A SUMMER TARINING REPORT ON ROOT MULTICLEAN LID,

COIMBATORE.

Submitted in partial fulfillment of the requirement for the award of the degree of Master
of Business Administration of Madurai Kamaraj University

by

R.LOGESHWARI(Reg. No: 2018MBA28)

Under the guidance of

Dr .L. MEENA

DEPARTMENT OF MANAGEMENT STUDIES

FATIMA COLLEGE (AUTONOMOUS)
MADURAI - 625 018
JUNE - 2019

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 FATIMA COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES

MADURAI- 625018.

BONAFIDE CERTIFICATE

This is to certify that the Summer Training Report on “ROOT INDUSTRY INIDA LIMITED”,
Coimbatore is a bonafide record of work done by R.Logeshwari (Reg No.2018MBA28),
submitted in partial fulfillment of the requirement for the award of the degree of Master of
Business Administration of Madurai Kamaraj University.

Faculty Guide Head of the Department

Dr.L.MEENA Dr.P.SHYAMALA

Director (Professional course)

Mr. RAJU

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FATIMA COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES

MADURAI- 625018.

R.LOGESHWARI

(Reg.No:2018MBA28)

DECLARATION

I hereby declare that the summer training report on “ROOT

INDUSTRY INDIA LIMITED” submitted for the award of the degree of Master of Business
Administration is our original work and that no part of this report has been submitted fully or
partly for any other recognition earlier.

(R.LOGESHWARI)

Signature of the student

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 COMPANY CERTIFICATE

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 ACKNOWLEDGEMENT

First and foremost, I would like to thank God almighty whose blessings made us to complete the
training successfully.

It is a great pleasure to acknowledge my sincere thanks to Dr. Sr. G. Celine Sahaya Mary,
Principal, Fatima College, Madurai - 625018.

I also thank Dr.S. RAJU – Director (Professional course)

I also thank Dr.P.SHYAMALA, M.B.A, Ph.D., PGDCA, SET, NET, Head of the Department of
Management Studies for their assistance and guidance.

I also wish to thank my project guide Dr. L. MEENA, M.B.A., M.Phil., Ph.D., NET, SET, for
her valuable support throughout the period.

We express our special thanks to Root Industry India Limited for giving me permission to carry
out this summer training project at their esteemed organization.

I wish to express my gratitude to all the staff members in the Department of Management Studies
for their encouragement for completing this training.

Finally, I thank my teachers, respondents, friends and parents who helped us in completing my
training successfully.

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 CONTENT

S.NO TITLE PAGE NO

1. Industry Profile 9

2. Company Profile 10

2.1 Roots Family 11

2.2 Milestones 12

2.3 Organization Structure 13

2.4 History 14

3. PRODUCTION & SERVICE DEPARTMENT

3.1 Function of the Department 16

3.2 Purchase Department 16

3.3 Production Department 17

4. HUMAN RESOURCE DEPARTMENT

4.1 HR Polices 32

4.2 Duties& Responsibility 34

4.3 Recruitment, Selection& Promotion, Training 35

4.4 Performance Appraisal 36

4.5 Benefits For Employees 36

5. MARKETING DEPARTMENT

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 5.1 Function of the Department 37

5.2 Duties of Marketing Manager 38

5.3 Market Segmentation 39

5.4 Competitors 39

5.5 Dispatch & Export 40

6 FINANCE DEPARTMENT

6.1 About Finance Department 42

6.2 Function of the Department 43

6.3 Financial Risk 44

6.4 Techniques Used 46

7 MANAGEMENT INFORMATION SYSTEM

7.1 Department Structure 49

7.2 Function of the Department 49

7.3 Software Used 50

7.4 Skills Required For Manager & Employees 51

8 Conclusion 52

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Slogan:

“QUALITY IS OUR WAY OF LIFE”

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 INDUSTRY PROFILE

Roots Industries India Ltd. is a leading manufacturer of HORNS in India and the largest Horn
Manufacturing Company in the world. Headquartered in Coimbatore - India, ROOTS has been a
dominant player in the manufacture of Horns and other products like CASTINGS
and Industrial CLEANING MACHINES. Since its establishment in 1 970.
With a strong innovative base and commitment to Quality, Roots
Industries India Limited has occupied a key position in both international and
domestic market as suppliers to leading OEMs (original equipment manufacturer)
and after market. Similar to products, Roots has leading edge over competitors on
strong quality system base. Now, RIL is the first Indian Company and first horn
manufacturing company in the world to get ISO/TS 16949 certification based on effective
implementation of QS 9000 and VDA 6.1systemrequirement earlier. RIL has entered into
technical collaboration with Robert Bosch, SA to further enhance the technical competence.
Roots' vision is to become a world-class company manufacturing world-class product,
excelling in human relation.

Roots Industries India Ltd as ISO9 001:2000firm and the parent

company manufacture electric horns currently holding 6 0%of the Indian Market
Share. They are suppliers to leading automobile manufacturers such as Hindustan
Motors, Premier Automobiles, Telco, Bajaj, Mahindra and Mahindra, Maruthi Suzuki,
Unofiat, Hyundai, Hero Honda, LML Vespa etc., are also the exclusive suppliers of the
special type horns to defence. Their export market covers above 4 0countries,
which include United States, Japan, Germany, Holland, far and Middle East, Latin American
countries and South Africa, now the Roots has expended and concentrated
on industrial cleaning machines.

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 COMPANY PROFILE

Roots Multiclean Ltd, India’s first Mechanized cleaning Equipment Manufacturer

began operations in 1992.Roots Multiclean Ltd, was going to be the country’s largest cleaning
equipment manufacturer. Company Journey started with a simple push sweeper, flipper and
today our highly sophisticated manufacturing facility produces a range of machines including
scrubbers, high-pressure washers, industrial vacuum cleaners, carpet cleaner machines, steam
cleaners, city sweeper and runway sweepers.

The company proud to enjoy unparalleled trust and confidence of thousands of customers
across segments like manufacturing, railways, defence, pharma, automobile industries and many
more. Currently Roots Multiclean Ltd offers its solutions in 34 countries.

One of the biggest strength of Roots Multiclean Ltd is the team, our all India network of
70 Business development executives, over 170 service engineers cover 29 state of India and
continuously strive to exceed customer expectations in ensuring excellent sales and service
support. Our service team is trained for “Fix it Fine – The first Time” and ensuring maintenance
costs at the lowest.

Roots Multiclean Ltd takes pride in receiving the excellence award for this achievement. A
further root Multiclean is the proud recipient of Indian government’s EEPC award for 6times in a
row since 2011.

Roots Multiclean Ltd touches lives of people across the world & fulfills the dream of
billons of people for a cleaner environment.

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2.1 Roots Family:

Roots groups promoted by Mr. K. Ramasamy. A Master Degree holder in Automobile

Engineering from Lincoln Technical Institute, USA. Has its corporate office at Coimbatore in
south India extending the philosophy of quality to all spheres of its activity in the market leader
in India for flagship product automobile horns.

Roots Single minded pursuit of enhancing the quality of life has led to many other
diversifications. Roots today is a multi faced corporate entity with interest in automobile
accessories cleaning equipment. casting, precision tools, hi-tech engineering services, healthcare
&education.

 Roots Industries limited

 Roots Auto Products Private Limited
 Roots Multiclean Limited
 Roots Caste Private Limited
 Roots Precision Products
 Roots Digital Engineering Services Private Limited
 Roots Brake System Private Limited
 Roots Polycraft
 RK Nature Care Hospital
 Satchidananda Jothi Nikethan Matric Higher Sec School
 Roots Metrology Laboratory
 Roots industries Malaysia Sdn.Bhd

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2.2 Milestones:

 1970- Promotes American Auto Service for manufactured of electric horns

 1972-First to manufacture Servo Brakes for Light Motor Vehicles’
 1984-Roots Auto Products Private Limited was established to manufacture Air Horns Die
Casting Unit Commences commercial operations
 1988-Polycraft, a unit for plastic injection moulding was established
 1990-Roots Industries private limited takes over electric horn business
 1992-Roots Industries Private Limited obtains the National Certification.ISI mark of
quality
 1994-Production of floor cleaning equipment commences. Roots Industries Private
Limited wins American International Quality Award.
 1999-Becomes the first horn manufacture in Asia to obtain QS9000
 2000-Becomes the first horn manufacture in Asia to obtain VDA6.1 and the first in the
world to win ISO/TS 16949
 2000-The first to introduce digitally controller air horns and low frequency, low decibel
irritation free Jumbo Air Horns.
 2003-Roots Industries ltd. Horn division is accredited with ISO14001:1996
 2003-Roots Industries Ltd. upgraded its ISO/IS 16949 from 1999 version to 2002
 2004-RIL EDU commences its suppliers to Ford, North America
 2004-RIL successfully launches its Malaysian plant
 2004-The groups of company American Auto Services is accredited with ISO 9001:2000
 2005- Roots Industries ltd. Is awarded QI by Ford Motor Company
 2005- RIL Horn division upgraded its ISO14001 from 1996 version to 2004 version.

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 2.3 Organization Chart:

Executive
Chairman/Managing Director
Mr. K. Ramasamy

Roots Industries (Malaysia) Sdn.Bhd

Director Operations

B. Bharathkumar

Roots Industries Limited. Roots Multiclean Roots Polycraft,

Director Limited, Vice Roots Caste Private Chief Executive
President Limited Officer
S.Kavidasan
K.Guhan O.A
Balasubramaniam

Roots Auto Products Private Ltd Roots Precision Products Private

ltd, Chief Executive Officer
Director Operations
D.Sivaprakasam
K.Saravanasundaram

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2.4 History:

Company Chairman Mr.K. Ramasamy founded Roots Multiclean Ltd in 1992, in

collaboration with HakoWerke Gmbh, Germany. Roots Multiclean ltd becomes India’s first
advanced industrial Cleaning Equipment Manufactures.

Production began in Jan 1993 at Kovilpalayam, South of Coimbatore.”Flipper”-

India’s first indigenously manufactures Walk behind sweeper was launched. First Consignment
of 334 FFILLPERS was exported to Hako Australia.

The Launch of the iconic E430-SurubberDrier was introduced and successfully

launched in Feb 1994.

EZE CLEAN when brooms and discarded cloths were the order of the day, Indians first
ever Flat Mop was launched for Dust free Sweeping and Mopping application.

1998-25 Flippers were supplied for the maintenance of the Monumental &Iconic Taj
Mahal.

1999- Partnered with Indian Railways-supplied 250 Flippers and one hundered E430
Scrubber Dries to clean Railway Stations across India. supply of 110 Flippers &Twenty five
E430 Scrubber Dries to New Delhi Municipal Corporations for cleaning the capital city.

2003-Launch of Industrial Vacuum Cleaners to Indian Market.

2004- First Indian company to participate in Europe’s largest cleaning equipment exhibition
“Interclean”in Amsterdam. The company’s modern plant was inaugurated.

2008- won a prestigious order for supply of twenty seven CITY MASTER 1200 city sweepers.
From greater Hyderabad Municipal Corporation (GHMC) for upkeep of Hyderabad
&Secunderabad.

2009-First Indian cleaning equipment Manufacture to receive

ISO 9001-2000
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ISO 14001-2004

OHSAS 18001-2007, for management systems

Ventured into professional/commercial vacuum cleaners segment, wide range of commercial

vacuum cleaners was introduced to the Indian market.

2018-As a part of our Global expansion strategy, Roots Multiclean acquired assets and portfolio
of victory Sweepers USA. Roots Multiclean Inc. was established in USA.

Company Mission:

The mission of roots has always been to locate and to mould exceptional leaders and
private with all the sincere effort that solid basics to extend organizations solutions to customers
worldwide and there by enhance the roots competitive advantage. The company does so thought
long team and deeply committed human relations based on the key values like actively focus,
discipline, experience, innovation, integrity, introspection, professionalism, quality culture and
team work.

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 PRODUCTION AND SERVICE DEPARTMENT

3.1 Functional Departments:

 Purchase Department
 Production Department
 Human Resource Department
 Marketing Department
 Finance Department
 Management Information System

3.2 Purchase Department:

Purchase department function is to procure materials, supplies, services, and machine and
tools at the most favorable terms consistent with maintaining the desired standard of quality.
Purchasing is the most important function of materials; a substantial part of the company’s
finance is committed which affects cash flow position of the company. The head of the
department is usually as the purchase manager.

Raw Material Purchased

Raw Material purchased by the following Industries,

a) Alacrity Associates
b) Elgi Ultra Private Limited
c) Baalaji Electricals
d) Sri Lakshmi Narayana Engineering
e) Sun Tech Industrials
f) Maheshwari engineering

These are the some companies which issue raw materials to the Roots Multiclean industries. And
also there are some more companies which collect some raw materials and product the product
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like Screw, Bolt and Trumplet. After Producing those product it will again return to the roots
industries.

3.3 Production Department

Products:

 Sweeper
 Scrubbers
 Vacuum Cleaners
 High Pressure jets
 Escalator cleaners
 Carpet Cleaners
 Steam Cleaners
 Janitorial
 Detergents& Pads

Sweeper:

The Roots Multiclean product stable comprises of comprehensive cleaning solutions for a
wide variety of industrial, commercial and domestic cleaning requirement. In India, all products
are backed by a wide network of after sales service centers, Products form RMCL are backed by
critical research and design insights to suit specific Indian conditions and reflect international
styling. Company Comprehensive range of Sweepers caters to numerous industrial cleaning
applications.

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 1. Walk Behind

 Flipper+
 Roots Sweep B70
2. Ride On

 Roots Sweep RB100

 Roots Sweep RD160
 Sweep Master 980 R/RH
 Sweep Master D 1200RH
3. Truck Mounted Sweepers

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  RSB 6000
 RSR 6000
4. City Sweepers

 Macro M60

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SCRUBBERS:

The Roots Multiclean Products Stable Comprises of comprehensive range of Scrubbers’

Driers a range of industrial, commercial and domestic cleaning requirements. RMCL
Manufactured Scrubbers are backed by critical research and design insights to suit challenging
Indian conditions.

1. Mini Scrubbers

 Combi 5
 Scrubby
2. Single Disc

 Roots Scrub SD430

 Roots Scrub HD430
 R1100
3. Walk Behind
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  Roots Scrub Wizzard

 Roots Scrub Wizzard-Battery

 Roots Scrub E350

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  Roots Scrub E430
 Roots Scrub E/B 4545
 Roots Scrub BT4545
 Roots Scrub E/B 4550
 Roots Scrub B4560
 Roots Scrub E/B 6050
 Roots Scrub BT6050
 Roots Scrub E6050 C
 Roots Scrub E/B 6060
4. Ride On

 RB650/750 Standard

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  Roots Scrub RB800

 Roots Scrub RB800 SS

 Roots Scrub RB 800 C
 Roots Scrub RB 950

Vacuum Cleaners:

The Roots Multiclean Products stable comprises of comprehensive range of vacuum cleaners
including industrial, Commercial and domestic cleaning requirements. In India, all products are
backed by a wide network of after sales service centers.

1. Domestic

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  Super Vac Vacuum Cleaner
2. Back Pack

 Rocket vac Xp
 BP5
3. Commercial

 Topper 215
 Topper 515
 Topper 429T
 Topper 440
4. Industrial-Regular
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  Mistral 202
 Mistral 802
 IVC DG 30
 IVC DG 70
5. Industrial-Tecnoil

6. Truck Mounted Vacuum

 RSV 5000
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High Pressure Jets:

The Roots Multiclean Products stable comprises of comprehensive range of High

Pressure Jet Washers including Cold &Water jets for a wide variety of industrial,& Commercial
cleaning requirements.

1. 6 Series 650

2. 7 Series 767

3. Jet E 130

4. Jet E 170
5. Hydro blast 200H

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 6. Hydro blast 250 C

Carpet Cleaners:

1. Cleanserv Vu14
2. MPV31
3. Roots B70 Carpet Sweep
4. Smart care Trio
5. PFX900S

Janitorial:

Roots Multiclean Ltd offers wide range of janitorial solutions from Basic Domestic Mops, Caddy
Baskets, Sign Boards, Wringer Trolleys, Janitorial Carts, Garbage Bins& comprehensive range
of microfiber System.

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Detergents & Pads:

The Roots Multiclean products stable comprise of comprehensive cleaning solutions for a wide
variety of industrial, commercial and domestic cleaning requirements. In India, all products are
backed by a wide network of after Sales Service Centers. Products from RMCL are backed by
critical research and design insights to suit specific Indian conditions and reflect International
styling. RMCL comprehensive range of cleaning machines caters to numerous industrial
cleaning applications.

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Duties of Production Manager:

 The Production management team is responsible for coordinating the various sub
disciplines of any large theatrical presentation, as well as overseeing the stage
management team.
 The Production manager is the highest ranking person on the production staff and
answers directing to the general manager and or/artistic directors.
 The Production managers job is rather fluid, however, any may also include just about
anything an enterprising producer or director may dream up.
 The Production Managers Job is mainly supervisory, although it requires excellent
‘People Skills’ in order to smooth over disagreements that inevitably arise.

Production Process:

Laser Cutting Machine

Drilling Machine

Tapping

Power Press

AMADA (Machine)

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 Work In Process (WIP)

Sanderling Operation

Welding

Platting

Heating

Fan Dry

Assembly Inspection Packing

Quality Polices:

“Enhancing the quality of life

In more ways than one”

The Company is committed to provide world class products and service with due concern for the
environment and safety of the society.

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Quality will be achieved through the following.

1. Continuous improvement of quality

2. Technology up gradation
3. Cost Reduction
4. Total Employee involvement

The aim for quality in everything they do

1. Quality in Behavior
2. Quality in Human Resource
3. Quality in governance

Environment Policy:

With due concern towards maintain and improving the quality of life, Roots is committed
for sustainable development by minimizing pollution & concerning resource.

This will be achieved through continual improvement in environment Awareness of all

employee & associates legal compliance & objective towards environmental protection.

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 HUMAN RESOURCE DEPARTMENT

Human Resources is a term used to describe the individuals who comprise the
workforce of an organization, although it is also applied in labor economics to, for example,
business sectors or even whole nations. Human Resource is also the name of the function within
an organization charged with overall responsibility for implementing strategies and polices
relating to the management of individuals. This function title is often abbreviated to the initials
‘HR’.

Human Resource may set strategies and develop polices, standard, system, and
processes that implements these strategies in a whole range of areas. The following are typical of
wide range of organization:

 Recruitment, selection, and on boarding (resourcing)

 Organizational design and development
 Business transformation and change management
 Performance, conduct and behavior management
 Industrial and employee relations
 Human Resource(Workforce)analysis and workforce personnel data
management
 Compensation, rewards and benefits management
 Training and development(learning management)
4.1 HR Policies:

Personal Culture:

The management has been encouraging and promoting a very informal culture,”
Personal touch” , sense of belonging, enabling employees to become involved and contribute to
the success of the company. The top management also conscientiously inculcates values in the
people.

Work Environment:

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 Special and conscious efforts are directed towards housekeeping of the highest order.
Renovation and modernization of office premises and office support systems are carried out on
an ongoing basis.

Training:

Roots believe in systematic training for employees at all levels. As part of the
organizational development efforts, training programmes are being conducted in-house, for
employees at all levels. In addition, staffs are also sponsored for need based training programmes
at leading Management Development institutes.

Total Quality Management:

Customer Focus is not merely a buzzword but it has become an important factor of
every day work and has got internalized into the work environment. There is an equal emphasis
on internal customer focus leading to greater team efforts and better cross functional relationship.

Quality Circle Movements:

To ensure worker participation and team work on the shop- floor, Roots Industries
Limited has a very effective Quality Circle Movement in the organization. As on today Roots
Industries limited has 3 operating circles having 24 members and some of them have won awards
at different conventions and competitions.

Through interaction with workmen in these sessions, a process of 2- way

communications has been initiated and valuable feedback has been received on worker feelings,
perception, problem and attitudes. Simultaneously management has communicated the problems
faced by them and the plans to overcome these problems.

Good Moring Assembly:

The management aims in operator’s mental & physical fitness and it is ensured
through the GMA.

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 The operators and shift supervisor assemble before the shift beginning and do
occupation of fitness exercise, discuss about the Quality safety & production aspects of the
previous shifts and take quality/safety oath

Roots have a strong people-oriented work culture that can be seen and felt across all
its member concerns. Whether they work in group or in isolation, their efforts is well appreciated
and achievements well rewarded. They have a sense of belonging and they revel in an
environment of openness and trust. Cross-functional teams function as one seamless whole and
foster the true spirit of teamwork. Roots as a learning organization systematically train its
employees at all levels. Conducted in-house, the training programmes equip them to meet new
challenges head on. Employees are encouraged to voice their feelings, ideas and opinions. There
is a successful suggestion scheme in operation and best suggestions are rewarded.

4.2 Duties &Responsibility:

1. To see whether the standing orders are strictly followed.
2. In case of any disputes it is the duty of the Head-Corporate HRD to see that the matter is
settled amicably.
3. HR wants to play a role of Liaison Officer between the manger and worker.

4.3 Recruitment:

Employee recruitment forms a major part of an organizations’ overall resourcing strategies,

which identify and secure people needed for the organization to survive and succeed in the short
to medium-term. Recruitment activities need to be responsive to the ever-increasingly
competitive market to secure suitably qualified and capable recruits at all levels.

 Application Blank
 Paper Advertisements
 Campus interview
 Internal and external sources
 Manpower consultants

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Selection:

 Age
 Communication Skills
 Physical Stamina
 Leadership Skill
 Social & Human Relation Skills
 Formal Education
 Technical Education
 Practical/Previous Experience
 Social Status
 Suitability to the post

Promotion:

 It is based on organizational needs

 It is based on skills required
 It is based on the Manpower Requirement

Training for Employees:

 Identification of training needs

 Identification of Skills Requirement
 Analyzing present Assignment
 Analyzing available potential
 Analyzing Job Requirement

Skills Required for Manager:

 Communication Skills
 Managerial Skills
 Experience and Knowledge about the work
 Interpersonal Skills
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4.4 Performance Appraisal:

In order to improve Performance on-the- job training/Off- the-job, Performance

improvement trainings are given. They help to improve potentiality and resource, to meet future
needs of the organization also. In order to know training needs, performance appraisal is done by
reporting officer manually and analyzed. The analysis identifies the workers who need training
then the training programs are organized. After completion of training the concerned department
head observe the worker, and gives the feedback after 3 month and not less than 6 months. After
the evaluation the Head –Corporate HRD will initiate them for retaining if needed.

Performance Appraisal is done a all levels (Executives’, staff, Workers, Trainees and
Apprentices)

 Periodical Appraisal
 Reporting Officers
 Head Of Departments
 HRD Intervention
 Implementation

These are the procedures and the other types of appraisal.

4.5 Scheme:

1. Employee Higher Study(Part Time with salary )

2. Wage Salary to Semester Holiday
3. School Advance
4. Free Bus, Food, hostel
5. Free Medical Checkup 2yrs Once
6. Attendance Award
7. Long Service Allowance

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 MARKETING DEPARTMENT

Marketing is the process by which companies create customers interest

in products or services. It generates the strategy that underlies sales techniques, business
communication, and business development. It is an integrated process through which companies
build strong customer relationships and create value for their customers and for themselves.

Marketing pays a vital role in the Manufacturing Organizations. Roots Products are
marketed directly or through sales branches established in different parts of our country and in
other countries. Customer requirements are captured, documented & deployed to the concerned
functions by marketing.

Department Structure:

Chief Marketing
Officer

Marketing Manager

Assistant Manager

Associates

Assistants
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5.1 Functions:

 Procuring orders & ensuring that we have the capability to do things as committed to the
customers.
 Preparing requirements plan and forwarding to production planning and control
departments.
 Dispatching the finished goods through the mode of transport as agreed in the contract
 Follow up of the payment collection.
 Handling new methods for marketing our products.

5.2 Duties of Marketing Manager:

 The basic function of the marketing manager is to advertise the products of the
companies and make them famous in the marketing using different techniques.
 The marketing manager makes the promotion for the products in order to increase the
sale of the product in the market and define goals and supervise the juniors and monitor
the trade activities of the company.
 The marketing manager has the responsibility to enhance the sales of the areas which are
assigned to him in order to achieve the company target which are set by the top
management of the company and the marketing manager has the right to fulfill the goals
of the company.
 He has to supervise his juniors and monitors the expense of the region.

Skills Required for the Manager:

 Managerial Skills
 Communication Skills
 Interpersonal Skills
 Good Social Relations with Employees and customers
5.3 Market Segmentation:

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In Roots Industries the market is segmented as industrial and Institutional. The following shows
the market segmentation of this industry.

Industrial:

 Iron& Steel
 Cement
 Auto mobile
 Pharmaceutical
 Other Metallurgical &Mineral
 Coal Mining
 Thermal Power Stations
 Space Centers
 Agro Base

Institutional:

 Public Sector
 Government Agencies
 Civic Bodies
 Defence Installation
 Hotels
 Hospital
 Airports
 Railways station

5.4 Competitors:

The Competitors for this company are in a world level.

39
 Competitors

Local International

Man Machine-Delhi Karcher-Germany

Santoni Nilfisk Forbes-Denmark

Delstar, TPS Western Floor-Italy

Hafi-Elektra RCM-Italy

5.5 Dispatch:

Once quality is checked it packed and Send it to customer.

They use Both First in first out and Last in first out. Most they prefer first in first out. They
display part Name, Location, free location

Part Name: It contain part name

Location: It specify which location the product is kept

Free Location: If product is taken they display that location there is no product is kept. There is
space to keep product

It Send to customer in 3 ways

1. Ex- work: Customer and RMCL Company there intermediate agent. Company send
product to agent, then it sends to customer.
“Transportation cost and associated risks are no longer a burden for the company”

40
 2. FOB(free on board) until it reach to port transport cost, other expenses are company
responsibility .The Company is responsible for transporting good until its point at which
ownership is transferred to owner to buyer
3. Cost and freight
Full expense company responsibility
Export:
Roots Industries exports to more than 15countries. Roots also supplies to Ford
Motor Company, North America.
Original Equipment Manufacturer (OEM) - The Multiclean Manufactured by Roots
Multiclean Limited are employed as Original Equipment by a number of cleaning vehicle
manufactures. It has ‘Roots Multiclean USA Sdn’.
Roots Industries Exports to the following countries:
1. North America
2. Germany
3. UK
4. Trico
5. Zinsser
6. South Africa
7. Canada
8. Holland
9. Japan
10. Middle East Countries

41
 FINANCE DEPARTMENT

6.1 About Finance Department:

Finance is the science of funds management. The general areas of finance are business
finance, personal finance, and public finance. Finance includes saving money and often includes
leading money. The field of finance deals with the concepts of time, money, and risk and how
they are interrelated. It also deals with how money is spent and budgeted.

One aspect of finance is through individuals and business organizations, which deposit
money in a bank. The bank then lends the money out to other individuals or corporations for
consumption or investment, and charges interest on the loans.

Loans have become increasingly packaged for resale, meaning that an investor buys the
loan (debt) from a bank or directly from a corporation. Bonds are debt instruments sold to
investors for organizations such as companies, governments or charities. The investors can then
hold the debt and collect the interest or sell the debt on a secondary market.

Central banks, such as the Federal Reserve System banks in the United States and Bank
of England in the United Kingdom, are strong players in public finance, acting as lenders of last
resort as well as strong influences on monetary and credit conditions in the economy.

This department consists of Finance & Accounts department of Roots Group of

Companies. Account Department takes care of the day-to-day accounts and preparing monthly,
quarterly, half-yearly and annual performance details. According to the monthly appraisal, the
subsequent monthly sales, purchase, inventory control, over expenses will be reviewed. The cash
balance is controlled by the Account Department.

Regarding to Finance and Monitoring funds inflow and outflow and required funds will
be arranged from the Bank of Payment. Data collection is the main part of the finance
department to control the Cash Out- Flow.

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 Department Structure:

Finance Director

V.P Finance

Associate Head Associate Head

Finance Finance

 Associate – 1  Associate- 1
 Associate – 2  Associate- 2
 Associate - 3  Associate- 3

6.2 Functions:

 All banking action like letter of credit, money Transaction and Normal Banking
activities are controlled and functioned.
 In case of Long Term Expansion the Finance Department helps the organization in
arranging a Term Loan.
 The creditors’ payment are calculated and issued to them within the 60 days after the
material purchased.
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  The collection from the debtors are calculated and collected within the 60 days from the
date which material issued to them.
 Duties like Central Excise, sales & income Tax and Insurance are calculated and issued
to the Government at the proper time and date.
 Custody and safeguarding of Securities, Insurance policies and other valuable papers.
 Taking care of the mechanical details of new outside financing.
 Record keeping and reporting.

Role of Finance Manager:

 Finance Manager is one of the members of the top management team, and his or her role,
day-to-day, is becoming more pervasive, intensive and significant in solving the complex
funds management problems.
 The finance manager is now responsible for shaping the fortunes of the enterprise, and is
involved in the most vital decision of the allocation of capital.
 The finance manager must have a clear understanding and a strong grasp of the nature
and scope of the finance functions.
 The financial manager must realize that his action have far-reaching consequences for the
firm because they influence the size, profitability, growth, risk and survival of the firm,
and as a consequences, affect overall value of the firm.

6.3 Financial Risk & Management Policies:

The company’s financial risk management policy seeks to ensure that adequate
financial resources are available for the development of the company’s business whilst managing
its risks. The company operates within clearly defined guidelines that are approved by the Board
and the company policy is not engage in the speculative transactions.

The main area of financial risk faced by the company and the policy in respect of the
major areas of treasury activity are set out as follows

 Foreign Currency Risk

 Credit Risk
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  Liquidity & Cash Flow Risks
 Interest Rate Risk

Foreign Currency Risk:

The company is exposed to foreign currency risk as a result of its normal trading activities where
the currency denominations differ from the local currency, Ringgit Malaysia.

Credit Risk:

The Credit risk is controlled by monitoring procedures and by internal credit review where credit
risk is material.

Liquidity & Cash Flow Risks:

The company ensures that there are adequate funds to meet all their obligations in a timely and
cost effective manner.

Interest Rate Risk:

The company’s interest rate exposure arises principally from borrowings. The interest rate risk is
managed through the use of fixed and floating rate financial instruments.

Accounting Policies:

1. Basis of Accounting
2. Revenue Recognition
3. Property, plant and Equipment
4. Inventories
5. Cash and Cash Equivalents
6. Trade Receivables
7. Related Parties
8. Provisions
9. Financial Instruments

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 10. Foreign Currency Transaction and balances
11. Income Tax
12. Employee Benefits
 Short Term Benefits
 Defined Contribution Plans

Skills Required for Manager and other Members:

For Manager:

 General Administration Skills

 Interpersonal Skills
 Communication Skills
 Knowledge about the Subject
 Knowledge about the nature of work

Other Employees:

 Working and subject Knowledge

 Interpersonal Skills

6.4 Techniques Used:

1. Capital Structure
 Leverage
2. Capital Budgeting
3. Dividend Policy

Capital Structure:

In finance, capital structure refers to the way a corporation finances its Assets
through some combination of equity, debt, or hybrid securities. A firm capital structure is then
the composition or structure of its liabilities.

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Leverage:

In finance, leverage is a general term for any technique to multiply gains and losses.
Common ways to attain leverage are borrowing money, buying fixed assets and using
derivatives.

This technique is mostly used at the time of annual report preparation. Capital structure
a technique is helps in calculating the leverage values and to calculate the Earnings per Share
Amount it is used. In Roots Industries they were using this technique for those purposes. It
benefits the company to identify their Share value in the market.

Capital Budgeting:

Capital budgeting is the planning process used to determine whether a firm long
term investments such as new machinery, replacement machinery, new plants, new products, and
research developments projects are worth pursuing. It is budget for major capital, or investment,
expenditures. Many formal methods are used in capital budgeting, including the techniques such
as:

 Accounting rate of return

 Net present Value
 Profitability index
 Internal rate of return
 Modified internal rate of return
 Equivalent annuity

In Roots Industries the Capital Budgeting technique is used at the time of new project
development only. This technique helps them to identify the Payback Period, Rate of Return and
to calculate the Net Present Value this type of technique is mostly used.

Dividend Policy:

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 Dividends are payments made by a corporation to its shareholder members. It is the
portion of corporate profits paid out to stockholders. When a corporation earns a profit or
surplus, that money can be put to two uses: it can either be re-invested in the business or it can be
paid to the shareholders as a dividend. Many corporations retain a portion of their earning and
pay the remainder as a dividend.

In Roots Industries the Dividend to the Share Holders is declared according to the
Net Profit of the company. If the company earns more profits, they will issue 15%-25% as the
dividend to the shareholders. In the year 2009 the company earned Rupees 665 lakhs, so they
issued 25% as a dividend to the shareholders. If it earns less means then it will issue 5%-10% as
a dividend to the shareholders.

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 MANAGEMENT INFORMATION SYSTEM

Information Technology Department plays an important role by

computerization. The ERP package and other in house and bought out software are controlled
and monitored by this department.

7.1 Department Structure:

Information Technology

Head

Manager IT (SAP) Manager IT (RIM)

Associates Associates

Assistance Assistance

7.2 Functions:

 The Control of data in Electronic Media.

 Developing and Procuring new software to facilitate the user
 Procuring Hardware according to requirement are part of their activities
 Day-to-day backups of the details regarding Sales, Purchase &Materials
inventory.

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  Backups will be taken daily, weekly, monthly, half yearly and annually to
avoid the corruption to the software.

7.3 Software Used:

a) ERP
b) SAP-System Application Software
c) RIMS-Roots Integrated Management System

 Before using SAP software Roots Industries had used MRP9000 Software. It is mostly
used for materials only so to rephrase it SAP have introduced.
 SAP Software used in all the kind f the transactions. SAP is a German based Software
Company they developed the software and named it as SAP.
 SAP Software is used only in Roots Auto Products Industries
 RIMS Software which is developed by the Roots Industries and it is not interlinked
between
 RIMS are used in Roots Multiclean, Roots Polycraft, Roots Cast and Roots precision
Industries.

7.4 Skill Required For Manager & Other Employees:

For Manager:

 Managerial Skills
 Leadership Skills
 Communication Skills
 Domain Knowledge about the VB, NET SQL, SERVER, SGR, QGR, MM and DOT
NET.

For Employees:

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Employees in this department want to have certain skills. In this department they were using both
SAP and RIMS Software. According to that employees work also differentiated according to the
software.

Skill Required For SAP Software:

Knowledge about the MM, SGR and QGR are required for the employees who
working through SAP software. Because these three packages used to control the job order
processing and purchase order processing.

Skill Required For RIMS Software:

Knowledge about the DOT NET, SQL, SERVER and VB.NET are required for the
employees those working through RIMS Software.

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 Suggestions

 Low man power ,so labor are disappointed

 Women cannot be in senior positions and the belief that they cannot collaborate
with men to build a great work environment.
 Change mindsets through gender audits and gender training and workshops.

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 OBSERVATIONS

 A good company with excellent infrastructure and safety based activities.

 It was a good opportunity to learn fresh ideas and earn respective skills.
 The workers are very friendly to interns.

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 CONCLUSION

The implant training is an essential academic requirement for all graduate

students. The training that I have under gone has helped me in fetching practical knowledge
about overall functioning of the organization.

Roots industries India Limited is an Indian company which competes with various
international companies like RMC-USA. Thus the company plays a vital role for the
development of our country. Thus the Roots Industries wants to starts various branches and
production plant in various countries across the world. Through that it can becomes a leading
Multi Cleaner Manufacturing company and also it want to create more employment opportunities
for the coming generation.

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