneindocorp.in
2. www.wikipedia.com
Others:
1. Direct communication with the employees and the management.

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An organisation study at globe-tech fortune industry private limited

1.1 INTRODUCTION ABOUT THE ORGANISATION

BANGALORE INSITUTE OF TECHOLOGY Page 1

1.2 INTRODUCTION ABOUT THE INDUSTRY

BANGALORE INSITUTE OF TECHOLOGY Page 2

BANGALORE INSITUTE OF TECHOLOGY Page 3

BANGALORE INSITUTE OF TECHOLOGY Page 4

2003 2009 2014 2016 2017 2018

Fortune Industries is a full-service machine shop started in 2003. It is equipped with

BANGALORE INSITUTE OF TECHOLOGY Page 5

1. Kennametal India Ltd.,

BANGALORE INSITUTE OF TECHOLOGY Page 6

14. Zylindrotek systems

Heat treatment facilities that are provided are:

• Pit type Gas Carburizing Furnaces

• Sealed Quench Furnace

• Metallurgical Lab Facilities

BANGALORE INSITUTE OF TECHOLOGY Page 7

2.2 NATURE OF BUSINESS

Nature of Business Manufacturer,

Managing director Mr Ganesh Hegde

No.438, 12 Cross, 4th Phase, Peenya Industrial Area,

Industry Manufacturing, service

Year of Establishment 2003

Legal Status of Firm Sole-Proprietorship Firm

Annual Turnover Rs. 11 - 13Crore

BANGALORE INSITUTE OF TECHOLOGY Page 8

2.3 MISSION, VISION, QUALITY POLICY

“To provide Employment to 2000+ people and to be a leading manufacturing of

BANGALORE INSITUTE OF TECHOLOGY Page 9

2.4 WORKFLOW MODEL

Customer Quotation Purchase

Heat Rough Raw

CNC Milling Cylindrical

BANGALORE INSITUTE OF TECHOLOGY Page 10

BANGALORE INSITUTE OF TECHOLOGY Page 11

1.3 PRODUCT/SERVICE PROFILE

HEAT • GAS CARBURIZING FURNACE (PIT TYPE)

CARBURIZING & HARDENING (CASE DEPTH 0.2 TO 4.0MM)

CARBURIZING & ANNEALING (CASE DEPTH 0.2 TO 4.0MM)

• GAS CARBURIZING FURNACE

BANGALORE INSITUTE OF TECHOLOGY Page 12

• Pit type Gas carburizing furnaces

• SEALED QUENCH FURNACE

• Sealed Quench Furnace – 3 No.

Dimension :650 Width X 650 HeightX1250 length

• Box type bogie hearth Tempering Furnace: - 1

• Alkali washing machine: - 1 No

BANGALORE INSITUTE OF TECHOLOGY Page 13

Following sections are present in Globe-Tech Fortune:

BANGALORE INSITUTE OF TECHOLOGY Page 14

Laboratory equipment's are:

BANGALORE INSITUTE OF TECHOLOGY Page 15

PRODUCTS PRODUCED ARE:

1. ENTRY GUIDE 2. VANE

3. KURBEL 4. CRANK WITH BOLT

5. HEAT SINK 6. SHAFT WITH CRANK

BANGALORE INSITUTE OF TECHOLOGY Page 16

7 DECKEL 8. COOLING ELEMENT