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Sagar rubber products pvt.

Ltd
A
Winter Project Report
On
SAGAR RUBBER PRODUCTS PVT. LTD
Submitted to

S. V. Institute of management, Kadi


In partial fulfilment of the requirement of the award for the
degree of
Master of Business Administration (MBA)
In
Kadi Sarva vishwavidyalaya, Gandhinagar
Under the guidance of
Dr. Kalpesh P. Prajapati
S. V Institute of management, kadi
Submitted by
Surendrasinh B. Rajput
Roll No- B 42
Exam No- 299
SEM-1, JANUARY 2016

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Sagar rubber products pvt. Ltd

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. prajapati

Head of the department

Project guide

Date:

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Sagar rubber products pvt. Ltd

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:

Signature

Surendrasinh B Rajput

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

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 Cooperate 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.

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

TABLE OF CONTENT
CHP
NO.

CONTENT

1
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
2.4
2.5
3
3.1
3.2
3.3
3.4
4
5
6

Certificate
Declaration
Preface
Acknowledgement
Executive summary
GENERAL INFORMATION
Introduction
History and development
Company profile
Organization structure
Management information
FINANCE DEPARTMENT
Introduction
Financial planning
Organization structure of finance
department
capitalization
Working capital
DEPARTMENT ANALYSIS
Balance sheet
Trend analysis
Ratio analysis
Swot analysis
CONCLUSION
SUGGESTION
BIBLIOGRAPHY

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Sagar rubber products pvt. Ltd

GENERAL
INFORMATION

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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

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

1.4 ORGANISATIONAL STRUCTUR


CEO

SENIOR
MANAGER
MANAGER
DEPUTY
MANAGER
ASSISTANT
MANAGER
OFFICER
ASSISTANT
OFICER
SUERVISOR
TECHNICAL
ASSISTANT

SENIO

ATTANDANT
JUNIO

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Sagar rubber products pvt. Ltd

1.5 MANAGEMENT INFORMATION

Sr.No.
1
2
3
4
5
6
7
8

NAME
Dakshesh J. Shah
Kamlesh K. Shah
Yatish Bhavsar
Atul M. Mehta
Govind Jala
Hemant R. Shah
Kamlesh A. Barot
Jay k. Pandya

BANKER:

HDFC Bank

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DESIGNATION
Director of company
Marketing Manager
Purchase Manager
Finance Manager
H.R Manager
Production Manager
Quality control
Dispatch Manger

Sagar rubber products pvt. Ltd

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)
2)

Very high profit making development of company


To provide best practise and technology of the world

3)

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 watermanagement solution.

VALUES
The values that as are trust, ethics, integrity, discipline

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Sagar rubber products pvt. Ltd

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

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Sagar rubber products pvt. Ltd

FINANCE
DEPARTMENT

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

2.3 ORGANIZATION STRUCTUR OF


FINANCE DEPARTMENT

Managing Director

Finance Manager

Chief Accountants

Accountant
Assistant

Clerk

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

Balance Sheet

3.1 Balance sheet as on: 2013, 2014, 2015


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Sagar rubber products pvt. Ltd

balance sheet
sources of funds
share capital
equity share capital
reserves surplus
loans (liability)
Bank OD
secured loans
unsecured loans
Current liabilities
advance from customers
Provision
sundry creditors
Investments
Current assets
prepaid expenses
closing stock
deposits(asset)
sundry debtors
cash in hand
bank accounts
BISR
Fixed assets
dead stock
plant &machinery
land building

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2013

2014

2015

11,67,62,992.0
1
4,50,00,000.00

14,19,81,474.5
3
4,50,00,000.00

7,17,62,992.01

9,69,81,474.53

15,13,85,979.0
1
4,50,00,000.00
10,63,85,979.0
1

11,66,20,347.0
9
3,78,20,578.09
6,76,37,395.07
11,71,61,062.6
8
49,15,625.00
82,51,230.00
10,93,93,203.1
1

11,75,34,507.8
4
3,27,41,768.04
6,65,29,231.07
14,38,86,441.7
8
1,66,78,125.00
1,06,31,432.00
12,13,63,347.3
3

14,90,04,673.8
1
2,02,48,754.09
6,71,92,970.07
10,91,47,012.3
9
1,96,78,542.00
38,49,937.00

30,46,22,046.0
2
4,43,870.00
6,67,54,567.59
1,29,55,280.09
20,62,76,022.8
8
5,83,229.31
2,35,369.32
17,74,580.00
16,18,09,760.9
9
16,95,518.00
13,02,57,538.8
5
3,59,30,898.54

34,57,79,534.2
7
4,76,238.00
9,16,07,969.04
1,28,11,666.36
22,92,79,272.8
1
5,20,659.31
1,11,997.00
16,88,292.00
16,99,69,137.0
0
17,48,118.00
14,10,69,070.8
5
4,53,82,919.54

32,21,69,772.3
8
4,24,008.00
8,18,21,370.48
1,07,85,007.83
21,56,73,398.3
1
1,95,139.31
1,62,280.64
7,37,858.00
19,08,95,772.9
9
18,14,668.00
16,62,79,960.8
5
5,28,56,729.54

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3.2 Trend analysis: 2013, 2014, 2015


trend analysis
sources of funds

2013

2014

2015

share capital
equity share
capital

100.00

121.60

129.65

100.00

100.00

100.00

reserves surplus
loans (liability)

100.00

135.14

148.25

Bank OD

100.00

100.78

127.77

secured loans

100.00

86.57

53.54

unsecured loans
Current
liabilities
advance from
customers

100.00

98.36

99.34

100.00

122.81

93.16

100.00

339.29

400.33

Provision

100.00

128.85

46.66

sundry creditors
Investments

100.00

110.94

83.85

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
Fixed assets

100.00

95.14

41.58

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Sagar rubber products pvt. Ltd


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

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Sagar rubber products pvt. Ltd

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

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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:S. V institute of management

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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:S. V institute of management

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Sagar rubber products pvt. Ltd

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

2013

=(11227398 / 38713042.55)*100

29 %

2014

=(15681245.92 /50652030.46)*100

30.96 %

2015

= (16187013.26 / 47178143.94) *100

34.31 %

35
34
33
32
31
30
29
28
27
26
2013

2014

2015

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.

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2. CURRENT RATIO: = (Current Assets / Current
Liabilities)
2013

3:1
= (21923282.15 / 7192611.89)

2014

3.79 : 1
= (24535585.73 / 6476669.19)

2015

= (28738306.72 / 5801891.41)

4.95 : 1

9
8
7
6
5
4
3
2
1
0
2013

2014

2015

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

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3. LIQUID RATIO: = (Liquid Assets / Liquid
Liabilities)
2013

= (8043790.51 / 7192611.89)

2014

= (11403123.32 / 6476669.19)

1.12 : 1

1.8 : 1
2015

= (14434984.81 / 5804891.41)
2.5 : 1

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2013

2014

2015

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.

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Sagar rubber products pvt. Ltd


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

0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2013

2014

2015

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.

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Sagar rubber products pvt. Ltd

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.
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Sagar rubber products pvt. Ltd


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.

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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.

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Sagar rubber products pvt. Ltd

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.

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Sagar rubber products pvt. Ltd

BIBLIOGRAPHY:-

BOOKS:
Khan and Jain Finance Management
Pandey Finance Management

WEBSITES: WWW.Sagarrubber.com
www.rubberindia.com

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