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“Max Precision Bearing Pvt. Ltd.”

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No. Particular Pageno

1 Introduction of company

a. Establishment and history of unit

b. Company profile

c. Managing body of company

2. Financial management

a. Balance sheet of company

b. Ratio analysis

c. Leverage analysis

3. Production and operation management

a. Production process

b. Layout of company

c. Quality mgt. and ISO standard

4. Cost management accounting

5. Findings

6. Suggestion

7. Conclusion


8. Bibliography

Introduction of company

Establishment and history of unit:-

“Max Precision bearing Pvt. Ltd.” established in 1992. It

is an iso-9001:2008 certified company. Manufacturing of all

type of antifriction rolling bearing and its components in

India. It is located near junagadh city of Gujarat state.

We believe that producing product is not accident. It is

always a result of intelligent effort and persistence. Therefore

at “Max Precision bearing Pvt. Ltd.” all bearings are

produced confirming to either customer requirements of

quality standards such as iso, din, afbma. Flexible


manufacturing system and ability specification are the Core

strength of max.

company profile Name of company :-

"MAX PRECISION BEARINGS PVT. LTD."

Location:-

Junagadh verval

National highway

8-D near koyli

Railway crossing

Shapur-3662205

foundation year:-

6th -August -1992

commercial production


6th -February -1990

Brand name :-

"MAX"

E-mail :-

[email protected]

managing body of company

board of directors :-

1. mr. pinak s. Thanki

2. mr. kirag m. Thanki

3. mr. jayendra c. Vadgama

auditors:-

Mr. Subhash akbari and co.

Marketing manager :-

Mr. H. B. Gautam

mailto:[email protected]


Finance manager :-

Mr. J. B. Jagani

Bank:-

Bank of baroda

Managing director

Kirag m thanki

Chirman

Jayendra vadgama


Financial managementFinancial analysis of balancesheet :-


PERTICULAR 2015-16SOURCES OF FUND (a) Owner’s Funds:- Capital Undistributed Profit Reserve loan interest on loan

99,50,00035,85,00023,55,00057,00,000

TOTAL FUND 2,15,90,000

APPLICATION OF FUNDS Building Furnitur Machiner land

- Less depreciation

70,00,00011,75,00090,00,00060,00,000

(46,35,000)

TOTAL FIXED ASSETS (1) 1,85,40,000

INVESTMENT(2) --------

CURRENT ASSESTS - Closing stock - Debtor’s - Bank & cash

27,00,0008,00,000

30,oo,000

TOTAL CURRENT ASSETS(3) 65,00,000

Less:-Current Liabilities - Creditors - B.O.D.

24,00,0004,50,000

TOTAL CURRENT LIABILITIES(4) 28,50,ooo

WORKING CAPITAL(3-4=5)36,50,000

TOTAL ASSESTS (1+2+5) 2,21,90,000

Ratio analysis :-


Financial Ratio is most frequently and widely used in

practice to assess a firm’s financial performance and condition.

Ratio analysis is a powerful tool of financial analysis. Ratio can

be defined as “the indicated quotient of two mathematical

expression” and as “the relationship between two more things.”

In actual position there are many ratios, which can be found

out. Here mainly 8 ratios are defined and found out from the

data of max bearing pvt.ltd.

1. Gross Profit Ratio:

The ratio established relationship of gross profit with

sales to measure the operating efficiency of the firm and to

reflect its pricing policy.

Gross Profit X

100


Gross Profit Ratio = Net sale

85,00,000 X 100

= 2,00,00,000

= 42.5%

2. Net Profit Ratio:

The ratio is valuable for the purpose of

ascertaining the overall profitability of business and

shows the efficiency of operating business. We can

say that net profit ratio is reserve of operating ratio.

The higher this ratio the better will be the

profitability.

Net Profit Ratio can be found out by following

formula:


Net

Profit

Net Profit Ratio = X 100

Net

Sales

= 11,00,000 X

100

2,00,00,000

= 5.5 %

3. liquidity Ratio:

This ratio shows the proportion of current assets to

current liabilities. It also known as working capital

ratio as it is a measure of working capital available at

a particular time. It is a measure of short-term


financial strength of the business and shows

whether the business will be able to meet its current

liabilities as and when they measure.

Current assets

Current Ratio =

Current liabilty

65,50,000

Current Ratio =

28,50,000

Current Ratio = 2.28 : 1

4. working capital turnover ratio :-


NET

ASSETS

W.C.T.O.R. =

WORKING CAPITAL

85,00,000

=

32,00,000

= 2.67


LEVERAGE ANALYSIS

Leverage simply means risk. It refers to the amount of

finance taken as borrowed capital. The capacity of that finance

is considered as leverage.

Analysis of leverage becomes most important to each and

every company because each and every company takes some

borrowed capital form the capital market which has to be paid

after a certain period of time with excess amount.

Leverage means the firms ability to use fixed cost of assets of

funds to magnify the return to its owner.

Every firm tries to earn more to increase the rate of return of

the owner and this objective can be achieved by using the fixed

cost fund which is generally available at lower cost.

Also one more important thing is that higher the degree of

leverage, higher the level of expected return, and higher the rate

of expected return, higher is the risk.

Here the risk may be defined as the firm’s ability to lower its


fixed payment obligations. There are three types of leverage

1) Operating leverage

Operating leverage may be defined as the firm’s ability to use

fixed cost to magnify the effect of “change in sales” on

earning before interest and taxes. (EBIT)

For starting of production and after debt for its continuous

development, the firm requires sufficient proportion of

finance and for that the company takes some borrowed

amount. So the leverage associated with the investment

activities is known as operating leverage.

The degree of operating leverage in AECL is as

under:

Operating leverage = Contribution

EBIT

Contribution = sales – variable cost

=2,00,00,000-1,20,00,000


=80,00,000

= 80,00,000

15,00,000

= 5.3

2) Financial leverage

Financial leverage is related with the financial position

of the business. It represents the relationship between EBIT

and EBT. Leverage is the criteria for determining the

operating profit or loss. The financial leverage can be defined

as “percentage return on equity to the percentage return on

capitalization”.

Degree of financial leverage in AECL can be given

as under:

Financial leverage = Earning before interest and

tax

Earning


before tax (EBT)

= 20,00,000

11,00,000

= 1.88


Production and operation management


production process of bearing :-For the purpose to manufacturing bearings company like

“Max Precision bearing Pvt. Ltd.” has to passed into different

phases and also it requires various type of raw material such as

steel, roads, steel bars crca sheets, steel base and part steel etc.

Company manufacturing process basically follow seven stage.

1. Turning of race and roller:-

For the product of bearing at the first stage of the turning

two different raw materials race and roller are turned in required

by size by trained worker. After the process of turning of this are

material it will send for the heat treatment.

2.Heat treatment :-

Under this stage all the race and roller are given heat

treatment through electric finance. But. This process are not

being done a contract of the other firms means the work is given

as a job work.

3.grinding of race and rollers:-


Having completely the above process the third but

preliminary stage of the manufacturing process is griding of race

and roller and other part of race is given shaped through griding

machine.

4. Tapping and super finishing :-

In this stage rollers and race are being checked and if

any race and roller will be defective then it is tapped and handed

but their respective machine.

5. Assembling :-

For assembling of bearings on “Max Precision bearing

Pvt. Ltd.” are their size and quality of bearing are assembling in

their department.

6. Cleaning, oiling and packaging :-

After completing the assembling process.it will go fot

cleaning, oiling and packaging trade mark of max.

7.store and dispatch :-

This is the last stage of production of bearings in this

finished product or desire goods are stored in go-down and per


under of the market of department order from local agent for

whole sellers or dealer bearings will be dispatch and stored to

our transport as per requirement.

As per the requirement in this stage inspection are to be made by

the same on respective machine.

Layout of company


In simple words, layout means arrangement of machine for

manufacturing aproduct. Mainly two types of layouts as

under:-

1. product layout

2. process layout

3. fixed position layout

in “ Max precision bearing Pvt. Ltd.” Company used the

process layout for manufacturing product.

Process layouts, also known as functional layouts,

group similar activities together in departments or work centers

according to the process or function they perform. For example,

in a machine shop, all drills would be located in one work

center, lathes in another work center, and milling machines in

still another work center.


Layout of company:-

Turning of race and rolling

Heat treatment

Grinding of race and rollers

Tapered and super finishing

Assembling

Cleaning and oiling

packaging


Quality management and ISO standard

"Quality is never an accident it is always the result

of high intentions, since effort, intelligent direction and skillful

execution, it represents the wise choice of many alternative" -

willam A. Foster

“Max Precision bearing Pvt. Ltd.” implemented

9001:2008 quality management system and company

continuously investing in fasting up gradation of the designing

manufacturing and measurement process.

Company used different kinds of bearing Steel

confirming to international standard as per customer

specification.

Company have metallurgical lab with required testing


facility where qualified technicians perform material analysis at

various manufacturing stages same equipment for metallurgical

testing’s are.

Pvt Ltd.

micro hardness testers

spectometer

carbon sulphur apparatus

Cost management accounting

Cost sheet of max precision and bearing

Particular amount

Direct material 18,00,000

Direct labour 24,00,000

Direct expense 20,00,000

Prime cost 62,00,000

+ add; workers overhead 5,00,000

Works cost 67,00,000

+ add administration over head 10,00,000

Cost of production 77,00,000

+add selling and distribution cost 20,00,000


Total cost 97,00,000

5. Findings

company has good reputation in market.

“Max Precision bearing Pvt. Ltd.” organized one meeting

Participate management called workes committee, but most of

the employees do not know about that meeting and those who

know about meeting, they unknown about who are that members

of works committee from workers side.

max company provide different types of the facilities to the

employees like provident funds, 30 year's lives per year,

medical facility, dearness allowance, free bus service, free


internet loan, training to the employee, etc. So that employee

get motivation and they will performing well.

6. Suggestions

Employers and workers should agree on the objective of

the industry. They should be recognize and respect the

rights and obligation of each other.

Stronge, enlighted and truly represent trade union should

recognize in each industrial unit to represent the workers.

Workers ans representative should be provided education

and training in the philosophy and process of participative


management. Workers should made aware of the benefits

of participation.

Company should advertise his product in market.

7. Conclusion

As the conclusion I would like to say that “ Max

Precision bearings Pvt. Ltd.” Has a very reputation in the field

of manufacturing of bearings in the national as well as

international market. Ball bearings, the products of the company

being an important part in most of the machine and appliances.

Company has very bright future.

Company’s whole staff is working with the full

responsibility. Company’s workers are not connected with any

union activities so company does not face any labour problems

each workers is satisfied with the facilities provided by the


company and hence, relation between employees and

management are cordial.

8. bibliography

Marketing management :- Philip kotler

Financial management:- khan and jain

Personal management :- C. B. Memoria

Internet website :- max precision bearing pvt. Ltd.

Companies visit reports

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