Pragati sharma

13,045 views

Published on

aarti project report

Published in: Business, Technology
1 Comment
0 Likes
Statistics
Notes
  • hey can u give whole project of aarti
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total views
13,045
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
95
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Pragati sharma

  1. 1. A SUMMER TRAINING & PROJECT REPORT ON “HUMAN RESOURCE AUDITING ” FOR AARTI INDUSTRIES LIMITED In the partial fulfillment of the requirement for M.B.A (Full Time) Submitted By SHARMA PRAGATI SUSHIL (M.B.A.) DIV A ROLL NO 50 Submitted To PROF. JAYSHRI TAYLOR (Internal Guide) MR. KIRIT SASHTRI (External Guide) G.I.D.C. RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES, GRIMS, Vapi AFFILIATED WITH VEER NARMADA SOUTH GUJARAT UNIVERSITY, SURAT ACADEMIC YEAR 2007-08
  2. 2. AARTI INDUSTRIES LIMITED DECLARATION I, SHARMA PRAGATI SUSHIL hereby declare that the report on summer training and project work entitled “HUMAN RESOURCE AUDITING” submitted to ‘GIDC Rajju Shroff Rofel Institute of Management Studies” is a result of my own work and my gratitude to other work publications if any, have been duly acknowledged. PLACE: VAPI DATE: SHARMA PRAGATI PRAGATI SHARMA
  3. 3. AARTI INDUSTRIES LIMITED ACKNOWLEDGEMENT “Turning aspirations into realities is easier when quality people are support of ones efforts” I greatly concede the help provided by the company and the people working for providing the much valuable information and also extend my thanks for the support throughout the project report. I am also thankful and acknowledge my depth gratitude to my teachers and the director of GRIMS Dr. S.S.SHAH for his constant encouragement and direction in the completion of this project report. I am obliged to him and express gratitude to him for giving me a great opportunity for the preparation of the project report. I would like to express my heartful of gratefulness to Mr. Kirit Shastri for having given me this opportunity to do a project in this esteemed organization. I am also thankful and concede my depth of gratitude to my professor guide Mrs Jayshri Taylor for her constant encouragement and supervision in the completion of this training and the project. PRAGATI SHARMA PRAGATI SHARMA
  4. 4. AARTI INDUSTRIES LIMITED CERTIFICATE This is to certify that Ms. PRAGATI SHARMA has satisfactorily completed the work entitled, “SUMMER TRAINING PROJECT” specialization topic “HUMAN RESOURCE AUDITING”. Based on the declaration made by the candidate and my association as a guide for carrying out this work, I recommended this project report for evaluation as a part of the MBA Programme of Veer Narmad South Gujarat University. Date: 09/08/2007 Place: Vapi ___________________ (Guided By: JAYSHRI TAYLOR) __________________ (Director) Dr. R. S. shah PRAGATI SHARMA
  5. 5. AARTI INDUSTRIES LIMITED EXECUTIVE SUMMARY The summer training report contains the detail of employees of AIL about their living status and other problem faced by there in there day to day life. Than what is CSR a small idea about that by theoretical as well as from companies point of view. The report starts with introduction of the Indian Chemical Industry with the history of the AARTI INDUSTRIES LIMITES. The goals, mission and vision are also added. Than what is CSR a small idea about that by theoretical as well as from companies point of view. The finance department is covered every necessary information. The marketing department of the company was in Mumbai so we were not able to get complete information about the marketing department of the company. The production department has in it all the production details with the production process and the ETP plant which is situated in the company and owned by the company. The specialization project undertaken was in accordance to the Human Resource Department of the organization to know the working of the department in organization. PRAGATI SHARMA
  6. 6. AARTI INDUSTRIES LIMITED The Human Resource Auditing was basically done to know the working, systems policies and the procedures that are prevailing in the department of the organization. The methodology adopted for the completion of the project was to approach the Human Resource manager with a set of questionnaire. The data gathered shows that the AARTI INDUSTRIES LIMITED is having a good human resource department. The report contains the introduction of the Auditing. What does Audit contains? Why should Auditing be conducted? The analysis is done with the help of the questions asked and the response from the Human Resource Manager of the AIL. Then the findings are being shown. Lastly the suggestions are given to the company after the interpretation of the response of the Human Resource Manager. PRAGATI SHARMA
  7. 7. AARTI INDUSTRIES LIMITED INDEX PART 1 (ALL DEPARTMENT) SR. NO TOPIC PAGE NO 1 THE STRUCTURE OF THE CHEMICAL 1-2 INDUSTRY 2 AARTI INDUSTRIES LIMITED 3-15  CORPORATE INFORMATION 3-5  INTRODUCTION 6-10  THE COMPETITIVE ADVANTAGE OF 11 AARTI INDUSTREIS LIMITED 3 HUMAN RESOURCE DEPARTMENT 16-60  RECRUITMENT 19-24  SELECTION 25-27  PROMOTION AND TRANSFER 28-30  TRAINING AND DEVELOPMENT 31-32  REMUNERATION 33-38  PERFORMANCE APPRAISAL 42-45  MEDICLAIM POLICY 48-49  SOCIAL RESPONSIBILITY 50-60 o (CSR) 56-60 PRAGATI SHARMA
  8. 8. AARTI INDUSTRIES LIMITED 4 FINANCE DEPARTMENT 61-81  INTRODUCTION 61-64  STRUCTURE OF FINANCE DEPARTMENT 65  BALANCE SHEET 70  PROFIT & LOSS A/C 71  RATIO ANALYSIS 72-76  SHAREHOLDING PATTERN 77-78  CHARTS 79-81 5 MARKETING DEPARTMENT 82-122  INTRODUCTION 82-86  STRUCTURE OF MARKETING 87 DEPARTMENT  THE HOLISTIC MARKETING APPROACH 88-90 SR. NO TOPIC PAGE NO  THE MARKETING MIX 94-114 o PRODUCT 95-103 o PRICE 104-107 o PLACE 108-113 o PROMOTION 114  PACKAING, LABELLING, WARRANTIES 115-120 AND GUARANTEES.  THE DISTRIBUTION CHANNEL 121  MODE OF TRANSPORTATION 122 6 DESPATCH DEPARTMENT 123-125 PRAGATI SHARMA
  9. 9. AARTI INDUSTRIES LIMITED 7 PRODUCTION DEPARTMENT 126-  INTRODUCTION 126-127  PLANT LAYOUT 128-129  PRODUCTION PROCESS 130-133  PRODUCTS 134-142  QUALITY CONTROL 143-147 8 RESEARCH & DEVELOPMENT DEPARTMENT 148-149 9 STORES DEPARTMENT 150 10 PLANT UTILITY DEPARTMENT 151-153 11 HEALTH AND SAFETY 154-156  AARTI HEALTH CARE 155-156  SAFETY DEPARTMENT 157-165  SHE POLICY 166-168 12 PROCESS OF HANDLING HAZARIOUS CHEMS 169-170 13 MAINTENANCE DEPARTMENT 171-172 14 EFFLUENT TREATMENT PLANT 173-177 15 SWOT ANALYSIS 178-179 16 ANNEXURE 17 BIBLIOGRAPHY AARTI PRAGATI SHARMA
  10. 10. AARTI INDUSTRIES LIMITED INDUSTRIES LIMITED THE RIGHT CHEMESTRY FOR A BRIGHTER TOMORROW THE STRUCTURE OF THE CHEMICAL INDUSTRY PRAGATI SHARMA
  11. 11. AARTI INDUSTRIES LIMITED In tune with the fast changing economic environment in the country, the Indian chemical industry too is on a steady growth path. Indian chemical industries has a strong and diversified base encompassing many areas such as organic and inorganic chemicals, plastic, fibers, dye stuffs, paints, pesticides, insecticides, speciality chemicals, drugs and pharmaceuticals. The growth in this sector has constantly been increasing than the average growth rate of the manufacturing sector in India. The chemical industry is sometimes referred to as the "keystone" industry because of the way the rest of the manufacturing sector relies on chemicals. Chemicals are nearly a $1.5 trillion global enterprise, and the U.S. chemical industry is the world's largest producer. The chemical industry is also the second largest consumer of energy in manufacturing and spends over $5 billion annually on pollution abatement. Chemical industry has 21% of total energy consumption. The Indian economy is firmly on the path of the steady growth. Even during the last decade when the other countries were in the grip of the massive slowdown, India continued to enjoy a comfortable position. This recent spurt in the growth is propelled by radical reforms such as the removal of the restrictions on foreign investment and industrial delicensing. With substantial increase in the domestic Gross Domestic Product (GDP) rate; the growth is also translated into increasing the demand in the domestic sector in various chemicals. Simultaneously the chemicals sector also shows growth in export. THE INDIAN CHEMICAL INDUSTRY SIZE US $ 28 BILLION Knowledge 18% Basic Speciality 57% 25%  Chemical Industry is an important constituent of the Indian economy.  Its size is estimated at around US $ 28 billion approx, which is equivalent to about 7% of India’s GDP. PRAGATI SHARMA
  12. 12. AARTI INDUSTRIES LIMITED  In terms of volume, it is 12th largest in the world, and 3rd largest in Asia.  Within India, it constitutes about 15% of manufacturing capacity and 20% of the Excise revenue to the Government of India.  Chemical industry has weight age of about 13% in the index of industrial production.  The global chemical industry is valued at about US $ 1.7 trillion. Of which, India’s chemical sector accounts for just 2%. {The Indian chemical industry is the 12th largest in the World and 3rd largest in Asia. The Indian chemical industry constitutes 12.5% of the country’s industrial production and 15%of the manufacturing capacity of India. Also the chemical industry constitutes 6.7% to India’s GDP.} India’s Chemical Industry Export  India’s chemical exports have recorded growth rate of 9%.  For the year 2001-02, the chemical industry accounted for more than 16.20% of the total Indian exports.  For the year 2001-2002 exports of all chemicals and allied products were US $ 4684 million. PRAGATI SHARMA
  13. 13. AARTI INDUSTRIES LIMITED CORPORATE INFORMATION ∗ Name of the Company : AARTI INDUSTRIES LIMITED ∗ Type of Company: Public Limited ∗ Established Year : 1984 ∗ Size of Company: Large Scale ∗ Plants :  Plot no. 801,801/23, 802,803/1-2-3, GIDC, Phase 3, Vapi-396195  Plot no. 902, GIDC ESTATE, PHASE 2, VAPI-396195, DIST: VALSAD, GUJARAT.  Plot no. 752-753-754 SARIGAM, TAL: UMARGOAN, DIST: VALSAD, GUJARAT  Plot no.758/1, 758/2, GIDC ESTATE JHAGADIA, DIST: BHARUCH, GUJARAT  Plot no. K-18, MIDC, TARAPUR, DIST: THANE, MAHARASHTRA. PRAGATI SHARMA
  14. 14. AARTI INDUSTRIES LIMITED  Plot no. E-50, MIDC, TARAPUR, DIST: THANE, ∗ REGISTERED OFFICE: Plot no.801, 801/23 GIDC ESTATE, PHASE-3, VAPI-396195, VALSAD ∗ CORPORATE OFFICE : Udyog Kshetra, 2nd floor, L.B.S.Marg, Mulund-Goregaon Link Road, Mulund (W), Mumbai-400 080 Man-Power Force ∗ Board of Directors Chandrakant V. Gogri Chairman Rajendra V. Gogri Vice-Chairman & Managing Director Shantilal T. Shah Vice-Chairman ∗ Independent Directors : Ramdas M. Gandhi Laxmichand K. Jain Vijay H. Patil Haresh K. Chheda ∗ Whole-time Directors : Parimal H. Desai Manoj M. Chheda Rashesh C.Gogri Hetal Gogri Gala Kirit R. Mehta PRAGATI SHARMA
  15. 15. AARTI INDUSTRIES LIMITED ∗ Company Secretary Mohan P. Sonar ∗ Auditors M/s. Parikh Joshi & Kothare, 49/2341, M.H.B.Colony, Gandhi Nagar, Bandra (East), Mumbai-400 051 ∗ Registar & Transfer Agent :  Sharpro Services (India) Pvt.Ltd., Satam Estate, 3rd floor, above Bank of Baroda, Cardinal Gracious Road, Chakala, Andheri (E), Mumbai-400 099 ∗ Bankers:  Bank of Baroda  Union Bank of India  State Bank of India  ABN Amro Bank  Standard Chartered Bank  HDFC Bank Ltd.  Export-Import Bank of India  IDBI Bank Ltd.  City Bank N.A.  UTI Bank Ltd.  ICICI BANK LTD PRAGATI SHARMA
  16. 16. AARTI INDUSTRIES LIMITED PRAGATI SHARMA
  17. 17. AARTI INDUSTRIES LIMITED AARTI INDUSTRIES LIMITED In the business world, the only constant is change. Paradigms are remodelled, visions and business strategies modified, and technologies upgraded in response to the needs and challenges of a changing world. In other words, organizations have to change to survive, to remain competitive and to succeed. AARTI INDUSTRIES LIMITED (AIL) is a dynamic organization, continuously investing in innovative products and processes, as well as cleaner technologies, to meet shareholder aspirations and societal expectations. AARTI was started in the year 1984. The first unit of AARTI group, ALCHEMIE LABORATORIES, commenced commercial production of DIMETHYL SULPHATE (DMS) in the year 1975. Today, AARTI has acquired world-class expertise in the development and manufacturing of basic bulk chemicals, dyes & pigment intermediates, pharmaceuticals & agrochemicals along with their intermediates, rubber chemicals, surfactant intermediates and speciality chemicals. AARTI is amongst the largest producers of Benzene based basic and intermediate chemicals in India At AIL, they believe that the pursuit of corporate goals and commitment to social responsibilities have to go hand in hand. So, while the AIL are one of the largest producers of benzene-based intermediates in India and are ranked among the top five producers in the world, the AIL is also an organization alive to their responsibilities as a good corporate citizen. The people at AIL believe that high standards of business conduct are integral to earning the trust and respect of stakeholders and therefore have zero tolerance towards unethical behaviour or corruption in any of their business dealings. PRAGATI SHARMA
  18. 18. AARTI INDUSTRIES LIMITED AIL is a multi-product, multi-location company manufacturing over 125 products at global-scale. AARTI has manufacturing sites at Gujarat, India (Vapi, Sarigam & Jhagadia) and at Maharashtra, India (Tarapur & Dombivli). The Tarapur facility of AIL’s API division. AARTI has attained a total turnover of US $ 189 million in the year April 2003- March 2004 with flagship companies AARTI INDUSTRIES LIMITED (AIL) & AARTI DRUGS LIMITED (ADL) listed on Stock Exchanges. AARTI has a Subsidiary AARTI HEALTHCARE LIMITED (AHCL), which is engaged in manufacturing of Active pharma ingredients ranging from Ace Inhibitors, Broncodialators to Steroids.Recognizing the importance of research, AARTI has established three full-fledged DSIR (Dept. of Scientific & Industrial Research)- Government of India recognized R & D centers, which carry innovative product and process development work. AARTI INDUSTRIES LTD. is an ISO 9002/GMP certified organization and a flagship company of the USD 259 million strong Aarti Group. AARTI has the privilege of catering to the requirements of leading manufacturers of dyes, pigments, pharmaceuticals, agrochemicals and rubber chemicals in countries such as USA, UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China, Russia, etc. AARTI also has representatives in USA & a subsidiary company in UK to provide better services to its Export Customer. For the people at AIL, sustainable growth is not an end-point, but an ongoing process and a life-time commitment. The dedication of AARTI INDUSTRIES LIMITED to the principles of sustainability is best encapsulated in their company's motto - "The right chemistry for a better tomorrow". A better tomorrow for our children and future generation. PRAGATI SHARMA
  19. 19. AARTI INDUSTRIES LIMITED AIL will always be a socially responsible company. The company AIL always value the active involvement of their people their mission of achieving sustainable growth. The company also thanks all of their shareholders, customers, business partners, as also the media, financial institutions, industrial associations, NGOs, government organizations, neighbouring industries and local communities for placing their trust in the company i.e. The AARTI INDUSTRIES LIMITED and being a part of this exciting journey of sustainable growth. At AIL, a sharp focus on the three main constituents of the "Triple Bottom Line"- economy, society, and environment – guides their activities towards greater sustainability. AARTI INDUSTRIES commitment to corporate social responsibility is corroborated by the company’s emphasis on creating a performance-based ambience for their people, their respect for human rights and labour welfare, their commitment to high ethical standards, their initiatives in the areas of health, education and environment preservation, and their endeavors to create value for the company’s stakeholders. Over the last two decades, we have acquired world-class expertise in the development and manufacturing of basic bulk chemicals, dyes & pigment intermediates, pharmaceuticals & agrochemicals along with their intermediates, rubber chemicals, surfactant intermediates and speciality chemicals. AIL’s API division, Aarti Healthcare, makes high-value lifestyle APIs which are used in manufacturing cardiovascular, antiasthmatic, anti-cancer, anti-thalassaemic, anti- hypertensive and anti-depressant drugs Exports account for over 40% of our total sales. At present, AIL export to more than 40 countries worldwide including USA, UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China and Russia. Over 60% of AIL’s exports are to developed countries, with more than 40% going to the EU. PRAGATI SHARMA
  20. 20. AARTI INDUSTRIES LIMITED GOALS AARTI group is strategically placed to exploit growth opportunities in the Chemical Industry. In view of its technical expertise and broad base satisfied clientele in India and abroad, AARTI is looking for global partners and strategic alliances in areas of mutual interest viz. o Development of International markets for AARTI's products. o Toll manufacturing. o Transfer of Technology / Technical know-how. VISION STATEMENT We will be a world-class organization that enhanced value to our customers and other shareholders by o Caring for employee to work as motivated terms in open and learning environment. o Setting challenge new standards of performance. o Focusing on total quality, innovation and responsible care towards the environment. PRAGATI SHARMA
  21. 21. AARTI INDUSTRIES LIMITED MISSION STATEMENT We are in the problem of manufacture and supply of crop production and specialty chemicals worldwide providing solutions to optimize farm productivity for the Indian farmer through out innovate and cost effective product to provide the customer, better value of money. ♦ Exceed the expectations of our valuable customer for quality of products and services. ♦ Strive to make continuous important and bring excellence in productivity, safety, environment and hygiene in all the area of operation. ♦ Emphasize on appropriate training to all the employees and be open to all their suggestions through team participation. ♦ Strive to make AARTI INDUSTRIES LIMITED of a world-class organization. THE COMPETITIVE ADVANTAGE OF AARTI INDUSTREIS LIMITED PRAGATI SHARMA
  22. 22. AARTI INDUSTRIES LIMITED • The AARTI INDUSTRIES LIMITED (AIL) considers that their R&D is quite good which helps the industry in gaining the advantage compared to their competitors. • The people in the AIL’s R&D department keep on doing the research work continuously which helps them in gaining more advantage than that of their competitors i.e. reduction of the cost or increasing the quality of the product that are to be served to theirs customers. POSITION OF AARTI INDUSTRIES LIMITED (AIL) The manufacturing units of the AIL are of global scale and are mostly in the States of Gujarat and Maharashtra. Both the units are ISO / GMP certified. The plants are highly incorporated along with Cost-Efficient Manufacturing Process and Low capital investment and manufacturing more than 100 products. The AARTI INDUSTRIES LIMITED is ranked amongst top 5 Global manufacturers for their key product and their continuous R&D support and process improvement is the key for Company to remain competitive globally. PRAGATI SHARMA
  23. 23. AARTI INDUSTRIES LIMITED SOME KEY FACTS ABOUT AIL • AARTI INDUSTRIES LIMITED is one of the largest producers of benzene-based basic and intermediate chemicals in India and among the top five globally. • AARTI INDUSTRIES LIMITED one of the top three producers of Dimethyl Sulphate in the world. • The AARTI INDUSTRIES LIMITED has a fully backward integrated plant for Dimethyl Sulphate, i.e., starting from Sulphur and Methanol. • AIL Rs.500 crore company manufacturing Organic chemical and Intermediates for Vapi unit. • AIL derives about 90 per cent of its revenues from specialty and basic chemicals. • Through its backward integration manufacturing, AARTI INDUSTRIES LIMITED acquires the competitive advantage with respect to the availability of raw materials and reduced cost. PRAGATI SHARMA
  24. 24. AARTI INDUSTRIES LIMITED • AIL has the largest installed capacity of chloro-benzene (ONBC and PNBC) domestically. • The company is adding more fluorine based products in its portfolio. • The company has in recent times been focusing on specialty chemicals and pharmaceuticals. • AARTI INDUSTRIES LIMITED doubled its sales turnover in the last four years from Rs 345 crores in 2001-2002 to Rs 786 crores in 2005-2006 whereas exports increased more than three times during that period from Rs 101 crores in 2001-2002 to Rs 342 crores in 2005-2006. • AARTI INDUSTRIES LIMITED carries out custom synthesis activities and undertakes contract research & manufacturing. • AARTI INDUSTRIES LIMITED was been presented the star exporter award for 2004-05 by "The Gujarat Dyestuffs Manufacturers' Association" for earning the highest foreign exchange from direct export of self-manufactured dyes & dyes intermediates. This was one of a biggest reward to the AARTI INDUSTRIES LIMITED for their efficient effort. PRAGATI SHARMA
  25. 25. AARTI INDUSTRIES LIMITED General Rules and Regulation These are the rules and regulations that the employees of AARTI INDUSTRIES LIMITED have to pursue stringently and the employees do follow all these rules and regulations happily for the betterment of their lives as well as the company. ♦ The Employees cannot bring any kind of unnecessary resources like matchboxes or cigarette, alcohol, tobacco, etc. ♦ The employee after entering the premises of the AIL should always put on his identity card with him. ♦ During functioning hours the employees should not meander any where, devoid of their work and wasting the time. ♦ While entering and departing out of the AARTI’s premises each and every employee should make an entry by means of purchasing card from the security office at the main gate of the AIL. ♦ Any employee of AIL should not remain missing or absent without former informing to his department head and P & A. Dept. unless and until the explanation of absent is bad health or any urgency that might have occurred. ♦ Every employee should be dressed in uniform that has been provided to them by the company while entering the premises of the AIL with the safety shoes, apron and safety helmet as per pre instructed to them. PRAGATI SHARMA
  26. 26. AARTI INDUSTRIES LIMITED Company’s shared value: o Global capacities o Customer Satisfaction o Quality and logistics o Continuous cost control o High value addiction o Diversified product range o Loyal work force o In-house recognized R & D Centers. PRAGATI SHARMA
  27. 27. AARTI INDUSTRIES LIMITED PRAGATI SHARMA
  28. 28. AARTI INDUSTRIES LIMITED ORGANIZATION CHART Chairman Junior Director Vice President Mkt. Manager Director Work Personal Manager Excise Officer Dep. Gen. Manager Prod. Manager Personal Assistant G. M. Mkt. Officer Maint. Dept. Production Dept. Q.C. Dept. Dispatch Dept. Safety Dept. Security Dept. DGM Official A/c DGM Organic Div. Acid Div. DGM Dispatch Officer G. M. Security Off. Fin. Exe A/c Asst. Jun. Exe. GM GM Sen. Chemist Dispatch Assist. Safety Off. Security Asst. Technician DGM DGM Chemist Safety Asst. Supervisor Sen. Manager Sen. Manager Lab Assistant Engineer Security Guard Gun Man Manager Manager Supervisor SDM SDM Worker Dep. Manager Dep. Manager Worker Worker PRAGATI SHARMA
  29. 29. AARTI INDUSTRIES LIMITED PRAGATI SHARMA
  30. 30. AARTI INDUSTRIES LIMITED HUMAN RESOURCE DEPARTMENT Human Resource Management is that management which is related with decisions relating to planning organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separations of human resources to the end that individual, organization and sociality objectives are accomplished. And the same is done in the AIL. The objective of the AARTI INDUSTRIES LIMITED is the maintenance of those relationships on the basis of which organization can get maximum personal contribution from employees. As we all know that work of the Human Resource Department is of acquiring, retaining and maintaining the manpower. The same is in the case of the AARTI INDUSRTRIES LIMITED the organization tries its best to procure maintain and retain their employees in their organization. The Human Resource is important to any labour or capital intensive industries. So they should place an important position to an industry. The AARTI INDUSTRIES LIMITED regular undertakes the training activities and other HR initiatives. As the AIL does work for the societies, it also thinks about its employees. The company has also continued its scheme for assistance to employees with a view to ensure that their basic housing needs are fulfilled. The company has been continuously focusing. On people and processes those to encourage and realize their full potential through continuous on job learning and through other HRD initiatives coordinal and harmonious relation with employees continued to prevail through the year under assess. PRAGATI SHARMA
  31. 31. AARTI INDUSTRIES LIMITED As it is aptly said that Human Resource is an asset for any organization for the success of any organization human resource play a significant role. If any company’s Human Resource is not up to the mark or efficient then it affects the performance of an organization. Each and every department is linked with another department. One department forms a stair for the other department in the same way the Human Resource play a vital role in each and every department whether it is finance department, marketing department, production/operation department, R & D department or any other. The manpower must be efficiently employed to get an effective result. Functions of Human Resource Manager: The following are main function of human resource manger in AARTI INDUSTRIES LIMITED: ∗ Application and control of company rules and organization policy. ∗ Recruitment of manpower intended by HOD and approved by management and top head. ∗ Employee and trainees induction programmed arrangement. ∗ Development of trainees by training and approvals ∗ Transport arrangement for required by employees, guests & customer. ∗ Booking and reservation as required by employees / guests. PRAGATI SHARMA
  32. 32. AARTI INDUSTRIES LIMITED ∗ Safety of company material and employees. ∗ Maintenance of first aid material. ∗ Canteen administration ∗ Assistance of meeting and conference ∗ Company occasions arrangements like annual day, Picnic. ∗ Labor welfare activities as decided by management. ∗ Arrangement of uniform, shoes, seasonal wear, safety equipment. ∗ House keeping of company premises. ∗ Casual labor arrangement ∗ Building maintenance and office maintenance ∗ Public relation activities. ∗ Salary wages and perks administration works and recorded keeping. ∗ Telecom related activities ∗ Appraisal assistant of employee for increments , training, promotions ∗ Factory Act related activities ∗ Stationary planning and arrangement. PRAGATI SHARMA
  33. 33. AARTI INDUSTRIES LIMITED RECRUITMENT Recruitment in simple terms is searching for capable applicants for the job. Recruitment is attracting and obtaining the eligible candidates so that the right people are selected for the job. Recruiting of the individuals or the recruitment process is one of the most vital and complicated part of an organization. If any error is made in the recruitment process, then in a straight way it could be seen in the work performance of the employees and the profits of the company as a single mistake will have an effect on the result of the organization. As AARTI INDUSTRIES LIMITED is producing some of the hazardous chemical so for them man power recruitment process is hard-hitting job. Recruitment is the generating of the application of applicants for specific position through many of the sources from them the three common sources are the advertisement, state employee exchange agencies or a private employment. According to AARTI INDUSTRIES LIMITED they formulate a selection policy, due consideration is to be given to organizational requirement as well as technical and professional dimension of selection procedure adopted by AARTI INDUSTRIES LIMITED and that it is tailor made to meet its particular needs. PRAGATI SHARMA
  34. 34. AARTI INDUSTRIES LIMITED The thoroughness of the procedure depends upon three factors.  Nature of selection.  Policy of the company.  The length of the probability period or trial period. The company has also continued their schemes for assistance to employees with a view to ensure that there basic housing needs are fulfilled. The company has been continuously focusing. So they should place an important position to industries. The AIL company regular undertakes the training activities and other Human Resource initiatives. The Human Resource is important not only to any labor intensive but to the capital intensive industries also. On people and processes those to encourage and realize their full potential through continuous on job learning and through other HRD initiative cordial and harmonious relation with employee continued to prevail through the year under review. Human Resource plays a vital role in each and every department whether it is finance department, marketing department, production/operation department, R&D department or any other. In an organization the manpower must be efficiently used to make out the best from them. Human Resource is asset for any organization for the success of any organization. Human Resource plays an important role. If any company’s Human Resource is not a standard or not efficient then it affects the performance of an organization. PRAGATI SHARMA
  35. 35. AARTI INDUSTRIES LIMITED Source of Recruitment : The sources that are used for the recruitment purpose in AARTI INDUSTRIES LIMITED are as follows: • Internal sources ∗ Transfer ∗ Promotion • External sources ∗ Advertisement ∗ Educational institution ∗ Labor contractors ∗ Recruitment agencies. PRAGATI SHARMA
  36. 36. AARTI INDUSTRIES LIMITED RECRUITMENT PROCEDURE:- NEWSPAPER APPLICATION RECEIVING APPLICATION SORTING OUT APPLICATION WRITTEN TEST INTERVIEW SORT TEST FINALIZE INTERVIEW II INTERVIEW OFFER LETTER OFFER LETTER JOINING THE ORGANIZATION JOINING THE ORGANIZATION APPOINTMENT LETTER APPOINTMENT LETTER PRAGATI SHARMA
  37. 37. AARTI INDUSTRIES LIMITED THE RECRUITMENT PROCESS The process of recruitment can be explained as under: NEWSPAPER APPLICATION: Very firstly the AIL gives the advertisement in the newspaper so that the applicants are attracted towards the advertisement and they apply in the company for the required post. In that newspaper advertisement the AIL gives the required qualification for the post. So that the applicants who are that qualified and capable only they apply for the job. RECEIVING APPLICATION: After the advertisement placed in the newspapers the AIL receives the application forms of those candidates who are willing for the job. SORTING OUT APPLICATIONS: After the applications being received by the AIL, they do the work of sorting out the applications. A panel is selected and those people in the panel do the work of sorting the received applications and then according to those panel members the candidates who are capable to go a step further i.e. for the interview are being selecte. Before the interview the AIL goes for a test for the candidates which is a written test in which the candidates are given a questionnaire in which the AIL ask few questions which has to be answered in a written form. After the test the answers are gone through and then the candidates whose answers are found to be interesting are further being called out for the interview. PRAGATI SHARMA
  38. 38. AARTI INDUSTRIES LIMITED INTERVIEW: Then the interview is held. Some employees of the AIL from the executive level are being selected so that those people carry out the interview without any biasness. In the interview the employees of the AIL carries on with the question answer sessions. By this interview the panel gets a clear picture of which people are competent for the job and can go for the further process of the recruitment. FINALIZE: Finally the applicant who is found to be competent enough by the panel is being finalized after the finalization the employee is asked to go under a physical checkup under the doctors and submit the report in the AIL. OFFER OR APPOINTMENT LETTER: After all the procedures are completed and a clear chit given by the doctors the employees are being given an offer or an appointment letter to join the organization the candidate. PRAGATI SHARMA
  39. 39. AARTI INDUSTRIES LIMITED SELECTION PROCEDURE APPLICATION FORM INTERVIEW PHYSICAL EXAMINATION REFERENCE FINAL APPROVAL EMPLOYMENT PRAGATI SHARMA
  40. 40. AARTI INDUSTRIES LIMITED THE SELECTION PROCESS The selection is the process of making a choice or deciding on individuals from among many. The selection process is of selecting a well deserving, capable and competent candidate for the given job. The selection can be from within the organization as well as fresh candidate. If the filling of the job is to be done internally or from within the organization then it can be done by the promotion and transfers of the employees but if the filling of the job is via externally then it can be done through the recruitment and the selection procedure of the organization. APPLICATION FORM: The application form is given to the candidates and that the candidates are asked to fill them. The AIL is very much careful while going on with the selection process. The AIL not only selects the people from the external source but also from the internal source. INTERVIEW: The AARTI INDUSTRIES LIMITED after the receiving of the application form from the candidates the company goes for the interview. In the interview the AARTI INDUSTRIES LIMITED top level management sees to it that the process is carried out very properly and that the candidates are selected on the basis of their experience, compatibility, competence, and qualifications. The AIL keeps in mind that the candidates selected are experienced and that this is the most important criteria the AIL look at before selecting any of the candidates for their company. PRAGATI SHARMA
  41. 41. AARTI INDUSTRIES LIMITED PHYSICAL EXAMINATION: The company after going on with the interview process some slot of candidates are selected and also that the selected candidates are being asked to go for the physical checkup as the physical checkup may help the AIL to know whether the candidates are completely healthy or not. The candidates are asked to submit a report of their fitness in the organization and then the further decisions are being taken by the organization. As the physical checkup may help the AIL to avoid future problems. REFERENCE CHECK: After the company carries out with the physical checkup of the selected employees, the company cross checks the reference. For a company reference check is one of the important criteria while selecting the candidate or while giving the employment to the applicant. FINAL APPROVAL: After the reference check is been completed the next step is to give approval to that candidate who has completely satisfied the AARTI INDUSTRIES LIMITED requirement of an employee. EMPLOYMENT: After the company has completed all their procedures now is the time to give the employment to the candidates who are selected by the organization for their company. PRAGATI SHARMA
  42. 42. AARTI INDUSTRIES LIMITED PROMOTION AND TRANSFER PROMOTION AARTI INDUSTRIES LIMITED gives progression to its employees with enhanced pay, position and employment responsibility all the way through encouragement by promoting them as per the responsibility and the work done by the employees as one of the best way of expressing the employees excellent work is by promotion or by increasing the employee’s remunerations. PROMOTION CRITERIA The AARTI INDUSTRIES LIMITED has a promotion policy that, the promotion to the employees is given on the basis of seniority. AARTI INDUSTRIES LIMITED has resolute to give promotion after every two years of the working period of the employees. If an employee is not satisfied of the post he has, the employee is then sent back to his position for the duration of his promotion period. As per their resolution the AIL gives promotion to its employees by the way of their seniority which is 40% and out of 60%, 20% by the way of personal interview and 40% by performance appraisal so that none of the employees feel that they are been deceived by the company authority and the well deserved employee is being given the promotion. PRAGATI SHARMA
  43. 43. AARTI INDUSTRIES LIMITED PROMOTION POLICY AARTI INDUSTRIES LIMITED has espoused the promotion policy as per the seniority as well as on the merit basis of the employees. The seniority of employee is regarded grade wise as per character residence period on the particular grade. Also the work done by the employees are given significance by the AIL. TRANSFERS As we all know that transfer is a cross shifting the employee as per the demand or a requirement of the employee, causing a movement of an employee from his/her one job, section, department shift, plant or position to another at some or another place with that particular departmental salary status and responsibility, etc. The Aarti Industries Limited follows a well define transfer policy to avoid any grievances among the employees. PRAGATI SHARMA
  44. 44. AARTI INDUSTRIES LIMITED • Periodic Transfer In the AARTI INDUSTRIES LIMITED periodic type of transfers is mainly for those departments whose regional areas and sales department are located abroad or out the country. For that reason the marketing department is the only department which has the periodic transfer present in it. The AARTI INDUSTRIES LIMITED has a policy according to that policy the marketing personals are transferred every four year, so they can come back to the native state. There are no frequent transfers that exist n the company and they are avoided in company as the AIL are being concerned of the adverse effects of transfer on heir employees which is seen in the work of the employees. • Internal Transfer The internal and the departmental transfer are mostly avoided in the AARTI INDUSTRIES LIMITED. PRAGATI SHARMA
  45. 45. AARTI INDUSTRIES LIMITED TRAINING AND DEVELOPMENT Training in AARTI INDUSTRIES LIMITED is given to those people who are newly employed in the company so as to make them familiar with the industry and the working condition prevailing in the company. The trainings that exist in AIL:- o Induction training o Health and safety o Discipline o TQM o ISO 9000 o Management development o To increase productivity. o To improve quality. Induction training: The induction training is given to those of the new employees to make them familiar with the company as well as the working of the organization. Discipline: The discipline refers to the rules and the regulations that prevail in the AARTI INDUSTRIES LIMITED. As the employees enter in the organization they are thought and made aware with those rules and regulations so that the employees do not violate those rules and that the discipline is maintained in the organization properly. PRAGATI SHARMA
  46. 46. AARTI INDUSTRIES LIMITED Health and safety: The health and safety of the employees is of the utmost importance for the company and for that purpose the AIL gives the employees the instruction for their safety and the compulsory usage of the things which are used for the safety purpose e.g. gumboots, caps etc. so that the accidents are avoided and health and safety of people are more concentrated by the organization. So for that reason the organization motivates the employees for the occupational health, safety and environment, safety policy, philosophy, accident prevention techniques, safety procedure etc. The safety department conducts in plant safety training program on regular basis. • Chemical emergency, prevention preparedness and response. • Importance and use of safety equipment (Explosive, oxygen, CL-2, HCN, Monitors, SCBA, ESA, Fire Gas Tight Suit, First Aid-Box) Total Quality Management: (improving quality) Total Quality Management (TQM). The quality being the most important part of the product and it’s selling so for that reason the employees are thought of the quality management so that they understand the actual and good quality products and they make a quality product. As the quality gives the clear picture of the organization the AIL also believes in giving the bet quality products to their employees. PRAGATI SHARMA
  47. 47. AARTI INDUSTRIES LIMITED REMUNERATION The remuneration that the AARTI INDUSTRIES LIMITED provides to each of the employees is as follows  Salary: The Board of Directors is to be provided with the Salary of Rs.85, 000/- per month with power to make an annual increment area under discussion to a maximum amount of Rs.1, 50,000/-per month in respect of salary and privilege up to 100% of salary.  Commission: In accumulation to the salary, the whole-time Directors of the AARTI INDUSTRIES LIMITED shall also be entitled to be paid share in comprehensive commission calculated at the rate of 1% of not profit of company computed under section 349 of the companies act, 1956 payable to all company share of such commission shall be payable after the annual accounts are adopted by the shareholders.  Perquisites: Apart from the salary and commission regularly paid, the whole-time Director shall be permitted with the allowances: o House rent allowance of Rs.15000/-per month. o Bonus/ex-gratis: Rs.85000/-per annum. o Compensation of Medical Expenses and/or Medical Insurance premiums for self and family members as per company’s policy. o Personal Accident Insurance as Per Company’s policy. PRAGATI SHARMA
  48. 48. AARTI INDUSTRIES LIMITED The power of modifying any issue i.e. increase or decrease the amount of the salary or any other and amount of perquisites to be provided by the company subject to a maximum ceiling of 100% of the salary of the whole-time Director will be in the hand of the Board of Directors, Whole-time Director shall also be entitled to following perquisites which shall not include in the computation of the ceiling on remuneration specified here in: o Contribution to Provident fund. Contributions to super annulations fund or annuity fund as per the rules of the company. These will not be included in the computation of the ceiling on perquisites to the extent these either singly or put together are not taxable under the Income Tax, 1961. o Gratuity payable at rate not beyond half a month’s salary for each completed year of service end. o Encashment of leave at the end of the tenure. o Provision of car for business of the company and telephone at residence shall not be treated as perquisites. Use of car for personal purpose and personal long distance calls on telephone shall be billed by the company.  The Salary Payments Salary is usually paid in the first week of every month. Salary officer prepare covers with the name and personal code No., of employees and the pay slip along with cash or cheque as per grade. PRAGATI SHARMA
  49. 49. AARTI INDUSTRIES LIMITED • Mode of payment in cash or Bank Transfer  Staff- Cash option or Bank Transfer  Officer- Usually Bank Transfer. • The structure of the wages and the salaries The Human Resource Department also deals with wages and salary system. For the AIL the happiness and contentment of the employee’s is the main concern, which is reflected by the health wage and salary structure design in the company. The AARTI INDUSTRIES LIMITED pursues the minimum wage rate policy that is fixed by the Government. The salaries are also determined by the minimum wage rate policy which is set by the government. • The Salary Diminution The time office keeps the documentation of staff employees reporting at duty i.e. the time of entering and the time of leaving. If employees report late on job, in that case the company cuts the salary of that particular employee. The salary diminution rules as per the minutes that are delayed by the employee in reporting themselves to their respective departments are as follows: o If late by 16 min to 35 min = Pay of half hrs o If late by 35 min to 45 min = Pay of 45 min o If late by 46 min to 60 min = Pay of 1 hrs o If late by 2 hrs. to 3 hrs = Pay of half days PRAGATI SHARMA
  50. 50. AARTI INDUSTRIES LIMITED • Enlightenment :- o For the purpose of this agreement, “Family” means the spouse, the dependent children and dependent parents, if any, of the whole-time Director. o No sitting fee shall be payable to him for attending the meeting of the Board of Directors or committee thereof. o The other terms and condition of the agreement are such as are customarily contained in agreement of similar nature. • The Compensation Packages The compensation package includes: Basic + Dearness Allowance + other financial pays like cash canteen subsidies, washing allowance, shift allowance, contribution of provident fund, gratuity, medical charges, personal pays, inconvenience allowance, chemical, and hazardous allowance, etc. • Shift and Working Hours Timing at AARTI INDUSTRIES LIMITED the shifts are as follows:  General shift 8:00 am to 5:00 pm on all working days.  Lunch time is from 12:00pm to 1:00 pm and 1:00 pm to 2:00 pm.  There are total 3 shifts in the company i.e. morning, evening, and night. PRAGATI SHARMA
  51. 51. AARTI INDUSTRIES LIMITED (Production of AARTI INDUSTRIES LIMITED goes on non stop i.e. continue round the clock.) • The Industrial Act. The Industrial Acts that is applicable by Human Resource in the AARTI INDUSTRIES LIMITED is as follows. o Factory’s Act, 1948, o Industrial dispute Act, 1947, o Minimum Wages Act, 1948, o Employees provident funds and miscellaneous Act, 1942, o Payment of Bonus Act,1965, o Payment of gratitude Act, 1972, o Payment of wages Act, 1936, o The Worker men’s compensation Act,1923, o Apprentice Act, o The employees State Insurance Act, 1948, o Contract Labor Act, o Payment of Gujarat labor welfare fund. PRAGATI SHARMA
  52. 52. AARTI INDUSTRIES LIMITED FACILITIES PROVIDED TO THE WORKERS: The workers in the AARTI INDUSTRIES LIMITED are considered as an important part of the company and so the company sees that they provide their workers with the sufficient amenities for the betterment of the workers of their company.  Alter the work method so that there is a reduction in any of the possibilities for straight handling of hazardous materials.  Provide prospect to the workers to talk among them while they are working so that they can develop a healthy working relations among them.  Ensure the availability of a qualified person for the proper treatment the workers and first aid equipment with all necessary ointments and medicines for each kind of infection that may be caused in a chemical industry.  Performing of a regular fitness examination of the workers to notice whether they are in shape and able-bodied without any illness and if any worker found in such condition then provide them with ready contact treatment by a physician or a nurse.  The company also tries to avoid the work of the workers which is in separation or in a remote area of the unit so as to avoid any kind of mishap. PRAGATI SHARMA
  53. 53. AARTI INDUSTRIES LIMITED SCHEMES The schemes provided by AARTI INDUSTRIES LIMITED to their employees: EDUCATION SCHEME The Scheme decided by the AARTI INDUSTRIES LIMITED for the Scholarship for education to the children of all their employees. This scheme is for those children who have top score in their academic year. The scheme decides scholarship to the children on the basis of their merit. The applicability of the scheme is that the scheme will be applicable to all employees of the company and their children studying in STD. 5th to 12th. This will be free from any biasness from the AARTI’s side. And the deserving child will be getting the benefits of the scholarship scheme. After the submission of the concluding result by the children of their academic year to the specified personnel of AARTI the decisions will be taken. The results will be clustered as per the academic standard & the child who has topped will be sponsored for next year school fees. The approximate budget amount already set and given to the child will be Rs.32000 /-P.A. (Eight students every year x4000/-fees of each.) VOLUNTARY RETIREMENT SCHEME The Human Resource Department has also implemented a special type of policy for the employees named as Voluntary Retirement scheme. Under this scheme, if an employee is above 40 years of age and retire voluntary. He will be entitled to get the minimum 4 month salary excluding the benefit for the remaining years. And not many but only two employees have gone for this scheme. PRAGATI SHARMA
  54. 54. AARTI INDUSTRIES LIMITED MILK SCHEME At present AARTI INDUSTRIES LIMITED is giving milk coupons to all of its employees except some service department that are excluded from the scheme. Along with the milk coupons, AIL is giving tea allowance to all of its employees @ Rs.4/- per attend. FUNERAL SCHEME The scheme is such that Rs. 2500/- to be given to all the employees on behalf of the society and AARTI INDUSTRIES LIMITED on expiry of any of the dependent family member. Company will compensate the amount to society. This is a small way to show the gratitude and the company’s concern towards the employee and their family. WELFARE SCHEMES FOR EMPLOYEES The AARTI INDUSTRIES LIMITED also provides some welfare schemes for their employees so that they can help their employees in some or the other ways. ∗ Med claim of employees, ∗ Personal accident, ∗ Employees D-link insurances scheme, ∗ Group gratuity scheme, ∗ School admission, ∗ Housing admission, PRAGATI SHARMA
  55. 55. AARTI INDUSTRIES LIMITED ∗ Cycle loans, ∗ L.I.C through salary. PERFORMANCE APPRAISAL Performance Appraisal is the procedure of evaluating employee’s performance of their employment in terms of their requirement for purpose of administration including placement selection for promotion need for training, providing financial rewards, etc. No firm has a choice as to whether it should or should not appraise their employees. Just as training is required to be endowed after recruitment of the employees, performance appraisal is also to be expected. In AARTI INDUSTRIES LIMITED, Confidential Method is used for performance appraisal of an employee. For the performance appraisal of the employee, the superior or head of the department prepares questionnaires, which is to be filled by their subordinates. In this report the employee describes his strength, weakness, attitude to work, intelligence, attendance work efficiency, etc. With the help of this report, the top level can get the complete idea regarding the employee and his performance in the company. He can take decision regarding promotion, financial rewards, increments, etc. with the help of the information in the report. Whatever is the relation of the superior- subordinate they both have to asses each others performance with complete purity and without any biasness. The assessment of the executive done by their subordinates and that of the PRAGATI SHARMA
  56. 56. AARTI INDUSTRIES LIMITED subordinates or the non-executive done by their executives will be again assessed by the superiors. OBJECTIVE OF PERFORMANCE APPRAISAL The objective of performance appraisal of the AARTI INDUSTRIES LIMITED is as follows o To determine increments and provide a reliable guide for promotion and transfer to positive of greater responsibility. o To suggest ways of improving the employees performance when he is not found to be up to the mark during the review period. o To maintain individual as well as group development by informing the employee of his performance standard. There are two types of appraisal program in the company. o Form A for the executive and o Form B for the non- executive There is no such procedure of the appraisal but the employees are assessed every at the end of every year. At the end of the year the performance appraisal program is conducted to know the performance of the employees over whole period under review. This review states that which employees who are efficient in their work and needs promotion and that the employees who are incompetent and who needs training to become effective in the work done by them. PRAGATI SHARMA
  57. 57. AARTI INDUSTRIES LIMITED SELF-APPRAISAL (To be filled by Appraises) ? What are the responsibilities of your job? ? What do you consider the key areas of your present job? ? In your view what are the major contributions/improvement made by you to the organization during the period under review ? What are the areas where you could not achieve your desire goal? What were the reasons? ? What would you consider as your important achievement, Contribution or improvements in the next 3 month, 6 months & one year? ? What will be the action plan do you decided to achieve the target? ? In order to achieve the specified targets that help do you need from the organization? ? Are there any intimate problems (Personal or Organizational) which are likely to come in your way in achieving the enhanced target? ? What co-ordination problems have you faced with your colleagues, other department, etc. in the organization? Your suggestions to improve the same. ? What steps you have taken to improve the performance of your from donates? What do your propose to do in the next 3 to 6 months? PRAGATI SHARMA
  58. 58. AARTI INDUSTRIES LIMITED ? What training you had in last 12 months? ? Do you have any suggestion for improvement in our organization? ? Are you satisfied with your job, working condition and organization? ? Do you think you need any training, Please specify? PRAGATI SHARMA
  59. 59. AARTI INDUSTRIES LIMITED LEAVE STRUCTURE The leave structures of AARTI INDUSTRIES LIMITED are as follows.  PAID HOLIDAY : The employees are permitted to take 8 holidays in a year which are considered to be the paid holidays, which are declared by the management in the month of January.  WEEKLY OFF : If an employee is working in a different branch then for them the weekly off is on Sunday. This is for the Vapi branch and other branches also except for an employee who is working at the head office (Mumbai), the weekly off for them is on Saturday and Sunday.  SICK LEAVE : As per previously decided by the AARTI INDUSTRIES LIMITED for the employees 9 days sick leave per annum are on hand and that it is credited on 1st January every year during the first year of employment, however this leave benefit will be available on pro-rate basis accumulated. Sick leave can be at the time of retirement and death of personals only which can be up to a maximum of 72 days.  PRIVILEGE LEAVE : Privilege leave is available @ 30 days per calendar years, which is credited @ 2.5 leave per month for new management staff, @ 2.5 leave per month ID credited after completion of one month. PRAGATI SHARMA
  60. 60. AARTI INDUSTRIES LIMITED  CASUAL LEAVE: Also the casual leaves are decided by the AARTI INDUSTRIES LIMITED 9 days casual leave per annum is available per and it is credited every year on 1st Jan during the first year of employment, however this leaves benefit will be available on pro-rate basis. Since casual leave benefit cannot be carried to the next year, at the end of the calendar year the outstanding leave balance will automatically be encased and included in the salary of the subsequent month.  SPECIAL LEAVE: The managing director under exceptional circumstances will have the prudence to grant any additional leave, termed as special leave to individuals. Such leave will normally be leave without pay, except it is for the benefit of the company.  OTHER LEAVES: The other leaves are as follows they are the Maternity leave, leave after resignation compensatory leave unauthorized absence etc. PRAGATI SHARMA
  61. 61. AARTI INDUSTRIES LIMITED MEDICLAIM POLICY The AARTI INDUSTRIES LIMITED is among those fine companies for whom their employees mean a lot to them. The company always notices that all the facilities are properly made available to their employees or not. The AIL not only cares for their employees but also for their family.  The scheme is such that the reimbursement of hospitalization expenses of the family member i.e. spouse children and dependent parents of the employee will be given the medclaim policy according to the policy of the AARTI INDUSTRIES LIMITED.  The eligibility of this scheme is for all those who are voluntarily interested in this scheme and also for the permanent employees of the company who are not covered under ESIC scheme of AARTI INDUSTRIES LIMITED.  The contribution for this scheme is monthly deduction of Rs. 20 per family member and per month from the salary of the employees and the same amount is to be contributed to the company.  The conditions on this policy are as follows: • Employee should notify the name and relation of the employee with the family member for which medical scheme is to be applied. • All types of hospitalization expenses (i.e. medicine, expenses excluding food and convenience) are eligible for reimbursement. • The proof of hospitalization should be cross checked i.e. the hospitalization and medications bills only. • Reimbursement claim should be supported with doctor’s report and hospitalization and medications statement or bills only. PRAGATI SHARMA
  62. 62. AARTI INDUSTRIES LIMITED • The reimbursement or the Payment of entire amount alleged for the parents mediclaim and any other will be paid after necessary enquiry and confirmation of matter and documents. • The working of the department is that five members committee would be formed among the employee for the scheme with sanction of majority, for one year.  Out of the members of committee two personals are authorized to pay the sum as per official mode. These members are having all the powers of scrutinizing the matters and checking of documents before giving the payment to employees.  All the contribution collected from employees as well as from company on monthly basis is to be deposited in society in a separate bank account maintained for the purpose. All the claims should be settled out of the funds in decided bank account.  Nature of expenses and diseases should be modified as per consideration of facts with the prior effects of six months from the date of amendments done.  All the payments should be paid through cheque after authorization of all the committee members.  Before finalizing the draft of the scheme, the scheme should be approved by the senior HRD personal of the company. PRAGATI SHARMA
  63. 63. AARTI INDUSTRIES LIMITED SOCIAL RESPONSIBILITY AIL, Vapi seeks to fulfill its responsibility towards society through its CSR activities which mainly cover the areas of health, education, housing, social & cultural needs and disaster relief and can be broadly categorized into: • Labour & staff welfare • Community welfare LABOUR & STAFF WELFARE At AIL, the people believe in fostering an environment that promotes innovation, rewards performance and provides opportunities to people for growth. In addition, the company has a range of initiatives in place for attracting and retaining a high performance work force. The AIL believes in taking care of its people beyond the agreed terms. Some of their employee welfare programs are as follows: Medi-claim insurance policies for all of the employees of AARTI INDUSTRTIES LIMITED have been obtained covering even hospitalization. The expenditure on this account has been round about Rs.7, 00,000 per annum. Recognizing the need for proper housing for all, the Company has disbursed housing loans to the tune of Rs.1 Crore for its junior staff. These loans are partly non-repayable and partly interest-free, with long repayment schedules. This has helped many of the AIL employees to build houses for their families. As of September 30, 2006, outstanding housing loan dues amounted to Rs 76, 15,540. PRAGATI SHARMA
  64. 64. AARTI INDUSTRIES LIMITED Over the last three years, the AARTI INDUSTRIES LIMITED has contributed around Rs 28, 00,000 to the Aarti Employees Co-operative Fund. AIL provides monetary incentives to their employees to motivate them to opt for birth control and also to cast their vote during local, Vidhan Sabha and Lok Sabha elections. The Company also provides employees with: • Uniforms, safety shoes, rainy shoes, and raincoats; • Tea allowance, food allowance, and milk allowance; • Cycle and vehicle loans; • Marriage gifts, loans for pooja and festivals; • Financial assistance to cover disaster relief, funeral expenses, • and medical expenses including hospitalization for those not • Covered under the ESIS scheme. EMPLOYEE WELFARE EXPENSES Period Labour Welfare taff Welfare Total Amount PERIOD LABOUR STAFF TOTAL WELFARE WELFARE AMOUNT 2004 - 05 Rs 2415729 Rs 917578 Rs 3333307 2005 - 06 Rs 2758586 Rs 547001 Rs 3305587 PRAGATI SHARMA
  65. 65. AARTI INDUSTRIES LIMITED COMMUNITY WELFARE The AARTI INDUSTRIES LIMITED has adopted a village in Gujarat inhabited by Other Backward Castes (OBCs) and another village in Kutch for rehabilitating earthquake affected people. The aim of AIL is to extend their support to a variety of recipients so that as many as possible can benefit from the company’s financial contributions. COMMUNITY WELFARE EXPENSES Total donations in 2004 05: Rs 6,133,438 Total donations in 2005 06: Rs 13,023,500 From the scores of organizations the AIL have donated funds to, a few are mentioned below: EDUCATION AND RESEARCH RELATED: • Ashadham Seva Mandal • Hirji Bhojraj & Sons K.V.O. Jain Chhatralaya • Adivasi Education and Charitable Trust • Mumbai University Institute of Chemical Technology • Association for Research in Homeopathy • Rural Agro Research & Development Society PRAGATI SHARMA
  66. 66. AARTI INDUSTRIES LIMITED HEALTHCARE RELATED • Vishwas Hospital Trust • Shushrusha Charitable Trust • Bidada Sarvodaya Trust • Tibetan Medical and Astro Institute • Hira-Mongi Navneet Hospital, Mulund • Parakh Hospital, Ghatkopar SOCIAL WORK AND CULTURAL ACTIVITIES RELATED • Kalgad Sarvodaya Trust • Shri Wagad Sarvodaya Trust • Dhanvallabh Charitable Trust • Shri Vardhman Seva Sangh • Geetai Mission • Rovadan Trust • People's Trust • Child Relief and You (CRY) (working for underprivileged children) • Kutch Mahila Vikas Sanghatan (involved with social empowerment of women) • Shri Mulund K.V.O. Samaj • Gandhi Labour Foundation • Lion's Club of Mulund • Giant's Group of Mandvi - Kutch • Gramin Vikas Samiti (involved with rural development) PRAGATI SHARMA
  67. 67. AARTI INDUSTRIES LIMITED • Gram Swaraj Samiti (involved with rural development) • Kutch Yuvak Sangh (working for the development of rural youth) • Ankleshwar Industrial Development Society • Vapi Punjabi Charitable Foundation DISASTER RELIEF WORK RELATED • The Prime Minister's National Relief Fund (Tsunami relief) • The Gujarat Chief Minister's Relief Fund • Bhojay Sarvodaya Trust (Earthquake relief in Kashmir) • Kutch Navnirman Abhiyaan (Rehabilitation of earthquake affected people in Kutch) The village in KUTCH adopted by AARTI INDUSTRIES LIMITED PRAGATI SHARMA
  68. 68. AARTI INDUSTRIES LIMITED SUPPORTING ECONOMIC AND INDUSTRIAL DEVELOPMENT IN VAPI At AIL, Vapi, they believe in actively co-operating with neighboring industries to address common concerns and solve Business-related problems. The Director of AIL, Mr. Kirit Mehta, is the President of the Vapi Industries Association (VIA). He leads the association and takes the necessary initiative for getting basic common facilities for the members. He also handles the task of making representations to various bodies for problems related to roads, water supply, electricity, pollution control, etc. that obstruct the smooth conducting of business. Mr. Mehta is well respected for his contributions towards the development of the chemical industries in Vapi. PRAGATI SHARMA
  69. 69. AARTI INDUSTRIES LIMITED CORPORATE SOCIAL RESPONSIBILITY POLICY (CSR) At AIL, the Corporate Sustainability Department, consisting of a team of senior management headed by the company’s Managing Director, monitors the company’s CSR & sustainability strategies and their implementation. The department meets regularly to review compliance with the company's CSR policy across the different units and to take informed decisions on related key issues. CORPORATE GOVERNANCE At AIL, integrity, transparency and social responsibility form the core of their corporate behaviour and characterize the way in which they interact with all those who have a stake in the company’s success and with the world at large. For AIL, corporate governance is not a discipline imposed by a Regulator, but something that stems from the culture of an organization. The principles of corporate governance guide the company’s Board of Directors, management and the AIL’s people to create long term sustainable value for their stakeholders. AIL's Board of Directors consists of a team of technocrats, engineers and management graduates having rich experience of more than two decades in the Industry. AIL’s 12-member Board of Directors has both Executive and Non- executive Directors. The board also comprises of an environment consultant, a solicitor, an advocate and a chartered accountant as Independent Directors. PRAGATI SHARMA
  70. 70. AARTI INDUSTRIES LIMITED The AIL has two Board committees - the Audit Committee and the Shareholders Grievance Committee. The Board has laid down a Code of Conduct (posted on our website (www.aartigroup.com) for all the directors and senior management of the company. AIL's Corporate Governance framework ensures: • Sound corporate practices based on integrity, transparency, accountability, fairness and professionalism - values that are important for sustained growth, increased efficiency and stakeholder confidence. • Timely flow of information to the Board and its committees. • A sound system of internal control and supervision of business operations. • Commitment to good HR policies • Independent verification of the Company's financial, and CSR & sustainability reporting • Timely disclosure of information to all our stakeholders • Compliance with applicable laws, guidelines and regulations The people at AARTI INDUSTRIES LIMITED commit themselves to Corporate Social Responsibility (CSR) by conducting their business activities ethically through a fair and balanced approach, and by being socially responsible and responding to legal, social & ethical issues arising from their commercial activities. PRAGATI SHARMA
  71. 71. AARTI INDUSTRIES LIMITED The people therefore pledge to work towards continual progress in the following areas: • Respecting their organization's philosophy and striving to be recognized as a good and esteemed corporate citizen. • Complying with legal requirements, wherever they operate. • Developing and supplying useful & safe products and improving the quality of their products and services to be able to contribute to the progress of society. • Conducting business transactions based on fair and free competition. • Striving to make their workplace vibrant to become an employer of choice and focusing on acquiring advanced professional skills & expertise in their field of responsibility. • Protecting the environment, optimizing resource consumption and ensuring the safety of their people. • Supporting human rights, and actively communicating with the company’s stakeholders to understand and respect their interests, thus serving and contributing to their development. • Achieving sustained growth and profitability. PRAGATI SHARMA
  72. 72. AARTI INDUSTRIES LIMITED At AIL, the people shall strive to promote CSR activities to maintain a balanced approach towards economic goals, safety, quality, the environment and the interests of society, through an effective monitoring of the company’s performance on key issues covered by the CSR programme. AARTI INDUSTRIES believe that these initiatives will help them achieve sustainable development and be recognized as a responsible corporate citizen, consequently enabling our company to emerge as a modern and global company. STRATEGY FOR CSR AARTI INDUSTRY has few strategies for embedding CSR & its sustainability into their business activities. The AIL’s strategies for integrating CSR & sustainability into their management processes and day to day activities are based on our core values and the principles of the UN Global Compact. The company people are aware that by making CSR & sustainability an integral part of their business strategy they will be able to protect the quality of the company’s business activities, their decision-making processes and their capacity to create value for their own company and also their valuable stakeholders. To reach out to AARTI INDUSTRY LIMITED employees, customers and communities and show their concern for the environment, the AIL: • Emphasize that CSR is a shared responsibility for every member of the AIL family. PRAGATI SHARMA
  73. 73. AARTI INDUSTRIES LIMITED • Reward creativity and leadership skills and provide ample opportunities for personal & professional growth. • Promote team spirit and learning of new skills. • Uphold human rights and the dignity of every employee. • Act promptly on matters related to the health and safety of their people. • Reduce operational costs through energy efficiency, recycling and innovative use of by-products. • Focus on reducing our environmental footprint and greenhouse gas emissions. • Invest in new technologies and produce innovative & sustainable products. • React proactively to customer needs. • Customize solutions to meet customer requirements. • Improve our financial performance to ensure better returns. • Conduct business with transparency and share vital information with stakeholders. • Encourage our employees to actively participate in community development activities. • Respect the rights and needs of the communities we operate in. At AIL; they believe that these strategies will strengthen their platform for growth. PRAGATI SHARMA
  74. 74. AARTI INDUSTRIES LIMITED PRAGATI SHARMA
  75. 75. AARTI INDUSTRIES LIMITED FINANCE DEPARTMENT  INTRODUCTION “Financial Management is concern with the efficient use of an important economic resource, namely, Capital funds.”  SCOPE FINANCE DEPARTMENT In AARTI INDUSTRIES LIMITED the Finance Department deals with the problems of rising funds and there effective utilization in the business. Various decisions regarding: • Acquisition of assets. • Specific form of assets where money to be invested. PRAGATI SHARMA
  76. 76. AARTI INDUSTRIES LIMITED • Composition of its liabilities. Liabilities are covered under the scope of Finance Department. The three functions covered all most all finance functions of an organization. And effect the three major decisions they are:- o Investment Division o Finance Division o Dividend Division  FINANCIAL FUNCTION  Find the cheapest source of finance.  Effective utilization of money.  Capital is raised through issue of shares, debentures; interoperate deposits, financial, institutions, commercial papers, etc.  Negotiations with suppliers.  RESPONSIBILITIES OF FINANCE MANAGER  He keeps all the data related to finance and sees that the funds organization is utilized in the most efficient manner.  He is the most important person in shaping the future of the company and has a vital role in decision of the allocation of capital. PRAGATI SHARMA
  77. 77. AARTI INDUSTRIES LIMITED  Nowadays finance manager solves important management problem and his role is becoming pervasive and significant.  FUNCTIONS OF FINANCE DEPARTMENT AT AIL  Overhead payment like salary, wages etc.  Cash management.  Calculation of interest payment.  Preparing bank reconciliation statement  Payment like PF, income tax.  Maintaining accounting record. In AARTI INDUSTRIES LIMITED Procure finance from the following Banks and finance Institutions:  BANK OF BARODA  UNION BANK OF INDIA  STATE BANK OF INDIA  ICICI. ETC ∗ Basis Of Acquiring Loans Banks and institutions give loans on basis of net – worth. (Net – Worth = Capital + Net Reserve) ESP = profit / No. Of Shares (Earning Per Shares) Current Ratio Dept – Equity Ratio PRAGATI SHARMA
  78. 78. AARTI INDUSTRIES LIMITED ∗ Dividend Of Shares  Board Of director decides the percentage of dividend.  Percentage of dividend depends on profit.  Dividend is not an expense but profit distribution. ∗ Short term sources I. Internal  Depreciation funds  Provision for taxation  Accrued expenses II. External  Bank credit  Managing director or directors When a company is going to prepare any new project the company has to consider the following aspects. ¤ cost of project ¤ Means of finance ¤ Financial highlights ¤ Product and capacity  Sources of funds  Use of funds ¤ Projected performance PRAGATI SHARMA
  79. 79. AARTI INDUSTRIES LIMITED ¤ Existing term loan commitments ¤ Existing W.C. facilities ¤ Proposed financial assets ¤ Introduction of product ¤ Company background ¤ Technical aspects ¤ Industry description ¤ Product description and demand supply position. STRUCTURE:- PRAGATI SHARMA
  80. 80. AARTI INDUSTRIES LIMITED CHAIRMAN MANAGING DIRECTOR VICE PRESIDNT GENERAL MANAGER DEPUTY ACCOUNT GENERAL OFFICER/ MANAGER CASHER FINANCE ACCOUNT EXECUTIVE ASSISTANT AARTI INDUSTRIES LIMITED had declared an interim dividend of 15%. The directors of AIL now recommend a final dividend of 21% for the year ended 31st PRAGATI SHARMA
  81. 81. AARTI INDUSTRIES LIMITED march 2002. Total dividend for the year would thus be 36 % and the total dividend payment would be Rs. 418 lakhs subject to declaration of final dividend at Annual General Meeting.  ACCOUNTING DIVISION: The books to be maintained in AARTI INDUSTRIES LIMITED are as follows: ∗ Sales accounting ∗ Purchasing accounting ∗ Bank Transition ∗ Cash Transition ∗ Debit notes ∗ Journal voucher From the above all books, the only description of some books are given below.  RESPONSIBILITY OF FINANCE MANAGER ∗ He keeps all the data related to finance and sees that the funds organization is utilized in the most efficient manner. ∗ He is the most important person in shaping the future of the company and has a vital role in decision of the allocation of capital. ∗ Nowadays finance manager solves important management problem and his role becoming pervasive and significant.  SALES ACCOUNTING PRAGATI SHARMA
  82. 82. AARTI INDUSTRIES LIMITED Following is the sales procedure prevailing at the AARTI INDUSTRIES LIMITED. Marketing department gets purchase order through negotiation. a. Indent is sent the dispatch section. Indent consist of terms of payment, party’s name, details regarding the goods rate, excise, sales tax transaction, credit period discount (if applicable). b. Dispatch section contract finish goods, stores so that they can supply the necessary material. c. Finished goods stores communication with excise department and they carry on their necessary procedure. d. Preparation of sales registers, ledger account, trail balance, etc. Sale keeps management information system (MIS). MIS contains information relating to receivable and sales-product wise and quantity wise.  PURCHASE ACCOUNTING: Flow and documents in purchase accounting is as follows: Step 1  To receive all invoice from purchase department.  To receive all M.R.N. from stores department.  To receive all purchase order from purchase department. Step 2  To match this document with each with each other. PRAGATI SHARMA
  83. 83. AARTI INDUSTRIES LIMITED  To attach copy of P.O and MRN with invoices. Step3  To process the invoice after comparing the same with MRN and PO.  To forward the document to senior manager for management check. Step 4  Executive to hire second check to ensure correctness and accuracy.  To put his/her initials on the rubber stamp at the place market for the purpose.  To forward the document to senior manager for management check. Step 5  Senior manager to check the document from various angles to ensure total control.  To put his/her initials on the rubber stamp at the place marked for the purpose.  To forward the document to account assistant for data entry.  Note:- Dispatch section on receiving the purchase order co-order with production department so that the production can be on line with the demand of the products.  BANK TRANSACTION OPERATION OF BANK ACCOUNT:- AARTI’s major bankers are: ∗ Bank of Baroda, PRAGATI SHARMA
  84. 84. AARTI INDUSTRIES LIMITED ∗ Punjab national bank, ∗ Dena bank. Performs:  Maintenance of current account  Maintenance of cash credit account over draft facility.  Preparation of BRS (bank reconciliation statement) every month.  CASH BOOK Performs:  Petty cash book which petty cashier operates.  Main cash book which dose main cashier operator.  Note: According to the income tax act if the amount exceeds, rupees twenty thousand then it must be paid by cheque. OTHER INFORMATION:  Corporate dividend tax means tax on dividend payable by the corporate.  Percentage of transfer to general reserve is based on criteria decided by company’s Act.  Deferred liability means liability, which is to be paid at later stage.  Rate of department according to income tax is different than that of company act.  Department not the actual expense but hidden profit. Balance sheet of AARTI INDUSTRIES LIMITED As on 31st march 2005. Liabilities Amounts Assets Amounts SHAREHOLDERS’ FIXED ASSETS PRAGATI SHARMA
  85. 85. AARTI INDUSTRIES LIMITED FUND Gross Block Share capital 364047120 3772152761 Less: Depreciation Equity share warrants 18456460 1476802108 Reserves and Surplus 2004085241 =Net Block 2295350653 Capital Work in progress 279752107 LOAN FUNDS Secured loans 2883205497 INVESMENT 247421512 Unsecured loans 120956656 CURRENT ASSEST, DEFERRED TAX LOANS AND ADVANCES LIABILITY 260207942 4282512765 LESS: CURRENTLIABILITIES AND PROVISIONS 1469337743 Net Working Capital 2813175022 MISCELLANEOUS EXPENDITURE (To the extent not written off or adjusted) Pre-operative Expenses NIL Deferred Revenue Expenditure 15259622 TOTAL 5650958916 TOTAL 5650958916 PRAGATI SHARMA
  86. 86. AARTI INDUSTRIES LIMITED Profit & Loss Account for the year ended 31 st March, 2006 INCOME Income from operation 7,861,750,467 other income 47,810,802 Increase in inventory 220,512,506 TOTAL 8,130,073,775 EXPENDITURE Manufacturing Expenses 5,765,521,854 Purchase of Goods Traded In 601,311,395 Office and administration Expenses 86,832,124 Selling and Distribution Expenses 518,133,693 Interest and financial Charges 204,004,164 Non-Operating Expenses and losses 16,244,538 TOTAL 7,192,047,768 Profit Before Depreciation 938,026,007 Less: Depreciation 221,869,002 Profit Before Tax 716,157,005 Less:Provision for taxation(including fringe benefit tax) 162,300,000 Profit After Tax 553,857,005 Less: Provision for Deffered Tax 63,213,480 Profit After deffered Tax 490,643,525 Add: Balance of Profit and Loss Account Brought Forward 1,537,363,110 Add: Provision for Diminution in the value of Investments- Quoted NIL Less: Prior Years' adjustment for others 18,520,032 2,009,486,603 less:Transfer to General Resereve 50,000,000 1,959,486,603 Less:Dividend 61,888,011 Less:Dividend 50,966,597 Less:Proposed Dividend 29,123,770 Less:Tax On Dividend 19,912,468 Balance Carried Forward To Balance Sheet 1,797,595,757 PRAGATI SHARMA

×