Sagar rubber products pvt. Ltd

Sagar rubber products pvt. Ltd

AWinter Project ReportOn SAGAR RUBBER PRODUCTS PVT. LTDSubmitted to

S. V. Institute of management, KadiIn partial fulfilment of the requirement of the award for the degree ofMaster of Business Administration (MBA)InKadi Sarva vishwavidyalaya, GandhinagarUnder the guidance ofDr. Kalpesh P. PrajapatiS. V Institute of management, kadiSubmitted bySurendrasinh B. RajputRoll No- B 42Exam No- 299SEM-1, JANUARY 2016

CERTIFICATE

This is to certify that Surendrasinh Rajput of S.V. Institute of Management, Kadi have submitted her Winter Project titled, SAGAR RUBBER PRODUCTS PVT. LTD. In the year 2015-2017 in the partial fulfilment of Kadi Sarva Vishwavidyalaya requirements for the award of the title of Master of Business Administration

Dr. Bhavin pandya prof. Kalpesh P. prajapatiHead of the department Project guide

Date:

DECLARATION

I declared that the Winter Project titled finance department of Segar Rubber Products Pvt. Ltd. is original to the best of our/ Knowledge and has not been published elsewhere. This is for the purpose of partial fulfilment of Kadi Sarva Vishwavidyalaya requirements for the award of the title of Master of Business Administration, only.

Student Name: SignatureSurendrasinh B Rajput

PREFACE

This Corporate World is now becoming more and more competitive. Regarding this competition business houses need more professionalized people for their managerial work.

Practical training is very important for management students, because it gives the real test of things that are happening in connection with

Industry because; one will part of an industry in future. So it is vitally important for management students.

For my training, I Visit Sagar Rubber Products Pvt. Ltd During my visit on this industry, I got every kind of information required to prepare a project report. I prepared this report on what I saw, what I felt & what I learnt.

This report is the summary of information gathered during my research work. I am not saying it is totally perfect, there may be some errors and mistakes but I am confident that my sincere efforts and paid attestation will fully justify the subjects in this report.

I have tried my level best to present and prepare this report by if there is any misunderstanding information, I am extremely sorry for that.

ACKNOWLEDGEMENT

The project during the study of MBA Programme. I have got lots of knowledge of many aspects of Rubber Industry Functioning of the Sagar Rubber Products Pvt. Ltd Its different department and many more.For providing me this opportunity, I would like to thankful to our Head of the Department Prof. Bhavin Pandya and Project Guide Prof. Kalpesh P Prajapati who has shaped my understanding to the fullest and help on project information.

I would also like to thanks to the Director, Mr.Daksheshbhai J. Shah and Finance Manager, Mr. Atulbhai M. Mehta gave us all the information about his department and also made arrangements for us to get information of other department. All Members of the whole Sagar Rubber Products Pvt. Ltd. For Co-operate me.

At last I am again thankful to all known and unknown faces that helped me directly or indirectly during the industrial training as well as project work.

EXECUTIVE SUMMARY

In this rapid developing world, the industries are also progressing. Now a days not only theoretical knowledge is necessary but also practical training is also necessary for the management students. This is an era of cutthroat competition, so it is very difficult to success the marked position. As Charles Darwin has said that the firm having enough recourse will be able to success in the market.

This year I have decided to visit Sagar Rubber Production Pvt. Ltd, which is playing a vital role in overall development of the economy.

I have chosen the firm namely Sagar Rubber Products Pvt. Ltd Situated at Dediyasan, Mehsana. During the visit I have seen that the firm has employed advanced production techniques & advanced machineries.

At the end, I can say that the product of this firm has large market potential the firm itself has bright future.

TABLE OF CONTENT

CHP NO.

CONTENTPAGE NO.

Certificate2

Declaration3

Preface4

Acknowledgement5

Executive summary6

1GENERAL INFORMATION

1.1Introduction11

1.2History and development12

1.3Company profile13

1.4Organization structure14

1.5Management information15

2FINANCE DEPARTMENT

2.1Introduction19

2.2Financial planning20

2.3Organization structure of finance department21

2.4capitalization22

2.5Working capital23

3DEPARTMENT ANALYSIS

3.1Balance sheet26

3.2Trend analysis27

3.3Ratio analysis28

3.4Swot analysis36

4CONCLUSION38

5SUGGESTION39

6BIBLIOGRAPHY40

GENERAL INFORMATION

1.1 INTRODUCTION :-

The Sagar Rubber Products Pvt. Ltd Was established in the year 1992, is one of the plants established Mr. Dakshesh shah at Mehsana.

The union is into various businesses such as:-

Rubber Stopper Alu-Plastic Seals Eurohed cap with rubber insert Gasket For Pre-Filled Syringes Glass Ampoules Sterile water for Injection In Plastic Ampoules Glass Vials

1.2 HISTORY AND DEVELOPEMENT

The owner of the Unit Mr. Daksheshbhai Shah established the unit in 1992 the company has started as the small venture and then convert into large manufacturing company

Sagar Company, Eurohead cap with rubber insert, Glass ampoules, Glass Vials. Sagars association with the field dates back to 1992. Constant research striving to understand the field requirement and desire to keep our client satisfied firmly established as a unique enterprise in 1992. However, ever since, we are growing in only one direction upward and onward

Company has developed a special R&D department for their research a world famous quality products day by day for their customer.

Avoid usage of abrasive cleaners and wire brushes. At present modified the care and maintence instruction are for our company standard laminates does not apply. They are created for special optional efforts and are sensitive. But harsh scouring and acid based cleaners must not be used.

1.3 COMPANY PROFILE Name Of Organisation:- Sagar Rubber Products Pvt.Ltd

Address:- 143, GIDC-2 Modhera Road,Dediyasan,Mehsana-384002

Year Of Establishment:- This unit was established in the year 1992

Size Of Unit:- Large-Scale Unit

Form Of Organisation:- The Organization Form is Pvt.Ltd.

1.4 ORGANISATIONAL STRUCTUR

CEO

SENIOR MANAGER

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

JUNIORSENIOR ATTANDANTTECHNICAL ASSISTANT SUERVISOR ASSISTANT OFICER OFFICER 1.5 MANAGEMENT INFORMATION

Sr.No. NAME DESIGNATION

1Dakshesh J. Shah Director of company

2Kamlesh K. Shah Marketing Manager

3Yatish Bhavsar Purchase Manager

4Atul M. Mehta Finance Manager

5Govind JalaH.R Manager

6Hemant R. ShahProduction Manager

7Kamlesh A. BarotQuality control

8Jay k. Pandya Dispatch Manger

BANKER:- HDFC Bank

MISSION

We are committed to manufacture products complying with the best quality standards of the world.To manufacture and distribute globally, around I million energy efficiently of consistent six sigma quality This company has 3 main missions.They are following,1) Very high profit making development of company2) To provide best practise and technology of the world3) Their business becomes an international market segment...

VISION

To be eminent global brand providing complete, innovative, quality pumping paraphernalia less than one roof. Provide Global, customized water-management solution.

VALUESThe values that as are trust, ethics, integrity, discipline

DUKE CLIENT

ABBOTT AKUMS LUPIN Ltd BOOKAM Pharmaceutical LABORATE Pharmaceutical MCLEAD Pharmaceutical SWIS Pharmaceutical M.J Pharmaceutical Nitinlifes Sciensis Scolittodil Pharmaceutical Aqualiater Leborate Brooks Leborate S IEIBS Leborate

FINANCE DEPARTMENT

2.1 INTRODUCTION

Finance is the activity which is concern with planning a controlling the firm financial resources. Moreover financial management means rising of more funds at the minimum cost & using them effectively in the business. The financial management is concern with the financial manager plays dynamic role in modern companys development.

Now-a-days, in any field we see competition so every organization must have to build its storage financial position in the market. To expand the business & to reduce the financial problems, every organization tries to make good financial policy.

The financial management team is therefore assigned the task of planning and controlling the long term and short-term financial need in order to achieve the objective with the limited funds. So finance is the important element of business.

Finance is the main nerve of the business. A business cannot commerce without finance. Finance can be said the blood or the life line of business. Finance is the pre requisite for starting and running the business. Any business cannot work without finance. Money is the main element for the very existence of the firm. The sources of finance are limited. Finance manager has to take careful steps while deciding the requirement and the sources available.

Finance is most important for continue the process or activity or the organization. The financial management is concerned with the financial manager plays dynamic role in development of organization & company.

The manager of Sagar Products Pvt. Ltd. are plays very important role in development. The help of financial resources provided to Sagar Products Pvt.Ltd. every time & everywhere.

2.2 FINANCIAL PLANNING

The planning is a managerial function involving from among alternative, selection of the enterprise objectives, policies, procedures and programmers. It is deciding in advance what is to be done that is plan means a projected course of action. Financial plan provides a dividend picture of inflow and outflow of money. Sources of funds and uses of the funds. It deals naturally with the function of finance or the financial system of the firm. It includes the determination of the firms goals, policies and procedures in the financial aspect.

Financial planning eliminates waste of resources. Planes are based on accurate forecasts of future trends. Intelligent forecasting and planning preparing the enterprise to face the future and many unprofitable ventures can be eliminated so that firm can establish integrated approach to financial policies to realize prescribed common goals.

Financial planning should be based on financial forecast. The manager of accounts is given responsibility for the financial planning. The company uses various stastical techniques for sale forecasting. And sales forecasting finance plans are prepared.

2.3 ORGANIZATION STRUCTUR OF FINANCE DEPARTMENT

Managing Director

Finance Manager

Chief Accountants

ClerkAccountant Assistant

2.4 CAPITALIZATION :-

The term capitalization or valuation of capitalization of capital includes the capital stock and debt. There are three ingredients of capitalization, The value of all kinds of share The value of bond outstanding The value of surpluses

The company should be properly capitalized. There should be neither over capitalization nor under capitalization. The capitalization also refers to total capital of the company. The Sagar Rubber Products Pvt. Ltd. Has a capital of 45 lacks shares. The amount of capital is totally received by the way of private placement.

CAPITAL STRUCTURE

The financial structure of a company is the mark-up or form or composition of capitalization. The Sagar Rubber Products Pvt. Ltd. Have total capital of 45lacks shares. It has been raise through equity share by private placement. The company is private limited company therefore it cannot invite public for subscribing share. The capital structure depends on the nature of enterprise, control in management, attitude in investment market, government policies and on other factors.

2.5 WORKING CAPITAL:

Management of working capital usually involve management or administration of current assets namely cash and marketable securities, account receivable and inventories and also administration of current liabilities. The quantum of working capital in business is dependent on various factors. Such as type of business, turnover of inventories, term of purchase and sale, size of the business unit, process of manufacturing, seasonal variations etc. the present company is engaged in manufacturing of capital goods. Therefore naturally there is a high amount of working capital required.

CASH

The cash is needed for various purposes in business. They may be speculative, transitive and precautionary motives. The management of cash requires cash planning. It is a technique to plan & control the use of the cash. Cash is the most liquid current asset. Finance manager has to do cash planning. Manager the cash flows decide optimum balance of cash and invest the surplus cash in marketable securities.

ACCOUNT RECEIVABLE

Trade credit is considered as an essential marketing tool, acting as a bridge for movement of goods through production and distribution stage to customer stage to customers trade credit creates receivables involves credit policy, monitoring accounting receivables. A firm may follow a latent or a straight credit policy. Before following establishing any credit policy finance manager has to evaluate the effect of policy in terms of cost and benefits.

INVENTIRIES

Inventories constitute the most significant part of current assets of a large majority of companies. The inventories are in form of raw material, work in process and finish goods. The management of inventories is necessary to maintain a large size of inventory for efficient and smooth production and sales operations and to maintain the minimum investment in inventories is not desirable. The latest and modern techniques like economic order quantity are used in the company for management of the inventories.

Balance Sheet

3.1 Balance sheet as on: 2013, 2014, 2015

balance sheet201320142015

sources of funds

share capital11,67,62,992.0114,19,81,474.5315,13,85,979.01

equity share capital4,50,00,000.004,50,00,000.004,50,00,000.00

reserves surplus7,17,62,992.019,69,81,474.5310,63,85,979.01

loans (liability)

Bank OD11,66,20,347.0911,75,34,507.8414,90,04,673.81

secured loans3,78,20,578.093,27,41,768.042,02,48,754.09

unsecured loans6,76,37,395.076,65,29,231.076,71,92,970.07

Current liabilities11,71,61,062.6814,38,86,441.7810,91,47,012.39

advance from customers49,15,625.001,66,78,125.001,96,78,542.00

Provision82,51,230.001,06,31,432.0038,49,937.00

sundry creditors10,93,93,203.1112,13,63,347.339,17,22,748.83

Investments

Current assets30,46,22,046.0234,57,79,534.2732,21,69,772.38

prepaid expenses4,43,870.004,76,238.004,24,008.00

closing stock6,67,54,567.599,16,07,969.048,18,21,370.48

deposits(asset)1,29,55,280.091,28,11,666.361,07,85,007.83

sundry debtors20,62,76,022.8822,92,79,272.8121,56,73,398.31

cash in hand5,83,229.315,20,659.311,95,139.31

bank accounts2,35,369.321,11,997.001,62,280.64

BISR17,74,580.0016,88,292.007,37,858.00

Fixed assets16,18,09,760.9916,99,69,137.0019,08,95,772.99

dead stock16,95,518.0017,48,118.0018,14,668.00

plant &machinery13,02,57,538.8514,10,69,070.8516,62,79,960.85

land building3,59,30,898.544,53,82,919.545,28,56,729.54

3.2 Trend analysis: 2013, 2014, 2015

trend analysis201320142015

sources of funds

share capital 100.00 121.60 129.65

equity share capital 100.00 100.00 100.00

reserves surplus 100.00 135.14 148.25

loans (liability)

Bank OD 100.00 100.78 127.77

secured loans 100.00 86.57 53.54

unsecured loans 100.00 98.36 99.34

Current liabilities 100.00 122.81 93.16

advance from customers 100.00 339.29 400.33

Provision 100.00 128.85 46.66

sundry creditors 100.00 110.94 83.85

Investments

Current assets 100.00 113.51 105.76

prepaid expenses 100.00 107.29 95.53

closing stock 100.00 137.23 122.57

deposits(asset) 100.00 98.89 83.25

sundry debtors 100.00 111.15 104.56

cash in hand 100.00 89.27 33.46

bank accounts 100.00 47.58 68.95

BISR 100.00 95.14 41.58

Fixed assets 100.00 105.04 117.98

dead stock 100.00 103.10 107.03

plant &machinery 100.00 108.30 127.65

land building 100.00 126.31 147.11

Ratio Analysis

INTRODUCTION:-Ratio analysis is a powerful tool of Financial Analysis. In Financial Analysis, a ratio is used as benchmark for evaluating the financial position and performance of a firm. The relationship between two activating figures, expressed mathematically is known as Ratio Analysis. Ratio helps to summaries large quantities of financial data and to make qualitative judgments about the firms financial performance. In short, a ratio is defined as, the indicated quotients of two mathematical expression.

CLASSIFICATION OF RATIO

We may classify ratio into the following four important categories;

1) LIQUIDITY RATIOS 2) PROFITABILITY RATIOS 3) LEVERAGE RATIOS \ CAPITAL STRACTURE RATIOS 4) ACTIVITY RATIOS

IMPORTANCE OF RATIO ANALYSIS:- The importance of ratio analysis lies in the fact that. It presents facts on a comparative basis and enables the drawing of inferences regarding the performance of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect of the following aspects:

1) LIQUIDITY POSITION 2) LONG TERM SOLVENCY 3) OPERATING EFFICIENCY 4) OVER ALL PROFITABILITY

1) LIQUIDITY POSITION:-

With the help of ratio analysis conclusion can be drawn regarding the liquidity position of a firm. A firm can be said to have the ability to meet its short term liabilities if it has sufficient liquid funds to pay the interest on its short maturing debt usually within a year. This ability is reflected in the liquidity ratio of a firm.

2) LONG TERM SOLVENCY:- Ratio analysis is useful for assessing the long-term financial liability of a firm. The long-term solvency is measured by the leverage, capital structure and profitability ratio, which focus on earning power and operating efficiency.

3) OPERATING EFFICIENCY:- Another dimension of the usefulness of the ratio analysis is that it throws light on the degree of efficiency in the management and utilization of its assets. The various activity ratios measure this kind of operational efficiency.

4) OVER ALL PROFITABILITY:- The management is concerned about ability of the firm to meet its short term as well as long-term obligation to its creditors. This is possible if an integrated view is taken and the entire ratio is considered together

RATIO ANALYSIS:- 1. Gross profit ratio: = (Gross Profit / Sales) *

2013=(11227398 / 38713042.55)*10029 %

2014=(15681245.92 /50652030.46)*10030.96 %

2015= (16187013.26 / 47178143.94) *10034.31 %

26272829303132333435201320142015

INTERPRITATION: The ratio seems the Comparison last two year the gross profit ratio is increases. So it is a desirable situation but also company tries to improve gross profit ratio by reducing cost.

2. CURRENT RATIO: = (Current Assets / Current Liabilities)

2013= (21923282.15 / 7192611.89)3 : 1

2014

= (24535585.73 / 6476669.19)3.79 : 1

2015= (28738306.72 / 5801891.41)4.95 : 1

0123456789201320142015

INTERPRITATION: The ratio seems the working capital position. This ratio should be 2:1 i.e. the value of current assets should be twice the current liabilities

3. LIQUID RATIO: = (Liquid Assets / Liquid Liabilities) 2013= (8043790.51 / 7192611.89)1.12 : 1

2014= (11403123.32 / 6476669.19)1.8 : 1

2015= (14434984.81 / 5804891.41)2.5 : 1

00.511.522.533.544.5201320142015

INTERPRITATION: The ratio seems the batter indication of liquid position of the company and shows whether the company will be able to meet its current obligations due for immediate payment at a short notice. This ratio presents a very comfortable liquid position.4. ACID-TEST RATIO: = (Quick Assets / Liquid Liabilities)2013= (384474.99 / 7192611.89)0.05 : 1

2014= (293990.39 / 6476669.19)0.05 : 1

2015= (487026.94 / 5804891.41)0.08 : 1

00.010.020.030.040.050.060.070.080.09201320142015

INTERPRITATION: The ratio seems the Comparison last two year the gross profit ratio is increases. So it is a desirable situation but also company tries to improve gross profit ratio by reducing cost.

3.4 SWOT ANALYSIS:-

During this training at Sagar Rubber Products Pvt. Ltd, I had come to know the Strengths Weaknesses Opportunities threats for the company and it is very useful for a company to analyze them. Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.

STRENGHTS

Well-maintained infrastructure. Dedicated, intelligent and loyal staff. On-line trading products. Lowest brokerage and other charges competitors.

WEAKNESSES:

Less awareness in the market. Time consuming process for account opening, resolving the problems of the customer, etc.

OPPORTUNITIES:

Slope of stock market towards delivery based transaction. Large potential market for delivery and intra-day transactions. Open interest of the people to enter in stock market for investing.

THREATS: Decreasing rates of brokerage in the market. Increasing competition against brokers. Poor marketing activities for the company known among the customers.

CONCLUSION : The limiting factor of my training was duration of the time; I could not get over all information regarding the firm. But anyhow I have prepared the report on whatever the information I got.

I would once again like to thank all of those who responded me during my training in industry. Sagar Rubber Products Pvt. Ltd, have the rubber industry are very important industries in India, because of efficient expert & experience personal are engaged in this to satisfy the consumer & the also to achieve the companys objectives.

Sagar Rubber Products Pvt.ltd, in all ways is good, just that it needs to provide more and better service to the customers. it also needs to educate the people of the city and nearest village about their products especially the once who could afford a high deposits and wants a margin for his more trading.

It could come up with products, which cater to all segment of the society after a little cost cutting, than fixing up a standard service for all its customers, whose needs vary diversely.

SUGGESTION:-

Company should be required to reduce their cost as well as their prices of the product. Company should be required to their requirement procedure on the basis of qualification and talent of the candidate. Company should require entering in the irrigation sector for increase their market share as well their sales volume. Company should require to their advertisement by the way of television. Company should produce the raw material in the unit because the raw material cost is reduced. if the company are reduce the material cost so company profit margin are increase.

BIBLIOGRAPHY:-

BOOKS:

Khan and Jain Finance Management Pandey Finance Management

WEBSITES:-

WWW.Sagarrubber.com www.rubberindia.com

S. V institute of managementPage 40