AN ORGANIZATIONAL STUDY OF HINDUSTAN

AERONAUTICS LIMITED, BANGALORE.

AN SUMMER INTERNSHIP REPORT

Submitted by

ENIYAVAN A
(Reg. No: 611222631025)

In partial fulfillment for the award of the degree

Of
MBA
IN
DEPARTMENT OF MANAGEMENT STUDIES
KNOWLEDGE INSTITUTE OF TECHNOLOGY, SALEM

ANNA UNIVERSITY
CHENNAI 600 025
October-2023

1
 BONAFIDE CERTIFICATE

Certified that this project report titled “AN ORGANIZATIONAL STUDY ON

HINDUSTAN AERONAUTICS LIMITED, BANGALORE” is the bonafide work of

Mr. ENIYAVAN A Reg. No: 611222631025, II-MBA, KNOWLEDGE INSTITUTE OF

TECHNOLOGY,SALEM who carried out the research under my supervision. Certified further that to

the best of my knowledge the work reported herein does not form part of any other summer training

report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this

or any other candidate.

Signature of the Supervisor Signature of the Director

MS. D SENCHU LAKSHMI DR. A. STEPHEN

Submitted for the summer training Viva Voce Examination held on

Signature of the Internal Examiner Signature of the External Examiner

2
 DECLARATION

I affirm that the project work titled “AN ORGANIZATIONAL STUDY ON HINDUSTAN
AERONAUTICS LIMITED, BANGALORE ” is being submitted in partial fulfillment for the award of
MBA is the original work carried out by me. It has not formed the part of any other summer training report
submitted for award of any degree or diploma, either in this Institution or any other University.

Signature of the Candidate

(ENIYAVAN A)
Register No: 611222631025

I certify that the declaration made by the above candidate is true.

Signature of the Guide

Ms. D SENCHU LAKSHMI

3
 ACKNOWLEDGEMENT

I would like to express my special thanks to KIOT Trust for giving me an opportunity to do
my MBA Programme in Knowledge Business School, Salem.

I would like to express my gratitude to Dr. PSS.SRINIVASAN, B.E.,M.Tech. (IIT-B),

Ph.D., MISTE. ISHMT.,FMFPI, Principal, Knowledge Institute of Technology, Salem, for
giving me an opportunity and facility to complete this summer internship report successfully .

I would like to extend my sincere thanks to Dr. A.STEPHEN, M.A., M.B.A., M.Phil,
PGDHRM., Ph.D., Director, Management Studies, Knowledge Institute of Technology,
Salem, who is always motivating and inspiring students community.

I would like to express my deep sense of gratitude to my project guide,

Ms. D SENCHU LAKSHMI Assistant Professor, Management Studies, Knowledge Institute of
Technology, Salem for the extraordinary guidance which helped to complete the summer internship
report successfully.

I would like to express my deep sense of gratitude to my external guide, Ms. JYOTHI
BEDI, SENIOR HR HINDUSTAN AERONAUTICS LIMITED ,BANGALORE for her
guidance and help to go through my project work in his esteemed organization.

I would like to extend my sincere thanks to All my Teaching staff and Non- Teaching
Staff of MBA@Knowledge Institute of Technology, Salem finally express my sincere thanks
to my beloved Parents and Friends.

ENIYAVAN A

4
 ABSTRACT

MBA is a stepping - stone to the management career and to develop a good manager.
It is necessary that the theoretical must be supplemented with exposure to the real
environment. The internship was done for the objective of getting practical
knowledge in the HR department of the Organisation. Thus the summer intern
formulated by Anna University for MBA graduates. The interns was carried out in
Hindustan Aeronautics Limited polymers, which is located in Bangalore.

5
6
7
CHAPTERS TABLE OF CONTENTS PAGE NO
I Abstract of the study 1
II Introduction of the study 8
III Industry analysis 9
IV Company profile 11

 Origin of HAL
 Vision of HAL
 Mission of HAL
 Values of HAL

V Objectives of the study 16

VI Achievements 17
VII Organizational growth of HAL 25
VIII Various functional areas 31

a) Human Resource
b) Finance
department
c)Bills Payable
d)Bills Receivables
e) Book Keeping

IX Swot Analysis 41
X Findings 42
XI Suggestions 42
XII Conclusion 43
XIII Weekly report 44
XIV References 48

8
 INTRODUCTION
Hindustan Aeronautics Limited (HAL) is an Indian Public sector aerospace and defence company,
headquartered in Bangalore. Established on 23 December 1940, a HAL is one of the oldest and largest
aerospace and defence manufacturers in the world. HAL began aircraft Manufacturing as early as 1942 with
licensed production of Harlow PC-5, curtis P-36 Hawk and Vultee A-31 Vengeance for the Indian Air
Force. HAL currently has 11 dedicated Research and development (R&D) centres and 21 manufacturing
divisions under 4 production units spread across India. HAL is managed by a board of directors appointed
by the president of India through the Ministry of Defence, Government of India. HAL is currently involved
in designing and Manufacturing of fighter jets, helicopters, jet engine and marine gas turbine engine,
avionics, software development, spares supply, overhauling and upgrading of Indian military aircraft. The
HAL HF-24 Marut fighter-bomber was the first indigenous fighter aircraft made in India.

HISTORY
 Workers check new fuel tanks during World War II.

 HAL was established as Hindustan Aircraft Limited in Bangalore on 23 December 1940 by

Walchand Hirachand in association with the Kingdom of Mysore.(10) Walchand Hirachand became
chairman of the company. The company’s office was opened at a bungalow called “Eventide” on
Domlur Road.
 The organisation and equipment for the factory at Bangalore was set up by Willam D. Pawley of the
Intercontinental Aircraft Corporation of New York. Pawley obtained a large number of machine-
tools and equipment from the United States.
The Indian Government bought a one- third stake in the company and by April 1941 by investing ₹25lskh as
it believed this to be a strategic imperative. The decision by the government was primarily motivated to
boost British military hardware supplies in Asia to counter the increasing threat posed by imperial Japan
during Second World War. The Kingdom of Mysore supplied two directors, Air Marshal John Higgins was
resident director. The first aircraft built was a Harlow PC-5 (11) on 2 April 1942, the government announced
that the company had been nationalized when it bought out the stakes of Seth Walchand Hirachand and
other promoters so that it could act freely.

9
The Mysore Kingdom refused to sell its stake in the company but yielded the management control over to
the British Indian Government. In 1943 the Bangalore factory was handed over the United States Army
Forces but still using Hindustan Aircraft management.
The first aircraft to be overhaul was a consolidated PBY Catalina followed by every type of aircraft
operated in India and Burma. When returned to Indian control two years later the factory had become one of
the largest overhaul and repair organisations in the East. In the post war reorganization, the company-built
railway carriage as an interim activity.

INDUSTRY ANALYSIS
PRODUCTION MANAGEMENT
Production is the creation of goods and services. The production activity is nothing but the step-by-step
conversion of raw materials into final product as per customer requirement by value addition. This is done in
factories which have manufacturing process.
“Production management is concerned with those processes which convert the inputs into outputs. The input
are various resources like raw materials, men, material, machines etc. and the outputs are goods and
services.”
These days, both production and service organisations fall within the scope of production management.
Thus, production management which was earlier considered as manufacturing management only, now after
the inclusion of services within its scope, is broadly known as operations management.
Production is an organised activity of a manufacturing organisation. Every organisation tries to identify and
see the degree of their attainment. The identification of objectives increases the consciousness of personnel
working in the organisation since their performance is to be judged against the objectives.
The globalisation of economies has created intense competition among producers. In such a cut-throat
competition, only those will survive who will produce as per the requirements of the users and at a
reasonable cost.

10
Manufacturing is the value-added production of merchandise for use or sale using labour and machines,
tools, chemical and biological processing, or formulation. The term may refer to a range of human activity,
from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials
are transformed into finished goods on a large scale. Such finished goods may be sold to other
manufacturers for the production of other, more complex products, such as aircraft, household appliances or
automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users and
consumers.
Manufacturing engineering or manufacturing process are the steps through which raw materials are
transformed into a final product. The manufacturing process begins with the product design, and materials
specification from which the product is made. These materials are then modified through manufacturing
processes to become the required part.
According to some economists, manufacturing is a wealth-producing sector of a country, whereas a service
sector tends to be wealth-consuming. [1][2] Emerging technologies have provided some new growth in
advanced manufacturing employment opportunities in the. Manufacturing provides important material
support for national infrastructure and for national defence.
The negative costs of manufacturing can also be addressed legally. Developed countries regulate
manufacturing activity with labour laws and environmental laws. Across the globe, manufacturers can be
subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities.
Labour unions and craft guilds have played a historic role in the negotiation of worker rights and wages.
Indian industry today is on the threshold of entering into a new era where it will assume greater
responsibility in making the nation self-reliant in Defence Production. The resurgence of India’s
manufacturing sector has been remarkable. Not only are the profits soaring, the sector is also making its
presence felt abroad as many Indian firms are becoming transnational companies.
The Indian manufacturing sector is internationally competitive with international quality standards,
efficiency and manufacturing facilities. India is fast developing into a manufacturing hub for world
corporations wanting to leverage the sector’s proven skills in product design, reconfiguration and
customization with creativity, assured quality and value addition.
India, also keen to strengthen its own aerospace industry and has asked major weapon exporting countries to
transfer technology to India.

Indian Aerospace Industry

The Indian Aerospace Industry is witnessing an unprecedented growth. Hindustan Aeronautics Limited
(HAL), which is fully owned by the Government of India, is the premier aerospace company in the country.
HAL has played a major role in the Defence aviation of India through design, manufacture and overhaul of
fighters, trainers, helicopters, transport aircraft, engines, avionics and system equipment. HAL is now
ranked 34th in the list of world’s top 100 defence companies.
HAL is a major partner for the Space programmes of Indian Space Research Organization (ISRO) and
manufactures structures and assemblies for the launch vehicles and satellites at its dedicated Aerospace
Division in Bangalore. The civil aviation sector in India is growing rapidly.

11
 It has recorded annual growth of over 41% in passenger traffic during in the last two years. In fact, it has
contributed significantly to the growth of international civil aviation sector. The rapid growth of civil
aviation has put extreme pressure on the existing civil aviation infrastructure. As a result, the thrust is now
on modernization of airports, communications, navigation and surveillance systems for air traffic
management, radars and facilities for Maintenance Repair and Overhaul of aircraft and sub systems.
There is a thus enormous potential and huge opportunity for collaboration and creation of joint ventures in the
aerospace sector in India for establishing Maintenance Repair Overhaul (MRO) facilities for civil and military aircraft,
overhaul and maintenance of aero engines and production of avionics, components and accessories both in the civil
and military aviation sectors. Major global aviation industry are already eyeing the local market in India and scouting
for outsourcing aerospace and defence products as India is fast emerging as a centre for engineering and design
services.

ORIGIN OF HAL
Hindustan Aeronautics Limited
HAL, a Defence PSU, is a major player in the global aviation arena. It has built up comprehensive skills in
design, manufacture and overhaul of fighters, trainers, helicopters, transport aircraft, engines, avionics and
system equipment. Its product track record consists of 12 types of aircraft from in-house R&D and 14 types
by license production inclusive of 8 types of aero engines and over 1000 items of aircraft system equipment
(avionics, mechanical, electrical). HAL has produced over 3550 aircraft, 3650 aero-engines and overhauled
around 8750 aircraft & 28400 engines besides manufacture/overhaul of related accessories and avionics. The
Company has the requisite core competence base with a demonstrated potential to become a global player.
HAL has 19 production divisions for manufacture and overhaul of aircraft, helicopters, engine and
accessories. It has also 9 R&D Centers to give a thrust to research & development. HAL’s major
supplies/services are to Indian Air Force, Indian Navy, Indian Army, Coast Guard and Border Security
Force. Transport aircraft and Helicopters have been supplied to Airlines as well as State Governments. The
Company has also achieved a foothold in export in more than 20 countries, having demonstrated its quality
and price competitiveness. HAL is a major partner for the Space Vehicle programmes of the Indian Space
Research Organization. It has also diversified into the fields of industrial & marine gas turbine business and
real-time software business.
HAL is now ranked 34th in the list of world’s top 100 defence companies. HAL continues its growth with a
sales turnover of 2.1 Billion US Dollars during the financial year 2007-08. It has doubled its turnover in 3
years. It has declared profit before tax of 538 Million US Dollars. The company has made supplies to almost
all the major aerospace companies in the World like Airbus, Boeing, IAI, IRKUT, Honeywell and Ruag etc.

12
All the production Divisions of HAL have ISO 9001-2000 accreditation and sixteen divisions have ISO-
14001-2004 environment management system (EMS) certification. Six divisions have also implemented the
aerospace sector quality management system requirements stated in As 9100 standard and obtained
certification. Four of these divisions have also obtained NADCAP certification (National Aerospace
Defence Contractors Accreditation programme –USA) for special processes such as NDT, heat treatment,
welding etc.
In order to meet with the challenges in the 21st Century, the Company has redefined its mission as follows:
“To become a globally competitive aerospace industry while working as an instrument for achieving self-
reliance in design, manufacture and maintenance of aerospace equipment, Civil Transport Aircraft,
helicopter & missiles and diversifying to related areas, managing the business on commercial lines in a
climate of growing professional competence.”
HAL has successfully designed & developed the Advanced Light Helicopter, which is currently being
operated by the Defence Services of India and private Companies. The Advanced Light Helicopter also has
great export potential. Apart from licence production of front line fighters like Su-30 MKI, HAL is also
developing the following products through design and development:
• Light combat helicopter (LCH)
• Weaponization of Advanced Light Helicopter (ALH)
• Tejas-Light Combat Aircraft

The history and growth of the Hindustan Aeronautics Limited is synonymous with the growth of
Aeronautical industry in India over the past 70 years. The Company which had its origin as the Hindustan
Aircraft Company was incorporated on 23 Dec 1940 at Bangalore by Shri Walchand Hirachand a farsighted
visionary in association with the Government of Mysore with an Authorized Capital of Rs.4 crores (Paid up
capital Rs.40 Lakh) and with the aim of manufacturing aircraft in India. In March 1941, the Government of
India became one of the shareholders in the Company holding 1/3 of its paid-up capital and subsequently
took over its management in 1942. In collaboration with the InterContinental Aircraft Company of USA,
Hindustan Aircraft Company commenced its business of manufacturing of Harlow Trainer, Curtiss Hawk
Fighter. In Dec 1945,the company was placed under the administrative control of Min. of Industry &
Supply. In January 1951, Hindustan Aircraft Private Limited was placed under the Administrative control of
Ministry of Defence. The Company had built aircraft and engines of foreign design under license, such as
Prentice, Vampire and Gnat aircraft. It also undertook the design and development of aircraft indigenously.
In August 1951, the HT-2 Trainer aircraft, designed and produced by the company under the able leadership
of Dr.V.M.Ghatge flew for the first time. Nearly 200 Trainers were manufactured and supplied to the Indian
Air Force and other customers. With the gradual building up of its design capability, the company
successfully designed and developed four other aircraft i.e. twoseater 'Pushpak' suitable for flying clubs,
‘Krishak' for Air Observatory Post (AOP) role, HF-24 Jet Fighter '(Marut)' and the HJT-16 Basic Jet Trainer
'(Kiran)'. Meanwhile, in August 1963, Aeronautics India Limited (AIL) was incorporated as a Company
wholly owned by the Government of India to undertake the manufacture of the MiG-21 aircraft under
license. In June 1964, the Aircraft
Manufacturing Depot which was set up in 1960 as an Air Force unit to produce the Airframe for the HS-748
transport aircraft was transferred to AIL. Soon thereafter, the Government decided to amalgamate Hindustan

13
Aircraft Limited, with AIL so as to conserve resources in the field of aviation where the technical talent in
the country was limited and to enable the activities of all the aircraft manufacturing units to be planned and
co-ordinated in the most efficient and economical manner. Amalgamation of the two companies i.e.
Hindustan Aircraft Limited and Aeronautics India Limited was brought about on 1st Oct 1964 by an
Amalgamation order issued by the Government of India and the Company after the amalgamation was
named as "Hindustan Aeronautics Limited (HAL)" with its principal business being design, development,
manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics,
instruments and accessories.

GROWTH AND CONSOLIDATION

In 1970, a separate division was set up exclusively for manufacture of 'Chetak' and 'Cheetah' Helicopters in
Bangalore under license from M/s SNIAS, France. A new division was also established to manufacture
aircraft instruments and accessories at Lucknow. License agreements were entered into with M/s Dunlop of
U.K. for Wheels and Brakes, Dowty for under carriages and Hydraulic equipment, and Normal air Garret for
cabin air pressurization and air-conditioning equipment, Smiths of UK, SFENA and SFIM of France for
panel instruments and Gyros, Martin Baker of UK for ejection seats and Lucas for engine fuel systems, for
fitment on Marut,Kiran, Ajeet, Chetak, Cheetah and Jaguar. Similar type of arrangements was agreed with
USSR authorities for manufacture of accessories for MiG-21 series of Aircraft.Design and Development of
Basant agricultural aircraft was undertaken between 1970 and 1974 and design and development of Ajeet, an
improved version of Gnat was undertaken between 1972 and 1980. In 1976 projects were sanctioned for
design & development of the HPT-32 elementary piston engine trainer, Kiran MK II (an improved version
of Kiran MK I / IA) and Ajeet Trainer as well as for Advanced Light Helicopter. In 1971,Avionics Design
Bureau at Hyderabad was formed for the development and manufacture of IFF, UHF, HF,Radio
components, Radio Altimeter, Ground Radars etc., During 1973, a Design wing was set up at Lucknow for
design and development of accessories such as under-carriage and hydraulic systems, air-conditioning and
pressurization systems, fuel control/gauging systems, generator control and protection units, static inverters
etc.,In 1979, after seeking a license agreement with British Aerospace, the Company started manufacture of
'Jaguar' aircraft and with Rolls Royce-Turbomeca for Adour engines. License agreements were also signed
with different firms for manufacture of Avionics and accessories.In 1982, the Company entered into an
agreement with USSR and started production of Swing-wing MiG-27M aircraft as a follow on project for
MiG-21 BIS at Nasik Division of the Company.During 1982, Korwa Division of HAL in District Sultanpur
(U.P.) was established for manufacture of Inertial Navigation System (INS), Head Up Display and Weapon
Aiming Computer (HUDWAC), Combined Map and Electronics Display (COMED), Laser Ranger and
Marked Target Seeker (LRMTS), Auto Stabilizer and Flight Data Recorder for Jaguar and similar advanced
systems for MiG-27M.
HAL is actively engaged and is contributing to the space programmes of the country. A separate Aerospace
division was established in 1988. This Division is dedicated to space programme to meet the growing
requirement of Indian Space Research Organization.
In order to capture the growing market in the industrial gas turbine engines, a new Division called the
Industrial & Marine Gas Turbine Division, was formed in 1998. Currently the Division is undertaking
Repair and Overhaul work related with Industrial Avon Engines and Allison 501K and 571K series. In
addition to this manufacture of LM 2500 engine is also being undertaken.

14
 The Division is doing the overhaul of various existing gas turbines in the country, thus providing cost-
effective services to users such as ONGC, GAIL, TNEB, RSEB etc.,
With the signing of agreement with Russian partners to take up license manufacture of SUKHOI 30 MKI
Aircraft the Nasik Division which had been engaged in manufacture & overhaul of MiG series Aircraft and
lately upgrade of MiGB is aircraft, had to be expanded. Accordingly it was decided in February, 2002 to
have two Divisions at Nasik i.e. Aircraft Manufacturing Division for Su-30 MKI production and Aircraft
Overhaul Division for overhaul and upgrade of existing MiG Series aircraft. Consequent on decision to
manufacture AL 31 FP Engine for SU 30 MK1 Aircraft, under license from Russian Manufacturer, it was
decided to establish a new Division at Koraput to take up the project in February, 2002. The project
activities under the new Division have accordingly commenced. In order to facilitate Helicopter Division to
dedicate itself exclusively for ALH manufacture and related activities,the manufacturing and repair /
overhaul activities of Chetakand Cheetah helicopters and their variants where transferred to the Barrackpore
Branch Factory and Barrackpore Division was formed and a new MRO Division created to carry out ALH
Overhaul activities in 2006 Composites material is being used extensively in aircraft manufacturing for its
low weight. A new Composite Manufacturing Division was formed in Mar 2007 with a dedicated
manufacturing facility for composite materials for in-house projects such as ALH, LCA etc. Facilities
Management Division was created in Dec 2007 for effective and focused attention towards the common
services at Bangalore. In order to boost R & D activities in-house, Mission & Combat System R & D Center
was formed to concentrate on Mission systems, Aircraft upgrades and technology development in Nov 2008.
Additionally, Strategic electronics Factory at Kasaragod, Kerala, a unit of HAL Hyderabad, was established
Nov 2012. The in house development of Light Combat Aircraft (LCA) will give major boost to the
modernization program of our Defense Services. For production of LCA, a separate Division was
established at Bangalore for production of Light Combat Aircraft in Mar 2014.

RESEARCH AND DEVELOPMENT CENTRE

The Company has a comprehensive Design organization in its divisions. Out of 29 types of aircraft
produced so far, 15 have been of indigenous design. The Company has long experience in design and
manufacture of a diversified range of aircraft and its systems. For further growth of the Company it was
considered necessary for HAL to strengthen its R&D capability and accordingly the erstwhile Design
Bureaus have been restructured and reorganized into the following R&D Centers:
1.Aircraft R&D Centre, Bangalore Design and Development of Fixed Wing aircraft (LCA, IJT, MTA,
FGFA, UAV)
2.Rotary Wing Aircraft R&D Centre, Bangalore Design and Development of Rotary Wing aircraft (ALH,
LCH, LUH, MLH, NRUAV)
3.Mission & Combat Systems R&D Centre, Bangalore Mission systems, Aircraft upgrades and technology
development
4.Aero Engine R&D Centre, Bangalore Small, Medium Engines & Test Bed design
5.Strategic Electronics R&D Centre, Hyderabad

15
VISION, MISSION AND VALUES OF HAL
Vision
To become a significant global player in the aerospace industry.
Mission
To achieve self-reliance in design, development, manufacture, upgrade and maintenance of aerospace
equipment diversifying into related areas and managing the business in a climate of growing professional
competence to achieve world class performance standards for global competitiveness and growth in exports.
Values
1.Customer satisfaction
They are dedicated to build a relationship with their customers where they become partners in fulfilling their
mission. They strive to understand their customers' needs and to deliver products and services that fulfill and
exceed all their requirements.
2.Commitment to total quality
They are committed to continuous improvement of all the activities. They will supply products and services
that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as
desired by the customers.
3.Cost and time consciousness
They believe that their success depends on their ability to continually reduce the cost and shorten the
delivery period of the products and services. They will achieve this by eliminating waste in all activities and
continuously improving all processes in every area of their work.

16
4.Innovation and creativity
They believe in striving for improvement in every activity involved in their business by pursuing and
encouraging risk-taking, experimentation and learning at all levels within the company with a view to
achieving excellence and competitiveness.

5.Trust and team spirit

We believe in achieving harmony in work life through mutual trust, transparency, co-operation and a sense
of belonging. We will strive for building empowered teams to work towards achieving organizational goals.

6.Respect for the individual

We value our people. We will treat each other with dignity and respect and strive for individual growth and
realization of everyone's full potential.

7.Integrity
They believe in a commitment to be honest, trustworthy and fair in all our dealings and commit to be loyal
and devoted to the organization. They will practiceself-discipline and own responsibility for their actions.
They will comply with all requirements so as to ensure that the organization is always worthy of trust.

OBJECTIVES OF HAL

• To ensure availability of Total Quality People to meet the Organizational Goals and Objectives.
• To facilitate continuous improvement in Knowledge, Skills and Competence (Managerial, Behavioral and
Technical).
• To Promote a Culture of Learning, Innovation and Achievement with emphasis on Integrity, Credibility
and Quality.
• To motivate workforce through empowerment of Individuals and Team- building.
• To Play a pivotal role directly and significantly to enhance Productivity, Profitability and the Quality of
Work Life
• To enhance organizational Learning

17
ACHIEVEMENTS OF HAL

2009 – 2010
• “MoU Excellence Award” for the top performing CPSEs for the year 2008-09.
• Raksha Mantri's Award for Excellence for the years 2008-09, for Export under the “Institutional” category.
• International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark of recognition to the
Indian Industry for excellence in innovation, indigenous technology and entrepreneurship under the
following categories:-
o Outstanding contribution to the Defence Industry.

o Most Influential Company of the year

o Excellence in Indigenous Technology

o Excellence in Exports

• Golden Award for Quality and Business Prestige from Other ways Management Association Club, France
• Performance Excellence Award -2009 (Organization) for the year 2008-09 by Institution of Industrial
Engineering.
• Foundry & Forge Division, Bangalore conferred with “Casting of the Year 2010” award to Main Gear Box
(MGB) casting of ALH from the Institute of Indian Foundry men.
• Aerospace Division, Bangalore: Runner-Up in “Viswakarma Rashtriya Puraskar and National Safety
Award – 2008 “instituted by Ministry of Labor, Government of India
• Engine Division, Bangalore won Rajiv Gandhi National Quality Awards 2009, instituted by Bureau of
Indian Standards, New Delhi for Commendation for Large Scale Manufacturing Industry-Engineering &
Others.
• Avionics Division, Korwa conferred with “IMTMA-SIEMENS Productivity Championship Award” for
excellence and outstanding work in the area of productivity.
• Shri G.C Bhagwanani, Chief Supervisor, HAL- TAD, Kanpur, was awarded the Prime Minister’s “Shram
Shree” Award for 2006 on 15th Sept 2010.
• Shri A.Selvaraj, AGM (Mfg), Foundry & Forge Division, Bangalore was awarded the “Foundry man of the
year 2010” by the Institute of Indian foundry men.
• Shri Mohan Lal, Chief Supervisor of Accessories Divison, Lucknow was selected for Prime Minister’s
“ShramVir” for the year 2000

2010 -2011
• RakshaMantri’s award for excellence in performance for 2009-10. The award was handed over by
Hon’bleRakshaMantri, to off. Chairman, HAL on 14 Nov 2011.

18
• “Regional Export Award” from EEPC India for the year 2009-10.
• Avionics Division, Korwa: RakshaMantri’s award for Excellence 2009-10 in the category of Import
substitution.
• Aerospace Division, Bangalore: Gold Medal award by Society of Aerospace Manufacturing Engineers
(SAME), Trivandrum, for the Year 2010 for its outstanding Contributions in the Field of Aerospace
Manufacturing.
• Overhaul Division, Bangalore: "UTTAMA SURAKSHA PURASKARA” award from the National Safety
Council - Karnataka Chapter, in recognition of best safety performance and management system for the year
2009-10.
• Aircraft Manufacturing Division, Nasik: Gold Green-tech Environment Excellence award-2011 in the
aviation sector from Genentech Foundation, New Delhi.
• Foundry and Forge Division, Bangalore: -
• First Prize for the Best Exhibition Stall in the International Conference and Exhibition (INCAL) on
Aluminum, held from 6 Dec to 8 Dec 2011 at Hyderabad for displaying high end technologies, Capabilities
and its products
• Quality circle team “Super finish” won “Distinguished award” in ICQCC 2011 (International convention
on quality control circles) held in Japan in Oct 2011
• Four Quality Circles won the “Gold Category” Award from CCQC Bangalore Chapter
• Avionics Division, Hyderabad: Quality circle team “Novel” won “Distinguished award” in ICQCC 2011
(International convention on quality control circles) held in Japan in Oct 2011
• Composite Manufacturing Division, Bangalore: Quality circle team “Pragathi” won “Distinguished award”
in ICQCC 2011 (International convention on quality control circles) held in Japan in Oct 2011
• Shri PrashantsinghBhadoria, Manager (Design) of ARDC, Bangalore has been selected for the prestigious
Course Directors Award in the MS Aerospace Vehicle Design course at Cranfield
• Dr. R RBhat, Chief Manager (Lab) of Foundry and Forge Division, Bangalore was awarded the prestigious
“2011 Metallurgist of the year” instituted by the Ministry of Steel, Government of India
2014– 2015
• “MoU Excellence Award” for the top performing CPSEs for the year 2006-07(Top Ten Public Sector
Enterprises). HAL has been receiving awards consecutively since 2001-02.
• RakshaMantri’s Award for Excellence for the year 2007-08 under the “Institutional” category.
• “Regional Export Award” from EEPC, India for the year 2007-08.This award was presented on 21st Feb
2010 in Maldives.
• “The Supplier of the year 2009” by Boeing, USA.
• Foundry& Forge Division, Bangalore conferred with International Diamond Star Award for Quality in the
realm of customer satisfaction, leadership, innovation and technology as established in QC100 TQM Model.

19
• Foundry& Forge Division, Bangalore conferred with “GargiHuttenes-Albertus Green Foundry Award” of
the year 2008-09 by Institute of Indian Foundry men.

Aircraft Division Bangalore

Aircraft Division was established in the year 1940. Since inception, the Division has manufactured a variety
of Aircraft both license as well as indigenously designed and developed .Apart from 1st of Hawk Mk 132
Aircraft (66 Nos.), the division has signed contract with Indian Air Force and Indian Navy to supply
additional 57 Hawk Aircraft (40 Nos. Hawk for Indian Air force, Indian Navy).Currently, the Division is
manufacturing The Hawk Mk.132, a transonic tandem-seat ground attack / trainer powered by single Rolls
Royce Adour Mk.871 turbo fan under license from BASE SYSTEMS, UK. The Division has received the
approval of CAR-21 from DGCA for manufacture of CIVIL Aircraft components. The Pilot Project for the
implementation of Enterprise Resource Planning (ERP) was launched in the Division in
July 2004. The ERP system was made operational from Nov-2006. Apart from the existing system, many
additional ERP facilities being integrated.

20
OUTSOURCING
Aircraft Division, is looking forward for subcontractors in the area of Machining, Sheet metal forming,
welding, Pipe bending, Aircraft Plastics & Transparencies, FRP mode components, Surface and heat
treatment structural assemblies and detail / assembly tool manufacture for the manufacturing programs for
Defence customers as well export customers. The support will be in the form of:
•Sheet metal forming involving Power Brake, Rubber Presses, Stretch Presses, Drop Stamping, Hand
Forming with Die Blocks etc.
•Welding of Aluminium and steel components with metal arc as well as in inert gas atmosphere, as well as
spot and seam welding
•Pipe line manufacture with conventional as well as CNC pipe bending.
•Plastics / transparencies components manufacture involving vacuum and blow forming of stretched acrylic.
•FRP forming of complex shaped pipe and components.
•Surface / Protective treatment like Electro Plating, Anodizing Cad-plating as well as chemical milling
wherever necessary.
•Head treatment operation for steel and Aluminum alloys like normalizing, tempering, Case Hardening and
carbonizing, Annealing, Solution and precipitation hardening.
•Electrical looms / cables fabrication involving operation like crimping of lugs and soldering of sockets etc.
An IAF BAe Hawk being licence-produced at the HAL Hawk production facility in Bangalore
• The US$35 billion fifth-generation fighter jet programme with the Sukhoi Corporation of Russia.
• US$1 billion contract to manufacture aircraft parts for Boeing.
• Multi-role transport aircraft project with Ilyushin of Russia worth US$600 million.
• Contract to manufacture 1,000 TPE331 aircraft engines for Honeywell worth US$200,000 each (estimates
put total value of deal at US$200 million).
• US$120 million deal to manufacture Dornier 228 for RUAG of Switzerland.
• Manufacture of aircraft parts for Airbus SAS worth US$150 million.
• US$100 million contract to export composite materials to Israel Aircraft Industries.
• US$65 million joint-research facility with Honeywell and planned production of Garrett TPE331 engines.
• US$50.7 million contract to supply Advanced Light Helicopter to Ecuadorian Air Force. HAL will also
open a maintenance base in the country.
• US$30 million contract to supply avionics for Malaysian Su-30MKM
21
• US$20 million contract to supply ambulance version of HAL Dhruv to Peru.
• Contract of 3 HAL Dhruv helicopters from Turkey worth US$20 million.
• US$10 million order from Namibia for HAL Chetak and Cheetah helicopters.
• Supply of HAL Dhruv helicopters to Mauritius' National Police in a deal worth US$7 million.

Domestic agreements

• 200 HAL Light Combat Helicopters for the Indian Air Force and 500 HAL Dhruv helicopters worth
US$5.83 billion.
• US$900 million aerospace hub in Andhra Pradesh.
• US$57 million upgrade of SEPECAT Jaguar fleet of the Indian Air Force.
• US$55 million helicopter simulator training facility in Bangalore in collaboration with Canada's CAE.
• 64 MiG-29s to be upgraded by HAL and Russia's MiG Corporation in a programme worth US$960
million.

HAL Tejas

• HF-24 Marut — Mk1 and Mk1T

• Tejas — Light Combat Aircraft
• Su-30MKI — a derivative of the Sukhoi Su-27, co-developed with Sukhoi Corporation
• FGFA — under joint development with Sukhoi Corporation

22
Helicopters
HAL Dhruv of the Indian Army
• Dhruv — Advanced Light Helicopter
• Light Combat Helicopter
• Light Utility Helicopter
• Indian Multi-role Helicopter Rudra - Attack helicopter

23
Engine

• GTRE GTX-35VS Kaveri- co-developed with GTRE (DRDO) (under development; developed into
following programmes)
• PTAE-7- For indegeniously designed Lakshya PTA
• GTSU-110 - for starting main engine GE404 or Kaveri of LCA Tejas
• HAL/Turbomeca Shakti - co-developed with Turbomeca for HAL Dhruv Helicopter to be used in light
utility helicopter

Trainer aircraft

HAL Dhruv of the Indian Army

• HT-2 - First Company design to enter production.
• HPT-32 Deepak - Basic trainer in service for more than three decades.
• HJT-16 Kiran — Mk1, Mk1A and Mk2 - Turbojet trainers scheduled to be replaced with IJT like HJT-36
Sitara
• HTT-34 - Turboprop version of HPT-32 Deepak
• HTT-35 - Proposed replacement for HPT-32 basic trainer in early 1990s; not pursued
24
• HJT-36 Sitara — Intermediate jet trainer (under development)

Transport and passenger aircraft

 Saras, developed by HAL Lucknowand National Aerospace Laboratories

 Saras — under joint development with the National Aerospace Laboratories (NAL)

 HAL Multirole Transport Aircraft — under joint-development with Ilyushin Design Bureau.

Licensed production

HAL licensed-built Su-30 MKI

• Harlow PC-5 — first aircraft assembled by HAL
• Percival Prentice — 66 built by HAL
• Mikoyan-Gurevich MiG-21 — FL, M, Bis and Bison upgrades variants
• HAL Ajeet — improved version of the poland Gnat
• Mikoyan-Gurevich MiG-27 — M variant
• SEPECAT Jaguar— IS, IB and IM variants
• BAE Hawk — scheduled production run of 42 aircraft

25
• Sukhoi Su-30 — MKI variant
• Dornier Do 228 — 117 built + fuselage, wings and tail unit for production of the upgraded Do 228 NG
variant
• Aerospatiale SA 315B Lama — HAL Cheetah, Lancer, Cheetal Variants
• Aerospatiale SA 316B Alouette III — HAL Chetak, Chetan Variants
• HAL HS 748 Avro — Modified for military usage, includes Series 2M variant with large freight door
• Rolls-Royce Turbo Adour Mk 811 — Engine for SEPECAT Jaguar
• Rolls-Royce Turbo Adour Mk 871 — Engine for BAE Hawk Mk 132
• Garrett TPE331-5 — Engine for Dornier Do 228
• Turbo TM 333 — Engine for HAL Dhruv.

ORGANISATIONAL GROWTH OF HAL

1940- HAL was setup by Seth Walchand Hirachand in association with the government of mysuru as a
private limited company.
1941- First product HARLOW TRAINER AIRCRAFT and CURUNESS HAWK AIRCRAFT handed over
the government of India.
1942- Company was handed over to US Airforce. HAL repaired over 100 different varieties of aircraft and
3800 piston engines.
1945- Government of India took over the management of HAL again after the Second World War.
1949- First perceived aircraft assembled.
1951- The control of HAL was shifted to ministry of defence from ministry of industry.
1956- HAL comes under public sector.
1960- HAL India Limited was formed to manufacture MIG-21 aircraft. Three factories at Nasik, Koraput
and Hyderabad were established.
1964- HAIL was dissolved and its assets merged with aeronautics India Limited and company by the name
of HAL was formed.
1969- An agreement with USSR AWS reached for the license production of MIG-21 aircraft.
1970- Aircraft divisions were established to manufacture aircrafts.
1973- Lucknow division was formed for manufacture of more than 500 types of instruments and accessories.
1976- An agreement with USSR for license for MIG-21 and BIS-aircraft.
1979- An agreement with British aerospace for manufacture of JAGUAR aircraft.
1983- Karwa division And Mirage division for HAL formed.
26
1990- Design and Development of advanced light aircraft.
1998- IGMT a new division was established at Bengaluru.
2000- Establishment of airport service centre for co-ordinating the operations.
2002- Established of Sukhai engine division at Koraput.
2006- HAL ranked 45th among top defence firm in the world.
2006- 19th July HAL Co-operation in aero Structure.
2006- HAL launches newspapers from mink square on 1st September.
2006- 14th October, HAL launches aircraft ambulance, charter service named “vayu vahan”.
2006- 20th December, HAL receives EEPC award for the year 2004-05.
2007- 22nd June, HAL gets Navaratna status.
2007- 22nd June, Ashok Nayak was HAL’s new MD.
2007- 6th August, HAL ranked 34th among top 100 defence firm in the world.

PRODUCTS AND SERVICES OF HAL

1.Su 30 MKI: Twin seater ,multi-role, long range fighter/ Bomber.

2. MiG-27 M: Single seater tactical fighter/bomber with variable sweep wings
3. Metallic drop tanks
4. Under carriage: the division has facilities and expertise in the manufacturing and overhaul of undertakings
of both MiG-21 variants.

PROJECTS OF HAL

1. 50 AND 100 SEATER AIRCRAFT

The company has signed “HEADS OF AGREEMENT” in March 1998 with M/s Aero
International(regional) France for the co-production of 50-70 seater aircraft in India and also to export the
feasibility of the programme and the marketing of ATR family of aircraft in India.
2. SARAS
The company has concluded an MOU to participate in the prototype development of a 14seater multi role
twin turbo-prop SARAS aircraft programme of National Aerospace Laboratories (NAL). The company
would design and develop wings, Fuselage and Empennage parts, Landing gear, Hydraulic and Electrical
systems for SARAS.

27
3. ADVANCED LIGHT HELICOPTER(ALH)

This is a Top most helicopter for Military and Civil roles designed and manufactured by HAL after research
in collaboration with Eurocopter. This is a 14 seater helicopter that is useful for Army, Navy, Air Force and
Civil roles. This versatile Helicopter of diverse applications is crafted carefully to meet International
requirements and is among the best in the world in 4.5 ton class.

4. MIG SERIES

MiG is manufactured under license from former USSR, MIG 27M is a single seater, Single Engine, Variable
Geometry Fighter Bomber equipped with advanced high accuracy integrated Nav Attack System and active/
passive ECM systems. HAL manufactures MIG besides undertaking repairs and overhaul of these aircrafts.

5. CHETAK HELICOPTERS

The Chetak helicopter is a multi role, 7seater helicopters, spacious and simple in design. It is highly
maneuverable and well suited to fly over sea, Tropical and Desert conditions. This helicopter can be used for
variety of civil and military roles like communication, Rescuing operation, Aerial survey, Cargo and
Passenger transport, Combat Armed with missiles and Torpedoes, it also caters to the requirement of Anti-
Submarine and Anti-Tank Warfare.

6. CHEETAH HELICOPTER

This light weight high performance helicopters are designed for operations over a wide range of weights
centres of gravity and altitude conditions. This 5 seater helicopter excels in observation, surveillance,
logistics support, Earth resource survey and rescue operation. Cheetah incorporates the latest technologies
viz, Hydraulic servo controls, ultra sensitive constant speed governor and an automatic starting system
facilitating starting and take off in less than a minute.

7. MILITARY JET TRAINER AND ADVANCED JET TRAINER

The company has initiated design and development of new trainer (NJT) which would replace aging Kiran
Aircraft of India Airforce due to pace out commencing 2003. The company has also submitted a proposal to
the government for the license production of advanced jet trainer apart from design, development and
production of New Jet Trainer (NJT).

28
8. DORNIER 228AIRCRAFT

This aircraft is manufactured under license from Dornier GmbH of Germany and this is a 19 seater new
generation aircraft. This aircraft has an excellent short takeoff of or landing capabilities besides serving as
corporate transport, Commuter Transport, Air Taxi, Pilot training, Search and rescue, Target towing,
Observation, Communication, Maritime Surveillance and acting as coast guard.

9. HPT- 32

The HPT-32, and ab-initio, Piston Engined basic trainer aircraft with side by side seats has been completely
designed, developed and manufactured by HAL to cater to the stringent requirement of both military and
civil users. This has been certified by both the civil and military airworthiness authorities of India. This
aircraft is used for training, instrument flying, navigation flying, night flying, formation flying, liaison,
sports flying.

10. LIGHT COMBAT AIRCRAFT(LCA)

Government of India has formed aeronautical development agency (ADA) for the design and development
of LCA. The mock- up of this aircraft is by HAL. The major milestone achievement has been
commencement of the Engine ground run on technology demonstration- I (TD- 1) which was successfully
carried out in April 1998. Integration activities are under accelerated progress inclusive of the flight control
system. Efforts are being made to accelerate and ensure the flight of TD- 1 at the earliest. Ground vibration
tests were also successfully completed on LCA TD2 aircraft.

11. GARRETT TPE 331- 5 ENGINE

This turbo prop Engine is being manufactured at Engine division of HAL under license from Garrett Engine
division of allied signal aerospace company, USA since 1988 and belongs to one of the most popular series
of small turbo prop Engines powering a large number of commuter and corporate aircrafts such as Dornier
Do- 228.

12. ARTOUSTE III B ENGINE

This is being manufactured at Engine division of HAL since 1962 under license from Turbomeca France and
is used to power the Cheetah and Chetak helicopters.

29
13. ADOUR MK 811 ENGINES
This engine is also manufactured at Engine division of HAL since 1981 under collaboration with M/s Rolls
Royce, USA and is used for Jaguar aircrafts.

14. ADOUR MK 804 ENGINE

The Adour MK 804 Engine is being repaired and overhauled under license from Rolls Royce, U.K. This is
similar in construction to the MK 811 Engine.

15. GNOME 1400 IT

The GNOME 1400 IT Engines is being repaired and overhauled under license from Rolls Royce, and is the
power plant for sea-king helicopters.

16. ORPHEUS 70105

ORPHEUS 70105 indigeneously designed by HAL, is a derivative of ORPHEUS 701 at low rating and is a
power plant for Kiran MK II aircraft indigeneously designed by HAL.

17. DART 533-2 AND 536-2T

The Dart series of engines were manufactured since 1966, but at present are being repaired and overhaul
under license from Rolls Royce, U.K and are used for powering HS-748 aircraft.

18. LOW COST ATTACK HELICOPTER(LANCER)

The compant has successfully developed a lowcost Attack helicopter demonstrating the inherent design
strength and successfully firing trials at Nasik and subsequently air to ground firing trials in Kashmir.
Aircraft Division,Bangalore has carried out

A. Modifications

 Section 41 modification on boeing 747/200aircraft of air India a Mumbai

 SB228 Modification on A300 aircraft of Indian [previously Indian airlines]
 Cargo conversion modification on FOKKER F27 Aircraft
 ‘S’ Band modification on Boeing 737

30
B. Repairs

 Composite repairs
 Structure repairs
 Welding repairs
 Parts fabrications

C. Design and Manufacture

 Jigs fixtures and templates

 Press tools
 Composite moulding tools
 Forming tools for transparencies
 Acceptance gauges/jigs
 Tooling masters except MTG’S
 Structural assembly jigs
 Ground support equipment for aircraft
 Weld jigs
 Pressure test fixtures

HAL DIVISIONS

1.AIRCRAFT DIVISION
MANUFACTURE OF HAWK AND PTA AIRCRAFT
2.LCA TEJAS DIVISION
MANUFACTURE OF LCA
3.HELICOPTER DIVISION
MANUFACTURE OFALH, CHEETAH AND CHETAK HELICOPTERS
4.AEROSPACE DIVISION
MANUFACTURE OF DO-228 AND ROH OF DO-228, AVRO, AN 32 AIRCRAFT
5.OVERHAUL DIVISION
ROH OF JAGUAR, MIRAGE, KIRAN MK, HAWK, UPGRADE OF JAGUAR
6.FOUNDRY AND FORGE DIVISION
MANUFACTURE OF CASTINGS, FORGINGS, ALLOY COMPONENTS AND RUBBER ITEMS

31
 HUMAN RESOURCE DEPARTMENT

Human Resource Management is the process of recruitment, selection of employee, providing proper
orientation and induction, providing proper training and the developing skills, assessment of employee
(performance of appraisal), providing proper compensation and benefits, motivating, maintaining proper
relations with labour and with trade unions, maintaining employees safety, welfare and health by complying
with labour laws of concern state or country.

Human: refer to the skilled workforce in the organization.

Resource: refer to limited availability or scarce.
Management: refer to maximize or proper utilization and make best use of limited and a scarce resource.

Human resource management is the process of proper and maximize utilization of available limited skilled
workforce. The core purpose of the human resource management is to make efficient use of existing human
resource in the organization. The Best example at present situation is, construction industry has been facing
serious shortage of skilled workforce. It is expected to triple in the next decade from the present 30 per cent,
will negatively impact the overall productivity of the sector. Every organizations desire is to have skilled
and competent people to make their organization more effective than their competitors.
Humans are very important assets for the organization rather than land and buildings, without employees
(humans) no activity in the organization can be done. Machines are meant to produce more goods with good
quality but they should get operated by the human only.

FUNCTIONS OF HUMAN RESOURCE

• Job Analysis: Job analysis is the process of describing the nature of a job and specifying the human
requirements, such as skills, and experience needed to perform it. The end product of the job analysis
process is the job description. A job description spells out work duties and activities of employees. Job
descriptions are a vital source of information to employees, managers, and personnel people because job
content has a great influence on personnel programmes and practices.
• Staffing: Staffing emphasizes the recruitment and selection of the human resources for an organization.
Human resources planning and recruiting precede the actual selection of people for positions in an
organization. Recruiting is the personnel function that attracts qualified applicants to fill job vacancies. In
the selection function, the most qualified applicants are selected for hiring from among those attracted to the
organization by the recruiting function. On selection, human resource functionaries are involved in
developing and administering methods that enable managers to decide which applicants to select and which
to reject for the given jobs.
32
• Orientation: Orientation is the first step toward helping a new employee to adjust himself to the new job
and the employer. It is a method to acquaint new employees with particular aspects of their new job,
including pay and benefit programmes, working hours, and company rules and expectations.
• Training and Development: The training and development function gives employees the skills and
knowledge to perform their jobs effectively. In addition to providing training for new or inexperienced
employees, organizations often provide training programmes for experienced employees whose jobs are
undergoing change. Large organizations often have development programmes which prepare employees for
higher level responsibilities within the organization. Training and development programmes provide useful
means of assuring that employees are capable of performing their jobs at acceptable levels.
• Performance Appraisal: Performance appraisal function monitors employee performance to ensure that it
is at acceptable levels. Human resource professionals are usually responsible for developing and
administering performance appraisal systems, although the actual appraisal of employee performance is the
responsibility of supervisors and managers. Besides providing a basis for pay, promotion, and disciplinary
action, performance appraisal information is essential for employee development since knowledge of results
(feedback) is necessary to motivate and guide performance improvements.

ORGANISATIONAL STRUCTURE OF HAL

WORK FLOW MODEL

STEP 1
Customer places an order to HAL head office for building or fabricating aircrafts engine, pistons and jet
engine trainers, commercial aircrafts, helicopter.
STEP 2
HAL allocates the funds on the basis of the nature of the nature of the order to the respective division.

STEP 3
As per the guidelines of the management each division is required to perform the mandatory budgeting
exercise and present to the head office, the details of the proposed expenditure to process the customer
order.
STEP 4
If it is deemed acceptable to the customer, the customer enters into an agreement with HAL and a contract is
signed which specifies the time period of actual delivery of the product and funding structure.
STEP 5
The initial advances are allocated to respective divisions and project gets completed up to the amount that
has been funded by the customer and the process continues till the project is complete. Here the project gets
completed part-by-part basis and finally the finished product is assembled before being sold to customer.

33
 FINANCE DEPARTMENT

Finance refers to fund or capital or money which acts as an instrument for doing something. It is a field that
deals with the study of investments. It includes the dynamics of assets and liabilities over time under
conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money
management. Finance aims to price assets based on their risk level and their expected rate of return. Finance
can be broken into three different sub-categories: public finance, corporate finance and personal finance.
Personal finance may also involve paying for a loan or debt obligations. The six key areas of personal
financial planning, as suggested by the financial planning standards board, are:
1. Financial planning
2. Adequate protection
3. Tax planning
4. Investment and accumulation goals
5. Retirement planning
6. Estate planning

Corporate finance deals with the sources of funding and the capital structure of corporations, the actions that
managers take to increase the value of the firm to the shareholders, and the tools and analysis used to
allocate financial resources. The main concepts in the study of corporate finance are applicable to the
financial problems of all kinds of firms. Corporate finance generally involves balancing risk and
profitability, while attempting to maximize an entity’s assets, net incoming cash flow and the value of its
stock, and generically entails three primary areas of capital resource allocation:
1. Capital budgeting
2. Sources of capital
3. Dividend policy
What, how corporate finance also includes within its scope business valuation, stock investing, or
investment management. An investment is an acquisition of an asset in the hope that will maintain or
increase its value over time that will in hope give back a higher rate of return when it comes to disbursing
dividends. In investment management – in choosing a portfolio – one has to use financial analysis to
determine much and when to invest.
Public finance describes finance as related to sovereign states and sub – national entities (states/provinces,
counties and municipalities) and related public entities (e.g.school districts) or agencies. It usually
encompasses a long-term, strategic perspective regarding investment decisions that affect public entities.
These long-term, strategic periods usually encompasses five or more years. Central banks, such as the
Federal Reserve System banks in the United States and Bank of England in the United Kingdom, are strong
players in public finance, acting as lenders of last resort as well as strong influences on monetary and credit
conditions in the economy.

34
Financial management refers to the efficient and effective management of money (funds) in such a manner
as to accomplish the objectives of the organization. It is the specialized function directly associated with the
top management. The significance of this function is not seen in the ‘line’ but also in the capacity of ‘staff’
in overall of a company. It has been defined differently by different experts in the field. The term typically
applies to an organization or company’s financial strategy. It includes how to raise the capital and how to
allocate capital, i.e. capital budgeting. Not only for long term budgeting, but also how to allocate the short
term resources like current liabilities. It also deals with the dividend policies of the shareholders. Businesses
make forecast on funds needed in both short run and long run, hence, they can improve the efficiency of
funding. The estimation is based on the budget e.g. sales budget, production budget.
Capital structure is how a firm finances its overall operations and growth by using different sources of funds.
Once the requirement of funds has estimated, the financial manager should decide the mix of debt and equity
and also types of debt. A good investment plan can bring businesses huge returns.

ORGANISATIONAL CHART WITH REFERENCE TO ACCOUNTS AND FINANACE

DEPARTMENT

DIRECTOR (FINANCE)
AGM CORPORATE OFFICE
AGM DESIGN COMPLEX

BILLS PAYABLE SECTION

 BILLS PAYABLE CIVIL

 BILLS PAYABLE FOREIGN
 BILLS PAYABLE
 PAYROLL SECTION
 FINANCE
 BOOK KEEPING SECTION

BILLS PAYABLE SECTION

Bills payable section deals with the payment and accounting towards the services or supplies rendered by
inland vendors or contractors, foreign vendors or contractors and civil contractors to the company.
The functions of Bills payable section is segregated into three different categories:
1.BILLS PAYABLE-INLAND
2.BILLS PAYABLE-CIVIL WORKS
3.BILLS PAYABLE-FOREIGN

35
 BILLS PAYABLE-INLAND

This section deals with the following aspect of supplies and services rendered by inland vendors to the
contractors:

 Payment and accounting of advances to suppliers Payment and accounting of advances to other
vendors or service bills
 Payment and accounting of final bills
 Bank dealing with relation to suppliers Adjustment or recovery of advances
 Accounting or adjustment of earnest money and security deposit from the supplier Maintenance of
commitment registers for budgetary purpose
 Bank guarantee or performance guarantee register.

BILLS PAYABLE-CIVIL WORKS

This section deals mainly with the following aspect of services rendered by contractors to the company:

 Payment and accounting of advances to contractors

 Payment and accounting of running bills to the contractors such as sanitation, horticulture and work
package
 Adjustment or recovery of advances
 Accounting or adjustment of earnest money deposits
 Capitalization of Buildings
 Refund of earned money deposit and security deposit to contractors

BILLS PAYABLE – FOREIGN

This section deals with supplies and services rendered by foreign “vendors or collaborators” to the company.

 Payment and accounting of advances to suppliers

 Payment and accounting of services obtained from collaborators and others
 Payment and accounting of contractual fees(license fees, TA, royalty)
 Payment and accounting of customs duty, freight bills, agency commission
 Payment and accounting of final bills
A. Adjustment or recovery of advances
B. Accounting and pricing of receipt vouchers
C. Opening of letter of credit and dealings with banks for obtaining Foreign Exchange Release and
payments thereon
D. Maintenance of commitment registers for budgetary purposes
E. Maintenance of deferred liabilities account

36
PAY ROLL SECTION
In pay roll section there are three sub offices:
a) Time office
b) Pay roll
c) Cash office

A) TIME OFFICE

• Record of attendance of employees and officers

• Maintenance of leave records
• Payment of salaries and wages

B) PAY ROLL
• Disbursement of salaries and wages
• Payment and recovery of advances
• Recovery of dues from employees
• Payment of travel and L.T.C advances and adjustment thereof
• Reimbursement of expenses like medical conveyance, schools fees etc.
• Accounting of all pay roll transactions
• Miscellaneous
• Severance register and accounting

C) CASH OFFICE
This section is responsible for all receipts and payments of cash or cheques and accounting of the same in
the books. The main functions of this section are:
• Receipt of cash, postal orders, cheques, bank drafts etc and issue of official receipt for the same
• Withdrawal of cash from bank to cater for daily needs
• Payment of vouchers by cheque or cash
• Writing of cash or bank book
• Preparation of bank reconciliation statement
• Safe custody of cash, cheque books, bank guarantees, fixed deposit receipts and other investment
• Disbursement of salaries and wages
37
BILLS RECEIVABLE SECTION
It is mainly responsible for preparation and submission of invoices to customers for the supplies made and
services rendered and follow up for recovery of the amount and accounting of the same. The main functions
of this section are:

• Scrutiny of sales orders including export sales

• Preparation of invoices for work done or to be done and services rendered
• Review of closed work orders for which invoices have not been prepared
• Recording of invoice rendered
• Accounting for sale of equipment and services rendered
• Compilation of sales tax returns and payment of sales tax
• Customs and excise duty

FINANCE SECTION

The main functions of finance section are:

1. Scrutiny and financial concurrence as per delegation of powers seeking proposals for:

 Capital expenditure
 Revenue expenditure
 Purchase of materials or stores or tools and other services
 Manpower requirements
 Incentives
 Waiver of dues to the company, write off losses
 Cases involving relaxation of rules
 Sales, lease or alienation of company’s assets
 Contracts entered into with suppliers or collaborators or sub – contractors
 Estimates and award of contracts in respect of civil / electrical works, plant orders

2. Fixation of rent and rates of recovery in respect of services / supplies / disposals by the company

3. Certification of availability of funds with reference to capital and performance budgetary and
appropriation of funds for procurement of capital equipments (CARs) for undertaking capital works
( Administrative approvals and procurement of revenue items (MRPs)

38
BOOK – KEEPING SECTION

The main functions of book – keeping section are:

• Maintenance of journal and general ledger
• Preparation of trial balance, profit and loss account and balance sheet
• Maintenance of capital assets ledgers and location registers
• Preparation of fixed assets and depreciation schedules
• Furnishing data for determining of income tax liability
• Disposal of surplus / condemned plant and machinery and other assets
• Reconciliation of control accounts of other divisions / corporate office
• Liaison with audit authorities

COSTING SECTION

It maintains the cost books of the divisions and also handles MIS reports. The main functions of costing
section are:
• Maintaining of cost records and cost ledger
• Computation of man hour rate and preparation of operation statements
• Time recording and labour accounting
• Material cost accounting
• Budgeting

Aviation Industry Supplies Services to:

1.Indian Defence Services
2.Coast Guards
3.Boarder Security Forces

39
Leading Players in Aeronautical Industry
1.Air Charter Services Private Ltd
2.Air Charters India
3.Air India
4.Deccan Aviation Ltd
5.Jet Airways
6.Kingfisher Airlines

Our Services

As part of customer services, Technical and Logistics supports including training are provided technical
support is rendered to the customer in the following areas.
a) Maintenance and repair of aircraft
b) Compliance of modification and technical instructions
c) Accident and incident investigation
d) Training of customer personnel

On the logistic side, the support is rendered in the following areas:

1. Supply of spares and ground handling and ground services equipment.
2. Supply of items against priority demand like AGO, USR/URR demands.
3. Repairs of machines.
4. Landing Gaels/retardation, jack repairs and overhaul.
5. Forecasting spares requirement.
Customers operating personnel are provided training servicing and maintenance of aircraft manufactured by
the division through in plant training courses workshop and operators conferences.

Future Prospectus of the Aeronautics Industry

The Indian aviation industry has shown continued growth in recent years with key drivers being positive
economic factors (including high GDP growth), Industrial performance, corporate profitability/expansion,
higher disposable incomes and growth in consumer.

40
HAL has made substantial progress in its projects like:
• Advanced Light Helicopter- weapon system integration (ALH-WSI)
• Tejas - Light Combat Aircraft (LCA)
• Intermediate Jet Trainer (IJT)
• Various Military and Civil upgrades

DOMESTIC CUSTOMERS
 Air force
 Air Sahara
 Airport Authority of India
 Border Security Force
 Coal India
 Government of Andhra Pradesh
 Government of Jammu & Kashmir
 Government of Karnataka
 Government of Rajasthan
 Government of Uttar Pradesh
 Government of West Bengal
 Indian Airforce Force
 Indian Airlines
 Indian Army
 Indian Coastal guard
 Indian Navy
 Indian Space Research Organisation
 Jet Airways, Nalco

INTERNATIONAL CUSTOMERS
 Airbus Industry, France
 Chelton, UK
 Coast Guard Mauritius
 Cosmic Air, Nepal
 Dassault Aviation, France
 Dowty Aerospace Hydraulics, UK
 EADS, France
 ELTS, Israel
 Gorkha Airlines Nepal
 Royal Airforce Oman
 Royal Airforce Malaysia
 Royal Airforce Nepal
 Royal Airforce Thailand
41
SWOT ANALYSIS

STRENGTHS
1. Enjoys monopoly
2. Highly skilled labours
3. More than 50 years, it has achieved experience in technology
4. It is the only supplier for maintenances of aircraft
5. It has big research and development unit and also fonder y and forge unit
6. HAL is India’s only aeronautical manufacturer, must also lead in creating a suitable
framework for building the military aircraft of the future.

WEAKNESS
1. All major decisions are taken by the government
2. Since it is a public sector retrenchment is not very easy
3. Higher inventory cost
4. Delay in decision due to procedures and authority
5. Lack efficiency, major working people are above age of 45 years

OPPORTUNITIES
1. HAL can compete in global market
2. Increase in demand for small and medium range equipments
3. Develop tenders for detail parts and assemblies
4. Increase outsourcing efforts for detail parts and assemblies

THREATS
1. Overhaul of aircraft and light maintenance is open for private
2. Change of technology
3. Facing competitions with international market because of license
4. Changing foreign policies also effect the industry
5. Resignation of trained employee

FINDINGS

42
  We can observe that most of the employees are satisfied with the pay scale when it is compared in
the industry.

 It shows that the majority of the employees are not satisfied with the pay scale / salary structure
provided by the company.

 It can be found that the majority of the employees are of the opinion that the compensation should be
fixed based on employees performance and experience.

 The collected information shows that majority of the employees are not satisfied with the
performance award / increments given by the company.

 Majority of the employees feel that the organization based on performance and not on experience.

 It shows that the employees are partially satisfied about the benefits / allowances given by the
company.

 It is observed that there is a poor recreational benefit given to the employees in the organizational.

 It shows that the employees are partially satisfied with the medical reimbursement, travel allowance,
and housing facilities provided by the company.

SUGESSTIONS
The company needs to undertake the industry norms time to time regarding the pay scale paid for the
service.
 Organization need to revise the pay structure based on the job profile as the employees feel it is not
judged properly.
 Performance awards / increments are a source of economical motivation for an employee the
organization needs to enhance the increments paid for performance.
 Performance of an employee increases confidence and organization production but neglecting
experience might lower the loyalty of the employee, hence performance and experience should be
equally given importance.
 Benefits and allowances compensation the basic salary of an employee with the cost of living.
 Recreational allowance is a stress management tool used to break the monotony of work, hence the
organization needs to think on including the benefits to employees.
 Basic benefits such as Medical reimbursement, Travel allowance and housing facilities have to be
revised time to maintain employee job satisfaction.
 The organization follows good provision in canteen, Leave and Over Time allowances which is a
good sign and need to maintain the same.
 Recognition and appreciation motivates the employees psychologically, hence organization needs to
give due recognition through non monitory benefits.

43
CONCLUSION

As mention earlier the present generation employees are seeing there carrier as there first potion and
compensation as the second option while deciding to work in a company or not.

 The “Hindustan Aeronautics Ltd” should conduct some Research in the employees at least six
months once so that the employees can come out with their problems and grievances, according to
that the company can take decision
.
 Most of the employees is Hindustan Aeronautic Ltd suggest that it’s better to follow performance
based salary package and also when deciding the benefits and Increments.

 In the present world that to in a Aeronautic Industry the people will play a vital role, the person who
is well experienced and qualified in the field can do a better job than anybody else, but in the present
world the availability of experienced people is very less, so each and every company is competing to
attract them for there betterment of the organization, so in this case compensation and Rewards will
play a vital role, so the
Hindustan Aeronautics Ltd or any other companies pay scale should be accordingly to the industry
pace then only attraction can be curbed out and talent can be captured.

44
45
46
47
48
REFERENCE

1. WWW.HAL-INDIA.COM

2. https://hal-india.co.in

BOOKS

BOOK NAME AUTHOR PUBLICATIONS

Financial Management R.K. Sharma Himalaya Publication

Financial Management Shashi. K. Gupta Himalaya Publication

Management Accountancy SA. Siddiqul Himalaya Publication

49