Report of Summer Training Conducted at Ayurvet Limited On Attrition Call Back Analysis

Submitted in partial fulfillment of the requirements for the award of the degree of

Master of Business Administration (MBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Guide Name: Dr.Ajay Pratap Singh

Submitted by: Student Name:Megha Nanda Roll No.: 02721303912 Batch: 2012-14

Tecnia Institute Of Advanced Studies New Delhi 110085

Batch 2012-14

Certificate

I, Ms. Megha Nanda, Roll No. .: 02721303912 certify that the Summer Training Report (Paper Code MS-201 entitled Attrition Call Back Analysis is done by me and it is an authentic work carried out by me at Ayurvet Limited. The matter embodied in this Report has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student Date:

Certified that the Summer Training Report (Paper Code MS-201) entitled

Attrition Call Back Analysis done by Ms. Megha Nanda, Roll No. 02721303912, is completed under my guidance.

Signature of the Guide Date: Name of the Guide: Designation:

Countersigned

Director/Project Coordinator

DECLARATION

I Megha Nanda, a student of MBA studying at Tecnia Institute Of Advanced Studies, solemnly declare that the project work title as Attrition Call Back Analysis was carried out by me in the partial fulfillment of the MBA programme under Guru Gobind Singh Indraprastha University is genuine work of mine. It has not been either fully or partly related to any other institute prior in any other connection.

This project was undertaken as part of the academic curriculum according to the University rules and norms and by no commercial interest and motives.

(Megha Nanda)

ACKNOWLEDGEMENT

Gratitude is the hardest emotion to express and often one does not find adequate words to convey ones entire feelings. I owe my gratitude to Ayurvet Limited, New Delhi for providing me the opportunity to undergo 2 months summer training, especially Mrs. Nirupma Srivastava Head of HR Department for allowing me to work on the project titled Attrition Call Back Analysis. It is my foremost duty to express my deep sense of gratitude and respect to my Supervisor Mr.Harsh Khanna, Ass. Manager of HR for her valuable guidance as well as uplifting tendency and inspiring me for taking up this project work and complete it successfully. I would like to give sincere thanks to everyone in Ayurvet Limited for their extreme help, self guidance, cooperation and friendliness; they did it in one way or other for successful completion of the project. My deep gratitude to Dr. A.K.Rathore, the Director of Tecnia Institute of advance Studies, who always been playing a great role in all round development of student. Finally, I would like to put on record my thanks to my Faculty Project Guide Dr. Ajay Pratap Singh and all teaching and non teaching staff as well as friends for their kind support, help and assistance, which they extended as and when required.

(Megha Nanda)

CONTENTS
S No Topic Page No

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Certificate (s) Declaration Acknowledgement List of Tables List of Symbols List of Abbreviations Introduction Chapter-1: Profile of the Firm/Company Chapter-2: SWOT Analysis of the Company Chapter-3: Research Methodology Chapter-4: Data Collection & presentation Chapter-5:Functional Ananlysis of the company Chapter-6: Conclusions References/Bibliography

1 2 3 5 5 6 7 19 24 43 48 76 79 81

LIST OF TABLES

Table No 1 2 3

Title Corporate Office Address Manufacturing and R & D Unit Address Animal Feed Plant Address

Page No 11 11 11

TABLE OF SYMBOLS S No 1 2 % @ Symbol Nomenclature & Meaning Percentage At the rate

TABLE OF ABBREVIATIONS S No 1 2 3 4 Abbreviated Name AGES ARF CFOs DSIR Full Name Alternative Green Energy Solutions Ayurvet Research Foundation Chief Financial Officers Department of Scientific & Industrial Research 5 6 7 8 9 10 11 12 13 14 15 EOQ ERP EU F&A GMP ISO MNCs R&D SAP SME WHO Economic Order Quantity Enterprise Resource Planning European Units Finance and Administration Good Manufacturing Practice Indian Standard Organisation Multinational National Companies Research and Development Systems Applications and Products Small and Medium Enterprises World Health Organisation

1.1 INTRODUCTION Human resources are the only source of long term competitive advantage for any business organization. It plays a key role in helping companies deal with a fastchanging competitive environment. It is also the specialized responsibility of the HR department. Thus Human Resource Management (HRM) is the strategic and coherent approach to the management of an organizations most valued assets. Human Resource Management involves five major areas: staffing, retention, development, adjustment and managing change. Together they compose the HRM system, for they describe a network of interrelated components1. However, rising business competition has led to high attrition rates in many sectors and retaining the employees is proving to be a herculean task for most organizations in the modern era of globalization and competitive business.

Attrition is a normal and uncontrollable reduction in the workforce because of constant stress, retirement, death, sickness and relocation. In simple words, attrition refers to the number or rate at which the people leave an organization. It is one method of reducing the size of workforce without management taking any overt actions. The drawback to reduction by attrition is that reductions are often unpredictable and can leave gaps in an organization. Attrition is one of the biggest challenges and it represents significant costs to most organizations. A high attrition

reflects poorly on an organizations ability to hold on to its people. The toughest concern for an HR manager is the high attrition rate.

Attrition level can also be more, due to rigid and unpopular HR policies pursued by the corporate. All companies are working day and night to find out a long-term solution of this complex issue. The study of attrition is very important because the excess of it tells about the productivity of the organization. It is obviously difficult for any organization to operate smoothly and to attain its objectives if employees leave the organization. Level of attrition beyond the normal range in any organization can have a direct impact on that organizations effectiveness and efficiency. Most employees leave their work for reasons other than money; they want more meaning in their work. Employees seek opportunities that allow them to use and develop their skills. They often indicate that they want to use their qualities and skills in challenging proper working teamwork led by capable leaders. There are numerous reasons which may drive an employee to quit. Some of them are: career opportunities, environment, psychological satisfaction, unfair practices in organization, stress job & person mismatch etc. Among management-level employees, the key attrition drivers are such as opportunities for management, ability of top management, use of skills and abilities and work/family balance. For professional level employees, the key attrition drivers are concern about coaching and counseling from ones supervisor, clear sense of direction from the company and chance to do interesting and challenging work. Among clerical level employees, the key attrition drivers are concern about type of work, use of skills and abilities and opportunity to learn new skills.

Definition of Attrition: A reduction in the number of employees through retirement, resignation or death is called Attrition. Attrition is also called total turnover or wastage rate.

Definition of Attrition Rate:

The rate of shrinkage in size or number of employees is known as Attrition rate. It is usually expressed in percentage. Types of Attrition Attrition is not bad always if it happens in a controlled manner. Some attrition is always desirable and

necessary for organizational growth and development. The only concern is how organizations differentiate good attrition from bad attrition. Good AttritionLess productive employees voluntarily leaving the organization. This means if the one who have left the organization fall in the category of low performers, the attrition in considered being healthy or good attrition.

Attrition rates can be beneficial in some ways:When certain employees leave, whose continuation of service would have

negatively impacted productivity and profitability of the company, the company is benefited. 9

If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale which will result in excessive manpower costs.

New employees bring new ideas, approaches, abilities & attitudes which can keep the organization from becoming stagnant.

Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways:

It removes bottleneck in the progress of the company It creates space for the entry of new talents It assists in evolving high performance teams Business pressures do not allow the management to over-reward the performers, but when undesirable employees leave the company, the good employees can be given the share that they deserve.

Bad Attrition: In the performance analysis of the ones who have left, if the proportion of high performers leaving is higher, the attrition is bad attrition. Attrition in any form means that a wrong choice was made at the beginning while recruiting. Even good attrition indicates loss as recruitment is a time consuming and costly affair.

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In addition to the above two types, there are-

Market Driven Attrition

Based on the demand for a particular skill- The typical initial reaction by to market driven attrition is to increase wages, offer better benefits, escape the market by relocation or site migration or relax hiring standards.

Workload or Stress Driven Attrition On the actual capacity to perform the work required. This is when there are not enough of the right people. Process Driven Attrition Variables associated with job design and/or the organization. In some industries and organizations there is a belief that attrition has always been there and rigid process is also responsible. Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. Among managementlevel employees, the key attrition drivers are such as opportunities for management, ability of top management, use of skills and abilities and work/family balance. For professional level employees, the key attrition drivers are concern about coaching and counseling from ones supervisor, clear sense of direction from the company and chance to do interesting and challenging work. Among clerical level employees, the key attrition drivers are concern about type of work, use of skills and abilities and opportunity to learn new skills.

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 Higher Pay: The most obvious reason for employees leaving any organization is higher salaries offered by other Organization with better job opportunity. Job or work place is not what they expected: Sometimes the job responsibilities dont come out to be the same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction. Job & person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which mismatches his personality, then he want be able to perform it well and will try to find out reasons to leave the job. Less growth opportunities: No or less learning and growth opportunities in the current job will make candidates job and career stagnant. Only 20% of employees are able to go to senior levels. The remaining 80% of employees look for other organization where they can get opportunities for growth. Lack of appreciationIf the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job. Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in. When employees are happy with their superiors they choose to stay, if not they look for a switch.

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 Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization. If employees feel stressed out due to the workload trusted on them they tend to look for a change. The major stress factors are: -

Work Timings Repetitive Nature of Work Work Load & Pressure to Perform Irritative Customers Travel Time Long Working Hours Insufficient Breaks Health Issues Compensation: Better compensation packages being offered by other companies may attract employees towards themselves. New Job Offer; An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization. Plans for further studies: These days, in many organizations, employees are joining at very young age because of lucrative salaries being offered. But with time, they apply for higher education and try to move on to other organizations or sectors to occupy top positions.

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 Women Workers: The percentage of women workers is very high, around 30%. Generally, women workers leave the organization after marriage to take up their house-hold duties, irregular work hours et al. Even when someone relocates with their spouse or partner, it comes outside the control of any employer. Costs are often broadly categorized as follows:

Recruiting and hiring costs The cost of advertisements; agency costs; employee referral costs; internet posting costs. The cost of the internal recruiter's time to understand the position requirements, develop and implement a sourcing strategy, review candidates backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position. Calculate the cost of the various candidate pre-employment tests to help assess candidates' skills, abilities, aptitude, attitude, values and behaviors.

Training and orientation costs

Calculate the cost of orientation in terms of the new person's salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials.

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Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require 4 - 6 weeks or more of classroom training.

Calculate the cost of the person(s) who conduct the training. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.

Lost Productivity Costs As the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity: Upon completion of whatever training is provided, the employee is contributing at a 25% productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new employees full salary during that time period. During weeks 5 - 12, the employee is contributing at a 50% productivity level. The cost is therefore 50% of full salary during that time period. During weeks 13 - 20, the employee is contributing at a 75% productivity level. The cost is therefore 25% of full salary during that time period. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period.

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New Hire Costs

Calculate the cost of bring the new person on board including the cost to put

the person on the payroll, computer and security passwords and identification cards, telephone hookups, cost of establishing email accounts, or leasing other equipment such as cell phones, automobiles. Calculate the cost of a manager's time spent developing trust and building

confidence in the new employee's work.

Lost Sales Costs

Calculate the revenue per employee by dividing total company revenue by the

average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee. Reduced loyalty and outright defections to competitors .It is clear that there are massive costs associated with attrition or turnover and, while some of these are not visible to the management reporting or budget system, they are none the less real.

The approach to calculate attrition might vary from organization to organization. While a few techniques are common, there are no proven theories. The most commonly used formulae are:

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Total Number of Resigns per month (Whether voluntary or forced) X 100 ------------------------------------------------------------------------------------------------------(Total Number of employees at the beginning of the month+ total number of new joiners - total number of resignations) Total Terminations in a month -----------------------------------------------------------------------------------------------------(Total Head Count at the beginning of the month) + (Total New Hires)

Total No. of employee left X 100 -----------------------------------------------------------------------------------------------------Total No .Of employees present

Number of employee separations-involuntary separations X 100 ----------------------------------------------------------------------------------------------------*Average employee count (*Avg. employee count = January month strength + December month strength)

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 Types of attrition calculation Fresher attrition: The number of freshers who left within one year. It tells you how many are using the company as a springboard. Infant mortality: Percentage of people who left within one year. This indicates the ease with which people adapt to the company. Critical resource attrition: Key men exit. Low performance attrition: Those who left due to poor performance.

OBJECTIVES: 1) To identify the financial strengths & weaknesses of the company. 2) Through the net profit ratio & other profitability ratio, understand the profitability of the company. 3) Evaluating companys performance relating to financial statement analysis. 4) To know the liquidity position of the company with the help of current ratio. 5) To find out the utility of financial ratio in credit analysis & determine the financial capacity of the firm.

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CHAPTER-1
19

PROFILE OF THE COMPANY

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1.1 NAME AND ADDRESS OF THE FIRM

Name Address Phone No. Email Website Industry Company Type

Ayurvet Limited 6th Floor, Sagar Plaza, District Centre, Vikas Marg, Laxmi Nagar, Delhi-110092 011-22455992, 22455993 info@ayurvet.com www.ayurvet.com Pharmaceutical/ Animal Health Care Manufacturing

Table No-1: Corporate Office Address

Address

Health Care Products Plant Village: Katha Post Office Baddi, Tehsil: Nalagarh; District: Solan, Himachal Pradesh, INDIA- 173205

Phone No.

+91-1795-247746, 247690, 247998

Table No-2: Manufacturing and R & D Unit Address

28-5 Km, Panipat-Gohana Road, NH-71 H, Village: Address Chidana, Tehsil: Gohana, District: Sonipat Haryana, INDIA- 123301 21

Phone No.

Phone: +91-1263-278555

Table No-3: Animal Feed Plant Address 1.2 NATURE OF THE ORGANISATION AND ITS BUSINESS Ayurvet Limited, a public limited company, was established on 12th October 1992 as the Veterinary Products division of Dabur India Limited. This was an extension of Dabur's status as a pioneer in the field of herbal medicines and the desire to include the animal population in the gamut of its Healthcare operations. In 2002, Ayurvet Limited branched off from Dabur India Limited and became an independent company, specializing in natural and safe herbal products for animal species. Ayurvet Limited is a premier animal healthcare company specializing in Ayurvedic Veterinary formulations. The products are based on the traditional knowledge of Ayurveda, validated through modern research using technological tools. The company blends ayurveda with modern precision and technology to deliver quality-assured and scientifically-researched formulations for various animal species.

Poultry Feed

Cattle Poultry

Cattle Feed

Pet

Aqua Porcine

Equine

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Figure No- 1: Various Categories of the Products The company has two manufacturing plants, Herbal Animal Healthcare Products Manufacturing Plant at Baddi, Solan, Himachal Pradesh (set up in 2005) and Animal Feed Manufacturing Plant at Chidana, Sonepat, Haryana (set up in 2007). The plant at Baddi is WHO GMP certified, EU GMP compliant and ISO: 9001- 2008 certified. The unit has a modern and well equipped R&D setup which is approved by the Department of Scientific and Industrial Research (DSIR), Govt. of India.

Ayurvet has an India- wide Sales and Distribution network. Operations and activities are divided into: north, south, east and west zones. We work towards customer satisfaction. We seek long-term relationships based on our comprehensive understanding of customer needs. Our dedicated field force is tasked to provide our customers with quality products and services. Globally, Ayurvet Limited is present in more than 30 countries across various zones like South Asia, Middle East, South East Asia, Europe and Africa. Our business partners in Africa and Europe and all the zones in India, individually are contributing more than 5% of the total revenue. The product range focuses on a range of Farm animals as well as Aqua and Companion animals. End users of our products are mainly farmers. To promote Sustainable Agriculture and Animal Husbandry Practices and support technologies which are environment-friendly and affordable, Ayurvet Research Foundation (ARF), a Charitable Trust, was established in 2005. The basic objective of the trust is to conduct research in the areas of Animal Health, Nutrition & Diagnostics 23

and other areas for the welfare of animals and the economic health of the rural community. As a part of the extension services, ARF has initiated a Sambandh programme. This programme, promotes regular interaction with farmers through Kisan Goshthis, the Ayurvet Pashu Jagat radio programme, Rural Entrepreneurship Development Centres and monthly and bi-monthly newsletters in Hindi and English. Sambandh has been a pioneering attempt to improve livestock productivity, increase employability and secure livelihoods for farmers. Over the years, ARF has addressed issues like

education, agriculture and livestock development as well as environment and rural entrepreneurial skills development. In 2010, Ayurvet AGES Pvt. Ltd., a subsidiary company of Ayurvet Ltd., was formed. The acronym AGES stands for Alternative Green Energy Solutions. Ayurvet AGES fosters and promotes ecological and sustainable business growth practices, while maintaining the highest standards of integrity and performance. We adopt an out- of- box approach and develop ecologically superior and economically viable business models. AGES also works towards reducing the gap between innovation and implementation. 1.3 COMPANYS VISION AND MISSION 1.3.1 VISION OF THE COMPANY Dedicated to improve animal health through the wisdom of traditional knowledge & modern research.

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1.3.2 MISSION OF THE COMPANY To be the leader in providing innovative, safe, dependable and environment friendly solutions for Animal Health.

1.3.3 ETHOS OF THE COMPANY To provide EQUAL OPPORTUNITY to our people to realize their full potential. To work as A TEAM for achieving our goals and be transparent in our dealings. To have a GLOBAL APPROACH for providing scientifically proven solutions for the health care need of animals. To dedicate ourselves to achieve the highest level of CUSTOMER SATISFACTION. To work for SUSTAINABLE DEVELOPMENT and be mindful of the safety of the environment, human beings and animals.

1.4 PRODUCT RANGE OF THE COMPANY At Ayurvet, their endeavour is to blend the ancient knowledge of ayurveda with modern technology to deliver quality-assured, scientifically tested products for animal health care. The product portfolio comprises an exclusive range of products for Cattle, Poultry, Pigs, Equines, Aqua and all Companion animals. All products are subjected to rigorous testing through a series of lab and field trials across various Universities and Research labs. Appropriate packaging ensures the retention of properties and ease-of-use. 25

Figure No- 2: Product Range of the Company 1.4.1 CATTLE Cattle rearing have always been the corner stone of Agrarian systems. To serve this segment, Ayurvet has researched and developed an exclusive range of herbal health care products to cater to all the vital needs of livestock. This range of products has been developed to improve the health of livestock and enhance productivity without compromising on safety and sustainability. Various products under Cattle range are:

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AFANIL AYUMIN AYUMIN V 5 CALDHAN V CHARMIL DIAROAK EXAPAR HILAK JANOVA MASTILEP MASTRIP MINTRUS PACHOPLUS PAYAPRO RESTOBAL RUCHAMAX UNISELIT VITADHAN YAKRIFIT

1.4.2 POULTRY The Poultry industry is rapidly transforming itself into a commercial venture from a traditional farming activity. Ayurvet's portfolio of poultry products has been developed keeping in mind the modern Poultry farming practises. The portfolio

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includes products aimed at maximising production and maintaining the natural health of the flock. Various products under Poultry are: AYUCAL D AYUCEE AYUFYTASE 5000 AYUMIN V CHIKIMUNE DIAROAK METHIOREP REPCHOL RESPZZ SALCOCHEK STRESROAK SUPERLIV TOXIROAK VILOCYM VILOCYM Z VITADHAN XLIVPRO

1.4.3 EQUINES Ayurvet has developed a range of Equine products to care for the health of horses and thoroughbreds and enhance performance through the natural way. These products have been developed after years of research and are perfectly natural, safe and without side-effects. The various products are: 28

EQDERM G EQDERM L EQRESP EQSPURT

1.4.4 ANIMAL FEED Recognizing the direct relation between nutrition, health and productivity, Ayurvet entered the promising Animal feed market in 2005. By combining the science of herbals with nutrition, the company hopes to bring out a range of value-added and customised feed and nutrition products to cater to a wide range of animal species. Currently, the portfolio of products include Cattle Feed, Pig Feed and specialty feeds for Buffaloes. Research work is going on to develop Feed products for other species and also on herbal-enriched nutrition products. All products are available in key North Indian states, produced from a recently commissioned state-ofart factory in Chidana, Haryana. The products are: AYURVET UTTAM SUPER AYURVET UTTAM SUPER GOLD AYURVET UTTAM SUPER GOLD BUFFALO SPECIAL AYURVET UTTAM SUPER GOLD DAIRY SPECIAL

1.4.5 OTHER SPECIES Ayurvet offers a complete range for products for Camels, Aqua (Fish, Shrimps and Prawns), Pigs, Pets and other companion animal species. Developed to cater to a wide range of problems facing these animals, the products offer a natural and safe alternative to conventional health care systems. 29

AYUCAL AQ AYUMIN CALOZ CHARMAID CHARMIL DIAROAK EXAPAR LIVJIVAN LOAMGLO NEWCHARM OTOSAF PAYAPRO RESTOBAL RUCHAMAX SPIRUMAX AQ STRESROAK AQ SUPERLIV AQ VITACHARM YAKRIFIT ZEROKEET

1.5 SIZE OF THE ORGANISATION The company has total manpower of more than 350 employees and its turnover in the year 2011-12 was 70.28 crores.

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1.6 ORGANISATION STRUCTURE

Chairman

Managing Director GM Accounts & Finance Sr. Manager Accounts & Finance Legal IT Assistant Manager Assistant Manager GM Human Resources Export Manager GM Sales & Marketing Sales Manager Institutional Sales Head

Assistant Manager

Senior Executive

Senior Executive Executive Human Resources Field Force 200 employees

Executive Finance

Executive Export

1.7 MARKET SHARE AND POSITION OF THE COMPANY The total market size of veterinary pharmaceutical industry is approximately Rs. 1900 crores in India. The top most company in India is Virbac having almost 12% market share followed by Pfizer almost 10% market share. Then Provimi nutrition India has 10% of the total share. Ayurvets share is about Rs. 85.5 crores which is about 4.5% of the total industry. 31

1.8 PRESENT LEADERSHIP Mr. Ashish Jain- GM (Accounts & Finance) Ms. Nisha Mittal- DGM (Accounts & Finance) Mr. Harsh Khanna- Assistant Manager (Human Resources) Dr. Ashish Sachdeva- Deputy Manager (Product) Mr. Rajesh Kumar- Head Institutional Sales Ms. Monika Jain- Manager (Marketing) Ms. Simple Jain- Company Secretary Mr. Purushottam Pathak- Executive IT Ms. Kanchan Chauhan- Sr. Executive (Human Resources)

1.9 SOURCE OF DATA COLLECTION Data has been collected from both the primary as well as secondary sources. Primary Data: Primary data is the data that has not been previously published, i.e., the data is derived from a new or original research study and collected at the source. It is the information that is obtained directly from the first hand sources by means of surveys, observation or experimentation.

Primary Data has been collected through following means: Structured interview Observation Secondary Data: Secondary data is the data that have been already collected by and readily available from other sources. Sources of secondary data include the internet,

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libraries, company reports, newspaper, etc. The data collected is useful as it allows the researcher to see the prevailing thoughts about his/her area of study. Secondary Data has been collected from the following sources: www.ayurvet.com Annual Report of Ayurvet Ltd. Sustainability Report of the company

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CHAPTER-2 SWOT ANALYSIS

2.1 The Porter's Five Forces SWOT Analysis Model The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're 34

considering moving into .With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations. Understanding the Tool: Five forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are. 2. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you. 3. Competitive Rivalry: What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the 35

situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength. 4. Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power. 5. Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

These forces can be neatly brought together in a diagram like the one in figure below:

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Figure No- 3: Porter's Five Forces Model

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2.2 STRENGTHS AND WEAKNESSES OF THE COMPANY 2.2.1 STRENGTHS OF THE COMPANY Products based on traditional knowledge of Ayurveda and validated through modern research. Well established and wide Sales and Distribution network. Specialization in natural and safe herbal products. Certified under WHO-GMP, EU-GMP and ISO: 9001-2008. Globally located in more than 30 countries. Focus on environment friendly products. Good Financial position. Awarded SME 1 rating by Indias leading credit rating agency CRISIL. Self reliant technology for production.

2.2.2 WEAKNESSES OF THE COMPANY Since the company deals in Ayurvedic products only, so the companys range is limited. Lack of resources to compete with MNCs for new drug discovery research and to commercialize molecules on a worldwide basis. Inadequate regulatory standards. Low medical expenditure and healthcare spend in the country. No common goal, each person is working for different objective. Decreasing level of mutual trust between team members, management. Lack of sufficient field staff

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2.3 OPPORTUNITIES AND THREATS OF THE COMPANY 2.3.1 OPPORTUNITIES OF THE COMPANY Significant export potential. Marketing alliances to sell MNCs products in domestic market. High potential to penetrate further in domestic market; to replicate the success of Bihar, AP in other states as well. Niche player in global pharmaceutical R&D. Strong base of scientific as well as technical manpower and also due to pioneering work done in process development. Diversification to related business like herbal extracts, nutraceuticals, allopathic veterinary segment etc. Since the company is present in only 30 countries so niche countries need to be explored.

2.3.2 THREATS OF THE COMPANY Product patent regime poses serious challenge to domestic industry unless it invests in research and development. R&D efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement. Entrants of newer players in highly fragmented market. High promotional cost. New and existing competitors like Indian Herbs, Natural Remedies, Cattle Remedies, etc. Availability and cost of herbs as business volumes grow Different regulatory requirements in different countries 39

2.4 BEST PRACTICES/USPs OF THE COMPANY 2.4.1 HUMAN RESOURCES Establish multi-functional teams to identify best practices and increase employee buy-in for initiatives- To identify its best business practices, Ayurvet Limited brought together 5 top managers and supervisors from all plants and all functions and assigned them to five teams. Together they identified and consolidated the division's best practices. In the course of their best practices identification project, the division developed a set of 88 performance measures falling into five critical management areas. They included financial management, production, quality, transportation, and health and safety. Each job area has a handful of measures to monitor the progress of work efforts. The measures help employees to understand how well they are performing the best practices and how well they are performing relative to their peers in other plants.

2.4.2 FINANCE Ayurvet combines a deep understanding of financial accounting and reporting with a broad knowledge of running industrialized business services for CFOs organization, F&A operations outsourcing, business process transformation, smart technologies, smarter analytics and best practices. In addition, their highly evolved Learning Path enables them to offer clients the right mix of well-tested theoretical expertise and hands-on operational experience. Citrix based applications are used to access remote databases.

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2.4.3 INFORMATION TECHNOLOGY Ayurvets best practices of SAP-ERP baselines package provides a comprehensive and flexible business management response to business needs with built in support for best business practices. Best practices of SAP-ERP cross industry packages provide predefined business scenarios that focus on the areas of customer relationship management, supply chain management and business intelligence.

2.4.4 MARKETING A global approach: Ayurvets Global Ethical Interactions Policy provides a single common, principle-based approach to all their interactions with public officials, healthcare professionals and healthcare organisations, and community organisations worldwide. This means that everyone in Ayurvet, wherever they are located, is required to work to our global standards of ethical sales and marketing practice. Delivering consistently high standards of sales and marketing practice is one of our top priorities and sits at the core of our commitment to driving commercial success responsibly. Our activities centre on making sure that the appropriate information is provided to those who need it to support the safe and effective use of our medicines and enhance patient care.

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2.5 DEVIATIONS/VARIAIONS IN PRACTICES 2.5.1 DEVIATION IN FINANCE According to what we have studied in class room, Capital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings). It is the process of allocating resources for major capital, or investment, expenditures. But in Ayurvet no capital budgeting is done, company simply invest in a project with the mutual decision of the top management without analyzing the project through any technique such as Accounting Rate of Return, Payback Period, Net Present Value, Profitability Index, Internal Rate of Return, Modified Internal Rate of Return, Equivalent Annuity and Real options valuation. The capital budgeting decisions affect the profitability of the firm for a long period; therefore the importance of these decisions is very much crucial. Even a single wrong decision by a firm may endanger the existence of the firm as a profitable firm. There are several factors and considerations which make the capital budgeting decisions as the most important decisions of a finance manager. Thus, the capital budgeting decisions involve a large irreversible commitment of resources i.e., subject to a significant degree of risk. These decisions may have far reaching effects on the profitability of the firm. These decisions therefore require a carefully developed decision making process and strategy based on reliable forecasting system.

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2.5.2 DEVIATION IN OPERATIONS As we have studied in class room, every company must calculate Economic Order Quantity (EOQ) to minimize its cost on inventory and place order according to the EOQ level. However Ayurvet does not calculate EOQ level and simply place order for raw material whenever it is required in different quantities.

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CHAPTER-3 RESEARCH METHODOLOGY

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In Research Methodology mainly Data plays an important role. The Data is divided in two parts: a) Primary Data. b) Secondary Data. Primary Data The data is collected by telephonic interview, Information received through drafting a questionnaire.

Secondary Data Is the data, which is collected from the various books, magazine and material, reports, etc. The data which is stored in the Organization and provide by the HR people are also secondary data. Sample and sampling method Is a smaller representation of the population , it is any number of persons selected to represent the population , according to some rules or plans .ON the basis of sample sampling methods are identified which method to choose generally there are two methods of sampling ie; probability sampling method and non-probability sampling method. The sampling method used in this project report is that clearly specifies the probability or likelihood of inclusion of each and every element or individual in the sample. Thus sampling technique used is the present project report is SIMPLE RANDOM SAMPLING technique . Some features of simple random sampling are as follows-

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The size of the parent population or universe from which the sample is to be taken must be known to the investigator.

Each element or individual must have an equal chance of being included in the subsequent sample.

The desired sample size must be clearly specified. The sampling method used in the present project is Random Sampling Method. In this method each and every individual have chances of being included.

Research methodology portion captures a unique blend of the possible Causes of Attrition , in the industries , corporate houses ,and especially in the insurance sector . In this process , the number of causes or variables which directly or indirectly increases the rate of attrition and leads towards dump of employees turnover debt were sorted out on the basis of those dimensions or causes a well structured questionnaire was prepared named EMPLOYYEE ATTRITION RATING SCALE , employees and by secondary source which included drawing information from the website of AYURVET and also by talking to the existing employees of AYURVET to understand the current problem across the veterinary sector . Sample

PopulationThe well identified and specified group is known as a population. It may be of two types i.e; Finite populationIs one where all the members can be easily counted. Whereas Infinite population

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Is one where size is unlimited and therefore its members cannot be counted. In this report population is finite in nature and population size is 450. SampleIt is the representative of population which holds all the characteristics of population . Sample size of this research report is 65. Out of which it was divided into three parts ie Cases of voluntary resignation - 21 Cases of involuntary absconding -08 Cases of involuntary termination -09 So our sample size is 65 as report is based on the cases of resignation only For the process of collecting data the structed interview was conducted in which all the 13 statements where asked to the to the exited employees and they were asked to reply on the basis of 5- point rating scale ie; LIKERT SCALE and also subjective responses were provided by them in the form of suggestions .after the process of data collection these 13 statements where arranged accordingly on the basis of dimensions.

Salary Issues Management Issue Growth Prospects

17 5 7

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Not Happy

CHAPTER-4 DATA COLLECTION AND PRESENTATION

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A. DATA COLLECTION 4.1 MARKETING 4.1.1 PRODUCT PLANNING PROCESS Product planning is the process of creating a product idea and following through on it until the product is introduced to the market. Product planning entails managing the product throughout its life using various marketing strategies, including product extensions or improvements, increased distribution, price changes and promotions. The product planning process at Ayurvet consists of the following steps: 1. Developing the Product Concept: The first phase of product planning is developing the product concept. Marketing managers usually create ideas for new products by identifying certain problems that consumers must solve or various customer needs. After the product idea is conceived, managers will start planning the dimensions and features of the product. Some small companies will even develop a product mock-up or model. 2. Studying the Market: The next step in the product planning process is studying the competition. Secondary research usually provides details on key competitors and their market share, which is the percent of total sales that they hold in the marketplace.

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3. Marketing Research: The next crucial step is to go for the market research.
Ayurvet considers doing both qualitative and quantitative marketing research for its new product. The company basically conducts prior testing of the product. 4. Product Introduction: If the product is successful, the company then decides to sell the new product on a small scale or regional basis. During this time, the company distributes its products in one or more cities. 5. Product Life Cycle: Product planning must also include managing the product through various stages of its product life cycle. These stages include the introduction, growth, maturity and decline stages. Sales are usually strong during the growth phase, while competition is low. However, continued success of the product will pique the interest of competitors, which will develop products of their own. The introduction of these competitive products may force a small company to lower its price. This low pricing strategy may help prevent the small company from losing market share.

4.1.2 PRICING POLICIES/STRATEGIES Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Following are the various pricing policies/strategies used in Ayurvet: 1. Cost-plus pricing: The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. 2. Skimming: Ayurvet also use skimming as the pricing policy for some of their products. In this, products are sold at higher prices so that fewer sales are needed to break even.

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3. Market-oriented pricing: Here prices are based upon analysis and research compiled from the target market. This means that marketers set prices depending on the results from the research. For instance if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at an above price or below, depending on what the company wants to achieve. 4. Penetration pricing: Penetration pricing includes setting the price low with the goals of attracting customers and gaining market share. The price will be raised later once this market share is gained. 5. Price discrimination: Price discrimination is also used for some products. Price discrimination is basically the practice of setting a different price for the same product in different segments to the market. 6. Premium pricing: Premium pricing is the practice of keeping the price of a product artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the tendency for buyers to assume that expensive products enjoy an exceptional reputation, are more reliable or desirable, or represent exceptional quality and distinction. 7. Contribution margin-based pricing: Contribution margin-based pricing also helps Ayurvet in maximizing the profits derived from an individual product, based on the difference between the product's price and variable costs, and on ones assumptions regarding the relationship between the products price and the number of units that can be sold at that price.

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4.1.3 CHANNEL PLANNING AND MANAGEMENT Channel management is the process by which the company creates formalized programs for selling and servicing customers within a specific channel in a positive way. Very similar to running a small business, you have to know your company, your channel partner's business, and your customer's issues. Sales channels come in many descriptions and shapes. For the purposes of this article, we will focus on selling your product or service using some type of partner organization and not direct selling. 4.2 HRM 4.2.1 HR PLANNING Human Resource (HR) Planning is the most crucial step for any organisation. After jobs have been analysed and the information has been put into a job description and specification, the human resource planning begins. At Ayurvet the HR Planning starts at the time of Annual Budgeting. Every department shares their expected manpower requirement annually after proper evaluation as per the set targeted profits by the management. After receiving the department wise manpower requirement, the HR department evaluates as per the Companys set objectives and goals for the year and then after discussion, managements requirements are freezed. HR Planning helps Ayurvet in the following ways: Determine the number of personnel needed for the future. Predict changes skills needed for different jobs. Determine how many people with the right qualities are needed at what time so that it can attract candidates in time. The information gathered through HR Planning can be used for other HR management function.

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4.2.2 RECRUITMENT AND SELECTION In order to increase efficiency in hiring and retention and to ensure consistency and compliance in the recruitment and selection process, Ayurvet follows the following steps: Step 1: Identify Vacancy and Evaluate Need Step 2: Develop Position Description Step 3: Develop Recruitment Plan Step 4: Select Search Committee Step 5: Post Position and Implement Recruitment Plan Step 6: Review Applicants and Develop Short List Step 7: Conduct Interviews Step 8: Select Hire Step 9: Finalize Recruitment

4.2.3 TRAINING AND DEVELOPMENT Creativity and innovation are pre-requisite for attaining and sustaining success. Emphasis on right-brain functions helps creativity, big-picture thinking and the ability to conceptualize. Training and Development helps to optimize the utilization of human resources. This also helps the employee to achieve organizational and individual goals. Ayurvet focuses on developing talent from within. The training programs are conducted at Gurukul - the Learning Centre. Ayurvet conducts regular training programs to enhance learning through other peoples experiences. Employees are trained on all the latest needs of the business to help them adapt to the ever changing global scenario. Internal and external faculty conducts the training. During the year 2011-2012 a total of 40 hours of training was conducted. 53

Various programs such as Managerial Effectiveness for managerial level staff members, Wellness Workshop, Team Building for Sales Force, Thomas Profiling for HR Team Members, and a number of other Open House workshops were organized throughout the year. Employees are also sent to a number of seminars and conclaves. Some of the seminars attended by team members in the year 2011-12 were: 1. IPO & Pvt Equity Conclave 2. Finance for Non Finance Manager 3. Women Entrepreneurship-Unplugged 4. Risk Management 5. CSR Conclave An array of training & development programs were also organized at the two plants: 1. Safety Training-PPE & Health Hazards 2. Safety in Manual Material Handling 3. Life style Management & FER Practical Refresher 4. Disaster Management 5. ETP Water reuse & recycle 6. WHO-GMP 7. Fire Fighting 8. Electrical Safety 9. Risk Management 54

10. Know Your SOPs and Work Instructions 11. Training Program on Prevention & Management Chemical Accident

4.2.4 EMPLOYEE WELFARE Ayurvet believes in the quality of benefits provided to its employees, which actually play a major role in retention and keeping them engaged or involved in the company. In their endeavor to preserve the Human Capital, various benefits and plans are in place for their well-being. Some benefits are as under: Provident Fund -Provident Fund (PF) is a statutory contribution of 12% of annual basic component by the employer to the PF Department. This is in addition to the employee contribution of 12% of the annual basic salary. The accumulation of this amount provides the employee a fund which he/she may withdraw at the time of financial exigencies in life or at the time of retirement. Accidental/ Hospitalization insurance benefits- An accident can happen any time, so Ayurvet this benefit in order to ensure that the family of the victim does not have to bear the financial burden of medical treatment. Personal Accidental Insurance cover offers a comprehensive coverage at affordable costs. The cover extends to the entire family, including dependent parents and dependent children, with a single policy. At Ayurvet, both Personal Accident Insurance and Hospitalization are covered through distinct policies available, to insure the health, safety and security of the employees. Leave Travel Allowance (LTA) - Ayurvet believes that vacations are essential to reduce stress and keep employees creative, to enhance the quality of life both at professional and personal levels and to help employees to

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maintain a work/life balance. LTA is remuneration provided by an employer to an employee to compensate for the travel expenses incurred for a vacation. Our policies are defined so that this allowance benefits all our employees. Gratuity scheme- Gratuity is another powerful source of benefits received by employees when leaving a company. Ayurvet has carefully invested in the Group Gratuity plan from LIC of India which offers a number of benefits in addition to fulfilling the statutory requirements. Leave encashment- Ayurvet has also implemented the Group Leave Encashment Scheme from LIC of India, offering benefits over and above statutory requirements. Education Loan for further studies- Ayurvet also understands the importance of education and continuous learning. They understand that monetary obligations sometimes restrict an individuals desire to study further. Thus, a subsidy of 25% of the course fee is offered by the management to all its employees. Employees are also given full fee sponsorship for specific course programs which will upgrade their knowledge and skills to the benefit of the Company. House Loan/Car Loan subsidy- Ayurvet believes in providing social security and up-liftment to its employees. This improves morale and the quality of work. Thus, Ayurvet supports its employees in the form of subsidies on Housing and Car loans. Superannuation scheme- Considering that the needs of a family may mushroom in the years after retirement, a group plan of Superannuation has been provided to the employees who voluntarily contribute to this scheme.

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Maternity leave for female employees- According to the Maternity Benefit Act, leave with wages for a certain period, for employees availing of Maternity leave, is mandatory. However, Instead of the statutory requirement of Basic salary for the period, Ayurvet pays the gross salary.

4.3 PRODUCTION AND OPERATIONS 4.3.1 PRODUCTION AND PROCUREMENT PLANNING The Production Planning and Procurement Planning enterprise process area includes the business processes for sales quantity planning and demand management planning. It includes:

Importing strategic sales and profit planning from areas upstream in the enterprise, such as a sales plan from the sales area

Sales and operations planning for long-term planning of product groups and important products.

Forecasting, which uses historical sales and operations figures to propose current planning values

Long-term planning Master production scheduling for medium and long-term demand

management of important A products

Demand management and material requirements planning Master data for these processes

Use Ayurvet uses these planning processes in its enterprise for the following types of business planning:

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Make-to-order planning using the requirements arising directly from a particular sales order

Consumption-based planning with reorder-point procedure and forecasting Market-oriented planning with planned independent requirements determining production and procurement without reference to specific sales orders.

Planning with consumption for managing planned independent requirements that are subsequently offset dynamically against consumption for sales orders received

Variant planning of various kinds, for managing the planning and consumption of variant-rich products

4.3.2 SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It is also defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." Ayurvet believes that they must rely on effective supply chains, or networks, to compete in the global market and networked economy.

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4.3.3 INVENTORY MANAGEMENT Inventory management is the overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. A business's inventory is one of its major assets and represents an investment that is tied up until the item is sold or used in the production of an item that is sold. It also costs money to store, track and insure inventory. Inventories that are mismanaged can create significant financial problems for a business, whether the mismanagement results in an inventory glut or an inventory shortage. Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use. Two common inventory-management strategies are the just-in-time method, where companies plan to receive items as they are needed rather than maintaining high inventory levels, and materials requirement planning, which schedules material deliveries based on sales forecasts.

4.3.4 QUALITY ASSURANCE AND CONTROL Ayurvet is ISO 9001:2008 certified organisation. Its manufacturing plants at Chidana and Baddi are WHO-GMP certified and EU-GMP compliant. Ayurvet also received the Rajiv Gandhi National Quality Commendation Award in 2010 from BIS (Bureau of Indian Standards). The company is also able to maintain SME 1 rating awarded by Indias leading credit rating agency CRISIL. The rating indicates that the

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level of credit worthiness of Ayurvet Ltd, adjudged in relation to other SMEs, is highest.

4.4 FINANCE 4.4.1 Analysis of Balance Sheet Balance Sheet Mar '09 Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Reserves Secured Loans Unsecured Loans Total Debt Deferred tax liabilities Total Liabilities Application Of Funds Gross Block Less: Accumulated Depreciation Net Block Capital Work In Progress Investments Deferred Tax Assets Inventories 3975.55 736.98 3238.57 0.00 1.45 51.25 508.59 4062.23 878.16 3184.07 0.00 1.45 60.29 597.94 4199.02 1031.81 3167.21 20.44 51.73 80.73 843.69 4822.9 901.25 3621.66 0.00 48.73 0.00 677.58 4162.65 982.44 114.05 3066.16 487.04 1232.15 1719.19 199.48 6081.32 3567.49 982.44 0.00 2585.05 989.40 73.07 1062.47 246.14 4876.10 3662.26 982.44 0.00 2679.82 768.24 74.61 842.85 289.79 4794.90 4062.55 1083.20 0.00 2979.35 803.07 70.71 873.78 224.68 5161.01 Mar '10 Mar '11 (Rs. in lacs) Mar '12

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Sundry Debtors Cash and Bank Balances Other Current Assets Total Current Assets Loans and Advances Total Current Assets, Loans &

825.15 718.52 0.00 2052.26 151.64

807.74 328.70 0.00 1734.38 209.54

840.93 179.24 31.18 1895.04 353.57

1023.53 235.83 250.96 2187.90 239.91

2203.92 Advances Current Liabilities Provisions Total Current Liabilities & 501.59 Provisions Net Current Assets Total Assets 1702.33 6081.32 487.61 13.98

1943.92

2248.61

2427.81

529.48 54.09

562.99 210.84

719.11 218.08

583.57

773.83

937.19

1360.35 4876.10

1474.78 4794.90

1490.62 5161.01

Interpretation: Total Share Capital: Total Share Capital is highest in march 2009 if compared in last 4 years than its own decreasing trend till March 2011 as share application money has returned. Total share capital has again increased in 2012 as new shares have been issued. Secured and Unsecured Loans: Secured loans have shown an increasing trend from 2009 to 2012. On the other hand unsecured loans have a decreasing trend which shows the companys willingness of shifting their debt financing from unsecured to secured loans.

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Fixed Assets: Fixed assets of Ayurvet Ltd. are showing good numbers. They have decreasing trend from 2009 to 2011 but again have increased in 2012 as company has purchased bulk of assets.

Inventories: Inventories have shown an increasing trend from 2009 to 2011 but fall again in 2012 as sales in 2012 have jumped up as compared to previous year.

Total Current Assets: Total Current Assets have shown a decreasing trend till 2011 and have increased in 2012. The major increment in the total current assets is driven by sundry debtors in 2012.

Total Current Liabilities: Current liabilities have shown an upward trend from 2009 to 2012 as companys cost of material has rose up.

4.4.2 Analysis of Profit and Loss Statements Profit and Loss Account Mar '09 Income Net Sales Other Income Total Income Expenditure Cost of Materials Manufacturing & Operating 259.11 Expenses Employees Cost 627.86 660.80 776.33 1035.12 228.79 326.58 150 2155.11 2214.08 2643.49 2974.66 4410.73 659.20 5069.93 5000.50 85.06 5085.56 5951.51 190.24 6141.75 6986.90 41.17 7028.07 Mar '10 Mar '11 (Rs. in lacs) Mar '12

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Selling and Admin Expenses Financial Expenses Depreciation Total Expenses PBT Tax PAT

1071.45 225.56 144.45 4483.54 586.38 67.92 518.46

1252.88 171.78 142.70 4671.03 414.53 37.62 376.91

1532.41 108.18 165.28 5552.27 589.48 110.20 479.28

1970.17 6910 171.56 6370.61 657.46 149.63 507.83

Interpretation: Total Income: The net sales as depicted in Profit and Loss Account has an increasing trend from 2009 to 2012 which shows companys improvement in performance. On the other hand, other incomes have very less contribution in group of total income. Total Expenses: The total expenses are primarily driven by cost of materials. All the other expenses like employee cost, selling and administration expenses, etc. have equal influence on the total expenses figure. Profit: Profit is maximum in 2012 which is influenced by large volume of sales. 4.4.3 Analysis of Cash Flow Statements Cash flow Statement Mar ' 09 Net Profit before tax Net cash from operating activities Net cash from/(used) in investing activities 63 586.38 392.40 440.99 Mar ' 10 414.52 595.90 (699.88) Mar ' 11 589.48 495.99 (422.71) (Rs. in lacs) Mar ' 12 657.46 535.63 (266.54)

Net cash used in financing activities Net increase/decrease in cash and equivalent Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

(283.76) 549.63 168.88 718,52

(285.83) (389.81) 718.52 328.70

(222.73) (149.45) 328.70 179.25

(212.50) 56.59 179.24 235.83

Interpretation: The cash flow statement shows that the net profit before tax first decreased in the year 2010 and then increased in the years 2011 and 2012 driven by large volume of sales. The net cash from the operating activities continuously increased from the 2009 to 2010. Then it decreased a bit from 2010 to 2011 and then increased in 2012. This shows the sound position of the firm as well aggressive credit collection measures. The statement shows that net cash from investing activities was positive in 2009 and then became negative in rest three years which means the firm is not enough contributing in investment as companies view is increasing the volume of sales. The net cash used in financing activities is negative in all four years. Neither it is increasing at a very high pace nor is it decreasing. Rather, it is almost stable which depicts that company is not raising further finance. The opening cash and cash equivalents are minimum in the year 2009 and maximum in the year 2010. The Closing cash and cash equivalents maximum in the year 2009 and minimum in the year 2011 shows the firm maintain the maximum liquidity position in the year 2009. 64

The cash and cash equivalents of the firm increased in the year 2012 which shows the high liquidity position of the firm.

4.5 IT Ayurvet runs SAP Business One as Enterprise resource planning (ERP) system which integrates internal and external management of information across an entire organizationembracing finance/accounting, manufacturing, customer relationship management, sales and service, marketing, etc. ERP systems automate this activity with an integrated software application. It facilitates information flow between all business functions inside the organization, and manages connections to outside stakeholders. Ayurvet considers the ERP system as their backbone, and a vital organizational tool because it integrates varied organizational systems, and enables flawless transactions and production. ERP systems can run on a variety of computer hardware and network configurations, typically deploying a database as a repository for information. Ayurvet Limited has 3 separate database Corporate Office, New Delhi; Ayurvet Feed Business (AFB), Chidana and Manufacturing Unit, Baddi. For remote users (manufacturing, sales employees, etc.), Ayurvet is using Citrix Software (Application Virtualization Software). The company has its own firewall system to prevent all those unwanted websites, threats, etc. Web applications are popular due to the ubiquity of web browsers, and the convenience of using a web browser as a client, sometimes called a thin client. The ability to update and maintain web applications without distributing and installing software on potentially thousands of client computers is a key reason for their popularity, as is the inherent support for cross-platform compatibility.

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B. DATA PRESENTATION Employees Attrition Rate in AYURVET

After the detail Analysis of Attrition in context of meaning, Types, Calculation of Attrition rate & impact of Higher Attrition on Organizational growth. Now I am focusing on, why attrition rate is higher in Ayurvet Company Ltd.? Attrition rate across the Departments/ Channels for FY 2011-2012

Total No. of Employees as on 1st April 2009 (Across Location)= 225 Total No. of Exit Cases (Across the Location)=37 Total Attrition Rate Of UP2 Region is 16.44% Major Affected Divisions:

Location Ambala Aurangabad Chidana Cuttak Delhi

Attrition 3 2 4 2 7

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Major Affected Divisions-Attrition

3 Ambala 2 Aurangabad Chidana Cuttak Delhi 4 2

Tenure Wise
0-1 mnt 6.1-9 mnths 1.1-3 mnths 9.1-12 mnths 3.1-6 mnths 12 < mnths

25% 19%

8%

17% 22%

9%

. 67

Nature of exits Mode of exit Involuntary Absconding Termination 8 9 17 Total

Involuntary total Voluntary Resignation

21 21 38

Voluntary total Grand total

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Mode Of Exits

Absconding Termination

Involuntary total

Voluntary Resignation

Now the data is being interpreted on the basis of statement wise and dimension wise , so from here starts the interpretation on basis of statements, data is also represented graphically Statement 1What is the primary reason for leaving the job? Analysis

Prospective view as per classification of each trends.

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7 6 5 4 3 2 1 0 Series1

Statement 2What was the most satisfying about your job? Analysis-

Policies are generally hardcore rule& regulations are partly part of organization rather than the behavior consideration.

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20 18 16 14 12 10 8 6 4 2 0 1 2 Management Policies (+) Management Behaviour (-)

Statement 3Did you receive enough training and support to do your jo Analysis-

The given % is applicable for training oriented programs as a part of their opportunity.

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20

15

10 Series1 5

0 Yes -5 No Sacked

Data of sacked employees are not interpreted.

Statement 4-

Did this company help you to fulfill your career goals? Analysis
Partly yes, because training is basically the enhancement of skills and competency and lack of default crisis, so due to failure of this may lead to decline in the training phenomenon.

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14 12 10 8 6 4 2 0 -2 -4 Yes No Sacked Series1

Statement 5-

Did any company policy or procedure makes your job more difficult or easy? AnalysisPolicy are hardly rules and regulation which an organization can follow but it Makes all job perspective easy.

25

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20 15

Statement 6-

Would you consider working again for this company in future? AnalysisYes working again in this company for future correspondence can make out More profile easy and flexible.

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16 14 12 10 8 6 4 2 0 -2 -4 1 2 3 4 Series1 Series2

Statement 7What would you suggest to management to make our organization a better place? AnalysisTheir main issue quite about higher salary , as salary can increase the conditions of working it as a high profiled company.

10 8 6 4

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Conclusion

CHAPTER-5
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FUCTIONAL ANALYSIS OF THE COMPANY

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The inferences drawn in the earlier chapter are analyzed as follows: 1. Marketing Department: Ayurvet Ltd. is having a clearly stated marketing mix which helps to frame the pricing policies and perform the product related activities. It focuses on its advertisement activities with proper care and attention. The company sells its products through Veterinary Sales Officers (VSOs).The sales agents are also having a process of selling to avoid any confusion and failures. There is a clarified payment plan to be followed by the sales agents which is disclosed to the customers. They are also having a layout to calculate the total price of the units sold to a particular customer. Hence, it is justified that the marketing department is performing all its activities carefully which is good for the growth of the company.

2. HR Department: The Company is having a well established process of HR planning, recruitment and selection, training and development, etc. It is using an effective source mix for Recruitment. Induction programme is given proper attention to make the new hires feel like the member of the Ayurvet family. Training and Performance Appraisal are also considered to be the major part of the organization as the goals of the organization can be achieved efficiently. Ayurvet is also providing all the necessary benefits to its employees and is continuously involved in the activities to maintain Industrial Relationships. So, it can be concluded that the HR department of Ayurvet Ltd. is performing all its major activities with proper attention and having a good base of processes and policies.

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3. Production & Operations Department: The operations department is also functioning as an important part of the organization. As the company is a manufacturing concern so it is the most important part as it attracts the customers. The operations department is providing the basic things to build the properties which make it an important functional area of the organization. 4. Finance Department: The finance department is continuously involved in the activities that are important for the growth of the company. It is the most important part of the organization as it manages its money and ensures the smooth functioning of the organization. 5. IT Department: The IT department is providing communication support to the organization which helps in information sharing. The functions it performs make it the backbone of the entire business. It also helps the company to communicate with people at manufacturing plants at Baddi and Chidana.

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CHAPTER-6 CONCLUSIONS

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One of the biggest asset of any industry or organization is its manpower. As this organization AYURVET deals in veterinary sector , so its main power is manpower to launch new products , introduce to customers and even to attract the customers towards our products . Veterinary sector is facing high attrition rate because the rate at which its loosing its employees is just the double of the rate at which they hire . in todays scenario where companies are fighting to combat global business competitions , and struggling to survive , employee turnover becomes as double.

In todays knowledge economy, managing human resources has been the most difficult task undertaking the project at AYURVET have learned about company induction, attrition and causes of attrition that would not been learned in books , because causes keeps on changing from organization to organization. This is not possible for any organization to vanish the attrition rate for any organization but human resources are taking steps to reduce the attrition rate. The project captures the unique blend of causes of attrition for organizations especially in Veterinary sector with reduction in dumb of employee turnover debt. In the end of the project it lies the main cause of attrition in AYURVET in the form of pie-charts and bar-graphs and I received in very professional manner from. The learning experience I got during my entire project work will really help me in my career throughout. With this from here I am concluding the project report.

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BIBLIOGRAPHY

WEBSITES www.ayurvet.com www.google.com

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