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.com
Email : 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

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 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”.

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 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.

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 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.

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 INDEX

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

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

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

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

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GENERAL INFORMATION

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 CONTENTS

• INTRODUCTION

• COMPANY PROFILE

• NISTORY AND DEVELOPMENT OF UNIT

• SIZE OF THE UNIT AND FORM OF ORGANIZATION

• TIME KEEPONG SYSTEM

• EMPLOYEE SERVICE

• MANUFACTURING PROCESS

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 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.

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 COMPANY PROFILE
 Name of the unit:-

Lion tapes pvt ltd

 Location

Plot no:283/A
G.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

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 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

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 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.

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 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.

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 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.

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 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

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 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.

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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.

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HUMAN RESOURCE
MANAGEMENT

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 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

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 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.

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 ORGANISATION OF PERSONNEL
DEPARTMENT

GENERAL MANAGER

PERSONNEL MANAGER

PRODUCTION SECURITY

PRODUCTION INCHARGE
SECURITY GUARDS

SUPERVISOR
FITTERS
S WATCHMAN

CLERKS

WORKERS PEONS

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 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.

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 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

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 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
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.

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 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

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  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.

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
26
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.

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.

27
 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.

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

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 • Thus LION TAPES Makes Effective Performance Appraisal every
year.

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.

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 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.

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.

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 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

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 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.

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 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

34
• other important meters.

35
MARKETING MANAGEMENT

36
 CONTENTS

 INTRODUCTION

 ORGANISATION OF MARKETING DEPARTMENT

 PRODUCT PLANNING

 PRICING POLICY

 CHANNELS OF DISTRIBUTION

 MARKET SEGMENTATION

 PROMOTION MIX

 MARKET RESEARCH

37
 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.

38
 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.

39
 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.

40
 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.

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 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.

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 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

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.

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 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.

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.

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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.

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.

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 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
and able to find the needs of consumers and solve the problems through
scientific method.

46
FINANCIAL MANAGEMENT

47
CONTENTS

• INTRODUCTION

• ORGANIZATION OF FINANACE DEPARTMENT

• FINANCIAL PLANNING

• CAPITALIZATION

• CAPITAL STRUCTURE

• MANAGEMENT OF FIXED CAPITAL

• MANAGEMENT OF WORKING CAPITAL

48
 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.

49
 ORGANIZATION OF FINANACE
DEPARTMENT

LION TAPES has structured an effective organization of finance

department.

General manager

Finance manager

Chief accountant

Computer operator Sr.clercks

Assistants Jr.clercks

Peons Peons

50
 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.

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 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

55
 The company provides depreciation every year on fixed assts.

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

56
bank balance account. The company has cash and bank balance of
Rs.10.00.000.

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.

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 BIBLIOGRAPHY

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

Marketing: kottler and Armstrong

Finance:

Sites: www.liontapes.com

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