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Executive Summary
The objective of the study is to study the effectiveness of performance appraisal system over the employees. The first step towards the objective was to identify the research problem under the following heads- units of analysis, time and space boundaries and characteristics of interest. The units of analysis are all the employees of Mirza International Limited. The next step was to choose a research design that would guide the project. A combination of descriptive and exploratory research design was decided upon. The data collection tool used is a questionnaire. The reason for selecting this tool is that it is easy for the respondents to respond to and reduces response errors. Having decided the data collection tool to be used, the first draft of the questionnaire was designed with the help of various books and the valuable notes given by Mr. Kaushik, HR manager, Mirza Int. Ltd. This took a lot of tact and effort since the language of the questions, their sequence, framing and the number of questions was critical to our research. After going-ahead Ms. Shabnam further refine the questionnaire. A sample size of 75 respondents was to be surveyed through an organizational survey. This process took about 25 days. After the survey, came the humongous task of analyzing the data that was collected. This took another 10 days.
Personal interviews in 3 very good organizations were also conducted which gave me very valuable insights for my study.
OBJECTIVES OF THE STUDY

The Objective of the study is to determine the effectiveness of performance appraisal system over the employees in Mirza International Limited and what measures we can take to increase the morale of the employees and to motivate them for work efficiently. The Scope of the study involves:
To analyze that if the employees are satisfied with the present performance appraisal system of the company.
To analyze if the present performance appraisal system of the company helpful in the motivation of employees.
To analyze if the present performance appraisal system of the company is helpful in personal growth of employees.
To determine if the present performance appraisal system of the company is helpful in increasing the morale of the employees.
To analyze if the present performance appraisal system helps to strengthen the relationship and communication between superior subordinates and management employees.
To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.
To analyze if the present performance appraisal system is helpful in reducing the grievances of the employees.
ABOUT THE TOPIC

Managing employee performance is an integral part of the work that all managers and rating officials perform throughout the year. It is as important as managing financial resources and program outcomes because employee performance or the lack thereof, has a profound effect on both the financial and program components of any organization. The Department of the Interiors performance management policy is designed to document the expectations of individual and organizational performance, provide a meaningful process by which employees can be rewarded for noteworthy contributions to the organization, and provide a mechanism to improve individual/organizational performance as necessary. To accomplish these objectives, managers need to identify organizational goals to be accomplished, communicate individual and organizational goals to employees that support the overall strategic mission and Government Performance and Results Act (GPRA) goals of the Department, monitor and evaluate employee performance, and use performance as a basis for appropriate personnel actions, including rewarding noteworthy performance and taking action to improve less than successful performance.
HISTORY OF PERFORMANCE APPRAISAL
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.
As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years age.
Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!
There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal.
In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily.
The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate.
Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified.
The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.
Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.
As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.
PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an
employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.
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OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.
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PROCESS OF PERFORMANCE APPRAISAL
ESTABLISHING PERFORMANCE STANDARDS:

The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in
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measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.
COMMUNICATING THE STANDARDS:

Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE:

The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.
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COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE:

The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.
DISCUSSING RESULTS:
The result of the appraisal is communicated and discussed with the employees on oneto-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.
DECISION MAKING:
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
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METHODS OF PERFORMANCE APPRAISAL
The various methods and techniques used for Performance appraisal can be categorized as the following traditional and modern methods:
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TRADITIONAL METHODS
Essay Appraisal Method:

This traditional form of appraisal, also known as Free Form method involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
Straight Ranking Method:

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
Paired Comparison:
A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
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Critical Incidents Methods:

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur.
Field Review:
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias.
Checklist Method:
The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
Graphic Rating Scale:

In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into
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consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.
Forced Distribution:
To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.
MODERN METHODS
Assessment Centres:
An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are
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judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers are also an effective way to determine the training and development needs of the targeted employees.
Behaviorally Anchored Rating Scales:

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.
Human Resource Accounting Method:

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred
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on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
Management By Objectives:
The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
360 Degree:
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all
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the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.
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Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods. 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
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SIGNIFICANCE OF THE STUDY

The Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes. The main significance of the study is to analyze how much the performance appraisal system of the company is effective for the employees in Mirza International Limited. The other purposes of study are as follows:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
To diagnose the training and development needs of the future.
Provide information to assist in the HR decisions like promotions, transfers etc.
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INDUSTRY PROFILE
After China and Italy, India ranks at the third place amongst the leather production and export countries. With over US$ 4 billion of output, Indias exports value is at an estimate of over US$ 2.4 billion. India is the largest livestock holding country (21% large animals and 11% small animals). The industry employs about 2.5 million people of which nearly 30% are women. It is a source for over 10% of the global leather requirement. Below are the ballpark figures:
ITEM Hides Skins Leather Footwear Leather shoe uppers Non-leather footwear Leather Garments Leather Goods Industrial Gloves Saddlery & Harness
CAPACITY 65 million pieces 170 million pieces 909 million pairs 100 million pairs 1056 million pairs 16 million pieces 63 million pieces 52 million pairs 12.50 million pieces
India stands at a reputed value in view of its contribution to the global leather consumption.
The Indian Leather Industrys export earnings are also of worthy substance in the Indian economy besides offering significant employment scope and contributing to the economical growth of India.
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The export of leather and leather products increased manifold over the past decades. The export increased from Rs. 290 mn in 1956-57 and from Rs. 30760 mn in 1991-92 to Rs. 140007.33 mn in 2007-08.
Today the industry ranks 8th in the export trade in terms of foreign exchange earnings of the country.
Over the years the composition of exports of leather and leather products has also undergone a structural change, from merely an exporter of raw material in the sixties to that of value added products in nineties. At present the value added products constitute about 80% of the total exports from the industry.
A majority of the industrys units are SMEs. Industrial structure, which has been predominantly unorganized and decentralized, is gearing up remarkably. 60-65 % of production comes from small/cottage sectors.
The Indian leather industry is organized as: Tanning and finishing, footwear & footwear components, leather garments, leather goods & accessories (bags, wallets, belts, gloves) and Saddler & harness articles.
Strengths of Indian leather sector:

Own raw material source 2 billion sq ft of leather produced annually Some varieties of goat / calf / sheep skins command premium position Strong and eco-sustainable tanning base & Modernized manufacturing units Trained / skilled manpower at competitive wage levels
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World-class institutional support for Human Resources Development and R & D activities
Presence of support industries like leather chemicals and finishing auxiliaries Presence in major markets Long Europe experience
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HISTORY OF THE COMPANY
Mr. Irshad Mirza (Chairman) Mirzas journey began in the year 1979 with a small tannery for manufacturing finished leather at Magarwara near Kanpur. The company, established by Mr. Irshad Mirza and Mr. Rashid Mirza, was then called Mirza Tanners Private Limited.
The company focused on supplying high quality leather and leather products to the overseas markets and gradually became one of the largest exporters of finished leather in the country. During this phase, Mirza took a significant leap, by venturing into newer areas which were extensions of its existing competencies. The global shoe market was then looking upon outsourcing of leather footwear in a big way. To take advantage of this opportunity, Mirza diversified into manufacturing of shoes. Very swiftly, four state-of-the-art manufacturing units were setup at Unnao and Noida.
Having made a foothold in the footwear business, Mirza quickly reorganized itself by setting up In-house Design and Development studios, Marketing offices and a strong Distribution and Logistics network. After successfully reorganizing itself, Mirza moved a step ahead of others by launching its own brands Red Tape and Oaktrak.
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Having firmly established its product lines and market geographies, the company spread its wings to several other countries through its marketing companies and networking associates. Some of countries where Mirza has a significant presence are U.K., Portugal, South Africa, USA, Germany, France, Scandinavian Countries and UAE.
Today, Red Tape has emerged as the one of the most stylish lifestyle brands available. Through growing scale of operations, the brand has reached markets in USA, U.K., Canada, France, Germany, Belgium, Holland, South Africa, Australia, New Zealand, South East Asia and the Middle East.
GROUP COMPANIES
MIRZA UK LTD. MIRZA HOLDINGS PRIVATE LTD. SHOEMAC LEATHER TECH ENGINEERS LTD. MIRZA AGROTECH PRIVATE LTD. EMGEE PROJECTS PRIVATE LTD. ACHEE SHOES RIVATE LTD. RED TAPE INTERNATIONAL PRIVATE LTD. NEERAJ TRADERS PRIVATE LTD.
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COMPANY PROFILE
Mirza International Limited is a frontrunner in the manufacturing and marketing of leather and leather footwear. Headquartered in the Indian capital of New Delhi, the company markets its products across the globe to countries like the UK, Europe, South Africa and the Middle East, to name a few. The company is ISO 9001, 9002 and 14000 certified, and has a fully integrated in-house shoe production facility backed by a state-of-the-art double density direct injection polyurethane plant, a tannery with its own pollution treatment plant, and a dedicated design studio in London.
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COMPANYS HIERARCHY
CHAIRMAN
M.D.
DIRECTORS
GENERAL MANAGERS
SENIOR MANAGERS
JUNIOR MANAGERS
SUPERVISORS
WORKERS STAFF
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Board of Directors:
Mr. Irshad Mirza, Chairman Mr. Rashid Ahmed Mirza, MD Mr. Shahid Ahmed Mirza, WD Mr. Tauseef Ahmed Mirza, WD Mr. Tasneef Ahmed Mirza, WD Mr. N.P. Upadhyay, WD Dr. Yashveer Singh Mr. Pashupati Nath Kapoor Mr. Qazi Noorus Salam Mr. Sudhindra Jain Mr. Subhash Sapra Mr. Islamul Haq
Company Secretary: Secretary Auditors:
Mr. D.C. Pandey G.M. (Accounts) & Company
M/s. Khamesra Bhatia & Mehrotra, Chartered Accountants Mr. A. K. Srivastava Cost Accontant
Cost Auditors:
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Secretarial Auditors:
M/s. Savita Jyoti Associations Company Secretaries Punjab National Bank, The Mall, Kanpur
Bankers:
Registered Office:
14/6, Civil Lines, Kanpur 208001 A 7, Mohan Co-operative Industrial State, Mathura Road, New Delhi 110044 Kanpur- Unnao Link Road, Magarwara, Unnao-209801
Corporate & Marketing Office:
Works:
Kanpur- Unnao Link Road, Sahjani, Unnao-209801
C-4, 5, 36 & 37, Sector-59, Noida-201303
UPSIDC Industrial Area, Site 2, Unnao-209801 Registrar & Share Transfer Agents:
M/s Karvey Computershare Pvt.Ltd. 17-24, Vittal Rao Nagar, Madhapur Hyderabad-500081
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COMPANY OVERVIEW
Mirza International Limited (formerly known as Mirza Tanners Limited) was incorporated on 5th September 1979. Today, the company has emerged as a frontrunner in the manufacturing and marketing of leather and leather footwear. Headquartered in the Indian capital of New Delhi, the company markets its products across the globe to countries like the UK, Europe, South Africa and the Middle East, to name a few. The company is listed on the NSE, BSE and UP Stock exchanges and is ISO 9001, 9002 and 14000 certified.
Manufacturing is a key strength at Mirza. The company has a fully integrated in-house shoe production facility backed by a state-of-the-art double density direct injection polyurethane plant, a tannery with its own pollution treatment plant, and a dedicated design studio in London. The manufacturing plants are located at Magarwara and Sahjani in Unnao, and in Noida. The tannery is located at Magarwara in Unnao. These plants are backed by more than 25 dedicated ancillary units.
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The company sources its cowhides from Europe and manufactures leather in stringent adherence to international norms, ensuring that no banned chemicals are used in the production process.
In addition to direct sales to leading global footwear retailers, the company also has a strong presence in the branded segment through three brands: Red Tape Oaktrak Red Tape Gal
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MISSION & VISION
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DESIGN
Mirza International Limited is a design led and design focused company. The companys design talent and capabilities set it apart from other market players. It has a specialized in-house design team of more than 40 skilled designers internationally. These designers coordinate with each other and keep themselves updated on the latest changes in footwear designs throughout the world. In addition to this, the design teams regularly conduct trend and marketplace analysis to understand changing requirements of the market.
Freelance designers engaged to add vital influences from local markets in Italy, France, Portugal, Holland and USA.
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In-house designers, working closely with the global sales teams and customers A blend of expertise in new and traditional techniques
Large, experienced in-house design teams, who liaise with the global designers CAD-CAM links to the UK centre, as well as several component companies, ensures fast development and effective control on lead time Key specialist teams focus on specific areas such as leathers, soles, lasts and patterns
In-house designers, working closely with the global sales teams and customers A blend of expertise in new and traditional techniques
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MANUFRACTURING FACILITIES
The company has four fully integrated in-house shoe production facilities with an installed production capacity of 3.35 mn pairs of shoes per annum.
These facilities are backed by a state-of-the-art double density direct injection polyurethane plant, a tannery with a capacity of 20 million sq ft per annum & its own effluent treatment plant and 25 dedicated ancillary units.
Shoes are produced at these facilities using latest methods like Stuck on, Double Density Direct Injection & Moccasins.
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QUALITY
At, Mirza International Limited, delivering quality is of paramount importance across processes. We consistently aim to deliver world-class quality to our clients and end users. Our dedication to quality is indicated by the following:
We are an ISO 9001,9002,14000 certified company Satra guidelines are followed for quality check of shoes All our units have in house laboratories for testing of raw materials and finished products
Regular Inspection of intermediate products is carried out at various ancillary units to maintain quality of end product
Batch wise quality inspection of finished products is undertaken.
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ACHIEVEMENTS
Set up a fully integrated production line Own tannery for captive consumption in shoe factories with a capacity of 20 million sq ft p.a.
Increased production capacity to 3.35 million pairs p.a. Developed over 25 dedicated ancillaries Developed 2 fully dedicated outsourcing units for mass products, supplying 1.2 million pairs of shoes p.a.
All factories, Indian Offices and UK office connected through ERP network for a seamless information system
Created a strong design team based in London Enabled global presence through group companies and marketing
arrangements
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FUTURE PLAN
Plans for Existing Brands To extend the Red Tape brand umbrella into an overall lifestyle brand for mens products sold through one stop mens wear stores. To become a major player in ladies footwear segment by further strengthening its newly launched footwear line for women.
Plans for Retailing To remodel all red tape retail stores operated on a franchise basis to sell all mens products including garments, personal care products, sun glasses and other accessories like belts, wallets and socks in addition to shoes. To increase the number of red tape stores from 35 to 100 by year 2010.
Plans for Product Line Expansion To diversify into Hi-fashion sports and casual shoes To diversify into automotive leather business To increase presence in new markets like Germany, France and USA
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Plans for Capacity Expansion 9 million pairs of shoes per annum by the year 2010. To set up a new manufacturing plant at Kanpur, with a capacity of 1.5-2 million pairs of shoes per annum. To schedule 6 units with a capacity of 1 million pairs each, in stages within a single complex. To dedicate individual units to large buyers.
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EXPORT
Mirza International Limited is an export oriented company with a major chunk of its sales being contributed by overseas sales to 24 countries. The main export markets for the company are UK, Europe, South Africa, US Canada, New Zealand and the Middle East.
Export Highlights 80% of companys sales being contributed by overseas sales to 24 countries 15% of the companys total export is sold under the brands Red Tape and Oak Trak in Europe The balance 85% is supplied to international companies, to be sold under their own labels. 70% of the exports are to UK, representing about 30% of Britains market in the mid-segment of mens leather shoes, sold through 300 prime outlets Company Owned design studio, marketing offices, warehouses and distribution network in United Kingdom to design and promote its brands
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Strategic marketing tie-ups and agents in other European countries like Holland, France, Germany
Agents in Middle East and Australia Marketing arrangement in South Africa similar to that of UK Marketing office set up in the US
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STRENGTHS
WEAKNESSES
Competitive pricing Good financial position Effective Marketing Strategy Market Leadership Strong online presence Strong brand Strong international operations Strong distribution chain
High cost structure Over pricing Low quality products/services Limited product line
OPPORTUNITIES
THREATS
Change in consumer lifestyles Available technological innovations Entering new markets Expand customer base (Geographically or through new products) Expand product/service lines Market Diversification Merger or takeover
Competition from foreign markets Competitor's actions Change in consumer lifestyles Changing consumer patterns Growing power of customers to set the price Growing power of suppliers to set the price Financial slowdown Increase in taxation New competitors entering the market Price war between competitors
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FINANCIAL RESULTS
(Rs. In crores)
2008-2009 2008
Gross Income Profit before interest Depreciation and taxes Less: interest Less: Depreciation Provision Current Tax Deferred Tax Wealth Tax Fringe Benefit Tax Income Tax Previous Year 2.75 0.44 0.06 0.40 0.12 5.36 14.44 10.11 361.38 33.66
2007318.42 30.26
15.12 8.98
1.88 0.23 0.06 0.38 3.61
Profit After Tax Appropriations Dividend Equity Shares Corporate Dividend Tax Transfer To General Reserve
1.58 0.32 0.50
2.78 0.60 0.40
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PERFORMANCE OF THE COMPANY

During the year, your company recorded a Gross Income of Rs. 361.38 Crores against Rs. 318.42 Crores in the previous year registering a significant growth of 13.5%. The operating profit before depreciation and interest has been Rs. 33.66 Crores as against Rs. 30.26 Crores in the previous year. After charging Interest of Rs. 14.44 Crores (Rs. 15.12 Crores), depreciation of Rs. 10.11 Crores (Rs. 8.98 Crores) and providing for tax Rs. 3.77 Crores (Rs. 2.55 Crores), the profit after tax for the year remained at Rs. 5.36 Crores compared to Rs. 3.61 Crore in the previous year. Riding on the growth momentum acquired last year, the company ended the year on a positive note with exports turnover surpassing the Rupees 250 Crores mark and maintaining the domestic growth at 10% bucking the recessionary trend. Our sustained drive to invest strategically has been one of the key dimensions of our efforts to shape tomorrow. The company is passing through a crucial period when the strains on profit margins are high and the increasing competition backed by all round increase in labor costs and the recessionary trend have further added to the woes of the company. Baring this, the Companys resilience adduced by its strong ethics and brand image has helped company to outperform its counterparts. To meet the increasing demand for products, your company is strategically scaling up its operations and the first phase of the ongoing expansion programmed at Unnao has been successfully commissioned and the production at newly set up Unit V of the Company has started in full swing. The benefits of the capacity expansion will be reaped in the years to come. Achieving high customer satisfaction is indeed very credible, especially in view of intensified 51
competition, though your company continues to maintain leadership position in the leather segment and catering to high end markets. The companys offerings namely, RED TAPE & Oaktrak have a good presence in the market and have emerged as a premium leather footwear brands. To capitalize this, the RED TAPE branded garments have been launched which are redefining youth style statement. To add further, recently launched RED TAPE GALS for ladies is fast catching the eyes. The company is aggressively marketing its products in the domestic market by consolidating its presence through retail outlets. The emphasis, now, is on increasing the volumes and individual profitability of the outlets already opened. Moreover, the company has also plans to increase its outlets to 200 over the next few years. At Mirza, we believe in systematically and pro actively identifying opportunities for growth and invested in them, often ahead of time which has created value for us. At Mirza, we have always tried to outperform ourselves be it quality, cost or customer satisfaction and the ever increasing export turnover adduces this fact where the quality matters a lot.
Dividend:
Despite the pressure on profitability, the Board of Directors of your company are pleased to recommend a dividend of Re. 0.20 per Equity Share of Rs. 2/- each (10%) for the year ended 31st March 2009 subject to the approval of shareholders entailing a payment of Rs. 2.17 Crores for the year. The dividend, if approved, shall result in a
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payout of 40% of current years profits and reflects the managements confidence in future and its resolve to keep the investors interest at heart.
Expansion Programme:
The company has embarked upon ambitious expansion programmed by building large shoe manufacturing capacities at Unnao and Greater Noida in planned phases, which will take the present capacity of 4.0 million pairs/annum to 10.0 million pairs/ annum over the next three years. In this direction, the first phase of expansion programmed at Unnao has been successfully commissioned in a record time and the company has now moved on to the next phase by acquiring mass piece of land at Greater Noida. The construction activity has already begun thereat. Company as the expanded capacity of Shoe Unit was created in new Unit.
Corporate Governance:
The Company is committed to good governance practices having the set of policies, processes and practices by which a company conducts its affairs in pursuit of its business goals. It encompasses everyone connected or affected by the activities of the corporation from the board room to senior management to employees to all other stake holders which includes shareholders, lenders, suppliers and customers. A separate report on Corporate Governance together with a certificate from Statutory Auditors confirming compliance with corporate governance requirements as stipulated
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in Clause 49 of the listing agreement with the stock exchanges has been annexed as part of this report.
Management Discussion and Analysis:

Industry Structure and Developments Leather Industry occupies a prominent place in the Indian Economy due to its massive potential for employment, growth and exports. The leather sector has been identified as a thrust sector for exports promotion in India. There has been increasing emphasis on its planned development aimed at optimum utilization of available raw-materials for maximizing the returns specially exports. During the past four decades, from the status of exporter of raw hides and semi finished leather, the country has now turned into a major importer of these goods. It is now the major supplier of value added goods like footwear, bags and travel accessories like belts and wallets. Recognizing the importance of leather sector, the government has initiated a number of measures including subsidy schemes aiming at accelerating growth over the coming years and competing with low price economies. The export of leather and leather products for the first nine months of 2008-09 i.e., April-December 2008 touched US$ 2,788.59 Million against the performance of US$ 2,574.05 million in the corresponding period of last year, registering a positive growth of 8.34% in Dollar terms. In rupee terms, the export touched Rs. 1,24,741.90 Million against the previous year performance of Rs. 1,04,010.29 Million showing a positive growth of 19.93%. 54
The exports of leather footwear and footwear components registered a significant increase of 19.77% by posting a record aggregate turnover of Rs. 49,067.52 Million compared to Rs. 40,966.84 Million in the previous year period.
Opportunities, Threats, Risks & Concerns The Cost advantage enjoyed by our Chinese counterpart are no more shackles to the Companys performance thanks to various developments taking place in Chinese economy like increasing wage levels due to shortages of labour, stringent labour and environment laws, acute shortage of power, strengthening of Chinese Yuan which have impacted their costs by nearly 18-20% and have turned out to be positive signs for the Company. The various Incentive Schemes announced by the Govt. is also going to be a backup for the company in the times to come. The increasing prices of inputs coupled with the lack of infrastructure facilities and the rise of low price economies like Vietnam, Bangladesh have posed a threat to the Indian players.
Outlook The major chunk of Indias Leather products exports belongs to footwear. The company is focusing on increasing the volumes in the domestic market and gaining a strategic foothold in the footwear segment by investing in R&D. The opportunities in the international markets are being explored and the products of the company are also gaining wider acclamation and acceptance in the domestic market.
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Segment-wise Performance The companys business segment is primarily Shoe Division and Tannery Division. During the year under review, the Shoe Division revenue was Rs. 328.56 Crores and Tannery Division revenue was Rs. 96.26 Crores.
Internal Control System and their Adequacy The Company has a well established framework of internal controls in operation, including suitable monitoring procedures and self assessment exercises. An independent Internal Audit function reviews the Companys financial and operating controls at various locations. The companys Risk Management framework ensures compliance with the provisions of Clause 49 of the Listing Agreement. Senior Management has ownership of key risks, their management and mitigation plans. The Board, through the Audit Committee, headed by a non-executive independent director, reviews the key risks, the internal control framework and the audit findings.
Discussion of financial performance with respect of operational performance The Companys operations were almost at the same level as last year. However, profitability of the company was strained due to increase in cost of labor overheads and all major input items and adverse exchange rate movement. With the operationalization of Unit V of the company, the operations of the company will witness upsurge of turnover and further cost savings.
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Foreign Exchange Risk Management The practice of foreign exchange risk management is an area came into the spotlight due to the market volatility that has prevailed for some time. The Companys Treasury Committee performs the functions of evaluation of hedging strategies on ongoing basis and manages risks in accordance with the policies approved by the Board.
Human Resources Human Resources forms an integral part of your Companys strategy for growth. On the Industrial Relations front, your company continued to enjoy cordial and harmonious relations with its employees and Unions. Your company had staff strength of 1801 employees as on 31st March, 2009.
Certifications Your company is a blue chip footwear company, certified for ISO-9001:2000 (Quality Management System), ISO-14001:2004 (Environmental Management System) and SA-8000:2001 (Social Accountability Management System), equipped with Labs accredited by SATRA Technology Centre (UK) and accorded Associate Membership by Footwear Design & Development Institute (Ministry of Commerce & Industry, Government of India).
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Corporate Social Responsibility Corporate Social Responsibility has always been at the heart of the activities of your Company. The Company has been making humble contributions and taking meaningful measures to enrich the socio economic environment and living standard of the people around especially the backwards and economically weaker sections of the society. In addition to meeting all industrial requirements for the welfare of the workers, the company believes in keeping up the strong industrial relations maintained for the years.
Fixed Deposits During the year, the Company has not accepted any fixed deposits. No amount on account of principal or interest on deposits was outstanding on the date of the Balance Sheet.
Exports The year ended 31st March, 2009 proved yet another eventful for the company. On the exports front, your Company registered an impressive growth of around 15%. The total revenues from the exports were Rs. 289.26 Crores as compared to Rs. 251.30 Crores during the previous year. The share of branded shoes in export has shown a steady growth.
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Domestic Sales:
Your Company enjoys leadership position in the segment in which its products are represented. Companys brand RED TAPE enjoys customers admiration and confidence and is one of the highest selling brands in Mens footwear market. Opportunities in Ladies footwear markets are also being explored successfully.
BALANCE SHEET AS AT 31ST MARCH, 2009

2009 Rs. 2008 Rs.
SOURCES OF FUNDS Shareholders Funds Share Capital Reserves and Surplus 18,54,12,000 99,74,39,403 1,18,28,51,403 Deferred Tax Loan Funds Secured Loans Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block 59 2,27,91,20,064 66,16,71,197 1,61,74,48,867 1,80,83,66,989 56,62,47,569 1,24,21,19,420 1,16,03,58,197 2,51,54,09,600 1,13,12,28,623 2,56,76,33,875 17,22,00,000 18,54,12,000 1,08,31,93,252 1,26,86,05,252 16,78,00,000
Capital Work in Progress
5,66,06,396 1,67,40,55,263
30,36,32,836 1,54,57,52,256 96,46,408
Investments Current Assets, Loans and Advances Inventories Sundry Debtors
90,04,208
83,46,83,074 24,75,12,630
91,25,02,955 30,52,86,045
Other Current Assets Cash and Bank Balances Loans and Advances
16,18,05,550 2,18,40,461 7,47,67,264 1,34,06,08,979
18,86,43,162 3,49,65,702 4,65,60,954 1,48,79,58,818 47,57,23,607 1,01,22,35,211 2,56,76,33,875
Less : Current Liabilities and Provisions Net Current Assets Total
50,82,58,850 83,23,50,129 2,51,54,09,600
REPORT ON CORPORATE GOVERNANCE

1. Companys philosophy on Corporate Governance:
Corporate Governance is a process of inculcating and the practice of best corporate standards for ensuring transparency, accountability, integrity to enhance investor confidence in an attempt to accomplish duty as a socially responsible person. The company believes in ensuring complete & timely compliances with all the relevant 60
legal and regulatory requirements. All Directors and employees are bound by code of conduct that sets out the fundamental standards to be followed in all facets of its operation and dealings with shareholders, creditors, government authorities and the public at large. The company has made full compliance with the norms and disclosures required by Clause 49 of the Listing Agreement with the Stock Exchanges.
2. Board of Directors:
The Board of Directors of the Company presently consists of twelve directors out of which, six are Non-executive Independent Directors and six directors are Whole-time Executive Directors including Chairman & Managing Director of the company. Mr. Irshad Mirza is a Chairman (Executive) of the company (w.e.f. 01.10.2008). Mr. P.S. Khamesra resigned from the Board & Mr. Sudhindra Jain was appointed as additional director on the Board on 30th July, 2008. During the year, four Meetings of the Board of Directors of the Company were held on June 14, July 30, October 24, 2008 and January 27, 2009. The maximum time gap between any two consecutive meetings was not more than 4 months.
3. Audit Committee:
The powers, role and terms of reference of the Audit Committee covers the areas as contemplated under Clause 49 of the Listing Agreement and Section 292A of the Companies Act, 1956 besides other terms as may be referred by the Board of 61
Directors. During the year, the Board reconstituted this committee twice w.e.f. 14th June, 2008 & 30th July, 2008. The present composition of Audit Committee consists of four directors namely: Mr. Sudhindra Jain as Chairman, Mr. P.N. Kapoor, Mr. Subhash Sapra, independent directors and Mr. Irshad Mirza, Executive Director as members. During the year, the Audit Committee met for four times i.e. on June 14, July 30, October 24, 2008 and January 27, 2009. The requisite Quorum was present at the committee meetings. Mr. P.S. Khamesra, CFO and Mr. A. K. Srivastava, Cost Auditor and representative of internal audit team were also present in the aforementioned audit committee meetings.
4. Share Transfer and Investors Grievance Committee:

The committee looks into the redressing of shareholders and investors complaints like transfer of shares, non-receipt of balance sheet, dividend etc and the action taken by the company. The committee specifically works to assure timely redressal without any pendency. During the year, the Board reconstituted this committee twice w.e.f. 14th June, 2008 & 30th July, 2008. The present composition of the Committee consists of four directors namely: Mr. P.N. Kapoor as Chairman, Mr. Sudhindra Jain, Mr. Q.N. Salam, non-executive independent directors and Mr. Tasneef Ahmad Mirza, executive director as members. During the year, the Committee met for four times on June 14, July 30, October 24, 2008 and January 27, 2009. During the year, 49 complaints were received from the shareholders, which were replied/resolved to the satisfaction of the shareholders. 62
5. Remuneration Committee:
The Remuneration Committee comprising of independent directors recommends to the Board, the compensation terms of Executive Directors and its responsibilities include: a) Framing and implementing on behalf of the Board and on behalf of the shareholders, credible and transparent policy on remuneration of Executive Directors; b) Considering, approving and recommending to the Board the changes in designation and increase in salary of the Executive Directors; c) Ensuring that remuneration policy is good enough to attract, retain and motivate the Directors; d) Bringing about objectivity in determining the remuneration package while striking a balance between the interest of the company and the shareholders. During the year, the Board reconstituted this committee twice w.e.f. 14th June, 2008 & 30th July, 2008. The present composition of the Committee consists of four directors namely: Mr. Q.N. Salam as Chairman, Mr. P.N. Kapoor, Mr. Subhash Sapra, Mr. Islamul Haq, Non-Executive Independent Directors as members. During the year, the Committee met for three times on June 14, October 24, 2008 and January 27, 2009.
6. Remuneration Policy:
The remuneration paid to the executive directors of the company is decided by the Board of Directors on the recommendation of the remuneration committee. The existing remuneration policy of the company is directed towards rewarding
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performance, based on review of achievements on a periodical basis. The remuneration policy is in consonance with the existing industry practice: 1. Non-Executive Directors Non-Executive Directors are paid sitting fees for attending the meetings of the Board of Directors within the prescribed limits. The Sitting fees paid to them for the year ended 31st March, 2009 is Rs. 2,40,000 detailed as : 1) Mr. Irshad Mirza - Rs. 20,000/-; 2) Mr. Q.N. Salam Rs. 40,000/-; 3) Mr. P.N. Kapoor - Rs. 40,000/-; 4) Dr. Yashveer Singh - Rs. 30,000/-; 5) Mr. Subhash Sapra - Rs. 40,000/-; 6) Mr. Islamul Haq - Rs. 40,000/-; 7) Mr. Sudhindra Jain - Rs. 30,000/-.
2. Executive Directors The remuneration committee makes annual appraisal of the performance of the executive directors based on a detailed performance evaluation and recommends the remuneration payable to them, within the parameters approved by the shareholders and the Central Government, to the board for their approval.
7. Disclosures:
There are no materially significant related party transactions made by the company with its promoters, directors or management, their subsidiaries or relatives etc. that may have potential conflict with the interests of the company at large. Transactions with the related parties are disclosed in Notes to the Accounts in the Annual Report.
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During the last three years, there were no strictures or penalties imposed by either SEBI or the Stock Exchanges or any other statutory authority for non-compliance of any matter related to the capital markets. The Code of Conduct applicable to all directors and senior management personnel of the company have been posted on Companys website. For the year under review, all directors and senior management personnel of the company have confirmed their adherence to the provision of the said codes. The company has complied with all the mandatory requirements and adopted part of the non-mandatory requirements of Clause 49 of the Listing Agreement.
8. Market Price Data
National Stock Exchange

Month High Low Total Monthly
Volume of Share APR 08 MAY 08 JUNE 08 JULY 08 AUG. 08 SEPT 08 OCT. 08 21.50 20.90 17.95 15.90 16.55 15.10 11.50 65 15.25 15.30 13.00 12.25 13.50 10.05 06.70 17,38,882 13,75,008 10,63,882 8,31,559 12,19,092 8,50,764 7,63,069
NOV. 08 DEC. 08 JAN. 09 FEB 09 MAR 09
09.80 12.50 13.70 10.30 09.35
06.50 06.50 09.40 08.55 06.70
5,05,689 9,74,541 5,12,311 1,97,107 10 15,76,370
9. CEO/CFO Certification:
In terms of the requirements of Clause 49(V) of the Listing Agreement, the CEO and CFO have submitted necessary certificate to the Board at its meeting held on 26th May, 2009 stating the particulars specified under the said clause.
10. Means of Communication:

The Quarterly and Annual results are published in widely circulating national & local dailies such as The Economic Times, Business Standard, The Pioneer (in English) and Danik Jagran and Dainik Aaj (in Hindi). These are not sent individually to the shareholders. The Companys results and other related information are displayed on the Companys web site- www.mirza.co.in. Management Discussion and Analysis Report forms part of Directors Report.
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11. Registrar & Transfer Agents:

KARVY COMPUTERSHARE PVT. LTD. 17-24, Vittal Rao Nagar, Madhapur Hyderabad - 500081 Phone: 040-23420815-28 Fax No.: 040-234208
12. Shareholding Pattern & Distribution Schedule as on 31st March, 2009:

Category 1. Promoters Holding a) Indian Promoters b) Foreign Promoters Sub Total 2. Non Promoters Holding a) Mutual Funds & UTI b) Banks, FIs, Insurance Cos c) FIIs Sub Total 3. Others a) Private Corporate Bodies 4762366 5.14 5500 36500 7997714 8039714 0.01 0.04 8.63 8.68 58733684 1205000 59938684 63.35 1.30 64.65 Number of Shares Percentage of Shares
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b) Individual/ HUF c) NRIs / OCBs d) Clearing Members / Trust
18864998 992385 107853
20.35 1.07 0.11
Sub Total GRAND TOTAL
24727602 92706000
26.67 100.00
Note:- 10195099 equity shares, being held by Foreign Promoters / FIIs / NRIs / OCBs / Foreign collaborators and Foreign Nationals representing 10.99% of share capital.
13. Share Transfer System:

Your company is providing facility of common agency for all the work related to share registry in terms of both physical and electronic at a single point by our Registrar & Share Transfer Agent i.e. Karvy Computer share Pvt. Ltd., Hyderabad. Presently, the share transfers which are received in physical form are processed and the share certificates returned within a period of 30 days from the date of receipt, subject to the documents being valid and complete in all respects.
14. Dematerialization of shares and liquidity:

The Companys equity shares are included in the list of companies whose scrip have been mandated by Securities Exchange Board of India for settlement only in
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dematerialized form by all investors. The company has signed agreements with National Securities Depositories Ltd. and Central Depositories Services (India) Ltd to offer depository services to its shareholders. As on 31st March, 2009, a total of 9,09,16,133 out of a total 9,27,06,000 equity shares of the company constituting 98.07 percent of share capital stand dematerialized. The processing activities of De-mat requests are normally confirmed within an average of 15 days.
17. Address for Correspondence:

Shareholders correspondence should be addressed to our Registrar & Share Transfer Agents at the address mentioned above. Contact Persons: Mr. K Sreedharamurthy, Manager. Ph. No. 040-23420815-28,
Email id. : sreedharamurthy@karvy.com. Shareholders may also contact Mr. D.C. Pandey, Company Secretary at the Registered Office of the Company for any assistance Ph. 0512-2530775 Email id: dcpandey@redtapeindia.com. Shareholders holding shares in electronic mode should address all their correspondence to their respective Depository Participant.
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18. Secretarial Audit for reconciliation of Capital:

In compliance of SEBI circular, your company has engaged Mrs. Savita Jyoti, Practising Company Secretary to certify and conduct audit relating to reconciliation of total capital held in Depositories, viz, NSDL and CDSL and in physical form with the total issued/ paid up capital. The certificate given by her is submitted to the Stock Exchanges where the securities of the company are listed within 30 days of the end of each quarter. The company also obtains from a practicing Company Secretary half yearly certificate of compliance as required under Clause 47 (c) of Listing Agreement and files the same immediately with Stock Exchanges.
19. Outstanding GDRs /ADRs / Warrants or any convertible instruments conversion date and likely impact on equity:
Not applicable
20. Works Locations of the Company:

_ Kanpur- Unnao Link Road, Magarwara, Unnao- 209 801 _ Kanpur-Unnao Link Road, Shajani, Unnao- 209 801 _ Plot No. C-4, 5, 36 & 37, Sector-59, NOIDA-201 303 _ UPSIDC Industrial Area, Site II, Unnao- 209 801
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21. Unpaid Dividend:

Pursuant to Section 205C of the Companies Act, 1956, the company had transferred unpaid dividend for the year 2000-01 to the Investor Education & Protection Fund of the Central Government during the year.
22. Electronic Clearing Service:

The Company has availed ECS facility for distribution of dividend to the shareholders.
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REDTAPE
Known for its unparalleled comfort, international styles and finesse, Red Tape the flagship brand of Mirza International Limited, was launched in the year 1996. The brand has today become synonymous with hi-fashion & lifestyle, owing to its unmatched quality, skilled craftsmanship and trendy products. Endorsed by the style icon Salman Khan, Red Tape has become Indias most loved premium lifestyle brand.
Red Tape - Fashion for Your Feet

Red Tape has emerged as a leader in the high-end fashion footwear segment. The Red Tape footwear range is designed in company-owned design studios in the UK and Italy and manufactured using international quality materials from European countries. Having become Indias favorite mens footwear, the brand has now diversified into Womens footwear.
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Red Tape- Fashion for You

Red Tape has recently forayed into the apparel sector and unveiled mens clothing and accessories line up. This new range offers an eclectic mix of casual wear including shirts, jackets, denims, tees, pants/shorts and accessories such as belts, socks and wallets.
Red Tape- Fashion for the World

Red Tape is an international brand, present across the US, UK, France, Germany, West Asia and South Africa. The Red Tape products are being sold globally through the company's extensive global distribution channel.
Red Tape Fashion that is Truly Global

The Red Tape range of shoes, apparel & accessories reflect the latest fashion trends across the globe. These are designed in company-owned design studios in the UK and Italy and manufactured using international quality materials from European countries, in order to produce a truly global product.
Red Tape Fashion in Your Reach

Red Tape products are available across India through multiple brand outlets, chain stores and exclusive Red Tape showrooms. Its countrywide network of exclusive showrooms spans 30 cities in India.
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OAKTRAK
Oaktrak is a niche brand of formal footwear, designed exclusively for the upwardly mobile executives and businessmen. The range is both casual and urban, with the emphasis on comfort with style. Oaktrak is sold through independents, small retailers and multiples. Primary markets for the brand are UK and South Africa.
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RED TAPE GAL
Red Tape Gal is a stylish footwear range for women that bring in a fresh, energetic and youthful appeal through its trendy designs. Introduced in March 2007, the brand is Mirza International Limiteds first step towards tapping the immense opportunity available in the women footwear segment.
The range is available in a variety of styles and shapes and has already become a preferred brand of the Indian women. Endorsed by the critically acclaimed actress Kangana Ranaut, Red Tape Gal is confident of achieving a quantum breakthrough in the womens footwear segment very soon.
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RESEARCH METHODOLOGY
Research is diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories, and applications, etc. Methodology is the system of methods followed by particular discipline. Thus, research methodology is the way how we conduct our research. Research Problem: To Analyze the Effectiveness of the Performance Appraisal System over the Employees of Mirza International Limited.
Data Source: Primary Data and Secondary Data
Research Methodology: Descriptive Research and Exploratory Research
Research Instrument: Questionnaire
SAMPLING PLAN:-
Population Definition: Head Office and Units of Mirza International Limited
Sample Size: 75 Employees
Sample Methods: Random Simple Sampling
Primary Data: Questionnaire
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SAMPLE:-
While deciding about the sample of research, it is required from the researchers point of view to pay attention on these under mentioned points:
Sample Units: A decision has to be taken by concerning a sampling unit before
selecting a sample. Sampling unit may be a geographical one such as shops (where workers is performs), Offices & etc. So in this research sampling unit is head office and other units of Mirza International Ltd.
Source List: It is also called sampling frame from which sample is to be drawn,
it caters name of all the items of a universe (in case of finite universe only). Researcher has to prepare it.
Sample Size: This refers to the number of items to be selected from the universe
to constitute a sample. This is a major problem in front of the researcher. The size of sample should neither be excessively large not too small, it should be optimum. This size of population must be kept in view for this also limits the sample size .Sample size in this research is 75 employees. Sampling procedure: Finally the researcher must decide the type of sample that is he must decide about the technique to be used in selecting items for the sample. In fact, this technique or procedure stands for the sample design itself.
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In this we used the random sampling on the basis of first survey results, which is from 75 respondents.
DATA COLLECTION:-
Actually data is of two kinds so researchers should keep in mind both types of data.
Primary Data: Primary data are those, which are collected afresh and for the
first time and this happen to be original in character.
Secondary Data: Secondary data are those data which have already been collected by someone else and which have already been used as per required. There are basically two sources to collect secondary data
a) Internally: Provided by the company/organization
b) Externally: Various publication of central, state and local Government. Books, magazines, newspapers Internet
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After only keeping in mind one can think about what type of data has to be collected during research as our research is concerned we have to gather primary data from the employees of the company.
PRIMARY DATA COLLECTION: Questionnaires Feedback forms
SECONDARY DATA COLLECTION: With the website of Mirza International Limited. Sales records and Annual Report of the company.
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1) Performance appraisal system is needed in the organization.
Decision Criteria SA A NN D SD
No. of Respondents 49 26 0 0 0
% of Respondent 65% 35% 0% 0% 0%
0% 0% 0%
35%
SA A NN 65% D SD
100% employees think that PA system is needed in which 64.67% employees are strongly agreed and 35.33% employees are only agree. 83
2) Satisfied with existing performance appraisal system.
% of Respondent 0% 60% 34.67% 5.33% 0%
5%0% SA 35% 60% A NN D SD
60% employees are satisfied with existing PA system while 34.67% are neither agree nor disagree and 5.33% employees are dissatisfied with PA system.
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3) Appraisal system provides an opportunity for self review and reflection.
% of Respondent 30% 60% 0% 10% 0%
70% 60% 50% 40% 30% 20% 10% 0% SA A NN D SD
90% employees are agree about that appraisal system provides an opportunity for self review and reflection in which 30% are strongly agree but 10% employees are disagree about it.
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4) The appraisal system requires an opportunity for both appraiser and appraises to review expectation and improvement respectively.
% of Respondent 65% 20% 15% 0% 0%
60% 50% 40% 30% 20% 25% 10% 0% SA A 0% NN D 20% 0% SD 55%
65% employees are strongly agree with that the appraisal system requires an opportunity for both appraiser and appraises to review expectation and improvement respectively while 20% are only agree and 5% are neother agree nor disagree.
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5) Appraisal system is able to make its goals clear to all the executives.
% of Respondent 24.67% 55.33% 0% 20% 0%
0% 20% 25% SA A NN 55% D SD
0%
80% employees are agree with that PA system is able to made its goals clear to all the executives in which 24.67% are strongly agree while 20% are disagree.
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6) The performance of organization is assessed by self, superior or consultant.
% of Respondent 24.67% 50% 10% 10% 5.33%
60% 50% 40% 30% 20% 10% 0% SA A NN D SD
74.67% are agree with performance of the organization is assessed by self, superior or consultant but 10% are neither agree nor disagree and 10% are disagree and 5.33% are strongly disagree.
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7) Performance review discussions are conducted with a view to maintain quality and care.
% of Respondent 10% 70% 20% 0% 0%
20%
0% 10% SA A NN D SD 70%
80% employees are agreeing with performance review discussions are conducted with a view to maintain quality and care in which 10% are strongly agreed while 20% are neither agree nor disagree with it.
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8) Performance appraisal helps to win co-operation and team work.
% of Respondent 10% 70% 20% 0% 0%
0% 20% 0% 70% 10% SA A NN D SD
80% employees are agree with that PA helps to win co-operation and Team work in which 10% are strongly agree while 20% are neither agree nor disagree.
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9) The performance appraisal is helpful in reducing grievance among the employees.
% of Respondent 20% 70% 5.33% 4.67% 0%
80% 70% 60% 50% 40% 30% 20% 10% 0% SA A 20% 5.33% NN 4.67% 0% D SD 70%
90% employees are agree that PA is helpful in reducing grievance among the employees in which 20% are strongly agree but 5.33% are neither agree nor disagree and 4.67% are completely disagree with it. 91
10) The performance appraisal is helpful for improving personnel skills.
% of Respondent 35% 50% 0% 15% 0%
15% 0%
0% SA A NN D SD
35%
50%
84.67% employees are agree with that PA is helpful for improving personnel skills in which 34.67% are strongly agree but 15.33% are disagree with it.
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11) Training programs are effective for individual and organizational development.
% of Respondent 34.67% 45.33% 20% 0% 0%
45.33% 34.67% 20.00% SA 0.00% NN D
0% SD
80% employees are agree about that training programs are effective for individual and organizational development in which 34.67% are strongly agree but 20% are neither agree nor disagree. 93
12) The performance ratings were done periodically.
% of Respondent 5% 55% 25% 15% 0%
0% 15% 5% SA A 25% 55% NN D SD
60% employees are agree with that the performance rating is done periodically in which 5.33% are strongly agree but 24.67% are neither agree nor disagree and 15.33% are completely disagree.
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13) The performance appraisal system helps to identify the strength and weakness of the employees.
% of Respondent 24.67% 60% 10% 5.33% 0%
70% 60% 50% 40% 30% 20% 10% 0% SA A 24.67% 10.00% 5.33% NN 0% D SD 60.00%
84.67% employees are agree with that PA system helps to identify the strength and weakness of the employees in which 24.67% are strongly agree but 10% are neither agree nor disagree while 5.33% are completely disagree with it.
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14) The performance rating is helpful for the management to provide employee counseling.
% of Respondent 10% 60% 14.67% 15.33% 0%
70% 60% 50% 40% 30% 20% 10% 0% SA A NN D 10.00% 14.67% 15.33% 0% SD 60.00%
70% employees are agree about performance rating is helpful for the management to provide employee counseling in which 10% are strongly agree but 14.67% are neither agree nor disagree while 15.33% are completely disagree.
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15) Promotion is purely based on performance appraisal.
% of Respondent 0% 60% 34.67% 5.33% 0%
0% 15% 10% 10% SA A NN 65% D SD
74.67% are agree with promotion is purely based on PA in which 10% are strongly agree but 10% are neither agree nor disagree while 15.33% are completely disagree with it. 97
16) Management fixes salary through the performance appraisal.
% of Respondent 10% 60% 14.67% 15.33% 0%
60.00%
10.00% SA A
14.67% NN
15.33% 0% D SD
70% employees are agree with management fixes salary through the PA in which 10% are strongly agree but 14.67% are neither agree nor disagree while 15.33% are completely disagree with it.
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17) Transfer, demotion, suspension and dismissal are based on performance appraisal.
% of Respondent 15% 70% 15% 0% 0%
15%
0%
15% SA A NN D SD
70%
85.33% employees are agree with that transfer, demotion, suspension and dismissal are based on PA in which 15.33% are strongly agree while 14.67% are neither agree nor disagree. 99
18) The desired target of the organization is achieved through the performance appraisal.
% of Respondent 14.67% 50% 10% 25.33% 0%
50.00%
25.33% 14.67% 10.00% 0% SA A NN D SD
64.67% employees are agree that the desired target of the organization is achieved through the PA in which 14.67% are strongly agree but 10% are neither agree nor disagree while 25.33% are completely disagree.
100
19) Performance appraisal increases employee motivation.
% of Respondent 35% 45% 5% 15% 0%
0% 15% 5% 35% SA A NN D SD 45%
80% employees are agree with that PA increases employee motivation in which 34.67% are strongly agree but 5.33% are neither agree nor disagree while 14.67% are completely disagree.
101
20) Appraisal system keeps on the major achievements and failure or success of work.
% of Respondent 10% 74.67% 15.33% 0% 0%
74.67%
10.00%
15.33% 0.00% 0% SD
SA
NN
84.67% employees are agree with that appraisal system keeps on the major achievements and failure or success of work in which 10% are strongly agree while 15.33% are neither agree nor disagree.
102
21) Have a separate committee to review the performance appraisal result.
% of Respondent 5% 73% 13% 9% 0%
5% 9% 0% 13% SA A NN D SD 73%
85.33% employees are agree with having a separate committee to review the PA result in which 5.33% are strongly agree but 14.67% are neither agree nor disagree while 10% are completely disagree.
103
104
FINDINGS
All employees are agreed with that performance appraisal system is needed in the organization.
60% employees are satisfied with existing performance appraisal system while 34.67% are neither agree nor disagree and 5.33% employees are dissatisfied with existing performance appraisal system.
90% employees are agree about that appraisal system provides an opportunity for self review and reflection in which 30% are strongly agree but 10% employees are disagree with this.
94.67% employees are agree with that the appraisal system requires an opportunity for both appraiser and appraises to review expectation and improvement respectively in which 74.67% employees are strongly agree but some employees are do not want to say anything about it.
80% employees are agree with that performance appraisal system is able to made its goals clear to all the executives in which 24.67% employees are strongly agree while 20% employees are disagree with this.
105
74.67% employees are agree with that performance of the organization is assessed by self, superior or consultant but 10% employees are neither agree nor disagree and 10% employees are disagree and 5.33% employees are strongly disagree.
80% employees are agreeing with performance review discussions are conducted with a view to maintain quality and care in which 10% employees are strongly agree while 20% employees are do not want to say anything about this.
80% employees are agree with that performance appraisal helps to win cooperation and Team work in which 10% employees are strongly agree while 20% employees are do not want to say anything about this .
90% employees are agree that performance appraisal is helpful in reducing grievance among the employees in which 20% employees are strongly agree but 5.33% are neither agree nor disagree and 4.67% are completely disagree with this.
84.67% employees are agree with that performance appraisal is helpful for improving personnel skills in which 34.67% employees are strongly agree but 15.33% employees are completely disagree with it. 106
80% employees are agree about that training programmes are effective for individual and organizational development in which 34.67% employees are strongly agree but 20% employees are neither agree nor disagree with this.
60% employees are agree with that the performance rating is done periodically in which 5.33% employees are strongly agree but 24.67% employees are neither agree nor disagree and 15.33% employees are completely disagree with this.
84.67% employees are agree with that performance appraisal system helps in identifying the strength and weakness of the employees in which 24.67% employees are strongly agree but 10% employees are neither agree nor disagree while 5.33% are completely disagree with this.
70% employees are agree about performance rating is helpful for the management to provide employee counseling in which 10% employees are strongly agree but 14.67% employees are neither agree nor disagree while 15.33% employees are completely disagree with this.
107
74.67% employees are agree with promotion is purely based on performance appraisal in which 10% employees are strongly agree but 10% employees are neither agree nor disagree while 15.33% employees are completely disagree with this.
70% employees are agree with management fixes salary through the PA in which 10% are strongly agree but 14.67% are neither agree nor disagree while 15.33% are completely disagree with it.
85.33% employees are agree with that transfer, demotion, suspension and dismissal should be based on performance appraisal in which 15.33% employees are strongly agree while 14.67% employees do not want to say anything about this.
64.67% employees are agree that the desired target of the organization is achieved through the performance appraisal in which 14.67% employees are strongly agree but 10% employees are neither agree nor disagree while 25.33% employees are completely disagree with this.
80% employees are agree with that performance appraisal increases employees motivation in which 34.67% employees are strongly agree but
108
5.33% employees are neither agree nor disagree while 14.67% employees are completely disagree with this.
84.67% employees are agree with that appraisal system keeps on the major achievements and failure or success of work in which 10% employees are strongly agree while 15.33% employees are neither agree nor disagree with this.
85.33% employees are agree with having a separate committee to review the performance appraisal result in which 5.33% employees are strongly agree but 14.67% employees are neither agree nor disagree while 10% employees are completely disagree with this.
109
110
CONCLUSION
An important factor related to an organizations long term success is its ability to measure how well employees perform and then use that information to ensure that performance meets present standards and improves over time. This process is referred to as performance management; the measurement portion of the system is called performance assessment, performance appraisal or performance evaluation.
On the basis of performance appraisal form ratings are given to an employee by the several potential sources like immediate supervisor, peers, including employees themselves. Throughout the ratings given finally the organization is able to judge the employees contribution towards the organization. Throughout the questionnaire method following things become clear a) Performance appraisal system is an effective tool to review job performance during previous review period. b) It is an adequate vehicle to decide on salary, promotion, demotion, transfer, suspension of an employee. c) It helps to evaluate employees contribution towards the organization. d) 360 degree is the best method of performance appraisal but in the organization there is 180 degree method is employed.
111
e) The annual performance assessment interview is the valuable opportunity for the supervisor and subordinate to communicate about the past performance, current concerns and goals for the future. f) The employees of Mirza International ltd. are partially satisfied with the present performance appraisal system. g) The employees in the company are highly motivated for achieving their goals. h) The present performance appraisal system helps to strengthen the relationship and communication between superior subordinates and management employees. i) The present performance appraisal system is helpful in reducing the grievances of the employees.
With the following study I have to conclude that in Mirza International Limited Most of the employees are satisfied with existing performance appraisal system and performance appraisal system is helpful in increasing employees morale and also helpful in increasing his personnel skills and team work ability in the organization. But some employees are also dissatisfied with the existing performance appraisal system.
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SUGGESTIOS
There should be proper communication between the different levels of the organization.
Proper performance appraisal tools should be applied so that justification could be done with the employees.
Performance appraisal system should be 360 degrees instead of 180 degrees as it affects the motivation level of the employees.
Evaluations are done not for raises, promotions, or bonuses but for growth, development & communication.
Performance appraisal system should be made scientific by introducing the marks or grades.
Executives should be communicated about whatever rating he gets. Performance appraisal system for the workmen should also be introduced. It will prove to be a motivational tool for delivering the results to the best of their capability.
The present appraisal system should be more productivity based not the promotion oriented.
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LIMITATIONS OF THE STUDY

Every project faces some limitation; because of this limitation the required and necessary data to complete the project may not gather in proper manner. The limitations which we observe were as follows:
With respect to actual population the sample size was too small. This might be effect the final result.
Since the responses were only from some part of Mirza International Ltd., the report cannot be generalized for whole Mirza international Board.
Respondents may have given bias information.
The time limit for the research was one week in every section that was small time to collect adequate information for inference for the consumer buying behavior.
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QUESTIONNAIRE
A Study On The Effectiveness Of The Performance Appraisal System Over The Employees Of Mirza International Limited
Socio Demographic Factors: Full name of the executive: _________________________________ Sex : Male Age : Upto 20 years Above 40 years Designation Date of Joining : ________________________________ : ________________________________ 20-30 years 30-40 Years Female
Study Factors: SA Strongly Agree A Agree NN Neither Agree Nor
Disagree D Disagree SD Strongly Disagree
SA
NN
SD
SA A
DD
1. Performance appraisal system is needed in the organization
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2. Satisfied with existing performance appraisal system.
3. The appraisal system provides an opportunity for self review and reflection.
4. The appraisal system requires an opportunity for both appraiser and appraises to review expectation and improvement respectively.
5.
Appraisal system is able to make its goals clear to all the executives.
6. The performance of organization is assessed by self, superior or consultant.
7. Performance review discussions are conducted with a view to maintain quality and care.
8. Performance appraisal helps to win co-operation and team work.
9. The performance appraisal is helpful in reducing grievance among the employees.
10. The performance appraisal is helpful for improving personnel skills.
119
11. Training programmes are effective for individual and organizational development. 12. The performance ratings were done periodically.
13. The performance appraisal system helps to identify the strength and weakness of the employees.
14. The performance rating is helpful for the management to provide employee counseling.
15. Promotion is purely based on performance appraisal.
16. Management fixes salary through the performance appraisal.
17. Transfer, demotion, suspension and dismissal is based on performance appraisal.
18. The desired target of the organization is achieved through the performance appraisal.
19. Performance appraisal increases employee motivation.
120
20. Appraisal system keeps on the major achievements and failure or success of work.
21. Have a separate committee to review the performance appraisal result.
22. Suggestions if any : _____________________________________________________________________ _____________________________________________________________________
THANKYOU VERY MUCH FOR YOUR SUPPORT
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ORGANIZATIONAL STRUCTURE
Director Operation G.M. Production G.M. Administration & Maintenance Store Special Head
PPC Manager Leather
Chemical
Raw Supervisor
Wet Blue Technical Supervisor
Dye Crust Technical Supervisor
Finish Sales Supervisor
HRD & Personnel Accounts Manager
Maintenance Manager
Transport Manager Manager
Security Manager
Utilities Manager
Mechanical Engineers
Electrical Engineers Power Engineers Water Engineers ETP Engineers
Air
Boiler
HouseKeeping
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BIBLIOGRAPHY
1.
HUMAN RESOURCE MANAGEMENT. - Dr. Gupta C. B.
2. H.R AND PERSONAL MANAGEMENT - Aswathapa K. 3. RESEARCH METHODOLOGY - Kothari C.R. 4. BUSINESS RESARCH - Donal R. Cooper
WEBLIOGRAPHY
1. www.mirza.co.in 2. www.redtapeindia.com 3. www.appraisals.naukarihub.com 4. www.hradvise.com 5. www.citehr.com 6. www.wikkipedia.com
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OBJECTIVES OF THE STUDY

ABOUT THE TOPIC

HISTORY OF PERFORMANCE APPRAISAL

OBJECTIVES OF PERFORMANCE APPRAISAL

PROCESS OF PERFORMANCE APPRAISAL

ESTABLISHING PERFORMANCE STANDARDS:

COMMUNICATING THE STANDARDS:

MEASURING THE ACTUAL PERFORMANCE:

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE:

METHODS OF PERFORMANCE APPRAISAL

Essay Appraisal Method:

Straight Ranking Method:

Critical Incidents Methods:

Graphic Rating Scale:

Behaviorally Anchored Rating Scales:

Human Resource Accounting Method:

SIGNIFICANCE OF THE STUDY

To review the performance of the employees over a given period of time.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Strengths of Indian leather sector:

HISTORY OF THE COMPANY

Company Secretary: Secretary Auditors:

Mr. D.C. Pandey G.M. (Accounts) & Company

Corporate & Marketing Office:

Kanpur- Unnao Link Road, Sahjani, Unnao-209801

C-4, 5, 36 & 37, Sector-59, Noida-201303

MISSION & VISION

Batch wise quality inspection of finished products is undertaken.

1.88 0.23 0.06 0.38 3.61

1.58 0.32 0.50

2.78 0.60 0.40

PERFORMANCE OF THE COMPANY

Management Discussion and Analysis:

BALANCE SHEET AS AT 31ST MARCH, 2009

Capital Work in Progress

30,36,32,836 1,54,57,52,256 96,46,408

Investments Current Assets, Loans and Advances Inventories Sundry Debtors

16,18,05,550 2,18,40,461 7,47,67,264 1,34,06,08,979

18,86,43,162 3,49,65,702 4,65,60,954 1,48,79,58,818 47,57,23,607 1,01,22,35,211 2,56,76,33,875

Less : Current Liabilities and Provisions Net Current Assets Total

50,82,58,850 83,23,50,129 2,51,54,09,600

REPORT ON CORPORATE GOVERNANCE

4. Share Transfer and Investors Grievance Committee:

8. Market Price Data

National Stock Exchange

NOV. 08 DEC. 08 JAN. 09 FEB 09 MAR 09

09.80 12.50 13.70 10.30 09.35

06.50 06.50 09.40 08.55 06.70

5,05,689 9,74,541 5,12,311 1,97,107 10 15,76,370

10. Means of Communication:

11. Registrar & Transfer Agents:

12. Shareholding Pattern & Distribution Schedule as on 31st March, 2009:

b) Individual/ HUF c) NRIs / OCBs d) Clearing Members / Trust

18864998 992385 107853

20.35 1.07 0.11

Sub Total GRAND TOTAL

13. Share Transfer System:

14. Dematerialization of shares and liquidity:

17. Address for Correspondence: