FINAL PROJECT REPORT WRITING

LION TAPES PVT LTD

ADDRESS: REGD. Off: 283 – B, Mumbai:B-503/504,GIDC Chitra Estate, Kailash esplanade,Bhavnagar – 364004. L.B.S.marg,India. Ghatkopar(W),Tel: +91-278-2445177 / 2445430 Mumbai,Fax:+91-278-2445740 India.

Website : www.liontapes.comEmail : sales@liontapes.com

BY: GUIDED BY:PAREKH SAUMIL JAYPRAKASHBHAI MS.NIDHI DAVE

SY.B.B.A DESIGNATION

Roll no:

Swami sahajanand college of commerce and management Bhavnagar university

Bhavangar

Batch : 2007-10

1

Candidate’s statement

I undersigned PAREKH SAUMIL JAYPRSKASHBHAI, student of

S.Y.B.B.A. hereby declare that the project-work presented in this report is my

own work and has carried out under the guidance of Prof. NIDHI DAVE of swami

sahjanand collage of commerce and management, bhavanagar.

Signature

PAREKH SAUMIL.J.

2

PREFACE This project reports include topic like H.R.M Marketing, Finance &

production. This would be helpful for us for deciding the source in the market.

Practical training is developed our education in our selecting field.

the world become complex and going towards direction of management.

So, the bhavnagar university has included industrial study as a part of BBA

course.

I am the student of SYBBA, the management course and to become

sharper in the management field the theoretical studies are not enough but a

practical training is also required. It may be possible that according to the

changing situation the theoretical knowledge is different from the present

situation.

“EXPERIACE IS THE BEST TEACHER”

This also describes the importance of the practical training. The training

means the act of increasing knowledge and the skills of any person to do a

particular job. It helps in understanding the current problems and situation of an

industry.

As a student of SYBBA, I got a great opportunity to to take an industrial

training for 21 days in LION TAPES Pvt. Ltd. Established in chitra G.I.D.C

bhavnagar.

I have prepared this project as per my knowledge, practical experience

and on the basis of information provided by the company.

I have tried my level best to create the mirror image of the company as per

I understood it.

This project report will be helpful to increase my theoretical and practical

knowledge and it will become a guideline for my junior friends.

Because it is said that “APPLIED KNOWLEDGE IS POWER”.

3

ACKNOWLEDGEMENTS

I can’t reach to my goal without the help of the god .so; first of all I want to

acknowledge fist toe deep dept of gratitude to the GOD. I am also thankful to my

parents whose wishes was with me every time for success of my work.

Now, I would like to thank to the principal of my collage Miss RACHNA

DHRUV for giving me the golden opportunity. then I would like to thank to my

project guide NIDHI DAVE . I am also grateful to all the faculties and office staff

members of my collage. I cannot describe all their contributions in my project.

I am also thankful to Mr. R.D.MEHTA and all the officers of the LION

TAPES PVT LTD for giving permission to make the project and to give the

information and co operating me in my project.

Last but not the least I am grateful to all the authors of the books that I

have used in preparing my project.

4

EXECUTIVE SUMMARY

Training is one of the important subject of our study therefore I have

visited LION TAPES Ltd at Chitra GIDC. In training I have collected important

information on Finance , Human Resource and Finance Management on this unit.

This unit produces the elastics of under garments, surgical and sports. I

have received a better experience from this company as a BBA student.

The need more investment so that it could increase more sales, though

there is less marketing the marketing should be increased by net.

The employees in the company donot have much experience on their work

so that the Co. should replace the employees who have much knowledge of

marketing on Internet for marketing.

5

INDEX

General information.................................................07

Human resource management................................18

Marketing management...........................................35

Finance management..............................................46

6

GENERAL INFORMATION

7

CONTENTS

INTRODUCTION

COMPANY PROFILE

NISTORY AND DEVELOPMENT OF UNIT

SIZE OF THE UNIT AND FORM OF ORGANIZATION

TIME KEEPONG SYSTEM

EMPLOYEE SERVICE

MANUFACTURING PROCESS

8

INTRODUCTION

According to the syllabus of S.Y. B.B.A, I started my industrial training

at LION TAPES for the purpose of practical study of our subjects like

personnel, marketing, finance, etc... This industrial is very helpful for

my practical study...

LION TAPES PVT LTD (ISO 9001-2000) is one of the leading and

pioneer company producing elastic tapes. It is situated at GIDC

industrial estate, Bhavnagar. As it’s constitution it is a private limited

company.

LION TAPES PVT LTD is the only company in saurashtra, which

produce elastic tapes. It produces different types of elastic tapes.

Elastic tapes are utilized in the products like inner wear garments,

sports and surgical accessories, brassieres etc. it has earned good

name in the market of elastic tapes for its quality.

The plant of the industry is spread over one acre of land. The

industry is satisfied with all the facilities of the industrial estate like

transportation, electricity, ware houses, communication etc.

The company has never look behind after once it was started in

spite of getting unavailable market in India. The company also exports

its products in UAE and Africa. This shows the good condition of the

company.

9

COMPANY PROFILE

Name of the unit:-

Lion tapes pvt ltd

Location

Plot no:283/AG.I.D.C. chitra,Bhavnagar.

Philosophy

“Promise only what can be delivered; Deliver what is promised”

type of industry

Small scale industry

Products

Draw string elastic

Button hole elastic

Simple elastic

Love brands elastic

Woven elastic

Knitted elastic

Printed elastic

10

Exports

SARA LEE: ladies & gents inner garments

EMBEE GARMENT: ladies & gents inner wear

MULTI-GROUP: standard ladies inner garments

Local

NEW LOOK: brassieres

NODY CARE: ladies and children inner wear

GROVER SONS: ladies and children inner wear

RUPA: ladies inner garments

OMTEX: sports and surgical accessories

STATES MAN FASHION: ladies and gents garments

DEFIANECE KNITTINGS: ladies and gents garments

PAGE APREALS: ladies and gents garments

11

HISTORY AND DEVELOPMENT OF UNIT

HISTORY OF THE UNIT:

LION TAPES PVT LTD has a remarkable past. Mr. D.V.MODI is

considered as the pioneer of the company. In the year 1985-86, Mr.

D.V.MODI started elastic tapes producing partnership firm with Mr.

R.D.MEHTA. They established their manufacturing plant at G.I.D.C.

industrial estate bhavanagar with a bare investment of Rs.0.3 million with

long-lasting vision of quality, core capabilities, realization & focused

innovativeness. At that time the firm was producing 2.7 million meters of

elastic tapes. The sale of the company was up to Rs. 15 lacks. This can be

considered as the excellent initiate.

DEVELOPMENT OF THE UNIT:

Due to the constant growth of this partnership business. It was

needed to revolutionize. Therefore, the partners of the firm decided to

transfer the partnership firm into company and they transferred it into the

company in 1995-96.it was start to recognize as LION TAPES Pvt. Ltd.

However, this was only start of greater things.

Once the company established, it had started producing more than

150 types of elastic tapes. It has grown into three companies commanding

a combined annual production of over 100 million meters. And

encompassing the entire field of elastic tapes. Due to this development, it

has grown manifold into being one of the largest producers of elastics and

fasteners in less then three decades.

12

SIZE AND FORM OF ORGANIZARION

The size of the firm in India depends upon various factors like total

investment, total workers employed etc. the total investment of the LION

TAPES is more then Rs 3 crores and total employees except management

and office staff employed are 40.so, and the LION TAPES is a small scale

industry.

The company has seven share holders. They are equity share

holders, described as follows:

Mr. S. D. Modi

Mr. R. D. Mehta

Mr. M. A. Mehta

Mr. B. D. Modi

Mr. N. A. Mehta

Mr. B. M. Mehta

The form of the organization is decided on the basis of internal

Relationship between the authority and responsibility to concerned

department.

13

TIME KEEPING SYSTEM

The company has a full fledged time keeping system. At the

security office near the gate, all staff members has to sign in the

attendance register at morning at 9:00 am. While all the workers have to

sign in the attendance register at the beginning of every shift. The security

officer registers the time. The register is passed over to the manager.

The timings of both the staff members and workers are as below:

STAFF:

Working hours: 9:00 AM to 5:00 AM

Lunch break: 12:00 to 12:30 PM

Workers:

First shift:

7:30 AM to 12:00 PM

12:00 PM to 1:00 PM (lunch time)

1:00 PM to 8:30 PM

Second shift:

8:30 PM to 9:30 PM (dinner time)

9:30 PM to 12:00 AM

the workers are compulsorily required the time in the register

because they are paid on the basis of time they have worked. If any

worker wants the day off, he must have to take permission of the manager.

As the company keeps full fledged time keeping system there is no

situation to do overtime.

14

EMPLOYEE SERVICE

“employees are hands of the business”

Employees play an important role in the success of any business

firm. It is therefore necessary for management to give much attention

towards the employees and to provide better service to them. If the

employees are given more facilities and services then the efficiency and

morale of an employee will naturally go high.

It is said that “if you give proper attention to employees, the

employees will gives full attention to your business and profitability

of business will increased.”

LION TAPES PVT LTD provides the following services to

their employees:

Safety facilities i.e. first aid and medical services

Newspapers and magazines

Withdrawal facility

Gratuity of workers

Provident fund

Educational facilities for employees‘ children

15

MANUFACTURING PROCESS

LIIONTAPES PVT LATD is producing elastic tapes. The company

uses different types of ‘plastic yarns’ to produce different types of elastic

tapes. The company makes goods as the orders received. The raw

material passes through different stages as follows:

WRAPING

First of all the raw material is passed from the warping machine.

plastic yarns are warped at this stage. This is the first step of producing

elastic tapes.

RUBBER COVERING

Once the product is passed from the warping machine, it goes to

rubber covering machine. Now the yarns are covered with rubber. After

this stage the semi-finished goods are ready.

WEAVING

Now, the semi-finished product passes from the weaving machine.

The product got weaved at this stage, at the end of this stage the product

is ready in the form of elastic tapes.

CHECKING AND MEASURING

Here the product is checked by the production in charge, they

check the quality of the product and also the wastages made during the

process. After that the tapes are measured in the form of meters.

16

WINDING

After measuring the product is winded , it is winded for the purpose

of packing.

PACKING

The product is packed by the packing department and stored in the

warehouse.

Thus , this is the manufacturing process start from warping and

ends at packing. The ready product is stored in warehouse until it is

delivered.

17

HUMAN RESOURCE

MANAGEMENT

18

CONTENTS

INTRODUCTION

ORGANISATION OF PERSONNEL DEPARTMENT

MAN POWER PLANNING

RECRUITMENT. SELECTION & INDUCTION

TRAINING AND MANAGEMENT DEVELOPMENT

JOB DESCRIPTION

PROMOTION AND TRANSFER POLICY

PERFORMANCE AND APPRAISAL SYSTEM

WAGE AND SALARY ADMINISTRATION

WORKINS OF E.S.I SCHEME

PROVIDENT FUND SCHEME

TRADE UNION AND COLLECTIVE BARGAINING AND AGREEMENTS

PERSONAL RECORDS

19

INTRODUCTION

Among all the factors of production, man is by far the most

important. it is the matter of common knowledge that every business organization

depends for its effective functioning of human resources that is personnel

department.

LION TAPES has a well-set personnel department which

looks after working of the entire human resources. This department is engaged

with the tasks of recruitment, selection, training, development promotion, transfer,

wage and salary administration, provident fund scheme, etc.

Thus, the company personnel department is the center-

point for the entire department because they are directly or in directly connected

with it.

LION TAPES consider the most important task of

personnel department as the assure smooth flow of information and effective

communication and co-ordination.

20

ORGANISATION OF PERSONNEL

DEPARTMENT

21

GENERAL MANAGER

PERSONNEL MANAGER

PRODUCTION SECURITY

PRODUCTION INCHARGESECURITY GUARDS

WATCHMANSUPERVISOR

SFITTERS

CLERKS

WORKERS PEONS

MAN POWER PLANNING

Assessment of manpower needs, including forecasting such needs

based on the analysis of the policies of the company, trends of its development,

plans for diversification, etc.

Every company is needed to have planning about its manpower

strength. We cant dream a company without any worker or employees. The main

power is strength of the company. Therefore, the company needs the workers or

employees for day to day work.

In LION TAPES , the an power recruitment for respective is carried

out consultation with functional head and unit head and HR department and

approval is obtained from management .

As per company format periodic review of manpower is carried out

to unsure that man power needs are met with and alteration is made to

accommodate changing recruitment.

HR department is in consultation with management and on

discussion with function and unit head defines the competence of employees at

each level across the organization. Taking into consideration, skill required to

perform role and responsibilities assigned, qualification and number of year of

experience of employees.

22

RECRUITMENT, SELECTION &INDUCTION

Recruitment, selection and induction are the operation function of the

personnel department, which are procuring, developing, maintaining and utilizing

labor, supervision and managerial force.

RECRUIETMENT:

Recruitment can be defined as the process of searching prospective

workers and stimulating then to apply for job in the organization. In LION TAPES,

recruitment is made when

Employee is retired

Employee died

Employee gives resignation

Employee is dismissed

LION TAPES, recruit qualified experience person for respective posts the

company follows the following steps for recruitment.

1. Receiving application blank : LION TAPES personnel department

invites applicant from prospective applicants. This helps the company to

select high- qualified person for respective job from the large prospective

applicants.

2. comparison : the next step to selection procedure is to compare to the

application from with each other so that some of the standard can be

selected from large group of applicants and it also help for seedy

selection process to the company.

3. Interview : the company call the selected applicant for the personal

interview. During the interview, the personnel management always tries

to find out high-qualified person with good knowledge. The purpose of

23

interview is to select the best person for the job by interacting with the

candidate.

4. Appointment letter: the personnel department of LION TAPES sends

letter to those applicant who are selected after analyzing the interview

procedure and qualification. The helps the company to select the best

person for the job.

5. Induction: induction is the process that familiarizes the new employee to

the work. LION TAPES gives awareness to the new employee about the

following:

Company history, product and major operation

Geography of the plant

Structure of the organization

Functions of various department

Company policy, rules and regulation, house of work, wages and

payment terms.

Information about the immediately subordinates

From, the above, it can be seen that the process of requirement, selection

and induction is as good as performed by medium scale or large-scale

industry.

24

TRAINING AND DEVELOPMENT

‘Give man fish, and you have given him meal. Tech man to

fish, and you have given him a livelihood.’ The ancient Chinese proverb

describes the importance of training and development.

TRAINING

Training aims at increasing the aptitudes, skill and abilities of

workers to perform specific jobs. it makes employee more effective and

skillful.

In present, dynamic world of business training is more important. this an

ever present need of training men. so that new and changed techniques

may be adopted. And new and changed techniques may be taken as an

advantages and improvement effected in the old methods.

In this concept. I have collected information regarding training methods

used in the organization to train the employee and evolution of the training

effect of employee.

There are number of training method and to train employee to

evaluate effectiveness.

On the job training

Vestibule training

Apprenticeship training

Inter-ship training

Classroom and lecture training

Conference method training

Learner training

LION TAPES, keeping in view the present requirements, give

raining to the employees. Their main purpose of training is to give the

latest information of the job requirements and about the organization

when the company employee, he will be given training for the purpose

of preparing them for an intended job.

25

there are so many different types of methods for training but the

company uses the most popular method of training for the employee

i.e. on the job training method. LION TAPES, sometimes, uses the

classroom training method for the fresh employee.

The company has described the following purposes for training :

To train the employee in the company culture

pattern.

To the employee for qualities production,

To the employee for promotion to higher jobs,

To reduce the wastages as well as accidents,

To the reduce the more supervision for time saving

purpose,

DEVELOPMENT:

Development Aims To Improve The Cover All Personality of an

individual. Development is most used in the context of management only.

LION TAPES always aims towards the development of the management. the

company believes that for the development of the organization, there must be the

development of management. Development is the continue process. it is always

going on. The company has taken development as proactive process

management believes that each man should given opportunity to develop the

total organization.

LION TAPES believes that they are able to reach at the stage

because of their management development police. The manger of the company

does not believe in ‘let’s Go’ in small error of the office staff and always tries to

develop the efficiency in the work.. this helps them to develop the company.

26

JOB DESCRIPTION Job description as for managerial levels is concerned. thre is

separate document if job description.

Job description is part of job duties, responsibilities, reporting

relationship working condition, supervisory responsibility, etc. job is described as

one part of job analysis

Job description of the management level of LION TAPES is quite

good. Their technique of describing job describing as follow:

MANAGING DIRECTOR :

Staying At The Top Level, He Is Responsible For The Total Activity

If The Firm. He is considered as the first class officer in this company.

EXEUTIVE DIRECTOR

The comes under the managing director. This is also responsible

for the activities of the firm. This is describing as top level authority.

GENERAL MANAGER :

The general manager is the top authority in the organization

structure of the LION TAPES.

MANAGERS

The Next To the General manager is the post of managers. LION

TAPES has nominated manager for different departments. Each manager is

responsible for the work of his department.

Thus, LION TAPES has define a very good job for the

management. They never feel the need of overtime. All are satisfied with are

responsibilities and authorities given to them. all the persons in the management

level never feel monotonous to their work. All has assigned particular authority

and responsibility. The company has also described in brief the purpose of the

job.

27

PERFORMANCE APPSAISAL SYSTEM

Performance appraisal is a process of evaluating the performance

and qualification of the employees in terms of requirement of the job for

which he is employed, for the purpose of administration including

placement, selection, promotion, providing financial reward ad other action.

The purpose of the performance appraisal of LION TAPES is to motivate

the employees by providing financial reward per year.

Though LION TAPES is a small firm, performance appraisal is made

per year. There are so many methods of performance appraisal. LION

TAPES personnel department assesses the performance of employees

through using man to man comparison method.

The personnel department compares two’s employees job for the

following points:

Knowledge of work

Interest in work quality and accuracy of out put

Self judgment

Willingness to accept responsibility

Punctuality

Capacity for future development

Ability to development &train others

Co- operation with colleagues and relation with staff, customers and

public

Thus LION TAPES Makes Effective Performance Appraisal every

year.

28

Promotion & transfer policy

Promotion Promotion is term which covers a change and call for greater

responsibility and usually involves higher pay and better condition for services

there for a higher status.

“A promotion is a vertically upward movement in rank and

responsibility.”

In LON TPAES the employees are promoted on the bases of their

past performance,

Seniority, merit, qualities, knowledge and skill, etc. LION TAPES promotes its

employee on the bases of 5 to 7 year experience. However, the past

performance and merit are given more importance for the purpose of promotion.

During my visit, the employees replied that they all are satisfied with the

company’s promotion policy

Thus, LION TAPES has prepared a promotion policy that can also be

suit to their employee.

TRANSFER

Transfer manse horizontal movement of the employees. A transfer is

later movement of employees from one position or department or plant to another

generally without involving any significant change in compensation, authority.

Duties, responsibilities and status.

In LION TAPES, employees are transferred in rare cases. As the

company has only one branch, the transfer takes place internally. The company

can transfer any employees from any place for better performance. While

transferring employees the company, sometimes raises the salary of the

transferred employee.

Thus, LIONTAPES has not felt so much need to transfer its

employees because all employees perform their job efficiently. Hence. Its transfer

policy is remaining very small: however they give proper attention towards it.

29

WAGE &SALARY ADMINISTRATION

Wage and salary refers to the establishment and implementation of

sound policies and practices of employee compensation. it is essential to

procure, maintain, develop, promote, and transfer employee and to get effective

result from them. Wages are perhaps the most important signal element on the

condition of employment.

In LION TAPES pvt. Ltd., wages are paid in consideration with

governments minimum wages scale. The company pays the salary on monthly

basis; and wages is counted on daily bases and paid on weekly basis. But they

all are counted on the basis of per day work. In LION TAPES wages are paid to

the employees working in manufacturing department while salaries are paid to

the office and management staff.

For the payment of wages time is taken as a base. If any worker

comes late more than 30 minute he is not given the wages but the half day. The

company also pays some bonus at the end of the year and allows withdrawing

more on some festivals.

Thus salary is paid in the first week of the month. Thus, personnel

department of the company had set well-structured wage and salary

administration.

30

WORKING OF ESI SCHEME

The government has introduction employee state insurance act from

1948 for the welfare of the employees. This act covers all workers whether

manual supervisory or salaried employee whose wages do not exceed rs. 6500

per month and who are employed in factories employing 20 or month workers.

This act is administration by the E.S.I. Corporation.

LION TAPES, as employing 40 workers, is covered under this act. So

the company provides 2.25% of salary as E.S.I. the main purpose of the

company is to comply with legal provisions by providing E.S.I.

The company under the scheme provides the following benefits:

Medical benefits

Maternity benefits

Disablement benefits

Development’s benefits

Funeral benefits

31

PROVIDENT FUND SCEME

Provident Fund Scheme Is Very Important Scheme because after

retirement many employees find difficulty in their daily life. If provident fund

scheme is provided by the company then workers can live happy life even after

retirement.

LION TAPES is also covered under this act and company is providing 8.33%

rater of provident fund. The company has set up a separate account namely

provident fund for the purpose of payment.

Under the scheme of provident fund, an employee can avail him self of

non-refundable withdrawals or take advances from him his P.F. account various

purposes.

For The Purpose of provident fund, both the employee and employer

are require to contribute every month @8.33% and 1.67% of the pay respectively.

LION TAPES Complies with All Legal provision of provident funds and provides

8.33%rate of provident fund of the employees. Thus, the company is also

complying with this act.

32

TRADEUNION AND COLLECTIVE

BARGAINNG AND AGREEMENT

TRADE UNION

The Trade Union Act as Passed In 1926 And Was Amended in1947 in

this act central government has laid down rules. It is compulsory for every trade

union to be registered under the trade union act.

Most of the company have trade union. There is only some company,

which has not trade union. LION TAPES is one of them. There is no trade union

in LION TAPES. The employees of LION TAPES are sati fiction with personal

department .personal department of the company treats the employee as a family

person

COLLECTIVE BARGAINING

Collective bargaining is most effective and common practice used in

solving the problem both of labor and management.

Collective bargaining is usually practiced in all industrial units, which have trade

union of organized group. But LION TAPES has not trade union and no

organized group. So there is not a single problem for collective bargaining and

agreement.

33

PERSONNEL RECORDS

Personnel recorded are very important of the company to know about

their employee it is useful for deciding performance and promotion of the

employees.

In LION TAPES pvt. Ltd, the manager keeps the personal recorded of there

employees .the objective to keep it are:

For performance a appraisal system

For promotion and transfer

For increment in wages and salary

For knowing the efficiency of the employee

The LION TAPES keeps the personal records of its personal, which are

as under:

Name and address of the employees

Education and qualification

Telephone number

name of parents

monthly income

service in any other units before this units (experience)

reason for join the firm

attendance

interview report

other important meters.

34

MARKETING MANAGEMENT

35

CONTENTS

INTRODUCTION

ORGANISATION OF MARKETING DEPARTMENT

PRODUCT PLANNING

PRICING POLICY

CHANNELS OF DISTRIBUTION

MARKET SEGMENTATION

PROMOTION MIX

MARKET RESEARCH

36

INTRODUCTION

According to some critics market a place where seller and

buyer comes together and marketing management represents marketing concept

in action. it is very useful in achieve to goals developing plans and setting into

action and controlling their marketing program.

I have expressed these all information through my knowledge

about marketing management. I am very heartily thankful to my concern

professor. Ms. Nidhi madam who have constructed a strong of this subject.

37

ORGANSATION STRUCTURE OF

MARKETING DEPARTMENT

As the product of LION TAPES Is not producing consumer product, its

marketing department is not much complicated. The company have particular

segment of marketing department as its requirements. Its consists so much

persons that can convince to industrial customers.

Marketing department is following this chart and responsibility. It is

natural that the co ordination and communication function are performed

efficiently, effectively. Marketing department is also consists to packing of the

product and advertisement, e.t.c it remains under the monitor of marketing

department.

38

PRODUCT PLANNING

A product is anything that can be offered to a market for attention,

acquisition and consumption. it includes physical objects services personality,

places organization and ideas. Product is a bundle of satisfaction that the buys.

In LION TAPES, Marketing department plans its products as the

need of their regular industrials. If they receive an order from new party, then they

plan their product as their needs. So, they simply have to plan their products as

they receive orders. Five points are very useful in decision marketing product.

However, the research and development department of the

company researches for new products and they give this product as a sample to

their customers. If the customers give order for that product, then the company

will plan to product it.

The company has also planned its products as. Product lines and

product mix the product planning is policy formulated every year the company is

always in search of it’s including new products its product planning policy.

39

Pricing policy

Pricing is on of the most important decision in marketing because

other 3ps of marketing mix are financed by the pricing policy of the company. The

price level and the sales volume together decide the revenue of the business.

LION TAPES has prepares the most Competitive Pricing Policy For Its

Products. The company is able to cover the large market of India. and also to

export good continuously due to its competitive pricing policy. LION TAPES sets

Its Pricing Policy for Its Product by Considering the Following Factor:

Cost of raw material

Processing cost like wages, labors, cost, e.t.c

Transport and electricity cost

Competition

Taxes

Profit margin

Other internal and external factor

Thus, the company is able to set the proper pricing policy and

able to stand in the market of elastic tapes.

40

CHANNELS OF DISTRIBUTION

There are mainly two types of channels:

1. direct channel

2. indirect channel

In direct channel there is a direct contact between the customer and the

supplier, while there is a middleman between the customers and the supplier in

the indirect supply.

The LION TAPES uses both types of channels. In some cases, the

company is in direct contact with their industrial customers and in some other

cases, the company sells its product through their agencies, which are cities of

the country for export.

LION TAPES believes that the channels of distribution also contribute to

the business. If there is fewer intermediaries are occupied, there is least cost and

maximum profit, in the result, the company can maintain closer relationship with

the customers and the credit of the company will naturally increase.

41

MARKET SEGMENTATIO “Market segmentation is a method or achieving maximum market

response from limited marketing resources.”

Identify and profile distinct group of buyers who might require

separate products of marketing mix. Lion tapes are producing elastic tapes.

Which is the raw material for other companies? So the company has segmented

the market on the basis so geographical and on the basis of the customer’s

production.

The company has segmentation the market by geographical areas

as Bombay, ahemedabad, Chennai, kolkata, and Delhi, and also has agencies

for export the production

EXPORTS:

SARALEE:- Ladies, men’s inner garments

MULTI-GROUP:-Branded Ladies, girls inner wear

LOCAL:-

NEW LOOK: brassieres

Body care: ladies & children inner wear

Grover sons: ladies & children inner wear

Statesman fashion: ladies & Gents Garments

Defiance knitting: ladies & Gents Garments

Paye appreals : ladies & Gents Garments

42

The company makes research every ear and makes changes in

their market segmentation. Due to efficient marketing department, the

segmentation is good and company is able to earn from its segmented market by

lowering the cost.

PROMOTION MIX

Promotion is activity that offer and incentive and for a limited audience

(wholesalers and retailers).As LION TAPES is producing raw material for the

companies, it uses the best from the following promotion mix tools :

advertising

Sales Promotion

Public Relations and Publicity

Personal Selling

Direct Marketing

ADVERTISING

Advertising Is Made To Aware The Public About Companies Product And

For Increasing In Sales.

In LION TAPES pvt. ltd. There is very less feed for advertising because

the product of this company is for industrial customer oriented. Moreover the

product of the company has earned a good name for its quality. There are few

customers of its product. So it has not gone for general public advertising.

43

However if the company introduces a new product than it uses informative

advertising. The need for this is to create primary demand for its product. Thus,

the company’s marketing department has no to crate different advertising policy.

SALES PROMOTION

American Marketing Association define sales promotion tool which

suits for industrial sales promotion. The company always shows a good interest

in promotion the sales for this purpose, the company uses the following:

i. Special discount offer

ii. Free trial

iii. Free samples

iv. Long credit

The company’s purpose of sale promotion is to increase the sale and

to attract the new customers. According to the company, they are able to

increase 2% sale by sale promotion. So the company has decided to improve the

sales promotion activities.

From the company point of view, the sales promotion is used

increase sale for the short period of time. Thus it can be said that the sales

promotion helps the company to sell the extra stock. This has already in the

where house.

DIRECT MARKETING

The concept of the direct marketing is much develops ed. They are

many forms of direct marketing like mail, telemarketing, internet, etc.As the

company’s customers are few, the company uses the direct marketing to promote

the sale. Thorough this, customer sellers relationship can be develop. Its

characteristics are as follow.

o Non-public: the massage is normally addressed to a specific person.

44

o Customized: the massage can be prepared to the appeal the

addressed individual.

o Up-to-date: a massage can be prepare a very quickly.

o Interpretive : the massage can be changed depending on the

customer’s

MARKETING RESEARCH

Marketing Is The Systematic Objective And Exhaustive Search For

And Study Of The Facts Relevant To Problem In The Filed Of Marketing.

In this aspect, I have studied regarding needs of marketing research

method and technique of marketing research

Marketing research is a systemic interring investigation about

unsatisfied need wants potential buyers.

In LION TAPES, when the company wants to introduce any new

product, than it first makes research for the market of the product. For the

research purpose, the company has to not make much effort but it simply

has to ask their regular industrial customers. However, the company’s

marketing department always tries to find some new customers for its

existing and new products. Just two year back, the company has started its

marketing department U.A.E. for the purpose to find some more customers.

The department is also planning to start market research in north and east

India.

The company’s R&D department tries the products as the need

industrial consumers identified through the marketing research. Thus, the

company’s marketing department intelligently makes marketing research

45

and able to find the needs of consumers and solve the problems through

scientific method.

FINANCIAL MANAGEMENT

46

CONTENTS

INTRODUCTION

ORGANIZATION OF FINANACE DEPARTMENT

FINANCIAL PLANNING

CAPITALIZATION

CAPITAL STRUCTURE

MANAGEMENT OF FIXED CAPITAL

MANAGEMENT OF WORKING CAPITAL

47

INTRODUCTION

Money is the live blood of the business. The land, building, machinery, and

other assets like raw matirial etc. need the capital.

Money is required for paying rent, eages, interest and also foe paying

other expanses like transportation, storage, communication; insurance and

advertisement etc. expansion and modernization of a firm cannot be done without

proper finance.

In short, the finance is the oil that lubricates the big machinery i.e. the

business firm. Finance may be said to be the circulatory system of the

corporation between the units of activity.

Thus, finance management is broadly concerned with the acquisition and

use of funds by a business firm. The lion tapes pvt ltd is in quite good position

from the view point of finance. This because of his sound finance department the

department always tries to minimize the different costs of the firm.

The company has sat his finance source according to his needs. The

company knows the importance of finance department so; it always motivates the

personnel concerned with it. Due to this the company is able to achieve his target

within the budget.

48

ORGANIZATION OF FINANACE

DEPARTMENT

LION TAPES has structured an effective organization of finance

department.

49

50

General manager

Finance manager

Chief accountant

Computer operator Sr.clercks

Assistants Jr.clercks

Peons Peons

FINANCIAL PLANNING

A financial planning is required to meet the future requirements, as finance

is the soul of every industry. To meet the future requirements. LION TAPES has

always tries to raise its capital. The accounting department does all the jobs of

financial department.

Each department of organization is asked for their financial requirement

and according to that they make the budgetary plan. According to that the

company decides that how much time is to be given to the customer for credit. If

the company is in more need of cash then it will sell only in cash or give a very

short time for credit for the customer.

The company not only prepares projected cash inflow and outflow but also

prepare expected future project and consumption of raw materials. At the end of

each month the actual progress is compared with expected progress. If they

found any error in the future policy then they rectifies it immediately. This helps

the company to frame the policy and to achieve their targets.

The company does not like to go for any risk while they are taking decision

about the formulation of finance plan i.e. budget. All the bright heads of the

department jointly formulate their budgets so that the company is able to prepare

an effective budget and can achieve their targets within the budget.

51

CAPITAL STRUCTURE

Capital structure refers to the sources from which funds are acquires.

LION TAPES is a private limited company. So it can not go to the general public

for the purpose of acquire fund from the members not exceeding fifty.

In the acquisition of the fund, the company has to be very careful because

wrong sources of funds for the company may lead to the winding of the company.

LION TAPES is a small scale private limited company. The financial manager of

the company has to set up the structure for capital, which suit best to the

company. The capital structure of theirs company consists of the following.

Equity shares

Director’s deposits

Secured loans

Unsecured loans

Current liabilities

Provisions

LIOON TAPES has not issued any debentures. Bonds and any type of

preference shares.. The company has issued the equity capital of Rs.

1.00.00.000 each of Rs.10. The company mostly raised its funds by director’s

deposits.

52

CAPITALIZATION

Capitalization means total amount of company’s capital or total value of its

capital stocks. In other words it is a valuation of company’s total finance in

promotion to its requirements. In the company, finance department should have

to decide that amount of capital is required in the company. While making about

capitalization there may be the risk of over or under-capitalization.

A company is said to be over capitalized when its earning are not large

enough to yield the fair return on the amount of issued serenities and long term

borrowing. In other words. There is over capitalization when capitalization

exceeds the real economic value of its assets.

A company may be under capitalized when the rates of profits are

exceptionally high in relation to the same industry or it has too little capital to

conduct business. Here, the capital of the company is less in proportion to its

total requirements.

LION TAPES is an equi-capitalized company that means the company is

neither under-capitalized nor over-capitalized. The company has conducted its

finance as its requirements. Then financial brighter of the company has

conducted its finance as the business required.

53

The company has the current assets about two crores and current

liabilities of one crore. This shows the equi-capitalization of the company.

Much better and clear picture of the equi-capitalized position of the

company can be known from its liquidity ratio. Liquidity ratio shows the amount of

cash available to meet immediate payment. Liquidity ratio is high, it will

unnecessary held the current assets and it is low, then there are insufficient

current assets. The liquidity ratio can be known from the following two ratios.

Current ratio: current assets Current liabilities

=2.00.00.000 60.00.000

=10:3

Quick ratio: current assets – Inventories Current liabilities

=2.00.00.000 – 1.00.00.000 60.00.000

=.1.00.00.000 60.00.000

=5:3

Here, both the types of ratio are fair. So, the liquidity ratio of the company

is fair. Here, the company is said to be equi-capitalized.

54

MANAGEMENT OF FIXED ASSETS

Fixed assets of a firm refer to the assts, which are going to stay in a

business for the long period of time. Management of fixed assets or ling-term

assets is popularly known as capital budgeting. Capital budgeting refers to the

selection of assets or investment proposal or courses of action whose benefits

are likely to be available in future over the life time of the project.

Management of fixed assets also decides capitalization position of the

company. Financial department of the LION TAPES has managed its fixed assets

by the way of least cost combination. The company’s fixed assets include the

followings:

Land 17 laks

Factory building 47 laks

Machineries 471 laks

Factory building includes the office building and furniture. Machinery

includes the followings:

Crochet machine

Warpin mahine

Printing machine

Measuring machine

Spool windings machine

Role winding machine

Festooning machine

Type inspection

The company provides depreciation every year on fixed assts.

55

MANAGEMENT OF WORKING CAPITAL

A firm requires working capital according to its turn over. The working

capital has direct relationship with profitability of the company. Holding of working

capital reduce the profitability of the company because idle working capital or

liquid assets may earn nothing. There are mainly three components of working

capital: inventories, receivables and cash and bank balance.

Inventories:

Inventory includes the stock of raw materials. In the company, the

de3partment keeps watch over the stock of inventories. It also includes the sock,

which is in working progresses. The company keeps the stock of raw materials

worth Rs.1crore. This stock can be used up to three months the purchase

keeping this stock is to meet the keen competition.

Receivables:

When firm sales goods on credit, the payment is postponed to future dates

and receivables are created. These are assets accounts representing amount

owned to the firm as a result of sale of goods in the ordinary course of business.

The company has receivable of about 80 to 85 laks. These all are due within a

year.

Cash and bank balance:

These are the most important current assets for daily working of the

business. Cash and bank balance includes cash on hand, cash with current

account, cash with fixed deposit and cash with post office. The company

maintains cash inflow account daily. Excess cash amount are transferred to the

bank balance account. The company has cash and bank balance of

Rs.10.00.000.

56

CONCLUSION

After visiting LION TAPES pvt. Ltd. I can conclude that LION TAPES plays

major role in the production of elastic tapes.

I got magnificent experience over there. The office staff was of

sympathetic nature; they gave me pleasant detail about the company. These

details will be helpful to me not only in the academic education but also in the

practical life.

Thus, in short the company is really one of the very good concerns and the

company is becoming strengthened year by year; so I can conclude that

company has a bright future.

And last I would like to thank to the persons who helped me directly and in

directly in my project-work.

With my best wishes to lion tapes for future developments, I am

completing my report.

57

BIBLIOGRAPHY

The required information for this project, I referred some books and sites

as under:

Marketing: kottler and Armstrong

Finance:

Sites: www.liontapes.com

58