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Research Development and Finacial Management Process in Chemical Indusrty

 


RESEARCH AND DEVELOPMENT NEW PRODUCT

In a company research and development conceptualizes completely new products.

Sometimes the customer may give the design of the product or sample which is to be developed .enquiry about the design, shape, size all are discussed. When the order gets confirmed the by the firm and the customer cost is fixed for the product.

First the sample sent to customer of the product for their satisfaction and moved on to the process of bulk production.

Distribution channels:

Direct distributing refers to the customers directly place the orders to the manufacturers and the products are delivered directly to the customers without any intermediaries.

Bhargave Rubber has its distributors mainly form Chennai, Coimbatore, Karnataka, and Maharashtra.

An export is a function of international trade where goods are produced in one country and are shipped to other country for sale or trade. The firm uses direct export or through a merchant agent to countries USA and UK.


 

FINANCIAL MANAGEMENT

Financial management is a vital activity in any organization. It is the process of planning, controlling, organizing and monitoring the financial sources to achieve the goals and objectives of the company

It include the controlling of activities such as procurement of funds, utilization of funds, accounting, payments, risk assessment, and every other thing related to money.

Some sources are short as it is to be paid back within a year. Others sources may be paid within years as it is said to be long term sources

 

The firm mainly uses sources from bank, term loans, and working capital.

 

Objectives:

 

1.     To ensure regular and adequate supply of funds to the concern.

2.     To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.

3.     To ensure optimum funds utilization

 

Functions

v Determination of capital composition

v Estimation of capital requirement

v Investment of funds

v Management of cash

v Financial controls

 

 

Wages of workman are fixed in the long term agreement and is calculated on a daily basis depending various factors like grade number of hours worked, the output achieved etc.

Bhargave Rubber Private Limited is a family owned business so that the investment will be directly invested in the organization by the persons from the family who are in the organization.

Fund flow means inward and outward movement of funds of an enterprise Every month the firm need to meet out the expenses ,small amount can be managed by the organization if not working capital further used to run the organization.

The primary objective of working capital management refers to the smooth functioning of business cycle, minimizing the cost of funds.

Working capital sanction is based on

 

¯ Raw material

¯ Stock

¯ Finished goods store

¯ Work in progress

¯ Promotion general

The firm collaboration with Canara bank and ever month budget is allocated regarding credit period for customers 45-60 days and the working capital limit is upto 150 lakhs and 85 lakhs will be expenses amount.


 

TECHNICALDEPARTMENT

Development of new product:

The new product is Developed by the organization is the 3 ways:

ü Get the core design from the customer and then develops a new product.

ü Innovation of new design for customer

ü Combining the idea of both customer and designer and then develops a new product.

Technical team:

This team consists of 5 technicians and 2 supervisors who works to develop the new product design for the customer satisfaction. Creativity plays an important role in this department.

Process:

This department develops the new product design and it is enquired and checked by the director of the organization. After the confirmation of the design by the top management the production process starts.


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