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


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

INDEX No. 01 02 03 04 05 06 07 08 Particular General Information Personnel Management Marketing Management Finance Management Future Plan Achievement Conclusion Bibliography Page No. 05 27 51 66 87 89 91 93 4 .

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01 02 03 04 05 06 07 08 09 PARTICULAR Name & Address of the company Present managing body History & development of the unit Size of the unit & form of organization Manufacturing processes& types of products Organization structure with chart Time Keeping System Employees and Welfare services Contribution of the unit to the industry PAGE NO. 07 08 11 12 14 19 21 24 26 6 .INDEX NO.

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


MODANI MR. BAWALA AUDITORS Khimji Kunwarji & Co. K. P. D. Mumbai OTHER BRANCH AUDITORS K. SOMANI MR. D. S.) _ SR. B. K. JOSHI MR.) _ SR. K. G. President (Finance & Comm. C. MARSIMHA RAO – Group executive president _ President _ JT. Mumbai S R Batliboi & Co. Vice President (Pro. SURESH MR.EXECUTIVE RAYON DIVISION MR. AGARWAL SHRI R. Vice President (mkts) _ Vice President (HR) ADVISORS SHRI M. I. Mumbai Delaitle Haskins & sells. Aiyer and Co. V. P. K. MAHESWARI MR. BHAREJA SHRI S. Bangalore 9 .

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

Ltd. this plant was set up for manufacturing viscose filament yarn. The regular production of rayon yarn was started on 27th Sep 1963 while commercial production was started on 2nd Oct 1963. Company develops their plant in different states of India. On 13th April 1963 Company took its trial production.” After that the company is the Adyta Birla Group is the no. 11 .HISTORY & DEVELOPMENT Indian rayon factory was established in 1956 by MR. 2 business group in Indian. The company was incorporated under the company act 1956 on 26th Sep.” Named it become “Indian Rayon and Industries Ltd. As a result of strike and chaos with in the unit the present management is Birla Group took over the company on 18th 1966 due to expansion. 1958. 1956 & company was given business commerce certificate on 13th Feb. MANOJBHAI VAIDYA. Late prime minister SHRI LAL BAHADUR SASHSRI laid the foundation stone of this unit on 21st June 1959. “Indian Rayon and Corporation Pvt.

” Is largescale industry. because it covers all the feature of heavy industry like. huge production cycle and also uses heavy and costly machinery. Hence it quite natural that this industry require large number of persons.SIZE & FORM OF ORGANIZATION The size of “Indian Rayon & Industries Ltd. and they issued at public issue.” is public limited company. 12 . so it can be said as heavy and large scale industry. 1956 under the company’s act 1956. The IR & IL is capital oriented because most of work and its production is very large. We can say that this unit is heavy industries. This company was incorporated on 26th Sep. It has large amount of capital. “Indian Rayon & Industries Ltd. thus the production process is also long duration.

The IR & IL consist five top-level management:General Management Personnel Management Marketing Management Production Management Financial Management Here. 13 . The position including on horizontal lines as per relationship. each department has his department heads. The organization adopts departmentalization.

2. Sweden & Malaysia. For producing rayon yarn raw material is very important. 3.Bamboo (India) 14 .Spreell (Canada) . 4. The Seat of wood pulp are made of cellulose from the following trees:. Wood Pulp Caustic Soda Carbon Bisulphate Sulphuric Acid About 90% of the above raw materials are available from domestic market and rest of 10% of raw material is imported from South Africa.MANUFACTURING PROCESS & PRODUCTS The main product of IR & IL is viscous filament rayon yarn (VFY). Canada. which are as follow:1.Eucalyptus (South Africa) .

7. 6. 4. Conversion of cuboti cellulose into sodium cellulose xanthenes Conversion of sodium cellulose xanthenes into viscose The process is carried out in 8 steps such as:1. Conversion of Wood Cellulose into cuboti cellulose (maximum of wood pulp with NAU) 2. which are as under:1. 3. Filtration Caustic Preparation 15 . 8. 3. Steeping Pressing Shredding Aging Xantharation Dissolving Repenting. 2.The Process is carried out in the following steps. 5.

The yarn is through against the side of this rotation pat when it is laid in the form of the cake because of the channel depending on the speed of the revolving pat.The production process of the VFY can be described in the following section:* Viscous Selection:In the section process from wood pulp to viscose is done means Viscous manufacturing. 16 . * Spin Bath Section:This viscose is expiated through the fine holes of get into coagulation bath of sulphuric acid and slot which neutralize than alkaline content of the vicious and regenerated the original cellulose of continuous filament. * Spinning Section:This section is also called as “cake” formation department. * Textile Section:The cake is now ready for winding in the form of cones.

* Packing Section:After winding the cones. and thus all the excess liquid is removed and cakes are ready for coning. washing room of the cake. these are graded by visual inspection now they use cardboard for packing because it is easy to handle and taken less weight then wooden box on box the full information is printed. 17 .e. E. D. when the cake is burn in the opening part it in full of acid and relatively too much weak. A. It is started in very humid chamber. C. grade and weight Registered trademark of the company Colors of cones Name of the party to whom the goods are dispatched. The cakes are washed through many types of water like water etc. Date packing Quality. B.* After treatment Section:After washing section i.

which are needed in the production of the yarn. Some are mentioned here:Apple green Black. The company produces the yarn of more than 30 colors. Blue Green Golden Yellow Lemon Yellow Maroon Red Super White Metal Brown Golden Brown etc. They produce the following products. 18 . Sulphuric acid Carbon disulphide Sodium sulphet The yarn used to produce cloth.PRODUCT:As we know the main product of the firm is viscose filament yarn as subsidiary products.

this department is the top accountable person of this department. With a view to decentralizing of authority IR & IL has adopted well-balanced line staff type of organization to manage day-to-day activities.ORGANIZATION STRUCTURE WITH CHART This department has full responsibility. This department is answerable to the managing director. The authority line of the department flows from top to the bottom and responsibility from bottom to the top. authority and accountability of any task related to the production. In short. The chart of the organization of IR & IL is as under:- 19 .

Executive President Production Department Engineering Department Commercial Department Administration Department HRD Department Time Office Viscose Maintains Finance Raw Material Spin bath Electrical Share Legal Welfare Spinning Instrument Store & Purchase Sales Labor Office Bardhana Personnel Internal Audit HRD After Treatment Textile Chemical R&D Estate Quality Control Security 20 .

TIME KEEPING SYSTEM The Aditya Birla nuvo Ltd. When employees enter in the gate. Out of this six machines are at the gate. many workers given attendance slips also in the system they must fill this slips also at each and every time of their entry as well as the register collect the data through computers and their salary and wages prepared from this collected data. The time keeping system of Aditya Birla Nuvo Ltd. it must punch the card into machines and at the time have existed also. Includes use of:Punch card system:All employees including all the staff member and workers have been issued punch cards. one is at HRD department. 21 . Attendance Registers:Time officers keeps attendance registers. The company has installed computerized time keeping system. There are 7 machines for punching and connected with computers. Holds efficient time keeping system.

22 .12:30 pm to 01:00 PM Thus for each and every employees working hours is eight hours. They are as under:- Shift A B C Time 07:00 AM to 03:00 PM 03:00 AM to 11:00 PM 11:00 PM to 07:00 AM General Shift: .Shift Timing:There are 3 shifts at Aditya Birla Nuvo Ltd.08:30 AM to 05:00 PM Lunch Break: .

3. Has presided the leave benefits for two categories of personnel:Leave for permanent Labor:20 days earned leave 10 days causal leave 20 days sick leave (10 full days) Leave for staff categories:30 days privileged leave 10 days causal leave 10 days sick leave Over Time:The over time payment is double than the usual wage payment Other Benefits:Time officers also perform other duties like 1. Loan. 2. 23 . advances to employee Provident funds Life insurance polices etc.Leave Facility:Time officer of Aditya Birla Nuvo Ltd.

They provide housing board house at a subscribed rate at the law installment system following 20 years of time the IR & IL provides ownership of such hoses to the workers. GANATRA SIR. staff and officers.EMPLOYEES WELFARE SERVICES IR & IL provided various services to the employees or who serves the origination. Medical Facility:There is separate dispensary and MBBS doctor. Canteen Facility:There is canteen facility at IR & IL at a very cheep rate. 24 . they provide 25 paisa tea. Milk Facility:The IR & IL provides 500 grams of milk bag to its workers for the energetic work. and 100 paisa snacks etc. There is separate canteen for workers. where they get snacks and tea at cheap rate. Quarter Facilities:The IR & IL provides quarter facility to its workers & staff member. checks the patients not only but also their family and also provides medicines at cheapest rate. DR.

School Facility:The IR school at veraval has there out standing name in the entire Gujarat because there is sport’s team. sports organized by IR & IL for develop their employees and they are also given monitory reward in return to them. Cultural and entertainment programmed. VRS Scheme:This facility can be given by IR & IL to their employees and 370 employees also take benefits as these scheme. swimming pools are provided by IR & IL. club facility.Uniform Facility:In the IR & IL there is uniform to every person who secures the organization and there is unique uniform to everyone. Pension Facility:It provides pension facility to its employees after retirement. 25 .

CONTRIBUTION OF THE UNIT When we consider the contribution of the unit is has get up level position in manufacturing of 120-deener yarns. Group manufacturing Rayon yarn century Rayon. Grassim Rayon. 26 . In export market contribution of their unit is very well in Indian market 3 unit of Birla. There is monopoly of producing 200 diner yarns. Kindalco Rayon these 3 unit cover about 75% of the total market.

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INDEX NO.I. Selection & Induction Wage & Salary Administration Training & mgt development programmers Promotion & Transfer Policy Job Description Performance Appraisal System Working of E. scheme Study of provident fund scheme Grievance handling procedure & working of trade unions 28 .S. 01 02 03 04 05 06 07 08 09 10 11 12 PARTICULAR Introduction PAGE NO. 29 30 31 33 38 39 41 43 44 46 47 48 Organization of Personnel Management Manpower Planning Requirement.

sociological and ethical components” hence there is need of management of human resources in order to have proper planning. It is the manpower that operates the machines. The HR department is divided into two divisions:Human Resources Department Training and Development 29 . independent and inter acting physiological. directing and controlling in order to achieve individual and organizing goal.INTRODUCTION Human Resource is the great assets of the business enterprise. But “Human factor refers to whole consisting of inter related. organizing. staffing. With reference to Aditya Birla Nuvo Ltd. Process the raw material into finished products.

Manager Community Labor Office Manager Labor Manager SR. R. Officer Time Officer SR. Officer 30 . Manager Welfare DR. D.ORGANIZATION OF PERSONNEL DEPARTMENT Personnel Department Vice President Personnel General Manager Chief Manager H.

Manpower planning is the process of assign the right number of people and right kind of people at the right place at the right doing work for which they are economically most useful.MANPOWER PLANNING Manpower is key economics resources. 31 . which should demand the same attention from the company that it gives planning at finance. raw material. production. equipment. a manpower plan is necessary at any organization to know about the posting of the prospect personnel and their skills. A manpower planner function should be:To indicate the manpower constraints on company policy for the future. sales and profit. The interpret production and sales forecast in terms of manpower requirement. which would future result into training programmer.

Importance of Manpower Planning:efficient action replicated The knowledge of each individual can not be Only people can spread knowledge resources Individual knowledge is the staffing point for The executive sources of knowledge for an It is only people who can convert knowledge into across the company organizational knowledge organizational and people 32 .

they are as under:Within org.RECRUITMENT & SELECTION “Requirement is a process of searching for prospective employees and stimulated and encouraging them to apply for jobs in an organization. permanent workers Badly or temporary workers Trains Apprentices Causal Applicant Employees’ recommitment of trade union Labor Contractors 33 .” . These are stages of requirement process for blue-color worker.e.EDWIN FLIPPO Requirement Process:Requirement process for blue-color worker is called traditional method. i.

Selection is the process to choose he substitute candidate by respecting or excluding unsuitable. Selection is also negative process. In selection some employees are particular job but many employees are rejected. The present split up to worker & staff IR & IL is given below:- Permanent worker Badly Worker Apprentices’ worker Staff Worker Total 2817 850 77 612 4356 34 .If any worker remains absence or leaves the job and it become possible to transfer any other worker in the vacancy if the worker dies than as per vacancy available to his son is given to “son of the souls” is requirement labor. The causal worker is employed for an occasional work.

The worker is divided into for categories:Visa Permanent Badly Temporary 35 . which makes the arrangement for the required manpower.Staff Planning:Aditya Nuvo Ltd. such importance issue are:Comparable perks Top mgt commitment Recognition in organization Clear goals Higher positive job Manpower Planning for Worker:All the department need additional requirement of manpower has to contact the personnel. Discuss various aspect related to the staff personnel which hold them into the organization. Every month the personnel department issue personal requisition from the all department and this forecast its manpower demands of each department accordingly the requirement are made.

The performance of are candidate in both written test and oral test is given base for selection.The badly worker is a substitute for the permanent worker in the absence of the entire permanent worker. The temporary worker is employed for a limited period for a temporary work. at the time of selection physical fitness past experience. in& ir arranges a written test and it is followed by personal interview. The selection employees are taken on the period of six month or twelve month all the employer if Found suitable during the period are chosen during the finial selection and gets permanent job. honesty. 36 . etc are given importance. For the worker it is made by supervision and welfare officers. For technical staff and administrative person.

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

There are two systems by which wages to be paid to the worker:Time wage system Piece wage system The worker can be divided into three diff. Wages and Salary are given to employee as reward for they contribution to production process. Usually. types:Casual Temporary Permanent The IR & IL gives good rate of salary to the staff & worker. administration and professional employees white color workers.WAGE & SALARY ADMINISTRATION Wages and Salary administration refers to the establishment and implementation sound policies and practice of employ compensation. wages refers to hour’s rate paid to such group of production and maintenance employ whom we call as blue color workers while on the other hand salary refers to monthly paid to decrial. 38 .

C-B MMORIA Training for the officers:For the success of business training is important.TRAINING & MANAGEMENT DEVELOPMENT PROGRAMME “Training is an important aspect of personal which increase the knowledge and skill of a worker for doing specific job. Company has to give training to the officers so they can match with new technology. Training for the workers:The HRD department prepare schedule for the worker in need of training to develop the job main purpose of the company is to give knowledge about new technology. so IR & IL giving good training facility to their officers.” . 39 .

IR & IL gives good training to the supervisor. Training for supervisors:Supervisor plays a very vital role in the organization and supervisor is also important for industrial piece so supervisor should be trained for their work by increasing workers efficiency supervisor can increase production so by this ways company should reach to the goal by the help of supervisor. good conduct & job responsibility. 40 . Improving the skill knowledge of workers towards To give technical knowledge & safety measure quality of products. Discipline. Operating the working programmed.The main purpose of the training is as under:training. supervisors are trained under the guidance of the chief executives of the company.

One very well aware of company’s policy and production procedures in terms to motivate them. Employees are prompted within organization in terms of vacancies or creation of new post.” Promotion is given after three or four years on the basic of disciplinary action and by performances appraisal system. 41 .PROMOTION & TRANSFER Promotion:“A Promotion is the transfer of an employee to a job which pays more money or one that carries preferred status. Adopted to take the advances of the employees. Aditya Birla Nuvo Ltd.

” Aditya Birla Nuvo Ltd. Runs various units located at different places within the country. responsibility.Transfer:“A lateral shift causing movement of individual from one position to another usually without involving any marked change in duties. 42 . sometimes some workers are transferred from one department to another because of physical fitness problem. skills needed or compensation. yet under this unit transfer practices not followed.

IR & IL the duties and responsibility of administrative department are collected through job description are as under:Observation of employees at the first time at work Discussion with department heads and outside experts. At managerial level In this unit when managerial level person is selected following is the information given to them:Nature of job Duties & Responsibility Job summary Position & Status Working condition 43 . duties. It is a process of giving information to candidates about his status. responsibility etc.JOB DESCRIPTION Job description means to give the information and guidance to candidates about this particular job for which he has been selected.

” In IR & IL motivates staff by performance appraisal.PERFORMANCE APPRAISAL SYSTEM It is the process of evaluation the performance and qualification of the employee in terms of the requirement of the job. Is carried on three ways:Motivation:“The emphases industrial psychological has shifted form the studies of the isolated individual and physical environment to the consideration of motivation and morale. example their regularity work. and their honesty an also such things are being kept in mind. IR & IL motivates staff by performance appraisal. 44 . Performance appraisal of Aditya Birla Nuvo Ltd. every staff member recognize his work and he always tries to do better work and effective work if his work is recognized. for which he is employed.

In IR & IL employees suggestion are invited and then possible suggestion are put into the action. persons who suggested the suggestion are informed reasonable for implementation.Quality circle:Quality circle is a group of workmen working voluntarily for improvement in their total quality of work. 45 . practical suggestions are awarded. The basic objective is help workmen in developing themselves there are 36 quality circle in IR & IL. Suggestion Scheme:It is a process of inviting suggestion from employee to motivate employees by involving in the organization to development and improvement of the company.

So it can be said that IR & IL allows the law of government of Employees State insurance. 46 . Insurance is provided to the worker. If accident accrue on the job to the workers. if any kind of illness is there two monthly is used by the company. worker can get salary with work are to two months according to this shame. I. he is reserved monthly is given him all from the insurance. It is necessary in all the companies according to 1948 companies act. I. the company makes the dedication of salary of the worker every month. SCHEME E. means employees states insurance.WORKING OF E. S. S. there is no ESI scheme but every employees are insured in oriented insurance company.

The provident fund scheme of the company follows law of 1955 thus at last when the employees retire he get all the amount. Thus the employees can get loan the amount of provident from and can withdraw at required time incase for marriage. the provident fund is compulsory saving from the salary of the employees. In this scheme personal department is responsible as whole ill which 12 % of amount has been reserved as provident fund out of basic plus variable clearness borrow from provident fund allowance. sickness. house loan etc.STUDY OF PROVIDENT FUND SCHEME Provident fund scheme as per rules regulation of the government. 47 .

it should be written and submitted to the next higher authority. believe or even feels to be unfair. In Aditya Birla Nuvo Ltd. In case if the complaint is against him. unjust or inequitable. such as section head. The workman will take his grievance in oral of written to his immediate superior. Have special producer. airing out of anything connected with the company which and employee thinks. 48 .” To handle and solve such grievance the Aditya Birla Nuvo Ltd.GRIEVANCE HANDLING PROCEDURE & WORKING OF TRADE UNION “A grievance is any discontent or dissatisfaction. whether valid or not. whether expected or not.

if the workers are not satisfied or reply is not received within seven working days. the copy is forwarded to grievance committee. he has to forward to the manager of the department.- If the decision of his immediate superior or the next higher authority is not satisfactory. 49 . the matter will be included in the agenda for discussion at the next meeting of the grievance committee. The management brings out the situation to the grievance shift. If grievance committee fails to solve the grievance.

50 .Trade Union:“A trade union is any combination of persons whether temporary or permanent. 3. 2. Bharatiya Mazdoor Sangh. Indian Rayon Karmachari mandal (IRKM) – Rayon Mazdoor Sangh (RMS) – Associated with Indian association with Hindu Mazdoor Karmachari mandal. Indian Rayon Employees Union (IREU). preliminary for the purpose of regulation of the relation of workers and employees or between worker and boss and for improving restrictive conditions on conduct of any trade on business and includes the federation of two or more trade union.” Aditya Birla Nuvo Ltd. Has more than 2500 employees in the origination and for the state of protection of their rights that have formed there are three trade union:1.

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53 54 56 57 59 60 61 62 63 64 65 Marketing Department Market Segmentation Product Decision Price Decision Advertising Sales Promotion Channel of Distribution Marketing Research Activity International Market 52 . 01 02 03 04 05 06 07 08 09 10 11 PARTICULAR Introduction Marketing Objective Organization of PAGE NO.INDEX NO.

Marketing people involved in marketing ten types:good services experience events persons place properties organization information ideas 53 .” Marketing IS comprehensive term and it includes all resources and a set of activates necessary to direct & facilities the flow of goods and services from producer in process of distribution.INTRODUCTION “A market any be considered as a convenient meeting place where buyers and sellers gather for exchange of goods and services. Marketing is typical seen as a task of creating. promotion and delivering goods and services to consumer and business.

internal To ensure cost efficiency.MARKETING OBJECTIVES operations - To have highly delighted customer base To develop committed. supplier relationship sales and reduced logistics long term marketing strategies adherence of safety and environment guidelines product customer and satisfy old ones 54 . profit oriented To ensure transportation of goods in strict To make better and quality product To provide a successful distribution of consumer To sell their product in new areas to make new customer. profitable marketing To maximize relation through focus on direct To develop customer centered. target oriented.

Marketing objective:- department’s process to meet Market environment analysis Strategic planning and budgeting Product delivery alignment System improved Customer satisfaction assessment 55 .

It can be said that marketing organization consists of number of position with number of people. Manager SR.ORGANIZATION OF MARKETING DEPARTMENT Organization is a form of co-operative EFFORTS. VICE PRESIDENT Raw material & Storage General Manager DR. as single person cannot handle even marketing activity. Officer Sales & Marketing General Manager Manager Sales Manager Transportation SR. Marketing organization is important to the firm. Officer 56 . Manager Legal & Position SR.

2. People Oriented Approach Product Oriented Approach IR & IL use “people oriented approach” method for segmentation. the principle of “divided & rule” there are two approach regarding market segmentation.” In market segmentation. etc. geographical.MARKET SEGMENTATION “Market segmentation consists of taking this total nitrogenous market for the product and dividing it into several sub-market segments each of which tens to be homogenous in all the significant aspect. which mostly used:Mass marketing-one product Producing marketing-two or more product Target marketing-different production The Market follows. 1. 57 . there are three elements. income. Here they clarify the consumer on the basis of location.

which take decision about all products. BANGLORE.IR & IL has its branch at AHEMDABAD. There are different manufacturing companies that consumer and demand for the specific type of yarn of very fine quality. this company has segmented the total market on the basic of product application consumer wise. SURAT. this demand for yarn differs from company to company on the basic of their handloom production so. Chennai and its head office is at Mumbai. 58 .

PRODUCT DECISION The production is any thing that can be offered to satisfy the need or want. to product and incorporate this characteristics into the finished product. The development and introduction of product The modification of the existing products The elimination of unprofitable products “Product planning determines the characteristics of the product best meeting the consumer numerous desire.” IR & IL makes product planning according to the demand of industries and situation and price of product. it has also installed many automatic spindle in very near past. characteristics that add stability. 59 . Production is the most important and tangible component of marketing program. Product decision involves three important considerations. Product is to be satisfied and for which whom the product is meant. Product development includes the technical activities of product research. engineering and deciding. Product planning is also given due importance in IR & IL.

packing. There is generally tendency of consumer that measures the quality of product from its price. All the company fixes prices on the bases of cost of production and change of distribution.PRICING POLICY Pricing determines the utility aspect of the product. The pricing objectives of company are as follow:Return on investment To maintain its market share Price stability IR & IL has not adopt any clear pricing policy but we may say that the mixed policies of the following policies exist in the company Cost oriented pricing policy Demand oriented pricing policy Competition oriented policy 60 . Right price can be determined through pricing research and by adopting the test market techniques. etc. Price is exchange value of the product or service which is always expressed in terms of money.

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

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

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


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

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


66 .

INDEX NO. right debenture issue PGE NO. bonus issue. 01 02 03 04 05 06 07 08 09 10 PARTICULAR Introduction & Objective Organization of finance & account department Financial planning Capital structureFinancial Leverage Capitalization-over & under capitalization Management of fixed assets-capital budgeting Management of working capitalprofitability & dividend distribution Profitability & Dividend Distribution Right issue. 68 70 71 73 74 75 77 81 83 85 67 .

Financial management has under gone many charges. it is said that businessman takes money to make money. Important of finance can’t be measured. we need finance for production of goods and services as well as distribution finance function assures an important role in the business system. actually if you have money and you manage it properly. 68 . this is not true.INTRODUCTION & OBJECTIVES Finance is a life blood of business. you will make more money. it has gained a lot of important over time and success of every business largely depends up to the financial position of the business. Money is universal lubricant. which keeps enterprise dynamic. it is really key info business operation. this means mgt of finance is necessary for all.

3. 2. Financial Planning Financial control Financial decision making Objectives:To produce wealth for the business To generate cost To supply adequate return on investment To protect business from risk and uncertainty 69 .There are three key elements for process of financial management:1.

ORGANIZATION STRUCTURE OF FINANCE DEPARTMENT SR. VICE PRESIDENT (FINANCE) GM FINANCE SR. MANAGER (ACCOUNT) Assistant Manager Cash Assistant Manager Creditors Assistant Manager Salary Officers Officers Officers Officers Officers Officers 70 .

financial mgt has to make plan for capital investment and also for working capital for the ensuring year. IR & IL the task of financial planning is divided into 3 parts:Top Level:This level prepares plans pertaining to long term requirement of the form its capital expenditure permanents short term needs inflow and outflows. The financial planning is the responsibility of the top level mgt. The success of an organization always depends upon the proper planning refers to make plan about finance that how much money is required how is collected. 71 .FINANCE PLANNING Finance planning is one of the most an aspects of the financial manager’s job. it is also essential that each financial act is carefully planned before any action as the success of failure of the firm depends totally on it.

Middle Level:This is considered by the virtually routine finance plan. Lower Middle Level:In this level generally concerted with the listing and calculation of outflows. 72 . the whole process at this level is divided into 2 parts:Cash Flow Cash Outflow In IR & IL unit financial decision are very crucial head officers at Mumbai plan for new project of the company. this level is generally concerned with the listing and calculation of outflow.

031.50 2.21 15.31 3.36 15.084.11 1. preference share and equity share capital. (IN CRORES) 2007 93.21 479.CAPITAL STRUCTURE FINANCIAL LEVERAGE Capital structure refers to the composition of capital in other words the capital structure of the company refers to make its capitalization.134.24 2.071.00 2006 83.00 73 . PARTICULARS Share Capital Reserve & Surplus Secured Loans Unsecured Loans Preference Share RS. Capital structure refers to the fix of long-term sources of fund such as debenture long-term debit.62 760.

Financial leverage is defined as the activity of firm used financial leverage to magnify the effects of firms earning per share.35 353.47 = 2. the degree of fund collected by the firm from outside is called financial leverage.02% 74 . a company can finance its investment by variety of sources such as preference share capital including reserves and surplus. The IR & IL also makes the use of the debt but the following ratio will show the clear picture of it:Financial Leverage = EBIT EBT = 716.FINANCIAL LEVERAGE Financial leverage is also called on trading of equity. the financial leverage is controllable and also completely avoidable leverage.

CAPITALIZATION OVER & UNDER CAPITALIZATION Capitalization means total amount of company’s capital or value of its capital stock. Under Capitalization:A company is said to be under capitalization if its earning is high in relation to its capital investment. The total amount of capital should be enough to meet its present and future needs i. For the company the book value and real value of shares are two main components for assessment of company’s financial position. it must be property.e. which can be calculated a under:- 75 . Over Capitalization:A company is said to be overcapitalization if its earning is less in relation to its capital investment. In other words when the real value of share is less then its book value the company is said to be over capitalization.

of equity shares = 93.78 26.31 + 3031.00 Reason for recreate in value of company:Presence of its various competitors in the market Decrease in the price of yarn and especially chain rayon 76 . 20.24 1.Thus IR & IL is over capitalization:Book Value = E. 00. 6.000 YEAR/EPS 2002/03 2003/04 2004/05 2005/06 2006/07 RS.53 8.12 32. + Reserve & Surplus No.13 5. C.

MANAGEMENT OF FIXED ASSESTS Fixed assets are those. 2007 are as under:- 77 . To manage the fixed assets is that important task facing mgt today because of risk and investment factor the fixed assts are that kind of assets in which risk is for long period of time.A. which are fixed. On fixed assets investment in IR & IL on 31st March. and instrument experts. Fixed assets create problem of replacement IR & IL maintain the plan register in which each detail of every fixed assets are essential moreover it has also appointed C. At least once in a year they check all the assets of the company and certify then as their condition the depreciation of fixed assets company one calculated by diminishing balance method. and listed by a business mgt fixed assets is very important task which mgt has to face because fixed assets have relatively higher cost.

90 1987.11 202.97 199.PRTICULARS Tangible:Land Freehold leasehold Railway Sanding Buildings Cease Hold improvement Plant of Machinery Computer & telecommunication Furniture.41 63.74 100.75 25.20 25. Fixture Equipments Vehicles & Aircraft Livestock Intangible:Entry/ License fees Good will Trade Mark/Brands Software Total & MARCH/07 MARCH/06 13.91 1294.85 3896.84 9.23 61.67 45.99 53.30 - 5.92 78.03 - 367.69 238.11 68.06 26.46 87.79 78 .06 16.70 0.81 2285.61 0.47 15.53 50.68 56.

These benefits may be either in the form of increased revenue or decreased cost. Under takes capital budgeting every year with the help of financial debt on pays back period methodology.CAPITAL BUDGETING The system of the capital budgeting is employed to evaluate expenditure decision. 79 . There is various method of capital budgeting:Internal rate of return Average rate of return Profitability index Pay back period Net present Value Aditya Nuvo Ltd. which involve current outlays but are likely to produce benefits over a period of time longer than one year.

at present the installed capacity of plant is 1500 tons/annum. the decision taken by the unit base on pay back period? 80 . Is replacement and modernization of machine and fixed assets and business expansion by adding new machine and technology. it constantly tries for its success. the main objective of Aditya Birla Nuvo Ltd. At present.The company always aims at increasing and expending the installed capacity of rayon yarn production.

it is an important integral part of financial mgt as short term survival is prerequisite for long term success. It is operating cycle of working as per balance sheet of IR & IL. Working capital management is concerned with the problem that arises in attempting to manage the current assets. March ‘07 81 .MANAGEMENT OF WORKING CAPITAL Working capital is concerned with management of current assts. Working capital of Aditya Birla Ltd. current liabilities & the interrelationship that exists between them. The term current assets refer to those assets which in the ordinary course in cash within one year without under going a domination in value & without disrupting the operation of the firm. The operating cycle can be said at the heart o the need for working capital.

13.27 In CRORES CRORES in advance Interest loans Investors education protection fund Other liabilities Provision For:Taxation Proposed divided Corporate tax on dividend Retirement benefits TOTAL 1683.04 In Current Assets Inventories Sundry debtors Cash balance Interest accrued investment on bank RS. 558.94 but not due on 3434.04 287.36 82 .Current Liabilities Acceptance Sundry Creditors Advance customers Income received from RS.32 3.24 accrued 28.47 Loans advance 1058.37 990.00 74.78 129.64 2.791 1141.61 0.93 815.83 10.04 2.

5 41.75 51.32 83 . The IR & IL has started to distribution dividend on e share from 1977 the progress can be studied from the following chart:- YEAR 2001-2002 2002-2003 2005-2006 2006-2007 DIVIDEND 33 37.PROFITABILITY & DIVIDEND DISTRIBUTION Profitability is a measure of efficiency and the search for it provides on incentives to achieve efficiency profitability also incentives to achieve efficiency profitability also indicates public acceptance of the product and shows that the firm can product and shows that the firm can produce competitively.

94 crores each investor has invested in company with a view to earn a reasonable rate of dividend:- CHART 1997 1998 2002 2003 2006 2007 DIVIDEND LINE 67.32 84 . Distribution of Dividend:Company has issued share capital is 44.5 50 33 37.75 51.5 41.8 time approbation and profit increased day by day very progresses.IR & IL being a well dividend company serving with excellent success under Birla mgt excellent competition with turnover of 1990 to 2001 in credit 17.

Right debenture issue:Right issue means an issue. Company issued convertible and non-convertible debentures to receive for cash. 42500 debentures were offered to resident equity share holder on the basic on right debentures per every two equity share holder its aim was to contribute towards long term working condition needs before 6 years.RIGHT ISSUE. RIGHT DEBENTURE ISSUE. BONUS ISSUE Right Issue:IR & IL issued share and debenture to the public. share certificate. board meeting and general meeting etc. transfer. which gives the right to share holder to purchase a share on a fixed proportion prior to other. In 1986. 85 . this department deals with share and debentures by dealing all the matters regarding to the same as a application allotment. so debenture party returned.

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



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

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

yarn and flat yarn etc.


89 .

• National safety award for the longest accident free period in 1987. 1989. 1991. 90 . • First Rayon manufacturing 10-meter rayon to Staff safety award received for award during get ISO 14001 & ISO 9002 certificate. 1990. • National energy conversion for VFY from ministry of textile. • 1987 & 1993. 1987. 1994. 1998 & 1999. 1991.ACHIEVEMENT • National safety award in 1934.

91 .

I would like to give my best wishes to the company and company may have splendid success and glorious achievement. finance.CONCLUSION IR & IL is a heavy industries having sound facility of manpower. 92 . Company has well established marketing and personnel department and the financial condition. machineries and organization. At least.

93 .


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