A

SUMMER PROJECT REPORT

At

SHREE RADHE DAIRY FARM & FOODS PVT.LTD

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR

THE DEGREE OF BECHLOR OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF SUBMITTED BY

MR.NEMIK SHAH KHYATI DAMASIYA

DIVYA AKBARI

TISHA BAVASIYA

Submitted To

SHRI SHAMBHUBHAI V. PATEL COLLEGE OF COMPUTER

SCIENCE AND MANAGEMENT

AFFILIATED TO

VEER NARMAD SOUTH GUJRAT

UNIVERSITY
 Executive Summary

Shree Radhe Dairy Farm & Foods Limited popularly known as

Vastu Dairy, having its presence at over 22 states of India.

This summary report contains each & every information about this
organization, its brands, products, its history, mission, vision etc.

The executive summary also contains information dairy industry in

general and what are nuances of this industry.

The different divisions that comes together in making the final

product and helping it reach masses are as follows:

1. Production
2. Operation
3. IT
4. Logistic
5. HR
6. Marketing
7. Sales
8. Finance & Accounts
9. Administration
 Shree Radhe Dairy Farm & Foods PVT.LTD

Declaration

We, the undersigned students of TYBBA (Sem.V), Hereby declare that

Summer Training Report prepared by us at Shree Radhe Dairy Farm and
Foods Pvt.Ltd. is the result of original investigation carried out by us and
also is the result of our hard work and compliance of all the policies and
guidelines framed by the company as well as our Shri Shambhubhai V. Patel
College Of Business Management College. We also declare that this report
has been created by us and has not been published anywhere else other than
submitted to our, Surat.

KHYATI DAMASIYA

DIVYA AKBARI

TISHA BAVASIYA

SHRI SHAMBHUBHAI V. PATEL COLLEGE OF BUSINESS MANAGEMENT

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Acknowledgement
We express our deep sense of gratitude to Principal Mr.Chintu Thakkar Shri
Shambhubhai V. Patel College Business Management College, Surat And Veer Narmad
South Gujarat University,Surat for allowing us to carry out such internship as part of
curriculum for the betterment of our knowledge enhancement.

We wish to express our sincere thanks to Mr.Chintu Thakkar, Coordinator of our

college, who gave us chance to undertake this project report under Shree Radhe Dairy
Farm And Foods Pvt.Ltd. We also thank to our teacher and mentor Mr. Nemik shah to
guiding us who guided us in preparing throughout the project journey.

We thanks to Ms. Bansari Ma’am, Our Mentor & HR Manager at the company, Surat.
For her valuable and continuous guideline for preparation of Training report. We are
highly grateful to her for all her suggestions during all stage of this work. We cannot
forget to acknowledge here the continuous inspiration and encouragement given by our
guide.

Lastly, we would like to thank all of them who has directly or indirectly helped us in
making our Summer Internship Report possible

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Table of Contents
CHAPTER 1 GENERAL INFORMATION…………………………………….…….06

1.1 NAME AND LOCATION OF COMPANY……………………………………........07

1.2 YEAR OF ESTABLISHMENT……………………………………………….…......07
1.3 THE JOURNEY OF COMPANY…………………………………………….……...07
1.4 THE NAME OF FOUNDER AND PROMOTER………………………….……….12
1.5 VISION STATEMENTS…………………………………………………….………13
1.6 MISSION STATEMENT…………………………………………………….………13
1.7 VALUED SHARED………………………………………………………….………
14
1.8 ORGANIZATION STRUCTURE………………………………………….….........15
1.9 CONTROLLING SYSTEM………………………………………………………….18

CHAPTER 2 PRODUCTION DEPARTMENT……………………………………....20

2.1 RAW MATERIALS USED……………………………………………………...…..21

2.2 MACHINES USED…………………………………………………………………..22

2.3 PROCESS USED…………………………………………………………………….26

2.4 MATERIAL HANDLING

EQUIPMENT…………………………………………...28

2.5 INVENTORY CONTROL METHOD……………………………………………….28

2.6 CRP PLAN………………...…………………………………………………………28

2.7 QUALITY CONTROL………….…………………………………………………...29

2.8 NAME AND ADDRESS OF PLANT…………………..…………………………...30

CHAPTER 3 MARKETING DEPARTMENT………………………………………31

3.1 LIST OF PRODUCT AND SERVICE………………………………………………32

3.2 SERVICES…………………………………………………………………………...34

3.3 NUMBER OF CUSTOMERS………………………………………………………..34

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3.4 MARKET PLAN……………………………………………………………………..34

3.5 MAJOR COMPETITORS……………………………………………………………35

3.6 SPECIFIC DISTRIBUTON CHANNEL…………………………………………….35

3.7 DISTRIBUTION CHANNEL……………………………………………………….35

3.8 PLC CONCEPT……………………………………………………………….……..36

3.9 MARKET SEGMENTATION…………………………………………………….…38

3.10 POSTION STRATEGIES…………………………………………………………..39

3.11 PROMOTION TOOL USE…………………………………………………………40

3.12 PRICING METHOD FOLLOWED………………………………………………...40

3.13 SALES FORCE MANAGEMENT…………………………………………………41

3.14 CRM PRACTICES…………………………………………………………...…….42

3.15 RESEARCH PROCEDUERS………………………………………………………42

CHAPTER 4 FINANCE DEPARTMENT…………………………………………….44

4.1 RATIO…………………………….………………………………………………….45

4.2 BALANCE SHEET……………………………………………………………….….46

4.3 TRADING AND P&L ACCOUNT ……………………………………………...….48

4.5 ACCOUNTING PROCESS……………………………………………………….…49

CHAPTER 5 HUMAN RESOURCE………………………………….………………52

5.1 RECRUITMENT PROCEDURE……………………………………………………53

5.2 SELECTION PROCESS………………………………………………………….….56

5.3 NO.OF EMPLOYEES……………………………………………………………….58

5.4 ATTENDANCE MAINTENANCE…………………………………………………58

5.5 TRAINING GIVEN……………………………………………………………….…58

5.6 FRINGE BENEFIT REQUIRED BY LAW…………………………………….…...59

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5.7 LEAVE RULES……………………………………………………………….……..60

5.8 EMPLOYEE SAFETY MECHANISM…………………………………….………..61

5.9 PROMOTION……………………………………………………………….……….62

5.10 TRANSFER…………………………………………………………………..
……..63

5.11 SPECIFIC HR POLICIES………………………………………………………….63

5.12 SPECIFIC HR POLICIES………………………………………………………….65

5.13 EMPLOYEE FEEDBACK MECHANISM………………………………………..67

CHAPTER 6 PURCHASE DEPARTMENT…………………………………………68

6.1 PURCHASE PROCEDURE…………………………………………………..….….69

6.2 PURCHASE LEADING TIME……………………………………………………...71

6.3 ORDERING COSTS…………………………………………………………..……..71

6.4 CARRYING COSTS………………………………………………………….……..72

6.5 GENERAL DETAILS ABOUT PURCHASE DEPARTMENT……………………73

6.6 LIST OF SUPPLIERS……………………………………………………………….73

6.7 ANY OTHER SPECIFIC DETAIL...………………………………………………..73

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1 General Information

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1.1 Name and location of company: -

“Shree Radhe Dairy Farm And Foods Pvt. Ltd.” Is A Distinguished Manufacturer Of Wide Range Of
Milky Dairy Products. That Head Office Location Is 427-428, Sky View, Near Swaminarayan Temple,
Opp. Sagwadi, Varachha Main Road, Surat-395006(Gujarat).

1.1.1 OTHER BRANCH: -

Manufactured At 40 To 47, Shree Govardhan Industrial Estate, Pipodara, Gujarat 394110.

1.1.2 Branch office:-

201,Building No.4, Rajendra Park Housing Society, Near I.B. Patel School,Station,Goregaon – (West)
Mumbai.

1.2 Year of establishment :-

“Shree Radhe Dairy Farm And Foods Pvt. Ltd.” Establishment in 2015.

1.3 The journey of the company: -

India is the largest producer of milk and dairy products. There are around 150 million small dairies and
local co-operative which supply milk and milk products. Today, we are going to talk about the journey
of one such exceptional dairy, Shree Radhe Farm and Foods Pvt. Ltd. Also known as Vastu Dairy

Vastu Pure Ghee Company i.e. Vastu Dairy was found in 2015 by Mr. Bhupat Sukhadiya. What is
amazing is that in the span of 7 years, the growth of the company has grown to 10 times.

The founding stones to Vastu Dairy were built on “I quit”. It was when Mr. Bhupat Sukhadiya decided
to quit his job and start a business of his own. From getting Rs. 1200 – Rs.1500 to being the most loved
brand of the customers, Vastu Dairy’s journey has been challenging and inspiring.

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“Drop by drop fills the ocean”. The starting point of Vastu Dairy was a drop in the ocean too. Mr.
Bhupat Sukhadiya started the journey of Vastu Dairy with a small dairy shop. Opportunities knocked his
door and Mr. Bhupat Sukhadiya grabbed it instantly.

Having the knowledge of production and marketing, he got an opportunity for the trading of ghee. For
this, he bought an 1800 sq. Ft. Production unit and expanded his business to the trading of Vastu pure
ghee. The journey was a successful one as the mission was of achieving non-monetary benefits like
providing employment to as many individuals as the company can.

It is rightly said that if you do things for the right purposes, you will find yourself getting directions for
all the right things for your business.

“When you want something, all of the Universe conspires in helping you achieve it”

(From the book- The Alchemist)

Team Vastu Dairy has dreamt of achieving wonders in the manufacturing and supplying channels.
“They call us dreamers, but we are the ones who never sleep”. The visionary team of Vastu Dairy has
considered Vastu Dairy as their dream.

With the willpower of numerous people and employees associated with the brand, the best wishes of the
satisfied customers and the subtle support of the almighty, Vastu Dairy has now expanded from 350 sq.
Ft. Corporate office to 3500 sq. Ft., from having a production unit of 1800 sq. Ft. to 35,000 sq. Ft., from
having the production capacity of 5 tonnes/day to 25 tonnes/day, from having 3 distributors to having
2000 distributors, from having 12 employees to having a family of 250 employees, having 1 lakh+
retailer, and making its presence in 22+ states of India, Vastu Dairy has made its place in the heart of
numerous people in numerous ways.

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The reason of success of Vastu Dairy is the work ethics and the promise of ‘Surety for Purity’ that it has
made to itself, to its customers. Continuing the promise made, Vastu Diary celebrates 6 years of taste,
purity and trust.

Vastu Dairy will never to stop this amazing journey of providing satisfaction to its customers. We are
now widening our reach through our e-commerce store. Grabbing the need of the hour and demand of
most of the audience of purchasing products online, we have launched our ecommerce store
on www.vastudairy.com, wherein the orders can be placed and timely delivery is ensured.

Vastu Pure Ghee is one of the most loved products of Vastu Dairy. Vastu Pure Ghee is available in 2
forms. One is Vastu Cow Ghee and the other is Vastu Buffalo Ghee. There are also various dairy
products made by Vastu dairy.

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Celebrating the 7 years of a successful and satisfactory journey of Vastu Dairy and its customers, Shree
Radhe Dairy launches two new product range namely “Goshala A2 Gir Cows Ghee” and “A2 Milks”.
The new products were launched by Mr.Bhupat Sukhadiya (Founder & Chairman) and Mr.Bhautik
Virani(Vice President) at Vastu Dairy’s mega event which witnessed active participation from many
business owners and audience associated with Team Vastu.

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The chief leaders of the team strongly believe that the credit for Vastu Dairy’s success goes to their
ethics and serving purity for sure. Vastu Pure Ghee has contributed greatly in the development of the
business as well as the health of its customers. Vastu Pure Ghee is made purely from cow’s milk, the
herd of cows that are looked and cared after in a Goshala owned by the company.

Remember to get Vastu Pure Ghee from us since we only offer the best to our customers.

Vastu Ghee is proud of its purity and has many benefits. We want to know if there are any ghee benefits
that you practice and how ghee helps you in your daily life. Do let us know and follow the Vastu Dairy
blog for more such interesting articles about ghee.

At Vastu Ghee, we consider it our responsibility to help the people of our nation gain access to pure and
unadulterated products. Our ghee is made keeping the same vision in mind. So leave your worries
behind and get your hands on our pure cow and regular ghee.

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1.4 The name of the founder and managing director:-

Directors of shree radhe dairy farm and foods private limited are Bhupatbhai Sukhdiya and Jagruti
Sukhadiya.

“You have to be different to make a difference”

Mr. BhupatSukhadiya

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1.5 Vision statements:-

“To be among the top 5 Dairy FMCG brands of India by 2030”

1.5.1 Mission statement:

“Constantly create innovative products to optimize milk usage, provide nourishment and preserve
health of all our consumers”

Implementing robust Vastu Pure Ghee System, which is an Internal System, developed to meet the all
Process Requirements based on National & International Standards.
Implementing International Management System Standards (ISO)
Bench Marking, Best-In-Class requirements.
Process Optimization : Constantly working on latest innovative Technologies Capability Development
across the Organization.
Auditing & Assessments : Vastu Pure Ghee has established a frame work for Auditing & Assessments
of Complete Food Chain.
Consumer Satisfaction : It is our endeavor to create a culture of “Total Quality” where continuous
improvement of our people, processes and products becomes a way of life.

1.5.2 Testimonials :-

I use Vastu pure Ghee in making delicious sweets. Vastu pure ghee adds extra taste to the sweets.
Especially when I prepare paryasam, I compulsory use Vastu Ghee.

Madhu Shah - Customer

I used Vastu ghee in last many times regular because it is very healthy for our body. I tried so many
ghee products but I have to say Vastu is the best in them and the test is really very nice.

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Krishna Dave - Customer

My family uses this very good product by Vastu everyday. The quality of ghee by Vastu is very
good.

AparnaBala - Customer
Vastu ghee is really a good quality ghee. In our home most of the items prepared with this ghee.

Rahil Tank - Customer

I have tried many types of ghee but Vastu is good-Better and best. It taste brilliant.

1.6 VALUED SHARED:-

1.6.1 Pillars of Organization:-

• Teamwork with Respect, Empathy and Empowerment

• Transparency by being Honest and Trustworthy

• Thrive On Excellence

• Continuous Learning

• Adaptability

• Ownership

• Fun is Fuel

1.6.2 Core Values:-

• We shall be FOCUSED on our GOALS

• We shall treat everyone with Humanity and RESPECT

• We shall build a culture of QUALITY & INNOVATION

• We shall practice KNOWLEDGE SHARING

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• We shall always be PROCESS DRIVEN with highest levels of INTEGRITY

• We shall EMPOWER our EMPLOYEES

1.6.3 Core Ideology :-

We will always focus on one common goal and that is to contribute towards the growth of our
nation. To achieve this, we will focus on growth & expansion of our organization that includes the
growth of our team, our channel partners & stake holders. This will help us to generate maximum
employment for our country. We will always follow formal practices of business, pay all our taxes and
fulfill all legal liabilities and our responsibilities towards our Nation.

1.7 Organizational structure :-

“The Radhe Dairy And Farm Pvt.Ltd.” Follow a line and staff organizational structure.

1.7.1 Line And Staff Organizational Structure:-

line-staff organization, in management, approach in which authorities (e.g., managers) establish goals
and directives that are then fulfilled by staff and other workers. A line-staff organizational structure
attempts to render a large and complex enterprise more flexible without sacrificing managerial authority.

Classical theories of organization associated with Henri Fayol, Frederick W. Taylor, and others who
pioneered new administrative strategies in the late 1800s and early 1900s define formal organizations
as collective enterprises identified by a clear division of labour and authority. These theories view
decision-making power as flowing from a unified command structure. Relationships between
individuals, groups, and divisions are based on lines of authority that are predetermined. Typically, work
is carried out in accordance with specialized functions, and authority is exercised in a hierarchical
manner. In a highly centralized structure, decisions are made by a few executives or managers and flow
downward through the enterprise. However, as organizations grow in scope and complexity, they need
to be flexible in the extent to which coordination and control are centrally applied. The principle of line-
staff organization introduces flexibility into hierarchical lines of authority while trying to preserve a
unified command structure.

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Line groups are engaged in tasks that constitute the technical core of the firm or the subunit of a larger
enterprise. They are directly involved in accomplishing the primary objective of the enterprise. In
manufacturing, line groups engage in work related to production. In the service sector, the line group is
responsible for its customers. Line groups have final decision-making authority regarding technical
organizational purposes.

Staff groups are engaged in tasks that provide support for line groups. They consist of advisory (legal),
service (human resources), or control (accounting) groups. Staff groups support those engaged in the
central productive activity of the enterprise. Thus, staff groups create the infrastructure of the
organization. Human resources, information technologies, and finance are infrastructural functions. Staff
groups provide analysis, research, counsel, monitoring, evaluation, and other activities that would
otherwise reduce organizational efficiency if carried out by personnel in line groups. Staff groups are
therefore responsible to their appropriate line units.

Although line and staff may operate at different levels of an organization, all positions are defined
relative to their line or staff function. Differentiating line and staff functions is straightforward in that it
involves identifying the beneficiaries of the activity, product, or service. If the beneficiaries are
employees, then it is a staff function. Otherwise, the activity is related to the line organization.

By modifying organizational hierarchies to include staff functions, organizational capacity for

processing information is increased without sacrificing lines of authority. However, studies indicate that
although line-staff innovations may preserve the appearance of formal line authority, staff groups,
particularly specialized staff, often in effect assume decision-making responsibilities because their lines
of communication to upper management are shorter. This is the case for staff specialists who monitor
and report on line performance. The authority of staff specialists may consist of pure advice-giving, or
specialists may have the right to pass along directives from upper management to those they do not
formally supervise. This naturally leads to power struggles between line and staff. Communication
failures, poorly defined responsibilities, and divergent interests create unclear lines of authority that lead
to intra-organizational conflict and reduce organizational performance. Clarifying supervisory
relationships reduces organizational dysfunction and increases effectiveness

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Organization Chart – Head Office

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Factory organisation chart

1.8 Controlling system :-

Shree Radhe Dairy And Farm & Foods Pvt. Ltd.. controlling system is closed loop controlling system.

1.8.1 Closed Loop Control System:-

A closed loop control system is a system where the output has an effect upon the input quantity in such a
manner as to maintain the desired output value.

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An open loop control system becomes a closed loop control system by including a feedback. This
feedback will automatically correct the change in output due to disturbances. This is why a closed loop
control system is called as an automatic control system. The block diagram of a closed loop control
system is shown in figure.

In a closed loop control system, the controlled variable (output) of the system is sensed at every instant
of time, feedback and compared with the desired input resulting in an error signal. This error signal
directs the control elements in the system to do the necessary corrective action such that the output of
the system is obtained as desired.

The feedback control system takes into account the disturbances also and makes the corrective action.
These control systems are accurate, stable and less affected by noise. But these control systems are
sophisticated and hence costly. They are also complicated to design for stability, give oscillatory
response and feedback brings down the overall gain of the control system.

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2. Production Department

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2.1 Raw material used :-

Raw materials are materials or substances used in the primary production or

manufacturing of goods. Raw materials are commodities that are bought and sold on
commodities exchanges worldwide. Traders buy and sell raw materials in the factor
market because raw materials are factors of production, as are labor and capital.

Shree radhedariy farm and foods pvt. Ltd. Is raw material use as a cow milk.

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2.2 machines used:

2.2.1 Physical Plant

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2.2.2 Machinery And Equipment:

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“Machinery and equipment” mean: Industrial fixture an iteam attached to a building or to
land. It must have a function relative to an industrial fixture or a device .To determine if
some of a building is a support facility,The building are examined.

SHREE RADHE DARIY FARM AND FOODS PVT.LTD. manufacture milk

products,ghee, butter milk and bakery products etc. The machine and equipment’s to
manufacture those products are shown in the below picture.

 Milk packaging

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 Ghee packaging:

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 Butter cold storage:

2.3 Process used :-

Traditionally ghee is made first by converting milk into curd, turning in the dahi at room temperature to
yield traditional Desi Makhan or Butter, Clarifying the traditional butter after some period of storage and
conversion into ghee by boiling it continuously at temperatures up to 150 to 120 C depending upon
regional. In the same way key is manufactured in SHREE RADHE DAIRY FARM AND FOODS
PVT.LTD. Including some test. Firstly, the raw milk is received than the platform test is taken in
which alcohol test fattest and acidity test. After that milk is converted into cream from which
butter is taken out and the conversion of key take place by boiling it continuously. After that small
amount manufactured key is tested in the laboratory test like acidity test, Mineral test and baud in

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test and then it is approved as edible key and then the packaging and distribution of product take
place.

RAW MILK RECEIVED

Platform Test:

1.Alcohol Test

2.Fat Test

3.Acidity Test-Phenolphthalein

Cream Standardized Milk

1.Fat Test 1.Fat Test

2.Acidity Test-Phenolphthlein 2.Acidity Test-Phenolphthlein

Finish Product

Butter Fat 1.Fat Test

2.Acidity Test-Phenolphthlein

1.Fat Test

2.Acidity Test-Phenolphthlein
Ghee

Acidity Test(FFA)

Mineral Test

Baudoin Test
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2.4 Material Handling Equipment:-

The key raw material for any dairy plant is milk. The raw milk can be procured in different vessels,
generally cans of 5, 10, 20 and 40 liters capacity of aluminum, stainless steel, food grade plastic can be
used. The milk can be procured in cans by truck or in road tankers. The milk can be transported for long
distance by rail tankers. To reduce microbial load and to increase shelf-life of the milk cold chain is
maintained during handling and procurement.

The milk cans received at dairy plant can be handled by gravity or chain conveyors. The milk received
by road tankers can be directly pumped to the silo. The viscous and powdered products can be conveyed
by screw type of conveyors.

The boxes and blocks (cheese blocks) can be transferred from one place to another place by pallets and
it can be racked and stacked in the rooms. The powdered products can be conveyed by blowing the air or
by suction using air ducts. The material handling systems for different products can be designed using
automation, so that material can be handled with minimum labour and damage to the product.

2.5 Inventory control method :-

FIFO and Expiration Dates

Your dairy products sell-by date controls your inventory rotation. For example, say you receive a milk
shipment on day three, day six and day nine. As day three milk is sold, you restock your shelves with
day six milk. Day three milk is pushed to the front of the shelves with day six milk behind it. If day three
milk remains unsold after the sell by date, you remove it from your shelves and push day six milk to the
front of the shelf. As day six milk is sold, day nine milk is placed behind day six milk.

2.6 CRP plan :-

Capacity requirement planning forms part of the operational stage of the planning process and works in
conjunction with a manufacturing requirement planning (MRP) system. A detailed capacity requirement
plan provides an operational level overview for the production cell and assists the operations manager
with identifying all of the elements that will be required to deliver the output.

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For the operations manager to accept the capacity plan they may need to take into account, materials,
machine production time, machine change over time and tooling, maintenance and downtime, along
with manpower availability and skill, so that shift work can be assigned and resources can be used
efficiently.

The operational team will feedback their ability to meet the planning requirements to the planning team,
who will then look to ensure materials or components required for the production process are made
available in time and in full via the procurement team. The planning team will then confirm the capacity
plan and the materials requirement plan and generate a works order which will then be passed to the
production team.

What are the steps in capacity planning?

Capacity management requires the analysis of two types of capacity:

• Short and medium-term capacity – review of a 2-18 month demand forecast

• Aggregate capacity – a horizon scan of the capacity of the whole organisation to meet fluctuations in
demand

There are three stages in the capacity management process:

• Measuring and forecasting aggregate demand

• Identifying the different capacity plans required to meet forecast demand

• Identification of the most suitable capacity plan to meet the aggregate demand given the organisations
capacity constraints

2.7 Quality control:-

Milk quality control is the use of approved tests to ensure the application of approved practices,
standards and regulations concerning the milk and milk products. The tests are designed to ensure that
milk products meet accepted standards for CHEMICAL COMPOSITION AND PURITY AS WELL AS
LEVELS OF DIFFERENT MICRO-ORGANISMS.

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Testing milk and milk products for quality and monitoring that MILK PRODUCTS, PROCESSORS and
MARKETING AGENCIES adhere to accepted codes of practices costs money. There must be good
reasons why we have to have a quality control system for the dairy industry .

The reasons are:

1. To the Milk Producer.

The milk producer expects a fair price in accordance with the quality of milk she/he produces.

2. The Milk Processor.

The milk processor who pays the producer must assure himself/herself that the milk received for
processing is of normal composition and is suitable for processing into various dairy products.

3. The Consumer.

The consumer expects to pay a fair price for milk and milk products of acceptable to excellent quality.

4. The Public and Government Agencies.

These have to ensure that the health and nutritional status of the people is protected from consumption
of contaminated and sub-standard foodstuffs and that prices paid are fair to the milk producers, the milk
processor and the final consumer.

All the above-is only possible through institution of a workable quality testing and assurance system
conforms to national or internationally acceptable standards.

2.8 Name and address of plant :-

“Shree Radhe Dairy Farm And Foods Pvt..Ltd.” Is A Distinguished Manufacturer Of Wide Range Of
Milky Dairy Products.

40 To 47, Shree Govardhan Industrial Estate, Pipodara, Gujarat 394110.

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3 Marketing department

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3.1 List of product and service:-

“Shree Radhe Dairy Farm & Foods Pvt. Ltd.” is a distinguished manufacturer of a wide range of Cow
Ghee and Buffalo Ghee. Founded in the year 2015, we are a renowned company that is incepted with
an objective of providing high quality and pure ghee in various quantities within scheduled time
period. Situated in Surat (Gujarat, India), we process ghee in accordance with set industry norms.
Under the headship of “Ms. Ankita” Manager, we have gained huge clientele in our country.

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3.2 Services :-

 CSR ACTIVITES

 PROVIDING BEST QUALITY OF PRODUCT TO THE CUSTOMER

 FAST TRANSPORT SERVICE
 GREAT DISTRIBUTION NETWORK
 CUSTOMER DELIGHT
 PRODUCTION CAPACITY

3.3 NUMBER OF CUSTOMERS/OVERSEAS CUSTOMER:-

It is the exclusive marketing organization for products under the brand name of SHREE RADHE
DAIRY FARM & FOODS. Over the last five and a half decades, dairy cooperatives in Gujarat have
created an economic network that links more than 5 lakh village milk products with crores of consumers
in India.

3.4 Marketing Plan :-

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the
greatest opportunities to increase sales and achieve a sustainable competitive advantage.

Strategic planning involves an analysis of the company's strategic initial situation prior to the
formulation, evaluation and selection of market-oriented competitive position that contributes to the
company's goals and marketing objectives.

Strategic marketing, as a distinct field of study emerged in the 1970s and 80s, and built on strategic
management that preceded it.

Marketing strategy highlights the role of marketing as a link between the organization and its customers.

Marketing strategy leverages the combination of resources and capabilities within an organization to
achieve a competitive advantage and thus enhances firm performance .

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3.5 Major competitors:-

1. Amul Dairy

Amul Dairy Pvt.Ltd. is an Indian food processing company that manufactures, markets, and sells milk,
milk products, and other edible products. Its milk products include cultured products, ice cream, paneer,
and ghee under the Amul Dairy brand.

2. Mother’s Dairy

Mother Dairy Fruit & Vegetable Pvt.Ltd. is an Indian food processing company that manufactures,
markets, and sells milk, milk products, and other edible products. Its milk products include cultured
products, ice cream, paneer, and ghee under the Mother Dairy brand.

The company also sells edible oils, fresh fruits and vegetables, frozen vegetables, and processed food
like fruit juices, jams, pickles, etc.

Mother Dairy was founded in 1974 as a wholly-owned subsidiary of the National Dairy Development
Board

3.6 Specific Distribution channel:-

In perishable food products, physical distribution is a very important part of the whole business. The
transportation of "Vastu ghee" to the stores that sell. While transportation, the ghee has to be stored
properly, so that it does not get contaminated. To completely understand physical distribution, consider
the case of "Vastu ghee". Vastu ghee is made in "Surat District" somewhere in Gujarat. From there it is
distributed all over India and it is available at the local store near to us. The destitution guys have to
make sure that, every little "Banya shop" on every little street of our extremely large country gets“ Vastu
ghee”. To add to this.

Enormous challenge, “vastu ghee” is a perishable milk based product. It has to be stored and transported
properly so that it does not get spoilt on the way. And while the distribution guys do all this, company
has to make sure that they keep the costs under control. The above example gives the idea of what the
distribution guys do. However, in practice what they do is, set up distribution channels.

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3.7 Distribution channels:

 Distribution channels are all the sub-marketers or intermediate marketers of the company.
For example: selling agents, wholesalers, retailers, authorized representatives, and
showrooms etc; are basically distribution channels.
 The distribution channel for a particular product : Manufacturer - Wholesaler - Retailer -
User Manufacturer - Distributor - Wholesaler - Retailer –User.

3.8 PLC concept and association of their product with respect to PLC stage:-

The product life cycle is the process a product goes through from when it is first introduced into the
market until it declines or is removed from the market. The life cycle has four stages— introduction,
growth, maturity, and decline.

While some products may remain in a prolonged maturity state for some time, all products eventually
phase out of the market due to several factors including saturation, increased competition, decreased
demand, and dropping sales.

The 4 Stages of the Product Life Cycle. Once a product is developed, it typically goes through the four
stages of the product life cycle—from introduction through decline—before eventually being retired
from the market.

1. Introduction

Once a product has been developed, it begins the introduction stage of the PLC. In this stage, the
product is released into the market for the first time. The release of a product is often a high- stakes time
in the product's life cycle, although it does not necessarily make or break the product's eventual success.

During the introduction stage, marketing and promotion are at a high, and the company often invests
quite a bit of effort and capital in promoting the product and getting it into the hands of consumers. This
is perhaps best showcased in Apple's (AAPL) - Get Apple Inc. Report famous launch presentations,
which highlight the new features of their newly (or soon-to-be) released products.

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It is in this stage that the company is first able to get a sense of how consumers respond to the product,
whether they like it, and how successful it may be. However, it is also often a heavy- spending period
for the company with no guarantee that the product will pay for itself through sales.

Costs are generally very high during this stage, and there is typically little competition. The principal
goals of the introduction stage are to build demand for the product and get it into the hands of
consumers, hoping to later cash in on its growing popularity.

2. Growth

During the growth stage, consumers start taking to the product and buying it. The product concept is
proven as it becomes more popular, and sales increase.

Other companies become aware of the product and its space in the market as it begins to draw more
attention and pull in more revenue. If competition for the product is especially high, the company may
still heavily invest in advertising and promotion of the product to beat out competitors. As a result of the
product growing, the market itself tends to expand. Products are often tweaked during the growth stage
to improve their functions and features.

As the market expands, more competition often drives prices down to make the specific products
competitive. However, sales usually increase in volume and continue to generate revenue.

Marketing in this stage is aimed at increasing the product's market share.

3. Maturity

When a product reaches maturity, its sales tend to slow, signaling a largely saturated market. At this
point, sales may start to drop.

Pricing at this stage tends to get competitive, so profit margins shrink as prices begin to fall due to the
weight of outside pressures like increased competition and lower demand. Marketing at this point is
targeted at fending off competition, and companies often develop new or altered products to reach
different market segments.

Given the highly saturated market, less-successful competitors are often pushed out of competition
during the maturity stage. This is known as the "shake-out point." In this stage, saturation is reached and
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sales volume is maxed out. Companies often begin innovating to maintain or increase their market share,
changing or developing their product to satisfy new demographics or keep up with developing
technologies.

The maturity stage may last a long time or a short time depending on the product. For some brands and
products—like Coca-Cola (KO) - Get Coca-Cola Company Report—the maturity stage lasts a long time
and is very drawn out.

4. Decline

Although companies generally attempt to keep their product alive in the maturity stage as long as
possible, eventual decline is inevitable for virtually every product. In the decline stage, product sales
drop significantly, and consumer behavior changes, as there is less demand for the product. The
company's product loses more and more market share, and competition tends to cause sales to
deteriorate.

Marketing in the decline stage is often minimal or targeted at already-loyal customers, and prices are
reduced.

Eventually, the product is retired out of the market altogether unless it is able to redesign itself to remain
relevant or in-demand. For example, products like typewriters, telegrams, and muskets are deep in their
decline stages (and in fact are almost or completely retired from the market).

3.9Market segmentation:-

The market segmentation is the most important process which helps bringing Customers more in B2B
and B2C marketing business.

Segments such as lifestyle, behavioral, other meaningful segments etc.

It also assumes the requirement different marketing programs covering offers, Prices, promotion etc.

While it is profitable it also supports development and planning. Hence mostly STP approach is used to
achieve the target of market.

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3.10 Positioning Strategies:-

Positioning is a marketing strategy, also referred to as product positioning, which refers to how a brand
wants to be perceived in the mind of customers relative to competing brands.

The 3 keys of strategic positioning

Creating an image and shaping how a brand is viewed by consumers is a very purposeful and meticulous
act. Background research and an understanding of the market are crucial to your brand's success.

Product positioning begins well before the creation of brand identity and is crucial to branding. The
three keys to strategic positioning are often referred to as the three "C's":

1. Customer:

Central to positioning knows your focus by identifying what the buyer wants and needs. Research to see
if there is a problem customers need a solution for and what needs they might report via surveys,
interviews and reviews. Listening to buyer needs and placing a high importance on those needs is
pivotal in getting customer attention and loyalty.

2.Channel:

Your channel, or sales team, is central to understanding customer needs and is where you will likely find
the majority of information for successful positioning. Your channel is a direct connection to the
customer, and through their experience, you can get information such as the customer profile, customer
problems, competitive intelligence and the purchase process. With experience in the entire sales cycle,
channels will help you identify brand strength to effectively focus your positioning strategy on what you
do well as a brand.

3.Competition:

A final step in formulating a product position is paying attention to your competition and their position.
If yours is unique and easily differentiated from what is on the market, then your positioning statement
(your assertion of brand uniqueness) is effective.

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3.11 Promotion tools used:-

For an effective promotion of any product or service, there are a number of marketing promotional tools
that can be utilized in a promotion program. These should be applied carefully according to the given
circumstances. Since every promotional tool is suitable for certain circumstances.

The following are the important types of marketing promotional tools that must be in your mind.

1.Advertising 2.Personal Selling 3.Sales Promotion 4.Public Relations 5.Direct Marketing

3.12 Pricing method followed:-

Mark-up Pricing Method:

This is the most commonly used method. The method is also known as cost-plus pricing. In this method,
a standard mark-up (or profit margin) is added to the product costs. This method is used in construction
business, professions, and even for consumer goods.

The method can be used only when company has necessary data about various costs and expected sales.
Company may prefer fixed per cent of costs or fixed per cent of selling price.

Let us illustrate the method:-

XYZ Company Limited expects annual sales of 100000 units. Variable cost per unit is Rs. 10.

Fixed cost is Rs. 500000.

Company wishes to earn 20 % mark-up on selling price, or 25% mark- up on costs.

Cost per unit = variable costs + (Fixed costs/ Unit sales)

= Rs. 10 + Rs. 500000/100000

= Rs. 15

Now, company wants 20% mark-up on selling price, Cost per unit = variable costs + (Fixed costs/ Unit
sales)

= Rs. 10 + Rs. 500000/100000

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= Rs. 15

Now, company wants 20% mark-up on selling price, Selling price = unit cost/(1 – desired mark-up)

= Rs. 15/ 0.8

= Rs. 18.75

Alternatively, suppose company wants 25% mark-up on unit cost, Selling price = unit costs + (15 x
25%)

= Rs. 15 + Rs. 3.75

= Rs. 18. 75.

Naturally, when cost is taken as a base, the rate should be high, as indicated in the example. Company
may follow either of approaches, but must know the difference.

3.13 Sales force management:-

Personal selling is a very important component of the marketing activity. The success of a business
concern depends considerably upon the performance of its salesperson. Salesperson play a crucial role in
communicating company and product information to

customers. The task of selling company’s products and services is entrusted to the salesmen of the
company.

A salesperson not only communicates product information to customers but also relays the reactions of
customers towards company and its products to his employer. Hence, the management of sales force is
an important aspect of marketing management. It is concerned with the task of selection, orientation
training, supervision, motivation compensation and evaluation of the sales force of the company.
Although in some organisation some of the above mentioned duties are assigned to the personnel
manager but in most cases it is the sales manager who is responsible for successful performance of these
functions.

Sales Force Management (SFM) is a sub-system of marketing management. It is Sales Management that
translates the marketing plan into marketing performance. That is why sales force management is
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sometimes described as the muscle behind the marketing management. Actually sales force management
does much more than serving as the muscle behind marketing management.

Sales managers in modern organization are required to be customer- oriented and profit-directed and
perform several tasks besides setting and achieving personal selling goals of the firm. Let us understand
briefly the sales force management, tasks involved in the sales force management. Sales managers in
modern organization are required to be customer- oriented and profit-directed and perform several tasks
besides setting and achieving personal selling goals of the firm.

3.14 CRM practices:-

Customer relationship management (CRM) is the combination of practices, strategies and technologies
that companies use to manage and analyze customer interactions and data throughout the customer
lifecycle.

3.15 Any other company-specific detail:-

Amul is an Indian state government cooperative under the ownership of Gujarat Cooperative Milk
Marketing Federation, Ministry of Cooperation, Government of Gujarat based at Anand in Gujarat.
Formed in 1946, it is a cooperative brand managed by the Gujarat Cooperative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly controlled by 36 lakh (3.6 million) milk producers in
Gujarat, and the apex body of 13 district milk unions, spread across 13,000 villages of Gujarat. Amul
spurred India's White Revolution, which made the country the world's largest producer of milk and milk
products. Kaira Union introduced the brand “Amul” for marketing its product range. The word “Amul”
is derived from Sanskrit word ‘Amulya’ which means ‘priceless’ or precious, a name proposed by then
founding leader of Agriculture College, Maganbhai Patel.

TribhuvandasKishibhai Patel under the guidance of SardarVallabhbhai Patel became the founding
chairman of the organization and led it until his retirement in the 70s. He hired VergheseKurien in 1949
and convinced him to stay and help with the mission.[8][9] Under the chairmanship of Tribhuvandas,
Kurien was initially the general manager and helped guide the technical and marketing efforts of Amul.
Kurien was the chairman of Amul briefly after TribhuvandasKishibhai Patel died in 1994. Kurien,

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founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of
Amul's marketing.

Amul has ventured into overseas markets.

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4. Finance Department

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4.1 RATIO :

Debt to Equity Ratio = Total Liabilities / Shareholders Equity

= 15,11,01,560 / 2,10,44,590 = 7.18

Debt Ratio = Total Debts / Total Assets

= 15,11,01,560 / 17,21,46,150 = 0.88

Working Capital = Current Assets – Current Liabilities

= 13,27,70,091 – 12,77,88,611

= 49,81,480

Working Capital Turnover Ratio = Net Revenue / Working Capital

= 72,88,505 / 49,81,480 = 1.46

Current Ratio = Current Assets / Current Liabilities

= 13,27,70,091 / 12,77,88,611 = 1.04: 1

Cash Ratio = Cash / Current Liabilities

= 85,76,744 / 12,77,88,611 = 0.07: 1

Net Sales = Sales Revenue – Expense

= 54,30,06,404 – Discount – Sales Promotion Expense – Transport

Expense

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= 53,40,06,404 – 24,87,047 – 61,91,995 – 1,88,08,217

= 51,55,19,145

Gross Profit Ratio = Gross Profit / Net Sales * 100

= 72,88,505 / 51,55,19,145 * 100 = 1.41: 1

Net Profit Ratio = Net Profit / Total Revenue * 100

= 54,38,505 / 54,36,96,936 * 100

= 1:1

4.2 Balance sheet

31.03.2022
1.EQUITY AND LIABILITIES
A.Shareholder's fund
a.Share capital 50,00,000
b.Reserves and surplus 1,60,44,590

2,10,44,590
B.Share application money pending allotment
C.Non-current liabilities
a.long-term borrowings 2,33,12,949
2,33,12,949
D. Current liabilities
a.Short- term borrowings 3,29,69,302
b.Trade payables 8,97,06,622
c.Other liabilities 31,82,687
d.Short-term provision 19,30,000
12,77,88,611

Total 17,21,46,150
2.ASSETS
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A. Non-current assets
a.Non-current assets
(i)Tangible assets 3,92,29,865
b.Deferred tax assets(net)
b.Other non-current assets 1,46,195
3,93,76,060

2, Current assets
a.Inventorises 5,68,95,324
b.Trade receivable 3,19,89,650
c.Cash and cash equivalents 85,76,744
d.Short-term loans and advances 3,53,08,372
13,27,70,091

Total 17,21,46,150

Profit & loss account

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particulars 31-03-2022
I. Revenue from operations(Gross)
Sales Revenue 543,006.40
II. Other Income 690,532
III.Total Revenue (I+II) 543,696,936

IIII.Expenses:
(a) Cost of materials consumed 459,811,355
(b) Purchases of Stock-in-Trade
(c)Changes in inventories of finished goods work- 29,976,463
in-progress
and Stock-in-Trade
(d) Employee benefits expense 42,466,797
(e) Finance costs 3,081,035
(f) Depreciation and amortisation expense 8,099,409
(g) Other expenses 52,926,298

Total expenses 536,408,431

IV. Profit before exceptional and extraordinary items and tax (III-ry) 7,288,505
V. Exceptional items
VI. Profit before extraordinary items and tax (V - VI) 7,288,505
VII. Extraordinary Items
VIII. Profit before tax (VII- VIII) 7,288,505
IX. I'ax expense:
(1) Cufient tax
(2) Defemed tax 1,850,000

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X. Profit (Loss) for the period from continuing operations (IX'X) 5,438,505
XI. Profit/1loss ) from disconrinuing operat ions
XII. Tax expense of discontinuing operations
XIII. ProfiU(loss) from Discontinuing operations (after tax) (XII-XtrI)
XIV. Profit (Loss) for the period (XI + XIV) 5,438,505

4.5 Accounting process:

1 – Identify the Transaction

Identifying the business transaction is the initial step in the process of accounting. The business entity
has to identify financial and monetary transactions. Therefore, only those transactions that are monetary
are recorded. Also, the transactions that belong to the business are to be recorded, and not the owner’s
transactions are included in the books of accounts of the business.

2 – Recording of the Transactions in the Journal

After identifying the transactions, the second step of the accounting process is to create the Journal entry
for every accounting transaction. The point of recording transactions is based on the policy followed by
the entity for accounting, i.e. accrual basis or cash basis of accounting. In the accrual basis of
accounting, the revenues and expenses are recorded in the entity’s books in the period when they are
earned and incurred, respectively, regardless of the actual cash receipt and payment. However, in the
case of cash accounting, the transactions are recorded only when the actual cash is received/paid. In a
dual entry system, every transaction affects at least two accounts, i.e., one account is debited, and
another account is credited. For example, if the purchases are made in cash, the purchases account will
be debited (purchases increase), and the cash account is credited (cash decreases).

3 – Posting in the Ledger

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After recording the transaction in the Journal, the individual accounts are then posted in the general
ledger. t helps the owner/accountant know each account’s balance individually. For example, all the
debits and credits of the bank account are transferred to the ledger account, which helps to know the
increase and decrease in bank balance during a period. Finally, we can determine the ending bank
balance from it.

4 – Unadjusted Trial Balance

The company’s trial balance is prepared to check whether the debits are equal to the credits or not. The
trial balance’s main purpose is to identify any errors made during the above process. The trial balance
reflects all the accounts balances at the given time. After the preparation of the trial balance, it is
checked that the total of all credits is equal to the total of all debts, and if the total is not the same, then
an error is to be identified and corrected. There can be other reasons for the error, but firstly, an
accountant

tries to locate the error by preparing the trial balance. Also, trial balance helps to know the balances of
all accounts in a summarized form.

5 – Adjusting Journal Entries

When the accrual basis of accounting is followed, some of the entries are to be made at the end of the
accounting year, such as entries of expenses that may have been incurred but are not booked in the
Journal and entries of some income that may be earned by the business but are not yet recorded in the
books. For example, the interest amount on a fixed deposit is earned each year, but it is accumulated in
the fixed deposit amount. This interest income is to be recorded in the books of accounts yearly because
the interest is earned yearly, no matter the amount will be received together after the maturity of the
fixed deposit.

6 – Adjusted Trial Balance

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After all the adjusting entries are made, again, a trial balance is to be prepared before preparing the
financial statements to check that all the credits are equal to the debits after the adjustment entries are
made.

7 – Preparation of Financial Statements

After all the above steps are completed, the financial statements of the company are prepared to know
the actual financial position, the profitability position, and the cash flow position of the business. The
statements that are prepared for knowing the above positions are a statement of profit and loss for
knowing the profitability position, the balance sheet for getting the financial position, and the cash flow
state mentto know the changes in cash flows from the three activities of the business (operating,
investing and financing activities).

8 – Closing Entries

Finally, the accounting cycle ends with this step. These entries transfer the temporary account balances
to a permanent account. The temporary accounts are the accounts whose balances end in a single
accounting year, such as sales, purchases, expenses, etc. These balances are first transferred to the
income statement and then to the permanent account, i.e., the profit/loss is transferred to the retained
earnings account. It should be cleared that only temporary accounts are closed, not the permanent ones
(accounts that are balance sheet accounts such as fixed assets, debtors, inventory, etc.)

After closing entries are made, the trial balance is again prepared to check that the debit equals the
credit, and the accounting cycle starts again with the beginning of another accounting year.

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5. Human Resource

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5.1.Recruitment procedure:

Recruitment is a core function of the Human Resource department. It is a process that involves
everything from identifying, attracting, screening, short-listing, interviewing, selecting, hiring, and on

boarding employees.

The recruitment teams can be large or small depending on the size of an organization. However, in
smaller organizations, recruitment is typically the responsibility of a recruiting manager.

Many organizations outsource their recruiting needs, while some companies rely exclusively on
advertisements, job boards, and social media channels to recruit talent for new positions. Many
companies of today, use recruitment software to make their recruitment process more effective and
efficient.

5.1.1 Planning Of The Recruitment Process:

Is served as the basis for the whole recruitment process, where the positions for which
recruitment process is to be done are properly analyzed and presented. It includes job
specifications and nature, qualifications, experience, and required skills for the job, etc. A
structured recruitment plan is compulsory to attract potential candidates from a pool of
candidates. The potential candidates should be qualified, experienced with a capability to take
the responsibilities required to achieve the objectives of the organization, The recruitment plan
basically consists of the following functions- vacancy identification, analysis of the particular
job, analysis of the job, description of the job, specification and evaluation of the job.

5.1.2 Developing A Strategy For The Recruitment:

It is the second step in the recruitment process where a proper blueprint for the recruitment
process is prepared and every task is undertaken according to it. After completing the preparation of job
specifications and job descriptions, the next step is to decide which strategy to adopt for recruiting the
potential candidates for the organization.

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When preparing a recruitment strategy, the HR considers the following points −

 Make or buy employees

 Geographical area
 Types of recruitment
 Recruitment sources

The development of a recruitment strategy is a long process, but having the right strategy is necessary to
attract the right candidates.

5.1.3 Search For The Most Suited Candidate:

It is basically concerned with taking the decisions regarding the source for the recruitment process.
There are basically 2 sources for this process: internal and external source of recruitment. This is the
process of recruitment where the resources are selected depending upon the requirement of the vacant
position. After the recruitment strategy is done, the searching for potential candidates will be initialized.

This process consists of two steps –

• Starting off the process− Once the line manager verifies and permits the existence of the
vacancy, the search for candidates starts.

• Media selection− Here, the organization selects the media through which the communication of
vacancies reaches the prospective candidates.

The two main sources of selection are:

Internal Sources

Internal sources of recruitment mean to recruit employees within the organization through.

• Promotions

• Transfers

• Former Employees

• Previous Applicants
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• Internal Advertisements (Job Posting)

• Employee Referrals

External Sources

External sources of recruitment mean to recruit employees outside the organization through

• Direct Recruitment

• Employment Agencies

• Employment Exchanges

• Professional Associations

• Advertisements

• Campus Recruitment

5.1.4 Short-listing And Screening Of The Candidates:

This process follows the process of selecting the source of recruitment. Screening is the process of
filtering the applications of the candidates for the further selection process.

Screening is an integral part of the recruitment process that helps in removing unqualified or irrelevant
candidates, which were received through sourcing.

5.1.5 Checking The Resumes And Cover Letter Received:

It is the first step involved in the screening process. In this process, the resumes of the candidates are checked and
reviewed for the candidates’ work experience, education, and overall background matching the requirement of the job

While reviewing the resumes, an HR keep the following points in mind, to ensure better screening of the potential
candidates

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 Reason for change of job
 Longevity with each organization
 Long gaps in employment
 Job-hopping

5.1.6 Doing An Interview Via Video/Telephone Call:

Conducting video or telephonic interviews is the second step of screening candidates. In this process, after the resumes
are screened, the candidates are contacted through phone or video by the hiring manager. This screening process has
two outcomes −

 It helps in verifying the candidates if they are active and available.

 It also helps in giving a quick insight into the candidate’s ability to answer interview questions, attitude, and
communication skills.

5.1.7 Monitoring And Controlling The Whole Process:

It is the last step in the process of recruitment and is considered as one of the most important steps in the recruitment
process as it keeps a check whether all the activities are going in accordance with the predetermined plans. In this
process, the effectiveness and validity of the process and methods are assessed. Recruitment is costly, hence it is
important that the performance of the recruitment process is thoroughly evaluated.

The costs incurred in the recruitment process are to be evaluated and controlled effectively. These include the following
−

 Salaries to be paid to the Recruiters

 Administrative expenses and Recruitment overheads
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees.
 Cost incurred in recruiting suitable candidates for the final selection process
 Overtime and Outstanding costs, while the vacancies remain unfilled
 Time spent by the Management and the Professionals in preparing job description, job specifications, and
conducting interviews.

5.2Selection process:

The selection process refers to selecting the right candidate with the required qualifications and
capabilities to fill the vacancy in the organization. The selection process is quite a lengthy one and also

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complex. It involves a series of steps before the final selection. The procedure of selecting the
employees may vary from industry to industry according to their own needs. Every organization designs
their selection process while keeping in mind the urgency of hiring the people and the requisites for the
vacancy of the job.
The selection process refers to selecting the right candidate with the required qualifications and
capabilities to fill the vacancy in the organization. The selection process is quite a lengthy one and also
complex. It involves a series of steps before the final selection. The procedure of selecting the
employees may vary from industry to industry according to their own needs. Every organization designs
their selection process while keeping in mind the urgency of hiring the people and the requisites for the
vacancy of the job.
Popularly there are seven stages in the process of selection .

5.2.1 Application:

After the job opening has been announced, the candidates apply for the respective jobs which
suit them.

5.2.2 Screening and Pre-selection :

The goal of this second phase is to reduce the number of candidates from a large group to a
manageable group of between 3-10 people that can be interviewed in person. The selection is
based on their selection technique and according to the company’s needs.

5.2.3 Assessment:

The full assessment usually is more accurate as this helps the organization to check the
candidate well. Assessments include work sample tests, integrity tests, and related job
knowledge tests.

5.2.4 Reference And Background Check:

An essential step is the reference check, which is to confirm about the candidate. The
candidates are asked to give references and he follows up on these.

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5.2.5 Decision:

The next step is to decide to choose the correct candidate who promises the greatest future
potentiality for the organization.

5.2.6 Job Offer and Contract :

After the decision-making process, the candidate needs to accept the offer which is
known as the contract.

5.3No of employees:

There are 500 employees working under the vastu Dair, inclusive of 21 states Sales Team,,
Factory Staff, Head Office Staff.

5.4Attendance maintenance:

Use punching machine for head office employee and for factory employee and for factory
employee also and sales team we will use ERP software to maintain attendance.
5.5Training given:

Training and Development is one of the main functions of the human resource management
department. Training refers to a systematic setup where employees are instructed and taught matters
of technical knowledge related to their jobs. It focuses on teaching employees how to use particular
machines or how to do specific tasks to increase efficiency.

Product training can be part of your onboarding training program or ongoing skills training. You
can use it to educate your employees about the products or services they represent to ensure they
make a good impression.
Also, it keeps your current staff up-to-date on new products, services, or features. You can either
train your employees periodically with face-to-face courses or use an LMS to make this happen
with far more ease.

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5.6Fringe benefits required by law:

The mandatory fringe benefits are intended to provide employees with medical care, mitigate
them from economic hardships in the event they lose employment, and provide them with
retirement income to sustain them during retirement. The following are some of the mandatory
fringe benefits that employers are required to provide:

5.6.1 Health insurance:

This fringe benefit is contained in the Patient Protection and Affordable Care Act. It requires
businesses that employ more than 50 people to provide healthcare plans, and employees are required
to have health insurance coverage. The health care plans cover visits to primary care physicians,
specialist doctors, and emergency care.

5.6.2 Unemployment insurance:

The Federal Unemployment Tax Act (FUTA) requires employers to pay a federal and state
unemployment tax to the Department of Labor, which provides wages, training, and career guidance
to employees who become unemployed due to no fault of their own. Such benefits are meant to
provide brief monetary assistance to unemployed citizens who meet the requirements of the act.

5.6.3 Medical leave:

Businesses that employ over 50 employees are required by law to provide family and medical leave
to an employee who has worked for over one year in the company. The medical leave is unpaid,
protected, and can last up to 12 weeks.
5.6.4 Worker’s compensation:

The worker’s compensation benefit is administered by the Department of Labor to federal workers
who are injured at their workstation or acquire an occupational disease. Employees are provided
with medical treatment, wage replacement benefits, rehabilitation, and other benefits. The
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compensation requirements vary by state, and injured employees should contact their state worker’s
compensation board.

5.7Leave rules:

 The calculation of earned leaves is done monthly for the entire calendar year. Ideally, the earned
leaves get credited to the employee’s leave account at the start of the calendar year, but the
number of leaves the employee is entitled to also depends on the number of months they
worked. For instance, according to the employer’s leave policy, 1.25 leave days get added to the
employees leave account on completion of one month of service with the company.
 If an employee joins the company at the middle of the calendar year, then the entitled earned
leaves will be calculated on a pro-rata basis, from the joining date to December 31 of the same
year.
 If an employee resigns, the entitled leaves are calculated on a pro-rata basis until the last
working day. If the employee has taken any extra leaves, this will get adjusted in the final
settlement amount.
 If an employee is unable to utilise all the entitled earned leaves in one calendar year, then the
unused earned leaves will get carried forward to the next year. However, there is a limit to the
number of leaves that can be carried forward to the next year. Every employer, depending on
the state and region, has different carry-forward rules. The maximum number of leaves that can
be accumulated is 30 days. However, according to The Shops and Establishment Act, it can go
up by 45 to 60 days, depending on the policy of the states.
 The accumulated or unused leaves get automatically encashed if they exceed the limit or when
the employee leaves the organisation. The encashment procedure depends on the company leave
policy in India.
 The formula to calculate encashable earned leaves is:
Amount encashed = monthly gross salary * accumulated encashable leaves / 22
 The encashment of leaves while in service is entirely taxable as per the law. Any leave
encashment payment received by state and central government employees during retirement is
100% exempt from any taxes. In all other cases, the exemption amount is limited.
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5.8 Employee safety mechanisms:

5.8.1 Provide Health and Safety Training for All Staff:

Just as business owners and CEOs are aware of their obligations toward their employees, workers must
be aware of their own responsibilities when it comes to ensuring safety at work. Teaching employees
effective personal strategies they can implement themselves is one effective way of motivating staff.
Emphasize that employee safety is a priority by providing new trainees with health and safety training in
their first week of work.

5.8.2 Promote Engagement and Participation from Workers:

Encouraging employee engagement and participation are key aspects in promoting and growing a
positive safety culture in your workplace. A healthier and safer workplace increases employee job
satisfaction, productivity, and business performance.

Involve your employees in shaping a safer, risk-free working environment. Encourage them to suggest
practical solutions to maximize safety. Workers are on the floor day in, day out, making them ideally
positioned to notice hazards.

Employee-suggested solutions are often straightforward, effective, cost-efficient, and easy for employers
to implement. Urge workers to get involved and speak up about workplace safety issues. Ask that they
tell you what’s working and what isn’t. Emphasize that, by reporting hazards, employees are making
their workplace safer for themselves and their workmates.

5.8.3 Designate Health and Safety Representatives:

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CEOs and business owners are not always present in the workplace, so don't know firsthand about new
hazards that may arise. Information on safety issues needs to be passed to those in charge, which, for
various reasons, some workers are reluctant to do.

By designating a health and safety representative, employees can confidently and discreetly (and, if
necessary, anonymously) discuss their concerns with this person. The representative, who acts as a
trusted intermediary between CEO or owner and employee, can relay these matters to the employer at
regular meetings to ensure the health and safety of employees in the workplace is a top priority at all
times.

5.9Promotions:

According to Pigours and Myers, ‘Promotion is advancement of an employee to a better job – better in
terms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay
or salary”.

Arun Monappa and Mirza S Saiyadain defined promotion as “the upward reassignment of an individual
in an organization’s hierarchy, accompanied by increased responsibilities, enhanced status and usually
with increased income though not always so”.

Conditions of promotions are:

 Reassignment of higher level job to an employee than what he is presently performing

 The employee will naturally be delegated with greater responsibility and authority than what he
has had earlier. Promotion normally accompanied higher pay. It means in some cases, the
employee perform higher level job and receive the salary related to the lower level job.
 Promotion may be temporary or permanent depending upon the organizational needs and
employee performance.

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5.10 Transfer:

“a lateral shift causing movement of individuals from one position to another usually without involving
any marked change in duties, responsibilities, skills needed or compensation”

Transfer is defined as “… the moving of an employee from one job to another. It may involve a
promotion, demotion or no change in job status other than moving from one job to another”.

Reasons:
1. Unsuitability of the employee to higher level jobs
2. Adverse business conditions
3. New technology and new methods of operation
4. On disciplinary actions

5.11 Specific HR Policies:

Some laws require employers to communicate workplace information to employees in writing. In the
absence of a specific requirement, employers should also implement policies that communicate
company expectations and benefits. While the contents of your company's handbook will depend on a
number of factors, including your company's size, industry, and location, consider including these key
policies.

5.11.1 At-will employment:

This statement reiterates that either you or the employee can terminate the employment relationship at
any time and for any reason, as long as the reason is a lawful one. It is a best practice to prominently
display this statement in the beginning of your employee handbook (except in Montana, where at-will
employment is not recognized). Reinforce at-will status in your handbook acknowledgment form as
well.

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5.11.2 Anti-harassment and non-discrimination:

These policies prohibit harassment and discrimination in the workplace. Non-discrimination laws are
governed by federal, state and local provisions, so review your applicable law and account for all
appropriate protections.

5.11.3 Employment classifications:

It is a best practice to clearly define employment classifications, such as full-time, part-time, exempt or
non-exempt since an employee's classification can dictate eligibility for benefits and overtime pay.

5.11.4 Leave and time off benefits:

These policies address a company's rules and procedures regarding holidays, vacation, sick, and other
types of time off benefits, or leave required by law (such as voting leave, family leave, and domestic
violence leave) or company policy. Check your state and local law to ensure all leave requirements are
included in your employee handbook.

5.11.5 Meal and break periods:

A policy on meal and break periods informs employees of the frequency and duration of such breaks as
well as any rules or restrictions related to break periods. Rest periods, lactation breaks, and meal periods
must be provided in accordance with federal, state and local laws.

5.11.6 Timekeeping and pay:

A timekeeping policy informs employees of the method for recording time worked and the importance
of accurately recording their time. A policy on paydays lets employees know the frequency of paydays,
the methods available for receiving pay, and any special procedures for when a payday falls on a holiday
or when an employee is absent from work.

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5.11.7Safety and health:

Safety policies describe safety and emergency procedures and require employees to report work-related
injuries immediately. Additionally, some regulations under the Occupational Safety and Health Act
require employers to have specific policies and programs in place if certain workplace hazards exist
(such as a hazard communication program if certain chemicals are present in the workplace).

5.12 Specific HR Policies:

Modern Methods & Types of Performance Appraisal

1. Graphic Rating Scale Method

2. Ranking Method
3. Checklist Method
4. General Performance Appraisal in HRM
5. Technological Performance Appraisal

Dedi
catio
Effici
n/ Disci Work
ency
Empl Head Posit pline Attitu Rating Grade
Depa in
oyee Offic ivity and de of of
Sr.No rtme exec
Nam e/Fac towar punc & April April
nt ution
e tory ds tualit Team 2022 2022
of
work y work
task
and
firm
(0-10
(0-25 (0-45 (0-20
mark
mark mark mark
s
s) s)(0 s)
)
1 Bansa Head HR 20 42 9 10 81% Excell
ri
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Dodiy Office ent
a
Priyank Head 63% Good
Operati
a
2 Office on cum 20 30 5 8
Mendp
Sr. Acc
ara

Rushita Head 84% Excell

3 Acc Exe 22 36 10 16
Italiya Office ent
4 Purvish Head Accoun 54% Avera
a tant
Office 12 20 8 14 ge
Gondali (Bekary
ya )
Monika Head 0% -
5 Dobariy
Office Ac Exe 0 0 0 0
a
Jigeesh Head 75% Good
a Recepti
6 Office 20 30 10 15
Kathiriy onist
a

7 Anita Head Office 85% Excell

20 35 10 20
Patel Office Assit ent
Head Sales 84% Excell
Shweta
8 Office Coordin
ent
Balodi
ator 17 42 7 18
10 Head Moder 88% Excell
Srusha n Trade
Office ent
ti – 23 40 10 15
Satani Coordin
ator
Tushar Head IT 86% Excell
11 Kapadiy
Office manag 22 40 9 15 ent
a er

13 Pranav Head Sales 23 35 8 10 76% Good

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Navsari Office
Head
wala

Head Mrkt & 79% Good

Rinki
14 Office Brandin 21 40 8 10
Singh
g Head

Head MMT 52% Avera

15 Ajit Jha
Office Manag 18 20 4 10 ge
er

Ankita Head 59% Avera

16 PA 20 25 9 5
Khetani Office ge
Head Sales 76% Good
Sarita
17 Office Manag
Patel
er 15 37 7 17

5.13 Employee Feedback Mechanism:

Before we dive into the overall strategy, let’s look at the specific definition of feedback and what makes
it most effective.

Employee feedback is defined as a process of giving constructive suggestions to the employees by their
reporting managers, supervisors and peers. However, this process is not just restricted here, employee
feedback also comprises of the feedback that the employee would want to give to his/her manager, peers
or the organization as a whole.

Feedback can help employees and the organization constantly get better at what they do. Employee
feedback is an integral part of the employee experience process and a mechanism that will increasingly
help employees get better at their job and for the organization to develop a better workplace culture.

According to Forbes, 73% of employees consider feedback important but only one third receive it. Most
managers don’t provide enough feedback and when they do they tend to make it negative or too vague
and the importance of feedback is lost. As simple as it may sound giving feedback is not easy. It is a
systematically designed process, because of the complexities involved- Humans!

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6 Purchase department

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6.1Purchase Procedure:

6.1.1 Determining Purchase Budget:

Purchase Manager prepares a purchase budget for the forthcoming financial year. Purchase budget is
prepared with the help of production planning department. It contains detailed information regarding
quantity to be purchased, quality of materials, time of purchase and the sources of procurement. A
schedule of materials and components needed for various jobs, known as bill of materials, is also
prescribed for working out details of purchase budget. A bill of materials is also useful in exercising
control over the utilization of materials.

6.1.2 Receipt of Purchase Requisition:

The purchase officer initiates action for the purchase of materials only when he receives a request for the
same. The store-keeper and departmental heads send requisition slips to purchase department giving
details of materials required by their departments etc. A purchase requisition is a form used as a formal
request to the purchasing department to purchase materials.This form is prepared by the store keeper for
regular stock materials and by the departmental head for specific materials not stocked as regular items.
The storekeeper knows when an action or fresh procurements is to be initiated. He will send the
requisition when materials reach re-ordering level. He retains one copy of the requisition with him for
future reference .It is on the basis of purchase requisition that orders are placed for materials.

6.1.3 Determining Sources of Supply:

Purchase Manager remains in touch with various suppliers of materials. The quotations are invited for
the purchase of specific items. After receiving quotations a comparative study is made regarding terms
and conditions offered. The factors to be considered include price, quantity, quality, time of delivery,
terms of payment, trade discount and reputation of suppliers. After looking at various factors a final
decision is taken about the supplier of goods.

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6.1.4 Placing Order:

After selecting a supplier a formal purchase order is sent for the supply of goods. A purchase order is
sent on a printed form and is duly authorized by the purchase manager. This order should contain details
about the quantity, quality, price, mode of delivery, terms of payment etc. The purchase order authorizes

the vendor to despatch goods specified in it. It establishes a contractual relation between the buyer and
the vendor.

6.1.5 Follow-Up of Purchase Order:

A purchase order normally bears a date by which the goods must be delivered It is in the interest of the
organization that goods are received in time for keeping uninterrupted flow of materials. The suppliers
may be reminded of the date of delivery of goods. A follow-up of purchase order is necessary to receive
stocks in time.

6.1.6 Receipt and Inspection of Materials:

In big concerns the task of receiving materials is assigned to the purchase department whereas in small
concerns this work is done by the store keeper. After unpacking goods their quantity is compared to that
given in delivery challans. Any discrepancy in items is reported to the purchase department. The
specifications and quality of goods is also checked at this stage.

6.1.7 Checking Invoices:

Lastly, purchase department checks the invoices supplied by the vendor with that of its own records. The
quantity, quality, price, terms etc. are compared with those given in purchase order. After making full
checking the invoices are sent to accounts department for payment.

6.2Purchasing Lead time:

Purchasing lead time is the interval between when the decision is made to acquire goods and when the
goods are received. This lead time is comprised of order preparation time, supplier lead time, the time in
transit from the supplier to the recipient, inspection time, and putaway time. One of the best ways to
improve the performance of a business is to reduce its purchasing lead time, so that it can be more
responsive in making its own deliveries to customers.Vastu company lead time is 15 days.

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How to Use Purchasing Lead Time

Purchasing lead time must be built into the order placement process, so that goods are ordered
sufficiently far in advance to assure that they are received in time for their intended use. Consequently,
purchasing lead time is quantified in a material requirements planning system. Without due
consideration of this lead time, a company will suffer from ongoing product stockout conditions, as well
as production runs that cannot be completed due to missing parts. This is a particular concernduring
periods of peak demand, when it may be necessary to increase quantities on hand in order to ensure that
customer demand can be met.

6.2Ordering Costs:

Cost of procurement and inbound logistics costs form a part of Ordering Cost. Ordering Cost is
dependant and varies based on two factors - The cost of ordering excess and the Cost of ordering too
less.

Both these factors move in opposite directions to each other. Ordering excess quantity will result in
carrying cost of inventory. Where as ordering less will result in increase of replenishment cost and
ordering costs.

These two above costs together are called Total Stocking Cost. If you plot the order quantity vs the TSC,
you will see the graph declining gradually until a certain point after which with every increase in
quantity the TSC will proportionately show an increase.

This functional analysis and cost implications form the basis of determining the Inventory Procurement
decision by answering the two basic fundamental questions - How Much to Order and When to Order.

How much to order is determined by arriving at the Economic Order Quantity or EOQ.

6.3 Carrying Cost:

Inventory storage and maintenance involves various types of costs namely: Inventory Storage Cost ,Cost
of Capital.

Inventory carrying involves Inventory storage and management either using in house facilities or
external warehouses owned and managed by third party vendors. In both cases, inventory management
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and process involves extensive use of Building, Material Handling Equipments, IT Software
applications and Hardware Equipments coupled managed by Operations and Management Staff
resources.

6.3.1 Inventory Storage Cost:

Inventory storage costs typically include Cost of Building Rental and facility maintenance and related
costs. Cost of Material Handling Equipments, IT Hardware and applications, including cost of purchase,
depreciation or rental or lease as the case may be. Further costs include operational costs, consumables,
communication costs and utilities, besides the cost of human resources employed in operations as well
as management.

6.3.2 Cost of Capital:

Includes the costs of investments, interest on working capital, taxes on inventory paid, insurance costs
and other costs associate with legal liabilities.

The inventory storage costs as well as cost of capital isdependant upon and varies with the decision of
the management to manage inventory in house or through outsourced vendors and third party service
providers.

Current times, the trend is increasingly in favor of outsourcing the inventory management to third party
service provides. For one thing the organizations find that managing inventory operations requires
certain core competencies, which may not be inline with their business competencies. They would rather
outsource to a supplier who has the required competency than build them in house.

Secondly in case of large-scale warehouse operations, the scale of investments may be too huge in terms
of cost of building and material handling equipments etc. Besides the project may span over a longer
period of several years, thus blocking capital of the company, which can be utilized into more important
areas such as R & D, Expansion etc. than by staying invested into the project.

6.4 General details about purchase department:

All businesses need specific goods, materials and equipment to manufacture products, offer goods for
sale to customers, or perform the services they are selling. Someone has to ensure that these goods are

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bought into the company, in the right volume and at the right time, to meet the company's
requirements. That role falls to the purchasing, or purchase, department.

The role itself is a broad one, covering such areas as market analysis, negotiations with suppliers and
producers, transport, storage options, procurement technologies and order times to ensure that goods
are bought as economically and time-efficiently as possible. Specific functions include.

6.5 List of Suppliers:

Name of Supplier of enterprise:

1.Marvin Patoliya

2.Haresh Bhai

3.Hashmukh Bhai

4.Jagdish Bhai

5.Devi Lal

6.Amit Bhai

7.Hardik Bhai

6.6 Any other specific detail:

“Shree Radhe Dairy Farm & Foods Pvt. Ltd.” is a distinguished manufacturer of a wide range of Cow
Ghee and Buffalo Ghee. Founded in the year 2015, we are a renowned company that is incepted with
an objective of providing high quality and pure ghee in various quantities within scheduled time
period. Situated in Surat (Gujarat, India), we process ghee in accordance with set industry norms.
Under the headship of “Ms. Ankita” Manager, we have gained huge clientele in our country

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conclusion
After completing our summer training at Shree Radhe Dairy Farm and Foods Pvt .Ltd. I would like to
acknowledge the fact that this experience has helped me gain practical exposure about fundamentals
of any business and especially FMCG Dairy business. The brand Vastu is a long way to go, on its
mission of “Penetrating each home of India” working on its mantra of “Surity for Purity” and giving
excellent services to its channel partners satisfying the customers with its non compromising quality
standards. It is evident from this study and Shree Radhe Dairy products is advised to maintain its
quality on its products so as to retain this stage forever.The study has been successful in knowing the
dealers’satisfaction with Vastu Ghee.

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