Upload
divyesh-mungara
View
239
Download
1
Embed Size (px)
Citation preview
8/3/2019 pankaj hadiya
1/74
[ 1 ]
INDEX
SERIAL
NO.PARTICULARS
PAGE
NO.
1 GENERAL INFORMATION 2
2 PRODUCTION DEPARTMENT 13
3 HUMAN RESOURCE DEPARTMENT 28
4 MARKETING DEPARTMENT 41
5 FINANCE DEPARTMENT 54
6 SWOT ANALYSIS 70
7 SUGGETION 71
8 CONCLUSION 72
9 BIBLOGRAPHY 73
8/3/2019 pankaj hadiya
2/74
[ 2 ]
GENERAL
INFORMATION
8/3/2019 pankaj hadiya
3/74
[ 3 ]
CONTENT
Sr. No. PARTICULAR PAGE No.
1 Company profile 4
2 Vision & mission 7
3 Milestone 8
4 Size & form of the organisation 10
5 Organisation structure 11
6 Future plans & Achievement 12
8/3/2019 pankaj hadiya
4/74
[ 4 ]
COMPANY PROFILE
Name of the unit : - Austin Engineering Company Ltd.
Year of the
Establishment : - 1973
Form of
Organization : - Medium Scale
Registered Office : - Austin Engineering Co. Ltd.
Dist.: Junagadh
Tal. : Bhesan
Patala 362 030
Address of Junagadh
Office : - 101, G.I.D.C. Estate,
Vadal Road,
Junagadh 362 003.
Phone Numbers :- (91-285) 2660144, 2660069
Fax Numbers :- (91-285) 2661505
8/3/2019 pankaj hadiya
5/74
[ 5 ]
E-mail Address :- [email protected]
Auditors :- Dhirubhai Dand & Co.
Chartered Accountants
Gokul Chamber,
Junagadh 362 001.
Cost Auditors :- S.B. Parikh & Co.
Cost Accountants,
Vadodara.
Bankers :- Bank of Baroda, Junagadh.
Registrar & Transfer
Agent :- Sharepro Services,
Satam Estate,
3rd floor,
Above Bank of Baroda,
Cardinal Gracious Road,
Andheri (E)
Mumbai 400 099
mailto:[email protected]:[email protected]8/3/2019 pankaj hadiya
6/74
[ 6 ]
BOARD OF DIRECTORS
Mr. N.C.Vadgama : Chairman & Executive Director
Mr. S.M.Thanki : Managing Director
Mr. R.N.Bambhania : Joint Managing Director
Mr. J.R.Bhogayta : Executive Director
Mr. S.V.Vaishnav : Non Executive Director
Mr. B.R.Sureja : Non Executive Director
Mr. K.J.Mehta : Non Executive Director
Mr. D.B.Nakum : Non Executive Director
8/3/2019 pankaj hadiya
7/74
[ 7 ]
VISION
Always improve continuously Utilize resources in most efficient way
Be versatile to adopt changes
Serve society in most efficient manner
MISSION
To implement the ISO/ TS 16949 quality system
To increase the marketing capability up to 2100 mm
diameter
8/3/2019 pankaj hadiya
8/74
[ 8 ]
MILE STONE
1973
Partnership firm formed by five technocrats.
Started manufacturing needle roller cage assemblies with the manpower of 10
and the capital investment of 3500 US Dollars.
1980
Manufacturing capacity of all aforesaid bearings increased up to 150mm
diameter.
1982
Started supplying bearings for gear box application to Premier Automobiles
Limited (FIAT-Italy Collaboration) for passenger cars.
1984
Started supplying case carburized specially heat treated ground components
(exclusive supplier) and King-pin bearings to TELCO for light and heavycommercial vehicles.
1985
Converted into Public Limited Company and offered shares to public.
1986
Started New Plant (Unit II) with installation of machinery and
testing/measuring equipment imported from Germany. Started exporting
bearings to developed countries such as UK, USA, and Italy.
1987
Started manufacturing import substitute bearings for military tanks and armed
vehicles of Indian Defense Department.
8/3/2019 pankaj hadiya
9/74
[ 9 ]
1990
Increased manufacturing capacity to 600mm diameter. Started manufacturing
double row tapered and spherical roller bearings.
1991
Awarded indefinite rate contract with All India State Road Transport
Undertakings (ASRTU) for 78 sizes of bearings for their passengers vehicles.
1997
Started manufacturing flush ground single row angular contact ball bearings
for US and European Markets.
1998
Started production of four row tapered roller and mutli-row cylindrical roller
bearings for roll-neck application in steel plants.
2000
Established AEC Europe S.R.L in Milan, Italy.
2002
Developed stainless steel (Grade 440C) bearings (for Atomic Energy Plant).
2003
Developed and supplied Screw Down bearing (equivalent to Torrington 202
TTSX 942 EE2000).
2004
Developed Slim bearings (Constant Section Bearings) up to 18 inch.Established Accurate Engineering Inc. (WOS of AEC Ltd.) in USA.
2006
Awarded ISO/TS 16949:2002 Certification for design and manufacturing of all
type of rolling bearings from TUV Rheinland.
2008
Developed crossed cylindrical and tapered roller bearings.
8/3/2019 pankaj hadiya
10/74
[ 10 ]
SIZE AND FORM OF THE ORGANIZATION
On the basis of size, there are mainly three size of organization.
1. Large Scale Organization
2. Medium Scale Organization.
3. Small Scale Organization
AEC is a Medium Scale unit as it has 7 caroreS of equity equipment
and machinery .And it has employed 655 workers.threfpre we can say that
AEC is a LARGE scale unit. The form of organisation can be classified as
under:
FORM OF OWNERSHIP
Sole proprietorship
Partnership
Co-operative society
Company
Pvt. Ltd
Public Ltd.
Government
As far as the Austin Engineering Company Limited is a public
limited company because it has element of public limited company. It is an
incorporated association which is an artificial person created by law having a
common seal, different capital ,transferable share, limited liability, wide
distribution of risk and large membership etc.
8/3/2019 pankaj hadiya
11/74
[ 11 ]
ORGANIZATION STRUCTURE
An organization is group of people working together towards to achieve
one or more targeted Goals. A good organization structure is the basis of
any successful organization for an effective system There are mainly following
type of organization structure.
Types of Organization Structure
As far as AEC Co. Ltd. Is concern it has adopted Line & Staff
organization Structure. In this type of structure line of authority &
responsibility moves downward. Here individual & a group of specialists
advise the line officer for the special aspects. It would be clear by following
organization.
LINE
ORGANIZATION
FUNCTIONAL
ORGANIZATION
STAFF
ORGANIZATION
DIVISIONAL
ORGANIZATION
LINE &
STAFF ORG.
8/3/2019 pankaj hadiya
12/74
[ 12 ]
FUTURE PLANS
Due to nature of confidentiality, it is obvious that an organization
may not find it appropriate. Certain key plant, however the management of
AEC ltd shared the following information.
Development slewing rim bearings for heavy earth moving &
construction equipment
Increase adherence to the training calendar
Reduce new development cycle time, machine idealness, electrical
& mechanical breakdowns Etc.
ACHIVEMENT
Back up roller bearings for sendzimei cold strip mills
Multi raw cylindrical roller bearings & for two tapered roller
bearings for roll neck, application in rolling mills.
Flush ground single row angular contact ball bearings.
Precision class cylindrical roller bearings for machine tools
spindle application.
Flexible roller bearings
Thin series ball bearings
Large diameter, spherical roller thrust bearing
Moreover, the co is having 9001: 2000 certificate
8/3/2019 pankaj hadiya
13/74
[ 13 ]
PART- 1
PRODUCTION
DEPARTMENT
8/3/2019 pankaj hadiya
14/74
[ 14 ]
CONTENT
No. PARTICULAR PAGE No.
1 Product 15
2 Product Range 16
3 Production capacity 17
4 Production Process 19
5 Material Handling System 25
6 Quality Control 27
8/3/2019 pankaj hadiya
15/74
[ 15 ]
PRODUCT
This company is mainly produced 4000 to 4500 types of bearings
which are available in 20000 varieties or sizes. The main product is as
under.
1) Single Raw deep grove ball bearing
2) Single Raw angular contact ball bearing
3) Double Raw angular contact ball bearing
4) Self aligning contact ball bearing
5) Tharst ball bearing
6) Spherical roller bearing
7) Cylindrical roller bearing
8) Needle roller bearing
9) Cylindrical &needle roller bearing
8/3/2019 pankaj hadiya
16/74
[ 16 ]
PRODUCT RANGE
There are varieties of bearings that are right now in existence. They can be classifiedaccording to the size and use of it. In the world market, 20,000 types of bearings are
traded and used. Specifically AEC ltd. produces around 4,500 different types of bearings.
It is produced following type of bearing are as under.
1. Ball Bearing,
2 . Roller Bearing.
3. Spherical roller bearing (SRB)
4. Taper roller bearing (TRB)
5. Cylindrical roller bearing (CRB)
6. Needle roller bearing (NRB)
7. Flexible roller bearing (FRB)
8/3/2019 pankaj hadiya
17/74
[ 17 ]
PRODUCTION CAPACITY
Production capacity of AEC. Ltd. As follow
Installed Capacity: 3500 PER DAY
Utilized Capacity : 3500 PER DAY
Capacity: 10 mm ID to 1200 mm OD
Current working at: 10mm ID to 900 mm OD
SUPLLIERS
1) Mahindra & Mahindra Ltd-steel bars
2) Indian Seamless Metal type ltdsteel pipe
3) Social steel ltd-Roller Material
4) Needumeelbra Industries ltd.-steel rolls
5) Sanjay udhyog-Brass Cages
8/3/2019 pankaj hadiya
18/74
8/3/2019 pankaj hadiya
19/74
[ 19 ]
PRODUCTION PROCESS
Raw material purchase
Testing of raw material
Cutting & Turing of roller
Assigning Hardness to races
Grinding of Races
Facing & lapping process
Super Finishing
Pressing
Inspection & Grading
Assembling, Cleaning & Branding
Storage & Dispatch
8/3/2019 pankaj hadiya
20/74
[ 20 ]
1) Collection of Raw Material
Accumulation of raw material is the first and for most stage in
production. In raw material of Austin Engineering Co. Ltd. we can include
following.
Steel bars & tuber
Steel wire
Steel balls
CRCA Sheets
Rollers
Tapers etc.,
For ensuring the smooth production without break, enough stock of
different raw material should be kept ensure starting from the steel bar to oil.
2) Testing of Raw Material:
The second stage of manufacturing process of Austin Engineering
Co. Ltd. is the testing of raw materials, which have been purchased from the
different suppliers. They are having total 68 machines as a measuring &
testing instruments. But here the raw materials are tested whether there is
any defect in the material or not quality of raw material is checked here & if
there is any defect it is rejected at this stage only to avoid future accidents.
Many workers are engaged in testing the raw materials with the use of various
machines & hand meters.
8/3/2019 pankaj hadiya
21/74
8/3/2019 pankaj hadiya
22/74
[ 22 ]
Hardness Test :
The hardness is assigned to the races. Now it is checked through
hardness tester machine. The hardness range is 59 to 65 HRC.
Softening :
As the hardness test is made, with the help of Continuous Tempering
Machine adequate & required softness is assigned to the races.
5) Grinding of Races:
At this stage hardness is already assigned to the races & rollers. Due
to this process races are turned in to rough black materials. This operation is
performed for the following reasons.
Giving them a particular shape, if there is anydeviation.
It assigns brightness to outer & inner.
If is necessary to decrease the chances of crack in
future.
Here the races & rollers are kept in to a particular machine, which is
imported from Germany. Races are passes through one kind of oil i.e.
Cutting Oil A constant flow of this oil is there in the machine. In this process,
water is also used. Constant rotation of water in this flow is there. This is
known as Collant Flow.
8/3/2019 pankaj hadiya
23/74
[ 23 ]
6) Facing & Lapping Process:
Here races are twisted round in the proper manner. This process is
done manually. If there is any mistake found by skilled workers then finishing
is given to minimize the chances of interior quality production. Here in
Austin Engineering Co. Ltd. there is a particular machine shop for facing
the races & rollers. It is necessary to find out any defect of formal operations.
7) Super Finishing:
Now the final material are given super finishing process in which the
races & rollers passes through mto / kerosene rotation through machine.
8) Pressing:
In this department workers press the bearings with help of different
machines. The department is having 3 or 4 machines for this process.
9) Inspection & Grading:
Now all the components of bearing are produce. The inspection
department makes final inspection. So that quality of the bearings can be
assured. For that Magnetic creak detection is done.
8/3/2019 pankaj hadiya
24/74
[ 24 ]
10) Assembling, Clearing & Branding :
Now final inspection & grading is made to all the components of
bearings. The next step is to assemble them in a proper way.
Fixing the roller in cages.
Fixing the cage in between inner & outer races.
By this way finally bearings has been produced. This stage is totallyperformed manually through skilled workers only. After assembling properly
the bearings are sent for clearing and final oiling is needed. Finally bearings
are sent to the packing department. Packing is made according to the
customer specification. If the product is made for export then wooden packing
is made otherwise box packing is made. At last trade mark of the company
AEC designed on the packing. Size and quality of the bearing are also written
on it.
11) Storage and Dispatch:
The finished products are stored in to the go down. The storage is
done in different package, plastic package or wooden package as per
specification.
Dispatching is made as per the order of marketing department.
Bonded Store Room take the decisions regarding dispatch. As per the ISO
and TS they check once or twice in a year that the material stored is
displaceable in future or not. Bonded storeroom department inform the excise
department about such audit made by them.
8/3/2019 pankaj hadiya
25/74
8/3/2019 pankaj hadiya
26/74
[ 26 ]
Storage & Material Handling:
All the raw materials, which are received, shall be stored in stores
before issuing them to the production department. Follow the procedure ofreceipt storage & issue of material. In process material movement & storage
procedure should be followed. Store all the finished bearings at Bonded Store
Room.
Packing & Material Handling :
All the finished bearings & components should be packed as per the
specification given in the packing work instruction. This is responsibility of
assembly supervisor. In RMS materials, which are to be packed, are
inspected as per plan.
Preservation & Material Handling :
Rust preventive oil is applied to avoid rust formation in bearings. Then
after it is wrapped sealed in pouch & put it in carton. Specified shelf life
material shall be done on FIFO basis. Material beyond the specified limit
should be use after approval of HOD.
Delivery & Material Handling :
AEC transports material or product to the customers premises
through approved transporter. Approve transporter includes all the supplier
of the company details of dispatch have been kept with the marketing
department.
8/3/2019 pankaj hadiya
27/74
[ 27 ]
QUALITY CONTROL
The maintenance of the quality is very important for a reputed firm.When the product of the company is proved qualitative, the company should
maintain the same quality standard, because it is useful in creation of
customers, to increase market share, to stay in competitive etc.
Here, Austin Engineering Company Ltd. has given special attention
on the quality of the product. It is also an ISO 9001:2000 awarded company
because of its quality. Moreover, they have developed a QUALITY POLICY
for better quality control. The company is also having certain testing
instruments for testing the product at different levels. The product process
includes five inspection stages which show the companys efforts to maintain
its quality. Thus, there is a great attention given to quality control in the
company.
Testing instruments
Spectrometer
Micro handless tester
Magna field crack detection
Carbon-supper apparatus
Surface roughness tester
Roundness tester
Electronic comparator
Air gauge comparator
Dial calibrators
Redial clearance measuring instrument
8/3/2019 pankaj hadiya
28/74
[ 28 ]
PART-2
HUMAN RESOURCE
DEPARTMENT
8/3/2019 pankaj hadiya
29/74
[ 29 ]
CONTENT
Sr. No. PARTICULAR PAGE No.
1 Introduction 30
2 Organisation of personnel 31
3 Recruitment and selection 32
4 Training and management development 35
5 Promotion and transfer policy 36
6 Performance appraisal system 38
7 Wages and salary 39
8 Grievance handling procedure 40
8/3/2019 pankaj hadiya
30/74
[ 30 ]
INTRODUCTION
In any organization management of people plays an important role to
be success in the competition. Personnel management refers to management
of personnel. We know the important component of an organization is its
human resources or personnel.
It is important branch of knowledge, most of the progressive
organization having separate department, and they are appointing the expertas personnel managers. The success of any organization depends upon
workers and therefore it is considered as
Mind your men and Men will mind all other things.
This management of personnel is done by personnel department. In
AEC LIMITED also there is one separate personnel department and it is
handled by the personnel managers. Personnel manager manages the
problem of personnel and also does activities of recruitment, selection,
training, wages and administration etc. of personnel.
Manpower is like a blood in the business. The management of men is
very challenging job because it is a job not of managing a man but of
administrating a social system. Personnel management has a vital importance
in modern industrial organization. Personnel department is the part of
management which is primary concerned with establishment and
maintenance of personnel relations.
8/3/2019 pankaj hadiya
31/74
[ 31 ]
ORGANISATION OF PERSONNEL
Personnel management is a very important and challenging job
because it is a job only of managing men but also of administrating a social
system. Each and every company needs faithful handling of personnel who
cannot be operate like a machine.
ORGANIZATION STRUCTURE
Chairman
Managing director
General Manager
Personnel Manager
Personnel time public chief time
Officer officer officer
Assist. Personnel chief time
keeper
8/3/2019 pankaj hadiya
32/74
[ 32 ]
RECRUITMENT AND SELECTION
Recruitment and Selection
To fill the vacancy in the organization recruitment and selection is
done.
RECRUITMENT:
Recruitment is the process of searching for prospective
employees and stimulating them to apply for the job.
Recruitment is the positive process. There are mainly 3 methods of
recruitment viz,
Direct method
Indirect method
Third party method
There are 2 sources of recruitment
1) Internal sources
2) External sources
8/3/2019 pankaj hadiya
33/74
[ 33 ]
If company adopts internal source of recruitment then recruitment is
done within the organization, and if company adopts external source for
recruitment then employees are recruited from outside.
The best internal source is promotion and external sources are
advertisement, trade unions, schools, colleges etc. In AEC Limited
recruitment is done from colleges i.e. campus placement. And promotion is
based on the performance not on the basis of seniority.
In Austin Engineering Co. Ltd. the sources of general recruitment &
selection is done for recruitment of top or executive level and theadvertisement is given in leading newspaper like The Times of India, Indian
Express.
This company adopted direct & indirect method both as per need.
When recruitment procedure is completed, selection procedure started.
Selection means appointment of a proper candidate for the right post.
S ELECTION:
After the ending of recruitment process the selection process start.
According to Dale Yoder:-
Selection is the process in which candidates for employment are
divided into two classes.
8/3/2019 pankaj hadiya
34/74
[ 34 ]
Those who are to be offered employment.
Those who are not.
Thus the selection is hands of the management of differentiate the
qualified and unqualified applicants by applying various techniques.
In AEC LIMITED for different posts different applications forms are
there with each application form are assessment sheet is there which is
assessed by the interviewer at the time of interview. They adopt the simple
policy for general post means there is no lengthy process for selection forselection of general post. After this, they issue an official form for
selected persons. If the person wishing to work he will sign this offer by this
way the person is selected.
Procedure for selection :-
1. To give advertisement2. To receive application
3. Checking of reference
4. Final selection
8/3/2019 pankaj hadiya
35/74
[ 35 ]
TRAINING AND MANAGEMENT DEVELOPMENT
TRAINING:
Every organization needs to have trained and experienced employees
to perform the activity that have to be done. Employees training for
development are not only an activity that an organization must it. Training and
development of personnel is a follow up of selection. It is an improvement and
enhancement of different type of skills so that employee can perform their
jobs effectively. There are two types of training methods.
On the job training
Off the job training
In on job training persons are trained during the working hours. no,
extra time is given for that on the job training. In AEC LIMITED departmental
head and welfare officer handle the training. Training is given whenever
required at least once in a year training is given to each employee.
The employees of AEC Limited gave training twice in a year. Training
is related to their job profile, service to customers, and knowledge about new
products. This training is given by senior officer of AEC LIMITED.
DEVELOPMENT:
Development is long term education process utilizing systematic and
organized procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose Development is a process by
which managers & executives acquire not only skills & competency in their
present jobs, but also capabilities for future managerial tasks.
8/3/2019 pankaj hadiya
36/74
[ 36 ]
PROMOTION AND TRANSFER POLICY
PROMOTION
A promotion may be defined as
An upward advancement of employees in an organization to
another job, which commands better wages, better status and higher
opportunities, responsibilities and authorities, better working
environment hours of works and facilities etc.
A promotion is a vertical move in rank and responsibilities while a
transfer a horizontal movement of an employee from one job, section,
department, to another at the another place where his salary, status,
responsibilities are the same.
The promotion means to do upliftment of an employee within the
organization. At this stage employees wage & salary, status, prestige moves
towards the top level. Their thinking is also increasing up in his duties &
opportunities.
A promotion is a vertical upward, movement in rank &
responsibility.
In AEC they give promotion on the basis of capability of employees
with the purpose of proper candidate on proper post. Secondly on the basis of
previous work, history & performance of the employees he will be promoted
8/3/2019 pankaj hadiya
37/74
8/3/2019 pankaj hadiya
38/74
[ 38 ]
PERFORMANCE APPRAISAL SYSTEM
Performance appraisal is the process of evaluating the performance
and qualification of the employees in terms of the requirement of the job for
which he is employed, for purpose of administration including placement,
promotion.
There are so many methods to appraise the employees but AEC
LIMITED system to appraised the employees are as under.
Grading
Graphing rating scales
Critical incidents
Group appraisal
Field review method
Accounting method
They measure the skills, experience, ability, discipline, attendance,
regularity, and give this report to the head and this report is useful in
promotion etc. thus they determine the performance appraisal.
8/3/2019 pankaj hadiya
39/74
[ 39 ]
WAGE AND SALARY
Wages usually refers to an hourly rate paid to such groups such as
production and maintenance employees. On the other hand salary refers to
the monthly rates paid to professional employees.
Austin Engineering Co. Ltd. Administration is totally computerized and
according to time keeping system, the wages and salary of the employees are
paid. Wages and salary of the employees is fixed. Increment is given on thebasis of performance & efficiency.
The wages & salary given to employees is Rs. 3, 46, 90,800 which
includes directors remuneration Rs. 31, 63,200.
8/3/2019 pankaj hadiya
40/74
[ 40 ]
GRIEVANCE HANDLING PROCEDURE
It is not always happens that all the workers working in the organization
satisfied with the policies procedures of the company when there is room for
upward communication. It is easy to know the grievance. Grievance is any
dissatisfaction in connection with ones employments situation that is bought
to the attention of the management.
Grievance is written complaint filled by employees in respect of wages,
allowances, job assignment, and transfer etc. that is dispute to employees.
The steps of the grievance handing procedure are as follows.
(1) Any dissatisfied employee can fearlessly approach his
immediate boss with the reason for his dissatisfaction. The immediate boss
then replies within a week.
(2) If the employee feels that reply is not satisfying he could
approach his department head who toot his best to solve the dissatisfaction
mostly grievances are handled at his stage.
(3) The worker can also approach the general manager directly or
through the union. But it is hardly require in the process.
8/3/2019 pankaj hadiya
41/74
[ 41 ]
PART - 3
MARKETING
DEPARTMENT
8/3/2019 pankaj hadiya
42/74
[ 42 ]
CONTENT
Sr.No.
PARTICULARS PAGENo.
1 Introduction 43
2 Organisation of marketing
department
44
3 Product Planning 46
4 Production mix 47
5 Price and distribution decision 48
6 Production Related Strategies 49
7 Market segmentation 50
8 Advertising & Consumer behaviour 51
9 Competition 52
8/3/2019 pankaj hadiya
43/74
[ 43 ]
INTRODUCTION
Marketing is a social & managerial process by which individualsand groups obtain what they need and want through creating, offering and
exchanging products of value with others.
-PHILIP KOTLER
Marketing is beating heart of any business organization.
Marketing occupies an important position in the organization of any
business unit. Marketing means working with markets to actualize potential
exchanges for the purpose of satisfying human need & wants.
MARKETING IS THE ANALYSIS, PLANNING, IMPLEMENTATION
AND CONTROL OF PROGRAMMES DESIGNED TO BRING DESIRED
EXCHANGES WITH TARGET AUDIENCE FOR PERSONAL & MUTUAL
GAIN.
Each and every organisation has to make marketing efforts so, all
marketing decision has its own importance in the efficiency and source of
any organisation.
8/3/2019 pankaj hadiya
44/74
[ 44 ]
ORGANISATION OF MARKETING DEPARTMENT
An organisation is the rotation co-ordination of activity of number ofpeople for the achievement of some common objective. Marketing
organisation is made up people activity, responsibilty, authority and
relationship for the purpose of achieving marketing objective.
The company has adopted mixture of line and staff organisation. It
is vertical line of authority same as other department. Sales direction is on
a top position who looks after all the activity of marketing department and
also responsible for the result under him there is a general manager who
guides and directs the sales department.
8/3/2019 pankaj hadiya
45/74
[ 45 ]
ORGANISATION CHART
Chairman
Marketing director
Marketing Manager
Asst. Marketing Manager
Sales officer
Dispatch clerk Sales man
8/3/2019 pankaj hadiya
46/74
[ 46 ]
PRODUCTION PLANNING
The base of any product before launching into market is its marketing
strategies, which depends on the analytical survey of the similar kind of
product with the competitive companies.
In AEC whether they want to take any decision regarding products,
they always perform product research and accordingly they formulate
strategies.
A well planned product strategy depends on the analytical data from
the market which in turn give the benefit to both the customer & the sellers
along with the stock holder of the company, in consideration. Every product
moves to lifecycle stages. it gives the sales revenue and profit margin history
of product their stages are :
1) Introduction
2) Growth
3) Maturity
4) Decline
This time companys products are passing through growth stage and
bearing is heart of any vehicle and machine. So, there is no any substitute of
bearing, we can say that demand may not be decline. It will increase so far as
companys product life cycle is concerned. AEC gives 12 months guarantee
for bearing.
8/3/2019 pankaj hadiya
47/74
[ 47 ]
PRODUCTION MIX
Product mix refers to the set of items offered for the sale by a particular
business house. It represents each & every product lines & products in each
line separately. The product mix of Austin consists of 1800 items.
The whole 1800 types of bearings are divided into two main product
lines viz,
1. Automobile bearings
2. Industrial bearings
This is the broad classification of the bearings on basis of the use to
which they put on. If we consider the different industries the Austin produces
for textile industries to the machine industries.
Hence it can be said that Austin is having a unique product mix, which
only proves profitable for the firm but also assist the country in the
development process.
8/3/2019 pankaj hadiya
48/74
[ 48 ]
PRICING & DISTRIBUTION DECISION
Pricing Decision
Price is the exchange value of the product and services expressed in
terms of money. Decision about pricing is considered important aspect for
success of marketing of any product for an organization. Various factors are
taken into consideration while pricing.
Objective of the business
Estimated demand
Cost of production
Competition
Distribution policy
Distribution Decisions:
The production is centralized while the consumption decentralized this
requires a particular channel which enable the consumers to obtain product
from the producer.
Distribution channel is such an organized channel consists of various
middlemen. The distribution can be direct or indirect Austin sell its 40%
product directly to the CEM50% of its production sold through the dealers &
10% product is exported.
8/3/2019 pankaj hadiya
49/74
8/3/2019 pankaj hadiya
50/74
8/3/2019 pankaj hadiya
51/74
8/3/2019 pankaj hadiya
52/74
8/3/2019 pankaj hadiya
53/74
[ 53 ]
The foreign customers of AEC are mainly from following countries:-
U.S.A.
U.K.
Italy
Sudan
Pakistan
Shrilanka
Nether land
Bangladesh
South Arabia
The co. Export its 50% of its total production which earn valuable
foreign exchange
8/3/2019 pankaj hadiya
54/74
8/3/2019 pankaj hadiya
55/74
[ 55 ]
CONTENT
NO. PARTICULAR PAGE No.
1 Introduction 56
2 Organisation of financial department 57
3 Financial planning 58
4 Capital structure 59
5 Capitalisation 60
6 Management of fixed assets 61
7 Ratio analysis 62
8 Working capital Management 67
8/3/2019 pankaj hadiya
56/74
[ 56 ]
INTRODUCTION
Financial management is the managerial activity, which is concerned
with planning and controlling of firms financial resources. As we know that
this discipline is on resent origin, financial management consist of two words
mainly finance and management
Finance may be defined as firm that important resources which are
required at all the stage of different activity on the other hand management is
process of planning, organizing, directing and controlling. IT is worth to note
down that managerial functions are applied to the finance. It means planning
& controlling activities of finance is major activity under the financial
management.
According to Hogard, Financial management is the application of
planning & controlling functions to the finance functions.
From above definition it is quite clear that effective utilization of funds
iS major concerned from financial manager. Needless to mention that finance
plays every vital role in any organization.
8/3/2019 pankaj hadiya
57/74
[ 57 ]
ORGANISATION OF FINANCIAL DEPARTMENT
Organization of finance department means that division Tandclassification of various functions that are to be perform by the financial
department. Because of importance of financial department it is necessary to
setup sound & effective organization chart depends generally subject to
change. Internal factor such, as size and nature of the business and external
are tax policy etc.
Austin Engineering co. Ltd. has following organization of financial
department.
FINANCE DEPARTMENT
Chairman & Director
General Manager
Finance Manager
Accountant Financial Officer
Excise Clerk Accountant Clerk
Organization of finance department means that division and
classification of various functions that are to be perform by the financial
department. Because of importance of financial department it is necessary to
setup sound & effective organization chart depends generally subject to
change. Internal factor such, as size and nature of the business and externalare tax policy etc.
8/3/2019 pankaj hadiya
58/74
[ 58 ]
FINANCIAL PLANNING
Planning always plays an important role for arranging different activityof the organization. As planning determine future course of action in present.
Financial planning relates with financial activities of the organization. More
clearly Financial planning means deciding in advance, the financial activities
to be carried on to achieve the basic objectives of the firm.
Definition
The process of estimating the funds requirements of a firm and
determining the sources of funds is called financial planning.
(I M PANDY.)
Above definition simplifies that financial planning relates with
determining the future course of action related with financial department.
Financial planning or plan can be formulated for different period of as
following.
Long Term Planning
Medium Term Planning
Short Term Planning
Austin Engineering Co. Ltd. has good financial planning. Bank of Baroda
provides finance to the company. In long term planning this company think
about expansion of business & modernization of company. They decide thefinancial activities from the following manners.
G.S.I. Loan
Cash Credit Facility
Over Draft Facility etc.
With the help of all these means plus the share capital packing facility,budget of all expanses are being settled.
8/3/2019 pankaj hadiya
59/74
[ 59 ]
CAPITAL STRUCTURE
Capital structure is completely different from Capitalization capitalstructure refers to the make up of its Capitalization. Capital structure is the
permanent financing of firm represented by long term debt, preferred stock
and net worth. Capital structure is used to represent the proportionate
relationship between debt & equity. Capital structure also includes loans,
bonds, share issued, reserves etc.
Capital structure of Austin Engineering Co. Ltd. is perfectly
maintained. No shortage of capital is aroused because of enough capital. The
company has enough capital resources whenever it is required. So, company
has no problem about capital structure.
8/3/2019 pankaj hadiya
60/74
[ 60 ]
CAPITALISATION
Capitalization means total among of long term funds available to the
company which includes shares and debentures, issued by the company and
also long term loans taken from financial institutions. As far as earned profits
remained to be distributed are concerned or it is necessary to classify them as
either capital surplus or revenue surplus. The amount of capitalization should
be only that much which can be justified by the profits and by the normal rate
of return for the industry.
Over Capitalization:
A company is said to be over capitalized if its earnings are less in
relation to its capital investment. The company may be having a low earning
capacity. Thus, it results in over capitalization.
Under Capitalization:
A company is said to be undercapitalized if its earnings are more in
relation to its capital investment. Under capitalization is an indication of
effective and proper utilization of funds employed in the business. Under
capitalization indicates sound financial position and good management of the
company.
Austins earnings are Rs. 3, 73, 10,646 and investment is Rs. 12, 47,
61,492. Thus, earnings are less than investment. So we can say that the
company is over capitalized.
8/3/2019 pankaj hadiya
61/74
[ 61 ]
MANAGEMENT OF FIXED ASSETS
Assets, representing economic resources, are the valuablepossessions owned by the firm. These possessions owned by the firm should
be capable of being measured in monetary terms. Assets are of two types:
TANGIBLE ASSETS:
They are the assets which have physical existence and generate
goods and services. It includes land, machinery, equipment, furniture etc.
INTANGIBLE ASSETS:
They are the assets, which do not generate goods and services directly
and have no physical existence. It includes patents, copyrights, goodwill,
trademarks etc.
8/3/2019 pankaj hadiya
62/74
[ 62 ]
RATIO ANALYSIS
Financial Ratio is most frequently and widely used in practice to assess
a firms financial performance and condition. Ratio analysis is a powerful tool
of financial analysis. Ratio can be defined as the indicated quotient of two
mathematical expression and as the relationship between two more things.
In actual position there are many ratios, which can be found out. Here
mainly 8 ratios are defined and found out from the data of Austin Engineering
Co. Ltd
CURRENT RATIO
Meaning :
Current ratio is the most common ratio for measuring liquidity. Being
related to working capital analysis it is called the working capital ratio.
Purpose:
The current ratio of a firm measure short term current financial liquidity
.
PARTICULAR 2009 2010 2010 2011
Current Assets
Inventories 284664968 254321914
Sundry Debtors 179198533 151569700
Cash & Bank Balance 17883875 64391467
Loan & Advances 63106942 54261808
TOTAL 544854318 524544889
Current Liability
Liability 169730997 132349343
Provision 45724425 43789818
TOTAL 215455422 176139161
8/3/2019 pankaj hadiya
63/74
[ 63 ]
Current Ratio = Current liability
Current Assets
2009 -2010 = 534102425 = 2.6 :1
215455422
2010 -2011 = 524544889 = 2.98 :1
176139161
Interpritation :
The ideal ratio considered to be 2:1.the above calculation shows that
the current ratio of the company is 2.6:1 and 2.98:1, in the year march 2009
and march 2010 Respectivly.Here Companys good position in all two years.
QUICK RATIO
Meaning:
When liquidity is highly restricted in terms of cash and equipment, this
ratio should be relationship between cash and near cash items on the one
hand.
Purpose:
To measure more rigorous of a firms liquidity position.
Quick Ratio = Quick assets
Quick liability
2009 2010 = 248586120 = 2.22 :1
25455422
8/3/2019 pankaj hadiya
64/74
[ 64 ]
2010 2011 = 270222975 = 1.53: 1
17613961
Interpritation:
A quick ratio 1: 1 is good for the company. Here in this company this
ratio is greater than these norms. But last three years it is decreasing, yet it is
not need to worry about it is because it is yet above norms.
PROPRIETARY RATIO
Meaning.
This relates the shareholder fund to total assets. it is variant of the debt
equity ratio. This ratio shows the long term or future solvency of the business.
Purpose:
It indicating available to creditor and general financial strength of the
firm.
PARTICULAR 2009-2010 2010 2011
Shareholders Fund
Capital 35112500 34778000
Reserve 304198833 367104781
Total 339311133 401882781
Total Assets 698415831 678351780
Proprietary ratio = shareholders fund
Total assets
2009 2010 = 339311133 = 0.44: 1
698415831
8/3/2019 pankaj hadiya
65/74
[ 65 ]
2010 2011 = 401882781 = 0.59: 1
678351780
Interpretation:
This ratio shows the general position of the company is very important
to creditors as is help to find out the proportion of shareholder fund in the total
assets used in business. Higher ratio indicates a secure position to creditor.
DEBT EQUITY RATIO
Meaning:
Financing of total asset of business is concern is done by owners
equity as well as outside debt. This ratio indicates d the relative proportions of
debt and equity in the financial assets of the firm. It is known as external
internal ratio. Debt equity ratio is determined to ascertain Soundness of long
term financial policy of firms.
PARTICULAR 2009 - 2010 2010 2011
Long term Debt
Secure loan 135446717 93064494
Shareholders Fund 248586120 270222975
Debt Equity Ratio = Long Term Debt
Shareholders Fund
2009 2010 = 135446717 = 0.54:1
248586120
2010 2011 = 93064494 =0.34:1
270222975
8/3/2019 pankaj hadiya
66/74
[ 66 ]
Interpretation:
It measures the ratio of long term or total debt to shareholder equity. A
high ratio shows a large share of financing by the creditor of the firm.
A low ratio implies smaller claim of creditor. If the debt equity ratio is
high the owners are putting up relatively less money of their own. It is danger
signal for the creditors. Here debt equity ratio 54% in 2009 and 34% in 2010,
which is shows good financial position of the company.
8/3/2019 pankaj hadiya
67/74
[ 67 ]
WORKING CAPITAL MANAGEMENT
Working capital is what makes a company work. It is just not
possible to carry on the business with only fixed assets. Working capital is
must. In adequacy of working capital chocks any business to death. Working
capital is also called as "circulating capital" it is that pail of capital, which is
require to purchase current assets i.e. to meet regular & recurring needs of a
business firm like rent, advertising, power & so on.
A sound working capital management policy is one which
ensures "Higher profitability & proper liquidity." The goal of working capital
management is to ensure that the firm is able to continue its operations and
that it has sufficient cash flow to satisfy both "Maturing short term debt &
upcoming operational expenses" In AEC ltd the position of current assets &
current liabilities is as follow.
Particular 2009-10 2010-11
Current assets
Inventories 285,516,305 254,321,914
Sundry debtors 164,825,535 151,569,700
Cash & bank
balance
19,178,538 64,391,467
Loans & Advances 64,582,047 54,261,808
534,102,425 524,544,889
8/3/2019 pankaj hadiya
68/74
[ 68 ]
Current liability
Liabilities 169,730,997 132,349,343
Provision 45,724,425 43,789,818
Net working capital = Current assets - Current liabilities
2009 10 = 534,102,425 215,455,422
= 318,647,003
2010 - 11 = 524,544,889 176,139,161
= 348,405,728
8/3/2019 pankaj hadiya
69/74
8/3/2019 pankaj hadiya
70/74
[ 70 ]
OPPORTUNITIES
The company can achieve the top place from the 4 th among the
manufacturers of bearings by some improvement in the department.
The company has great opportunity to expand for the business
by taking benefit of its largest product range in the Asia.
The company can increase their sale & can have wide market
network.
THREATS
A serious threat is being faced from imports due to decline in
duty rats.
The manufacturers are facing a threats from the spurious partsmanufactured who manufacture duplicate parts & sell them in the name of
popular brands I the replacement market at a very low price.
Steel & alloy steel are basic raw material for bearing industry &
their prices are expected the upward trend in coming future.
8/3/2019 pankaj hadiya
71/74
[ 71 ]
SUGGETION
Reinforcement activities. I.e. share job related strengths and
weakness.
Goal setting, goal to each shift and duration to accomplish the
same. Creation of healthy and competitive environment.
Training program to motivate and improve their soft skills,
problem solution skill, positive attitude, proper approach and behavior.
Participative environment through team building and group work.
Appreciation of accomplishment informally and frequently.
Motivate employees to give their ideas and views by awarding
them best suggestion awards.
Arrange meeting once in a month to give chance to raise their
voice to all the employees.
8/3/2019 pankaj hadiya
72/74
[ 72 ]
CONCLUSION
An easy start, smooth drive fuel economy and minimum maintenanceis what a machinery owner wants. But all this is possible provided the right
qualities of bearings are used. Having already given their customers the
choice of the best branded bearings. AEC Limited has now come out with the
best bearings with magic to keep their engines young forever!
AEC Limited is giving constant training to all the employees. From the
interaction, interview with all the employees. I have given some suggestions
which have accepted by the company.
I am really indebted to the staff of AUSTIN and all our professors who
are our future builders in true sense.I think that the future of the company will
bright.
8/3/2019 pankaj hadiya
73/74
[ 73 ]
BIBLIOGRAPHY
Books refer:
Finance Management
1. Khan and Jain, Financial Management, 3rd edition, Wiley
India
2. I.M. Pandey, (2010) 11th edition, Vikas Pub.,New Delhi
Marketing Management
Philip Kotler, and Kevin Keller, 13 th edition, Pearson
Education
Human resource management
Gupta, C.B. (2007). Human Resources Management,
S. Chand & Sons, New Delhi pg. 9 -18
K. Aswathappa, Human Resource Management, 5 th
edition, Tata Mc Grow Hill
Annual Report of Austin Engineering Co.Ltd.
8/3/2019 pankaj hadiya
74/74
Milestone last retrieved 01/07/2011 from
http://www.aec-bearings.com/company.html
Product Range last retrieved 01/07/2011 fromhttp://www.aec-bearings.com/products.html
Journals published by the AEC Limited.
Web Sites:
http://www.aec-bearings.com
http://www.aec-bearings.com/company.htmlhttp://www.aec-bearings.com/company.htmlhttp://www.aec-bearings.com/products.htmlhttp://www.aec-bearings.com/products.htmlhttp://www.aec-bearings.com/http://www.aec-bearings.com/http://www.aec-bearings.com/http://www.aec-bearings.com/products.htmlhttp://www.aec-bearings.com/company.html