Professional Documents
Culture Documents
VEERENDRA HEGGADE
INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
VIDYAGIRI, DHARWAD - 580 004
Presented by:
INDUSTRY PROFILE
The Overview of Nuts and Bolts Industry
1. Bolts and nuts are one group of industrial fasteners extensively used in all branches of production activities. They are used in the production of all types of physical products especially made from metal and wood. 2. Bolts and nuts are mostly made from mild steel, but in small quantities they can also be made from other ferrous and non-ferrous metals. Bolts and nuts have different sizes, shapes and can be made for different fastening purposes. They can be manufactured either by cold or hot process 3. During the last four years average annual imports of nuts and bolts were 40,000 tons. This quantity alone can justify the establishment of a bolts and nuts producing plant. With increasing demand for these products, there is increasing need for such a plant.
COMPANY PROFILE
NAME OF THE ORGANIZATION TYPE OF FIRM OFFICE & MANUFACTURING PLANT FASTENERS AND ALLIED PRODUCTS PVT. LTD Private Limited. M-3, Industrial Estate, Gokul Road (Karnataka), India Phone : 2330062 / 2330132 Fax:(0836) 2330431 E- mail: sales@fappl.com
YEAR OF ESTABLISHMENT
SSI REGISTRATION NO. FACTORY LICENCE NO ECC NO. SALES TAX REGISTRATION NO. INCOME TAX PAN NO.
1975
08/09/00830/PMT/SSI Dt:25.05.1976 MY/DWR/773 AABCP-1893Q-XM001 TIN NO.29690002591 CST 4035604-5 Dt 25.02.1975 AABCP-19-1893Q
NSIC REGISTRATION NO
BANKERS
NSIC/KAR/GP/RS/KT/F/36/2005
State Bank of India Commercial Branch Station Road
PRODUCT PROFILE
Products and Services offered by company
The FAPPL Company produces different types of fasteners products they are as follows: 1. Hex & Square head bolts 2. Adjusting Bolts 3. Roto Cap Assembly 4. Threaded Rods and Tie Rods 5. U Turn Bolts 6. Fully Thread Stud Bolts 7. Special Fasteners 8. Industrial Valve Spindles (Stems) 9. Available Coatings 10. Screws 11. Stud Bolts 12. Double ended studs 13. Hex & Square nuts 14. Special Fasteners as per customer requirements 15. Precision Engineering sub assembles for automobile and other sectors 16. Industrial valve components i.e., Stems & Yoke Sleeves & Nuts.
TRENGTHS
SWOT ANALYSIS
1. 2. 3. 4. 5. 6.
Committed service levels. Attention to customer urgency. Good product line. Capacity to meet OEMs requirements. Dedicated team to take up challenging work. Reliable source of vendors.
EAKNESSES
1. 2.
Internal factors
O
1. 2. 3. 4.
PPORTUNITIES
Potential market for spare parts is growing high. Export order received is greater than what they are able to produce so opportunity to increase production capacity for which ready market is available. International Customers shows more interest to buy FAPPL products. They have excellent infrastructure facility to workers
HREAT
External factors
Negative
Positive
RESEARCH DESIGN
NEED FOR THE STUDY: The major need for the study was to explore and experience the real time applications of Cost to Benefit Analysis in FAPPL. And to understand the organizations framework and their work culture. PROBLEM AREA OF THE STUDY: Area of the study is cost-benefit analysis at FASTENERS AND ALLIED PRODUCT PVT LTD. METODS OF DATA COLLECTION: 1. Primary data. 2. Secondary data. Area of research HUBLI Research design Duration of the study : FASTENERS AND ALLIED PRODUCT PVT LTD
3. Unable to provide certain information in this project report as they were held to be confidential matter of the company.
4. The accuracy of the information provided in the report depends upon the information given by the company.
2011-12
16,434,901.5
175,624,031
9.35
9.35%
2008-09
2009-10 Years
2010-11
2011-12
0.00%
2008-09 2009-10 Years 2010-11 2011-12
DIRECT COST
119,497,812 123,964,006 133,633,450 151,961,618
NET SALES
143,270,914 157,983,241 162,259,547 175,624,031
PERCENTAGE
83.40% 78.46% 82.35% 86.52%
80.00%
75.00% 70.00% 2008-09
2009-10 Years
2010-11
2011-12
INDIRECT COST
10,435,279 10,526,148 14,502,644 10,898,268
NET SALES
143,270,914 157,983,241 162,259,547 175,624,031
PERCENTAGE
7.28% 6.66% 8.93% 6.20%
8.93%
7.28% 6.66% 6.20%
Percentage
2008-09
2009-10 Years
2010-11
2011-12
OPERATING RATIO
95.00% Percentage 90.00% 85.00% 80.00% 2008-09 2009-10 Year 2010-11 2011-12 93.64%
89.40%
85.12%
90.47%
DEBT
60,349,784 62,662,059 57,125,673 56,899,675
EQUITY
22,837,082 31,850,858 34,952,584 37,580,100
RATIO
2.64 1.96 1.63 1.51
0.00%
2008-09 2009-10 Years 2010-11 2011-12
9.00%
3.00% 2.00% 1.00% 0.00% 2008-09 2009-10 2010-11 2011-12 2.43% 1.29% 1.49%
NPAT
34,88,399 90,13,776 21,06,726 2,627,516
TOTAL ASSETS
108,847,513 125,913,966 135,364,125 137,725,944
ROAR
3.2% 7.15% 1.6% 1.90%
6.00%
4.00% 2.00% 0.00% 3.20%
1.60%
1.90%
2008-09
2009-10
Years
2010-11
2011-12
YEARS
2008-09 2009-10 2010-11 2011-12
NPAT
34,88,399 90,13,776 21,06,726 2,627,516
CAPITAL EMPLOYED
83,186,866 94,512,917 92,078,257 94,479,775
RATIOS
4.2% 9.53% 2.3% 2.78%
31.55%
24.73%
28.02% 23.73%
Percentage
2008-09
2009-10 Years
2010-11
2011-12
2011-12
73%
Percentage
27%
2008-09
2009-10 Years
2010-11
2011-12
FINDINGS
1. Direct costs (prime cost) are not controlled properly and therefore both costs are abnormally increased year by year. Even office and administration costs are also controllable in the organization. The company has continuously decreased the proportion of debt and chosen more of equity to raise the fund Operating expenses in the company have shown again a picture where these expenses are not being consistent over the years. In 2009-10 it has shown a drastic fall but again in the year 2010-12 it has again increased in the same drastic way. Companys P/V Ratio is quite stable and favorable i.e. 25% average. Percentage of BES increases is unfavorable to the growth and performance of the organization, as it does not includes any profit element. 2.
3.
4.
5. 6.
RECOMMENDATIONS
1. Proper policy and strategy should be designed to monitor the direct cost in the company so that they can control these cost as much as possible. 2. Company has to take similar steps which it has taken this year to minimize factory & administration overheads. Company has to implement strict control measures that these expenses should not raise in the coming years.
3. Operating expenses in the company have shown again a picture where these expenses are consistently increasing over the years company has to take effective control measures to keep these costs under their control.
4. Company must make regular efforts to improve P/V Ratio so as to minimize the market risk. 5. Proper monitoring of cost must be made to improve percentage of Margin of Safety and minimize percentage of BES.
CONCLUSIONS
CONLUSIONS: 1. The cost-benefit analysis is an important function in financial sector. This indicates growth & standard of the organization. It is difficult to study properly & cover all the aspects of the organization. 2. However the findings of the entire study indicate that the company is trying to utilize all the facilities available to its optimum & this can be seen from the ever improving sales of the company. 3. The company has to control the cost element as least as possible so as to improve its Break Even Sales and to increase the profits of the company. In doing the project lot of practical applications of cost to benefit analysis and its applicability in the industries like FAPPL has been learnt.
Bibliography
TEXT BOOKS: Financial Management, by M.Y.KHAN and P.K.JAIN. Publication: Tata McGraw Hill Education Pvt Ltd. sixth edition ISBN-13:978-0-07-106785-0 Cost Accounting, by M.Y.KHAN and P.K.JAIN Publication: Tata McGraw Hill Education Pvt Ltd. ISBN-13:978-0-07-040224-9 Accounting for management, by Dr.Jawahar Lal Publication: Himalaya Publishing House. Fifth revised edition ISBN-978-81-8448-095-3 FINANCIAL REPORTS OF THE COMPANY: Annual reports from the year 2008-09 to 2011-12 URLs:
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