A REPORT ON INSTITUTIONAL TRAINING UNDERWENT IN GREAVES COTTON LTD (HEAVY ENGINEERING UNIT) A project report Submitted to the UNIVERSITY

OF MADRAS In partial fulfillment of the requirement for the degree of bachelor of B.COM,(CS), (CORPORATE SECRETARYSHIP) Submitted By NAME: R.PRAVEEN KUMAR REGISTER NO: BS00893 Under The Guidance of MRS .T.JESSY M.COM, M. PHIL .,

Department of commerce (Corporate Secretaryship) SRI DEVI ARTS AND SCIENCE COLLEGE Krishnapuram,ponneri-601 204 MARCH-2013 SRI DEVI ARTS AND SCIENCE COLLEGE Krishnapuram,ponneri-601 204 Department of commerce (Corporate Secretary ship)

CERTIFICATE

This project report is prepared under the guidance of the DEPARTMENT OF CORPORATE SECRETARYSHIP. SRI DEVI ARTS AND SCIENCE

COLLEGE . Based on the institutional training undergone by the student in the

company . This report has been evaluated by the external examiner who has conducted the VIVA-VOCE examination for the award as all the guidelines laid down by the University Of Madras.

PRINCIPAL

Signature of supervisor

Signature of HOD

Signature of the External examiner

DECLARATION

I here by affirmed that information which are submitted by me only on the basis of facts. I have collected during the training period of greaves cotton ltd (heavy engineering unit )of the award of under graduation in corporate secretary ship under the moral support of Miss. P.Meenakshi. M.Com,M.phil., I strongly declare that these are not formed previously for the basis of award of any degree. Associate ship diploma of fellow ship of any other academic course.

Place: Date: (R.PRAVEEN KUMAR)

ACKNOWLEDGEMENT
I am extremely to do my bachelors degree in corporate secretary ship from Sri Devi Arts And Science College krishnapuram deep gratitude to principal MR.GNANASEGAR. M.sc ,M.phil.,P.hd., for having permitted me to under gone training of primary agricultural co-operative bank. I remember MR.P.RAMESH. B.sc,M.L., secretary of Sri Devi Arts And Science College Ponneri. With deep sense of gratitude I would like to thank the production manager for his valuable guidance I am very much indebted to our distinguished

Miss.P.MEENAKSHI. M.com, M.phil, for her encouragement and

throughout training and for preparing this project. Finally I would like o extend my thanks to my friends and who have helped me to complete the project work as a successful one.

(R.PRAVEEN KUMAR)

CORPORATE SECRETARYSHIP COURSE

Corporate secretary ship course is one of the best courses in the present days as it is a 100% job oriented course. In this course the student must undergo one month institutional training in a registered company.

After finishing this course the student can join in a company as an employee particularly in the finance, personal and secretarial department and it is also usefull for a future studies. It is a chance in this course to see the functions of the company to practice. The company will issue a certificate to the students to undergone institutional training.

CONTENTS

UNIT

TOPICS

PAGE NO

INTRODUCTION

II

HISTORY OF THE COMPANY

III

ORGANIZATIONAL STRUCTURE & LAYOUT

IV

DEPARTMENTATION

RATIO ANALYSIS

VI

SUMMARY & CONCLUSION

VII

BIBLIOGRAPHY

VIII

ANNEXURES

INTRODUCTION

CHAPTER I

INTRODUCTION
Greaves Cotton (GCL), incorporated in 1922, is a well-diversified engineering company. The company is engaged in manufacturing of diesel and petrol engines, gensets, agro equipments and construction equipments. The company owns six manufacturing units located in the states of Maharashtra and Tamil Nadu. The companys manufacturing units have received ISO 9001:2000 and ISO 14001:2004 certifications for quality management. Headquartered at Pune, the company has a pan-India presence of its marketing offices. In 1991, Greaves Cotton was first to form Indo-Russian joint venture in the private sector, namely Rajasthan Polymers and Resins, to manufacture 20,000 TPA of ABS/HIPS resins. This business was later merged with the company in the year 1999. In 1995-96, the company commenced a joint venture with SAME SpA, Italy to form SAME Greaves that is engaged in manufacturing of diesel engines. In 1998-99 the company started commercial production diesel engines. Later in 2001-02 this company exited from this venture. The company also entered joint venture with Piaggio Veicoli Europei SpA of Italy to form Piaggio Greaves Vehicles. The company exited from this venture in 2000-01. In April 2008 the company entered into a technical collaboration with Bomag GmbH, Germany to manufacture the latest generation 19-ton vibratory soil compactors in India.
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PRODUCTS Power Generations The company manufactures diesel engines ranging from 10-1000 HP that has application in diesel generating sets, barges, pilot launches, compressors, construction equipment, cranes and forklifts. Under this, company manufactures dual fuel engines/gensets ranging from 30 KVA to 400 KVA. It also manufactures gas engines / gensets operating on natural gas thats from 125 KVA to 300 KVA. The companys foundry division sources ductile iron casting for Greaves Engines. Agro-Equipments The company manufactures lightweight petrol, diesel / kerosene engines ranging from 1-4 HP and gensets in the 1.4 KVA range. The products are used in power sprayers, pumpsets and power reapers. Lightweight Engine The companys lightweight diesel engines are used in 2-wheelers, 3wheelers, mini cars, etc. Greaves manufactures these engines ranging from 4-11 HP. Greaves light diesel engines are widely used in defence applications. Infrastructure Equipment Under this, the company manufactures products that caters construction industry. Greaves manufactures a spectrum of products such as transit mixers, concrete pumps, batching plants, vibratory soil compactors, heavy tandem rollers, light tandem rollers, etc.
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Aero Engines The company is authorised distributor of Rotax Aircraft Engines in India and it is manufactured by BRP-Powertrain GmbH & Co. KG in Austria. These engines are manufactured for PWC, ATV, Snowmobile, Motorcycle, Kart, Watercraft and Aircraft. Future Prospects Greaves Cotton is focusing on export markets such as Middle East and Africa. It is also focusing on strengthening its dealers /distributors network to tap the potential market for engines, gensets and construction equipment. In its IT front, the company is planning to implement SAP ERP system. BUSINESS DIVISION Auxiliary power Greaves leads the field in the manufacture of diesel engine (101000HP)Used for diesel generating sets, barges, pilot launches, compressors, construction equipment,cranes, forklifts and various applications. Agricultural Equipments Greaves manufactures lightweight petrol, diesel/kerosene engines in the 1-4 hp range and portable eco-friendly silent gensets in the 1.4 kva range at its iso 9001 certified petrol engines unit in chennai.

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Construction equipment To meet the challenges of construction industry ,greaves manufactures wide range of road and concrete equipment .the complete range of concrete equipment like transit mixers , concrete pumps, batching plants, etc are manufactured at the company,s ISO 9001 certified plants at Chennai and gummidipoondi (tamil nadu ). Automotive Highly fuel efficient ,greaves lightweight diesel engines are ideal for automotive applications like 2 wheelers, 3-wheelers and four wheeled small commercial vehicles. These engines with high power-to-weight ratio are used extensively for portable agricultural pump sets, gensets. Industrial Engines Greaves manufactures engines using diesel, gasoline and other fuels in the range of 1-700HP.Manufactured at sate of the plants located across india, greaves engines find wide application in marine, agricultural, construction and other industrial uses. Objectives of study To analysis financial performance of greaves cotton limited. To study about the department function. To study about the organization and its growth. To carry the customer service. To carry on general business.

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HISTORY OF THE COMPANY

13

CHAPTER II

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HISTORY OF THE COMPANY YEAR EVENTS 1922 The company was incorporated on 29th March, as a Private Ltd. company. It was converted into a Public Limited Company on 8th May, 1950 The main objects of the company is to act as merchants, engineers and contractors. The company has a large number of associated and subsidiary companies manufacturing various items of electrical and machinery products. It also acts as concessionaires for a large number of firms in U.K. The company manufactures paper cones and tubes for the cotton textile industry and diamond drilling bits.

- Equity shares were issued without payment in cash.

1958 Greaves Dronefield Company was floated in collaboration with Dronsfield Brothers Ltd., Oldham for the manufacture of their well-known "Atals" brand emery fillets. It was registered on 31st December, and it went into production soon thereafter. 1959 Mather Greaves Company was registered on 6th August, for the manufacture of calender bowls.

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1960 The company concluded a technical collaboration agreement with Mandrills Ltd., of Melbourne, Australia for the manufacture of diamond tools.

The company was floated in collaboration with David Brown Industries Ltd., for the manufacture of Radicon worm reduction gears and geared motor units and was registered on 6th June. Later, the company was also licensed to manufacture David Brown marine gear boxes.

Draton Greaves concern was floated in collaboration with Drayton Regulator & Instrument Co. Ltd., of Middlesix for the manufacture of steam traps and regulators and registered on 19th August.

1963 After consolidating the manufacture of calender bowls, the company embarked on the production of Schriner calenders, stenter clips, mangles, printing machines, etc.

On 22nd April, it became a subsidiary of the company by virtue of such allotment of 425 shares of Rs. 100 each to the company in terms of the collaboration agreement. 1965 Mather Greaves Ltd., undertook the entire marketing of its products resulting in the termination of their Sole Concessionaires Agreement with Greaves Cotton & Co. Ltd.

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1967 The other subsidiaries are Greaves Leasing & Finance Ltd., Rajpath Investment Ltd. Cannation Investment Ltd. Greaves Midwest Engineering Co. Ltd. and SIDVIM Ag.

1975 Greaves Lombardini Company in collaboration with Lombardini Motori of Italy promoted Greaves Lombardini Ltd., for the manufacture of diesel engines. Greaves Lombardini Ltd., was incorporated on 21st May, under the name and style of Greaves Diesels Ltd., and the name was subsequently changed to the present one.

1982 Consumption of emery fillets in the home market during the last quarter of 1982 and the beginning of 1983 was less due to prolonged textile strike in the country.

1983 5% tax-free Pref. shares made 13.5% taxable from 1.7.1983. 25,000-6% Pref. share redeemed on 31.3.1984. 2,12,625 Bonus Equity shares issued in prop. 1:2 on 23.3.1984.

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1984 Greaves Lombardini Ltd., was merged with Greaves Cotton & Co. Ltd.

1985 Consequent upon the purchase by Greaves Cotton & Co. Ltd., of 50% shares held by Dronsfield Brothers Ltd., U.K. Greaves Dronsfield Ltd., became a wholly owned subsidiary of Greaves Cotton & Co. Ltd.

A technical collaboration agreement was entered into with David Brown Gear Industries, U.K., for the manufacture of hardened and profile ground helical gear boxes. Government gave its approval.

20,265-15% Pref. and 19,250 No. of equity shares allotted without payment in cash to members of Greaves Lombardini, Ltd. on its merger. These Pref. shares redeemable at 1.7.1996 but before 15.6.1998 at the company's option.

1988 25,000-15% Pref. C shares paid off. 3,28,562 Bonus Equity shares issued in proportion 1:2.

1989 To improve exports further, it was proposed to open offices in the USSR and East Africa. The works at the Nasik plant resorted to go-slow and the company was forced to declare a lock-out of the plant effective from 14th June, 1990. The lockout was lifted on 20th October, 1990.
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1990 During the year, the company introduced Greaves portable light weight diesel Genset viz., Greaves-GD3000.

The company entered into an understanding with the Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO) for the setting up of a unit at Abu Road in Rajasthan for manufacture of ABS Resins in collaboration with Technochim and Plastpererabotka (Russian partners).

The company undertook to set up a 3-wheeler autorickshaw manufacturing unit at Baramati, Maharashtra. During the year, the company undertook to increase existing capacity of the light weight engines unit at Aurangabad to 32,500 units from the existing 22,500 units.

Greaves Chitram, Ltd., (Chitram) was amalgamated with the Company. The erstwhile shareholders of Chitram were allotted one equity share of Greaves Cotton Co., Ltd., for every 412 shares held by them in Chitram.

1991 During the year, the Company had converted the representative office at Singapore into a trading office.

The company proposed to set up a joint venture company with Frabelle Fishing Corporation, Philippines to undertake deep sea tuna fishing in the exclusive economic zone of the territorial waters of India.
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Subject to necessary approvals being obtained, Greaves Semiconductors Ltd. (GSL), a subsidiary of the company, was proposed to be amalgamated with the Company with retrospective effect from 1st April 1989.

During April-May, the company offered 32,89,488 - 12.5% secured fully convertible debentures of Rs. 40 each on Rights basis in the proportion 1 debenture : 3 equity shares held (all were taken up): Additional 4,93,341 debentures were allotted to retain over subscription.

Simultaneously, another 1,64,475 - 12.5% debentures of Rs. 40 each were issued to employees including Indian working directors of the Company on an equitable basis (only 75,200 debentures taken up). UN subscribed portion of 89,275 debentures allowed to lapse.

Each debenture of Rs. 40 was fully and automatically converted into one equity share of Rs. 10 each at a premium of Rs. 30 per share after 12 months from the date of allotment of debentures. Accordingly, 38,58,029 No. of equity shares were allotted in July 1992.

50 No. of equity shares allotted without payment in cash to members of Greaves Chitram Ltd., on its merger.

1992 The company's operations at Marol was suspended in October and the land and building had since been disposed of. The Nashik plant was reported to be suffering from lack of profitable orders from the Government sector. Efforts were
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on to diversify the product portfolio.

The power transmission unit II (erstwhile David Brown Greaves Ltd.) Falta, W. Bengal was commissioned.

During November the company offered share on 1,37,14,949 No. of equity shares of each at a premium of Rs. 70 per rights basis in the proportion 1:1. (all were taken up). Another 6,85,747 No. of equity shares of Rs. 10 each at a premium of Rs. 70 each were offered to the employees of the company on an equitable basis (only 26000 shares taken up).

The company offered for sale 26,82,240 No. of equity shares of Rs. 10 each of Greaves Fosico Ltd. at a premium of Rs. 60 per share.

Rajasthan, Polymers & Resins Ltd., an associate Company offered on preferential basis 12,68,000 - 14.5% secured redeemable partly convertible debenture of Rs. 25 each of Rs. 10 of the face value was to be converted into 1 equity share on allotment of debenture Rs. 15 was to be redeemed.

Subject to necessary approvals being obtained, the company proposed to issue 1473,81,765 bonus equity shares in proportion 1:2.

28,552 No. of equity shares allotted to shareholders of erstwile Greaves Ltd., on its amalgamation 19,91,903 No. of equity shares allotted on amalgamation of Ruston & Honnsberg Ltd. and David Brown Greaves Ltd. within company. 137,40,949 Rights shares issued to shareholders and employees.

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1993 The company entered into a joint venture agreement with a few parties in Singapore for trading in Vietnam and other parts of the world. A new company was registered in Singapore in the name of Pacific Greaves Pte. Ltd.

It was also proposed to set up a joint venture company with overseas consortium partners for installation and developed of part infrastructure in Russia. Effective 19th August, the name of the company was changed to Greaves Ltd., from Greaves Cotton & Co. Ltd.

38,58,029 No. of equity shares (prem. Rs. 30) was allotted in conversion of 12.5% fully convertible debs. 28,552 No. of equity shares allotted to shareholders of erstwhile Greaves Semi-Conductors Ltd. on its amalgamation. 19,91,903 No. of equity shares allotted on amalgamation of Ruston & Hornsby Ltd. & David Brown Ltd. with the company. 137,40,949 Rights equity shares allotted.

1994 Two new products were launched viz., diesel three wheelers and sale of HIPS resins and partly from the petrol engine unit at Thoraipakkam and Commencement of production of diesel engines at Ranipet, both acquired in January.

The company undertook a project for the manufacture of rolling cutter rock bits, used largely in oil well drilling and also for waterwell drilling in collaboration with Smith Tool Company, a division of Smith International, Los Angeles, U.S.A. For this purpose a new factory was set up in the MIDC Industrial Estate at Nasik.
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Effective 31st January, the company acquired the Thoraipakkam properties of Enfield India Ltd., Chennai. The company undertook to invest in the Ranipet complex to manufacture light diesel engines which was originally planned for at Aurangabad.

The company proposed to enter the field of agricultural tractor and associated diesel engines manufacture in Rankipet, Tamil Nadu in collaboration with a well known Italian manufacturer. The company has signed a licence agreement in June to avail technology from SAME for the manufacture of certain range of tractors.

1995 147,38,176 shares allotted as Bonus shares in prop. 1:2.

1996 The company achieved 94% of the installed capacity in the manufacture of Greaves Garuda diesel 3-wheeler. However, the original plans for introducing the eco-friendly 4-stroke petrol engined 3-wheeler could not materialise during the year.

The Company proposed to set up an industrial park of international standard at Ranjangaon near Pune in collaboration with Overseas consortium partners and in association with Maharashtra Government agencies viz., the SICOM & MIDC. The company proposed to introduce an eco-friendly 4-stroke Petrol engined 3 wheeler.

The company entered into a technical collaboration with SAME Spa, Italy
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for the manufacture of agricultural tractors and signed a joint venture agreement with SAME for the manufacture of diesel engines for tractors and other uses.

The company proposed to increase the capacity for the manufacture of diesel generating sets at Diesel Engines Unit in Chinchwad, Pune to cater to the enhanced demand in the market.

The company entered into a joint venture agreement with Same Deutz Fahr SPA of Italy for manufacture of diesel engines.

1997 Greaves Ltd, the engineering arm of the Thapar group, is entering into the automotive sector with tractors and two models of three-wheelers - one a six-seater diesel versions and the other a three-seater petrol model.

The production capacity of high speed diesel engines manufactured at Aurangabad and Ranipet will be increased form 60,000 engines per annum to 100,000 engines per annum.

The company is to launch the Garuda six-seater diesel three-wheeler which conforms to 1996 emissions norms and will be shortly introducing the Garuda four-stroke petrol three-wheeler.

In the transportation division, the manufacturing capacity of the diesel run three wheeler garuda is proposed to be increased to 60,000 from the present 24,000.

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The company proposes to launch the production of the petrol version of the Garuda in the first quarter of 1997-98 incorporating new features such as electric start and four-stroke engines.

Greaves proposes to later launch a six-seater diesel vehicle and flat bed load carriers in the country.

Piaggio, the Italian auto major, is close to tying up with Greaves for manufacturing a range of diesel three-and four-wheelers in the country. The two companies signed a memorandum of understanding and have already initiated a joint feasibility study.

The Power Transmission Division (PTD) of the company is on the verge of signing two joint ventures - one with the Singapore-based Team Asia for semiconductors and another with an Italian company - Bonfigliloe - to manufacture higher ranges of transmission equipment and various types of gear boxes, which are applicable in heavy engineering and earth-moving vehicles.

Rajasthan Polymers & Resins Ltd (RPRL) is to be merged with Greaves Ltd with effect from April 1, as part of a comprehensive rehabilitation package approved by the Board for Industrial & Financial Reconstruction (BIFR).

1998 Greaves Ltd a LM Thapar group company, is doubling the manufacturing capacity of internal combustion engines at its Thoraipakkam plant, near Chennai.

Greaves Limited, which is the country's largest manufacturer of diesel

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engines, proposes to enhance the manufacturing capacity of spark ignition internal combustion piston engines - diesel, petrol land kerosene versions-from one lakh to two lakh units per annum.

The Italian automobile major has an existing tie-up with Greaves for manufacturing the Ape range of three wheelers in the country.

Greaves Ltd, is the largest manufacturer of diesel engines with factories located at Pune, Aurangabad, Ranipet and Thoraipakkam, Chennai. Greaves has also emerged as the largest manufacturer of IC engines in the country with a production of 1.8 lakh engines.

A memorandum of understanding (MoU) was signed between the Thapar company and the Dutch transmission equipment giant; BTR European Holdings, in New Delhi.

The company entered into a memorandum of understanding (MoU) with BTR European Holdings of Netherlands (BTR) recently to float a subsidiary which will be promoted in India by BTR or its associated companies.

Greaves Limited, the Thapar group company, launched a 50HP tractor, "Same" Greaves 503, in Chandigarh.

1999 Greaves Ltd has joined hands with Piaggio S. P. A. of Italy to locally produce in India compact engines with in-built gearboxes for the three-wheelers which the two Companies would be manufacturing under their joint venture.
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Leading Auto manufacturer Greaves Ltd has tied up with two Chinese companies to manufacture small tractors (power tillers) and plans to sell the product at one third the price of a normal tractor.

Greaves has entered into an agreement with a Chinese company Chang Chai and has also entered into an alliance with Dangefeng Agricultural Machinery Group Corporation for manufacturing rest of the machinery and body of the power tiller.

Greaves Ltd, engineering arm of the Thapar group, has launched a new range of industrial gearboxes for the industry, making it the only company to offer a wide end unique range of gearboxes for different industries.

The company has set up a plant at Baramati, Maharashtra, with a capacity to manufacture 25,000 vehicles every year.

The company currently produces the `APE' range of diesel three-wheelers under technical guidance from Piaggio. The company has just launched its APE range of three-wheelers in the National Capital Region (NCR) of Delhi.

Greaves, which had entered the industry with 50 hp tractor during end-1998, will manufacture `Solaris' tractors in the range of 25, 35, 45 hp at its Ranipet plant in Tamil Nadu.

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2000 Greaves Ltd has decided to set up a 50:50 joint venture company with its existing technical collaborator Same Deutz SpA of Italy to manufacture tractors ranging from 25 hp to 70 hp.

The capacity of petrol/kerosene engines manufactured at Chennai will be increased to 120,000 engines from the current capacity of 80,000 engines.

The Company have approved, in principle, the amalgamation of Rajpath Investments Ltd. a wholly owned subsidiary of the company with Carnation Investment Ltd. also another owned subsidiary of the company.

The Greaves engineering arm of Thapar Group, has entered into a technical collaboration with Italian Construction equipment giant Cifa Spa for manufacturing ready mix concrete equipment.

Greaves Ltd. has converted its tractor manufacturing operations in Ranipet near Chennai, which was earlier a technical collaboration with SAME of Italy, into a 50:50 joint venture with the Italian tractor major.

2001 Italian diesel engine major, Lombardini acquires engine manufacturing facility of the Thapar group company, Greaves, at Aurangabad for a consideration of Rs 11 crore

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2002 Greaves Ltd has informed that Mr K K Nohria has resigned from the office of Director of the Company, in view of his pre-occupation.The Board of Directors of the Company at its Meetings held on March 21, 2002 has appointed Mr Vijay Rai as a Director to fill the casual vacancy caused by the resignation of Mr K K Nohria.

Italian auto firm Same Deutz Fahr Group SPA has taken over its Indian partner, Greaves Ltd, for Rs 26.9 crore from its two tie-up, one to manufacture tractors and the other for tractor engines

2003 Solaris Chemtech Limited acquires 950,000 equity shares of Rs 10 each of Crompton Greaves Limited from Greaves Ltd., stake increases to 10.83% in the company Greaves Ltd to go back to its erstwhile name Greaves Cotton

2004 Greaves Cotton, part of the B M Thapar group has appointed Karan Thapar as the chairman of the company Greaves Cotton signs MoU with Premium Energy Transmissions

Inks MoU with Corporation Bank for financing farm machines to farmers

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2005 Launches of an all-new Greaves Metro Pump for the construction industry

Greaves Cotton unveils four new products

Greaves Cotton Limited has appointed Mr. Vikram Tandon as a Director of the Company to fill the casual vacancy caused by the resignation of Gautam Thapar.

2007

Greaves Cotton Ltd has informed that the Board of Directors of the Company, has appointed Mr. S D Nayyar as Additional Director of the Company, effective from September 26, 2007. 2008 Greaves cotton ltd has informed that the managing director of the company has appointed Mr.M.Kumaran as additional director of the company effective from January 29-2012.

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MEMORANDUM OF ASSOCIATION A) An appraisal about ASSAM SMALL FARMERS AGRI

BUSINESS CONSORTIUM(ASFAC) Considering the enormous potentiality of horticulture in north eastern states of india, the govt of india launched the Technology mission for integrated dev of horticulture in north eastern states of india scheme to develop this sector in a mission mode manner. Many central and centrally sponsored schemes after being amalgamated and incorporation in this technology mission it was also proposed to stream line the flow of fund from govt of india to the concerned states and accordingly SMALL FARMERS AGRI BUSINESS CONSORTIUM(SFAC),New Delhi was constituted as a funding agency of national level. In the meaning time all the north eastern states including Sikkim asked to constitute a Small Farmers Agri-Business Consortium (SFAC) unit as a financing organization to receive fund from central Small Farmers Agri-Business Consortium (SFAC) and release fund to different implementing agencies as per rules. Accordingly the Assam unit small farmers Agri-business consortium was constituted briefly named as Assam Small Farmers Agri-Business Consortium(ASFAC) vide govt. notification No.AGA 153/99/107 dt.1ST Oct/2001 with nine member board of management under chairmanship of agriculture production commissioner, Assam which was registered under societies registration Act, 1860 (Act XXI of 1860) on 24th dec 2001 and presently located at directorate of agriculture campus, Assam Khanapara, Guwahati 781022. Since its establishment this society (ASFAC) has farmed up its own constitution and network by opening bank account under technology mission in all the 23 districts of Assam and started release of fund to those districts for implementing various
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components of Technology mission schemes approved by govt.for integrated development of horticulture and to be implemented by the districts through districts level implementation and monitoring committee headed by additional deputy commissioner (Dev) of concerned district as constituted vide govt notification No.AGA306/99/338, dated Dispur, the 19TH march 2002. It may be mentioned that to facilitate co-ordination among constituent states of north eastern india and also with central small farmers Agri-Business Consortium has been setup at G.S. Road, jain complex (3rd floor), Near old Dispur post office, guwahati-781005 wit an implied objectives of prescribed consultancy services of states as and when required. Agriculture department, govt of Assam has already taken up implementation of different schemes under Technology Mission on integrated dev of horticulture at different districts funded by Govt of india through central Small Farmers Agri Business Consortium (SFAC) and Assam Small Farmers Agri-Business Consortium (ASFAC) for the following programmers; Area expansion of certain horticultural crops, creation of water sources, on farm water management, production of planting materials (Integrated multi crop Nursery), transfer of technology through training, organic farming, promotion and popularization of agriculture equipments, integrated pest management (IPM) rtc. Under MM-II and strengthening of state agmark laboratories under MM-III (the details of mini mission (MM) are indicated under ANNEXURE-III).

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ANNEXURE II Functions and activities of the Assam small farmers Agri-Business consortium(ASFAC). In furtherance of the aims and objects of the Assam small farmers Agri business consortium(ASFAC) indicated in the memorandum of association, the society may undertake itself and/or cause to be undertaken by the concerned departments / agencies/ units one or more of the following tasks or activities in addition to any other tasks or activities as may be considered to be appropriate and necessary. I. organize , assist and help initiatives for improving the production and productivity levels of identified agriculture produce. II. organize , assist and help establishment of appropriate link/ integrated arrangement between production & marketing. III. facilitate development of a sound marketing infrastructures covering inter-alia establishment of processing units, quality control arrangement, market intelligence and information, transportation, storage and such other arrangement as may be necessary. IV. Arrange / promote market studies and or specific commodity surveys at the filed levels with a view to identify the agriculture products which have potential for export and export development, quality standards and specifications, competitive price level, trading channels, delivery schedules, promotional measures etc. V. arrange facilitate the formation of integrated commercial development program or subject preferably farm or unit-wise, setting out, inter-alia products for
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export targets the import need of raw material etc., processing arrangement between the producers and exporters, marketing etc. VI. Assist organize export promotion programme including the sponsoring of marketing teams, participation in specialized fairs and exhibition etc. VII.facilitate identification and astablishment arrangements for undertaking production for exports and help in meeting the import needs, ensuring quality standards, reaching suitable marketing tie Ups. VIII Facilitate/ monitor transport and storage arrangement under the specific programmers and projects that may be formulated. IX. Facilitate/ monitor the conclusion of contractual arrangements according to the established commercial practices and norms ANNEXURE III Objectives and structure of the technology mission In order to improve livelihood opportunities and to bring prosperity to the North Eastern region (NER) including Sikkim, Govt. of India has launched a Technology Mission for intergrated Development of Horiculture. The object of the scheme is to improve the production and productivity of horticultural crops by harnessing the potential of the region. Through this Mission, a horticultural based farming system is to be developed, thereby providing viable and ample opportunities for employment, especially for women, besides improving the productivity of land.

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The specific objectives of the technology missions are : o To improve productivity and quality of horticultural crops through adoption of improved varieties / technology and up gradation of existing production farming technologies o To reduce post harvest losses and improve marketable of the product and its availability to consumers. o To promote better utilization and increased consumption of the produce to ensure higher returns to farmers producers and better nutritional health to the people. o To promote exports and export oriented growth. o To develop the strong base foe transfer of technology and human resource. o Development to support development activities. The technology mission has a structure of four mini mission (MM) viz. Mini mission-I In order to provide technology support, this mi ni mission aims at 1. Supply of nucleus basic seed and planting materials of horticultural crops. 2. Standardization of production and protection technologies. 3. Technology generation, refinement and training through on farm trials.

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Mini Mission-II The department of agriculture and co-operation (DAC) is the nodal department for this mini mission. The mini mission primarily aims at increasing the production and productivity of the horticultural produce in the region through integrated implementation of various governmental programme based on compact area development approach. The major components of this mini mission are: Area expansion Creation of water sources On-farm water management Production of planting materials Transfer of technology through training, frontline demonstration, publicity and training of trainers. Popularization of organic farming and use of Bio-fertilizers. Promotion and popularization of agricultural equipments. Promotion of integrated pest management. Establishment of plant health clinics. Establishment of tissue / leaf analysis laboratories. Entrepreneurial development of women farmers etc. Mini mission-III The major components are post harvest management The existing approved schemes of National Horticulture Board (NHB) with additional outlays are to be implemented in a more focoused way in the mission mode .these includes:
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 Development of commercial Horticulture through production & post harvest management. Capital investment subsidy schemes for construction modernization expansion of cold storage. Technology development & transfer for promotion of horticulture. Strengthening of nutritional status in rural areas. Strengthening of marketing infrastructure. Improvement of service in wholesale markets. Development of rural primary markets. Mini mission-IV The mini mission aims at addressing all the issue of processing and marketing of processed products. The schemes of the department of food processing industries ministry of agriculture are to be integrated in this mini mission .The mini mission envisages: 1, Promotion of new units 2, Up gradation and modernization of existing units. 3, Market promotion , research and development . 4,Human resource development.

1. The Name Of The Society: Assam small farmers Agri-Business consortium(ASFAC). 2.The Office Of The Society Is Situated In The Provinces/State: The society is situated in the state of assam with its office Guwathi and presently located at the directorate of Agriculture campus, Assam, Khanapaara, Guwahathi-781 022.
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3.The objectives for which the society is established are as follows: 1, To catalyse agro industrial growth in different parts of assam based on principles of ecological sustainability, economic sufficiency and social equity. 2, To undertake or assist in undertaking taking for programmes for employment generation, growth and diversification of agriculture and other food based industries to increase food production and export of food products in both primary and processed from including field or Horticulture, Animal husbandry, Fisheries, Poultry and other areas related with food. 3, To organize technology transfer through training and extension involving non-government organizations, farmers association and pathar parichalana samitee(FMC) 4, To sponsor specific and relevant research projects and technology demonstration. 5, To organize input, material supply and production service through public, private and co-operative sector. 6, To identify and promote post harvest processing manufacturing units in the public, private and co-operative sectors. 7, To promote organization of marketing chains both for domestic and export marketing. 8, To build a cadre of skilled managers for managing the affairs of various units being established as a part of the development process. 9, To provide technology and market in support for the development of rainfed and drought prone areas and marginal land.
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10, To create opportunities for skilled employment in villages through biological software industries such as the manufacture of bio-fertilizer and bio-pesticides and establishment of bio-mass refineries and promote agriculture and bio-mass related business activities for food security and for incremental incomes to producers in the context of liberalized world trade in food and agriculture commodities. 11, To rvive and strengthen local institutions including pathar parichalana samitee (FMC), seed villages and producers association of the farming community as instruments of decentralization development process in agriculture sector. 12, To organize catalyse the primary producers in suitable groups towards The performance of activities related to the achievement of the objectives of the society. 13, To influence government polities for correcting the terms of trade to make them favourable for agriculture, thereby increasing the flow of resources and augmenting the rate of capital information in agriculture sector. 14, To pave the way for establishment of integrated producers organization with forward and backward linkages and to organize pathar parichalana samittees (FMC) with forward and backward linkages. 15, To assist and promote programmes aimed at conversation of the environment and natural resources. 16, To prepare, print and public papers, periodicals, monographs and books, in furtherance of the objectives of the society. 17, To help farmers / farmers organization in setting up small agro based village industries.

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2 The Names, Address And Designation Of Present Member Of The Executive Committee (Or Governing Body) AreThe Society Assam Small Farmers Agri-Business Consortium (ASFAC) Shall Have A Board Of Management With The Following Members Si No Sri jyoti Prasad 1 Rajkhowa, IAS Name In Full Address, Occupation And Designation Dispur, Assam Agriculture Production Commissioner, Assam 2 Sri badal mitra Mazumdar,IAS Dispur, Assam Agriculture Production Commissioner, Assam 3 Dr. DebaNanda mahanta Directorate of Agriculture, Assam , Khanapara, ghy-22 Chief Executive Officer Assam Small Farmers Agri-Business Consortium (ASFAC) 4 Dr.Arun kumar Deka Directorate Of Agriclture, Diector of Agriculture, Assam, khanapara, Ghy- 22 5 SriJyotirmoy Chief Executive Officer Member Member-secretary Vice-Chairman chairman Designation

Chakraborty,ACS Assam State Agril. Marketing Board, Member

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Ulubri 6 SriPaban kumar Barthakur , ACS 7 Sri Rajib Lochan Duarah, ACS Director of Industries, Assam,Banunimaidam Joint Secretary to the Govt of Assam, Finance Department, EC-1 8 Md. Mafizuddin Ahmed President, Sadou Asom Pathar Parichalana Samittee 9 Sri Sudhir kumar, IAS Managing Director Small Farmers Agri-Business Consortium (SFAC), New Delhi 5.Membership: (a) Qualification to become members I. First member Signatories of the Memorandum of Association shall be the first member of the society II Member All such institution (farmers association) desirous of participating in the affairs and business of the society can become members of the society on admission by the board of management and fulfilling conditions as may be prescribed from time to time. Member Member Member Member

41

III Associate members Co-operative societies corporate bodies, Non- resident Indians, foreign companies and other organization involved in the functioning of the society may be admitted as associated as associate members subject to conditions laid down by the board of management. The Associate members shall have the right to attend the general body meetings of the society or any other meetings to which they are invited, but shall not be entitled to vote.

(b) Subscription and donation etc. Members and associate members shall pay such subscription as may be prescribed by the board of management except the desired person. All the members of the board of management shall be included as desired person. (c) Collection of fund. The Assam small farmers Agri-Business consortium(ASFAC) society may receive gift, grants, donations and benefactions from the Government or any other source in or outside india and the same shall be used by the society for exercising its functions and discharging its responsibilities subject to the condition that any acceptance from foreign agencies, institutions and government will be on such terms as may be prescribed by the government of assam. a, A corpus fund of Rs.1.00 crore will be created with contribution from small farmers Agri-Business consortium, New delhi, North Eastern Council at the central as will as state and central government.

42

b,All other sums of money that may be provided by the government at the central or state. c, All subscription & charges received from the members. d, All sums of money generated by way of grants and donations or any other manner or from any other sources. (d) Control of funds. 1. The corpus fund of Rs.1.00 crore shall be deposited with any nationalized rural bank as fixed deposit and shall not be withdrawn expect the interest accrued from the deposit. The interest so accrued may be applied towards administrative or other expenses of the society including expenses incurred in the exercise of power and discharge or its functions or in relation to any of the activities referred to the rules of business. In emergent situation, the part of the corpus fund may be utilized for discharge of the functions and responsibilities of the society or any of the activities referred to the rules of business of the society subject to the approval and decision of the board of management. 2.All other sums of money credited to the said (ASFAC) subject to the regulation, if any made in this behalf be deposited with any nationalized bank or public finance institutions approved by the Board of Management. 6. Procedure of the general meeting: ( How many times in a year the general meeting will be held) The society shall hold an annual general meeting at last once in a year not more than 18 calendar months shall elapse between the two successive annual general meetings. A notice of at least 21 days in advance shall be given to the members of the society.
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7. Place (How many of the total members of the general body are required to be present to form quorum of the general body meeting) Guwathi shall be the venue of the meeting of the board of management unless it is decided to hold it at any other place with the express approval of the chairman of the board. The presence of 1/3 (One Third) of the members of general body will form the quorum of the general body meeting. 8. Election procedure of the executive committee governing body managing committee. The chairman of the board of management or his absence, the vicechairman shall preside over the meeting of general body. If both the chairman and the vice chairman are not present, members present shall elect one person from amongst themselves to chair the meeting. All matters in the meeting shall be decided by major of the members present. In case is required each member of the board have one vote and in the event of a tie, the chairman shall have a second or casting vote. 9.Short description of the executive body. The Assam small farmers Agri business Consortium(ASFAC)society have a board of management with the following members1, Agriculture production commissioner, Assam-Chairman 2, Secretary to the government of assam, - vice-chairman Agriculture department.
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3, Chief executive officer small farmers Agri-member-secretary business consortium (ASFAC). 4, Director of agriculture, Assam- Member khanapara, Guwahati-22. 5, Chief Executive Officer, Assam state member Agril. Marketing board. 6, Director, Industries, Assam-Member 7, Representative of finance department member. 8, President, sadou asom pathar-memberparichalana samittee. 9, Representative of small farmers Agri member business consortium, New delhi. 10.The term of the executive body. (i) Nominated members of the board under rule 9 shall hold office at the pleasure of the board .How ever no member shall be nominated for a period of more than 4 (four) years at a time. Member so nominated shall not be eligible for renomination for a second consecutive term. (ii) The membership of person who becomes a member of the board by reason of the office or post he holds, shall terminate when ceases to hold that office or post and his successors shall automatically replace him in the society. 11. Procedure of re-election of the members of the executive body.

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The membership of the founder member will cease as and when a person is transferred from the post. The new person taking over the charge of the post will automatically be a member of the board of management. So far as other member from farmers association, co-operative societies, corporate bodies, etc. are concerned the re-election procedure of the concerned institution will hold good for ASFAC society also. 12.procedure of the meeting of the executive body (How many times in a year or months the meeting of the executive body will be held) Meeting of the board management of Assam small farmers Agri business consortium (ASFAC) society shall be ordinarily held once in every three months with the approval of the chairman of the board of management. 13. Quorum of the meeting of the executive body (How many of the total members of executive body are required to be present to form quorum of the executive body) The quorum of the meeting of the board of management shall be in accordance with the relevant provision of the rules of business. The presence of1/3 (one third) of the board of management will form the quorum of the board of management. If within 30 minutes from time appointed for the meeting, no quorum is present at any meeting of the board, the meeting shall be adjourned. The adjourned meeting may be reconvened at the discretion of the chairman and no quorum shall be necessary in that meeting and the members present may transact the business for which the meeting was called. 14. Expulsion of undesirable number.

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A member of associate member shall cease to be a member by not fulfilling the condition laid down by the board of management or due to reason adjudged by the board of management as injurious the functioning of the society.

15. Auditor. A qualified auditor will be appointed by the board of management who shall audit the accounts of the society at least once in a year and annual audit report will be submitted to the register of societies regularly. The accounts of the society shall at least once every year by audited by the reputed chartered accountant appointed by the board of management. A copy of the audited accounts together with the audit report shall br submitted by the board of management to the general body for approval. Department will take up with CAG for auditing of the accounts by the accountant general (Audit),Assam. A copy of the audited account and audit and audit report for each financial year as approved by the general body shall be submitted to the government not more than six months after the end the financial year. 16. Legal Procedure. The society may sure or be used in the name of the chief executive as per provision laid down under section section-6 of the registration of societies Act. 1860 (Act.XXI of 1860). 17. Dissolution.
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If on holding or dissolution of society (ASFAC) there shall remain, after satisfaction of all debts and liabilities, any assets or property, they shall be dealt with in such manner as the government of Assam may determining. A certified copy of the rules of business of the society (ASFAC) is filling along with memorandum of association. We the undersigned persons, having associated ourselves for the purpose described in this memorandum of association do hereby unto the form ourselves into a society under registration of society Act.1980 (XXI) of 1860 this day of 12TH December 2001 at Guwahati.

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ORGANIZATIONAL STRUCTURE & LAYOUT

49

CHAPTER III

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ORGANIZATIONAL CHART
Meaning of organization chart . An organizational chart is a diagrammatical from which shows important aspects of an organization including the major functions and their respective relationship, the channels of supervision, and the relative authority of each employee who is in charge of each respective function. Principles of organizational chart . The chart should clearly slow the lines at authority and responsibility so that is no overlapping, position with different degrees at authority should not be placed at same line. Position at equal rank should be shown at the same level. Details should be well spaced and job titles should be shown in boxes. As far as possible a complete chart should be on a single sheet. Colors may be used carefully to distinguish between the department at division.

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ADVANTAGES AND USES OF ORGANIZATIONAL CHART An organizational chart shows clearly the various position in the organizational and how they relate to one another. It provisional a clear understanding of how a job contributes to organizational objects. From the individuals can identify the limits of their authority. An organizational chart serves as a valuable guide to the new personnel in undertaking how their position fit the total organizational. It helps to point out inconsistence and deficiencies in organizational relationship. An organizational chart provides a frame work for classification and evaluation of personnel.

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OFFICE LAYOUT
Meaning Plant lay out is most of the important factors for a new industrial enterprise. After the planning of location of the space available for all the activities and facilities associated with manufacturing with a view to enable the plant to function effectively. Definition In the word of james lendy it identically involves the allocations of space and the arrangement of equipment in such manner that overall operating cost has minimized thus development of a proper layout for plant cells for a careful planning.

Objectives
Management is a process concerned with A. Definition the aims and objective of the organization. B. Fitting down polices, procedure programmers, and stately to help in to the achievement of organization aims and objectives. C. Bringing together the various factors of production viz men material, machines, methods. D. Making the best possible the use of factors of production. E. Exercise controls our performance of factor of production.
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F. Providing conditions in which person associated with the organizational owner employees, customers and community as long as you derived maximum satisfaction.

Characteristic Of AnEfficient Layout

Smooth of production Maximum utilization of available Facilities the moment of men, material, machines Produces better working conditions Legibility Involves minimum handling Location of store Facilities supervision and control Provision safety Co-ordination and integration.

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PRODUCTION MANAGER

FIRE STATI

MACHANICAL

HR MANA

ADMIN

MARKETING

FINANCIAL MANAGER

FACTORY

STORE ROOM

CHIEF ACCOUNTANT

PRODUCT DEVELOPMENT

SENIOR ACCOUNTANT

CANTEEN

FINANCE DEPARTMENT

SECRETA RY DEPARTM

REST ROOM

SALES DEPARTMENT

TRAINING CENTRE

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DEPARTMENTATION

56

CHAPTER IV

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DEPARTMENTATION
The usual and normal practice is to entrust the management of a company and for effective management of the companys activities are divided into departments. each department is a complete self sustaining unit there will be head for each department and the head will be responsible for the entire department . The greaves cotton limited (heavy engineering unit concrete division) has got more than six departments in its corporate office. during my training period I had the opportunity to visit some departments in the corporate office; this helped me a lot while preparing the report under the heading departmentation. Departmentation in greaves cotton limited (heavy engineering unit concrete division) Company secretary department Human resource department Purchase department Marketing department Accounts department Plant maintenance department

SECRETARY DEPARTMENT DEFINITION

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secretary is derived from the Latin word secretaries A secretary is defined as one whose office is to write another, especially one who is employed to conduct correspondence. To keep records and to transact various other business for another person or for a society corporation or public body. STATUTORY DUTIES The statutory duties of a company secretary are those prescribed by the companies act or by any other legislation such as the income tax act, sales tax act, stamp , factories act, employees state insurance act, industrial disputes act, contract act, monopolies and restrictive trade practices act etc., The most important part of his statutory duties relates to the various provisions of the companies act the important statutory duties under this act are a) Maintenance of books and register of the companies. b) Filling of the necessary returns with the registrar of companies. c) Supervising the issue, allotment transfer and forfeiture of shares and debentures. d) Attending to meeting and recording their proceedings. e) Allowing inspection of books and documents when required by the statute. f) Safe custody and proper use of the common seal of the company.

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SECRETARIAL DUTIES RELATING TO STATUTORY MEETINGS A) To prepare a draft of the statutory report and the notice of the meeting in consultation with the directors. B) To arrange for covering a board meeting and to get the statutory report and notice approved by the board. C) To get the report certified by the auditors and at least by two directors. One of whom should be the managing directions, if any. D) To get the notice and the report printed and sent them to every member at least 21 days before the meeting is scheduled to be held. E) To file a certified copy of the statutory report with Register. F) To prepare a detailed agenda for the meeting in consultation with the chairman and also a list of members showing the names, addresses, occupations numbers of share held by each member etc., for the purpose of producing it at the meeting. SECRETARIAL DUTIES RELATING TO ANNUAL GENERAL MEETING The steps which are needed to be taken at this stage are as follows a) At the end of the financial years, the balance sheet and the profit & Loss Account are prepared approved by the Board. Further, they are to be audited by the companys auditors and his report must be recorded. b) The Secretary, then prepares the draft annual reports of directors, and in consultation with the chairman, he also prepares a provisional statement of disposal of profits. c) The secretary than makes arrangement for the printing of the notice annual accounts and balance sheet, reports of auditors and directors admission card, proxy from etc.,
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d) The notice of the annual general meeting along with the relevant documents is sent by post to the members and others entitled to receive notice. II DURING THE MEETING During the meeting the steps to be taken are as follows a) Before the commencement of the meeting the secretary has to collect the admission card from the members at the gate and also record this attendance in the register meant for the purpose. b) The chairman takes the chair to conduct the proceedings of the meeting. c) The auditors or secretary in the absence of auditors report. 2. AFTER THE MEETING The steps to be taken after the annual general meeting are as follows a) After the meeting, the secretary prepares the minutes of the meeting and gets them signed by the chairman at the next board meeting. b) The secretary should file the annual accounts and balance sheet annual returns etc., within the prescribe time. DUTIES OF SECRETARY REGARDING ISSU OF SHARE CERTIFICATES The secretary has to take the following steps in connection with issue of share certificates. a) To arrange for the printing of shares certificates and for preserving them under safe custody. b) To fill up share certificates by referring to the register of members and to arrange for their checking by the auditors of the company and getting them ready for signature and sealing.
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c) To arrange the board meeting for passing a resolution to authorize the signature and sealing of the certificates and their issues by the secretary. d) To see that each certificates bears the seal of the company and is signed by at least two directors and counter signed by him. e) To issue a circular to all shareholders informing that the share certificates are ready for delivery

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DUTIES OF THE SECRETARY IN CONNECTION WITH ISSUE OF SHARE WARRANTS The secretary has to take the following steps in connection with the issue if share warrants A. He has to find out whether the articles of the company provide for the issue of the share warrant. B. On receipts of application from the holder of fully paid up shares for the issues of share warrants, he has to arrange board meeting to decide about the issue of share warrant. C. He has to give a lodgment ticket to the application in exchange for the share certificate. D. He has to check up whether the stamp duty and registration fee have been paid by the applicant.

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HUMAN RESOURCE DEPARTMNENT Personnel management is the recruitment selection, development, and utilization of, and accommodation to human resources by organizations. The human resources of an organization consist of all individual regardless of their role who are engaged in any of the organizations activities. FUNCTIONS OF HUMAN RESOURCE DEPARTMENT OF GREAVES COTTON LIMITED Human resources management (HRM) is a process which works within the context of organization HRM becomes a sub system in the organizational context but a system in this own context. If we combine the two together we have a process system approach HRM which helps in undertaking the functions of HRM by providing. A. A description of HRM as a dynamic sub aspect of the total management process and as an integral part of all sub division of an organization. B. An analysis of the interdependence among various aspects of HRM and between HRM and other sub systems of the organization and C. An analysis of relationship between various HRM process and their relevant environment. A process is an identified flow of interrelated events moving towards some objectives. Therefore, HRM process and its sub process must be limited with its objectives the basic objectives of human resources management. 1. To attract human resources into the organization. 2. to develop and motivate them for better performance. QUALLITIES OF HR MANAGER Often a question arises: what are the quantities that make HR Manager successful? The success or failure of manager depends on his personal qualities and the situation in which he works, while quantities are of personal nature situational varies from organization to organization. Therefore, if we exclude situation variables. We may say that every manager must possess all those qualities
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must be supported by job related qualities from this point of view qualities must be supported by job related qualities. From this point of view, HR Manager should have both managerial qualities and job related qualities. MANAGERIAL QUALITIES Various managerial qualities required for HR Manager are as follows. 1. INTELLIGENCE For a manager, higher level of intelligence is required so that understand the situation more easily and prepare him to react accordingly; intelligence is expressed in terms of metal ability to understand the nature of events which exist in a problem requiring a salutation. 2. CONCEPTUAL QUALITIES To recognize significant elements such in a situation and to understand the relation among these elements such qualities are necessary in HR Manager to deal with abstraction to set models, and to set plans.

3. ANALYTICAL QUALITIES In a situation, there are some issues, which may be more important while others may be made more important through in reality these may not be. Therefore HR Manager has to differentiate between wheat and chaff and get into reality. MOTIVATING QUALITIES Not only a manager should be self motivated but he should have qualities to motivate a person for higher performance. There is inner drive in people for motivation to work. PURCHASE DEPARTMENT Purchase department is the back bone of the company purchasing a specialized and complicated job demanding the exercise of highest prudence;
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sound judgment and skill to ensure that the best ultimate value is obtained for every rupee spend by the company. Purchase is very important function as the expenditure is based on purchase of capital and revenue products. PURCHASE MANAGER The main function of the purchase manager is to procure the material at the time right quality at the price from the right supplier. He is the full in charge of purchasing the goods for the company. All goods that are required to the company must be purchased under his control.

OBJECTIVES OF PURCHASIGNG DEPARTMENT 1. To maintain continuity of operation: By making the required material and equipments available at the right times. 2. To maintain and boost production efficiency. 3. To keep goods relation with suppliers. 4. To co ordinate with all the relates department such as stores and production are accounts department. 5. To make timely payment to suppliers.

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MARKETING DEPERTMNET MEANING OF THE TERM MARKETING Marketing may be explained as a business function entrusted with the creation and satisfaction of customer to achieve the aims of business itself. Thus the term may be logically broken down as follows. BUSINESS AIM AT PROFIT To realize profit, a sale has to be made. To make the sale, a customer has to be created. To satisfy the customer, his needs have to be met. To meet his needs, the product should confirm to the requirements of customer. MARKETING DEFINITION A more precise statement could be observed when Philip Kotler said, Marketing is especially concerned with how transaction are created, simulated, facilitated and values. OBJECTIVES OF MARKETING The following aims are sought to be achieved by studying marketing. To develop an intelligent appreciation of modern marketing practices. To provide guiding policies regarding marketing procedures and their implications. To study marketing problems according to circumstances and to suggest solutions. To analysis the shortcomings in the existing pattern of marketing To enable successful distribution of agricultural products, our mineral wealth, and manufactured goods, and To enable manager to assess and device a particular course of action.
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ACCOUNTS DEPARTMENT ACCOUNTS AND (CASH) COMPILATION American institute of certified public accountants has depend financial accounting as the art of recording classifying and summarizing in a significant manner and in terms of money transaction and events which are in part of at least of financial character and interpreting the result there of. BANKING DEPARTMNET Greaves cotton ltd., (Heavy Engineering Unit) is heaving banking arrangement with the following banks for operation at divisional offices factories and head office. ICICI BANK In head office of Greaves Cotton Ltd., (Heavy Engineering Unit) the banking transaction is operation of current account, saving bank account, export bills negotiations and foreign exchange transaction. MEANING AND DEFINITION BUDGETING Budgeting refers to the process of preparing the budgets. It involves a detailed study of business environment clearly grasping the management objectives. The available resources of the enterprises and capacity of the enterprises. Budgeting is depending by J.Batty as under: The entire process of preparing the budget is known as budgeting. BUDGETARY CONTROL According to Brown and Howard. Budgetary control is a system of coordinating costs, which includes the preparation of budgets. Co ordinate the work of departments and establishing responsibilities, company the actual performance with the budgeted and acting upon results to achieve maximum profitability. PLANT AND MAINTENANCE DEPARTMENT
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The following are the different functions and responsibility of the maintenance department of
a) INSPECTION AND SUPERVISION

i.

It deals with the routine schedule checks of the plant facilities in order to find out condition and to check for needed repairs.

ii.

Continuous inspection makes sure the safe and efficient operation of equipment and machinery.

iii.

The number of inspections depends upon the intensity of the use of the equipments.

iv.

The inspection department has to ascertain that every working equipment receives the required attention.

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b) ENGINEERING AND IMPROVEMENTS

1) It involves alteration and improvements in existing equipments and building to reduce breakdown. 2) This department also undertakes engineering and supervision of constructional projects that may after wards become part of the plant.
c) MAINTENANCE OF THE PLANT

I.

The primary duty of the department is to maintain existing plant equipments.

II.

It is also equality important to maintain the existing plant, buildings, and other service such as yards, central stores, road ways etc,

d) REPAIRS AND REPLACEMENT

I.

It is the primary duty of the maintenance department to take corrective repairs to remove unsatisfactory conditions found during preventive maintenance inspection.

II.

Sometimes and unscheduled work of an emergency nature has to be corrected.

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RATIO ANALYSIS

71

CHAPTER V

72

RATIO ANALYSIS A ratio is a mathematical relationship between two items expressed in a quantitative form. Ratios can be defined as Relationship expressed in quantitative terms, between figures which have cause and effect relationship or which are connected with each other in some manner or the other ADVANTAGES OF RATIO ANALYSIS 1. FORECASTING Ratio reveal the trends in costs, sales, profits, and other inter- related facts, which will be helpful in forecasting future events. 2. MANAGERIAL CONTROL Ratio can be used as instrument of control regarding sales, costs and profit. 3. FACILITATES COMMUNICATION Ratio facilitate the communication function of management as ratios convey the information relating to the present and future quickly, forcefully and clearly. 4. MEASURING EFFICIENCY Ratios help to know operational efficiency by comparison of present ratio with those of the past working and also with those of other firms in the industry.

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5. FASILITATING INVESTMENT DECISIONS Ratios are helpful in computing return on investment. this helps the management in exercising effective decisions regarding profitable avenues of investment. 6. USEFUL IN MEASURING FINANCIAL SOLVENCY The financial statements disclose the assets and liabilities in a format. but they do not convey relationship of various assets and liabilities with each other, whereas ratio indicate the liquidity position of the company and the proportion of borrowed funds to total resources which reveal the short term and long term solvency position of a firm. 7. INTER FIRM COMPARISONS The technique of inter firm comparisons can be carried out successfully only with the help of ratio analysis. Otherwise no firm may come forward to disclose full information. inter firm comparisons help the management to compare its performance with an external benchmark or standard.

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LIMITATION OF RATIO ANALYSIS

1. PRACTICAL KNOWLEDGE The analyst should have through knowledge and experience about the firm and industry. 2. RATIO ARE MEANS Ratio are not an end in themselves but they are means to achieve a particular purpose or end. 3. INTER RELETIONSHIP Relations are inter related and therefore a single ratio cannot convey any meaning. it has to be interpreted with reference to other related ratios to draw meaningful conclusions. 4. TIME LAG Ratio analysis will be fruitful only if the conclusions are conveyed quickly to the management. if there is a delay, the utility of the data is diminished and the purpose itself may be defeated. 5. CHANGE IN PRICE LEVEL Ratio analysis becomes redundant during periods of heavy price fluctuations.

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CURRENT RATIO Current ratio is the most common ratio for measuring liquidity being related to working capital analysis; it is also called the working capital ratio current ratio express relationship between current asset and current liabilities. The current ratio is calculated by the following formula.

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TABLES SHOWS ON CURRENT RATIO

Year 2010 2011 2012

Current Assets 362.57 389.83 492.72

Current Liability 301.46 268.7 442.41

Ratio 1.2 1.45 1.11

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CURRENT RATIO
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009-2010 2010-2011 2011-2012 CURRENT RATIO

INTERPRETAITON The ideal current ratio is 2:1 from the above table shows that the current ratio of Greaves Cotton Ltd, from the year 2010 to 2012 was 1.20, 1.45 and 1.11 respectively. It indicates that inadequate current asset to meet the current liabilities.

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FIXED ASSET RATIO

The ratio establishes the relationship between fixed assets and long term funds. The objectives of calculating this ratio is to ascertain the proportion of long term funds invested in fixed asset.

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TABLE SHOWS ON FIXED ASSETS RATIO

Year 2010 2011 2012

Fixed Assets 707.19 778.98 817.52

Long Term Funds 420.05 448.73 442.21

Ratio 1.68 1.74 1.85

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FIXED ASSED

FIXED ASSETS
1.85 1.8 1.75 1.7 1.65 1.6 1.55 2009-2010 2010-2011 2011-2012 FIXED ASSETS

INTERPRETAITON The ideal fixed asset ratio is 0.67 from the above table shows that the current ratio of Greaves Cotton Ltd, from the year 2010 to 2012 was 1.68, 1.74 and 1.85 respectively. It implies that the fixed assed are purchase with short term funds which is not a prudent policy.

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WORKING CAPITAL TURN OVER RATIO

Working capital ratio measures the effective utilization of working capital. It also measures the smooth running of business or otherwise the ratio establishes relationship between cost of sale and working capital. Working capital turnover ratio is calculated with the help of the following formula.

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TABLE SHOWS ON WORKING CAPITAL TURN OVER RATIO

Year

Cost of Sales

Net Capital

Working Ratio

2010 2011 2012

988.42 922.32 1142.11

61.11 121.23 43.32

16.17 7.61 26.37

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WORKING CAPITAL TURN OVER RATIO

WORKIGN CAPITAL
30 25 20 15 10 5 0 2009-2010 2010-2011 2011-2012 WORKIGN CAPITAL

INTERPRETATION From the above table shows that working capital turnover ratio of Greaves Cotton Ltd, for the year 2010, 2011and 2012, was 16.17, 7.61 and 26.37 respectively. It indicates that there was lower investment of working capital and its profitability

84

OWNED CAPITAL TURN OVER RATIO

Managerial efficiency is also calculated by establishing the relationship between cost of sales or sales with amount of capital invested in the business. Capital turnover ratio is calculated with the help of following formula.

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TABLE SHOWS ON OWNED CAPITAL TURN OVER RATIO

Year 2010 2011 2012

Cost of Sales 988.42 922.32 1142.11

Shareholder fund 370.83 404.37 437.05

Ratio 2.67 2.28 2.61

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OWNED CAPITAL TURN OVER RATIO

OWNED CAPITAL
2.7 2.6 2.5 2.4 2.3 2.2 2.1 2 2009-2010 2010-2011 2011-2012 OWNED CAPITAL

INTREPRETATION Owned capital turnover ratio of Graves Cotton Ltd. for their year 2010, 2011 and 2012, was 2.67, 2.28 and 2.61 respectively. It indicates that there was inefficient usage of capital.

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DEBT EQUITY RATIO

The ratio explains the relationship between the owners funds to borrower fund owners fund is also known as internal equalities or shares holder fund this ratio will think or financing pattern of assets to what extent owners and creditors have provided fund is quickly.

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TABLE SHOWS ON DEBT EQUITY RATIO Year Total Long Term Shareholder Fund Debt 2010 2011 2012 707.19 778.78 817.52 370.83 404.35 437.05 1.91 1.93 1.87 Ratio

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TABLE SHOWS ON DEBT EQUITY RATIO

DEBT EQUITY

2009-2010 2010-2011 2011-2012

INTERPRETATION From the above table shows that debt equity ratio of Graves Cotton Ltd. for the year 2010, 2011 and 2012 was 1.91, 1.93 and 1.87 respectively. It shows that this company does not depend much on outsiders funds. Thus t here is a chance of lowering its market value. Hence it can to recommend borrowing an acceptable outsiders fund.

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SUMMARY AND CONCLUSIONS

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CHAPTER VI

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CONCLUSION AND SUGGESTION

CONCLUSION The training under went in Greaves Cotton Limited (Heavy Engineering Unit) was an effective one. I gained much experienced by this training I understood the difficulties in operations carried out in concern. Greaves Cotton Limited (Heavy Engineering Unit) conducts meeting each year to discuss the business. This is very useful and effective way of communication. This company maintains record of meeting all ledger account and other document as required by the law. It interprets all new and advanced technologies to exit in this competitive world.

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SUGGESITON There is nothing to suggest for this company, because the company placed good in all departments but the company was as undercapitalized. The directors should take correct steps ferrets improvement. The company has to improve its layout in few departments.

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ANNEXURE

95

CHAPER VII

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ANNEXURES
CONSTRUCTION EQUIPMENT PRODUCTS: concrete pumps concrete mixers, concrete batching plants. RANGE: 35 to 90 cam / hr 4.6, 7, 9 cam 30 & 60 cam/hr APPLICATIONS / INDUSTRY: power projects ports, high rise buildings and major construction sites, RMC Operation. MANUFACTURED BY: heavy engineering unit than gal and gummidipoondi I II III &IV, tamil nadu INDUSTRIAL ENGINES PRODUCT: disel engines RANGE : 1.4 to 1000 HP APPLICATIONS / INDUSTRY : agricultural equipment fire fighting equipment mining and construction material handling (cranes), Forklifts rail cars, road sweepers, etc. MANUFACTURED BY : diesel engines unit pune, Maharashtra light engines unit I, II, III, and IV Aurangabad and ranipet tamilnadu ptrol engines unit gummidipoondi tamilnadu AGRO EQUIPMENT PRODUCTS : petrol / kerosene engines, perotl / kerosene pumpsets, disel pumpsets RANGE : 1 to 4 HP , 1.5 to 4 HP, 3.5 to 10 HP APPLICATION / INDUSTRY : vibrators, sprayers, lawn mawers power ploughs, self priming pump etc. MANUFACTURED BY : petol engines unit gummidipoondi tamilnadu

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AUTOMOTIVE PRODUCTS : diesel / gasoline engines RANGE : 4.4. to 20 HP APPLICATION / INDUSTRY : automotive MANUFACTURED BY : light engines unit I, II, III, IV Aurangabad and ranipet tamilandu AUXILIARY POWER PRODUCTS : genesetts dual fuel engines /gensets RANGE : 500 VA to 500 KVA single unit 750 VA to 25000KVA in parallel running AAPPLICATIONS / INDUSTRY : retail outlets, commercial complexes hotels hospitals, small and medium enterprises etc. MANUFACTURING BY : diesel engines unit, pune.

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BIBLIOGRAPHY

99

CHPATER VIII

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BIBILOGRAPHY

S.No

Departments

Name of the Book

Name Author

of

the

Introduction of the Cmpany company Practice Marketing

law

& Kathiresan Dr Radha Kathiresan Dr Radha

Markeing Department

3.

Human Resources Human Resources Kathieresan Management Department 4. Ratio Analysis Management Account 5. Meaning Industries T.S Reddy & Y.Hariprasad Management Dr.Radha

of Industrial Law & Dr.M.R.Srinivasan Public Relation C.D.Balaji

101