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Meaning of The Project: Jay Bharat Maruti LTD
Meaning of The Project: Jay Bharat Maruti LTD
The word project has a great important in the development of new thing
idea or technique .The importance of this world becomes specific for
academic purpose. When the study is about management than it
becomes more specifics. Each single alphabet of this world represents
management terms: -
C- It means to “Collect” i.e. to bring together all the relevant thing that
are necessary to make any project effective.
Industry Automotive
Website www.jbmindia.com
JBM group began its engineering activity in 1983 with the establishment of
Gurera LPG gas cylinder limited and entered the auto component industries in
1985 with the inception of SUZUKI AUTO INDIA. JBML is a multi- unit, multi-
product group with extensive and diversified interest in engineering and precision
tooling, dies and facilities spread over different parts of the country. The period
from 1988 to 1995 was a steep rise in the demand of passenger car in India. To
meet this rising demand, JBML had to continually expand its manufacturing
facilities. Because of space constraints a new plant (Plant-2) was set us for the
manufacturing of sheet Metal parts with latest technologies like fully automatic
tandem line from Rovetta of Italy, 5-axis laser cutting machine from Prima of
Italy. This new plant is located approximately 14 kms from Plant-1. Space crated
extra because of this new plant was being utilized by additional business of weld
assemblies like front under body, rear under body for car & exhaust systems for
various models of Maruti. Now this year-2006, company is going to start a new
plant, plant-3 to meet increasing market demand. Driven by a commitment to
customer satisfaction and international standards of quality, JBML has not only
won customer confidence but also industry recognition
09
VISION
Expanding leadership in our business through, keeping pace
with market trends and technology.
HR POLICY
JBML will always keep on striving for the deployment of
competent and efficient employees at all levels to create inculcate and
foster excellent. Working and learning environment; because it believes
in nurturing strength of individuals for developing mutual trust, support
and positive attitude for achieving organization goals to create a world
class manufacturing organization and to remain the market leader in
sheet metal components not only today but for all the tomorrows to
come.
QUALITY POLICY
The policy of JBML is to achieve total customer satisfaction by
delivering products and providing services that meet or exceed their
exacting requirements and expectations and to do so on time and at most
CUSTOMER MANAGEMENT
Customer focus is one of the basic values adopted by the company.
Quality policy revolves around the customer satisfaction. There is
emphasis on understanding the unspoken and meeting the implied needs
expectations of the customer also. Customer satisfaction has been
SUPPLIER MANAGEMENT
The definition of customer in the company is not limited to buyers of
the product. The company treats all its associates as customers in one
way or the other way. Various form set-ups for regular meeting,
understanding, and responding to the suppliers need are maintained.
Major vendors are connected through emails. The information on
vendors and suppliers expectations and needs gathered through these
forms are analyzed and considered by formulating policies and
strategies. Day to day expectations and needs are responded through
the normal communication channel of materials division, purchase
FINANACE MANAGEMENT
Financial management system and policies are directed towards
optimum utilization of financial resources. The approach has been to use
the financial resources for minimizing returns to the company, and in
return to the stakeholder. There is clear-cut laid down rules and
regulation for its transparent monitoring and inflows and outflows of
funds. There is transparent pricing system between the company and all
major customers, so that prices are continuously reviewed and
rationalized in view of any KAIZEN/Cost reduction/VA-VE exercise as
the case may be. It is all that because of this transparent price reviewing
system in existence we have passed on around 20% discounts to MUL
since last five years. The other important stakeholders are banks and
Finance Institutions. The financial policies are in line with the
expectations and high level of commitment to them. The company
ensures the timely payment to entire supply chain partners in time. The
JAY BHARAT MARUTI LTD. Page 15
company has been rated as P1 by CRISIL (one of the best credit rating
agency in India) various currency movements are monitored and
accordingly risks are hedged by forward coverage. The company has
been constantly working on the various financial strategies for reducing
the cost of funds. Conversion of term loan to lease Transactions, By
negotiating the L.C. charges and bank charges have been brought down
to half of normal rates. No commitment charges are paid to the bank.
Due to these measures, the other income on account of cash discount and
interest earned has been to the tune of 221 Lac in 2004. The company
has been able to manage its working capital in efficient manner. The
company is continuously improving its financial system. Baan ERP
System has been implemented. Decisions on all new investment are
based on IRR at the pre-project analysis stage.
TECHNOLOGY MANAGEMENT
In line with vision the company is continually upgrading the technology
to world-class level. Visiting collaborators plants, visiting exhibitions
and regular interaction with customer and different forums gather the
information of new technology. The company has one fully automated
tandem press line, fully automatic laser cutting machine etc. Latest IT
technologies are being used like Baan ERP is used for managing
companies business. Integrated communication system is developed.
SHAREHOLDERS MANAGEMENT
Annual shareholders meeting and board meetings provide useful
information on needs and expectation on them. A shareholders grievance
committee has been formed at director s level. Grievances are reviewed
in board meetings. Shareholders views are captured in one to one
communications, letters also. The company has been giving dividend to
share holders continuously.
REGULATORY MANAGEMENT
All the laws and regulations applicable to the operations are taken care
off. The company has been consciously and proactively ensuring
compliance to all such applicable laws and regulations. There has never
been any challan from authorities concerned with respect to labor laws
and factories act. The company has been rated "good" during the audits
conducted by central excise department during the year 1999 to 2003.
The sales tax and income tax returns have always been satisfactorily
assessed and no penalty was imposed. Company is actively .
SOURCES
PAYMENT
VENDOR SELECTION
NEGOTIATION
INVOICE
SETTLEMENT
PURCHASE ORDER
PERFORMA INVOICE
BILL BOOKING
Bill booking is the process in which all the bills of purchase are booked
and an accounting documented number is generated which can be used
The last step includes the booking of the bill by the Finance Department
so that the final payment can be made to the vendor. The journal entry so
generated is-
GR/IR A/c Dr
The ten digit number so generated by this entry is termed as the MIRO
number.
BILL BOOKING OF
GROUP COMPANIES
ERP is a business tool that management uses to operate the business
day-in and day-out. It is usually comprised of several modules such as a
financial module, a distribution module, or a production module. Each of
these modules shares information coded. ERP that is housed within the
database structures on which the ERP system was helps to break down
barriers between departments within a company.
Then we have to select the Company from here. As soon as we click the
same details appear as that in case of the Group Company and then we
will post the bill.
NOTE:-
In case of freight charges no TDS is deducted but if with freight
charges any other charge is there then TDS is deducted on the whole
amount.
In case of any capital purchase, then it will be debited to Capex
Account.
This is the first step in the booking of clearing & freight bills.
The next step is to fill all the required details like Vendors Code,
Reference, invoice date, etc
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Purchase order
Purchase order is a document which provides the description, quantities,
and prices, discounts payment terms, date of shipment, other terms &
conditions and identifies a specific seller.
TYPES OF DOCUMENTS
GENERATED
(3) INVOICE
A commercial invoice is identifying the buyer and seller, and clearly
indicate the:
Date and terms of sale
Quantity, weight
Type of packaging
Complete description of goods
Unit value and total value
Contents of BOE
Name and Address of Importer
Name and Address of Exporter
Name of the port/ dock where goods are to be cleared
Description of goods
Value of goods
Rate and Amount of Import Duty payable
Other relevant document’s details
PO Number 4000001632
407.
4 INSURANCE 407.00 1.00 00
5 FREIGHT -
1,672,419.
6 TOTAL (1+2+3) 77
16,724.
7 LANDING COST 20
1,689,143.
8 TOTAL (4+5) 97
108,105. 108,105.2 108,105.2
9 BCD @ 6.4 % of 1 21 1 1 -
1,797,249.
10 TOTAL (6+7) 18
215,669. 215,669.9 215,669.9
11 CVD @ 12% OF 8 90 0 12% 0
12 ED. CESS @ 2% OF 9 -
After Online Payment of custom duty, MIRO for custom duty is done in
SAP. Without custom duty MIRO material can’t be received in SAP.
The following entry is generated on custom duty MIRO:-
Custom duty clearing A/C (Non Modvatable) Dr.
CVD clearing A/c (Modvatable) Dr.
To Commissioner of Custom
27500.21*61.1143 = Rs.16,80,686
20
Rate Per Unit Rs.
CIF VALUE
1) ADVANCE PAYMENT
7
5
731.1
2,039,313.2
Royalty:
The royalty fee for a technical assistance taken from the service provider
is typically some percent of either the overall or net sales of the
the business and payment is required each week, month and quarter.
Others:-
1. Reimbursement of Travelling Cost & Hotel Exp’s for Engineers
2. Interest & Principal Repayment of Foreign Currency Loan.
1,180 1,212
1,200
1,061 1,068
1,000
803
800 Net Sales
600
400
200
-
2009-10 2010-11 2011-12 2012-13 2013-14
EBIDTA
120.00
106.07 108.83
100.00 97.05
88.45
83.17
80.00
EBIDTA
60.00
40.00
20.00
-
2009-10 2010-11 2011-12 2012-13 2013-14
50.00
40.00
32.82 32.00 Profit Before Tax
30.00 28.92
27.30
20.00
10.00
-
2009-10 2010-11 2011-12 2012-13 2013-14
40.00 38.30
35.00
30.00
10.00
5.00
-
2009-10 2010-11 2011-12 2012-13 2013-14
180.00
172.30
158.94
160.00
141.21
140.00
125.36
120.00
Net Worth
100.00
92.08
80.00
60.00
40.00
20.00
-
2009-10 2010-11 2011-12 2012-13 2013-14