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HIMSON ENGINEERING PVT.LTD.

CHAPTER-1

INTRODUCTION

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HIMSON ENGINEERING PVT.LTD.

1.1 Overview of the company:

Himson Engineering Pvt.Ltd. is the flagship company of the Himson Bhogibhai


Group. It is one of the largest manufacturer of textile machinery in India with the
experience of more than 3 decades.
The engineering activities of the group are carried out under the direct control of
Head-Quarters located at Ashwanikumar Road premises at Surat, India.
Initially, in the year 1978, HIMSON tied up with Earnest Scragg Sons Ltd., UK to
manufacture Draw-Texturising Machines in India. Since then, the strategy has
been to acquire the best available technology from the reputed and innovative
internationally leading companies and upgrade the same with help of the experts
around the world in conjuction with our in-house development experts and
considerably long machine-building experience. This strategy has worked very
well and eventually, made the company successful in its field in India & Abroad.
Today, the company enjoys significant market share of Synthetic Yarn Processing
Machinery in India. (Supplied more than 3000 Draw-Texturising machines) the
fast growth has been sustained on continuous upgradation & design and
manufacturing facilities by installing most modern CNC machining centers,
fabrication units and metal finishing shop in-house together with the latest Design
and Development Center equipped with modern CAD/CAM facilities and latest
state-of-the art designing softwares to achieve highest accuracy and maintaining
stringent quality standards, benchmarked against the best in the world. Himson
Engineering Pvt Ltd is accredited with ISO 9001:2000 Certification. Today,
HIMSON enjoys high reputation for in-house research and technology
developments and an efficient and reliable After-Sales-Services.
In year 1998, HIMSON entered into a technical collaboration with M/s. Teijin
Seiki Textile Machinery Co. Ltd., Japan to manufacture High Speed DrawTexturising Machines with Energy Conserving Short Heaters and Auto Doffing.
Himson Engineering enjoys a very respectful image as supplier of world class
textile machines and is the leader in almost all the products that it manufactures.
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Many of the products are exported to developed as well as developing countries.
The manufacturing facilities are now also offered to the Indian & International
industries, to fully exploit the capacities which has been generates over the years.
In the year 2008, Himson Engineering Pvt Ltd also received a prestigious order
from Alok Industries Ltd, one of the leading textile unit in India for supply of
Auto Doffing Draw Texturising Machine. Himson Engineering Pvt Ltd has
executed this prestigious order for supply of Himson TMT Draw Texturising
Machine Model ATH 12 F/V each with 288 spindles in joint corporation with
world re-known TMT Japan (TMT Machinery , Inc Japan)
This is the 1st time in India Auto Doffing Machines are manufactured and
installed also, this the 1st time in world to supply this machine with 288 spindles

Address :
Level of Office :

Hiralal Cly., A K Road


Head Office

Website :
Industry :

www.himson.com
Garment , Textile, Engineering,
Capital Goods , Machines
Textile Machines, Machineries ,
Instruments
Surat
Gujarat

Sub Industry :
City :
State :

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Pin :
Company Type :
Total Turnover :
No. of Employees :
Sector :

395008
Industry Best
100-250 Crs
501-1000
Private Sector

Business Type :

Exporter / Manufacturer

Year Established

1970

No. Of Employees

50

Export Turnover

Rs 20 Crores

Annual Turnover

20

Bankers
Products Manufacturing and
Exporting

BANK OF BARODA
Yarn processing machinery from
draw texturising machines to
draw twisting machines, air
texturising machines, two for
one twisters for filament yarn, ...

List of Board of Directors


Directors
1. Shri Surajram H. Bachkaniwala
2. Shri Shantilal H. Bachkaniwala
3. Shri Bhogilal H. Bachkaniwala
4. Shri Pannalal H. Bachkaniwala
5. Shri Rajanikant S. Bachkaniwala
6. Shri Dinesh S. Bachkaniwala

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Bankers
Bank of Baroda
Parsi Sheri,
Surat.

Auditors
M/s. Natvarlal Vepari & Co.
Chartered Accountants.

Company Secretary
Mr. Pankaj Savalia.

Registered Office
Hiralal Colony,
Ashwanikumar Road,
Surat- 395008.

Works

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1. Hiralal Colony, A.K. Road, Surat.
2. Borsara Machines, Village Kim
3. G.I.D.C. Pandesara, Surat.
4. G.I.D.C. Ankleshwar
5. Somnath Industrial Estate, Daman
6. Borsara Machine, Village Amil, Silvassa
7. Indo-Nippon Filaments, Karanj, Ta. Mandavi.
8. Silvassa Machines, Silvassa.
9. Ambica Textile Engineers, Pandesara.
10. Palod Machines, Palod.

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CHAPTER-2

MARKETING

&
SALES
DEPARTMENT

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2.1 Basic understanding of marketing and sales :
a. Meaning of marketing and sales:

Market:The common usage of market means a place where goods are bought or sold. In
its strict meaning market need not necessarily mean a place of exchange.

Marketing: -

Marketing is concerned with selling but now a days the concept has enlarged its
meaning. We know that a product is provided with the aim of sale. The aim
producer totally depends on marketing. Without marketing no unit can run. It
covers marketing research, new product development and so many other
important functions.

Marketing is the process of discovering and translating consumer needs and


wants into product and service specifications, creating demand for these products
and services and then in turn expanding this demand.

But, here in Himson Engineering Pvt.Ltd. There is no more need of the


marketing in selling activity of the products because this company has no more
competitors who can reduce the market demand of this companys product.So
here customers come to this company and asks for its products

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b. Differentiate between marketing & sales:
Marketin

Selling

g
1.marketing is a total

1.selling means

system of business

exchange of goods or

activities.

services against

2.marketing is a broadliy

payment of price.
2.selling is a narrowly

defined concept.
3.starting point of

defined concept.
3.starting point is

marketing is the target

factory.

market.
4.focus on customers

4.focus is on product.

needs satisfaction.

c. Detailed structure of marketing department.

CEO

Marketing
Manager

Clark

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2.2 Marketing Environment.
a. concept of target & target customers:
All the people, companies, organizations have directly and indirectly concern
with textile industries.

b. Macro environment:
Following environments are affected to HIMSON PVT.LTD

Legal environment:
Legal environment consist of factors related to

planning,promotion &

regulation of economic activities.It also affects the activities of an organization.It


consists of the following factors:

1. the constitutional framework.its directive principles fundamental rights &


powers of the center & states.

2. Industrial policy regarding investment & financing of industries.

3. policies relating to price controls.

4. Imports & exports policies.

5. Policy related consumer protection.

6. regulation of foreign exchange.

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Technological environment:
Today we live in a fast changing technological environment.It has profound
influence over business activities & its capabitility to compet others,it consists of
the following factors:
1. Sorces of the technology such as R & D department of the company itself.

2. technological environment,phase of development,chances in technology rate


of chnges & R & D activities.

3. Impact of technology on human beings,environmental efferts of technology &


man machine system.

4. communication & infrastructure related technology useful in management.

Economical environment:
Economical environment comprises of factors of production & distribution of
weaith in the nation.generally it is made up of the following factors:

1. Phas of economic development during specific period of time.

2. economic ideology adopted by the nation such as capitalism,socialism or


mixed economy.

3. economic planning,budget etc.

4. Economic policies such as industrial policy,monetary policy,fiscal policy etc.

5. economic indicators like growth rate of GDP,rate of saving rate of capital


formation,industrial production index,stock exchange index,balance of
trade,balance of paymants,per capita income etc.

6. infrastruture facilities like roads railways,ports,banking & insurance


service,supply of electricity,means of communication etc.
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Details of competitors :Today, competition is not only rife but growing more intense every year. The
markets have become so competitive, understanding customers are not longer
enough. Companies must start paying keen attention to their competitors.
Successful companies design and operate systems for gathering continuous
intelligence about competitors.
The major competitors of Himson Textile Engineering Industries Pvt Ltd. are as
under
1.

Barmay (Germany)

2.

Bata (Japan)

3.

Alidhra

4.

Musata
The main objective of each company is to increase its market value.

2.3 consumer & industrial buying behaviour:


a. Meaning of consumer & indusrial buying behavior:
Meaning of consumer buying behavior:
Consumer buying behavior may br as the acts of individuals in obtaining &
using a product or services including the decision processes that precede &
determine these acts.

Meaning of industrial buying behavior:


Induustrial buying behavior is the bu=ying decision making process by which
the formal organization identifies its needs for5 products, raw materials &
services & identifies,evaluates & chooses among alternatives brands &
suppliers with an objectives of sharpening its competitive edge.

b. Design process of both behavior:


Consumer buying behavior process
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Step 1.Problem or need recognition


How do you decide you want to buy a particular product or service? It could be that
your textile machine stops working and you now have to look for a new one, So
you have a problem or a new need. For high value items like a textile machines or
spare parts or other low frequency purchased products this is the process we would
take. However, for impulse low frequency purchases e.g. confectionery the process
is different.

Step 2. Information search


So we have a problem, our textile machine no longer works and we need to buy a
new one. Whats the solution? Yes go out and purchase a new one, but which
brand? Shall we buy the same brand as the one that blew up? Or stay clear of that?
Consumer often go on some form of information search to help them through their
purchase decision. Sources of information could be family, friends, neighbours who
may have the product you have in mind, alternatively you may ask the sales people,
or dealers, or read specialist magazines like What new textile machine ? to help
with their purchase decision. You may even actually examine the product before
you decide to purchase it.

Step 3. Evaluation of different purchase options.


So what textile machine do we purchase? Shall it from different companies of
textile industry Consumers allocate attribute factors to certain products, almost like
a point scoring system which they work out in their mind over which brand to
purchase. This means that consumers know what features from the rivals will
benefit them and they attach different degrees of importance to each attribute. It
could be that the a review the consumer reads on the particular product may have
tipped the balance and that they will purchase that brand.
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Step 4. Purchase decision

Through the evaluation process discussed above consumers will reach their final
purchase decision and they reach the final process of going through the purchase
action e.g. The process of going to the shop to buy the product, which for some
consumers can be as just as rewarding as actually purchasing the product. Purchase
of the product can either be through the store, the web, or over the phone.

Step 5.Post Purchase Behaviour

Ever have doubts about the product after you purchased it? This simply is post
purchase behaviour and research shows that it is a common trait amongst
purchasers of products. Manufacturers of products clearly want recent consumers
to feel proud of their purchase, it is therefore just as important for manufacturers to
advertise for the sake of their recent purchaser so consumers feel comfortable that
they own a product from a strong and reputable organisation. This limits post
purchase behaviour. i.e. You feel reassured that you own the latest advertised
product.

Industrial buying behavior process:


Step 1.Problem or need recognition
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Problem or need is recognized by a result of internal and external stimuli.the
internal stimuli followed by Aalidhra is as follows:

Aalidhra decides to develop new product requiring new machines, equipments, and
materials.

Break down of a machines requiring replacement.

Purchased materials are found unsatisfactory

Aalidhra searches for new supplier.

Step 2.General need description


Once a need is identified the buyer determines the general characteristics of the
needed items. Quality required is also specified. For the standard product in this
there is not so much customer involvement.

Step 3.Product specification


In this stage Aalidhra prescribes the detailed specification of the items required. In
the order to prescribe technical specifications of the item Aalidhra may assign a
product value analsis engineering team to the project.

Step 4.Search of suppliers


After Precribing the specification the aalidhra tries to search out the suppliers or
vendors. Main sources out the suppliers or vendors . main sources of the search of
vendors are trade directories, internet, watching trade advertisement, visit to
industrial exhibition phone to other companies for recommendations etc.

Step 5.Inviting proposals from qualified suppliers


At this stage proposals in the form of sealed tenders are invited from the qualified
suppliers or vendors.

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Step 6. Selection of suppliers
Before selecting a suppliers the buying centre will specify the attributes of desired
suppliers of desired suppliers like production capacity, quality control system,
services after sale, relations with the union, price etc.

Step 7.Determination of order size and placement of an order


After selection of suppliers order size is determination and order containing the
quality specifaction the quality specifactions, price, quated by the suppliers and
negociated by Aalidhra.

Step 8.Performance review and feedback


This stage is important for the suppliers because it is concerned with
reviewing the performance of the suppliers.Generally the buying center
review the performance of the suppliers and obtains feedback from all
department using the suppliers products.

2.4 Product:
a. Meaning of product:
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The product is the most tangible and important and single component of the
marketing programme. Without a product, there is nothing to distribute, nothing to
promote, nothing to price.

To the marketer products are building blocks of a marketing plan. Good products
are key to market success. Product is the vehicle by which a company provides
consumer satisfaction. It is the engine that pulls the rest of the marketing
programme. Products fill in the needs of society. They represent a bundle of
expectations to consumers and society.

A product is anything that can be offered to a market for attention, acquisition, use
or consumption that might satisfy a want or need.

c. Classification of products : The products may be classified into the following categories:

Industrial Products:
Industrial goods are those, which are used for further production of goods or
services, and include capital goods, raw materials, component parts etc. These
are used as input in producing other products.

Consumer Products:
Consumer goods are meant for final consumption by consumers and not for
sale. Himson Pvt. Ltd. is producing industrial goods, which indirectly affects
the consumers.

Product Mix :
Product mix is also called as product assortment which is the set of all product
lines and items that a particular seller offers for sale to buyers.
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A companys product mix has certain width, length, depth and consistency. These
concepts are illustrated for industrial products of Himson Pvt. Ltd.

WIDTH
Draw

L
E
N
G

Knittin

Rappier

Precisi

texturisin

weaving

on cone ng

machin

machine

winder

machine

HDS1500AT
SDS700CR

Two for one

DT-3000
DT-90EN
DT75R

Weavi
machi
ne

CAMB

RAPTEC

ER

H-

RPV-

SPRINT

Jacqu
ard
PK1200

HDS-

Dobb

EX2

HDS-

PKD200

VX2
HDS-TT
HDS-CX

1. Width:
The width of a product refers to how many different product lines the company
carries. The above table shows a product width of 6 lines.
2. Length:
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The length of the product refers to the total number of items in the mix. In the
above table it is 15.
3. Depth:
The depth of a product refers to how many variants are offered of each product in
the line.

4. Consistency:
The consistency of a product refers to how closely related the various product
lines. All the machines are texturising machines in Himson Pvt. Ltd.

d. Product Life Cycle : -

As every being has life, a product has its life. Industrial goods may have a longer
life than consumer goods. When a product idea is commercialized, the product
enters in to the market & competes with the rivals, for making sales & earning
profits. Products, like human being, have length of life. This has been described as
life cycle in human beings & when applied to products which is called as PLC.

As we know that Himson Pvt. Ltd. produces industrial goods & these goods are
used for producing consumer goods. Industrial goods are long term purchasing
decision

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e. Packing and Labeling:


There are mainly two product which are been manufactured in Himson
Engineering pvt. Ltd.And number of sub assembly for manufacturing the main
product are also produced in the company .it means the company.It means the
company contain in house production system.in the surat branch only the number
of sub assembly

are manufactured and transported by the trucks.There are

probably 200 to 255 sub assemblies ,which plays an important role in production
process of texturising machine are been produced and they export these sub
assemblies to the kim plant and other customer according to their order.

Packaging:
The packaging and labeling of the Himson Engineering Pvt.Ltd is very simple
and easy .through it play an very important role for the transportation of the
machine through road route. After making the product Himson group covers the
entire product in plastic. Then after the product is been put in the wooden
boxes. The wooden boxes are also been manufactured in the Himson
engineering pvt .Ltd means company again contain in house production system.

The main objective of packaging the machines are as below:1. It protects the product against the calamities.
2. The degree of damage is been reduced by such type of packaging.
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3. It helps to deliver the product safety to the destination.

Labeling:
The labeling system is used to describe the details of the products which are
been exported to the customers. In Himsion Engineering Pvt. Ltd. Labeling
system is comprehensive. The main objective of labeling is there should be no
mistake while exporting the machineries to the customers means some times to
the wrong order is been transported to the customer. So labeling system reduces
such type of mistakes.

In Himson Engineering Pvt. Ltd. Labeling can be done as below:

Company name and address.

Receivers name and address.

Number of boxes.

Brief details of products in those boxes.

No.of items in each box.

Length,weight and gross weight.

So, in this company, descriptive type of labeling is been used to define the
packed parts.

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f. Brand & Brand equity:
Brand:
Brand means a name,a term,a sign,symbol or design or a combination of these
intended to identify the goods or services of one seller and to differentiate them
from those competitors
A brand is a sellers promise to deliver consistently a specific set of
features,benefits and services to buyers. The best brand convey a warranty of
quality.

Importance of brand:
1. It is easy to identify the product.
2. The brand gives a separate identity to a product.
3. Brand can be a trand mark.
4. Brand gives legal protection.
5. The producers can be identified with the barnd name.
6. A brand can be a symbol of quality.

Brand equity:
A set of assets and liabilities linked to a brand,its name and symbol that add to
or subtract from the value provided by a product or services to a firm and or to
that firms competitors
1. Brand loyalty of customers.
2. Brand name awareness.
3. Brands perceived quality.
4. Brand association in addition to quality perceived.
5. Other proprietary brand assets like patents,trademarks,channel relationships
etc.
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2.5 Pricing:a. Meaning of price:


Price may be defined as the exchange of the goods & services in terms of money.
What you pay is the price for what you get.

There are mainly five customers in India of this company and the price for each
product is generally 1.0 crore to 1.5 crore rs. This company also contains many
customers in abroad countries like Japan, South Africa, Sri Lanka, U.K, Nepal,
Germony etc.Usually this company sets the price of each product around 1.5 crore
to 2.0 crores for the customers of foreign countries.And company set the price for
each product around 1.0 crore to 1.5 crore.For the customers of India.
Pricing decisions have strategic importance in any enterprise. Pricing governs the
very feasibility of any marketing programme because it is the only element in a
marketing mix accounting for demand & sales revenue.\

b. Pricing strategy:

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Himson Pvt. Ltd. uses the following pricing strategies for their different
product:

Penetration pricing:
A low price is designed in the initial stage with a view to capture greater market
share. When the large number of competitors are existing in the market at that
time Himson uses this strategy for pricing.

Skimming pricing:
This pricing strategy is characterized by high initial price of the product at the
time of introduction of the product in the market. Manufacturers aim at the
shortest period, where market conditions are also favorable. The price is
brought down when competitors enter in to the market field.

Pricing decision:

1. No., Himson Pvt. Ltd. Draw Texturising M/C Model, HDS-CX2 Having 264
Spindles

with

inverters,

Non-contact

debtors,

Intermediate

Traverse,

Microprocessor Based Temp. Control, 1-4-1 PU discs, HPS Cradles, Std. Box
Creel and Battery-Back-up system W/O battery.
Rs.__________
The price quoted above is on ex-works Surat, Silvassa basis. Forwarding,
insurance, freight, excise, sales tax, octroy and any other applicable taxes would
be charged extra to customer account at the ruling rate of the time delivery of the
machine.

The price is based on the current foreign exchange rate and custom duty at 25%
on imported components. Any variation in the foreign exchange and custom duty
at the time of clearance of imported components would be customers account.
The price mentioned is also based on the prevailing Govt. Policy and regulation
import controls and on foreign exchange rate and foreign exchange transaction.
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Hence any variation on the same at the time of supply of machine would be to
your account.

Packing: @ 3% will be charged extra.

Delivery:
Within-two weeks after receipt of customers firms orders along with
necessary non-refundable security deposit and clarification on all
technical/commercial points.

Payment:
20% non-refundable security deposit along with customer from order and
remaining 80% against proforma invoice before delivery of the machine

Erection & Commissioning:


Not included in the above prices.

Spare Parts:
No spare parts are included in the above prices.

Validity:
The offer is valid for 60 days only from the quotation date.

This quotation is subject to our General Terms and Conditions of supply. The
prices quoted and deliveries indicated are subject to Force-Majeure Conditions
and final confirmation by them at the time of acceptance of customer firm order
along with necessary advance payment.

2.6 Place:
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a. Meaning of Place:
A channel of distribution means a system consisting of different marketing
intermedieries through which products or services are distributed from the place
of manufacturer to the utilities consumer.

b. Functions of channel of distribution:


1.Collection of information.
2.Search of potential customers.
3.Stimulate demand through advertising.
4.harmonising supply with individual needs.
5.Collection and classification of products.
6.Transportation and storage.
7.Advice and guidance to the consumers.
8.Concession in payment.
9.Undertake business risk.
10.Transfer of ownership rights.

c. Channels of distribution:
Channel of direct sale of goods:Zero level channel
1. Direct sale from the factory.
2. Direct sale through retail shops.
3. Sale through salesmen.
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4. Sale through main order.
5. Sale by telephone.
6. Auction sale.
Channels of indirect sale of goods:one or more level channel
Here well discuss about direct sale from the factory:

Direct from the factory:

In certain cases manufacturer directly sells its product to the consumer from the
factory or place of production. Hough the use of this channel is very limited,the
manufactures of perishable products and food canning products often use this
channel of direct sale from the factory. In certain cases cloth mills also open a
small store in factory and sell cloth to the employees of the mill and also to the
public. Generally small manufactures producing price product items use this
channel.
Advantage of live contact with the consumers,speedy delievery and avoidance of
middlemens profit are the merits there are certain limitations channel.
Himson pvt.ltd. company also uses this channel of distribution.

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2.7 Promotion:
a. Meaning of promotion:
Promotion means a set of efforts made by the company for stimulating the
demand for its product or products without making any alteration in product
mix,price and channel of distribution.

b. Elements of promotion mix:


Promotion mix means a set of tools like advertising,public relations and
publicitu,sales promotion ,personal selling and direct marketing used by the
marketer for the promoting sales by stimulating demand through persuasive
communication.\
1. Advertising.
2. Public relations.
3. Personal selling.
4. Sales promotion.
5. Direct marketing.
Here well discuss about advertising and direct marketing:

Advertising:
advertising can be defined as any paid form of presentation and promotion of
ideas,goods and services by an identified sponsor

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Characteristics of advertising:
1. Non personal form of communication.
2. Wide spread media.
3. Identity of the sponsor.
4. Payment of the price.

Direct marketing:
There are many forms of direct marketing but the main forms are direct
mail,telemarketing,electronic

marketing

etc.they

all

use

persuasive

communication for stimulating demand.

Characteristics of direct marketing:


1. Communication message is non public.
2. The message can be customized to appeal to the addressee person.
3. The communication message can be prepared very quickly for delievery to
a specific person.
4 . There is in teractive communication.

c. Communication process:
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Step 1.Identify the target audience.
Image is the set of beliefs, ideas, and impressions of the target audience about the
company. its product and competitors. Peoples attitude and buying behaviour
toward the product of the company are highly conditioned by the image the
audience hold about the company and its product. Therefore, the first step of the
communicator should be to measure the knowledge of the target audience about
the product.
In the HIMSON target customer are all the people related to the textile industries
Step 2.Determine the communication objectives.
The objectives of communication should be to move the target audience step by
step towards higher states of readiness to buy. It meanes there is a hierarchy or
sequence of communication objectives leading the target audience from cognitive
stage or awareness stage to effective and behavioural stage. This sequence is
Learn Feel Do sequence.
The main objective of the communication is to make inspire the target audience to
buy the product of Himson for their textile production unit.
Step 3.Design the message.
After defining the desired response of the audience the communicator has to
develop an effective message. according to AIDA model the message should gain
attention, create interest, arouse desire and elicit action. The AIDA model suggests
the desirable qualities of any communication message.
Step 4. Select the communication channel.
The communicator after designing and preparing the message
should select efficient channel for that Aalidhra has select Direct
marketing and advertising.

Step 5. establish the total promotion budget.

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Aalidhra established affordable method for the total promotion
budget.

Step 6. Decide on the promotion mix.


Promotion mix consist of advertising,public relations and publicity,
sales promotion, personal selling and direct marketing.
Factors affecting promotion mix to Aalidhra:

Type of product market

Push Vs pull strategy

Buyer readiness stage

Product life cycle

Market rank of the company

Step 7. Measure the promotions results.


Every efforts might have been made for developing effective
communications. Marketing communication is a cistly affair.

Step

8.

Manage

and

co-ordinate

the

intergrated

marketing communication process.


We know that marketing communication includes promotion mix.
Though the things have changed many companies still rely on one
or two communication tools to achieve their communication
objectives.

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2.8 Marketing control:


a. Meaning and importance of marketing control:
Meaning:
Marketing is a process of measuring and evaluating the results of marketing
strategies and plans and taking remedial actions to ensure that marketing
objectives are achieved.

Importance of Marketing control:


1. Control on selling cost.
2. To balance the sales of different products.
3. To maintain regional balance of sales.
4. To control the selling activities of the salesmen.
5. Successful implementation of marketing plans.

CHAPTER-3
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PRODUCTION

DEPARTMENT

Introduction
Definition:

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Production is the process by which row material and other inputs are converted
into finished goods or services so that the utility of inputs is enhance and the
needs of customers are satisfied.

Production management:
Production management refers to the application of management principles to the
production function or process in a factory or on organisation.

3.1

Type of plant layout used:


In the Himson they do not use any particular one plant layout but they use
combine plant layout of following two layout.

1. Product layout
2. Cellular manufacturing layout

3.2 Material handling equipments used:


Himson uses trolly and goods lift to move raw material from one place to another
palce.

Design

development

Item master

Sales order

Design

Rout card

Main planning

3.3 Production planning:


Production planning is basedMRP
on the
customers orders
Process

Work order

Indent

Purchase
order
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.S.O

Planning
P-2

P-1

BOM

Routcard
MRP

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.W.O

Indent
A/c

Labour
IVM
Despatch

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P-3
P-4

P-5

P-7

P-6

P-9
P-8

Raw material

Against W.O.

Finish receipt

to store

P-10

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P-11

P-14

P-15

P-12

P-16

P-13

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3.4 Production scheduling:


a. Scheduling strategies for production process:
there are two types of scheduling:
-Backward scheduling.
-forward scheduling.
AALIDHRA use forward scheduling.
b. Priority control techniques used for scheduling

jobs:

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There are about six to seven priority rules for priority control and they are as
follow
1.
2.
3.
4.
5.
6.
7.

FCFS First come first serve


SPT Shortest processing time
LPT longer processing time
LS - Least slack
CR Critical ratio
EDD Earliest due date
PCO Preferred customer order
Above seven are the different priority control rules which are use for sequencing
scheduling the work
In the Himson Company they use the all of the first rule and that is First Come
First Serve. They give the first priority to those customers who come first.

3.5 Inventory control:


Objectives of carrying inventory

To keep the production process continuously moving, if there is enough


stock of row materials so that the time taken for last moment purchases is

avoided
Some products may require assembling of various spare parts. The
production time for each spare part might be different. semi-finished goods
inventory is maintained to store spare parts taking less production time till

the spare parts with high production time are produce


To be helpful in efficient purchasing, maintenance of optimum stock is

closely connected with a system of inventory control


To get the quantity discount advantage.

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Prices will not remain constant throughout the year; it may fluctuate from
time to time. so to get the advantage of low price it is necessary to keep

inventory.
Purchasing of raw material takes time. Some time is elapsed between placing
an order and receiving it. So to reduce purchasing lead time inventory is

helpful.
To overcome from the shortage problem inventory control is necessary.

b. Calculation of EOQ and Safety stock:


EOQ:
Economic order that quantity ordered at which the total
orderind

costs

and

inventory

carrying

costs

will

be

the

minimum.alternatively it is called as Economic lo size.If orderd


are placed for a relatively small quantity frequently,the company
will

have

to

place

orders

again

and

again

during

year,consequently it will have to incur considerable costs in the


form of transportation cost and clerical expenses.

EOQ

2COD

Ci
Where EOQ=Economic order quantity
Co=Ordering cost
D=Demand
Ci=Inventory carring cost

c. Inventory Classification:
-ABC System
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-VED system
-SFN system
In himson.pvt.ltd,They use VED system to classification of their
inventories.
VED System:
This type of analysis divides items of stock into three categories
that is in the descending order of their criticality. Here,
V= stands for vital items and their stock analsis requires more
attention because out of stock situation will result in stoppage of
production. Thus V items must be stored adequately to ensure
smooth operation of the plant.
E= means essential items. Such items are considered essential
for efficient running of the concern but without these items the
system would not fail. Care must be taken to see that they are
always in stock.
D= stands for desirable items which do not affect the
production immediately but availability of such items will lead to
increase in efficiently and reduction of fatigue

Inventory classification in himson.

Material class
No
01
02
03
04
05
06
07
08

Allu. casting extrusion


Bearings
C.I.Casting
Electrical motors
Electrical item
Electronics item
Finished goods
Finished item

Code
series
A
B
C
J
E
I
F&H
F

w/h
code
22
21/26
22
21
24
25/28
27
21/26

Storage
Floor & rack
Cupboard
Floor & rack
Floor
Floor & rack
Floor & rack
Floor & rack
Floor & rack

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09

General [packing item]

21/26

Floor

10

Hard wares

21/26

Floor & rack

11
12
13

Paints & oils


Semi finished goods
Stationery

H,F, &
Z
P
S
Q

21/26
21/26
21

Floor & rack


Floor & rack
Rack top

14

Steel [gas cut]

22

Floor & rack

15

Steel[raw]

22

Floor & rack

16

tools

21

Cupboard

Received Material from vendor with challan and bill

Material details entered in Register Format No.

F : IW : 04

Verification of Material / Quantity as per Challan.

FLOWCHART OF WORK INWARD


Material identification by tag Format No.

Prepare GRN

F:

F : IW : 02

IW : 03 Cash Inward Note F : IW : 05


IWPrepare
: 01 Inward Note F :Prepare

GRN with material to


inspection
Cash
NoteDept.
with material to concerned Dept.
Inward
Note with material
to inward
concerned

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3.6 Quality control:


a. Objectives of quality control

The main objective of quality control is to satisfy the functional & or aesthetic
needs of end users/customers of goods or services. The other objectives derived
from this main objective are as following:
1. To clearly define top managements commitments towards quality and production.
2. To design the product which has futures as required to satisfy the needs.
3. To keep the features of the product within specified limits as predetermined.
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4. To ensure consistency of quality by measuring and controlling it: there by to
maintain the reliability of the products.
5. To balance the costs of inspection of quality and benefits of quality control.
6. To involve and train employees in quality control activities.
7. To help vendor development by quality control of incoming raw materials and
components.

b. Techniques used for quality control:


The Quality policy of HIMSON TEXTILE ENGINE
ERING IND.PVT.LTD. Shall be.

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We, at Himson Group, are dedicated to continual


improvement of our products and services. Our focus is
customer satisfaction at all times, and striving to exceed his
expectations.
We will always comply with our quality management system
and improve its effectiveness, by establishing performance
objectives for our product and people.

DT. 01/01/2010

Bhogilal H. Bachkaniwala
Managing Director

The above quality policy has been explained to all employees of the organization
through displays, training and suitable method to ensured that Quality policy is
Understood and implemented at all levels of organization. Any new person
joining our organization is made aware of the quality policy. He is also explained
the quality objectives of the organization.

c. Guidlines follow for Quality Control:

1. Certification against QMS ISO-9002


2. 3 D Coordinate Measuring Machine
3. Measuring & Testing Equipments for large size components up to 2000 mm
4. Standard Room for in-house calibration of Measuring & Testing equipments
5. Laser Interferometer for CNC machine Tools Calibration
Helium Leak Detector (Mass Spectrometer)

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Flow chart of material inspection

Material loading on Machine wit

h Route Card, Drg. & Job card

Required Operation done as per Drg. & Route Card

Pass

Inspection

Fail

Fail

Reject

Rework

Surface Treatment

Regrade or Scrap

Required

If

Fail

pass

Store

Inspection
Rework

Reject
Dispatch

Regrade or Scrap

3.7 Cost control:


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a. Classification of various components:

Labour costs:
Satndard time developed by time studies,predetermined time standards or work
sampling,often from the basis for labour cost standards if they work at a normal
place. The standard labor cost for a particular unit of activity is then the

summation of the standard times multiplied by the base labor rate.


Material costs:
The efficient use of material is the concern of much design and value
engineering effort as well as production control effort. Material requirements for a
given product are typically specified on engineering drawings or production

control documents.
Overhead costs:
Some elements of overhead cost,such as building depreciation aere fixed costs
whereas other components such as supervision,maintainance and factory supplies
are often classified as variable V or perhaps semi-variables SV.

3.8 work Study:


It is a method to examine human work, material resources and critical
examination of all factors, which affects the efficiency of the organization. It
includes analysis of method study and time study.

In Himson Pvt. Ltd., there is not any perfect system for analyzing the time
required to do the job by the worker and also do not critically investigate the
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resources. The main reason for it is that they produce according to order received
from the customers.

There are some machines which are automatically controlled i.e. they are
computerized and some machines are manually handled. There is less idle time in
automatic machines because it is totally programmed by computer.

In Himson Pvt. Ltd., at CNC Machine Center one machine is from Feeler
Company of Taiwan. In this machine idle time is zero and it one of the
advantageous matter for Himson Pvt. Ltd.

CHAPTER-4
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HUMAN
RESOURCE
MANAGEMENT

4.1 Introduction:
a. basic introduction about HR department:
Human resource is an integral part of management process which is concerned
with equipping every class of work force working at different level of

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organization with knowledge ,intelligence experience skills values attitudes etc.
with an objective of motivating them for effective and efficient goal achievement.
Human resource department is also very essential part in management of the
Himson Engineering pvt.ltd.. there are number of workers in this company, who
are working with one another with the help of magnificent and decent human
resource system.
They have been achieving the set target and goals since last few years, just
because of their consistent coordination and healthy interaction among the
workers who are working in the Himson Engineering pvt.ltd. They are given
adequate responsibilities from the top management and that is the reason they are
achieving
best result, which helps them in achieving their goals.

b. total numbers of employers & total numbers of branches.


The company has about 1200 employees on its rolls, of which, about 150
(13%) are Management/Executive staff and 150 are technical staff. There are
about 150 ancillary units owned by qualified engineers. This has helped the
company easily absorb the latest technology and adopt the same to meet the global
requirement. There are about 11 sales executives from different cities of the India
and their qualification mostly with textile engineering with MBA.
Following are the branch of HIMSON.:

a. To study organizational structure:

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Marketing
manager

Chairman

Managing
Director

Finance
manager

Chartered
Accounta
nt

HR
manager

Superviso
r

Planing
manager

Superviso
r

Computer
departme
nt

Jobbers

Electronic
Manager

Jobbers

Purchasin
g
Manager

Inspectio
n

Productio
n manger

Inventory
and
storage

Jobbers

Workers

Productio
n
Planners

d. To study the activity of HR manager:


MANAGER:
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A manager is a person who completes his/her task through the available
resources. His/her style should be leadership through demonstration.

manager should be able to manage the matters of the organization effectively &
efficiently.
ACTIVITY OF MANAGER: -

Communication:
It is a process through which an information, idea or opinion is transfered to more
number of persons. It is defined as a process of exchanging the facts, ideas,
opinions, symbols, messages, emotions by two or more persons. It is helpful for
smooth working increasing in the managerial efficiency, decision-making,
maintaining industrial peace, public relation and saving in time to the
organization. In communication following points are important:

Language

Two way communication

Code

Contents of the message

Clarit
Motivation:
Motivation is an urge or tension to move in desired direction or to achieve certain
goal. This is an effective tool for getting critical tasks completed within specified
(desired) period &/or in desired manner.

Decision Making:

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What, when, where, why, by whom & how a specific job or a part of the job is tobe done these are the most of the decisions a manager has to take. Correctness of
the decision depends of on the information & the knowledge the concern manager
is holding.

Co- ordinatination :
Large scale of Himson Engineering Pvt.Ltd recruits a large number of personnel.
They are working on the basis of division of the work and specialization. Here is a
need of synchronizing the different activities being carried out by different
individuals /groups /departments /division.
This synchronizing technique is called co-ordination. The co-ordination is
effectively done through decision-making, communication & motivation.

Development:
This involves development of self as well as the sub-ordinates.
One has to develop both his/her self & sub-ordinates, so that one can take more or
extra responsibilities by empowering own sub-ordinates. This can be the most
beneficial to all i.e. to the organization, to the boss & to the sub-ordinates.
The organization can allot maximum responsibilities to a single reliable manager.
The manager can become capable of taking charge of the areas other than his field
& can widen his scope of promotion.

The sub-ordinates get chances for up-liftment, which can be a great motivation.

4.2 Human resorse planning:


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a. human resource plaaning process:
step 1. clarification of objectives:
HRP begins with clarification of its objectives.well defined objectives provide
direction to personnel efforts and guidelines for making personnel decisions.

Step 2. Estimating the future requirements of human resources:


1. Employment trends.
2. Need for filling the vacancies.
3. development.
4. productivity.

Step 3. Collection of information regarding present human resources:


1.man power inventory.
2.Skills inventory.
3.Human resource audit.
Step 4. To determine job requirements.
Step 5. Estimating human resource supply.
Step 6. Preparation of human resources plans for implementation of
HRP.

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b. Job description &job specification of the various positions in the
organisation.
Job Analysis:
They use different measures for job analysis. Especially for allotment of job,
they emphasis on any of following first three points with the fourth most
important one:
Qualification:
A person should be educationally qualified for the job to be done.
Experience:
A person has earned the capacities of doing job through experience OR
Attitude:
With any one or more of the above three criteria, this one is the most essential
point. An attitude is a status of mind or feeling that includes predisposition to
behave in someway. A tangency or a predisposition to evaluate an object or
symbol of that object in a certain way.

4.3

Recruitment and selection:

Recruitment :
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In Himson Engineering Pvt.Ltd . the process of finding and attracting
capable applicants for employment . The process begins when new recruits
are sought and ends when their applicants are submitted.
Selection :
It is the process of differentiating between applicants with a greater
likelihood of success in a job.

a. Himson pvt.ltd. uses external source of recruitment & its


advertisement:
Advertisement:
Himson pvt.ltd. gives advertisement in different news papers & business
managines and recruit employees.

b. Factors affecting recruitment:

when company required new talent.


when present employees leave the company.
at the time of expansion.
At the time of boom period of product life cycle.

c. selection process:

The process for the recruitment & selection of Himson Engineering Pvt.Ltd is
given below:

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Receiving Application: Screening: Primary Interview: Written Test: Personal Interview: Final Approval: Placement: -

Step 1.Receiving Application:


Himson Engineering Pvt.Ltd receive applications from the prospective candidates.
The main purpose of the application is to obtain information in the applicants'
own presentation regarding his suitability for the employment. In Himson
Engineering Pvt. Ltd . applications are received through the reference of
employees and directors and also with the help of employment service providers.

Step 2.Screening:
In Himson Engineering Pvt.Ltd Screening means critical evaluation of received
applications. After receiving the applications, the next stage is to screening of that
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application. The main object of screening is to abandon further consideration with
the specification of the job. The screening ideas are expected to be favorable to
the most suitable to the job.
Step 3.Primary Interview:
The main objective of primary interview in Himson Engineering Pvt.Ltd is to
short out the unqualified candidate due to lack of certain requirement in education,
age, experience etc. If an applicant is shorted out in the early stage of selection
procedure, the company can save the expenses and time of processing him
through remaining steps of procedure.
In Himson Engineering Pvt.Ltd, they ask the applicants' family background,
history, hobbies, and interest etc. Here in Himson Pvt. Ltd., all the selected
candidates are checked in the both of the stages.
1. Primary
2. Secondary

Step 4.Written Test:


Himson Engineering Pvt.Ltd also take written test for parameters, which includes
logical reasoning, general english, numerical questions, general knowledge,
aptitude test i.e. aptitude is for checking whether the candidate is capable to work
in the field or not and also to check his depth in the relevant field. Communication
skill and presentation skill are checked for that essay writing is also included in
this test.

Step 5.Personal Interview:


After going through written test, in Himson Engineering Pvt.Ltd , they take their
aptitude and attitude test on the basis of their hobbies and other social interest.
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They give more importance to these two points with other relevant questions of
relevant fields.
Step 6.Final Approval:
When all tests, interviews, etc. are over a summary report is prepared and is for
ended to the authority with suggestions for his approval or advice.
Step 7.Placement:
The selected candidate is placed on job for which he/she is selected.

Process of recruitment & selection of Himson Engineering Pvt.Ltd :

In Himson Engineering Pvt Ltd., first of all decided how many number of
personnel are to be contacted and what type of personnel to be contacted.

Then after they decide area from where they will get their employee. They looks
employees at internal recruitment, present employees, employees referral,
professional association, advertisement, campus recruitment, Radio& television
etc.

They starts finding the employees before two months ago from their required
time.

Then after screen out employee and decides whether they are applicable to do the
job or not.

In this step, preliminary interview is to be taken, in this interview general


question is asked and check the capability of the applicant.

Employment interview is to be taken and the applicant who passed all above step
is selected.

4.4

Job is offered to selected applicant through letter of appointment.

Training and development:


Training Process
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Training is a short term process utilizing a systematic and organized procedure by
which non-managerial personnel learn technical knowledge and skill.
Training helps the persons to improve their knowledge and skill. This is self
development process. Training based on learn & teach. Training puts its meaning
powerful when it receives a positive and better feedback from trainees. The
complete system of Himson Engineering Pvt.Ltd..
Need of training in Himson Engineering Pvt.Ltd :

To improve knowledge & skill.


To develop attitude & behaviour.
Reduced cost, accident and mistake.
Increase efficiency
To increase productivity
Imparting information on new technology and methodology.
To maintain industrial relation.

Infrastucture of Himson Engineering Pvt.Ltd for training department :


Whatever the things and materials, facility required for imparting training.

Training room/Seminar room.

Board

Chair

OHP (Over Head Project)

VCR, CD Player

Television

Audio deck karaoke facility.

Automatic slide projector

Computer with multimedia facility

Video projector demonstration for technical guidance.

Picture and feature for illustration

4.5 Performance appraisal system:

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"Performance Appraisal means systematic evaluation of the personality and
performance of each employee by his supervisor or other person trained in the
techniques of performance appraisal."
Himson Engineering Pvt.Ltd does not follow any formal performance appraisal
system. The supervisor himself evaluates his subordinates practically while he is
performing his job.

4.6 Promotion and transfer policies:


Transfer And Promotion of Himson Engineering Pvt.Ltd:
TRANSFER:
"Transfer involves change in a job or job location of an employee without a
change in level of responsibilities or remuneration. A transfer differs from a
promotion."
In Himson Engineering Pvt.Ltd, transfer is done for the following reasons:
1. Opportunity for the employee at the other place.
2. Person is more capable or suitable for other specific job i.e. he can work better
on other place.
3. New post/ vacant post: For the new post or a post is vacant because of any reason a person capable of
taking responsibility can be suited with his work.
4. Person not capable for present job.

They include two types of transfer:


Inter-Unit: It means an employee is transferred within the units.
For example: An employee working in A. K. Road Unit is transferred to
Borsara Unit.
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Inter-Department:
It means an employee is transferred within the departments.
For examples: An employees working in marketing Department of Borsara
machines is transferred to the HRD Department of Borsara machines.

PROMOTION:
"A promotion is a transfer of an employee to a job which pays more money or
one that carries some preferred status."
In Himson Engineering Pvt.Ltd, they give promotion on the basis of merit.
Main advantages of merit are:
1.) Generates greater motivation
2.) Increase Productivity
3.) Recognize and reward the extra knowledge and capacities
4.) Scientific and logical systems for promotion
5.) Increases the profitability and efficiency of an organization.

4.7 Wage and salary:


Wages & Salary Administration of Himson Engineering Pvt.Ltd
Compensation or Remuneration is the reward in monetary terms or in the forms
which can be express or understood in monetary terms payable to or paid to
employees for the services rendered by them to the organisation. It includes such
areas as job evaluation, survey of wage and salaries analysis or relevant
organizational problems, development and maintenance of wage structure,

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establishing rule for administering wages, wage payments, incentives, wage
changes and adjustments etc.
While deciding the structure of wages and salaries, Himson Engineering Pvt Ltd.
follows

Basic wages
Provident fund
Attendance
Special allowances
Overtime
House Rent allowance
Convenience allowance

All above factor are being taken in mind while deciding wages & salaries of
employees. In case of time rate wages, its decided based on attendance of
particular employees. In Himson Engineering Pvt Ltd. wages or salaries will be
paid on 7th day of each month

Incentives & Motivation System of Himson Engineering Pvt.Ltd


Incentives are payment plans which provide encouragement by extra payment
over and above regular time rated remunaration for the extra performance.in
Himson Engineering Pvt.Ltd To get desired or targeted result, himson can provide
extra remunaration for better performance of employees. In other words, an
incentive scheme is a plan or programmes to motive individuals or group
performance.
Himson Engineering

Pvt Ltd. and other company also use certain incentives to

motivate its employees. Motivation means to force a person and involve him to
complete the work in right time and place with help by providing a basic need or
special need to worker. Specially Maslows need hierarchy used to motivate
employees such as basic need, special need, safety need, recognize, identify, self
realization.

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Extra salary is one such type of incentive which is given to those employees who
show sincerity and regularity throughout the year in their work. Salary is the main
factor to motivate employees. Safety need is also used to complete the work.

4.8 Employee welfare activities:


Welfare facility of Himson Engineering Pvt.Ltd:
Welfare facility means the facilities which supports the employees to satisfy their
needs like medical facilities, schools and kinder garden for their children, sports,
canteen, transportation facilities, colony for their housing facility.
In Himson Engineering Pvt.Ltd, they give all these facilities. There are no
recreational facilities but as & when worker required it, they provide or support to
the employees. Leaves are given to them are 26 as per rules within the year.

Safety to employees of Himson Engineering Pvt.Ltd: They provide safety for employees like special dresses, hand gloves and
spectacles while working in the factory etc.
Lift,, fire alert system camera?????,,,,
Insurance scheme:
Himson Engineering Pvt.Ltd, provides insurance schemes is W.C. i.e. Workman
Compensation which is applied to the managerial staff also including insurance.
Trade Union: ~
As per the section 2(B) of the Indian Unions Act of 1920, a trade union is any
combination of persons whether demography or permanent primarily for the
purpose of regularity, the relation between the employees & employers & for
imposing restrictive conditions on the conduct of any trade or business & includes
the federation of two or more principles of trade union.
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There is no trade union in Himson Engineering Pvt.Ltd. They apply open door
policy i.e. to contact directly to the personnel manager or/and director if any
employee has any grievance. As there is no trade union, there is no matter of
collective bargaining. If any employee has any grievance, they solve it by one - to
- one bargaining.

Grievance Handling: -

Grievance means dissatisfaction may happen for any

reasons like promotions, payment of wages and salary, leave, transfer, bonus etc.
This grievance is removed properly or by proper procedure known as grievance
handling procedure.
In Himson Engineering Pvt.Ltd, the grievance handling system is handled by
supervisor. In Himson, grievance handling process subject to following three
steps:
1. The employees are supposed to submit his grievance to verify to his immediate
boss & the supervisor is supposed to give answer or fulfill the grievance within 3
days. If the worker is not satisfied then he can submit his grievance further.
2. In this step the aggrieved workman can submit his grievance in writing to the
senior officer of the department & the officer is required to reply within 7 days.
Here also if the employees are not got proper answered or not satisfied then he can
submit his grievance further.

3. The grievance forward to secretary of the grievance committee or in monthly


meeting of union management by the senior officer of the concerned department.
After finishing these steps, if the workers are not satisfied then they should have
the right to appeal to chairmen & managing director when they may examine the
matter.
They also handle grievances by councilling.

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CHAPTER-5
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FINANCE

DEPARTMENT

Introduction:

When a person thinks to do any typical economic activity or transaction, he must


first think about sources of money as a means of transaction. It is not only
important to economic activity but also to business.
The importance of the finance in the business is similar as the importance of the
spring in the clock. Finance is required from the starting of business until it
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terminates, as a means of the business transaction. Finance is the lifeblood of the
business enterprises. Finance is the first & foremost need of any unit.
Financial management is that managerial activity which is concerned with the
planning & controlling of the firms financial resources as a separate activity
displain. It is of recent origin.
In Himson Pvt. Ltd., there is finance department. It is handled by the top-level
management. At A. K. Road unit, there is a separate finance department like other
departments in the organization. Mr. I. K. Laiwala and Miss Forum are finance
controller. Most of the important financial decisions and some policies are taken
by them.

5.1

Detailed organizational structure of finance


department:

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Finance Manager
(CA)
Assistant
Manager
Chief Accountant

Head Clark

Assistant Clark

5.2 Cost sheet


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A. Unit Cost:

It consist two types of cost.


1.Raw material cost.
2.Labour cost.

1. Raw material cost:a. Raw material cost-discount(if any as per approved purchase order)
b. Excise Duty (paid to central government)
c. Taxes .
d. Freight, transportation and rejection.

2. Labour Cost:a. Outstanding labour cost.


b. Inhouse labour cost includes
I.
II.

Power
Direct labour..m/c operator*wage earning rate.

III.

Indirect labour..wages/salary related involvement in production.

IV.

Consume oil, spares, inserts, electronics in m/c.

V.

Overheads 1. service department, salary, factory expences, repair and


maintenance, adm. overheads etc.

VI.
VII.

Machinery dept. for 1 shift 4.75 per year, for 2 shift 7.42 per year.
Rejection etc.

B. Calculation through computer programme:I.

Raw material cost(item wise)


Inward item wise/ vendor wise, record during period.
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Showing basic rate/excise/taxesas per order.
II.

Assembly cost
Item required in assembly as per planning*cost/item

III.

Labour cost
O/s labour cost as per item wise/vendor wise.

IV.

Rate rs.*operation time/itemwise/machine wiseas per planning department.

5.3 CASH FLOW STATMENT

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For the year
ended 31-32010
amount in
rs.

For the year ended 31-3-2009


amount in rs.

16825726

1642536

11374099
2207643
5049474
24034
45404
18700654

9502365
3400

6857127
4678666

6783689
279762
4870753

11535793

11934213

23990587

3196245

A Cash flow for operating activity


Net profit before tax
&extraordinary items
add

less

Adjustment for
Depreciation
Loss on sale of asset
Previous year adjustments
MAT Credit entitlement
Exchange rate difference
Preliminary expenses

Adjustment for
Other income
Previous year adjustments
Profit on sale of
shares/mutual fund

Operating profit before


working capital changes
add

Adjustment for
Increase in current liability &
provision
Decrease in inventory
Decrease in deposit &
advances
Decrease in sundry debtors

less

Adjustment for
Increase in deposit &
advances
Decrease in current liability
& provision

829336
45404
10380505

11138234
5
78724717
77589705
71277174
227591597

11962598
12334494
3

62724539

156685790

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Increase in inventory

Les
s

156685790

87867010
15059154
9

Cash generated from


operation

94896394

30442851

Provision for tax

3086222

286028

91810173

30728879

6857127
102629101
220220
382181

6783698
6823001
374000
2012461

62170867
102973331
165144198

29962640

55055569

13960480

Net cash from operating activities

B Cash from investing activities


Add

less

Adjustment for
Other income
Sale of investment
Decrease in loan advanced
Decrease in fixed assets
Adjustment for
Purchase of fixed assets
Increase in investment

Net cash used in investing activities

29962640

C Cash flow from financing activities


Add

Adjustment for
Increase in share capital
Increase Share application
money
Increase Secured loans
Increase Unsecured loans

8823100

10734590
19557690

less

Adjustment for
Decrease Share application
money
Decrease Unsecured loans
Decrease Miscellaneous
expense

Net cash used in financing activities

39523739
30000000
69523739

8823100
30000000
2008936

38823100

2008936

19265410

6751480

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3

D Exchange rate difference

D
a+
b+
c+d

24034

829336

17465159

21996109

cash & cash equivalents

90096721

68100612

cash & cash equivalents

107561880

90096721

Cash on hand

1062302

1075050

Balance with bank


- In current account
- In deposit account

44650642
61848936

32084009
56937662

107561880

90096721

Net increase in cash & cash


equivalents

Cash & bank balances

Total

5.4 WORKING CAPITAL MANAGEMENT


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Management of working capital is an extremely important area of financial
management as current assets more than half of the total assets of a business.
Fixed assets through essential for a business organization, does not by itself
produce revenue or income. Fixed assets act with current assets to generate
revenue or income. Therefore, working capital is necessary for utilizing the
productive capacity of fixed capital. For shortage of working capital, the
enterprise would suffer reduction in earnings due to productive capacity remain
unutilized. While, excess working capital leads to extra cost for want of
productive capacity. Thus, the amount of working capital in every enterprise,
whether manufacturing or non-manufacturing, should be neither more or less than
what is actually required.
Working capital in business is just live blood in human body. Optimum and
appropriate movement of blood through the body is extremely necessary to
continue

life.

Like

human

blood,

the

proper

circulation

of

funds

(working/circulating capital) is utmost necessary to continue business. If the


circulation of working capital becomes weak, the businesses can hardly prosper
and service. An enterprise should maintain optimum amount of working capital so
as to carry on the productive and distributive activities smoothly. While, the
determination of optimum level of working capital involves fundamental
decisions to an organizations liquidity, which in turn are influenced by a trade off
between profitability and liquidity.
Thus, goal of working capital management is to manage the firms current assets
and liabilities in such a way that satisfactory level of working capital minted.

a. MANAGEMENT OF CASH: Cash in the important current assets for the operations of the business. Cash is the
basic input needed to keep the business running on continuos basis, it is also the
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ultimate output expected to be realized by selling the service or product
manufactured by the firm. The firm should keep sufficient cash, neither more or
less. Cash shortage will disrupt the firms manufacturing operation while
excessive cash will simply remain idle, without contributing anything towards
firms profitability. Thus, a major function of the financial managers is to maintain
a sound financial position.
Cash management involves following four factors: I.

Ascertainment of the minimum cash balance and controlling the levels of


cash.

II.

Controlling cash in flows

III.

Controlling cash outflows

IV.

Optimum interment of surplus cash.


Cash is required to meet a firms transactions and precautionary needs. A firm
needs cash to make payment for acquisition of resources and services for the
normal conduct of business. It keeps additional funds to meet any emergency
situation. Some firms maintain cash for taking advantages of speculative
changes in price of input and output.

EVALUATION OF CASH MANAGEMENT PERFORMANCE:

The following ratios have been used to evaluate different aspects of cash
management.
(1)

Cash to Current Assets Ratio.

(2)

Cash turnover Ration.

(3)

Average age of Cash.


The figures of cash and Bank Balance, total current assets and current
liabilities for the year 2000-01to 2002-03 are given in the table.

Cash Management in Himson Pvt. Ltd.


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ITEM

2007-08

2008-09

2009-10

1 Cash& Bank Balance

68100612

90096721

107561880

2 Total Current Assets

213016302

261885017

208224149

3 Total Current Liabilities

115106501

231306472

70688700

Ratio (%)
a) Cash to Current Asset
Ratio (1/2)

0.319

3.44

0.51

b) Cash Turnover Ratio


(3/1)

1.69

2.56

4.025

c) Average age of cash


(365/b) days

215.97

142.57

90.68

(Table 8)

Cash Turnover Ratio


4.5

4.02

4
3.5
3

2.56

2.5
Cash turnover (%)
Cash T
2 urnover
1.69Ratio
1.5
1
0.5
0
2007-08 2008-09 2009-10
Year

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Avg. Age of Cash
250
215.97
200
142.57

150
Avg. Age of Cash Avg,
(days)Age of Cash
100

90.68

50
0
2007-08
2 008-09
2 009-10
Year

b. Management OF RECEIVABLE: When firm sell goods for cash, payments are received immediately and therefore
no receivables are created. However when a firm sells goods or services on credit,
payments are received only at a future date and receivables are created. It is an
essential marketing tool in modern business trade. Credit creates receivables,
which the firm is expected to collect in near future. A firm grants credit to its
customers so that its sales are its customers so that its sales are not lost to
competitors.
Account receivable constitutes a significant portion of the total current assets of
the business after inventories. The receivables arising out of credit has three
characteristics.
I.
II.

It involves an element of risk, which should be carefully analyzed.


It is based on economic value. To the buyer, the economic value goods or services
pass immediately at the time of sale, white the seller expects an equivalent value
to be received later on.

III.

It implies futurity. The customers from whom receivables have to collected in


future are called debtors and represents the firms claim or asset.

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HIMSON ENGINEERING PVT.LTD.


This is also called Debtors velocity or Receivable Turnover. A firm sells
goods on credit and cash basis. When firm extends credit to its customers, book
debts are created in firms A/c debtors expected to converted in to cash over short
period and thus included in current assets. It is used to measure liquidity of the
receivables or to find out period over, which receivables remain uncollected.
Receivable turnover Ratio
Total Sales
= ----------------------Average Debtors
Debt collection period
365
= -------------------------Receivable turnover ratio

Receivable Management in Company

Year

Sales

Avg.

Ratio

Debtors

Collection
Period

2007-08

927937551

50998182.5

20.61

117.7

2008-09

464926581

45016883.5

10.33

35.33

2009-10

836956557

9378296.5

89.24

4.09

(Table 7)

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Debtors Turnover Ratio
100

89.24

90
80
70
60
50
Debtors T urnover
Ratio T urnover Ratio
Debtors
40
30
20

20.61
10.33

10
0

2007-082008-092009-10
Year

Debt Collection Period


140
120

117.71

100
80
Debtors T urnover
Ratio
Debt
Collection
P eriod
60
40

35.33

20

4.09

0
2007-082008-092009-10
Year

b. Management Of Inventory: Inventory constitute major portion of current asset of public Ltd. Companies in
India .The manufacturing companies hold inventories in the form of Raw
material, work-in-process and finish good,
There are at least three motives for holding inventories.
(1)

To facilitate smooth production and sales operation (Transaction motive)

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(2) To guard against the risk of unpredictable changes in usage rate and delivery
time (Precautionary Motive)
(3)

To take advantage of price fluctuations. (Speculative Motive)

Inventories represent investment of a firms funds and that is why management of


inventory is necessary for the maximization of the value of the firm. The firm
should therefore consider (a) Costs (b) Return (c) Risk Factors in establishing its
inventory policy.

Evaluation of inventory management performance:


Ratio analysis has been used for making evaluation of Inventory management
performance. As the raw material used in the company is pig iron, proper planning
and handling is required for the purpose of achieving the right quality of output.
The ratios for last three years have been worked out and compared. The various
figures are given in the table.

INVENTORY MANAGEMENT IN HIMSON .


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ITEM

2007-08

2008-09

2009-10

329550.5

331822.5

414866

2 Total
Current
Assets

929189

1086729

1327797

3 Cost of
Good Sold

760872

891349

15207147

1 Average
Inventory

Ratio (%)
a)Inventor
y to Gross
Working
Capital
(1/2)

0.35

0.30

0.31

b)Inventor
y Turnover
(3/1)

2.31

2.69

3.67

c)Inventor
y
Conversion
Period
(365/b)
days

158

136

99

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Inventory Turnover
4

3.67

3.5
3
2.5

2.69
2.31

2
Inventory T urnover
Inventory T urnover
1.5
1
0.5
0
2000-01 2001-02 2002-03
Year

Inventory Conversion Period (days)


180
160
140

158
136

120

99

100
Inventory
T urnoverConversion
Inventory
P eriod (days)
80
60
40
20
0

2000-012001-022002-03
Year

Balance sheet

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SCH
ED
ULE

As at 31-3-

As at 31-3-

As at 31-3-

2008

2009

2010

A Source of funds
1 shareholder's fund
(a) share capital
(b)share application money
(c)reserves & surplus
2 loan funds
(a)secured loans
(b) unsecured loans

A
B

19925000
8898100
125217782

19925000
8898100
123415143

38710600
75000
130537813

C
D

69338485
110410394

108862224
140410394

119596814
110410394

3 deferred tax liability

405687

Total

334195448

B application of funds
1 fixed assets

3911452
401510861

403242074

4
295188592
65713872

372168586
288010300
84158286

435966210
299384398
136581812

55329062

53367814

58390710

121656743
101996365
68100612
44560954
336314674

209523753
90033767
90096721
106911493
496565734

130799036
18756593
107561880
29101568
286219077

115106501
8191872
123298373

231306472
3374246
234680718

70688700
7306229
77994929

213016302

261885017

208224149

136212

20999744

45404

334195448

401510861

403242074

E
36090246A

(a) gross block


(b)less: depreciation
(c )net block
F

2 Investments
current assets, loan &
3 advances
(a)inventories
(b)sundry debtors
(c)cash & bank
(d)deposits, loan & advances
less: current liabilities &
provisions
(a)current liabilities
(b)provisions

4 net current assets


5 miscellaneous expenditure

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HIMSON ENGINEERING PVT.LTD.


Total

Profit and loss account


schedul As at 31-3e
1 Income
(a)sale/income from
operation
(b)other income
(c)increase/(decrease)in
stock

2008

J
K
L

total

As at 31-3-

As at 31-

2009

3-2010

86395655
927937551
7986587

464962581
11654451

7
11535793

17325875

-17030170

-223566
87526878

953250013

459586862

2 Expenditure
material consumed
manufacturing &

71775783
810582496

365998510

57204530

44053624

48800575

23510612

26099212

33716076

16418141

11746634

13754868

45404

45404

45404
81407475

907761183

447943384

45488831
4924719

20607478
12747650

34194030
5994205

4 depreciation & tax


less: depreciation

40564111
5372717

7859828
950365

28199825
11374099

5 profit before tax

35191394

-1642536

16825726

operating expenses
employee's
remuneration &benefits
sales & administrative
expenses
preliminary expenses

N
O
P

written off
total
profit before financial
3 chrg; dep & tax
financial expenses

profit before

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less: provision for
taxation
current income tax
deferred tax
fringe benefit tax

4516772
189820
213655

-405687
286028

6 profit after taxation


add: balance brought

30271147

-1522877

9828053
10856509

forward
less: previous year

5043589

110367730

561451

279762

-2207643

adjustment
add: MAT credit
entitlement
balance carried to

3086222
3911452

5049474
12565026

balance sheet

34753285

108565091

Common size statement


Schedul
e

As at 313-2008

As at 313-2009

As at 313-2010

A Source of funds
1 shareholder's fund
(a) share capital
(b)share application money
(c)reserves & surplus

2 loan funds
(a)secured loans
(b) unsecured loans

5.962
2.662
37.468

4.962
2.216
30.737

9.599
0.0185
32.372

C
D

20.747
33.037

27.113
34.970

29.658
27.380

100

0.970
100

3 deferred tax liability

0.121
100

total
B application of funds
1 fixed assets

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(a) gross block
(b)less: depreciation
(c )net block
2 Investments

3 current assets,loan & advances


(a)inventories
(b)sundery debtors
(c)cash & bank
(d)deposits,loan & advances

less:cureent liabilities &


provisions
(a)cureent liabilities
(b)provisions

107.991
88.328
19.663

92.692
71.731
20.960

108.115
74.244
33.870

16.555

13.291

14.480

36.402
30.519
20.377
13.333
100.634

52.183
22.423
22.439
26.627
123.674

32.436
4.651
26.674
7.216
70.979

34.442
2.451
36.894

57.609
0.840
58.449

17.530
1.811
19.341

63.740

65.224

51.637

0.040

5.230

0.011

100

100

100

4 net current assets


I

5 miscellaneous expenditure
total

ANALYSIS THROUGH RATIOS: The ratio analysis provides guides and clues especially in sporting
trends towards better or poorer performance and in finding out
significant deviation for any average or relatively applicable standards.
The following are the important ratios to measure the current financial
status

1. Ratios relating to liquidity of working capital: Liquidity ratios are used to measure the ability of firm to pay its
maturing obligation in time. This ratio helpful for both short-term
creditors and internal management of the firm. The following are types
of ratios relating to liquidity of working capital.
A.REVENUE STATMENT RATIO
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a. gross profit ratio
G.P
= -------------------net sales

*100

2007-08
360902464
= -------------------927937551

*100

=38.89
2008-09
372168586
= -------------------464926581

*100

=80.04
2009-10
435966210
= -------------------836956557

*100

=52.08

Interpretation: In the year 2006-2007 the G.P ratio is low, so it indicates that the cost of sale is high or
that the purchasing is inefficient. In the year 2007-2008 and 2008-2009 these ratio is consequently
increasing.

b.NET PROFIT RATIO


N.P.
= -------------------Net Sales

*100

2007-08
65713872
= -------------------927937551
=7.08

*100

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2008-09
84158286

*100

= -------------------464926581
=18.10
2009-10
136581812
-------------------836956557

*100

=16.31
Interpretation: This ratio is used to measure the overall profitability. It is generally fluctuating and very
less. Managers have to try to increase it.

c.operating ratio
=

COGS + Operating
--------------------

*100

Net Sales
COGS = opening stock + purchase closing stock
2007-08
=

810528496+73622671
-------------------927937551

*100

=95.28

2008-09
=

356998510+55800258
--------------------

*100

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464926581
=88.78
2009-10
=

717757831+62555443
-------------------836956557

*100

=93.23
Interpretation: This ratio shows the efficiency of the management. The higher the ratio, the less will be
the margin available to proprietors.

d.expenses ratio
1.administrative ratio

Administrative expenses
=

*100

-------------------Net Sales

2007-08
16418141
= -------------------464926581

*100

=3.53
2008-09
11746634
= -------------------464926581

*100

=2.526
2009-10
13754868

*100

= --------------------

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HIMSON ENGINEERING PVT.LTD.


836956557
=1.64
Interpretation: This ratio reveals the relation of different expenses to net sales. In this ratio the lower the
ratio, the greater the profit. So if company wants to increase the profit it has to try make to lower
expenditure.

2.financial expenses ratio


Financial expenses
= ------------------------------Net Sales

*100

2007-08
4924719
= -------------------927937551

*100

=0.53

2008-09
12747650
= -------------------464926581

*100

=2.74
2009-10
5994205
= -------------------836956557

*100

=0.716

3.Current Ratio: It is most com

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mon measure for measuring liquidity. It is also called Working Capital
Ratio. It expresses relationship between current assets & current
liabilities.
Current assets
= -------------------Current liabilities
2007-08
213016302
= -------------------115106501
=1.85
2008-09
261885017
= -------------------231306472
=1.132
2009-10
208224149
= -------------------70688700
=2.94
The acceptable norms for this ratio is 2:1 considering this it can be said
that company has maintained sound ratio over three year
Interpretation: Current ratio is increasing year by its 1.08 in year 2006 and increases by 0.18 in year 2007
i.e. 0.90 which increases by 0.34 in 2008 i.e. 1.24.
It is satisfactory for the company.

4.liquidity ratio
Liquid assets
= -------------------liquid liabilities
2007-08
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2007-08
=

213016302 - 95947064
-------------------115106501
=1.01

2008-09
261885017 195879321
=
-------------------231306472
=0.285

2009-10
208224149 125253893
-------------------70688700

=
=1.173

Interpretation: Its optimum ratio is 1:1. In the year 2009 its liquidity position is improved.

e.propritary ratio
Share holders fund
= -------------------Total assets

2007-08
154040882
= -------------------334195448
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=0.40
2008-09
152238243
= -------------------401510861
=.379

2009-10
169323413
= -------------------403242074
=0.4199
Interpretation: This ratio below 50% alarming for the creditors since they may have to lose heavily in the
event of factorys liquidation on account of heavy losses.
However company recovered its ratio in year 2009.

f.debt-equity ratio
Long term debts
= -------------------Share holders fund
2007-08
78420987
= -------------------154040882
=0.50
2008-09
90033767
= -------------------152238243
=0.59
2009-10
18756593
= -------------------169323413
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HIMSON ENGINEERING PVT.LTD.


=0.110
Interpretation: Higher the ratio means that outside creditors have a large
claim than the owner of the business. In the 2009 ratio is somewhat
reduced.
g.return on shareholder ratio
Net profit
= -------------------Share holders fund

*100

2007-08
65713872
= -------------------154040882

*100

=42.66
2008-09
84158286
= -------------------152238243

*100

=55.28
2009-10
136581812
= -------------------169323413

*100

=80.66
h. Debtors Turnover Ratio: This ratio shows the period of which receivable remain uncollective.
The ratio is doubled in 2002-03 as compared to 2000-01. So serious
steps should be taken to reduce the collection period though sales
increase.
=

Debtors + Bills receivable


-------------------Net credit sales

*365

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HIMSON ENGINEERING PVT.LTD.

2007-08
78420987
= -------------------927937551

*365

=30.846
2008-09
90033767
= -------------------464926581

*365

= 70.682
2009-10
107561880
= -------------------836956557
=46.908

*365

Interpretation: Higher the number of collection days more unsatisfactory for the company.

h.total assets turnover ratio


Sales
= -------------------Assets

2007-08
927937551
= -------------------334195448
=2.776

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HIMSON ENGINEERING PVT.LTD.


2008-09
464926581
= -------------------401501861
=1.157

2009-10
839656557
= -------------------403242074
=2.082

There are some job qualifications and experience which are required for- some posts or
designations. So here the appropriate and minimum job qualification and experience for the
appropiriate designations is given below
:

Conclusion: -

During my industrial training at Himson Textile Engineering Industries Private Ltd., I found
that there is co-operative managerial staff & workers & also good & efficient management
in each & every department & workers are fully satisfied with their management because
the main purpose of Himson is to achieve their goals involving each & every employee.
Since its establishment, it has been profit-making organization.

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HIMSON ENGINEERING PVT.LTD.


In India during 1992-1995 they had monopoly in texturising
manufacturing which gives benefit to them today also. The end
customer of Himson can also earn good profit by using their
machineries.

Company Profiles

Himson Textile Engineering Industries Pvt Ltd. is the flagship


company of the Rs. 4.0 Billion Himson group. About 50 years ago,
Himson started its activities with only few looms to manufacture
quality fabrics. Since then the group activities have grown from
strength to strength. Firstly Himson concentrated on expansion in
the loom shed and subsequently dyeing and finishing houses were
added for further growth through integration. For diversification of
the product, further lace and embroidery units were established.
Till this time growth was slow and steady with focus only on textile.

[1970] Onwards

In the 1970, the main focus was moves towards high growth.
At this time, the company saw the opportunity for manufacturing
synthetic yarn, processing machineries. The market for these
products was large but untapped. The seeds for these were shown
with the commencement of manufacturing of up twisting and
rewinding machines and Himson Textile Engineering Company Ltd.
came in to being.

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HIMSON ENGINEERING PVT.LTD.


[1978] TIE UP WITH EARNEWST SCAGG.

In 1978, the company came on the fast track. But the real
momentum to growth was provided in 1978, when Himson Textile
Engineering Company Ltd. tied up with Earnest Scragg Sow Ltd.,
U.K. to manufacture draw texturising machines in India. Then, the
company satisfied the local requirements by the way of getting
best technology which was available in abroad. This strategy has
been performing well and has made the company an undisputed
leader in synthetics yarn processing machinery. This has been
achieved by capturing almost 85% market share in spite of big
competition from leaders. Synthetics yarn-processing machinery
has been accepted leadership by leading POY manufactures by
placing large quantity of machine orders. Himson Textile
Engineering Company Ltd. provides efficient and prompt after sale
service to the customers so that Himson Textile Engineering
Industries Pvt Ltd. also enjoys high reputation for in house
research
and
technology
developments.
Himson
Textile
Engineering Company Ltd. has captured more than 70% of the
domestic market share to supply synthetics yarn machinery.

[1997] TURNOVER TOUCHES Rs. 3 BILLION

The turn over of Himson Textile Engineering Industries Pvt


Ltd.
1974

1989-90

4.0 Billion (the group of company)

1996-97

3.0 Billion (Himson Textile Engineering

6.0 Millions

Industries Pvt Ltd. )


2001-02

_________ (Himson Textile Engineering


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HIMSON ENGINEERING PVT.LTD.


Industries Pvt Ltd. )

There are different type of machines are being used to


manufacture a wide range of yarn processing machinery. There
Product Range are from draw twisting machines to draw twisting
machines, air texturising machines, two for one twister for filament
yarn, Automatic shuttle changing looms, Rapier Looms and High
speed circular knitting machines. Ancillary units manufacture
precision spindle, high quality ceramic guides/components and
heater for DTY/DT machines, PU discs, silk yarn processing
machines and jute looms. Roughly 2.3% of total turnover stock is
remain in the company every year.

[1998] TIE UP WITH M/s. TEINJIN SEIKI Co. LTD., JAPAN:-

In 1998, Himson has entered into a technical collaboration


with M/s Seiki Textile Machinery Co. Ltd, Japan to manufacture
high-speed draw texturising machines with energy conserving
short heater and auto doffing.

Himson Textile Engineering Industries Pvt Ltd. enter into


collaboration with M/s. Camber International of U.K. to
manufacture high speed circular knitting machines and creating
the market demands.

Himson Group- A Success Story

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HIMSON ENGINEERING PVT.LTD.


1937
1950

to Birth of group by weaving activities. Steady


expansion to a larger area with increased loom
age

1954

Nylon filament weaving

1955
1970

to Growth as a leading man made fiber/filament


fabric weaving operations Nylon filaments
(1966), crimping the beginning of synthetics
yarn processing.

1974

Start to Manufacture of twisting & rewinding


machinery

1977

Import substitution award by government of


India for indigenous machinery development.

1978

Collaboration with M/s. Earnest Scragg Ltd., U.K.


for manufacturing of crimping/ texturising
machinery in India.

1979

First draw twisting machinery


leading synthetic filament plant.

1982

Himson ceramics in collaboration with Unilator


Ltd., U.K.

1983/84

Collaboration with Fadis S.P.A., Italy for precision


cone winders.

1985/86

Collaboration with Kukje Machinery Company


Ltd., South Korea for shuttle changing looms.

1987

Collaboration with Teijin Seiki Company Ltd.,


Japan for draw twisting machinery.

1988

In house research and development center at


Kim Gujarat State.

1989/90

Collaboration with Heating elements Ltd., U.K.


heaters for texturising and draw twisting.

delivered

to

Competencies requirement of personnel


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HIMSON ENGINEERING PVT.LTD.

Sr

Designation

no

Job qualifications &

skill

Experience

Manger

Bachelor of
engineering with 5
years works
experience.ORdiploma in
mechanical
engineering with 8
years works
experience. OR i.T.i
with 10 years works
experience.

Over all management of


department. Good
communication skill.
Awareness of department
activity leadership

Assistant
works
manager

Bachelor of
mechanical
engineering with 2
years work
experience. OR
diploma in
mechanical
engineering with 6
years works
experience. OR I.T.I
with 10 years works
experience.

Leader ship knowledge of


problem solving technique
Knowledge of MRP system

Maintenance Bachelor of
in charge
mechanical
engineering with 4
years works

Knowledge of machine
tools. Capable to maintain
the machines in good
working condition. Capab

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HIMSON ENGINEERING PVT.LTD.


experience. OR
diploma in
mechanical
engineering with 8
years works
experience. OR I.T.I
with 10 years works
experience.

to co-ordinate with
production dept.

Purchase
officer

Bachelor of
mechanical
engineering OR
diploma in
engineering

Capable to co-ordinate wi
planning department goo
communication and
negotiation skiil knowledg
of MRP system. Marketing
skill.

Stores,
inward and
dispatch in
charge.

Graduate in any
faculty with 3-years
works experience

Knowledge of MRP system


Know how to material
handling &
preservationtechnique.

Sr.

Designation

Job qualifications & experience

Skill

Planning

Graduate in any faculty with 5 years work

Incharge

Experience.

Knowledge of MRP
system. Good coordination skill.

Document control
incharge

Diploma in mechanical

NO.
6

engineering

Detail knowledge of
documents.

Knowledge of compu
operating.
8

Production

Bachelor of mechanical engineering OR

Engineer

Diploma in mechanical engineering.

Capable to handle
workers

Knowledge of tooling
machines. Knowledg
MRP system

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HIMSON ENGINEERING PVT.LTD.


9

Quality control

Bachelor of mechanical engineering OR

Knowledge of measu

Engineer

Diploma in mechanical engineering

Instruments. Analyz
QC data for continua
improvement purpo

Capable to co-ordina
with production
department.
10

Maintenance
Engineer

11

Supervisor

Diploma in mechanical / electrical


electronic engineering

I.T.I

Knowledge of machi
tools. Capable to
maintain the machin
in good working
conditions.
Capable to handle
workers

Knowledge of tooling
machines & inst.
Knowledge of MRP
system.
12.

Maintenance

I.T.I with 3 years works experience

Knowledge of machi
tools. Capable to
maintain the machin
in good working
condition.

I.T.I OR 2 years works experience

Knowledge of measu
instruments.

Supervisor

13

Quality control
Inspector

Capable to read
engineering drawing
14.

Clerks

S.S.C

Knowledge of compu

Operating know how


documents related t
departments.
15.

Maintenance

I.T.I OR 1 years works experience.

Capable to maintain
machines in good
working condition.

16

Operator

I.T.I OR 2 years works experience

Knowledge of tooling
machines & instrum

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HIMSON ENGINEERING PVT.LTD.

Payment to Employees: Current Year


(Rs.
000s)
Salaries &
Wages
Contribution to P.F., F.P.F.
& Labour Welfare
Expenses

Previous Year

in (Rs. in 000s)

39,106

31,222

1977

1677

1183

802

3251

2341

255

496

1183

---

856

767

Leave With Pay


Bonus

Gratuity
Exgratia &
Production
Incentives/Utility
Service

Time Keeping System: ~


Time keeping system has been introduced to check up the entry & existence of the workers
and staff members in the organization. Wages, salaries, leaves of employees are calculated
on the basis of time keeping system.

Himson Pvt. Ltd. at A. K. Road follows both types of the time


keeping system viz., card punching and muster roll. The card
punching system is for workers and muster roll system is for
managerial staff.
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HIMSON ENGINEERING PVT.LTD.

Muster roll is a system in which the managerial staff has to


maintain the date and time of their arrival as well as
departure. Company has one time keeping officer who works
after staff and workers.
In Himson Pvt. Ltd. at Borsara - Kim, card punching system is
for time keeping in which when the employee enter that time
is noted and also time of leaving is noted.
There are two types of cards:
1.) Green cards for staff.

2.) Red cards for workman.


This system is not applied to the G.M., M.D. and Directors. In
this industry there are three shifts in production department.
=> KAI-ZEN: -

It is a combination of two words; one is KAI & second is ZEN.


KAI-means change in the present work habits & ZEN- means
better than before. Through this, they develop habit of
changing them & their department for betterment.
=> Suggestions Schems: -

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HIMSON ENGINEERING PVT.LTD.


In Suggestion scheme any member of the organization can
offer to give their best suggestion for the development of the
organization and employee. After this management studies
these suggestions and use it for the benefit of the
organization. Suggestion can be technical or commercial. Then
reward and award are given to the best suggestions.

=> Value Engineering (For technical Staff): -

Value engineering is one of the techniques of increase in


productivity of the organization. In this method value of the
product remain same by decreasing the cost.

Cost means the monetary value of the product, which should be decrease without
compromising with the function of the product.

=> Achievement Sharing: -

Achievement sharing means to appreciate the person who has


got some special achievement in the particular field than
others. This appreciation gives an encouragement to the
employee so that he/she gets motivated and more work
efficiently in the organization, which benefits to both the
organization and employees.

=> Group Competition: -

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HIMSON ENGINEERING PVT.LTD.


This is one of the best tool for increasing productivity. Here two
or more groups working in a common field are motivated to
compete with each other for better efficiency & capacities.
After a specific period winning team is rewarded with attractive
awards.

Description/Specification : * Most suitable for producing precision wound packages. * Ideally suitable for dyed
and/ orgrey Nylon, Polyester, Polypropylene and other filament yarns. * Feed
packages of cones, cheese, dye packges, cops and twisted yarn packages. * Highly
precise traverse boxes gives winding speed up to 700 mts/min. * Anti pattering and
ribbon breaking mechanism for producing best quality packages. * Gate tensioners
for uniform tensioning. * Take up package weight up to 2 kgs. * Can adopt
intermingling jets for producing assembly wound yarns up to 3 ply. * Lick rollers
type oiling system. * Sturdy and robust machine structure gives vibration free
operation.

Company Name :

State of the art individual shaft driven inverter controlled two for one machine series. All
parameters are settable through MMI making operations of the machine overly simplified.
Precision control of all parameters give excellent control over entire machine operation giving
world-class yarn quality. * Equipped with best quality spindles. * Most suitable for producing
low & medium twist yarn of polyester, Nylon, Polypropylene and other filament. *
Adjustment ceramic overfeed roller speed for variety of yarn and twist range. * Considerable
Description/Specificatio
savings in power and labour cost due to its well designed drive arrangement and ergonomic
n : layout. * Individual Taper Mechanism gives precise build packages. * Sturdy and robust
machine structure gives vibration free operation.

We offer quality knittings machines that provide excellent stitch and finish. Variety of
knitwear's with innumerable pattern can be produced using these machines. These machines
are fully automated and are designed for perfect accuracy. Fitted with adjustable drives for
speed control, our range of knitting machines are available with variety of optional
Description/Specificatio accessories. Standard Features : * Electronic needle fault detection * Hand Rack unit *
n : Uniwave element + cam lubrication * Three sets of inch 'stop' start buttons * Safety door
switch Timed internal needle + sinker blower system * Digitally controlled AC drive *
Bottom blower and top fans (Lint removal) * Collective stitch cam adjustment * Digital
display unit featuring : Run speed display, roll size stop, shift counter with totalizing and preset readout.
Company Name :

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HIMSON ENGINEERING PVT.LTD.


Description/Specification : A state of the art cam driven, dwell sley, high speed weaving machine with an
unequaled techno-economic feasibility to get the best of everything in the simplest
way the result of many efforts. Thanks to its well conceived simple, state of art
ergonomic design which guarantees sustained quality & flexibility for weaving Textile
articles like shirtings, Dress Materials, Furnishing, Fabrics or any other fashion
fabrics made not only from Cotton, Wool, Man made Fiber & their blends but also
from the delicate Silk, Metallic yarn, Fancy yarn etc. Yarn Types & Counts Range *
Spun yarn of Natural & Man-made Fibre-Nm 200-3 (Ne : 120-1:8) * Filament yarn
continuous or Texturized 20 den-2000 den. * Various types of Blended, Metallic
(Lumex), Glass fibers, Jute & Fancy yarns. * The superior metallurgical construction
with steel side frames & cross members ensure the smooth & reliable operation
without any vibrations which can be handled by even unskilled or conventional loom
operator. It offers shed formation possibilities by, Cam motion, Dobby (16-24 jacks)
or Jacquard shedding system.
Description/Specification : A state of the art cam driven, dwell sley, high speed weaving machine with an
unequaled techno-economic feasibility to get the best of everything in the simplest
way the result of many efforts. Thanks to its well conceived simple, state of art
ergonomic design which guarantees sustained quality & flexibility for weaving Textile
articles like shirtings, Dress Materials, Furnishing, Fabrics or any other fashion
fabrics made not only from Cotton, Wool, Man made Fiber & their blends but also
from the delicate Silk, Metallic yarn, Fancy yarn etc. Yarn Types & Counts Range *
Spun yarn of Natural & Man-made Fibre-Nm 200-3 (Ne : 120-1:8) * Filament yarn
continuous or Texturized 20 den-2000 den. * Various types of Blended, Metallic
(Lumex), Glass fibers, Jute & Fancy yarns. * The superior metallurgical construction
with steel side frames & cross members ensure the smooth & reliable operation
without any vibrations which can be handled by even unskilled or conventional loom
operator. It offers shed formation possibilities by, Cam motion, Dobby (16-24 jacks)
or Jacquard shedding system.

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