Final Internship Report PDF

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A Report on Internship at Midstar Management Limited Submitted in partial fulfillment of the requirements for the award of the Degree of Bachelor of Business Administration of CHRIST (Deemed to be University) By Arikta Tulsian Reg. No. 1920264 Under the guidance of Prof. Kiran Vazirani Asst. Professor, School of Business and Management

SCHOOL OF BUSINESS AND MANAGEMENT CHRIST (Deemed to be University) BANGALORE 2021

CERTIFICATE (from Company)

CERTIFICATE This is to certify that the Internship Report, titled “An Organizational Study Undertaken at Midstar Management Limited,” submitted to CHRIST (Deemed to be University), in partial fulfillment of the requirements for the award of the Degree of Bachelor of Business Administration, is a record of original study undertaken by Arikta Tulsian, during the period 2021 – 2022 in the School of Business and Management at CHRIST (Deemed to be University), Bangalore, under my supervision and guidance. The Internship report has not formed the basis for award of any Degree / Diploma / Associate ship / Fellowship or other similar title of recognition to any other University.

Place: Bengaluru Date: 10.06.2021

Prof. Kiran Vazirani Asst. Professor, School of Business and Management

Dr Amalanathan. S Head-School of Business and Management

DECLARATION I, Arikta Tulsian, hereby declare that the Internship report, titled “An Organizational Study Undertaken at Midstar Management Limited,” submitted to CHRIST (Deemed to be University), in partial fulfilment of the requirements for the award of the Degree of Bachelor of Business Administration is a record of original and independent study undertaken by me during 2021–2022 under the supervision and guidance of Prof. Kiran Vazirani, School of Business and Management and it has not formed the basis for award of any Degree/ Diploma / Associate ship / Fellowship or other similar title of recognition to any other University.

Place: Bangaluru Date: 10.06.2021

Arikta Tulsian (1920264)

ACKNOWLEDGEMENTS I, Arikta Tulsian would like to express my profound gratitude to all those who have been instrumental in the preparation of this research Project Report. I wish to place on records, my deep gratitude to my project guide, Prof. Kiran Vazirani , for guiding me through this project with valuable and timely advice. I would like to thank Dr. (Fr). Abraham V M, Vice Chancellor, Dr. Jain Mathew, Dean and Dr. Amalanathan S, HOD, School of Business and Management for their encouragement.

Last but not the least; I would like to thank my parents and friends for their constant help and support.

Arikta Tulsian

TABLE OF CONTENTS CHAPTER

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DESCRIPTION

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INTRODUCTION 1.1 Industry Profile 1.1.1 Introduction to Agricultural Commodities Trading 1.1.2 Why Are Agricultural Commodities Important 1.1.3 Market Overview 1.1.4 Key Market Trends 1.2 Company Profile

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1.2.1 About the Company 1.2.2 Awards and Recognitions 1.2.3 Products and Services 1.3 Vision, Mission, Goals and Objectives 1.3.1 Vision 1.3.2 Mission 1.3.3 Goals 1.3.4 Objectives 1.4 Values

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ORGANIZATION STRUCTURE (HIERARCHY)

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FUNCTIONAL AREAS (DIVISIONS)

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3.1 Finance and Accounting 3.2 Documentation 3.3 HR and admin 3.4 Chartering 3.5 Operations 3.6 Legal

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3.7 Trade Finance 3.8 IT 3.9 Risk

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ANALYSIS AND INTERPRETATION

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SWOT ANALYSIS 5.1 Swot Analysis

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5.2 Competitors

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SUGGESTIONS/RECOMMENDATIONS

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CONCLUSION

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REFERENCES

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ANNEXURES

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9.1 Company Logo 9.2 Certificate of completion of internship 9.3 Great place to work event. 9.4 Weekly reports

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LIST OF TABLES Table No

Description

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Table showing current ratio of the company

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Table showing liquid ratio of the company

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Table showing cash position of the company

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Table showing proprietary ratio of the company

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Table showing solvency ratio of the company

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Table showing fixed assets to net worth ratio of the company

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Table showing return on equity of the company

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Table showing return on total resource of the company

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Table showing earnings per share of the company

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Table showing interest on loan ratio of the company

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LIST OF FIGURES Figure No

Description

Page No -

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Figure showing current ratio of the company

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Figure showing liquid ratio of the company

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3

Figure showing cash position of the company

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Figure showing proprietary ratio of the company

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Figure showing solvency ratio of the company

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Figure showing fixed assets to net worth ratio of the company

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Figure showing return on equity of the company

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Figure showing return on total resource of the company

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Figure showing earnings per share of the company

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Figure showing interest on loan ratio of the company

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CHAPTER 1: INTRODUCTION

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1.1 INDUSTRY PROFILE 1.1.1 INTRODUCTION TO AGRICULTURAL COMMODITIES TRADING Agricultural commodities are staple crops and animals produced or raised on farms or plantations. Most agricultural commodities such as grains, livestock, and dairy provide a source of food for people and animals across the globe. Some agricultural commodities have purely industrial applications. The building and furniture industries use lumber from trees, while manufacturers in several sectors use latex from the rubber tree. Wool from sheep provides the fabric for the clothing industry and lanolin for skin- and haircare products. Some agricultural commodities serve as both a source of food and an industrial ingredient. Both humans and animals consume corn, but the commodity is also an important ingredient in fuel production. Similarly, humans eat the beef of cows, while a variety of industries use beef hide, fats, and bones to create products.

1.1.2 WHY ARE AGRICULTURAL COMMODITIES IMPORTANT Virtually every living being on the planet depends on the agricultural industry in one way or another. We eat the grains, fruits, vegetables, and livestock that farmers produce; build the frames of our houses from lumber; make clothes from cotton and wool; and ride in cars with tires made from rubber. Also, over 1.3 billion people – nearly 20% of the global population – work in farming. In some regions of the world, such as South Asia and Sub-Saharan Africa, farming employs more people than any other industry. The global impact of the agricultural industry is enormous. According to the Food and Agricultural Organization of the United Nations, the economic value of the agriculture industry, in constant 2010 dollars, is more than $3 trillion. With the world population expected to climb from 7.5 billion to 11.8 billion by 2100, agricultural commodities are likely to play an even bigger role in the decades ahead.

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1.1.3 MARKET OVERVIEW Agriculture in the United Arab Emirates is projected to register a CAGR of 3.2% during the forecast period (2021-2026). As an impact of COVID-19, Agriculture in the United Arab Emirates suffered from farm labour shortage during harvesting and input supply crisis, these in turn hampered the usual production of the country. The repeated lockdowns and shutdowns of processing units affected the supply chain and limited trade movements to other countries. Moreover, lack of storage facilities led to the huge quality loss of the country's produces. As the country is renowned for luxurious resorts and tourist places, due to the worlwide lockdowns, the demand for fresh produce including cereals, fruits, and vegetables decreased rampantly during the COVID-19 pandemic. The United Arab Emirates with high per capita food consumption is the most promising agriculture market in the GCC region. The United Arab Emirates cereal production is moderate until yet, but the country is still not fully self-sustain in agriculture production. The United Arab Emirates is still dependent on imports for cereals. According to FAO, in United Arab Emirates; cereals production in 2019 was 6,708.0 metric ton which are very minimal. Similarly, fruits production accounted for 360,598.0 metric ton and vegetables production stood at 315,098 ton in 2019. With the government been giving priority to the production of fruits and vegetables, production is showing positive growth. Hydroponics is emerging is this region due to the fact that this process requires less quantity of water and no land or soil. All these factors are driving the growth of agriculture in the United Arab Emirates.

1.1.4 KEY MARKET TRENDS Increasing Production of Crops Mark The Steady Growth in Agriculture Dates are the major crop grown in The United Arab Emirates among all the crops. According to FAO, Dates lead the agricultural crop production which accounts for 323,478 metric tons in 2019. Despite various unfavorable soil & climatic factors, the production of various crops in the United Arab Emirates is increasing due to the various support from the

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government such as free cultivation, 50% less cost of crop protection, veterinary services, and fertilizers at 50% less cost. According to FAO, Dates with the production of 323,478 metric ton, followed by tomatoes with 72,357 metric ton, and cucumber & gherkins adds up to 73,982 metric ton in 2019, thus showing a steady growth of agriculture in the United Arab Emirates. Import of Major Cereals According to ITC Trademap, the import of cereals was valued at USD 1,080,277 thousand in 2019, Increased import of cereals is due to high local consumption and a decrease in government grain stocks. Among cereals, Rice is majorly imported. The majority of United Arab Emirates rice imports are milled rice while very less percent of paddy, brown and broken rice. According to ITC Trade, India is the dominant supplier of cereals to the United Arab Emirates, holding 35.6 % share in total imports in 2019. Russian Federation was ranked second highest exporter to the UAE with 15.9 % share of total imports. This increasing import shows the growing opportunity in the United Arab Emirates.

1.2 COMPANY PROFILE 1.2.1 ABOUT THE COMPANY Established in 2006, Midstar is a global agricultural commodity trading business having presence in Dubai, Singapore, and Egypt. With expertise and inherited experience, they specialize in agricultural commodities for human and animal consumption, managing the entire supply chain for commodity businesses. As the organization is deeply rooted in ethical business standards, they undertake all global trading practices by being cognizant of what they can deliver in the most efficient and righteous way. Midstar has grown to be known as a global reliable partner in the agricultural commodity trading arena. Having a strong destination footmark, Midstar sources bulk commodities such as raw materials required for wheat flour mills and sugar refineries, with volumes over 5 million metric tons annually. Being a professionally managed business with a strong heritage of noble values and ethics, we operate on a foundation of trust, integrity, quality, and commitment, earning the respect of their global partnerships. They are a reliable supplier to some of the biggest food processors and

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service brands in the world. They embrace fair trading practices based on transparency and integrity. Over the years, the multinational team of professionals have established and consolidated commodity platforms including grains and sugar. Midstar has achieved admirable strides and established excellent long-lasting relationships with business partners worldwide, fortified with mutual respect, goodwill and trust. Their reputation precedes them as they continuously gravitate towards a forward-thinking paradigm in the agri-business sector.

1.2.2 AWARDS AND RECOGNITIONS November 2020 Qualified as one of the top performing brands in the year 2020 by LinkedIn. This award is based on follower growth, follower number, and content engagement levels. Midstar aims to continue #BuildingTogether the path of growth sharing our awesome journey. May 2021 Midstar celebrated its first-ever service excellence award ceremony. The event had coincided with Midstar's Annual Suhoor. May 2021 Midstar was certified as a Great Place To Work this year, 2021, a source of pride and honor indeed. The great part of such achievement is that management is duly appraised by feedback from the staff. In an auxiliary survey, Great Place to Work collected knowledge directly from people in various positions in the company, not just from high-level personnel. Today, 91% of our employees agree that Midstar is a great place to work.

1.2.3 PRODUCTS AND SERVICES PRODUCTS: Midstar sources and delivers essential agricultural products to meet global demand. With decades of experience in global markets, Midstar has established enduring alliances with like-minded associates in the industry. They source produce from reliable partners and deliver them to destinations worldwide. They place great importance to get the best quality products, ensuring efficient delivery that strengthens and sustains the supply chain. Some of the products that they deal with are:

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a. WHEAT Wheat is one of the most important grains and a major part of our commodity portfolio. They source wheat from origins such as Europe, the Black Sea, the Americas and Australia to deliver it to various destinations in the Middle East, South Asia, South East Asia, East Africa and the Horn of Africa. With a constant reliable supply, they deal with the largest millers in the region, working with reputable companies that already have their own assets in place. The type of wheat may vary, as per what is required for different end products. The supply chain is maintained at all times to ensure that they are able to preempt demand at any given time. The supply chain is handled by a team of highly experienced professionals who track international grain markets with the objective of sourcing timely supply at the best competitive price for a quality product, with the main objective being to ensure unhindered supply. The team has long-standing relations with both producers and consumers. b. SUGAR They source raw and white (Crystal and Refined) sugar and supply them to their clients. The origination markets are from leading mills in Brazil and India and they work closely with the first-class MNCs trading in sugar. They majorly provide raw sugar to refineries producing refined sugar for further distribution. They have a long-standing reputation as a dependable partner committed to high standards. They aim to build long-term relationships with their partners and focus on adding value to their supply chain. By virtue of the strong relationships with both the mills and traders, and the expertise they have acquired over the past years, they are able to source high-quality raw sugar from first-class producers. This adds significant value to the refiners and buyers at the destination. c. RICE Rice comes in many different varieties and is one of the most popular grains consumed by a large population in the world. Whether from Thailand, Pakistan, India or Vietnam, their strength lies in the solid networks we have built-in different origins, which enables them to trade rice competitively. They specialize in sourcing both basmati rice and non-basmati rice from their reliable sources.

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They have strong expertise in moving rice, both in breakbulk cargo and container shipment. Midstar supplies rice to a wide range of customers as they strive to meet the increasing demand while maintaining quality products and competitive pricing. Their trading volumes have been increasing every year as we continue to be a reliable partner through our commitments. d. CORN Corn is one of the preferred ingredients for animal feed and they have been supplying the commodity to the customers. The demand for corn increases every year as the farms and population of livestock grow. Corn is a major feed grain component of livestock diets and source of energy. They have connections in place to ensure that it meet the demand for corn. They ensure that the process of supply and demand is met with effective procurement and success. Midstar has established strong relationships with leading suppliers and originators who are pioneers in the product, having assets at the origins in addition to an extensive network of information which assists them in procuring the right product. Their objective is to deal with reliable suppliers, ensuring good quality with smooth execution. They prudently source different classes of corn from trusted partners across major exporting regions, helping them to efficiently address the rising demand and create a significant presence. e. SOY BEAN Soya bean, an important oilseed commodity been used as raw material in crushing to produce soybean oil & soybean meal, they source soybeans from reputable origins, ensuring that the demand from their global clients for oilseed crushing is met. They specialize in trading soybean meal from South America to Middle East & South East Asian markets mainly for the poultry farm & livestock users as part of nutrition diet for animal & poultry feed in form of protein, in addition to corn in form of energy. f. PULSES Midstar is committed to constantly evolving and expanding our service offering in agricultural commodity products. They have secured their new line of supply for pulses after a couple of years of successful operation, sourcing and supplying pulses to the clients.

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While this relatively new product line they are offering to their clients on a global scale, they endeavor to expand this service. They are looking to grow the product line by eventually supplying a variety of options so that they can broaden their offering to the respected clients. They are dedicated to constantly finding new ways to expand their product range so that they can continue to provide the most diverse services. At Midstar, they make sure to source from the most recognized sources so that the clients are always met with outstanding quality. Midstar is dedicated to providing only the greatest quality in all our products, and this is the standard they have set for our wide supply of pulses. g. BARLEY They source Feed barley from trusted originators based in Black Sea, Europe, Australia & South America Region for the clients in feed business. They have a long-standing reputation as a dependable partner committed to high standards. They aim to build longterm relationships with our partners and focus on adding value to our supply chain. By virtue of their strong relationships, they have acquired over the past years, they are able to source the right ingredient in form of feed barley for the composite feed products or direct use for livestock consumption by extracting value from overall supply chain for the partners.

SERVICES: Midstar Shipping provides reliable and excellent operational standards for the carriage of cargo across the chain of all touchpoints, ensu...