A SUMMER INTERNSHIPREPORT ON

ACCOUNTING AT BHAVANI INDUSTRIES PVT LTD

Report submitted in partial fulfilment of the requirements for the

award of the Degree of

MASTER OF BUSINESSADMINISTRATION

Of

CMR UNIVERSITY

By

Sreelakshmi S

22CMBAD115

Under the guidance of

PROF. Karthik sir

CMR UNIVERSITY
2023–2024

1
CERTIFICATE FROM THE COMPANY

2
 DECLARATION

I hereby declare that the internship work entitled “Summer Internship Report” submitted to
the School of Management, CMR University, Bangalore, is a record of an original work done
by me under the guidance of “Prof. Karthik sir ” and this project work is
submitted in the partial fulfilment of the requirements for the award Master’s Degree in
Business Administration by CMR University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree or Diploma or
Certificate

Place: Bangalore Name : Sreelakshmi S

Date: 16/02/2024 Register number : 22CMBAD115

3
 CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the internship titled”-------------------------------------------------------------

- ----------“is an original work of Mr./Ms.___________; bearing University Register Number
________________ and is being submitted in partial fulfilment for the award of the Masters
Degree in Business administration by CMR University. The report has not been submitted
earlier either to this University /Institution for the fulfilment of the requirement of a course of
study.

SIGNATURE OF GUIDE SIGNATURE OF THE SCHOOL HEAD

DATE: DATE:

4
 ACKNOWLEDGEMENTS

This internship project at Bhavani industries pvt ltd. would not have been possible without
the invaluable guidance and support of numerous individuals. I am deeply grateful for the
opportunity to learn and grow under their mentorship.

Firstly, I would like to express my sincere gratitude to my mentor at Bhavani industries pvt
ltd Ms. Meghana . N for her constant encouragement, insightful feedback, and
unwavering faith in my abilities. She provided me with the necessary resources and direction
throughout the project, patiently clarifying my doubts and guiding me towards successful
completion.

I am also incredibly thankful to the entire team at Bhavani industries pvt ltd. for their
warm welcome and willingness to share their knowledge and expertise. Each interaction with
them enriched my understanding of the industry and provided valuable insights that shaped
my project significantly.

My deepest gratitude extends to my professors at CMR University, particularly Professor

Karthik sir , for the inspiring lectures and guidance. The knowledge and skills I
gained laid the foundation for my success in this internship.

Furthermore, I am grateful to my family and friends for their unwavering support and
encouragement throughout this internship. Their belief in me helped me persevere through
challenges and celebrate my achievements.

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 TABLE OF CONTENTS

CHAPTER INDEX PAGE NO

NO
1 Introduction 9-12

2 About Bhavani industries 13-22

3 Organization Structure 23-30

4 Department Study 31-46

5 SWOT Analysis 47-50

6 Learning Experience 51

Bibliography 52

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EXECUTIVE SUMMARY

During my internship at Bhavani industries pvt ltd. I embarked on a multifaceted journey

of learning, growth, and hands-on experience in the realm of Accounting.
The tenure not only allowed me to perform a diverse array of tasks but also provided me with
invaluable insights into the intricacies of Accounting operations within a dynamic corporate
environment.

The focus of this project is Bengaluru, India's BHAVANI INDUSTRIES PVT LTD. The
purpose of the study is to observe and comprehend the practices used by BHAVANI
INDUSTRIES PVT LTD. The various departmental functions are clearly identified and their
processes and activities carried out are recorded. As the report examines the various
departments of the company and how each department operates.

Additionally, examine how each department operates to identify company’s advantages and
disadvantages. Finally, it is important to synthesis the fun and determine whether they have
positive or bad effects. Then, to make recommendations and suggestions to management about
how to maximize the positive effects and reduce or eliminate the negative ones.

My study was conducted at BHAVANI INDUSTRIES PVT LTD, Bangalore to acquaint with
the business environment for a period of one month 23RD December 2023 to 09th January 2024
as a part of MBA Curriculum at The CMR UNIVERSITY . The project’s main goals to get
exposure to how organizations and managers operate, which helps us to connect what we have
learnt in class to how organizations operate, and help us comprehend the practical side of how
organizations operate.

During this study, a successful interaction with the employees of the organization was
possible. They also explained the work sites where the first and information about the
organizational processes and its functions were available. The data collected from different
sources are classified, analysed and interpreted. Based on which an organizational structure,

7
its function and various departments are identified. The study further revealed some of the
challenges
faced by the departments. The study helped me to obtain an exact picture of BHAVANI

INDUSTRIES PVT LTD.

8
CHAPTER 01

1.1 INTRODUCTION
The manufacturing industry is a vital sector that involves the production of goods through
various processes, such as raw material conversion, assembly, and fabrication, to create
finished products. It encompasses a broad range of sectors, including automotive, electronics,
textiles, pharmaceuticals, and more. Manufacturing plays a crucial role in the global economy
by contributing to innovation, employment, and economic growth while utilizing technology
and skilled labor to transform raw materials into products used in everyday life.

The manufacturing industry encompasses a wide array of sectors involved in the production
of goods, ranging from automobiles and electronics to food and pharmaceuticals. It involves
converting raw materials or components into finished products through various processes like
assembly, fabrication, and machining. This sector significantly impacts the economy by
contributing to employment, innovation, and trade while relying on advancements in
technology and skilled labor to enhance productivity and create high-quality products for
consumers worldwide. The manufacturing industry is a cornerstone of economies worldwide,
encompassing diverse sectors that produce goods for consumption. It involves transforming
raw materials or components into finished products through various processes like casting,
molding, machining, and assembly. This sector heavily relies on innovation, automation, and
skilled labor to enhance efficiency, quality, and output. Manufacturing significantly
contributes to economic development, job creation, technological advancements, and global
trade, playing a pivotal role in shaping societies and meeting the demands of consumers
across different markets.

The manufacturing industry has long been reliant on lean manufacturing models to achieve
profitability. What began with just-in-time manufacturing concepts progressed to continuous
improvement, quality initiatives, and now supply-chain collaboration. By 2017, supply-chain
collaboration software is projected to be a $3.4 billion market. Driving this growth projection
is the manufacturer’s need to increase and refine operating efficiencies. The Internet is
providing the platform for manufacturers and their supply chains to act as a seamlessly
integrated manufacturing entity. Via the Internet, the supply chain can be managed more cost-
effectively than ever before. Prior to the web, this could only be accomplished with expensive
closed systems such as EDI. In addition, business has embraced outsourced production as cost

9
and time-to-market pressures have increased. The opportunity for Web Wired is to replace
cumbersome EDI and other closed systems with web technologies to facilitate supply change
management.

1.2 Importance of manufacturing industries

1. Modeling Agriculture
2. Provide jobs in secondary tertiary sector
3. Bring down regional disparities
4. Eradication of Unemployment

1.3 Factors of Industrial Location

Availability of raw materials: In determining the location of an industry, nearness to

sources of raw material is of vital importance. Nearness to the sources of raw materials would
reduce the cost of production of the industry. For most of the major industries, the cost of raw
materials forms the bulk of the total cost. Therefore, most of the agro based and forest-based
industries are located in the vicinity of the sources of raw material supply.

10
Availability of Labor: Adequate supply of cheap and skilled labor is necessary for the
industry. The attraction of industry towards labor centers depends on the ratio of labor cost to
the total cost of production which Weber calls Labor cost of Index. The availability of skilled
workers in the interior parts of the Bombay region was one of the factors responsible for the
initial concentration of the cotton textile industry in the region.

Proximity to Markets: Access to markets is one of the important factors affecting location
of industries that the entrepreneur must take into consideration. Industries producing perishable
or bulky commodities which cannot be transported over long distances are generally located in
close proximity to markets.

Industries located near the markets could be able to reduce the costs of transport in distributing
the finished product as in the case of bread and bakery, ice, tins, cans manufacturing, etc.
Accessibility of markets is more important in the case of industries manufacturing consumer
goods rather than producer goods.

Transport Facilities: Transport facilities, generally, influence the location of industry.

Transportation with its three modes, i.e., water, road, and rail collectively play an important
role. So the junction points of waterways, roadways, and railways become humming centers of
industrial activity.

Further, the modes and rates of transport and transport policy of the Government considerably
affect the location of industrial units. The heavy concentration of the cotton textile industry in
Bombay has been due to the cheap and excellent transportation network both in regard to raw
materials and markets.

Miscellaneous Factors: Historical incidents also play a dominating role in determining

the location of industries in certain cases. The development of the cotton textile industry in
Lancashire provides an interesting example of this. Further, the size of an industrial unit would
also have much influence in choosing a location.

This is because the size of industrial units depends upon the radius of the circle within which
they can profitably distribute their goods and upon the density of the population living within
the circle.

11
The manufacturing industry remains a cornerstone of economic development, driving
innovation, employment, and technological advancements worldwide. Its adaptability to
evolving technologies and market demands continually reshapes production methodologies,
fostering growth, efficiency, and sustainable practices while meeting the needs of diverse
consumer markets. As manufacturing continues to evolve, its significance in shaping global
economies and improving quality of life remains indispensable.

12
CHAPTER 02

2.1 ABOUT BHAVANI INDUSTRIES PVT LTD.

Bhavani industries, Bengaluru was established way back in 1987, by Shri. AJ Hegde. Mr.
Hegde has vast experience in machining and manufacturing technology. A wide range of
Precision Machined components are manufactured and supplied to different industries and are
used on a variety of products and sub-assemblies.

His rich experience working in HMT Ltd and CMTI Bengaluru in the areas of machining and
production engineering has helped the company to grow faster.

Mr. Chethan J Hegde joined his father in 1997 after completion of his technical and
management education. His dedication and passion for High-tech manufacturing had lead
Bhavani Industries to rapid growth from the year 2001.

Bhavani Industries has more than 120 CNC Machines, host of Conventional machines, Special
equipment’s and well-equipped inspection facilities with IATF 16949:2016 certification. The
13
two plants are located in the outskirts of Bengaluru city. Bhavani Industries manufactures
precision machined components used in Automobile, Medical, Electronics, Communication
and General Engineering Industries. The Bhavani team is over 200 efficient manpower that
includes Managers, Engineers & Technicians. Experienced, Qualified Engineers are Bhavani
Industries constantly involved with customer’s right from their product development stage. Our
active support and expertise in development of complex machined parts has helped our
customers to drastically reduce time for the development of their new products.

2.2 MANAGEMENT TEAM

Mr. A J Hegde, CEO

Mr. A J Hegde is CEO & Promoter of the company. A Mechanical Engineering graduate with
MBA in Marketing. He has worked in reputed organizations like HMT & CMTI Bangalore for
25 years. Total experience in manufacturing is 45 years. The state-of-the-art hi-tech
manufacturing facilities are setup by him. With his vast experience he has developed many
challenging products.

14
 Mr. Chethan J Hegde, MD

Mr. Chethan J Hegde is the Managing Director of the company. A Mechanical Engineering
graduate with MBA in Marketing. He is responsible for development of new products and
technology up-gradation. Total experience in the company is 18 years.

The components exported are used in Electronics, Telecommunication, Medical Equipment’s,

Hydraulics & General Engineering Industries. Our consistent Quality, On-time delivery and
competitive pricing are the factors influencing the growth of export sales for the last 10 years.

Bhavani Industries believes in a customer relationship that is strong and deep-rooted. The
company’s dedication to its clients is a continuing commitment. As partners in their progress,
we believe in growing with them & have consistently supported them in developing new
products which in turn has resulted in our business growth.

2.3 VISION AND MISSION

We at Bhavani group are visualizing a future with technological excellence. Keeping in space
with changing concepts. Global innovations and technological excellence. We wish to sharpen
our focus in areas to be leading player embracing technological innovation and developments
to leave footprints as pioneers of upcoming technologies.

We aspire to have most modern products facilities keeping in space with rapidly changing
industrial environment to ensure satisfaction of the customer base with global presence in high
technology areas. Our man force should be highly competent with unfettered vision, driven to
excellence, dedicated, loyal and motivated to absolute performance to build our core team.

Energy, conservation, clean environment and pollution

15
Brakes and clutches

Brakes And Clutches Wheel cylinder Plungers for Drum Brake

Turbo charges

Flinger sleeve for turbo charges Central housing cover for turbo charges

16
 2.4 Fuel injection system

Milk Analyser part Parts for Power Tool Application

Holders for Tools used in Electronic Industry Parts for Cabin Tilting system

17
2.5 OUR STRENGTH

Our domestic customers are mostly from Automotive sector and they are the leaders in that
product group. We manufacture large variety of critical parts of Automotive brakes, Fuel
Injection system, Turbo Chargers & Automotive instruments. In non-automotive sector, our
customers from Medical Equipment’s, Process Automation and General Engineering
Industries.

2.5 INFRASTRUCTURE

Major manufacturing processes constitute of forging of raw material to net/ near net shape
through cold, warm or hot forging. For forging plant is equipped with mechanical presses,
hammers and inhouse die shop with CNC machines to manufacture the die of at most precision
for machining various precious turning, milling and gear cutting techniques and processes are
used to bring the part to the final shape. Parts are thereafter heat treated in sophisticated
furnaces to achieve metallurgical requirements and are finally ground to make them ready to
assemble and dispatch.

The plant is currently producing around 2 million parts per month of various shapes and sizes
for various applications, out of these 4 lakh parts are gears for the transmission segment.

18
2.6 WORK FLOW MODEL

A workflow is an end-to-end process that helps teams meet their goals by

connecting the right people to the right data at the right time. Workflows move
data (tasks) through a series of steps from initiation to completion. Once it’s set
up, a workflow helps you organize information in a way that is not only
understandable but also repeatable.

2.7 RECRUITMENT PROCESS

Recruitment is the process of finding and hiring qualified employees to fill open positions in a
company. Recruiters, human resources managers, hiring managers or talent acquisition
specialists generally conduct recruiting activities. Large companies usually have recruiting
departments whose primary role is developing job postings and reaching candidates. In smaller
companies, department managers may be directly responsible for recruiting their own new staff
members, or the owner may oversee recruitment.

The recruitment process includes every stage of obtaining new employees, from planning what
to include in a job posting to the interview process. Research and outreach are important to
recruiting efforts, as recruitment can involve proactively targeting passive candidates who suit
company needs or evaluating submitted applications to find the most qualified candidates.

19
• RECRUITMENT

The process of attracting potential job applicants from available labor force. Every organization
must be able to attract enough of the job candidates who have the abilities and aptitudes needed
to help the organization to achieve its objectives.

• SOURCING

Sourcing is a strategy that falls under the talent acquisition umbrella. It involves recruiters
proactive Finding, engaging, and ultimately hiring candidates that they think would fit the
company and the role.

20
• SCREENING

The screening process is the most time-intensive facet of the hiring process. Candidate
screening is a process of determining whether a candidate is qualified for the role based on
their education, experience, and information based on their resume.

• INTERVIEW

Interview is a purposeful exchange of ideas, the answering of questions and communication

between two or more persons. Generally, an interview is a process of private meeting
conversation between people, where questions are asked and answered, for obtaining
information about qualities, attitudes.

• BACKGROUND VERIFICATION

The employee background verification process broadly involves looking back at the
candidate’s history in terms of work, study, and legal records, and address.

• ONBOARDING

Onboarding is the term for the process by which new hires at a company are brought on board
with company objectives and culture. Also called organizational socialization, orientation, or
new hire training and orientation, the onboarding process folds new employees into the
company and attempts to make them effective managers or contributing members of a team.

2.8 FUTURE GROWTH AND PROSPECTS

Here are some of the aspects which they wanted to focus on the future growth, some of them
are;

• Providing good training to the employees to work effectively

• To maximize the production capacity of the company.
• To maintain the positive culture working environment.

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2.9 AWARDS AND ACCREDITATIONS

Year Awards for Issued by

2018 Quality excellence Meritor Europe truck

2017 Exemplary project management Daimler India commercial

vehicles

2016 Supplier quality excellence award General Motors

2016 Supplier of the year Meritor group

2015 Delivery excellence Meritor group

2014 Special recognition award for quality and Tata motors - Sanand
delivery

2014 Outstanding performance Divgi warner Pvt ltd – Pune

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 CHAPTER 03
3.1 ORGANISATION STRUCTURE

The McKinsey 7S framework is a valuable tool used by organizations to ensure their company
is operating optimally under a variety of circumstances. Developed by the McKinsey
consulting company in the 1980s, the tool sought to promote an alignment of seven key
parameters as a means for maximizing the likelihood of company success. These parameters,
dubbed the “7 S’s”, are all interconnected within the framework, with each “S” being as
important as the next. This interconnectedness also outlines a key component of the framework
– a change in one parameter necessitates a change in all of the others in order to maintain
alignment and ensure company success. The model is particularly useful when re-evaluating a
company’s organizational structure and strategy after a large change (ex: a merger, change in
management, rapid expansion etc.). Such changes will likely cause a large shift in at least one
of the 7 “S” components. It is therefore useful to use the McKinsey 7S model to re-evaluate
whether all 7 S components remain aligned and make the necessary changes to maintain this
synergy if misalignment has occurred.

The McKinsey 7S Framework is a management model that examines seven key elements
within an organization to ensure they are aligned for effectiveness. These elements are:

23
3.2 Strategy:

The strategy company following is that maintaining the good relationship with the material
supplier to get the material for low prices and so they’ll get the orders from the clients regularly.
They maintaining good product portfolio and providing good client service and having
effective linkage between the suppliers. Focus on crafting a strategy that aligns with the market
demand for various tools, innovation in product development, and strategic alliances for
sourcing materials and distribution.

• Marketing strategy
• Selling strategy and network

a) Factory company Depot Distributor Dealer Consumer

b) Factory Distributor Dealer Consumer

• Differential strategy
• Focus strategy

3.3 Structure:

Design an organizational structure that supports efficient manufacturing processes, including

divisions for research and development, production, quality control, and distribution.

24
3.4 Systems:

The daily activities and procedure that staff members engage in to get the job done. Systems
are routine process and procedures followed within an organization to implement the strategy
and to run day to differs. These processes are mainly designed to achieve maximum
effectiveness.

• Determine the sequence and interaction of these processes.

• Evaluate these processes and implement any changes needed to ensure that these
processes achieve their intended results.
• Assign the responsibilities and authorities for these processes.
• Address the risks and opportunities as determine in accordance with the sequins The
organizational shall demonstrate leadership style of the organization with respect to.

Implement robust systems for supply chain management, inventory control, production
processes, quality assurance, and technological integration (such as automation or digital tools)
to enhance productivity and efficiency in tool manufacturing.

• Stiching work and ironing

• Packing and dispatching
• Recording daily report

3.5 Shared Values:

Foster a culture that values precision, quality, safety, and continuous improvement in
manufacturing operations. Emphasize a commitment to innovation and customer satisfaction.

• INTEGRITY: We must conduct our business fairly, with honesty and transparency
Everything we do must stand the test of public scrutiny.
• UNDERSTANDING: We must be caring, show respect, compassion and humanity for
our colleagues and customers around the world, and always work for the definite of the
communities we serve.

25
 • EXCELLENCE: We must constantly strive to achieve the highest possible standards
in our day-to-daywork and in the quality of the goods and services we provide.
• RESPONSIBILITY: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what comes
from the people goes back to the people many times over

3.6 Style:

Style is all about leadership and management styles. Typical behavior patterns of key groups
as managers, other professionals. Quick response from the middle level to lower-level
employees to engage and involve them decision making processes and managerial decisions.
Cultivate leadership styles that encourage innovation, collaboration, and empowerment among
teams, promoting a culture of problem-solving and efficiency improvement.

• Ensuring that the quality policy and quality objectives are established for the
management system and compatible with the context and strategic direction of the
directions
• Supporting other relevant management roles to demonstrate their leadership as it
applies to their areas of responsibility
• Promoting improvement
• communicating the importance of effective quality management and of conforming to
the executing quality management system requirements

3.7 Staff:

These concern both the skills of the organization and those of the employees. The organization's
Core competencies and distinctive capabilities.

• Strong Administrative skill

• Strong Human skill

Invest in training programs to enhance technical skills, encourage cross-functional expertise,

and create a workforce capable of adapting to evolving manufacturing technologies and
techniques.

26
3.8 Skills:

Focus on developing specialized skills crucial for tool manufacturing, such as machining,
metallurgy, engineering, and design, to ensure competitiveness and quality.

The implementation process involves assessing each of these elements within the context of
the tools manufacturing industry, identifying areas for improvement, and aligning strat,
structures, systems, and skills to achieve organizational coherence and effectiveness in
producing high-quality tools. Regular monitoring and adaptation are vital for sustained success
in this dynamic industry.

3.9 PORTERS 5 FORCE MODEL

Since its introduction in 1979, Michael Porter’s Five Forces has become the de facto framework
for industry analysis. The five forces measure the competitiveness of the market deriving its
attractiveness. The analyst uses conclusions derived from the analysis to determine the
company’s risk from in its industry (current or potential). Porter's Five Forces is a framework
used to analyze the competitive forces within an industry. When applied to the tools
manufacturing industry, it helps identify the dynamics influencing competitiveness and
profitability.

27
3.10 Threat of New Entrants:

The tools manufacturing industry might face moderate barriers to entry due to the need for
specialized knowledge, significant capital investment in technology and equipment, and
established brand loyalty of existing companies. However, if there are low-cost manufacturing
methods or innovative technologies, new entrants might pose a threat.

There will be no barrier, because there is always demand for tools, so even after the entrants
of the competitors, it will sustain in the field. The investment is the first barrier for the new
entry.

28
3.11 Bargaining Power of Suppliers:

Suppliers of raw materials, metals, and components for tools manufacturing can exert varying
levels of power. If there are limited suppliers or few alternatives for crucial materials, they
might have higher bargaining power, impacting manufacturing costs. When assessing the
bargaining power of suppliers, the focus is on the relationship between the supplier and the
buyer. As in any partnership, some conflicts of interest need to be balanced for a trade to be
beneficial to both parties

The suppliers who producing good quality fabrics are demanding high costs. Hence the
suppliers’ power is relatively small. Bargaining Power of Buyers:

Buyers in the tools industry, which could include retailers, wholesalers, or end-users, might
possess moderate to high bargaining power. Large buyers or those with options for multiple
suppliers may exert pressure on pricing, quality, or delivery terms. As compared to the
organizations who is buying in bulk, who might be the main clients in other organizations. And
they may have alternative location to shop for tools, giving them plenty of indirect bargaining
power

29
3.12 Threat of Substitutes:

The clients had other substitute, where they can buy from outside but for the Higher price.
There are wide number of tools company who provide at low cost. So, there will be competition
from low cost producing organizations, there are wide number of organizations who producing
for the low cost. Substitutes for tools, such as innovative technologies, multi-functional tools,
or alternative materials, can influence the industry's competitiveness. If substitutes offer
comparable functionalities at lower costs or with added benefits, they pose a threat.

3.13 Rivalry Among Existing Competitors:

Intense competition exists within the tools manufacturing industry, characterized by a

significant number of players vying for market share. Factors such as product differentiation,
pricing strategies, technological innovation, and marketing efforts contribute to rivalry among
competitors. In the field of manufacturing industry, there will be competitors for sure. Each
tools exporter has, their regular clients, so that the rivalry is less in this manufacturing field.
But there plenty of producers who the similar products, but the quality makes them to sustain
in the field

3.14 Conclusion

Understanding these forces enables companies in the tools manufacturing industry to develop
strategies to mitigate threats and leverage opportunities, such as focusing on innovation,
establishing strong supplier relationships, differentiating products, and enhancing customer
value propositions to stay competitive and sustain profitability.

Michael E. Porter’s 5 Forces Analysis has long become the leading standard for understanding
an industry’s competitive landscape.

The clear structure helps start-ups and multinationals alike to identify the current and future
threats in their markets.

However, when analyzing the results, decision-makers must not forget that the analysis is only
a snapshot of the industry under consideration. By the time the analysis is completed, the
market situation may have already changed.

Therefore, especially companies operating in industries with short product life cycles need to
put mechanisms in place that continuously monitor the discussed threats in their industry.

30
 CHAPTER 04

DEPARTMENTAL STUDY

4.1 ANALYSIS OF FINANCIAL STATEMENT

Financial statements (or financial reports) are formal records of the financial activities and
position of a business, person, or other entity.

Relevant financial information is presented in a structured manner and in a form which is easy
to understand. They typically include four basic financial statements accompanied by a
management discussion and analysis

A balance sheet or statement of financial position, reports on a company's assets, liabilities, and
owners equity at a given point in time.

An income statement or profit and loss report or statement of comprehensive income, or

statement of revenue & expense—reports on a company's income, expenses, and profits over
a stated period. A profit and loss statement provides information on the operation of the
enterprise. These include sales and the various expenses incurred during the stated period.

31
4.2 Balance sheet of BHAVANI INDUSTRIES PVT LTD

Particular 2023 2022 2021

Equity and liabilities

Equity share capital 290.15 253.3 200.05

Total share capital 290.15 253.3 200.05
Reserves and surplus 3180.36 2650.3 1269.1
Total reserves and surplus 3180.36 2650.3 1269.1

Non-current liabilities

other non-current liabilities 0 0

0
Long term liabilities 5.81 5.05 2.1
Total non-current liabilities 5.81 5.05 2.1
Current liabilities

Trade payables 13.48 11.23 2.48

Other current liabilities 8.76 7.62 3.64
Short term provisions 38.46 32.05 1.24
Total current liabilities 58.5 50.9 7.36

TOTAL LIABILTIES 3244.67 2959.55 1478.61

ASSETS

Non-current assets

Capital work-in- progress

Non-current investment 18.18 13.14 2.74

Fixed assets 2997.7 2798.6 1346.3
Deferred tax assets (Net) 0 0 0
Long term loan and advances 108.58 84.45 119
Other non-current assets 0 0.01 0
Total non- current assets 3124.46 2896.2 1468.1

32
 Current assets

Current investments 98.72 51.96 6.63

Inventories 0 0 0
Trade receivables 0 0 0
Cash and cash equivalents 17.92 9.69 0.84
Other current assets 3.52 1.77 3.1
Total current assets 120.14 63.42 10.57
TOTAL ASSETS 3244.67 2959.55 1478.61

Interpretation: By obtaining both equity and borrowings to meet its capital needs, the
company is pursuing a balanced strategy. The recoverability needs to be improved to prevent a
short-term cash shortage. The increase in current investments raises the possibility that the
company used its surplus funds to make current investments.

4.3 Profit & Loss Account of BHAVANI INDUSTRIES PVT LTD

Particulars 31- 03- 2023 31-03-2022 31-03-2021

Revenue from Operations 74,813,335 31,497,001 8,074,850
Other Income 81,704
Total revenue 74,895,039 31,497,001 8,074,850
Expenses
Cost of Materials Consumed 28,875,331 11,535,679 1,051,783
Changes In Inventories -1,500,000 -1000000
Cost of Labour 12,141,632 4,589,303 229,465

Employee Benefit Expenses 5,680,076 2,839,101 141,955

Financial Costs 5,069 4,991 2490
Depreciation and Amortization 7,000,000 3,500,000 2,000,000
Expenses
Other Expenses 3,596,322 1,143,344 57,167
TOTAL EXPENSES 55,798,430 22,612,418 3,482,860

33
 Profit before exceptional and 19,096,609 8,884,583 4,591,990
extraordinary items and tax

Exceptional Items - - -
Profit before extraordinary items - - -
and tax

Extraordinary Items - - -
Profit before Tax 19,096,609 8,884,583 4,591,990
Tax Expense - - -
(i) Current Tax - - -
(ii) Deferred Tax - - -
Profit/(Loss) for the period from 19,096,609 8,884,583 4,591,990
continuing operations

Profit/(Loss) from discontinuing - - -

operations

Tax expense of - - -
discounting
operations
Profit/(Loss) from discontinuing - - -
operations (after tax)

Profit/(Loss) for the period 19,096,609 8,884,583 4,591,990

Interpretation: The company's success can be attributed to its ability to maximise

resource utilisation while maintaining a consistent rise in operating revenue. The company's
growing commercial operations caused a more than 100% increase in labour and material
costs between 2022 and 2023.

34
4.4 Comparative P/L statement of BHAVANI INDUSTRIES PVT LTD

Particular 31-03-2022 31-03-2021 Absolute %

change

Revenue from Operations 3,14,97,001 80,74,850 2,34,22,151 290.063

Other Income - - - -
Total revenue 3,14,97,001 80,74,850 2,34,22,151 290.063
Expenses
Cost of Materials 1,15,35,679 10,51,783 1,04,83,896 996.7737
Consumed
Changes In Inventories -10,00,000 -10,00,000
Cost of Labour 45,89,303 2,29,465 43,59,838 1900.001
Employee Benefit 28,39,101 1,41,955 26,97,146 1900.001
Expenses
Financial Costs 4,991 2,490 2,501 100.4418
Depreciation and 35,00,000 20,00,000 15,00,000 75
Amortization Expenses
Other Expenses 11,43,344 57,167 10,86,177 1900.007
TOTAL EXPENSES 2,26,12,418 34,82,860 1,91,29,558 549.2485
Profit before exceptional 88,84,583 45,91,990 42,92,593 93.48002
and extraordinary items and
tax

Exceptional Items
Profit before extraordinary
items and tax

Extraordinary Items
Profit before Tax 88,84,583 45,91,990 42,92,593 93.48002
Tax Expense

(i) Current Tax

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 (ii) Deferred Tax

Profit/(Loss) for the period 88,84,583 45,91,990 42,92,593 93.48002

from continuing operations

Profit/(Loss) from
discontinuing operations
Tax expense of counting
operations

Profit/(Loss) from
discontinuing operations
(after tax)

Profit/(Loss) for the 88,84,583 45,91,990 42,92,593 93.48002

period

Interpretation: According to the comparative income statement above, in the year 2021–
2022 the revenue and total income have increased, while total expenses have increased
significantly and a profit was made for the year.

4.5 Comparative P/L statement of BHAVANI INDUSTRIES PVT LTD

Particulars 2023 % 2022 %

Equity and liabilities

Equity share capital 290.15 8.942 253.3 8.558

Total share capital 290.15 8.942 253.3 8.558
Reserves and surplus 3180.36 98.017 2650.3 89.550
Total reserves and surplus 3180.36 98.017 2650.3 89.550
Non-current liabilities

other non-current liabilities 0 0 0 0

Long term liabilities 5.81 0.179 5.05 0.170

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Total non-current liabilities 5.81 0.179 5.05 0.170
Current liabilities
Trade payables 13.48 0.415 11.23 0.379
Other current liabilities 8.76 0.269 7.62 0.257
Short term provisions 38.46 1.185 32.05 1.082
Total current liabilities 58.5 1.803 50.9 1.719
Total Liabilities 3244.67 100 2959.55 100
ASSETS

Non-current assets

Capital work-in- progress

Noncurrent investment 18.18 0.560 13.14 0.443

Fixed assets 2997.7 92.388 2798.6 94.561
Deferred tax assets (Net) 0 0 0 0
Long term loan and 108.58 3.346 84.45 2.853
advances

Other non-current assets 0 0 0.01 0

Total non-current assets 3124.46 96.295 2896.2 97.859
Current assets
Current investments 98.72 3.042 51.96 1.755
Inventories 0 0 0 0
Trade receivables 0 0 0 0
Cash and cash equivalents 17.92 0.552 9.69 0.327
Other current assets 3.52 0.108 1.77 0.059
Total current assets 120.14 3.702 63.42 2.142
TOTAL ASSETS 3244.67 100 2959.55 100

Interpretation: The company's financial structure reveals a sizable reserve and surplus
together with a solid equity foundation. A steady financial situation is shown by the
comparatively low levels of current and non-current obligations. Significant investments in
current and fixed assets are shown by the asset composition, which adds to the balance sheet's

37
overall balance. The firm appears to be well-positioned overall, with a good balance of assets
and equity.

4.5 Common Size Balance Sheet of BHAVANI INDUSTRIES PVT LTD

Particular 2022 % 2021 %

Equity and liabilities
Equity share capital 253.3 8.558 200.05 13.529
Total share capital 253.3 8.558 200.05 13.529
Reserves and surplus 2650.3 89.550 1269.1 85.830
Total reserves and surplus 2650.3 89.550 1269.1 85.830
Non-current liabilities
other non-current liabilities 0 0 0 0
Long term liabilities 5.05 0.170 2.1 0.142
Total non-current liabilities 5.05 0.170 2.1 0.142
Current liabilities
Trade payables 11.23 0.379 2.48 0.167
Other current liabilities 7.62 0.257 3.64 0.246
Short term provisions 32.05 1.082 1.24 0.083
Total current liabilities 50.9 1.719 7.36 0.497
Total Liabilities 2959.55 100 1478.61 100
ASSETS

Non-current assets

Capital work-in- progress

Noncurrent investment 13.14 0.443 2.74 0.185

Fixed assets 2798.6 94.561 1346.3 91.051
Deferred tax assets(Net) 0 0 0 0
Long term loan and 84.45 2.853 119 8.048
advances

Other non-current assets 0.01 0 0 0

Total non- current assets 2896.2 97.859 1468.1 99.289
Current assets

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 Current investments 51.96 1.755 6.63 0.448
Inventories 0 0 0 0
Trade receivables 0 0 0 0
Cash and cash equivalents 9.69 0.327 0.84 0.056
Other current assets 1.77 0.059 3.1 0.209
Total current assets 63.42 2.142 10.57 0.714
TOTAL ASSETS 2959.55 100 1478.61 100

Interpretation: The equity and liabilities structure of the corporation in 2022 shows a
larger percentage of equity share capital and reserves, adding up to a total capital of 2650.3
and 253.3, respectively. While trade payables, other current liabilities, and short-term
reserves make up the majority of current liabilities (50.9), non-current liabilities are very low
at 5.05. With substantial non-current assets (2896.2) and current assets (63.42), the balance
sheet shows a robust asset base with a total asset value of 2959.55.

4.6 Comparative P/L statement of BHAVANI INDUSTRIES PVT LTD

Particular 31-03-2022 31-03-2021 Absolute %

change

Revenue from Operations 3,14,97,001 80,74,850 2,34,22,151 290.063

Other Income - - - -
Total revenue 3,14,97,001 80,74,850 2,34,22,151 290.063
Expenses
Cost of Materials 1,15,35,679 10,51,783 1,04,83,896 996.7737
Consumed
Changes In Inventories -10,00,000 -10,00,000
Cost of Labour 45,89,303 2,29,465 43,59,838 1900.001
Employee Benefit 28,39,101 1,41,955 26,97,146 1900.001
Expenses
Financial Costs 4,991 2,490 2,501 100.4418

39
 Depreciation and 35,00,000 20,00,000 15,00,000 75
Amortization Expenses
Other Expenses 11,43,344 57,167 10,86,177 1900.007
TOTAL EXPENSES 2,26,12,418 34,82,860 1,91,29,558 549.2485
Profit before exceptional 88,84,583 45,91,990 42,92,593 93.48002
and extraordinary items and
tax

Exceptional Items
Profit before extraordinary
items and tax

Extraordinary Items
Profit before Tax 88,84,583 45,91,990 42,92,593 93.48002
Tax Expense

(i) Current Tax

(ii) Deferred Tax

Profit/(Loss) for the period 88,84,583 45,91,990 42,92,593 93.48002

from continuing operations

Profit/(Loss) from
discontinuing operations
Tax expense of counting
operations

Profit/(Loss) from
discontinuing operations
(after tax)

Profit/(Loss) for the 88,84,583 45,91,990 42,92,593 93.48002

period

Interpretation: According to the comparative income statement above, in the year 2021–
2022 the revenue and total income have increased, while total expenses have increased
significantly and a profit was made for the year.

40
4.7 Ratio Analysis
Ratio analysis is referred to as the study or analysis of the line items present in the financial
statements of the company Ratio analysis is a quantitative method of gaining insight into a
company's liquidity, operational efficiency, and profitability by studying its financial
statements such as the balance sheet and income statement.

KEY TAKEAWAYS

• Ratio analysis compares line-item data from a company's financial statements to reveal
insights regarding profitability, liquidity, operational efficiency, and solvency.
• Ratio analysis can mark how a company is performing over time, while comparing a
company to another within the same industry or sector.
• Ratio analysis may also be required by external parties that set benchmarks often tied
to risk.
• While ratios offer useful insight into a company, they should be paired with other
metrics, to obtain a broader picture of a company's financial health.
• Examples of ratio analysis include current ratio, gross profit margin ratio, inventory
turnover ratio.

4.7 Current ratio

The current ratio measures a company's ability to pay current, or short-term, liabilities (debts
and payables) with its current, or short-term, assets, such as cash, inventory, and receivables.

Table No: 5.6.1 Current ratio of BHAVANI INDUSTRIES PVT LTD

YEARS CURRENT CURRENT LIABILITIES CURRENT RATIO

ASSETS

2023 120.14 58.5 2.053

2022 63.42 50.9 1.245

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 2021 10.57 7.36 1.436

Graph No: 5.6.1 Current ratio of BHAVANI INDUSTRIES PVT LTD

Interpretation: The financial information provided shows that the company's liquidity
has been increasing over time. A gauge of short-term solvency, the current ratio, rose from
1.245 in 2022 to 2.053 in 2023. This implies that the company's capacity to meet its short-
term liabilities using current assets has improved. While the moderate growth in current
liabilities from 50.9 to 58.5 further supports this favourable financial trajectory, the notable
increase in current assets from 63.42 to 120.14 may indicate enhanced financial stability

4.8 Quick ratio

The quick ratio is a financial metric that measures a company's ability to pay off its short-term
liabilities with its most liquid assets. It's also known as the acid-test ratio or liquidity ratio.

42
 Table No: 5.6.2 Quick ratio of BHAVANI INDUSTRIES PVT LTD

YEARS CURRENT CURRENT QUICK RATIO

ASSETS LIABILITIES

2023 120.14 58.5 2.053

2022 63.42 50.9 1.245

2021 10.57 7.36 1.436

Graph :Quick ratio of BHAVANI INDUSTRIES PVT LTD

Interpretation: The company's liquidity situation has significantly improved throughout

the three years between 2021 and 2023, as demonstrated by the fast ratio, which gauges its
capacity to pay short-term commitments using liquid assets. From 10.57 in 2021 to 120.14
in 2023, the current assets more than doubled and outpaced the rise in the current liabilities.

4.9 Proprietary ratio

A proprietary ratio is a type of solvency ratio that is useful for determining the amount or
contribution of shareholders or proprietors towards the total assets of the business. It is also
known as equity ratio shareholder equity ratio or net worth ratio.

43
 Proprietary ratio of BHAVANI INDUSTRIES PVT LTD

TOTAL PROPRIETARY
YEAR SHAREHOLDER FUND
ASSETS RATIO
290.15 3244.67 0.089
2022-23

253.3 2959.55 0.085

2021-22

200.05 1478.61 0.135

2020-21

Graph : Proprietary ratio of BHAVANI INDUSTRIES PVT LTD

Interpretation: In the three years between 2020–21 and 2022–23, the company's
shareholder fund increased from 200.05 to 290.15, indicating a favourable trend. The firm
has grown, as seen by the continuous increase in total assets from 1478.61 to 3244.67 during
the same time period. At 0.135, 0.085, and 0.089 for the corresponding years, the proprietary
ratio—which shows the percentage of shareholder money to total assets—showed some
variation but overall consistency, indicating a steady state of financial stability.

4.10 Absolute liquid ratio

The absolute liquidity ratio pits marketable securities, cash, and equivalents against current
liabilities.

44
 Absolute liquid ratio of BHAVANI INDUSTRIES PVT LTD

ABSOLUTE
CASH AND CURRENT
YEAR
CASH EQUIVALENT LIABILITIES LIQUID RATIO

17.92 0.306
2022-23 58.5

9.69 0.190
2021-22 50.9

0.84 0.114
2020-21 7.36

Graph : Absolute liquid ratio of BHAVANI INDUSTRIES PVT LTD

Interpretation: For 2020–21, 2021–22, and 2022–23, the corresponding absolute liquid
ratios are 0.114, 0.190, and 0.306. The firm has more cash and cash equivalents to meet its
current liabilities in the most recent financial year compared to prior years, indicating
stronger short-term liquidity as indicated by the growing trend.

4.11 Cash ratio

The cash ratio is a measure of the liquidity of a firm, namely the ratio of the total assets and
cash equivalents of a firm to its current liabilities.

45
 CASH AND CASH CURRENT CASH
YEAR LIABILITIES RATIO
EQUIVALENTS

17.92 0.306
2022-23 58.5

9.69 0.190
2021-22 50.9

0.84 0.114
2020-21 7.36

Cash ratio of BHAVANI INDUSTRIES PVT LTD

Interpretation: For 2020–21, 2021–22, and 2022–23, the cash ratios are, respectively,
0.114, 0.190, and 0.306. This suggests that the company's capacity to pay down its short-term
debt using cash and cash equivalents has improved. The upward trend over the course of three
years points to a better liquidity position, indicating good financial health in terms of short-
term solvency.

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CHAPTER 6

5.1 SWOT ANALYSIS

SWOT analysis is a vital strategic planning tool that can be used by Indian Oil managers to do
a situational analysis of the firm. It is a handy technique to evaluate the present Strengths (S),
Weakness (W), Opportunities (O) & Threats (T) Indian Oil is facing in its current business
environment. SWOT analysis is an analytical technique used to ascertain and describe the
several characteristics: Strengths, weaknesses, Opportunities and Strengths. In the process of
conducting the SWOT both the internal and external factors of the company which has the
potential to impact the success of the company. SWOT helps in building a strong business
strategy by considering all the factors that it faces in the market place.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis
is a technique for assessing these four aspects of your business.

You can use SWOT Analysis to make the most of what you've got, to your organization's best
advantage. And you can reduce the chances of failure, by understanding what you're lacking,
and eliminating hazards that would otherwise catch you unawares. Better still, you can start to
craft a strategy that distinguishes you from your competitors, and so compete successfully in
your market.

47
5.2 Strengths:

• Reduced labor costs: The cost of labor is the sum of all wages paid to employees,
as well as the cost of employee benefits and payroll taxes paid by an employer.
• Domestic market: A domestic market, also referred to as an internal market or
domestic trading, is the supply and demand of goods, services, and securities with a
single country
• High profitability and revenue: Profitability is the ability to earn a profit. A
profit is what is left of the revenue a business generates after it pays all expenses directly
related to the generation of the revenue such as producing a product related to the
conduct of the business activities.

• Existing distribution and sales networks: A distribution network is an

interrelated game of people, storage facilities and transportation systems that moves
goods and services from producers’ consumers.

• Skilled workforce: Skilled labor is segment of the work force with a high skill level
that creates significant economic value through the work performed (human capital)
Skilled labor is generally characterized by high education or expertise levels and high
wages.
• Barriers of market entry: barriers to entry are the existence of the start-up costs
of her obstacles that prevent new competitors from easily entering an industry or area
of business
• Experienced business units: A logical element or segment of a company (such
as accounting. Production and marketing) representing a business should be having
experience.

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5.3 Weaknesses:

• High Initial Investment: Setting up manufacturing facilities requires significant

capital, making entry barriers high.
• Dependence on Raw Materials: Fluctuations in the prices of raw materials can
impact production costs.
• Environmental Impact: Manufacturing can be associated with environmental
concerns, leading to regulatory challenges.
• Rigidity: Slow adaptation to market changes or new technologies can hinder
competitiveness.
• Political intervention.
• Lack knowledge about the work environment.
• Lot of time when hire new labor.
• Difficult to maintain same environment in each department.
• Future profitability: profitability is the ability of a company to use its resources to
generate even in excess of its expenses. Profitability is one of four building blocks for
analyzing financial statements and company performance

5.7 Opportunities:

Global Expansion: Exploring international markets can open up new opportunities for growth.

Technological Advancements: Embracing Industry 4.0 technologies can enhance efficiency

and productivity.

Diversification: Exploring new product lines or industries can mitigate risks associated with a
single product.

Sustainability: Meeting the growing demand for sustainable products can open up new markets.

49
5.8 Threats:

• Global Competition: Intense global competition can impact market share and
pricing.
• Supply Chain Disruptions: Disruptions in the supply chain, such as natural
disasters or geopolitical issues, can impact production.
• Regulatory Changes: Evolving regulations related to environmental standards or
trade policies can affect manufacturing operations. the information and polices when
labor leaves
• New player, new brands, Leak competitors.
• Company benefits based on company, (payments of company)
• Increasing rates of interest: interest rate is the amount charged, expressed as a
percentage of principal.by a lender to a borrower for the use of assets. That rate of
interest should be increasing also a threat.
• Tax changes: tax cuts are changes that reduce the amount paid under the law to
government revenue The taxes cut are on income profits, sales, or assets: Tox cuts occur
in many different forms. They are one-time rebate, a reduction in the overall rat, or a
tax credit
• Technological Disruption: Rapid technological advancements may render
existing manufacturing processes obsolete if not adapted quickly. The SWOT analysis
highlights the manufacturing industry's strengths such as technological advancements
and established infrastructure. Opportunities lie in innovation and global market
expansion. However, challenges include increasing competition and potential threats
from economic downturns. Overall, a strategic approach to capitalize on strengths while
addressing weaknesses will be crucial for sustained success in the dynamic
manufacturing landscape.

To sum up the SWOT analysis for the manufacturing industry, it's evident that leveraging
technological advancements, optimizing supply chains, and capitalizing on global market
opportunities are key strengths. Addressing challenges like rising competition and potential
economic fluctuations is essential. A strategic focus on innovation and efficiency will position
the industry to navigate uncertainties and sustain long-term growth.

50
CHAPTER 07

7.1 LEARNING EXPERIENCE

I am very happy to the practical exposure at BHAVANI INDUSTRIES PVT LTD, before going
to share my practical feeling regarding the project work, I would heartly thank CMR
UNIVERSITY, Bangalore for giving me opportunity to learn a knowledge in practical
environment. I would also like to thank to my guide Prof Karthik sir who has guided me in
this internship project.

I had under gone a 2 months of internship at BHAVANI INDUSTRIES PVT LTD from
23/12/2023 to 09/02/24 and in this period I had to learn and get introduced to working of the
company. From this I came to know various working aspects, manufacturing process and
machineries used for it and labor utilization for the work. During my internship I learnt lot of
things about Organization Structure, the organization helped in knowing the interrelation
between the various department and their role in helping the organization to attain its goals.
From this project I came to know that how business is carried in a systematic way and this
internship has made me to understand about the working environment of the company, the
process of the supply chain starting from procurement till the dispatch of the goods. It has given
me great opportunity to learn and explore new things. I got to know how employees are
recruited and made able to handle the work individually and in groups to achieve the target.
The employees were recruited directly from the other companies, as the company needed only
educated and experienced employees. And I learned about the material processes, supply
chains, quality aspects, production, merchandising, planning, etc. I got to know how decisions
are carried out from top to bottom to make things run more smoothly. If any problem arises in
the production department, the employee can directly meet the director and get a solution.

The organizational study at BHAVANI INDUSTRIES PVT LTD has helped me to get the deep
insight of all the functional department and their unique role in fulling the organizational goals.
It also helped me in experiencing the practicality of the theoretical knowledge that is a part of
our curriculum. I thank the company for extending me an opportunity to conduct the study and
extending me their full support during my course at BHAVANI INDUTRIES PVT LTD,
Bangalore.

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.

BIOBLIOGRAPHY

BOOKS:

1. S.P Robbins, Organizational Behavior, Pearson, 2001

ARTICLES:

1. R S Kalpana, Strategy & Leadership, 2005, emeraldinsight.com

2. A N Berger, G F Udell – The Economic Journal, 2002- Wiley Online Library

WEBILOGRAPHY

1. https://www.iocl.com/
2. http://www.capitalmarket.com/
3. https://www.moneycontrol.com/

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