comapny project new 1

8/19/2019 Comapny Project New 1

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About company

HEG Ltd, a premier company of the LNJ Bhilwara group, is today India'sleading graphite electrode manufacturer. It has one of the largestintegrated Graphite Electrode plants in the world, processingsophisticated H! "ltra High !ower# Electrodes.

$he company e%ports o&er () of its production to more than *+countries of the world.

$he position the company enoys today in India and a-road is largely

due to its commitment to constant upgradation of its product uality tomatch international standards and to meet new challenges to win ande%cel in all situations.

In the /00('s, we set our 12ision3 to -e 4 1 A vibrant globallyacknowledged top league player in Graphite Electrodes and alliedbusinesses with commitment to growth, innovation, quality andcustomer focus”.

In Graphite, our focus is on H! grade electrodes, and we ha&ee%panded our product range and esta-lished the same on some of thetoughest furnaces of our customers. $oday, we ha&e years of e%periencesupplying uality H! grade electrodes all o&er the world.

$he encouragement from our customers has led us to increaseproduction capacity and -ecome a significant glo-al producer of ualityH! grade electrodes for E56 application. 7ur a-ility to source the -estraw materials from sources worldwide and the s8ills of our humanresources has -een the 8ey to our growth.

$o maintain our competiti&eness, we ha&e set up a 9apti&e !ower !lanttotaling more than :: ;


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Board members

Shri L N Jhunjhunwala Chairman-Emeritus

Shri Ravi Jhunjhunwala Chairman & Managing Director

Shri Shekhar Agarwal Vice-ChairmanShri Kamal Gupta Director

Shri N avar Director

Shri ! "urari Director

Shri Lalit "ohan Lohani Nominee Director-LIC

Shri Riju Jhunjhunwala Director

Shri #m !arkash $ahl Director


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Products

1. Graphite %lectrode ivision

$he main -usiness of HEG is graphite which accounts for () of there&enue. =et up in /0::, in technical and financial colla-oration with

=ociete >es Electrodes Et ?efractaires =a&oie "=E?=#, a su-sidiary of!echiney of 6rance, HEG is now the largest integrated graphite plant inthe world. =pread o&er an area of a-out /:( acres, HEG "graphitedi&ision# has facilities for production of Graphite Electrodes and Graphite=pecialities. Its plant is located at ;andideep near Bhopal ";!#.

$he plant has a annual capacity to ma8e (,((( ;$ of H! gradeelectrodes. It has three capti&e power generation facilities which cantogether produce around :: ;< which fulfils almost the entire

reuirement of the graphite plant.

*. Power

7ne of the maor -ottlenec8s plaguing the Indian industry has -een the

shortage

of power. 5t HEG Limited, we reali@ed this as early as /00+ and

o&ercame this pro-lem -y setting up the group's first hydropower proectof /A.+ ;< rated capacity in $awanagar, district H7=H5NG5B5> ";.!.#

which was commissioned in /00:. $he power generated at this unit is

wheeled to the graphite plant at ;andideep. $his not only ramped up the

efficiency of the graphite plant -ut also opened up a window of

opportunity for us to enter the area of power generation.

=u-seuently, when the Graphite Electrode capacity was increased from

,((( tonnesCannum to (,((( tonnesCannum,


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termal power plant and /A.+ ;< hydel power plant. $he main

euipments including the $ur-ine were sourced from BHEL, India.

&' Activated Carbon Fabric (ACF)

ACF is a fexible orm o activated carbon. The activated carbon abric ismechanically ea! but hi"hly porous innature. #ue to this$ it possesses uni%uecharacteristics as compared toconventional activated carbon$ hich is

commonly used in "ranular$ palletised$podered and moulded orm. #ue to athin &brous shape in activated carbonabric$ a ast intraparticle adsorption!inetics ta!es place in "as and li%uidphase adsorption.

'oleculesatoms o pollutants have ananity toards activated carbon abric

surace by physical adsorption at lotemperatures.

In physical adsorption there is a Van Der Waals interaction ha!ing a long range

"ut #ea$ %orces. Molecules o% pollutant "ouncing across the acti!ated car"on

%a"ric sur%ace gradually loses its energy and %inally comes to rest on it. Due to

#ea$ "onds in the physical adsorption molecules can "e remo!ed %rom the

acti!ated car"on %a"ric sur%ace "y gi!ing a heat energy. his property is utilised

in regenerating acti!ated car"on %a"ric.

(eatures o) A*(

It is o% minimum '() pure %orm o% acti!ated car"on

It is so%t and easy to handle

It has a *E sur%ace area +,*E o% the range %rom 1((( to /(( m g-1

#ith a high degree o% adsorption and desorption characteristics. E%%ecti!e

adsorption is se!eral hundred times higher than that o% 0C 2C or

palleti3ed acti!ated car"on.


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C4 is made up o% %ilament yarn due to #hich C4 is electrically

conducti!e and hence it can "e regenerated "y passing a lo# !oltage current

across the C4 sur%ace or "y heating C4 at 1(( oC %or 1/ to 5( minutes.

he distri"ution o% pore si3e is in narro# range 6 1( nm.

+sage

C4 is used in 7

ir-conditioner %ilters.

ir puri%ying %ilters.

Clean rooms.ll other types o% pollution control %ilters.

nti pollution mas$s - %or personal protection against gaseous !apours 8

%umes and "ad odours.

9e%rigerator deodouriser - to arrest odours in re%rigerators.

Cigarette %ilters - to trap harm%ul chemicals present in cigarette smo$e.

$' *aron $locks

:E0 also ma$es 4ine 0rain Car"on *loc$s %or !arious applications on special

orders. hese "loc$s are used "y the customers to ma$e !alue added products

li$e :eat E;changers etc.

*' Graphite Specialities

:E0 has a small graphite ,peciality di!ision to cater to the re


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Achivements

5warded I=7 0((/4*(( I=7 /D((/4*((D 9ertifications.

5warded '?ai& Gandhi National Fuality 9ommendation 5ward *((/for Fuality -y the Bureau of Indian =tandards, Go&ernment of India.

HEG Ltd -agged the prestigious National E%port 5ward instituted -ythe ;inistry of 9ommerce, Go&ernment of India, for outstanding e%portperformace for the year /00:0.

HEG has also won the country's top e%port award instituted -y the

9hemical 5llied !roducts E%port !romotion 9ouncil "95!EIL# foroutstanding e%ports for / consecuti&e years. 6or *((/(*, HEG wasawarded the 1Highest3 E%port 5ward.

HEG has the largest Integrated Graphite Electrodes manufacturingplant in =outh 5sia and the ;iddle East. It is also the second largest inthe world.

HEG has -een regularly e%porting electrodes since /0/ and todaye%ports more than () of its production.

HEG's graphite electrodes are e%ported to *+ countries around theworld, including de&eloped countries li8e =5, 9anada, Germany,6rance, Italy, =outh orea, 5ustralia etc. a reward for ourcommitment to


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Human Resource "anagement

:E0 operates in an industry #here technical

competence and e;pertise is paramount. he company

maintains that :uman 9esources is a $ey dri!er o%

"usiness gro#th.

#rgani-ational evelopment

:E0 "elie!es that producti!ity enhancement comes

%rom #ell-structured and %ocused training and

de!elopment programmes. he Company continually

endea!ours to e


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programmes aimed at ingraining a culture o%


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$he principal raw materials used in the manufacture of electrodes are Needleco8e and pitch.

$he Needle co8e is crushed, screened and mi%ed with pitch in controlledproportion at a-out /(K9. $he paste, e%truded through an e%trusion press, isstored as 'Green =toc8'. $he Green =toc8 is -a8ed slowly to ((K9 inspecially designed furnaces. $he meticulously controlled conditions ensurethe pitch co8es satisfactorily. Before co8ing, the pitch loses a considera-leamount of &olatile matter and the resulting electrodes are 8nown as 'Ba8edElectrodes'.

6or high mechanical strength, density and current carrying capacity, theBa8ed Electrodes are impregnated with special pitch to fill completely theporosity which results from the &olatile matter -eing dri&en off during -a8ing.6ollowing impregnation, the products are -a8ed again to ensure completeco8ing of Impregantion !itch.

$he Ba8ed Electrodes then undergo a process of Graphitisation, whichin&ol&es heating them to temperatures in the range of *(( A(((K9 inlengthwise graphitisation furnaces. $he Graphitisation process itself lastsonly to /* hours and the cooling down period ta8es se&eral hours.

5fter -eing ta8en out from the furnace, the electrodes are su-ected to &erystrict uality control chec8s -efore -eing passed for machining.

$he machining operation in&ol&es turning of the electrodes to the reuireddiameter and matching end soc8ets to accept threaded nipples. 5ll soc8etsand nipples are machined to &ery close tolerances.


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Maintaining cleanliness at our #or$place.

>ptimi3e utili3ation o% resources including #ater energy stationery.

Wastes minimi3ation including solid and li


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organisation where uality is the inspiration and inno&ation is the way oflife.


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$he 9ompany's philosophy on 9orporate Go&ernance en&isages theattainment of the highest le&els of transparency, accounta-ility andeuity, in all facets of its operations, and all its interactions with thesta8eholders,including shareholders, employees, customers, go&ernment, suppliersand lenders and to -uild the confidenceof the society in general. $he company is committed to pursue growth -yadhering to the highest national andinternational standards of 9orporate Go&ernance.

Chairman messa"e

ear Shareholders,

(iscal 345305& was a heartening /ear when, despite prevailingchallenges, we grew net sales 567 and net pro)it 847 over theprevious /ear'

*hallenging times

Graphite electrodes, a &ital input in steel ma8ing, represents an indirect

pro%y of economic growth. In *(/*, the glo-al economic momentumdecelerated on account of &arious intertwined factors the euro@one


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crisis, = fiscal cliff, fore% &olatility, disruption of glo-al oil supplies andslowing in&estments in emerging economies. $he result is that theglo-al steel industry grew a mere /.*) "-ut for 9hina it would ha&e

gone down#, the lowest in a decade. Glo-al steel players incurredsi@ea-le losses in *(/*. 5s a natural e%tension, this affected graphiteelectrode demand. Longterm contracts ga&e way to need-ased spotpurchases. $he glo-al industry encountered a /((,((( ;$ increase inproduction capacity "+,((( ;$ in 9hina#, creating an o&ersupply thatpared realisations.

1nspired response

$he scenario was e&en more challenging for HEG Limited. $he

9ompany commissioned its /D,((( $!5 e%pansion during the pre&iousyear, ta8ing its total capacity to (,((( $!5. =o at a time when e&enmar8eting the &olumes of the pre&ious year would ha&e posed achallenge, the 9ompany was now reuired to -ring new capacities onstream without a compromise in efficiencies on the one hand and withadeuate mar8eting on the other.

I am happy to state that HEG responded commensurately to thesituation. $he 9ompany created new mar8ets and customers. It

mar8eted &alueadded products to discerning customers. It optimisedresource consumption. It strengthened operating efficiencies. Itwidened funds sourcing and rationali@ed costs "for wor8ing capital# -yclose to /(( -ps. Besides, the 9ompany was fortunate that a-undantrainfall translated into the second highest hydropower generation in ourhistory. Besides our thermal power efficiencies were the -est e&er too.

$he result was that despite a slowdown, the 9ompanys sales &olumesremained at *(///* le&els the 9ompany impro&ed realisations at thetime of an industrywide decline in realisations.

(ast )orward

$he glo-al economy is e%pected to re&i&e gradually e&en as downsideris8s remain significant. $he recessionary conditions in Europe couldpersist the Euro region will continue to pose the largest glo-aldownside ris8. $he I;6 estimate for glo-al G>! growth in *(/A isA.*+) "a downgrade from its initial estimate of A.+)#.

7nce the glo-al economy -egins to re&i&e, in&entory restoc8ing couldemerge coupled with impro&ed steel production. Glo-al steel usage is


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e%pected to grow from /.*) in *(/* to *.0) in *(/A "=ource4


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-usiness during industry downtrends, there-y protecting its &ia-ilityacross mar8et cycles.

7n -ehalf of the management and the Board of >irectors, I would li8e tothan8 you for your continued support. I also ta8e this opportunity tothan8 our customers, employees, suppliers, ser&ice pro&iders, financialinstitutions and -an8ers for their contri-ution towards the 9ompanyssuccess.

irector

#irector *eport

!rint

;ar*(/* ;ar *(/A>ear mem-ers,

$he >irectors ha&e pleasure in presenting their D/st 5nnual ?eport andaudited statements of accounts for the year ended A/st ;arch, *(/A.

/. "i# 6inancial ?esults

"?s. in 9rore#

*(/*/A *(///*

Net =ales //:.DA /D*A.00

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7ther 7perating Income +./ (.*

$otal Income from 7perations "Net# /**./ /D*D./

7ther Income /A.( /.:0

$otal Income /A.*/ /DD/.D(

!rofit -efore E%ceptional items, 6inancecost, >epreciation and A(.:/ *+.(

5mortisation

E%ceptional Items "++.*(# "0*.+#

!rofit -efore 6inance cost, >epreciationand 5mortisation *+/.+/ /+.:+

6inance cost A.( D(.

!rofit -efore >epreciation and 5mortisation /:.0/ /*+.(

>epreciation and 5mortisation *.D +:.0A

!rofit Before $a% /*+.*: :./D

!ro&ision for $a%ation4

9urrent Mear /.(0 .

Income $a% for earlier years A.A0 "/.D#

Net !rofit for the !eriod /(+.:0 *.A*


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E!= "Basic# ?s. *.D /+.AD

"ii# 5ppropriations

5mount a&aila-le for appropriation D(.*A AA/./:

?e&ersal of proposed di&idend and di&idenddistri-ution ta% on shares /.*A-ought -ac8 >i&idend 4

a# 7n Euity =hares

!roposed >i&idend A/.0: /0.0

-# >i&idend >istri-ution $a%

7n !roposed >i&idend +.DA A.*D

$ransfer to4

a# General ?eser&e *+.(( :.+(

-# >e-enture ?edemption ?eser&e /.*+

c# $ransfer from >e-enture ?edemption ?eser&e *+.(:

Balance carried forward A.0( A((.DA

*. 7&erall !erformance


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$he 9ompany recorded Net =ales ?s.//:.DA crore as compared with?s./D*A.00 crore in the pre&ious year. $he Net !rofit has increased to?s./(+.:0 crore as compared with ?s.*.A* crore in *(///* translatingto -asic earning per share at ?s.*.D as against ?s./+.AD in 6inancial

Mear *(///*.

A. =u-sidiary 9ompany and 9onsolidated 6inancial =tatements

$he statement pursuant to =ection */* of the 9ompanies 5ct, /0+relating to the su-sidiary 9ompany '';Cs HEG Graphite !roducts and=er&ices Ltd'' is anne%ed. 5lso, the consolidated financial statementsalong with the 5uditors ?eport thereon, form part of the 5nnual ?eport.

In terms of the 9ircular of the ;inistry of 9orporate 5ffairs dated th6e-ruary, *(//, the Board of >irectors has decided not to anne% theannual accounts of the su-sidiary 9ompany in this 5nnual ?eport. $heannual accounts of the su-sidiary 9ompany and the related detailedinformation shall -e made a&aila-le to the shareholders of the 9ompanyand the su-sidiary 9ompany see8ing such information at any point of time. $he annual accounts of the su-sidiary company shall also -e 8ept

for inspection -y any shareholder at the registered office of the9ompany and of the su-sidiary 9ompany. $he 9ompany shall furnish ahardcopy of details of accounts of su-sidiary 9ompany to any shareholder,on demand.

D. >i&idend

$he Board, has recommended a di&idend at the rate of ?s.C per shareon Euity =hares of ?s./(C each for the financial year ended A/st;arch, *(/A, su-ect to your appro&al at the 5nnual General ;eeting.

+. 7perations

$he analytical re&iew of the 9ompany''s performance and its-usinesses, including initiati&es in the areas of Human ?esources and9orporate =ocial ?esponsi-ility ha&e -een presented in the section of


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;anagement >iscussion and 5nalysis of this 5nnual ?eport.

Graphite Electrodes

>uring the year under re&iew, the production &olumes of graphiteelectrodes were almost similar as compared with the last financialyear. 7perational efficiencies, -etter e%change rates coupled withcontrolled finance costs, impro&ed margins.

!ower Generation

Better a&aila-ility of lin8age coal for our capti&e thermal power plants and record power generation at our hydel power unit has helpedimpro&e the -ottomline during the year.

$he 9ompany''s installed capti&e power capacity mitigates ris8 of erratic power supply from the =tate grid for the entire e%pandedGraphite Electrode capacity of (,((( $!5.

. 9orporate Go&ernance

5 report on 9orporate Go&ernance forms part of the 5nnual ?eport alongwith the 5uditors'' 9ertificate on its compliance.

:. ;anagement >iscussion and 5nalysis

;anagement >iscussion and 5nalysis ?eport as reuired under theListing 5greements with the =toc8 E%changes forms part of the 5nnual ?eport

. Internal 9ontrol =ystems and adeuacy thereof

$he 9ompany has an adeuate internal control system commensuratewith


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the si@e and nature of its -usiness.

5n internal audit programme co&ers &arious acti&ities and periodical

reports are su-mitted to the management. $he 5udit 9ommittee re&iewsfinancial statements and internal audit reports along with internalcontrol systems. $he 9ompany has a well defined organisationalstructure, authority le&els and internal rules and guidelines for conducting -usiness transactions.

0. !ersonnel

a# Industrial ?elations

$he industrial relations during the period under re&iew generallyremained cordial at all the plants of the 9ompany.

-# !articulars of Employees

$he information of employees recei&ing salary in e%cess of the limitsas prescri-ed under the pro&isions of =u-section "*5# of =ection */:of the 9ompanies 5ct, /0+, who were employed throughout or for a partof the financial year under re&iew is gi&en as an anne%ure forming partof this ?eport.

/(. !u-lic >eposits

Mour 9ompany has not in&ited any deposits from pu-licC shareholders inaccordance with =ection +5 of the 9ompanies 5ct, /0+.

//. 9onser&ation of Energy, $echnology 5-sorption, 6oreign E%changeEarnings and 7utgo

$he information with regard to 9onser&ation of Energy, $echnology

5-sorption, 6oreign E%change Earnings and outgo in accordance withthe


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pro&isions of =ection */:"/#"e# of the 9ompanies 5ct, /0+ read withthe 9ompanies ">isclosures of particulars in the ?eport of Board of >irectors# ?ules, /0, is gi&en as an anne%ure forming part of this?eport.

/*. >irectors

$hree of your >irectors namely =hri >.N. >a&ar, =hri =he8har 5garwaland >r. amal Gupta shall retire -y rotation at the ensuing 5nnualGeneral ;eeting and -eing eligi-le, offer themsel&es for reappointment. $he Board recommends their re appointment.

Mour >irectors inform you a-out the resignation of =hri N ;emaniw.e.f. /0th ;arch, *(/A. $he Board appreciates the &alua-lecontri-ution and guidance e%tended -y =hri . N. ;emani during histenure as a >irector of the 9ompany.

/A. 5uditors

;Cs >oogar 5ssociates, 9hartered 5ccountants and ;Cs =.=.othari;ehta 9o., 9hartered 5ccountants, 5uditors of the 9ompany, willretire from their office at the ensuing 5nnual General ;eeting. $heyare, howe&er, eligi-le for reappointment. $hey ha&e furnished a9ertificate to the effect that their reappointment will -e inaccordance with limits specified in =u-section "IB# of =ection **D of the 9ompanies 5ct, /0+. Mou are reuested to consider their reappointment.

$he 5uditors'' ?eport read along with notes to accounts is self e%planatory and therefore does not call for any further comments.

/D. 9ost 5uditors

In conformity with the directi&es of the 9entral Go&ernment and -asedon the 5udit 9ommittee recommendations at its meeting held on ;ay A,

*(/A, the Board has appro&ed the re appointment of ;Cs. N.>. Birla


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9o., as the 9ost 5uditors of the 9ompany for the financial year *(/A*(/D, su-ect to appro&al of the 9entral Go&ernment.

/+. >irectors ?esponsi-ility =tatement $he >irectors confirm that4

i# In preparation of the annual accounts, the applica-le accountingstandards ha&e -een followed and there are no material departures fromthe same

ii# $hey ha&e selected such accounting policies and applied themconsistently and made udgments and estimates that are reasona-le and

prudent so as to gi&e a true and fair &iew of the state of affairs of the 9ompany at the end of the financial year ended A/st ;arch, *(/Aandof the profit of the 9ompany for the year under re&iew

iii# $hey ha&e ta8en proper and sufficient care for maintenance of adeuate accounting records in accordance with the pro&isions of the9ompanies 5ct, /0+ for safe guarding the assets of the 9ompany andfor pre&enting and detecting frauds and other irregularities and

i $hey ha&e prepared the annual accounts on a going concern -asis.

/. 5c8nowledgements

Mour >irectors wish to place on record, their appreciation for the&alua-le assistance and support recei&ed -y your 9ompany from -an8s,financial institutions, the 9entral Go&ernment, the Go&ernment of ;adhya !radesh, the Go&ernment of ttar !radesh and theirdepartments.$he Board also than8s the employees at all le&els, for the dedication,commitment and hard wor8 put in -y them for 9ompany''s achie&ements.

6or and on -ehalf of the Board of >irectors


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!lace4 Noida ".!.# ?a&i Jhunhunwala

>ated4 ;ay A, *(/A 9hairman ;anaging >irector

*ecruitment

Recruitment refers to the process of attracting, screening, selecting,and on-oarding a ualified person for a o-. 5t the strategic le&el it mayin&ol&e the de&elopment of an employer -rand which includes an'employee offering'.

$he stages of the recruitment process include4 o- analysis andde&eloping a person specification the sourcing of candidates

-y networ8ing, ad&ertising, or other search methods matchingcandidates to o- reuirements and screening indi&iduals using testing"s8ills or personality assessment# assessment of candidates'moti&ations and their fit with organisational reuirements -y inter&iewingand other assessment techniues. $he recruitment process alsoincludes the ma8ing and finalising of o- offers and the inductionand on-oarding of new employees./O

>epending on the si@e and culture of the organisation recruitment may

-e underta8en inhouse -y managers, human resource generalists and Cor recruitment specialists. 5lternati&ely parts of all of the process might-e underta8en -y either pu-lic sector employment agencies, orcommercial recruitment agencies, or specialist search consultancies.
http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Employer_brandinghttp://en.wikipedia.org/wiki/Social_networkhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-1http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Employer_brandinghttp://en.wikipedia.org/wiki/Social_networkhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Recruitment#cite_note-ACAS-1

comapny project new 1

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