CHAPTER -I

1.1 INTRODUCTION
Ashok Leyland (Hinduja Group) is an Indian automobile manufacturing company
based in Chennai, India. Founded in 1948, it is the 2nd largest commercial vehicle
manufacturer in India, 4th largest manufacturer of buses in the world and 16th largest
manufacturer of trucks globally. Operating six plants, Ashok Leyland also makes spare parts
and engines for industrial and marine applications. It sells about 60,000 vehicles and about
7,000 engines annually. It is the second largest commercial vehicle company in India in the
medium and heavy commercial vehicle (M&HCV) segment with a market shareof 28% (2007
08). With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok
Leyland is a market leader in the bus segment. The company claims to carry more than 60
million passengers a day, more people than the entire Indian rail network. In the trucks segment
Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks. However Ashok
Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. With a joint
venture with Nissan Motors of Japan the company made its presence in the Light Commercial
Vehicle (LCV) segment (<7.5 tons).
1.1.1

VISION

The vision and mission statements of Ahsok Leyland focus on becoming a leader in the
commercial vehicle market. They focus offering the best product at the most reasonable price.
1.1.2. MISSION
Identifying with the customer.
Being lowest cost manufacturer.
Global bench marking our products, process and people.

1.1.3. VALUES AND ETHICS

We believe the softest pillow is a clear conscience. At Ashok Leyland, our values shape
our decisions. They define our character, culture, and work ethic. Values are what help us stay
rooted and aspire to scale new heights.
HISTORY OF THE COMPANY
The origin of Ashok Leyland, a Hinduja group company can be traced to the urge for
selfreliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister
persuaded Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948,
Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The
Company's destiny and name changed soon with equity participation by British Leyland and
Ashok Leyland commenced manufacture of commercial vehicles in 1955.
Since then Ashok Leyland has been a major presence in India's commercial vehicle
industry with a tradition of technological leadership, achieved through tieups with
international technology leaders and through vigorous inhouse R&D. Access to international
technology enabled the Company to set a tradition to be first with technology. Be it full air
1

brakes, power steering or rear engine busses, Ashok Leyland pioneered all these concepts.
Responding to the operating conditions and practices in the country, the Company made its
vehicles strong, overengineering them with extra metallic muscles. 'Designing durable
products that make economic sense to the consumer, using appropriate technology', became the
design philosophy of the Company, which in turn has moulded consumer attitudes and the
brand personality.
The Hinduja Group is a transnational conglomerate that provides a wide range of
products in over fifty countries worldwide. Today, the Hinduja Group has become one of the
largest transnational business conglomerates in the world with diversified operations, spanning
all the continents. The Group employs over 25,000 people and has offices in many key cities of
the world and all the major cities in India.Ashok Leyland vehicles have built a reputation for
reliability and ruggedness.
In the populous Indian metros, four out of the five State Transport Undertaking (STU)
buses come from Ashok Leyland. Some of them like the doubledecker and vestibule buses are
unique models from Ashok Leyland, tailormade for highdensity routes.
In 1987, the overseas holding by Land Rover Leyland International Holdings Limited
(LRLIH) was taken over by a joint venture between the Hinduja Group, the NonResident
Indian transnational group and IVECO. (Since July 2006, the Hinduja Group is 100% holder of
LRLIH). The blueprint prepared for the future reflected the global ambitions of the company,
captured in four words: Global Standards, Global Markets. This was at a time when
liberalisation and globalisation were not yet in the air. Ashok Leyland embarked on a major
product and process upgradation to match worldclass standards of technology.
For over five decades, Ashok Leyland has been the technology leader in India's
commercial vehicle industry, moulding the country's commercial vehicle profile by introducing
technologies and product ideas that have gone on to become industry norms. From 18 seater to
82 seater doubledecker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous
special application vehicles to diesel engines for industrial, marine and genset applications,
Ashok Leyland offers a wide range of products. Eight out of ten metro state transport buses in
India are from Ashok Leyland. With over 60 million passengers a day, Ashok Leyland buses
carry more people than the entire Indian rail network.

1.3. MILE STONES

1966 Introduced full air brakes

1967 Launched doubledecker bus

1968 Offered power steering in commercial vehicles

1979 Introduced multiaxle trucks

1980 Introduced the international concept of integral bus with air suspension

1982 Introduced vestibule bus

2

1992 Won selfcertification status for defence supplies

1993 Received ISO 9002

1997 India's first CNG powered bus joined the BEST fleet

2001 Received ISO 14001 certification for all manufacturing units

2002 Launched hybrid electric vehicle2003

Chairman of Ashok Leyland Board

2004 The Government of National Capital Territory of Delhi and Ashok Leyland
signed an agreement for setting up a 'stateoftheart' Driver Training Institute at Burari

2005 Stateoftheart Driver Training Institute opens in Delhi

2006 Ashok Leyland and Bosch have joined hands with the Indian Institute of
Technology Madras (IITM) to set up the Ashok Leyland and Bosch Centre of
Excellence in Engineering Design at the IITM campus

2007 The company unveiled 4921 TT, a 6x4 tractor with a gross vehicle weight of 49
tonnes

2008 The company signed an agreement for a joint venture with John Deere, for
manufacturing and marketing of construction equipment.

2009 Ashok Leyland and Bank of Baroda signed a MoU wherein Bank of Baroda
will fund Ashok Leyland?s endcustomers as well as finance its dealers? inventory

2010 Ashok Leyland has bagged an order for 600 vehicles from VRL Logistics that
comprise 500 numbers of 3123 MultiAxle Vehicle (MAV) in the 8x2 configuration, a
newly developed, first of its kind for the Indian commercial vehicle industry, along with
100 nos. of the Companys 12metro buses

2011Ashok Leyland forays in small commercial vehicle segment; launches ?DOST? in

JV with Nissan Motor.

2013 Launched the STILE, a stylish MultiPurpose Vehicle (MPV) based on a

contemporary, awardwinning vehicle platform.

2013 Launched the BOSS, an intermediate commercial vehicle (ICV), that seamlessly
combines the strength and ruggedness of a truck with the comfort of a car.

2014 Launched two new Light Commercial Vehicles (LCV) PARTNER truck,
India?s first airconditioned LCV goods vehicle and MiTR bus, a LCV bus with best
inclass comfort. After the commercially successful Dost and the recently launched
STiLE, now PARTNER and MiTR are the latest offerings from the Ashok Leyland ?
Nissan Joint Venture.

1.4. COMMUNICATION
3

DheerajHinduja Elected Vice

1919
1948

1995

1995

Major corporate events

Year Events
Opens an office in Iran (the first outside India)
Ashok Leyland, incorporated as Ashok Motors, starts business as an assembler of
Austin cars in India. In 1955, the company enters into an agreement with Leyland
Motors, UK, to manufacture Leyland vehicles and changes its name to Ashok
Leyland
Hinduja Finance is amalgamated with Mitesh Mercantile and Financing. The entire
business, properties and assets of Hinduja Finance are transferred to Mitesh
Mercantile and Financing. The amalgamated company is named Hinduja Finance
Corporation
Hinduja TMT created with the merger of Hinduja Telecom India Limited, Melody
Trading Private Limited, and Richman Investrade Private Limited by allotting 11.5m
shares in a swap deal. Ashok Leyland Information Technology merges with Hinduja
TMT. It also acquires a 51% majority shareholding in In2Cable.com (India), an
Internet service provider
A

1.5.ORGANTRISATIONAL STRCTURE

1.6. CORPORATE SOCIAL RESPONSIBILITY

I. CONSTITUTION:
The Board of Directors of Ashok Leyland Limited (the Company) at their Meeting
held on
September 8, 2014, resolved to constitute a Committee of the Board with the
nomenclature
Corporate Social Responsibility Committee (the Committee).
1.2.The Committee will act in accordance with the terms specified in Section 135 of
the
Companies Act, 2013 read with Companies (Corporate Social Responsibility) Rules,
2014.
The Committee shall come into force with immediate effect.
II. DEFINITIONS:
a) Act means Companies Act, 2013 including any Statutory modification or reenactment
thereof;
b) Board means Board of Directors of the Company.
c) Corporate Social Responsibility generally means and includes but it is not
limited to:
- Projects or programs relating to activities specified in Schedule VII of the Act; or
- Projects or programs relating to activities undertaken by the Board in pursuance of
recommendations made by the CSR Committee as per CSR policy of the Company
subject to the condition that such policy includes the subject covered under Schedule
VII of the Act.
d) CSR Committee means Corporate Social Responsibility Committee of the
Board.
e) CSR Policy refers to activities to be undertaken by the Company as determined
by the
CSR Committee and approved by the Board of Directors from such projects or
programmes relating to activities specified in Schedule VII or covered as Corporate
Social
Responsibility as per this policy and the expenditure thereon, excluding activities
undertaken in pursuance to normal course of business of the Company.
The Committee undertakes one or more of the following activities, which relate to
Schedule VII of the Companies Act, 2014 as its projects for CSR activity viz, .
a) Eradicating hunger, poverty and malnutrition, promoting preventive health care
and
sanitation including contribution to the Swach Bharat Kosh set up by the Central
Government for the promotion of sanitation and making available safe drinking
water;
b) Promotion of education, including special education and employment enhancing
vocation skills especially among children, women, elderly, and the differently abled
and livelihood enhancement projects;
7

c) Promoting gender equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centers and such other
Facilities for senior citizens and measures for reducing inequalities faced by socially
and economically backward groups;
d) ensuring environment sustainability, ecological balance, protection of flora and
fauna,
animal welfare, agroforestry, conservation of natural resources and maintaining
quality of soil, air and water including contribution to the Clean Ganga Fund set up
by
the Central Government for rejuvenation of river Ganga;4
e) protection of national heritage, art and culture including restoration of buildings
and
sites of historical importance and works of art; setting up public libraries; promotion
and development of traditional arts and handicrafts;
f) measures for the benefit of armed forces veterans, war widows and their
dependents;
g) training to promote rural sports, nationally recognized sports, Paralympic sports
and
Olympic sports;
h) Contribution to the Prime Minister's National Relief Fund or any other fund set
up by
the Central Government for Socio-economic development and relief and welfare of
the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and
Women.
1.7. CORPORATE GOVERNENCE
The Board of Directors and the Management of Ashok Leyland are committed to the
enhancement of shareholder value,

Through sound business decisions, prudent financial management and high standards of
ethics throughout the organization
By ensuring transparency and professionalism in all decisions and transactions
Achieving excellence in Corporate Governance by conforming to, and exceeding
wherever possible, the prevalent mandatory guidelines on Corporate Governance and by
regularly reviewing the Board processes and the Management systems for further
improvement
The company has adopted a Code of Conduct for the members of the Board and senior
management, who have all affirmed in writing their adherence to this Code.
Ombudsman
Another significant step has been the appointment of an Ombudsman to deal with any
references, complaints or grievances about the Company, its employees or its dealings.
If the suppliers, employees or customers have any suggestions on governance issues or
grievances or complaints on Ashok Leyland's practices - inclusive of its executives in
various functions - which they feel ought to be raised with the Ombudsman and not
with the usual channels of business, they may do so.
It is advised that the regular business dealings should be through the usual business
functional channels. The Ombudsman will not deal with them under normal
circumstances.
The Ombudsman is Mr. Shekar Arora, a former Executive Director of the Company,
8

with an excellent understanding of Ashok Leyland as an organization and its

functioning, having been with the Company for nearly 30 years. He can be contacted
at.

CHAPTER -II
2.1. Capital structure
Capital structure is the composition of long-term liabilities, specific short-term liabilities
like bank notes, commonequity, and preferred equity which make up the funds with which a
business firm finances its operations and its growth. The capital structure of a business firm
is essentially the right side of its balance sheet.
Capital structure, broadly, is composed of the firm's debt and equity.
There are considerations by management and the stakeholders over what mix of debt and
equity to use. Should more debt financing be used in order to earn a higher return? Should
more equity financing be used to avoid the risk of debt and bankruptcy?
Period
From
2013
2012
2011

To
201
4
201
3
201
2

2010 2011
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000

201
0
200
9
200
8
200
7
200
6
200
5
200
4
200
3
200
2
200
1

Instrumen
t
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share

Authorized
Capital

Issued
Capital

(Rs. cr)

(Rs. cr)

Shares (nos)

2535.6

266.09

2660676634

266.1

400

266.09

2660676634

266.1

300

266.09

2660676634

266.1

200

133.05

1330338317

133

200

133.05

1330338317

133

150

133.05

1330338317

133

150

133.05

1330338317

133

150

132.41

1323870317

132.4

150

122.18

1221586776

122.2

150

118.95

1189294200

118.9

150

118.93

118929420

10

118.9

150

118.93

118929420

10

118.9

150

118.93

118929420

10

118.9

150

118.93

118929420

10

118.9

10

- PAI D U PFace
Capital
Value

2.2. COST OF CAPITAL

Cost of capital refers to the opportunity cost of making a specific investment. It is therate of
return that could have been earned by putting the same money into a different investment with
equal risk. Thus, the cost of capital is the rate of return required to persuade the investor to
make a given investment.
Generally cost of capital includes cost of equity(equity share capital),cost of preference capital,
cost of debt(debentures) and etc.
A. cost of equity
In financial theory, the return that stockholders require for a company. The traditional formula
for cost of equity (COE) is the dividend capitalization model:

A firm's cost of equity represents the compensation that the market demands in exchange for
owning the asset and bearing the risk of ownership.
B.COST OF PREFERENCE CAPITAL
Cost of preference share capital is that part of cost of capital in which we calculate the amount
which is payable to preference shareholders in the form of dividend with fixed rate. Even,
dividend to preference shareholder is on the desire of board of directors of company and
preference shareholder can no pressurize for paying dividend but it doesnt mean that
calculation of cost of pref. share capital is not necessary because, if we dont pay the dividend
to pref. shareholders, it will affect on capability to receive funds from this source.
Cost

of

pref.

share

capitals

formula

is

given

below.

Cost of Pref. Share capital (Kp) = amount of preference dividend/ Preference share (D/P)
If we have obtained this preference share capital after some adjustments like premium or
discount or pay some cost floatation, at that time, it is our duty to deduct discount and cost of
floatation or
add
premium
in
par
value
of
pref.
share
capital.
In adjustment case cost of pref. share capital will change and we can calculate it with
following
way:Kp
D

D/NP
=

Annual

pref.
11

dividend,

NP = Net proceed = Par value of Pref. share capital discount cost of floatation
Or

NP

Par

value

of

pref.

share

capital

Premium

There will no adjustment of tax rates because, dividend on pref. share capital is payable on net
profit after tax adjustment, so need not to do adjustment of tax for comparing it with cost of
debt or
cost
of
equity
share
capital
.
Some, time we issue redeemable preference shares whose amount is payable after some time.
At the time of maturity, we need to calculate cost of pref. share capital with following
formula
Cost of redeemable pref. share capital =

T
D

Annual

MV

Maturity

NP

Net

N=

value
proceeds

number

dividend
of

of
of

12

pref.

shares

pref.

shares
years

Thisformula is little different from cost of nonredeemable pref. share capital because, we have
to add, the benefit which we have given to pref. share capital at the time of maturity.
C.COST OF DEBT
Cost of debt is that part of cost of capital in which we calculate the amount which is payable
to debenture in the form of debenture interest with fixed rate.
The following are the formulae for cost of debt,
When irredeemable:
Kd(Cost of debt) = i(1-t)
Np
Where,
i rate of interest,
t tax rate,
Np market value of debenture.
When redeemble:
Kd(Cost of debt) = i(1-t)+(mv+rv)
N
(mv+rv)
2
Where,
MV

Maturity

NP

Net

N=

value
proceeds

of
of

number

of

pref.

shares

pref.

shares
years

i rate of interest,
t tax rate,
Cost of capital= cost of equity+ cost of debt+ cost of preference capital.(Ke +Kd +Kp).

2.3. Financial performance

1. We have audited the accompanying Financial Statements of Ashok Leyland Limited ("the
Company"), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit
and Loss and the Cash Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Management is responsible for the preparation of these financial statements
that give a true and fair view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting Standards referred to in Section 211(3C) of
13

the Companies Act, 1956 ("the Act") (which continue to be applicable in respect of Section 133
of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatements, whether due to fraud or
error.
Auditors' Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. Those Standards require that we comply with the ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
4. An auditinvolves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor's
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers the internal control relevant to the Company's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control. An audit also includes evaluaing the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by the Management, as
well as evaluaing the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanaions given to
us, the aforesaid financial statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the accounting principles generally
accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,
2014;
(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year
ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year
ended on that date.
Report on Other Legal and Regulatory Requirements

14

7. As required by the Companies (Auditor's Report) Order, 2003 ("the Order") issued by the
Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) we have obtained all the information and explanaions which to the best of our knowledge
and belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company
so far as appears from our examination of those books;
(c) the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement comply with the Accouning Standards referred to in Secion 211(3C) of the Act
(which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms
of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs).
(e) on the basis of writenrepresentaions received from the directors as on March 31, 2014 and
taken on record by the Board of Directors, none of the directors is disqualified as on March 31,
2014 from being appointed as a director in terms of Section 274(1)(g) of the Act.

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 7 under 'Report on Other Legal and Regulatory

Requirements' section of our Report of even date
In our opinion and on the basis of such checks as we considered appropriate, and according to
the informaion and explanaions given to us, the nature of the Company's business/ activities/
results during the year are such that clauses (vi), (xiii), (xiv), (xviii), and (xx) of paragraph 4 of
the Order are not applicable to the Company. Further, in respect of other clauses, on the basis of
such checks as we considered appropriate, we report that:
1. In respect of its fixed assets:
(i) the Company is maintaining proper records showing full particulars including quantitative
details and situation of fixed assets.
15

(ii) the fixed assets were physically verified by the Management during the year under a phased
programme of verification, which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals having regard to the size of the Company, nature and value
of its assets. According to the information and explanations given to us, no material
discrepancies have been noticed during the year on such verification.
(iii) the fixed assets disposed off during the year, in our opinion, do not constitute a substantial
part of the fixed assets of the Company and such disposal has, in our opinion, not affected the
going concern status of the Company.
2. In respect of its inventories:
(i) the inventories have been physically verified during the year by the Management at
reasonable intervals.
(ii) in our opinion and according to the information and explanations given to us, the
procedures of physical verification of the inventory followed by the Management are
reasonable and adequate in relation to the size of the Company and the nature of its business.
(iii) in our opinion and according to the information and explanations given to us, the Company
is generally maintaining proper records of its inventories and no material discrepancies were
noticed on physical verification.
3. On the basis of our examination of the books of account, the Company has neither granted
nor taken any loans, secured or unsecured, to / from companies, firms or other covered in the
register maintained under section 301 of the Act.
4. In our opinion and according to the information and explanations given to us, there is
generally an adequate internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventories and fixed assets, for payment of
expenses and for sale of goods and services. Further, on the basis of our examination of the
books and records of the Company, we have neither come across nor have been informed of
any continuing failure to correct major weaknesses in the aforesaid internal control system.
5. In respect of contracts or arrangements entered in the Register maintained in pursuance of
Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according
to the information and explanations given to us:
a) the particulars of contracts or arrangements referred to in Section 301 of the Act that needed
to be entered into the register, maintained under the said section have been so entered.
b) where each of such transactions is in excess of Rs.5 lakhs in respect of any party, the
transactions have been made at prices which are prima facie reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion, the Company has an internal audit system commensurate with its size and
nature of its business.
7. We have broadly reviewed the cost records maintained by the Company pursuant to the
Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government of
India under Section 209(1)(d) of the Act and are of the opinion that, prima facie, the prescribed
16

accounts and cost records have been made and maintained. We have, however, not made a
detailed examination of the cost records with a view to determine whether they are accurate or
complete.
8. According to the information and explanations given to us and the books of account
examined by us, in respect of statutory dues:
(i) the Company is generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory
dues, as applicable, with the appropriate authorities during the year.
(ii) there were no undisputed amounts payable in respect of such statutory dues outstanding as
at March 31, 2014 for a period of more than six months from the date they became payable.
(iii) there are no dues of wealthtax and customs duty which have not been deposited on
account of any dispute. Details of dues towards income tax, sales tax, service tax, excise duty
and cess that have not been deposited as at March 31, 2014 on account of disputes are as stated
below:
9. The Company does not have any accumulated losses as at March 31, 2014 and has not
incurred any cash losses in the financial year ended on that date or in the immediately
preceding financial year.

2.3.1. EPS(Earning Per Share)

Earnings Per Share represents the portion of a company's profit allocated to each outstanding
share of common stock. The net income (reported or estimated) for a period divided by the total
number of shares outstanding (TSO) during that period.
The following information furnishes the eps of ashok Leyland company
The formula to calculate earnings per share is:

Net Income Dividends on Preferred Shares

Earnings per Share (EPS)=
Weighted Average Number of Common Shares Outstanding
The following information furnishes the EPS of ashok Leyland company.

17

Adjusted EPS (Rs)

0.82

-1.79

0.54

2.12

4.75

Adjusted cash EPS (Rs)

2.28

-0.37

1.97

3.45

6.76

Reported EPS (Rs)

1.18

0.11

1.63

2.13

4.75

Reported cash EPS (Rs)

2.64

1.53

3.06

3.45

6.76

Dividend per share

0.45

0.60

1.00

2.00

Operating profit per share (Rs)

3.61

0.62

3.29

4.72

9.12

Book value (excl rev res) per share

EPS (Rs)

14.4
0

12.3
0

16.7
4

10.88

19.97

Book value (incl rev res) per share

EPS (Rs)

17.9
9

16.7
2

16.7
4

15.82

29.79

Net operating income per share EPS

(Rs)

47.6
6

37.3
7

46.9
1

48.27

84.02

Free reserves per share EPS (Rs)

18

2.3.2. DIVIDEND PER SHARE

The sum of declared dividends for every ordinary share issued. Dividend per share (DPS)
is the total dividends paid out over an entire year (including interim dividends but not
including special dividends) divided by the number of outstanding ordinary shares issued.
DPS can be calculated by using the following formula:

D - Sum of dividends over a period (usually 1 year)

SD - Special, one time dividends
S - Shares outstanding for the period
The following information furnishes the details of dividend of ASHOK LEYLAND Co,

Announcement
Date

Effective
Date

Dividend
Date

12/5/2015

17/06/2015

Final

10/5/2013

4/7/2013

Final

14/05/2012
19/05/2011

12/7/2012
29/06/2011

Final
Final

19

Dividend(%
)

Remarks

Rs.0.4500 per
share(45%)Dividend
Rs.0.6000 per
60%
share(60%)Dividend
100%
200%
45%

2.3.3. RATIO ANALYSIS

Ratio analysis is one of the technique or tool or method to measuring the performance of the
company. It is widely accepted technique. It is also called yard stick. Generally ratio means
the relationship between two things or two elements, analysis of these ratios is called as Ratio
analsis.The main intension of this analysis to providing the strength and weaknesses of the
company not only that to measure the performance of the company.
1.Current ratio
Current ratio expresses the relationship between current assets and current liabilities. It
is computed by dividing current assets by current liabilities. The ratio is calculated on the basis
of the following formula,

Current ratio=current assets/current liabilities

Current assets

current liabilities

in crores

in crores

Current investments

38,437.48

Trade payables

221,415.37

Inventories
Trade receivables

118,870.31
129,901.05

other current liabilities

short term provisions

169,691.35
8,812.67

Cash&bank balance
1,169.06

Short term loans and

advances

Short borrowings

80,071.10

20

58,740.81

Other current assets

17,094.50

Total

6,31,793.0
3

Total

6,85,402.0
1

Current ratio=current assets/current liabilities

Current ratio=631793.06/685402.01
Current ratio=0.92

Interpretation:
Interpretation Looks at the ratio between Current Assets and Current Liabilities Ideal level 2 :
1 A ratio of 2.15 : 1 would imply the firm has 2.15 of assets to cover every 1 in liabilities It
might also suggest that too much of its assets are tied up in unproductive activities too much
stock, for example

2.Gross profit ratio

Gross profit ratio is one of the classification of trading and profit & loss account ratio.It
can be useful to know the relationship between gross profit and sales.Generally the following
formula can be useful to know the gross profit ratio.
Gross profit ratio=gross profit/sales X 100
Gross profit=69227.96
Sales=10,056,084.5
Gross profit ratio=gross profit/sales X 100
Gross profit ratio=69227.96/10,056,084.5X 100
Gross profit ratio=6.55%

21

Interpretation:
Interpretation It shows the gross profit on sales A high ratio may not result in high gross profit
figure unless a large volume of sales is achieved. The higher the better A gross profit margin of
45.66% means that for every 1rupee of sales, the firm makes 45.66 rupee in gross profit
3.Debt equity ratio
This is a measure of cintribution of the shareholders or owners to the long term
finances of the company,as compared to the contribution of its long-term creditors.
Debt equity ratio=long term debts/share holder funds
Long term debts=5, 49,118.41
Shareholder funds=4, 44,788.03
Debt equity ratio=long term debts/share holder funds
Debt equity ratio=5,49,118.41/5,49,118.41
Debt equity ratio=1.23
Interpretation:
Interpretation It is also known as external internal equity ratio. It indicates the proportionate
claims of owners and the outsiders against the firms assets. Its is 1:1 which is considered as
balanced
4.Net profit ratio
Net profit ratio is one of the classification of trading and profit & loss account. It can be
useful to measure the relationship between net profit and net sales. The following formula can
be useful to measure the net profit ratio.
Net profit ratio=Net profit/sales X 100
Net profit=1063620.6
Net sales=1056084
Net profit ratio=Net profit/sales X 100
Net profit ratio=1063620.6/1056084X 100
Net profit ratio=1.0
Interpretation:
Interpretation It shows the net profit as a percentage of sales It gives some ideas of the
companys pricing policy and cost control Net profit takes into account the fixed costs involved
in production the overheads The Net Profit of 28.29% means company is earning 28.29 paisa
on the investment of 1 rupee each
5.Operating ratio
22

Operating ratio is one of the classification of trading and profit & loss account.It can be
useful to measure the relationship between operating expenses and sales.The following formula
can be useful to measure the operating ratio.
Operating ratio= Cost of goods sold +Operating
expenses/sales X 100
Cost of goods sold=6198
Operating expenses=1982
Sales=11407
Operating ratio=71.71%
Interpretation:
Interpretation It shows the operational efficiency of the business An operating ratio ranging
between 75% and 80% is generally considered as standard for manufacturing concerns The
Operating Ratio of 71.71% means that company is just below the standard manufacturing.
6. Fixed assets turnover ratio
Fixed assets turnover ratio is one of the combined ratio. It express the relationship
between fixed assets and sales. It can be useful to know the efficiency of operating of fixed
assets. The following formula can be useful to know the fixed assets turnover ratio.
Fixed assets turnover ratio=sales/fixed assets
Sales=228035
Fixed assets=584139
Fixed assets turnover ratio=sales/fixed assets
Fixed assets turnover ratio=228035/584139
Fixed assets turnover ratio=0.3
7. Total assets turnover ratio
This ratio ensures whether the capital employed has been effectively used or not. This is
also the test of managerial efficiency and business performance. Higher total capital turnover
ratio is always required in the interest of the company. The ratio is measured on the basis of the
following formula
Total assets turnover ratio=sales/total assets
Sales=228035
Total assets=1280800
23

Total assets turnover ratio=sales/total assets

Total assets turnover ratio=228035/1280800
Total assets turnover ratio=0.17
8. Proprietary Ratio
The total shareholder fund is compared with the total tangible assets of the company.
Proprietary ratio=share holderfunds/total assets
Shareholder funds=2656
Total assets=5313
Proprietary ratio=shareholder funds/total assets
Proprietary ratio=2656/5313
Proprietary ratio=0.49
Interpretation:
Interpretation It is also known as Equity ratio or net worth to total assets ratio. It indicates the
long-term or future solvency position of the business. This means that out of every 1Rupee
employed in the business, shareholders contribution is about 50 paisa. Accordingly, the
creditors contribution would be the remaining 50 paisa
9. Working capital turnover ratio
Working capital of a concern is directly related to sales, the current assets like debtors,
bills receivables, cash, stocketc., and change with the increase or decrease in sales. The
working capital is taken as...
Working capital=current assets-current liabilities
Working capital turnover ratio=sales/working capital
Sales=228035
Working capital=51779.6
Working capital turnover ratio=sales/working capital
Working capital turnover ratio= 228035/51779.6
Working capital turnover ratio= 4.40

10. Absolute cash ratio

The ratio of a company's total cash and cash equivalents to its current liabilities. The cash ratio
is most commonly used as a measure of company liquidity. It can therefore determine if, and
how quickly, the company can repay its short-term debt. A strong cash ratio is useful to
creditors when deciding how much debt, if any, they would be willing to extend to the asking
24

party.
Absolute cash ratio=

cash reserves
current liabilities

Absolute cash ratio=cash reserves/current liabilities

Cash reserves=1,169.06
Current liabilities=4, 58,660.20
Absolute cash ratio=0.002

2.3.4. WORKING CAPITAL

The working capital ratio (Current Assets/Current Liabilities) indicates whether a

company has enough short term assets to cover its short term debt. Anything below 1
indicates negative W/C (working capital). While anything over 2 means that the
company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0
is
sufficient.Also
known
as
"net
working
capital".
w.c =ca (current assets)-cl(current liabilities).

Lets we have taken the working capital of ashok Leyland co.

25

AS ON
31.03.13

CURRENT ASSETS
INVESTMENTS
INVENTORIES
TRADE RECEIVABLES
CASH
BANK
SHORT TERM LOANS & ADV
OTHER CURRENT ASSETS

AS ON
31.03.14

CHANGES
IN WC

0 38437.48
189602.08 118870.31
141941.13 129901.05
781.09
505.9
613.15
663.16
87134.18
80071.1
7617.75
17094.5
427689.38 385543.5

38437.48
-70731.77
-12040.08
-275.19
50.01
-7063.08
9476.75
-42145.88

76698.25 58740.81
248536.85 221415.37
173506.34 169691.35
30868.33
8812.67
529609.77 458660.2

-17957.44
-27121.48
-3814.99
-22055.66
-70949.57

CURRENT LIABILITIES
ST BORROWINGS
TRADE PAYABLES
OTHER CURRENT LIABILITIES
ST PROVISIONS

INCREASE IN WORKING
CAPITAL

28803.69

2.3.5. CASH FLOW STATEMEN

26

Profit
442.2
Before Tax
Net Cash Flow from
Operating Activity
Net Cash Used in
Investing Activity
Net Cash Used in
Financing Activity
Net Inc/Dec In Cash and
Cash Equivalent
Cash and Cash
Equivalent - Beginning of
the Year
Cash and Cash
Equivalent - End of the
Year

-91.22

470.71

689.98

801.8

1766.55

556.43

728.3

1117.06

591.38

111.69

-110.14

-1164.32

-1057.52

-917.73

-1179.17

-448.64

416.98

-210.87

-13.64

700.33

-3.03

-19.65

-151.33

-339.98

5.06

8.09

27.46

175.37

515.36

705.39

5.06

7.81

24.04

175.37

2.3.6.FUND
STATEME
The net of
inflows
outflows in
of various
assets. Fund
usually mea
a
month
quarterly ba
performance
asset or fun
taken into
only
redemptions

(outflows) and share purchases (inflows)

Under the given the fund flow statement of ashokleyland
STATEMENT OF CHANGES IN WORKING CAPITAL
CURRENT ASSETS

AS ON
31.03.13

INVESTMENTS
INVENTORIES
TRADE RECEIVABLES
CASH
BANK
SHORT TERM LOANS & ADV
OTHER CURRENT ASSETS

AS ON 31.03.14

CHANGES IN WC

0
189602.08
141941.13
781.09
613.15
87134.18
7617.75
427689.38

38437.48
118870.31
129901.05
505.9
663.16
80071.1
17094.5
385543.5

3
-7
-1

76698.25
248536.85
173506.34
30868.33
529609.77

58740.81
221415.37
169691.35
8812.67
458660.2

-1
-2
-2
-7

-4

CURRENT LIABILITIES
ST BORROWINGS
TRADE PAYABLES
OTHER CURRENT LIABILITIES
ST PROVISIONS

INCREASE IN WORKING
CAPITAL

2
27

2.3.8. PROFIT BEFORE TAX(PBT)

A profitability measure that looks at a company's profits before the company has to
pay corporate income tax. This measure deducts all expenses from revenue including
interest expenses and operating expenses, but it leaves out the payment of tax.
Also referred to as "earnings before tax

2.3.9. PROFIT AFTER TAX(PAT)

Net operating profit after tax (NOPAT) is a measure of profit that excludes the costs and tax
benefitsof debt financing. Put another way, NOPAT is earnings before interest and taxes (EBIT)
adjusted for the impact of taxes.
Let take the formula for PAT
Profitabilit
y statement
Particulars
sales
less
Variable
cost
contributio
n
less
Fixed cost
PBIT
less
Interest
PBT
less
TAX(%)
PAT

Ammount(Rs
)
Xxx
(xxx)
Xxx
(xxx)
Xxx
(xxx)
Xxx
(xxx)
Xxx

2.3.10 performance of share value

Ashok Leyland Ltd
NSE: ASHOKLEY - 09-Jun 12:24 PM IST

28

66.350.15 (0.23%)

CHAPTER-III
3.1 HR PLANING
Need basic information about Human Resources' strategic planning and management as a
function or department within an organization? What are the appropriate goals, organization,
and initiatives for a Human Resources department to pursue? Whether your HR function is a
department of one or many, basic Human Resources strategic planning that includes internal
organizational needs assessment and external benchmark comparisons is needed. This is how
you need to approach and accomplish fundamental Human Resources' strategic planning.
As you interact with your organization, it's important to be able to share the strategic goals of
your Human Resources department. Otherwise, how will your organization leaders understand
what value your department adds? They're definitely asking and need to see the value that you
bring to the total organization. Developing a department business plan, with input from your
organization, allows you to understand and communicate the HR functions contributions. It
allows you to shape the expectations that your organization holds for what you will contribute
and when. This transparency adds value to the goals and role of the HR dept.
Departments are the entity organizations form to organize people, reporting relationships, and
work. Departments are organized in a way that best supports the:

delivery of the department's services,

attainment of the department's goals,

29

accomplishment of the unit's purpose mission within the organization, and

achievementsof the organization's goals.

Departments are usually organized by functions such as human resources, marketing,

administration, and sales. But, a department can be organized in any way that makes sense for

the custom.
3.2 RECRUITMENT AND SELECTION
A.RECRUITMENT
Finding the right people to hire is much easier when you first analyze the job you want to fill.
Ask yourself what kinds of people do the best in this job? If youre lucky enough to have a top
performer already in the job, learn from them.
Observe their behavior, ask them questions and talk with their peers to get a clear
understanding what characteristics make them effective in their job. This kind of job analyse
drives your selection standardsdo a good job at this first step and the rest of the hiring
process will be faster, easier and yield a better match.
Prime Research was formed in 1996 and was the first completely independent consumer
research recruitment company to specialize in qualitative recruitment. Prime is now the largest
independent qualitative recruitment company in New Zealand
The right person will make contributions to your companys productivity and profitability that
far e3.2xceed salary cost. But the wrong person can cost you plenty.
Dont count on your conversational skills to choose between candidates. At a basic level, your
standardized hiring process should include criteria-based screening of an adequate number of
candidates, a background check, standardized assessments and structured interviews
Many assessment and interview tools are available, all of which will provide much more
reliable results than the traditional interview. The more important the position, the more
rigorous the hiring process should be.
30

B.SELECTION
Do you select new employees based largely on an attractive resume and the candidates
performance at the resultant interview? If so, you are missing the opportunity to use additional
recruiting and screening methods that will ensure a superior hire.
A good looking resume is often professionally prepared, or, at least professionally reviewed. A
positive interview leaves all participants excited about the potential new employee.
Prime Research was formed in 1996 and was the first completely independent consumer
research recruitment company to specialise in qualitative recruitment. Prime is now the largest
independent qualitative recruitment company in New Zealand.
To err in hiring is human and very expensive. Many standard hiring procedures are
actually common mistakes, so to choose more competent candidates, prepare to revise your
hiring methods. Learn the nine hiring errors managers often make, then eliminate them from
your hiring practices to help you choose only the cream of the crop.
Mistake 1: Relying only on interviews to evaluate a candidate
In a University of Michigan study titled The Validity and Utility of Alternative Predictors of
Job Performance John and Rhonda Hunter analysed how well job interviews accurately
predict success on the job. The surprising finding: The typical interview increases your chances
of choosing the best candidate by less than 2 percent. In other words, flipping a coin to choose
between two candidates would be only 2 percent less reliable than basing your decision on an
interview.
Experts offer three reasons why interviews, while the most common selection tool, are such
poor predictors of sales success:
Most managers dont structure an interview beforehand and determine the ideal answers to
questions (develop a scoring weight).
Candidates do much more interviewing than most managers and are more skilful at presenting
themselves than many managers are at seeing through their front.
An interview helps managers evaluate personal chemistry and determine how well candidates
might work together with others.
Mistake 2: Using successful people as models
Duplicating success may seem like a good idea, but the reason people succeed are not clear
from just measuring the characteristics of top performers. More important are the differences
between top performers and low achievers. For example, a comprehensive study of more than
1,000 sales superstars from 70 companies showed that the top three characteristics shared by
high achievers were (1) the belief that salesmanship required strong objection-answering skills,
(2) good grooming habits, and (3) conservative dress especially black shoes. However, a
study of the weakest performers at these companies revealed that the same three characteristics
were their most common traits as well. The lesson: You must validate critical success skills
by comparing large enough samples of top performers and weak performers to find the factors
that consistently distinguish the winners from the also rans. Otherwise, you may select wellspoken, energetic candidates who fail quickly but with style.
31

Mistake 3: Too many criteria

Onlythrough a method called validation can you make more effective hiring decisions. The
U.S. government originally used validation research to prove that employments selection
practices predicted job success and werent discriminatory. Similar to a process insurance
companies use to predict accident risk or the likelihood of health problems, validation can
dramatically improve your odds of hiring the right people. Not only does it identify critical job
success factors, it weights each factors importance. Consider these two surprising and
important findings from validation research:
The most critical factor for predicting success in any job is usually as important or more
important than all other factors combined.
The most accurate prediction of success on the job is based on no more than six to eight
factors. Add any more, and you risk diluting your criteria, watering down the prediction of
success, and killing selection accuracy.
To hire winners, decide on six to eight factors that separate them from losers. Ignore factors
that are not validated, or you may end up hiring nice guys who finish last.
Mistake 4: Evaluating personality instead of job skills
Certain personality traits high energy, honesty, a solid work ethic seem to practically
guarantee success, yet they dont. Many consultants and distributors of pre-employment tests
maintain that certain personality factors help ensure management or sales success and offer
psychological theories to support that belief. However, solid statistical research from many
objective sources shows little correlation between any personality factor and any specific job.
Producers of competent and reputable personality type tests (like the Myers-Briggs) admit
their tests are useful for self-awareness and training but not for hiring. Only tests of job skills or
knowledge are proven to predict job success consistently. You might enjoy knowing your sales
candidates have self-confidence and energy, but knowing whether they can answer objections
and close sales is definitely more important.
Mistake 5: Using yourself as an example
Your own sales success might lead you to believe you can spot candidates with potential, but
dont count on it. A famous lawyer once said, The attorney who would represent himself has a
fool for a client a saying that also applies to managers hiring new salespeople. Many
managers who reached their position by virtue of their sales success, believe they can
instinctively recognise a good candidate, when they are unconsciously just using themselves as
a template. When you use yourself as a model, your ego often gets in the way, and that bias
can skew your objectivity in judging others a fatal hiring flaw.
Mistake 6: Failure to use statistically validated testing to predict job skills most critical to
success
In some companies, committees use deductive reasoning or brainstorming to identify criteria
for candidate selection. This technique may encourage team building and a spirit of cooperation
and participation, and may even focus the organisation on the importance of hiring the right
people. Unfortunately, two main flaws make it less effective at pinpointing why candidates fail
or succeed. First, the committees tend to focus on theories instead of facts theories that
32

suggest, for example, that high self-confidence guarantees a better employee. Second, they
focus on attitude and experience instead of ability and skills. Skills are a much more significant
and consistent indicator of success potential. Incentives can motivate a skilled person, but
motivation and good intentions wont improve an unskilled candidate.
To explain why managers often rely on reasoning or common sense to assess candidates
attitude and personality, experts suggest that doing so is easier than measuring their skills.
Gauging skill levels often requires carefully developed tests or on-the-job trials many managers
are unwilling or unable to conduct.
Mistake 7: Not researching why people have failed in a job
Research consistently shows that people fail in a job due to factors different from the criteria
used to select them. Though most managers can list the most common reasons people have
failed, they seldom make the information part of the process of choosing selection criteria for
new candidates. Managers who identify these failure points and build them into the selection
process can reduce hiring mistakes by as much as 25 percent. In most competitive sales
situation, for example, the average prospect buys from a new salesperson only after six
contacts. The average unsuccessful salesperson gives up after three contacts. While some of
that salespersons techniques may be adequate, the tendency to give up after three rejections
was never uncovered or evaluated.
Mistake 8: Relying on general good guy criteria
Everyone may want to hire good people, but being a good person does not ensure success on
the job. Sales success skills are now so specialised that you need specialised hiring criteria as
well. A coach filling a spot on a cricket team, for example, bases qualifications on the teams
skill. At the prep-school level, the selection criteria for a player dexterity, confidence with the
ball, desire to play are broad. As we reach the high school or university level, the criteria are
more specialised, focusing on the four general skills required for success: bowling, batting,
catching and fielding. At the international level, different fielding positions require such highly
specialised skills (e.g. Fielding at slip or short leg,) that no coach would rely on four general
cricketing skills to choose a test player. In sales, too, reserve broad, good guy criteria for
entry level hiring. When you need a more experienced salesperson, use more specialised
criteria.
Mistake 9: Bypassing the reference check
Various recruiting and placement agencies report a fairly high percentage of false information
presented in resumes and job applications. As many as 15 to 20 percent of job applicants try to
hide some dark chapter in their lives. For some positions, one out of three resumes submitted
may contain false information. To find out whos pulling the wool over your eyes, make the
extra effort to verify the information your applicants provide. An individual who twists the
facts to get a job will probably bend the rules on the job. Checking references may seem
tedious, but it beats the frustration and cost of hiring someone you need to fire after two
months.
With the discovery of hiring mistakes comes the opportunity to make positive change. Even if
you are content with most of the people you have hired so far, remember that ongoing
improvement is key to success. When you are willing to revamp your standard hiring
33

procedures, you open the door to a stronger sales team that can lead your company in a new
and more profitable direct
3.3 SKILLS DEVELOPMENT
1.Why It's Important: For many children, until they begin kindergarten the only authority
figures to whom they are truly accountable are Mom and Dad (or other caregivers). That
changes once school starts. All of sudden there are many rules, many people enforcing those
rules and significant consequences for breaking the rules. An understanding of right and wrong
helps students understand that the rules help the classroom community to run smoothly.
2. Skill:Can communicate needs and feelings verbally in a socially appropriate manner and
understands/recognizes that other people have feelings.
Why It's Important: Though it may seem as though kindergarten is quickly becoming more
and more academic, one of its most important functions is to teach children how to socially
interact with others.
Children who continue to express anger and frustration by hitting, yelling and throwing objects
will not only have a difficult time making their needs understood, but may socially isolate
themselves as well.
Knowing that there are more productive ways to express themselves and that what they say and
do affects other people plays a key role in making friends and being a part of the learning
community.
3. Skill: Can play independently or in a small group without needing to be constantly
supervised.
Why It's Important: With twenty-some children in a classroom, all of whom learn in
different ways and at different rates, it's not possible for a kindergarten teacher to supervise
every individual child all at the same time.
As kindergarten progresses, group and independent work time is increased and children need to
be able to work on their own without constant redirection. Not only does this prepare a child
for future schooling, but it also helps to build a sense of accomplishment and an understanding
that he is an individual capable of doing things all by himself.
4. Skill:Is beginning to take turns, share, converse and play with other children without
needing to be reminded and uses polite language.
Why It's Important: Just as a kindergarten teacher can't supervise all students individually,
she rarely can afford to provide one of everything for each student. Your child will be learning
to share materials, manipulatives, toys and attention this year. He'll need to be able to do so
gracefully, without being bossy or rude.
Just remember though, mastering this skill is an ongoing process and five-year-olds are just
learning it. It may take some time before he's consistently able to share and be polite.
5. Skill: Likes to make decisions for himself, explores new things and take some (safe) risks.
Why It's Important: One of the most common problems that arises as the new school year
begins is separation anxiety, or difficulty stepping into a new environment while leaving
caregivers behind. This anxiety is less prominent in children who enjoy a challenge and are
34

willing to take a few risks. Additionally, children who are curious about exploring new things
are ripe learners, eager to see what each new activity and lesson holds
3.4 CARRIER GROWTH

The manager owning or having responsibility for carrying out the plan. The career
development plan belongs to the employee. You can facilitate its pursuit, explore
options with the employees, provide opportunities for the employee when possible,
encourage the employee to have goals for growth and expansion of his or her career and
skills, but you cannot do it for them. They must own their plan.

Overcommitting your time or resources. As much as you are devoted to helping the
employees who report to you grow, you have a limited amount of time available to help,
in addition to the rest of your job. For example, unless you are already aware of a great
class or resource, researching options for the employee to develop skills is not your job.
You can steer the employee in certain directions, but you cannot do the work for him.
Do not take on the responsibility of finding a great class in listening for a poor
communicator. If it turns out to be a poor choice, you are responsible in the employees
eyes and if it doesnt produce the desired results, you are also responsible. Both the
Human Resources department and you can help the employee explore his or her
options, but the employee is responsible.

If the employee finds what he thinks is a great development opportunity, he is

responsible for selling the company on the idea not you.

Steps in Discussing Career Development

You can create career development plans with you employees by taking these simple steps.

Tell the employee that you want to meet with him or her to discuss career development
plans and hopes. Ask the employee to think in advance about his or her options for
growth and development and how they see their career unfolding in your company.
Encourage the employee to think about how theyd really like to see their careers
progress.

Suggest

that

the

employee

think

about

and

come

prepared

to

discuss:

--What professional job or career growth goals does the employee hope to achieve
within three years?

What can the employee do to ensure that he or she is making progress on this career
path?
--What resources and support can the organization provide so that the employee can
accomplish
these
professional
job
or
career
growth
goals?
--What professional and personal goals will help the employee improve or develop
great
performance
in
their
current
job?
--What additional support can this organization provide so that the employee is able to
accomplish these goals?
35

Hold the meeting and direct the conversation to these questions. Be flexible because the
employee may have other avenues that he or she wants to discuss. As a manager, your
job is to know all of the options available to the employee such as job shadowing,
mentoring, and coaching on particular skills. Many employees dont consider
development in terms beyond taking a class, and this is a limited view of development
and the options that are available in organizations that have vision.

Fill out the appropriate form and turn it into Human Resources for review and
additional input.

For career development planning to work, you need to expand your view of development and
that of your employees. A training class is not the only way to develop employees. In fact,
development that is provided in-house is often more effective. Here is the rest of the
information you need to help your staff members create a successful career development plan.
3.5 Well fare measures
3.5.1 Social
Piloted Individual Productivity Framework (IPr), a novel initiative to drive performance
Launched First Take, a communication campaign to sustain direct connect with employees
Partnered with TV18 to present Innovating for a Better Tomorrow series on CNN-IBN and
CNBC Filed 79 patents during fiscal year 2014 Received silver recognition at the Express IT
Awards for Health Assessment and Lifestyle Enrichment (HALE) Covered 372 colleges under
Campus Connect, our industry-academia partnership program Launched Responsible Supply
Chain Policy, and brought key suppliers under the Infosys Supplier Code of Conduct
Enterprises have an extended set of stakeholders. These stakeholders have the potential to
influence the future of business. These stakeholders also have ethical, social, and
environmental expectations that extend beyond financial goals and legal requirements. We
believe that these social covenants are fundamental to nurturing stakeholder trust and ensuring
business continuity. One of the cornerstones of the Infosys social contract philosophy is to
work towards the upliftment of society, provide opportunities to our employees, and to stay
relevant to their needs. Through numerous initiatives, we are bringing innovation to the table,
thereby creating a smart workplace where our employees can work as one to achieve a common
dream.

We see Infoscions world over as advocates of a better tomorrow; a tomorrow that is

peopled by those who care; a tomorrow where everybody prospers; a tomorrow that is a gift to
the next generation. Today, in this dynamic and changing business environment, our business
36

leaders increasingly recognize the crucial role employees play in driving and delivering a
sustainable business strategy.

While we are integrating sustainability into corporate culture and fostering 'sustainable
development capabilities,' in practice we are being able to engage, inform, train, equip, direct,
motivate and incentivize employees, in a way that is aligned with sustainability principles and
creating business value. In other terms, it is a circle we created where one gives to another to
'gain' self-satisfaction, 'achieve' self-development, or 'acquire' self-realization from another.
This circular nature is also the key characteristic of synergy in the triple bottom line of 'profit'
maximization, 'people' development, and 'planet' conservation reflected in today's business
sustainability literature such as circular economy, cradle to cradle, and social investments.
To mainstream and integrate sustainability principles in practice, Infosys believes that it
is important to go beyond celebrating individual heroes to creating a culture of heroism through
responsible citizenship.

I,Citizen of Earth (iCOE) is the Infosys program to build responsible citizenship among
Infoscions around the world.Through the iCOE forum we have put in place some concrete
actions to make this effort count by:

Envisioning a common purpose for the larger ecosystem Enabling voluntary efforts to
integrate with the organization vision and sustainability goals

Engaging in a manner where collaboration reinforces achievement with a common

purpose
Empowering stakeholder engagement with Infoscions as change agents and

ambassadors for a better tomorrow

Embedding a culture of global citizenship and innovation for sustainable development
for a better tomorrow

This initiative derives its energy from senior leadership who are passionate volunteers and
contributors themselves in the larger social space. The Infosys organization with its large CSR
initiatives in education including Campus Connect, Project Genesis, and SPARK provides a
great volunteering platform for Infoscions. That apart, every development center campus has
37

local CSR chapters, which provide a platform to employees to engage with social and
environmental initiatives locally.
iCOE efforts span five broad areas including:
Healthcare
Education
Art and culture
Rural upliftment and rehabilitation
Destitute care

In the last fiscal year, Infoscions have been able to deliver and create a positive impact
along the above focus areas. Apart from these, Infoscions also actively participate in the larger
organizational goals and have proved to be instrumental in achieving them. To know more
about our employee volunteering activities, please refer to the employee volunteer groups
section in our We believe responsible citizenship behaviors can be developed through social
leadership competencies. We set up Infosys Framework for Learning Using External
Community Engagement (InFLUENCE), a framework to recognize employee volunteering
efforts and to develop social empathy. Through InFLUENCE, employees can get additional
learning credit under our Competency Development Program 3.0 for their volunteering efforts.

At an organizational level, the Infosys Foundation, with its focus on healthcare,

education, culture, destitute care and rural development, continues to impact the lives of the
poorest of the poor. The Infosys Prize awarded by the Infosys Science Foundation aims to
enhance the prestige of scientific research in India and inspire young Indians to choose a
vocation in research. Our flagship industry-academia partnership program, Campus Connect,
has benefitted over 200,000 students from a large number of engineering colleges. Education
continues to be a focus area of our CSR investments. We have also formed a CSR committee,
which will formulate and monitor the CSR policy of the company. Infosys uses the ten
principles of the UN Global Compact covering four major dimensions human rights, labor,
environment, and anti-corruption as a good foundation for building and improving sustainable
supply chain practices. Our Sustainable Supply Chain Policy is intended to work with various
38

other policies in the organization and follows our philosophy of sustainability. This year, a
supplier code of conduct was administered to all our key suppliers. We also revised our
empanelment guidelines to screen our suppliers on social and environmental parameters, in
addition to the existing economic criteria.

3.5.2 Health & Safety

Safety is every employees responsibility and concern. Forums and help lines are
provided to our employees to report security incidents and workplace hazards. They are
actively involved in suggesting and implementing changes to the HSE policy.

Health Assessment and Lifestyle Enrichment (HALE)

The HALE program is a comprehensive and holistic health initiative, customized to an
IT environment that innovates constantly in order to cater to the needs of the employees.
Through this program, we launch employee engagement campaigns such as interactive portals
and quizzes. The comprehensive health and well-being plan includes preventive healthcare
options for employees and families, health checks, talks, consultations, fitness-related
interventions, and health awareness campaigns. As part of our Safety Week and Health Week,
we facilitated master health check-ups and stress relief workshops at all our campuses. We have
also established a help line and an online tool, the HALE Tool to provide timely and expert
support to our employees and their families on issues related to relationships, personal crises,
stress and depression.
Risk assessment, disaster recovery & business continuity
The Phoenix program encapsulates our Business Continuity Plan that addresses three
key phases emergency response, business continuity, and disaster recovery. Periodic mock
drills and exercises are carried out under this program to evaluate our preparedness in
managing potential disasters. Careful observations are made and analyzed during and after
these mock drills. New training material is generated based on past experience.
3.6 Industrial relations
The Ashok Leyland management must be congratulated for agreeing to pay full wages to
workers for 16 non-working days in November and December (in the wake of drop in the
demand for vehicles) in the expectation of getting compensation of labour/work (for half the
paid holidays) from them (workers) when the demand picks up and necessitates higher
production (Business Line, November 9). There may be ups and downs in business, but it is the
39

mutual trust (between management and workers/staff) that can guarantee good industrial
relations and prosperity.
Having said that, companies that are financially sound, transparent in all their business dealings
and take labourers into confidence in certain important managerial decisions alone can agree to
a type of understanding that Ashok Leyland has entered into with its employees union.

CHAPTER-IV
MARKETING
4.1 RANGE OF PRODUCTS
The clouds of recession are clearing for commercial vehicle (CV) maker Ashok Leyland Ltd.
The company has been in the news recently for positive reasons after several quarters of weak
sales, production cuts and cash flow constraints.
The companys product mix has given it the edge. A few days ago, it won orders worth
Rs.1,500crore to supply buses to state transport undertakings, besides getting orders from Sri
Lanka.
More importantly, Ashok Leylands August data enthused the Street, too, as sales of trucks rose
by 18% from the year-ago period and that of light commercial vehicles (LCVs) by 14%.
This time around, the companys sales growth, although on a smaller base, scored over Tata
Motors Ltd. Analysts say that much of the latters loss in market share has been gained by the
former. Faster recovery in tractor-trailer segment sales, which has almost doubled from a year
ago, boosted Ashok Leylands sales as this segment comprises nearly 15% of its truck volumes.
A report by PrabhudasLilladher Pvt. Ltd explains: A recovery in infrastructure segment has
necessitated transportation at the project sites. Also, fleet-owners are adding multi-axle trailers
as large clients are insisting on younger age fleet to award long-term transport contracts.
Ashok Leyland has a strong presence in both tippers used in infrastructure and mining and in
trailers.
The companys stock has returned 87% since April, surpassing market leader Tata Motors
return of around 28%. Besides, much of Tata Motors stock price increase can be attributed to
the stellar performance of its overseas subsidiary, Jaguar Land Rover Plc.
Meanwhile, barring a few blips, truck freight rates are recovering, too, with an 8-10% recovery
posted through this fiscal. Although this is partly due to diesel price hikes, the Indian
Foundation for Transport Research and Training says that improved movement of goods and
dismantling of ageing fleet of trucks augurs well for manufacturers.
Even at the industry level, the sales contraction in medium and heavy duty vehicles between
April and August, compared with a year ago, was thankfully down to a single digit at 5.4%.
Dealer channels also indicate higher footfalls for truck purchases and lower defaults on old CV
loansboth positive indicators of a demand revival.
Ashok Leyland now needs to address the high debt burden and related interest cost, along with
its working capital burden.
40

BUSES
Our buses help nearly 70 million people get to their destinations every day. Know more about
them here.

TRUCKS
We are confident you will find the truck that best meets your expectations.Find more here.

LIGHT VEHICLES
DOST, our class-leading LCV (light commercial vehicle) with a rated payload of 1.25 tons.
Know details of the product here.

DEFENCE
We are pioneers in the design, development and manufacture of specialized Defence vehicles
for armed forces.

41

POWER SOLUTIONS
Leypower is our range of engines that power generator sets, marine appli
4.2 PRICING
Definition: Price is the value that is put to a product or service and is the result of a
complex set of calculations, research and understanding and risk taking ability.
Relationship-based pricing
The banking scenario across geographies has witnessed a marked evolution in the last
two decades. With a hostile economic environmentin the backdrop, the industry has seen an
unprecedented growth in competition, from both local and international players, and an
increasingly demanding customer base. The constant pursuit to improve the bottom-line has
seen banks cutting costs by every possible means on the one hand, and focusing on innovation,
product differentiation and continuously evolving market strategies on the other.
This goes to explain the increasing popularity of relationship-based pricing - as a
service differentiator. Relationship-based pricing, in its simplest forms, can be understood as a
personalised pricing paradigm which has at its core the time-tested principle of each customer
is unique thus, basing the price on the relationship shared with this unique customer. Suntec,
which is a pioneer in the field of relationship-based pricing, defines it as, relationship-based
pricing is a customer-centric framework that helps financial institutions to treat each customer
uniquely, based on the overall relationship value, with innovative pricing strategies achieved by
streamlining and automating the pricing and billing functions across enterprise. Relationshipbased pricing ensures that customers benefits and rewards are provided based on total
customer value.
Banks have historically based the incentives offered to customers on volumes, rather
than the total profitability brought by the customer to the table. Transactions have been viewed
in silos, without a focus on the summary of the overall transactions with the particular
customer. The rates for lending and deposits have been traditionally determined majorly by the
competitive forces at play in the market, without a consideration on how an individual
customer could prove to be more profitable to the bank in the future. Thus in a way, when it
comes to pricing, the outlook of the banks has been more short-term than long.
4.2.1 STP (Segmentation, Targeting, Positioning)
42

Segmentation:Market segmentation is a marketing strategy which involves dividing a broad

target market into subsets of consumers, businesses, or countries who have, or are perceived to
have, common needs, interests, and priorities, and then designing and implementing strategies
to target them.
Targeting:A target market is a group of customers towards which a business has decided to aim
its marketing efforts and ultimately its merchandise. A well-defined target market is the first
element to a marketing strategy.
Positioning is a marketing concept that outlines what a business should do to market its product
or service to its customers. In positioning, the marketing department creates an image for the
product based on its intended audience. This is created through the use of promotion, price,
place and product.
Digital Marketing services
Infosys Digital Marketing services is a bundle of configurable services that equip marketers
and agencies to streamline content development and unify digital data collection and
assimilation. Further, Digital Marketing services enable provision of tools and core processes
that facilitate development of content and new initiatives across multiple digital channels.
Thus, these services help enterprises gain a lasting competitive advantage with creation of
smart and flexible digital marketing ecosystems.

Digital Marketing services consists of three configurable tiers:

Specialized Marketing services
Production services
Digital Marketing platform
4.2.2 pricing strategies
4.3 PLACES (DISTRIBUTION)

43

Our all-India sales, service and parts network promises easy access to customers anywhere in
the country.
We have

4 Zonal offices, 10 Regional offices and 26 Area Offices

More than 450 touch points for offering sales, service and parts support

Around 300 Highway mechanic tie-ups for GQ corridor support

Nearly 100 dealer outlets for industrial and marine engines

Over 5000 plus outlets for Leyparts, genuine spares for our products serviced by five
warehouses

Together they form the vital link between us and our customers, however distant they may be
located offering quality service to derive the best of our products, day after day.

44

45

CHAPTER-V
PRODUCTION AND OPERATIONS
5.1 TECHNOLOGY
Ashok Leyland has set up a technical centre in the UK to strengthen R&D and address new
markets in South America and Africa.
Established at a technology park in Warwickshire, the centre will help Ashok Leyland develop
capabilities to build products that are on par with stringent European standards and draw on the
regions wealth of technical skills, said Sam Burman, Chief Technology Officer, in e-mailed
responses to Business Line.
The tech centre will serve as a hub for future products with enhanced safety features for which
there isnt sufficient know-how in India, whereas European manufacturers have been refining
these features for a long time, said Burman. We envisage a growing demand for products with
enhanced safety features and high levels of customisation. Vehicle electronics will also start to
play a more crucial role in overall product development.
The company will hire 30 people at the tech centre. It is looking for professionals specialising
in safety features such as airbags and roll-over protection cabs, and homologation (certifying a
vehicle is road-worthy after it meets mandatory specifications) of trucks and buses for new
markets in South America such as Brazil, Peru, Chile, Bolivia and in Africa.
The commercial vehicle maker currently exports to over 30 countries in SAARC markets of Sri
Lanka and Bangladesh, West Asia, Africa and the CIS. Its revenue from international
operations (Rs 1,600 crore) has doubled over the last two years.
The UK Tech Centre is a part of Ashok Leylands overall R&D initiatives, said Burman.
The companys R&D spend in 2011-12 was 2.8 per cent of the turnover.
The global benchmark is 3-4 per cent. It has a technical research centre in Chennai, employing
1,200 people and catering to the domestic market.

5.2 INSTALLED CAPACITY

flagshipAshok Leyland is expecting full capacity utilisation of its facility at Hosur for Dost, the
light commercial vehicle (LCV) under the joint venture with Nissan, by next fiscal year.
The LCV has reached sales of around 2,800 units a month. Around 20,479 units of Dost had
been marketed across eight states in the country so far. The sales is growing according to the
demand and the production capacity of 55,000 units a year, which the company set up at Hosur
facility, would be completely utilised by the next fiscal year.
V Sumantran, vice chairman, Ashok Leyland and chairman, Nissan Ashok Leyland Powertrain
Ltd, said the production might be limited by the capacity of the production facility, though
the company is working on ways to avoid any such situation.

46

While the company, along with Nissan, is planning to set up a greenfield facility to
manufacture Dost, at Pillaipakkam in Tamil Nadu, it expects capacity constrain to continue till
the new facility comes up. It has received around 280 acres at Pillaipakkam from the
government, and it would take 2-2.5 years to bring up the greenfield facility.
The company expects to cover 11 states and set up around 89 outlets by the end of March 2013.
It would expand to Madhya Pradesh, the National Capital Region and Uttar Pradesh within the
time, said Nitin Seth, executive director LCV, Ashok Leyland.
The all-India market share for Dost is around 21 per cent. The company also expects its next
product from the JV with Nissan to be launched this month.
To commemorate the first anniversary Dost , the company has rolled out its limited version
edition.
5.3 OPERATIONS
For over six decades, Ashok Leyland has been a technology leader in India's commercial
vehicle industry, moulding the country's commercial vehicle profile by introducing
technologies and product ideas that have gone on to become industry norms.
From 18 seater to 82 seater double-decker buses, from 2.5 tonne to 49 tonne in trucks, from
numerous special application vehicles to diesel engines for industrial, marine and genset
applications,
Ashok
Leyland
offers
a
wide
range
of
products.
Ashok Leyland buses carry over 70 million passengers a day. 700,000 Ashok Leyland vehicles
keep the wheels of the economy turning.
Ashok Leyland vehicles are exported to over 30 countries worldwide. Recently, the Company
has entered hitherto untapped markets - Honduras, for specially designed buses, Chile, Viet
Nam and Angola. Significant presence is still maintained in Sri Lanka, Bangladesh, Mauritius
and
the
Middle
East.
AVIA Ashok Leyland Motors in Prague (Czech Republic) is the Company's beach head in
Europe which produces and markets the famous D-Line series of trucks for the European
markets including Hungary, UK, Ireland, Spain and Slovakia in addition to the Czech Republic.
The 75.1% controlling stake in Optareplc., a leading bus maker in the UK, gives impetus to the
Company's global bus strategy. Optare, known for its innovative, weight-optimized 'Low
Carbon' range of low-floor midi and city buses, are pioneers of low-floor double-deckers in the
UK. This strategic partnership now enables Ashok Leyland to accelerate technology adoption,
develop
new
products
and
address
new
markets.
Ashok Leyland has increased its global manufacturing footprint with the setting up of an
integrated chassis and bus assembly plant in Ras-Al-Khaimah in the UAE with the capacity to
produce 2000 buses annually. Strategically located, this plant will feed the growing demands of
the
GCC
and
African
markets.
In the realm of design and engineering services, under the brand name 'Defiance' Ashok
Leyland offers end-to-end solutions in the space of design, development, prototyping, testing
and validation. In the US, the Company's Defiance Testing & Engineering provides high-end
testing capabilities and Defiance Tech offers integrated Engineering Manufacturing Enterprise
47

(EME)

solutions.

Albonair GmbH: was established to be a complete solution provider for reducing automotive
emissions and has, in the short period since inception, developed the complete solution for
Selective Catalytic Reduction (SCR) and Urea Dosing System (UDS) conforming to Euro 4, 5
and 6 emission standards for commercial as well as passenger vehicles. Albonair has also
succeeded in securing orders from Global OEMs and is gearing to develop and deliver the
same.
Growth is sought through diversification, capitalizing opportunities afforded by adjacencies.
A significant development has been Ashok Leyland's entry into the high-growth Light
Commercial Vehicle segment in partnership with Nissan Motor Company making Ashok
Leyland a full range commercial vehicle player. The partnership has three separate companies
for vehicle manufacturing, powertrain manufacturing and technology development. DOST, the
first product from this partnership has hit the Indian market in October, 2011.
The 50/50 joint venture with John Deere marks the company's foray into the high-potential
construction equipment business. The first product from this combine the 435 Backhoe
Loader has just hit the Indian market. Soon to follow will be a full range of 4-wheel loaders
and excavators which will start rolling out from Leyland Deeres state-of-the-art manufacturing
facility
at
Goomdipoondi,
near
Chennai.
Ashok Leyland has also entered into a 50:50 Joint Venture with the Alteams Group, Finland,
for the manufacture of High Pressure Die Casting (HPDC) extruded aluminum products predominantly for telecommunication and automotive sectors. Another 50:50 Joint Venture, forged
with Continental AG (that also includes Siemens VDO) is for the design, development and
adaptation of Infotronic products and services for the transportation sector.
5.4 RESEARCH AND DEVELOPMET
To offer you world-class technology that is relevant, appropriate and affordable has been the
moving force behind our R&D, that has always been an area of prime focus for us. In an
atmosphere that nurtures creativity and innovation, the 1000+ Product Development team seeks
to harness and adopt technologies that provide value to you as well as address safety and
environmental issues.
If our vehicles have become synonymous with the qualities of reliability and ruggedness, it is
thanks largely to the globally benchmarked testing facilities that we have set up. Apart from a
modern CAD set-up and a Computer Testing Laboratory, is a comprehensive array of test
tracks for vigorous testing of prototypes in the most demanding of conditions. The 6-poster,
one of its kind in the country, is a torture track simulator for multi-axle vehicles that
significantly reduces testing time.

48

CHAPTER -VI
INDUSTRY PROFILE
Manufacturing is critically important to the UK's economic vitality and sustainability.
According to the Department of Trade and Industry (DTI), manufacturing accounts for
about 15 per cent of gross domestic product (GDP) and employs just under 4 million people.
This consitutes around 14% of everyone working in UK, although this sector is nowhere near
the employment figures of the service industries where over 20 million are employed.
According to the Confederation of British Industry (CBI), over 2.4 million jobs in service
industries depend on manufacturing. Manufacturing revolves around the production of goods to
meet
design
specifications,
quality
controls
and
customer
requirements.
Within manufacturing, the top four industries in the UK measured by production value are food
and drink, chemicals, motor vehicles and machinery. Manufacturing stability is heavily
dependent on the economy. Decades of economic instability, coupled with under investment,
high interest rates and over-regulation have left manufacturing reeling. One by one
manufacturing industries have contracted or disappeared. Coal production has all but ceased
and the steel industry is currently in crisis, with swinging job cuts being implemented.
Economic factors have a direct impact on the success or otherwise of the sector. Recently, the
strong pound has made British exports more expensive than other international goods.
Economic wisdom says that joining the single currency could help the sector enormously.
Cheaper labour and operating costs abroad, the cost of dealing with new environmental
legislation and the global collapse of the telecom and technology sector in 2001 have also had
an
effect.
External factors also take their toll. For example, the war against Iraq in 2003 caused a
slowdown, which was shared by the manufacturing industry across the world. Manufacturing
firms were squeezed by a combination of falling demand and higher input prices caused by the
spiralling cost of oil. Companies were running down stocks in an attempt to protect profit
margins. The general uncertainty affecting the global economic outlook was felt by all.
Some industries, such as shipbuilding, have declined whereas others have grown, for example
high technology industries such as pharmaceuticals and electronics. Times are tough at the
moment however the view from the Government is that modern manufacturing is central to our
future as a leading knowledge driven economy, playing an important role both in the economy
and in the everyday lives of people. The industry still requires graduate from different
disciplines and it is crucial that we compete in knowledge, skills and creativity, even if we can't
match
the
lower
production
costs
of
other
countries.
More optimistically there are signs of improvement across the economy. The Government is
confident that with new technologies transforming every product, production process and
service, manufacturing can survive in the long term. In particular, they point to the strength
Britain has in innovation, and the leading role Britain takes in pharmaceuticals and aerospace.
There are also government initiatives in place for work on the railways and for affordable
housing - these projects will need materials supplied by manufacturers.
Traditionally manufacturing covers a wide variety of career areas including engineering,
49

design, transport, logistics, distribution, research and development, scientific work,

administration and management. These jobs are available throughout the UK but mainly in
urban centres and industrial areas.
Career path
Graduate employers range from big multinational companies to specialist small and mediumsized businesses. The larger manufacturing or processing plants are located near ports, close to
natural resources, or in major industrial centres close to potential customers. With the
multinationals, there may be opportunities to work abroad. There are many posts open to
graduates and in some roles there are skills shortages. Good rates of pay and incentives are
offered
for
university graduates
of
a
specific
calibre.
The UK has a strong position in hi-tech, hi-value manufacturing. If we are to remain
competitive, more technical expertise is needed. This is where graduate opportunities will be
found - focusing on improving processes and efficiency. Efficiency is the key word in
manufacturing.
Production Planners are responsible for designing and implementing production schedules,
which basically means specifying what the product is to be made out of, how long it will take
to
make
and
how
much
it
will
cost.
On the managment side, Purchasing Managers (or buyers) on an industrial level will obtain all
the necessary "ingredients" to make the product, combining quality and cost effectiveness
where possible. Production Managers are responsible for coordinating schedules at ground
level and making sure supplies and manpower are running to full capacity. Quality Assurance
Managers monitor and test all the stages along the way to the finished products, to make sure
that the products meet with design specifications, that they are properly made, packed, labelled
and
transported.
Production Engineers design, create and maintain the process equipment and facilities. They
keep the production facility running smoothly. Every time a new product is put into
manufacture, engineers will be called upon to either adapt existing machinery or write a new
machine specification. They take into account the amount of product it needs to churn out, how
often it will be needed and how it can fit in with existing machinery. They also decide how it
will be operated, cleaned and maintained. As with other positions in this area, a technical
background is important as well as the ability to work with other people.
Naturally, the manufacturing industry offers careers in a number of support roles. Jobs are
available for graduates in finance, marketing and IT, to name but a few. Also expect that no two
days will ever be the same, especially in a managerial position where there will be a thousand
and one things to co-ordinate and plan. Many companies make more than one product, so the
opportunities for moving into different career paths may be quite good, especially if you are
prepared
to
work
unsocial
hours.
There are many opportunities out there for focused graduates, but be prepared to search for
them. Consider sectors you wouldn't normally think of. There is often the possibility to move
across functions within the industry as well as the chance to develop expertise in a particular
field. Opportunities also exist to progress to a team-leader role or a more general managerial
position.
50

Graduates entering the manufacturing sector can expect to be spending some of their days in
factories, building sites and industrial plants, which may well be hot, noisy and dirty. You will
probably be wearing clothing for functionality not fashion. Opportunities for overseas travel
may be available because many manufacturing companies run overseas operations, either
within
Europe
or
further
afield.
There is no doubt that the structure and size of the manufacturing sector is changing, as are the
working conditions modern manufacturing is, in the main, high tech and with a few
exceptions, very clean. Of course, the more high-tech a factory is, the fewer people it is likely
to need. And this is always a problem for manufacturing better productivity often means
fewer jobs. So the sector remains a problematic area of employment. But there are success
stories, and there are jobs available, particularly for those graduates with high levels of skills
and professional qualifications.
Qualifications and skills needed
Target your job applications carefully. There are more graduates competing for fewer jobs and
employers want to see a genuine enthusiasm for the job and the company itself. Show how
your work experience and studies have led you to choose manufacturing and demonstrate the
skills you've got. Be open minded and flexible about the jobs you may be offered and where
they are located. Work experience is invaluable when it comes to finding out what jobs are
available in manufacturing, what they involve on a day-to-day basis and which ones you like or
dislike. It can also open your eyes to new opportunities. Any relevant work experience you can
get to put on your CV will be extremely useful, as long as you make it relevant and use it to
show how you have the competencies being asked for. Work experience isn't always that easy
to organise as some manufacturing plants do shut down over the summer, limiting opportunities
for
summer
vacation
placements.
Relevant university degrees are required for many roles - engineering disciplines like
manufacturing, production and process, and management related courses in quality, strategy,
purchasing and supply chain and operations. However manufacturing companies welcome
applications from graduates of all disciplines. They all have commercial, marketing,
purchasing, logistics, finance, HR and IT departments which need skilled employees.
Languages are not always a prerequisite for applying, as a willingness to learn is often
sufficient. Employers will be looking at your ability to organise and attention to detail. Some
jobs involve a lot of data-crunching so you must be comfortable working with numbers. IT
literacy is expected and you should be able to communicate with people at all levels in a
confident manner, be able to prioritise tasks effectively and keep to budgets.
Really research the organisation you are applying to. Company websites should give an
indication of the selection criteria and competencies the recruiter is looking for. Think about
your skills and experience, focus on any positions of responsibility you've held and what you
contributed to, or learned from, the experience

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52