Professional Documents
Culture Documents
TABLE OF CONTENTS
CHAPTER 1
INDUSTRIAL PROFILE
1
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
The 1970's saw PVC pipes used for freeway drainage and the manufacture of plastic cable ducts. During the
1980's, a manufacturing process of stretching the PVC pipes while warm improved the PVC pipes by
making them stronger and more resistant. This allowed the PVC pipes to be made with thinner walls,
increased flexibility, reduced weight whilst keeping pressure class and therefore, reducing the w material
required to manufacture h PVC pipes. These PVC pipes are called oriented PVC (PVC-0).
The 1990's and millennium brought PVC pipes to be used for under floor heating, a variety of commercial
applications as well as hot and cold-water applications replacing copper with PVC pipes. PVC pipes have
been used for over 50years in Australia for pressure and non-pressure piping applications. A CSIRO
analysis has reported that PVC pipes are the best performing pressure water pipe system in Australia.
PVC pipes are used in a lot of sewer pipe system as they resistant to corrosion, strong and easy to handle
and join. Waste water infrastructures throughout Australia are now using PVC pipes to remove waste water
and deliver fresh water due to their outstanding performance. Studies have reported that PVC pipes can have
life span of over 100years.
2
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Processing technology:
Pipe extrusion Ajay is the first company in India to use state-of-the-art European machines for processing
UPVC (in early 1970's) and CPVC (in Carly). We use the latest twin-screw extrusion technology to ensure
optimum processing of all polymers with the aim to maximize the physical properties, maintain consistency
in all products and commonly Improve upon productivity.
Manufacturing facilities
Currently the division operates through two strategically located manufacturing facilities incorporating the
latest manufacturing infrastructure sing with house laboratories and tool room. Further expansion plans are
being formulated with aim to reduce dice between customers for faster deliveries and optimized services.
Fully equipped laboratories and QC teams ensure that all quality parameters are adhered to an odd all testing
is performed in- house based on requirements of Indian and international standards. Our files d systems
ensure that Ajay products meet or exceed the global technical requirements.
3
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
This market research report contains statistics, tables, and graphs that can be used by key stakeholders to
develop plans to support the company's success. This report includes an in-depth analysis of the pvc pipe
market for each of the major geographic regions, including North America, Asia-Pacific, Latin America, the
Middle East, and Africa.
CHAPTER 2
Organizational Profile
4
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
In the year of 2021, April SREE SAI MITRA DRIP INDUSTRIES PVT.LTD stepped down in the industry
as a,
Manufacturer, supplier and trader of industrial tubes & pipes. From a grade new raw material & employing
latest machines, this is all developed by personnel as per international quality norms. Customers widely
applaud our mulching sheet, disposable drip tube, inline cylindrical drip pipe, micro tubes and plain lateral
pipes due to their anti-abrasive nature, durability, tough construction and availability in different sizes,
grades and specifications. Moreover, our capability demands in less time period at reasonable rates have
enabled us to win faith of numerous clients.
5
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
NUMBER OF EMPLOYEES 60
GSTIN 29ABFCS3871E174
PAN ABFCS3871E
SREE SAI MITRA DRIP INDUSTRIES PVT.LTD is a small-scale industry and PVT.LTD company. Is
establish in the year of 2021 as MSME serving with qualified business and professional mind set out
expertise comes from 25 years of managing small scale industry/business as well marketing and sales group.
The industry must manufacture the INDUSTRIL UPVC PIPES within the organization. The organization
must have strong base and state of art PVC pipe manufacturing technology with good organized marketing
network keeping in view to cater UPVC pipe.
2.2 Achievements/awards
Industry achieves the ISO (International Organizational for Standardization) 150 certification to 9001-2015.
6
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
“To be accomplished to the marketplace leader by individual to the top innovative provider of
determined worth solutions plus services with least contact on environment also, come out on top by
most noteworthy well-being standers”.
Fully satisfying customer's requirements through a process of continuous improvement, it's critical to
understand that total quality management is not a short-term program. It's a long-term commitment aimed at
continuously improving the way we work, providing a safe work environment, managing our business
processes, and supplier selection/retention. It is our goal to posture our company for market expansion,
thereby providing improved job security and quality of life for all.
b. MISSION
“Maintain top position in exhibit by giving best in class things and organization”.
To ensure customer service and satisfaction by providing high quality plastic pipes solutions through
ubiquitous distribution network, spreading product awareness and constantly improving manufacturing and
7
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
operational efficiencies through systems and results oriented, competent manpower resources thereby
creating sustained value for all our customers and stakeholders while maintaining high ethical standards.
c. QUALITY POLICY
We Are committed to manufacture and supply of UPVC PIPES of such quality which result in achieving
complete customer satisfaction at competitive price continually improve maintain competitive position and
increasing profitability and growth.
Compliance with checks, statutory, regulatory and QMS requirements.
Continual change of systems, things and upgraded the ampleness of the QMS.
8
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
a. Product profile
FEATURES
Optimum mechanical strength
High durability.
Durable
9
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Rust-resistant
MAINLY MANUFACTURES: -
PVC pipes
Drip irrigation pipes
Plain lateral pipes
Inline cylindrical drip pipes
Disposable drive tube
10
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Online Lateral Drip, Thimbak Drip pipe, Hydrocool are available in 12 mm, 16 mm, and 20 mm available in various
thickness. Colour Black. With rich industry experience and knowledge, we are engaged in the business of
manufacturing, trading and supplying a qualitative assortment of Drip Irrigation Pipes.
3. Obtaining customer feedback relating to products and service, including customers complain
11
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
SREE SAI MITRA DRIP INUSUSTRIES PVT.LTD manufacturing industry is register of UDYAM KR-
28-0001352 DT: 03-02-2021.
FINOLEX group is a private sector conglomerate based in India. The group was founded in the year d 1958
by P.P. CHHABRIA AND KP. CHHABRIA, FINOLIX group comprises FINOLIX 4477cables ltd,
FINOLIX industries ltd, FINOLIX J-power system Ltd.
• ASHIRVAD PIPES
12
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
ASHIRVAD PIPES PVT, Lid Has been relentless in its commitment to quality and services, since 1975,
The leader in the manufacturer of PVC and CPVC piping systems. ASHIRVAD pipe is 150 9001:2008
certified and is national award-winning company. With its state-of-the-art factory spread over 40 Acers.
The company has an annual manufacturing capacity of 21,08,000 Metric tons, Manufacturers a complete
range of high technology and superior quality plastic piping systems for domestics and agriculture us the
manufacturing system adheres to the highest level of international quality for a maintenance free life.
Sudhakar group of industries situated at SURYAPETE, Andhra Pradesh, INDIA. Playing a significant role
in PVC and HDPE pipe sector, Sudhakar group of founders is mela and establishing in the year of 1971.
With a product range to manufacturer electrical conduit, over the years the group emerged as potential
leader in rigid PVC pipes and HDPE pipes and fittings and also made its foray into different piping system
solutions.
Promoted by a visionary entrepreneur, this group has played a pioneer role in the field of PVC and HDPE
piping products by being innovative and quality conscious Sudhakar group distinguished itself from the
other organizations as company having an inbuilt culture of high inter care Satisfied the customers and
attained leadership in this field of PVC and HDPE pipes and fittings Nationwide dealership network and
service backup facilities, dedicated sales force and timely delivery. makes Sudhakar closer to customer.
13
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Vahini irrigation/PVT.LTD is an ISO 9001:2008 certified company established in the year 1999 and started
manufacturer and supply of PVC, HDFCLLDPE pipes and water thanks that are widely used in various
applications like potable water supply, agriculture, irrigation distribution system, drip irrigation system and
water storage.
Vahini is manufacturing the products with high quality standards and made available at very reasonable
prices in the regional market. Products have already reached thousands of satisfied customers and utilized in
various domestic factors also.
14
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
a) The industry should do in future we are implementing 151 and extend market throughout India and
abroad.
TESTING UNIT
MANUFACTURING UNIT
CHAPTER 3
15
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
DEFINITION
McKinsey 7s model is a tool that analyze firm's organizational design by looking 7s internal element
strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively
aligned and allow organization to achieve its objective McKinsey 7s model was developed it 1980s by
McKinsey consultants tom peters, Robert waterman and Julien Philips with a help from Richard Pascal and
Anthony G Anthos Since the introduction, the model has been widely used by academies and practitioners
and remains one of the most popular strategic planning tools. It sought to present an emphasis on human
resources (soft S), rather than the traditional mass production tangibles of capital infrastructure and
equipment, as a key to higher organizational
Above you can find the McKinney model, which represents the connections between seven areas and
divides them into "soft SS" and "hard SS. The shape of the model emphasizes interconnectedness of the
elements.
16
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
STRATEGY
Industries is main aim is to achieve the best customer satisfaction, though. Continual improvement of
quality management system, process by delivery of quality products on time and it's identifying the new
business opportunities formulate business plan and implement business strategies to provide adequate
resources and provides leadership to achieve organizational goals
MARKETING STRATEGY
Has the fundamental goal of increasing sales and achieving a sustainable competitive advantage. Marketing
strategy includes all basic, short-term and long-term activities in the field of marketing that deal with the
analysis of the strategy initial situation of the company and formulation, evaluation and selection of market-
oriented strategies that contribute to the goals of the company and its marketing objectives.
Our company strong marketing and brand strategy has helped us to emerge as one of the prominent and
leading private pipes manufacturing. The fact that our brand industry has been in existence since 2001,
indicates that we have been consistently supplying premium quality products and have been enjoying the
growing confidence of our consumers.
This helps us to understand and fulfill the needs of the customers for all our products by single
representation of our company. Our brand gives ultimate customer satisfaction by giving the proposition of
long durability and trendy design driven products and also vali for money proposition by being
competitively priced which gives the support in marketing of our Products.
DIFFERENTIAL STRATEGY
A differential advantage is when a business products or services are different to its competitors. The will
need strong research, development and design thinking to create innovative ideas. They as to the goods and
services could include delivering high quality to customers. If customer a product or services as being
different from other products, consumers are willing to pay more receive these benefits.
17
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
FOCUS STRATEGY
Focus strategy ideally tries to get businesses to aim a few target markets rather than trying to target
everyone. This strategy is often used to smaller business as they may not have the resources and ability to
target everyone. The industry uses this method to focus on the needs of the customers and how products or
services could improve their daily lives.
STRUCTURE
SREE SAI MITRA DRIP INDUSTRIES PVT LTD is a small-scale company
Organizational Chart
MANAGING DIRECTOR
DIRECTORS
HUMAN QUALITY
PURCHASE MARKETING PRODUCTION
RESOURCES CONTROL
MANAGING DIRECTORS
18
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Overall management of the organization to define, document and implement the quality policy and
objectives Identify new business opportunities formulate his plan and implement business strategy. To
provide adequate resources and provide leadership to achieve operational goals to monitor, review and
control operating and financial performance of the organization to initiate, monitor review continual
improvement plans in the organization Ensuring quality policy is understood and maintained at all. levels of
the organization.
HUMAN RESOURCES/ADMINISTRATION
He has the authority& responsible/reporting directly to MP/P/HODs All Staff/Training activities as per
guidelines framed by the organization to meet controlling set and maintaining all data & records related to
Training Should be responsible for planning & execution of works orders Monitoring and supervision of
operative work.
PURCHASE MANAGER
• Prepare purchase budget.
• Receive purchase requisition ascertain the material requirement.
• Ascertain the source of supply.
• Select the supplier offering the best terms and conditions.
• Issue purchases order to the supplier selected.
MARKETING EXECUTIVES
He has the authority & responsibility directly to MP PHODS
a) Contact with the customers industry segments.
b) Identifications of new customers, markets and
c) Handling of customer complaints Co-ordinate in the preparations of feasibility reports and cost estimation
sheets.
d) For the control of applicable documents and quality records required by QMS
FACTORY/PRODUCTION
Overall management of the production, marketing, dispatch, quality assurance and any other assignment
assigned by top management activities in the organization To define, document implements the quality
policy and objectives. To provide adequate resources and provide leadership to achieve organizational
goals.
• To monitor, review and control operating design/production and quality performance of the organization.
19
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
SYSTEM
system refers to all processes and information flows that link the organization together. It is the formal and
informal procedures that support the strategy structure. It includes management information systems. and
capital allocation systems that govern day-to- day activities All of industry offices and warehouses across
the state have been internally connected through a LAN, WAN connectivity infrastructure. The industry is
being used to drive critical business application such as local; day to day freight related application as well
as for E-mail Communications. The industry network hardware equipment is standardized.
The organizational process system shall, Determine the inputs required and the outputs expected from these
processes.
Evaluate these processes and implement any changes needed to ensure that these processes achieve
their intended results.
Assign the responsibilities and authorities for these processes. Address the risks and opportunities as
determine in accordance with the sequins The organizational shall demonstrate leadership style of
the organization with respect to.
STYLE
20
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
The organizational shall demonstrate leadership style of the organization we respect to Management
system...
Ensuring that the quality policy and quality objectives are established for the management system
and compatible with the context and strategic direction of the directions.
35/49
Supporting other relevant management roles to demonstrate their leadership as it applies to their
areas of responsibility.
Promoting improvement.
Communicating the importance of effective quality management and of conforming to the executing
quality management system requirements.
STAFF
A group of persons, as employees charged with carrying out the work of an establishment or some
undertaking
SREE SAI LMITRA DRIP INDUSTRIES QUALIFIED STAFF WITH THE ORGANIZATION
SL. EMPLOYEES DESEIGNATION QUALIFICATION EXPERIENCE
N NAME
O
21
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Staff members are helps to run the process and administration activities efficiently Company is having
technical and non-technical skill staffs working together to achieve the organization objectives, personnel
are selected on the basis of education and experience.
SHARE VALUES
INTEGRITY: We must conduct our business fairly, with honesty and transparency Everything we
do must stand the test of public scrutiny.
UNDERSTANDING: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the definite of the communities
we serve.
EXCELLENCE: We must constantly strive to achieve the highest possible standards in our day-to-
daywork and in the quality of the goods and services we provide.
SKILLS
The lower-level management of the organization has skills those, which are needed for communication
computer knowledge, and industrial knowledge. The diffs in the middle level management possess technical
skills relating to machinery control, pipe technology and production regulation. These in the warehouse
possess inventory management skills.
Technical skills
22
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Company is having number of skillful efforts technical skills are very important for the manufacturing
department. In the company most of the employees are multi skilled, these is company to work smoothly
without interruption. The production department in charging a positive attribute to motive the workers.
Managerial skills
The senior executives have the ability to engage all work gaps in co-ordinate manner. which helps to
achieve the organizational goals Company has required managerial skills to the entire department and they
have good communicational skills.
Supervisory skills
The executives of the company are professionals and they take the decisions Supervisory skills they control
over workers in a particular section Supervisory ate head of the department control with a particular area
The five forces model was developed by Michael E. Porter to help companies assess the nature of an
industry's competitiveness and develop corporate strategies accordingly. The framework allows a business
to identify and analyses the important forces that determine the profitability of an industry.
23
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Through his model, Porter classifies five main competitive forces that affect any market
and all industries. It is these forces that determine how much competition will exist in a market and
consequently the profitability and attractiveness of this market for a company.
Moderate
Rise in legal and regulatory burdens, leads is manufacturers to merge in order lower competition.
Acting as oligopolies, they sure high profit margins, cash flows and investment returns.
Though the competition is tough, the Sai Mitra pipes are getting huge demand in the market for the
quality purpose.
How Sree Sai Mitra drip Pipe industries pvt.ltd can tackle Intense Rivalry among the
Existing Competitors in drip pipe industry
By building a sustainable differentiation
By building scale so that it can compete better
Competitors:
1. Ajay Pipes
2.Apollo Pipes
5.Dutron Pipes
6.Finolex Industries
9.Kisan Pipes
24
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
10.Plasto pipes
11.Prince Pipes & Fittings Pvt. Ltd.
12.Sanco Pipes
13.Savera Pipes Pvt. Ltd.
14.Aizar Pipes and Fittings
Companies are concerned that substitute products or service may displace their own. The threat of
substitution is high when rivals or companies outside the industry Offer more attractive and or lower cost
products Buyers then have the opportunity to make a performance/price trade-off. The cost of switching is
also factor. If it is high the threat of substitution is low.
Through industrial fasteners cannot be replaced. The use of them may be reduced. Therefore, the threat of
substitutes is determined to be medium
Customer loyalty through brand awareness
How Sree Sai Mitra drip Pipe industries pvt.ltd can tackle the Treat of Substitute Products
By being service oriented rather than just product oriented.
By understanding the core need of the customer rather than what the customer is buying.
By increasing the switching cost for the customers.
In Porter's five forces, threat of new entrants refers to the threat new competitors pose to existing
competitors in an industry. Therefore, a profitable industry will attract more competitors looking to achieve
profits. If it is easy for these new entrants to enter the market if entry barriers are low- then this poses a
threat to the firms already competing in that market. More competition or increased production capacity
without concurrent increase in consumer demand-means less profit to go around. According to porter's five
forces, threat of new entrants is one of the forces that shape the competitive structure of an industry. Thus,
porters’ threat of new entrants’ definition revolutionized the way people look at competition in an industry..
New entrants focus on the fabrication of tailor-made products and sell their products at lower market prices,
and on the other hand, barriers of technology and capital are not high the threat of new entrants is
determined to be high.
25
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Economies of scale in manufacturing, distributing, and marketing create high barriers to the national
and global markets.
The capital needed to build PVC manufacturing facilities and the costs
The costs associated with this highly controversial industry seek high levels of sales, thus making
the industry more and more prohibitive for newcomers.
How Sree Sai Mitra drip Pipe industries pvt.ltd can tackle the Threats of New Entrants
By innovating new products and services. New products not only brings new customers to the fold
but also give old customer a reason to buy Sree Sai Mitra drip Pipe Company‘s products.
By building economies of scale so that it can lower the fixed cost per unit.
Products used to make PVC are inexpensive and suppliers are numerous.
How Sree Sai Mitra drip Pipe industries pvt.ltd can tackle Bargaining Power of the Suppliers
By building efficient supply chain with multiple suppliers.
o By experimenting with product designs using different materials so that if the prices go up of
one raw material, then company can shift to another
26
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
The quantity of irrigation pipes and lateral’s that a national agriculture tends to be unaffected
through recession and prosperity while the quality of the products purchased is directly related to
the disposable income.
A decline in disposable income shifts consumer preferences away from premium- priced brand-
name products in favour of lower-priced brands i.e., switching cost is low.
How Sree Sai Mitra drip Pipe industries pvt.ltd can tackle the Bargaining Power of Buyers
By building a large base of customers. This will be helpful in two ways. It will reduce the bargaining power
of the buyers plus it will provide an opportunity to the firm to streamline its sales and production process.
By rapidly innovating new products. Customers often seek discounts and offerings on established products
so if Sree Sai Mitra drip Pipe Company keep on coming up with new products, then it can limit the
bargaining power of buyers. New products will also reduce the defection of existing customers of Sree Sai
Mitra drip Pipe company to its competitors
CHAPTER 4
Analysis of financial statement & SWOT Analysis.
ANALYSIS OF FINANCIAL STATEMENT OF SREE SAI MITRA DRIP INDUSTRY PVT. LTD.
Financial statements is a formal record of the financial activities and position of a business, person, or other
entity.
Relevant financial information is presented in a structured manner and in a form easy to understand. They
typically include basic financial statements, accompanied by a management discussion and analysis
A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners’
equity at a given point in time.
An income statement or statement of comprehensive income, statement of revenue & expense, P&L
or profit and loss report, reports on a company's income, expenses, and profits over a period of time.
27
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
A profit and loss statement provides information on the operation of the enterprise. These include
sales and the various expenses incurred during the stated period.
A cash flow statement reports on a company's cash flow activities, particularly its operating,
investing and financing activities
Financial analysis is then performed on these statements to provide management with a more detailed
understanding of the figures. These statements are also used as part of management's annual report to the
stockholders.
NOTE; - Previously their sister companies of SREE SAI MITRA INDUSTRIES & SREE SAI MITRA
DRIP INDUSTRIES or merged in to SREE SAI MITRA DRIP INDUSTRIES PVT.LTD through business
transfer agreement (on 1-4-2021). This information conformed & given by (MR. NOOR MOHAMMED.
M), as a state Coordinator of SREE SAI MITRA DRIP
INDUSTRIES PVT.LTD here with I can’t analysis of financial statements of Previous Years because
company is newly incorporated.
PROFIT &LOSS A/C SREE SAI MITRA DRIP INDUSTRY FOR THE YEAR 2020-2021
28
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
To freight 11,819
To wages 11,36,000
To depreciation 26,74,995
29
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
BALANCESHEET OF SREE SAI MITRA DRIP INDUSTRY FOR THE YEAR 2020-2021
PARTICULAR AMOUNT AMOUNT
2 Loans
Secured loan 75,00,006
Unsecured loans
78,74,697
TOTAL 2,03,50,910
ASSETS
Current assets
PROFIT AND LOSS A/C SREE SAI MITRA DRIP INDUSTRY FOR THE YEAR 2021-2022
30
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
To wages 12,36,000
To insurance 33,937
To depreciation 2774995
4, 09,52,095
4, 09,52,095
BALANCESHEET OF SREE SAI MITRA DRIP INDUSTRY FOR THE YEAR 2021-2022
31
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Share capital
50,76,207
Loans
2,24,50,910
TOTAL
ASSETS
1,93,35,440
Fixed assets
Current assets
(3769060)
Prepaid expenses
40,00,000
Stock in trade
3,00,000
Sundry debtors
20,00,000
Cash and bank balance
5,00,000
Loans & advance
84,530
Other current assets 31,15,470
TOTAL 2,24,50,910
32
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
CURRENT RATIO
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2021 2022
2021 2022
Interpretation
We can see that company is in a good position when we compare its current assets to its current liabilities. In
2022, the ratio is 0.351, up from 0.128 in 2021, and it is in good shape. In the preceding statements, it says
increasing from year to year.
Analysis :- The above table shows the Quick Assets for the year 2021 and 2022 and Quick Liabilities for the
year 2021 and 2022
33
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
QUICK RATIO
0.98
0.96
0.94
0.92
0.9
0.88
0.86
0.84
0.82
0.8
0.78
2021 2022
2021 2022
Interpretation
When the companies’ liquid assets and liabilities are compared, we can see that it has a good asset to liability
ratio of 0.9577 in 2022, up from 0.8524 in 2021.
Because term assets can be easily converted into stable, predictable cash flows, business would prefer to
keep liquid at lower levels.
ANALYSIS: It shows that the proprietary ratio for the year was 2021-4.90 and 2022-1.63 representing
decreasing trend.
34
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
PROPRIETORY RATIO
6
0
2021 2022
2021 2022
INTERPRETATION:
A high proprietary ratio, therefore indicates a strong financial position of the company and greater security
to the creditors. A low ratio indicates that the company is already heavily depending on the debts for its
operations. Here the company is having low proprietary ratio in the year 2022 compared to 2021 which
shows that shows that the company is dependent on debts for its operations.
Analysis :- The above table shows the Inventory for the year 2021 and 2022 and Working capital for the year
2021 and 2022.
35
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
1.45
1.4
1.35
1.3
1.25
1.2
1.15
1.1
1.05
2021 2022 2021 2022
Interpretation:-
The daily production cost is displayed above the working capital to inventory turnover ratio calculation, when
production cost are reduced profit increase sales increase and there is less waste in the community. When
comparing 2021 to 2022 to all previous year.
Analysis :- The above table shows the Total equity for the year 2021 and 2022 and Total assets for the year
2021 and 2022.
EQUITY RATIO
0.27
0.265
0.26
0.255
0.25
0.245
0.24
0.235
0.23
2021 2022
2021 2022
36
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Interpretation
The calculation of the equity ratio above shows that ratio can fluctuate year by year with a high equity ratio in
2022 after it can increase the value of the equity ratio year by year.
The net profit ratio is the ratio of the profit after taxes to the net sales of a company. In simple words, we can
say that it is the ratio of the net profit to the net revenue of the business. It is generally expressed as a
percentage or a rational number so as to compare the profits with the sales of the company and determine
how much profit has been made in a specific segment. The net profit ratio is one of the most important
indicators of a firm's financial health.
ANALYSIS: Net Profit ratio of the company is in the year 2021 was 7.55% and in 2022 was 24.99% thus
showing the increasing profits.
25
20
15
10
0
2021 2022
2021 2022
37
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
Current Assets to Proprietors’ Fund Ratio establishes the relationship between current assets and
shareholder’s funds. The purpose of this ratio is to calculate the percentage of shareholders’ funds invested in
current assets. Different industries have different norms and therefore, this ratio should be studied carefully
taking the history of industrial concern into consideration before relying too much on this ratio.
CURRENT ASSETS
SHAREHOLDERS FUND
ANALYSIS:
The above data gives ratio of the company of the last two years, the ratio of the company is 2021 is 0.20 and
the ratio is increased to 0.61 in 2022.
0.6
0.5
0.4
0.3
0.2
0.1
0
2021 2022
2021 2022
INTERPRETATION: This ratio tells that how much amount has the shareholders invested in current assets.
The company shareholders has invested 20% in the year 2021 and 61% in the year 2022 which shows the
company is investing more in current assets.
38
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
The cash ratio is a measurement of a company's liquidity. It specifically calculates the ratio of a company's total cash
and cash equivalents to its current liabilities. The metric evaluates company's ability to repay its short-term debt
with cash or near-cash resources, such as easily marketable securities. This information is useful to creditors when
they decide how much money, if any, they would be willing to loan a company.
CASH RATIO:
CASH+ MARKETABLE SECRURITIES
CURRENT LIABILITIES
ANALYSIS: The above data gives cash ratio of the company of the last two years, the ratio of the company
is 2021 is 0.13 and ratio is increased to 0.35 in 2022.
CASH RATIO
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2021 2022
2021 2022
INTERPRETATION:
The cash ratio indicates to creditors, analysts, and investors the percentage of a company's current liabilities
that cash and cash equivalents will cover. A ratio above 1 means that the company will be able to pay off its
current liabilities with cash and cash equivalents, and have funds left over. Creditors prefer a high cash ratio,
as it indicates that the company can easily pay off its debt. Although there is no ideal figure, a ratio of not
lower than 0.5 to 1 is usually preferred. Here the company's cash ratio in the year 2022 is increased
immensely from the year 2021 and also it is less than ideal figure 0.5 to 1, hence the company is not able to
pay its debts easily.
Absolute liquid ratio extends the logic further and eliminates accounts receivable (sundry debtors and bills
receivables) also. Though receivables are more liquid as comparable to inventory but still there may be
doubts considering their time and amount of realization. Therefore, absolute liquidity ratio relates cash,
bank and marketable securities to the current liabilities. Since absolute liquidity ratio lays down very strict
and exacting standard of liquidity, therefore, acceptable norm of this ratio is 50 percent. It
means absolute liquid assets worth one half of the value of current liabilities are sufficient
for satisfactory liquid position of a business.
CURRENT LIABILITIES
ANALYSIS: Absolute Liquid Ratio in 2021 is 0.128 and in the year 2022 it is 0.35 which is in increasing
trend.
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2021 2022
2021 2022
INTERPRETATION:
If the ratio is considerably more than one, the absolute liquid ratio represents enough funds in the form of
cash in order to meet its short-term obligations in time. Here the company is showing low ratio in the year
2021 compared to 2022 and the ratio is also less than 1, thus representing that the company is lacking of
funds in form of cash in order to meet its short-term obligations.
40
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
It is a financial ratio that measures the performance and efficiency of a business by dividing its gross
profit figure by the total net sales. The Gross Profit Ratio can also be expressed in percentage form,
multiplying the result by 100.
ANALYSIS: In the year 2021 the gross profit ratio is 7.55% and in year 2022 the ratio is 24.99% which
shows increasing trend.
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2021 2022
2021 2022
INTERPRETATION:-
The Gross Profit Ratio of two years has been shown in the table and chart above (2021-2022). The
Company’s GPR ranged from 7.55% to 24.99%. In 2021, the ratio has been 7.55%; again in 2022, the ratio
has been increased to 24.99%. This demonstrates the company has got a profit. It shows a Upward Trend.
ANALYSIS :- The above table shows the total assets for the year 2021 and 2022, and Net sales for the year
2021 and 2022. The TATR for 2021 is 23.53 and 2022 is 10.88.
TATR
25
20
15
10
0
2021 2022
2021 2022
Interpretation:
The Total Asset Turnover Ratio of two years has been shown in the table and chart above (2021-2022). The
Company’s TATR ranged from 23.53 to 10.88. In 2021, the ratio was 23.53; in 2022, the ratio has been
decreased to 10.88. This demonstrates the company has got loss. It shows a downward trend.
SWOT analysis is a strategic planning tool evaluates the strength, weakness, opportunities and threats
involved in project or in a business venture. It involves specifying the objectives of the business venture or
project and identifying the internal and external factors that are favourable and unfavourable to achieve the
objectives.
STRENGTH
Products accepted easily due to its international quality standards.
Products organization catering all products in PVC pipe industry.
The company has the direct marketing network with well established distribution system.
Stringent quality measures adopted, backed by a strong quality control.
WEAKNESS
Lack of advertisement.
Limited branches.
OPPORTUNITIES
PVC pipe industry is in growth stage so PVC pipe industry has a greater opportunity to grow.
Agriculture promotion schemes.
Better technology update for manufacturing UPVC pipe.
THREATS
Sudden fluctuation in crude price, causing fluctuation in raw material price makes difficult in pricing
strategy.
In the changing world technology. Sometimes a better substitute over PVC may Emerge.
43
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
CHAPTER 5: CONCLUSION
5.1 FINDINGS
From the ratio analysis, it is observed that:
The current ratio is decreased to 0.128 and proprietary ratio has been decreased to 1.63 times compared to
the previous year.
The quick ratio is increased to 0.9577 when compared to 0.8524 in the previous year
The equity ratio is increased to 0.265 compared to the previous year i.e., 0.244.
Net profit ratio is increased to 24.99% which was more (7.55%) during the previous year.
The current asset to proprietor’s fund ratio has decreased to 0.61 when compared to previous year i.e., 0.20.
The cash ratio has increased to 0.35 from 0.13 which was in previous year. There is increase in the absolute
liquid ratio (0.35) compared to previous year (0.128)
The inventory to working capital ratio has been increased to 1.1891 in the year 2022 from 1.4180 in the
year 2021.
Gross profit ratio is increased in the year 2022.
5.2 SUGGESTIONS
The company has a very good infrastructure, but as the number of customers are more, sometimes the
company can’t get the workers to finish the work. Therefore, it is suggested to increase the number of
workers in the company.
Proper communication is required, they lack in communicating the right information at right time.
Low-level management must be monitored.
Details of all the customers and their needs should be made available at the right time.
More marketing strategies to be adopted..
From current ratio it is observed the company is having current ratio less than 1, hence it is not favourable
situation to be in.
From proprietary ratio the company is having more proprietary ratio in the year 2022 compared to the year
interacting with the staff members and they learn about management team, their responsibilities, their
point of view in future expectation of products, Learnt on company core values that is using team word
instead of I that results efficiency in work. And also understand the is strength, weakness, opportunity,
and threat of the company.
CERTIFICATES:-
1. CERTIFICATE OF INCORPORATIN
45
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
46
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
47
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
48
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
49
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
50
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
BIBLIOGRAPHY
Websites:
http://www.ISO-9000.html
www.wikipedia.com
www.sreesaimitra.com
51
INDUSTRIAL INTERNSHIP (20MBAI35) – SREE SAI MITRA DRIP INDUSTRIES PVT LTD
52