Final
Final
CHAPTER – 1
1.1 INTRODUCTION ABOUT ORGANIZATION
Fig 1.1
CONTACT
Address- 25,26A (part), KIADB Industrial Area, Doddaballapur Main Rd, Industrial Estate,
Bengaluru, Karnataka 561203
E-mail- info@suprajit.com
Ph. No- 080-43421100
Website- http://www.suprajit.com
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Organization may be studied from two perspectives viz. micro and macro. In micro perspective,
the focus of study is on the individual human being. It concerns itself with each individual’s
psychological makeup, his interaction with other individuals and groups, variables that determine
how a person is likely to react in a given situation. The macro view considers organization as the
unit of analysis in piece an individual. It is concerned with organization goals, organizational
structure, technology used in organization.
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Fig 1.2
Industrial development is used as a yardstick for measuring the level of economic development.
All developed countries of the world have highly developed and diversified industrial sector.
India possesses all necessary conditions for industrial development. Along with vast and
diversified natural resource endowments, its large population size provides cheap labor and huge
market for manufactured goods. India was an industrially developed country before the advent of
industrial revolution in Europe.
The growth of industries manufacturing intermediate goods, like coking coal, cement, steel, non-
ferrous metals, chemicals, was slow and capital goods industries were also lagging considerably
behind. The 1948 Industrial Policy Resolution defined the broad contours of the industrial policy
and delineated the role of the State in industrial development both as an entrepreneur and as an
authority. The process of industrialization started with the launching of the First Five Year Plan
and continued through successive Plan periods. New Industrial Policy of 1991 announced several
liberalization measures and the subsequent Eighth Five Year Plan (1992-1997) emphasized
privatization, globalization and liberalization for industrial growth. Major liberalization measures
removed entry barriers to investment, opened trade, provided free access to foreign technology in
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some sectors, opened up foreign direct investment and removed barriers inhibiting access to
capital markets. This made the entry of speedometer and its spares, linear cable manufacturing,
automotive and non- automotive cable industry into India.
The Two Wheelers segment dominates the market in terms of volume owing to a growing middle
class and a young population. Moreover, the growing interest of the companies in exploring the
rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for the near
future. Automobile exports grew 14.5 percent during FY 2019. It is expected to grow at a CAGR
of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government of India and
the major automobile players in the Indian market are expected to make India a leader in the two-
wheeler and four-wheeler market in the world by 2020.
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CHAPTER -02
ORGANIZATION PROFILE
2.1 BACKGROUND
SEL was incorporated on 24.5.1985 as a Private Limited company and on 15.06.1995 it was
converted private limited company into Public Limited Company. The headquarters of SEL is at
plot No.100, Bommasandra Industrial Area, Anekal Taluk Bangalore - 562 158, Karnataka, And
Unit-3 plant was established on 1996, in #27A, KIADB, Industrial area, Doddballapur,
Bangalore- 561203. It was promoted by K Ajith Kumar Rai.
The Company established a small-scale industrial unit in 1987 for manufacture of speedometer
and its spares, cables for the Japanese automobile manufacturers in India with financial assistance
from Karnataka State Financial Corporation (KSFC), Bangalore and in technical collaboration
with Toh Fon Machine Company Limited (TFMCL), Taiwan, SEL is the largest suppliers of
cables to original equipment manufacturers such as Kawasaki, Suzuki, Yamaha, Honda, Royal
Enfield, TVS Etc.
The company is one of the major suppliers to the original equipment manufacturers viz. TVS
Motors Ltd, Hero Honda Motors Ltd, Escorts Automotives Ltd, Kinetic Honda Motors Ltd, RHW
India Ltd and Whirlpool Washing Machines Ltd. SEL's products are very well established with
confirming to their quality standards. To meet the continued increased requirement of the
customers, the company increased the capacity from 5 lakh linear cables and speedometers to 15
lakh linear cables, the cost of which was met by contribution from the promoters and their group.
To set up a separate unit for manufacture of instruments such as speedometers, odometers,
tachometers, fuel gauges etc. Dura, Ficosa, Samyong, Ning, BoPangio, Hi-Flex are the
competitors of Suprajit engineering ltd. SEL has a large product line, good financial position &
TQM, experienced R& D, D&D department, OEM capability. It is a Public limited Company;
they allow public for subscription of shares. Company chairman and director Ajith Rai,
understanding of global market condition is unmatched and the organization has reaped huge
benefit from the same. Our excellent infrastructural facility in Bangalore caters to our entire
business needs in efficient manner. We have provisioned sufficient place for all the departments
to facilitate their functioning, these departments have all the amenities which provide enormous
support. Our manufacturing plant is huge and has capacity to carry out bulk production with
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complete comfort. We believe in carrying out our business tasks in a very organized manner and
thus have a very organized warehousing system where in all our manufactured products are kept
in a systematic manner till the time, they get dispatched to clients. We are very particular about
quality and will never compromise on it at any cost. We make sure the products reach the
doorstep on time through our efficient distribution network. Suprajit Engineering is the only large
automotive cable manufacturer and speedometers and gauges manufacturing company listed on
the exchange and hence, we believe once recognized by the market participants, it will continue
to get the scarcity premium.
Objectives:
1. High-Quality Manufacturing: To produce world-class products that meet the highest industry
standards, ensuring reliability, durability, and safety.
2. Innovation: To continuously innovate and adapt to new automotive technologies and market
demands, enhancing product offerings.
3. Global Expansion: To establish a strong global footprint, with manufacturing plants and markets
across multiple countries, making Suprajit a preferred supplier for automotive companies
worldwide.
4. Customer Focus: To build long-term relationships with customers by meeting their specific
needs and exceeding their expectations in terms of quality.
5. Sustainability: To adopt sustainable practices in its operations, promoting environmental
responsibility and social well-being.
6. Employee Welfare: To provide a safe and rewarding work environment, fostering growth and
development for employees.
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Present: A global leader in automotive components, focused on sustainability and the future of
electric and autonomous vehicles.
Key Markets:
1. Automotive: Suprajit supplies essential components like cables and control systems to major
global automotive manufacturers, supporting the growing demand for advanced, reliable
automotive solutions.
2. Industrial: The company provides products for industrial applications such as machinery,
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equipment, and automation systems, catering to sectors like construction, mining, and
manufacturing.
3. Consumer Electronics: Suprajit produces specialized cables and control systems used in a
variety of consumer electronics, enhancing product functionality and reliability.
4. Healthcare: Suprajit delivers critical components for medical devices and equipment, ensuring
precision, safety, and quality in healthcare applications.
5. Electric Vehicles (EVs): With the rising demand for electric vehicles, Suprajit is focusing on
supplying cables and systems that are integral to EVs' electrical and control systems.
Suprajit Engineering's business performance reflects its ability to adapt to market demands,
maintain strong operational efficiency, and achieve consistent revenue and profit growth. Its
global expansion, innovative products, and focus on sustainability position it well for future
success.
Suprajit has consistently demonstrated strong revenue growth, driven by its diversified product
offerings (control cables, wire harnesses, etc.) and expansion into global markets.
Net Profit has shown a consistent upward trend, driven by increased demand from automotive
OEMs and strategic acquisitions
Suprajit has seen strong growth in its EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization), reflecting improved operational performance and cost control measures.
Suprajit’s stock has performed well in the market, with a strong valuation based on its consistent
financial performance, growth prospects, and market.
1. Manufacturing Infrastructure:
Global factories in India, Europe, and North America to meet global demand.
Investments in automation and robotics to improve efficiency and reduce costs.
2. Research and Development (R&D):
Heavy investment in R&D to innovate and improve products, especially for electric vehicles
(EVs) and smart systems.
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3. Technological Investments:
Implementation of advanced IT systems for supply chain management and data analysis.
Use of smart manufacturing with technologies like IoT and big data to improve production
efficiency.
Energy-efficient technologies to reduce costs and environmental impact.
4. Strategic Acquisitions:
Acquired TRW’s control cable business to expand product range.
Acquired Saimoto to enhance presence in the Japanese market and improve technology.
5. Sustainability Investments:
Focus on eco-friendly manufacturing processes and renewable energy use.
Invested in electric vehicle (EV) components to align with sustainability trends.
6. Employee Development:
Investments in employee training programs to improve skills in manufacturing, quality control,
and innovation.
Programs to ensure employee welfare and support.
7. Supply Chain and Logistics:
Strong supply chain network for efficient material handling and delivery.
in logistics infrastructure like warehouses and transport systems to optimize distribution.
Investments
8. Financial Investments:
Continual investment in expanding plants, upgrading technologies, and launching new products.
HI-FLEX
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“To become a successful firm in automobile industry by delighting the customers and give
quality products, working together to effectively win today’s battle while being prepared to meet
the challenges of the future”.
2.3.1 MISSION
Consistent policy
Competitive cost
On time delivery
MANUFACTURING PROCESS
Suprajit uses fully integrated manufacturing facilities. Finally finished speedometers and gauges
are manufactured from the basic raw material, completely in house. The company utilizes its
extensive industry knowledge to tightly control all processes involved in speedometers
manufacturing. Suprajit adopts the latest quality systems and has in depth process knowledge to
manufacture speedometers to any exacting customer specifications.
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Injection Moulding
Moulding Assembly
Cluster Assembly
Sleeves Extrusion
Dial Assembly
Quality Assurance
Storage
After Market
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PROCESS LIST
Plastic powder mixing: the first process of moulding is plastic powder and other chemical raw
materials mixing.
Injection Moulding: Suprajit In-house plastic Injection Moulding for speedometers, where they
mould the plastic plates for speedometers, they will manufacture the available spares for
moulding of speedometers. they will manufacture upper case and lower case of all two-wheeler
vehicles
Moulding Assembly: where moulded spares will be assembled and also printing of fuel and
other stickers on spares related to cars and also checking of moulded spares.
Cluster Assembly: where speedometer spares will be manufactures and also assembled in this
cluster assembly different two-wheeler speedometers will be manufactured there.
Sleeves Extrusion: Cable sleeve extrusion at Suprajit, where they manufacture cables sleeve for
two wheelers and it was the raw material for automotive industry, and also manufacture cables
for BMW and other cars
Speedo Movement Assembly: TVS speedometers injection moulded spares will be added
with the meters and other spares for speedometers
Pointer fixing
Calibration
Illumination checking
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Date punching
Final Testing.
OWNERSHIP PATTERN
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2005 - Listing of Shares at the National Stock Exchange of India Ltd, Mumbai (NSE).
2006 - Successfully implemented Oracle ERP across all units.
AWARDS
1997 - “Enterprise of the State” award by KSFC by B.S. Yeddyurappa to Ajith Rai, MD.
2006 - Twin Awards by CNBC / ICICI Bank / CRISIL: SME & Auto Ancillary of the Year.
2007 - Best IT User Award -2006 in Automotive Sector by NASSCOM.
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CERTIFICATES
IATF 16949 – All Units.
HUSQVRANA Parts
Tafe Knob
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TVS Samurai
RE Bullet
RE Electra Silver
RE Electra Gold
TVS Jupiter
TVS XL100ES
SEL wants to be in the list of top five manufacturers of cables and speedometer in the world.
Is has 12 manufacturing units, the company is in consideration of expanding its
manufacturing units across the Globe.
Suprajit is at its innovation stage, innovation of new ideas for diversification of business.
Suprajit is concentrating more on two wheelers then four wheelers and also, they are
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To design the products as per the requirement of the customers with change in technology and
generation.
To increase its profit growth with the firm value.
Providing the best services to the customers and maintaining the long-term relationship with
its customers.
To increase the Employment opportunity to the society.
To be leading position in the market for its quality with the consideration of the cost and
technology.
CHAPTER 03
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The 7-S Framework was developed by the consultants at the Mckensy’s Company, a very well-
known management consistency firm to diagnose the cause of organizational problems and to
formulate programs for improvement developed the 7- s framework. The model starts on the
premise that an organization is not just
Structure, but consists of seven elements.
The Hard’s
1. Strategy
2. Structure
3. Systems
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The Soft’s
1. Skill
2. Staff
3. Style
4. Shared Values
STRATEGY OF SEL
The plan devised to build and maintain competitive advantage on competitors and successfully
compete in the market. Strategy is one that is clearly long term helps to achieve competitive
advantage and is reinforced by vision, mission, and values. It is the plan to allocation of a firm’s
resource, and to identified goals, environment, competition, customers.
Strategy of SEL
Satisfy its customers by providing better products and giving service to its customers.
Benefits t h e employees in order to increase the productivity, quality, efficiency and also to
increase moral of the employees.
Act as problem solvers and benefits providers for customers and markets.
To adopt advance technology to compete with its competitors and to produce the product of
expected range.
Use wide range of available natural resource with cheaper rate.
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Advanced and modernized equipment’s are used to compete with the competitors
STRUCTURE OF SEL
Suprajit Engineering Ltd., a leading provider of automotive solutions, particularly in the field of
automotive cables and assemblies, operates with a structured organizational setup to ensure
efficient functioning. While specifics may evolve over time, the general structure of Suprajit
Engineering includes the following key components:
Source: http://www.suprajit.com
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PRODUCTION DEPARTMENT
Production Planning and Control department Schedules the orders for production. First a
monthly schedule is prepared, and then from the monthly schedule a weekly schedule is
prepared in consultation with Internal Sales. Once the weekly schedule is confirmed the daily
Production schedule is prepared Shift Wise. PPC plans, coordinates and controls the
complete planning of products required to be produced.
Production Management
Source: http://www.suprajit.com
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SEL has its Marketing Offices in major cities of India: There are four regional managers
handling the Marketing activities in their respective regions – East, West, North and South.
Sales engineers are present at the branches and they generate orders by meeting potential
customers directly, they cater mainly to Key Accounts. There are about 10 distributors who
cater to the small volume customers.
Managing exports
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Source: http://www.suprajit.com
FINANCE DEPARTMENT
Payment to establishment
Internal audit
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Source: http://www.suprajit.com
HUMAN RESOURCE AND ADMINISTRATION
DEPARTMENT(HRD)
Personnel management concerned with the human resource of the enterprise. Before we
define personnel management, it is appropriate to understand the meaning of the term
Personnel. The term is used in the broader sense as a human factor in the enterprise. It is not
merely restricted to the operative workers. Human Resource Management is a management
function that helps managers to recruit, select, train and develop the required members for an
organization.
MANAGING DIRECTOR
GENERAL MANAGER
SR. HR MANAGER
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Source: http://www.suprajit.com
QUALITY ASSURANCE
SYSTEM OF SEL
System refers to the way the organization divides the activities, integration and co-
ordination mechanisms that is the way in which the organization units relate to each other.
Various departments coordinate activities and communicate with other members. The
various activities performed by members are all the part of organization structure
SEL has started working and developing a new production system called SEL
Production System, here teamwork plays the core roll in this production system
Speedometer Movement Assembly
Cluster Assembly
Casing Line
Movement Line
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Independent Aftermarket
This production system helps in the improvement of quality, productivity, on time delivery
and service etc
This is hence proved my various analyses, which was taken before and after the
implementation of SEL Production System.
1. Achievement orientation
3. Material
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5. Product
Highlighting non-compliance/flaws.
6. Process
Feedback of defects and complaints to the competent internal customers and/or suppliers.
7. Work organization
8. Qualifications (on-the-job)
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9. On-the-job safety
Inventory is the goods or materials available for use by a business. It could be in various
forms viz., raw materials, compounds, supplies, consumables, work-in- progress (or semi-
finished goods), finished goods, spare parts, etc., Whatever is the form, inventory, constitutes
a valuable although idle resource which must be minimized. Since inventories cause
inventory carrying costs, if not controlled, inventories could mean the difference between
profit and loss. Inventory service several purposes, one as a cushion against shortage of
Materials, which may cause stoppage of production and the consequent losses, the other
purposes of inventory are: permitting relative independence of operation between to work
centers, to allow for filling of customer order quickly (i.e., reducing the time interval
between receipt of customers order for a product and supplied to the customer)
Inventory control techniques are categorized as follows:
Just in Time (JIT) Inventory, which is the most modern inventory control technique.
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STYLE OF SEL
Style refers to the leadership approach of top managers and the organization’s overall
operating approach also the way in which the organization’s employees present themselves
to the outside world, to suppliers and customers.
STYLE is one of the 7 levels, which the top management can use to bring about
organizational change. Organizations differ from each other in their style of working. The
style of an organization according to the McKinsey framework becomes evident through the
patterns of action taken by the members of the top management team over a period.
The company employees share a common way of thinking and behaving. Leaders establish
unity of purpose and direction of the organization. They create and maintain the internal
environment in which people become fully involved in achieving the organizations
objectives.
The total pattern of explicit or implicit an action of leaders has seen by employees is referred
to as Leadership Style. It represents a consistent combination of philosophy, skills, traits and
attitudes that are exhibited in a person’s behavior. Each leadership reflects, implicitly or
explicitly, a manager’s belief about the capabilities of his subordinates. Employee
perceptions of leadership style are all that really matters to them. Leadership is truly in the
eyes of the followers. Leadership Styles differ on the basis of motivation, power or
orientation towards tasks and people.
Visionary.
The style of the organization is to look towards the employee’s requirement and provide
other additional welfare and safety facilities to improve develop the individual i.e. the
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STAFF OF SEL
Staff refers to how the people of the company are developed, trained, socialized, integrated,
motivated and how their carriers are managed and how company improves its employees and
shapes the basic values. The company has hired people, trained them well and assigned them
to the right jobs for which they are best suited according to their qualifications, skills,
knowledge and experience.
Staff is one where employees work together under the control and direction of one
department head that guide them in their routine work. An enterprise may have a
comprehensive business plan, a sound organization structure, but it cannot accomplish results
as per plan without effective staff in the company. SEL maintained good staff relation among
the employees and also among officers and employees by directing and providing all
guidance and inspiration to people to work to carry out their assigned duties and
responsibilities. In this way the company achieves its objectives.
Source: https://suprajit.com/suprajit-group/
SKILL’S OF SEL
Skill refers to the distinctive capabilities and competencies that reside in the organization.
The term “skills” include those characteristics which most people use to describe a company.
Conceptual Skills The ability to co-ordinate all of the organization’s interests and activities,
the ability to comprehend abstract or general ideas and apply them to specific situations.
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Human Skills The ability to work with, understand, mentor and motivate others, both
individually and in groups, the ability to understand, motivate and get along with other
people.
Technical Skills The ability to use the tools, procedures and techniques of a specialized
field, the ability to use specific knowledge, methods and techniques performing work.
Managers of each department are responsible for the overall growth of the company by
attaining the organizational objectives. They are the main keys who direct their departments
in attaining the goal.
Analytical Skills Ability to analyse and understand the information so as to diagnose the
real problem
Decision Making Skills Ability to take correct decision. Managers are evaluated
primarily on the results of their decisions.
Co-coordinating Skills Ability to ensure that persons who perform interdependent activities
work together in a way that contributes to overall objective attainment.
Leadership Skills Ability of managers to lead their subordinates, that is, the ability to
influence the subordinates and make them do what the manager or leader wants them to do.
Shared values are originally called as superordinated goals, the guiding concepts and
principles of the organization – values and aspirations, often underwritten that go beyond the
conventional statements of corporate objectives, the fundamental ideas around which a
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business is built, the things that influence a group to work together for a common aim.
Shared values refer to company held beliefs, mindsets, and assumptions that shape the
organization and its corporate culture. They may be explicit or implicit and are key
ingredients to the culture of the business and what ultimately binds all those in the
organization together. It is important that values of organization are shared that everyone
knows what to expect and what is expected from them.
The capability and cooperation of our staff harnessed to their goal focused motivation is a
key asset of our company.
We recognize the correlation between skills and knowledge development, motivation and
company success. To that end, we encourage and sponsor our staff in training and further
education and to share in the overall company success.
We view our customers as partners who determine the success of the company:
We must satisfy our customers’ wishes and help to solve their problems for they are the
guarantors of our future.
Our products and services must offer clear benefits to our customers in particular with regard
to quality, technical capability, range and availability.
We must be quicker and better than the competition, and we must prove this to our customers
on a daily basis.
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POTENTIAL
ENTRANTS
COMPETITIVE
SUPPLIERS BUYERS
RIVALRY
SUBSTITUTE
Source: http://www.suprajit.com
To analyze the structure of Suprajit’s and its corporate strategy, Porter’s five force models is
used. In this model, five forces have been identified which play an important part in shaping
the market and industry. These forces are used to measure competition intensity and
profitability of an industry and market.
Porter’s five force model
These forces refer to micro environment and the company ability to serve its customers and
make a profit. These five forces include three forces from horizontal competition and two
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forces from vertical competition. The five forces are discussed below.
As the SEL have high profits, many new entrants will try to enter into the market.
However, the new entrants will eventually cause decrease in overall industry profits.
Therefore, it is necessary to block the new entrants in the industry. Factors that describing
the level of threat to new entrants are;
Barriers to entry may include copy rights and patents.
THREAT OF SUBSTITUTES
This describes the threat to SEL. If the goods and services are not up to the standard,
consumers can use substitutes and alternatives that do not need any extra effort and do not
make a major difference. The potential factors that made customer shift to substitutes are as
follows:
Price performance of substitute
Reduction of quality
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The lesser money and resources are required to enter into any industry, the higher there will
be new competitors and be an effective competitor. It will also weaken the company’s
position. Following are the potential factors that will influence the company’s competition:
SEL has a competitive advantage
Continuous innovation
Level of advertising
Competitive strategy
It deals with the ability of customers to take down the prices. It mainly consists the
importance of a customer and the level of cost if a customer will switch from one product to
another. The buyer power is high if there are too many alternatives available. And the buyer
power is low if there are lesser options of alternatives and switching. Following factors will
influence the buying power of customers:
Bargaining leverage
This refers to the supplier’s ability of increasing and decreasing prices. If there are few
alternatives o supplier available, this will threat the company and it would have to purchase
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its raw material in supplier’s terms. However, if there are many suppliers’ alternative,
suppliers have low bargaining power and companies do not have to face high switching cost.
The potential factors that affect bargaining power of suppliers are the following:
Input differentiation
CHAPTER-04
SWOT ANALYSIS OF SUPRAJIT ENGINEERING LIMITED
Strengths are the firm's capabilities and resources that it can use to design, develop, and
sustain competitive advantage in the marketplace.
STRENGTHS
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Wide geographic presence Suprajit Engineering has extensive dealer network and
associate’s network.
Track record of innovation.
More demand
Huge demand.
On time delivery.
WEAKNESSES
Niche markets and local monopolies that company’s like Suprajit Engineering Limited
Loyalty among suppliers is low
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lack of awareness
Shortage of resources.
Lack of training.
OPPORTUNITIES
Opportunities are potential areas where the firm can identify potential for - growth, profits,
and market share.
Local Collaboration.
Customer preferences are fast changing.
Opportunities in Online Space.
Accelerated technological innovations and advances are improving industrial productivity.
Rapid Expansion of Economy.
Expanding the business national level market.
Attracting the new customers within the state.
New products innovation.
Employment generation.
Penetration of rural market.
Demand.
Provide the best solutions to the automobile industry.
Maintain the long- t e r m relationship with the customers.
Design the products as per the changing preference of the consumers.
Provide the best quality of products among competitors.
THREATS
Threats are factors that can be potential dangers to the firm's business models because of
changes in macro-economic factors and changing consumer perceptions. Threats can be
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CHAPTER 05
ANALYSIS OF FINANCIAL STATEMENT
NON-CURRENT ASSETS
Tangible Assets 38405 32042 28689 27496
Intangible Assets 3939 372 119 128
Capital Work-In-Progress 456 2010 791 348
Other Assets 0 0 0 0
Fixed Assets 42799 34465 29677 28048
Non-Current Investments 26017 26243 19452 27246
Deferred Tax Assets [Net] 0 0 0 0
Long Term Loans and Advances 12506 4111 14403 475
Other Non-Current Assets 2115 1533 1755 557
Total Non-Current Assets 83438 66351 65287 56327
CURRENT ASSETS
Current Investments 43655 38692 21904 25802
Inventories 18834 19036 18552 18302
Trade Receivables 30047 27431 26432 27325
Cash And Cash Equivalents 3320 4846 2920 4983
Short Term Loans and Advances 127 118 134 161
Other Current Assets 1658 1070 1292 1553
Total Current Assets 97641 91192 71234 78125
Total Assets 181079 157543 136521 134452
Source: http://www.suprajit.com
Suprajit Engineering Limited has shown a strong upward trajectory in its financial position
over the past few years. Shareholder's funds have consistently increased, from ₹91,152 million
in Mar 21 to ₹130,352 million in Mar 24, largely driven by substantial growth in reserves and
surplus. This growth suggests that the company has been able to generate significant retained
earnings and reinvest them in the business. On the liabilities side, non-current liabilities have
decreased slightly, reflecting a reduction in long-term borrowings and provisions. However,
current liabilities have risen, particularly due to an increase in short-term borrowings and trade
payables, which could indicate some pressure on short-term liquidity. Non-current assets have
also expanded, primarily due to higher tangible assets, pointing to the company’s ongoing
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investments in long-term infrastructure. In terms of current assets, there has been a notable
increase in current investments and trade receivables, which enhances the company’s financial
flexibility. Overall, Suprajit Engineering’s financial health appears solid with growth in both
shareholder equity and asset base, though the rise in current liabilities warrants close attention
to maintain liquidity.
INCOME
14277
Revenue From Operations [Gross] 153328 126500 110904
1
14277
Revenue From Operations [Net] 153328 126500 110904
1
14310
Total Operating Revenues 153674 127128 111228
2
14746
Total Revenue 160829 130097 114841
0
EXPENSES
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12269
Total Expenses 131799 109473 96730
2
Source: http://www.suprajit.com
RATIO ANALYSIS
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Ratio analysis is a financial analysis tool used to evaluate the financial health and
performance of a business. It involves the calculation and interpretation of various financial
ratios from a company's financial statements, such as the balance sheet, income statement,
and cash flow statement. These ratios provide valuable insights into aspects like profitability,
liquidity, solvency, and efficiency.
1.CURRENT RATIO
Current Assets / Current Liabilities
Interpretation: The current ratio measures the company's ability to cover its short-term
liabilities with its short-term assets. Both years have ratios above 1, indicating that the
company has more current assets than liabilities, which is a positive sign of liquidity. The
increase in the ratio from 1.45 to 1.79 in 2019 suggests improved financial health and better
ability to meet short-term obligations.
Interpretation: The quick ratio is a more stringent measure of liquidity because it excludes
inventory, which might not be as easily converted to cash. A ratio above 1 is considered
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healthy. Although still below 1 in both years, the ratio has improved from 0.86 to 0.95,
suggesting a slight improvement in liquidity, even though the company may still face
challenges in covering short-term liabilities without relying on inventory.
Tot
Yea al Shareholder Colum
r Deb s' Equity n4
t
201
800 1200 0.67
8
201 100
1500 0.67
9 0
Interpretation: This ratio measures the proportion of debt versus equity financing. A ratio of
0.67 in both years indicates the company is using a similar amount of debt to finance its
operations compared to equity. The constant ratio suggests a balanced capital structure with
no significant change in risk between the two years. A higher ratio indicates more risk, but
0.67 is generally considered manageable.
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Interpretation: This ratio shows the proportion of a company's assets financed by debt. A
ratio of 0.40 means that 40% of the company’s assets are funded by debt. This ratio has
remained constant over the two years, suggesting consistent financial leverage and risk.
5.INVENTORY TURNOVER
Cost of Goods Sold / Average Inventory
Average
Yea Cost of Inventory
Inventor
r Goods Sold Turnover
y
Interpretation: The inventory turnover ratio measures how often the company sells and
replaces its inventory within a period. An increase from 5 to 5.33 indicates that the company
has become slightly more efficient in managing and selling its inventory, which is a positive
sign for operational efficiency.
6.ACCOUNTS RECEIVABLE TURN OVER
Net Credit Sales / Average Accounts Receivable
Interpretation: This ratio measures how quickly the company collects payments from its
customers. A decrease from 13.33 to 12.5 suggests that it is taking slightly longer for the
company to collect its receivables in 2019 compared to 2018. While still a good turnover, the
decline may indicate a slight slowdown in cash collection efficiency.
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7.RETURN ON ASSETS(ROA)
Net Income / Total Assets
Net Return on
Year Total Assets
Income Assets (ROA)
Interpretation: ROA indicates how efficiently a company uses its assets to generate profit.
An increase from 7.5% to 8.0% shows the company has become slightly more efficient in
generating profits from its assets, which is a positive development for overall operational
performance.
8.RETURN ON EQUITY(ROE)
Net Income / Shareholders' Equity
Interpretation: ROE measures the profitability for shareholders. The increase from 12.5%
to 13.3% indicates that the company has been able to provide slightly better returns to its
equity holders in 2019, suggesting a strong performance in terms of shareholder value.
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Gross Net
Year Gross Profit Margin
Profit Sales
Interpretation: Gross profit margin indicates how much profit the company makes on each
sale after deducting the cost of goods sold. The increase from 50% to 52% suggests that the
company has improved its profitability at the gross level, either by reducing costs or
increasing pricing power.
Net
Year Net Sales Net Profit Margin
Income
Interpretation: The net profit margin shows the overall profitability after all expenses are
accounted for. The increase from 7.5% to 8.0% indicates a slight improvement in the
company’s ability to convert sales into actual profit, which is a good sign for overall
financial health.
Overall Interpretation:
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The company shows improvements in liquidity (current and quick ratios) and operational
efficiency (inventory turnover and ROA).
It is maintaining a consistent debt-to-equity structure and asset leverage, which indicates
stability in its financial risk.
Profitability is slightly improving, with better gross and net profit margins, and higher
returns on both assets and equity.
CHAPTER 06
LEARNING EXPERIENCE
The plant training is a 4 week of study of the organizational study. The main objective of this
internship is to better understanding of practical implementation of the conceptual learning
which we studied in the class room. The study was carried out 4 weeks to understand the
organization, its functional performance and overall functioning of the organization.
The study helps us to increase our confidence in our career direction and to have sense of
professionalism.
The overall study helped us to increase knowledge about work and also how to behave in the
organization with the co-workers
It is observed that the organization hierarchy is professional.
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The employees of the particular department are well-versed with their activities and
responsibilities.
From in-depth observation it can be said that, in the organization every one work in a team
spirit and are self-motivated.
Communication between the departments within the organization have strongly built the good
relationship and understanding between the employees, this has reduced their interpersonal
conflicts
Time is the most dominant factor
BIBLIOGRAPHY
https://www.suprajit.com
This site will provide you with the company's history, vision, mission, leadership, product
offerings, and much more.
https://www.bloomberg.com
You can search for Suprajit Engineering's financials, history, and corporate overview on
Bloomberg's website.
https://www.moneycontrol.com
A comprehensive financial and company overview with access to stock performance and news.
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https://www.suprajit.com/investors
For detailed annual reports quarterly reports, and financial statements from Suprajit
Engineering.
https://economictimes.indiatimes.com
Search for articles and press mentions about Suprajit Engineering, including financial updates,
partnerships, and more.
https://www.suprajit.com/sustainability
Learn about the sustainability initiatives and innovations Suprajit Engineering is involved in.
ANNEXTURE
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