SUMMER TRAINING PROJECT REPORT

ON

FOR

Submittedto in partial fulfillment for

The award of the degree of
Master of Business Administration (MBA)
(2010- 2012)
From MahamayaTechnicalUniversity, Noida.

Submitted to: DR.Bhupendra Gautam

Galgotia college of Engineering
and technology

Submitted by:Ankur Agrawal

M.B.A. III Sem.
Roll No.1009770006

GALGOTIA COLLEGE OF ENGINEERING AND TECHNOLOGY

Affiliated to M.T.U University, Noida
1, Knowledge Park-II, Greater Noida 201 306, U.P
Website: www.galgotiacollege.edu

CERTIFICATE

STUDENT DECLARATION
I hereby declare that the summer training report entitled BEARING A HEINZ
POLICY ON PLANT ACCOUNTIHG submitted by me in partial fulfillment of
the requirements for the MBA (FM/IT), is my original work and that it has not
previously formed the basis for the award of Degree.

Place:
Date:

Candidates signature

ACKNOWLEDGEMENT
Completing a task is never a one man effort. It is often the result of valuable
contributors of individuals in a direct or indirect manner ,which in shaping and
achieving an objective . Here we cannot resist the temptation of expressing our
thanks to those who have contributed greatly accomplishing this task.
I am highly thankful to Dr. BHUPENDRA GAUTAM (Galgotia college of
engineering and Technology).
I, also greatly appreciate the diligent support provided by all the faculty of
GCET,galgotia college of engineering and Technology and my friends for their
whole support and co - operation.

Ankur Agrawal

Galgotia College of engineering and technology

Department of Management
Date:
TO WHOM SO EVER IT MAY CONCERN
This is to certify that MR.ANKUR AGRAWALis a bonafide student of MBA 2nd
Year of this Institute for the session 2010-12 and he has prepared Summer
Training Project Report titled BEARING A HEINZ POLICY ON PLANT
ACCOUNTINGfor partial fulfillment of Master of Business Administration
(MBA) affiliated to Mahamaya Technical University, Noida. He has worked
under my supervision and performance during the project has been
satisfactory.
I wish her all the best for her future endeavors

Mr.Bhupendra Gautam
Head- MBA Programme

TABLE OF CONTENT
Title page------------------------------------------------------------------------------Certificate of Officer of Concern Industry ------------------------------------Declaration----------------------------------------------------------------------------Acknowledgement ------------------------------------------------------------------Certificate of Head of Institution -----------------------------------------------Table of Content----------------------------------------------------------------------Preface----------------------------------------------------------------------------------Executive Summary------------------------------------------------------------------Objective---------------------------------------------------------------------------------

TOPICS

Page no.

CHAPTER 1

The Industry ...2

Introduction of Heinz International...3
Henry John Heinz The Founder........5
Board of Directors...6
The New Heinz......7
Heinz Culture....9
Heinz Today Global Player ....10
Heinz Values..............12
Organization Chart of Aligarh Factory...13
Product range of Heinz India Pvt. Ltd.15
Research methodology

CHAPTER 2
FMCG INDUSTRY SOWT ANALYSIS........20
H.J Heinz SOWT Analysis...21
H.J Heinz P.E.S.T Analysis..23
CHAPTER 3&4

PLANT EFECIENCY FINANCE25

Introduction of PLANT ACCOUNTING..26

Objective of Plant Accounting....27
Accounting Process at Glance.28
Users of Plant Accounting Information..29
FLOW CHART.30
Planning Department.31
Problem in Planning & Control Department.32
Preparation of INTEND, PR, PO33
Purchase Order..35
Terms & Conditions for Purchase Order.36
Role of FSU....39
ERP Software Package.......40
Application Modules....40
System Analysis and Process(SAP)...41
Advantage of SAP...41
SAP as Recording Tool in The Company41
Example of SAP Entry..42
Entry Pattern of ACCOUNT in Company .43

Steps in procurement of external service.44

Chart of PAYMENT SYSTEM or PROCEDURE45
PAYMENTPROCEDURE in HEINZ INDIA Pvt. Ltd....46
Advance Payment.,48
Purchase of Material.,.49
Report for control.,..50
Consequence of Delay in Payment52
DEPRICIATION,.53
Objective & Importance of Providing Depreciation..53
Calculation of Depreciation,,.54
Method of Depreciation,..54
o Straight lineMETHOD,..54
o Written Down Value METHOD,...54
Legal Aspect of Depreciation,..55
Introduction of Finance,..56
Objective of finance,56
Function of Finance Management in H.O.57
Characteristics/Nature of Finance Management..57
FINANCIAL MANAGEMENT PROCESS,.58
His Responsibilities Like in Following Sphere of Finance Function.58
Finance Department in Payment Procedure.60
Main Function of Finance Department.60
SHORT TERM Finance Policy.61
Construction of Current Assets & Current Liabilities..62
RELATED WITH PAYMENT SYSTEM.63
Invoice...........63
Problem in Invoice for Delay in Payment64
Department related with payment system..65
MODE of PAYMENT66

CHAPTER 5
COMPUTATION OF TAX..67
Direct tax.68
Gift tax ..68
Income Tax Act(1961)..69
Excise Duty Act...70
Custom Duty Act(1962)71
Service Tax.71

CHAPTER 6
Conclusion..73

CHAPTER 7
Findings...75
Recommendations..77
Bibliography79

PREFACE
For the compulsory training required for my course i.e.; M .B .A (FINANCE). I
have selected HEINZ INDIA PRIVATE LIMITED,MANZURGARHI,
ALIGARH. Heinz international company is one of the American paradigms. H. J.
Heinz Company is a well known player in FMCG category. It stands second in the
world among food product companies next to nestle. It is certified by ISO 9000.
During my training I have been associated with different areas of finance &
accounts division of HEINZ INDIA PRIVATE LIMITED & learned about how to
bridge up gap between theoretical knowledge & practical working . Mainly I have
experienced the calculation of fund requirement, payment, manage fund . Other
efficient payment procedure I have explored many other areas of finance &
accounts division. I would like to extend my sincere thanks to the factory authority
for allowing me for this training section Head of finance & Accounts division
Rakesh Sharma for sparing there valuable time for this purpose.

EXECUTIVE SUMMARY
To increase the wealth of firm has to analysis the best use of funds. Funds are
nothing but it is finance of any firm .The first objective of any organization is
sources and application of funds put to use efficiently and effectively. Finance
department plays a significant role in plant finance. All the payment related
activities move around to the finance department, Thus its challenging to maintain
and draw implication on financial records in plant finance..
Importance of controlling plant finance:

Fund management and budgetary control

Purchase and sales account control.
Statutory and audit compliance
Wages administration
Revenue budgeting and sending it to the main corporate office
Approve the purchase
Payment of raw material / purchase material expenditure capital
expenditure / payroll.
Depreciation is a permanent, continuing and gradual shrinkage in the
value of a plant finance .with the exception of land most Plant finance
have united useful life as they are subject to depreciation. Thus,
depreciation is the distribution of total cost of plant finance over its
useful life.

OBJECTIVES
The study of the theoretical aspects is pursuing at college level. Apart from
theoretical aspect, the practical implication of the subject requires the practical
knowledge. This makes a person, prudent and practical to handle the various
implications at organization level.
It was my fortune that I got an opportunity to pursue my summer training in such a
prestigious organization.
The objective of the organization is as follows:
To study the various constitute of payment system.
To study the payment system and also disclose the various aspect of delay in
payment.
To increase the credibility of company by improving payment system.
To increase the efficiency of payment system.