SUMMER TRAINING REPORT

STUDY THE FINANCIAL SCHEMES OF NSIC at National Small Industries Corporation Ltd. (NSIC), Aligarh
ON

Mahamaya Technical University, Noida

Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of

Master of Business Administration

(2010-2012)
External supervision of supervision of Mr. T.S. RAJPUT Deputy General Manager NSIC, ALIGARH Internal Mr. AZMAT ALI KHAN Sr. Asst. Professor ABIMS ALIGRAH

Submitted by:

Javed Ali
1017570022

Al-Barkaat Institute of Management Studies Anoopshahr Road, Aligarh (U.P)

3

(Affiliated to MTU, Nodia)

SUMMER TRAINING REPORT

study the financial schemes of NSIC at National Small Industries Corporation Ltd. (NSIC), Aligarh
On

Submitted in the pertial fulfillment of the requirement for the award of the degree of

A-1 Block, Industrial Estate Near Exhibition Ground, Aligarh -202001

Master of Business Administrtation

Submitted by:

Javed Ali

Roll No. 1017570022

Under the guidance of Industry Guide Mr. T.S. Rajput Depty General Manager NSIC Ltd. Internal Guide Mr. Azmat Ali Khan Sr. Asst. Professor ABIMS Al-Barkaat Institute of Management Studies Aligarh

TABLE OF CONTENTS
CERTIFICATE OF COLLEGE CERTIFICATE OF COMPANY ACKNOWLEDGEMENT PREFACE

INTRODUCTION OF NSIC COURSE OF NSIC SCHEMES OF NSIC EXHIBTIONS OF NSIC TO SUUPORT SSIS HIERARCHY OF NSIC (ALIGARH) DESCRIPTION OF VARIOUS DEPARTMENT Technical Department Finance Department Personnel Department Quality assurance Department TOPIC INTRODUCTION OBJECTIVE OF STUDY RESEARCH METHODOLOGY DATA ANALYSIS FINADING LIMITATIONS SUGGESTION BIBLIOGRAPHY APPENDIX

ACKNOWLEDGEMENT
By the grace of GOD, I take the opportunity with great pleasure to plot the circle of warm complement deep sense of gratitude and profound thanks to all those who have spared their valuable time and giving me their cooperation to make this project complete. First of all I would like to express my sincere thanks to my supervisor Mr. Javed finance manager NSIC, Aligarh. For his efforts, continuous proper guidance, supervision and generous cooperation throughout this work which enabled me to present this project report. Special thanks have to be reserved for Mr. T. S. Rajput (DGM) NSIC, Aligarh for providing facilities and extending full support to and project work. I express my profound thanks to Mr.Javed, Mr.Jabbar who helped a lot during this training for giving precious time, giving encouragement time to time. I would be filling in my duty if, I do not express my heartiest thanks to lecturer and coordinate department for giving all possible support, suggestion and is valuable time in preparing this project.

(Javed Ali)

PREFACE

This project entitled Financial schemes of NSIC at NSIC, Aligarh. No learning can be complete without practicing. When we study in the classroom it clears our picture about the field of the area, but it proves to be useful or thoughtful when it is applied in practical field. Now the time has changed practical knowledge for management student is must to qualify as a potential manager. It is for this reason that summer training is prescribed as a part of syllabus for Masters of Business Administration.

EXECUTIVE SUMMARY To be successful, organizations must look into the needs & wants of their customers. That is the reason why many researchers and academicians have continuously emphasized on the importance of customer satisfaction. Customer satisfaction is important because many researches have shown that customer satisfaction has a positive effect on an organizations profitability. Due to this, the consequences of customer satisfaction & dissatisfaction must be considered. Therefore, customer satisfaction is very important for an organization to be successful. The customers of NSIC are SSI (Small Scale Industries) and the role of NSIC is to assist the SSI by providing the different schemes to them because SSIs sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are

complementary to large industries as ancillary units and contribute enormously to the socio-economic development of the country.

So to study the level of customer satisfaction at NSIC, Aligarh (where Ive completed my 6 weeks training) and the following objectives were taken under study To gauge the satisfaction level of customers of NSIC. To ascertain the consumers opinion vis--vis services of NSIC. To extend suggestions to the organization as to how the services offered by them could be improved. The type of research that has been used in this Project Report is Exploratory Research, the research was done in Aligarh only 50 respondents were collected as a sample size, the instrument that is used was questionnaire which was close-ended & the data collected were both primary data as well as secondary data. While completing my research, I have found out that most the respondents are not satisfied by the services of NSIC because they were not provided in time and mainly the consumers are dissatisfied by the staff members of NSIC. So the suggestion that has been given NSIC is that they should provide the services on time, staff members should be more responsible towards the needs of the customers & the schemes must be more effective with the help of changes made after customers feedback.

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COMPANY PROFILE
National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified company, since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and fostering the growth of small scale industries and industry related small scale services/business enterprises in the country. Over a period of five decades of transition, growth and development, NSIC has proved its strength within the country and abroad by promoting modernization, up gradation of technology, quality consciousness, strengthening linkages with large medium enterprises and enhancing exports - projects and products from small industries. NSIC operates through more than 120 offices, supported by a team of over 500 professionals spread across the country. To manage operations in African countries, NSIC operates from its office in Johannesburg. NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position. The schemes comprise of facilitating marketing support, credit support, technology support and other support services. NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and

advantageous position. The schemes comprise of facilitating marketing support, credit support, technology support and other support services. Marketing: Marketing, a strategic tool for business development, is critical to the growth and survival of small enterprises in today's intensely competitive market. NSIC acts as a facilitator to promote small industries products and has devised a number of schemes to support small enterprises in their marketing efforts, both in an outside the country. These schemes are briefly described as under. Consortia and Tender Marketing: Small Enterprises in their individual capacity face problems to procure & execute large orders, which inhibit and restrict their growth. NSIC, accordingly adopts Consortia approach and forms consortia of units manufacturing the same products, thereby easing out marketing problems of SSIs. The Corporation explores the market and secures orders for bulk quantities. These orders are then distributed to small units in tune with their production capacity. Testing facilities are also provided to enable units to improve and maintain the quality of their products conforming to the standard specifications. Single point Registration for Government Purchase: NSIC operates a single Point Registration Scheme under the Government Purchase Programme, wherein the registered SSI units get purchase preference in Government

purchase programme, exemption from payment of Earnest Money Deposit etc. Issue of tender sets free of cost. Advance intimation of tenders issued by DGS&D. Exemption from payment of earnest money. Waiver of security deposit up to the monetary limit for which the unit is registered Issue of competency certificate in case the value of an order exceeds the monetary limit, after due verification. Small Enterprise Establishment Programme (SEEP) This programme facilitates setting up of new enterprises all over the country by creating self-employment opportunities for the unemployed persons. The objective of this scheme is to facilitate establishment of new small enterprises by way of providing integrated services in the areas of training for entrepreneurial skill development, selection of small projects, preparation of project profiles/reports, identification and sourcing of plant, machinery and equipments, facilitating sanction of credit facility and providing other support services in order to boost the development of small enterprises in manufacturing and services sector.

VISION OF NSIC To be a world class organization fostering the growth of small enterprises. MISSION OF NSIC To enhance the competitiveness of small enterprises through a blend of promotional and commercial activities.

NSIC PREMIER VALUES

INNOVATION:-To innovate from product to processes. Excellence:- TO be best in quality and in everything we do. Risk Tolerance:- To create a culture where entrepreneurship and prudent risk taking are encouraged and rewarded. Motivation:-To celebrated success, recognizing and rewarding the achievements of individual and teams. Respect: - TO act with integrity and respect towards all.

NSIC-TSC, ALIGARH

THE NSIC-TECHNIAL services center was established during the year 1986 primarily for the upliftment of locks and hardware, allied small scale industries and rural artisan .

AIMS AND OBJECTIVES: To provide technical and vocational training to youths for

employment generation. To improve and quality and productivity by providing tools and on job training. Up gradation of technology to SSIs To provide skilled manpower to SSI units. To provide common facility services in areas such as: Design and development of press tool, dies and mould, jigs and fixtures gauges. Job work services to SSIs. TRAINING ACTIVITIES : NTSC, ALIGARH has a wide spectrum of training courses ranging from Basic Technical Training courses to specialized and HI-TECH training courses as well as tailor made training courses to suit the need and requirements of one and all. Further, NTSC, Aligarh has also been conducting specialized training Program of OBS candidates sponsored by National Backward Classes Finance and development corporation (NBCFDC). 200 Child labour youths have been trained under Indus project supported by ILO.NSCFDC has also sponsored 25 youths six months training..
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The centre has trained more than 16000 youths in the different industrial trades till date We are committed for quality training. We maintain the ethics of teacher and student relationship. We are more emphasizing on job training along with classroom training. We trained our trainees to get employment and also inspired them for self employment. Courses Run by NSIC Course Name Duration Course Name Duration Course Name Duration Course Name Duration Course Name Course Name Duration : : : : : : : : : : : Tool 2Years Tool & Die Maker with CNC wire-cut 2Years Turner with CNC lathe 2Years Product Design Engg(with Delcam) 1year Tool Design with Auto CAD CNC Wire-cut Programming and operation 3months
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&

die

design

with

Auto

CAD

Course Name Duration Course Name Duration Course Name Duration Course Name Duration Course Name Duration Course Name Duration Course Name Duration

: : : : : : : : : : : : : :

Programming and Operation of CNC Milling 3months Programming and Operation of CNC Lathe 3months Programming and Operation of CNC Wire-Cut 3months Programming and Operation of CNC Lathe 6months Programming and Operation of CNC Milling 6months Auto CAD 2007(Mechanical) 2months Press Tool Design with Auto CAD 50hrs

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CONVENTIONAL TRAINING PROGRAMME Course Name Duration Course Name Duration Course Name Duration : : : : : : Draughtsman (Mechanical) 1Year Electrician 1year Machinist 1Year

SPECIALIZED TRAINING PROGRAMME (short term) Course Name: TQM/ISO 9001:2008 Awareness Course Name: 1 Electronics 2 Mobil Repairing Course Name: Electric Motor Repair and Rewinding

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NSIC SCHEMES
PERFORMANCE & CREDIT RATING SCHEME Need of a Performance and Credit Rating Mechanism for SSIs was highlighted in Union Budget 04-05. A scheme for SSIs has been formulated in consultation with Indian Banks Association (IBA) and Rating Agencies. NSIC has been appointed the nodal agency for implementation of this scheme through empanelled agencies. Benefits of Performance and Credit Rating An independent, trusted third party opinion on capabilities and creditworthiness of SSIs

Availability of credit at attractive interest Recognition in global trade Prompt sanctions of Credit from Banks and Financial Institutions Subsidized rating fee structure for SSIs Facilitate vendors/buyers in capability and capacity assessment of SSIs

Enable SSIs to ascertain the strengths and weaknesses of their existing operations and take corrective measures.

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Benefits to Banks and Financial Institutions Availability of an independent evaluation of the strength and weaknesses of an SSI unit seeking credit and thereby enabling banks and financial institutions manage their credit risk Salient Features

A combination of credit and performance factors including operations, finance, business and management risk

Uniform Rating Scale for all empanelled rating agencies. SSIs have the liberty to choose among the empanelled Rating Agencies.

Turn-Over based Fee structure Partial Reimbursement of Rating Fee through NSIC

Empanelled Agencies

CARE CRISIL FITCH ICRA ONICRA SMERA Dun & Bradstreet(D&B)

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Performance And Credit Rating Fee Turu over of SSi Up to Rs 50 lacks Above Rs 50 to lacks More than Rs 200 lacks Fee through NSIC Rs 25000/Rs 30000/Rs 40000/-

Reimbursement of Performance and Rating Fee Turn over of SSI Up to RS 50 Lacks Above RS to 200 Lacks More than RS 200 Lacks Reimbursement of Fee through NSIC 75% of the Fee or RS 2500/-(which is lees) 75% of the Fee or RS 3000/- (Which is Less 75% of The fees RS 4000/- (which is lees)

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BANK CREDIT FACILITATION SCHEME

Equipments Financing: The Corporation is facilitating micro and small enterprises in securing loans for purchase of equipment and machinery.

Tie-up with Commercial Banks: To meet the credit needs of MSEs, NSIC has tied up with commercial banks of section of terms loans and working capital facilitating as per the convenience of the micro and small enterprises. The arrangement envisages forwarding of loan application of the interested micro and small enterprises by NSIC to the interested micro and small enterprises by NSIC to the banks without any cost to micro and small enterprises. The accredited micro and small enterprises under the performance and credit rating scheme of NSIC will stand at a good chance to get the credit from these commercial banks at liberal rate.

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RAW MATERIAL ASSISTANCE Raw Material Assistance Scheme aims at helping Small Scale

Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to SSI to focus better on manufacturing quality products. Benefits of the Scheme Financial Assistance for procurement of Raw Material upto 90 days. SSI helped to avail Economics of Purchases like bulk purchase; cash discount etc

NSIC takes care of all the procedures, documentation & issue of Letter of credit in case of imports.

Process to Apply The Entrepreneurs are required to apply for Raw Material Assistance only on the prescribed application forms. The blank forms are also available free of charge from the zonal and Branch offices. 1. Duly filled application form is to be submitted along with the Application Processing Fee ( by Bank Draft / Pay Order in favour of NSIC Ltd.). 2. Preliminary appraisal and Unit inspection is carried out by NSIC.
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3. Sanction of Limit to the Unit. 4. Signing of agreement between NSIC and Unit. 5. Disbursement of assistance to the unit. Processing Fee (depends on amount of assistance sought) S.No. a.) b.) c.) d.) Slab for Processing fee Up to Rs.25 lacs above Rs.25 lacs and up to Rs.50 lacs above Rs.50 lacs and up to Rs.1 core above Rs.1 core applied for

Rs.2,500/Rs. 5,000/Rs. 10,000/0.1% of the assistance

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EXPORTS NSIC is a recognized Export House. NSIC, on behalf of small industries, is exporting products and projects around the globe. The major areas of operation are:

Export of Indian products like handicrafts, leather items, hand tools etc.

Supply of Small Industry Projects on turnkey basis. Export of IT solutions from India. Export of Relief supplies from India to UN and other International Agencies

Product NSIC is associated with the exports of Small Scale Industries products to other countries. Project NSIC undertakes export of industrial projects under its is associated with the exports of Small Scale Industries products to other countries on turnkey Basis. NSIC provides a package of services for setting up of Industrial Projects to other countries

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Exports Assistance NSIC is associated with the exports of Small Scale Industries products to other countries. The broad categories of products exported by NSIC are: Builders Hardware Garden Tools & Accessories Handicrafts Electrical Products & Accessories Sports Goods Sanitary Fittings Textile and Textile Products Leather Products Auto Components Architectural Iron Light Engineering Goods Hand Tools Castings & Forgings

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BILL DISCOUNTING SCHEME The Scheme covers purchase / discounting of bills arising out of genuine trade transactions i.e. purchase of supplies made by small scale units to reputed Public Limited Companies / State and Central Govt. Departments / Undertakings. SELLERS Small Scale Units BUYERS i) State and Central Govt. Departments / Undertakings ii) Public Limited Companies GRANT OF PURCHASER-WISE LIMITS Bills drawn by small-scale units for the supplies made by them and duly accepted by the Purchaser will be financed against security of Bank Guarantee in favour of NSIC. Purchaser unit(s) may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form.

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GRANT OF SELLER-WISE LIMITS Seller unit(s) may provide bank guarantee in favor of NSIC for availing financial assistance under the scheme. Bills drawn by them against their supplies made, duly accepted by the purchaser will be financed. Annual limits can be fixed for such units by obtaining information as per the prescribed application form. PERIOD OF USANCE OF BILLS TO BE CONSIDERED FOR DISCOUNTING : The maximum period of such bills should not exceed 90 days. The period of unexpired of the bill shall not exceed 90 days while the tenure of the bills shall not exceed 120 days. SECURITY: Bank guarantees issued by banks approved by Head Office. The Bank Guarantee to be obtained should be equivalent to the value of assistance (including discounting charges & service charges for 90 days). OR Bill of exchange duly accepted by large corporate units of good financial standing with a turnover exceeding Rs 200 Crores and net-worth exceeding Rs 50 crorers and which are profit making for the last three years. Personal
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guarantee of proprietor, partners of firms and Directors of the company shall also be obtained. RATE OF INTEREST The rate of interest would be as under ( w.e.f 11/05/2009): a) 11.25 % p.a b) Assistance against the security other than those Assistance against the security of BG/SDR/FDR :

mentioned above : 13.25% p.a. to 16.25% ( in such cases high Power Acceptance committee at H.O. is empowered to fix the rate of interest on case to case basis.) The rate of interest on the delayed payment (w.e.f 11/05/2009) shall be charged as follows:

For the delays beyond 90 days but up to 180

days : 2.50% over and over and above the normal rate of interest.

For the delays beyond 180 days : 3.00% over

and above the normal rate of interest. Revised rate of interest shall be made applicable on

All the cases sanctioned and / or disbursed

on and after 11/05/2009 and

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Principal amount outstanding (not overdue)

as on 11/05/2009, against the assistance already granted & disbursed.

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SERVICE CHARGES FOR UNITS PLACED ALL OVER THE COUNTRY OTHER THAN NORTH EASTERN REGION Minimum service charges will be 0.25% for the first 30 days and thereafter 0.08% per week subject to maximum of 3% of the Principal amount (i.e. amount of invoice to be discounted). OR Commitment charge @ 2% p.a. on the limit sanctioned to be collected in advance. FOR UNITS PLACED IN NORTH EASTERN REGION Minimum service charges will be 0.13% for first 30 days and thereafter 0.04% per week subject to a maximum of 1.50% of the principal amount (i.e. amount of invoice to be discounted). OR Commitment charge @ 1% p.a. on the limit sanctioned to be collected in advance.

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PROCESSING FEE (i) Processing Fee shall be collected in advance on receipt of

application and will be non-refundable. The processing fee shall be 0.2% of the limit applied for. (ii) At the time of processing of application for enhancement of

limit, the rates shall be the same as at (i) above. (iii) At the time of processing of application for renewal of limit,

the rates shall be fifty percent of the rates as at (i) above. The application for the request to sanction limit under the Bill Discounting Scheme is to be submitted by the seller unit duly signed by the authorized signatory i.e. Proprietor / Partner / Director of the Firm / Company in duplicate in the prescribed form

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GOVERNMENT STORES PURCHASE PROGRAMME

The Government is the single largest buyer of a variety of goods. With a view to increase the share of purchases from the small-scale sector, the Government Stores Purchase Programme was launched in 1955-56. NSIC registers SSI units under Single Point Registration scheme for participation in Government Purchases. Benefits of Registration Issue of tender sets free of cost. Advance intimation of tenders issued by DGS&D. Exemption from payment of earnest money. Waiver of security deposit up to the monetary limit for which the unit is registered.

Issue of competency certificate in case the value of an order exceeds the monetary limit, after due verification.

Eligibility Micro & small Enterprises which are in continuous production of stores for one year or more and are registered with the Director of Industries (DI) as manufacturing SSI Unit/Small Scale (industry related) Service & Business Enterprises(SSSBE), who own workshop of their own or on lease basis and
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have the commercial and technical competence to produce stores/provide services for supply to the Government Departments such as DGS&D, Railways, Defense, P&T, Central/State Government Departments and Central/State Government Public Sector Undertakings etc. conforming to BIS or such standards as required by the Government buying agencies. For the micro & small Enterprises who have commenced the commercial production but not completed one year of existence and hence not able to submit the Audited Balance Sheets and other annexure, the provisional Registration Certificate can be issued to such Micro & Small Enterprises under Single Point Registration Scheme which shall be valid for the period of one year only for the date of issue after levying the registration fee and obtaining the requisite documents. The initial monetary limit for such units will be fixed at Rs. Lac Only. The Provisional Registration Certificate will be valid for the period of one year only. The Provisional Registration Certificate shall to be renewed by the unit before it expiry as per the term and conditions of the Single Point Registration Scheme laid down for the renewal of the registration. How to Apply SSI Units shall have to apply on the prescribed application form in Duplicate and to be submitted to the concerned Zonal/Branch Office of NSIC located nearest to the unit. In case of any difficulty in filling the application form
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and completing the documentation please consult any of the Zonal / Branch office of NSIC. REGISTRATION FEE S.No. 1. Category For Fresh Registration : Based on the Investment in Plant and Machinery as per slab given below Up to Rs. 5 Lac Rs 2,500/More than Rs 5 Lac but up to Rs 25 Rs. 4000/Lac More than Rs 25 Lac but up to Rs 100 Rs. 7000/Lac More than Rs 100 Lac but up to Rs 500 Rs. 10,000/Lac Fee for issuance of amendments in 50% of the charges as stores (Qualitative & Quantity); Fee for mentioned at S.No. 1 issuance of change in monetary limit or above any other amendment in the certificate and fee for issuance of Renewal of GP Registration. (Every Two years) REGISTRATION PROCESS 1. The SSI Unit has to submit the application form (in duplicate) along with requisite fee and documents to the Zonal/Branch and Sub Office of NSIC situated nearest to their location. 2. Duplicate copy of the G.P. Registration Application Form submitted by the SSI Unit will be forwarded to the concerned SISI along with
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Registration Fee to be paid to NSIC

2.

copies of required documents and Draft/Pay Order of Rs. 1000/-, requesting for carrying out the Technical Inspection of SSI Unit and forward their recommendations in this regard. 3. After receiving SISI Inspection Report, NSIC will issue the GP Registration Certificate to SSI Unit for items/stores as recommended. Procedure for calculation & fixation of Monetary Limits of SSI Units: Monetary limit of the company is fixed on the basis of the unit's net sales turnover during the last three years reflected in the Audited Balance Sheets. Sample calculation: Net Sales = Total sales All Duties, Taxes, returns etc Details of the net sales of the company during last three years: 2002-03 2003-04 2004-05 Therefore, Monetary Limit = Say = Rs. 34 Lac.

Rs. Rs. Rs. = Rs. Rs.

50 75 80 (50+75+80)/3 34.26 X

Lacs Lacs Lacs 50% Lac.

In case the Company/Partnership concern/Proprietorship unit is in loss

for one year out of past three years, their monetary limit will be fixed at 40% of their average net sales turnover.

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Similarly, when the SSI Unit is in loss for two years out of the past

three years, the monetary limit will be accordingly fixed at 30% of their average net sales turnover of the past three years.

In the event of SSI unit being in loss throughout past three years, the

monetary limit of the Unit will be fixed at 20% of the average net sales turnover of the Unit during the past three years In cases of initial

registration where the firm has been in existence for less than 3 years MTL may be fixed at 50% of the average net sales value of the last year for which audited accounts are available. Validity Period of G. P. Registration The G. P. Registration Certificate granted to the SSI Unit under Single Point Registration Scheme (Revised), 2003 is valid for Two Years and will be reviewed and renewed after every two years by verifying continuous Commercial and Technical Competence of the registered SSI Unit in manufacturing / producing the stores for which it has been registered by NSIC. Documents Required for Renewal of the Registration 1. Original GP Registration Certificate. 2. A Copy of the Permanent Account Number (PAN CARD). 3. Copy of valid SSI Registration Certificate 4. List of major Govt. Orders executed during last 2 (two) years.
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5. Copies of Audited Balance sheet for last 3 years duly signed by the authorized person under his seal 6. List of addition/deletion in the plant and machinery after the registration. 7. For the following documents one declaration shall be given :8. Factory License/Shop Establishment Act License 9. Photocopy of Municipal Corporation Certificate 10.Proof of ownership Deed/Lease Deed/ Rent Deed 11.No Objection Certificate from Pollution Control Board.

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TECHNOLOGY SUPPORT Technology is the key to enhance a companys competitive advantage in todays dynamic information age. Micro and Small enterprises need to develop and implement technology strategy in addition to financial, marketing and operational strategies and adopt the one that helps integrate their operation with their environment, customers and suppliers. NSIC offers the following support services to micro and small enterprises through its Technical Service Centers and Extension Centers. Advice on application of new techniques Material testing facilitating through accredited laboratories Product design including CAD/CAM Common facility support in machining, EDM, CNC, DNC, etc. Energy and environment audit services at selected centers Classroom and practical training for skill up gradation and entrepreneurship development.

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NSIC Technical Service Centers are located at the following places

Name of the Centers Chennai Howrah Hyderabad New Delhi Rajkot Rajpura (pb) Aligarh (UP)

Focus area Leather & Foot ware General Engineering Electronic & Computer Application Machine Tool & related activities Energy Audit & Energy Conservation activities Domestic Electrical Application Lock Cluster & Die and Tool making

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INFOMEDIARY SERVICES Information today is becoming almost as vital as the air we breathe. We need it every minute of our working lives. And with the increase in competition and melting away of international boundaries, the demand for information is reaching new heights. Keeping in mind the information needs of small industries NSIC has launched "Infomediary Services". A one-stop, one-window bouquet of aids that will provide information on business, technology and finance, and also exhibit the core competence of Indian SMEs in terms of price and qualityinternationally, as well as domestically. NSIC's Infomediary Services use a professionally managed HR base and modern technology for dissemination of vital information-websites, sectorspecific newsletters (both print and electronic), and e-mails. Potential beneficiaries would be entrepreneurs-both existing and aspiring-R&D labs, SME seeking business collaboration and co-production opportunities, joint ventures, exporters and importers, and those looking for technology transfer. Salient Features

Tender Information in your e-mail box and web based browsing Banner display on NSIC's website
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Concessions on Apollo Hospitals Medical Facilities. Concessions on hotel reservation in select hotels. Access to a wide rang of technologies from India and abroad. Access to national and international business leads, JV opportunities

and trade information.

Information on Trade and events. Comprehensive information on

Government policies, rules and regulations, schemes and incentives. Access to industrial databases and members' directory.

Access to NSIC's Business Centre with facilities such as conference

hall, fax, telephone, photocopy and A/V aids etc.

Access to a wide range of assistance for participation in business

delegations, exhibitions/fairs.

Availability of a wide range of escort services, e.g., product design,

credit and support rating, developing catalogues and product literature, energy and environment audit, introduction of information technology (IT) solution in Business operations. Skill up gradation Training, mentoring services, common facility at NSIC Technical Services Centre(s), banners display on websites and market studies.

In addition Infomediary member would get discounts from Apollo

Hospital for medical facilities.

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Access to Infomediary services is through NSIC Infomediary Services (IS) membership at a cost of Rs. 5000/- (Five Thousand Only).

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SOFTWARE TECHNOLOGY PARKS NSIC Software Technology Parks (STPs) facilitate micro and small industries in setting up 100% export-orient units for software exports. They also act as nobal point to achieve software exports directly through NSIC. These STPs extend support in terms of the requisite infrastructure to the SSI units to start business operation with a minimum lead time. The scheme is governed by STPI regulation of the Ministry of Information Technology, Government of India. NSIC establish the first STP at Okhla, New Delhi in 1995 and second in Chennai in 2001.Several small scale units have taken advantage of these parks and contributed export earnings to the exchequer. Technology Business Incubator: Enterprises development is one of the thrust areas for nurturing the development and growth of micro and small enterprises in the country that is being facilitated by providing handholding support to the micro and small enterprises in every field of business. Incubator is one of the appropriate tools to achieve this goal, as it provides necessary facilities for the prospective entrepreneurs and startup companies to learn product manufacturing process coupled with technology

development, business development under one roof. In these Incubators working project depicting appropriate technology for micro and small enterprises are displayed in working conditions.

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Small Enterprise Establishment Program: This program facilitates setting up of new enterprises all over the country by creating self-employment opportunities for the unemployed person. The objective of this scheme is to facilitate establishment of new micro and small enterprises by way of providing integrated service in the areas of training for entrepreneurial skill development, selection of small projects, and preparation of project /reports, identification and sourcing of plant, machinery and equipment, facilitating sanction of credit facility and providing other support service in order to boost the development of micro and small enterprises in manufacturing and service sectors.

International and National Exhibition

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NSIC has now emerged as one of the key players for the promotion and development of Micro and Small Enterprises in the country. NSIC had laid certain goals and objectives for the company and looking back after almost two years since then, NSIC can derive some satisfaction that the company has been able to tread the path of development. It has not only achieved a turn around in its profitability, but has also reached out to a larger number of Micro and Small Enterprises for providing its services. NSIC have always urged upon all the employees to not only enhance the business operations and viability, but also improve the quality of service to our customers. You will agree that good customer service always brings a greater satisfaction while profitability is necessary to keep operations continuing. There is marked improvement on this front too but, a lot more needs to be done to earn the trust and confidence of a larger number of beneficiaries of NSICS services. At the national level, NSIC was conferred the Corporate Excellence Award by Amity International Business School during the year 2006-07 thus, acknowledging the turnaround in overall performance and quality of service delivery. Institute of Economics Studies- New Delhi conferred the Udyog Rattan Award and Excellence Award to NSIC for outstanding performance in the field of industrial development of the country. For participating in the India International Trade Fair organized by India Trade
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Promotion Organization (ITPO), NSIC was given the award for Best Display in Theme Category. NSIC is closing the current financial year 2009-10 with a record performance in terms of turnover and profitability, but NSIC cannot rest at these levels as majority of potential customers are still waiting to receive its services. NSIC has to reach out to the marginalized and unemployed in order to help them in their self-employment activities. Participation under NSIC banner To showcase the competencies of Micro & Small Enterprise (MSEs) and to capture market opportunities, NSIC participates in selected International Exhibition every year. NSIC facilitates the participation of small enterprises by providing the special discount on Stall rental and Airfare only. Participation in these events provides exposure to MSE units in International market and enhances their business prowess. Benefits of participation NSIC is a brand name for the development and promotion of Micro & Small Enterprises worldwide. The participation of Indian Micro & Small Enterprises under the NSIC banner facilitates them to grow and expand their business. NSIC creates a platform for Micro & Small enterprises in Foreign Fairs to enable them to obtain credibility about their competency and
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capability to supply goods/technologies to foreign buyers matching International Standards.

Organizing International Technology Exhibitions in Foreign Countries by NSIC and participation in International Exhibitions/Trade Fairs

Opportunities in emerging and developing markets. These exhibitions may be organized in consultation with the concerned stakeholders and industry associations etc. The calendar for these events may be finalized well in advance and published widely amongst all participants/ stakeholders. The calendar of events would also be displayed on the Web-site of NSIC. Such expositions showcase the diverse technologies, products and services produced/rendered by Indian (MSMEs) and provide them with excellent business opportunities, besides promoting trade, establishing joint ventures,
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technology transfers, marketing arrangements and image building of Indian (MSMEs) in foreign countries. In addition to the organization of the international exhibitions, NSIC would also facilitate participation of Indian (MSMEs) in the select international exhibitions and trade fairs. Participation in such events exposes (MSMEs) to international practices and enhances their business prowess. These events provide a platform to (MSMEs) where they meet, discuss, and conclude agreements on technical and business collaborations. Rules and regulations for participation in fair abroad through NSIC The participants interested to participate in any of the International exhibition Need to apply with. 1. Duly filled application form along with following documents as mentioned in the FACT SHEET.

Copy

of

the

valid

SSI

Registration

Certification

or

Entrepreneurs' Memorandum (1& 2) filed with the notified authority as a proof of Micro or Small enterprise.

Copy of Membership Certificate of Industry / Associations /

Chamber of Commerce / Export Promotion Council.

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Proof in support of the promoter's category or categories

(Women, SC/ST. Backward, Minority) etc.

Copies of Audited Balance Sheet with Income Tax Returns for

the last two year.

Proof in support of the promoter's category or categories

(Women, SC/ST. Backward, Minority) etc.

Copies of Audited Balance Sheet with Income Tax Returns for

the last two year.

Copy of company profile. To sign an agreement with NSIC in case of participation in

technology exhibition (Format of agreement).

2.

Participation Fee: Complete stall charges (non-refundable) by Demand Draft in favor of National Small Industries Corporation, New Delhi towards participation fees should be submitted by the participating unit after availing the amount of concession a accruable to the unit.

Organizing Domestic Exhibitions and Participation in Exhibitions/ Trade Fairs in India In order to provide marketing opportunities to MSMEs within the country, certain theme based exhibitions / technology fairs etc. may be organized by NSIC, focused on products and services offered by MSMEs, including

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technologies suitable for employment generation, products from specific regions or clusters (like North Eastern Region, Food processing, Machinetools, Electronics, Leather etc). Micro, Small & Medium Enterprises would be provided space at concessional rates to exhibit their products and services in such exhibitions/fairs. Apart from above NSIC may also facilitate participation of MSMEs in the exhibitions / trade fairs / events being organized by various State Government departments, industry associations and other institutions, all over the country to exhibit their products and services. These exhibitions may be organized in consultation with the concerned stakeholders and industry associations etc. The calendar for these events may be finalized well in advance and published widely amongst all participants/stakeholders. The calendar of events would also be displayed on the Web-site of NSIC. Participation in such events is expected to help the MSMEs in enhancing their marketing avenues by way of capturing new markets and expanding existing markets. This would also help them in becoming ancillaries, partners in joint ventures and sub-contracting for large companies.

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Proposed Calendar of Domestic Exhibition for the year 2009-10 Name of the Exhibition Techmart India 2009 North East Trade Expo 2009, Delhi Guwahati Trade Fair Dealing Branch Office H.O./Branches

Type of Event Technology Fair North East Handicrafts/Prod ucts North East Products

Duration 14-27 Nov 2009 Jan. 2010

Doner / NE/ HO

Feb.2010

B.O. North East

B. Exhibitions Proposed to be Participated Name of the Exhibition 5th Fod & Technology Expo 2009,Prag Automnation 2009, Mumbai Indian Automobile Trade Fair, Pune Industrial India Trade Fair, Kolkata Dealing Branch office Delhi / Parliament Street

Type of Event Food & Technology Automobile Technology / Products Automobile Technology / Products Industrial Products /

Duration

7-9 August 2009

Sept. 2009

B.O.Mumbai

Dec.2009

B.O.Mumbai

Dec.2009 Jan. 2010

B.O.Kolkata B.O.Kolkata

Technologies Shilpa Banijya Mela Multi Products

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2010, West Begal Pashchimi Rajsthan Udyog Hastship 2010, Jodhpur Handicrafts Jan. 2010 B.O. Jaipur

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HIERARCHY OF NSIC

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Descriptions of Various Functions TECHNICAL DEPARTMENT Engineering services a vital role in proper working of an organization. The quality those services decides the quality of work life (QWL) and the productivity level. The role is highly emphasized since the main motive of every worker and the factory, as a whole is high productivity. Engineering services actions always try to improve its utilities services and maintenances service. The main emphasis is on prevention of wear and also wastage.

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Financial Department Money is all about goes famous saying. Finance and account department is the backbone of any organization. Thus it can be said that success of any organization largely depends upon the optimum utilization of funds. NSIC has a well-equipped finance department with vice president finance as the controlling from the Dhali. NSIC has finance executive and account officers and other staff working under him who are placed at Aligarh factory. These are in total 8 persons working in accounts department. Aligarh factory also controls the computer department. Functions of account Department: Fund Management. Budgetary control. Purchases Accounting and control. Wages Administration. Audit compliance Variance Analysis. Information Technology.

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PERSONNEL AND HRD DEPARTMENT

RECRUITMENT AND SELECTION Recruitment refers to the getting interested applicants and providing a pool of prospective employees as that the management can select the right person for the right form the poor. Source of recruitment
1.

Internal source Present employees, employee referrals former employees, previous applicant.

2.

External source- Advertisement, employment exchange, campus recruitment, walk in, talking write in interview.

The purpose of the selection process is to choose right type of candidates form various type of jobs. Recruitment in NSIC Here the aim of selection process is to reject the unsuitable candidates. But recruitment is a positive process because it aims at attracting applicants for various jobs.

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In order to carry out the organizational activities every organizational needs to recruits people. In NSIC recruitment is mainly done through internal as well as external sources. As an internal sources, the authorized staff of NSIC consider job description and specification is done before going for recruitment and selection. NSIC has its own recruitment policies. Vacancies are widely publicized through various means as newspaper etc. it has a selection committee comprising of director of company. Candidates are selected through written test and interviews. Appointment letters issue at the of joining of the service. Training and development Training is an organized activity for increasing the knowledge and skills of people for definite purpose. It involves systematic procedure for transferring technical employees so as to increase their knowledge and skills for doing specific job with proficiency. B development means growth of the individuals in all respects enables them to be more effective in performing the various functions of management.

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In NSIC training is an integral part of the HRD and considered essential for encouraging employees for commitment to quality. Company has been organizing various training programme for its employees as it increases their efficiency and update the latest technology. Improves knowledge and skills of employees personally and provides them with feeling of job satisfaction. It help them to inculcate the team sprit and better relations among them to keep in pace with the competitive word. The training needs are indemnified by personnel department in consideration with department heads. The HRD at Mumbai takes care of T & D activities. There is provision for both in house training programme as well as external training programme. Proper measurers are taken to evaluate the training programme. Proper measures are taken to evaluate the training programme. Promotion and transfer Promotion is based on the basis of seniority. Performance, attendance is chronological order. For the management staff it is based on performance appraisal rating Method and for the other staff is based on annual review system. Wages and salary Administration Fixation of wages is based on job analysis

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Remuneration = Basic salary +DA +HRA Difference in compensation is according to the grades and groups of employees. Casual workers are paid fortnightly. Deduction from the wages is made on account of damage to the company property or when the loan is taken by the employee. Welfare activities NSIC has been providing a series of welfare activities (statutory and nonstatutory) to its employees. These facilities make the employee feel satisfied and make them loyal towards the company and they perform their duties with great interest and enthusiasm. Industrial relation I R help in maintain industrial pieceworker participation in management (WPM) helps in improving the relationship with workers, increasing the production and solving disputes which arise between workers and management by bilateral talks. social security and labor laws The company has implemented various labour laws in order to provide social security to its workers. The labour laws implemented by the company are

53

ESI act, gratuity bonus, and payment of wages Act, factories Act etc. against certain risks. Performance appraisal Performance appraisal thus is systematic and object way of judging tae relative worth or employees in performing the task. Performance appraisal introduce 1. Identifying employees for salary increase; promotion, transfer, and layoff or termination of services. 2. Determining training needs for further improvements in performance. 3. Motivating employees by indicating their performance levels 4. Establishing a basic for recherch and references for personal decisions in future. Appraisal system plays an integer part in any company likewise after taking over of NCIC significant change was introduced wherein annual increments were linked with the performance appraisal. The system is now made more objective and the element of subjectivity has been reducing for the performance appraisals are divided into two categories for performance appraisal.

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Methods of performance appraisal Past Oriented 1. Rating scale method 2. Forced choice method 3. Forced distribution method 4. Behaviorally encoded rating scale 5. Annul confidential report (ACR) 6. Performance test and observation 7. Performance test and observation 8. Cost accounting method 9. Comparative evaluation method Future oriented 1. MBO 2. Psychological appraisal 3. Assessment centers PERSONAL POLICIES Manpower planning and recruitment Joining and induction Performance management Training and development
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 Promotion Retirement programs Holidays and leaves Housing Hospitalization and accident insurance Contribution to external media

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QUALITY ASSURANC DEPARTMENT Quality this word meant a lot for FMCG Company because they are known for their good quality so it is not mere an accidents but the promise which they keep against the costumers. It is a collective work of efficient people with a team of well trained and experienced people. Quality policy NSIC is committed to: 1. Procurement, development, production and marketing of safe

clean wholesome foods of high quality, keeping focus on customers. By establishing and maintaining proper facilities necessary for controlled production consistency in a sanitary manner, so as to ensure that customers confidence is generated and maintained consistently. 2. Establishing and maintaining appropriate operating and

monitoring procedure necessary for controlled production. Establishing and maintaining appropriate Training programme so that every person responsible for products integrity and safeguarding quality environments competent to carry out his responsibilities. 3. Achieving high safety, Occupational health and environment

standards by establishing internal review procedure to compliance applicable laws and regulations.
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58

PROJECT

INTRODUCTION OF TOPIC
(RAW MATERIAL ASSISTANCE) Raw Material Assistance Scheme aims at helping Small Scale

Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to SSI to focus better on manufacturing quality products. Benefits of the Scheme Financial Assistance for procurement of Raw Material upto 90 days. SSI helped to avail Economics of Purchases like bulk purchase; cash discount etc

NSIC takes care of all the procedures, documentation & issue of Letter of credit in case of imports.

Process to Apply The Entrepreneurs are required to apply for Raw Material Assistance only on the prescribed application forms. The blank forms are also available free of charge from the zonal and Branch offices.

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1.

Duly filled application form is to be submitted along with

the Application Processing Fee ( by Bank Draft / Pay Order in favour of NSIC Ltd.). 2. NSIC. 3. 4. 5. Sanction of Limit to the Unit. Signing of agreement between NSIC and Unit. Disbursement of assistance to the unit. Preliminary appraisal and Unit inspection is carried out by

Processing Fee (depends on amount of assistance sought) S.No. a.) b.) c.) d.) Slab for Processing fee Up to Rs.25 lacs above Rs.25 lacs and up to Rs.50 lacs above Rs.50 lacs and up to Rs.1 core above Rs.1 core applied for

Rs.2,500/Rs. 5,000/Rs. 10,000/0.1% of the assistance

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Objectives of study
Study includes the analysis of the following financial schemes of NSIC Aligarh unit.

Raw Material Assistance (short terms finance).

Exhibitions Performance & Credit Rating (subsidy 75% in rating fee).

Incubator scheme

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RESEARCH METHODOLOGY

Research design: The study consists of descriptive as well as

exploratory type of design

Data Type: Both primary and secondary data are used in the present
study to analyze different schemes of NSIC Aligarh Branch.

Data Instruments: Questionnaire Containing open ended questions,

related books Magazines etc.

Sampling Design: Sampling Sample Size Sampling units

: : : Convenience sampling technique 50 Industrialist

Area under Investigation: Various Industries of Aligarh District

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DATA ANALYSIS

Q1.Are you satisfied with raw material scheme?

80% of the respondents are not satisfied for this scheme and 20% of the respondents are satisfied for this scheme.

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Q2.Are you satisfied with financial schemes processing fee?

75% of the respondents are satisfied for the financial scheme processing fee and 25% of the respondents are not satisfied for the financial scheme processing fee.

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Q3.Are you satisfied with documentation requirement?

80% of the respondents are satisfied with documentation requirement and 20% of the respondents are not satisfied with documentation requirement.

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Q4.Are you satisfied with terms and conditions of NSIC Schemes?

60% of the respondents are satisfied with terms and conditions of NSIC schemes and 40% of the respondents are not satisfied with terms and conditions of NSIC schemes.

66

80% of the respondents are satisfied with NSIC schemes and 20% of the respondents are not satisfied with NSIC schemes.

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Q6.Are you satisfied with performance and credit rating scheme?

90% of the respondents are satisfied with performance and credit rating scheme and 10% of the respondents are not satisfied with performance and credit rating scheme.

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Q7.Are you satisfied with implementation of schemes?

75% of the respondents are satisfied with implementation of schemes and 25% of the respondents are not satisfied with implementation of schemes.

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Q8.Are you satisfied with support given by the NSIC?

65% of the respondents are satisfied with support given by the NSIC and 35% of the respondents are not satisfied with support given by the NSIC.

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FINDINGS
After field survey and its analysis the following are some findings of this study The financial schemes of NSIC found Beneficial for SSI.

Found helpful for the new player for its upliftment. Help and promote SSI in Export. Provide the raw material and financial aid to SSI.

Provide training and arrange trained workforce to SSI.

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SUGGESTIONS

Increase the awareness level in the people Provide the raw material in cash also Decrease the processing fee Reduce the documentation Increase the credit period

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CONCLUSION

The study concluded that the SSIs are generally aware with all the financial schemes of NSIC available to promote and support them. It is further concluded that NSIC also support SSIs to improve technology needs and train the personnel responsible there.

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LIMITATIONS
The study was conducted under the following limitations
1.

Availability of time.

Due to time constraint the research could not be done exhaustively which may not have resulted deeper insights

2.

Availability of cost/resources.
To represent the whole population is very costly and lack of resources it is difficult to conduct the whole population

3. Restriction of sample size.

Due to the high population we are unable to cover the whole population.

4. Reluctant respondents
Some Micro and Small Enterprises (MSEs) are reluctant to give responses to some questions.

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BIBLIOGRAPHY:
BOOKS: Research Methodology by C.R. Kothari Financial Management by Khan & Jain. Financial Management by I.M. Pandey

Related websites:
www.nsic.co.in www.google.com

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QUESTIONNAIRE Company Name: Type of Industry: Q1. Are you satisfied with raw material scheme? (a) Yes Q2. (b) No

Are satisfied with financial schemes processing fee (a) Yes (b) No

Q3.

Are you satisfied with documentation requirement? (a) Yes (b) No

Q4.

Are you satisfied with terms and conditions of NSIC SCHEMES? (a) Yes (b) No

Q5.

Are you satisfied with NSIC schemes? (a) Yes (b) No

Q6.

Are you satisfied with performance and credit rating scheme? (a) Yes (b) No

Q7.

Are you satisfied with implementation of schemes? (a) Yes (b) No

Q8.

Are you satisfied with support given by the NSIC? (a) Yes (b) No

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