A PROJECT REPORT OF PRACTICAL TRAINING FOR THE

UNDER GONE AT:INDIAN RAYON A UNION OF ADITYA BIRLA NUVO LTD.

ACKNOWLEDGEMENT It is our great pleasure to put this report before you, we are very much thankful to our principle Mr. BHATT, who has provide us such a valuable opportunity and we also thankful to B.B.A. in charge professor sandhe. We are very much thankful to Ms. RICHA SHAKLA & Mr. J. V. DAVE (librarian) & HRD, IR and all other staff member, who have provide us such valuable information and helped to prepare this industrial report.

PREFACE B.B.A. is a special field of management where the meaning giving during the regular study which is more related with the business world so as the practical knowledge should be hand with the decrial aspect this is the main aim of the coerces of B.B.A. which I enjoy the privilege to efficient too. In our country India, the population is increasing rapidly so we have a lot of manpower but we dont have any alternative to use this manpower, so the problem o unemployment is also increasing day by day. We can save this problem by developing the industries. Indian RAYON is a large-scale industry. Generally LSI doesnt create much employment opportunities but it is not so in the case o Indian RAYON through the company is LSI is giving employment i.e. more than 4000 person. LSI helps in the development of the country by increasing educational level, communication level, the living standard of the people etc. Thus LSI is needed for the development of the country.
3

INDEX

No. 01 02 03 04 05 06 07 08

Particular General Information Personnel Management Marketing Management Finance Management Future Plan Achievement Conclusion Bibliography

Page No. 05 27 51 66 87 89 91 93

INDEX

NO. 01 02 03 04 05 06 07 08 09

PARTICULAR Name & Address of the company Present managing body History & development of the unit Size of the unit & form of organization Manufacturing processes& types of products Organization structure with chart Time Keeping System Employees and Welfare services Contribution of the unit to the industry

PAGE NO. 07 08 11 12 14 19 21 24 26

NAME & ADDRESS OF THE COMPANY NAME Indian Rayon (A unit of Aditya Birla Nuvo Ltd.) ADDRESS Marketing Office 712/713 Midas 7th floor Sahara Plaza Complex Andheri Kurla Road. J.B. Nagar Andheri (east) Mumbai 400050 REGISTERED OFFICE Indian Rayon & Industries Limited Veraval Junagadh Road, Veraval 362266 Phone (02876) 245711 FAX NO. (02876) 243220 WEB SITE www.adityabirla.com www.indianrayon.com E-MAIL IRIVERAVAL@ADITYABIRLA.COM
7

PRESENT MANAGEMENT BODY Promoters Managing Director Managing Group Board of Director : MR. MORARJIBHAI : Dr. BHARAT K. SINGH : ADITYA BIRLA GROUP : MR. KUMAR MANGALA BIRLA MR. RAJESHREE BIRLA MR. H. J. VAIDA MR. B. L. SHAH MR. P. MURARI MR. B. R. GUPTA MR. TARJANI VAKIL MR. VIKRAM RAO MR. G. P. GUPTA MR. S. K. MITRA MR. RAKESH JAIN MR. K. K. MAHESHWARI MR. ADESH GUPTA Chairman Manager Chief Finance Officer Company secretary : KUMAR MANGALAM BIRLA : MR. K. K. MAHESWARI : MR. ADESH GUPTA : MR. DEVENDRA BHANDARI

EXECUTIVE RAYON DIVISION MR. K. K. MAHESWARI MR. V. G. SOMANI MR. D. P. MODANI MR. K. SURESH MR. K. D. JOSHI MR. P. MARSIMHA RAO Group executive president _ President _ JT. President (Finance & Comm.) _ SR. Vice President (Pro.) _ SR. Vice President (mkts) _ Vice President (HR)

ADVISORS SHRI M. C. BHAREJA SHRI S. B. AGARWAL SHRI R. I. BAWALA AUDITORS Khimji Kunwarji & Co. Mumbai S R Batliboi & Co. Mumbai OTHER BRANCH AUDITORS K. S. Aiyer and Co. Mumbai Delaitle Haskins & sells, Bangalore

BANKERS State Bank of India United Bank of India UCO Bank Corporation Bank Central Bank of India Punjab National Bank City Bank American Express Bank Ltd. Hong Kong & Shangahi Bank Bank of American NT & SA State Bank of Saurastra State Bank of Hyderabad Allahabad Bank Standard Chartered Bank State Bank of Bikaner & Jaypur HDFC Bank Ltd.

10

HISTORY & DEVELOPMENT Indian rayon factory was established in 1956 by MR. MANOJBHAI VAIDYA, this plant was set up for manufacturing viscose filament yarn. Late prime minister SHRI LAL BAHADUR SASHSRI laid the foundation stone of this unit on 21st June 1959. The company was incorporated under the company act 1956 on 26th Sep, 1956 & company was given business commerce certificate on 13th Feb, 1958. On 13th April 1963 Company took its trial production. The regular production of rayon yarn was started on 27th Sep 1963 while commercial production was started on 2nd Oct 1963. As a result of strike and chaos with in the unit the present management is Birla Group took over the company on 18th 1966 due to expansion. Indian Rayon and Corporation Pvt. Ltd. Named it become Indian Rayon and Industries Ltd. After that the company is the Adyta Birla Group is the no. 2 business group in Indian. Company develops their plant in different states of India.

11

SIZE & FORM OF ORGANIZATION The size of Indian Rayon & Industries Ltd. Is largescale industry. We can say that this unit is heavy industries, because it covers all the feature of heavy industry like. It has large amount of capital, huge production cycle and also uses heavy and costly machinery. Hence it quite natural that this industry require large number of persons. Indian Rayon & Industries Ltd. is public limited company. This company was incorporated on 26th Sep, 1956 under the companys act 1956, and they issued at public issue, thus the production process is also long duration. The IR & IL is capital oriented because most of work and its production is very large, so it can be said as heavy and large scale industry.

12

The IR & IL consist five top-level management:General Management Personnel Management Marketing Management Production Management Financial Management Here, each department has his department heads. The organization adopts departmentalization. The position including on horizontal lines as per relationship.

13

MANUFACTURING PROCESS & PRODUCTS The main product of IR & IL is viscous filament rayon yarn (VFY). For producing rayon yarn raw material is very important, which are as follow:1. 2. 3. 4. Wood Pulp Caustic Soda Carbon Bisulphate Sulphuric Acid About 90% of the above raw materials are available from domestic market and rest of 10% of raw material is imported from South Africa, Canada, Sweden & Malaysia. The Seat of wood pulp are made of cellulose from the following trees:- Eucalyptus (South Africa) - Spreell (Canada) - Bamboo (India)

14

The Process is carried out in the following steps, which are as under:1. Conversion of Wood Cellulose into cuboti cellulose (maximum of wood pulp with NAU) 2.
3.

Conversion of cuboti cellulose into sodium cellulose xanthenes Conversion of sodium cellulose xanthenes into viscose

The process is carried out in 8 steps such as:1. 2. 3. 4. 5. 6. 7. 8. Steeping Pressing Shredding Aging Xantharation Dissolving Repenting, Filtration Caustic Preparation

15

The production process of the VFY can be described in the following section:* Viscous Selection:In the section process from wood pulp to viscose is done means Viscous manufacturing. * Spin Bath Section:This viscose is expiated through the fine holes of get into coagulation bath of sulphuric acid and slot which neutralize than alkaline content of the vicious and regenerated the original cellulose of continuous filament. * Spinning Section:This section is also called as cake formation department. The yarn is through against the side of this rotation pat when it is laid in the form of the cake because of the channel depending on the speed of the revolving pat. * Textile Section:The cake is now ready for winding in the form of cones.

16

* After treatment Section:After washing section i.e. washing room of the cake, when the cake is burn in the opening part it in full of acid and relatively too much weak. It is started in very humid chamber. The cakes are washed through many types of water like water etc. and thus all the excess liquid is removed and cakes are ready for coning. * Packing Section:After winding the cones, these are graded by visual inspection now they use cardboard for packing because it is easy to handle and taken less weight then wooden box on box the full information is printed. A. B. C. D. E. Date packing Quality, grade and weight Registered trademark of the company Colors of cones Name of the party to whom the goods are dispatched.

17

PRODUCT:As we know the main product of the firm is viscose filament yarn as subsidiary products. They produce the following products, which are needed in the production of the yarn. Sulphuric acid Carbon disulphide Sodium sulphet The yarn used to produce cloth. The company produces the yarn of more than 30 colors. Some are mentioned here:Apple green Black, Blue Green Golden Yellow Lemon Yellow Maroon Red Super White Metal Brown Golden Brown etc.

18

ORGANIZATION STRUCTURE WITH CHART This department has full responsibility, authority and accountability of any task related to the production. In short, this department is the top accountable person of this department. The authority line of the department flows from top to the bottom and responsibility from bottom to the top. This department is answerable to the managing director. With a view to decentralizing of authority IR & IL has adopted well-balanced line staff type of organization to manage day-to-day activities. The chart of the organization of IR & IL is as under:-

19

Executive President

Production Department

Engineering Department

Commercial Department

Administration Department

HRD Department Time Office

Viscose

Maintains

Finance

Raw Material

Spin bath

Electrical

Share Legal Welfare

Spinning

Instrument

Store & Purchase Sales Labor Office Bardhana Personnel Internal Audit HRD

After Treatment Textile Chemical

R&D

Estate

Quality Control

Security

20

TIME KEEPING SYSTEM The Aditya Birla nuvo Ltd. Holds efficient time keeping system. The company has installed computerized time keeping system. The time keeping system of Aditya Birla Nuvo Ltd. Includes use of:Punch card system:All employees including all the staff member and workers have been issued punch cards. There are 7 machines for punching and connected with computers. Out of this six machines are at the gate, one is at HRD department. When employees enter in the gate, it must punch the card into machines and at the time have existed also. Attendance Registers:Time officers keeps attendance registers, many workers given attendance slips also in the system they must fill this slips also at each and every time of their entry as well as the register collect the data through computers and their salary and wages prepared from this collected data.

21

Shift Timing:There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under:-

Shift A B C

Time 07:00 AM to 03:00 PM 03:00 AM to 11:00 PM 11:00 PM to 07:00 AM

General Shift: - 08:30 AM to 05:00 PM Lunch Break: - 12:30 pm to 01:00 PM Thus for each and every employees working hours is eight hours.

22

Leave Facility:Time officer of Aditya Birla Nuvo Ltd. Has presided the leave benefits for two categories of personnel:Leave for permanent Labor:20 days earned leave 10 days causal leave 20 days sick leave (10 full days) Leave for staff categories:30 days privileged leave 10 days causal leave 10 days sick leave Over Time:The over time payment is double than the usual wage payment Other Benefits:Time officers also perform other duties like 1. 2. 3. Loan, advances to employee Provident funds Life insurance polices etc.

23

EMPLOYEES WELFARE SERVICES IR & IL provided various services to the employees or who serves the origination. Quarter Facilities:The IR & IL provides quarter facility to its workers & staff member. They provide housing board house at a subscribed rate at the law installment system following 20 years of time the IR & IL provides ownership of such hoses to the workers. Medical Facility:There is separate dispensary and MBBS doctor, DR. GANATRA SIR, checks the patients not only but also their family and also provides medicines at cheapest rate. Canteen Facility:There is canteen facility at IR & IL at a very cheep rate. There is separate canteen for workers, staff and officers, where they get snacks and tea at cheap rate; they provide 25 paisa tea, and 100 paisa snacks etc. Milk Facility:The IR & IL provides 500 grams of milk bag to its workers for the energetic work.

24

Uniform Facility:In the IR & IL there is uniform to every person who secures the organization and there is unique uniform to everyone. School Facility:The IR school at veraval has there out standing name in the entire Gujarat because there is sports team. Cultural and entertainment programmed, sports organized by IR & IL for develop their employees and they are also given monitory reward in return to them, club facility, swimming pools are provided by IR & IL. VRS Scheme:This facility can be given by IR & IL to their employees and 370 employees also take benefits as these scheme. Pension Facility:It provides pension facility to its employees after retirement.

25

CONTRIBUTION OF THE UNIT When we consider the contribution of the unit is has get up level position in manufacturing of 120-deener yarns. There is monopoly of producing 200 diner yarns. In export market contribution of their unit is very well in Indian market 3 unit of Birla. Group manufacturing Rayon yarn century Rayon, Grassim Rayon, Kindalco Rayon these 3 unit cover about 75% of the total market.

26

27

INDEX NO. 01 02 03 04 05 06 07 08 09 10 11
12

PARTICULAR
Introduction

PAGE NO. 29 30 31 33 38 39 41 43 44 46 47
48

Organization

of

Personnel

Management Manpower Planning Requirement, Selection & Induction Wage & Salary Administration Training & mgt development programmers Promotion & Transfer Policy Job Description Performance Appraisal System Working of E.S.I. scheme Study of provident fund scheme Grievance handling procedure & working of trade unions

28

INTRODUCTION Human Resource is the great assets of the business enterprise. It is the manpower that operates the machines. Process the raw material into finished products. But Human factor refers to whole consisting of inter related, independent and inter acting physiological, sociological and ethical components hence there is need of management of human resources in order to have proper planning, organizing, staffing, directing and controlling in order to achieve individual and organizing goal. With reference to Aditya Birla Nuvo Ltd. The HR department is divided into two divisions:Human Resources Department Training and Development

29

ORGANIZATION OF PERSONNEL DEPARTMENT

Personnel Department Vice President

Personnel General Manager Chief Manager

H. R. D. Manager

Welfare DR. Manager

Community

Labor Office Manager

Labor Manager SR. Officer

Time Officer SR. Officer

30

MANPOWER PLANNING Manpower is key economics resources, which should demand the same attention from the company that it gives planning at finance, equipment, raw material, production, sales and profit. A manpower planner function should be:To indicate the manpower constraints on company policy for the future. The interpret production and sales forecast in terms of manpower requirement. Manpower planning is the process of assign the right number of people and right kind of people at the right place at the right doing work for which they are economically most useful, a manpower plan is necessary at any organization to know about the posting of the prospect personnel and their skills, which would future result into training programmer.

31

Importance of Manpower Planning:efficient action replicated The knowledge of each individual can not be Only people can spread knowledge resources Individual knowledge is the staffing point for The executive sources of knowledge for an It is only people who can convert knowledge into across the company organizational knowledge organizational and people

32

RECRUITMENT & SELECTION Requirement is a process of searching for

prospective employees and stimulated and encouraging them to apply for jobs in an organization. - EDWIN FLIPPO Requirement Process:Requirement process for blue-color worker is called traditional method. These are stages of requirement process for blue-color worker, they are as under:Within org. i.e. permanent workers Badly or temporary workers Trains Apprentices Causal Applicant Employees recommitment of trade union Labor Contractors

33

If any worker remains absence or leaves the job and it become possible to transfer any other worker in the vacancy if the worker dies than as per vacancy available to his son is given to son of the souls is requirement labor. Selection is the process to choose he substitute candidate by respecting or excluding unsuitable. Selection is also negative process. In selection some employees are particular job but many employees are rejected. The causal worker is employed for an occasional work. The present split up to worker & staff IR & IL is given below:-

Permanent worker Badly Worker Apprentices worker Staff Worker Total

2817 850 77 612 4356

34

Staff Planning:Aditya Nuvo Ltd. Discuss various aspect related to the staff personnel which hold them into the organization, such importance issue are:Comparable perks Top mgt commitment Recognition in organization Clear goals Higher positive job

Manpower Planning for Worker:All the department need additional requirement of manpower has to contact the personnel, which makes the arrangement for the required manpower. Every month the personnel department issue personal requisition from the all department and this forecast its manpower demands of each department accordingly the requirement are made. The worker is divided into for categories:Visa Permanent Badly Temporary

35

The badly worker is a substitute for the permanent worker in the absence of the entire permanent worker. The temporary worker is employed for a limited period for a temporary work. For the worker it is made by supervision and welfare officers, at the time of selection physical fitness past experience, honesty, etc are given importance. The selection employees are taken on the period of six month or twelve month all the employer if Found suitable during the period are chosen during the finial selection and gets permanent job. For technical staff and administrative person, in& ir arranges a written test and it is followed by personal interview. The performance of are candidate in both written test and oral test is given base for selection.

36

For white collar job Company adopts the following stages for selecting prospective candidates. Reception of application Preliminary interview Application blank Psychological test Interview Reference checking Medical examination Final Selection Induction:Induction prefers to the introduction of a person to job and organization. The candidate is required to work in all concentrate departments and is also made familiar to the rules and regulation of company. IR & IL does not believe in induction because it believes that it is wastage of time and it does not give importance to the induction.

37

WAGE & SALARY ADMINISTRATION Wages and Salary administration refers to the establishment and implementation sound policies and practice of employ compensation. Wages and Salary are given to employee as reward for they contribution to production process. Usually, wages refers to hours rate paid to such group of production and maintenance employ whom we call as blue color workers while on the other hand salary refers to monthly paid to decrial, administration and professional employees white color workers. There are two systems by which wages to be paid to the worker:Time wage system Piece wage system The worker can be divided into three diff. types:Casual Temporary Permanent The IR & IL gives good rate of salary to the staff & worker.

38

TRAINING & MANAGEMENT DEVELOPMENT PROGRAMME Training is an important aspect of personal which increase the knowledge and skill of a worker for doing specific job. - C-B MMORIA Training for the officers:For the success of business training is important. Company has to give training to the officers so they can match with new technology, so IR & IL giving good training facility to their officers. Training for the workers:The HRD department prepare schedule for the worker in need of training to develop the job main purpose of the company is to give knowledge about new technology.

39

The main purpose of the training is as under:training. Discipline, good conduct & job responsibility. Operating the working programmed. Improving the skill knowledge of workers towards To give technical knowledge & safety measure

quality of products. Training for supervisors:Supervisor plays a very vital role in the organization and supervisor is also important for industrial piece so supervisor should be trained for their work by increasing workers efficiency supervisor can increase production so by this ways company should reach to the goal by the help of supervisor. IR & IL gives good training to the supervisor; supervisors are trained under the guidance of the chief executives of the company.

40

PROMOTION & TRANSFER Promotion:A Promotion is the transfer of an employee to a job which pays more money or one that carries preferred status. Promotion is given after three or four years on the basic of disciplinary action and by performances appraisal system. Employees are prompted within organization in terms of vacancies or creation of new post. Aditya Birla Nuvo Ltd. Adopted to take the advances of the employees. One very well aware of companys policy and production procedures in terms to motivate them.

41

Transfer:A lateral shift causing movement of individual from one position to another usually without involving any marked change in duties, responsibility, skills needed or compensation. Aditya Birla Nuvo Ltd. Runs various units located at different places within the country, yet under this unit transfer practices not followed, sometimes some workers are transferred from one department to another because of physical fitness problem.

42

JOB DESCRIPTION Job description means to give the information and guidance to candidates about this particular job for which he has been selected. It is a process of giving information to candidates about his status, duties, responsibility etc. IR & IL the duties and responsibility of

administrative department are collected through job description are as under:Observation of employees at the first time at work Discussion with department heads and outside experts. At managerial level In this unit when managerial level person is selected following is the information given to them:Nature of job Duties & Responsibility Job summary Position & Status Working condition

43

PERFORMANCE APPRAISAL SYSTEM It is the process of evaluation the performance and qualification of the employee in terms of the requirement of the job, for which he is employed. Performance appraisal of Aditya Birla Nuvo Ltd. Is carried on three ways:Motivation:The emphases industrial psychological has shifted form the studies of the isolated individual and physical environment to the consideration of motivation and morale. In IR & IL motivates staff by performance appraisal, every staff member recognize his work and he always tries to do better work and effective work if his work is recognized. IR & IL motivates staff by performance appraisal, example their regularity work, and their honesty an also such things are being kept in mind.

44

Quality circle:Quality circle is a group of workmen working voluntarily for improvement in their total quality of work. The basic objective is help workmen in developing themselves there are 36 quality circle in IR & IL. Suggestion Scheme:It is a process of inviting suggestion from employee to motivate employees by involving in the organization to development and improvement of the company. In IR & IL employees suggestion are invited and then possible suggestion are put into the action, persons who suggested the suggestion are informed reasonable for implementation, practical suggestions are awarded.

45

WORKING OF E. S. I. SCHEME E. S. I. means employees states insurance; It is necessary in all the companies according to 1948 companies act. Insurance is provided to the worker, the company makes the dedication of salary of the worker every month. If accident accrue on the job to the workers, he is reserved monthly is given him all from the insurance, if any kind of illness is there two monthly is used by the company, worker can get salary with work are to two months according to this shame. So it can be said that IR & IL allows the law of government of Employees State insurance, there is no ESI scheme but every employees are insured in oriented insurance company.

46

STUDY OF PROVIDENT FUND SCHEME Provident fund scheme as per rules regulation of the government, the provident fund is compulsory saving from the salary of the employees. The provident fund scheme of the company follows law of 1955 thus at last when the employees retire he get all the amount. Thus the employees can get loan the amount of provident from and can withdraw at required time incase for marriage, sickness, house loan etc. In this scheme personal department is responsible as whole ill which 12 % of amount has been reserved as provident fund out of basic plus variable clearness borrow from provident fund allowance.

47

GRIEVANCE HANDLING PROCEDURE & WORKING OF TRADE UNION A grievance is any discontent or dissatisfaction, whether expected or not, whether valid or not, airing out of anything connected with the company which and employee thinks, believe or even feels to be unfair, unjust or inequitable. To handle and solve such grievance the Aditya Birla Nuvo Ltd. Have special producer. In Aditya Birla Nuvo Ltd. The workman will take

his grievance in oral of written to his immediate superior, such as section head. In case if the complaint is against him, it should be written and submitted to the next higher authority.

48

If the decision of his immediate superior or the

next higher authority is not satisfactory, he has to forward to the manager of the department. The management brings out the situation to the

grievance shift, if the workers are not satisfied or reply is not received within seven working days, the copy is forwarded to grievance committee. If grievance committee fails to solve the

grievance, the matter will be included in the agenda for discussion at the next meeting of the grievance committee.

49

Trade Union:A trade union is any combination of persons whether temporary or permanent, preliminary for the purpose of regulation of the relation of workers and employees or between worker and boss and for improving restrictive conditions on conduct of any trade on business and includes the federation of two or more trade union. Aditya Birla Nuvo Ltd. Has more than 2500 employees in the origination and for the state of protection of their rights that have formed there are three trade union:1. 2.

Indian Rayon Employees Union (IREU). Indian Rayon Karmachari mandal (IRKM) Rayon Mazdoor Sangh (RMS) Associated with

Indian association with Hindu Mazdoor Karmachari mandal.

3.

Bharatiya Mazdoor Sangh.

50

51

INDEX

NO. 01 02 03 04 05 06 07 08 09 10 11

PARTICULAR Introduction Marketing Objective Organization of

PAGE NO. 53 54 56 57 59 60 61 62 63 64 65

Marketing

Department Market Segmentation Product Decision Price Decision Advertising Sales Promotion Channel of Distribution Marketing Research Activity International Market

52

INTRODUCTION A market any be considered as a convenient meeting place where buyers and sellers gather for exchange of goods and services. Marketing IS comprehensive term and it includes all resources and a set of activates necessary to direct & facilities the flow of goods and services from producer in process of distribution. Marketing is typical seen as a task of creating, promotion and delivering goods and services to consumer and business. Marketing people involved in marketing ten types:good services experience events persons place properties organization information ideas

53

MARKETING OBJECTIVES operations -

To have highly delighted customer base To develop committed, target oriented, internal To ensure cost efficiency, profitable marketing To maximize relation through focus on direct To develop customer centered, profit oriented To ensure transportation of goods in strict To make better and quality product To provide a successful distribution of consumer To sell their product in new areas to make new

customer, supplier relationship

sales and reduced logistics long term marketing strategies adherence of safety and environment guidelines product customer and satisfy old ones

54

Marketing objective:-

departments

process

to

meet

Market environment analysis Strategic planning and budgeting Product delivery alignment System improved Customer satisfaction assessment

55

ORGANIZATION OF MARKETING DEPARTMENT Organization is a form of co-operative EFFORTS. It can be said that marketing organization consists of number of position with number of people. Marketing organization is important to the firm, as single person cannot handle even marketing activity.

VICE PRESIDENT

Raw material & Storage General Manager DR. Manager SR. Manager

Legal & Position SR. Officer

Sales & Marketing General Manager Manager Sales Manager

Transportation SR. Officer

56

MARKET SEGMENTATION Market segmentation consists of taking this total nitrogenous market for the product and dividing it into several sub-market segments each of which tens to be homogenous in all the significant aspect. In market segmentation, there are three elements, which mostly used:Mass marketing-one product Producing marketing-two or more product Target marketing-different production The Market follows, the principle of divided & rule there are two approach regarding market segmentation. 1. 2. People Oriented Approach Product Oriented Approach IR & IL use people oriented approach method for segmentation. Here they clarify the consumer on the basis of location, income, geographical, etc.

57

IR & IL has its branch at AHEMDABAD, SURAT, BANGLORE, Chennai and its head office is at Mumbai, which take decision about all products. There are different manufacturing companies that consumer and demand for the specific type of yarn of very fine quality, this demand for yarn differs from company to company on the basic of their handloom production so, this company has segmented the total market on the basic of product application consumer wise.

58

PRODUCT DECISION The production is any thing that can be offered to satisfy the need or want. Production is the most important and tangible component of marketing program. Product is to be satisfied and for which whom the product is meant. Product decision involves three important considerations. The development and introduction of product The modification of the existing products The elimination of unprofitable products Product planning determines the characteristics of the product best meeting the consumer numerous desire, characteristics that add stability, to product and incorporate this characteristics into the finished product. IR & IL makes product planning according to the demand of industries and situation and price of product. Product development includes the technical

activities of product research, engineering and deciding. Product planning is also given due importance in IR & IL, it has also installed many automatic spindle in very near past.

59

PRICING POLICY Pricing determines the utility aspect of the product. There is generally tendency of consumer that measures the quality of product from its price. Price is exchange value of the product or service which is always expressed in terms of money. Right price can be determined through pricing research and by adopting the test market techniques. All the company fixes prices on the bases of cost of production and change of distribution, packing, etc. The pricing objectives of company are as follow:Return on investment To maintain its market share Price stability IR & IL has not adopt any clear pricing policy but we may say that the mixed policies of the following policies exist in the company Cost oriented pricing policy Demand oriented pricing policy Competition oriented policy

60

ADVERTISEMENT Any paid from of non personnel communication of ideas, goods or services by business firms identified in the advertising message immediately to load to sale immediately or eventually. The main aim of advertising is to make people confidence about the product it is also useful to inform people about the product. IR & IL is very sound company producing the industrial product and major factor producing rayon yarn in India are in the handle of one mg the Aditya Birla Group covered 75% of the rayon yarn market, thus there is no question of advertising. The rayon yarn is a raw-material of the textile industries, the company published magazine & gives data of manufacturing figures their export & import pricing policies etc. thus in this way we can cell that direct advertising is done.

61

SALES PROMOTION Promotion consists of those activities that are designed to being a company goods or services to the favorable attention of customer. In this method following tools have been used:Buying allowance discount Display allowance Dealers contest Concession on net sales (2%) Free gift In IR & IL there is no separate department for sales promotion but sales department of Rayon division, VERAVAL, follows it. Sales promotion affects in sales of a company. Most of company does sales promotion to improve market. Sales promotion activities do not relate only with distribution but also delars and members of sales force. Recently, the company gives key, chain, dairy, calendar, wallets, decorative item etc. To the consumer gift following programmers are conducted by IR & IL for promoting sales Dealer meet each other Dealer visit to factory Price distribution To dealers
62

.CHANNEL OF DISTRIBUTION Aditya Birla Nuvo Ltd. Has adopted its own sales branches and sales officers in the context of this distribution channel. Rayon division adopts some time one level distribution Channel of distribution For Rayon Yarn:Company ------Sales officer (or agent) ------Customer One Level For chemical yarn (by product):Company -------- customer Company -------- dealer customer Rayon division does not fix any channel; due to following reasons:Product characteristics Company characteristics Big investment

63

MARKETING RESEARCH To manage a business well its future and to manage its future is to manage its information. Besides managing man, money, materials, machines, modern business has to manage information carefully. At some period chemist, techniques and president visit to the market. Some times some persons are employed by the com company for research and they to customer to take opinion about the products of the company beside, the following are also required:Market survey A product performance research A sale forecast segment wise IR & IL also takes interest in market research and for the purpose they were using the service of professional sponsor trade delegation only but than after 1988, they are research market through their own quality control department and international level sent their higher level executive for purpose of researching market. The yarn of marketing research adopts by this company has adopted survey method under this distribution of simple free gift, discount, etc. Telephone is used for marketing research.
64

INTERNATIONAL MARKET The exchange relation between two national boundaries can be called as international market. This word is used for sales exports and for purchase of important in international market. The IR & IL doing the both import & export. The company exports 70% of its total production to the various countries through its own office at Mumbai. The company is using shipping transport to exports their products. The company is export the following countries:United kingdom Turkey United state of America Italy Spain Philippines The company also imports the raw material for rayon yarn from south Arabia and Canada. The company also imports wood pulp. They have established their own training house in foreign countries. IR & IL gets order and reads export demand.

65

66

INDEX

NO. 01 02 03 04
05 06 07 08 09 10

PARTICULAR Introduction & Objective Organization of finance & account department Financial planning Capital structureFinancial Leverage Capitalization-over & under capitalization Management of fixed assets-capital budgeting Management of working capitalprofitability & dividend distribution Profitability & Dividend Distribution Right issue, bonus issue, right debenture issue

PGE NO. 68 70 71 73
74 75 77 81 83 85

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INTRODUCTION & OBJECTIVES Finance is a life blood of business, we need finance for production of goods and services as well as distribution finance function assures an important role in the business system, it is said that businessman takes money to make money, this is not true; actually if you have money and you manage it properly, you will make more money, this means mgt of finance is necessary for all. Important of finance cant be measured; it is really key info business operation. Money is universal lubricant, which keeps enterprise dynamic. Financial management has under gone many charges, it has gained a lot of important over time and success of every business largely depends up to the financial position of the business.

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There are three key elements for process of financial management:1. 2. 3. Financial Planning Financial control Financial decision making Objectives:To produce wealth for the business To generate cost To supply adequate return on investment To protect business from risk and uncertainty

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ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT

SR. VICE PRESIDENT (FINANCE) GM FINANCE SR. MANAGER (ACCOUNT)

Assistant Manager Cash

Assistant Manager Creditors

Assistant Manager Salary

Officers

Officers

Officers

Officers

Officers

Officers

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FINANCE PLANNING Finance planning is one of the most an aspects of the financial managers job. The success of an organization always depends upon the proper planning refers to make plan about finance that how much money is required how is collected, financial mgt has to make plan for capital investment and also for working capital for the ensuring year. The financial planning is the responsibility of the top level mgt, it is also essential that each financial act is carefully planned before any action as the success of failure of the firm depends totally on it. IR & IL the task of financial planning is divided into 3 parts:Top Level:This level prepares plans pertaining to long term requirement of the form its capital expenditure permanents short term needs inflow and outflows.

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Middle Level:This is considered by the virtually routine finance plan; this level is generally concerned with the listing and calculation of outflow. Lower Middle Level:In this level generally concerted with the listing and calculation of outflows, the whole process at this level is divided into 2 parts:Cash Flow Cash Outflow In IR & IL unit financial decision are very crucial head officers at Mumbai plan for new project of the company.

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CAPITAL STRUCTURE FINANCIAL LEVERAGE Capital structure refers to the composition of capital in other words the capital structure of the company refers to make its capitalization. Capital structure refers to the fix of long-term sources of fund such as debenture long-term debit, preference share and equity share capital. PARTICULARS Share Capital Reserve & Surplus Secured Loans Unsecured Loans Preference Share RS. (IN CRORES) 2007 93.31 3,031.24 2,071.62 760.21 15.00

2006 83.50 2,134.11 1,084.21 479.36 15.00

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FINANCIAL LEVERAGE Financial leverage is also called on trading of equity; a company can finance its investment by variety of sources such as preference share capital including reserves and surplus. Financial leverage is defined as the activity of firm used financial leverage to magnify the effects of firms earning per share, the financial leverage is controllable and also completely avoidable leverage, the degree of fund collected by the firm from outside is called financial leverage. The IR & IL also makes the use of the debt but the following ratio will show the clear picture of it:Financial Leverage = EBIT EBT = 716.35 353.47 = 2.02%

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CAPITALIZATION OVER & UNDER CAPITALIZATION Capitalization means total amount of companys capital or value of its capital stock. The total amount of capital should be enough to meet its present and future needs i.e. it must be property. Over Capitalization:A company is said to be overcapitalization if its earning is less in relation to its capital investment. In other words when the real value of share is less then its book value the company is said to be over capitalization. Under Capitalization:A company is said to be under capitalization if its earning is high in relation to its capital investment. For the company the book value and real value of shares are two main components for assessment of companys financial position, which can be calculated a under:-

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Thus IR & IL is over capitalization:Book Value = E. C. + Reserve & Surplus No. of equity shares = 93.31 + 3031.24 1, 20, 00,000

YEAR/EPS 2002/03 2003/04 2004/05 2005/06 2006/07

RS. 6.13 5.53 8.78 26.12 32.00

Reason for recreate in value of company:Presence of its various competitors in the market Decrease in the price of yarn

and especially chain rayon

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MANAGEMENT OF FIXED ASSESTS Fixed assets are those, which are fixed, and listed by a business mgt fixed assets is very important task which mgt has to face because fixed assets have relatively higher cost. To manage the fixed assets is that important task facing mgt today because of risk and investment factor the fixed assts are that kind of assets in which risk is for long period of time. Fixed assets create problem of replacement IR & IL maintain the plan register in which each detail of every fixed assets are essential moreover it has also appointed C.A. and instrument experts. At least once in a year they check all the assets of the company and certify then as their condition the depreciation of fixed assets company one calculated by diminishing balance method. On fixed assets investment in IR & IL on 31st March, 2007 are as under:-

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PRTICULARS Tangible:Land Freehold leasehold Railway Sanding Buildings Cease Hold improvement Plant of Machinery Computer & telecommunication Furniture, Fixture Equipments Vehicles & Aircraft Livestock Intangible:Entry/ License fees Good will Trade Mark/Brands Software Total &

MARCH/07

MARCH/06

13.06 26.61 0.69 238.46 87.81 2285.23 61.74 100.84 9.30 -

5.75 25.70 0.97 199.06 16.91 1294.20 25.68 56.53 50.03 -

367.11 68.41 63.99 53.85 3896.11

202.67 45.92 78.47 15.90 1987.79

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CAPITAL BUDGETING The system of the capital budgeting is employed to evaluate expenditure decision, which involve current outlays but are likely to produce benefits over a period of time longer than one year. These benefits may be either in the form of increased revenue or decreased cost. There is various method of capital budgeting:Internal rate of return Average rate of return Profitability index Pay back period Net present Value Aditya Nuvo Ltd. Under takes capital budgeting every year with the help of financial debt on pays back period methodology.

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The company always aims at increasing and expending the installed capacity of rayon yarn production, it constantly tries for its success, at present the installed capacity of plant is 1500 tons/annum. At present, the main objective of Aditya Birla Nuvo Ltd. Is replacement and modernization of machine and fixed assets and business expansion by adding new machine and technology, the decision taken by the unit base on pay back period?

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MANAGEMENT OF WORKING CAPITAL Working capital is concerned with management of current assts; it is an important integral part of financial mgt as short term survival is prerequisite for long term success. The operating cycle can be said at the heart o the need for working capital. It is operating cycle of working as per balance sheet of IR & IL. Working capital management is concerned with the problem that arises in attempting to manage the current assets, current liabilities & the interrelationship that exists between them. The term current assets refer to those assets which in the ordinary course in cash within one year without under going a domination in value & without disrupting the operation of the firm.

Working capital of Aditya Birla Ltd. March 07

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Current Liabilities Acceptance Sundry Creditors Advance customers Income received from

RS. 13.791 1141.78 129.32 3.04

In

Current Assets Inventories Sundry debtors Cash balance Interest accrued investment on bank

RS. 558.37 990.93 815.83 10.27

In

CRORES

CRORES

in advance Interest loans Investors education protection fund Other liabilities Provision For:Taxation Proposed divided Corporate tax on dividend Retirement benefits TOTAL 1683.00 74.04 2.61 0.04 287.64 2.24 accrued 28.47

Loans advance

1058.94

but not due on

3434.36

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PROFITABILITY & DIVIDEND DISTRIBUTION Profitability is a measure of efficiency and the search for it provides on incentives to achieve efficiency profitability also incentives to achieve efficiency profitability also indicates public acceptance of the product and shows that the firm can product and shows that the firm can produce competitively. The IR & IL has started to distribution dividend on e share from 1977 the progress can be studied from the following chart:-

YEAR 2001-2002 2002-2003 2005-2006 2006-2007

DIVIDEND 33 37.5 41.75 51.32

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IR & IL being a well dividend company serving with excellent success under Birla mgt excellent competition with turnover of 1990 to 2001 in credit 17.8 time approbation and profit increased day by day very progresses. Distribution of Dividend:Company has issued share capital is 44.94 crores each investor has invested in company with a view to earn a reasonable rate of dividend:-

CHART 1997 1998 2002 2003 2006 2007

DIVIDEND LINE 67.5 50 33 37.5 41.75 51.32

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RIGHT ISSUE, RIGHT DEBENTURE ISSUE, BONUS ISSUE Right Issue:IR & IL issued share and debenture to the public, this department deals with share and debentures by dealing all the matters regarding to the same as a application allotment, transfer, share certificate, board meeting and general meeting etc. Right debenture issue:Right issue means an issue, which gives the right to share holder to purchase a share on a fixed proportion prior to other. In 1986, 42500 debentures were offered to resident equity share holder on the basic on right debentures per every two equity share holder its aim was to contribute towards long term working condition needs before 6 years. Company issued convertible and non-convertible debentures to receive for cash, so debenture party returned.

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Bonus Issue:Bonus was issued in 1980 in the prop oration of 1:4 to existing share holder; during the year under review, company issued 2336979 crores equity share as bonus shares on 15th October, 2003 in the record of one bonus share to every two share held on the record date fixed for thus purpose, the bonus share are for full dividend for the year under review, consequent to bonus issue, company issued and paid up equity share capital stand enhanced to 59.88 crores.

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FUTURE PLAN finishing. Development of yarn. Development or improved design roller guide Development of carbonic softener for soft

for spinning machines. Development of wastewater recycles system. Development of microfilament yarn/trifocal

yarn and flat yarn etc.

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ACHIEVEMENT National safety award in 1934, 1987, 1990,

1991, 1994, 1998 & 1999. National safety award for the longest accident

free period in 1987, 1989, 1991. 1987 & 1993. First Rayon manufacturing 10-meter rayon to Staff safety award received for award during

get ISO 14001 & ISO 9002 certificate. National energy conversion for VFY from

ministry of textile.

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CONCLUSION IR & IL is a heavy industries having sound facility of manpower, finance, machineries and organization. Company has well established marketing and personnel department and the financial condition. At least, I would like to give my best wishes to the company and company may have splendid success and glorious achievement.

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BIBLIOGRAPHY PRODUCTION MANAGEMENT:CHUNAWALA PATEL FINANCE MANAGEMENT:KHAN AND JAIN PERSONNEL MANAGEMENT:C. B. MEMORIA ANNUAL REPORTS:2006-2007 WEB-SITE:www.adityabirla.com www.adityabirlanuvo.co.in

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