institutional training underwent

7/28/2019 INSTITUTIONAL TRAINING UNDERWENT

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A REPORT ON

INSTITUTIONAL TRAINING UNDERWENT

IN

GREAVES COTTON LTD (HEAVY ENGINEERING UNIT)

A project report Submitted to the

UNIVERSITY OF MADRAS

In partial fulfillment of the requirement for the degree of bachelor of

B.COM,(CS), (CORPORATE SECRETARYSHIP)

Submitted By

NAME: R.PRAVEEN KUMAR

REGISTER NO: BS00893

Under The Guidance of

MRS .T.JESSY M.COM, M. PHIL .,

Department of commerce (Corporate Secretaryship)

SRI DEVI ARTS AND SCIENCE COLLEGE

Krishnapuram,ponneri-601 204

MARCH-2013

SRI DEVI ARTS AND SCIENCE COLLEGE

Krishnapuram,ponneri-601 204

Department of commerce (Corporate Secretary ship)


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CERTIFICATE

This project report is prepared under the guidance of the DEPARTMENT

OF CORPORATE SECRETARYSHIP. SRI DEVI ARTS AND SCIENCE

COLLEGE . Based on the institutional training undergone by the student in the

company . This report has been evaluated by the external examiner who has

conducted the VIVA-VOCE examination for the award as all the guidelines laid

down by the University Of Madras.

PRINCIPAL

Signature of supervisor Signature of HOD

Signature of the

External examiner


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DECLARATION

I here by affirmed that information which are submitted by

me only on the basis of facts. I have collected during the training periodof greaves cotton ltd (heavy engineering unit )of the award of under

graduation in corporate secretary ship under the moral support of

Miss. P.Meenakshi. M.Com,M.phil.,

I strongly declare that these are not formed previously for the

basis of award of any degree. Associate ship diploma of fellow ship of

any other academic course.

Place:

Date: (R.PRAVEEN KUMAR)


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ACKNOWLEDGEMENT

I am extremely to do my bachelors degree in corporate secretary ship

from Sri Devi Arts And Science College krishnapuram deep gratitude to

principal MR.GNANASEGAR. M.sc ,M.phil.,P.hd., for having permitted

me to under gone training of primary agricultural co-operative bank.

I remember MR.P.RAMESH. B.sc,M.L., secretary of Sri Devi

Arts And Science College Ponneri.

With deep sense of gratitude I would like to thank the production

manager for his valuable guidance I am very much indebted to our distinguished

Miss.P.MEENAKSHI. M.com, M.phil, for her encouragement and

throughout training and for preparing this project.

Finally I would like o extend my thanks to my friends and who have

helped me to complete the project work as a successful one.

(R.PRAVEEN KUMAR)


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CORPORATE SECRETARYSHIP COURSE

Corporate secretary ship course is one of the best courses in the present days

as it is a 100% job oriented course. In this course the student must undergo one

month institutional training in a registered company.

After finishing this course the student can join in a company as an employee

particularly in the finance, personal and secretarial department and it is also usefull

for a future studies. It is a chance in this course to see the functions of the company

to practice. The company will issue a certificate to the students to undergone

institutional training.


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CONTENTS

UNIT TOPICS PAGE NO

I INTRODUCTION

II HISTORY OF THE COMPANY

III ORGANIZATIONAL STRUCTURE & LAYOUT

IV DEPARTMENTATION

V RATIO ANALYSIS

VI SUMMARY & CONCLUSION

VII BIBLIOGRAPHY

VIII ANNEXURES


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INTRODUCTION


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CHAPTER I


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INTRODUCTION

Greaves Cotton (GCL), incorporated in 1922, is a well-diversified

engineering company. The company is engaged in manufacturing of diesel and

petrol engines, gensets, agro equipments and construction equipments. The

company owns six manufacturing units located in the states of Maharashtra and

Tamil Nadu.

The companys manufacturing units have received ISO 9001:2000 and ISO

14001:2004 certifications for quality management. Headquartered at Pune, the

company has a pan-India presence of its marketing offices.

In 1991, Greaves Cotton was first to form Indo-Russian joint venture in the

private sector, namely Rajasthan Polymers and Resins, to manufacture 20,000 TPA

of ABS/HIPS resins. This business was later merged with the company in the year

1999.

In 1995-96, the company commenced a joint venture with SAME SpA, Italy

to form SAME Greaves that is engaged in manufacturing of diesel engines.

In 1998-99 the company started commercial production diesel engines. Later

in 2001-02 this company exited from this venture.

The company also entered joint venture with Piaggio Veicoli Europei SpA

of Italy to form Piaggio Greaves Vehicles. The company exited from this venture

in 2000-01.

In April 2008 the company entered into a technical collaboration with

Bomag GmbH, Germany to manufacture the latest generation 19-ton vibratory soil

compactors in India.


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PRODUCTS

Power Generations

The company manufactures diesel engines ranging from 10-1000 HP that

has application in diesel generating sets, barges, pilot launches, compressors,

construction equipment, cranes and forklifts. Under this, company manufactures

dual fuel engines/gensets ranging from 30 KVA to 400 KVA. It also manufactures

gas engines / gensets operating on natural gas thats from 125 KVA to 300 KVA.

The companys foundry division sources ductile iron casting for Greaves Engines.

Agro-Equipments

The company manufactures lightweight petrol, diesel / kerosene engines

ranging from 1-4 HP and gensets in the 1.4 KVA range. The products are used in

power sprayers, pumpsets and power reapers.

Lightweight Engine

The companys lightweight diesel engines are used in 2-wheelers, 3-

wheelers, mini cars, etc. Greaves manufactures these engines ranging from 4-11

HP. Greaves light diesel engines are widely used in defence applications.

Infrastructure Equipment

Under this, the company manufactures products that caters construction

industry. Greaves manufactures a spectrum of products such as transit mixers,

concrete pumps, batching plants, vibratory soil compactors, heavy tandem rollers,

light tandem rollers, etc.


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Aero Engines

The company is authorised distributor of Rotax Aircraft Engines in India and it is

manufactured by BRP-Powertrain GmbH & Co. KG in Austria. These engines are

manufactured for PWC, ATV, Snowmobile, Motorcycle, Kart, Watercraft and

Aircraft.

Future Prospects

Greaves Cotton is focusing on export markets such as Middle East and Africa. It is

also focusing on strengthening its dealers /distributors network to tap the potentialmarket for engines, gensets and construction equipment. In its IT front, the

company is planning to implement SAP ERP system.

BUSINESS DIVISION

Auxiliary power

Greaves leads the field in the manufacture of diesel engine (10-

1000HP)Used for diesel generating sets, barges, pilot launches, compressors,

construction equipment,cranes, forklifts and various applications.

Agricultural Equipments

Greaves manufactures lightweight petrol, diesel/kerosene engines in the 1-4

hp range and portable eco-friendly silent gensets in the 1.4 kva range at its iso

9001 certified petrol engines unit in chennai.


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Construction equipment

To meet the challenges of construction industry ,greaves manufactures wide

range of road and concrete equipment .the complete range of concrete equipment

like transit mixers , concrete pumps, batching plants, etc are manufactured at the

company,s ISO 9001 certified plants at Chennai and gummidipoondi (tamil nadu ).

Automotive

Highly fuel efficient ,greaves lightweight diesel engines are ideal for

automotive applications like 2 wheelers, 3-wheelers and four wheeled small

commercial vehicles.

These engines with high power-to-weight ratio are used extensively for

portable agricultural pump sets, gensets.

Industrial Engines

Greaves manufactures engines using diesel, gasoline and other fuels in the

range of 1-700HP.Manufactured at sate of the plants located across india, greaves

engines find wide application in marine, agricultural, construction and other

industrial uses.

Objectives of study

To analysis financial performance of greaves cotton limited.

To study about the department function. To study about the organization and its growth. To carry the customer service. To carry on general business.


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HISTORY OF THE

COMPANY


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CHAPTER II


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HISTORY OF THE COMPANY

YEAR EVENTS

1922

The company was incorporated on 29th March, as a Private Ltd. company. It

was converted into a Public Limited Company on 8th May,

1950

The main objects of the company is to act as merchants, engineers and

contractors. The company has a large number of associated and subsidiary

companies manufacturing various items of electrical and machinery products. It

also acts as concessionaires for a large number of firms in U.K. The company

manufactures paper cones and tubes for the cotton textile industry and diamond

drilling bits.

- Equity shares were issued without payment in cash.

1958

Greaves Dronefield Company was floated in collaboration with Dronsfield

Brothers Ltd., Oldham for the manufacture of their well-known "Atals" brand

emery fillets. It was registered on 31st December, and it went into production soon

thereafter.

1959

Mather Greaves Company was registered on 6th August, for the

manufacture of calender bowls.


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1960

The company concluded a technical collaboration agreement with Mandrills

Ltd., of Melbourne, Australia for the manufacture of diamond tools.

The company was floated in collaboration with David Brown Industries

Ltd., for the manufacture of Radicon worm reduction gears and geared motor units

and was registered on 6th June. Later, the company was also licensed to

manufacture David Brown marine gear boxes.

Draton Greaves concern was floated in collaboration with Drayton Regulator

& Instrument Co. Ltd., of Middlesix for the manufacture of steam traps and

regulators and registered on 19th August.

1963

After consolidating the manufacture of calender bowls, the company

embarked on the production of Schriner calenders, stenter clips, mangles, printing

machines, etc.

On 22nd April, it became a subsidiary of the company by virtue of such

allotment of 425 shares of Rs. 100 each to the company in terms of the

collaboration agreement.

1965

Mather Greaves Ltd., undertook the entire marketing of its products

resulting in the termination of their Sole Concessionaires Agreement with Greaves

Cotton & Co. Ltd.


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1967

The other subsidiaries are Greaves Leasing & Finance Ltd., Rajpath

Investment Ltd. Cannation Investment Ltd. Greaves Midwest Engineering Co. Ltd.

and SIDVIM Ag.

1975

Greaves Lombardini Company in collaboration with Lombardini Motori of

Italy promoted Greaves Lombardini Ltd., for the manufacture of diesel engines.

Greaves Lombardini Ltd., was incorporated on 21st May, under the name and style

of Greaves Diesels Ltd., and the name was subsequently changed to the present

one.

1982

Consumption of emery fillets in the home market during the last quarter of

1982 and the beginning of 1983 was less due to prolonged textile strike in the

country.

1983

5% tax-free Pref. shares made 13.5% taxable from 1.7.1983. 25,000-6%

Pref. share redeemed on 31.3.1984. 2,12,625 Bonus Equity shares issued in prop.

1:2 on 23.3.1984.


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1984

Greaves Lombardini Ltd., was merged with Greaves Cotton & Co. Ltd.

1985

Consequent upon the purchase by Greaves Cotton & Co. Ltd., of 50% shares

held by Dronsfield Brothers Ltd., U.K. Greaves Dronsfield Ltd., became a wholly

owned subsidiary of Greaves Cotton & Co. Ltd.

A technical collaboration agreement was entered into with David Brown

Gear Industries, U.K., for the manufacture of hardened and profile ground helical

gear boxes. Government gave its approval.

20,265-15% Pref. and 19,250 No. of equity shares allotted without payment

in cash to members of Greaves Lombardini, Ltd. on its merger. These Pref. shares

redeemable at 1.7.1996 but before 15.6.1998 at the company's option.

1988

25,000-15% Pref. C shares paid off. 3,28,562 Bonus Equity shares issued in

proportion 1:2.

1989

To improve exports further, it was proposed to open offices in the USSR

and East Africa. The works at the Nasik plant resorted to go-slow and the company

was forced to declare a lock-out of the plant effective from 14th June, 1990. The

lockout was lifted on 20th October, 1990.


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1990

During the year, the company introduced Greaves portable light weight

diesel Genset viz., Greaves-GD3000.

The company entered into an understanding with the Rajasthan State

Industrial Development and Investment Corporation Ltd. (RIICO) for the setting

up of a unit at Abu Road in Rajasthan for manufacture of ABS Resins in

collaboration with Technochim and Plastpererabotka (Russian partners).

The company undertook to set up a 3-wheeler autorickshaw manufacturing

unit at Baramati, Maharashtra.

During the year, the company undertook to increase existing capacity of the

light weight engines unit at Aurangabad to 32,500 units from the existing 22,500

units.

Greaves Chitram, Ltd., (Chitram) was amalgamated with the Company. The

erstwhile shareholders of Chitram were allotted one equity share of Greaves Cotton

Co., Ltd., for every 412 shares held by them in Chitram.

1991

During the year, the Company had converted the representative office at

Singapore into a trading office.

The company proposed to set up a joint venture company with Frabelle

Fishing Corporation, Philippines to undertake deep sea tuna fishing in the

exclusive economic zone of the territorial waters of India.


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Subject to necessary approvals being obtained, Greaves Semiconductors Ltd.

(GSL), a subsidiary of the company, was proposed to be amalgamated with the

Company with retrospective effect from 1st April 1989.

During April-May, the company offered 32,89,488 - 12.5% secured fully

convertible debentures of Rs. 40 each on Rights basis in the proportion 1 debenture

: 3 equity shares held (all were taken up): Additional 4,93,341 debentures were

allotted to retain over subscription.

Simultaneously, another 1,64,475 - 12.5% debentures of Rs. 40 each were

issued to employees including Indian working directors of the Company on an

equitable basis (only 75,200 debentures taken up). UN subscribed portion of

89,275 debentures allowed to lapse.

Each debenture of Rs. 40 was fully and automatically converted into one

equity share of Rs. 10 each at a premium of Rs. 30 per share after 12 months fromthe date of allotment of debentures. Accordingly, 38,58,029 No. of equity shares

were allotted in July 1992.

50 No. of equity shares allotted without payment in cash to members of

Greaves Chitram Ltd., on its merger.

1992

The company's operations at Marol was suspended in October and the land

and building had since been disposed of. The Nashik plant was reported to be

suffering from lack of profitable orders from the Government sector. Efforts were


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on to diversify the product portfolio.

The power transmission unit II (erstwhile David Brown Greaves Ltd.) Falta,

W. Bengal was commissioned.

During November the company offered share on 1,37,14,949 No. of equity

shares of each at a premium of Rs. 70 per rights basis in the proportion 1:1. (all

were taken up). Another 6,85,747 No. of equity shares of Rs. 10 each at a premium

of Rs. 70 each were offered to the employees of the company on an equitable basis

(only 26000 shares taken up).

The company offered for sale 26,82,240 No. of equity shares of Rs. 10 each

of Greaves Fosico Ltd. at a premium of Rs. 60 per share.

Rajasthan, Polymers & Resins Ltd., an associate Company offered on

preferential basis 12,68,000 - 14.5% secured redeemable partly convertible

debenture of Rs. 25 each of Rs. 10 of the face value was to be converted into 1

equity share on allotment of debenture Rs. 15 was to be redeemed.

Subject to necessary approvals being obtained, the company proposed to

issue 1473,81,765 bonus equity shares in proportion 1:2.

28,552 No. of equity shares allotted to shareholders of erstwile Greaves Ltd.,

on its amalgamation 19,91,903 No. of equity shares allotted on amalgamation of

Ruston & Honnsberg Ltd. and David Brown Greaves Ltd. within company.

137,40,949 Rights shares issued to shareholders and employees.


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1993

The company entered into a joint venture agreement with a few parties in

Singapore for trading in Vietnam and other parts of the world. A new company

was registered in Singapore in the name of Pacific Greaves Pte. Ltd.

It was also proposed to set up a joint venture company with overseas

consortium partners for installation and developed of part infrastructure in Russia.

Effective 19th August, the name of the company was changed to Greaves

Ltd., from Greaves Cotton & Co. Ltd.

38,58,029 No. of equity shares (prem. Rs. 30) was allotted in conversion of

12.5% fully convertible debs. 28,552 No. of equity shares allotted to shareholders

of erstwhile Greaves Semi-Conductors Ltd. on its amalgamation. 19,91,903 No. of

equity shares allotted on amalgamation of Ruston & Hornsby Ltd. & David Brown

Ltd. with the company. 137,40,949 Rights equity shares allotted.

1994

Two new products were launched viz., diesel three wheelers and sale of

HIPS resins and partly from the petrol engine unit at Thoraipakkam and

Commencement of production of diesel engines at Ranipet, both acquired in

January.

The company undertook a project for the manufacture of rolling cutter rock

bits, used largely in oil well drilling and also for waterwell drilling in collaboration

with Smith Tool Company, a division of Smith International, Los Angeles, U.S.A.

For this purpose a new factory was set up in the MIDC Industrial Estate at Nasik.


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Effective 31st January, the company acquired the Thoraipakkam properties

of Enfield India Ltd., Chennai. The company undertook to invest in the Ranipet

complex to manufacture light diesel engines which was originally planned for at

Aurangabad.

The company proposed to enter the field of agricultural tractor and

associated diesel engines manufacture in Rankipet, Tamil Nadu in collaboration

with a well known Italian manufacturer.

The company has signed a licence agreement in June to avail technology

from SAME for the manufacture of certain range of tractors.

1995

147,38,176 shares allotted as Bonus shares in prop. 1:2.

1996

The company achieved 94% of the installed capacity in the manufacture of

Greaves Garuda diesel 3-wheeler. However, the original plans for introducing the

eco-friendly 4-stroke petrol engined 3-wheeler could not materialise during the

year.

The Company proposed to set up an industrial park of international standard

at Ranjangaon near Pune in collaboration with Overseas consortium partners and in

association with Maharashtra Government agencies viz., the SICOM & MIDC.

The company proposed to introduce an eco-friendly 4-stroke Petrol engined 3

wheeler.

The company entered into a technical collaboration with SAME Spa, Italy


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for the manufacture of agricultural tractors and signed a joint venture agreement

with SAME for the manufacture of diesel engines for tractors and other uses.

The company proposed to increase the capacity for the manufacture of diesel

generating sets at Diesel Engines Unit in Chinchwad, Pune to cater to the enhanced

demand in the market.

The company entered into a joint venture agreement with Same Deutz Fahr

SPA of Italy for manufacture of diesel engines.

1997

Greaves Ltd, the engineering arm of the Thapar group, is entering into the

automotive sector with tractors and two models of three-wheelers - one a six-seater

diesel versions and the other a three-seater petrol model.

The production capacity of high speed diesel engines manufactured at

Aurangabad and Ranipet will be increased form 60,000 engines per annum to

100,000 engines per annum.

The company is to launch the Garuda six-seater diesel three-wheeler which

conforms to 1996 emissions norms and will be shortly introducing the Garuda

four-stroke petrol three-wheeler.

In the transportation division, the manufacturing capacity of the diesel run

three wheeler garuda is proposed to be increased to 60,000 from the present

24,000.


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The company proposes to launch the production of the petrol version of the

Garuda in the first quarter of 1997-98 incorporating new features such as electric

start and four-stroke engines.

Greaves proposes to later launch a six-seater diesel vehicle and flat bed load

carriers in the country.

Piaggio, the Italian auto major, is close to tying up with Greaves for

manufacturing a range of diesel three-and four-wheelers in the country. The two

companies signed a memorandum of understanding and have already initiated a

joint feasibility study.

The Power Transmission Division (PTD) of the company is on the verge of

signing two joint ventures - one with the Singapore-based Team Asia for semi-

conductors and another with an Italian company - Bonfigliloe - to manufacture

higher ranges of transmission equipment and various types of gear boxes, which

are applicable in heavy engineering and earth-moving vehicles.

Rajasthan Polymers & Resins Ltd (RPRL) is to be merged with Greaves Ltd

with effect from April 1, as part of a comprehensive rehabilitation package

approved by the Board for Industrial & Financial Reconstruction (BIFR).

1998

Greaves Ltd a LM Thapar group company, is doubling the manufacturing

capacity of internal combustion engines at its Thoraipakkam plant, near Chennai.

Greaves Limited, which is the country's largest manufacturer of diesel


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engines, proposes to enhance the manufacturing capacity of spark ignition internal

combustion piston engines - diesel, petrol land kerosene versions-from one lakh to

two lakh units per annum.

The Italian automobile major has an existing tie-up with Greaves for

manufacturing the Ape range of three wheelers in the country.

Greaves Ltd, is the largest manufacturer of diesel engines with factories

located at Pune, Aurangabad, Ranipet and Thoraipakkam, Chennai. Greaves has

also emerged as the largest manufacturer of IC engines in the country with a

production of 1.8 lakh engines.

A memorandum of understanding (MoU) was signed between the Thapar

company and the Dutch transmission equipment giant; BTR European Holdings, in

New Delhi.

The company entered into a memorandum of understanding (MoU) withBTR European Holdings of Netherlands (BTR) recently to float a subsidiary which

will be promoted in India by BTR or its associated companies.

Greaves Limited, the Thapar group company, launched a 50HP tractor,

"Same" Greaves 503, in Chandigarh.

1999

Greaves Ltd has joined hands with Piaggio S. P. A. of Italy to locally

produce in India compact engines with in-built gearboxes for the three-wheelers

which the two Companies would be manufacturing under their joint venture.


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Leading Auto manufacturer Greaves Ltd has tied up with two Chinese

companies to manufacture small tractors (power tillers) and plans to sell the

product at one third the price of a normal tractor.

Greaves has entered into an agreement with a Chinese company Chang Chai

and has also entered into an alliance with Dangefeng Agricultural Machinery

Group Corporation for manufacturing rest of the machinery and body of the power

tiller.

Greaves Ltd, engineering arm of the Thapar group, has launched a newrange of industrial gearboxes for the industry, making it the only company to offer

a wide end unique range of gearboxes for different industries.

The company has set up a plant at Baramati, Maharashtra, with a capacity to

manufacture 25,000 vehicles every year.

The company currently produces the `APE' range of diesel three-wheelers

under technical guidance from Piaggio. The company has just launched its APE

range of three-wheelers in the National Capital Region (NCR) of Delhi.

Greaves, which had entered the industry with 50 hp tractor during end-1998,

will manufacture `Solaris' tractors in the range of 25, 35, 45 hp at its Ranipet plant

in Tamil Nadu.


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2000

Greaves Ltd has decided to set up a 50:50 joint venture company with its

existing technical collaborator Same Deutz SpA of Italy to manufacture tractors

ranging from 25 hp to 70 hp.

The capacity of petrol/kerosene engines manufactured at Chennai will be

increased to 120,000 engines from the current capacity of 80,000 engines.

The Company have approved, in principle, the amalgamation of Rajpath

Investments Ltd. a wholly owned subsidiary of the company with Carnation

Investment Ltd. also another owned subsidiary of the company.

The Greaves engineering arm of Thapar Group, has entered into a technical

collaboration with Italian Construction equipment giant Cifa Spa for

manufacturing ready mix concrete equipment.

Greaves Ltd. has converted its tractor manufacturing operations in Ranipet

near Chennai, which was earlier a technical collaboration with SAME of Italy, into

a 50:50 joint venture with the Italian tractor major.

2001

Italian diesel engine major, Lombardini acquires engine manufacturing

facility of the Thapar group company, Greaves, at Aurangabad for a consideration

of Rs 11 crore


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2002

Greaves Ltd has informed that Mr K K Nohria has resigned from the office

of Director of the Company, in view of his pre-occupation.The Board of Directors

of the Company at its Meetings held on March 21, 2002 has appointed Mr VijayRai as a Director to fill the casual vacancy caused by the resignation of Mr K K

Nohria.

Italian auto firm Same Deutz Fahr Group SPA has taken over its Indian

partner, Greaves Ltd, for Rs 26.9 crore from its two tie-up, one to manufacture

tractors and the other for tractor engines

2003

Solaris Chemtech Limited acquires 950,000 equity shares of Rs 10 each of

Crompton Greaves Limited from Greaves Ltd., stake increases to 10.83% in the

company

Greaves Ltd to go back to its erstwhile name Greaves Cotton

2004

Greaves Cotton, part of the B M Thapar group has appointed Karan Thapar

as the chairman of the company

Greaves Cotton signs MoU with Premium Energy Transmissions

Inks MoU with Corporation Bank for financing farm machines to farmers


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2005

Launches of an all-new Greaves Metro Pump for the construction industry

Greaves Cotton unveils four new products

Greaves Cotton Limited has appointed Mr. Vikram Tandon as a Director of

the Company to fill the casual vacancy caused by the resignation of Gautam

Thapar.

2007

Greaves Cotton Ltd has informed that the Board of Directors of the

Company, has appointed Mr. S D Nayyar as Additional Director of the Company,

effective from September 26, 2007.

2008

Greaves cotton ltd has informed that the managing director of the company

has appointed Mr.M.Kumaran as additional director of the company effective from

January 29-2012.


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MEMORANDUM OF ASSOCIATION

A) An appraisal about ASSAM SMALL FARMERS AGRI BUSINESS CONSORTIUM(ASFAC)

Considering the enormous potentiality of horticulture in north eastern states

of india, the govt of india launched the Technology mission for integrated dev of

horticulture in north eastern states of india scheme to develop this sector in a

mission mode manner.

Many central and centrally sponsored schemes after being amalgamated and

incorporation in this technology mission it was also proposed to stream line the

flow of fund from govt of india to the concerned states and accordingly SMALL

FARMERS AGRIBUSINESS CONSORTIUM(SFAC),New Delhi was

constituted as a funding agency of national level.

In the meaning time all the north eastern states including Sikkim asked to

constitute a Small Farmers Agri-Business Consortium (SFAC) unit as a financing

organization to receive fund from central Small Farmers Agri-BusinessConsortium (SFAC) and release fund to different implementing agencies as per

rules. Accordingly the Assam unit small farmers Agri-business consortium was

constituted briefly named as Assam Small Farmers Agri-Business

Consortium(ASFAC) vide govt. notification No.AGA 153/99/107 dt.1ST

Oct/2001 with nine member board of management under chairmanship of

agriculture production commissioner, Assam which was registered under societies

registration Act, 1860 (Act XXI of 1860) on 24th dec 2001 and presently located at

directorate of agriculture campus, Assam Khanapara, Guwahati781022. Since its

establishment this society (ASFAC) has farmed up its own constitution and

network by opening bank account under technology mission in all the 23 districts

of Assam and started release of fund to those districts for implementing various


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components of Technology mission schemes approved by govt.for integrated

development of horticulture and to be implemented by the districts through

districts level implementation and monitoring committee headed by additional

deputy commissioner (Dev) of concerned district as constituted vide govt

notification No.AGA306/99/338, dated Dispur, the 19TH march 2002.

It may be mentioned that to facilitate co-ordination among constituent states

of north eastern india and also with central small farmers Agri-Business

Consortium has been setup at G.S. Road, jain complex (3rd floor), Near old Dispur

post office, guwahati-781005 wit an implied objectives of prescribed consultancy

services of states as and when required.

Agriculture department, govt of Assam has already taken up implementation

of different schemes under Technology Mission on integrated dev of horticulture

at different districts funded by Govt of india through central Small Farmers Agri-

Business Consortium (SFAC) and Assam Small Farmers Agri-Business

Consortium (ASFAC) for the following programmers;

Area expansion of certain horticultural crops, creation of water sources, on

farm water management, production of planting materials (Integrated multi crop

Nursery), transfer of technology through training, organic farming, promotion and

popularization of agriculture equipments, integrated pest management (IPM) rtc.

Under MM-II and strengthening of state agmark laboratories under MM-III (the

details of mini mission (MM) are indicated under ANNEXURE-III).


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ANNEXURE II

Functions and activities of the Assam small farmers Agri-Business

consortium(ASFAC).

In furtherance of the aims and objects of the Assam small farmers Agri-

business consortium(ASFAC) indicated in the memorandum of association, the

society may undertake itself and/or cause to be undertaken by the concerned

departments / agencies/ units one or more of the following tasks or activities in

addition to any other tasks or activities as may be considered to be appropriate and

necessary.

I. organize , assist and help initiatives for improving the production and

productivity levels of identified agriculture produce.

II. organize , assist and help establishment of appropriate link/ integrated

arrangement between production & marketing.

III. facilitate development of a sound marketing infrastructures covering

inter-alia establishment of processing units, quality control arrangement, market

intelligence and information, transportation, storage and such other arrangement as

may be necessary.

IV. Arrange / promote market studies and or specific commodity surveys at

the filed levels with a view to identify the agriculture products which have

potential for export and export development, quality standards and specifications,

competitive price level, trading channels, delivery schedules, promotional

measures etc.

V. arrange facilitate the formation of integrated commercial development

program or subject preferably farm or unit-wise, setting out, inter-alia products for


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export targets the import need of raw material etc., processing arrangement

between the producers and exporters, marketing etc.

VI. Assist organize export promotion programme including the sponsoring

of marketing teams, participation in specialized fairs and exhibition etc.

VII.facilitate identification and astablishment arrangements for undertaking

production for exports and help in meeting the import needs, ensuring quality

standards, reaching suitable marketing tie Ups.

VIII Facilitate/ monitor transport and storage arrangement under the specific

programmers and projects that may be formulated.

IX. Facilitate/ monitor the conclusion of contractual arrangements

according to the established commercial practices and norms

ANNEXURE III

Objectives and structure of the technology mission

In order to improve livelihood opportunities and to bring prosperity to the

North Eastern region (NER) including Sikkim, Govt. of India has launched a

Technology Mission for intergrated Development of Horiculture. The object of

the scheme is to improve the production and productivity of horticultural crops by

harnessing the potential of the region. Through this Mission, a horticultural based

farming system is to be developed, thereby providing viable and ample

opportunities for employment, especially for women, besides improving the

productivity of land.


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The specific objectives of the technology missions are :

o To improve productivity and quality of horticultural crops throughadoption of improved varieties / technology and up gradation of

existing production farming technologies

o To reduce post harvest losses and improve marketable of the productand its availability to consumers.

o To promote better utilization and increased consumption of theproduce to ensure higher returns to farmers producers and better

nutritional health to the people.

o To promote exports and export oriented growth.o To develop the strong base foe transfer of technology and human

resource.

o Development to support development activities. The technologymission has a structure of four mini mission (MM) viz.

Mini mission-I

In order to provide technology support, this mi ni mission aims at

1. Supply of nucleus basic seed and planting materials of horticulturalcrops.

2. Standardization of production and protection technologies.3. Technology generation, refinement and training through on farm trials.


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Mini Mission-II

The department of agriculture and co-operation (DAC) is the nodal

department for this mini mission. The mini mission primarily aims at increasing

the production and productivity of the horticultural produce in the region through

integrated implementation of various governmental programme based on compact

area development approach.

The major components of this mini mission are:

Area expansion Creation of water sources On-farm water management Production of planting materials Transfer of technology through training, frontline demonstration,

publicity and training of trainers.

Popularization of organic farming and use of Bio-fertilizers. Promotion and popularization of agricultural equipments. Promotion of integrated pest management. Establishment of plant health clinics. Establishment of tissue / leaf analysis laboratories. Entrepreneurial development of women farmers etc.

Mini mission-III

The major components are post harvest management

The existing approved schemes of National Horticulture Board (NHB)

with additional outlays are to be implemented in a more focoused way in the

mission mode .these includes:


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Development of commercial Horticulture through production & postharvest management.

Capital investment subsidy schemes for construction modernizationexpansion of cold storage.

Technology development & transfer for promotion of horticulture. Strengthening of nutritional status in rural areas. Strengthening of marketing infrastructure. Improvement of service in wholesale markets. Development of rural primary markets.

Mini mission-IV

The mini mission aims at addressing all the issue of processing and

marketing of processed products. The schemes of the department of food

processing industries ministry of agriculture are to be integrated in this mini

mission .The mini mission envisages:

1, Promotion of new units

2, Up gradation and modernization of existing units.3, Market promotion , research and development .

4,Human resource development.

1. The Name Of The Society:Assam small farmers Agri-Business consortium(ASFAC).

2.The Office Of The Society Is Situated In The Provinces/State:

The society is situated in the state of assam with its office Guwathi and

presently located at the directorate of Agriculture campus, Assam,

Khanapaara, Guwahathi-781 022.


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3.The objectives for which the society is established are as follows:

1, To catalyse agro industrial growth in different parts of assam based on

principles of ecological sustainability, economic sufficiency and social

equity.

2, To undertake or assist in undertaking taking for programmes for

employment generation, growth and diversification of agriculture and

other food based industries to increase food production and export of food

products in both primary and processed from including field or

Horticulture, Animal husbandry, Fisheries, Poultry and other areas related

with food.

3, To organize technology transfer through training and extension

involving non-government organizations, farmers association and pathar

parichalana samitee(FMC)

4, To sponsor specific and relevant research projects and technology

demonstration.5, To organize input, material supply and production service through

public, private and co-operative sector.

6, To identify and promote post harvest processing manufacturing units in

the public, private and co-operative sectors.

7, To promote organization of marketing chains both for domestic and

export marketing.

8, To build a cadre of skilled managers for managing the affairs of various

units being established as a part of the development process.

9, To provide technology and market in support for the development of

rainfed and drought prone areas and marginal land.


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10, To create opportunities for skilled employment in villages through

biological software industries such as the manufacture of bio-fertilizer and

bio-pesticides and establishment of bio-mass refineries and promote

agriculture and bio-mass related business activities for food security and

for incremental incomes to producers in the context of liberalized world

trade in food and agriculture commodities.

11, To rvive and strengthen local institutions including pathar parichalana

samitee (FMC), seed villages and producers association of the farming

community as instruments of decentralization development process in

agriculture sector.

12, To organize catalyse the primary producers in suitable groups towards

The performance of activities related to the achievement of the objectives

of the society.

13, To influence government polities for correcting the terms of trade to

make them favourable for agriculture, thereby increasing the flow of

resources and augmenting the rate of capital information in agriculture

sector.

14, To pave the way for establishment of integrated producers

organization with forward and backward linkages and to organize pathar

parichalana samittees (FMC) with forward and backward linkages.

15, To assist and promote programmes aimed at conversation of the

environment and natural resources.

16, To prepare, print and public papers, periodicals, monographs and

books, in furtherance of the objectives of the society.

17, To help farmers / farmers organization in setting up small agro based

village industries.


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2 The Names, Address And Designation Of Present Member Of TheExecutive Committee (Or Governing Body) Are-

The Society Assam Small Farmers Agri-Business Consortium

(ASFAC) Shall Have A Board Of Management With The Following

Members

Si

No

Name In Full Address, Occupation And

Designation

Designation

1

Sri jyoti Prasad

Rajkhowa, IAS

Dispur, Assam Agriculture

Production Commissioner,

Assam

chairman

2 Sri badal mitra

Mazumdar,IAS

Dispur, Assam

Agriculture Production

Commissioner, Assam

Vice-Chairman

3 Dr. DebaNanda

mahanta

Directorate of Agriculture,

Assam ,

Khanapara, ghy-22

Chief Executive Officer

Assam Small Farmers

Agri-Business

Consortium (ASFAC)

Member-secretary

4 Dr.Arun kumar

Deka

Directorate Of

Agriclture,

Diector of Agriculture,Assam, khanapara, Ghy- 22

Member

5 SriJyotirmoy

Chakraborty,ACS

Chief Executive Officer

Assam State Agril.

Marketing Board, Member


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Ulubri

6 SriPaban kumar

Barthakur , ACS

Director of Industries,

Assam,Banunimaidam Member

7 Sri Rajib Lochan

Duarah, ACS

Joint Secretary to the

Govt of Assam, Finance

Department, EC-1

Member

8 Md. Mafizuddin

Ahmed

President, Sadou Asom

Pathar Parichalana

Samittee

Member

9 Sri Sudhir kumar,

IAS

Managing Director Small

Farmers Agri-BusinessConsortium (SFAC), New

Delhi

Member

5.Membership:

(a) Qualification to become members

I. First member

Signatories of the Memorandum of Association shall be the first

member of the society

II Member

All such institution (farmers association) desirous of participating inthe affairs and business of the society can become members of the society on

admission by the board of management and fulfilling conditions as may be

prescribed from time to time.


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III Associate members

Co-operative societies corporate bodies, Non- resident Indians,

foreign companies and other organization involved in the functioning of the society

may be admitted as associated as associate members subject to conditions laid

down by the board of management. The Associate members shall have the right to

attend the general body meetings of the society or any other meetings to which

they are invited, but shall not be entitled to vote.

(b) Subscription and donation etc.

Members and associate members shall pay such subscription as may

be prescribed by the board of management except the desired person. All the

members of the board of management shall be included as desired person.

(c) Collection of fund.

The Assam small farmers Agri-Business consortium(ASFAC)

society may receive gift, grants, donations and benefactions from the Government

or any other source in or outside india and the same shall be used by the society for

exercising its functions and discharging its responsibilities subject to the condition

that any acceptance from foreign agencies, institutions and government will be on

such terms as may be prescribed by the government of assam.

a, A corpus fund of Rs.1.00 crore will be created with contribution from

small farmers Agri-Business consortium, New delhi, North Eastern Council at the

central as will as state and central government.


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b,All other sums of money that may be provided by the government at the

central or state.

c, All subscription & charges received from the members.

d, All sums of money generated by way of grants and donations or any other

manner or from any other sources.

(d) Control of funds.

1. The corpus fund of Rs.1.00 crore shall be deposited with any nationalized

rural bank as fixed deposit and shall not be withdrawn expect the interest accrued

from the deposit. The interest so accrued may be applied towards administrative or

other expenses of the society including expenses incurred in the exercise of power

and discharge or its functions or in relation to any of the activities referred to the

rules of business. In emergent situation, the part of the corpus fund may be utilized

for discharge of the functions and responsibilities of the society or any of the

activities referred to the rules of business of the society subject to the approval and

decision of the board of management.

2.All other sums of money credited to the said (ASFAC) subject to the

regulation, if any made in this behalf be deposited with any nationalized bank or

public finance institutions approved by the Board of Management.

6. Procedure of the general meeting: ( How many times in a year the

general meeting will be held)

The society shall hold an annual general meeting at last once in a year

not more than 18 calendar months shall elapse between the two successive annual

general meetings. A notice of at least 21 days in advance shall be given to the

members of the society.


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7. Place (How many of the total members of the general body are

required to be present to form quorum of the general body meeting)

Guwathi shall be the venue of the meeting of the board of

management unless it is decided to hold it at any other place with the express

approval of the chairman of the board.

The presence of 1/3 (One Third) of the members of general body will

form the quorum of the general body meeting.

8. Election procedure of the executive committee governing body

managing committee.

The chairman of the board of managementor his absence, the vice-

chairman shall preside over the meeting of general body. If both the chairman and

the vice chairman are not present, members present shall elect one person from

amongst themselves to chair the meeting.

All matters in the meeting shall be decided by major of the members

present. In case is required each member of the board have one vote and in the

event of a tie, the chairman shall have a second or casting vote.

9.Short description of the executive body.

The Assam small farmers Agri business

Consortium(ASFAC)society have a board ofmanagement with the following

members-

1, Agriculture production commissioner, Assam-Chairman

2, Secretary to the government of assam, - vice-chairman Agriculture

department.


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3, Chief executive officer small farmers Agri-member-secretary

business consortium (ASFAC).

4, Director of agriculture, Assam- Member khanapara, Guwahati-22.

5, Chief Executive Officer, Assam state member Agril. Marketing

board.

6, Director, Industries, Assam-Member

7, Representative of finance departmentmember.

8, President, sadou asom pathar-memberparichalana samittee.

9, Representative of small farmers Agri member business consortium,

New delhi.

10.The term of the executive body.

(i) Nominated members of the board under rule 9 shall hold office at

the pleasure of the board .How ever no member shall be nominated for a period of

more than 4 (four) years at a time. Member so nominated shall not be eligible for

renomination for a second consecutive term.

(ii) The membership of person who becomes a member of the board

by reason of the office or post he holds, shall terminate when ceases to hold

that office or post and his successors shall automatically replace him in the

society.

11. Procedure of re-election of the members of the executive body.


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The membership of the founder member will cease as and when a

person is transferred from the post. The new person taking over the charge of the

post will automatically be a member of the board of management.

So far as other member from farmers association, co-operative

societies, corporate bodies, etc. are concerned the re-election procedure of the

concerned institution will hold good for ASFAC society also.

12.procedure of the meeting of the executive body (How many times in a

year or months the meeting of the executive body will be held)

Meeting of the board management of Assam small farmers Agri

business consortium (ASFAC) society shall be ordinarily held once in every three

months with the approval of the chairman of the board of management.

13. Quorum of the meeting of the executive body (How many of the total

members of executive body are required to be present to form quorum of the

executive body)

The quorum of the meeting of the board of management shall be in

accordance with the relevant provision of the rules of business. The presence of1/3

(one third) of the board of management will form the quorum of the board of

management. If within 30 minutes from time appointed for the meeting, no quorum

is present at any meeting of the board, the meeting shall be adjourned. The

adjourned meeting may be reconvened at the discretion of the chairman and no

quorum shall be necessary in that meeting and the members present may transact

the business for which the meeting was called.

14. Expulsion of undesirable number.


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A member of associate member shall cease to be a member by not

fulfilling the condition laid down by the board of management or due to reason

adjudged by the board of management as injurious the functioning of the society.

15. Auditor.

A qualified auditor will be appointed by the board of management

who shall audit the accounts of the society at least once in a year and annual audit

report will be submitted to the register of societies regularly.

The accounts of the society shall at least once every year by audited

by the reputed chartered accountant appointed by the board of management.

A copy of the audited accounts together with the audit report shall br

submitted by the board of management to the general body for approval.

Department will take up with CAG for auditing of the accounts by the accountant

general (Audit),Assam.

A copy of the audited account and audit and audit report for each

financial year as approved by the general body shall be submitted to the

government not more than six months after the end the financial year.

16. Legal Procedure.

The society may sure or be used in the name of the chief executive asper provision laid down under section section-6 of the registration of societies Act.

1860 (Act.XXI of 1860).

17. Dissolution.


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If on holding or dissolution of society (ASFAC) there shall remain,

after satisfaction of all debts and liabilities, any assets or property, they shall be

dealt with in such manner as the government of Assam may determining.

A certified copy of the rules of business of the society (ASFAC) is

filling along with memorandum of association.

We the undersigned persons, having associated ourselves for the

purpose described in this memorandum of association do hereby unto the form

ourselves into a society under registration of society Act.1980 (XXI) of 1860 this

day of 12TH December 2001 at Guwahati.


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ORGANIZATIONAL

STRUCTURE & LAYOUT


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CHAPTER III


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ORGANIZATIONAL CHART

Meaning of organization chart .

An organizational chart is a diagrammatical from which shows

important aspects of an organization including the major functions and their

respective relationship, the channels of supervision, and the relative authority of

each employee who is in charge of each respective function.

Principles of organizational chart .

The chart should clearly slow the lines at authority and responsibility

so that is no overlapping, position with different degrees at authority should not be

placed at same line.

Position at equal rank should be shown at the same level. Details

should be well spaced and job titles should be shown in boxes.

As far as possible a complete chart should be on a single sheet.

Colors may be used carefully to distinguish between the department at

division.


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ADVANTAGES AND USES OF ORGANIZATIONAL CHART

An organizational chart shows clearly the various position in the

organizational and how they relate to one another. It provisional a clear

understanding of how a job contributes to organizational objects.

From the individuals can identify the limits of their authority. An

organizational chart serves as a valuable guide to the new personnel in undertaking

how their position fit the total organizational.

It helps to point out inconsistence and deficiencies in organizational

relationship.

An organizational chart provides a frame work for classification and

evaluation of personnel.


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OFFICE LAYOUT

Meaning

Plant lay out is most of the important factors for a new industrial

enterprise. After the planning of location of the space available for all the activities

and facilities associated with manufacturing with a view to enable the plant to

function effectively.

Definition

In the word of james lendy it identically involves the allocations of

space and the arrangement of equipment in such manner that overall operating cost

has minimized thus development of a proper layout for plant cells for a careful

planning.

Objectives

Managementis a process concerned with

A.Definition the aims and objective of the organization.B.Fitting down polices, procedure programmers, and stately to

help in to the achievement of organization aims and

objectives.C.Bringing together the various factors of production viz men

material, machines, methods.

D.Making the best possible the use of factors of production.E. Exercise controls our performance of factor of production.


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F. Providing conditions in which person associated with theorganizational owner employees, customers and community

as long as you derived maximum satisfaction.

Characteristic Of AnEfficient Layout

Smooth of production Maximum utilization of available Facilities the moment of men, material, machines Produces better working conditions Legibility Involves minimum handling Location of store Facilities supervision and control Provision safety Co-ordination and integration.


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PRODUCTION

MANAGERFIRE MACHANICAL HR ADMIN

MARKETING

FINANCIAL

MANAGERFACTORY

STORE

ROOM

CHIEF

ACCOUNTANT

CANTEEN

PRODUCT

DEVELOPMENT

SENIOR

ACCOUNTANT FINANCE

DEPARTMENT

SECRETA

RY

REST ROOM SALES

DEPARTMENT

TRAINING

CENTRE


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DEPARTMENTATION


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CHAPTER IV


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DEPARTMENTATION

The usual and normal practice is to entrust the management of a company

and for effective management of the companys activities are divided into

departments. each department is a complete self sustaining unit there will be head

for each department and the head will be responsible for the entire department .

The greaves cotton limited (heavy engineering unit concrete division) has

got more than six departments in its corporate office. during my training period I

had the opportunity to visit some departments in the corporate office; this helped

me a lot while preparing the report under the heading departmentation.

Departmentation in greaves cotton limited (heavy engineering unit

concrete division)

Company secretary department Human resource department Purchase department Marketing department Accounts department Plant maintenance department

SECRETARY DEPARTMENT

DEFINITION


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secretary is derived from the Latin word secretaries

A secretary is defined as one whose office is to write another, especially one

who is employed to conduct correspondence. To keep records and to transact

various other business for another person or for a society corporation or public

body.

STATUTORY DUTIES

The statutory duties of a company secretary are those prescribed by the

companies act or by any other legislation such as the income tax act, sales tax act,

stamp , factories act, employees state insurance act, industrial disputes act, contract

act, monopolies and restrictive trade practices act etc.,

The most important part of his statutory duties relates to the various

provisions of the companies act the important statutory duties under this act are

a) Maintenance of books and register of the companies.b) Filling of the necessary returns with the registrar of companies.c) Supervising the issue, allotment transfer and forfeiture of shares and

debentures.

d) Attending to meeting and recording their proceedings.e) Allowing inspection of books and documents when required by the

statute.

f) Safe custody and proper use of the common seal of the company.


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SECRETARIAL DUTIES RELATING TO STATUTORY MEETINGS

A)To prepare a draft of the statutory report and the notice of the meeting inconsultation with the directors.

B)To arrange for covering a board meeting and to get the statutory reportand notice approved by the board.

C) To get the report certified by the auditors and at least by two directors.One of whom should be the managing directions, if any.

D) To get the notice and the report printed and sent them to every memberat least 21 days before the meeting is scheduled to be held.

E) To file a certified copy of the statutory report with Register.F) To prepare a detailed agenda for the meeting in consultation with the

chairman and also a list of members showing the names, addresses,

occupations numbers of share held by each member etc., for the purpose

of producing it at the meeting.

SECRETARIAL DUTIES RELATING TO ANNUAL GENERAL

MEETING

The steps which are needed to be taken at this stage are as follows

a) At the end of the financial years, the balance sheet and the profit & LossAccount are prepared approved by the Board. Further, they are to be

audited by the companys auditors and his report must be recorded.

b) The Secretary, then prepares the draft annual reports of directors, and inconsultation with the chairman, he also prepares a provisional statement

of disposal of profits.

c) The secretary than makes arrangement for the printing of the noticeannual accounts and balance sheet, reports of auditors and directors

admission card, proxy from etc.,


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d) The notice of the annual general meeting along with the relevantdocuments is sent by post to the members and others entitled to receive

notice.

II DURING THE MEETING

During the meeting the steps to be taken are as follows

a) Before the commencement of the meeting the secretary has to collectthe admission card from the members at the gate and also record this

attendance in the register meant for the purpose.

b) The chairman takes the chair to conduct the proceedings of themeeting.

c) The auditors or secretary in the absence of auditors report.2. AFTER THE MEETING

The steps to be taken after the annual general meeting are as follows

a) After the meeting, the secretary prepares the minutes of the meetingand gets them signed by the chairman at the next board meeting.

b) The secretary should file the annual accounts and balance sheetannual returns etc., within the prescribe time.

DUTIES OF SECRETARY REGARDING ISSU OF SHARE

CERTIFICATES

The secretary has to take the following steps in connection with issue of

share certificates.

a)To arrange for the printing of shares certificates and for preservingthem under safe custody.

b) To fill up share certificates by referring to the register of membersand to arrange for their checking by the auditors of the company and

getting them ready for signature and sealing.


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c) To arrange the board meeting for passing a resolution to authorize thesignature and sealing of the certificates and their issues by the

secretary.

d) To see that each certificates bears the seal of the company and issigned by at least two directors and counter signed by him.

e) To issue a circular to all shareholders informing that the sharecertificates are ready for delivery


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DUTIES OF THE SECRETARY IN CONNECTION WITH ISSUE OF

SHARE WARRANTS

The secretary has to take the following steps in connection with the issue if share

warrants

A.He has to find out whether the articles of the company provide for the issueof the share warrant.

B.On receipts of application from the holder of fully paid up shares for theissues of share warrants, he has to arrange board meeting to decide about the

issue of share warrant.

C.He has to give a lodgment ticket to the application in exchange for the sharecertificate.

D.He has to check up whether the stamp duty and registration fee have beenpaid by the applicant.


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HUMAN RESOURCE DEPARTMNENT

Personnel management is the recruitment selection, development, and

utilization of, and accommodation to human resources by organizations. The

human resources of an organization consist of all individual regardless of their role

who are engaged in any of the organizations activities.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT OF GREAVES

COTTON LIMITED

Human resources management (HRM) is a process which works within the

context of organization HRM becomes a sub system in the organizational context

but a system in this own context. If we combine the two together we have a process

system approach HRM which helps in undertaking the functions of HRM by

providing.

A.A description of HRM as a dynamic sub aspect of the total managementprocess and as an integral part of all sub division of an organization.

B.An analysis of the interdependence among various aspects of HRM andbetween HRM and other sub systems of the organization and

C.An analysis of relationship between various HRM process and their relevantenvironment.

A process is an identified flow of interrelated events moving towards some

objectives. Therefore, HRM process and its sub process must be limited with its

objectives the basic objectives of human resources management.

1. To attract human resources into the organization.2. to develop and motivate them for better performance.

QUALLITIES OF HR MANAGER

Often a question arises: what are the quantities that make HR Manager

successful? The success or failure of manager depends on his personal qualities

and the situation in which he works, while quantities are of personal nature

situational varies from organization to organization. Therefore, if we exclude

situation variables. We may say that every manager must possess all those qualities


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must be supported by job related qualities from this point of view qualities must be

supported by job related qualities. From this point of view, HR Manager should

have both managerial qualities and job related qualities.

MANAGERIAL QUALITIES

Various managerial qualities required for HR Manager are as follows.

1. INTELLIGENCEFor a manager, higher level of intelligence is required so that understand the

situation more easily and prepare him to react accordingly; intelligence is

expressed in terms of metal ability to understand the nature of events which exist

in a problem requiring a salutation.

2. CONCEPTUAL QUALITIESTo recognize significant elements such in a situation and to understand the

relation among these elements such qualities are necessary in HR Manager to deal

with abstraction to set models, and to set plans.

3. ANALYTICAL QUALITIESIn a situation, there are some issues, which may be more important while

others may be made more important through in reality these may not be. Therefore

HR Manager has to differentiate between wheat and chaff and get into reality.

MOTIVATING QUALITIES

Not only a manager should be self motivated but he should have qualities to

motivate a person for higher performance. There is inner drive in people formotivation to work.

PURCHASE DEPARTMENT

Purchase department is the back bone of the company purchasing a

specialized and complicated job demanding the exercise of highest prudence;


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sound judgment and skill to ensure that the best ultimate value is obtained forevery rupee spend by the company.

Purchase is very important function as the expenditure is based on purchase

of capital and revenue products.

PURCHASE MANAGER

The main function of the purchase manager is to procure the material at the

time right quality at the price from the right supplier.

He is the full in charge of purchasing the goods for the company. All goods

that are required to the company must be purchased under his control.

OBJECTIVES OF PURCHASIGNG DEPARTMENT

1. To maintain continuity of operation:By making the required material and equipments available at the right

times.

2. To maintain and boost production efficiency.3. To keep goods relation with suppliers.4. To co ordinate with all the relates department such as stores and

production are accounts department.

5. To make timely payment to suppliers.


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MARKETING DEPERTMNET

MEANING OF THE TERM MARKETING

Marketing may be explained as a business function entrusted with the

creation and satisfaction of customer to achieve the aims of business itself. Thus

the term may be logically broken down as follows.

BUSINESS AIM AT PROFIT

To realize profit, a sale has to be made. To make the sale, a customer has to be created. To satisfy the customer, his needs have to be met. To meet his needs, the product should confirm to the requirements of

customer.

MARKETING DEFINITION

A more precise statement could be observed when Philip Kotler said,

Marketing is especially concerned with how transaction are created, simulated,

facilitated and values.

OBJECTIVES OF MARKETING

The following aims are sought to be achieved by studying marketing.

To develop an intelligent appreciation of modern marketing practices. To provide guiding policies regarding marketing procedures and their

implications.

To study marketing problems according to circumstances and to suggestsolutions.

To analysis the shortcomings in the existing pattern of marketing To enable successful distribution of agricultural products, our mineral

wealth, and manufactured goods, and

To enable manager to assess and device a particular course of action.


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ACCOUNTS DEPARTMENT

ACCOUNTS AND (CASH) COMPILATION

American institute of certified public accountants has depend financial

accounting as the art of recording classifying and summarizing in a significant

manner and in terms of money transaction and events which are in part of at leastof financial character and interpreting the result there of.

BANKING DEPARTMNET

Greaves cotton ltd., (Heavy Engineering Unit) is heaving banking

arrangement with the following banks for operation at divisional offices factories

and head office.

ICICI BANK

In head office of Greaves Cotton Ltd., (Heavy Engineering Unit) the

banking transaction is operation of current account, saving bank account, export

bills negotiations and foreign exchange transaction.

MEANING AND DEFINITION

BUDGETING

Budgeting refers to the process of preparing the budgets. It involves a

detailed study of business environment clearly grasping the management

objectives. The available resources of the enterprises and capacity of the

enterprises.

Budgeting is depending by J.Batty as under: The entire process of

preparing the budget is known as budgeting.

BUDGETARY CONTROL

According to Brown and Howard. Budgetary control is a system ofcoordinating costs, which includes the preparation of budgets. Co ordinate the

work of departments and establishing responsibilities, company the actual

performance with the budgeted and acting upon results to achieve maximum

profitability.

PLANT AND MAINTENANCE DEPARTMENT


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The following are the different functions and responsibility of the maintenance

department of

a) INSPECTION AND SUPERVISIONi. It deals with the routine schedule checks of the plant facilities in order

to find out condition and to check for needed repairs.

ii. Continuous inspection makes sure the safe and efficient operation ofequipment and machinery.

iii. The number of inspections depends upon the intensity of the use ofthe equipments.

iv. The inspection department has to ascertain that every workingequipment receives the required attention.


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b) ENGINEERING AND IMPROVEMENTS1) It involves alteration and improvements in existing equipments and

building to reduce breakdown.

2) This department also undertakes engineering and supervision ofconstructional projects that may after wards become part of the plant.

c) MAINTENANCE OF THE PLANTI. The primary duty of the department is to maintain existing plant

equipments.

II. It is also equality important to maintain the existing plant, buildings,and other service such as yards, central stores, road ways etc,

d) REPAIRS AND REPLACEMENTI. It is the primary duty of the maintenance department to take corrective

repairs to remove unsatisfactory conditions found during preventive

maintenance inspection.

II. Sometimes and unscheduled work of an emergency nature has to becorrected.


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RATIO ANALYSIS


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CHAPTER V


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RATIO ANALYSIS

A ratio is a mathematical relationship between two items expressed in a

quantitative form.

Ratios can be defined as Relationship expressed in quantitative terms,

between figures which have cause and effect relationship or which are connected

with each other in some manner or the other

ADVANTAGES OF RATIO ANALYSIS

1. FORECASTINGRatio reveal the trends in costs, sales, profits, and other interrelated

facts, which will be helpful in forecasting future events.

2. MANAGERIAL CONTROLRatio can be used as instrument of control regarding sales, costs and

profit.

3. FACILITATES COMMUNICATIONRatio facilitate the communication function of management as ratios

convey the information relating to the present and future quickly, forcefully

and clearly.

4. MEASURING EFFICIENCYRatios help to know operational efficiency by comparison of present

ratio with those of the past working and also with those of other firms in the

industry.


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5. FASILITATING INVESTMENT DECISIONSRatios are helpful in computing return on investment. this helps the

management in exercising effective decisions regarding profitable avenues

of investment.

6. USEFUL IN MEASURING FINANCIAL SOLVENCYThe financial statements disclose the assets and liabilities in a format.

but they do not convey relationship of various assets and liabilities with each

other, whereas ratio indicate the liquidity position of the company and the

proportion of borrowed funds to total resources which reveal the short term

and long term solvency position of a firm.

7. INTER FIRM COMPARISONSThe technique of inter firm comparisons can be carried out

successfully only with the help of ratio analysis. Otherwise no firm may

come forward to disclose full information. inter firm comparisons help the

management to compare its performance with an external benchmark or

standard.


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LIMITATION OF RATIO ANALYSIS

1. PRACTICAL KNOWLEDGEThe analyst should have through knowledge and experience about the

firm and industry.

2. RATIO ARE MEANSRatio are not an end in themselves but they are means to achieve a

particular purpose or end.3. INTER RELETIONSHIP

Relations are inter related and therefore a single ratio cannot convey

any meaning. it has to be interpreted with reference to other related ratios to

draw meaningful conclusions.

4. TIME LAGRatio analysis will be fruitful only if the conclusions are conveyed

quickly to the management. if there is a delay, the utility of the data is

diminished and the purpose itself may be defeated.

5. CHANGE IN PRICE LEVELRatio analysis becomes redundant during periods of heavy price

fluctuations.


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CURRENT RATIO

Current ratio is the most common ratio for measuring liquidity being related

to working capital analysis; it is also called the working capital ratio current ratio

express relationship between current asset and current liabilities. The current ratio

is calculated by the following formula.


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TABLES SHOWS ON CURRENT RATIO

Year Current Assets Current Liability Ratio

2010 362.57 301.46 1.2

2011 389.83 268.7 1.45

2012 492.72 442.41 1.11


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INTERPRETAITON

The ideal current ratio is 2:1 from the above table shows that the current ratio of

Greaves Cotton Ltd, from the year 2010 to 2012 was 1.20, 1.45 and 1.11

respectively. It indicates that inadequate current asset to meet the current liabilities.

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2009-2010 2010-2011 2011-2012

CURRENT RATIO

CURRENT RATIO


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FIXED ASSET RATIO

The ratio establishes the relationship between fixed assets and long term

funds. The objectives of calculating this ratio is to ascertain the proportion of long

term funds invested in fixed asset.


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TABLE SHOWS ON FIXED ASSETS RATIO

Year Fixed Assets Long Term Funds Ratio

2010 707.19 420.05 1.68

2011 778.98 448.73 1.74

2012 817.52 442.21 1.85


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FIXED ASSED

INTERPRETAITON

The ideal fixed asset ratio is 0.67 from the above table shows that the current

ratio of Greaves Cotton Ltd, from the year 2010 to 2012 was 1.68, 1.74 and 1.85

respectively. It implies that the fixed assed are purchase with short term funds

which is not a prudent policy.

1.55

1.6

1.65

1.7

1.75

1.8

1.85

2009-2010 2010-2011 2011-2012

FIXED ASSETS

FIXED ASSETS


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WORKING CAPITAL TURN OVER RATIO

Working capital ratio measures the effective utilization of working capital. It

also measures the smooth running of business or otherwise the ratio establishes

relationship between cost of sale and working capital. Working capital turnover

ratio is calculated with the help of the following formula.


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TABLE SHOWS ON WORKING CAPITAL TURN OVER RATIO

Year Cost of Sales Net Working

Capital

Ratio

2010 988.42 61.11 16.17

2011 922.32 121.23 7.61

2012 1142.11 43.32 26.37


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WORKING CAPITAL TURN OVER RATIO

INTERPRETATION

From the above table shows that working capital turnover ratio of Greaves

Cotton Ltd, for the year 2010, 2011and 2012, was 16.17, 7.61 and 26.37

respectively. It indicates that there was lower investment of working capital and its

profitability

0

5

10

15

20

25

30

2009-2010

2010-2011

2011-2012

WORKIGN CAPITAL

WORKIGN CAPITAL


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OWNED CAPITAL TURN OVER RATIO

Managerial efficiency is also calculated by establishing the relationship

between cost of sales or sales with amount of capital invested in the business.

Capital turnover ratio is calculated with the help of following formula.


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TABLE SHOWS ON OWNED CAPITAL TURN OVER RATIO

Year Cost of Sales Shareholder fund Ratio

2010 988.42 370.83 2.67

2011 922.32 404.37 2.28

2012 1142.11 437.05 2.61


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OWNED CAPITAL TURN OVER RATIO

INTREPRETATION

Owned capital turnover ratio of Graves Cotton Ltd. for their year 2010, 2011

and 2012, was 2.67, 2.28 and 2.61 respectively. It indicates that there was

inefficient usage of capital.

2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2009-2010

2010-2011

2011-2012

OWNED CAPITAL

OWNED CAPITAL


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DEBT EQUITY RATIO

The ratio explains the relationship between the owners funds to borrower

fund owners fund is also known as internal equalities or shares holder fund this

ratio will think or financing pattern of assets to what extent owners and creditors

have provided fund is quickly.


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TABLE SHOWS ON DEBT EQUITY RATIO

Year Total Long Term

Debt

Shareholder Fund Ratio

2010 707.19 370.83 1.91

2011 778.78 404.35 1.93

2012 817.52 437.05 1.87


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TABLE SHOWS ON DEBT EQUITY RATIO

INTERPRETATION

From the above table shows that debt equity ratio of Graves Cotton Ltd. for

the year 2010, 2011 and 2012 was 1.91, 1.93 and 1.87 respectively. It shows that

this company does not depend much on outsiders funds. Thus there is a chance of

lowering its market value. Hence it can to recommend borrowing an acceptable

outsiders fund.

DEBT EQUITY

2009-2010

2010-2011

2011-2012


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SUMMARY AND

CONCLUSIONS


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CHAPTER VI


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CONCLUSION AND SUGGESTION

CONCLUSION

The training under went in Greaves Cotton Limited (Heavy Engineering

Unit) was an effective one. I gained much experienced by this training I

understood the difficulties in operations carried out in concern.

Greaves Cotton Limited (Heavy Engineering Unit) conducts meeting each

year to discuss the business. This is very useful and effective way of

communication.

This company maintains record of meeting all ledger account and other

document as required by the law. It interprets all new and advanced technologies to

exit in this competitive world.


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SUGGESITON

There is nothing to suggest for this company, because the company placed

good in all departments but the company was as undercapitalized. The directors

should take correct steps ferrets improvement. The company has to improve its

layout in few departments.


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ANNEXURE


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CHAPER VII


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ANNEXURES

CONSTRUCTION EQUIPMENT

PRODUCTS: concrete pumps concrete mixers, concrete batching plant

institutional training underwent

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