AREPORT ON INDUSTRIAL
TRAININGUNDERGONE AT
M/S. CHAM SYNTHROPES INDUSTRIESPVT. LTD.,
REPORT PREPARED BY,
NAME :- KANSARA VIJAYKUMAR NARSHIHBHAI
ROLL NO :- 15
EXAM NO :-
STANDARD :- F.Y.B.B.A.
ACADEMIC YEAR :- 2005-06
GUIDANCE BY :-
INSTITUTE,SHRI K.H.MADHVANI,
ARTS & COMMERCE COLLEGE,AERODRAM ROAD,
PORBANDAR – 360575.
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SHRI K.H.M. ARTS & COMMERCE COLLEGEPORBANDAR
C E R T I F I C A T E
THIS IS TO CERTIFY THATMR. VIJAYKUMAR NARSHIHBHAI KANSARA A STUDENT OF F.Y.B.B.A. HAS COMPLITED HIS INDUSTRIAL PRACTICAL TRAINING AND PREPARED A REPORT UNDER MY GUIDANCE AND DIRECTION ABOUT THE FOLLOWING INDUSTRIAL UNIT
M/S. CHAM SYNTHROPESINDUSTRIES PVT. LTD.
SIGNATUREOF GUIDE
________________(MR. D.J.PARMAR)
PLACE :- PORBANDAR
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DATE :- _____________
A C A D E M I C Y E A R : - 2 0 0 5 - 0 6
P R E F A C E
It is compulsory for each and every student of F.Y.B.B.A. to take an Industrial visit of Industrial unit as per rules of SAURASHTRA UNIVERSITY the main purpose of practical knowledge about the various aspect of Management & this enables the students to take deep interest in the studies.
I took my visit to the M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD., PORBANDAR in the ACADEMIC YEAR 2005-06 which was in our F.Y.B.B.A. syllabus.
Sincerely, I have noted all the facts which are required for precise and meaningful report construction and also I have covered all the information required.
A C K N O W L E D G E M E N T
I am very thankful to executive persons of M/S.CHAM SYNTHROPES INDSTRIES PVT.LTD. & our honorable principal SHRI J.S.RAMDUTTI & B.B.A. in charge PROF. D.J.PARMAR, PROF. R.V.KESHWALA, PROF.A.B.SAVJANI & B.B.A. STAFF for giving us guidance to prepare Industrial Report.
My special thanks to MR. PREMJIBHAI K. CHAM for giving their precious time in our favors. My hearty thanks to all the workers & officers for giving us idea and all the necessary information to prepare Industrial Report.
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Yours Faithfully,
_______________( KANSARA VIJAY N. )
C O N T E N T S
1 ) G E N E R A L I N F O R M A T I O N
2 ) P R O D U C T I O N D E P A R T M E N T
3 ) P E R S O N N E L D E P A R T M E N T
4 ) M A R K E T I N G D E P A R T M E N T
5 ) F I N A N C E D E P A R T M E N T
6 ) F U T U R E P L A N
7 ) C O N C L U S I O N
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GENERALGENERALINFORMATIONINFORMATION
C O N T E N T S
INTRODUCTION
MANAGING BODY
HISTORY & DEVELOPMENT
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REASONS FOR LOCATION
I N T R O D U C T I O N
For day to day use rope is & Important thing. It is usually used for fishing & transportation. M/S.CHAMY GROUP OF COMPNIES has introduced M/S.CHAM SYNTHROPES INDUSTRIES PVT.LTD. in 1995 as a partnership firm. The factory is at VANANA, which is 8 km. far from PORBANDAR & it’s register office is located at BOKHIRA. This is a large scale Industries producing Ropes.
REGISTERED OFFICE,M/S. CHAM ICE & COLD STORAGE,BOKHIRA,PORBANDAR-360575.PH. NO. :- 2246441-42TELEX NO. :- 0L 66 – 207.
M A N A G I N G B O D Y
There are several types of organization such as staff functional organization, line type organization. The organization of M/S CHAM SYNTHROPES INDUSTRIES PVT. LTD. Is line type organization. The chart of line type organization is given below.
DIRECTOR↓
DEPUTY GENERAL MANAGER↓
PLANT MANAGER↓
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PLANT MANAGER↓
______________________________________↓ ↓
SUPERVISOR TECHNICIAN↓ ↓OPERATOR HELPER↓ ↓
HELPER WORKERS
BANKERS:- Bank of Baroda
HISTORY AND DEVELOPMENT
History of unit deals with the part performance, Production and development of the unit, i.e.; how the progress of any unit is going on.
M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD., was established in December, 1995.
M/S. CHAM Group of companies as a partnership firm. This unit of M/S. CHAM Group of companies produces rope. It is situated near PORBANDAR. At the outset it produced some
different types of ropes and gave it to some fishermen for use, and asked about its quality. The fishermen liked the quality of the rope and the demand of the rope had increased for fulfilling the demand M/S. CHAM Group of companies established the firm as M/S. CHAM SYNTHROPES INDUSTRIES as a partnership firm.
The main view of this factory is to produce large amount of rope for the fishermen and cham-king fish factory. After the establishment this factory getting sufficient rope and net at suitable time and at suitable price.
At present, the marketing of M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Is better than any other rope factory, like GARWARE, SAURASHTRA SAMUNDAR etc. at present the value of the plant is about Rs. ______________ Cores. Now, its production Capacity _____________________tone per 24 hours. By
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increasing its production capacity and marketing, this company has captured the market of other rope manufacturing units, like GARWARE.
By seeing its rope producing capacity, sufficient marketing techniques. We can say that M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Will develop very fast in the near future.
R E A S O N S F O R L O C A T I O N
The location of the unit is very important to be taken in mind because the location should be in a key place where other actors of production, such as raw material, labor, power, etc. are easily available. M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Is located near VANANA, 8 Km. from PORBANDAR. There are advantages of location which M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Gets because of its location which is stated below.
AVAILABILITY OF RAW MATERIAL:-If raw materials are available in sufficient quantities near by places easily and
regularly at a particular place, naturally industry would be located there. The main row material for rope production is, POLYPROPYLENE, HEROPOLYNER or PLASTIC’S SEEDS. The plant is located nearly its own area and from where factory gets this raw material easily.
TRANSPORTATION:-Transportation is important facilities for any industry, so this facility generally
influences the location of industry, to get sufficient raw material and to send the production in the market, the transport arrangement is very important for any company. M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Gets the transport facility very easily because PORBANDAR is such a place from where the various modes of transportation. Such as Railway, Roadways and Seaways can be got very easily. The factory uses the Roadways for transport the goods to several places.
LABOUR FORCE:-As this factory is situated at little backward area, which is under developed,
they can easily get workmen. The place where the factory is situated, sufficient labor
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and workers are there. So the cost of labor here is low and the terms and conditions are favorable to the factory.
SUBSIDY AREA:-The factory is established in a Government approved subsidy area. Hence the
land required for the factory could be procured at a cheaper rate. The group of industries had their own land at the factory place. So they chalked the places for the factory.
FINANCE:-We have seen that in the past most of the industries depended on many
lenders. But now days the finance is not important for the industrial location, due to the commercial banks and other financial institutions are located all over the country. M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Borrows money from “BANK OF BARODA”.
PRODUCTIONPRODUCTION DEPARTMENTDEPARTMENT
C O N T E N T S
PRODUCT & RAW MATERIALS
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USE OF PRODUCT
PRODUCTION PROCESS
USE OF MACHINERY FOR PRODUCTION PROCESS
PRODUCTS AND RAW MATERIAL
PRODUCTS:-The firm mainly produces two types of ropes :-
1) Silver grave.2) Green grave.
RAW MATERIALS:-1) Polypropylene.2) Homopolymer for producing rope.
These two types of raw materials are obtained from 1) M/S. INDIAN PETRO CHEMICALS LTD. BARODA. &2) M/S. RELIANCE INDUSTRIES PVT. LTD.
TYPES OF PRODUCTION OF ROPE:-1) 2mm to 5mm
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2) 6mm to 32mm
U S E O F P R O D U C T
M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD., produce different types of ropes. Ropes are mostly use in transportation and fishing etc. and also uses in different types of works as per our requires.
PRODUCTION PROCESS
This unit has two different production departments. For production of ropes the following process is carried out in the respective department.
HEAT TREATMENT DEPARTMENT :-First of all the plastic seeds are heated in heater machine, their of plastic are of
white color. Then the pieces of master base are added in them. There is more demand of silver and gray colors. Then the rayon of plastic is made from automatic. After this process the rayon are kept in a roll with use of the embossing machine.
FOR MAKING ROPES:-They rayon roll is transferred into another machine. Where the rope is made
by four wires in this process the workers use of ring twister.
FINAL STAGE:-The rolls of ropes are to be put in another machine for making ropes. These
ropes are to be made in different colors. In this stage the worker can make different types of ropes and different size of rope, with use of the machinery, like STANDARD TWISTERS in three parts.
DIFFERENT SIZE OF ROPES:-2mm, 6mm, 8mm, 12mm, 16mm, 23mm, 28mm, 32mm
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USE OF MACHINERY IN THE PRODUCTION PROCESS
FIRST PART OF PRODUCTION PROCESS:-1) P.P.Exsuder2) Mixture3) Roller Stand-14) Roller Stand-25) Embossing Machine6) Winder
SECOND PART OF PRODUCTION PROCESS:-1) Ring Twister2) S.R. 3053) R.L. 1004) R.L. 10 Twister
THIRD PART OF PRODUCTION PROCESS:-1) TL – 16 Standard (3 Bobbin)2) TL – 16 Standard (5 Bobbin)
PERSONNELPERSONNEL DEPARTMENTDEPARTMENT
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C O N T E N T S
INTRODUCTION
WAGES & SALARY
RECRUITMENT PROCESS
WELFARE ACTIVITIES
I N T R O D U C T I O N
Personnel department mainly deals with the human factor in any unit. It is an important other department in achieving the goal of the unit. It is the heart of general management. Where objectives are to plane coordinate and control the resources. Personnel management means to control the human factor in a unit with all our intelligence and knowledge. The functions of this department are listed below :-
MANAGEMENT FUNCTION:-1) Planning2) Organizing3) Direction4) Controlling
OPERATING FUNCTION:-1) Procurement of personnel2) Development of personnel3) Compensation of employees
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4) Integration5) Maintenance of personnel
All the functions are proposed by personnel manager.
W A G E S & S A L A R I E S
WAGES:-Wages contained is section 2(22), wages means all remuneration paid or
payable in cash to an employee, it the terms of the contract of employment, express or implied, were fulfilled. The wages are paid to the labor who is engaged in direct production. Wages are generally paid on daily basis or weekly basis, wages are depending upon the personnel skill and experience.
SALLARY:-The terms salary refers the reward paid to employees in this industries. Salary
is given to the employee who is working in clerical and official or department. salary is given on monthly basis.
R E C R U I T M E N T P R O C E D U R E
The success of an organization mainly depends upon the man of skill, and qualified workers who are chosen out of a number of applications for the job recruitment is a positive process in searching the prospective employee. Here the company M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Gets labor very easily who are unskilled. So, here very few workers are selected on their educational qualification. M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Selects men who have done ITI or having some technical knowledge. Here total numbers of workers are 100 in the rope plant.
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W E L F A R E A C T I V I T I E S
In the welfare facility there are two of facilities. One is statutory facility another is non statutory facility. The M/S. CHAM company provides the following types of facilities.
STATUTORY:-1) Fist aid appliance2) Canteen3) Housing allowance
NON-STATUTORY:-1) Transportation
MARKETINGMARKETING DEPARTMENTDEPARTMENT
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C O N T E N T S
INTRODUCTION
CHANNEL OF DISTRIBUTION
MARKETING RESEARCH
PRICE OF PRODUCTS
ADVERTISING
I N T R O D U C T I O N
Main and important function which is necessary for the economic prosperity of the country is marketing without which, industry can not achieve its goal. It is a comprehensive term. It includes primary resources like, human resources, financial resources, and management resources, as well as a set of activities which enables the final product to reach the consumer, in the process of exchange and distribution.
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CHANNEL OF D ISTR IBUT ION
After production, the next problem is selling and distribution of final product. The process of reaching the final product to the consumer, from its manufacturer is called the channel of distribution. The channel of distribution of M/S. CHAM SYNTHROPES PVT. LTD. Is as follows.
MANUFACTURED GOODS (ROPE)↓
DEALERS↓
SUB-DEALERS↓
RETAILERS↓
CUSTOMERS
M A R K E T I N G R E A S E A R C H
This unit does not require a marketing research for its product. Since M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Sells its product only in some states, namely, Karnataka, Maharashtra, Goa, Gujarat etc. only in these states, the product of M/S. CHAM SYNTHROPES IND. PVT. LTD.
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This unit does not export to foreign countries. It has limited consumers in some states only. So the market research does not have much significance. It makes production on the basis of advance booking of purchase order.
P R I C I N G T H E P R O D U C T S
The price of the product of M/S. CHAM SYNTHROPES IND. PVT. LTD. Is given below:-
1) 2mm to 5mm - Rs.90 - per Kg. 2) 6mm to 32mm - Rs.84 - per Kg.
A D V E R T I S I N G
Advertising has very important role to play in any for promoting its sales. By advertising the consumer knows about the product very easily. Only if knows the product, he will but the product. Different companies choose different methods of advertising in India.
This unit adopts the system of advertising for range amount of sales.
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FINANCEFINANCE DEPARTMENTDEPARTMENT
C O N T E N T S
INTRODUCTION 1) FINANCIAL MANAGEMENT
FINANCIAL PLANNING
CAPITAL STRUCTURE
SOURCES OF FUND
FINANCIAL STATEMENTS1) MANUFACTURING & TRADING ACCOUNT2) PROFIT & LOSS ACCOUNT3) BALANCE SHEET
INTERPRETATION OF FINANCIAL STATEMENT1) RATIO ANALYSIS
INTRODUCTION OF FINANACIAL MANAGEMENT
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Financial management means planning, waging, sourcing, and controlling of the firm in such a way so that main goal of the business can be easily achieved.
What ever found employed in the business their should be maximum utilization of the fund for this proper financial management must be their. The term financial management consider the following aspect in detail.
F I N A N C I A L P L A N N I N G
It means nothing but determination of total requirement of the fund in advance. There should be proper financial planning so that adequate fund can be collected and invested in the business.
C A P I T A L S T R U C T U R E
It means list of various sources of the fund. What kind of capital structure should be form is mainly depend upon business condition, nature of business and view of the management. Capital structure include all the resources of the long term fund. Like capital, bond, bank loan, and other term loan etc.
“The CHAM IND. PVT. LTD. Borrowed secured loan from B.O.B. C.C. A/C. Rs.2,498,615.93/- and unsecured loan as per schedule-B 7,397,559.08/-. “
S O U R C E S O F F U N D
Sources of fund means the various tools through which required fund can be collected. In case of sole proprietor firm and partnership firm main sources of fund are individual capital, re-investment of profit, bank loans, term loans and other long term loans. Where as in case of private limited or public limited company main sources are share capital, reinvestment of profit, debenture, bank loans, bonds, and other term loan and long term loans etc.
F I N A N C I A L S T A T E M E N T
Financial statement is prepared for the purpose of verifying financial and profit position of business. It indicate various assets and liabilities as well as various income and expenditure during the particular accounting period. “It is the mirror of the business”. Through which detail investigation of the business enterprise can be done from the view point of financial aspects.
This statements are generally prepared at the end of accounting year and classified in three part as follows.
Trading accountProfit & loss accountBalance sheet
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T R A D I N G A C C O U N T
Trading account for the year ended 31st March,2005PARTICULARS CURRENT
YEAR RS.PARTICULARS CURRENT
YEAR RS.
OPENEING STOCK
RAW MATERIAL CONSUMPTIONAS PER ANNEXTURE – “I”
PACKING MATERIAL PURCHASE
POWER CONSUMPTION
FUEL EXPENSES
TRANSPORT CHAGES
SALARY & STAFF WELFAREAS PER ANNEXTURE – “II”
GROSS PROFIT
2,076,460.00
21,662,396.18
63,847.00
3,031,931.00
239,070.00
130,963.00
1,133,403.00
2,971,603.85
P.P.SALESH.D.P.E.TWIN SALES
CLOSED STOCKFINISHED GOODS
20,887,612.138,509,488.90
1,912,577.00
TOTAL… 31,309,678.03 TOTAL…. 31,309,678.03
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P R O F I T & L O S S A C C O U N T
It is the statement which is showing total revenue income and gain, as well as total revenue expenditures and losses, during the particular accounting period. It disclosed the profit position of the business and it is also help full to collect the require information for preplanning or budgeting need to be prepared to take certain important business decision.
Profit & Loss account for the year ended 31st March, 2005PARTICULARS CURRENT
YEAR RS.PARTICULARS CURRENT
YEAR RS.
ADMINISTRATIVE EXP.AS PER ANNEXTURE – “III”
REPAIRS & MAINTENANCEAS PER ANNEXTURE – “IV”
BANK INTEREST
DEPRECIATION
AUDIT FEES
705,349.30
1,053,303.00
336,671.00
1,632,536.00
10,375.00
GROSS PROFIT
INDIRECT INCOMEISI SUBCIDYINSURANCE CLAIM
NET LOSS
2,971,607.85
119,750.0072,000.00
574,876.45
TOTAL… 3,738,234.30 TOTAL…. 3,738,234.30
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B A L A N C E S H E E T
It is the statement which maintain total assets and total liabilities of the business at the end of particular accounting year. This statement disclosed the financial position, efficiency of the business and solvency of the business.
Balance sheet for the year ended 31st March, 2005LIABILITIES CURRENT
YEAR RS.ASSETS CURRENT
YEAR RS.
PARTNER’S CAPITALAS PER SCHEDULE – “A”
SECURED LOANB.O.B. C.C. A/C.
UNSECURED LOANAS PER SCHEDULE – “B”
CURRENT LIABILITIES & PRIVISIONAS PER SCHEDULE – “C”
15,994,193.95
2,498,615.93
7,397,559.08
1,372,073.01
FIXED ASSETSAS PER SCHEDULE – “D”
CURRENT ASSETS, LOANS & ADVANCEAS PER SCHEDULE – “E’
6,713,463.00
20,548,978.97
TOTAL…. 27,262,441.97 TOTAL…. 27,262,441.97
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INTERPRETATION OF FINANCIAL STATEMENT
It is the nothing but analysis of financial and profitability of position of business. In other word interpretation means nothing but investigation of certain financial aspects of the business enterprise. It is necessary for taking some future business decision and helpful to the out sides. Who are directly or indirectly interested in business like creditors, bankers, prospective investors, government agency.
It is also useful for the purpose of making to comparison of the financial position of the one business with another business for making comparison of the financial position of the current year or compare to last few years – financial position of the business. Several tools and techniques are use for the purpose of interpretation of financial statement. One of the powerful techniques is the “ratio analysis” in which several ratios as follows:-
GROSS PROFIT RATIO:-
G.P.Ratio = Gross profit * 100 Total sales
= 2,971,601.85 * 100 29,397,101.03
= 10.11 %
It is a ratio expressing relationship between gross profits earned to net sales. It is a useful indication of the productivity of business. Wear this ratio is 10.11%, so here this ratio is very lower and here in his industrial business suffer from losses in his recent years. So my instructions are the business unit to expand the sales or increases this ratio.
NET PROFIT RATIO:-
N.P.Ratio = Net Profit * 100 Net Sales
= -574876.45 * 100 29397101.03
= -1.95%
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This ratio is valuable for the purpose of ascertaining the overall profitability of business and shows the efficiency or otherwise of operating the business. Were there are net profit is negative means here this industrial unit is suffering high losses so my instruction is to grow this sales and decrease the production expenses so this unit can change his net profit and get very satisfied net profit.
ASSETS TURNOVER RATIO:-
A.T.Ratio = Cost of Goods Sold. Total Assets
= 29397101.03 6713463.00
= 4.38%
This ratio is very essential for counting the industrial turnover of assets. Here this ratio is very low because of this unit is suffer from loss and its productivity is very lower level.
CURRENT RATIO:-
Current Ratio = Current Assets Current Liability
= 20548978.97 1372073.01
= 14.97%
This most widely used ratio shows the preparation of current assets to current liabilities. It is also known as “Working capital ratio”. As it is a measure of working capital available at a particular time.
C O N C L U S I O N
The firm’s gross profit has been substantially in the current year in comparison with the previous year. This is the result of some additional cost incurred in the manufacturing process of the firm.
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The exports which have been shown in the trading account is now sufficient. So it is required to boost up the export sales.
The reason far the net loss will be heavy expenses on maintenance of machineries bank interest and heavy charge of depreciation.
FUTUREFUTUREPLANSPLANS
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F U T U R E P L A N
M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. Has a very good future plan.
Its plan is to expand their business in all over India and in other countries also.
The expansion plan will help the factory to achieve high profit and they will get success in the competition in market. They think that their product is good and after some time they hope that they will do their best. The raw materials are getting very easily in large scale from M/S. I.P.C.L., BARODA. So they do not think about raw material and making their product very good. So that they can satisfy the consumers.
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CONCLUSIONCONCLUSION
We visited the M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. This is an important part of our syllabus. This industry has separate department. This industry has good relationship between management and employees. By seeing the future plan of the unit we can say that this industry will develop very quickly and in the near future, as the industry is planning to do its business All Over India.
I wish good luck to all staff and management of M/S. CHAM SYNTHROPES INDUSTRIES PVT. LTD. - VANANA (PORBANDAR).
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