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Dispatch: -
It is a segment busy in taking couriers from other institutes or
companies. After getting such couriers other client related things, they will
inform concerned clients to get it.
Mutual funds and IPO: -
Here, activities related to mutual fund takes place. If any
customer wants guidance about investment in mutual funds, this department
will guide him and will also tell about procedure of investment in mutual funds.
MSFPL is a corporate agent of Birla Sun Life, ICICI and Frankline, TATA
Mutual Funds.
IPO means Initial Public Offer. Information taken from computer
on line by the staff of this department will enter into their own handled
computer. MSFPL is a member of collection center.
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Server room: -
All kind of server like BSEs servers and NSEs servers,
depository server, computer accounting servers are kept here and the
procedure regarding all servers is starting from here.
Accounts: -
Mr. Sureshbhai and Mr. Vithlanibhai handle this department. All
the accounts regarding work are done here. All the monitory transactionsentry is passing out and secured here. In other meaning all the finance related
activities are done here. All the decisions regarding allocation or
transformation of funds are taken here. This department also sees the records
of bank related transactions, bank related transaction, and bank balance and
statements are also prepared.
H.R. Administrations: -Activities related to H.R.Administrations are done here. It is
handled by Mr. Akshaybhai (Head of H.R.) with Mr. Kumarbhai and Mr.
Rajeshbhai. Activities regarding employees work like, new policy planed for
employee, wage and salary administration, project work, manpower planning
is completed here. Head of H.R. tries to enforcing discipline on the basis of
co-operative understandings and a human application of rules and regulation.
Commodity back-office: -
Accounts regarding commodities billing receivable and payable
are kept here.
Other activities regarding commodities trading like if any clients has
made deal of any commodities. Procedures related from and payment and time
limitation and all other are done here. And this department will further guide clients
for next procedure of commodities trading
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Commodity Back-office: -
Here all the staff members who are having concerned withcommodities marketing get to gather and they planed out for new strategy andfor new project final decisions have been taken by them and some times, ifneeded they people are also calling clients for such meetings. Thisdepartment is especially for commodities market members.
Trading: -
There are main tow types of trading normal trading and F&O
(Future and Option market) trading so all the trading accountings are
controlled over here. Such trading is divided into two parts i.e. NSE and BSE.
Clients can deal here for trading contract, new accounting opening, pay-in and
pay-out. For such trading all have to follow SEBI (Securities and Exchange
Board of India) rules.
Settlement Department: -
This department deals between clients and exchange. Clients
can debit or credit their bill here. Other transactions regarding billing of NSE
and BSE are done here.
Commodity trading: -
As in other trade, client can trade in commodities with the code
by filling the form for commodities to open an account with MSFPL by filling up
the account opening form, and deposit. There is no element of risk of anycompany. Trading of any commodities like gold, silver, Kapas, Soya oil, castor
seed is done here. All the procedure regarding such trading is also done here.
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F&O Back-office: -
This is also called derivative market. It has been started in India
in the year 2002. According to this market, trading can be possible in national
and Mumbai stock exchanges. Future means any script or shares, which arelisted in F&O. such shares will purchase or sell at decided price in limited
period. Future trade has still not got delivery base trading permission.
Options are of two types. Call option and put option.
Call option means the right of any derivates listed security to
purchase any derivates securities in limitation of time. Put option means a
right to sell any derivates securities in decided time. NSE and BSE have
derivates market and MSFPL is the member of both markets.
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D.P. Back-office: -
The work of DP- Back office is to check activities of front office,
this department sees whether DRF (Demat Request Form) for demat account
opening has been fill-up correctly or not. If required to change detail of bank
transaction. This department as name suggested not comes directly into
contact with customer. In brief a process, which has started from DP-Back
office, will have been completed over here.
Compliance: -
This department stays directly in contact with higher authorities
(SEBI and other big companies). This department recorrects mistakes which
are done while opening of demat account. If there will be mistake, this
department will point out and reported to SEBI.
Software: -
As MSFPL is engaged in share related activities, It becomes
necessary to have different; software for all different procedures like, trading
and price listing, data entry and so on. Such procedures become easy by
using soft wares. Such types of software maintain and handled over here, as
we know day-to-day technologies are changing so this department also
keeping into considers that thing also. Therefore new soft wares aredeveloping and old can be modifying over her.
Hardware: -
Computers join the whole network of MSFPL and branches only.
All work related hardware is handled carefully over here. If any fault find by
any employees in theirs computer, immediately they will call this department
and this department will solve those problems. So instead of waiting foroutsider person for solution, here in MSFPL only problems can be solved.
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Dispatch: -
Activities regarding bill and contract of IPO are done here also. If
any clients demand for any statement (day to day, weekly, monthly), this
department will provide them those statements. Here, if any client gets anycouriers, this department will send it to the concern clients. First this
department gets work from other department like trading and so on.
Store: -
Stationary stocks are kept over here and other inventories are
also kept over here only.
MAIN SERVICESOFFERED BY
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M.S.F.P.L.
Trading services: -
It is the service based on computer system. This service is offered
entirely on line in the computer. It is compulsory for clients to come at office and
then they can have trading. First they have to login in computer. For example, if
client wants to trade in NSE (National Stock Exchange), they will come at
concerned office and on screen price of shares can be seen and it get change on
every time. Now client knows increase and decrease in the price of shares. So,
he will decide in which companies share he wants to trade means purchasing and
selling of shares. The numbers of companies are limited over here.
Net services: -
To get this service, customers or clients dont need to come at the share
broking office but they can have it in their own computer screen. Such services
are also provided by net. It be can use only for registered clients. Deposit is done
here. First they have to enter their password and they can up date theirinformation on their computer screen. To update data on regular bases one can
use it, mean it is useful for the person who has daily trade in stock exchange. And
other benefit is that clients can have this information regarding trade at any time
and anywhere they want.
Commodity derivatives: -
It is the recently started service by MSFPL. MSFPL is the participant of
NCDEX and MCX (one of the stock exchanges). MSFPL has separated
department for commodity derivatives. MSFPL has also departments like,
commodity back office, commodity trading. Here the contracts of the commodity
like gold, silver, rice etc. are completed.
Demat services: -
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DEMET mean Dematerialization of shares. MSFPL is the
participant of NSDL (National Securities and Depository Ltd.). And it is the
agreement between clients and D.P. (Depository Participant).
To open a demat account thing which are required like
photograph of concerned clients, current proof and residential address of
clients. The changes are taken considering scheme charges. Scheme charges
include life time for which client has to pay 4000 to 10000. To open demat
account, opening kit will also be required like trade book etc. first, client have
to fill up DRF (Demat Request Form)
Cash segment: -
In NSE, BSE and other state level stock
exchanges (Saurashtra stock exchange and Ahmedabad
stock exchange) on the daily delivery based purchasing and
selling of listed shares or square up have been done and it is
called CASH MARKET. In this market, the load of market will
be in the single number. Rolling settlement, daily settlement
and purchasing and selling of bonds and debentures could
also take place over here.
Mutual funds: -
A Mutual Fund is a pool of money collected
from investors and is invested according to stated investment
objectives. Mutual Funds investors are like share holders andthey own the fund. Mutual Funds investors are not lenders or
deposit holders in a Mutual Funds. Every body else
associated with Mutual Funds is a service provider like
MSFPL, who earns a fee. Mutual funds invest in marketable
securities according to the investment objective. SEBI
(Securities and Exchange Board of India) got regulatory
powers in 1992. Mutual Funds themselves pay no tax on the
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incomes they earn. They are fully exempt from tax. Agents
can sell products of multiple mutual funds.
MSFPL is a corporate of Mutual Funds provider
companies like, Birla Sun Life, ICICI, Frankline and TATA.
They have separate department regarding Mutual Funds at
first floor of MSFPL building. It provides services regarding
Mutual Funds investment. This department is also giving
information regarding guidelines and procedures of investing
money in Mutual Funds.
FUTURESERVICES
Private banking sector.Private banking sector.
Forex market.Forex market.
Commodities demat service.Commodities demat service.
Product enhancement in commodity market.Product enhancement in commodity market.
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STAFF
MANAGEMET
DEPARTMENT
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INTRODUCTION
According to flippo, personnel management or
Human Resources Management is the planning, organizing,
directing and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of
human resources to the end that individual, organizational
and societal objectives are accomplished.
Personnel management involves the task of
handling the human problems of an organization and is
devoted to acquiring, developing, utilizing and maintaining an
efficient work force.
Human resources management cannot be
separated from the basic management function. Human
resources are heterogeneous, dynamic, and have immense
potential. The scope of H.R.M. is very wide; it covers labor,
welfare and industrial relations aspects. H.R. Managers do
not manufacture or sell goods but they do contribute to the
success and growth of an organization by advising theoperating departments on personnel matters. Human
resources management is concerned with employees as
individuals as well as groups. It is the task of dealing with
human relationships within an organization. It is the process
of achieving the best fit between individuals, jobs,
organizations and the environment. It is the process of
bringing people and organization together so that the goals of
each are met. Human resources are most important element
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in an organization. The effective utilization of all other
resources depends upon the quality of human resources.
Without united human efforts no organization
can achieve its goals. All the activities of an organization are
initiated and completed by persons who make up the
organization. Therefore people are the most significant
resource and it is the most important factor of production.
VIEWOF HEAD
OF H.R.MANAGER
According to me, H.R. Manager should identify
what human is? And their wants and desire to the
organization. If a person who can identify this much bitterly,
he or she is able to be a manager of human resources. They
should have some basic principles like
Co-ordination of work andCo-ordination of work and
employeesemployees
Highly motivation to employeesHighly motivation to employees
Positive attitude towardsPositive attitude towardsemployeesemployees
Team workTeam work
Individual and group efforts must be effectively
utilized by providing suitable work opportunities. Our
organization i.e. MSFPL is working on these four principles.
We are here, in MSFPL providing best corporate culture to
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our staff. Here, we have a young and educated staff and
advance technology in the field of finance. These two main
factors make our organization unique than others. We are
already providing good working condition as well as best
equipment to our employees. So, employees can work
smoothly and firm can get maximum output from their
employees side. In MSFPL, we have improved system of
working. We are also planning to give better training to or
employees, which improve competency and skill audit in staff
members.
GUIEDLINES
FOR MSFPLSEMPLOYEES
Guidelines are pre-determined course of action
established to guide the performance of work towards
accepted objectives. Any firms have their own objectives and
to achieve those objectives, some pre-programme and pre-
planning required what we called policies such programme
refers to a plan of action. It includes time period within which
the task is to be completed and the way resources are to be
utilized appropriate policies and programmed can be helpful
in future whenever some problems arise
MSFPL has good and intelligent number ofemployees, but they believe that to have certain guidelines is
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good for firm as well as employees. Some guidelines are as
under.
They believe that employees should treated as a partner,
because they should have all liberty to present their views
and idea for the development of firm and if they have their
own problems, they can present that problem also and if
head of H.R. identify reasonable, he tries to solve it.
If employees found good and dedicate in their work. Head
of H.R. tries to give them promotion and by this way they
are providing opportunities to each and every employees
of MSFPL.
There is no any scope of dispute in MSFPL due to their
good working system but if any problem arises related to
any personal demand of employee, head of H.R. thinks
over it and if needed, after giving two or three notices,
employee is supposed to leave firm.
MSFPL cannot change their working conditions. So if
employee wants to change it, he might to leave institutes.
If any employee wants to take leave for some days, he
has to fill up the leave application form.
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RECRUITMENTAND SELECTION
RECRUITMENTRECRUITMENT
According to flippo Recruitment is the process
of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.
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Recruitment is a positive function as it seeks to
develop a pool of eligible persons from which most suitable
ones can be selected.
Recruitment is pervasive functions as all
organization engages in recruiting activity. But the volume
and nature of recruitment varies with the size, nature and
environment of the particular organization. Recruitment
methods or techniques are the means by which an
organization establishes contact with potential candidates,
provides them necessary information and encourages themto apply for jobs. The nature and extent of the recruitment
programme should be so designed as to employment
opportunities for its employees on a long-term basis so that
the goals of the organization should be achievable; and it
should develop the potentialities of employees.
SELECTION: -SELECTION: -
Selection is the process of choosing the best
out of those recruited. Recruitment is positive as it aims at
increasing the number of applications for wider choice or for
increasing the selection ratio. Selection is negative, as it
rejects a large no. Of applicants to identify the few who are
suitable for the job. Recruitment involves prospecting or
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searching where as selection involves comparison and
choice of candidates.
The purpose of selection is to pick up the right
person for every job. Selection is an important function as no
organization can achieve its goals with out selecting the right
people.
RECRUITMENTAND SELECTION
PROCESS
In MSFPL, recruitment and selection process
taking place like in other firms. There are few steps for
recruitment and selection procedures. Lets see one by one.
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(1) Recruitment process begins when personnel department
receives requisition for recruitment from department of the
MSFPL. This requisition contain details about the position
to be filled, number of persons to be recruited the duties
to be performed, qualification required from the candidate,
terms and conditions of employment and the time by
which the persons should be available for appointment
etc.
(2) If head of H.R. found it to be failing, he decides the
sources of recruitment to be used like newspaper,
consultancies or by using reference of other employees in
MSFPL.
(3) After deciding sources, he will put into a practice and the
prospective employees will inform to send their
applications.
(4) After getting application, selection procedure gets started.
They will scrutinize those applications and suitable person
will ask for interviews and rest of applicants will be
rejected.
(5) Now, Executives and head of concern department etc will
take the interviews.
For this financial service provider firm a person
with MBA (finance) and if he or she has passed any other
exams of NSE and BSE, He or she has more chances for
job. Other factors like past experience and age are also
considered at the time of selection.
INDUCTION ORORIENTATION
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Orientation programmed usually cover things
like employees compensation benefits, personnel policies,
the employees daily routine, company organization and
operation, and safety measures and regulations. Orientation
or induction is, the process of receiving and welcoming an
employee when he first joins a company and giving him the
basic information he needs to settle down quickly and happily
and start work. Induction helps minimize what might be
called the reality shock some new employees undergo. This
reality shock is caused by the incompatibility between what
the employees expect in their new jobs and realities.
When a new employee joins an organization,
he is completely a stranger to the staff, work place and the
work environment. Therefore, he is likely to feel insecure, shy
and nervous. In the absence of information and support
these are likely to be anxiety and fear in his mind. In MSFPL,
when any new employee is going to join an organization, first
of all he or she is introduced to all his or her concern
department staff members and at the same time he or she
will be given a brief view about MSFPL. Here, there are two
persons who introduce to the new employee. First, head of
concern department and second a person who has resigned
the job. The task of Head of Department is to make
employee familiar with organization and a person who have
resigned a job will guide newcomer how he or she is
supposed to finished task etc. so for new comers in MSFPL
has induction period about 4 to5 days. But again it is
depends upon job. If job is high, it might take much time than
other job.
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TRANSFER AND
PROMOTION
TRANSFERTRANSFER
Transfer is a horizontal or lateral movement of
an employee from one job, section, department, shift, plant or
position to another at the same or another place where hissalary, status and responsibility are the same. It generally
doesnt involve a promotion, demotion or a change in job
status other than movement from one job or place to another.
Transfer may be initiated either by the company or the
employee. A company may initiate a transfer to place
employees in positions where they are likely to be more
effective. Similarly, employees may initiate transfer to
locations where they are likely to get greater satisfaction.
In MSFPL, transfer of employees happens in
rarely case. Here generally, positive transfer takes place.
Means if any employee wants to transfer from one branch to
another one, they can do such. Except such cases transfer
doesnt happen in MSFPL.
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REWARDS &INCENTIVES
An incentive scheme is a plan or programs to
motivate individual or group performance. An incentive
programme is most frequently build on monitory rewards
(incentive pay or a monitory bonus) but may also include a
variety of non-monitory rewards or prizes. Incentive refers to
performance-liked compensation paid to improve motivation
and productivity of employees. Incentive plans are designed
to improve productivity and to secure better utilization of
human and material resources of the enterprise.
Classification or types orClassification or types or
rewardsrewards
INTRINSIC REWARDS
Intrinsic rewards are those an individual
receives for himself. They are largely a result of the job that
the worker does. Intrinsic rewards are given to satisfy internal
needs of employees. Such intrinsic rewards include greater
job and freedom, more responsibility and soon.
In MSFPL, intrinsic rewards such as
participation in decision-making, opportunities for personal
growth (communication skill classes and personality
development, good working condition, visit on hotels like
CHOWKI-DHANI and so on.
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EXTRINSIC REWARDS
Extrinsic rewards are those rewards, which are
visible and external and have certain monitory or ego value.
These rewards can be in monitory and non-monitory terms.Such as, Basic wage or salary, bonus (9%), P.F. (24%),
E.S.I. (6.5%), overtime and holiday premiums are given to
the employees of MSFPL as a monitory benefits, Preferred
lunch hours, preferred work assignment, impressive job titles
and preferred office furnishings are given to the employees
as a non-monitory benefits.
TRAININGRETRAINING
&DEVELOPMENT
TRAININGTRAINING
Training is any process by which the aptitudes,
skills and abilities of employees to perform specific jobs are
increased. Training is a short-term process utilizing a
systematic and organized procedure by which non-
managerial personnel learn technical knowledge and skills
for a definite purpose. Training involves helping an individual
learn how to perform his present job satisfactorily. Training
enables an employee to adapt to changes in work procedure
and methods. Trained employees can perform better and
thereby earn more.
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Here, in MSFPL, there are many types of
trainings are given to their employees. Such training
includes, technical training which local trainer gives.
They are also planning for executive training for
upper level persons. For that they are interacting between some
consultancies. So, in future there will be executive training for
MSFPLs executives.
RETRAININGRETRAINING
Retraining is the process of providing training to
persons who underwent training earlier in their job.
Retraining programmers are generally arranged for
employees who have long been in the service of an
organization. Sometime due to technological changes some
jobs may become unnecessary employees working on suchjobs are retrained for other jobs.
As in MSFPL there is a need for knowledge and
as we know technologies are changing day to day, so
MSFPL has to be aware about new emerging technologies
and if required there will be training programme arranged by
MSFPL. Such training programmers can be conduct any time
and when required.
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excellence in matters pertaining to his present job and his
potential for a better job.
Performance appraisal provides valuable
information for personnel decisions such as pay increases,
promotions, demotions, transfers and terminations. It helps to
judge the effectiveness of recruitment, selection, placement
and orientation systems of the organization.
Thus, performance appraisal serves as the
vases of suitable personnel policies.
Performanceappraisal form
Name of Employee:-
Department: - Designation:-
Qualification: - DOJ:-
Experience: - Present: - Past: - Total:-
SR. Creterias for Rating Marks Mark Obtained
1 Quantity of Work 10
2 Quality of Work 10
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3 Job Knowledge 10
4 Initiative and Innovativeness 10
5 Analytical Ability (Problem
Solving Ability)
10
6 Attitude and Behaviour 10
7 Communication Skill 10
8 Cost Consciousness 10
9 Discipline/Punctuality/ HouseKeeping
10
10 Ready to take new
Responsibility
10
Excellent: - 86-100 Average: - 51-65
V. Good: - 75-85 Poor: - below 50
Good: - 66-74
____________________
Name & Sign of HoD
MAN POWERPLANNING
It is the process by which a managementdetermines how an organization should move from its current
man power position to its desired manpower position.
In the word of Stainer,Man power planning is
the strategy for the acquisition, utilization, improvement and
preservation of an organizations human resources. It is
aimed at coordinating the requirements for and the
availability of different types of employees.
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Manpower planning is a double-edged weapon,
if used properly. It deals to the maximum utilization of human
resources. Reduces excessive labour turn over and high
absenteeism; improved productivity and aids in achieving the
objectives of an organization. Therefore, for the success of
an enterprise, manpower planning is a very important
function for individual. It is important because it helps him to
improve his sills and utilize his capabilities and potential to
the utmost. The objective of manpower planning is to
maintain and improve the organizations ability to achieve its
goal by developing strategies that will result in optimum
contribution of H.R.
Manpower planning consists in projecting future
manpower requirements and developing manpower plans for
the implementation of the projections. Manpower plans can
be long-term or short-term. Long-range plans are prepared
for a period of five years or more on the basis of trends in the
economy, labour market and production. These reflect
management thinking on the organization structure, business
environment and personnel polices. Short-term manpower
plans cover time periods ranging from one year to less than
five years. These are concerned with filling existing jobs.
Long range and short range plans are complementary to
each other.
In MSFPL, there are some predefined policies for
employees but whenever needed, they call upon all executives and
employees of H.R. department and plane out for new policies and for
man force requirement.
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FINANCE
DEPARTMENT
INTRODUCTIONTO FINANCE
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The finance function covers both acquisitions of
funds as well as their allocation. Thus apart from the issues
involved in acquiring external funds, the main concern of
finance manager is the efficient and wise allocation of funds
to various used Defined in a broad sense. It is viewed as an
integral part of over all management. To make wise
decisions, a clear understanding of the objectives are sought
to be achieved, is necessary. The objectives provide a
framework for optimum financial decision-making. It implies
what is relevant is not the overall objectives or goals of a
business but an operationally useful criterion by which to
judge a specific set of mutually interrelated business
decisions, namely, investment, financing and dividend policy.
The responsibilities for finance managers are
spread throughout the organization in the sense that finance
management is to an extent an integral part of the job for the
managers involved in planning, allocation of resources and
control. Financial management is highly specialized in nature
and is handled by specialists. Financial decisions are of
crucial importance. It is, therefore, essential to set up an
efficient organization for finance management functions. The
job of the chief financial executive does not cover only
routine aspects of finance and accounting. As a member of
the top management, he is closely associated with the
formulation of policies as well as decision-making.
VIEWOFFINANACE
MANAGER
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It is the responsibility of finance manager to
plane properly to a given resources. It includes allocation and
control of such resources. Specialists should handle
Financial only because money is very much important for any
institution. If money gets lost, firm will be no more. The other
thing, which I believe is that decision plays vital role
especially in the case of finance, it depends upon finance
managers that how rightly and how speedily they take
decision. Here we are in MSFPL, more concentrates onrising of funds and proper utilization of funds. We have a
clear understanding of our objectives, which is very much
needed. If any need arise for money we have overdraft
facilities in bank.
Here, we have not any cash revenue but for
expenses we are using direct cheque or payment by bank.
We are also preparing accounts (statements) and finalize it.
We cover routine aspects of financing and accounting.
In MSFPL, finance managers have generally
the major responsibility is to prepare accounts and to allot
money properly. The information contained in these
statement and reports assist finance manager in assessing
the past performance and future directions of the firm. Hence
here, accounting and finance function are closely related with
each other.
Finance manager consistently developed and
interprets data on past performance.
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FINANCIAL
PLANNING
Financial planning is a primary function of the
management. It is an executive function of financial
management. Finance manager has to make plane for
investment, borrowed capital funds, and resources of
acquiring money. Financial planning should be match with
top managements decided plane. Plane should be formatted
in such a manner that it can be used whenever firm wants to
expand or develop its business.
Finance manager also consider other
managers of various department like marketing, production
and H.R. manager. Finance managers should ensure that
funds are properly utilized. From where company will get
finance and how it will utilize, its return on investment, risk
factor of investments.
In the procedure for financial planning, first step
is to analyses the part performance of the firm in terms of its
financial strengths and weaknesses. The next step is to
determine the objectives. After deciding objectives, need for
investment to achieve those objectives. Based on its
investment needs and alternatives are selected. Now the
time comes for decide and procurement of funds. At last
financial planning analyses whether it will long term beneficial
to firm or not.
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CAPITAL
STRUCTURE
The objective of the firm is to maximize the
value of the equity shares. The firm should select a financing
capital structure, which will help in achieving the objective of
financial management. The capital structure should be
examined from the viewpoint of its impact on the value of the
firm. A firm should select such a financing mix as will
maximize the shareholders wealth. Such a capital structure
is referred to as the optimum capital structure.
The theory of capital structure that show the
theoretical relationship between the employment of debt and
the return to the shareholders. The use of debt implies a
higher return to the shareholders as also the financial risk. A
proper balance between debt and equity to ensure a trade-off
between risk and return to the shareholders is necessary. A
capital structure with a reasonable proportion of debt and
equity capital is called the optimum capital structure.
Financing decision is the determination of an appropriate
capital structure given the facts of a particular case.
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CAPITALIZATION
AND ITSTHEORY
UNDER CAPITALIZATION &UNDER CAPITALIZATION &
OVER CAPITALIZATIONOVER CAPITALIZATION
According to Shri M.C. Shukla, capitalization is
the sum total of all kinds of ling term securities issued by a
company as well the surpluses which are not meant to be
distributed.
Lillin Doris says, capitalization, means the total
accounting value of the capital stocks, stocks, surplus in
whatever form it may appear and funded long-term debt.
In the simple meaning capitalization can be defined
as sum total of all kinds of long term securities at their par values.
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If capitalization of a company is equal to its capital requirements, it
will consider to be properly capitalized. If it is more than required
due to full in profit per share will not consider fair. And at the same
time if capitalization is less than required, it is not desirable.
Under capitalization and over capitalization is
two different things, but it becomes easy to understand if we
elaborate it; this both aspects includes main tow things one is
capital and other is rate of return. In simple words, if capital
employed is proportionally more and its rate of return is low.
Its called over capitalization. Where as capital employed is
proportionally less and rate of return is high its called under
capitalization.
Lets see one by one briefly.
UNDER CAPITALIZATIONUNDER CAPITALIZATION
Gerstenberg says, A corporation may be undercapitalized when the rate of profit is exceptionally high in
relation to the return enjoyed by similarly situated companies
in the same industry or it has too little capital to conduct
business.
Under capitalization implies an effective
utilization of finance, a high rate of dividend and the
enhanced price of shares. The capital employed in business
is less compared with its requirement. Here the rate of return
will be higher than a firm is able to afford. Here, real value of
shares is greater than book value, which indicated under
capitalization.
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Hence, in simple words we can say that if any firms
proportion of shares employed in business is less and rate of return is
high it will be called under-capitalization.
OVER CAPITALIZATIONOVER CAPITALIZATION
When firms earning are not large enough to
yield a fair return on the amount of its issued securities and
long term borrowing is called over capitalization.
As we have seen that in under capitalization on
the capital employed was underestimated and return was
high. Here in over capitalization due to over estimation the
proportion of capital will be more compared to its rate of
return. Such estimating leads to overcapitalization. So it
indicate that the under utilization of existing capital as against
under capitalization, the real value of shares will be less than
its book value.
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According to Shri M.C. Shukla, capitalization is
the sum total of all kinds of ling term securities issued by a
company as well the surpluses which are not meant to be
distributed.
Lillin Doris says, capitalization, means the total
accounting value of the capital stocks, stocks, surplus in
whatever form it may appear and funded long-term debt.
In the simple meaning capitalization can be
defined as sum total of all kinds of long term securities at
their par values.
If capitalization of a company is equal to its
capital requirements, it will consider to be properly
capitalized. If it is more than required due to full in profit per
share will not consider fair. And at the same time if
capitalization is less than required, it is not desirable.
COST THEORY
This theory is useful for new established
company. Sum of the costs to be actually incurred on fixed
assets, current assets and promotional expenses in setting
up the business is regarded as capitalization. According to
this theory more emphasis is laid on current investments and
dont have any direct relationship with the future earning
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capacity. But limitation f this theory is that it doesnt provide
basis for capitalization for an existing company. It is possible
that book value of some of its assets may not be real,
because it will not show right price. If they are purchased at
higher prices, their actual market prices.
Another limitation is that it will not present right
picture because. If fixed assets stand idle, it become obsolete. So
earning will be lower than what proprietor has expected.
EARNING THEORY
The major goal of every organization is to earn
profit. This will be earned in future by firm. Capitalization by
using this theory is based on the estimated on the flow of its
expected earnings. Return will be compared with another
companys rate of return in the same business.
According to this theory,
Capitalization = net annual earning--- capitalization
rate
Hence this theory covers major two aspects i.e.
average annual earning of the company, Expected rate of
return on its investment.
We can say that this theory is beyond the
control of management because future is an predictable and
that is why to make decision nearer to level of expectation,
one has consider average earning of the last three years and
current market situation.
WORKINGCAPITAL
MANAGEMENT
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Working capital includes total of all current
asset or working capital is the excess of current assets over
current liabilities for margin of safety. Safety in terms of
companys financial prestige, fulfill the requirement of
customer, insolvency etc.
Working capital used for payment of raw
material, wages and other expenses. It changes day to day
and risk on such assets/capital is low. The main goal of
working capital management is to manage the firms currentassets and liabilities in such a way that a satisfactory level of
working capital is maintained. It is important for maintenance
of liquidity in the firm. Each short-term source must be
managed continuously. So management can come to
conclusion that what is the requirement of working capital?
Which are the sources available for that? How to obtain and
utilize? So on. One of the important features of working
capital is that it is changing with market condition and
circumstances. So proprietor of the firm have to be attached
his self with marketing condition or scenario. The exact
amount of working capital management is varies from firm to
firm. Working capital management is also affect to cash
inflow and cash out flow. The more cash inflow means
working capital will be required less whereas the more cash
outflow means working capital will require more. So, for
beneficial for firm cash inflow should more than cash out
flow.
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MARKETIING
DEPARTMENT
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INTRODUCTION
TO MARKETINGTo know the meaning of MARKETING, first
we will see what MARKET is.
Market includes both place and region in which
buyers and sellers are in free competition with one another.
Lets see what is MARKETING.
Marketing includes those business activities
which are involved in the flow of goods and services from
production to consumption.
Marketing is concerned with the people and
the activities involved in the flow of goods and services from
producers to consumers.
oo Fulfill needs of consumers.Fulfill needs of consumers.
oo To satisfy wants and desires ofTo satisfy wants and desires of
consumers.consumers.
oo To create new desires.To create new desires.
Marketing adds value of goods by changing
their ownership and by changing their time and place of
consumption.
At present, marketing operates in reverse fashion by seeing to it
that products are made, as the consumers want them made.
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DIFFERENCE BETWEEN OLD SALES
CONCEPT & NEW SALES CONCEPT
1. Product selling and promoting profit
through sales volume
2. Customer needs integrated marketing profit throughcustomer satisfaction.
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View OFMARKETINGMANAGER
We are generally; do marketing for
commodities like gold, silver, Soya oil, castor seed, Kapas,
rubber etc. Commodities mean things, which are used every
day by people. Commodities market is needed because
when the season comes for any commodities like rice and
tea; every farmer has pressure of selling it. So price gets
down, where as in other state there is scarcity of such
commodities. So there is a gap between demand and supply.So this market is needed to bridge that gap. We are doing
marketing for life and non-life insurance by providing
browsers to people directly. We are giving sometimes
advertisement of our organization (MSFPL) in daily
newspapers like SANJ SAMACHAR, FINANCIAL EXPRESS
etc.
Marketing managers should have the entire
knowledge regarding current market situation or trend. They
should have enough convincing power as well as patience.
We personally meet to our potential customers and convince
them for trading. We are also planning for marketing of
commodities like rice, sugar, and tea etc. we as the
participant of MCX, which is controlled by forward market
commission. For solution of technological matter, MCX is
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tied up with financial technologies Ltd. So our clients and
we (MSFPL as a service man) can also solve their technical
problems with the help of MCX.
PRMOTIONALACTIVITIES
After the product has been planned, the
channels of distribution and physical distribution of the
product decided, and the price structure evolved; the next
step is to decide upon the promotional activities that the firm
may follow. It has rightly been said, Noting happens until
somebody sells something. This gives in a nutshell the
philosophy of promotional activities. The promotional
activities are concerned with :(A)INFORMING the people
about products distinctive want-satisfying characteristics and
its availability; (B) REMINDING people periodically about
the product and its role; and (C) PERSUADING the
people/prospective buyers that make people to do what they
might not otherwise do what they dont really want to do.
Promotion is the all inclusive term representing
the broad field-advertising, personal selling, and sales
promotion.
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ADVERTISING
The word advertising is derived from the Latin
word, vizadvertero ad meaning towards and verto
meaning I turn. Literally it means, to turn peoples attention
to a specific thing.
Webster says advertising is to give public
notice or to announce publicity.
Advertisement is simply the message it self,
whereas advertising is a process. Advertisement is a
programme or a series of activities necessary to prepare the
message and bring it to the intended person. Public knowsthe person behind advertising because the sponsor is openly
identified in the advertisement it self. The sponsor makes
payment to the media, which carries the advertisement.
They are of printing further aided in the
technique of advertising through handbills, magazines and
newspaper, pamphlets and handbooks.
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The primary objective of advertising is to
increase sales. In modern times it has become the life breath
of the modern business economy.
The marketing committee or MSFPL is used togive advertise in newspaper. They people are not constantlygiving ad in newspaper but whenever they found that itneeded. They are giving ad in daily newspaper like SANJSAMACHAR and FINANCIAL EXPRESS. They believe thatadvertisement is the only effective media for any firm tocreate aware ness about firm as well as products or services.
EXHIBITIONS
Exhibitions, also known as tradeshows, are
organized n a large scale and are held regularly at some or
the other central places. Their purpose is to promote sale of
goods exhibited. All big manufacturers and businessmen
take pat in it and arrange their shows by taking space in the
exhibition area.
At these exhibitions, one can study the
competitors products, sales techniques, relative strength or
inferiority of the product, technical advantages, etc. these are
also useful for the buyers, who can view in one place the
different requirements of the industry with which they are
connected. Exhibitions are popular for they proved a
common meeting ground for competitor in the same field;
they establish friendly relation between exhibitors and the
customers.
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For direct marketing of commodities they
people are organizing various exhibitions in various cities.
There they call upon all farmers and brokers of that city(including nearer villages) and then, they present the entire
trade related thing which are needed for trading and make
them aware about all procedure for selling and purchasing of
commodity products like rice, kapas etc. they people also
serves tea and coffee to the invited people also. So MSFPL
says that to meet clients personally becomes more effective
when matter comes of trading.
CATALOGUES
These are printed, in four to six pages or even
more.
They give information about the goods and
services in greater details with the help of figures and
illustrations in black and white or colors. Publishers, travel
agencies, tourist departments, life insurance companies,
medical firms or prestigious industrialists etc often use them.
They are glamorous and impressive; and they
give the seller unlimited opportunities to create a prestige
mailing item. Because they are expensive, they are expected
to enjoy long lives.
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MSFPL has its own format catalogues for
commodities trading. Such catalogues are of four to five
pages and include information related commodities market,
commodity vice specification, delivery centers, delivery date,
trading system, trading hours, opening of contract, delivery
unit. At the last page of browsers they are giving information
related marwadi group and services offered by them and
about all branches.
COMMUNICATION
The word communication is derived from the
Latin word communis, meaning common. There is
communication only if there is communication in the words
or symbols both the sender and the receiver i.e., message
must mean one and the same thing both. Communication
means, Sharing of meaning. Implicit in this definition is the
notion of transmission of information, because sharing
necessitates information. Communication is concerned withwho says what to whom, through which channel, and with
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what effect. Such a communication may be made through
written or spoken words or through gestures of some type.
For commodities marketing, a selected person
goes direct to potential customers and convinced them. So,
there is no need to wait for any potential clients to come. But
for other trading, clients can contact MSFPL by using Internet
facilities, by tele-phone, by personal meet, by E-Mail. So
there is an effective communication channels in MSFPL.
Therefore clients and firm have not to wait for each other.
COMPETITORS
Share khan, Carvi, Modilal, Aenugram, N. J.
investment and India Bulls etc. are the competitors of
MSFPL.
CUSTOMER
CARE
DEPARTMENTAs we have seen that MSFPL is concentrating
more on the quality services to their customers than profit.
Profit is required to firm for day-to-day transactions. But toprovide good services also one of the part or firm. Because
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The regulator has put in place the
paraphernalia. We at MSFPL are trying to use clients wealth
at maximum level. All you have to do is to watch your wealth
grow. Leave the worry to use and make the pleasure of
wealth creation yours.
Investment is today complex game requiring
knowledge of finer aspects of market economy. Industry
scenario and a host of other related issues, which come from
dedicated and focused study and analysis. A lay investor
neither has the timer nor the resources for such concerted
efforts. We, at MSFPL, would like to fill up this vacuum for
which we have a high-end set-up. We are committed to
delivering value to our clients at the least cost. We all know
that our money value is eaten up by inflation. Conventional
investment such as bank deposits etc., dont safeguard
money against erosion through inflation. The best bet, in
spite of all attendant risk is investment in share. Yes, let us
tell you upfront that stock market investing has an element of
risk. However, if it is handled sagaciously, that risk can be
largely eliminated. We believe that all investment must be
based on fundamentals and not on technical movements in
the short run. So far, our market was inadequately structured
because both speculation and investment went on under the
same plat form of account period settlement.
Now, cash segment is segreted under rollingsettlement and speculation can take bet on index future andstock future. Such segration has also served to drive thevolumes in cash segment.
Please visit gives and us enhance to show youaround what we have got for you.
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COMMODITYMARKETING IN
MSFPL
In order to facilitate the work of classification,
commodities are distinguished with each other after giving
due consideration to all the qualities of a commodity by
specialist. When goods are sold by description, the
percentage of valuable materials determines the quality and
if any difference arises on the delivery of inferior goods. It is
compensated by paying an amount of difference by experts
on the basis of quality fixed during the course of transaction.
As, MSFPL is a commodity broker; they are
generally concentrating on commodities markets. They have
a separate department, which engaged in marketing of
activities. They identify the current market saturation and by
keeping that into consideration, they decide next strategies
for marketing. One thing that we can say about soundness is
that they people are communication with people face to face.
They are also advertising for commodities, but rather than
advertising, they believe that face-to-face communication has
its own influence in market over customers. MSFPL is
members of NCDEX and MCX (MCX by its own working
procedure has tied up with B.O.I., H.D.F.C. And U.T.I)
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MARKETINGFOR
AGRICULTURAL PRODUCTS
Certain special features have an important
bearing on the demands made on agricultural marketing
system and organizations. Farm products tend to be bulky
and their weight and volume are great for their value in
comparison with many manufactured goods. The demand on
storage and transport facilities is heavy and specialized.
Although some crops, such as rice and paddy, retain their
quality for a long time, most of the farm products are
perishable and cannot remain long on the way to the final
consumer without suffering loss and deterioration in quality.
Peaches, grapes, tomatoes and many other fruits and
vegetables rapidly become over-ripe and decay if they are
not soon consumed or kept in special storage.
Sale generally takes place when the cultivator
is in debt. Sometimes the BEOPARIES also go from village
to village collecting the produce from the farmers at
comparatively reduced prices. Though a major portion of the
agricultural produce is disposed of at the village level through
the hands of the creditors of the cultivators and other shrewd
BANIAS, some part of the produce, thus, finds a place in
mandis, which are located at a distance varying from five to
twenty miles from the villages.
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In agricultural marketing is involved the putting
up of the surplus in the market through a definite channel.
The surplus may be marketable surplus and marketed
surplus. The surplus may be marketable surplus and
marketed surplus. The former indicated the residential
quantity left with the producer after meeting his requirements
for family consumption, farm needs, and payments in kind to
casual and permanent labour, the landlord, arisen and seed
and stock to cover the future exigencies including wastage.
The latter term refers to the quantity of produce that is
actually sold in the market by the producer irrespective of his
home consumption and other requirements
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PROCESS OFAGRICULTURA
L MARKETING
After a crop is harvested and before it reaches
the consumer, it is subjected to one or more forms of
processing, which differ for different crops and for different
uses and preferences on the part of the consumer. A single
form of processing may consist of more than a single
operation carried out by different parties at different stages.
Thus, paddy may be threshed and winnowed by the cultivator
but husked by the miller, the trader or even the consumer. In
more prevalent forms of processing of major crops there is a
broad uniformity in this country.
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MARKETINGOF SECURITIES
In marketing of securities and some agricultural
commodities specialized institutions have grown up with
different techniques and functionaries.
The stock exchange is a market for the
purchase and sale of securities. The joint stock companies
and the local bodies of government, who wish to raise funds
for the execution of their schemes, have to go to the stock
exchange. The stock exchange to some, who have made
fortunes on them, means an open sesame for treasure.
While to some others who have turned into beggars-it means
a place where one gets rich in an easy and effortless way,
while to still others it conveys a dark picture full of
immoralities providing a home for the people whose morals
have gone down and who want to make money through lies
and treacherous activities. But none of these views are true
of the modern stock exchange.
In this market members of the association are
engaged in buying and selling shares, stocks, securities andbonds for the public on commission and are guided by
certain rules and usages. The business of stock exchange is
more varies and cosmopolitan than that of any other market
except the money market.
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IT IS A
MARKET FORSECURITIES
Every share of security constitutes a separate
market for itself on a stock exchange, which consists of
group of men standing in a certain place provided for the
purpose and ready to deal in a certain class of security. But it
should not be understood that a stock exchange is
something like a vast warehouse where securities are taken
away from shelves and sold across the counters at a fixed
price in a catalogue which is called the official list. On the
other hand, it does not provide unlike a vegetable and fish
market a place where people are found with stocks of various
articles ready to sell or to buy but it simply provides a place
where the main traffic of stocks and shares is conducted.
IT IS AN OPEN MARKET FOR BUYERS ANDIT IS AN OPEN MARKET FOR BUYERS AND
SELLERSSELLERS: -
The stock exchange is not an investment
institution like the investment banks, the issue houses, or the
investment trusts, supplying capital to industrial enterprises.
It is simply a meeting place for the intermediaries who find
out buyers and sellers for purchase and sale of securities,
and thus it provides a continuous open market for them.
Stock exchanges are market places where
millions of individual and institutional buyers and owners of
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listed securities may readily and promptly exchange their
savings for stocks and bonds, convert their holdings or
securities for cash and exchange them for other listed
securities.
SWOT
ANALYS
ES
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SWOT-Analyses
No firm can work for the shake of work. Each
and every firm wants to have their own prestige in market
there can be many other objectives like to earn more profit, to
satisfy customers need, to maintain quality. But none of
above can be achieved or got without analyzing firms own
performance. A firm having sound performance assessment
policy will be succeeding in the up coming future.
Every firm wants to compare its performance
but we all know that if any firm will not consider its weak ness
in performance assessment, it cannot say that we are not
lacking anywhere. In real, it is lacking but due to lack of
vision they are saying so.
There fore, SWOT analysis is one of the tools
to measure company performance. It includes Strengths,
Weaknesses, Opportunities and Threats. For any particular
firm this is the parameter which includes both the aspects i.e.
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areas which has been already improved and areas which are
needed to be improved. A firm has try to develop its weak
areas, retain its strengths, look for new opportunities with
considering competitors upcoming strategies, that is what
SWOT is all about.
Strengths
Vast area of services.
Good incredibility in
market.
Vast number of clients.
Well-designed culture
and discipline staff.
Threats
Govt. policy.
International and
Domestic. competitors.
Negligence of clients may
prove a looser of a
business.Depends on other
companies and their
situation.
Opportunities
To be a good finance
services provider firm.
To be an ideal bank.
To be a tele-comeservice provider firm
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Weaknesses
Less manpower.
Lack of proper
communication.
Dispatch department to
be more systemized.
Grievances and queries
are not handled properly.
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SUGGESTIONS
Suggestions
MSFPL has good reputation in the field of
finance services provider firms. But then also at some places,
MSFPL lacks. So I would like to give suggestions for areas,
which have to be developed. There are lots of chances for
MSFPL to come out as a better services provider firm.
I) There are some departments where more
manpower needed. Department like customer care,where there are an enough tale-phone lines to
communicate with clients, but there are only one to
two persons to handle these tale-phones, so they
cannot serve enough information to clients. So, if there
is more manpower, customer can have better
services.
II) In some department, there is a requirement of
some types of systemized work. Like in trading
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department for pay-in and pay- out, there is miss-
management. Due to these clients receives their
documents not in time. So by adopting some
systemized work, this time gap can be eliminated.
III) There should be one separate department that
focus only on current market trends and situations.
Means they should know what is going on in market
and what types of series customer demands.
IV) I have found that if any staff member is on leave
for some day. They interchange the person of other
department at that place. Means if any employee of
trading department is on leave for some day, they call
upon an employees from any other department then
what happens, a department from where the person
has been shifted can not work properly and on the
other hand customers can not get proper services
what they should be got.
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CONCLUSI
ON
Conclusion
First of all I would like to thank Mr. SatishKumar who is the general manager of MSFPL. He has given
me permission to make project report on MSFPL (Marwadi
Shares and Finance Pvt. Ltd.). I also thank to all the staff
members of MSFPL and spent their precious time to provide
me all the information.
During my project report, all the staff members
of MSFPL found to be goods and co-operative. Working
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environment of MSFPL is also good and every executive
officer has its own identity in the firm. MSFPL has clear vision
and working system. MSFPL knows what are their objective
and how will they reach there? MSFPL is having good
research team which constantly in touch with current market
situation and consumers preferences. MSFPL has advance
technologies in the field of finance and they are also using it
at its optimum level. According to me MSFPL will definitely
achieve their objectives in near future due to their team sprit
and consumer oriented working environment.
Hence, I concluded that whatever efforts have
been putted by MSFPL is the subject to recommendation and
I wish them to achieve their targets in near future.
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BIBLOGRA
PHY
Bibliography
During My Industrial visit for the Marwadi
Shares & Finance Pvt. Ltd. Following books website are help
full to me.
Principle and Practice of Marketing In India
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- C.B. Memoria & R. L. Joshi
Finance Management (Third Edition)- M.Y. Khan & P. K. Jain
Personnel Management- C. B. Memoria
Human Resources Management- Dr. C. B. Gupta
Marketing Management- S. A. Sherlekar
Marketing Management
- Philip Kottler
Web- Site: www.google.com
http://www.google.com/http://www.google.com/