Internship_project_MBA_Shashank_M.docx

TABLE OF CONTENTS
CHAPT
ER
NO.
CONTENTS
PAGE NO.
1.
INTRODUCTION ABOUT THE INTERNSHIP,
INDUSTRY PROFILE 1-2
2. COMPANY PROFILE 3-17
3. MCKENSY’S 7S FRAME WORK 18-22
4. SWOT ANALYSIS 23-24
5. ANALYSIS OF FINANCIAL STATEMENT 25-41
6. FINDING, SUGGESIONS, CONCLUSION 42-44
7. LEARNING EXPERIENCE 45
BIBLIOGRAPHY

CNC INDIA TOOLS AND SERVICES PVT LIMITED, BANGALORE
Page 1
CHAPTER -1
INTRODUCTION ABOUT INTERNSHIP, INDUSTR PROFILE
INTRODUCTION OF INTERNSHIP
The Internship Program as a part of curriculum of VTU for MBA students play a vital role to
bridge gap between the theories studied and the real business world. It helps the students to
get the real exposure in understanding the functioning of an organization. The main purpose
of the training is to know the practical implication, policies and programs of the company.
The theoretical aspects that we study during our course can be observed how exactly they are
put into practice in the corporate world.
The internship study helps to enrich the practical knowledge of the students on the activities
of the organization, its functional departments, organizational structure, strengths, weakness,
opportunities, threats and the business performance.
TITLE OF THE STUDY:
The title of the study is “AN ORGANIZATIONAL STUDY ON CNC INDIA TOOLS AND
SERVICES PVT LTD, BANGALORE.”
The students are expected to develop their personality and capacity to adopt and handle
challenging situations in the real business world. Through the internship program, the
students should be able to acquire transferrable skills such as communications skills,
interpersonal skills, technical skills, management’s skills, and problem-solving skills. Last but
not least, the students can explore their interest in future career development.
OBJECTIVES OF THE STUDY:
1. To know about various departments and their functioning.
2. To understand the organization structure.
3. To study the policies issued involved with the decisions of the company. 4.To
understand how the key business processes are carried out in organizations.
SCOPE PF THE STUDY: This study is an attempt to understand the organization as a
whole and to study the different departments in detail so that a student gets a detailed

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knowledge about the organization. The study directed towards the understanding of functions
of different department.
INDUSTRY PROFILE
India is the eighteenth biggest maker of machine apparatuses on the planet. The machine
Apparatuses industry comprises of around 450 assembling units, of which around one
hundred Fifty be in the sorted out division and worldwide organizations like Doosan, DMG,
and Makino among others which trade in machines for offering. The main 10 producers
represent Just about 70% of the yield. Local makers represent around forty five% of the
aggregate Indian engine apparatus showcase.
The machine device parts have had a stale development from the time when the start of 2000
as interest in the assembling segment backed off significantly. In mid-2002, Indian designing
Segment, particularly the car segment, saw expanded speculations as worldwide majors
Outsourced assembling to our country. This prompted a surge sought after for machine
Devices. The device apparatus industries, from that point forward, have been developing at a
Solid velocity.
The apparatus instrument industry is presently in a place to fare broadly useful and
Touchstone machine apparatuses in the direction of even modern propelled nations. With
Record of mechanical generation stirring novel highs and accentuation on assets venture by
the administration, the machine apparatus production is good to go eyewitness extraordinary
Development.
Appliance instrument trade can be characterized by the sorts of machines i.e. metal cutting
and metal framing. These can be additionally arranged into physically worked machines and

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numerically inhibited. As mindfulness with reference to new innovation is expanding, an ever
Growing number of individuals are selecting more propelled NC and CNC machine.
CHAPTER -2
ORGANIZATION PROFILE
COMPANY PROFILE
The TEAM CNC India, spot themselves as a novel team determined by values, striving to
deliver extensive range of tailor made cost effective and quality products and service to
customer. They make all efforts to build a seamless relationship with customers by delivering
end to end solutions.
CNC INDIA TOOLS & SERVICES PVT LTD, conceptualized in the year 1992 by a team of
techno crafts, their vision is to accomplish brilliance in given that TOTAL SOLUTIONS to
CNC machine users for getting the better output. They are one step solution provider for
complete machine tool maintenance including breakdown, annual maintenance contracts,
retrofitting and reconditioning of CNC machines, Automation solutions, jigs and fixtures,
SPMs for metal cutting applications supply of leak testing machine. We are authorized
distributor of Mitsubishi carbides.
Having had all expertise around machine tool starting from machine building, PLC
integration, manufacturing Technology, jigs and fixtures expertise, tooling solution recently,
we have extended our unloading for CNC machines, welding application, material handling
and inspection.

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They are one of the leading tooling and fixture solution providers in India. They have
supplied many turnkey tooling & fixture solution for automobile, value and general
engineering components to CNC machines. Company have manufacturing innovative
hydraulic and mechanical fixtures for various requirements ranging from single components
to tomb stone type with multiple components.
They have a team of qualified experienced and professionals of more than 125 members, for
design, manufacture, installation and commissioning required for the above activities. They
also provide the warranty and post –warranty maintenance services to their customers
Meeting the challenge of modern industry with ever shrinking tolerance levels, it has high
importance for the desires of worldwide quality standards mean that the performance of
manufacturing machinery. To meet this demand, CNC India is providing laser calibration
services to its customers. Laser calibration system will assess, monitor and help in correcting
the performance of both linear & rotary Axis of CNC machine.
BACKGROUND OF THE COMPANY
CNC INDIA TOOLS & SERVICES PVT LTD., Conceptualized in the year 1992 by a team
of 4 technocrats. Their VISION is to achieve excellence in providing TOTAL
AUTOMATION SOLUTIONS to CNC machine users for improving the productivity of CNC
machines. The company strength stems from the fact that we are almost a one stop shop for
all machine tool a One another & excellence team work, we make sure our customer
requirements are recognized and viable solutions provided.
• 1993: Set up laboratory for component level servicing of PCBs.
• 1994: Started undertaking installation & Commissioning of CNC machines.
• 1997: Diversified into sales of Mitsubishi carbide cutting tools.
• 1998: Started design & manufacture of mechanical & hydraulic fixtures.
• 2000: Extended services activity to retrofitting of CNC machine tools.
• 2006: Started laser Calibration services for CNC machines including Rotary Axis.
• 2012: Extended Turnkey solution for machining of components.
• 2013: Robotics & Gantry mechanisms for component transfers.
• 2014: Welding Automation & Welding Robotic cells for automobile & Heavy
Engineering Industry.

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NATURE OF BUSINESS
1.Design, Manufacture, Supply, Installation, Commissioning and Servicing of CNC machine
related services.
• Reconditioning of CNC machines.
• Retrofitting of CNC system.
• Servicing of CNC machines.
• Machine calibration.
2 .Provide solutions in design, Manufacture and Supply of Fixtures for machines tools.
3.Marketing of tools and Cutting tools for CNC machines.
VISION, MISSION AND QUALITY POLICY
VISION
•
Achieving excellence by innovative solutions to empower technology
transformations.
•
The company vision is to accomplish brilliance TOTOAL SOLUTIONS to
CNC machine users for getting better the efficiency of CNC machines. CNC India will be a
proficient organization with which all individual correlate themselves with pride and passion.
•
We will enhance value for all our customers by providing customized solutions to all CNC
machines related activities.
MISSION:
 100 crore missions...
 To achieve 1000000000 turnover by the end of 2019.

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 Providing reliable and innovative solutions in turnkey machining robotic &
automation application across the global to delight customer by enhancing
quality, productivity and cost effectiveness.
 Building a strong growth oriented organization by utilizing our strength and
opportunities and create stakeholders welfare.
QUALITY POLICY
 CNC INDIA TOOLS & SERVICES (P) LTD. will provide customized CNC
machine related services.
 To meet customer requirements.
 Customer satisfaction will be achieved by providing Quality of Services and by
Meeting the delivery schedule. Adequate resources will be provided for ensuring
Quality of services and skills up-gradation of employees.
 Cost effective solutions will be provided to customers through continuous
Improvement in our services along with continual improvement of the
effectiveness of Our Quality Management system.
 This policy shall be communicated across the organization and shall be reviewed
periodically for its continuing suitability.
ISO CERTIFICATE

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Major competitors
1.Jyoti CNC Automation 2.Micro Tech CNC 3.Unnathi CNC Technologies pvt Ltd
4.Ace Designers 5.Acumac Machine Tools pvt Ltd 6.CNC Router Machine India
PRODUCT/SERVICES PROFILE:
PRODUCTS:
RETROFITTING, RECONDITIONING & AMCs CNC India started as a company
providing support in maintaining up time of the machines. We have an in built
capacity to provide end to end support in maintaining the machine Witham’s and up-
gradations of control/drives and reconditioning of machines. The company have
qualified engineers and skilled Technicians with a strong background of hands on
experience In CNC Machine tools, Machine Tool Building, interfacing of Siemens
and Fanuc controllers for various types of machines/ applications, in India and

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abroad. We have an integrated shop Floor housed with all necessary infrastructures to
handle Retrofitting, Reconditioning and Manufacture of Fixtures & SPMs.
Samples of expertise:
 Retrofitting and reconditioning of Hackamore tome turn mill, two path controller
Machine configuration: Fanuc 18i -TB, 14 servo axes + 4 spindles
 TPM activities for VMC and turning centers for TVS India Ltd
Redesign of Coolant tank
Alarm indication lamps
Redesign of pneumatic and hydraulic system
Operator safety interlocks
 Retrofitting of Schuss floor borer with Siemens 840
FIXTURES & SPECIAL PURPOSE MACHINES
We provide end-to-end solutions starting from design, manufacture, and prove outs.
If you are looking to accelerate your machining, our In-house engineering department
can design Custom made Fixtures as per customer requirement. The fixtures are
intended and built to Client desires and assured to offer the means to execute more
operations on more parts to provide the ways for improved output.
We also design &produce Special purpose machines with or without CNC/ PLC. The
Application of these SPM can range from metal cutting, coating application,

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assemblies. Multi Operations, multi spindles. We have a fully equipped & dedicated
design department both for fixtures & SPMs in House. Our design Department can
study the customer requirement and customizations can be made as per
configurations required.
Samples of SPM expertise
1. Averaging M/c for New Holland tractors – Special purpose machine
Controller: Fanuc OI- Mate TB
2. Axle welding SPM for Automotive Axle ltd
Controller: Fanuc OI- Mate TB
No of axis: 2 axes on 2 path control
Special purpose machine to weld on 2 sides of axles simultaneously
3. Brake shoe welding SPM for Automotive Axle ltd
Controller: Fanuc Oi- Mate TB
No of axis: 2 rotary axes
Samples of Fixture expertise
Two wheeler component
 Fixture Type: Mechanical
 Machine: Makino A51

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 Component: Crank case Three wheeler
 Customer: LOMBARDNI
 Fixture Type: Hydraulic Fixture
 Machine: Makino A51
 Component: Power Unit Bracket - OP40
Fixture for Heavy Vehicle
1. Fixture Type: Hydraulic
Machine –Makino A51
Component: Air Charger Pipe Volvo
Customer- Continental Engine Limited
End-user: Volvo
2. Fixture: Hydraulic
Machine: Makino A81/TAL
Component: Trunnion Housing
Customer- TML Drivelines Ltd.
Component: Trunnion Bracket OP10
Customer: TML Drivelines Ltd.
Fixture for Tractor Component
1. Fixture Type: Mechanical
Machine: Makino A81
Component: Power shuttle OP 10 & OP 20
Customer: TAFE, Chennai.
2. Type: Hydraulic clamping fixture
Machine: - Doosan 4 Axis HMC
Component: - 4 wheel drive Customer:
TAFE, Chennai.

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Machine: BFW 630
Component: Rear Axl
Customer: John Deer, Pune.
Laser Calibration
Meeting the challenges of present industries with ever-tighter tolerances, and the needs of
International quality Standards, means the presentation of manufacturing machinery has never
been more significant. To assemble This demand, CNC India’s solution of Laser Calibration
by State of the Art Renishaw Laser Calibration Unit Model XL 80, XC 80 and RX 20 to
Assess and monitor the performance of both Linear & Rotary Axis of CNC Machine Tools.
Also we have Renishaw Ball bar test equipment QC 20which is used to find the machine
Geometrical Accuracies of the linear axis in the machine. It will give Axes Squareness,
Circularity, Servo mismatch of the Plains in the machine.
Mitsubishi Cutting Tools Products
Automated Core Plug Pressing Station Metal Cutting
Mitsubishi Carbide is a top universal producer and provider of cutting equipment’s
with Inventive resources and solutions for the metalworking industry. We offer total
turnkey Solutions include fixtures, tooling with standards (MITSUBISHI), special

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tailor made tooling, Interfacing with machine, cycle time establishments & cost per
comp establishing.
We have served almost all two wheeler & four wheeler manufacturers in INDIA
With our Fixtures special Tools.
The combination tooling vary from U- drills, drill cum chamfer tools, cartridge type
rough & semi finish boring bars, combination boring tools & finish boring tools with
micro bore Heads.
All our tools are dynamically balanced with in house SCHENK AVERY balancing
machine & we provide tooling’s with side locks, BT & HSK series. The battery of In
house CNC Machines with 4TH
axes rotary tables ensure the tailor made tooling
exceed the customer Expectations.
Reconditioning machines
Fixtures
Hand tools
CNC machine components
SPM
SERVICES PROFILE
Offers following services:-
 Installation and commissioning, annual maintenance contracts, up gradations.
 Reconditioning of CNC machines with Fanuc and Siemens.
 Design and manufacturing of SPM.
 Laser calibration and ball bar test of linear and rotary axis.
 Design and manufacture of conventional and hydraulic jigs and fixtures.
 Customized tooling and turnkey solutions for component machining.
 Authorized distributor for Mitsubishi carbide cutting tools.
 Factory automation for various applications like hydraulic presses, conveyors,
pick &Place and Material handling. Design, manufacture of leak testing and
industrial washing machines.

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OWNERSHIP PATTERN
CNC India TOOLS & SERVICES PVT LTD, conceptualized in the year 1992 by a team of 4
technocrats and CNC India Company is incorporated on 10 February2004. It is classified as
Non-governments Company and is registered at register of companies Bangalore.
It is authorized capital is Rs,35000000 and its paid up capital is Rs, 2212140 .CNC India
TOOLS & SERVICES private Limited’s Annual General Meeting ( AGM ) was last held on
30 September 2016 and as per records from Ministry of Corporate Affairs ( MCA ) .
Company category: Company limited by shares
Company sub category: Non-Govt Company
Listing status : Unlisted
Class of company : Private
DIRECTORS

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NAME DESIGNATION DATE OF APPOINTMENT
Jayaraman Nagaraj an Whole time director 10 February 2004
Jayaramanvijaykumar Whole time director 10 February 2004
Jayathirthabadrinath Whole time director 10 February 2004
ORGANISATION STRUCTURE
MOJOR CLIENTS
CORPORATE AND MNC
• EataPlats Fabrics.
• GK Technologies.
• Greaves Cotton Ltd., - Pune
• Hero MotoCorp Ltd.
• Honda Motorcycle & Scooter India PVT Ltd
• India Yamaha Motor Pvt. Ltd.
• JayaswalNeco Industries Ltd.

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• JCB India Limited.
• John Deere India Private Limited.
• JSW Steel Limited.
• Kalyani Forging Pune.
• Kavia Engineering Private Limited.
• Kay Jay Forgings Pvt. Ltd.-Ludhiana.
• Kems Auto Components Ltd.
• Kirloskar Electric Company Ltd
• Kirloskar Toyota Textile Machinery Pvt Ltd.
.
GOVERNMENT:
• Advance Naval System Program – DRDO.
• Advanced Systems Laboratory.
• Bharat Dynamics Limited.
• Bharat Earth Movers Limited.
• Bharat Electronics Limited.
• Bharat Heavy Electricals Limited (Haridwar&Tirchy).
• Brahmas Aerospace Thiruvananthapuram Ltd.
• Central Manufacturing Technology Institute.
• Defence Research Development Laboratory – DRDL.
• Gas Turbine Research Establishment.
• Hindustan Aeronautics Limited (HAL).
• Indian space research organisation (ISRO).
• Liquid Propulsion System Centre-Bangalore.
• Ordnance Factory Medak. Vikram Sarabhai Space Centre.
INFRASTRUCTURE:
CNC INDIA has a coordinated shop floor with region of around sixteen thousand soft and
Place of outright Cutting edge gear and hardware required for retrofitting and installation

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Fabricating. Furthermore they Have two thousand soft of territory devoted to deal with the
Administration, deals and advertising exercises. Bolstered by qualified group refreshed with
the most recent advances, they resolve to accomplish and keep up client certainty with their
guaranteed deliverables.
Aside from the above, CNC amass has vital skills and experience to fabricate and to deal with
Finish Turnkey ventures.
SHOP FLOOR 1

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SHOP FLOOR 2
QUALITY CONTROL OF MACHINERY
This machine is control the quality of overall company product quality.

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DESIGN AND DEVELOPMENT
ACHIEVEMENTS
CNC India has completed major projects involving conceptualized, design, manufacturing
and commissioning of products at customer sites. The ability to integrate our various verticals
to provide appropriate solutions has helped us acquire many turnkey projects at various
corporate stops.
FUTURE GROWTH AND PROSPECTS
 To achieve 100 crore mission.
 To provide improved cost efficient solutions.
 To accomplish excellence in giving whole solutions for the company instrument
users.
 To come up with excel and worthy Corporate social Responsible actives.
CHAPTER -3

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MCKENSY’S 7S FRAMEWORK
Mckensey 7s framework
McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key
internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to
identify if they are effectively aligned and allow organization to achieve its objectives.
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert
Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since
the introduction, the model has been widely used by academics and practitioners and remains
one of the most popular strategic planning tools. It sought to present an emphasis on human
resources (Soft S), rather than the traditional mass production tangibles of capital,
infrastructure and equipment, as a key to higher organizational performance. The goal of the
model was to show how 7 elements of the company: Structure, Strategy, Skills, Staff, Style,
Systems, and Shared values, can be aligned together to achieve effectiveness in a company.
The key point of the model is that all the seven areas are interconnected and a change in one
area requires change in the rest of a firm for it to function effectively.
Below you can find the McKinsey model, which represents the connections between seven
areas and divides them into ‘Soft Ss’ and ‘Hard Ss. The shape of the model emphasizes
interconnectedness of the elements.

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The model can be applied to many situations and is a valuable tool when organizational
design is at question. The most common uses of the framework are:
• To facilitate organizational change.
• To help implement new strategy.
• To identify how each area may change in a future.
• To facilitate the merger of organizations
In McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’
areas. Strategy, structure and systems are hard elements that are much easier to identify
and manage when compared to soft elements. On the other hand, soft areas, although
harder to manage, are the foundation of the organization and are more likely to create the
sustained competitive advantage.
1. Strategy:
Strategy is a plan developed by a firm to achieve sustained competitive advantage and
successfully compete in the market. What does a well-aligned strategy mean in 7s
McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is
long-term, helps to achieve competitive advantage and is reinforced by strong vision,
mission and values. But it’s hard to tell if such strategy is well-aligned with other
elements when analyzed alone. So the key in 7s model is not to look at your company to
find the great strategy, structure, systems and etc. but to look if its aligned with other
elements. For example, short-term strategy is usually a poor choice for a company but if
it’s aligned with other 6 elements, then it may provide strong results.
The CNC PVT LTD is formulating appropriate strategies in order to meet the challenge
And to develop and strengthen dairy cooperative movements on the following thrust
namely:
• Procurement, processing and marketing.
• Quality assurance program Reasonable pricing.
Pricing decision are subjects to an incredibly complete array of environmental and
competitive forces. This pricing structure changes over times as products move through

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their life cycle. The organization adjusts products prices to reflect changes in costs and
demand and to account for variations in buyers and situations.
2. Structure:
Represents the way business divisions and units are organized and includes the information
of who is accountable whom. In other words, structure is the organizational chart of the firm.
It is also one of the most visible and easy to change elements of the framework.
It ensures maximum use of the principles of specialization. Since the workers have
performing a limited numbers of functions, their efficiency would be very high. The CNC
PVT Ltd has marketing, administration, finance department.
The main functions are:
• To develop official work procedure and process in order to increase the profit
margin.
• To provides an ample opportunities for helping the employee to maintain high
level of work.
• To schedule work property so that all jobs are completed on time.
• To maintain responsible quality and quantity standards.
• To provides satisfactory physical or mental environment for employees.
Procurement and inputs Department
The procurement and inputs department is concerned with collection of basic raw materials
and requirement.
To follow up daily procure schedule as per the plan. To
maintain good relationship with customers and clients.
Finance Department
Finance Department of the union is well staffed with resource personnel. The department
takes care of all financial transaction of the union. The department is fully computerized.
Marketing Department
Marketing department plays a vital role in determining the future abilities of the company. Its
main objectives is to distribute goods from producers to the customers. It distributes products to

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consumers and also provides consumers education through ad campaigns and participating in
various exhibition.
• To plan marketing programs.
• To analyze marketing opportunities.
• To develop marketing strategies.
• To connect the consumer with the products
3. System:
Systems are the processes and procedures of the company, which reveal business’ daily
activities and how decisions are made? Systems are the area of the firm that determines how
business is done and it should be the main focus for managers during organizational change.
The production department is responsible for procurement of raw material. It consists of two
wings called purchase and stores. Purchase wings is processing of raw material and stores
wings is receiving and issuing the same to the users departments. Indent is raised by the user
department and is registered at stores after verifying the availability of stocks at stores. After
registration of indent if stock is available, it is issued to the user department and the indent is
cancelled.
4. Skills:
Skill are the abilities that firm’s employees perform very well. They also include capabilities
and competences. During organizational change, the question often arises of what skills the
company will really need to reinforce its new strategy or new structure. To import required
skill, The CNC PVT Ltd conducting training program i.e., both ON THE JOB training and
OFF THE JOB training which increases the knowledge and skill of an employee for doing
the job.
On-the-job Training Method:
Under this method, the individual is placed on a regular job and learns under the supervision
of guidance of the instructor.
The CNC PVT Ltd provider’s On-the-job training according to the need. For this method of
training, they are inviting experts from various training institution.

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5.Staff:
Staff element is concerned with what type and how many employees in an organization will
need and how they will be recruited, trained, motivated and rewarded.
Staff refers to the organization human resources. Management is concerned with the
accomplished of objectives by utilizing physical and financial resources through the efforts of
manpower.
6.Style:
Style represents the way the company is managed by top-level managers, how they interact,
what actions do they take and their symbolic value. In other words, it is the management style
of company’s leaders.
• Fixing the targets to the employee and the workers who are working in the
organization.
• Reducing or increasing the price of the products
• Policy issues
7.Shared Values:
Share values are at the core of McKinsey 7s model. They are the norms and standards that
guide employee behavior and company actions and thus, are the foundation of every
organization.
CNC passion for excellence drives us to work with integrity & commitment, by adopting
customer focus, teamwork & world class work standards. It thrive on aggressive business
leaders in the focused business verticals.
CHAPTER-4
SWOT ANALYSIS
SWOT ANALYSIS:
SWOT Analysis refers to the analysis of strength, weakness, opportunity, and threat. Which is
been possessed and faced by an organization.

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A SWOT Analysis measures the business unit, a proposition or an idea. A SWOT analysis is
a subjective assessment in which the data is been organized by the SWOT format in which it
is been shown in a logical order which helps in order to understand. Present, discussions and
decision making.
STRENGTHS
 Fully equipped shop floors.
 The company has a good brand image among the consumers.
 The company has the direct marketing network with well established
distribution system.
 Dedicated marketing force with effective promotion strategy.
 The industry has unique products.
 We see high industry growth rates.
 Qualified, dedicated & experienced employees.
 Turnkey projects from concept to realization.
 More than two decade of experience and expertise.
WEAKNESS
 Advertisements are done through print media only.
 Market share of the products are shrinkage due to competitors.

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 Potential market is in north India but all the manufacturing units are in
south India.
 Cost and income structure could be critical.
 Delay in delivering the goods at the right time.
 The structure of business units could be critical.
OPPORTUNITIES:
 The industry faces a recovery.
 CNC India Company is in growth stage so CNC industry has a greater
opportunity to grow.
 Collaboration can be made with foreign giants.
 Global markets are available.
 Fresh commodities and services.
 New trends agreements between countries are possible.
 Potential to add power in the existing facility.
THREATS:
 Sudden fluctuations in price, causing fluctuations in raw material price
makes difficult in pricing strategy.
 In the changing world of technology, sometimes a better substitutes over
CNC may emerge.
 Growing competition and lower profitability.
 Automation is an unknown factors for this industry.
 Business is horizontal to the amend in rule policies, any substance
changes in the task May harmfully blow our financials.

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CHAPTER-5
ANALYSIS OF FINANCIAL STATEMENT
FINANCIAL STATEMENT ANALYSIS
PROFIT AND LOSS ACCOUNT AS ON 31st Mar 2017 to 31st Mar 2019(in Rs,)
Particulars 31st
MARCH
2017
31st
MARCH
2018
31st
MARCH
2019
1.REVENUE
Revenue from operations
Less: Excise duty
Add: Other Income
2.EXPENSES
Rs
262,057,907
17,830,718
Rs
347,480,565
24,169,510
Rs
352,470,052
28,808,090
244,227,189
1,382,772
323,311,055
971,176
323,661,962
757,307
245,609,961 324,282,231 324,419,269

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Cost of raw materials consumed
Changes in inventories
Employee benefits expenses
Finance costs
Depreciation
Other expenses
173,80,664
(12,280,303)
36,541,088
4,638,920
3,113,043
31,330,170
213,279,735
10,210,756
43,724,371
5,918,205
3,810,789
35,007,279
224,489,219
(6,355,126)
53,813,621
7,519,385
4,449,784
35,940,603
Profit before Taxation
237,143,583 311,951,135 319,857,485
8,466,378 12,331,096 4,561,783
Tax Expenses :
Current tax 3,365,610 5,050,116 1,950,827
Income tax-earlier years 33,210 - -
Deferred tax
Profit of the year
Earnings per equity share
(464,548) (651,227) (864,927)
5,532,106 7,932,207 3,475,883
26.43 36.30 15.71

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BALANCE SHEET
Particulars 31st
March 2017 31st
March 2018 31st
March 2019
A.EQUITY AND LIABILITIES
1. Shareholders funds
a) Share capital
b) Reserves and Surplus
c) Share Application money
Pending allotment
2. Non-current liabilities
a) Long-term borrowings
b) Long-term provisions
3.Current liabilities
a) Short-term borrowings
b) Trade payables
c) Other current liabilities
d) Short-term provisions
Rs
2,165,700
31,284,503
743,000
8,047,920
3,443,667
20,419,926
50,871,102
11,858,022
3,365,610
Rs
2,212,140
39,913,311
-
8,119,546
4,193,742
21,245,789
58,428,280
11,185,526
5,050,115
Rs
2,212,140
43,389,194
-
12,918,704
5,495,960
30,811,075
44,840,138
11,450,841
1,950,827
TOTAL 132,199,450 150,348,,450 153,068,880

Page 29
B. ASSETS
1. Non-current assets
a) Fixed assets
•Tangible assets
b) Non-current investments
c) Other non-current assets
d) Deferred tax assets
2. Current assets
10,113,546
60,062
6,520,647
1,554,680
8,988,100
9,516,866
2,205,907
-
13,117,213
-
10,704,086
3,070,834
a) Inventories
b) Trade receivables
c) Cash and cash equivalents
d) Short-term loans and advances
34,688,344
56,892,704
7,114,523
15,254,945
24,477,588
80,263,275
10,841,296
14,055,398
30,832,714
75,559,738
2,513,953
17,270,343
TOTAL 132,199,450 150,348,450 153,068,880
COMPARATIVE BALANCE SHEET AS ON 31st MARCH 2018 AND 2019
Particulars
2018
Amount
(Rs.)
2019
Amount
(Rs.)
Absolute change
Amount (Rs.)
%
ASSETS
Inventories
Trade receivables 30,832,714 24,477,588 6,355,126 25.96

Page 30
Cash and Cash equivalents 75,559,738 80,263,275 -4,703,537 -5.86
Short-term loans and advances
2,513,953 10,841,296 -8,327,343 -76.81
Non-current assets 17,270,343 14,055,398 3,214,945 22.87
Tangible assets
Non-current investments
13,117,213 8,988,100 4,129,113 45.93
- 9,516,866 -9,516,866 0
Deferred tax assets 3,070,834 - 3,070,834
Total Assets 153,068,880 150,348,450 2,720,430 1.80
LIABILITIES
Current Liabilities
Short-term borrowings 30,811,075 21,245,789 9,565,286 45.02
Trade payables 44,840,138 58,428,280 -13,588,142 -23.25
Other current liabilities 11,450,841 11,185,526 265,315 2.3
Short-term provision 1,950,827 5,050,115 -3,099,288 -61.37

Page 31
Non-current liabilities
Long-term borrowings 12,918,704 8,119,546 4,799,158 59.10
Long-term provisions 5,495,960 4,193,742 1,302,218 31.05
Shareholders’ funds
Share capital 2,212,140 2,212,140 - 0
Reserves and Surplus 43,389,194 39,913,311 3,475,883 8.70
Total Liabilities and
Equity 153,068,880 150,348,450 2,720,430 1.80
Interpretation
From the above table shows the comparative balance sheet is in the year 2018 is 153,068,880,
in the year 2019 is 150,348,450 and the percentage is 1.80%.
COMMON SIZE BALANCE SHEET AS ON 31st MARCH 2018 AND 2019
Particulars
2018
Amount
(Rs.)
%
2019
Amount
(Rs.)
%
ASSETS
Current assets
Inventories 30,832,714 20.14% 24,477,588 16.28%

Page 32
Trade receivables 75,559,738 49.36% 80,263,275 53.38%
Cash and Cash equivalents 2,513,953 1.64% 10,841,296 7.21%
Short-term loans and advances 17,270,343 11.28% 14,055,398 9.34%
Non-current assets
Tangible assets 13,117,213 8.56% 8,988,100 5.97%
Non-current investments - 9,516,866 6.32%
Other non-current assets 10,704,086 69.92% 2,205,907 1.46%
Deferred tax assets 3,070,834 2% -
Total Assets 153,068,880 100% 150,348,450 100%
LIABILITIES
Current Liabilities
Short-term borrowings 30,811,075 20.12% 21,245,789 14.13%
Trade payables 44,840,138 29.29% 58,428,280 38.86%
Other current liabilities 11,450,841 7.48% 11,185,526 7.43%
Short-term provision 1,950,827 1.27% 5,050,115 3.35%
Non-current liabilities
Long-term borrowings 12,918,704 8.43% 8,119,546 5.40%
Long-term provisions 5,495,960 3.59% 4,193,742 2.78%
EQUITY
Shareholders’ funds
Share capital 2,212,140 1.44% 2,212,140 1.47%
Reserves and Surplus 43,389,194 28.34% 39,913,311 26.54%
Total Liabilities and Equity 153,068,880 100% 150,348,450 100%

Page 33
Interpretation
From the above table shows the common size balance sheet of the company in the year 2018
is 153,068,880(100%) and in the year 2019 is 150,348,450(100%).
RATIOS
1.Current Ratio = Current assets / current liabilities
THE TABLE SHOWING CURRENT RATIO
Year 2016-17 2017-18 2018-19
Current assets 1,13,95,0516 129,637,938 126,176,748
Current liabilities 86514660 95,909,710 89,052,881
Current Ratio 1.31 1.35 1.42
ANALYSIS: The above table showing Current ratio was 1.31% in the year 2016-17, 1.35%
in the year 2017-18 and 1.42% in the year 2018-19.
Graph no 1

Page 34
Chart Title
1.44
1.42
1.4
1.38
1.36
1.34
1.32
1.3
1.28
1.26
1.24
2014 2015 2016
2018
2017
2016
Interpretation
From the above table it is that the current ratio of the company is not table and is
varied from year to year .It is 1.31 in the year 2016-17,1.35 in the year 2017-18
and 1.42 in the year 2018-19. The current ratio is increased from every year.
2.Quick Ratio= Quick assets / Current liabilities
THE TABLE SHOWING QUICK RATIO
Year 2016-17 2017-18 2018-19
Quick assets 79262172 105,159,969 95,334,034
Current liabilities 86514660 95,909,710 89,052,881
Quick ratio 0.91 1.09 1.07
ANALYSIS

Page 35
The above table showing the quick ratio is 0.91 on 2016-17, and the 2017-18 is
1.09 and 1.07 in the 2018-19.
Interpretation
From the above table showing the quick ratio is 0.91% of the year 2016-17,
1.09% of the year 2017-18 and the year 2018-19 is 1.07%. The quick ratio is
vary from the year to year.
3. Net worth Ratio = Net worth / Total assets
TABLE SHOWING NET WORTH RATIO
Year 2016-17 2017-18 2018-19
Net worth 33450203 42,125,451 45,601,334
Total assets 132199450 150,348,450 153,068,880
Net worth ratio 0.25 0.28 0.29
ANALYSIS
The above table showing the net worth ratio is 0.25 in the year 2016-17, 0.28 in
the year 2017-18 and 0.29% in the year 2018-19.
2018
2017
2016
1.15
1.1
1.05
1
0.95
0.9
0.85
0.8
Chart Title

Page 36
NET WORTH RATIO
0.3
0.29
0.28
0.27
0.26
0.25
0.24
0.23
2016-17 2017-18 2018-19
Interpretation
From the above graph shows the net worth ratio is increased from the every year
.In the 2016-17 the net worth ratio is 0.25%, in 2017-18 the ratio is 0.28 and
0.29% in the year 2018-19.
4. Solvency Ratio=total assets / Total liabilities
THE TABLE SHOWING SOLVENCY RATIO
Year 2016-17 2017-18 2018-19
Total assets 120,707,863 148,142,543 142,364,794
Total liabilities 132,199,450 150,348,450 153,068,880
Solvency ratio 0.91 0.98 0.93
ANALYSIS
The above table showing the solvency ratio is 0.91 in the year 2016-17, 0.98%
in the year 2017-18 and 0.93 in the year 2018-19.

Page 37
SOLVENCY RATIO
1
0.98
0.96
0.94
0.92
0.9
0.88
0.86
2014 2015 2016
2017
2018
2016
Interpretation
From the graph shows solvency ratio in the year 2016 is 0.91%, in the year 2017
is 0.98% and in the year 2018 is 0.93.The ratio is increased compared to 2016 to
2017 but in the year 2018 the ratio is decreased.
5. Fixed assets to net worth ratio = Fixed assets / Net worth
THE TABLE SHOWING FIXED ASSETS TO NET WORTH RATIO
Year 2016-17 2017-18 2018-19
Fixed assets 10,113,546 8,988,100 13,117,213
Net worth 33,450,203 42,125,451 45,601,334
Fixed assets to net
worth ratio
0.30% 0.21% 0.28
ANALYSIS
The above table shows the fixed assets is 0.30% in the year 2016-17, 0.21% in
the year 2017-18 and 0.28% is in the year 2018-19.

Page 38
Chart Title
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2014 2015 2016
INTERPRETATION
From the above graph shows the Fixed assets ratio is 0.30% in the year 2016-17
,0.21% in the year 2017-18 and 0.28% in the year 2018-19. The ratio is
decreased In the year 2017-18 and it will be increased in 2018-19.
5.Return on total resource ratio
THE TABLE SHOWING RETURN ON TOTAL RESOURCE RATIO
Year 2016-17 2017-18 2018-19
Net profit 55,33,106 7,932,207 3,475,883
Total assets 153,068,880*100 150,348,450*100 153,068,880*100
Return on total
resource ratio
3.61 5.27 2.27

Page 39
ANALYSIS
In the above table shows Return on total resource ratio is 3.61% in the year
2016-17 , 5.27 % in the year 2017-18 and 2.27 in the year 2018-19.
INTERPRETATION
From the graph states the return on total resource ratio is 3.61% of ratio in the
year 2016-17, in the year 2017-18 the ratio is5.27% and 2.27% of ratio in the
year 2018-19.Compare to 2017-18 the return on total resource ration is
decreased in the year 2018-19.
7.Gross profit ratio
THE TABLE SHOWING GROSS PROFIT RATIO
Year 2016-17 2017-18 2018-19
Gross profit 84,66,378 12,331,096 4,5611,783
Net sales 24,42,27,189 323,311,055*100 323,661,962*100
Gross profit ratio 0.03 3.81 1.40
ANALYSIS
2018
2017
2016
6
5
4
3
2
1
0
Chart Title

Page 40
The above table showing the gross profit ratio of the company in the year 2016-
17 the ratio is 0.03% , 3.81% in the year 2017-18 and 1.40% in the year 2018-
19.
Interpretation
From the above tables states the Gross profit ratio of the company is increased in
the year 2017-18 and decreased in the year 2018-19. The Ratio in the year 2016-17
is 0.03%, in 2017-18 the ratio is 3.81% and 1.40% in the year 2018-19.
7. Total assets turnover ratio = Sales / Total assets
THE TABLE SHOWING TOTAL ASSETS TURNOVER RATIO
Year 2016-17 2017-18 2018-19
Sales 244,277,189 323,311,055 323,661,962
Total assets 132,199,450 150,348,450 153,068,880
Total assets ratio 1.84 2.15, 2.11
2018
2017
2016
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Chart Title

Page 41
ANALYSIS
In the above table showing the total assets turnover ratio in the year 2016-
17 is 1.84%, in the year 2017-18 is 2.15% and 2.11% in the year 2018-19.
Chart Title
2.2
2.15
2.1
2.05
2
1.95
1.9
1.85
1.8
1.75
1.7
1.65
2014 2015 2016
2017
2018
2016
Interpretation
From the graph shows the total assets turnover ratio of the company was in the
year 2016-17 is 1.84%, in the year 2017-18 is 2.15% and 2.11% in the year
2018-19.The total assets turnover ratio is decreased in the year 2018-19.
8. Fixed assets Ratio= Fixed assets / Sales*100
THE TABLE SHOWINH FIXED ASSETS RATIO
Year 2016-17 2017-18 2018-19
Fixed assets 10,113,546 8,988,100 13,177,213
Sales 244,227,189*100 323,311,055*100 323,661,962*100
Fixed assets ratio 4.14 2.78 4.05

Page 42
ANALYSIS
The above table shows the fixed assets ratio of the company in the year 2016-17
is 4.14%, 2.78% in the year 2017-18 and in 2018-19 the ratio is 4.05%.
Interpretation
From the above graph shows the fixed assets ratio of the company was in the
year 2016-17 is 4.14%, and the year 2017-18 is 2.78% and 4.05% in the year
2018-19.Fixed assets ratio is increased in the year 2017 to 2018.
9. Sales to inventory ratio=Inventory / Sales*100
THE TABLE SHOWING SALES TO INVENTORY RATIO
Year 2016-17 2017-18 2018-19
Inventory 79,262,172 24,477,588 30,832,714
Sales 244,227,189*100 323,311,055*100 323,661,962*100
Sales to inventory
Ratio
32.45 7.5 9.5
ANALYSIS
2018
2017
2016
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
FIXED ASSETS RATIO

Page 43
The above table shows the sales to inventory ratio of the company was 32.45%
in the year 2016-17, in the year 2017-18 is 7.5% and the 2018-19 is 9.5%.
Interpretation
From the above graph shows the company sales to inventory ratio is 32.45% in
the year 2016, 7.5% in the year 2017 and 9.5% in the year 2018 .The ratio is
decreased in the year 2017 in compare to in the year 2018.
2018
2017
2016
35
30
25
20
15
10
5
0
SALES TO INVENTORYRATIO

Page 44
CHAPTER-6
FINDINGS, SUGGESIONS, CONCLUSION
FINDINGS
 International standard that is being followed as far as they quality of the
products is concerned.
 Has well trained employees to operate the machines.
 Provides excellent services to its employees like canteen, medical
facilities, transportation, etc.
 Safety is given main preference.
 Discipline is being followed.
 Pollution level is low.
 Everyday feedback are taken from employees.
 Excellent training and development system is followed.
 No discrimination for race, religion, decision making & actions.
 The company is adopting employee performance appraisal system.

Page 45
SUGGESTIONS
 Company should build customer loyalty especially private customer.
 Participation in inter-state and international trade fairs will help in promoting the
product and bringing the brand identity internationally.
 The company has to improve the activities of the HR department by providing more
benefits, performance appraisal and motivational activities to its employees.
 The relationship of the employee and the employer can be improved by conducting
friendly meeting between employee and employer.
 Improve security measure by using electronic devices at all gates.
 The company should give opportunities to new enthusiastic and creative employees to
contribute for the growth of the company.
 Advertisement needed improvement (currently advertisements is done through print
media only, need to be done in visual media also).
CONCLUSION
In this industry, all department were interlinking with each department. So, company can run
more efficiently and effectively. The working of the management and the entire department,
we can say that it’s successfully in its field. The machines of CNC has good position in
market because of its quality and latest technology. Not only in India but in the machine are

Page 46
well known worldwide. It is found that company has a good working environment and
cordial relationship is maintained between all departments for the smooth functioning and
achievement of the organization goal of maintain the company’s brand image among the
customers.

Page 47
CHAPTER-7
LERNING EXPERIENCE
Learning Experience
CNC PVT LTD is small industry in Bangalore. The company was established on 1992 for
manufacturing of machine and supply the products to government and private company like
Maruthi Suzuki India ltd. There above 150 employees are working including top
management.
The administration of the company gave me to visit and work in all the departments and they
give good support to successfully complete the project.
I had very good experience, how corporate works and I learnt so many things while I was
working in a company, like the environment of the company of the company, human
relationship and also how corporate works. The differences between work life and college,
these two things are entirely different.
This is the good opportunity to give me enough knowledge to work in the corporate and it
helped me to learn the process and methods of interaction is necessary in order to be getting
the success.

BIBLIOGRAPHY
BOOK REFERRED
 SHASHI K GUPTTA : “ Financial management”
 Strategic management
 Organizational Behaviour
KALYANI PUBLISHERS
13 REVISED EDITION
 COMAPANY BOOK
WEBSITE REFERRED
 www.cnc-india.com

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