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AARTI INDUSTRIES LIMITED

A
SUMMER TRAINING
&
PROJECT REPORT
ON

HUMAN RESOURCE AUDITING


FOR

AARTI INDUSTRIES LIMITED


In the partial fulfillment of the requirement for M.B.A
(Full Time)
Submitted By

SHARMA PRAGATI SUSHIL


(M.B.A.) DIV A
ROLL NO 50
Submitted To

PROF. JAYSHRI TAYLOR (Internal Guide)


MR. KIRIT SASHTRI (External Guide)

G.I.D.C. RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES,


GRIMS, Vapi

AFFILIATED WITH
VEER NARMADA SOUTH GUJARAT UNIVERSITY, SURAT

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

ACADEMIC YEAR 2007-08

DECLARATION
I, SHARMA PRAGATI SUSHIL hereby declare that the report on summer
training and project work entitled HUMAN RESOURCE AUDITING
submitted to GIDC Rajju Shroff Rofel Institute of Management Studies is a
result of my own work and my gratitude to other work publications if any, have
been duly acknowledged.

PLACE: VAPI
DATE:

PRAGATI SHARMA

SHARMA PRAGATI

AARTI INDUSTRIES LIMITED

ACKNOWLEDGEMENT
Turning aspirations into realities is easier when quality people are support of
ones efforts
I greatly concede the help provided by the company and the people working for
providing the much valuable information and also extend my thanks for the support
throughout the project report.
I am also thankful and acknowledge my depth gratitude to my teachers and the
director of GRIMS Dr. S.S.SHAH for his constant encouragement and direction in the
completion of this project report. I am obliged to him and express gratitude to him
for giving me a great opportunity for the preparation of the project report.
I would like to express my heartful of gratefulness to Mr. Kirit Shastri for having
given me this opportunity to do a project in this esteemed organization.
I am also thankful and concede my depth of gratitude to my professor guide
Mrs Jayshri Taylor for her constant encouragement and supervision in the
completion of this training and the project.

PRAGATI SHARMA

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

CERTIFICATE

This is to certify that Ms. PRAGATI SHARMA has satisfactorily completed the work
entitled, SUMMER TRAINING PROJECT specialization topic HUMAN RESOURCE
AUDITING. Based on the declaration made by the candidate and my association as a
guide for carrying out this work, I recommended this project report for evaluation as a
part of the MBA Programme of Veer Narmad South Gujarat University.

Date: 09/08/2007
Place: Vapi

___________________
(Guided By: JAYSHRI TAYLOR)

__________________
(Director)
Dr. R. S. shah

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

EXECUTIVE SUMMARY
The summer training report contains the detail of employees of AIL about their
living status and other problem faced by there in there day to day life.

Than what is CSR a small idea about that by theoretical as well as from
companies point of view.
The report starts with introduction of the Indian Chemical Industry with the
history of the AARTI INDUSTRIES LIMITES. The goals, mission and vision are also
added.
Than what is CSR a small idea about that by theoretical as well as from
companies point of view.
The finance department is covered every necessary information. The marketing
department of the company was in Mumbai so we were not able to get complete
information about the marketing department of the company.
The production department has in it all the production details with the
production process and the ETP plant which is situated in the company and owned
by the company.
The specialization project undertaken was in accordance to the Human
Resource Department of the organization to know the working of the department in
organization.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The Human Resource Auditing was basically done to know the working,
systems policies and the procedures that are prevailing in the department of the
organization.

The methodology adopted for the completion of the project was to approach
the Human Resource manager with a set of questionnaire.
The data gathered shows that the AARTI INDUSTRIES LIMITED is having a
good human resource department.
The report contains the introduction of the Auditing. What does Audit contains?
Why should Auditing be conducted?
The analysis is done with the help of the questions asked and the response
from the Human Resource Manager of the AIL.
Then the findings are being shown. Lastly the suggestions are given to the
company after the interpretation of the response of the Human Resource Manager.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

INDEX
PART 1 (ALL DEPARTMENT)
SR. NO

TOPIC

PAGE NO

THE STRUCTURE OF THE CHEMICAL INDUSTRY

1-2

AARTI INDUSTRIES LIMITED


CORPORATE INFORMATION
INTRODUCTION
THE COMPETITIVE ADVANTAGE OF
AARTI INDUSTREIS LIMITED

3-15
3-5
6-10
11

HUMAN RESOURCE DEPARTMENT


RECRUITMENT

16-60
19-24

PRAGATI SHARMA

SELECTION

25-27

PROMOTION AND TRANSFER

28-30

TRAINING AND DEVELOPMENT

31-32

REMUNERATION

33-38

PERFORMANCE APPRAISAL

42-45

MEDICLAIM POLICY

48-49

SOCIAL RESPONSIBILITY

50-60

AARTI INDUSTRIES LIMITED

(CSR)

56-60

FINANCE DEPARTMENT
INTRODUCTION

61-81
61-64

STRUCTURE OF FINANCE DEPARTMENT

65

BALANCE SHEET

70

PROFIT & LOSS A/C

71

RATIO ANALYSIS

72-76

SHAREHOLDING PATTERN

77-78

CHARTS

79-81

MARKETING DEPARTMENT
INTRODUCTION

SR. NO

STRUCTURE OF MARKETING
DEPARTMENT
THE HOLISTIC MARKETING APPROACH

TOPIC
THE MARKETING MIX
o PRODUCT
o PRICE
o PLACE
o PROMOTION
PACKAING, LABELLING, WARRANTIES
AND GUARANTEES.
THE DISTRIBUTION CHANNEL
MODE OF TRANSPORTATION

PRAGATI SHARMA

82-122
82-86
87
88-90
PAGE NO
94-114
95-103
104-107
108-113
114
115-120
121
122

AARTI INDUSTRIES LIMITED

DESPATCH DEPARTMENT

123-125

PRODUCTION DEPARTMENT
INTRODUCTION
PLANT LAYOUT
PRODUCTION PROCESS
PRODUCTS
QUALITY CONTROL

126126-127
128-129
130-133
134-142
143-147

RESEARCH & DEVELOPMENT DEPARTMENT

148-149

STORES DEPARTMENT

10

PLANT UTILITY DEPARTMENT

151-153

11

HEALTH AND SAFETY


AARTI HEALTH CARE
SAFETY DEPARTMENT
SHE POLICY

154-156
155-156
157-165
166-168

12

PROCESS OF HANDLING HAZARIOUS CHEMS

169-170

13

MAINTENANCE DEPARTMENT

171-172

14

EFFLUENT TREATMENT PLANT

173-177

15

SWOT ANALYSIS

178-179

16

ANNEXURE

17

BIBLIOGRAPHY

AARTI
PRAGATI SHARMA

150

AARTI INDUSTRIES LIMITED

INDUSTRIES
LIMITED

THE RIGHT CHEMESTRY FOR


A BRIGHTER TOMORROW

THE STRUCTURE OF THE CHEMICAL INDUSTRY


In tune with the fast changing economic environment in the country, the Indian
chemical industry too is on a steady growth path. Indian chemical industries has a

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

strong and diversified base encompassing many areas such as organic and
inorganic chemicals, plastic, fibers, dye stuffs, paints, pesticides, insecticides,
speciality chemicals, drugs and pharmaceuticals. The growth in this sector has
constantly been increasing than the average growth rate of the manufacturing
sector in India.
The chemical industry is sometimes referred to as the "keystone" industry
because of the way the rest of the manufacturing sector relies on chemicals.
Chemicals are nearly a $1.5 trillion global enterprise, and the U.S. chemical industry
is the world's largest producer. The chemical industry is also the second largest
consumer of energy in manufacturing and spends over $5 billion annually on
pollution abatement. Chemical industry has 21% of total energy consumption.
The Indian economy is firmly on the path of the steady growth. Even during the
last decade when the other countries were in the grip of the massive slowdown,
India continued to enjoy a comfortable position. This recent spurt in the growth is
propelled by radical reforms such as the removal of the restrictions on foreign
investment and industrial delicensing. With substantial increase in the domestic
Gross Domestic Product (GDP) rate; the growth is also translated into increasing
the demand in the domestic sector in various chemicals. Simultaneously the
chemicals sector also shows growth in export.

THE INDIAN CHEMICAL INDUSTRY SIZE US $ 28 BILLION

Chemical Industry is an important constituent of the Indian economy.

Its size is estimated at around US $ 28 billion approx, which is equivalent


to about 7% of Indias GDP.

In terms of volume, it is 12th largest in the world, and 3rd largest in Asia.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Within India, it constitutes about 15% of manufacturing capacity and 20%


of the Excise revenue to the Government of India.

Chemical industry has weight age of about 13% in the index of industrial
production.

The global chemical industry is valued at about US $ 1.7 trillion. Of


which, Indias chemical sector accounts for just 2%.

{The Indian chemical industry is the 12th largest in the World and 3rd largest in
Asia. The Indian chemical industry constitutes 12.5% of the countrys industrial
production and 15%of the manufacturing capacity of India. Also the chemical
industry constitutes 6.7% to Indias GDP.}

Indias Chemical Industry Export

Indias chemical exports have recorded growth rate of 9%.

For the year 2001-02, the chemical industry accounted for more than
16.20% of the total Indian exports.

For the year 2001-2002 exports of all chemicals and allied products were
US $ 4684 million.

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AARTI INDUSTRIES LIMITED

CORPORATE INFORMATION
Name of the Company :
AARTI INDUSTRIES LIMITED
Type of Company:
Public Limited

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AARTI INDUSTRIES LIMITED

Established Year :
1984
Size of Company:
Large Scale
Plants :

Plot no. 801,801/23,


802,803/1-2-3, GIDC,
Phase 3, Vapi-396195

Plot no. 902, GIDC ESTATE,


PHASE 2, VAPI-396195,
DIST: VALSAD, GUJARAT.

Plot no. 752-753-754


SARIGAM, TAL: UMARGOAN,
DIST: VALSAD, GUJARAT

Plot no.758/1, 758/2,


GIDC ESTATE JHAGADIA,
DIST: BHARUCH, GUJARAT

Plot no. K-18, MIDC,


TARAPUR,
DIST: THANE, MAHARASHTRA.

Plot no. E-50, MIDC,


TARAPUR,
DIST: THANE,

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AARTI INDUSTRIES LIMITED

REGISTERED OFFICE: Plot no.801, 801/23


GIDC ESTATE, PHASE-3,
VAPI-396195, VALSAD
CORPORATE OFFICE : Udyog Kshetra,
2nd floor, L.B.S.Marg,
Mulund-Goregaon Link Road,
Mulund (W), Mumbai-400 080

Man-Power Force
Board of Directors
Chandrakant V. Gogri
Rajendra V. Gogri
Shantilal T. Shah
Independent Directors :
Ramdas M. Gandhi
Laxmichand K. Jain
Vijay H. Patil
Haresh K. Chheda
Whole-time Directors :
Parimal H. Desai
Manoj M. Chheda
Rashesh C.Gogri
Hetal Gogri Gala
Kirit R. Mehta

Company Secretary
Mohan P. Sonar

PRAGATI SHARMA

Chairman
Vice-Chairman & Managing Director
Vice-Chairman

AARTI INDUSTRIES LIMITED

Auditors
M/s. Parikh Joshi & Kothare,
49/2341, M.H.B.Colony,
Gandhi Nagar, Bandra (East), Mumbai-400 051
Registar & Transfer Agent :
Sharpro Services (India) Pvt.Ltd.,
Satam Estate, 3rd floor, above Bank of Baroda,
Cardinal Gracious Road, Chakala,
Andheri (E), Mumbai-400 099
Bankers:

PRAGATI SHARMA

Bank of Baroda
Union Bank of India
State Bank of India
ABN Amro Bank
Standard Chartered Bank
HDFC Bank Ltd.
Export-Import Bank of India
IDBI Bank Ltd.
City Bank N.A.
UTI Bank Ltd.
ICICI BANK LTD

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AARTI INDUSTRIES LIMITED


In the business world, the only constant is change. Paradigms are remodelled,
visions and business strategies modified, and technologies upgraded in response
to the needs and challenges of a changing world. In other words, organizations have
to change to survive, to remain competitive and to succeed. AARTI INDUSTRIES
LIMITED (AIL) is a dynamic organization, continuously investing in innovative
products and processes, as well as cleaner technologies, to meet shareholder
aspirations and societal expectations.
AARTI was started in the year 1984. The first unit of AARTI group, ALCHEMIE
LABORATORIES, commenced commercial production of DIMETHYL SULPHATE
(DMS) in the year 1975. Today, AARTI has acquired world-class expertise in the
development and manufacturing of basic bulk chemicals, dyes & pigment
intermediates, pharmaceuticals & agrochemicals along with their intermediates,
rubber chemicals, surfactant intermediates and speciality chemicals. AARTI is
amongst the largest producers of Benzene based basic and intermediate chemicals in
India
At AIL, they believe that the pursuit of corporate goals and commitment to
social responsibilities have to go hand in hand. So, while the AIL are one of the
largest producers of benzene-based intermediates in India and are ranked among
the top five producers in the world, the AIL is also an organization alive to their
responsibilities as a good corporate citizen. The people at AIL believe that high
standards of business conduct are integral to earning the trust and respect of
stakeholders and therefore have zero tolerance towards unethical behaviour or
corruption in any of their business dealings.

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AARTI INDUSTRIES LIMITED

AIL is a multi-product, multi-location company manufacturing over 125


products at global-scale. AARTI has manufacturing sites at Gujarat, India (Vapi,
Sarigam & Jhagadia) and at Maharashtra, India (Tarapur & Dombivli). The Tarapur
facility of AILs API division.
AARTI has attained a total turnover of US $ 189 million in the year April 2003March 2004 with flagship companies AARTI INDUSTRIES LIMITED (AIL) &
AARTI DRUGS LIMITED (ADL) listed on Stock Exchanges. AARTI has a
Subsidiary AARTI HEALTHCARE LIMITED (AHCL), which is engaged in
manufacturing of Active

pharma ingredients ranging from Ace

Inhibitors,

Broncodialators to Steroids.Recognizing the importance of research, AARTI has


established three full-fledged DSIR (Dept. of Scientific & Industrial Research)Government of India recognized R & D centers, which carry innovative product and
process development work.
AARTI INDUSTRIES LTD. is an ISO 9002/GMP certified organization and a
flagship company of the USD 259 million strong Aarti Group. AARTI has the
privilege of catering to the requirements of leading manufacturers of dyes,
pigments, pharmaceuticals, agrochemicals and rubber chemicals in countries such
as USA, UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China,
Russia, etc. AARTI also has representatives in USA & a subsidiary company in UK
to provide better services to its Export Customer.
For the people at AIL, sustainable growth is not an end-point, but an ongoing
process and a life-time commitment. The dedication of AARTI INDUSTRIES
LIMITED to the principles of sustainability is best encapsulated in their company's
motto - "The right chemistry for a better tomorrow". A better tomorrow for our
children and future generation.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AIL will always be a socially responsible company. The company AIL always
value the active involvement of their people their mission of achieving sustainable
growth. The company also thanks all of their shareholders, customers, business
partners, as also the media, financial institutions, industrial associations, NGOs,
government organizations, neighbouring industries and local communities for
placing their trust in the company i.e. The AARTI INDUSTRIES LIMITED and
being a part of this exciting journey of sustainable growth. At AIL, a sharp focus on
the three main constituents of the "Triple Bottom Line"- economy, society, and
environment guides their activities towards greater sustainability. AARTI
INDUSTRIES commitment to corporate social responsibility is corroborated by the
companys emphasis on creating a performance-based ambience for their people,
their respect for human rights and labour welfare, their commitment to high ethical
standards, their initiatives in the areas of health, education and environment
preservation, and their endeavors to create value for the companys stakeholders.

Over the last two decades, we have acquired world-class expertise in the
development and manufacturing of basic bulk chemicals, dyes & pigment
intermediates, pharmaceuticals & agrochemicals along with their intermediates,
rubber chemicals, surfactant intermediates and speciality chemicals. AILs API
division, Aarti Healthcare, makes high-value lifestyle APIs which are used in
manufacturing cardiovascular, antiasthmatic, anti-cancer, anti-thalassaemic, antihypertensive and anti-depressant drugs Exports account for over 40% of our total
sales. At present, AIL export to more than 40 countries worldwide including USA,
UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China and Russia.
Over 60% of AILs exports are to developed countries, with more than 40% going to
the EU.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

GOALS
AARTI group is strategically placed to exploit growth opportunities in the
Chemical Industry. In view of its technical expertise and broad base satisfied
clientele in India and abroad, AARTI is looking for global partners and strategic
alliances in areas of mutual interest viz.

Development of International markets for AARTI's products.

Toll manufacturing.

Transfer of Technology / Technical know-how.

VISION STATEMENT
We will be a world-class organization that enhanced value to our customers
and other shareholders by
o

Caring for employee to work as motivated terms in open and learning


environment.

Setting challenge new standards of performance.

Focusing on total quality, innovation and responsible care towards the


environment.

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AARTI INDUSTRIES LIMITED

MISSION STATEMENT
We are in the problem of manufacture and supply of crop production and
specialty chemicals worldwide providing solutions to optimize farm productivity for
the Indian farmer through out innovate and cost effective product to provide the
customer, better value of money.
Exceed

the expectations of our valuable customer for quality of products

and services.
Strive

to make continuous important and bring excellence in productivity,

safety, environment and hygiene in all the area of operation.


Emphasize

on appropriate training to all the employees and be open to all

their suggestions through team participation.


Strive

to

make

organization.

PRAGATI SHARMA

AARTI

INDUSTRIES

LIMITED

of

world-class

AARTI INDUSTRIES LIMITED

THE COMPETITIVE ADVANTAGE OF AARTI


INDUSTREIS LIMITED

The AARTI INDUSTRIES LIMITED (AIL) considers that their R&D is


quite good which helps the industry in gaining the advantage compared
to their competitors.

The people in the AILs R&D department keep on doing the research
work continuously which helps them in gaining more advantage than that
of their competitors i.e. reduction of the cost or increasing the quality of
the product that are to be served to theirs customers.

POSITION OF AARTI INDUSTRIES LIMITED (AIL)


The manufacturing units of the AIL are of global scale and are mostly in the
States of Gujarat and Maharashtra. Both the units are ISO / GMP certified. The plants
are highly incorporated along with Cost-Efficient Manufacturing Process and Low
capital investment and manufacturing more than 100 products. The AARTI
INDUSTRIES LIMITED is ranked amongst top 5 Global manufacturers for their key
product and their continuous R&D support and process improvement is the key for
Company to remain competitive globally.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SOME KEY FACTS ABOUT AIL


AARTI INDUSTRIES LIMITED is one of the largest producers of benzenebased basic and intermediate chemicals in India and among the top five
globally.

AARTI INDUSTRIES LIMITED one of the top three producers of Dimethyl


Sulphate in the world.

The AARTI INDUSTRIES LIMITED has a fully backward integrated plant for
Dimethyl Sulphate, i.e., starting from Sulphur and Methanol.

AIL Rs.500 crore company manufacturing Organic chemical and Intermediates


for Vapi unit.
AIL derives about 90 per cent of its revenues from specialty and basic
chemicals.

Through its backward integration manufacturing, AARTI

INDUSTRIES

LIMITED acquires the competitive advantage with respect to the availability


of raw materials and reduced cost.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AIL has the largest installed capacity of chloro-benzene (ONBC and PNBC)
domestically.

The company is adding more fluorine based products in its portfolio.

The company has in recent times been focusing on specialty chemicals and
pharmaceuticals.

AARTI INDUSTRIES LIMITED doubled its sales turnover in the last four
years from Rs 345 crores in 2001-2002 to Rs 786 crores in 2005-2006 whereas
exports increased more than three times during that period from Rs 101
crores in 2001-2002 to Rs 342 crores in 2005-2006.

AARTI INDUSTRIES LIMITED carries out custom synthesis activities and


undertakes contract research & manufacturing.

AARTI INDUSTRIES LIMITED was been presented the star exporter award
for 2004-05 by "The Gujarat Dyestuffs Manufacturers' Association" for earning
the highest foreign exchange from direct export of self-manufactured dyes &

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

dyes intermediates. This was one of a biggest reward to the AARTI


INDUSTRIES LIMITED for their efficient effort.

General Rules and Regulation


These are the rules and regulations that the employees of

AARTI

INDUSTRIES LIMITED have to pursue stringently and the employees do follow all
these rules and regulations happily for the betterment of their lives as well as the
company.
The Employees cannot bring any kind of unnecessary resources like
matchboxes or cigarette, alcohol, tobacco, etc.
The employee after entering the premises of the AIL should always put on
his identity card with him.
During functioning hours the employees should not meander any where,
devoid of their work and wasting the time.
While entering and departing out of the AARTIs premises each and every
employee should make an entry by means of purchasing card from the
security office at the main gate of the AIL.
Any employee of AIL should not remain missing or absent without former
informing to his department head and P & A. Dept. unless and until the
explanation of absent is bad health or any urgency that might have
occurred.
Every employee should be dressed in uniform that has been provided to
them by the company while entering the premises of the AIL with the
safety shoes, apron and safety helmet as per pre instructed to them.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Companys shared value:


o Global capacities
o Customer Satisfaction
o Quality and logistics
o Continuous cost control
o High value addiction
o Diversified product range
o Loyal work force
o In-house recognized R & D Centers.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

ORGANIZATION CHART
Chairman
Junior Director
Vice President
Mkt. Manager

Director Work

Personal Manager

Excise Officer

Dep. Gen. Manager

Prod. Manager

Personal Assistant

G. M.

Mkt. Officer Maint. Dept. Production Dept. Q.C. Dept. Dispatch Dept. Safety Dept. Security Dept. DGM Official A/c
DGM Organic Div. Acid Div. DGM Dispatch Officer
Jun. Exe.
Technician

GM

GM

DGM

DGM

SDM
Dep. Manager

Worker

Chemist

PRAGATI SHARMA

Manager

SDM
Dep. Manager

Worker

Security Off.

Sen. Chemist Dispatch Assist. Safety Off.

Sen. Manager Sen. Manager Lab Assistant


Manager

G. M.

Safety Asst.
Engineer
Supervisor

Worker

Fin. Exe A/c Asst.

Security Asst.
Supervisor

Security Guard Gun Man

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

HUMAN RESOURCE DEPARTMENT


Human Resource Management is that management which is related with
decisions relating to planning organizing, directing and controlling of the
procurement,

development,

compensation,

integration,

maintenance

and

separations of human resources to the end that individual, organization and


sociality objectives are accomplished. And the same is done in the AIL. The
objective of the AARTI INDUSTRIES LIMITED is the maintenance of those
relationships on the basis of which organization can get maximum personal
contribution from employees.
As we all know that work of the Human Resource Department is of acquiring,
retaining and maintaining the manpower. The same is in the case of the AARTI
INDUSRTRIES LIMITED the organization tries its best to procure maintain and
retain their employees in their organization.
The Human Resource is important to any labour or capital intensive industries.
So they should place an important position to an industry. The AARTI
INDUSTRIES LIMITED regular undertakes the training activities and other HR
initiatives. As the AIL does work for the societies, it also thinks about its
employees. The company has also continued its scheme for assistance to
employees with a view to ensure that their basic housing needs are fulfilled. The
company has been continuously focusing. On people and processes those to
encourage and realize their full potential through continuous on job learning and
through other HRD initiatives coordinal and harmonious relation with employees
continued to prevail through the year under assess.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

As it is aptly said that Human Resource is an asset for any organization for the
success of any organization human resource play a significant role. If any
companys Human Resource is not up to the mark or efficient then it affects the
performance of an organization.
Each and every department is linked with another department. One department
forms a stair for the other department in the same way the Human Resource play a
vital role in each and every department whether it is finance department, marketing
department, production/operation department, R & D department or any other. The
manpower must be efficiently employed to get an effective result.

Functions of Human Resource Manager:


The following are main function of human resource manger in AARTI
INDUSTRIES LIMITED:
Application and control of company rules and organization policy.
Recruitment of manpower intended by HOD and approved by management
and top head.
Employee and trainees induction programmed arrangement.
Development of trainees by training and approvals
Transport arrangement for required by employees, guests & customer.
Booking and reservation as required by employees / guests.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Safety of company material and employees.


Maintenance of first aid material.
Canteen administration
Assistance of meeting and conference
Company occasions arrangements like annual day, Picnic.
Labor welfare activities as decided by management.
Arrangement of uniform, shoes, seasonal wear, safety equipment.
House keeping of company premises.
Casual labor arrangement
Building maintenance and office maintenance
Public relation activities.
Salary wages and perks administration works and recorded keeping.
Telecom related activities
Appraisal assistant of employee for increments , training, promotions
Factory Act related activities
Stationary planning and arrangement.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

RECRUITMENT
Recruitment in simple terms is searching for capable applicants for the job.
Recruitment is attracting and obtaining the eligible candidates so that the right
people are selected for the job.
Recruiting of the individuals or the recruitment process is one of the most vital
and complicated part of an organization. If any error is made in the recruitment
process, then in a straight way it could be seen in the work performance of the
employees and the profits of the company as a single mistake will have an effect on
the result of the organization. As AARTI INDUSTRIES LIMITED is producing
some of the hazardous chemical so for them man power recruitment process is
hard-hitting job.
Recruitment is the generating of the application of applicants for specific
position through many of the sources from them the three common sources are the
advertisement, state employee exchange agencies or a private employment.
According to AARTI INDUSTRIES LIMITED they formulate a selection policy,
due consideration is to be given to organizational requirement as well as technical
and

professional

dimension

of

selection

procedure

adopted

by

AARTI

INDUSTRIES LIMITED and that it is tailor made to meet its particular needs.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The thoroughness of the procedure depends upon three factors.

Nature of selection.

Policy of the company.

The length of the probability period or trial period.

The company has also continued their schemes for assistance to employees
with a view to ensure that there basic housing needs are fulfilled. The company has
been continuously focusing. So they should place an important position to
industries. The AIL company regular undertakes the training activities and other
Human Resource initiatives. The Human Resource is important not only to any labor
intensive but to the capital intensive industries also. On people and processes
those to encourage and realize their full potential through continuous on job
learning and through other HRD initiative cordial and harmonious relation with
employee continued to prevail through the year under review.
Human Resource plays a vital role in each and every department whether it is
finance department, marketing department, production/operation department, R&D
department or any other. In an organization the manpower must be efficiently used
to make out the best from them. Human Resource is asset for any organization for
the success of any organization. Human Resource plays an important role. If any
companys Human Resource is not a standard or not efficient then it affects the
performance of an organization.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Source of Recruitment:
The sources that are used for the recruitment purpose in AARTI INDUSTRIES
LIMITED are as follows:

Internal sources

Transfer

Promotion

External sources

Advertisement

Educational institution

Labor contractors

Recruitment agencies.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

RECRUITMENT PROCEDURE:NEWSPAPER
APPLICATION

RECEIVING
APPLICATION

SORTING
OUT
APPLICATION
WRITTEN TEST
INTERVIEW
SORT TEST
FINALIZE
INTERVIEW
II INTERVIEW
OFFER LETTER
OFFER
LETTER

JOINING THE
ORGANIZATION

JOINING THE
ORGANIZATION
APPOINTMENT
LETTER
APPOINTMENT
LETTER

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

THE RECRUITMENT PROCESS


The process of recruitment can be explained as under:

NEWSPAPER APPLICATION:
Very firstly the AIL gives the advertisement in the newspaper so that the
applicants are attracted towards the advertisement and they apply in the company
for the required post. In that newspaper advertisement the AIL gives the required
qualification for the post. So that the applicants who are that qualified and capable
only they apply for the job.

RECEIVING APPLICATION:
After the advertisement placed in the newspapers the AIL receives the
application forms of those candidates who are willing for the job.

SORTING OUT APPLICATIONS:


After the applications being received by the AIL, they do the work of sorting
out the applications. A panel is selected and those people in the panel do the work
of sorting the received applications and then according to those panel members the
candidates who are capable to go a step further i.e. for the interview are being
selecte.
Before the interview the AIL goes for a test for the candidates which is a
written test in which the candidates are given a questionnaire in which the AIL ask
few questions which has to be answered in a written form. After the test the answers
are gone through and then the candidates whose answers are found to be
interesting are further being called out for the interview.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

INTERVIEW:
Then the interview is held. Some employees of the AIL from the executive level
are being selected so that those people carry out the interview without any
biasness. In the interview the employees of the AIL carries on with the question
answer sessions. By this interview the panel gets a clear picture of which people are
competent for the job and can go for the further process of the recruitment .

FINALIZE:
Finally the applicant who is found to be competent enough by the panel is
being finalized after the finalization the employee is asked to go under a physical
checkup under the doctors and submit the report in the AIL.

OFFER OR APPOINTMENT LETTER:


After all the procedures are completed and a clear chit given by the doctors the
employees are being given an offer or an appointment letter to join the organization
the candidate.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SELECTION PROCEDURE
APPLICATION
FORM

INTERVIEW

PHYSICAL
EXAMINATION

REFERENCE

FINAL APPROVAL

EMPLOYMENT

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

THE SELECTION PROCESS


The selection is the process of making a choice or deciding on individuals from
among many. The selection process is of selecting a well deserving, capable and
competent candidate for the given job. The selection can be from within the
organization as well as fresh candidate. If the filling of the job is to be done
internally or from within the organization then it can be done by the promotion and
transfers of the employees but if the filling of the job is via externally then it can be
done through the recruitment and the selection procedure of the organization.

APPLICATION FORM:
The application form is given to the candidates and that the candidates are
asked to fill them. The AIL is very much careful while going on with the selection
process. The AIL not only selects the people from the external source but also from
the internal source.

INTERVIEW:
The AARTI INDUSTRIES LIMITED after the receiving of the application form
from the candidates the company goes for the interview. In the interview the AARTI
INDUSTRIES LIMITED top level management sees to it that the process is carried
out very properly and that the candidates are selected on the basis of their
experience, compatibility, competence, and qualifications. The AIL keeps in mind
that the candidates selected are experienced and that this is the most important
criteria the AIL look at before selecting any of the candidates for their company.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PHYSICAL EXAMINATION:
The company after going on with the interview process some slot of candidates
are selected and also that the selected candidates are being asked to go for the
physical checkup as the physical checkup may help the AIL to know whether the
candidates are completely healthy or not. The candidates are asked to submit a
report of their fitness in the organization and then the further decisions are being
taken by the organization. As the physical checkup may help the AIL to avoid future
problems.

REFERENCE CHECK:
After the company carries out with the physical checkup of the selected
employees, the company cross checks the reference. For a company reference
check is one of the important criteria while selecting the candidate or while giving
the employment to the applicant.

FINAL APPROVAL:
After the reference check is been completed the next step is to give approval to
that candidate who has completely satisfied the AARTI INDUSTRIES LIMITED
requirement of an employee.

EMPLOYMENT:
After the company has completed all their procedures now is the time to give
the employment to the candidates who are selected by the organization for their
company.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PROMOTION AND TRANSFER


PROMOTION
AARTI INDUSTRIES LIMITED gives progression to its employees with
enhanced pay, position and employment responsibility all the way through
encouragement by promoting them as per the responsibility and the work done by
the employees as one of the best way of expressing the employees excellent work is
by promotion or by increasing the employees remunerations.

PROMOTION CRITERIA
The AARTI INDUSTRIES LIMITED has a promotion policy that, the
promotion to the employees is given on the basis of seniority. AARTI INDUSTRIES
LIMITED has resolute to give promotion after every two years of the working period
of the employees. If an employee is not satisfied of the post he has, the employee is
then sent back to his position for the duration of his promotion period. As per their
resolution the AIL gives promotion to its employees by the way of their seniority
which is 40% and out of 60%, 20% by the way of personal interview and 40% by
performance appraisal so that none of the employees feel that they are been
deceived by the company authority and the well deserved employee is being given
the promotion.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PROMOTION POLICY
AARTI INDUSTRIES LIMITED has espoused the promotion policy as per the
seniority as well as on the merit basis of the employees. The seniority of employee
is regarded grade wise as per character residence period on the particular grade.
Also the work done by the employees are given significance by the AIL.

TRANSFERS
As we all know that transfer is a cross shifting the employee as per the demand
or a requirement of the employee, causing a movement of an employee from his/her
one job, section, department shift, plant or position to another at some or another
place with that particular departmental salary status and responsibility, etc.
The Aarti Industries Limited follows a well define transfer policy to avoid
any grievances among the employees.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Periodic Transfer
In the AARTI INDUSTRIES LIMITED periodic type of transfers is mainly for
those departments whose regional areas and sales department are located abroad
or out the country. For that reason the marketing department is the only department
which has the periodic transfer present in it.
The AARTI INDUSTRIES LIMITED has a policy according to that policy the
marketing personals are transferred every four year, so they can come back to the
native state. There are no frequent transfers that exist n the company and they are
avoided in company as the AIL are being concerned of the adverse effects of
transfer on heir employees which is seen in the work of the employees.

Internal Transfer
The internal and the departmental transfer are mostly avoided in the AARTI
INDUSTRIES LIMITED.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

TRAINING AND DEVELOPMENT


Training in AARTI INDUSTRIES LIMITED is given to those people who are
newly employed in the company so as to make them familiar with the industry and
the working condition prevailing in the company.
The trainings that exist in AIL:o Induction training
o Health and safety
o Discipline
o TQM
o ISO 9000
o Management development
o To increase productivity.
o To improve quality.

Induction training:
The induction training is given to those of the new employees to make them
familiar with the company as well as the working of the organization.

Discipline:
The discipline refers to the rules and the regulations that prevail in the AARTI
INDUSTRIES LIMITED. As the employees enter in the organization they are
thought and made aware with those rules and regulations so that the employees do
not violate those rules and that the discipline is maintained in the organization
properly.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Health and safety:


The health and safety of the employees is of the utmost importance for the
company and for that purpose the AIL gives the employees the instruction for their
safety and the compulsory usage of the things which are used for the safety
purpose e.g. gumboots, caps etc. so that the accidents are avoided and health and
safety of people are more concentrated by the organization. So for that reason the
organization motivates the employees for the occupational health, safety and
environment, safety policy, philosophy, accident prevention techniques, safety
procedure etc.
The safety department conducts in plant safety training program on regular
basis.

Chemical emergency, prevention preparedness and response.

Importance and use of safety equipment (Explosive, oxygen, CL-2, HCN,


Monitors, SCBA, ESA, Fire Gas Tight Suit, First Aid-Box)

Total Quality Management: (improving quality)


Total Quality Management (TQM). The quality being the most important part of
the product and its selling so for that reason the employees are thought of the
quality management so that they understand the actual and good quality products
and they make a quality product. As the quality gives the clear picture of the
organization the AIL also believes in giving the bet quality products to their
employees.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

REMUNERATION
The remuneration that the AARTI INDUSTRIES LIMITED provides to each of
the employees is as follows

Salary:
The Board of Directors is to be provided with the Salary of Rs.85, 000/- per
month with power to make an annual increment area under discussion to a
maximum amount of Rs.1, 50,000/-per month in respect of salary and privilege up
to 100% of salary.

Commission:
In accumulation to the salary, the whole-time Directors of the AARTI
INDUSTRIES LIMITED shall also be entitled to be paid share in comprehensive
commission calculated at the rate of 1% of not profit of company computed under
section 349 of the companies act, 1956 payable to all company share of such
commission shall be payable after the annual accounts are adopted by the
shareholders.

Perquisites:
Apart from the salary and commission regularly paid, the whole-time
Director shall be permitted with the allowances:
o House rent allowance of Rs.15000/-per month.
o Bonus/ex-gratis: Rs.85000/-per annum.
o Compensation

of

Medical

Expenses

and/or

Medical

Insurance

premiums for self and family members as per companys policy.


o Personal Accident Insurance as Per Companys policy.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The power of modifying any issue i.e. increase or decrease the amount of the
salary or any other and amount of perquisites to be provided by the company
subject to a maximum ceiling of 100% of the salary of the whole-time Director will be
in the hand of the Board of Directors, Whole-time Director shall also be entitled to
following perquisites which shall not include in the computation of the ceiling on
remuneration specified here in:
o Contribution to Provident fund. Contributions to super annulations fund or
annuity fund as per the rules of the company. These will not be included in
the computation of the ceiling on perquisites to the extent these either
singly or put together are not taxable under the Income Tax, 1961.
o Gratuity payable at rate not beyond half a months salary for each
completed year of service end.
o Encashment of leave at the end of the tenure.
o Provision of car for business of the company and telephone at residence
shall not be treated as perquisites. Use of car for personal purpose and
personal long distance calls on telephone shall be billed by the company.

The Salary Payments


Salary is usually paid in the first week of every month. Salary officer prepare
covers with the name and personal code No., of employees and the pay slip along
with cash or cheque as per grade.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Mode of payment in cash or Bank Transfer

Staff-

Cash option or Bank Transfer

Officer- Usually Bank Transfer.

The structure of the wages and the salaries


The Human Resource Department also deals with wages and salary system.
For the AIL the happiness and contentment of the employees is the main concern,
which is reflected by the health wage and salary structure design in the company.
The AARTI INDUSTRIES LIMITED pursues the minimum wage rate policy that is
fixed by the Government.
The salaries are also determined by the minimum wage rate policy which is
set by the government.

The Salary Diminution


The time office keeps the documentation of staff employees reporting at duty
i.e. the time of entering and the time of leaving. If employees report late on job, in
that case the company cuts the salary of that particular employee. The salary
diminution rules as per the minutes that are delayed by the employee in reporting
themselves to their respective departments are as follows:
o If late by 16 min to 35 min

Pay of half hrs

o If late by 35 min to 45 min

Pay of 45 min

o If late by 46 min to 60 min

Pay of 1 hrs

o If late by 2 hrs. to 3 hrs

Pay of half days

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Enlightenment

:-

o For the purpose of this agreement, Family means the spouse, the
dependent children and dependent parents, if any, of the whole-time
Director.
o No sitting fee shall be payable to him for attending the meeting of the
Board of Directors or committee thereof.
o The other terms and condition of the agreement are such as are
customarily contained in agreement of similar nature.

The Compensation Packages


The compensation package includes:
Basic + Dearness Allowance + other financial pays like cash canteen
subsidies, washing allowance, shift allowance, contribution of provident fund,
gratuity, medical charges, personal pays, inconvenience allowance, chemical,
and hazardous allowance, etc.

Shift and Working Hours


Timing at AARTI INDUSTRIES LIMITED the shifts are as follows:

General shift 8:00 am to 5:00 pm on all working days.

Lunch time is from 12:00pm to 1:00 pm and 1:00 pm to 2:00 pm.

There are total 3 shifts in the company i.e. morning, evening, and night.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

(Production of AARTI INDUSTRIES LIMITED goes on non stop i.e. continue


round the clock.)

The Industrial Act.


The Industrial Acts that is applicable by Human Resource in the AARTI
INDUSTRIES LIMITED is as follows.
o Factorys Act, 1948,
o Industrial dispute Act, 1947,
o Minimum Wages Act, 1948,
o Employees provident funds and miscellaneous Act, 1942,
o Payment of Bonus Act,1965,
o Payment of gratitude Act, 1972,
o Payment of wages Act, 1936,
o The Worker mens compensation Act,1923,
o Apprentice Act,
o The employees State Insurance Act, 1948,
o Contract Labor Act,
o Payment of Gujarat labor welfare fund.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

FACILITIES PROVIDED TO THE WORKERS:


The workers in the AARTI INDUSTRIES LIMITED are considered as an
important part of the company and so the company sees that they provide their
workers with the sufficient amenities for the betterment of the workers of their
company.

Alter the work method so that there is a reduction in any of the possibilities
for straight handling of hazardous materials.

Provide prospect to the workers to talk among them while they are working
so that they can develop a healthy working relations among them.

Ensure the availability of a qualified person for the proper treatment the
workers and first aid equipment with all necessary ointments and medicines
for each kind of infection that may be caused in a chemical industry.

Performing of a regular fitness examination of the workers to notice whether


they are in shape and able-bodied without any illness and if any worker
found in such condition then provide them with ready contact treatment by a
physician or a nurse.

The company also tries to avoid the work of the workers which is in
separation or in a remote area of the unit so as to avoid any kind of mishap.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SCHEMES
The schemes provided by AARTI INDUSTRIES LIMITED to their employees:

EDUCATION SCHEME
The Scheme decided by the AARTI

INDUSTRIES

LIMITED for the

Scholarship for education to the children of all their employees. This scheme is for
those children who have top score in their academic year. The scheme decides
scholarship to the children on the basis of their merit.
The applicability of the scheme is that the scheme will be applicable to all
employees of the company and their children studying in STD. 5 th to 12th. This will be
free from any biasness from the AARTIs side. And the deserving child will be
getting the benefits of the scholarship scheme.
After the submission of the concluding result by the children of their academic
year to the specified personnel of AARTI the decisions will be taken. The results
will be clustered as per the academic standard & the child who has topped will be
sponsored for next year school fees. The approximate budget amount already set
and given to the child will be Rs.32000 /-P.A. (Eight students every year x4000/-fees
of each.)

VOLUNTARY RETIREMENT SCHEME


The Human Resource Department has also implemented a special type of
policy for the employees named as Voluntary Retirement scheme. Under this
scheme, if an employee is above 40 years of age and retire voluntary. He will be
entitled to get the minimum 4 month salary excluding the benefit for the remaining
years. And not many but only two employees have gone for this scheme.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

MILK SCHEME
At present AARTI INDUSTRIES LIMITED is giving milk coupons to all of its
employees except some service department that are excluded from the scheme.
Along with the milk coupons, AIL is giving tea allowance to all of its employees @
Rs.4/- per attend.

FUNERAL SCHEME
The scheme is such that Rs. 2500/- to be given to all the employees on behalf of
the society and AARTI INDUSTRIES LIMITED on expiry of any of the dependent
family member. Company will compensate the amount to society. This is a small way
to show the gratitude and the companys concern towards the employee and their
family.

WELFARE SCHEMES FOR EMPLOYEES


The AARTI INDUSTRIES LIMITED also provides some welfare schemes for
their employees so that they can help their employees in some or the other ways.

Med claim of employees,


Personal accident,
Employees D-link insurances scheme,
Group gratuity scheme,
School admission,
Housing admission,
Cycle loans,
L.I.C through salary.
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PERFORMANCE APPRAISAL
Performance Appraisal is the procedure of evaluating employees performance
of their employment in terms of their requirement for purpose of administration
including placement selection for promotion need for training, providing financial
rewards, etc. No firm has a choice as to whether it should or should not appraise
their employees. Just as training is required to be endowed after recruitment of the
employees, performance appraisal is also to be expected.
In

AARTI

INDUSTRIES

LIMITED,

Confidential

Method

is

used

for

performance appraisal of an employee. For the performance appraisal of the


employee, the superior or head of the department prepares questionnaires, which is
to be filled by their subordinates.

In this report the employee describes his

strength, weakness, attitude to work, intelligence, attendance work efficiency, etc.


With the help of this report, the top level can get the complete idea regarding the
employee and his performance in the company. He can take decision regarding
promotion, financial rewards, increments, etc. with the help of the information in the
report. Whatever is the relation of the superior- subordinate they both have to asses
each others performance with complete purity and without any biasness. The
assessment of the executive done by their subordinates and that of the
subordinates or the non-executive done by their executives will be again assessed
by the superiors.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

OBJECTIVE OF PERFORMANCE APPRAISAL


The objective of performance appraisal of the AARTI INDUSTRIES LIMITED
is as follows

o To determine increments and provide a reliable guide for promotion and


transfer to positive of greater responsibility.

o To suggest ways of improving the employees performance when he is not


found to be up to the mark during the review period.

o To maintain individual as well as group development by informing the


employee of his performance standard.
There are two types of appraisal program in the company.
o Form A for the executive and
o Form B for the non- executive
There is no such procedure of the appraisal but the employees are assessed
every at the end of every year. At the end of the year the performance appraisal
program is conducted to know the performance of the employees over whole period
under review. This review states that which employees who are efficient in their
work and needs promotion and that the employees who are incompetent and who
needs training to become effective in the work done by them .

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SELF-APPRAISAL
(To be filled by Appraises)
? What are the responsibilities of your job?
? What do you consider the key areas of your present job?
? In your view what are the major contributions/improvement made by you to the
organization during the period under review
? What are the areas where you could not achieve your desire goal? What were
the reasons?
? What would you consider as your important achievement, Contribution or
improvements in the next 3 month, 6 months & one year?
? What will be the action plan do you decided to achieve the target?
? In order to achieve the specified targets that help do you need from the
organization?
? Are there any intimate problems (Personal or Organizational) which are likely to
come in your way in achieving the enhanced target?
? What co-ordination problems have you faced with your colleagues, other
department, etc. in the organization? Your suggestions to improve the same.
? What steps you have taken to improve the performance of your from donates?
What do your propose to do in the next 3 to 6 months?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

? What training you had in last 12 months?


? Do you have any suggestion for improvement in our organization?
? Are you satisfied with your job, working condition and organization?
? Do you think you need any training, Please specify?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

LEAVE STRUCTURE
The leave structures of AARTI INDUSTRIES LIMITED are as follows.

PAID HOLIDAY :
The employees are permitted to take 8 holidays in a year which are considered
to be the paid holidays, which are declared by the management in the month of
January.

WEEKLY OFF :
If an employee is working in a different branch then for them the weekly off is
on Sunday. This is for the Vapi branch and other branches also except for an
employee who is working at the head office (Mumbai), the weekly off for them is on
Saturday and Sunday.

SICK LEAVE :
As per previously decided by the AARTI INDUSTRIES LIMITED for the
employees 9 days sick leave per annum are on hand and that it is credited on 1st
January every year during the first year of employment, however this leave benefit
will be available on pro-rate basis accumulated. Sick leave can be at the time of
retirement and death of personals only which can be up to a maximum of 72 days.

PRIVILEGE LEAVE :
Privilege leave is available @ 30 days per calendar years, which is credited @
2.5 leave per month for new management staff, @ 2.5 leave per month ID credited
after completion of one month.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

CASUAL LEAVE:
Also the casual leaves are decided by the AARTI INDUSTRIES LIMITED 9
days casual leave per annum is available per and it is credited every year on 1st
Jan during the first year of employment, however this leaves benefit will be
available on pro-rate basis. Since casual leave benefit cannot be carried to the
next year, at the end of the calendar year the outstanding leave balance will
automatically be encased and included in the salary of the subsequent month.

SPECIAL LEAVE:
The managing director under exceptional circumstances will have the prudence
to grant any additional leave, termed as special leave to individuals. Such leave
will normally be leave without pay, except it is for the benefit of the company.

OTHER LEAVES:
The other leaves are as follows they are the Maternity leave, leave after
resignation compensatory leave unauthorized absence etc.

MEDICLAIM POLICY
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The AARTI INDUSTRIES LIMITED is among those fine companies for whom
their employees mean a lot to them. The company always notices that all the
facilities are properly made available to their employees or not. The AIL not only
cares for their employees but also for their family.

The scheme is such that the reimbursement of hospitalization expenses of


the family member i.e. spouse children and dependent parents of the
employee will be given the medclaim policy according to the policy of the
AARTI INDUSTRIES LIMITED.

The eligibility of this scheme is for all those who are voluntarily interested
in this scheme and also for the permanent employees of the company who
are not covered under ESIC scheme of AARTI INDUSTRIES LIMITED.

The contribution for this scheme is monthly deduction of Rs. 20 per family
member and per month from the salary of the employees and the same
amount is to be contributed to the company.

The conditions on this policy are as follows:


Employee should notify the name and relation of the employee with the
family member for which medical scheme is to be applied.
All types of hospitalization expenses (i.e. medicine, expenses excluding
food and convenience) are eligible for reimbursement.
The proof of hospitalization should be cross checked i.e. the
hospitalization and medications bills only.
Reimbursement claim should be supported with doctors report and
hospitalization and medications statement or bills only.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The reimbursement or the Payment of entire amount alleged for the


parents mediclaim and any other will be paid after necessary enquiry
and confirmation of matter and documents.
The working of the department is that five members committee would be
formed among the employee for the scheme with sanction of majority,
for one year.

Out of the members of committee two personals are authorized to pay the
sum as per official mode. These members are having all the powers of
scrutinizing the matters and checking of documents before giving the
payment to employees.

All the contribution collected from employees as well as from company on


monthly basis is to be deposited in society in a separate bank account
maintained for the purpose. All the claims should be settled out of the
funds in decided bank account.

Nature of expenses and diseases should be modified as per consideration


of facts with the prior effects of six months from the date of amendments
done.

All the payments should be paid through cheque after authorization of all
the committee members.

Before finalizing the draft of the scheme, the scheme should be approved
by the senior HRD personal of the company.

SOCIAL RESPONSIBILITY
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AIL, Vapi seeks to fulfill its responsibility towards society through its CSR
activities which mainly cover the areas of health, education, housing, social &
cultural needs and disaster relief and can be broadly categorized into:

Labour & staff welfare

Community welfare

LABOUR & STAFF WELFARE


At AIL, the people believe in fostering an environment that promotes
innovation, rewards performance and provides opportunities to people for growth.
In addition, the company has a range of initiatives in place for attracting and
retaining a high performance work force. The AIL believes in taking care of its
people beyond the agreed terms. Some of their employee welfare programs are as
follows:
Medi-claim

insurance

policies

for

all

of

the

employees

of

AARTI

INDUSTRTIES LIMITED have been obtained covering even hospitalization. The


expenditure on this account has been round about Rs.7, 00,000 per annum.
Recognizing the need for proper housing for all, the Company has disbursed
housing loans to the tune of Rs.1 Crore for its junior staff. These loans are partly
non-repayable and partly interest-free, with long repayment schedules. This has
helped many of the AIL employees to build houses for their families. As of
September 30, 2006, outstanding housing loan dues amounted to Rs 76, 15,540.

Over the last three years, the AARTI INDUSTRIES LIMITED has contributed
around Rs 28, 00,000 to the Aarti Employees Co-operative Fund. AIL provides
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

monetary incentives to their employees to motivate them to opt for birth control and
also to cast their vote during local, Vidhan Sabha and Lok Sabha elections.
The Company also provides employees with:

Uniforms, safety shoes, rainy shoes, and raincoats;

Tea allowance, food allowance, and milk allowance;

Cycle and vehicle loans;

Marriage gifts, loans for pooja and festivals;

Financial assistance to cover disaster relief, funeral expenses,

and medical expenses including hospitalization for those not

Covered under the ESIS scheme.

EMPLOYEE WELFARE EXPENSES


Period Labour Welfare taff Welfare Total
Amount

PERIOD

LABOUR
WELFARE

STAFF WELFARE TOTAL


AMOUNT

2004 - 05

Rs 2415729

Rs 917578

Rs 3333307

2005 - 06

Rs 2758586

Rs 547001

Rs 3305587

COMMUNITY WELFARE
The AARTI INDUSTRIES LIMITED has adopted a village in Gujarat inhabited
by Other Backward Castes (OBCs) and another village in Kutch for rehabilitating
earthquake affected people.
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The aim of AIL is to extend their support to a variety of recipients so that as


many as possible can benefit from the companys financial contributions.

COMMUNITY WELFARE EXPENSES


Total donations in 2004

05: Rs 6,133,438

Total donations in 2005

06: Rs 13,023,500

From the scores of organizations the AIL have donated funds to, a few are
mentioned below:

EDUCATION AND RESEARCH RELATED:

Ashadham Seva Mandal

Hirji Bhojraj & Sons K.V.O. Jain Chhatralaya

Adivasi Education and Charitable Trust

Mumbai University Institute of Chemical Technology

Association for Research in Homeopathy

Rural Agro Research & Development Society

HEALTHCARE RELATED
Vishwas Hospital Trust
Shushrusha Charitable Trust
Bidada Sarvodaya Trust
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Tibetan Medical and Astro Institute


Hira-Mongi Navneet Hospital, Mulund
Parakh Hospital, Ghatkopar

SOCIAL WORK AND CULTURAL ACTIVITIES RELATED


Kalgad Sarvodaya Trust
Shri Wagad Sarvodaya Trust
Dhanvallabh Charitable Trust
Shri Vardhman Seva Sangh
Geetai Mission
Rovadan Trust
People's Trust
Child Relief and You (CRY) (working for underprivileged children)
Kutch Mahila Vikas Sanghatan (involved with social empowerment of
women)

Shri Mulund K.V.O. Samaj


Gandhi Labour Foundation
Lion's Club of Mulund
Giant's Group of Mandvi - Kutch
Gramin Vikas Samiti (involved with rural development)
Gram Swaraj Samiti (involved with rural development)

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Kutch Yuvak Sangh (working for the development of rural youth)


Ankleshwar Industrial Development Society
Vapi Punjabi Charitable Foundation

DISASTER RELIEF WORK RELATED

The Prime Minister's National Relief Fund (Tsunami relief)

The Gujarat Chief Minister's Relief Fund

Bhojay Sarvodaya Trust (Earthquake relief in Kashmir)

Kutch Navnirman Abhiyaan (Rehabilitation of earthquake affected people


in Kutch)

The village in KUTCH adopted by AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SUPPORTING
ECONOMIC
DEVELOPMENT IN VAPI

AND

INDUSTRIAL

At AIL, Vapi, they believe in actively co-operating with neighboring industries


to address common concerns and solve Business-related problems. The Director of
AIL, Mr. Kirit Mehta, is the President of the Vapi Industries Association (VIA).
He leads the association and takes the necessary initiative for getting basic
common facilities for the members. He also handles the task of making
representations to various bodies for problems related to roads, water supply,
electricity, pollution control, etc. that obstruct the smooth conducting of business.
Mr. Mehta is well respected for his contributions towards the development of the
chemical industries in Vapi.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

CORPORATE SOCIAL RESPONSIBILITY POLICY


(CSR)
At AIL, the Corporate Sustainability Department, consisting of a team of senior
management headed by the companys Managing Director, monitors the companys
CSR & sustainability strategies and their implementation. The department meets
regularly to review compliance with the company's CSR policy across the different
units and to take informed decisions on related key issues.

CORPORATE GOVERNANCE
At AIL, integrity, transparency and social responsibility form the core of their
corporate behaviour and characterize the way in which they interact with all those
who have a stake in the companys success and with the world at large. For AIL,
corporate governance is not a discipline imposed by a Regulator, but something
that stems from the culture of an organization. The principles of corporate
governance guide the companys Board of Directors, management and the AILs
people to create long term sustainable value for their stakeholders.
AIL's Board of Directors consists of a team of technocrats, engineers and
management graduates having rich experience of more than two decades in the
Industry. AILs 12-member Board of Directors has both Executive and Non-executive
Directors. The board also comprises of an environment consultant, a solicitor, an
advocate and a chartered accountant as Independent Directors.

The AIL has two Board committees - the Audit Committee and the Shareholders
Grievance Committee. The Board has laid down a Code of Conduct (posted on our
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

website (www.aartigroup.com) for all the directors and senior management of the
company.

AIL's Corporate Governance framework ensures:

Sound

corporate

practices

based

on

integrity,

transparency,

accountability, fairness and professionalism - values that are important


for sustained growth, increased efficiency and stakeholder confidence.

Timely flow of information to the Board and its committees.

A sound system of internal control and supervision of business


operations.

Commitment to good HR policies

Independent verification of the Company's financial, and CSR &


sustainability reporting

Timely disclosure of information to all our stakeholders

Compliance with applicable laws, guidelines and regulations

The people at AARTI INDUSTRIES LIMITED commit themselves to Corporate


Social Responsibility (CSR) by conducting their business activities ethically through
a fair and balanced approach, and by being socially responsible and responding to
legal, social & ethical issues arising from their commercial activities.

The people therefore pledge to work towards continual progress in the


following areas:

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Respecting their organization's philosophy and striving to be recognized


as a good and esteemed corporate citizen.

Complying with legal requirements, wherever they operate.

Developing and supplying useful & safe products and improving the
quality of their products and services to be able to contribute to the
progress of society.

Conducting business transactions based on fair and free competition.

Striving to make their workplace vibrant to become an employer of choice


and focusing on acquiring advanced professional skills & expertise in their
field of responsibility.

Protecting the environment, optimizing resource consumption and


ensuring the safety of their people.

Supporting human rights, and actively communicating with the companys


stakeholders to understand and respect their interests, thus serving and
contributing to their development.

Achieving sustained growth and profitability.

At AIL, the people shall strive to promote CSR activities to maintain a balanced
approach towards economic goals, safety, quality, the environment and the interests

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

of society, through an effective monitoring of the companys performance on key


issues covered by the CSR programme.
AARTI INDUSTRIES believe that these initiatives will help them achieve
sustainable development and be recognized as a responsible corporate citizen,
consequently enabling our company to emerge as a modern and global company.

STRATEGY FOR CSR


AARTI INDUSTRY has few strategies for embedding CSR & its sustainability
into their business activities.

The AILs strategies for integrating CSR &

sustainability into their management processes and day to day activities are based
on our core values and the principles of the UN Global Compact. The company
people are aware that by making CSR & sustainability an integral part of their
business strategy they will be able to protect the quality of the companys business
activities, their decision-making processes and their capacity to create value for
their own company and also their valuable stakeholders.
To reach out to AARTI INDUSTRY LIMITED employees, customers and
communities and show their concern for the environment, the AIL:
Emphasize that CSR is a shared responsibility for every member of the AIL
family.
Reward creativity and leadership skills and provide ample opportunities for
personal & professional growth.

Promote team spirit and learning of new skills.


Uphold human rights and the dignity of every employee.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Act promptly on matters related to the health and safety of their people.
Reduce operational costs through energy efficiency, recycling and
innovative use of by-products.
Focus on reducing our environmental footprint and greenhouse gas
emissions.
Invest in new technologies and produce innovative & sustainable products.
React proactively to customer needs.
Customize solutions to meet customer requirements.
Improve our financial performance to ensure better returns.
Conduct business with transparency and share vital information with
stakeholders.
Encourage our employees to actively participate in community development
activities.
Respect the rights and needs of the communities we operate in.
At AIL; they believe that these strategies will strengthen their platform for
growth.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

FINANCE DEPARTMENT
INTRODUCTION

Financial Management is concern with the efficient use of an important


economic resource, namely, Capital funds.

SCOPE FINANCE DEPARTMENT

In AARTI INDUSTRIES LIMITED the Finance Department deals with the


problems of rising funds and there effective utilization in the business. Various
decisions regarding:

Acquisition of assets.

Specific form of assets where money to be invested.

Composition of its liabilities.

Liabilities are covered under the scope of Finance Department. The three
functions covered all most all finance functions of an organization. And effect the
three major decisions they are:-

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

o Investment Division
o Finance Division
o Dividend Division

FINANCIAL FUNCTION

Find the cheapest source of finance.

Effective utilization of money.

Capital is raised through issue of shares, debentures; interoperate


deposits, financial, institutions, commercial papers, etc.

Negotiations with suppliers.

RESPONSIBILITIES OF FINANCE MANAGER


He keeps all the data related to finance and sees that the funds
organization is utilized in the most efficient manner.
He is the most important person in shaping the future of the company
and has a vital role in decision of the allocation of capital.

Nowadays finance manager solves important management

problem and his role is becoming pervasive and significant .

FUNCTIONS OF FINANCE DEPARTMENT AT AIL


Overhead payment like salary, wages etc.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Cash management.
Calculation of interest payment.
Preparing bank reconciliation statement
Payment like PF, income tax.
Maintaining accounting record.

In AARTI INDUSTRIES LIMITED Procure finance from the following Banks


and finance Institutions:
BANK OF BARODA
UNION BANK OF INDIA
STATE BANK OF INDIA
ICICI. ETC

Basis Of Acquiring Loans


Banks and institutions give loans on basis of net worth. (Net Worth =
Capital + Net Reserve)
ESP = profit / No. Of Shares (Earning Per Shares)
Current Ratio
Dept Equity Ratio

Dividend Of Shares

Board Of director decides the percentage of dividend.

Percentage of dividend depends on profit.

Dividend is not an expense but profit distribution.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Short term sources


I. Internal

Depreciation funds

Provision for taxation

Accrued expenses

II. External

Bank credit

Managing director or directors

When a company is going to prepare any new project the company has to
consider the following aspects.

cost of project
Means of finance
Financial highlights
Product and capacity
Sources of funds
Use of funds

Projected performance
Existing term loan commitments
Existing W.C. facilities
Proposed financial assets
Introduction of product
Company background
Technical aspects
Industry description
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Product description and demand supply position.

STRUCTURE:-

CHAIRMAN
CHAIRMAN

MANAGING
MANAGING
DIRECTOR
DIRECTOR

VICE
VICE
PRESIDNT
PRESIDNT

GENERAL
MANAGER

DEPUTY
GENERAL
MANAGER
PRAGATI SHARMA

ACCOUNT
OFFICER/
CASHER

AARTI INDUSTRIES LIMITED

FINANCE
EXECUTIVE

ACCOUNT
ASSISTANT

AARTI INDUSTRIES LIMITED had declared an interim dividend of 15%. The


directors of AIL now recommend a final dividend of 21% for the year ended 31st
march 2002. Total dividend for the year would thus be 36 % and the total dividend
payment would be Rs. 418 lakhs subject to declaration of final dividend at Annual
General Meeting.

ACCOUNTING DIVISION:
The books to be maintained in AARTI INDUSTRIES LIMITED are as follows:

Sales accounting

Purchasing accounting

Bank Transition

Cash Transition

Debit notes

Journal voucher

From the above all books, the only description of some books are given below.

RESPONSIBILITY OF FINANCE MANAGER

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

He keeps all the data related to finance and sees that the funds organization
is utilized in the most efficient manner.

He is the most important person in shaping the future of the company and
has a vital role in decision of the allocation of capital.

Nowadays finance manager solves important management problem and his


role becoming pervasive and significant.

SALES ACCOUNTING

Following is the sales procedure prevailing at the AARTI INDUSTRIES


LIMITED.
Marketing department gets purchase order through negotiation.
a. Indent is sent the dispatch section. Indent consist of terms of
payment, partys name, details regarding the goods rate, excise, sales
tax transaction, credit period discount (if applicable).
b. Dispatch section contract finish goods, stores so that they can supply
the necessary material.
c. Finished goods stores communication with excise department and
they carry on their necessary procedure.
d. Preparation of sales registers, ledger account, trail balance, etc. Sale
keeps management information system (MIS).
MIS contains information relating to receivable and sales-product wise and
quantity wise.

PRAGATI SHARMA

PURCHASE ACCOUNTING:

AARTI INDUSTRIES LIMITED

Flow and documents in purchase accounting is as follows:


Step 1

To receive all invoice from purchase department.

To receive all M.R.N. from stores department.

To receive all purchase order from purchase department .

Step 2

To match this document with each with each other.

To attach copy of P.O and MRN with invoices.

Step3

To process the invoice after comparing the same with MRN and PO.

To forward the document to senior manager for management check.

Step 4

Executive to hire second check to ensure correctness and accuracy.

To put his/her initials on the rubber stamp at the place market for the
purpose.

To forward the document to senior manager for management check.

Step 5

Senior manager to check the document from various angles to ensure


total control.

To put his/her initials on the rubber stamp at the place marked for the
purpose.

To forward the document to account assistant for data entry.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Note:Dispatch section on receiving the purchase order co-order with


production department so that the production can be on line with the demand of
the products.

BANK TRANSACTION
ACCOUNT:AARTIs major bankers are:

Bank of Baroda,

Punjab national bank,

Dena bank.

OPERATION

OF

BANK

Performs:
Maintenance of current account
Maintenance of cash credit account over draft facility.
Preparation of BRS (bank reconciliation statement) every month.

CASH BOOK
Performs:
Petty cash book which petty cashier operates.
Main cash book which dose main cashier operator.

Note:
According to the income tax act if the amount exceeds, rupees twenty
thousand then it must be paid by cheque.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

OTHER INFORMATION:
Corporate dividend tax means tax on dividend payable by the corporate.
Percentage of transfer to general reserve is based on criteria decided by
companys Act.
Deferred liability means liability, which is to be paid at later stage.

Rate of department according to income tax is different than that of


company act.

Department not the actual expense but hidden profit.

Balance sheet of AARTI INDUSTRIES LIMITED


As on 31st march 2005.
Liabilities
SHAREHOLDERS
FUND

Amounts

Assets

Amounts

FIXED ASSETS
Gross Block

Share capital

364047120

3772152761
Less: Depreciation

Equity share warrants


Reserves and Surplus

18456460

1476802108

2004085241 =Net Block

2295350653

Capital Work in progress

279752107

LOAN FUNDS
Secured loans
Unsecured loans

2883205497 INVESMENT

247421512

120956656

CURRENT ASSEST,
DEFERRED TAX
LIABILITY

LOANS AND ADVANCES


260207942

4282512765

LESS:
CURRENTLIABILITIES
AND PROVISIONS
1469337743

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Net Working Capital

2813175022

MISCELLANEOUS
EXPENDITURE
(To the extent not written off or
adjusted)
Pre-operative Expenses
Deferred Revenue Expenditure

TOTAL

PRAGATI SHARMA

5650958916 TOTAL

NIL
15259622

5650958916

AARTI INDUSTRIES LIMITED

Profit & Loss Account for the year ended 31st March, 2006
INCOME
Income from operation
other income
Increase in inventory

7,861,750,467
47,810,802
220,512,506

TOTAL

8,130,073,775

EXPENDITURE
Manufacturing Expenses
Purchase of Goods Traded In
Office and administration Expenses
Selling and Distribution Expenses
Interest and financial Charges
Non-Operating Expenses and losses

5,765,521,854
601,311,395
86,832,124
518,133,693
204,004,164
16,244,538

TOTAL

7,192,047,768

Profit Before Depreciation


Less: Depreciation
Profit Before Tax
Less:Provision for taxation(including fringe benefit tax)
Profit After Tax
Less: Provision for Deffered Tax
Profit After deffered Tax
Add: Balance of Profit and Loss Account Brought Forward
Add: Provision for Diminution in the value of InvestmentsQuoted
Less: Prior Years' adjustment for others

938,026,007
221,869,002
716,157,005
162,300,000
553,857,005
63,213,480
490,643,525
1,537,363,110

Less:Dividend
Less:Dividend
Less:Proposed Dividend
Less:Tax On Dividend

NIL
18,520,032
2,009,486,603
50,000,000
1,959,486,603
61,888,011
50,966,597
29,123,770
19,912,468

Balance Carried Forward To Balance Sheet

1,797,595,757

less:Transfer to General Resereve

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Earning Per Share

6.74

RATIO ANALYSIS
A Ratio is simply one number expressed in terms of another, it is an expression
of relationship spelt out by dividing one figure by another. The ratio analyses of the
AARTI INDUSTRIES LIMITED are as follows:

CURRENT RATIO:Current Ratio = Current Assets / Current Liabilities


2005

= 3,357,688,435 / 1,162,972,259

2006

= 4,282,512,765 / 1,469,337,743

=
=

2.887
2.914

INTERPRETATION:
A current ratio establishes the relationship between total current assets and
current liabilities. A current ratio of 2:1 is considered ideal as a rule of thumb. The
ratio of AIL is 2.914: 1, indicating a very comfortable liquid position.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Liquid Ratio:Liquid Ratio = Liquid Assets / Liquid Liabilities


Liquid Assets = current Assets stock
Liquid Liabilities = current Liabilities Bank overdraft
2005

= 3,357,688,435 950,823,968 / 1,162,972,259


= 2,406,864,467 / 1,162,972,259

2006

= 2.069

= 4,282,512,765 1,216,471,792 / 1,469,337,743


= 3,066,040,973 / 1,469,337,743

= 2.086

INTERPRETATION:
This ratio is establishes a relation between absolute liquid assets to liquid
liabilities. The ideal ratio is 2:1 and liquid ratio is 2.086:1. It is means the liquidity
position of the company is satisfactory.

Net profit Ratio:Net profit Ratio = Net profit *100 / Sales


2005= 472,267,814 *100 / 6,854,771,081 = 6.889
2006=553,857,005 *100 / 7,861,750,467 = 7.04

INTERPRETATION:
It expresses the relationship between net profit and sales. This ratio shows a
better profitability of the firm as compared to the whole industry. This suggests a
satisfactory position.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Return on capital employed:Return on capital employed = Net profit *100 / Share capital +
Reserves & Surplus + Long term loan
2005

= 472,267,814 *100 / 2,249,124,783


= 20.997
= 553,857,005 *100 / 3,004,162,153
= 18.436

2006

INTERPRETATION:
The standard return on capital employed is about 15%. Return on capital
employed ratio is 18.436%. These indicate the higher productivity of the capital
employed.

Debt Equity Ratio:Debt Equity Ratio = Long term debt / Shareholders fund
2005
2006

= 2,249,124,783 / 2,057,899,714
= 3,004,162,153 / 2,386,588,821

= 1.092
= 1.258

INTERPRETATION:
It expresses the relationship between debt and equity. The standard debt-equity
ratio is 2:1. It means for every 2 share there is 1 debt. The debt-equity ratio is
125.8%, this indicates that the states of long-term creditor are move and indicates
week financial structure.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Capital Turnover ratio:Capital Turnover ratio = Net sales / Total Capital Employed
2005

= 6,854,771,081 / 4,504,018,959

= 1.521

2006

= 7,861,750,467 / 5,650,958,916

= 1.391

Return on Share holders fund:Return on Share holders fund = Earning after tax *100 /
Share holders fund
2005

= 472,267,814 *100 / 2,057,899,714

=22.95%

2006

= 553,857,005 *100 / 2,386,588,821

=23.20%

Fixed Assets Turnover ratio:Fixed Assets Turnover ratio = Net sales / Net Block
2005

= 6,854,771,081 / 1,861,448,777

= 3.682

2006

= 7,861,750,467 / 2,295,350,653

= 3.425

INTERPRETATION:
The ratio establishes a relationship between the fixed assets and sales. The
standard fixed turnover ratio is 5 times. A high ratio indicates better utilization of
fixed assets. A low ratio indicated under utilization of fixed assets. So the
companys ratio indicates under-utilization of fixed assets.
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Net Working Capital Turnover Ratio:Net Working Capital Turnover Ratio = Net sales / Net Working Capital
2005

= 6,854,771,081 / 2,194,716,176

= 3.123

2006

= 7,861,750,467 / 2,813,175,022

= 2.794

INTERPRETATION:

The term working capital refers to excess of current assets over current
liabilities. This ratio establishes a relationship between working capital and sales.
This ratio enables to know efficient utilization of working capital of an organization.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Shareholding Pattern of AARTI INDUSTRIES LTD as On


31st March 2006
AUTHORIZED CAPITAL:9, 00, 00,000 Equity Shares of Rs. 5/- Each

ISSUED, SUBSCRIBED & PAID-UP:7, 28, 09,424 Equity Shares of Rs. 5/- Each fully paid up

MARKET PRICE DATA:-

Month

Bombay Stock Exchange

National Stock Exchange

High(Rs.) Low(Rs.) Volume

High(Rs.) Low(Rs.) Volume

Jan 2006

165.80

76.50

513468

165.90

78.55

1029720

Feb 2006

82.20

72.05

538856

82.25

73.50

579879

Mar 2006

85.00

73.00

1422548

86.00

74.00

1098204

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SHAREHOLDING PATTERN AS ON 31ST MARCH 2006

Category
Promoters Indian
Bodies Corporate
NRIs/OCBs
Banks, Financial Institution
Mutual Funds
FII
Public
Total

No. of Shares
32724612
1788669
389064
7500
8223662
3665654
26010263
72809424

%
44.95
2.45
0.53
0.01
11.29
5.03
35.74
100.00

DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH


2006

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

No. of
Shares

Shareholders

Share Held

Less then 500

Number
8713

%
54.06

Number
1619101

%
2.22

501-1000
1001-2000
2001-3000
3001-4000
4001-5000
5001-10000
Above 10000
Total

3519
2726
321
152
84
232
370
16117

21.83
16.91
1.99
0.94
0.52
1.44
2.30
100.00

2355917
3539829
845174
554790
381802
1655480
61857331
72809424

3.24
4.86
1.16
0.76
0.52
2.27
84.96
100.00

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

CHARTS
TOTAL INCOME
Total Income
790.96
688.06

800
700
600
500

474.32

511.59

Series1

345.85

400
300
200

(R
u
pe
es
in
Cr
or
es
)

100
0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

EARNING PER SHARE


Earning Per share
35

30.02

30

23.06

25

24.39

20

12.78*

15

6.74#

10
5

(Amount in Rupees)
0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PROFIT BEFORE & AFTER TAX

Profit Before & After Tax


80

71.62

70
60

58.23

50

41.05
32.87
31.55
29.12

40
30

50.06
39.56

55.39

47.23

20

(Rupees in Crores)
10
0
2001-02

2002-03

2003-04

2004-05

2005-06

Years

DIVIDEND PAYOUT

Dividend Payout
30

25.00

25

25.95
23.00

20
15
10

Payout (%)

12.26
8.33

7.89

25.64

14.2

9.10

2.43

0
2001-02

2002-03

2003-04

Years

PRAGATI SHARMA

2004-05

2005-06

AARTI INDUSTRIES LIMITED

NET WORTH

Net worth
235.29

250
203.95
172.29

200
144.56
150

123.75

100

(Rupees in Crores)
50

0
2001-02

2002-03

2003-04

2004-05

2005-06

Years

BOOK VALUE

Book Value
160

141.97

140
120

119.13
101.98

100
80

56.03*

60

32.32#

(Amount in Rupees)
40
20
0
2001-02

2002-03

2003-04
Years

PRAGATI SHARMA

2004-05

2005-06

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

MARKETING DEPARTMENT
INTRODUCTION OF MARKETING
The dictionary definition of Marketing is selling, advertising, promotion, etc.
Marketing affects our day to day life in whatever we do right from buying vegetables
clothes or grocery items. The most eye-catching and best quality is that towards
which everyone is attracted. And to make the product eye-catching and sell your
product in the market what you need to do is marketing of your product.
Marketing is nothing but a consequence of a cautious planning which is to be
done by the people of the company for making their product a success and that to
sell or market their product in the market. Things done with awareness and
complete homework with all the right calculations and complete knowledge the new
developments and happenings in the market would result in the excellent marketing.
Nowadays the organizations have started concentrating on the different ways in
which they can cater a maximum number of the customers and also how they can
promote their products.
The same is in the case AARTI INDUSTRIES LIMITED. The AIL tries its best
to satisfy their customers by providing with the best quality products. AIL considers
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

quality of its products as the companys biggest strength. The AIL by giving the
proper amount of pricing of its products is able to cater a good amount of
customers for the company.

The consumers are at the present time are becoming more and more aware of
the products availability. The customers are becoming choosy and not only
concentrate on the products quality but also on how the companies present their
products in front of them. The customers very carefully observe the features,
design, pricing, and others. By observing each of the details of the product the
customers tries to make perception of the product and then try the product. In
todays competitive world satisfaction of the customer is the most important job of
the companies. So in todays time the marketing is done according to the needs
wants and the demands of the customers so that whatever the customers needs
that is produced to make the customers satisfied.
AARTI chemical is basically manufacturer of chemical products and the
company has a number of chemicals that are manufactured in the company. Being a
chemical company, consumers may not be directly using AIL's products, and it may
be difficult to see how the chemicals the AIL produce enrich the lives of people. But
the AARTI INDUSTRIES do contribute towards improving their quality of life since
the end users of their products are industries ranging from agrochemicals and dyes
to speciality chemicals and pharmaceuticals - markets that are critical to long-term
sustainability. By supplying high quality and good value products to their
customers, the AARTI INDUSTRIES LIMITED indirectly help people to have
access to better medicines, fertilizers and diverse items of daily use. In other words,

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

greening the supply chain management plays a significant role in AILs business
strategy.

AIL`s prime activity is to manufacture organic chemicals, mainly benzenebased intermediates. They also manufacture sulphuric acid and allied products,
which provide basic building blocks to most sectors of the chemical industry.

As the companies seeks for the company who provide quality products and
that the quality products are been produced by the AIL. AARTI INDUSTRIES being
a chemical manufacturing company manufactures benzene based products and that
the distribution of the products of the company is as follows:
o 50% exported
o 30% for sister concern
o 20% other companies

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

50% of the manufacturing of AILs products is exported to the foreign


countries.

30% of the AILs products is used by the sister concern of the AIL.

20% of the manufacturing of the AIL is being sent to the Indian market.

THE COMPETITORS OF AARTI INDUSTRIES LIMITED.


The competitors of AARTI INDUSTRIES LIMITED are as follows:

Alankar Industries
Anami Organics
Apurva chemical
Chirag Organics Pvt Ltd
Kamala Intermediates
Nascent Chemical Ind. Ltd
Micro Fine
Shanti Intermediates Pvt Ltd.
Vapi Acid & chemicals
Vapi Organic Chemical Pvt Ltd

THE CUSTOMERS OF AIL


The customers of the AIL are many in India as well as in the abroad.

NAME OF THE COMPANY


Dr Reddy

PRAGATI SHARMA

PRODUCT
DMS

AARTI INDUSTRIES LIMITED


Bharat chemicals

PNCP

Sister concern

Drugs & Organics

While trading abroad the AARTI INDUSTRIES LIMITED markets its product to
the European countries the most.
During the year under review, the company has achieved Sales turnover of Rs.
786.18 crores. While in the previous year the sales turnover was Rs. 685.47 crores,
registering a growth of 14.69%.

THE SUPPLIERS OF AIL


There are many companies in the suppliers list of the AIL but some of them
companies that supply chemical raw materials to AIL are as follows:

NAME OF THE COMPANY

PRODUCT

Standard Alkaline GSC

Chlorine

Reliance Jamnagar & Hajare

Benzene

Deepak nitrite
Udaipur

Reliance Industries Ltd.

Bharat Petroleum Corporation Ltd.

National Organic Chemical Industries Ltd.

Standard Albalies Ltd.

National Rayon Corporation Ltd.

PRAGATI SHARMA

nitric Acid
rock phospect

AARTI INDUSTRIES LIMITED

Grasim Industries.

Gujarat Narmada Valley Industries Corporation.

Deepak Nitrate ltd.

Transport ltd Dubai.

Helm Chemicals Germany

Universal Chemical Bahrain.

THE STRUCTURE OF AARTI INDUSTRIES LIMITED


(AIL) OF MARKETING DEPARTMENT
THE MANAGING DIRECTOR

BOARD OF DIRECTORS

MARKETING MANAGER

SALES MENS

THE MARKETING OBJECTIVE OF AIL


The marketing objective of the AIL are

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

To make awareness of their product.


To become the leader of chemical manufacturing products.
To earn profit.
To have maximum sales of their product with maximum customers.
Enhancing economic growth
Strengthening social responsibility
Intensifying environmental commitment
Ensuring a better tomorrow

THE HOLISTIC MARKETING APPROACH OF AIL


The traditional way of thinking of the people was marketing is to sell their
product in the market. But with the passage of time the companies have started
thinking in a broad manner now the most important thing for them is to retain their
customer and make a different and a good position of their company in the market.
For that the companies have started adopting the holistic marketing concept.
The holistic marketing concept takes in view not only the customers but also
the relationship of the company with their customers, stakeholders, their
management and the department and each of their other links prevailing in the
market. With all of these maintaining a position in the society is also one of the
important matters.
The AARTI INDUSTRIES LIMITED has maintained a very good relation with
their employees, customers, stakeholders, as well as the society which can be seen
in the welfare done by the AIL.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

THE HOLISTIC MARKETING MODEL


INTERNAL

INTEGRATED

HOLISTIC
MARKETING

SOCIALLY
RESPONSIBLE

RELATIONSHIP

We can say that AARTI INDUSTRIES LIMITED also follow the holistic
marketing concept is by the following reasons.

INTERNAL:
The AIL takes care of their employees in a proper way. Right from their senior
management to their employees and staff. Everyone is treated as if a family. The AIL
takes care of the needs and the wants of the employees and that the employees in
return work efficiently and effectively. Also the strategies, principles, recruitment,
selection, and motivation to the employees are done very carefully of each and
every department.

INTEGRATED:
The integrated marketing is the marketing where the task of the marketing of
the products is done. The marketing mix is an essential part of marketing and the 4
Ps is well considered here (Marketing Mix explained in the later part). So the AIL
tries its best to develop its marketing mix.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SOCIALLY RESPONSIBLE:
In todays world being socially responsible is very important. The AIL has tried
its best to be a socially responsible company by maintaining the ethics and moving
on with the environment al, legal and the community trends of the place it is
situated.

RELATIONSHIP MARKETING:
The relationship marketing is maintaining the relationship with the customers
stakeholders, suppliers distributors etc, and being loyal to each of them. The AIL is
among those companies who does the relationship marketing as the AIL not only
maintains the relationship with each of them but also treat them as their family
whether the customers suppliers distributors are oft the local market or of the
foreign market.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

THE ENVIRONMENT THAT AFFECT THE


COMPANY
The company is to be found facing many different environment that affect the
company adversely these environments are the classified under the two
environments they are:

The internal environment and

The external environment.

The internal environments that affect the company are as under

The customers
The public and the customers are the key factor which may prove fruitful
as well as harmful. The customers if properly satisfied would demand
more products and make the company reach at the top but if they are not
satisfied then the company may even shut down. In AIL the customers
are seen as the key part so if they are not satisfied then the company will
have to face problems.

The suppliers

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The suppliers are also an important part as the suppliers are the people
who provide us with the basic raw materials so if they are not with the
company then the company will face problems. If these people are not
satisfied on time then the company would face many problems.

The competitors
Competitors are that part of the company which would affect the
company adversely. As the competitors increase or decrease the price
range or any sort of new innovation that the competitors company does
will have a direct effect on the company itself. (AARTI INDUSTRIES
LIMITED)
The external environments that affect the company are as under

The technological environment


The technology plays a vital role for a company as if the technology
adopted by the company is old and that the competitor has the
technology which is new and involves less amount of money and so the
competitors if they gain the advantage before the company itself then the
competitors will gain a competitive advantage and the will not be able to
achieve the position which the company desires.

The political / legal environment


The political environment is pertaining to the government. If he
government makes any policy which is not in the favor of the company

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

like increasing the tax rate, increase the export-import duties, or put
more duties on the goods so the company will have to spend more and
this will affect the company adversely.

CORE COMPETENCIES
The core competencies of AIL are as follows:
Quality and Logistics,
Continuous Cost Control,
High Value Addition,
Diversified Product Range,
Loyal Work Force,
In - House R&D,

Customer Satisfaction.

AARTI INDUSTRIES LIMITEDS CORPORATE VISION


To retain leadership in the domestic market.
To attain a significant presence in global markets.
To become suppliers of choice to leading customers.
To be always committed to employees, customers, shareholders, and
society at large.

AARTI INDUSTRIES SUSTAINABLE GROWTH MISSION

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

To become one of the most respected organizations in the chemical


industry and a name people trust through quality products and sound
corporate values.

To grow into a large corporate entity by increasing the companys reach to


newer global markets, and expanding the companys product line up
through new product developments.

To use cost-effective and innovative manufacturing methods supported by


proven, eco-friendly and safe technologies.

To become a customer-driven company by providing customized solutions


and services to meet changing customer requirements.

To encourage and nurture a winning organizational culture by focusing on


providing their people opportunities for personal and professional growth.

To maintain a balance between the companys corporate goals and social


responsibilities.

To create long-term, sustainable growth for all the companys stakeholders.

THE MARKETING MIX OF AARTI


INDUSTRIES LIMITED
The marketing mix is made up of four elements namely the

Product,

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Price,

Place, and

Promotion.

Let us see the marketing mix of AARTI INDUSTRIES LIMITED one by one.

PRODUCT:Product is anything that is offered to a market to satisfy a want or their needs.


The product having nearly all quality, performance, or innovative features are
generally easily accepted by the customers. So a product should possess all of
these qualities so as to retain their customers for an extended time. The products of
the AARTI INDUSTRIES are in the maturity stage of the product life cycle. As in
the maturity stage sales of the product is not too high and not low so the same is in
the case of the AARTI INDUSTRIES product the products sales are not too high
and not too low.

The product portfolio of AARTI CHEMICALS LIMITED portfolio consists of:


1) BENZENE-BASED INTERMEDIATES
2) SULPHURIC ACID & ITS ALLIED PRODUCTS.
3) AGROCHEMICALS & FERTILIZERS
4) ACTIVE PHARMACEUTICAL INGREDIENTS (APIs)
5) OTHER INTERMEDIATES & SPECIALITY CHEMICALS

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

THE PRODUCT LINE AND PRODUCT DEPTH


Para Nitro Chloro Benzene (PNCB)
4 - Chloro Nitro Benzene (Para Nitro Chloro Benzene) (100-00-5)
4 - Nitro Aniline (Para Nitro Aniline)-100-01-6
4 - Nitro 1 - Chloro Benzene 2 - Sulphonic Acid (Para Nitro Chloro Benzene Ortho Sulphonic

Acid)
4 - Methoxy Aniline (Para Anisidine) (104-94-9)
4 - Amino 4' - Amino Diphenyl Amine 2 - Sulfonic Acid (F.C.Acid (4:4' Diamino D.P.A. 2 S.A.)

(119-70-0)
4 - Nitro 4' - Amino Diphenyl Amine 2 - Sulfonic Acid ( Pre. F.C. Acid) (91-29-2)
2,6 Dichloro 4-Nitro Aniline (99-30-9)
2 - Nitro 4 - Methoxy Aniline (Fast Bordeaux GP Base ) (96-96-8)
4, 4 Di Amino Benz Sulphanilide (4,4 D.A.S.A.) (16803-97-7)
4 Nitro 2 Amino Phenol 6 Sulphonic Acid (96-67-3)
Para Phenylene Diamine (PPDA) (106-50-31)
Para Nitro Phenol (100-0-7)
Para Anisidine Meta Sulphonic Acid (13244-33-2)
Para Chloro Aniline (106-47-8)
6 Chloro Para Nitro Aniline (121-87-9)
Para Amino Phenol (123-30-8)

Ortho Nitro Chloro Benzne (ONCB)


3:3 Di Chloro Benzidine Dihydro Chloride
4-Nitro 2-Methoxy Aniline (Para Nitro Ortho Anisidine) (97-52-9)
Ortho Chloro Aniline (95-51-2)
2- Nitro Aniline (Ortho Nitro Aniline ) (88-74-4)
2- Nitro 1- Chloro Benzene 4- Sulphonic Acid (Ortho Nitro Chloro Benzene Para Sulphonic Acid)

(121-18-6)
Ortho Amino Phenol Para Sulphonic Acid (98-37-3)

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED


Ortho Anisidine Para Sulphonic Acid (6472-58-8)
2:4 Nitro Amino Diphenylamine Sulphonic Acid
Ortho Chloro Sulpho Phenyl 3- Methyl 5- Parazolone (14580-22-4)
2- Mercapto Benzimidiazole (583-39-1)
2- Chloro Nitro Benzene (Ortho Nitro Chloro Benzene) (88-73-3)
Ortho Anisidine (90-04-0)
Ortho Nitro Anisole (91-23-6)
Ortho Nitro Aniline Para Sulphonic Acid (616-84-2)
Ortho Phenylene Diamine (95-54-5)
Ortho Nitro Chloro Benzene Sulphonyl Chloride

Dinitro Chloro Benzene (DNCB)


2,4 Dinitro Chloro Benzene (97-00-7)
2,4 Dinitro Aniline (97-02-9)
4- Nitro 2- Amino Phenol (4 NAP) (99-57-0)
2:4 Di Nitro Chloro Benzene Sulphonic Acid (4515-26-8)
Meta Phenylene Diamine 4- Sulphonic Acid(Free Acid)(MPDSA) & Sodium Salt (88-63-1)

Para Dichloro Benzene (PDCB)


1,4 Dichloro Benzene (Para Dichloro Benzene) (106-46-7)
2,5 Dichloro Nitro Benzene (2,5 DCNB) (89-61-2)
4- Chloro 2- Nitro Aniline (Para Chloro Ortho Nitro Aniline) (89-63-4)
2,5 Dichloro Aniline (2,5 DCA) (95-82-9)
2:5 Dichloro 1-(4- Sulphophenyl)-3- Methyl 5- Pyrazolone (84-57-1)
Para Chloro Ortho Anisidine (93-50-5)
4 Chloro Ortho Phenylene Diamine (95-83-0)
4- Chloro 2- Amino Phenol (95-85-2)
2:5 Dichloro Para Nitro Aniline (2,5 DCPNA) (6627-34-5)
4 Chloro 2 Amino Phenol 6 Sulphonic Acid (4 CAPSA) (88-23-3)
2:5 Dichloro Aniline 4 Sulphonic Acid

Ortho Dichloro Benzene (ODCB)

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED


1,2 Dichloro Benzene (Ortho Dichloro Benzene) (95-50-1)
Ortho Chloro Para Anisidine (5345-54-0)
3:4 Dichloro Nitro Benzene (3:4 DCNB) (99-54-7)
3:4 Dichloro Aniline (3:4 DCA) (95-76-1)
2- Chloro 4-Nitro Aniline (Ortho Chloro Para Nitro Aniline) (121-87-9)
6 Bromo 2 Chloro 4 Nitro Aniline (99-29-6)
2:3 Di Chloro Nitro Benzene (3209-22-1)
2:3 Dichloro Aniline (2:3 DCA)
2 Chloro PPDA (615-66-7

Nitro Benzene

1:4 Sulpho Phenyl 3 Methyl 5 Pyrazolone (1:4 SPMP)


Nitro Benzene (98-95-3)
Meta Nitro Chloro Benzene (MNCB) (121-73-3)
Meta Chloro Aniline (MCA) (108-42-9)
N,N Dihydroxy Ethyl Meta Chloro Aniline (NNDHEMCA) (92-00-2)
Sulfanilic Acid (121-57-3)
1,3 - Dinitro Benzene (Meta Di Nitro Benzene)
Meta Phenylene Di Amine
Meta Uredo Aniline
3- Nitro Aniline (Meta Nitro Aniline)
3- Amino Acetanilide (Meta Amino Acetanilide)
N:N Bis (2 Hydroxyethyl Meta Amino Acetanilide)

Alkylated Anilines & Toluidines

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

N,N Di Methyl Aniline (DMA)

N,N Di Ethyl Aniline (DEA)

N,N Di Ethyl Meta Toluidine (DEMT)

N-Ethyl Aniline (MEA)

Ethyl Benzyl Aniline (EBA)

Ethyl Benzyl Aniline Sulphonic Acid (EBASA)

N-Ethyl Meta Toluidine (MEMT)

N,N Dimethyl Meta Touldine (DMMT)

N-Ethyl-N-2-Hydroxyethyl-m-Toluidine

N,N - Dimethyl Para-Toluidine (DMPT)

N Ethyl N Benzyl Meta Toluidine (EBMT)

N- Methyl Aniline (MMA)

N Methyl N Benzyl Aniline (MBA)

N Methyl meta Toluidine (MMMT)

N Ethyl Ortho Toluidine (NEOT)

Ethyl Benzyl Meta Toluidine Sulphonic Acid

Chloro Phenols

2,5 Di Chloro Phenol


4-Chloro Phenol (PCP)
2- Chloro Phenol ( Ortho Chloro Phenol)
2,4 Di Chloro Phenol
2,6 Di Chloro Phenol
2,4,6 Tri Chloro Phenol
2,3 Di Chloro Phenol
3:5 Di Chloro Phenol
3:4 Di Chloro Phenol

Fluoro Compounds

Para Fluoro Nitro Benzene


Ortho Fluoro Nitro Benzene
Para Fluoro Aniline (4-Fluoro Aniline)
Ortho Fluoro Aniline (2-Fluoro Aniline)
3:5 Di Fluoro Nitro Benzene

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

2:4 Di Fluoro Nitro Benzene


3:5 Di Fluoro Aniline
2:4 Di Fluoro Aniline
1,3 Di Fluoro Benzene
3 Chloro 4 Fluoro Aniline
2:4 Di Chloro Fluoro Benzene
2:4 Di Chloro Acetophenone
Para Fluoro Phenol
Ortho Fluoro Phenol

Agrochemicals

O,O-Diethyl Quinoxalin 2-YL Phosphorothioate (Quinalphos)


Methyl 2-Benzimidazole Carbamate (Carbendazim)

Other Major Products


Bulk Drug Intermediates / Speciality Chemicals

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

4 - Nitro Aniline (Para Nitro Aniline)-100-01-6


Ortho Chloro Aniline (95-51-2)
2- Chloro Nitro Benzene (Ortho Nitro Chloro Benzene) (88-73-3)
Ortho Anisidine (90-04-0)
Ortho Phenylene Diamine (95-54-5)
Di Methyl Sulphate (DMS)
2,5 Dichloro Nitro Benzene (2,5 DCNB) (89-61-2)
4- Chloro 2- Nitro Aniline (Para Chloro Ortho Nitro Aniline) (89-63-4)
Para Chloro Ortho Anisidine (93-50-5)
1,2 Dichloro Benzene (Ortho Dichloro Benzene) (95-50-1)
1,3 - Dinitro Benzene (Meta Di Nitro Benzene)
Meta Phenylene Di Amine
N,N Di Ethyl Meta Toluidine (DEMT)
4-Chloro Phenol (PCP)
2,3 Di Chloro Phenol
3:4 Di Chloro Phenol
Mono Chloro Benzene (MCB)
Meta Di Chloro Benzene

Mono Chloro Benzene Para Sulphonic Acid

Bulk Pharmaceuticals
DYES
DYES AVAILABLE IN LIQUID FORM
ACID BLUE 15
ACID VIOLET 17
ACID VIOLET 49
ACID BLACK 194
BASIC YELLOW 2
BASIC VIOLET 1
BASIC VIOLET 3
BASIC GREEN 4
BASIC GREEN 1

Bulk Drugs under R & D

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED


Anti-Hypertensives
Perindopril
Trandolapril
Cilazepril

Anti-Cancer
Imatinib Mesylate
Capcetabine
Irenotican

Bronchodilators
Loteprednol
Mometasone
Ciclesonide
Flumethasone
Desonide

Anti-Diabetic
Glimepiride
Anti-Deprresents
Ziprasidone
Aripiprazole
Zaleplon
Paroxetine HCL

Dyes
DYE CLASS
HUES

YELLOW

ORANGE

BROWN

RED

VIOLET
BLUE

GREEN

BLACK

ACID
17, 23, 36
42, 96,
99, 100
194, 204,
241
3, 7, 10,
56, 75
116, 142
162
75, 160
165, 355
365
18, 52, 73,
81, 88, 97,
119, 131,
151, 186
195, 283
357, 362
7, 17, 49
85, 90, 92
1, 3, 7, 9
15, 92,
158, 193
1, 9, 16, 25
50, 68:1,
104
1, 52, 172
194, 210
234

QUALITY

PRAGATI SHARMA

BASIC
2

DIRECT
REACTIVE
11, 12, 44 7, 17, 18, 22
50, 111
42, 81, 84,
145A, 160A

SOLVENT
2, 14, 16, 33
82

1, 2

34, 39

2, 62

4, 12, 13,
14, 84

23, 80, 81 11, 35, 49, 141


152, 180A
195A, 196

1, 23, 24, 49

1, 2, 3, 4, 9, 51
10, 14

1, 12

8, 9

7, 9, 11,
26

4, 13, 21, 25,


77, 171, 194,
203, 250

4, 5, 6

71, 86,
199

1, 4

22, 56, 80 5, 8, HFGR


160

27

AARTI INDUSTRIES LIMITED

Quality is one of the important and basic aspects of marketing. Being a


chemical company, consumers may not be directly using AIL's products, and it may
be difficult to see how the chemicals they produce enrich the lives of people. But
the AIL do contribute towards improving the peoples quality of life since the end
users of their products are industries ranging from agrochemicals and dyes to
speciality chemicals and pharmaceuticals - markets that are critical to long-term
sustainability. By supplying high quality and good value products to their
customers, AIL indirectly help people to have access to better medicines, fertilizers
and diverse items of daily use. In other words, greening the supply chain
management plays a significant role in their business strategy.

DESIGN AND FEATURES


As the product is chemical the design and the features is not possible. The
products (chemicals) in the AIL are either in the powdered form or in the liquid
form.

SIZES
For the solid form, the plastic gunny bags have the minimum size of about 50
kg and the maximum above 450 and this is mostly used for the local market
packaging and the demand of the customers. For the export purpose he plastic
gunny bags are only used but the size of the gunny bag differs. The size turns to be
500 kg when it is sent to the foreign customers.

For the liquid form the containers are used. These containers are packed in
such a way that the chemical does not react with the drums. These drums are of
different sizes

BRAND NAME
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The product i.e. the chemical is marketed in the market in the brand name of
AARTI INDUSTRIES LIMITED (AIL) in INDIA as well as in the foreign markets

SERVICES
The services offered by the AARTI INDUSTRIES to its customers after their
customers receive the order are as follows:
o Product information,
o Safety data sheets,
o Instructions for the of the product if facing any problem,
o Product handling guidance.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRICE:In what ever we do we do pay price for it. When we purchase certain things, we
make certain things and also that ethically when we are wrong and do anything bad
we pay price for that.
Previously the pricing used to be set with the negotiations of the buyers and
the sellers. The price for which both of them agree used to be the price of the
product. Though at that time also bargaining prevailed but coming up to a price with
both parties agreement was there. In the traditional times the people used to believe
that the things that are of high prices are of very good quality where as in todays
time the quality is seen first and then the pricing. The customers needs are as kept
in mind while making the product in the same way the pricing of the product are
also kept by keeping in mind the customers and so different segments are been
targeted for the different price and according to them the pricing are kept by the
companies.
The pricing along with the product also plays a significant role in attracting the
customers and some times gaining competitive advantage also. A price if properly
set with a quality product then it would tend the customers to purchase the product.
As many times the customers are ready to pay a good amount of price for the
product but with the expectation of providing quality products to them.
The buyers force the sellers to reduce the prices of their product and that is the
reason for which the discounting system has been emerged so that the buyers get
due benefits of the price reduction and the manufacturers are also in advantage.

METHOD OF SETTING PRICE BY


PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AARTI INDUSTRIES LIMITED:The pricing in the AARTI INDUSTRIES LIMITED are set by the board of
directors with the marketing managers.
The companies also set their pricing in many of the ways. As in small
companies the pricing is set by the boss. Whereas in the big industries the pricing
policies, pricing objectives are set by the product or the department managers and
later on it is approved by the top level management of the industries. Even in AARTI
INDUSTRIES LIMITED the prices are firstly been set by the managers an then it is
given to the top level management with the complete report with reasons of the set
prices and after analyzing the whole report the top level management approves it (if
the prices that are set are proper then the price is finalized and if not it is again
reviewed and then by discussions the prices are set)
And also in some industries where there are different department s like the
finance department, marketing department, human resource department, production
department, research and development, stores department health and safety
department etc. the pricing is the key important area there is a separate pricing
division which determines the appropriate price. And this pricing department
reports to the marketing department, finance department and also the op level
management.
Previously companies used to think that pricing means profitability but now
days with profitability it is getting more customers.

The following method is followed in setting the pricing of the products.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

MATERIAL COST

EXPENSES
(Electricity + water + Wages + salary)

OVERHEAD EXPENSES

PERCENT OF PROFIT

THE PRICE
(SELLING PRICE)

The prices the chemicals of AARTI INDUSTRIES LIMITED are set in the
following way:
o Firstly the material cost is taken into consideration and counted. He 60% of
the set price is the cost of the raw material involved in the making of the
product.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

o Then the expenses are being calculated that is used or spent in the making
of the product. These expenses are the electricity (power), water expense
(pani) and the salary & wages (pagar) that are considered. These expenses
involve 20% weightage.
o After the expenses the overhead expenses are been considered. These
overhead expenses may be the individual overhead cost. This expense has
20 %of weightage.
o Lastly the percentage of profit is been kept by the company.
o Then finally the selling price of the products is been decided or finalized
by the AIL.
While AARTI INDUSTRIES LIMITED sets its price of a product at that time
the company keeps in mind the following things:
o Prices of that particular product for which the prices are to be set by the
company, with the prices that are kept by the competitors of AIL
o The quality of the product that are to be given to their customers. If the
quality is very high than the prices are charged according to it by the AIL.

PAYMENT PERIOD
The payment period is as such not fixed by the AARTI INDUSTRIES
LIMITED. Sometimes the company takes advance money from the parties
(consumers). It depends upon the consumer/ customer if the customer is old and
important then the maximum period for the payment given to them will be 15 days.
There is as such no policy fixed or decided for the company for the payment .

PLACE:PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

DOMESTIC MARKET OF AIL


AARTI INDUSTRIES LIMITED can be said as one of he largest producer of
benzene based chemical product and intermediary chemicals in India and the
products manufactured by the AARTI INDUSTRIES LIMITED are use in financial
transactions without working with an agent or a broker. By using the internet, the
most used media nowadays. The purchasing agents can search for the best vendors
and also the values.
Nowadays companies are trying to identify the customers who are more
profitable to the company and most importantly who possesses values that are
matching the companys values in addition. This will help in developing quite a
excellent amount of rapo between the company and its customers / consumers to
carry out a long lasting relationship. As value helps in building relationships so
does the service helps as it is the key point to be considered by the company as by
providing the proper amount of service the company can win the heart of their
customers.
The companies are basing their decision on customers lifetime value rather
than on intermediate profit maximization. Each companys set up of belief and
practice are under going challenges and change. These days all the business
organization tries to do this type of marketing activities and they give main concern
to marketing department because without the marketing tricks the organization will
not exist.

The chemicals that are mostly sent in Indian markets are the

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

1) benzene-based intermediates
2) Sulphuric acid & its allied products.
3) Agrochemicals & fertilizers
4) Active pharmaceutical ingredients (apis)
5) Other intermediates & speciality chemicals.

The states in which the AARTI INDUSTRIES LIMITED markets its goods are
as follows:

Gujarat,
Maharashtra,
Hariyana
Himachal Pradesh,
Punjab.

And others

EXPORTS OF THE AARTI INDUSTRIES LIMITED


PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

When the AARTI INDUSTRIES LIMITED realized the fact that the industry
can cope up with their competitors and can also export their products in the foreign
countries they begin exporting their products to the different countries. At that very
time the AARTI INDUSTRIES LIMITED registered itself in the exports of Rs. 684
million which is equivalent to US $16.10 million. Over a year the company has
registered a compounded average annual growth rate of more than 65 per cent.

Each year the AARTI INDUSTRIES LIMITED has seen a favorable rise in the
volume of the exports. The quality then became the focus point of the company as
soon as they realized their growth rate of the company in the foreign market.
Superior quality and international standard generate an ever-rising demand for the
companys product in the foreign market. As the customers need more and more
quality products so the company produced the products according to the needs of
their customers. This was helping the company in holding a firm grip in the foreign
export market.

This year the exports of AARTI INDUSTRIES LIMITED has increased from
Rs. 255.04 crores to Rs. 341.61 crores (inclusive of export through trading house

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

and relevant export benefits) registering the growth of 33.94%. The constant effort is
being made to increase the exports.
The AARTI INDUSTRIES LIMITED has been awarded STAR EXPORTER
AWARD for the year 2004-05 by the Gujarat Dyestuffs Manufacturers Association
for the highest foreign exchange from Direct Export of self Manufactured Dyes and
Dyes Intermediates.

AARTIS exports are represented by way of the following chart.

As we can see in the above graph that AARTI INDUSTRIES LIMITED is


exporting most of its goods to Europe. It is because European countries have
stopped the production of the chemical products in most of the parts of the country
due to the environmental reasons. As even they need chemical in make of certain
products and that the chemical production is banned in the country for this reason
AARTI INDUSTRIES LIMITED is going for most or major export of its products in
the European and the African countries.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The AARTI INDUSTRIES have associated with a subsidiary company,


Alchemie Europe, in the UK, and have representation in the USA to provide better
services to our overseas customers.
ALCHEMIE EUREOPE LIMITED
7-9, ST. MARYS PALACE,
BURY LANES, BL9 ODZ,
ENGLAND.
TEL: + 44-161-763-1624
FAX: +44-161-763-1621
Now AARTI INDUSTRIES LIMITED is inexorably working towards the setting
up of the delivery points in their strategic location so as to cater its customer with
all the quality products, services, comforts etc. by reaching to the customers and
provide them with what ever they need and satisfy them in the shortest possible
time to reduce the wastage of time and cost involved. The products that are to be
exported to the different countries are as follows.
Name of the products that are exported by the AIL. (These products are similar
products that are marketed in India)

Para Nitro Chloro Benzene (PNCB)


Ortho Nitro Chloro Benzne (ONCB)
2:4 Dinitro Chloro Benzene (DNCB)
Para Dichloro Benzene (PDCB)
Ortho Dichloro Benzene (ODCB)

Nitro Benzene

Alkylated Anilines & Toluidines


Chloro Phenols
Fluoro Compounds
Agrochemicals
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Other Major Products


o Bulk Drug Intermediates / Speciality Chemicals
o Bulk Pharmaceuticals
o Bulk Drugs under R & D
o Dyes
These are the above chemical products which are exported by the AIL to the
different countries these countries are as follows:

United States of America,

Germany,

Italy,

Belgium,

Japan,

United Kingdom,

Spain,

Switzerland and

Korea.

The AIL has set up its own Alchemic plant in United Stated of America and
United Kingdom also so as to endow with better service to its North American and
European Markets also that the manufactured goods is delivered to their customers
on time and they do not have to linger too long for the delivery of the product and
also the expenditure and time is not worn out.
With the increasing globalization and the trade among the countries, the
company i.e. the AARTI INDUSTRIES LIMITED is well geared to make its way into
the worlds market and establish its presence among them all.
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PROMOTION:
The AARTI INDUSTRIES LIMITED has no promotion policy. The AARTI
INDUSTRIES LIMITED does not go for any promotion of their chemical
products. The AIL is a specialty chemical manufacturer so the consumers know
that where and whom to contact directly. And the consumers directly contact the
AIL. The advertisement is given just for the complement purpose not for the
promotion purpose. Few ways of promotion done by the AARTI INDUSTRIES
LIMITED is by the following ways.

The AIL gives promotion in the business magazines. E.g. the


publishing directory of VIA (Vapi Industrial Association). The
complementary

advertisement

is

also

for

some

Educational

Institutions if needed or necessary.

The AIL gives the newspapers. If the newspaper people approach


them personally asking for the advertisements then only the AIL
gives the advertisement that too complementary

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PACKAING, LABELLING,
GUARANTEES.

WARRANTIES

AND

PACKAGING
The packaging is considered as the fifth P along with the product, price,
place and promotion. How you present the product is felt to be of more importance.
If a product has a good packaging then the customers would be attracted towards
the product as sometimes the outer looks of the product also matters. As now days
the world has become a show business if the thing you present is in a systematic
and attractive way then it will be accepted with open hand and there is no doubt in
this stanza.
When we talk about the product packaging of the AARTI INDUSTRIES
LIMITED, are of two forms they are

Solid form (powder form) and

Liquid form.

So for both of these forms different kind of packaging is required. AARTI


INDUSTRIES LIMITED does the packaging according to the need and the demand
of the customers. The company manages to give the products (chemicals) the kind
of packaging that matches the products characteristic and its adjustability with the
plastic as most of the chemicals are packaged with the plastic. And if the chemical
does not meet the characteristic of the plastic then the packaging material is coated
with something else that can adjust the chemical concentration e.g. Tanker.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AIL is transporting its liquid chemical in the local market in the tankers. But if
the tanker has the features and the characteristic that does not match with some
chemicals so for that reason the company has come up with solutions that the
tanker is coated with the glass inside so that the chemical concentration does not
react with the tanker and cause any hazard.

Solid form (powder form)


In AARTI INDUSTRIES LIMITED the chemicals are also in the solid form
which is then converted in the small crystals like sugar for the customers. These
solid crystals are mostly packaged in the white plastic gunny bags. These bags are
for the local market as well as for the export purpose also. The plastic gunny bags
minimum size is 50 kg and this is mostly used for the local market packaging and
the demand of the customers.
For the export purpose he plastic gunny bags are only used but the size of the
gunny bag differs. The size turns to be 500 kg when it is sent to the foreign
customers. This bag has such characteristic which matches the chemicals that are
filled in the bags.

Liquid form
In AARTI INDUSTRIES LIMITED the liquid chemicals are mostly sent in big
containers. These containers are packed in such a way that the chemical does not
react with the drums. These drums are of different sizes and he drums are made of
such material which can bear the highly chemical characteristic so that there is no
hazard caused and the chemical reaches the customers safely.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Even the drums might be of that characteristic which does not match the
characteristic of the chemical so in that case the drums are covered with the metal
of construction according to the physical characteristic of the chemical. So the
plastic containers are coated inside it with the material which does not react with
the chemicals.

The transport people keep it when the truck-tanker is used for

sending the chemicals in the local market.

LABELING
The labeling is done by the company in a most simplest and understandable
way. As the labeling is simple the workers also understand it properly and so the
chances of damage of any hazard is reduced and the danger is reduced.
Format of the labeling that is done on the gunny bags which are sent to the
customers by the company. The format of labeling of the domestic and the foreign
market that are on the gunny bags are the same with few more additions done in the
foreign bags format.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PARA NITRO CHLORO BENZENE


LOT NO: _____________________________________________
GROSS WEIGHT: _____________________________________
TARE WEIGHT: ______________________________________
NET WEIGHT: ________________________________________
BAG NO: ______________________________________________

AARTI INDUSTRIES LIMITED


MADE IN INDIA

USE NO HOOKS

In AARTI INDUSTRIES LIMITED the labeling which is done on the gunny


bags are also done on the drums in which the liquid chemical is being filled or
sending it to the customers.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

NAME OF THE CHEMICAL


LOT NO: ____________________
GROSS WEIGHT: ____________
TARE WEIGHT: _____________
NET WEIGHT: _______________
BAG NO: ____________________

AARTI INDUSTRIES LIMITED


MADE IN INDIA

HIGHLY POISONOUS

The above diagram is of the drum for the liquid chemical where in such
information are written such as:

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The lot number:


The lot number is there which means that the drum is containing the chemical
whose lot number is suppose 56 so that if there is any problem in the chemical than
the lot number will help in knowing that whether the whole lot is spoiled or only that
particular drum is spoiled.

Gross weight:
Gross weight means the weight of the chemical, whether in solid or liquid
forms that is kept in the gunny bags or the drums.

Tare weight:
Tare weight is the weight of the gunny bag or the drum in which the chemical is
being filled for transportation.

Net weight:
Net weight is the sum of the gross weight and the tare weight.

Bag number:
The bag number is given to each and every bag. If the lot of the chemical is
spoiled then for knowing that in a particular lot which bag is spoiled and easy to see
that whether the whole lot is spoiled or only that particular bag or drum is spoiled

WARRENTIES & GUARANTEES:


As AARTI INDUSTRIES LIMITED is a chemical producing company they do not
give any warranties and the guarantees as the chemicals of AIL are of the finest
quality produced and offered to the customers.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

THE DISTRIBUTION CHANNEL OF AIL


The distribution channel of AARTI INDUSTRIES LIMITED is very short and
simple. The VAPI plant manufactures the product. The marketing department
MUMBAI gives the order that they have receive to the VAPI branch. The VAPI
branch then sends the product i.e. the chemicals to the customers as per the orders
given by the marketing department MUMBAI about the customers who have given
orders and are located in the different parts of the country.

MANUFACTURER

SALES MENS
CUSTOMERS

The AARTI INDUSTRIES LIMITED make the chemical which are specialty
manufactured so there is no third party the customers directly contact AARTI
INDUSTRIES LIMITED. The distribution channel of AIL also consist of the sales
mans who move on to the different parts of the country and they give samples of
their product to the companies and the companies they use those products
(chemical) and observe that the product is having all the things which they want
also with excellent quality and if they get it, they do purchase the products. There is
no third party, agent or any distributors of the company.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

MODE OF TRANSPORTATION
The mode of transportation of the Aarti Industries Limited, differ for the local as
well as the foreign market.

The Local Market


The transportation mode in the local or home
market is basically roadways as the means i.e. trucks
and attached tankers on them. The chemical in the
liquid form is sent by tankers in the local market. Also
sometimes the liquid chemicals are transported in the drums. Whereas for the
solid form the company uses normal trucks in which the chemicals are stored in
the gunny bags.

The Export Market


For the export market the big containers are used and in those containers
the chemicals are stored. The solid chemicals are kept in the gunny bags and the
liquid chemicals are stored in the drums and the solid and the liquid chemicals
are kept in the big rectangle containers and they are set for the exporting the
chemicals. The mode of transport while exporting is the sea ways i.e. shipping.
The chemicals from the company move on in a truck till the dock and from the
dock it is shipped.
Gunny
Bags

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

DISPATCH DEPARTMENT
The AARTI CHEMICALS have a systematic dispatch department.

The total

numbers of people working in the department are 8 and all are in the same post. The
marketing department MUMBAI gives the order to the dispatch department VAPI.

The channel flow of the Dispatch Department.

MUMBAI OFFICE
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The Mumbai office gives the order to the


Dispatch department Vapi.

DISPATCH DEPARTMENT

PRODUCTION
DEPARTMENT

DISPATCH DEPARTMENT

The Mumbai office gives the order to the dispatch department which is in Vapi.
The dispatch department then confirms the production department whether they
have the products already made in the stocks or not.

If the product is ready (produced previously and kept) then the dispatch
department takes the ready products from the department and directly dispatches
the products i.e. chemicals on the very same day is sent. The dispatch department
gives the order which is to be sent to the customers, to the production department
so that the chemicals are produced before 5 days of the date of dispatching the
order so that there is no delay in the sending of the order and that the companys
reputation of delivering the products on time is saved and maintained.
Such are the containers which are used for the export purpose these
containers contain the drums in such a way there is no space left and the drums in

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

the containers cannot move accidents are so the chances of accidents are reduced.
The same is in the case of the gunny bags.

When the product is sent to the customers for the delivery at that time the
company i.e. the dispatch department gives the truck driver a memo. In that memo
there are some informations which are to be feeded by the company as well as the
customers to which the product is been sent for the delivery purpose.

The memo consists of the informations such as:

The date of delivery.

The customers name and address, (To whom the product is being
delivered)

What the product is?

The quantity of the product.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Memo number.

Number of the truck on which the product is sent.

The sign of the person who has taken the product.

Sign of the person who has received the product.

These informations help when there is any problem or misunderstanding that


has arise due to anything for that purpose he company keeps an account of such
kind of informations. The memo which is sent has minimum 4 copies. These copies
are issued by the company itself and for the people like:

The main copy for the company itself

Other copy for the customer

Other for the tax and excise department and

Office use i.e. dispatch department.


(As per the companys rule)

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRODUCTION DEPARTMENT
MANUFACTURING FACILITIES
AARTI has two API manufacturing plants located at Dombivli and Tarapur in
Maharashtra with total area of about 15000 sq mts, and a reactor volume of more
than 70 M3. The production facility at Dombivli has been designed to meet WHO
GMP standards and Tarapur facility to be commissioned in January of 2005 will be
US FDA compliant.
AARTI INDUSTRIES plants have Stainless Steel and Glass-lined Reactors
ranging from 50L to 3000L capacity. The finishing areas have appropriate air
handling system with terminal filters as required. The process water is designed to
meet USP requirements. Our plant facilities are equipped with multi-mills,
micromeshes etc. that provide products with particle size and bulk density as
required by customers.

ANTI-HYPERTENSIVE

CILAZAPRIL
MOEXIPRIL
ISRADIPINE

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

ANTI-PARKINSONIAN

PRAMIPEXOLE
ROPINIROLE
ENTACAPONE

ANTI-ASTHMATIC

MOMETASONE

ANTI-ACNE

ADAPALENE

MACHINE AND EQUIPMENTS


The following are the machine and equipments which are used in the AIL:

Storage tanks
Reactors vessel
Distillation columns
Condensers
Pumps
Absorber
Scrubber
Boiler

Boiler is equipment in which steam is produced from water in an economical


way i.e. by using cheap but high calorific value fuel.
Steam is required in most of the chemical manufacturing processes.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Types of Boiler:
Depending upon the type of fuel used for steam generation the boilers are
divided into different types.

Coal fired boiler


Oil fired boiler
Agro waste fired boiler

In AIL the steam of 24 kg/cm^2 is generated from oil and coal fired boiler. There
are two (18 and 13TPH) coal fired boiler and one (10 TPH) oil fired boiler.

PLANT LAYOUT
Layout:Layout refers to the systematic arrangement of facilities in a particular work.

As plant layout is an overall arrangement of the


production process. Store room, stock room, material
handling equipment, employee services & all other
accessories required for facilitating the production in
the factory. It is a Master Blue Print for cocoordinating all operation performed inside the
factory. The same is we will see of he AARTI
INDUSTRIES LIMITED. How AARTI INDUSTRIES
has managed to arrange the layout of their company
and their companys layout has helped them to make
their work very efficient while doing.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

OBJECTIVES OF PLANT LAYOUT

To minimize handling and transportation of material


To ensure economic utilization of available floor space.
To ensure efficient control over the various processes of
production.

To minimize cost of production.


To maximize convenience and safety of the workers.

PLANT LAYOUT
SSP

Back Security
Fire
Fighting
Pump
House

Boiler

ACID PLANT
SECTION

DMS
Plant
ETP

HCL Storage
MCB Plant
Acid Storage
MCB
Storage
PRAGATI SHARMA
Tanks

3.4 DCNB
Distillation
Section

Safety
Dept.
DG
Section
Acid
Storage

Water
Reservoir

Ammonia
Storage
Tank

PNCB
Flaking
Section

2, 5DCNB

3, 4DCNB

OPDA
Plant

95% PNCB
Crystallization
CN
Crystallizatio
Section
n Section

NCB Plant

Distillation
Section

AARTI INDUSTRIES LIMITED

Canteen Administratio
n Bldg.

Inst.
Secti
on

Liq. PNCB
Storage

OHC
Security
Bicycle
Parking

Car
Parkin
g

Garden

GIDC ROAD

Types of plant layout


Mainly there are few types of layout that are given below.

Process layout
Product layout
Fixed Position layout
Combined layout

In AARTI INDUSTRY the company follows a combined layout. The combined


layout is relevance of the product layout, process layout or fixed location layout and
their firm meaning is difficult to know. As in the most of the industries and the
companies the combination of the product layout and process layout is noticed. It is
possible to have both types of layout in an efficiently combined form.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

As AARTI INDUSTRY is producing chemical product, they are applying


combination of both product layout and process layout because the machineries
from which they are producing chemical are arranged in accordance to their product
and the way it is to be processed.

MATERIAL HANDELING SYSTEM


It involves the movement of material from one place to another for the purpose
of processing. The material handling equipments are as follows

Cranes

Industrial trucks

Pipe lines.

Pallet.

Fork lifts truck.

PRODUCTION PROCESS
Raw material
The company manufacture its products from the basic raw material-benzene
and sulphuric. The other major raw materials are chlorine nitric acid, ammonia,
caustic soda, and methanol. All these raw material are available freely in sufficient
quantity in the local and international markets. The major suppliers of this raw
material are:

Reliance industries ltd.

Bharat petroleum corporation ltd.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

National organic chemical Industries ltd.

Standard albalies ltd.

National rayon corporation ltd.

Grasim industries.

Gujarat Narmada Valley Industries corporation.

Deepak Nitrate ltd.

Transport ltd Dubai.

Helm chemicals Germany

Universal chemical Bahrain.

Raw material

Purity

Mono chlorobenzene

99.99%

Nitric acid

98%

Sulphuric acid

98%

Spent Acid

72%

(Part of sulphuric acid)

PRODUCTION PROCESS:
NITRATOR

SEPARATOR

WASHER

SPENT
ACID
MCB,
MIX ACID,
NITRIC ACID

PRAGATI SHARMA

STORAGE
TANK

SEPARATOR

WATER
NCB

DRYER

ETP

AARTI INDUSTRIES LIMITED

P CUT

DISTILLATION

CRYSTALLIZATION

STORAGE TANK
NCB

ML
PURE
ONCB

PURE
PNCB

PRODUCTION PROCESS:
Raw material like monochloro benzene, nitric
acid, Sulphuric acid, spent acid (part of Sulphuric
acid) are brought in the plant and before they get
into further process there is tight quality check on
it, it eh material is in proper form then it is sent to
the plant for further proper form then it is sent to
the plant for further processing.
In the plant the raw materials are brought together in a nitrator, in the nitrator
mono chloro benzene is then mixed acid and nitric acid. Then this mixture is further

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

sent to the separator through pipes as it is in liquid form. Through separator NCB is
obtained which floats above spent acid sediment down. The NCB is now sent to
washer and spent acid is sent to storage tank. The washer machine is filled with
water in which NCB is washer and separated.
From this the water is sent to ETP. NCB is sent to dryer machine for drying the
remaining water. From dryer machine NCB is sent to storage tank. NCB is now ready
for crystallization process. Through crystallization process pure PNCB is obtained.
ML is also obtained which is sent for distillation process. Through this pure ONCB
is obtained. P-cut is also obtained which is again sent for crystallization process.
From the above process NCB, PNCB, ONCB are obtained. These are in liquid
form when produced. According to customers preference they are converted into
flake form or powder form as a required.

Acid section
In turbine there is Sulphate acid which is pumped with dry air latter it is burning
up to 90 c along with putting SO 2 it then moved to WHB and putting water in it and it
is converted in to 420c and go in the form of stem to the converter 1 bed. After this
process we get SO3. Remaining portion is moving in to SH for the purpose of
heating and it shift to converter 2nd bed and finally moved into HHE for the purpose
of making cooling and some potion Goggles back to HHE and remaining portion
shifted into SO3 generator 1st and 2nd. Then it is moving into OT 1 st and 2nd for the
purpose of mixing and during this process we get some portion of 23% and
remaining portion shifted into absorption tower and during this process some
portion is go back to CHE. In absorption tower sufficient arrangement so that 98%
H2sO4. We can procure and it shifted into converter 4 th bed. In this converter some
portion of H2so4 coming from HHE and further it moved into economizer and we get
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

finish product SO3 and remain portion in the form of gas moved into final
absorption tower for purpose of making 98% H2SO4. Then it further moved into mix
exchanger in form of gas and finally in the form of gas gone out by chimney.

USES

Manufacturing of fertilizer, heavy chemical, coal tar product, dyes,


plastic, paints, and pigment.

Explosive, textile, inorganic fertilizer like super phosphate, sulphates,


etc.

In metal processing use for pickling of steel, in purification of petroleum


product.

Pharmaceuticals, making of alcohols, detergent, insecticides, and


herbicides.

In food industry in manufacturing of starch syrups and other products.

In transfer of lead accumulators or batteries are used.

PRODUCT PROFILE
1) BENZENE BASED INTERMEDIATES
AARTI is amongst the largest manufacturer of Benzene based intermediates in
India with products classified into the following categories:

CHLORINATION of Benzene into MCB, ODCB, PDCB & TCB. AARTI


presently has a chlorination capacity of 70,000 tons per annum - Largest in
India.

NITRATION of MCB into PNCB, ONCB and Dinitration to 2:4 Dinitro

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Chloro Benzene with a capacity of 90,000 tons per annum - Largest in


India.

AMMONOLYSIS of Nitro Chloro compounds such as PNCB, ONCB, 2:5


DCNB and 3:4 DCNB in a high pressure batch (autoclave) process. AARTI
is the largest manufacturer of Amination products in India and is making
various amino compounds such as PNA, ONA, OCPNA, PCONA, etc.

REDUCTION of various Nitro compounds such as PNCB, ONCB, MNCB,


ONA, PNA, MDNB, 2:5 DCNB and 3:4 DCNB mainly by catalytic
Hydrogenation to PCA, OCA, MCA, OPDA, PPDA, MPDA, 2:5 DCA & 3:4
DCA respectively. AARTI presently has a reduction capacity of 20,000 tons
per annum

SULPHONATION, METHOXYLATION, CONDENSATION & FLUORINATION


products are also a part of AARTI's range.

ACETYLATION & other chemical reaction facilities to manufacture various


derivatives which are mainly used in Dyes & Pigments.

2) SULPHURIC ACID & IT'S ALLIED PRODUCTS.

AARTI's SULPHURIC ACID PLANT has a capacity of 1, 75,000 tons per


annum where, in addition of 98% Sulphuric Acid, AARTI also manufactures
OLEUMS, SULPHUR TRIOXIDE & CHLORO SULPHONIC ACID.

AARTI has most backward integrated plant for DIMETHYL SULPHATE (the
key methylating agent) i.e. starting from Sulphur & Methanol.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

3) BULK PHARMACEUTICALS:
AARTI is making various Bulk Pharmaceuticals in the range of Antidiarrhoeals,
Antiinflammatory, Vitamins, Antiasthama, Anti HIV, Antijetlag / Sleep Disorder, Ace
Inhibitor, Antibiotics & Antidiabetics.

4) AGROCHEMICALS:
These comprise of Quinalphos & Carbendazim .

5) DYES:

AARTI has started getting dyes manufactured on contract basis from the
local manufacturers exclusively for exports.

The AIL have a well equipped quality control laboratory at MUMBAI with
sophisticated equipments like:

Gas Chromatography Machine, UV/LR Spectrophotometer,


Potentiometric Titration equipments, HPTLC, High Pressure Rotta
Dyer.

We are now able to supply chromium free dyes in powder & liquid
form for Swimming Pool & Spa applications.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

We supply liquid dyes in Eco friendly packing of IBC Tunner &


powder in biodegradable corrugated boxes.

6) OTHER INTERMEDIATES & SPECIALITY CHEMICALS:

Alkylated Amines and toluidiness,

Other specialty chemicals.

Chlorophenols,
Fluoro Compounds,

ORTHO NITRO CHLORO BENZENE


Product Details
Chemical Name
Chemical Formula

PRAGATI SHARMA

2- Chloro Nitro Benzene (Ortho Nitro Chloro


Benzene) (88-73-3)
C6H4NO2CL

AARTI INDUSTRIES LIMITED

Molecular Formula

CAS No.
Molecular Weight
Appearence
Moisture
Set point
Purity by GC

88-73-3
157.5
LIGHT YELLOW LIQUID
1000 PPM MAX.
31.7C MIN
99.65 % Min.

End Use

DYESTUFF
&
DYESTUFF
INTERMEDIATES
PHARMA & PHARMA INTERMEDIATES
AGROCHEMICAL
INTERMEDIATES
SPECIALITY CHEMICALS

DINITRO CHLORO BENZENE


Product Details
Chemical Name

2,4 Dinitro Chloro Benzene (97-00-7)

Chemical Formula

C6H3(NO2)2Cl

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Molecular Formula

CAS No.

97-00-7

Molecular Weight

202.5

Appearence

Pale Yellow to Reddish

PH

6.5 to 8.0

Typical impuriy

Insolubles: 0.2 % Max.

Moisture

0.2 % Max.

Set point

48.5 oC to 49.5 oC

Purity by GC

99.0 % Min.

End Use

DYESTUFF & DYESTUFF INTERMEDIATES

PARA DICHLORO BENZENE


Product Details
Chemical Name

1,4 Dichloro Benzene (Para Dichloro Benzene)


(106-46-7)

Chemical Formula

C6H4Cl2

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Molecular Formula

CAS No.

106-46-7

Molecular Weight

147

Appearence

Colourless liquid

Moisture

1000 ppm Max.

Set point

52.5 C MIN

Purity by GC

99.75 % Min.

End Use

DYESTUFF & DYESTUFF INTERMEDIATES


PHARMA & PHARMA

ORTHO DICHLORO BENZENE


Product details
Chemical Name

1,2 Dichloro Benzene (Ortho Dichloro Benzene)


(95-50-1)

Chemical Formula

C6H4Cl2

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Molecular Formula

CAS No.
Molecular Weight
Appearence
Purity by GC

95-50-1
147
Colourless liquid
99.75 % Min.

End Use

DYESTUFF & DYESTUFF


INTERMEDIATES AGROCHEMICAL
INTERMEDIATES SPECIALITY
CHEMICALS

NITRO BENZEN
Product details
Chemical Name
Chemical Formula

Molecular Formula

PRAGATI SHARMA

Nitro Benzene (98-95-3)


C6H5NO2

AARTI INDUSTRIES LIMITED


CAS No.
Specification
Molecular Weight
Appearence
Melting Point
Boiling Point
Typical impuriy
Form and Net Weight
End Use
Product Details
Chemical Name
Chemical Formula

98-95-3
IBP : 208 oC to 210 oC
123.11
Colourless liquid in Aniline
5.2 oC
210 oC to 211 oC
DNB content : 0.02 % to 0.03 % Max.,Others :
0.67 % to 0.68 %
Tanker load
DYESTUFF & DYESTUFF INTERMEDIATES
AGROCHEMICAL INTERMEDIATES
4-Chloro Phenol (PCP)
C6H5ClO

Molecular Formula

CAS No.
Molecular Weight
Appearence
Odour
Typical impuriy
Form and Net Weight
End Use

106-48-9
128.5
White Yellowish crystalline / fused
Phenolic odour
Di Chloro Phenol, Phenol,2-Chloro Phenol &
Others :Less than 1 %
250 kgs. : M.S. Drums
DYESTUFF & DYESTUFF INTERMEDIATES
AGROCHEMICAL INTERMEDIATES
SPECIALITY CHEMICALS

PARA NITRO CHLORO BENZENE


Product Detail
Chemical Name
Chemical Formula

PRAGATI SHARMA

4 - Chloro Nitro Benzene (Para Nitro


Chloro Benzene) (100-00-5)
C6H4ClNO2

AARTI INDUSTRIES LIMITED

Molecular Formula

CAS No.

100-00-5.

Molecular Weight

157.5

Appearance

Light yellow to yellow flakes

Typical impuriy

ONCB:0.50% MAX

Moisture

1000 ppm Max.(Flakes) & 1500 ppm


Max (Liquid)

Set point

82.2 C Min. (Flakes) & 81.0 C (Liquid)

Purity by GC

99.50% Min.

Packaging

250 kg Steel Drum / 18 MT FCL

End Use

DYESTUFF
&
DYESTUFF
INTERMEDIATES
PHARMA
&
PHARMA
INTERMEDIATES
PIGMENT
INTERMEDIATES
AGROCHEMICAL INTERMEDIATES

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

QUALITY CONTROL AND RESEARCH &


DEVELOPMENT
Quality:Quality is the totality of the features and the
characteristics of a product or services that bear on its
ability to satisfy the stated or implied needs of the
customer. Quality is the sum of the attributes that
describes the product. According to the AIL, the
objectives of quality are listed below.
Being a chemical company, consumers may not be directly using AIL's
products, and it may be difficult to see how the chemicals they produce enrich the
lives of people. But the AIL do contribute towards improving the peoples quality of
life since the end users of our products are industries ranging from agrochemicals

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

and dyes to speciality chemicals and pharmaceuticals - markets that are critical to
long-term sustainability. By supplying high quality and good value products to our
customers, we indirectly help people to have access to better medicines, fertilizers
and diverse items of daily use. In other words, greening the supply chain
management plays a significant role in our business strategy.

Objective of Quality
AARTI INDUSTRIES is expert in producing (chemicals) a product with a world
class quality. As for AIL their customers play a significant role in their development
in the same way for their customers the quality plays a significant role so the AIL
observes that their product is of the most excellent quality and that their customers
are greatest satisfied with the quality of their product (chemicals).

The objectives of AIL are as follows.

To satisfy the consumer.


To reduce the cost.
To improve the income.
To increase the productivity.
AARTI INDUSTRIES LIMITED has proficiency in developing or innovating
new products & processes that have world class quality. AARTI INDUSTRIES
LIMITED carries on research in various areas and that too with a special emphasis
on

pharmaceutical

intermediates,

Agrochemicals & specialty chemicals.

PRAGATI SHARMA

Agro

intermediates,

pharmaceuticals,

AARTI INDUSTRIES LIMITED

QUALITY POLICY
Good health cannot be achieved without quality products and quality
manufacturing facilities. We meet all the pharmacopoeias requirements, industry
standards and laws that govern manufacture of APIs & Intermediates. Our Research
facilities and plants are designed to meet world-class standards. Our processes are
will established and have properly documented quality management systems as per
c-GMP guidelines. Our Quality Assurance ensures quality requirements, systems
and procedures to meet c-GMP norms.
A periodic training facility to people ensures compliance of GMP needs.

QUALITY CONTROL
The products quality is influenced at various stages of design, production,
storage, sale, use etc and as design is not in consideration in the AARTI
INDUSTRIES so for them this is excluded from the rest and the rest should be
considered very carefully. For quality control the AARTI INDUSTRIES are checking
the quality of the product in the following ways.

The AARTI

INDUSTRIES LIMITED checks the quality of the raw-material

before receiving that raw-material from their suppliers.

The AARTI

INDUSTRIES LIMITED verifies the raw-material received from

their suppliers in the laboratory whether that material is of quality or not.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The AARTI INDUSTRIES LIMITED also inspects the quality of the product
in between of the production process to confirm the quality of the product.

The

AARTI INDUSTRIES LIMITED examines the products quality at the

end of the production process to ensure the best quality of their product
(chemicals).

Thus in this way the AARTI INDUSTRIES LIMITED is controlling the quality
of their product. They are examining that whether the quality of their product is
meeting the customers essential criteria and needs or not.

QUALITY MANAGEMENT SYSTEMS:AARTI INDUSTRIES LIMITED is and ISO 9001-2000.

Quality assurance:
The AIL is a company which is able to provide a mass goods of uniform
quality. AIL also follows the quality policy according to which it had obtained ISO9001, 2000 version certificate (obtained from TUV).

Quality policy:AIL leading manufacturer of intermediates and specialty chemicals is


committed to provide quality products and services leading to total customer
satisfaction while conducting business. We shall strive to continually improve
performance, process and system with and aim to be world class in terms of
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

productivity, safety, occupational health and environmental performance by


harnessing the competence of employees and ensuring their involvement.
Tools used to maintain the quality:
AIL is using various tools to control the quality standards. These are
HPLC: High pressure liquid chromatography
GLC: Gas liquid chromatography
DCS: Digital Control System scrapin
AARTI INDUSTRIES LIMITED has an expertise in developing or innovating
new products and processes that have world-class quality. AARTI INDUSTRIES
LIMITED is doing Research in their own unit, in various areas with special
emphasis on Pharmaceutical Intermediates, Agro Intermediates, Pharmaceuticals,
Agrochemicals and Specialty Chemicals.

AARTI INDUSTRIES LIMITED has fully equipped laboratory with high-tech


advanced instruments and highly qualified technical personnel at their R & D
centers. AARTIs advanced Analytical Instruments includes the following:

Gas Chromatograph & HPLC


Auto Titrator
UV Visible Spectrophotometer

Digital Polarimeter
Digital Melting Point Instrument
FTIR Spectrophotometer

AARTI at its Pilot Plant facility has R & D Process Equipments like:

Glass Reaction Equipment


High Pressure Autoclave
PRAGATI SHARMA

Glass Lined Reactors


SS 316 Reactors

AARTI INDUSTRIES LIMITED

Distillation Equipment
Sparkler Filter

Centrifuges
Air Handling Systems

AARTI's pharmaceutical plants are GMP (goods manufacturing practices)


approved and some of the plants have got ISO 9002 Certification also.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

RESEARCH & DEVELOPMENT


AARTI INUSTRIES LIMITED has fully equipped laboratory with high-tech
advanced instruments & highly qualified technical personnel at its R&D centers that
help the AIL to make the product which is of the paramount quality which also helps
the AIL to cater the number of customers for themselves with the maximum number
of the market share and place the AARTI INDUSTRIES LIMITED among the top
most chemical manufacturing products in the world.
The AARTI INDUSTRIES LIMITED has four state-of-the-art R & D centers,
recognized by DSIR (Dept. of Scientific & Industrial Research), Government of India,
which carry out innovative product and process development work with special
emphasis on pharmaceuticals and speciality chemicals.
The advanced Analytical instruments of AARTI INDUSTRIES LIMITED include:

Centrifuges

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Gas chromatograph & HPLC


Distillation equipment
4Digital Polarimeter
Glass Reaction equipment
Sparkler filter
Air handling system
Auto Titrator
FTIR spectrophotometer
Glasslined Reactors
Uv visible spectrophotometer
High pressure Auticlave
Digital melting point instrument

AARTI`s pharmaceutical plant are GMP approved & some of the plants have
got ISO 9002 certificate.
Areas

in which R&D carried out by the company:

The R&D activities are carried out by the company in the areas of
Bulk and pharmaceuticals formulations,
Specialty chemicals and
Intermediate chemicals.
Advantage

from R&D:

The R&D centers of AARTI INDUSTRIES LIMITED at Vapi are showing


satisfactory progress in their development of new products and improvement
in existing product efficiencies.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Future plan of action:


The AARTI INDUSTRIES LIMITED will maintain its R&D activities and
the innovation and development of new products and improvements in existing
product efficiencies.
The company has incurred the following expenditure in research and
development. In the areas of new products and improvement in existing
products efficiencies.
Expenditure on R&D
Capital
Recurring
Total
Total R&D expenditure as a percentage of
total turn over -0.27%

PRAGATI SHARMA

(Rs. In lakhs)
131.91
56.51
188.42

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

STORES DEPARTMENT
Engineering goods
Small parts

In alphabetical order
Given the code to each part
LIFO method for engineering goods.

Raw material of the chemicals


Chlorine
Nitric acid
Benzene
Methane

Controlling of waste:
Resale in the market
As a fertilizer
NCB

MCB

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PNCB

ONCB Refinery process

COMPONENTS IN THE ENGINEERING STORE

Nut and Bolt


V belt
Gland Thread Pump
Copper Tube
Impeller Pump
Compressor
Stainless Steel Pipe
Float Valve
Siphon Tube
Metallic Hose Pipe
Compressor
Oil seal for gear box in Reactor
Star butch
Pulley
Gear Box
Motor Reactor
Coupler
Teflon Gasket
SPO Pump
Motor
Valve
HDP Fitting
Butterfly Valve
Esteem Valve NRV

PRAGATI SHARMA

Hose Nipple
Hex Nipple
Flange
Needle Valve
Ss Valve short/long
Blend
Steam Trap IVR
Shed Glass
Cf bag
Filter Bag
Joining Gasket
Rex Rubber PVC
Bush Bolt Sheet
Chalk
Cotton Mask
Spoon
Disposable cap/Gloves
Muff Ear Mask
Teflon Tape
Gumboots
Goggles
Rubber/PVC Hand
Gloves
Wire Brush

AARTI INDUSTRIES LIMITED

Tool kit
Welding Rod
Pressure Gauge
Water Line

Pump Spares
Ball Bearing
Vacuum
Boiler/Electrical Spares

STRUCTURE OF STORE DEPARTMENT

STORE DEPARTMENT

Raw Material
Store

PRAGATI SHARMA

Packing
Material Store

Engineering
Material Store

AARTI INDUSTRIES LIMITED

FLOW DIAGRAM OF RECIEPT OF STORE


MATERIAL

Receipt of material and inward entry

PREPARATION OF RMR

Stacking at under Physical inspection by Experts Person

Getting Quality report in terms of approved or rejected

Unloading of material in proper pattern at unloading point


and verification with vendors challan

Rejected material are returned to concerned vendors

Approved material are kept in proper stacking for


consumption as per daily requirement
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

GRR prepared

OPERETION PROCESS OF STORE DEPARTMENT

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

VENDORS

PURCHASE

Purchase
Order

Material

Purchase
Requisition

STORE DEPARTMENT

Issue of material to plant


EXCISE

Modvat

GRN

ACCOUNT DEPARTMENT

Invoice

Payment

FLOW DIAGRAM FOR GENERATION OF


REQUIREMENT OF STORE MATERIAL

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

Monthly Requirement of store


material by the user
AARTI INDUSTRIES LIMITED

Generation of purchase
requisition

Release of purchase order by


the purchase department

Verification of released
purchase orders by store in
terms of monthly requirement of
user department

PLANT UTILITY DEPARTMENT


Every plant or industry or human being requires certain basic necessities
without which it would be impossible to function. Necessities like water, air, energy
(power) etc are just these and fall under the category called utilities. It is no wonder
that the utility section is called the heart of the plant.
At AARTI INDUSTRIES LIMITED, the following utilities are created and
consumed such that various other plants producing various products are the major
consumer of this utility. These utilities are mainly:
STEAM

PRAGATI SHARMA

High pressure
Low pressure

AARTI INDUSTRIES LIMITED

Medium pressure

AIR

Process air
Instrumentation air

RAW WATER
POWER
CHILLING WATER

Brine water

Steam

This basic utility is created in bulk at Sulphuric acid plant and Boilers.
Advantage of steam
o Easily available
o Relatively cheap to make
o Provide a good heat transfer medium

Air
A very important utility for any plant, air is basically used for two main

purposes. Air used is mainly as compressed air which is created by using air
compressor. The end product that is compressed air is then sent for various
purposes depending on its main use. When it is used in the process it is called
process air. When the compressed air is used for pneumatic purpose like Rota
meters, pneumatic valves, which are directly linked to the main digital control room,
it is called instrumentation air.
At AIL Reciprocating air compressor is used. At AIL 350 CFM (cubic feet per
minute) and 320 CFM AC is used, which are in stand by to each other. These are
used for instrumentation air. There are three 100 CFM AC, out of this three, two are
used for process air while the third one is used for making nitrogen gas.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Power
This utility is required and is often considered as the bloodline of the plant.

EXTRATION

BOILER

TURBINE

DE AERATOR

CONDENSOR

GEARBOX

GENERATOR

TRANSFORMER

TRIPPER

3 Phases

The turbine rotates at RPM of 9720. While AIL supply frequency of 50 hertz.
Exposing the generator to such high RPM would lead to damaging of the generator,
so for this introduce a gearbox whose primary aim is to lower the RPM. Here the
gearbox used is specified in terms of the ratio of the turbine blade RPM to generator
RPM. In order to give out power at 50 hertz, the generator must rotate at 1500 RPM.
The gearbox is operated at a ratio of 6:4
In the event that any of the major computer system fail, AIL have a back
up system. The most important feature of the acid plant is revealed here. AIL
operates the back up system in such a manner that the acid plant get top most
priority this is done because the plant I is primarily steam producing unit which
produces acid also using this steam AIL can run the diesel generator. AIL last
option is to lower the load in the power plant, failing which the plant is asked to
shutdown.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Raw water

This utility is used mainly for the purpose of being made into steam. The
largest supplier of this is the Gujarat board.

Chilled water

At AIL, two kinds of chillers are used. Thus AIL have ammonia based as well as
Freon-22 as refrigerant. The cooling effect is measured in terms of tones of
refrigeration
Ammonia is used as a refrigerant because of particular thermodynamic
properties which enable it to move heat far more efficiently than other refrigerant
gases. It is particular suited to working to in the range approximately 0-15c and
hence widely used in the chemical industries as well as other industries like food
preservation and chilling of milk, dairy product, beer and cold drinks.
Freon22 is used when AIL need temperature of -17c. The working principle
remains same.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

HEALTH AND SAFETY


It is policy of AIL, Vapi to provide more suitable and endangers work to its
workers. Its also provided safety to visitor, as well as any other people.
Occupational health and safety program are regularly conducted to achieve our
common goal i.e. safety which has been as control of accidental loss.

Emergency Exit:
Provide at least two escape exit with clearly visible emergency sigh on every
floor or in every room.
Keep all the escape ways leading to emergency exit free from obstacles.
Provide enough fire extinguisher of the appropriate type within every reach.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Safety Audit
The purpose of this exercise is to review all plant and their process and
operation of safety requirement to identify unsafe condition and practices improve
safety and health at work place to prevent accident loss.
Any safety officer or team of management carries out plant wise safety audit
shell at least once in month.

AARTI HEALTH CARE


Aarti Healthcare is US-FDA compliant.

API

Division of AARTI INDUSTRIES LTD., Flagship Company of USD 189

Million AARTI GROUP, since 1976, exporting to more than 65 countries,


including Developed and developing Markets.

API

Division manufacturing APIs, in niche segments Viz: Anti Hypertensive,

Anti Asthamatic, Anti-Cancer, Anti- Inflammatory / Anti- Allergic, AntiDiabetic, Anti- Depressants, Anti- Thalassaemic. (Please refer to Product List).

Manufacturing Units at Dombivali & Tarapur, in Maharashtra State of India, will


be WHO GMP Approved facilities by End Dec.2003.

Brand New facility upcoming at Tarapur & Vapi, per US-FDA Standard.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

In house R & D Center, with Ultra modern, sophisticated Instruments, equipped


with a Team of Highly skilled scientists, working round the clock on New
Products and Process Improvements.

Expected

to receive CoS for Ramipril, Budesonide, Venlafaxine, in year 2004,

for marketing products in Western Europe.

E-DMFs in CTD Formats available for most of the commercialized molecules.


All products match specifications of BP / USP / EP, as applicable.
Esteemed

clients in Domestic Market, serviced by us are, Ranbaxy, Sun

Pharma, Cipla, Aristo , Astra- Zeneca Pharma India, Maral Labs., Cadila
Healthcare, German Remedies, Intas, Biotrans, Dr. Reddys Laboratory (DRL)

Per

individual clients need, can also provide Tailor Made Products for

physical parameters viz: Particle size (micronised material), Bulk Density etc.,
as well Impurity profile, Methods for Testing etc.

We also offer Intermediates of most of our APIs (Pl. refer to Product List).
Products

under Patent will not be sold until Patent expiration in Buyers

Country. Purchase of Patented Product will be sole responsibility of the


Buyer.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SAFETY DEPARTMENT
Safety is essentially meant for protecting human life and property. Elimination
of unsafe condition in all the operating area and prevention of unsafe practices are
given importance by the top management of AIL.

Structure of Safety department


ASSISTANT
DEPUTY
MANAGER

SAFETY
ASSISTANT

PRAGATI SHARMA

SAFETY
OFFICER

SAFETY
INCHARGE

AARTI INDUSTRIES LIMITED

ENGINEER

SAFETY
SUPERVISOR

Safety slogan:
Some of the safety slogans of AIL are as follows:

What is safety?
Safety means freedom from danger, security of life.

Safety begins with me

Our aim zero accident.

Safety saves sorrow/ it offer security and beings efficiency

No safety know pain / know safety no pain

Safety needs involvement

Alert today tomorrow

Accident brings tears/safety brings cheers

With accident you gain / sorrow, sufficiency and pain

A safety rules breaker is an accident maker

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Love is the soul of life, fragrance is the soul of flowers, and energy is
the soul of flower, sage productivity.

No job is so important and no service is so urgent that we cannot take


time, to perform or work safety, this time to do things safety can be the
most important, time in our lives

Working to gather works, magic may be everywhere but there is no


magic in safety. Just common sense.

Care builds carelessness burns.

Goals of safety, health and environment are:

To prevent injuries and personnel illness.

To maintain work place and surrounding area safe and healthy.

To eliminate any foreseeable occupational and environmental hazard that


may result in fire and damage to property.

To ensure that the ministry of labor, health, safety and welfare regulation
are fully met with.

General safety awareness:


Smoking and consumption of tobacco is strictly prohibited.
Do not run or jump on ladder.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Wash hands and rinse mouth properly before eating, take bath before going
home.

Dont eat anywhere in the plant except in canteen.


All employees should wear helmet and shoes in the plant.
Dont spill any oily substance on the floor.
Use safety belts while working on high altitudes.
Dont repair any machine/equipments when it is operating condition.
Use flame proof lamp near M.C.B, benzene, ammonia and methanol.

AIL has many Safe Assembly Point and under ground tank for preserving the
liquid acid. AIL has 71 boundary point of fire fighting points.
The safety department conducts in plant safety training program on regular
basis.

Chemical emergency, prevention preparedness and


response.
Importance and use of safety equipment (Explosive, oxygen, CL-2, HCN,
Monitors, SCBA, ESA, Fire Gas Tight Suit, First Aid-Box)

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Use of Personal Protective Equipment.


There are two type of PPE. They are

Respiratory PPEs

Non-Respiratory PPEs

Respiratory PPE

Breathing Apparatus set used while handling gas leakages.

Canister mask used while cleaning vessels or reactor internally.

Air supply mask used while internal cleaning of vessels

Dust mask of protection against dust.

Non-Respiratory PPE

Helmet for protection of head.

Ear plug/ear muff for protection against noise.

Face seal for protection of face.

Safety goggles for protection of eyes.

PVC suit for protection of body and clothes.

Hand gloves for protection of hands.

Apron for protection of clothes.

Welding shoes / safety shoes / gum boots for protection of legs.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Safety belts used while working on height.

Gas Leakage

Wind direction is observed by seeing wind direction indicator. It is advised


to go into the transverse (90 degree) or opposite direction and reach the
safe assembly point.

Only trained and persons equipped with Breathing apparatus set should
go to the place of emergency.

Make way for the rescue team or first aid team or emergency vehicle.

If a person inhales gas take him to open place. Loose his clothes. Remove
shoes and helmet. If he becomes unconscious, send him immediately to
hospital.

Chemical spillage
If there is contact with face or eyes immediately wash below safety shower
for at least 15 minutes.
If chemical goes in mouth rinse properly with water.
Contact the safety department for treatment.

Emergency preparedness

Water should be readily available at every point by means of fire hydrant.

Fire extinguisher should be easily accessible in every plant.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

There should be wind direction indicator and siren.

Accident occurrences reporting system

In case of fire a siren is blown twice at an interval of 15 seconds.


In

case of gas leakage a siren is blown continuously four times for 15

seconds duration.

When situation comes under control a siren is blown for 1 minute.

First aid
First aid for some common accidents is as follows:
Burn
Shock
Injury or cut
Suffocation
Eye injury
Poisoning

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Fracture

Housekeeping
Accident because of inferior housekeeping.
Scattered thing at work place.
Things falling from above.
Wet or oily floor.
Tumbling over substances nearby.
Fire because of inflammable things and loosely connected electrical
wires.

Sign of inferior housekeeping.


Heaps of garbage and waste.
Uncovered manholes.
Improper hygiene at resting place
Inadequate lighting
Oily and wet floor.
The machine with high speed is uncovered.

Basis of housekeeping
The management should inculcate housekeeping in every worker by
impressing that with superior housekeeping the quality of the product can be
improved and the factory as well as worker will progress.

Inspection list for housekeeping


a) Floor

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b) Lighting arrangement
c) Ladders
d) Fire extinguisher
e) Surrounding bushes and plants.

Advantage of housekeeping
a) Work will be fast and safe
b) Health of worker will be good.
c) Workers will feel secure.
d) Relation between worker and management is improved
e) Quality for the product is enhanced
f) Everyone will be disciplined.

Runway reaction(thermal explosion):


Its the consequences of the loss of control of the temperature of chemical
compound or a reaction mixture in an enclosure.

Consequences of runway reaction:i. It results in the emission of a two phase mixture of gas and liquid to the
atmosphere giving an aerosol.
ii. In open air aerosol can ignite due to oxidation of hot gases and droplets
with air of possibly to the occurrences of electric sparks.
iii. The emission of reaction mixture in housing area can cause serious
problems.

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Causes of runway reaction:i. Any deviation from process condition.


ii. Lack of experimental information necessary for risk assessment, choice
of safe choices.
iii. Lack of consequence of runway reactions.

Types of thermal explosions:a) Homogenous thermal explosion :- it includes

Reactor under heating condition.

Reactor under cooling condition.

Reactor under heating condition with high heat flux applied.

Other initiating agent.

b) Heterogeneous thermal explosion:- it includes

Storage vessel hazards

Process deviation parameters

Fast propagating reactions

SAFETY HEALTH AND ENVIRONMENT


POLICY (SHE POLICY)
"As a responsible organization engaged in the business of manufacturing
chemicals, we, at AARTI INDUSTRIES LIMITED, Vapi, shall strive to ensure
improvement in all aspects of our Safety, Health and Environment (SHE)
performance related to our activities, products and services, through an effective

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implementation, monitoring and periodic review of the designed SHE Management


System."
With respect to the above, we pledge to:

Ensure continual improvement in the SHE Management System

Comply with applicable SHE legal requirements

Institutionalize effective resource management, with a specific


focus on energy, water and basic raw materials

Strengthen pollution prevention & waste reduction practices


and strive to provide a safe and healthy environment

Enhance SHE Management System awareness about the


desirable practices to be followed by employees and other concerned
stakeholders, through proper communication.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

SHE INITIATIVES FOR THE YEAR 2005-2006


Three new flame-proof safety torches procured.
Non-sparking tools procured.
Serial numbers provided to all welding machines.

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HAZOP study and risk assessment being carried out.


Recommonded for ISO 14001 & OHSAS 18001 certification.
Specific focus on conservation and reduction in consumption of primary
raw materials, energy and water.
Scrubber system for NOx & HCl modified for better efficiency.
Online Benzene sensor installed in MCB Plant.
Implemented the new hot work permit system. Started providing fire
extinguisher from safety dept. to avoid misuse of plant fire extinguishers.
Air moisture removal filter installed in fresh air line in chlorine shed.
Implemented the safety work permit system for CNA and Methanol tanker
unloading.
Acid spillage transfer arrangement made during emergency in Acid plant.
Emergency training imparted for dealing with cyclones.
Special training sessions organized on skin diseases, AIDS, First Aid and
M.S.D.S. by inviting external experts.

Leaflets in Hindi & Gujarati language for emergency preparedness


distributed to all employees.
Formulated fire-fighting and rescue squad and trained them to be ready for
tackling any emergency.

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Hepatitis 'B' injection given to all employees and family members.


Pre-employment medical check-up & yearly medical check-up of existing
employees carried out.
Eye test of all DMS employees done. Power with photo chromic/without
photo chromic lens provided to all DMS employees.
Conferring of the Best Housekeeping Award started.
World Environment Day celebrated on 5th June. GPCB members were
present on this occasion.
Complied with all legal requirements.

AARTI IN THE PROCESS OF HANDLING


HAZARIOUS CHEMICALS
AARTI has developed considerable expertise in the reactions mentioned below
& in handling the hazardous chemical involved therein. AARTI also has wealth of

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experience in unit operations such as DISTILLATION & CRYSTALLISATION. Based


on these experiences, AARTI is strategically placed to undertake customized
synthesis of organic chemical products.

CUSTOM SYNTHESIS IN FOLLOWING REACTIONS

Nitration

Reduction

Condensation

Oxidation

Sulphonation

Methoxylation

Acetylation

Grignard Reaction

Aldol Condensation

Acylation

Alkylation

Michael Addtion

Esterification (Including Asymmetric Esterification)

Meerwin - Pondorf - Verley Reduction

Cyclocondensation

Epoxidation (Chiral & Achiral)

Dehalohydrogenation

Noble Metal Hydrogenation (Catalytic Reduction)

Fischer Indolization

Ammonolysis (Amidation)

Balz - Schiemann (Halex)

Halogenation (Cl, Br, I)

Hydroxylation

Vilsmeier - Haack Formulation

Ullmann Substitutions

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Kolbe - Schmidt Carboxylation

Diazotization & Related Chemistry

Oppenauer Oxidation

Friedel Craft

Japp - Klingemann

Sharples Oxidation

Birch Reduction

Cyanation

EXPERTISE IN HANDLING HAZARDOUS CHEMICALS

Benzene

Liquid Chlorine

Hydrogen

Liquid Ammonia

Thionyl Chloride

Sulphur Trioxide

Sulphur

Dimethyl Sulphate

Chloro Sulphonic Acid

Potassium Fluoride

Concentrated Nitric Acid

Hydrogen Fluoride

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AARTI INDUSTRIES LIMITED

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AARTI INDUSTRIES LIMITED

MAINTENANCE DEPARTMENT
The maintenance of plant is important for the smooth running of any company.
AIL following three types of maintenance are done. They are as follows

Electrical maintenance

Civil maintenance

Mechanical maintenance

Electrical maintenance
The electrical maintenance includes the maintenance of the following factor:
a. Motors
b. Telephone system
c. Electrical installation
d. Switch gears
e. Meters
f. Generators
g. Lighting
h. Fans

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Civil maintenance
The civil maintenance mainly includes the maintenance of the following. They
are as follows:
a. Building construction
b. Service facilities (water, A/C, ventilation)
c. Fire fighting
d. House keeping
e. Scrap disposal
f. Janitor

g. Gardening
h. Drainage

Mechanical maintenance
The mechanical maintenance mainly includes the following factors:
a. Machine and equipments
b. Transport vehicles
c. Material handling equipment
d. Steam turbine and electricity.

Type of maintenances used in AIL:

Reactive maintenances.

Preventive maintenance.

Benefits of locations
It is an GIDC area

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Convenient in infrastructure.
Easy availability of local employment.
Convenience in transportation through rail and road
Good earnings.
Availability of market
Better communication system
Availability of water and electricity supply

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EFFLUENT TREATMENT PLANT


All the AARTIs large scale manufacturing units have their own Effluent
Treatment Plant (ETP) with facilities for Primary, Secondary and Tertiary treatment of

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effluent. In Sarigam, Gujarat, under the initiative of AIL, all the small units have
formed a new company named "Perfect Enviro Control Systems Pvt. Ltd." and have
set up a Common Effluent Treatment Plant, which is the first private ETP facility.
This effort has been well appreciated by the World Bank. Our other small
manufacturing units are the members of the Common Effluent Treatment Plants in
their respective regions.
ETP section play very important role in AIL. In this section there is only two
persons working. The HOD of this section is Mr. Maruti Patil.

Responsibility
The following are main responsibility of ETP section:
They control total area of south Gujarat.
They provide training to employees about function of computer.
All the maintenance and repairs of computers.
They provide software program as well as hardware function to other
department of the organization as per requirement.
Proper watch the user about their proper function.
It after training also, employee is not proper working inform to General
Manager.
If there is any break down of system, it is their responsibility to provide
and make workable as soon as possible.
They provide new developed programmers to required department
Purchase of system is also the responsibility of ETP section.

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OLD NEUTRALIZER

STORE
WATER PIT

EQUALIZATION TANK

DECANTER
CENTRIFUGE

PRIMARY
CLARIFIER

BIOREACTOR

SLUDGE
COLLECTOR

ACTIVATED
CARBON
COLUMN

FINAL OUTLET
CHAMBER

V-NUTCH
CHAMBER

REFINEMENT
TANK

SECONDARY
CLARIFIER

SLUDGE DRYING
BED

Effluent is any waste material produced during the course of various


manufacturing process in any industry or for that matter chemical industry. Waste
water can be classified as:

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Domestic waste water.


Process waste water.
Cooling waste water.

To treat this waste water before letting it anywhere is mandatory and requires a
series of stepwise systematic processing called as Effluent treatment plant.
It is also very important to meet the ever increasing stringent emission norms
of Pollution control boards; AIL is controlled by G.P.C.B. (GUJRAT POLLUTION
CONTROL BOARD), which is the controlling authority; hence the need for studying
ETP.
The stepwise working of the ETP here can be explained as follows:-

1) STORE WATER PIT:The effluent from various plants first comes to a holding tank where oil, Grease
and solids are separated. The remaining stream goes to the equalization cum
neutralization unit via 3 pumps of 5 HP, 10 HP, and 10 HP and flow rate of 8m/hr.

2) EQUALIZATION TANK:Its the heart of ETP, because all the variations occurring in the plant is
stabilized here. Its a simple tank with a capacity provided 15% extra considering

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emergency situations. Here we have two equalization tanks. Here we can add some
neutralizing, coagulating and flocculating agents.
The tiles of the equalization tank are made of a resin called as C.N.S.S.L. and
are acid proof. The mastic work consist of lining of brick tiles

3) DECANTER CENTRIFUGE:After neutralizing by caustic, we send it to flash mixer where we add


polyelectrolyte (heavy resins) to flocculate the small particles to from bigger
particles. Then the stream is sent to primary clarifier. The input stream is sent to
primary clarifier. The input stream of slurry to the decanter centrifuge should be
maintained below 20%.

4) PRIMARY CLARIFIER:Basically it is like a sedimentation process where smaller particles are


coalesced and then separated. For this an agitator where a proper RPM is
maintained is required, so that the particles are coalesced and not broken and our
objective is achieved. The heavy particles settle down and removed as sludge
drying bed. About 80% treatment is done in primary clarifier.

5) BIO-REACTOR:The overflow of the primary clarifier goes to the bioreactor where bacteria are
fed with food and nutrients like jaggery, diammonium phosphate (DAP), etc. the
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bacteria averages 0.5 to 1 micrometer in diameter. Some standard conditions are


required to be maintained which are as follows:-

PH: It is maintained between 5.5 to 6.5 for minimum impact on the


environment. Bicarbonate alkalinity is required to keep this pH at
right levels.

Temperature: It normally ranges from 25 to 30 C.

Dissolved oxygen: The bacterium requires some additional oxygen


for their survival. The minimum value to be maintained is around 5
mg/L. for this an agitator is used.

We use Activated Sludge Process (ASP) with recycle.


The outlet of bioreactor goes to secondary clarifier. It works on similar lines
as of primary clarifier.

6) ACTIVATED CARBON COLUMN :

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The overflow of the secondary clarifier goes to activated carbon column via a
polishing tank and V-nutch chamber. Here we have a sand column followed by
activated carbon column where the remaining effluents are absorbed.

The column is regenerative type of column.

7) SLUDGE DRYING BEDS:The bottom of the primary and secondary clarifier goes to sludge drying beds,
which are two in number and are essentially sands beds. The water from this along
with the activated carbon bed outlet is to equalization vessel.
The sludge is packed in gunny bags and sent to sludge waste management
company ltd. (S.W.M.C.L.).

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SWOT ANALYSIS
STRENGTHS
It had strong technical base with the core whole time director being
technocrats with sound entrepreneur skills.

The company being a multi location, multi product entity has


manufacturing abilities for a large number of products which enables them
to change of product mix as per market demands.

In house research and development centers recognized by the department


of scientific and industrial research enables continuous research for new
products process improvements, energy consumption reduction etc.

The company has a large customer both local and international. The
company has strived to serve them with loyalty since inception. It is the
support of these customers as well as that of its supplier that has enabled
the company to sustain its growth.

The company has always given priority to environment, health and safety.
It has technologically upgraded efficient treatment facilities at all its units.

The company is having an additional advantage which includes stocking


points in US, Europe, Japan and Logistics Advantage.

WEAKNESS
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House keeping is not up to the mark.


Centralized decision making which many a times hinders the functioning of
different departments.

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OPPORTUNITIES
The company is stream lining its new units at Vapi and Tarapur for custom
synthesis and USFDA approved pharmaceutical manufacturing.

The company is also working out marketing tie-ups with multinational for its
existing and new range of product.

The company has a large customer base comprising multinational and


global majors. This fact coupled with the in house, competent R&D team
gives opportunities to increase volumes in existing products and to
introduce new products.

THREATS

The companys threat perception is the shifting of some of its end usage
product to china. Accordingly the company is making continuous efforts to
increase its presence in china.

The companys ability to change its product mix quickly, its vast range of
products numbering about 75% and its foray into specialty chemical and
pharmaceuticals also makes the company confident of countering this
threat effectively.

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AARTI INDUSTRIES LIMITED

INDEX
PART 2 (SPECILIZATION)
SR. NO
1

TOPIC
HUMAN RESOURCE AUDIT

INTRODUCTION
CONDUCTING A HUMAN RESOURC AUDIT
GOALS OF THE AUDIT
FOCUS OF AUDIT
WHY DO AN AUDIT
PRELIMINARY STEPS
WHAT DOES AN HR AUDIT COVER
DATA COLLECTION METHODS
CODES OF CONDUCT
o CODE OF CONDUCT OF AIL

HR AUDITING OF AARTI INDUSTRIES LIMITED

INTRODUCTION
HUMAN RESOURCES PLANNING
RECRUITMENT AND SELECTION
EDUCATION, TRAINING, AND
DEVELOPMENT
o EDUCATION AND TRAINING
o EMPLOYEE DEVELOPMENT

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1-13
1-2
3
3
4
4
5
5-6
7
8-13
8-13
14-45
14-18
19
20-22
23-26
23-24
25-26

AARTI INDUSTRIES LIMITED

LEAVES OR EMPLOYEE ENTITLEMENTS


PERFORMANCE MANAGEMENT
COMPENSATION
LABOR RELATIONS & EMPLOYEE
RELATIONS
DIVERSITY AND EQUAL EMPLOYMENT
OPPORTUNITY
SAFETY AND ENVIRONMENT
DOCUMENTATION & INFORMATION
SYSTEMS

26
27-28
29-32
33-34
35-37
38-41
42

FORMS

43

LIMITATIONS

44

SR. NO

TOPIC

FINDINGS

RECOMMENDATIONS

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45-46
47

AARTI INDUSTRIES LIMITED

HUMAN RESOURCE AUDIT


An Audit is a means by which an organization can measure where it currently
stands and determine what it has to accomplish to improve its human resources
function. It involves systematically reviewing all aspects of human resources,
usually in a checklist, ensuring that government regulations and company policies
are being adhered to. The key to an audit is to remember it is a learning or discovery
tool, not a test. There will always be room for improvement in every organization
Audits help determine the effectiveness of an HR department and/or HR
systems. They are a systematic, objective tool to assess regulatory or policy
compliance in the workplace.
Often in assessing a companys business practices and legal compliance, the
emphasis is on the companys financial records. It is equally important, however, to
assess HR policies and practices, including the less concrete and less tangible
areas that deal with employee dignity and well-being. These are harder to measure,

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but their impact on productivity can be significant. Additionally, poor business


practices can lead to very expensive legal sanctions. Just Audits help determine the
effectiveness of an HR department and/or HR systems, audits can be valuable tools
in assessing HR policies and practices and ensuring that the company maintains a
safe and respectful work environment.
Human resources and the HR department perform a wide variety of activities.
The audit works best when the focus is on analyzing and improving the Human
Resource function in the organization.

The Human Resources (HR) Audit is a process of examining policies,


procedures,

documentation,

systems,

and

practices

with

respect

to

an

organizations Human Resource functions. The purpose of the audit is to reveal the
strengths and weaknesses in the organizations human resources system, and any
issues needing resolution.
The audit itself is a diagnostic tool, not a prescriptive instrument. It will helps to
identify what you are missing or need to improve, and it may even tell you what you
need to do to address these issues. It is most useful when an organization is ready
to act on the findings, and to evolve its HR function to a level where its full potential
to support the organizations mission and objectives can be realized.
HR audits typically are conducted in the workplace itself, with the HR
department using a multipoint checklist defining those "must haves" to ensure that
a company is legally compliant under both state and national government
regulations. The audit specifies conditions that should be met and then determines
whether they are or are not. Often, interviews are conducted randomly with
employees and managers to determine the culture or climate with regard to
acceptable/unacceptable behaviors in the workplace. Once an HR audit is
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conducted, a company will know exactly what needs to be done to ensure its legal
compliance.
Depending on the size of the organization, the number of workplace facilities
and other complexities, an audit can take anywhere from a half a day to several days
to conduct.

CONDUCTING A HUMAN RESOURCES AUDIT.


As the Employment law is an ever-changing field. The companys policies and
procedures must change with the laws if the company hopes to avoid litigation.
Employers are aware that one of the best ways to avoid employee lawsuits is to
have a comprehensive policy manual. Thats good advice, but its not enough. So all
the companies must regularly conduct human resources audit.

GOALS OF THE AUDIT.


The goals of conducting audits are

o To determine whether companys policies are being applied consistently and


whether they are consistently communicated to all employees.

o Are the mission and strategy of the human resource organization designed to
match the business strategy of the organization?

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o Are the kinds of people who run the human resource function good choices
for the ongoing tasks?

o It should distinguish between policies that are applicable to nonunion


employees, and the terms and conditions of employment for employees who
are represented by a labour organization.

o Finally, the review process should provide answers to several important


questions regarding the application of companys policies.

FOCUS OF AUDIT.
The focus while conducting an Audit will be on:

What unit is to be analyzed?

In large corporations, the focus of the audit can be the total corporate
personnel / human resource management function, or it can be the divisional or
subsidiary level. Whatever the focus, the audit's boundaries must be specified from
the start.
My focus of auditing was human resource department manager.

WHY DO AN AUDIT

To insure the effective utilization of an organizations human resources.

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To review compliance with a myriad of administrative regulations.

To instill a sense of confidence in management and the human resources


function that it is well managed and prepared to meet potential
challenges.

To maintain or enhance the organizations and the departments


reputation in the community.

PRELIMINARY STEPS
There are two issues that must be considered before implementing an
employment law Audit: When should the audit take place?
Who should conduct the audit?
Since the Municipality already utilizes a variety of employment-related
practices and procedures, the audit should be conducted as soon as possible, if
you have never audited such procedures before. After the initial audit, follow-up
audits should be conducted annually. When putting together an audit team, include
either in-house or outside legal counsel, a representative from Human Resources,
or any other individuals needed to represent a cross-section of staff functions. All
team members should be warned ahead of time regarding the handling of
confidential information.

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WHAT DOES AN HR AUDIT COVER?


The HR audit is broken into areas of evaluation that include what is needed
before a company hires any employees all the way through the process of recruiting
new employees, bringing them aboard, enrolling them in benefits programs,
safeguarding their confidential information, managing and supporting them, and
participating in their exit from the company, if necessary, either voluntarily or
otherwise

While conducting the auditing in AARTI INDUSTRIES LIMITED I tried to cover


each and every point among them are the HR planning, recruitment & selection,
leaves, training and development, benefits, compensation, diversity and equal
employment opportunity, performance appraisal, employee relations, safety and
environment, documentation and information system and also the forms that are
available on the spot while conducting the auditing in the AIL.

What does a full HR Audit entail"?


Generally the HR audit involves the following things in it:

Legal compliance

Compensation/Salary Administration

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Employment/Recruiting

Terminations

Training and Development

Employee Relations

Communications

Files/Record Maintenance/Technology

Policies and procedures (including employee handbook)

DATA COLLECTION METHODS


The sources of collection of data are the

Primary source

Secondary source

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The primary sources of data are:


The sources from where the data can be collected are as follows

Interviews with Senior Management: Focus on strategy and a definition


of the current state of the organization and the desired future state.

Interviews and Questionnaires with Line Management: Focus on their


interactions with the HR function, their human resource problems, and
the role they envision for the HR organization.

In-Depth Questionnaires from the Human Resource Staff: Diagnose the


jobs, activities, conflicts, and internal strengths and weaknesses of the
function.

Archival Information and Documents: Describe job histories, past


evaluations,

formal

structures,

and

general

background

on

the

organization as a whole and the HR function in particular.


The primary source of data was used to collect the information that consisted
of in-depth Questionnaire: to the Human Resource Manager covering almost all
points that a human Resource Audit should involve.

Secondary source of data are:


The secondary source is where the data are readily available. The secondary
source was not used / considered.

CODES OF CONDUCT
Codes of conduct detail issues that are not regulated by law but are the
standards, behaviours and expectations set by the employer in the workplace.

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Policies associated with codes of conduct may cover matters such as: fighting,
language, dress standards, alcohol, drugs, smoking, and confidentiality, other
employment, maintaining the workplace, taking care of organization property, theft,
and statements to media.

CODE OF CONDUCT FOR THE BOARD MEMBERS


AND SENIOR MANAGEMENT OF AIL
INTRODUCTION
As required under Clause 49 of the Listing Agreement as amended up to date,
AARTI Industries Limited (herein referred to as the Company), hereby notifies the
Code of Conduct for the Board Members and Senior Management of AARTI
INDUSTRIES LIMITED (hereinafter referred to as the Code).
All the Directors and members of the Senior Management are mandatorily
required to understand and adhere to the code/standards prescribed herein,
including any amendments /modifications/ replacements thereof as may be notified
by the Board of Directors of the Company from time to time, in the course of their
dealings, exercise of powers and discharge of their duties, responsibilities and
obligations in relation to the Company and its transactions.

Nothing in this Code of Conduct or related communications creates or implies


an employment contract or term of employment.

VIOLATIONS OF LAW

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Violations of law, this Code of Conduct or other Company policies or


procedures should be reported immediately to the Managing Director
and/or the Compliance Officer in writing.

Violations of law, this Code of Conduct or other Company policies or


procedure can lead to disciplinary action up to and including
termination/vacation of office.

APPLICABILITY
This code shall be applicable to all the Board Members (referred to as
`Directors) and Senior Management of the Company.

PART A DEFINITIONS
'COMPANY
Means AARTI INDUSTRIES LIMITED

'BOARD MEMBERS
Means Board of Directors of AARTI INDUSTRIES LIMITED

'SENIOR MANAGEMENT
Means, personnel of the company who are members of its core management
team excluding Board of Directors (BOD). This would comprise of all members of
management one level below the executive directors, including all functional heads.

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'COMPLIANCE OFFICER
Means the office appointed by the BOD for the purpose of this code from time
to time.

PART B COMPLIANCE
COMPLIANCE OFFICER
The Company has appointed Mr. Mohan P. Sonar, Company Secretary as
Compliance officer for the purpose of this Code and he shall report to the Managing
Director of the Company.

AFFIRMATION OF COMPLIANCE
All Board members and senior management personnel of the Company shall
affirm compliance with this Code on annual basis in such form as may be
prescribed and send it to the Compliance Officer by 30th April each year. The
Annual report of the company shall contain a declaration to this effect .

PART C - CODE OF CONDUCT


The Directors and Senior Management personnel of the Company shall adhere
to the following:
1. Shall act in accordance with the highest standards of personal and
professional integrity, honesty and ethical conduct
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2. Shall be independent in their judgment and actions.


3. Shall exercise due care and diligence in performance of their duties.
4. Shall comply with all applicable laws, rules, and regulations.
5. Shall not engage in any business, relationship or activity, which may be in
conflict of interest of the Company without prior approval of the Board.
6. Shall intimate the Companys Board of Directors before accepting outside
directorships.
7. Shall maintain the confidentiality of the information about of the Company
received/obtained by them in the course of their position as Director
/employee of the Company, except when disclosure is authorized by the
Chairman and/or Vice Chairman and Managing Director of the Company or
legally mandated and shall not use confidential information for their own
advantage or profit.
8. Shall use best endeavors to protect Companys assets and property and
ensure its efficient use.

9. Shall not derive any personal benefit (including without Limitation through
the use of Companys property, assets, information, or position) except that
which they are lawfully entitled to
10. Shall refer all inquiries or calls from the press and financial analysts to the
Companys Managing Director. The Company has designated its Chairman,
Vice Chairman and Managing Director, Vice Chairman, as official Company
spokespeople for any company related matters.
11. Shall abide by AARTIS internal code for prevention of Insider Trading.

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12. Shall not, directly or indirectly, short sell any equity/security, of the Company
so as to make gain out of such sale or otherwise. A short sale means any
transaction whereby one may benefit from a decline in the Companys
share/security price.
13. Shall not derive any benefit (directly or indirectly) or assist others to derive
any benefit by giving advice from the access to and possession of price
sensitive information about the Company, which are not in public domain.
14. Shall not exploit for their personal benefit, opportunities that are discovered
through Companys business, information or position, unless the same is
disclosed fully to the Managing Director and permitted by him.
15. Shall not compete directly or indirectly with the business of the Company or
with any business that the Company is considering to establish.

16. Shall

treat

women

employees

equally

and

eliminate

any

gender

discrimination and shall avoid harassment/threatening based on race, color,


religion, age, gender, national origin, disability or any other basis.
17. Shall not misuse the Companys facilities, except where such facilities have
been provided for personal use either by policy or by permission or
authority or in the normal course of business. The Companys facilities
shall not be used for personal use and even when used with prior approval,
care shall be exercised / taken to ensure that costs are reasonable.
18. Shall not (directly or indirectly) accept or retain any gift, entertainment or
other benefits from any organization or person doing business or competing

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

with the Company. However, they may accept and offer nominal
gifts/hospitality which are not of material value and are customarily given on
accessions or are of commemorative nature for special events.
19. Shall affirm compliance with this Code to the Company on an annual basis.

(THIS CODE IS SUBJECT TO REVISION. SUCH REVISION


SHALL BE WITH THE APPROVAL OF THE BOARD)

THE HR AUDITING OF AARTI INDUSTRIES


LIMITED
Information of the company & person, where auditing was conducted.

COMPANY NAME
The company in which the auditing is to be conducted is to be properly known
that what are the name in which the company has registered itself and the name in
which the company is trading.
REGISTERED AS: M/S AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

TRADING AS: M/S AARTI INDUSTRIES LIMITED

COMPANYS URL
The URL of the company helps to gain information about the company. The
information can be about the products, their company, and if anything new is
happening.

The URL of AIL is www.aartigroup.com

NAME OF THE PERSON


Name of the person was Mr. Kirit G Sashtri.

DESIGNATION
The designation of the person was HR Manager.

CONTACT
Contact of Mr. Kirit Sashtri is
CELL NO: 9377804595

ADDRESS OF THE COMPANY


The address of AIL is as follows.

REGISTERED OFFICE

CORPORATE OFFICE

Plot No. 801,802/23,


GIDC Estate, phase III,
VAPI_ 396195,
DIST. Valsad, Gujarat.

Udyog Kshetra,
2nd floor, L.B.S. Marg,
Mulund-Goregaon link road,
Mulund (W), Mumbai 400 080.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

TYPE OF COMPANY
The company is a Chemical Company.

TOTAL NO OF EMPLOYEES

The total numbers of employees working in the AIL is 503.

Among them 180 are in staff.

There are no casual employees.

323 employees are doing the job of operators and

There are 250 contract workers.

DEPARTMENT MISSION
Firstly the overall objective or purpose of the human resources department
within the Organization and its relationship to the Organization's overall mission is
to be known.

The mission of the human resource department of AIL is as follow:

Taking care of employee welfare,

Emphasize on appropriate training to all the employees and be open to all


their suggestions through team participation.

Maintaining health care system in the company.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The further questions asked were:


The overall objective or purpose of the human resources department within the
organization to the organization's overall mission is linked or not?
YES ( )

NO (

ANS: The departments mission and that the organizations mission is


linked to each other or not is also important to glimpse.
And it was found that the organization purpose was matching with
the human resource department objective.

Does the company have formal HR manual?


YES (

NO ( )

ANS: AIL does not have any HR Manual or any manual for their employee.

Are all he key policies covered in the manual?


YES (

NO ( )

ANS: As there is no employee manual the policies also does not exist at
AIL.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Working hours of the employees?

ANS: The working hour of employees is 8 hrs. There are 3 shifts in 24


hours.

Overtime hours?

ANS: The over time is usually not there but if there is some urgent order
which is to be prepared for that the company asks the
employees/workers to do overtime for which they are paid
separately.

What is the official retirement age?

ANS: The retirement age decided and specified by the AIL to its
employees is 58 years.

Does the company offer education assistance to the employees children?


YES ( )

NO (

ANS: The children of the employees are given education assistance by


the AIL. Education assistance is on the merit of the students. The
student who scores good marks is given education assistance.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Does any employee work from home?


YES (

NO ( )

ANS: There is no policy as such in AIL according to which any employee


can work from home.

Is the turnover rate high than expectation?


YES (

NO ( )

ANS: The turnover ratio of AIL is not too high if truth be told not many
people leave the company and go.

HUMAN RESOURCES PLANNING


The Human Resource Planning means the prior planning of the human
resource. How the company pre plans for the people to recruit and select in the
organization is to be known.

Do you know your employment needs beyond the current year?


YES ( )

NO (

ANS: According to the employee turnover. Also that now the company is
expanding itself, the company needs human resource.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Have you engaged in a strategic planning process to clarify your


employment needs?
YES ( )

NO (

ANS: The department heads if they need more employees under it, gives a
written letter demanding employees under them and the reason why
they require more employees.

RECRUITMENT AND SELECTION


Recruitment and selection is obtaining and evaluating qualified candidates
from internal and external sources for positions throughout the Organization.
The Human Resource Manager of AIL was asked these questions on the
recruitment and selection topic.

Is the selection process transparent, equitable, based on merit, and


appropriate?
YES ( )

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: The AIL has a recruitment process in which every candidate is equal and
there is no biasness which can take place. The recruitment is done with
complete honesty and the process is completely based on the merit
and the performance of the candidate in the interview, recruitment and
the selection process.

Are new employees provided with a comprehensive induction?


YES ( )

NO (

ANS: The new employee in the AIL is given a formal introduction and then
made familiar with the people whom he is going to work with. This is to
make him aware of the company, people and the environment in which
he is going to work with.

Before filling a position do you identify the skills, qualifications and

behaviours of candidate, needed to meet your objectives?


YES ( )

NO (

ANS: The AIL while conducting the recruitment and the selection process
notice the attitude and the behaviour of the candidates. Through the
response or the answers of the question asked to the candidates the
AIL (people conducting the recruitment process) come to know
whether the candidate is competent for the job or not.

Do job descriptions exist?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES ( )

NO (

ANS: While recruiting the candidate to his post the company gives a complete
description about
1. What is his job?
2. What he is going to do?
3.

What duties and responsibilities that he is going to perform?


Etc...

Are job descriptions up to date?


YES (

NO ( )

ANS: In AIL the job description exists in the AIL but it is not reviewed or
updated by the company.

Are applicant references checked?


YES (

NO ( )

ANS: The AIL checks the reference of their newly if they find it necessary.
Normally employee reference is not checked.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Are turnover rates monitored?


YES (

NO ( )

ANS: The AIL does not monitors the employee turnover rate.

Is the selection procedure clearly told to the candidates?


YES ( )

NO (

ANS: The Company informs the candidates previously itself about the
procedure of the selection so that there is no confusion in the mind of
the candidates regarding the procedure.

EDUCATION, TRAINING, AND DEVELOPMENT


Providing performance skills training and career development to employees,
utilizing both internal and external resources, includes providing expertise in
assessing education, training, and development needs and identification of highpotential employees.
The AIL was asked these questions on the education, training and the
development of their employees.

EDUCATION, TRAINING, AND DEVELOPMENT


Do you provide performance or skills improvement training?
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES ( )

NO (

ANS: If any employee is not that competent and needs training then that
employee is given training to improve his skills, performance and work
quality.

Do you utilize both internal and external resources for training?


YES ( )

NO (

ANS: The AIL uses both internal as well as external sources for the training.
The internal training is where the trainer from the company itself. And
in the external training the company asks the institutes to give training
to their employees.

Does the training include expertise in assessing education, and


development needs?
YES ( )

NO (

ANS: Suppose if there is any safety training then a safety expert is being
called and asked to give the training so that if there is any technical
problem which is not understood by the employee then it is being
solved by the experts.

Are seminars held in the company?


YES ( )

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: The Company some times conducts seminars for their employees and
for their benefits.

Do you offer employee in house training by the companies employees


only?
YES ( )

NO (

ANS: The Company also gives the employees training from the senior
employees working in the company.

Do you offer external training source?


YES ( )

NO (

ANS: The AIL does offer external training more than the internal training as the
experts are being called for giving training to their employees .

EMPLOYEE DEVELOPMENT
Do you have a way to identify the employees development needs of your
employees? ( e.g. surveys, reviews, performance management)
YES ( )

NO (

ANS: The AIL identifies the employees development needs as the AIL gives
training to their employees and if any of the employees work or
performance is not good they come to know that the employee is not
developing. The company goes for the performance management as
away to know the development need of an employee which is
conducted at the year ending.
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Do employees in your work area get the development they need to do


their jobs effectively?
YES ( )

NO (

ANS: The development is through the training that are given at regular period
to all the employees and motivated for good work.

Do you monitor the results of employees development activities in order


to assess their effectiveness?
YES ( )

NO (

ANS: The AIL once in the end of the year sees that which are the employees
who are to be given a promotion and development. The employee who
performs well is been promoted.

Are new employees offered mentoring support?


YES ( )

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: The AIL does give mentors support to its new employee so that the
mentor helps the employee in understanding the work and help the
employee if he faces any problem while working.

LEAVES OR EMPLOYEE ENTITLEMENTS


The leaves given to the employees also do matter that how many days in a year
they have leaves and how many days they get leaves with no harm in their pay.

Total annual leaves: given by the AIL to its employees is 7 days.


Total sick leaves: is 9 days leave annually.
Privilege leave: Are 26 days annually.

PERFORMANCE MANAGEMENT
Are employees clear about what is expected of them in their work roles?
YES ( )

NO (

ANS: When the employees are recruited in the company at the very same time
they are told and informed about what are their duties, responsibilities,
the working environments prevailing and the expectations of the
organization at which they have to stand.

Are employees clear about what is expected of them in their work roles?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES ( )

NO (

ANS: When the employees are recruited in the company at the very same time
they are told and informed about what are their duties, responsibilities,
the working environments prevailing and the expectations of the
organization at which they have to stand.

Is quality and quantity of work evaluated?


YES ( )

NO (

ANS: The work fulfillment, whether the employee is completing his work on
time and effectively is observed. There is no formal method of
evaluation.

Is there a system for performance evaluation?


YES ( )

NO (

ANS: For performance evaluation there is no such specific method.


Performance appraisal of employee is done once at the year ending and
that the subordinates rates their superior and the superior rates their
subordinated and both of their rating s are reviewed by the superior of
their both.

Is performance tied to compensation?


YES ( )

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: If the performance of the employee is up to the mark then the AIL gives
the employee an increment and also sometimes awards are given for
good performance to motivate the employees.

Is there any poor work performance policy in the company?


YES (

NO ( )

ANS: There is no such policy in the AIL for the poor work performance of the
employee in the company.

Is there any performance appraisal policy and procedure?


YES (

NO ( )

ANS: There is no performance appraisal policy in the company but the


company does have a procedure of the performance appraisal. The
performance appraisal takes place once at the end of the year.

COMPENSATION
All cash payments to employees and also the systems by which positions are
evaluated, salary and wage ranges and bands are determined, and adjustments are
made, including commissions, lump sum payments, incentive payments, and
bonuses.

Is there a formal pay structure?


YES ( )
PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: The Board of Directors are to be provided with the Salary of Rs.85,000/per month with power to make an annual increment area under
discussion to a maximum amount of Rs.1,50,000/-per month in respect
of salary and privilege up to 100% of salary. For the employees the pay
structure is decided when they are recruited that what will be their pay.
Salary is usually paid in the first week of every month. Salary officer
prepare covers with the name and personal code No., of employees and
the pay slip along with cash or cheque as per grade .

Are compensation levels monitored and reviewed?


YES (

NO ( )

ANS: In AIL the compensation structure is not reviewed regularly. The


compensation structure is reviewed once in a year.

Is working time documented?


YES ( )

NO (

ANS: When an employee whether he is manager or an employee or a contract


employee they have to fill up the register, where the timing of their
entrance and exit is noticed.

Are paid time off (vacation, holidays, etc) structures developed?


YES ( )

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: The Paid Holiday, Sick Leave, Casual Leave, Privilege Leave all these
leaves and holidays are calculated by the company and records of
these leaves/holidays of each and every employee is recorded and
maintained.

Is the compensation plan communicated to all employees?


YES (

NO ( )

ANS: The Company does not communicate the compensation plan to its
employees.

Is contact made with medical providers?


YES ( )

NO (

ANS: Whenever and wherever necessary the company contacts the hospitals
or medical providers if any emergency.

Are injuries/incidents investigated?


YES ( )

NO (

ANS: If any accident is occurred in the AIL and the employee is injured then
there is a complete investigation done of the incident held and then
according to the injuries caused to the employee the employee is given
compensation.

Is follow-up remediation performed where appropriate?


YES ( )

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

ANS: Whether the incident is small or big the employee who is injured is
rushed for the First Aid to ensure employees safety. There is an
emergency Van in the company which is kept for any emergency
purpose also the First Aid is kept in the company.

Are insurance premiums reviewed on a periodic basis?


YES ( )

NO (

ANS: The AIL gives insurance to each and every employee except to those
employees who come under ESIC. Those employees are insured by the
government. As the employees under ESIC gets all kind of benefits.

Is the workplace environment maintained with safety in mind?


YES ( )

NO (

ANS: The Company has kept in mind the safety of the employees. So there is
71 points to avoid fire hazard and emergency exit also.

Are compensatory administrative costs included in the budget?


YES (

NO ( )

ANS: There is no compensatory cost included in the budget by the company


as there is no compensatory policy decided by the company .

LABOR RELATIONS & EMPLOYEE RELATIONS


The role of the human resources role in the relationship between the
Organization and any bargaining unit of an employee-organized labor group,

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

including labor-organizing campaigns. The formal policies and procedures


governing all conditions of employment, including specific human resources
activities not otherwise categorized.

Is there a positive climate in your work area where employees are


motivated in their work?
YES ( )

NO (

ANS: In AIL each and every employee in every department is of friendly nature.
Some likes and dislikes exist but still everyone work together and enjoy
their work and creates positive environment around them.

Does the company have union?


YES (

NO ( )

ANS: The AARTI INDUSTRIES do not have any union.

Is there any grievances solving procedure?


YES ( )

NO (

ANS: The AIL has a unique way for solving the grievance. If any of the
employees has any grievances then they can straight away meet the
Managing Director of the company and tell him the problems and the
Managing Director will try to solve the problem.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Are the communication channels between management and employees


in your work area sufficiently consultative so that disputes are avoided
and effective problem solving is fostered?
YES ( )

NO (

ANS: Whether the dispute is small or big the employee can go to the Managing
Director with their disputes and he will help in solving the disputes.

Are you comfortable working with the companies disciplinary measures


and grievance procedures?
YES ( )

NO (

ANS: When asked this question to the Human Resource manger he said that
the employees in the company including him all are satisfied with this
type of Grievance solving procedure as the Managing Director is very
cooperative.

Are workplace policies flexible?


YES (

NO ( )

ANS: There is no as work place policy exist in AIL. Except the objectives, rules
and regulations of the company which have to be maintained with
proper discipline by each and every employee of the company.

Are disciplinary actions for violating workplace policies flexible?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES (

NO ( )

ANS: There is no such kind of policy so no disciplinary actions are taken.

Is there a process for employees to lodge complaints?


YES ( )

NO (

ANS: The employee can either complain to their department head or can meet
the Managing Directors for their problems and complaints.

Are there a variety of individuals to whom employees may lodge


complaints (supervisor, HR representative)?
YES (

NO ( )

ANS: There is no such procedure where the employee may lodge complaints
to their superior, supervisor, or HR manager. The Managing Director is
contacted directly by the employees.

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITY


Developing and implementing workforce programs to maximize employment of
productive people with different characteristics, qualifications, and talents while
recognizing the legal requirements and social responsibilities of equal treatment for
all employees and the actions necessary to ensure those requirements are met.

Do all your employees receive fair and equitable treatment?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES ( )

NO (

ANS: Yes each and every employee in the company is fairly treated whether
the employee is the worker or the manager.

Are supervisors and managers trained in anti-discriminatory practices?


YES ( )

NO (

ANS: The employees are given seminars and lectures where they are made
understood that what should be their behaviour towards the other
employees in the company and that do not discriminate among worker
or a manager. Every one in the company should be equally treated.

Are employment practices in line with the various anti-discrimination


laws?
YES ( )

NO (

ANS: There is no discrimination done in AIL among anyone. And there a notice
kept that the anti-discriminative laws are not violated by any of the
employees.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

EMPLOYEE BENEFITS
Some organizations provide a range of employee benefits not prescribed by
legislation or awards. These can relate to such matters as employee health, or
assisting employees to balance work and family responsibilities. It is important to
clarify how such benefits are awarded to employees in an organization policy in
order to ensure that all employees know of their availability, they are distributed
fairly, and that any conditions applying are understood.
Employee benefits, which fall into this category, may include: company cars,
mobile phones, employee assistance programs, salary packaging, career breaks,
and working from home and study assistance.
The noncash compensation provided to employees of the Organization
including, but not limited to, such components as insurances, retirement saving
plans, and paid time off, and the systems, support services, and communications to
successfully deliver the benefits.

Does the company provide the employees with Insurance benefits?


YES ( )

NO (

ANS: Yes. AIL being a chemical company provides each and every employees
with the insurance benefits. The employees coming under ESIC are not
given insurance benefits.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Does the company provide the employees retirement saving plans?


YES ( )

NO (

ANS: The aged employees who are working in AIL since years and are to be
retired in few years are given retirement saving plan.

Does the company provide the employees with the loan facilities?
YES ( )

NO (

ANS: The Company gives loans to its employees. There is no limit of loan
provided to the employees. If the employee need loan to build own
house, car etc. also for the employees parents the loan is given to
build house, education loans for the employees children are also
given.

SAFETY AND ENVIRONMENT


Audit practices will vary considerably among companies when considering
factors that contribute to a safe work environment. A company may choose to
develop an audit sheet tailored to a particular issue, such as the companys zerotolerance policy for harassment. In truly safe work environments, employees feel
confident that they have a place to go when they have work-related problems. They
model the behavior and communicate relevant procedures and resources so that
everyone feels comfort-able and safe. An open-door policy is well worth the effort of
writing and then providing training to managers and supervisors regarding how to
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

deal with employees who may come to them with concerns The training,
communication, and leadership required to provide a safe working environment; to
provide an appropriate level of employee involvement and responsibility for
implementing safe practices, using safety equipment, and complying with
Organization safety rules and practices; and to ensure that federal, state, and local
safety and environmental requirements are met.

Is there any non-smoking policy?


YES ( )

NO (

ANS: There is a non smoking policy for all the employees and no employees
should smoke in the premises of the organization and anyone found
violating those rules will be punished and severe actions will be taken
on them.

Do employees participate in regular safety and health training programs?


YES ( )

NO (

ANS: All the employees are previously informed about the date and time at
which training is to be held. Every employee has to participate in the
training it is held every week. The schedule is listed every month.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Are workplace accidents, near-misses, injuries, and illnesses reported


and investigated?
YES ( )

NO (

ANS: Yes if there are any mishaps then they are to be straight away reported
to the senior management and they investigate the accident properly
and the employee is rushed to the hospital without delay.

Are measures in place to prevent thieves from entering the grounds or


buildings?
YES ( )

NO (

ANS: There is a tight security in the premises of the AIL. The security in charge
takes care that there is no theft or robbery that takes place in the
company and there are 6-7 security in charge (people) remain at night
in the company premises.

Is bright, effective lighting installed indoors and outdoors?


YES ( )

NO (

ANS: The AIL has set up good lighting facility in the premises. There is lighting
at each place and there is no dark place this is to avoid working
accidents of employee working at the night time.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Are measures in place (access badges, traffic control, etc.) to keep


unauthorized
entrances?

persons

from entering

YES ( )

the facility through normal

NO (

ANS: Through the normal entrance only authorized people are allowed to
enter. The truck drivers have to show the identity card given by the
company at the entrance. The visitors are asked the person to meet and
then conformation is done from that employee and then the visitor is
allowed in the company.

Is there a reliable response system in place in the event an alarm is


triggered?
YES ( )

NO (

ANS: In the situation of an emergency an alarms is rung and then all the
employees are asked to vacate that particular area and reach at a safer
place. If there is a fire then the nearest fire point is switched on.

Are employees encouraged to promptly report incidents, and suggest


ways to reduce or eliminate risks?
YES ( )

NO (

ANS: The employees are previously educated that they should be careful while
working with the chemicals and that they should wear proper safety

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

equipment like gumboots, helmet and gloves (if necessary). All this
things can avoid accidents in the company.

Do you maintain OSHA?


YES ( )

NO (

ANS: The Company does maintain OSHA. This is for the safety of the
organization as well as of the employees.

From how many years?


ANS: OSHA is maintained in AIL since its commencement of the company.

DOCUMENTATION AND INFORMATION SYSTEMS


Preparing, storing, and maintaining employee records and information,
including computerized human resources information systems, and meeting federal,
state, and local requirements

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

When operational changes are introduced into your work area do you
take into consideration the impact on employees?
YES ( )

NO (

ANS: As AIL is very much concerned about its employees the company while
making any policy or decisions keep in mind their employees safety
and employee welfare.

Are documents regarding employees kept for their required duration?


YES ( )

NO (

ANS: The AIL keeps and maintains each and every legal documents with them
regarding their employees and the company itself. As whenever it may
be needed they can show them (auditors visits).

FORMS
Factory act half yearly returns.
Annual return
Renual of LIC
Notice of accident

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Report on accident
Minimum wage act annual returns
Payment of wage act annual
ESIC reports
Bonus act annual returns
Provident fund monthly returns

All these are the list of forms which the AIL always keep with them and they are
properly maintained. As these forms are required any time and asked by the
auditors of the company.

LIMITATIONS
The limitations are as follows:

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

I did not have complete knowledge about the different policies of the
government that are set for the betterment of the employees which the
companies should follow.

There was some biasness in response of the HR manager towards his


company.

The company could not disclose much of the confidential matters of their
policies and procedures.

FINDINGS
The findings are as follows.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The objective and purpose of the department and the organization should
match and in case of AIL also it matches.

As per the companys act the companies should have an HR manual which
the AIL does not have.

The employee turnover ratio in the company is high. Which the company
should take in notice and keep a proper record of it.

The company has good recruitment and selection procedures for the
selection of the candidates.

The training given as per schedule to the employees.

As per the companys act the company should have a job description of each
and every employees which is not proper in the AIL.

Employee development is only by training and not by transfers.


The performance management system is not properly managed. The
employees are appraised once in a year.

The company is committed to ensure sound safety, health and environment


(SHE) performance related to its activities, products and services. The
company is taking continuous steps and also developing environment
friendly processes for the effective resource management with specific focus
to energy, water and basic raw materials.

The company is committed to strengthen, pollution prevention and waste


abatement practices and strives to provide a safe and healthy environment.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The employee safety is the biggest importance for AIL which is given most
preference and they do very satisfactorily. AIL has ensured safety and health
of its employees.

The relationship between the management and the employees are good as the
directors record their appreciation of the support and co-operation of all
employees and count them for the growth of the company.

The documents and forms are available in AIL and they are properly
maintained by the company.

RECOMMENDATIONS
PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

The AIL does not have any HR employee manual.


manuals covering all policies

So AIL should maintain

Job descriptions exists in AIL but they are not reviewed regularly. AIL should
concentrate on reviewing those policies as for a new positions job descriptions
should be readily available at the time of induction training given to the new
employees.
Though the turnover rates of employee are not high the company should
monitor and keep a proper record of the turnover of employees.
AIL should set up an appropriate performance appraisal policy and procedure
once in 3-4 months to ensure that all employees understand their job
responsibilities and objectives.
The compensation levels should be monitored and reviewed regularly by the
AIL. AS PER THE COMPENSATION ACT 1956 the company should review their
compensation levels regularly
AIL does not have any policy for the employee violating the regulations and
policies of the company. So the company should develop some disciplinary
policy to avoid violation of rules & regulations.
There should be a grievance solving procedure in which the employees can
lodge complain or grievance to their superior or HR Manager.
The AIL should provide the employees with transportation facilities. For the
employees convenience.

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

BIBLIOGRAPHY
KOTLER KELLER, MARKETING MANAGEMENT
PRENTICE HALL, NEW DELHI, 12TH EDITION 2006
ANNUAL REPORT OF THE COMPANY 2005-2006
HUMAN RESOURCE MANAGEMENT
K ASHWATHAPPA - 4TH EDITION
WEB SITES
o http://www.hraudit.inc
o http://www.amanet.org/books
o http://www.e-hresources.com
o http://www.hr.uwa.edu.au
o http://www.explorehr.org
o http://www.jjkeller.com/resourcecenters/hr/home.htm
o www.aartigroup.com

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

AARTI INDUSTRIES LIMITED (HUMAN RESOURCE AUDIT)

COMPANY NAME- REGISERED AS: _________________________________________


TRADING AS: ___________________________________________

COMPANIES URL- _____________________________________________________


NAME OF THE PERSON- _______________________________________________
DESIGNATION-_______________________________________________________
CONTACT- CELL NO: __________________________________________________
EMAIL ID: ________________________________________________

ADDRESS OF THE COMPANY - _________________________________________


___________________________________________

TYPE OF COMPANY- __________________________________________________


TOTAL NO OF EMPLOYEES- ___________________________________________
STAFF (_______________)

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED


OPERATOR (___________)
CASUAL (______________)
CONTRACTOR (_________)

DEPARTMENT MISSION
______________________________________________________________________
______________________________________________________________________

The overall objective or purpose of the human resources department within the
organization to the organization's overall mission is linked or not?
YES (

NO (

NO (

Does the company have formal HR manual?


YES (

Are all he key policies covered in the manual?


YES (

NO (

Working hours of the employees? ____________________


Overtime hours? ____________________
What is the official retirement age? ________________
Does the company offer education assistance to the employees children?
YES (

NO (

NO (

Does any employee work from home?


YES (

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Is the turnover rate high than expectation?


YES (

NO (

PLANNING Do you know your employment needs beyond the current year?
YES (

NO (

Have you engaged in a strategic planning process to clarify your staffing


needs?
YES (

NO (

STAFF DEVELOPMENT
Do you have a way to identify the employees development needs of your
employees? ( e.g. surveys, reviews, performance management)
YES (

NO (

Do employees in your work area get the development they need to do their jobs
effectively?
YES (

NO (

Do you monitor the results of employees development activities in order to


assess their effectiveness?
YES (

NO (

Are new employees offered mentoring support?


YES (

NO (

RECRUITMENT AND SELECTION Is the selection process transparent, equitable, based on merit, and
appropriate?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES (

NO (

Before filling a position do you identify the skills, qualifications and behaviours
needed to meet your objectives?
YES (

NO (

Are new employees provided with a comprehensive induction?


YES (

NO (

NO (

NO (

NO (

NO (

Do job descriptions exist?


YES (

Are job descriptions up to date?


YES (

Are applicant references checked?


YES (

Are turnover rates monitored?


YES (

Is the selection procedure clearly told to the candidates?


YES (

NO (

LEAVES Total annual leaves _________________________


Total sick leaves ____________________________

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Privilege leave __________________________________

EDUCATION, TRAINING, AND DEVELOPMENT


Do you provide performance or skills improvement training?
YES (

NO (

Do you utilize both internal and external resources for training?


YES (

NO (

Does the training include expertise in assessing education, and development


needs?
YES (

NO (

NO (

Are seminars held in the company?


YES (

Do you offer employee in house training by the companies employees only?


YES (

NO (

NO (

Do you offer external training source?


YES (

Benefits
Does the company provide the employees with Insurance benefits?
YES (

NO (

Does the company provide the employees retirement saving plans?


PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES (

NO (

Dos the company provides the employees with the loan facilities?
YES (

NO (

Compensation
Are compensation levels monitored and reviewed?
YES (

NO (

NO (

Is there a formal pay structure?


YES (

Is the compensation structured reviewed regularly?


YES (

NO (

NO (

Is working time documented?


YES (

Are paid time off (vacation, holidays, etc) structures developed?


YES (

NO (

Is the compensation plan communicated to all employees?


YES (

NO (

Are appropriate payroll withholdings performed?


YES (

NO (

NO (

Are injuries/incidents investigated?


YES (

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

Is follow-up remediation performed where appropriate?


YES (

NO (

NO (

Is contact made with medical providers?


YES (

Are insurance premiums and competitive quotes reviewed on a periodic basis?


YES (

NO (

Is the workplace environment maintained with safety in mind?


YES (

NO (

NO (

Is bonus given annually?


YES (

Are compensatory administrative costs included in the budget?


YES (

NO (

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITY


Do all your employees receive fair and equitable treatment?
YES (

NO (

Are supervisors and managers trained in anti-discriminatory practices?


YES (

NO (

Are employment practices in line with the various anti-discrimination laws?


YES (

PERFORMANCE MANAGEMENT
PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

Are probationary employees appraised regularly?


YES (

NO (

Are employees clear about what is expected of them in their work roles?
YES (

NO (

Do employees have access to support and assistance for improvement if their


performance is less than expected?
YES (

NO (

Is there a system for performance evaluation?


YES (

NO (

Does the system check for effectiveness of the evaluation?


YES (

NO (

NO (

NO (

Is quality and quantity of work evaluated?


YES (

Is performance tied to compensation?


YES (

Is there any poor work performance policy in the company?


YES (

NO (

Is there any performance appraisal policy and procedure?


YES (

NO (

EMPLOYEE RELATIONS
Is there a positive climate in your work area where employees are motivated in
their work?

PRAGATI SHARMA

AARTI INDUSTRIES LIMITED

YES (

NO (

NO (

NO (

Does the company have union?


YES (

Is there any grievances solving procedure?


YES (

Are the communication channels between management and employees in your


work area sufficiently consultative so that disputes are avoided and effective
problem solving is fostered?
YES (

NO (

Are you comfortable working with the companies disciplinary measures and
grievance procedures?
YES (

NO (

NO (

Are workplace policies flexible?


YES (

Are disciplinary actions for violating workplace policies flexible?


YES (

NO (

Is there a process for employees to lodge complaints?


YES (

NO (

Are there a variety of individuals to whom employees may lodge complaints


(supervisor, HR representative)?
YES (

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

SAFETY AND ENVIRONMENT


Is there any non-smoking policy?
YES (

NO (

Do employees participate in regular safety and health training programs?


YES (

NO (

Are workplace accidents, near-misses, injuries, and illnesses reported and


investigated?
YES (

NO (

Are measures in place to prevent thieves from entering the grounds or


buildings?
YES (

NO (

Is bright, effective lighting installed indoors and outdoors?


YES (

NO (

Are measures in place (access badges, traffic control, etc.) to keep


unauthorized persons from entering the facility through normal entrances?
YES (

NO (

Is there a reliable response system in place in the event an alarm is triggered?


YES (

NO (

Are employees encouraged to promptly report incidents, and suggest ways to


reduce or eliminate risks?
YES (

Do you maintain OSHA?

PRAGATI SHARMA

NO (

AARTI INDUSTRIES LIMITED

YES (

NO (

NO (

From how many years?


YES (

DOCUMENTATION AND INFORMATION SYSTEMS When operational changes are introduced into your work area do you take into
consideration the impact on employees?
YES (

NO (

Are documents regarding employees kept for their required duration?


YES (

NO (

LIST OF DOCUMENTS AND FORMS YOU KEEP WITH YOU ALWAYS FOR
HE REVIEWING AND TO SHOW THE AUDITORS

PRAGATI SHARMA