Hind Project Main

HIND ENGINEERING WORKS
PES&T’S
BELGAUM INSTITUTE OF MANAGEMENT STUDIES
Degree College
Nehru Nagar, Belgaum
Bachelor of Commerce
(Corporate Secretaryship)
[B.Com (CS)] 5th Semester.
2007-2008
Belgaum Institute of Management Studies- Degree
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People’s Education Society & Trust.

BELGAUM INSTITUTE OF MANAGEMENT STUDIES
Degree College.
(Affiliated to Karnataka University, Dharwad)
A Project Report on:

“Corporate Exposure and Learning”
Undertaken at:
Dharwad road, Belgaum-590 016
A project report submitted in partial fulfillment of the requirement for
the award of
‘Bachelor of Commerce (Corporate
Secretaryship)
Submitted by:
Miss. Vinuta.G.Urolagin
BIMS, Belgaum-10.

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INTERNAL GUIDE EXTERNAL GUIDE

Mr. Arif Shaikh Mr. Wasim Todewale
CELL: 9886378897 CELL: 9986213320
DECLARATION
I do hereby state and declare that this project

entitled “Specialization in Finance” has
been prepared by me during the year 2007-2008
under the guidance of Mr. “Arif Shaikh”
Principal of BIMS degree college, Belgaum.
I also hereby declare that this project report

has not been submitted at any time to any other
university or Institute for the award of any degree.
Miss.Vinuta.G.Urolagin.
Date: 23-01-2008
Place: Belgaum

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ACKNOWLEDGEMENT
Its human bond duty to acknowledge all those personalities

who contributed immensively to their effort and guided
us in right direction.
I owe my deep sense of gratitude to Mr. Arif Shaikh
(Principal) of Belgaum Institute Of Management Studies
Degree College for his kind support.
I take immense pleasure in acknowledging the
intellectual and administrative guidance to me by Mr.Arif
Shaikh. I express my gratitude and sincere thanks for his
constant helpful and encouraging attitude during the report
preparation.
I am very much obliged and would like to thank Mr.
Ulhas Kakatkar Managing Director for giving me an
opportunity to undergo training in this class organization.
I owe my sincere gratitude to Mr.Wasim Todewale
and Mr.S.R .Kulkarni for giving me a golden opportunity to
serve the organization and for their respective help without
which the project would not have been a successful one.

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I also express thanks to all the faculty members for

their valuable suggestions, encouragement, guidance and
support. I would also like to thank all the respondents for
extending the required timely help.
I would like to thank my family who were a constant
source of encouragement and provided me with the
necessary resources.
I would lastly thank all my friends and persons who
were directly and indirectly involved with their help and
guidance in successful completion of my study.
EXECUTIVE SUMMARY
The project work is a requirement as a part of the
curriculum of the Fifth Semester B.Com (CS). This report is
the result of the project work undertaken at the HIND
ENGINEERING WORKS. It is well known throughout India. It is
pioneer in the field of manufacturing Crankshafts since its
inception. It has well planned and adequately equipped
manufacturing set up where every infrastructure is available, to
design, develop and to produce a mega range of equipments. It
has very good in house product design and development
capabilities to meet the requirements of the customers.
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The area of the study is Finance. In finance particularly I

have selected topic of this project report as “A Study on Working
Capital Management of Hind Engineering Works”. This project
report contains all the facts and figures given by the finance
manager of Hind Engineering Works. Hence, this project is not
applicable to other branches.
TABLE OF CONTENTS.
 Industry Overview
Evolution/Introduction
SWOT Analysis
 Company Overview
Evolution / Introduction
Plants profile.
Company profile

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Vision, Achievements, Awards.

SWOT Analysis
Departments
 Functional Area Analysis

 Analysis based on 7-S model
 Design of the study

Objective
Scope
Limitations
Research design and Methodology
 Findings and suggestions

 Conclusion
 Annexure

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INDUSTRY
OVERVIE
W.
AN OVER VEIW OF
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MANUFACTURING INDUSTRIES
MEANING:
Manufacturing industries refers to the activities concerned with the creation of form
utility. That is their activities concerned with the conversion of raw material or semi-finished
goods into finished goods. Conversion of raw jute into jute manufactures, conversion of cotton
into cotton textiles, production of sugar from sugar cane, production iron and steel from iron
ore etc. are examples of manufacturing industries. The products of extractive industries are the
raw material of manufacturing industries.
Manufacturing industries may be sub divided into four types, which are as follows:
 Analytical industries.
 Synthetic industries.
 Processing industries.
 Assembly-line industries.
1) ANALYTICAL INDUSTRIES:
Analytical industries refer to those manufacturing industries, which produces many
types of products by analyzing and separating the same basic raw material into different
products. For example oil refining is an analytical industry. In oil refining the same crude oil is
analyzed and separated into different products like diesel, oil, kerosene, lubricant oil etc.
2) SYNTHETIC INDUSTRIES:
Synthetic industries refers to all those manufacturing industries where various materials
are combined together in the manufacturing process to manufacture a new product, for
instance, cement industry is a synthetic industry, in the sense that cement is produced by a
cement industry by combining many materials, such as concrete, gypsum, coal, etc.

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3) PROCESSING INDUSTRIES:
Processing industries refers to those manufacturing industries where the raw materials
are processed through different processes (i.e. stages of manufacturing) into finished product.
Textile industry, paper industry etc are examples of processing industries.
4) ASSEMBLY-LINE INDUSTRY:
Assembly line industries refer to those manufacturing industries where different
components parts already manufactured are assembled into final products. Automobile
industry, television industry, etc are examples of assembly line industries.

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SWOT ANALYSIS
The scan of the external & internal environment is an important part of the strategic
planning process. Environmental factor internal to the usually can be classified as strength
(s) or weaknesses (w) & those external to the firm can be classified as opportunities (o) or
the threat (t) such an analysis of the strategic environment is referred to as SWOT Analysis.
The SWOT Analysis provides information on that is help for iv matching the firms
resources & capabilities to the competitive environmental in which it operates .As such it is
instrument in strategy formulation.
STRENGTHS
 Cheap and excess labour force.
 Globalization.
 Raw material availability
 Standard economic condition
WEAKNESSES
 High cost of Production.
 High Tax regime.
 Decentralization of Raw materials
OPPORTUNITIES
 Large demand from auto sector.
 High demand both at domestic and Global level.
THREATS
 Stiff competition from other foundries
 Environmental policy and restrictions
 Globalization.

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COMPANY
OVERVIE
W.
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HISTORY
M/s HIND ENGINEERING WORKS, the mother industry of HIND GROUP OF
INDUSTRIES was established in the year 1963, which manufactures Crankshafts. The
Founder of Hind Engineering Works was Mr.M.N.Kakatkar.
In the year 1950, Mr. M.N. Kakatkar was working in Arun Engineering as a Manager.
In the year 1957, his brother Mr. S.N. Kakatkar started Auto electrical repair works at Fort
road Belagum under the name of ‘Belgaum Electrical Works’, as an electrical wireman.Mr.
M.N. Kakatkar resigned from Arun Engineering and joined his brother at Belgaum electrical
Works.
Mr. M.N. Kakatkar was ambitious in starting his own Engineering Works Unit. With
the help of his friends and well wishers, he took some loans and purchased a Kirloskar made
‘Lathe’ machine on second hand. In the year 1962, they took a land at Dharwad road to start
engineering workshop on rental basis, Rs. 200 per month.
In the year 1963, they started the firm under the name “Hind Engineering Works”,
undertaking jobs from various firms. They approached State Bank of India in 1964 for
Financial Assistance. State Bank of India sanctioned a cash credit limit of Rs.5, 000.Belgaum
is well known for manufacture of crankshaft for automobiles, tractors, compressors.
The demand for crankshaft from all over India increased day by day. In the beginning the firm
was undertaking job work of crankshaft for M/s Arun Engineering Works.
In the year 1969, State Bank of India started Small Industries Business Scheme to
provide loan for the purchase of machinery. The lack of Customer satisfaction due to the set up
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of existing machineries was felt by the founders and hence they obtained term loan from SBI
and purchased the required machinery set up and are supplying crankshafts till today to the
most reputed customers.
In the year 1972, M/s Copper Engineering Ltd. Satara, who is the manufacturer of
diesel engines, inserted their jobs to Hind Engineering Works independently and from then
Onwards many companies like M/s Voltas Ltd. (MUMBAI) and many other companies
approached Hind Engineering Works.
The machinery purchased were Crankshaft grinders, Milling machineries and
Balancing machine and other required machinery. With this setup they were able to meet the
requirements of the customers. The prominent manufacturers of automobiles like Mahindra
and Mahindra, Tata Motors Ltd., Bharath Earth Movers are in the list of major customers. One
more operation required for completing the crankshaft was induction hardening. The partners
of the firm established a new firm named Hi-Tech Induction Pvt Ltd. at Shinolli.
As per the modern technology, due to the quality demand from the customers, Hind
Engineering Works installed modern technical equipments, highly skilled labor, educated
technicians and other testing equipments. It is proud to say no strikes from the date of
establishment till today. The firm has taken the expansion program for addition of imported
machinery from Germany and constructed new factory Premises at Udyambag Belgaum.

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INTRODUCTION
HIND Group has very long experience of making crankshaft. This company has started
machining crankshaft since 1968. It has a good blend of technical staff of experience & youth to meet
modern days requirements of quality and in time delivery. The company has all the in-house facilities,
well equipped with standard room & inspection facilities. Company has over 12 years experience of
meeting requirements of following O.E. manufacturers,
1. Mahindra & Mahindra.

2. Tata Motors.
3. Voltas Ltd.
4. VST Tractors.
5. Greaves Cotton Ltd.
HIGHLIGHTS OF HIND GROUP
Since, last 10years Hind group has supplied over 2.25 lakhs crankshafts to above customers and out of
2.25 lakhs it has supplied 1.25 lakhs to Mahindra. Their Expectations from Mahindra for achieving
future challenges are as follows:
1. Capacity Utilization:
After Mahindra agrees certain volume, they expect from M&M to compensate by giving different
products to absorb any down fall of particular item and give more opportunity to utilize increased
capacity.
2. Pricing:
Today’s prices were agreed @ 10 years back by Hind, they expect from M&M to review prices
whenever they are investing for M&M.
3. Technical support:
Since Hind group is small but growing organization. They expect technical support and guidance of
modern concepts like 6SIGMA, TPM etc.
Belgaum Institute of Management Studies- Degree college

RELEVANT INFORMATION OF GROUP COMPANIES.
Factory Area Power

Company Works (Sq.Mtrs.) (KVA)
LAND BLDG. CONN. GENR.
372, Dharwad Road,
Belgaum - 590 016. 2500 2000 450 300
Karnataka (INDIA)
HIND ENGINEERING
WORKS 98,99,100, Industrial Area,
Udyambag-Belgaum -
2500 1400 500 300
590013
Karnataka, (INDIA)
372/A, Dharwad Road,
HIND AUTO CRANKS
Belgaum - 590 016. 1000 600 200 125
PVT.LTD Karnataka (INDIA)
372, Dharwad Road,

Belgaum - 590 016. 2000 1425 150 -
Karnataka (INDIA)
HIND INDUSTRIES C.C.B. M.No. 793/1,
Plot No. 680/1, Khanapur
Road, 6300 925 150 150
Belgaum - 590 008.
Karnataka (INDIA)
111/1, Vengurla Road,
Shinoli (BK) - 416 508
HI-TECH INDUCTION
Tal: Chandgad Dist: 16200 600 500 -
PVT. LTD. Kolhapur
Maharashtra (INDIA)
NEW FOR EXPANSION UDYAMBAG 10000 - - -

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COMPANY PROFILE
NAME OF THE COMPANY : HIND ENGINEERING WORKS

LOCATION : 372, Dharwad Road, Belgaum-590 016,
Karnataka, INDIA.
TELEPHONE No. : 91-831-4215909.
FAX No. : 91-831-248886
E-MAIL : hindengg 1@airtelbroadband.com
YEAR OF ESTABLISHMENT : 1963
CORPORATE OFFICE : 372, Dharwad Road, Belgaum-590 016,
Karnataka, INDIA
TYPE OF INDUSTRY : Medium Scale
STATUS OF OWNERSHIP : Partnership.
NAME OF THE PARTNERS : Mr.U.M.Kakatkar (Managing Director)
Mr. P.N. Kakatkar (Executive Director)
Mr. S.N. Kakatkar (Director)
INDIRECT EXPORTS : United Kingdom, United States and Indonesia.
TOTAL LAND AREA : 4287.53 Sq.meter
BUILT UP AREA : 3795 Sq.meter
VACANT LAND : 492.53 Sq.metre
NO OF EMPLOYEES : 65
NO OF WORKERS : 280
NO OF SHIFTS : 8.30am to 3.30pm
3.30pm to 11.30pm
11.30pm to 8.30pm
WEEKLY HOLIDAY : Sunday

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BASIC BUSINESS INFORMATION
BUSINESS ACTIVITY
 MANUFACTURING CRANKSHAFTS FOR

• AUTOMOBILES • TRACTORS
• COMPRESSORS • OTHER VARIOUS APPLICATIONS
 MANUFACTURING OF
ENGINEERING AND ALLIED COMPONENTS OUT OF CASTING AND
FORGING
 INDUCTION HARDENING OF
• CRANKSHAFTS • CAMSHAFTS
• AXCEL SHAFTS • GEARS
• CYLINDRICAL SHAFTS
CONTINUOUS BUSINESS GROWTH PLANS

THROUGH:
• PRODUCT MIX – WIDE RANGE OF PRODUCTS

• GLOBAL CUSTOMER NETWORK
• TECHNOLOGY UPGRADATION
• MANUFACTURING TECHNIQUES STANDARDIZATION.
• ZERO DELIVERY FAILURES.

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MATERIAL FLOW CAHRT
SEMI FINISH
AT
UDYAMBAG UNIT
INDUCTION HARDENING AT
HI-TECH INDUCTION PVT. LTD.
SHINOLI
FINISH & DESPATCH

LINE
HIND AUTOCRANKS HIND INDUSTRIES

PVT.LTD. DHARWAD DHARWAD ROAD,
HIND AUTOCRANKS PVT. HIND ENGINEERING

LTD WORKS

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VISION AT "HIND GROUP"
• "HIND GROUP OF INDUSTRIES” is committed to provide high quality products,

which will delight customers.
• They shall involve all employees in quality improvement process and continuous
improvements in all functions.
• They shall emphasize more on preventive measures rather than
rectification of errors.
• They shall involve sub-contractors and guide them for achieving the required quality of
products and services
QUALITY POLICY
HIND Group manufacturers and suppliers are committed to:

Meet customer requirements and strive for excellence through continual
improvement of our products, processes and systems.
Involve all employees and other interested parties and work with team spirit in
achieving organizations objectives.
Take decisions and actions based on analysis of data and information to ensure
improvement and growth.

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INDUSTRY FOCUS.
• IC ENGINES.
• FARM EQUIPMENTS.
• AUTOMOBILE.
• COMPRESSORS.
CUSTOMERS
• TATA MOTORS LIMITED.
• MAHINDRA AND MAHINDRA LIMITED
• VOLTAS LIMITED, MUMBAI
• VST TILLER AND TRACTORS, BANGALORE.
• BHARATH EARTH MOVERS LIMITED.
• GREAVES COTTON LIMITED.
Competitors
• NETALKAR ENGINEERING WORKS, BELGAUM
• JAI HIND ENGINEERING WORKS, BELGAUM

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BOARD OF DIRECTORS.
U.M.Kakatka : Managing Director

P.N.Kakatkar : Executive director.
S.N.Kakatkar : Director.
A.D.Bidkar : Technical Director.
Bankers
STATE BANK OF INDIA,
Commercial Branch,
Hindwadi, Belgaum-590 011.
Auditors
• D.B. Kulkarni and Company
Audit house, Ravivar Peth
Belgaum.
• R.N. Bajaj, Chartered Accountant
Meerapur Galli, Shahpur
Belgaum.

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ACHIEVEMENTS
1. Number of customers increased from 4 to 6.

2. New products developed- 8 nos.
3. Capacity increased by 133 %( 3000 to 7000 no. per month) for M&M.
4. In house rejection reduced from 1.25% to 0.68%.
5. Through put time reduced by 33% (21 to 14 days)
6. Process improvement- DRO on grinding machine, in process gauge change over from
Analogue to Digital.
7. Dedicated work forces, Negligible turn over.
8. Single piece flow.
Awards
1. ISO-9001-2000 Quality systems accredited by JOINT ACCREDIATION SYSTEMS of

AUSTRALIA and NEW ZEALAND.
2. Best Customer Award from State Bank of India-2002
3. Best vendor award from Voltas Ltd.-2005.

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SWOT ANALYSIS
STRENGTHS:
 It has innovation in manufacturing process in terms of components produced.
 No Trade Union, hence no strikes.
 Cheap labor force is easily available.
 Able to produce complicated products because of experience.
 Systems are implemented for Quality assurance.
 The company has skilled top management and, team work and co ordination between the
employees.
 It has highly rated customer profile of Mahindra and Mahindra, Voltas Ltd., Tata Motors,
VST Tiller and Tractors, Bharath Earth Movers Limited., Greaves Cotton Limited.
WEAKNESS:
 In spite of wide customer base, it is still substantially depended for orders on diesel engine/
Farm equipments industry which are more prone to recessionary trends.
 There is no any-promotional activity in Foreign Countries as it aims at Globalization.
 Increased cost of production.
OPPORTUNITIES:
 Some of its major customers are having global presence. A larger export market opening up
may pave the way for a wider customer base.
 High demand at Domestic and International market.
 Develop new product in a very short time.
 Many Foreign Customers are taking a re look at their supply chain to get the products at
lowest landed cost.
THREATS:
 There exists a stiff competition in line. Due to rapid development in science and technology
the techniques and methods used become very obsolete.
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 Change in Government policies.
DEPARTMEN
TS

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VARIOUS DEPARTMENTS AT HIND ENGINEERING

WORKS.
1. PERSONNEL DEPARTMENT.
2. PURCHASE DEPARTMENT.
3. PRODUCTION DEPARTMENT.
4. MARKETING AND SALES DEPARTMENT.
5. QUALITY ASSURANCE DEPARTMENT.
6. FINANCE / ACCOUNTS DEPARTMENT.

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PERSONNEL DEPARTMENT
HIERARCHY:
MANAGING DIRECTOR
WORKS MANAGER
ADMINISTRATIVE OFFICER
HR EXECUTIVE
DEPARTMENT HEAD AND UNIT HEAD

HRD is an organization, functions to improve the attitude and culture of employees to
meet the productivity requirements and to achieve the customer satisfaction always.
FUNCTIONS:
1. MAN POWER PLANNING: It is the policy of the company to make all man power
allocation based on projections made through the approved annual manpower plan.
2. RECRUITMENT: It is the process of searching the prospective employees and
stimulation and encouraging them to apply for the jobs in an organization.
SOURCES OF RECRUITMENT:
 Advertisement in local news papers.
 Advertisements in colleges.
 Recommendation and introduction from business, friends, relatives, employees

and other employees.

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TRAINING AND DEVELOPMENT:

PURPOSE:
To provide guidelines for appointing competent personnel, identifying training needs,
prioritization for providing the training to employees, evaluation of effectiveness of
training and related corrective / preventive actions. To provide guidelines for
empowerment & motivation.
Training need may be identified in any of the following situations;

• Based on skills assessment
• Based on the customer requirements or complaints
• In case of new processes or modifications in the existing process.
• Based on the Appraisals, for areas, which needs improvements.
• In case of the not achieving the objectives or goals.
• Need based training
Training on Job - On the Job training will be arranged by respective Senior
Manager & Process owner in coordination with HR executive in any new or modified job
affecting the product quality, process, new Technology for personnel including contract
labour. The records will be maintained in on the job Training report
Employee Motivation & Empowerment
• Empowerment:
a. Empowerment is ensured through training
b. Delegation of responsibilities & authorities for the key personnel’s for taking
appropriate decisions,
c. Providing necessary safe & healthy work environment
d. Providing the necessary resources for executing his/ her work in order to achieve the
organizational goals & Objectives, & carry out continual improvement projects.
e. The suggestion schemes have been introduced to ensure their involvement & make
them feel that they are part of the organization.
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• Motivation:
a. Following are the motivation Guidelines established to achieve the Organizational
goals/ objectives;
i. Monthly attendance incentive
ii. Monthly production incentive (for producing more then standard norms)
iii. Yearly – Gunvatta Kamgar Award (Attitude, habits, behavior)
iv. Yearly – Gunvatta Award (Quality of work)
v. Yearly – Vishesh Gunvatta award (Attitude, habits, behavior + Quality of work)
vi. Yearly – Attendance award
vii. Yearly – Meritorious Award (for employee’s children who score above 70% in
academics)
3. WELFARE MEASURES:
The company has provided the welfare facilities like First aid appliances, rest rooms,
production incentives, ESI dispensary. It is giving bonus to its employees every year apart
from regular ESI, Provident fund contribution and Insurance group gratuity. Regular health
camps are being organized by the industry.

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PURCHASE DEPARTMENT
HIERARCHY:
MANAGING DIRECTOR
WORKS MANAGER
PURCHASE MANAGER
ASSISTANT
PURPOSE:
To provide guidelines to ensure that the purchased product conforms to specified
requirement.
SCOPE:
Consumables, tooling, packaging material, Forgings, Castings, & maintenance spares.
RESPONSIBILITY
Managing Director & Works Manager: Approval / Deletion of supplier as per this
procedure, approval of Purchase Orders, P.O. amendments,
Procurement schedule.
Purchase Manager: Obtaining information about Supplier, Informing supplier about

requirements, Procurement schedule, Schedule amendment, Schedule
amendment / cancellation released on suppliers as per this procedure,
keeping follow-up with supplier for timely delivery & monitoring
supplier performance.
FUNCTIONS:
● Receipt of purchase requisition from various departments.
● Sending or doing enquires of required materials.
● Getting the quotation from the supplier.

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● Reviewing the quotations.

● Negotiations to the supplier.
● Price settlement.
● Releasing the purchase orders.
● Follow up with the suppliers for getting materials on time.
PROCEDURE
Definition of Specified Requirements:

Requirements of product or materials to be purchased and Incoming Inspection of Purchased
Product / Service are as specified & documented in terms of Purchase Order, Drawings,
Specifications / Standards, Control Plan etc.
Selection of Suppliers (Evaluation):

Suppliers’ selection is done on the basis of one or more of the following methods:
a) Past performance of supplying similar product.
b) ISO 9000 certifications
c) Market reputation & Brand recognition.
d) Customer recommendation / preference.
e) Based on evaluation of trial / sample supplies.
f) Based on assessment findings from onsite visit.
Approval of Supplier
The approval of supplier is done on following basis;
• Customer Approved Source
• Onsite inspection report in cases where onsite inspection is required.
• In other cases the suppliers are approved on the basis of either past performance of
supplying similar products or
• Market reputation and
• Brand recognition
• On the information received from customer by Purchase Manager.
• The supplier may be approved based on evaluation of trial / sample supplies. How ever
the numbers of trial supplies are limited to three trials.
Re-evaluation of Supplier’s (Supplier’s Performance Measurement)

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Performance of supplier supplying Raw material, consumables & such other materials
directly affecting quality of product are assessed. The assessment is based on Quality of
product & Timely Delivery of material
Purchasing Data
Purchase Manager will maintain list of Material for Production, this list is prepared
considering type of crankshaft-the consumables (material) required along with specification &
suppliers/ sources available.
Based on the customer requirements communicated by the production department purchase
manager prepares the procurement plan for the material.
Scheduling of Suppliers
Based on the requirement, approved suppliers are given material requirement information
by Purchase Manager through Purchase Order/ verbal order. Purchase Orders are reviewed and
approved for completeness and correctness of information by Managing Director.
Based on amended schedule received from customer, Managing Director verifies any
changes required in the released Purchase Orders. In case of amendment, Purchase
Manager informs the respective Supplier.
Conditional Stock Verification:
Purchase Manager carries out the conditional stock verification of material kept in stock
on Quarterly basis. The conditional Stock verification is done to verify the physical stock
V/s book stock is tallying & whether the material is in good condition (not getting rusty,
leaked, damaged etc.). After carrying out the conditional stock verification activity the
Purchase Manager Stamps on the stock register.
The material in stores is issued on First Inn First Out basis (FIFO). Accordingly the
material is stacked or stored in the rack to ensure FIFO.
Organization’s Verification at Suppliers End:
Under specific circumstances, if material is to be verified at the supplier’s premises, it is
mentioned clearly in the purchase order.
Customer verification at Supplier’s End:
If agreed contractually with the customer, the customer is given the right to inspect / verify
the product at supplier’s premises. This aspect will be mentioned in purchase order clearly.
Arrangements are made for such inspection / verification.

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PRODUCTION DEPARTMENT
HIERARCHY:
MANAGING DIRECTOR –TECHNICAL DIRECTOR
WORKS MANAGER
SENIOR MANAGER PRODUCTION AND PLANNING
SENIOR MANAGER FOR SEMIFINISHED, SENIOR AMANGER

INDUCTION HARDENING
LINE MANAGERS
SHIFT INCHARGE
PURPOSE
To provide guidelines to ensure that the production processes are planned and are carried out
under controlled conditions to ensure compliance of the product to specified requirement.
SCOPE
All production processes / all stages of manufacturing carried out at the plant.
RESPONSIBILITY:
Works Manager: For approving process controls & product characteristics, ensuring safe &
healthy working conditions, providing manufacturing
infrastructure & timely allocation of resources for achieving
timely delivery
Sr.Mgr. Production: For Defining & implementing production controls, Production Planning
adhering to production schedules.
Line Manager: Job Set-up approval &
QA Inspector: In process patrol inspection

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PROCEDURE:
Production Planning
Customer Orders / schedules are received by marketing department & is communicated to
MD, Works Manager & Sr. Mgr. Prod. The requirements are reviewed for the following:
a) The requirements are adequately defined for Product Description and specifications,
Quantity and delivery requirements.
b) Capability to deliver the product on schedule depending on material availability with respect
to Stock of Finished crankshafts, WIP Stock of crankshafts and forging/ casting stock
crankshafts, back-log of previous month and material procurement lead-times.
 Sr. Mgr. Prod. Based on the review findings prepares the Production Plan for the month
in Monthly & weekly Production plan HG-PRD-F-01 and communicates the
Production Plan to the concerned Line Managers & Shift In charge. The Monthly
Production Plan gives details of weekly requirement, Item-wise Production Quantity.
 Sr. Mgr. Prod prepares the Machine Loading Chart HG-PRD-F-02 & communicates the
daily production target per line per day per shift.
 Marketing receives the amendment/ change to customer requirement, which is

communicated to the MD or Work Manager. The Works Manager reviews the
amendment/ change for acceptability in consultation with Sr. Mgr. Prod.
 If the changes are acceptable, the Production Plan HG-PRD-F-01 is up-dated and
communicated to all departments concerned
 Process Flow Charts, Control Plans, Process Drawings, SOP etc. giving the sequence
for processing and machine are documented for the components manufactured at the
plant.
 Machines, Equipment and allied facilities carrying out the processes are installed and
maintained.
Tooling Management (Control of Tooling)

 The Tooling required for Manufacturing of crankshafts are designed and provided by Tool
Room.
 The Tool Room is provided with original Product Drawing. The Tool Room manufactures
the required tooling die. The Tooling is accepted / approved after confirming sample
production acceptance.

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Machinery Maintenance
 Line Manager/ Shift In charge to ensure that machinery maintenance is carried out as
per the SOP.
 Machine/ Utility Break-down to be communicated to the Maintenance department
through Maintenance work Order, stating the Machine Problem.
Facility Management:
Sr. Mgr. Prod. / Line Manager to evaluate the Facility utility & overall equipment
Efficiency as per the Procedure for Facility Management.

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UNI-DIRECTIONAL PROCESS FLOW DIAGRAM

SCOPE: RAW MATL RECEIPT TO
FINISHED STAGE RECEIPT OF RAW MAT (FORGING CASTING)
STORAGE OF RAW MAT AT RECEIPT STAGE
INCOMING INSPECTION & TESTING (DIMENSIONAL

& METALLURGICAL)
IF NOT OK (SEND BACK TO SUPPLIER / CUSTOMER)

IF OK
(NEXT OPERATION) CENTERING
JOURNAL TURNING
TURNING
CRANK PIN TURNING
STAGE INSPECTION
IF NOT OK (DISPOSITON DECIDED)

IF OK RECENTERING
(NEXT OPERATION) DEBURING
OIL GALLARIES DRILLING / CHAMFERING
STAGE INSPECTION

IF OK
(NEXT OPERATION)
MAGNAFLUX CRACK DETECTION
INDUCTION HARDENING HARDENING
STRESS RELIEVING
STAGE INSPECTION
JR. GRINDING
CONN. GRINDING
IF OK FLANGE GRINDING
(NEXT OPERATION) STEM GRINDING
GRINDING FLANGE FACE GRINDING
STAGE INSPECTION

IF OK FLY WHEEL MTG. HOLE DRILLING / TAPPING)
(NEXT OPERATION) STEM DRILLING / TAPPING
KEYWAY MILLING
OIL SEAL GROOVE
STAGE INSPECTION

IF OK
(NEXT OPERATION)
DYNAMIC BALANCING
OIL HOLE BUFFING
SUPERFINISHING
CLEANING/RUST PREVENTIVE APPLICATION
FINAL INSPECTION & TESTING
OPERATION
IF OK INSPECTION
(NEXT OPERATION)
STORAGE
PACKING
MOVEMENT
STORAGE
DECISION BOX
DESPATCH
DOCUMENTATION

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MARKETING AND SALES DEPARTMENT
HIERARCHY:
MANAGING DIRECTOR
WORKS MANAGER
MARKETING MANAGER
ASSISTANT
PURPOSE:
This procedure ensures that all contracts / orders are reviewed and resolved before
acceptance.
SCOPE:
Customer Orders, schedules, order amendments.
RESPONSIBILITY:
Manager Marketing: Review and acceptance of Orders/ Schedules in consultation with
Works Manager and Review new enquiry with Work Manager & MD.
PROCEDURE:
Processing of Enquiries, Proposals, Purchase Orders and Amendment to Purchase
Orders:
 The Marketing department maintains ‘Manufacturing Capacity Map’ which details the
existing manufacturing capacity, list of customer& products, List of machineries, etc.
 Customers’ Inquiries, Proposals, Purchase Orders and Amendment to Purchase Orders

are received by / directed to Manager Marketing. In case of new customer the Quality
Management System requirements are determined & records are maintained in Contract
review checklist. If customer has defined the specific requirements in a Manual (soft/
website) Manager Marketing will ensure that the same is made available for review.
 The product technical requirements are determined & records are maintained in New
crankshaft requirements & review report.
 The Manager Marketing reviews the customer requirements, as well as their

commercial feasibility and capacity availability. In case of order / amendment,
commercial discrepancies if any, are resolved by the Manager Marketing and recorded
in contract review checklist/ New crankshaft requirements & review report.
 The Manager Marketing decides on initial feasibility of the inquiry / proposal / order /
amendment. In case of rejection, regret letter is sent to customer.

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 On review of initial feasibility if accepted, the New crankshaft requirements & review
report will be forwarded to Works manager for product technical feasibility review.
Works manager will carry out the feasibility & communicate the feasibility report to the
Manager Marketing.
 Manager Marketing prepares the commercial proposal in consultant with MD, &
communicates to customer.
 Manager Marketing will follow-up with the customer for Purchase order. On receipt of
customer PO, it is verified with the commercial proposal. If the PO is accepted, the
customer’s development requirements will be communicated to the Works Manager.
 MD is authorized to finally accept or reject orders and amendments. In his absence, the
Manager Marketing is authorized. The P.O. / Amendment is retained by Marketing
Department for records and copy is send to Production Department
Coordination of Delivery Activity:
 Based on the customer delivery schedules, the Marketing Department gets the goods
packed, prepares Challan & Invoice and arranges for dispatch. Marketing Department
maintains records of dispatch. The records of crankshaft forgings receipts & dispatches
are maintained in daily receipts & dispatches status.
 Manager Marketing communicates the Crankshaft stock & dispatch details to customer
(automotive customers) on daily basis through e-mail of receipt & dispatch status.
Advanced shipment notification is done before dispatch to the automotive customers.
Stock verification: Every quarterly physical stock of crankshafts will be checked and
confirmed with the register stock, and the confirmation of the same is also done with the
customer. In case if any discrepancy observed, the marketing manager finds out the mistake
(carries out analysis) & takes necessary action to resolve the discrepancy.
Customer Satisfaction: Manager Marketing will carry out the customer satisfaction survey
once in year (preferably in March) by sending the survey form. Manager marketing reviews the
survey form on receipt and identifies areas for improvement & customers expectations/
suggestions and forwards the survey form for further analysis & actions.
Manager Marketing will monitor the performance of manufacturing processes twice in a year
(preferably in Jan. & July) to demonstrate compliance with customer requirements for
followings areas;
i) In-house rejections customer-wise & product wise.
ii) Delivery performance customer-wise.
iii) Customer end rejections.
iv) Number of customer complaints.
v) Process capability index customer wise
vi) Capacity booking customer-wise.

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The records of the above will be maintained in manufacturing performance with Customer
requirements reports.
QUALITY ASSURANC REPARTMENT

HIERARCHY:
PRODUCTION MANAGER AND WORKS MANAGER
OUALITY ASSURANCE MANAGER
JOB AND LINE INSPECTORS.

PURPOSE:
To provide guidelines for control of nonconforming Material / Product in order to prevent
its unintended use & deciding appropriate disposition action.
SCOPE:
Incoming Material: Incoming Crankshafts, Raw materials, & Job work items
In-process Material& Final Product, In process rejection, Product ready for dispatch or
product rejected by customer through Customer compliant
As well as, any material, component or product whose inspection and test status is
unknown or whose identity is unknown is a ‘Suspect Product’.
RESPONSIBILITY:
QA Manager : Incoming Materials
Production Line Manager: In-process Material
QA Manager & Production line Manager: For Final Product including customer returned
product
PROCEDURE:
 Quality Assurance Manager identifies non-conformance of incoming materials. The non-
conformance and disposition is conveyed to Sr. Production Manager & Works Manager.
 Nonconforming incoming products are identified by visual identifications such as red
color paint, red tags, or by storage in areas marked for rejects and segregation. The Stores in
charge is informed about the rejection (in case of consumables).
 The semi finish crankshafts Nonconformance’s are identified by Yellow paint.

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 QA Manager & Stores I/c dispose off Nonconforming Materials at incoming stage in
accordance with disposition given by Works Manager. The supplier is informed about
rejection.
In-Process Material:
 Non-conforming In-process Products are detected by Production Line Manager / QA
Manager through in-process inspection. QA Inspector records the details of rework able
nonconformance in the In-process Inspection Report. The crankshaft rejections are
recorded in the Product Non-conformance Control Register.
 The QA Inspector & Production Line Manager ensures that non-conforming products
are controlled and the same is not released unless the non-conformance is reviewed and
a disposition is arrived at. Nonconforming products are identified as:
 Rejection – Red Color paint, with tag, & written with permanent marker giving details
of rejection.
 In process crankshaft Rework – Identified by blue color permanent marker pen
 Concession / Deviation – Status identified by blue color permanent marker pen
 The rejected products are stored separately so as to avoid their mix-up with acceptable
goods. Reworked / rectified in-process products are re-inspected, prior to release for
further processing. Production Manager maintains records for scrapped, reworked /
rectified in-process products.
FINAL PRODUCT
 Final Products are inspected by QA Inspectors prior to dispatch. QA Inspector / QA
Manager detects non-conforming Final Products through final inspection. Also Final
products that are stored beyond a period of six months are offered for re-inspection.
Such re-inspection activity also detects products that have become non-conforming due
to prolonged storage.
 Nonconforming Final Products are identified. The Q.A Manager ensures that non-
conforming final products are controlled and the same are not released unless the non-
conformance is reviewed and a disposition is arrived at. The details of Nonconformance
& further disposition action are recorded in Final Product Nonconformance Register.
 Non-conforming final products are disposed off by QA Manager.

Customer End Rejections:
 Marketing Manager / Stores I/c would receive Customer returned Products. After
completing the Governmental Procedures, the returned products and details are handed-
over to the QA Manager. Also if any Customer Compliant is received by Marketing
Manager, it is also treated as Nonconformance and handed-over to Q.A. Manager to
take required Corrective / Preventive Action.

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 The Works Manager & Q.A. Manager decides on the disposition of the returned
product. Accordingly, the QA Manager arranges disposal of the returned products.
 Trends in non-conformities are analyzed and actions are initiated for non-conformity
reduction. The QA Manager and Works Manager monitor the progress and
effectiveness. Complaints are closed after verifying that the actions are completed
effectively. MD reviews the trends of customer complaints and customer end rejections
-in the Management Review Meeting.
FUNCTION
AL
AREA
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ANALYSIS
FINANCE

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DEPARTME
NT
HIERARCHY
ACCOUNTS MANAGER
CASHIER
ASSISTANTS

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PURPOSE:
To meet the day today requirements of the business and hence smooth flow of the business.
RESPONSIBILITIES:
1. To check whether the payment is received in time.
2. Furnishing as and when the required data to the department.
3. Updating the routine functions related to tax matters.
4. Co- coordinating with the statutory auditor for other works.
5. Checking and payment of salary, wages, OT and incentive as per norms.
6. To pay the creditors in time
7. Keep the bank account
8. Prepare balance sheet and profit and loss account
9. Maintain all the books of records
10. To carry out the smooth flow of the business.
“WORKING CAPITAL MANAGEMENT”
INTRODUCTION
Financial Management is concerned mainly with procuring funds in most of the economical
and prudent manner, deploying these funds in the most profitable way in a risk situation,
planning future operations and controlling current and future performance and development
through different tools.

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FUNCTIONS OF FINANCE MANAGER

The Finance manager has decisions carefully in respect of financing, investment,
dividend and current asset management.
 Financing: To obtain funds from different sources. Funds for business are put to
different uses. The funds may be permanent source, long term source, and medium and
short term sources. These funds are to be utilized efficiently.
 Investment: Investment in an existing plant needs for diversification or expansion of
existing capacity or establishment of new plant. In such areas risk-vs.-return factors are
to be considered by finance manager. Capital Budgeting techniques are to be applied
and an optimal decision is to be taken.
 Working Capital Management: The Process is continuous; it requires a lot of
financial judgment and experience to handle. The aspects of working capital
management include making adequate fund for day today operations of the business.
 Dividend decision: The main object of financial management is to maximize the
wealth of shareholders. In deciding the rate of dividend, emphasis should be made on
retained earnings (reserve) which will ultimately increase the book value of the
company along with equity capital.
WORKING CAPITAL
INTRODUCTION
Every business needs adequate liquid resources in order to maintain day-to-day cash flow. It
needs enough cash to pay wages and salaries as they fall due and to pay creditors if it is to keep
its workforce and ensure its supplies. Maintaining adequate working capital is not just
important in the short-term. Sufficient liquidity must be maintained in order to ensure the

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survival of the business in the long-term as well. Even a profitable business may fail if it does
not have adequate cash flow to meet its liabilities as they fall due.
Therefore, when businesses make investment decisions they must not only consider the
financial outlay involved with acquiring the new machine or the new building, etc, but must
also take account of the additional current assets that are usually involved with any expansion
of activity. Increased production tends to engender a need to hold additional stocks of raw
materials and work in progress. Increased sales usually mean that the level of debtors will
increase. A general increase in the firm’s scale of operations tends to imply a need for greater
levels of cash.
MEANING:
Working Capital is a short term investment, which is concerned with the problems that
arise to manage current assets, the current liabilities and the inter relationship that exists
between them.
Working Capital is used for financing day today business operations. An organization
whether it is a manufacturing or trading requires adequate funds for acquiring the stock of
materials, marketable securities, stores, materials etc. The funds invested in current assets such
as stock of materials, bills receivables, Sundry debtors, and cash in hand, bank balance is
known as “Circulating or Revolving Capital” because the current assets are the nature of
circulation.
Working Capital thus refers to that part of total capital which is kept invested in current
assets that are required for regular business operations.
Concept:
The two concepts of Working Capital are:
 Gross Working Capital
 Net Working Capital.
Gross Working Capital:

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The total capital employed in current assets or firms investment in current assets.
Current Assets:
The assets which can be converted into cash within an accounting year and includes
cash, short term securities, debtors, bills receivables, inventory. It focuses on two aspects of
current assets management:
• Optimum investment in current assets: Avoid two danger points i.e.; excess and
inadequate in current assets.
• Financing of current assets: Make necessary arrangement of working capital funds
whenever a firm needs due to increased level of business activities or for any other
reason.
Sl. No. CONSTITUENTS OF CURRENT ASSETS AMOUNT
1 Cash in hand XXX
2 Bills receivables XXX
3 Short term loans and advances XXX
4 Inventories of stock as XXX
a) Raw materials xxx
b) Work in progress xxx
c) Stores and spares xxx
d) Finished goods xxx
5 Temporary investment of surplus funds XXX
Total Current assets(Gross working capital) XXX
Net Working capital:

It is the difference between current assets and current liabilities or excess
current assets over current liabilities.
Net working capital can be positive or negative. A positive working capital will
arise when Current Assets exceeds Current Liabilities. A negative working capital
occurs when Current Liabilities exceeds Current Assets. A firm should always posses a
positive working capital.
Net Working Capital = Current Assets – Current Liabilities.
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Current Liabilities:
Current liabilities are the liabilities of a company due and payable within one year or
are those claims of outsiders which are expected to mature for payment within an accounting
year and include creditors, bills payable etc.
Net working capital is qualitative concept and it covers two concepts:
• It indicates the liquidity position of the firm.
• Suggests the extent to which working capital need may be financed by
permanent sources of funds and also it covers judicious mix of long term and
short term funds for financing current assets.
Sl. No. CONSTITUENTS OF CURRENT LIABILITIES AMOUNT

1 Bills Payable XXX
2 Sundry Creditors or Accounts Payable XXX
3 Accrued or outstanding expenses XXX
4 Short term loans and advances and deposits XXX
5 Bank Over Draft XXX
Total Current Liabilities XXX
NEED FOR WORKING CAPITAL
A FIRM MUST NEED WORKING CAPITAL FOR THE FOLLOWING REASONS:

1. To run the day today business activities.
2. To provide credit facilities to customers.
3. For the purchase of raw materials, components and spares.
4. To incur day today expenses and overhead costs such as fuel, power office expenses
etc.

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5. To maintain the inventories of raw materials, work in progress, stores and spares and
finished stock.
6. To maximize the wealth of its shareholders.
7. To deal with the problem arising out of the lack of immediate realization of cash
against goods sold.
8. To maintain liquidity position of a firm.
9. To counterpart between cash inflow and cash outflow (because outflow of cash is
predicted, definite in nature but inflow of cash is indefinite.
10. To adopt smooth, uninterrupted functioning of firm activities.
DETERMINANTS OF WORKING CAPIATL

Working capital requirements vary from time to time and also from one kind of business to
another. There are no set of rules or principles determining the quantity of working capital
required for all concerns at any time. A large number of factors influence in the determination
of extent of working capital required for any enterprise.
1. Size of the firm:

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The size of the firm in terms of its scale of operations is an important factor affecting
the working capital requirement. A firm carrying its business on a small scale requires less
amount of working capital as compared to a firm having large scale operations.
2. Nature of business:
A trading firm or a finance corporation requires a huge amount of working capital and
its investment on fixed assets is limited. Similarly a public utility concern like electricity, water
supply, railways etc require huge amount of fixed capital and just a nominal amount of
working capital.
3. Changes in technology:
Technological development relating to manufacturing process may influence the
working capital requirement. Use of modernized machines requires less quantity of raw
materials, speeding up of manufacturing process results in lower quantity of inventories to be
held, and hence reduces the working capital requirements.
4. Production cycle:
The time for converting raw materials into final [product is known as production cycle.
Longer the manufacturing cycle greater is the amount of working capital required. Therefore
shorter manufacturing cycle should be chosen so that accumulation of work in progress and
wastage of time can be minimized.
5. Business cycle:
Business increases during boom period and decreases during the period of depression.
During the boom period the sales increases rapidly and correspondingly investment in
Inventories also increase requiring more and more working capital. But when depression sets
in, the demand for the product declines reducing the level of inventories to be held and as a
result of which working capital requirement also declines.
6. Type of industry:
A capital intensive industry which is based only on machines requires more fixed
capital and less working capital. Whereas labor intensive industry based on manpower
resources requires more working capital for the payment of salaries, wages, allowance etc.

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7. Rate of turn over:

A high rate of turn over requires less amount of working capital, whereas a low rate of
turn over requires increases the quantity of working capital requirement
8. Credit policy:
Liberal credit policies given to customers results in more working capital requirements.
When a firm sells goods on easy credit terms its funds get blocked up in book debts and
receivables, which in turn requires more amount of working capital. If the sales are made
strictly on cash basis business can be run with limited amount of working capital.
9. Growth and diversification of activities:
Need for working capital increases as the business grows in size and volume. Adequate
working capital has to be provided to meet the needs of growing business enterprise.
10. Profit planning:
Working capital requirements also depends upon the profit planning done by the
entrepreneur. Higher margin of profits helps in creating internal funds through the process of
ploughing back of profits, and thus contribute towards the working capital pool, whereas low
margin of profits leaves nothing for reinvestment.
11. Dividend policies:
Liberal dividend policies of a company restrict the creation of internal funds through
the process of ploughing back of profits and hence increase the working capital requirements.
But if a company does not like to pay any dividend or pays low arte of dividend its capital
requirement will be less.
12. Government taxes:
Taxes imposed by the government have its own impact on working capital requirement.
Higher the tax rate more will be the working capital requirement.
TRADING AND PROFIT AND LOSS ACCOUNT FOR THE

YEAR ENDING 2006 AND 2007
PARTICUALRS 2005-06 2006-07
To opening stock 15,56,720.00 9,38,100.00
To raw materials 88,45,262.58 1,26,43,430.36
To operating expenses 2,71,06,010.17 2,70,43,113.01
To workers wages 30,98,323.00 34,64,814.00
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To motive power 8,38,427.50 1,052,295.28

To Gross profit 1,75,06,374.38 2,03,95,204.83
TOTAL 5,89,51,117.63 6,55,36,957.48
To salary and provisions 17,11,872.00 22,37,352.00

To traveling expense 15,82,982.50 13,13,835.61
To interest on bank loans 10,12,366.59 28,56,666.71
To interest on deposits 9,08,493.00 10,09,788.00
To Bank charges 4,61,813.34 2,02,755.98
To postage and telephone 4,25,772.41 3,63,580.44
To printing and stationery 1,39,585.30 1,73,146.52
To welfare expenses 1,87,163.25 2,59,717.00
To repairs and maintenance 6,16,366.80 11,67,512.20
To general expenses 41,09,827.96 37,46,522.55
To depreciation 8,14,121.72 15,47,174.00
To Net profit 59,57,895.51 56,28,025.55
TOTAL 1,79,28,260.38 2,05,06,076.56

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PARTICULARS 2005-06 2006-07

By sales
Within state 1,22,200.00 65,600.00
Interstate 23,59,140.00 25,03,427.01
By labour charges 5,50,32,063.63 6,09,94,895.47
By workshop building rent 2,40,000.00 2,40,000.00
By Machinery rent 2,59,614.00 2,34,181.00
By Closing stock 9,38,100.00 14,98,854.00
TOTAL 58,951,117.63 6,55,36,957.48
By Gross profit 1,75,06,374.38 2,03,95,204.83

By interest income 52,216.00 1,09,586.00
By commission and discount - 1285.73
By LIC Keyman Insurance Refund 3,69,670.00 -
TOTAL 17928260.38 20506076.56

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BALANCE SHEET OF HIND ENGINEERING WORKS

FOR THE YEAR ENDING 2006 AND 2007.
CAPIAL AND LIABILITES 2005-06 2006-07

Partners Capital Accounts 1,68,07,492.56 1,26,94,749.41
Reserve and Surplus 24,10,100.00 24,10,100.00
Bank Loans 89,03,970.85 1,45,80,573.24
Deposits 71,06,240.00 1,28,58,702.00
Deferred Tax Liability _ 60,56,717.00
Current liabilities and Provisions:

State Bank Of India cash credit 94,29,439.24 1,06,68,856.42
Sundry Creditors:
Suppliers 3,918,152.91 72,94,232.43
Jobbers 2,73,95,868.60 51,54,870.60
Trade advances 17,44,956.45 4,07,863.45

Outstanding Liabilities 11,78,282.38 25,63,535.47
TOTAL 7,88,94,502.99 7,46,90,200.02
PROPERTIES AND ASSETS 2005-06 2006-07

Fixed Assets 1,78,41,218.00 3,59,84,281.73
Workshop Building Construction 37,54,581.95 50,18,577.95
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Building Renovation ( Office interior) 17,73,974.63 3,77,098.00

Investment and Deposits 3,60,007.00 3,52,500.00
Current Assets
A] Closing Stock 9,38,100.00 14,98,854.00
B] Sundry Debtors:
Customers 15,74,226.14 14,59,336.31
4,24,81,826.12 2,17,59,724.67
Labor Charges
C] Receivables 11,09,235.16 13,08,843.16
D] Cash and Bank Balances:
Cash on hand 1,41,858.53 1,544.53
17,50,675.49 2,17,609.34
Cash at bank
E] Advances 71,68,799.97 67,11,830.33
TOTAL 7,88,94,502.99 7,46,90,200.02
STATEMENT SHOWING NET WORKING CAPITAL OF HIND

ENGINEERING WORKS FOR THE YEAR ENDING 2006 AND
2007.
Sl.No PARTICULARS 2005-2006 2006-2007
In Rs. In Rs.
1 CURRENT ASSETS
Closing Stock 9,38,100.00 14,98,854.00
Sundry Debtors 4,40,56,052.26 2,32,19,060.98
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Receivables 11,09,235.16 13,08,843.16

Cash And Bank Balances 18,92,534.02 2,19,153.87
Advances 71,68,799.97 6,711,830.33
TOTAL 5,51,64,721.41 3,29,57,742.34
2 CURRENT LIABILITIES AND
PROVISIONS
State Bank Of India Cash Credit 94,29,439.24 1,06,68,856.42
Sundry Creditors 3,13,14,021.51 1,24,49,103.03
Trade Advances 17,44,956.45 4,07,863.45
Outstanding Liabilities 11,78,282.38 25,63,535.47
TOTAL 4,36,66,699.58 2,60,89,358.37
3 NET WORKING CAPITAL
[Current Assets –Current 1,14,98,021.83 68,68,383.97
Liabilities]
NOTE:
The Net Working Capital for the year 2006-07 decreased because of the purchase of
machinery from the existed working capital.
Comparative STATEMENT analysis
PARTICULARS 2005-2006 2006-2007 EFFECT ON WORKING

In Rs. In Rs. CAPITAL
CURRENT INCREASE DECREASE
ASSETS
Closing Stock 9,38,100.00 14,98,854.00 560754.00
Sundry Debtors 4,40,56,052.26 2,32,19,060.98 20836991.28
Receivables 11,09,235.16 13,08,843.16 199608.00
Cash And Bank 18,92,534.02 2,19,153.87 1673380.15
Balances
Advances 71,68,799.97 6,711,830.33 456969.64
TOTAL 5,51,64,721.41 3,29,57,742.34

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CURRENT LIABILITIES AND PROVISIONS

State Bank Of 94,29,439.24 1,06,68,856.42 1239417.18
India Cash Credit
Sundry Creditors 3,13,14,021.51 1,24,49,103.03 18864918.48
Trade Advances 17,44,956.45 4,07,863.45 1337093.00
Outstanding 11,78,282.38 25,63,535.47 1385253.09
Liabilities
TOTAL 4,36,66,699.58 2,60,89,358.37
NET WORKING 4629637.86
CAPITAL 1,14,98,021. 68,68,383.9
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OPERATING CYCLE
It is the time duration required to convert sales, after the conversion of resources into
inventories into cash. The operating cycle of a manufacturing company involves three phases:
• Acquisition of resources such as raw materials, labor, power, fuel etc.
• Manufacture of the product which includes conversion of raw materials in to work-in-
progress into finished goods.
• Sale of the product either for cash or on credit. Credit sales create account receivables
for collection.
In simple words Operating Cycle is the time period required to convert cash into raw
materials, raw materials into work-in-progress into finished goods to bills receivables into
cash.
It can be explained through the following diagram:
DEBTORS
(RECEIVABLES)
CASH FINISHED GOODS
RAW MATERIALS WORK-IN-PROCESS

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The length of Operating Cycle:

The sum of Inventory Conversion Period (ICP) and Debtors Conversion Period (DCP).
Operating Cycle Period = ICP + DCP.
Inventory Conversion Period:

The total time needed for producing and selling the product. Typically, it includes:
• Raw Material Conversion Period (RMCP)
• Work-In-Progress Conversion Period (WIPCP)
• Finished Goods Conversion Period (FGCP)
ICP = RMCP + WIPCP + FGCP
Debtors Conversion Period:

The time required to collect the outstanding amount from the customers.
Gross Operating Cycle:

The total of Inventory conversion period and Debtors conversion period is referred to as
Gross Operating Cycle (GOC).
GOC = ICP + DCP.
Creditors Deferral Period:

The length of time the firm is able to defer payments on various resources purchased.
Net Operating Cycle:

It is the net difference between the Gross Operating Cycle and Creditors Deferral
Period.
NOC = GOC – CDP.

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Finally, NOC is the difference between the total time period required for Inventory and
Debtors conversion period and the time period taken by the firm to postpone the payments.
COST SHEET FOR THE YEAR ENDING 2006 AND 2007
Sl.No. PARTICULARS 2005-06 2006-07

1. Raw Materials purchased 88,45,262.58 1,26,43,430.36
2. Opening Stock of raw materials 8,16,785.00 7,37,638.00
3. Closing Stock of raw materials 7,37,638.00 10,57,389.00
4. Raw materials consumed (1+2-3) 89,24,409.58 1,23,23,679.36
5. Direct Labor 30,98,323.00 34,64,814.00
6. Prime Cost (4+5) 1,20,22,732.58 1,57,88,493.36
7. Factory expenses 27,94,4,437.67 2,80,95,408.29
8. Opening Stock of Work in Progress 3,58,475.00 38,964.00
9. Closing Stock of Work in Progress 38,964.00 2,37,345.00
10. Works Cost (6+7+8-9) 4,02,86,681.25 4,36,85,520.65
11. Administrative Expenses 1,03,87,382.37 1,35,64,215.40
12. Cost of Production (10+11) 50,67,40,63.62 5,72,49,736.05
13. Opening Stock of Finished Goods 3,81,460.00 1,61,500.00
14. Closing stock of Finished Goods 1,61,500.00 2,04,120.00
15. Cost of Goods Sold (12+13-14) 5,08,94,023.62 5,72,07,116.05
16. Selling expenses 15,82,982.5 13,13,835.61
17. Cost of Sales (15+16) 5,24,77,006.12 5,85,20,921.66
18. Profit (19-17) 50,36,397.51 50,42,970.82
19. Sales 5,75,13,403.63 6,35,63,922.48
COMPUTATION OF OPERATING CYCLE
1. INVENTORY CONVERSION PERIOD:

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a)Raw Materials Conversion Period = Raw Material Inventory____ X 360

Raw Material Consumption
Year 2006 = 73, 7638___ X 360

89, 24,409.58
= 28 days.
Year 2007 = 1, 05, 7389____ X360

1, 23, 23,679.36
= 31 days.
b) Work-In-Progress Conversion Period = Work In Process Inventory X 360

Cost of Production
Year 2006 = 38,964______X 360

5, 06, 74,063.62
= Negligible (0.27days).
Year 2007 = 23, 7345____ X 360

5, 72, 49,736.05
= 2 days.
c) Finished Goods conversion Period = Finished goods Inventory X 360

Cost of goods Sold
Year 2006 = 1, 61,500_____ X 360

5, 08, 94,023.62
= 1 day
Year 2007 = 2, 04,120____ X 360

5, 72, 07,116.05
= 1 day
2. DEBTORS CONVERSION PERIOD
Debtors Conversion Period = Debtors____ X 360

Credit Sales
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Year 2006 = 4, 40, 56,052.26 X 360

5, 75, 13,403.63
= 276 days.
Year 2007 = 2, 32, 19,060.98 X 360

6, 35, 63,922.48
= 132 days.
3. CREDITORS DEFERRAL PERIOD
Creditors Deferral Period = Creditors_______ X 360

Credit Purchases
Year 2006 = 39, 18,152___ X 360

88, 45,262.58
= 159 days
Year 2007 = 72, 94,232.43____ X 360

1, 26, 43,430.36
= 208 days.
Operating cycle table

Raw materials conversion period 28 31
Work in progress conversion period Nil 2days
Finished goods conversion period 1 1
Debtors conversion period 276 132
Creditors conversion period 159 208
Gross operating cycle 305 166
Net operating cycle [Gross operating cycle – creditors] 146 - 42

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COMPUTATION OF DIFFERENT ACCOUNTING

RATIOS

a) Current Assets 55,16,4721.41 3,29,57,742.34
b) Current Liabilities 4,36,66,699.58 2,60,89,358.37
c) Quick assets 5,42,26,621.41 3,14,58,88,833
d) Net working capital 1,14,98,021.83 68,68,383.97
e) Net assets ( NWC+FA) 3,48,67,786.41 4,82,48,341.62
f) Sales 5,75,13,403.63 6,35,63,922.48
g) Total assets 55,16,4721.41 3,29,57,742.34
h) Fixed assets 2,33,69,774.58 4,13,79,957.68
i) Gross profit 1,75,06,374.38 2,03,95,204.83
j) Net profit 59,57,895.51 56,28,025.55
k) Current ratio(a/b) 1.2 1.2
l) Quick ratio(c/b) 1.2 1.2
m) Net working capital ratio(d/e) 0.32 0.14
n) Net assets turnover ratio (f/e) 1.6 1.3
n) Total assets turnover ratio(f/g) 1.04 1.92
o) Fixed assets turnover ratio(f/h) 2.46 1.53
p) Current Assets turnover ratio(f/a) 1.04 1.92
q) Working Capital turnover ratio(f/d) 5.00 9.25
r) Gross profit margin(i/f) 0.30 0.32
s) Net profit margin(j/f) 0.10 0.08
LIQUIDITY RATIOS:
The current ratio is a measure of the firm’s short term solvency. It gives a general view
of the adequacy of company’s ability to meet its day today payment obligations. Generally a
current ratio of 2:1 is considered to be satisfactory. In Hind Engineering Works, the current
ratio is lower than 2:1.For both the years it remained constant i.e., 1.2:1.This shows that there
is no sufficient Current Assets to meet the Current Liabilities.
Quick ratio judges the short term debt and repaying ability of the firm. When the quick
assets equal or exceeds the Current Liabilities, the financial position may be considered
satisfactory. The ratio 1:1 is considered as an acceptable form. Here the quick ratio is constant
for both the years. It is always above the acceptance rule. Thus, found to be better.

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Net working capital ratio is used as a measure of firm’s liquidity. It measures the
firm’s potential reservoir of funds. The greater the Net working capital ratio the greater ability
to meet its current obligations. The net working capital ratio has decreased from 0.32 to 0.14.
To conclude, liquidity of Hind Engineering Works is deteriorating. Liquidity ratio can
mislead since Current Assets and Current Liabilities can change quickly. Their utility becomes
more doubtful for the firm with seasonal business changes.
ASSETS TURNOVER RATIOS

Net assets turnover ratio is also known as capital employed turnover. A firm’s ability
to produce a large volume of sales for a given amount of net assets is the most important aspect
of its operating performance. Unutilized or underutilized assets increase the firm’s need for
costly financing as well as expenses for maintenance and upkeep. The net assets turnover ratio
has decreased from 1.6 to 1.3. This means that the industry is producing Rs. 1.3 of sales for one
rupee of capital employed in net assets.
Total assets turnover ratio shows the firm’s ability in generating sales from all
financial resources committed to total assets. This ratio has increased from 1.02 to 1.94. This
implies that the industry generates a sale of Rs.1.94 for one rupee investment in fixed and
Current Assets together.
Fixed and Current Assets turnover ratio indicates the efficiency of utilizing fixed
assets and Current Assets separately. The fixed assets turnover ratio has decreased from 2.46 to
1.43. The Current Assets turnover ratio has increased from 1.04 to 1.92. Interpreting the
reciprocal of these ratios for 2006-07, for generating a sale of one rupee, the company needs
Rs.0.65 investment in fixed assets and Rs.0.51 investment in Current Assets.
Working capital turnover ratio is also known as Net Current Assets turnover ratio.
The ratio has increased from 5.00 to 9.25. The reciprocal of the ratios is 0.19 and 0.10
respectively for 2005-06 and 2006-07.This means for one rupee of sales, the company needs
Rs.0.10 of net Current Assets.

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To conclude, the overall assets turnover ratios show little improvement. The Current
Assets turnover ratio has improved while the fixed assets turnover ratio is declining.
PROFITABILITY RATIOS
Gross profit margin reflects the efficiency with which management produces each unit
of product. This ratio indicates the average speed between the cost of goods sold and the sales
revenue. A higher gross profit margin implies that the firm is able to produce at relatively
lower cost. This ratio has increased from 0.30 to 0.32.This is due to increase in cost of goods
sold and sales.
Net profit margin ratio indicates the management’s efficiency in manufacturing,
administering and selling the products. A firm with high net margin ratio would be in an
advantageous position to survive in the face of falling selling prices, rising cost of production
or declining demand for the product. There is a decrease in net profit margin ratio from 0.10 to
0.08 as the cost of goods sold and sales are increased.

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COMPONENTS OF WORKING CAPITAL

CASH MANAGEMENT
Cash is the important Current Asset for the operations of the business. Cash is the basic
input needed to keep the business running on a continuous basis. It is also the ultimate output
expected to be realized by selling the service or product manufactured by the firm. The firm
should keep the sufficient cash not more or less. Cash shortage will disrupt the firm’s
manufacturing operations while excessive cash will simply remain idle, without contributing
anything towards the firm profitability. Thus, a major function of financial manger is to
maintain a sound cash position.
Cash is the money which a firm can disburse immediately without any restriction. The
term cash includes coins, currency and cheques held by the firm, and balances in its bank
accounts. Sometimes near cash items, such as marketable securities or bank term deposits are
also included in cash.
Cash management is concerned with the managing of:
 Cash flows into and out of the firm.
 Cash flows within the firm.
 Cash balances held by the firm at point of time by financing deficit or investing surplus
cash.
Sales generate cash whish have to be disbursed out. The surplus cash has to be invested
while deficit has to be borrowed. Cash management seeks to accomplish this cycle at
minimum cost. At the same time it seeks to achieve liquidity to control.
EVALUATION OF CASH MANAGEMENT PERFORMANCE
The evaluation of cash management performance is made by analyzing the financial
statement i.e., balance sheet.

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The use of ratio analysis is made for the purpose of evaluation. Various conclusions
have been drawn by making comparison over a period of time.
The following ratios have been used to evaluate different aspects of cash management.
1. Cash to Current Assets ratio.
2. Cash turnover ratio.
3. Average age of cash.
CASH MANAGEMENT IN HIND ENGINEERING

WORKS
COMPONENTS 2005-06 2006-07
a) Cash and Bank balance 18,92,534.02 2,19,153.87
b) Total Current Assets 5,516,4721.41 3,29,57,742.33
c) Total Current Liabilities 4,36,66,699.58 2,60,89,358.37
Ratio %
d) Cash to Current Assets ratio (a/b x 100) 3.4% 0.66%
e) Cash ratio (a/c) 4.33% 0.84%
f) Average age of cash (days) (a/c x 365) 16 days 3 days
Cash to Current Assets ratio:

The cash to Current Assets ratio indicates the extent to which the Current Assets are
represented by cash and bank balances. Thus, the lower this ratio the greater is the profitability
of the concern.
The cash and bank balance reduced from Rs.1892534.20 in 2005-06 to 219153.87 in
2006-07. This is because the company had to pay some instalments.The cash to Current Assets
ratio decreased from 3.4% in 2005-06 to 0.66%in 2006-07.
Cash ratio:
The cash ratio decreased from 4.33% to 0.84%. The company for the year 2006-07
carries a small amount of cash.
Average age of cash:
It indicates the period for which the cash remains unused. So the firm should try to
minimize this period in order to achieve optimum utilization of cash. The average age of cash

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decreased from 16 days in the year 2005-06 to 3 days in the year 2006-07. From this fact it is
clear that the company is utilizing the cash effectively. A continuous check of all the cash and
bank balance is made and it is reported to the top management of very low or high cash
balances. Future forecasts of cash are made to meet the unexpected demand.
RECEIVABLES MANAGEMENT
Receivables management constitutes a substantial portion of Current Assets of several
firms. For example, trade debtors in India, after inventories, are the major components of
Current Assets. They form about one third of Current Assets in India. Granting credit and
creating debtors amount to the blocking of firm’s funds. The interval between the date of sales
and the date of payment has to be financed out of working capital. As substantial amount are
tied up in trade debtors, it needs careful analysis and proper management.
Establishing optimum credit policy.
A firm’s investment in accounts receivables depends on:
a) The volume of credit sales.
b) The collection period.
The volume of credit sales is a function of the firm’s total sales and the percentage of credit
sales to total sales. Total sales depends upon market size, firm’s market share, product quality,
intensity of competition, economic conditions etc. The finance manager hardly has any control
over these variables. The percentage of credit sales to total sales is mostly influenced by the
nature of business and industry norms.
The term credit policy is used to refer the combination of three decision variables:
I. Credit standards,
II. Credit terms.
III. Collection efforts.
On which the finance manager has influence. Credit Standards are criteria to decide the type
of customers to whom goods could be sold on credit. If a firm has more slow paying
customers, its investment in account receivables will increase. The firm will also be exposed to
higher risk of default.

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Credit terms specify duration of credit and terms of payment by customers. Investment in
account receivables will be high if customers are allowed extended time period for making
payments.
Collection efforts determine the actual collection period. The lower the collection period, the
lower the investment in accounts receivables and vice- versa.
RECEIVABLES MANAGEMENT IN HIND

ENGINEERING WORKS
Debtors turn over = Credit sales

Debtors
Year 2006 = 57513403.63

44056052.26
= 1.30 times
Year 2007 = 63563922.48

23219060
= 2.73 times
Average collection period = 360___________ = Debtors X 360

Debtors’ turnover Sales
Year 2006 = 360

1.30
= 276 days
Year 2007 = 360

2.73
= 132 days

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To conclude the Debtor’s Collection period has decreased from 276 days in the year
2005-06 to 132 days in the year 2006-07.This shows there is improvement in the debtor’s
collection period.

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INVENTORY MANAGEMENT
Inventories constitute the most significant part of Current Assets of a large majority of
companies in India. On an average inventories are approximately 60 percent of Current Assets
in public limited companies in India. Because of the large size of inventories maintained by the
firms, a considerable amount of funds is required to be committed to them. It is, therefore,
absolutely imperative to manage inventories efficiently and effectively in order to avoid
unnecessary investment.
Nature of Inventories:
Inventories are stock of the product company is manufacturing for sale and the
components that make up the product. The various forms in which inventories exist in a
manufacturing company are:
 Raw materials are those basic inputs that are converted into finished product through
the manufacturing process. Raw materials inventories are those units which have been
purchased and stored for future productions.
 Work-In-Process inventories are semi manufactured products. They represent products
that need more work before they become finished products for sale.
 Finished goods inventories are those completely manufactured products which are
ready for sale. Tocks of raw materials are work in process facilitate production, while
stock of finished goods is required for smooth marketing operations. Thus, inventories
serve as a link between the production and consumption of goods.
Need to hold inventories:

A company should maintain adequate stock of materials for a continuous supply to the
factory for an uninterrupted production. It is not possible for a company to procure raw
materials whenever needed. A time lag exists between demand for materials and its supply.
Also, there exists uncertainty in procuring raw materials in time on many occasions. The
procurement of raw materials may be delayed because of such factors as strike, transport

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Disruption or short supply. Therefore, the firm should maintain sufficient stock of raw
materials at a given time to streamline production.
Work in process inventory builds up because of the production cycle. Production cycle
is the time span between introduction of raw materials into production and emergence of
finished product at the completion of production cycle. Till production cycle completes,
stock of work in process has to be maintained. Efficient firms constantly try to make
production cycle smaller by improving the production techniques.
Stock of finished goods has to be held because production and sales are not
instantaneous. A firm cannot produce immediately when goods are demanded by
customers. Therefore, to supply finished goods on a regular basis, their stock has to be
maintained.
Objectives of inventory management

 To maintain a large size of inventory for efficient and smooth production and sales
operations.
 To maintain a minimum investment in inventories to maximize profitability.
 Ensure a continuous supply of raw materials to facilitate uninterrupted production.
 Maintain sufficient stocks of raw materials in periods of short supply and anticipate
price changes.
 Maintain sufficient finished goods inventory for smooth sales operation, and
efficient customer service.
 Minimize the carrying cost and time
 Control investment in inventories and keep it at an optimum level.

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INVENTORY MANAGEMENT IN HIND

ENGINEERING WORKS
PARICULARS 2005-06 2006-07
a) Average inventories 93,8100.00 14,98,854.00
b) Cost of goods sold 5,08,94,023.62 5,72,07,116.05
c) Inventory turnover ratio (b/a) 54.25 38.16
d) Inventory conversion period (days) (a/bx360) 7 9
Inventory turnover ratio
This ratio has been decrease from 54.25 in 2005-06 to 38.16 in 2006-07. Steps should
be taken to increase the inventory turnover ratio for better management of inventories and
reduce the cost of inventories.
Inventory conversion period
It refers to the period that manufacturing unit takes to clear a lot of stock. It has
increased from 7 days in 2005-06 to 9 days in 2006-07. It is desirable to have short conversion
period because it will help in reducing accumulation of inventories.
The efficiency in turning the inventories is deteriorating. The company’s utilization of
inventories in generating sales is poor

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7S MODEL
OF
MC KINSEY
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The Mc Kinsey 7 - S Framework
Mc Kinsey Company, a very well known management

consultancy firm, developed the 7-S framework. It aimed to diagnose the cause of the company
problem and to formulate program for improvement.
Following is the flow chart of 7-S model:
Structure
System
Staff s
Super
Ordinat
e
Goals
Style
Skills
Strategy

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1) Super Ordinate Goal:

This may be considered to “company purposes”. According to
framework super ordinate goal refers to “…a set of values and aspirations, of them unwritten
that goes beyond the convectional formal statement of corporate objectives. Super ordinate
goals are the fundamental ideas around which a business is build. They are its main values.
They are the board notions of future directions that the top management team infuses
throughout the company. They are the way in which the team wants to express itself to live its
own mark.
VISION AT "HIND GROUP"

• "HIND GROUP OF INDUSTRIES” is committed to provide high quality products,
which will delight customers.
• They shall involve all employees in quality improvement process and continuous
improvements in all functions.
• They shall emphasize more on preventive measures rather than
rectification of errors.
• They shall involve sub-contractors and guide them for achieving the required quality of
products and services
2) Structure:
It is the skeleton of the whole company edifice. Company structure refers to the
relatively more durable company arrangement and relationship. It prescribes the formal
relationship among various positions and activities. It includes arrangement about reporting
relationship, how the company member is to communicate with other members, what roles to
perform and what rule and procedure exist to guide the various activities performed by
company members, are all parts of company structure.

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U. M. KAKATKAR
MANAGING DIRECTOR
ORGANISATION CHART
S.T.SHINDE
P.N.KAKATKAR A.D.BIDKAR
WORKS MANAGER
EXECUTIVE DIRECTOR DIRECTOR (HI-TECH)
MANAGER MANAGER MANAGER MANAGER MANAGER

ACCOUNTS PURCHASE Admin. /Personnel Heat Treatment
MARKETING
MANAGER MANAGER Sr. MANAGER Sr. MANAGER ENGINEER

Quality Control Quality Control Prodn. & Planning Semi-Finish Opn. Devp. & Tooling
QC INCHARGE QC INCHARGE QC INCHARGE

LINE - I LINE - II LINE - III
LINE INSPECTORS.
STAGE FINAL
QC QC
INSPECTORS. INSPECTORS.
LINE MANAGER FOR LINE MANAGER
TATA MOTORS LIMITED MAHINDRA & OTHERS PRODUCTS
ENGINEER SHIFT INCHARGES PURCHASE OFFICER

Maintenance (Elect. / Mech.)

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3) System:
System refers to all the rules, regulation and procedure, both formal that compliment the
company structures. It includes production planning and control system, capital budgeting
system, training and development system.
The company adopts 5-S concept, Total Productive Maintenance policy, Safety policy,
Environment Policy, Quality assurance System, which contains the rules and regulations to be
followed. All the activities are explained in detail for training the new employees.
3) Style:-
Style is one of the seven levels, which top management can use to bring about company
change. Companies differ from each other in their style of working. The style of company
becomes evident through the pattern of action taken by member of the top management
scheme over a period of time.
The company emphasis on quality and maximum utilization of resources. The company
adopts “QUALITY POLICY” with help to increase efficiency and cost reduction. The
company is planning to produce more complicated products having additional value.
QUALITY POLICY
HIND Group manufacturers and suppliers are committed to:
Meet customer requirements and strive for excellence through continual
improvement of our products, processes and systems.
Involve all employees and other interested parties and work with team spirit in
achieving organizations objectives.

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Take decisions and actions based on analysis of data and information to ensure
improvement and growth.
5) Staff
Staffing is the process of acquiring human resources for the company and ensuring that they
have the potential to contribute the achievement of the company’s goals. It is selecting people
for specific company position and developing in them the ability and skills that they would
need to be effective in these and subsequent assignments. The staffing function applies to the
whole company.
It is the policy of the company to make all man power allocation on the basis of
projections made through the approved annual manpower plan. The company believes that
ensuring optimum utilization of human resources can be achieved only by proper planning
considering production and development activities. It is therefore, essential that all personal
activities such as recruitment, Training, Transfers, career and succession planning should be
conformed to the approved annual plan. The company expects all departments to conform
strictly to the norms and procedures of the manpower plan lay down by management.
6) Skill
The skills refer to the Dominant attributes or capabilities that exist in the individuals. The
term skills include those characteristics, which most people use to describe the company.
Companies have strengths in number of areas. These are developed over a period of time. The
company 5-S System, which was first originated in some foreign countries, Quality assurance,
etc are some of the skills of the company.
The capabilities and competencies that exist within the company. They think in
advance and build infrastructure. Decision-making is fast as the partners are directly involved
in infrastructure, manpower planning etc.
7) Strategy:

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The strategy refers to short term or long-term policies. It means the set of actions that you start
with and must maintain. The direction and scope of the company over the long term.
Longer-term prospects post deregulation suggests substantial ongoing growth potential.
Network expansion, product development, distribution efficiencies, and cost reduction all offer
considerable scope set against a continuing background of consistent demand growth. Produce
more critical components having additional value and concentrate more on exports.
DESIGN
OF

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THE
STUDY
OBJECTIVES.
 To expose to ourselves the working of organization and management.

 The main object is, to estimate the working capital requirement of Hind Engineering
Works.
 To study the inventory management.
 To analyze the cash management.
 To evaluate the profitability of the firm.
 To understand the overall functioning of Hind Engineering Works.
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SCOPE.
The project involves understanding of organizational study, which was carried out in HIND
ENGINEERING Works, Belgaum.
The CEL is a project pertaining to organizational study and working capital management at
Hind Engineering Works. This study covers the working of different departments, profile of
the company, product profile and other related aspects.
LIMITATIONS.
 This study is limited to collect 2 years data.
 The accuracy of the results depends upon the information present in the Balance sheet
and Profit and loss account of the company.
 There may be some errors and mistakes in data interpretation
 In plant training period is short.
 Some data is collected from secondary source.
 The results are based on the assumption that the information provided by the
respondent was correct.
RESEARCH DESIGN AND METHODOLOGY.

A design is the program that guides the investigation in the process of collecting, analyzing and
interpreting observation.
Methodology is the systematic approach to the given problem. In other words it is the way in
which we go for the collection of data.
Data is collected through;
 Primary data.
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 Secondary data.
Primary data is the actual and very important data collected by investigator.
SOURCES:
i. Discussion with different managerial personnel.
ii. The financial records of the company
iii. By personal observation.
iv. By discussion with employees.
Secondary data is the data which is already collected by some one else and which is used
for our study purpose. It is the data, which gives relevant information in different fields
wherever we want.
SOURCES:
 Internet.
 Company manuals.
 Text books

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FINDINGS
AND
SUGGESTION
S

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FINDINGS
 It is a profit making concern
 The operating cycle is negative for the current year, hence beneficial to the company. But,
too much reliance on trade creditors may be beneficial in short run but in the long run this is
bound to create trouble since it spoils the reputation of the firm. So the firm should try to reduce
the creditors.
 The liquidity ratio and the net profit margin ratio are deteriorating. Whereas the assets
turnover ratio has shown a little improvement.
 The cash management and receivables management shown a positive indication whereas the
management of inventories is deteriorating.
SUGGESTIONS
 Working capital has to be increased.
 Liquidity position is quite satisfactory. Working capital should be managed effectively
so that the liquidity position is not affected.
 More attention should be given to inventory management.
 Reduce the creditor’s period.
 Affix management sayings in every department.
 To provide proper rest rooms and canteen facilities.
 To make the workers strictly follow the safety rules.
 To go for direct exports.
 To maintain cleanliness in purchase department.
 To conduct management games/ cultural programs for workers so that they come into
contact with one another, this helps to keep a healthy relation and a healthy environment.
 The Company should promote, expand, acquire more human resources, produce more,
and do more sales.

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 Conduct campus interview.
CONCLUSION
HIND ENGINEERING was established in the year 1963. Since 1963 it has been
successfully carrying out its business activities. In this unit there is a demand for experienced
and qualified people.
The industry is well equipped with computers and is controlled by competent persons.
There is a good labor management relationship maintained. Workers directly contact the
personnel department in case of difficulty. Thus, it has created a friendly atmosphere for the
employees and gives them freedom to work freely. The industry also gives benefits from its
various schemes. The overall working capital management in the company could be described
satisfactory.
This project have not only helped enhancing my knowledge but also have create lot of
interest in this area and also have helped me in knowing the present corporate working which
have generated lot of confidence and perfection.

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ANNEXUR
GROUP ACHEIVEMENT

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HIND ENGINEERING WORKS

People’s Education Society & Trust.

A Project Report on:

Belgaum Institute of Management Studies- Degree

INTERNAL GUIDE EXTERNAL GUIDE

I do hereby state and declare that this project

I also hereby declare that this project report

Belgaum Institute of Management Studies- Degree

Its human bond duty to acknowledge all those personalities

Belgaum Institute of Management Studies- Degree

I also express thanks to all the faculty members for

The area of the study is Finance. In finance particularly I

Belgaum Institute of Management Studies- Degree

Vision, Achievements, Awards.

 Functional Area Analysis

 Design of the study

 Findings and suggestions

Belgaum Institute of Management Studies- Degree

Belgaum Institute of Management Studies- Degree

Belgaum Institute of Management Studies- Degree

Belgaum Institute of Management Studies- Degree

Belgaum Institute of Management Studies- Degree

1. Mahindra & Mahindra.

HIGHLIGHTS OF HIND GROUP

Belgaum Institute of Management Studies- Degree college

RELEVANT INFORMATION OF GROUP COMPANIES.

Factory Area Power

372, Dharwad Road,

NEW FOR EXPANSION UDYAMBAG 10000 - - -

Belgaum Institute of Management Studies- Degree

NAME OF THE COMPANY : HIND ENGINEERING WORKS

Belgaum Institute of Management Studies- Degree

Belgaum Institute of Management Studies- Degree

BASIC BUSINESS INFORMATION

 MANUFACTURING CRANKSHAFTS FOR

CONTINUOUS BUSINESS GROWTH PLANS

• PRODUCT MIX – WIDE RANGE OF PRODUCTS

Belgaum Institute of Management Studies- Degree

MATERIAL FLOW CAHRT

FINISH & DESPATCH

HIND AUTOCRANKS HIND INDUSTRIES

HIND AUTOCRANKS PVT. HIND ENGINEERING

Belgaum Institute of Management Studies- Degree

VISION AT "HIND GROUP"

• "HIND GROUP OF INDUSTRIES” is committed to provide high quality products,

HIND Group manufacturers and suppliers are committed to:

Belgaum Institute of Management Studies- Degree

Belgaum Institute of Management Studies- Degree

U.M.Kakatka : Managing Director

Belgaum Institute of Management Studies- Degree

1. Number of customers increased from 4 to 6.

1. ISO-9001-2000 Quality systems accredited by JOINT ACCREDIATION SYSTEMS of

Belgaum Institute of Management Studies- Degree

 Change in Government policies.

Belgaum Institute of Management Studies- Degree

VARIOUS DEPARTMENTS AT HIND ENGINEERING

4. MARKETING AND SALES DEPARTMENT.

5. QUALITY ASSURANCE DEPARTMENT.

6. FINANCE / ACCOUNTS DEPARTMENT.

Belgaum Institute of Management Studies- Degree

DEPARTMENT HEAD AND UNIT HEAD

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