Final Ir Project

Indian Rayon

GENERAL ORGANIZATION STUDY A PROJECT REPORT submitted by

ASHOK JIVANI Batch:- 2008-10 Roll no:- 08077 TO Director (PGDM) In partial fulfillment of the requirements of Tolani Institute of Management Studies, Adipur For the award of the degree of Post Graduate Diploma in Management

Tolani Institute of Management Studies Adipur – 370205 JULY 2009 ACKNOWLEDGEMENT: “Change is the Law of Life, Challenge Is the Aim of Life” to experience the vast growing change of industries and challenges attached to working environment in India. Summer training is the best period to know the integrity of corporate world. On my knowledge-enhancing sojourn to Veraval for summer

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Indian Rayon

placement at INDIAN RAYON (A ADITY BIRLA NUVO LTD). Who has given me lot of insight into the intricacies of FINANC profession in such a short stint. No words of appreciation shall however suffice to acknowledge the guidance, help, support and cooperation meted out to me at the organization. In this brief period, I was afforded lot many opportunities to interact with many professionals of different fields only to enlighten me and open up new vistas of my limited knowledge the doors of which would have remained closed had this opportunity not been granted to me. I am very thankful to MR. RAHUL MOHONOT (President), who has given lot of inspiration recognition to me. The ACCOUNT team who taught me many practical lesson MR.SHUDHIR MISHRA (Gen, Manager and Finance.), MR.SATISH SHAH (Assistant manager). Mr. P. N. RAO (Sr. President Of Hr), Miss. AAKANSHA TYAGI (HR. Officer) and Miss. SHRADDHA MEHTA. The main vidya or treasure of knowledge it was impossible without Mr. J.V.DAVE (Librarian) providing books and journals and above all a real guidance to me. Also I pass on my heart-felt gratitude to all my faculty teachers for inculcating such a uniquely wonderful and yet enlightening exposure only to enhance one’s knowledge, skills and aptitude. For which I shell ever be indebted & profoundly obliged. Great thanks for support and blessings of almighty and my parents.

ASHOK JIVANI CONTENTS: Descri

Page NO.

ption Acknow

2

ledgeme nt Content

3

s List

of 4

tables

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Indian Rayon

List

of 4

figures List

of 5

Abbrevi ation Abstrac t 1.INTR

10

ODUST

10

ION

12 1.1 13

PROJE

128

CT 1.2 INDUS TRY 1.3 COMPA NY 1.4 REVIE W

OF

LITER ATURE 2.

8

General Depart ment 3.

27

Producti on Depart

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Indian Rayon

ment 4.

51

Persona l Depart ment 5.

70

Marketi ng Depart ment 6.

96

Finance Depart ment 7.

125

Method ology 8.

131

Recom mendati ons 9.

132

Conclus ion Appendi 134 ces Bibliogr

149

aphy

LIST OF TABLES

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Indian Rayon

S.no

Table title

Page No.

1.

Production Capacity

37

2.

Worker & Staff

56

LIST OF FIGURES S.no Table title

Page No

1.

Domestic Competitors – VFY

82

2.

Domestic Market Share

83

3.

Export Share

83

4.

Caustic Market Position

84

5.

Performance IR

102

6.

PBIT

102

7.

Production

103

8.

Sales

103

9.

Capital Structure

104

10.

Capitalization

105

11.

Current Assets

112

12.

Dividend Distribution

121

13.

Profitability Ratio

122

14.

ROE

123

15.

Net Profit Ratio

123

16.

Current Ratio

124

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Indian Rayon

Abbreviations: IR: Indian Rayon VFY: Viscose Filament Yarn Dept: Department CFO: Chief financial officer WCM: World Class Manufacturing GRN: Good Receipt Note TPM: Total Production Management EOQ: Economic Order Quantity ABC: Always Better Control SRTEPC: Synthetic Rayon Textile Export Promotion Council JIPM: Japanese Institute of Plant Management IREU: Indian Rayon Employee Union RMS: Rayon Mazdoor Sangh IRKM: Indian Rayon Kramchari CFD: Corporation Finance Division

EXECUTIVE SUMMERY: The study undertaken by the student is mainly focused on the “Organization Study” management as well as the getting exposure of all the department of the organization and analysis of financial performance of Rayon division of Indian Rayon. The organization is a large scale successful player in VFY and Chemical business. It has strong finance structure and good reputation in the market. The management of the organization does the utilization of assets and funds effectively and efficiently.

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The study undertaken with aims of following objectives.  To determine the various technical’s for managing continuous flow of raw materials, store and spares.  To determine the collection and the distribution procedure of the organization.  To determine the accounting policy and reporting system of the organization.

 Analysis of financial ratios.

Thus, this report contains the component of working capital management system, ratio analysis etc. of the organization.

DECLARATION: I hereby Ashok Jivani declare that I have undertaken training at INDIAN RAYON ( A UNIT OF ADITYA BIRLA NUVO LTD). I have prepared my report on Organization Studies at ADITY BIRLA NUVO LTD. ➢ All the matter and content involved in this report is original. ➢ All the analysis and findings are done by me.

➢ All the information and figures have been taken from different sources.

Place: Verval Date: 10-07-2009

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Jivani Ashok PGDM SEM- I I ROLL NO: 08077

GENERAL Department:

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INDEX GENRAL DEPARTMENT: Sr. no

Particular

Page no.

1

Introduction

10

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Indian Rayon

2 3 4 5 6 7 8

History & Development SWOT Analysis Board of Directors Plant Location Organization Structure Size form of organization Implements of 5’s

16 17 20 21 22 23 25

9 10

Vision & Mission Group Value

26 26

1. INTRODUCTION 1.1 Project: The project has been done on General organization study at INDIAN RAYON. The project has been conducted specially at finance, marketing and HRM department of INDIAN RAYON. The analyses are done on INDIAN RAYON but some of the analysis are done on INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO LTD) as a whole. This topic was selected by me because of criticalities involved in managing the organization study. I selected this topic to learn all the concepts related to industry. I chose INDIAN RAYON for this purpose as INDIAN RAYON is a successful company.

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Every business needs investment to procure fixed assets, which remain in use for a longer period. Money invested in these assets is called ‘Long term Funds’ or ‘Fixed Capital’. Business also needs funds for short-term purposes to finance current operations. Investment in short term assets like cash, inventories, debtors etc., is called ‘Short-term Funds’ or ‘Working Capital’. The ‘Working Capital’ can be categorized, as funds needed for carrying out day-to-day operations of the business smoothly. The management of the working capital is equally important as the management of long-term financial investment. This project contains all the concepts which are considered by the manufacturing organizations. I have tried to deal with all the concepts and have learnt many important concepts.

PROMOTER:

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ADITYA VIKRAM BIRLA (November 14, 1943 – October 1, 1995) A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global business empire at the age of 24. He was the first to put Indian business on the world map, as far back as 1969, long before globalization became a buzzword in India. The Aditya Birla Group, Epitomizing the philosophy of its Legendary leader – the late Aditya Vikram Birla – one man who Made a difference. Rooted in Indian values, yet global in vision. Rock solid in fundamentals. Nurturing a culture where success does not Come in the way of the need to keep learning afresh, to keep Innovating, to keep experimenting. Transcending the conventional Barriers of business to send out the message that it cares.

1.2 Indian rayon :

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Indian Rayon & Industries Limited (IRIL), a Rs 15.95 billion Aditya Birla Group company, operates a wide range of businesses. Incorporated in September 1956. As a part of its backward integration process, IRIL set up a 33,000-tone caustic soda plant with bi polar membrane cell technology from Krupp UDHE Gm of Germany Located at Veraval in Gujarat, the Caustic Soda Division was commissioned in 1997.

A 50 TPD Flaking plant was commissioned in January 1998. In the process ,Caustic Soda Lye Chlorine & Hydrogen gases are simultaneously produced from cells as by products. The Capacity of Caustic Soda is 100 TPD, Chlorine gas and Hydrogen gas are 88.60 MT and 29400 nm3, per day respectively. The Chlorine and Hydrogen gases produced from cells are further purified in respective sections. The products produced are of high quality since the process demands very high quality of raw materials. The Hydrochloric acid is produced with chlorine and Hydrogen gas. The capacity of HCI is 90 TPD on 32%. About 30 per cent of Caustic Soda is for selfconsumption and remaining is for sales Caustic soda lye produced is of 32% concentration , chlorine and hydrogen are produced as gases from cells. These two gases are further purified in respective sections. The Plant is divided in to the following sections Brine Section Catholyte & Acolyte Handling Chlorine Liquefaction ,Hydrogen Bottling, Caustic Evaporation & Flaking Hydrochloric Acid Synthesis Sodium Hypo Chlorite. There are five chemical plants – Acid plant, Carbon – Disulphide plant, Water treatment plant, De-mineralization plant and effluent treatment plant.

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Transcending the conventional barriers of business to send out a message that "We care". 1.3 introduction to Aditya Birla Group : The Aditya Birla Group is India’s first truly multinational corporation. Global in vision, rooted in Indian values, the group I driven by a performance ethic pegged on value creation for it multiple stakeholders. A US $ 7.5 billion conglomerate, with a market capitalization of US $ 8.5 billion, it is anchored by an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30% of its revenue low from it operations across the world. The Group’s products and services over distinctive customer solutions. Its 72 state of art manufacturing units and sect oral services span India.

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force of 130,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China,

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Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea. Aditya Birla is organized into various subsidiaries that operate across different sectors. Among these are viscose staple fibred, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, Modern retail (under the 'More' brand of supermarkets, and also under the Trinethra, and Fabmall brands until recently), fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services. The Group consists of four main companies, which operate in various industry sectors through subsidiaries, joint ventures, etc. These are Hindalco, Grasim, Aditya Birla Nuvo, and UltraTech Cement. The Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. The origins of the group lie in the conglomerate once held by one of India's foremost industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these companies to his grandson, Mr. Aditya Vikram Birla – the father of the current Chairman of the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is the grandson of Mr. Basant Kumar Birla, who heads his own independent business conglomerate. Several other members of the Birla Family, own and run their independent business groups. 

Globally the Aditya Birla Group is:



In India: •

A metals powerhouse, among the world's most cost-efficient aluminum and copper producers. Hindalco-Novelis is the largest aluminum rolling company. It is one of the three biggest producers of primary aluminum in Asia, with the largest single location copper smelter.

•

No.1 in viscose staple fibred.

•

The fourth largest producer of insulators.

•

The fourth largest producer of carbon black.

•

The 11th largest cement producer globally, the seventh largest in Asia and the second largest in India.

•

Among the world's top 15 BPO companies and among India's top four.

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•



Among the best energy efficient fertilizer plants.

In India: •

A premier branded garments player.

•

The second largest player in viscose filament yarn.

•

The second largest in the chlor-alkali sector.

•

Among the top five mobile telephony companies.

•

A leading player in life insurance and asset management.

•

Among the top three supermarket chains in the retail business. Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where

success does not come in the way of the need to keep learning afresh, to keep experimenting. 

Beyond business — the Aditya Birla Group is: •

Working in 3,700 villages.

•

Reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla.

•

Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social causes and running 41 schools and 18 hospitals.

History& development : Indian Rayon & Industries Ltd. Incorporated in 1956 by Morarji.j.Vaidya for the production of rayon filament yarn, Indian rayon & Industries was taken over by Aditya Birla in 1966. It was formally known as Indian Rayon Corporation Ltd., which is 1600 cr. Multi-product, and multi-location industrial conglomerate, a part of Aditya Birla Group. A group consolidating its position under the chairmanship of Shri Kumar Mangalam Birla taking the aspirations from the legacy of a leading industrialist, Late Shri Aditya Vikram Birla. The organization of a long, illustrious & magnificent legacy

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spread over a period of 125 years. The organization came on the sphere of Rayon Industry in 1963, where Late Shri Lal Bahadur Shashtri laid down its foundation stone.

Shri Morarji Vaidya of Vaidya Group started this organization with production capacity of 4MT per day in collaboration from Von-Kohom International of USA. In 1966 it was taken over by Shri Aditya Vikram Birla and since then has been a part of the AV Birla combine.

In 1976, it was merged with Jayashree Textile & Industries, which owned 3 textile units & an insulator Unit. Indian rayon & industries limited, a flagship company of the Aditya Birla Group, is among India’s top 25 corporations with a turnover of over Rs.15 Billions.

SWOT Analysis: The overall evaluation of division like strengths, weakness, opportunity and threats is called SWOT analysis.

 Strength: ➢ Yarn produce here is of high quality then also management always tries to increase the quality of yarn in order to fulfill their potential customer and new ones. Total produced items+ wasted are being sold; this shows the efficiency of sales activity. ➢ Better pacing, carriage and transportation system with all modern equipment and good after sales service.

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➢ Regular meeting and seminars are conducted in the entire department in order to find our loopholes and solve the same. ➢ Division also have continuous spinning yarn department in which the modern technology is used for the spinning the yarn and its is adopted fro Germany. ➢ Divisions have domestic as well as export market and for this they are doing the Internet marketing in order to find new markets. ➢ Division has WCM (World Class Manufacturing) ceil in which they look out for better way of manufacturing. ➢ ISO 9002 for the better quality of the production carries division. ➢ Division is certified by ISO 14001 for the good environment management system, for their division has hoti-culture department in order to look to the surrounding environment.

 Weakness: ➢ Cost of production is more due to existence of very old technology installed in this division. ➢ Many process steps and process is more sensitive to normal process variations. ➢ Division is unable to pay more attention toward proper human resource management. ➢ Location away from consuming centers. ➢ Bigger process cycle/higher process stock.

 Opportunity:

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➢ Division should find new market area for its products specially chemicals. ➢ More research activity should be done, as there is chance of finding new markets. ➢ VFY use for certain textile items is specific and indispensable. ➢ Quality has ore weight age in international market. Indian rayon Pot Spinning Yarn is next to Asahi Japan and better than Chinese and Russian Yarn used in international market. ➢ Biggest opportunity, when opening up of global market MFA expires in 2005. Quota restriction will boost the export of yarn directly and though Textile in World’s tows biggest market Europe an US.

 Threats : ➢ Government policies are the main hurdles of the division’s performance. ➢ Emergence of cotton threads made the market share of Rayon Yarn low. ➢ Fashion changes are also basic threats for such division. ➢ The Viscose Process is highly polluting. The basic raw material (pulp) is again pollution prone.

 Challenges ahead The Rayon division along with the industry facing the following challenges. ➢ Comparatively poor quality. ➢ Unregulated dumping of the products from China. ➢ Higher cost per Kg. of production.

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➢ Sustaining sales volume.

BOARD OF DIRECTORS: Chairman;

Mr. Kumar Mangalam Birla

President:

Mr. Rahul Mohnot

JT.President (F&C)

Mr. D.P. Modani

JT. President (Marketing):

Mr. K.D. Joshi

SR.VICE PRESIDENT (HR):

P. Narsimah Rao.

Chief Finance Officer:

Mr. Adesh Gupta

Company Secretary:

Mr. Devendra Bhandari

Advisors:

Shri M.C. Bhareja Shri S.B. Agrawal Shri R.I. Bawala

Auditors:

Khimji Kunwarji & Co. Mumbai

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S.R. Batliboi & Co

Registered office & corporate office:

Indian Rayon

Indian Rayon

Junagadh – Veraval Road,

(Corporate Finance Division)

Veraval – 362 266, Gujarat (India)

A-4 Aditya Birla Centre,

Tel.: (02876) 245711

S.K. A hire Marge,Worli,

Fax: (02876) 243220

Mumbai-400 030.

E-mail: [email protected]

PLANT LOCATION: For any Company the location of its manufacturing unit (plant) is very important. Easy availability of raw material, cheap labors, Transport etc are better features for selecting location of plant. For IR (Indian Rayon) transportation through sea route is easy, as it is located at sea cost of Veraval. By sea route raw material is imported from foreign countries. It also Export through sea route. It has large demand local market so they are very near to market E.g.: Gujarat, Maharashtra, Chennai, and Delhi. SR.

COMPANY

KEY PRODUCTS AND SERVICES

GRASIM

Viscose staple fiber, cement sponge, iron textiles,

NO

01

exports, software consulting

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Indian Rayon

02

HINDALCO

Aluminum

03

INDIAN RAY ON

Viscose filament yarn, textiles, insulator, carbon black

04

INDO GULF

Fertilizers, copper

05

BIRLA GLOBAL FINANCE

Financial services

06

HIGI INDUSTRIES

Files, casting gases

07

ESSEL MINING

Iron and manganese or mining Ferro alloys, HPE woven sacks

08

SHREE

DIGVIJAY Blended yarns

CEMENT

Aditya Birla Group of companies:

Organization Structure

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Size & form of organization :

The size of this particular unit “INDIAN RAYON & INDUSTRIL LTD” is large scale industry. We can say that of this unit is heavy industry, because it processes all feature of heavy industries like it has large amount of capital, have a production cycle & also uses heavy & costly machinery & bulk material. Hence it is quite nature that this industry requires large number of person. ‘INDIAN RAYON & INDUSTRY LTD” is a public limited company this company is in corporate on 26th September, 1956 under the companies Act, 1956 & they have started public issue. This production process is also long duration.

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Aditya Birla Nuvo Ltd.(Rayon Division) consists of all three level of management. ✔ Top level management ✔ Middle level management ✔ Bottom level management Top level management of Indian Rayon is at the corporate office of Aditya Birla Nuvo Ltd. Consists of board of company involving all major Decisions related to the company. Middle level management of Indian Rayon is within the premises of Factory called “ADMINISTRATIVE BLOCK” consisting of all major departments. ➢ Human Resource Department.

➢ Finance & Accounting Department. ➢ Marketing Department. ➢ Production Department.

Here each Department has his Department heads. The organization adopts Departmentalization. The position indicating on horizontal line as per relationship.

BEAT THE BEST :

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“Together Let’s Achieve the Excellence to Beat the Best”

To position ourselves as the leading edge word- class corporation in an increasingly competitive an borderless world, our group’s carefully revolved around customers our employees and our shareholders our aim is to deliver value of these key constituents.

In our Endeavour to attain our goals, world- class manufacturing programmed will be the driving force of all of our operation. We have inculcated a couture which aims to Zero pollution, Zero customer complaints and Zero Abnormally movement.

KUMAR MANGLAM BIRLA IMPLEMENTS OF 5’S :

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➢ 5’S CONCEPTS a) “S”(Seiri) : Sort out unnecessary items in the work plase & discard

them.(Organization) b) “S” (Seiton) : Arrange necessary items in good order so that they can

be easily picked and used. ( Neatness) c) “S” (Seiko): Clean & maintain workplace so that there is no dust and

dirt.(Cleanliness) d) “S” (Seiketsu) : Standardize the work procedneure for everything use

do.(Standardizeion) e) “S” (Shitsuke) : Develop a habit of doing right things a standardized.

(Discipline)

VISION & MISSION :

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GROUP VALUE:

LITERATURE REVIEW: During the literature review the attempt was made to undertake the detailed review of all the secondary data available regarding the chemicals. The major step of the literature review is as follows: ➢ Detail information regarding the product was collected. ➢ The list of the industries lying in the each end use segment was collected.



The literature review covered the information: ✔ Product literature of various companies. ✔ Trade journals like chemical weekly and chemical industrial news. ✔ Chemical weekly-buyers guide. ✔ Other data given by the department of caustic marketing.

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RESEARCH METHODOLOGY:

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INTRODUCTION:

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As per the project has to be completed within the resource limitations of the time, money, etc. the systematic methodology was adopted to have the efficient utilization of resources and to provide the guideline for carrying out research. The framework of the methodology adopted had really help for completing the project easily, economically, efficiently and timely. Throughout the complete project work followed without any major changes in it.



Objectives:

➢ To find out level of product quality and quantity by Indian Rayon. ➢ To find out delivery performance. ➢ To find out quality of documentation about order status. ➢ To find out availability of after sales services. ➢ To find out the complaint about the product. ➢ To find out the response of the marketing persons of the Indian Rayon.



Field research: Secondary data has its limitations. It dose not provide detailed information regarding present policy and future scenario etc. in detail. To overcome this limitation of secondary data, the main research was conducted. The main objective of field research was:

➢ To have information regarding customer satisfaction or dissatisfaction. So that the company can bridge this gap for healthy relationship.

➢ To have information regarding company’s strength, weakness, opportunities and threats.



Details about the field research are given below: ➢ Sampling plan:

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In this field study, the sampling plan is not universe because I have visited only customers of Jetpur, Navagadh, Veraval and Ahmadabad.

➢ Data collection method: There are many methods of data collection. Here, we will use the questionnaire method having some important questions.

The research has taken depth interview of each respondent, the researcher also tried to ask questions, even if they were not in questionnaire for getting more information. The interview was structured one. Thus during interview specific pattern of questions or specific questionnaire was followed for one detailed questionnaire was prepared. During the field survey, interview was mostly conducted with key person of the unit.

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PRODUSTION DEPARTMENT :

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INDEX PRODUCTION DEPARTMENT :

Sr. No.

Particuler

Page No.

1

Introduction

29

2

Plant of the Company

32

3

Introduction of Company’s Product

34

4 5 6 7 8 9

Manufacturing Process Production Capacity Utilization Product Pslant Layout Material Handling Purchase Department

35 37 40 41 42 43

10 11

Inventory Department Qulity Policy

46 48

12

Production Planning and Control System

49

13

World Class Manufacturing

50

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INTRODUCTION : Production means creation of utilities and it covers all the activities of procurement,allocation and utilization of resources such as labour, energy material, equipment, machinary etc. Every industrial organisation must do two things: ✔ One is produce something. ✔ The other is to market what is produced. Production is a fabrication of physical object through use of Men,Material & Eqipment.

“production Manegement deals with the decision making related to produstion process so that resulting goods or services is prodused according to specification, in amounts and by schedule demanded and at minimum cost” E.S.Buffa.

Production must be oprated is an economic and efficent manner,because cost of production isa vital factor in facing market compitition and ensuring normal profit or return on investment.

The main raw material for the manufacture of yarn is wood pulp. Different types of pulp are used in the process depeding upon the market availbility and for acquiring the required quality. The pulp is also imported. Apart from pulp, the other

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major raw material are castic, sulphric acid and carbon di-sulphric. The Company has gone for backward intergrating by manufacturing sulphric acid and carbon di-sulphric.

Input • • • • •

Material Labour Capital Energy Informati on Resource

Production Process

Output • •

Produ ct Servic e

PLANTS OF THE COMPANY:

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R C B aio -yu p os– ap t con ilG ce taP yrln a. P n m o etP 3m 2l4w 6b 2a9e .r5n . 5at0 P T n M l T eP W a P D n D T et c h n o l o g y

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Rayon Plant: The Rayon Plant located at Veraval is an ISO 9002 and ISO 14001 certified Plant. The main product of the Rayon Plant is the Viscose Filament Yarn apart from chemicals like Sulphuric Acid, Carbon-di-sulphide, which are both consumed inhouse and Sodium Sulphate, which is a by-product.

The Installed capacity is as follows: Viscose Filament Yarn : 49 Tonne per day Company is the market leader in terms of Sales and Quality. Exports constitute about 17% of the total turnover.

Power Plant: To meet the power and steam requirement of the Rayon & Caustic Plant, the company has set up a 34.5 MW Thermal Power Plant with the state of art technology.

As the international trends in fuel and power management goes strongly in direction of producing pollution free power, two CFBC [Circulating Fluidized Bed Combustion] type boilers have been installed whose

Capacities are as follows:

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No. Of boilers

3

Capacity of Boilers

Steam Quantity 50x2 TPH & 105x1 TPH, Steam Pressure 90 Kg/cm2, Temperature of SH steam 510 degree Celsius 150TPH

Coal Handling Capacity

The CFBC boilers are considered to be the most efficient and environment friendly boilers and it provides excellent combustion and emission characteristics and is flexible in using different combinations of fuel.

Caustic Soda Plant: Caustic soda being one of the major inputs for producing Rayon a modern Membrane Cell Technology Chlor-Alkali Plant has been installed and commissioned in the year 1997. The Caustic Plant is integrated with Power Plant & Rayon Plant. Caustic Soda Plant is highly Power intensive & integration with Power Plant provides multiple advantages.

It is based on 'Membrane Cell Technology' from UDHE (Germany). The technology is most modern and highly energy efficient and completely free from hazardous pollution. The plant caters to the requirements of Rayon Plant as well as nearby market.

Introduction of the company’s products :

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There are elevan units working under IR division of Birla Group. In every unit various are produced. Here we can mainly concerned with Rayon’s division, manufacturing. ➢ Viscose Filament Rayon Yarn. ➢ Sulphuric Acid. ➢ Carbon Di-Sulphide.

➢ Anhyrlrous Sodium Sulphate. Vital and essential for viscose filament rayon wood pulp, caustic soda (NaOH) ,WHILE FOR THE PRODUSTION OF THE Sulphric Acid Sulphur, Oxygen gas and water are requried for production of Carbon-Di-Sulphate.There is separate plant for each product. The fourth product is a by-product. The use of each product is as under.

 Uses of Rayon Yarn: ➢ Mantal of gas lanterns. ➢ Dress material and shree. ➢ Elastic tapes. ➢ Fancy yarn, Finishing fabric and laces. ➢ Embroidery works. ➢ Wrap for weaving for suiting and shirting. ➢ Making border design stick with dress materials ets.

 Uses of Sulphuric Acid: ➢ Chemical industry. ➢ Agro-Chemical industry.

➢ Paint industries. ➢ Dye industries. ➢ Medicine industry.  Uses of Carbon-di-sulphide: ➢ Glass industries. ➢ Pharmaceutical industries.

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➢ Rayon industries. ➢ Base of Agro-Chemical industries.  Uses of Sodium Sulphate: ➢ Glass industries. ➢ Paper industries. ➢ Dye industries. ➢ Paint industries.

MNUFATURING PROCESS : The main materials required for Rayon Yarn are:

Raw-materials & chemicals :

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Raw-Materials

Chemicals

Wood pulp (Cellulose) Wood fibred Flax fibred Staple & Synthetic fibred Cotton Staple & Synthetic Yarn Carbon Black Feed Stock / Coal tar/ Fabrics/ Others

Sulphuric acid Carbon Di sulphide Sodium Sulphate Caustic Soda

Above 80% of the Wood pulp is importing form outside India, Since it is imported form Canada, Sweden and South Africa. The sheets of Wood pulp are made for cellulose form the following three:

➢ Eucalyptus (S.A) ➢ Spruce

(Canada)

➢ Bamboo

(India)

Production process : It undertakes different type of departments which are as under

Viscose Department  Ripening Room  Spinning Department  After Treatment Department 

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Textile Department  Packing Department  Transport

PRODUCTION CAPACITY: Production capacity means capacity of the firm or an organization to produce the products in a specific time. Though, IR is an emerging company, it has got great increase in its production capacity. Indian Rayon is second largest in production of Rayon.

Business-wise capacity As on Manufacturing capacity Viscose filament MTPA

31 March 2008

31 March 2009

16,400

16,400

yarn Caustic soda Insulators Carbon black Flax yarn

MTPA MTPA MTPA Spindle

82,125 38,800 2,30,000 15,340

91,250 38,800 2,30,000 15,084

Worsted yarn

s Spindle

25,548

25,548

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Indian Rayon

s Wool combing Cards Linen fabric Looms Urea (Reassessed MTPA

6 107 8,64,600

7 106 8,64,600

installed capacity)

UTILIZATION OF PRODUCT: Product produced is used in following industries:

 Garments: In the garments segment, the division’s performance has been encouraging as it registered profitable growth. The long – term out look for the business is positive.

The division will continue to maintain its edge through innovative product differentiation, aggressive expansion of its retail reach in malls and high streets. Providing the consumer international class experience of its life style brands. The company plans to introduce international labels in the current fiscal policy.

 Carbon black: With the upswing in the Auto & Tyre sector, the company’s carbon black business continues with its upward climb. There is reason to believe buoyancy is here to stay for a while.

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that

this

Indian Rayon

Company is amongst the lowest cost producers in India. A simultaneous focus on R & D to produce value added glades would help leverage the Birla Carbon Brands & expand markets.

 Textile: ➢ Our company textile division performance has improved substantially, on the

wings of its linen & fabric flax yarn. The year ahead seems to be good with the boost given to the textile sector and encouraging environment post WTO. The company strategy will be to promote linen fabric as a regular wear by focusing on quality of comfort and wider availability across retail chains. It will concentrate on niche segment to improve margins.

 Insulator:

Insulator JVS should contribute positively with the stabilization of its new kiln & quality efforts.

CHEMICAL PLANT S IN INDIAN RAY ONE : ✔ Acid Plant ✔ Carbon-disulphide Plant

✔ Water Treatment Plant ✔ Demineralization Plant ✔ Effluent Treatment Plant

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Indian Rayon

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Indian Rayon

PLANT LAYOUT : “A good plant layout is one which allows material rapidly and directly for processing. This reaches transport handling, clerical and after costs down per unit, space requirements are minimized and reduce idle machine and idle main time.”

Objectives of ideal plant layout : (1) Minimization of material handling. (2) Avoidance of industrial accident. (3) Better working conditions for the employees. (4) Effective utilization of resources. (5) Improves the quality of operations (6) Achieves minimum overall cost.

IRadopt process layout in his Viscose Filament yarn plant also in caustic soda plant. There is separate department of each process such as viscose dept, spin bath dept, spinning dept, after treatment dept, textile dept and packing dept and raw material, semi finished goods and finished goods are transfer one process to another process by using conveyers, rails, cranes, trucks.

MATERIAL HANDLING :

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“Material handling is the art and science involving the movement, packing and storing of substance in any form.” -- American Handling society Material handling can be defined as “controlling the amount, location, movement and timing of the various commodities used in and produce by the industrial enterprise.”

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is totally using the automatic process for production, but at certain stage uses equipment for the sifting of raw material. The company use trolley as an equipment for material handling in its viscose section to brought up the wood pulp from the storage department an in after treatment department to put the cakes in washing and knitting. After the last stage of production, the final product sends to the packing section with the help of trolley. Many a times INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) uses ➢ Conveyers ➢ Rails ➢ Crain ➢ Trucks (For the supply of raw material to various departments.) The diesel power house of the INDIAN RAYON (A Unit of Aditya Birla Nuvo ltd.) uses conveyer belts for the supply of coal that is import from Bihar. Where the other raw materials like wood pulp, Sulphuric etc. are brought by land route. I.e. rails and truck to the factory.

PURCHASE DEPARTMENT : Purchasing function is the hart of any business and it is suppose to be cast goldmine to profits.

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“The task of purchasing is too related to going to the open market, finding the desire material at the lowest possible price and selecting the supplier to offer minimum prices having required quality of material.”

➢ Purchase the right quality of material. ➢ To purchase right quantity of material. ➢ To make the material available at the right time. ➢ To purchase the material at the right price. ➢ To purchase material from right source.

Purchase procedure of Indian Rayon Inventory department : Inventory dept. of INDION RAYON (A unit of Aditya Birla Nuvo Ltd.) scientific mounting level method. In this company, inventory control is long process.Any dept. that is in need of any material prepares an indent after filing it is sent to the purchase dept. of the company.While the placing the purchase order INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) Considers the following factors.

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➢

Old rate of the product

➢

Lowest bids

➢

Reputation of supplier

➢

Delivery period

➢

Payment terms

➢

Technical evolution

➢

After sales service

➢

Performance guarantee

The above question are comparing on the basis of comparison chart which they prepare with the help of all the information. The decision of purchase is one by the authority. The purchase order is placed on the basis of feasibility. So, we can say that INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) applies integrated material management concept.



Store management : The store dept. of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.)

receives the raw material which was ordered from the supplier. This dept. prepares good receipt note (GRN). One copy of GRN is send to that dept. which has placed an indent. Particular dept. approves the materials and sends requisition to store dept. and collect the material. On the basis of GRN, final invoice is paid Account dept.



Inventory control : “Plant maintenance ensures that all production facilities are in serviceable

condition at required time, causing no production hold-up, interruption, or loss of individual efficiency for operation.”

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The objective of plant maintenance is to improve functional reliability of production facility to glorious opportunities. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) follows word class manufacturing policy (WCM) of plant maintenance, which it has adopted in the recent years. However formally it was using total productive maintenance (TPM) of plant maintenance.

Inventory control one of the key factor on the basis of which the company can take, decision on behalf of that the cost can be controlled. If the company having a good control on the inventory than the cost can be controlled more effectively. The inventory control helps the company in forecasting the feature demand of the goods as per the requirement of the production and the market.

The commonly used inventory control methods that a company uses are the EOQ and ABC.



EOQ: - (economic order quantity) : In this method the feature demand of the inventory is been identified as per the

requirement of the company, the key focus in this type of inventory control method is the optimum utilization.

 ABC: - (always better control) In this type of inventory control method the name itself states the use and potentially which lies in theirs method. In this method the goods are divided in such a way that in response to its use and order and cost as the goods are divided in parts as according to A.B.C.

Quality control :

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“Quality is an asset which may be offered to the potential customer of a product or a service.” It mainly depends upon two factors:

1. product-service design 2. operating system-makes a product/provides a service

Quality policy :

“TOTAL QUALITY MANAGEMENT” covers all stages of manufacturing, starting from a careful selection of raw material, technology, maintenance of equipment, training of people to maintain and operate the equipment. We operate with a very clear “Customer Focus” with regards to the Quality of Products and Services.

 We are committed to:

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Indian Rayon

➢

Meets customer‘s expectation of quality an services in premium segment.

➢

Maintain high morale of employees.

➢

Use eco-friendly technology and maintain pollution free environment.

➢

Pursuit of excellence in the quality of our production techniques.

➢

Commitment to preservation of the ecological balance through a judicious use Of natural resources.

➢

Enhancement of the competencies of our human assets.

 The Quality speaks for itself: They are the first “Rayon Plant” in India to be accredited with, “ISO – 9002 Certification.” They are even the first “Rayon Plant” worldwide to get the “ISO 14001 Certification.”

They are the only “Rayon Company” to have won the prestigious “Synthetic Rayon Textile Export Rayon Promotion Council (SRTEPC)” award four years in a row since 1995. This be speaks the stress we lay on internal quality controls. Their standards of inspection are most stringent.

The Quality Assurance System ensures Consistency in ➢ Whiteness

➢ Brightness ➢ Denier

➢ Number of filaments

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➢ Colour

➢ Cone weight

PRODUCTION PLANNING AND CONTROL SYSTEM :



Total production management (TPM) : Maintenance is the key to zero loss, zero breakdowns, zero accidents, and zero

defects. It is in short a Zero-sum philosophy. This concept was put forward by the Japanese Management expert Seiichi Nakajima in his gospel “Introduction to total production Management” in 1984 Yamaguchi works at the Japanese institute of plant management (JIPM). This is a temple of total productive Management (TPM). Yamaguchi is teaching TPM to Indian companies.

IR follows eight pillars of total production management (TPM), which is following. (1) Autonomous Maintenance (Jishu Horizon). (2) Focused Improvement (Kaizen). (3) Planned Maintenance. (4) Quality Maintenance. (5) Education & Training. (6) Mass Production design & initial flow control. (7) Office Improvement. (8) Safety hygiene and environment control.

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WORLD CLASS MANUFACTURING : The economy is integrated to the global economy and industry is facing global competition. It is therefore, necessary to improve performance so IR & IL co. adopt WCM model to improve performance and fitting with global competition. The following characteristics of WCM are used to fulfill the customer expectations. (1) Products of high quality. (2) Products at the right price. (3) Product with the enhanced features. (4) Product in a wide variety. (5) Products delivered in time, in fact short time. (6) Products delivered with shorter lead times. (7) Flexibility in fulfilling the demand for the product.

The above listed performance measures are external to the manufacturing system but are vital for the success of the organization. IR & IL Co. follows WCM excellence model for competitive advantage as we seen in above diagram.

WCM POLICY followed by IR: → To maximize equipment effectiveness

→ Competitive and preferred choice of customers. Achieve zero breakdowns, zero defects, and zero accident and eco-friendly environment through innovative methods with total involvement of our employees and b continuous up gradation of technology. This will lead us to excellence and perfection in all spheres of management, to be globally.

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PERSONAL DEPARTMENT :

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INDEX PERSONAL DEPARTMENT:

Sr. no.

Particular

Page. no.

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

Introduction Organization Structure Manpower Planning Recruitment Selection Training & Development Promotion & Transfer Performance Appraisal Job Description Wages & Salary Trade Union Employees Benefit & Service Time Keeping System Working of ESI System

53 54 56 58 59 60 61 62 63 64 66 67 68

INTRODUCTION :

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“Management is the development of people and not the direction of the things……management and personnel administration are one and the same. They should never be separated.” Lawrence A. Management is the most important resources among all the resources. How many funds you have, how many machines you have, how many technological advancement you have, nothing will work if you don’t have sufficient manpower. So man is most important resource, so a medium is required to manage this resource. So there is personnel department.

With reference to INDIAN RAYON & INDUSTRIES LTD., there is personnel department divided into two parts is HRD & TRAINING and the other is PERSONNEL DEPARTMENT. In which the responsibility is also divided:



HRD & TRAINING:

➢ It deals with staff in the organization & accountable to vice president.



PERSONAL DEPARTMENT:

➢ It mainly deals with labor force from their recruitment to the all officer connect labor & workers as consulting agent.

ORGANIZATION STRUCTURE OF PERSONNEL DEPARTMENT:

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MANPOWER PLANNING : Manpower is the key economic resources which should demand the same attention from the company that it gives to planning at finance, equipments, raw materials, production, sales and profits. A manpower planner functions should be:

➢

The interpret production & sales forecast in terms of manpower requirements.

➢

To indicate the manpower constraints on company policy for the future.

Manpower planning is the process of assigning the right number of people right kind of people at the right time doing work for which they are economically most useful.

 Importance of manpower planning:

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In Any organization manpower has its importance due to following reasons.

✔ The executive sources of knowledge for an organization & people. ✔ Industrial knowledge is the starting point of organization knowledge. ✔ The knowledge of each individual can’t be replicated. ✔ Only people can spread knowledge resources across the company. ✔ It is only people who can convert knowledge into efficient action.

 Manpower planning for workers: All the departments need additional requirement of manpower to contact the personnel department, which makes the arrangement for the required manpower. Every month the personnel department issues personnel reutilization from the all departments and this forecasts its manpower demands of each department accordingly the requirements are made. The worker is divided into three categories:

✔ Permanent ✔ Badly ✔ Temporary The badly worker is the substitute for the permanent worker in the absence of the permanent worker.

The temporary worker is employed for a limited period for a temporary work. The causal worker is employed for an occasional work. The present split up to workers & staff IR is given below: 1 2 3

Permanent workers Badly workers Temporary workers

2300 410 …..

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4 5 6 7

Casual workers Apprentices workers Trainees workers Staff workers

….. 25 ….. 505

RECRUITMENT & SELECTION :  Recruitment: Once a determination of human resource recruitment has been made, the recruitment and selection process can being. Recruitment is the process to dissolve the sources of manpower to meet the recruitment of staff in schedule and to employee effective measure for attracting that manpower in adequate number. Recruitment means to seeking or obtaining recruits to replacing or to fill up deficiencies. It refers to the entire process and set up activities involved in bringing together prospective employees.

➢

Recruitment process: Recruitment process for blue collar worker is called traditional method. These are stages of recruitment process for blue collar workers. They are as follows:

✔ Within organization. i.e. permanent workers. ✔ Badly or temporary workers.

✔ Trainees. ✔ Apprentices. ✔ Casual applicant. ✔ Employee recommendation of trade union. ✔ Labor contractors. If any worker remains absent or leave the job and it become possible to transfer any other worker in the vacancy.

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If any worker dies than as per vacancy available to his son is given to “sons of the souls” is recruitment of labor.

 Selection: Selection is the process to choose or picking up the suitable candidate by rejecting or excluding unsuitable.

Selection is also negative process. In selection some employees are selected for particular job but many employees are rejected. For the workers, it is made by supervision and labor welfare officers. At the time of selection physical fitness, past experience, honesty, etc. are given importance.

For technical staff and administrative persons, Indian Rayon & Industries Ltd. Arranges a written test and it is followed by personal interview. The performance of candidate in both written test and oral test is given base for selection. The selected employees are taken on the period of six month or twelve month. All the employees, if found suitable during the period are chosen during the final selection and gets permanent job. For white collar job, the company adopts the following stages for selecting prospective candidates.

✔ Reception of application. ✔ Preliminary interview. ✔ Application blank. ✔ Psychological test. ✔ Interview ✔ Reference checking ✔ Medical examination ✔ Final selection

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TRAINING & DEVELOPMENT

:

“Training is an important aspect of personnel which increases the knowledge and skill of a worker for doing a specific job.” C.B.MEMORI

 Training for the workers: The HRD Department prepares schedule for the workers in need of training to develop a job. A company’s main purpose is to give knowledge about new technology and confirm the main purpose of giving training is: Improving skill & knowledge of workers towards qualities of

✔

Product. ✔

To give the technical knowledge and safety measure training.

✔

Discipline, good conduct and job responsibility.

✔

Operating the working programs.

 Training for the officers: Training is important for success of every business. It depends on manager’s intelligence and skill and company has to give training to the officers, so they can match with new technology. So company has to send officers into conference, seminars, national & international conference from which company can take benefit in proper time. So officers need training for these benefits.

 Training for the supervisors: Supervisor plays a very vital role in organization and supervisor is also important for industrial piece. So supervisor should be trained for their work by increasing workers efficiency. Supervisor can increase production. So by this way, company could reach to the goal by help of supervisor.IR gives good training to the supervisors are trained under the guidance of the chief executive of the company.

PROMOTION & TRANSFER :

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➢ Promotion: Promotion means increase in authority, responsibility, status, salary, etc. it means to do up liftmen of an employee within the organization and push in the direction of top level.

The promotion policy of IR is based on seniority and merit consideration and stressing more emphasis on his seniority.

Employees are promoted considering his

ability to deal with problems of people, subordinates, etc.

Employees are promoted within the organization in case of vacancies or new post creation. In case of promotion of unskilled and semiskilled worker is same as administration department through seniority and merit basis.

➢ Transfer: Transfer means change in work place or department. The authority, responsibility may be more or less or remain constant in transfer.

Transfer is a shift causing movement of individuals from one position to another without change in duties. IR constitutes or various units located at different places within the country. Yet inter unit transfer practice is not followed by IR.

PERFORMANCE APPRAISAL :

➢ Motivation:

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“The emphasis industrial psychology has shifted from the studies of the isolated individual and physical environment to the consideration of motivation & morale.” - I.A.C. BROWE IR motivates staff by performance appraisal. Every staff member recognizes his work and he always tries to do better work & effective work if his work is recognized.

IR motivates staff by performance appraisal. For e.g. their regular work, honesty can also such things are being kept in mind.

➢ Quality circle: Quality circle is a group of workman working voluntarily for improvement of their total quality of work. The basic objective is to help workman in developing themselves. There are 36 quality circle in IR.

JOB DISCRIPTION : The first & immediate product of job analysis process is the job description. It is an important document which is basically descriptive in nature & constitutes a record of existing pertinent job facts.

In IR the matter of job description being confidential, we have not been given the more information about its uses, contents, written methods, etc.

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Just we have been said that training & HRD department prepares a file for each job for the same purpose. It includes:

➢ Title of job ➢ Nature of job ➢ Job summery ➢ Working condition ➢ Supervision given or received.

WAGE & SALARY : The basic purpose of wage & salary administration is to establish and maintain equitable section & is concerned with financial aspect.

In concern with operation of manpower administration, preparation of wage sheet is through the part of personnel department. It has fixed payment as per the time rates. This unit pays to workers as per department wise and between the 4th to 10th of every month.

The worker payment is comprises of basic pay + dearness allowances + overtime + medical + HRD. Medical allowances are given to all employees of the

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organization. Permanent workers are provided 10% and badli workers are provided 7.5% allowances.

Clerks are provided as per the terms and condition of the government from work.

In IR wages & salary is always paid through the bank to the worker and staff from the bank counter.

There are two systems by which wages are paid. They are: ➢ Time wage system ➢ Piece wage system

TRADE UNION : There are more than 4200 employees in organization and for sake of protection of their rights have formed their trade union. Presently, there are 3 trade unions:

➢ Indian Rayon employee union (IREU) ➢ Rayon mazdoor sangh (RMS) ➢ Indian Rayon karmachari (IRKM)

Only workers are not members of the trade union, staff employees has also get the membership of trade union from above employee union, its strength is 60% of total working force.

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Company has been keeping a good relation with trade union has a top position in organization.

EMPLOYEES BENEFITS & SERVICES : ➢ Uniform & other facility: IR provides uniform to its workers of the company. In this each employee gets a 10 meter cloth with stitching allowances in the very first month of the year. The company distributes sweater to its workers in the viscose department. The company pays Rs.200 to each employees of the company to purchase their shoes.

➢ Recreation & Entertainment facility: The company has its own big auditorium in which it arranges picture for entertainment of its employees. It charges cheap rates. It also provides many types of sports facility.

➢ Independence day celebration: The company celebrates the independence day every year. On this day the programmed of national flag hosting is followed by sweet distribution.

➢ Republic day: The company also celebrates the republic day with arranging many sports activities & other programs.

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➢ Death relief fund: In case of death of any employee while working in any company provides his family with Rs.4000 as general expenses and company also deducts Rs. 10 of all the employees of the company and collects about Rs. 5000 and provides to their family.

➢ Library: IR has a small but very useful library in company. It also gives the facility of internet to its employee and Mr. J. V. Dave very well runs it.

➢ Quarter facility: The IR is having quarter with 2 rooms, kitchen for administration and executive officer as a normal payment of Rs. 100. staff pays Rs.70. bachelor equipped with canteen, mess and common room.

➢ Credit co- operative society: Members are given loan facility up to an amount of Rs.20000 at a nominal interest. This is managed by co-operative society.

➢ School facility: Both science & commerce up to 12th std. affiliated with Gujarat board. Approximate number of students every year is 2000. 40-50% of the students are employees’ children.

➢ Medical facility: Company has its own dispensary in factory. Also in this dispensary workers are treated up on free of charge. Company has its own doctors for this dispensary.

➢ Milk & dairy facility:

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IR provides milk to the workers working in chemical & spinning department. The milk is purchased from Junagadh dairy.

Time keeping system : Time is precious and we cannot get the time once passed so it is not only the responsibility of an individual’s but only the responsibility of the industries to make best use of the time. The company has time keeping system.

➢ There are 3 shifts at Aditya Birla Nuvo Ltd. They are as under: Shift: (A) 7: 00 AM - 03: 00 PM (B) 3: 00 PM - 11: PM (C) 11:00 PM - 1: 30 PM

General shift 8: 30 AM - 5:30 PM Lunch break 12:30 PM - 1: 30 PM

\

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\ WORKING OF ESI SYSTEM : ESI means employee state insurance scheme. It is necessary in all then company according to 1948 act, an insurance facility provided to the workers. The deduction of salaries of worker is made every month by the company.

If any accident occurs on the job to the worker this reserved money is given him from the insurance. If any kind of illness is there this money is used by the company. The worker can get salary without work up to 2 months according to scheme.

But, ESI scheme is not applicable for this unit, instead of it (IRIL) has insured all of its employees under oriental insurance company and it has own dispensary.



Provident fund scheme : IR manages PF scheme for the employees who are receiving salary about

Rs. 1600 per month and remaining employees are covered carried on by the government rules framed.

An employee who becomes a member of PF scheme must be permanent employee. He has to contribute his 12% of salary towards PF every month out of this family pension fund, administration charge and PF is paid. In 12% PF scheme, there is 8.33% pension & 3.67% PF are include into the scheme. Every year the employees are handle the slip showing amount of PF. An employee also gets loan from PF in case of marriage, sickness, house loan etc.



Industrial relation :

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Industrial relation between labor and management better and harmonious industrial relation and option of any friction between the employers and employees results in industrial peace maintenance of improved industrial relation or peace in the industry is highly essential for all the countries.

It is useful for administration of company to have a good industrial relation. In this company, relation between labor and management is very good applicable. There was major strike in 1982 and 2000 after there is no strike.

SOCIAL RESPONSIBILITY:

The company is conscious of its social responsibilities and is carrying them very well.

Company performs its responsibility towards society by extensive rural development activities. The company has set up a separate trust for this purpose namely “Janseva trust”. This trust has launched rural uplifting activities in the rural areas near the Veraval city. This trust gives training to the farmers to use the modern inputs in farming. This trust also provides the assistance to these farmers to purchase those inputs. The programs of adult education, family planning, women welfare activities, mass tree plantation and assistance for self employment are also being taken by this trust regularly.

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MARKETING DEPARTMENT:

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INDEX MARKETING DEPARTMENT :

Sr. no

Particular

Page. No

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Introduction Organization Structure Product Customer Support Service VFY & Caustic Marketing VFY Marketing Analysis Caustic Marketing Analysis Centre Marketing Advantage Marketing mix Product Life Cycle Sales Promotion Market Segmentation Market Profile Advertising Channel Distribution

72 73 75 76 77 82 87 88 89 90 91 92 93 94 95

INTRODUCTION : Marketing is a process by which individuals and groups obtain what then need and want by creating and exchanging products and value with others. A market consists of all the potential customers sharing a particular need or want who might be willing & able to engage in exchange to satisfy the need or want.

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The concept of market brings us full circle to the concept of marketing. Marketing means working woth the markets to actualize potential exchanges for the purpose of exchanging human needs and wants.

“A market may considered as a convenient meeting place where buyers and sellers gaiter to gather of goods and services.”

The Indian Rayon, a unit of Adity Birla Nuvo Ltd. Has a very efficient and excellent marketing department, which tries to provide maximum satisfaction to the customers while having reasonable, profits on the other hand. Frame1

“CUSTOMER IS NOT GOD, CUSTOMER IS KING. GOD FORGIVES, KING DOESN’T”

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“ORGANIZATION STRUCTURE OF “MARKETING DEPARTMENT” DDEPARTDEPARTMENT”

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PRODUCT : The product is anything that can be offered to satisfy the need or want. Product is most important and tangible component of marketing program.

“Product planning determines the characteristics of the product best meeting the consumers’ numerous desires, characteristics that a stability, to products and incorporate this characteristics into the finished products.”

➢ Product planning involves three major important considerations:

✔ Introduction and development of products.

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✔ Modification of the existing Products. ✔ Elimination of unprofitable products.

Aditya Birla Nuvo Ltd. Create Product plan according to the requirement of the clients, market condition, cost of products and its rivals.

The theoretical consideration of product planning and development includes following aspects, which can be witnessed in Aditya Birla Nuvo Ltd.

 Product mix: Product Mix, also called as product assortment is the set of all product and items that a Co. offers for sale. A Co.’s product mix has certain Width, Length, Depth and Consistency. Aditya Birla Nuvo Ltd., along with the VFY it also manufactures some chemicals and by-products, which required for the production of yarns.

Main product from producer to end user :

Product

Market

End use

Customer

Discount/Incentives

Nature

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Basis

Indian Rayon

Quality Weavers Domestic Viscose

&

Filament

Inter-

Yarn

national

in discount,

organized

Embroidery,

Price

and discount, Dress Material, sector sold through Loyalty Saris dealers& Discount, agents Cash

Discount given

is for

lifting higher quantity, timely payment and over & above

discount

Row

material

for manufacturing soap, cleaning Caustic

Domestic

Soda

edible

oil,

dyeing,

Organized

as

Based

well

as Quality

order

Unorganized

discount

sector

aluminum sector,

Textile, etc...

CUSTOMER SUPPORT SERVICES: P Periodic Sustainable Building Partnership Effective OTIF &good Effective RImparting elre Distribution Customer Personal Relations Marketing communication practices ,of raodSatisfaction Rapport logistic WCM/TPM v Survey in u Network oti c d eiV dcin sg

booking

at

the

of

time

delivery VFY,

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on

tT u es sM tact ojh o on m m ero er rB – sM u

Indian Rayon

e yC VFY & CAUSTIC MARKEING : C eo trm o .sm The Indian Rayon . has three main plants out of which three Plants are: m ep 1.Rayon plant r l c2. Caustic Plant a i ia3.Power plant n l Produces Viscose filament yarn and chemicals respectively.

t The IR has two Marketing Departments and both have different marketing sub sS committees for Rayon products and Caustic products. u R p e p s IR has its main sales office at Mumbai, but at Veraval it has only dispatch op roffice from where they send product as per instruction of Mumbai Head office for o tSales. n s s e IR believes that satisfied customer is a result of chain of satisfied internal customer.. Subcommittee assured to implement systems that directly lead to higher

T ilevel of satisfaction of customers. Directly linking with vision strive to become a world class customer oriented organization with special focus on creating value for m ecustomers while increasing the revenue inflow on a sustainable basis. Achieve higher

level of customer satisfaction through institutionalization of systems. In this report,

–both the Plants’ Marketing information is included in two different segments. As: W ✔ iVFY (Viscose Filament Yarn) Marketing ✔ tCaustic marketing h i n 4 8 h r s

VFY MARKETING MARKETING ANALYSIS :

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The Sub Committee has a well-established market information system to provide input on the marketing environment to identify and encase the opportunity. The following statistics are prepared as market information system through market report.

➢ Global VFY Scenario

➢ Global VFY Demand & Supply ➢ Global Segments

➢ Domestic Segments ➢ Domestic Scenario

➢ Domestic Segment Analysis ➢ Export Scenario Objectives

:

➢ To have a highly delighted customer base. ➢ To develop committed, target oriented internal customer supplier relationships. ➢ To ensure cost effective, profitable marketing operations. ➢ To maximize realizations, through focus on direct sales and reduced logistics. ➢ To develop customer centered, profit oriented long term marketing strategies. ➢ To ensure transportation of goods in strict adherence of safety and environmental guidelines. ➢ To ensure timely Redressed of customer complaints / grievance.

Marketing strategies Creating responsive marketing structure :

➢ Proactive Customer visits and Technical support.

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➢ Proactive visits rather than complaint handling visits. ➢ Technical person to solve customer issues. ➢ Better Intelligence – Improving reliability of forecasts. ➢ Application and Business Development Team. –

New Application / Sampling Development

–

Sourcing Partners

–

Co-ordination with our customers

➢ Better Planning / System Support to Marketing Team.

➢ Marketing team more time in market

Understanding

customer requirement :

Customers voices are captured through customer meets, Systematic regular surveys, Customer feedback and through\market visit. Customer meets are conducted at various centers, one to one discussions are held to understand the customers requirements and expectations. Yearly Customer Satisfaction surveys are conducted to identify the customer need and gap analysis done to customer create delight. Special requirement of customers are implemented. Customer visits to plant are organized.

Customer satisfaction

Yearly

:

customer satisfaction surveys are conducted to understand the

expectationsof customers and also to assess our strengths and weaknesses vis-à-vis other Viscose Filament Yarn manufacturers .Surveys are carried out to cover all segments and regions. Feedback of the customers was taken for all the three functional categories viz. Pre sales, Sales and Post Sales. The feedbacks and outputs of the survey caressed for future improvement.

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The learning of the Customer Satisfaction surveys are shared with employees in the form of “Customer Satisfaction Survey Report”.

Customer complaints

:

The committee views seriously on the Customer Complaints. Prompt and appropriate redresses extended through its well-defined Complaint handling system. The customer complaints are registered at the depots through complaint form. Immediate redresses actions are taken through the trained technician’s visit to the customer. Actions taken and the status of the complaint are given to marketing office at Mumbai. Pending complaints are informed to Quality Control Dept. from where remedial actions are taken Complaint nature, remedial action taken and status are monitored and learning incorporated to eliminate origination of similar complaints in future.

Steps

to revive demand :

➢ Revival of Application Development Efforts on an Emergency basis by IR as well as in co – ordination with AMFI. ➢ Price and Quality stability to Embroidery segment. ✔ Short term- focus Mid End segment at Salem and Ulhasnagar

(till quality improves) Long term-Premium customers as quality improve. ➢ Premium Customers Acquisition in Georgette Segment (100 brat) ➢ To maintain lead in Bras so (120 Brat)

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➢ Improving volumes in super fine Diner 40-50-60 segment ➢ Revive Knitting segment at Tripura (150/300)



Delivery management & after sell services : There is a systematic coordination between the marketing and production dep’t. Customers need and requirements are communicated to the plant, where machine wise production planning is done and implemented. This way machines are run indirectly by the customers.

➢ Stock transferred to depots set in four zones ➢ The delivery to customers are controlled by the marketing ➢ The depots are interlinked and linked with Marketing officials at Mumbai. ➢ Customers complaints are addressed to give quick redresses.

MAJOR VFY DOMESTIC MANUFACTURERS &- INSTALLED DOMESTIC COMPETITORS VFY CAPACITY VS ACTUAL PRODUCTION DURING 08-09

COMPITITIVE POSITION VFY:

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rayonCetdiIRu 7%240165 NRCBKeshor29%4ma 8%37 32%

TheShare major competitor of Indian Rayon is the Century Rayon. Kesoram Rayon and Export Domestic market share

5% 16%

0%

National Rayon are other VFY market players. RAY ONE has 29 % share in Domestic Market, it has been striving to increase its export and captured 42 % of total VFY export from India with a growth status of 26.7 % in 2000 – 01 to 42 % in 2008 – 09.

24%

7%

29%

42%

Indian Rayon Century Keshoram NRC

37%

8%

BRC

32%

CAUSTICMARKETING : Aditya Birla Group’s worldwide position in caustic market:

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➢ Global Capacity 62 Million Ton /Annum ➢ Indian Capacity 2.3 Million Ton /Annum



IR marketing committee- objectives :

➢ Development of Marketing Strategies. ➢ Internal & External Customer Satisfaction ➢ Develop the organization to make it a customer oriented enterprise by focusing on internal customer supplier relationship. ➢ Strict adherence of safety and environment guidelines while dispatching goods to the customer. ➢ Customer services and Relationship Management ➢ Timely redressed of customer complaints.



Processes to Meet Marketing Objectives :

➢ Market Environment Analysis ➢ Customer Requirement need-gap analysis. ➢ Strategic Planning & Budgeting

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➢ Production-Delivery alignment. ➢ System Improvements ➢ Customer Support Services ➢ Customer Satisfaction Assessment ➢ Internal Customer-Supplier Relationship Assessment



Goal, targets & action plan : Believing the external customer satisfaction is outcome of internal customer satisfaction The subcommittee derives Goals and Targets in the form of result and control indicators respectively based on Unit's Business goal. During Planning & Budgeting exercise, goals and targets for the coming financial year and projections of the next 2 years are evaluated comparing with our own group units and for all the three units BCCL / IRIL / Grasim Chemical with market scenario in India and world. Targets are reviewed during P & B exercise.

➢ Also targets has been set for following areas. ✔ Targets for increasing market share in Saurashtra Zone. ✔ Targets set for enhancing direct sales. ✔ Product wise realizations and ECU realizations. ✔ Reducing working Capital Blocks –Credit days and Chlorine Toner rotation ✔ Targets set for internal customer satisfaction by QCDIP (Quality, Cost, Delivery & speed, innovations, Productivity).

 Action plans are as given below : Detailed time bound action plan is prepared in order to meet targets and systems developed for same. ➢ Market Environment Analysis.

➢ Customer Requirement need. ➢ Strategic Planning & Budgeting.

➢ Production-Delivery alignment.

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➢ Systems Improvements.

➢ Customer Support Services. ➢ Customer Satisfaction Assessment. ➢ Review Mechanism. ➢ Internal Customer-Supplier Relationship Assessment. ➢ Monthly review of QCDIP in L2 and L1 team meetings. ➢ Systems are institutionalized for measuring, monitoring. ➢ Market Intelligence System & Monthly MIS. ➢ Progress-reports on Action-plans. ➢ Comparative Performance analysis with group chemical units. ➢ Monthly Performance review meetings. ➢ Hired, outside research agency to conduct independent customer satisfaction

survey. ➢ targets.



Present Marketing setup in Caustic marketing : Aditya Birla Group has a central marketing setup between all the AB group’s

Companies which are manufacturing Chemical products. Each unit is look over specific area for the marketing, which are specified by the central committee.

There are six units of AB group in India which produce Caustic products, these are Veraval, Baroda, Nagda, Garhwali, Delhi & Hyderabad. These all the units have allotted regions in which it is situated and nearby area for the Sales & Marketing activities.

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Eastern Gujarat Saurashtra Southern Madhya Delhi,(Except India, Punjab, Pradesh, India & Eastern Haryana, Kutch Chhattisgarh, Kutch part & Jammu, & of Himachal NagpurSaurashtra), UP Western from Chandrapur Pradesh, Western Maharashtra Area Rajasthan Kanpur & Southern UP, & onwards Eastern Rajasthan Rajasthan Nepal and Bangladesh

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CENTRAL MARKETING ADVANTAGE : 

Cost cutting : ➢Improved Logistics ➢Reduction of Man Power ➢Effective utilizationof resources (ERP)

➢Reduction of selling, ADM. & other expenses.



Explore new market segments & penetrate existing market for higher realization:



➢

Stronger Distribution Network.

➢

Withdrawal from lesser realization zones.

➢

Thrust on Direct Sales.

Higher capacity utilization. ➢

Optimum use of resources

➢

Assured supplies – Higher retention of customers -

Improved sales

volume. ➢

Avoid internal competition.

➢

Concerted and coordinated efforts in chosen segments / territories

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MARKETING MIX : Marketing mix is the set of marketing tools that firm uses to pursue its marketing objectives in the target market.

It consists of everything the firm can o to influence the demand for its products. The many possibilities can be collected into 4 groups of variables known as the four Ps i.e.

Product

price

place

promotion

PLACE Channels Coverage Assortments Locations Inventory Transport PRODUCT Product Variety Quality Design Features

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Brand Name Packaging Sizes

PROMOTION Sales promotion Advertising Sales force Public elation Direct marketing

PRICE List Price Discounts Allowance Payment period Credit terms

PRODUCT LIFE CYCLE :

A company’s positioning and differentiation strategy must change as the product, Market and competitors change over time.

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INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) is passing from maturity sate. Hence, this company can make changes in its products and technology by adopting new machines like horizontal spinning machine and pot spinning yarn process.

Because of the technology adaptation, absorption and innovation the benefits derive by the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) are:

➢ Quality improvement in existing range. ➢ Development of new market segment. ➢ Improvement in process, cost control and productivity. ➢ Improvement energy efficiency. ➢ Reduction in import material consumption.

SALES PROMOTION : Companies use sales – promotion tools to create a stronger and quicker response. There is a separate organization, which jointly made efforts for sales promotion and this organization is followed by INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) This organization is known as “The silk and Rayon Textile Export Promotion Council.”

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The head office of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd.) does all the activities of the sales promotion. It promotes its sales via dealers i.e. the product is sale thought middle man.



Following tools have been use in this method:

➢ Buying allowance discount ➢ Display allowance ➢ Dealers contest ➢ Concession on the net sales 25 ➢ Free gift

MARKET SEGMENTATION : “Market Segmentation consists of taking this total market for the product and dividing it into several sub-marketer segments each of which tens to be homogenous in all the significant aspect.” The company identifies different ways to segment the market and develops the profiles of the resulting market segments. There are two approaches regarding market segmentation: ➢ People oriented approach ➢ Product oriented approach

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INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) uses ‘people oriented approach’ method for market segmentation. They classify their consumer on the basis of place, income, geographical location, etc.

The branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) are located at Ahmadabad, Delhi, Mumbai, Amritsar, Surat, Bangalore, and Madras. Its head office is situating at Mumbai which takes all the decisions regarding the company’s products.

There are different manufacturing companies that consumes and demand for the specific type of yarn of very fine quality. The demand for yarn differs from company to company on the basis of their handloom production. So, this company has segmented. The total market on the basis of product application consumer industry wise. The INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) marketing office is at Mumbai. The company has various type of segments. They are selling its product in India as well as exporting in many countries.

Market profile of organization in India:

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➢

Branch abroad: Korea, Italy, Africa, Saudi Arabia, Bangladesh.

ADVERTISING MANAGEMENT : “Any paid form of non-personal communication of ideas, goods or services by business firm identified in the advertising message intend to lea to sale immediately or eventually.” --American Marketing Association  Advertising is basically used for: ✔

Creating or enhancing goodwill

✔

Preparing ground for new product

✔

Creation of demand

✔

Facing the competition

INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) is very sound company producing industrial product. Major factories producing rayon yarn in India are under one management i.e. The Birla group. The Aditya Birla Group has covered near about 75% of the yarn market. Thus there is no question of advertising.

Rayon Yarn is use as a raw material in textiles industries that are not affected by any media of advertisement and that is the reason why the company is not advertising its product.

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The company publishes magazines, which depicts various facts and figures of companies manufacturing process, EXIM policy, pricing policy, strategies, etc. I short; the companies adopt the direct advertising method.

CHANNEL OF DISTRIBUTION : “The middleman is not a hire link in a chain forgets by a manufacturer, but rather and independent market, the focus of a group of customers for whom he buys.” INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) has adopted its own sales branches and sales offices in context of its channel distribution. The company has selected the distribution channel keeping in view the demand of the customer and the current market trend. In INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) the main product is rayon yarn so, this unit utilize zero level (Direct selling) and one level of channel of distribution. They are conduction the sales activity with the help of their own sales depots and agent’s dealers, sub dealers etc. indifferent cities and different states. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) sales marketing office is at Mumbai which performs the functions of selling the product of the company. The marketing office collects all the orders from the twelve different sales branches. All the sales branches of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) maintains the facilities like storage, after sales service etc. INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd) also produced chemical along with the yarn like sodium sulphate, sulphuric acid and carbon-disulphide are distributed though dealers and selling agent.

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FINANCE DEPARTMENT :

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INDEX FINANCE DEPARTMENT :

Sr. no 1.

Particular Introduction

Page. No 98

2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Organization Structure Revenue & PBIT Chart Production & Sales Chart Capital Structure Capitalization Leverage Capital Budget Working Capital Management Inventory Management Receivable Management Credit Standers Cash Management Dividend Distribution Profitability Ratio

101 102 103 104 107 109 110 116 117 118 119 120 121 122

INTRODUCTION: Financial management is the managerial activity which is concerned with the planning and controlling of the firms of the financial resources.

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Finance management is concern with the efficient use of an important economic resource, namely capital fund. - Solo man

Money is the lifeblood of modern business. Money is required to purchase expensive on raw materials, labor and operational and administrative need of business. A human body with bones, flesh, skin, and different organs but without blood is of no use; similarly an organization or an industry win without finance is also useless.

In simple words, financial management is concerned with the financial problems of the organization.

In Indian ray one Industry is a separate financial department where in all financial decision is taken by the experts, Indian ray one believes in maximum profit at least cost but the finances in such a way that the goal of business say, profit maximization is realized.

 Financial management can be defined as: The management of the finance of a business/organization in order to achieve financial objective. Taking a commercial business as the most common organizational structure, the key objectives of financial management would be to: ➢ To produce wealth for the business. ➢ To generate cash.

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➢ To supply adequate return on investment. ➢ To protect business from risk and uncertainty.

There are three key elements to the process of financial management: 1. Financial planning: Management to need to ensure that enough funding is available at the right time to meet the need of the business. In the sort term, funding may be needed to invest in equipment and stock, pay employees a fund sales made on credit.In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions.

2. Financial control: Financial control is a critically important activity to the help the business ensures that the business is meeting its objectives.

.3. Financial decision- making : A key financing decision is weather profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profit further.

 There are three major decisions : (1) Investment decision. Investment decision related to the selection of assets in which funds will be invested by the firm. The assets that can be acquired fall in two category (I) Long term assets, which yield return over period of time in future (II) Short term assets, which are convertible into cash within a year. This includes,

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(1) Capital budgeting (2) Working capital Management.

(2) Finance decision. Finance decision is generally concerned with financing mix or capital structure or leverage. It is generally a decision made on the composition of capital with reference to equity share and debt.

(3) Dividend decision. Dividend decision is generally related to distribution of dividend. Two alternatives are available in dealing with the profits of a firm. They can be distributed to the share holders as dividend as they can be retained in business itself. The decision as to which course should be followed depends largely on a significant element in dividend decision i.e. decide the dividend payout ratio (D/P ratio).

ORGANIZ ATION STRUCTURE

Board of director

Executive president

President & CFO

(Rayon Division)

Corporate finance

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Sr. Vice President (Finance & comm.)

G.M. Finance

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O f f i c e r

Assistant Assistant Sr. Manager Manager Manager Creditor Salary Cash

Officer

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PERFORMANCE OF IR CO. FOR THE YEAR 2008-09 SOURCE OF TOTAL REVENUE (RS. 9918.71CR.) PBIT:Source: Annual Report of 2008-09

PRODUCTION: Source: As per the Information Given by Production Manager

Source: Information Given by HRD

CAPITAL STRUCTURE : Capital structure may be defined as the combination of debt and equity that lead to the maximum value of the firm.

“Capital structure refers to the mix of long-term sources of funds such as debenture, long-term debit, preference share capital and equity share capital including reserve & surplus. The company should planed and get optimum capital structure.”

PARTICULER

(RS. IN CRORES) 2008-09

Share Capital Reserves & Surplus

95.00 5396.50

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2007-08 95.00 3510.50

Indian Rayon

Secured Loans Unsecured Loans Preference share capital

5033.10 3860.90 25.50

4463.50 2184.40 50.00

Source: Annual Report 2008-09

Share Capital of the INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd). Has same as compare to previous year. Company has also increase reserves & surplus, secured loans, unsecured loans respectively, 53.72%, 12.76%, and 76.74% as compare to the previous year. Company has paid to the preference share capital decrese51% in this year.

CAPITALIZATION : From accounting point of view “capitalization means accumulated funds which have been invested for same business purpose to earn quite of return”

For the Co the Book value and Real value of Share are two main components or assessment of Co.’ financial position which can be calculated as per under.

YEAR 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01

EPS

(RS. IN CRORES) 14.5 26.1 25.6 24.5 18.3 21.1 17.0 7.0 11.0

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Source: Annual Report 2008-09



Book value per share is Rs. 578.05 Book value:-

Equity share Capital + reserves & surplus No. of Equity Shares (%)

=

95.00 + 5396.50 9.5 =

578.05 Rs.

There are three conditions of the company in term of the capitalization are as follows.



Fair capitalization : ➢

It is received when earning of the unit is same to the capital employed. Earning = Capital Employed.

➢

And book value of a safe is also equal to the real assets. Book Value = Real value

 Under capitalization : ➢

It is found when earning is more than capital employed. EARNING > CAPITAL EMPLOYED.

➢

In this case book values of assets of the firm are less then the real value.

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BOOK VALUE < REAL VALUE

 Over capitalization: ➢

It is found when earning is less then the capital employed.

EARNING < CAPITAL EMPLOYED.

➢

In this case book value of the assets of the firm are more then the real value.

BOOK VALUE > REAL VALUE

The closing market price of the Co. per share is Rs 425.55 as on march-09 which is greater than its book value per share.

From this we can say that co. is facing under capitalization. The above graph depicts that the Co’s earning per share has increased by 12.83% as compared to its previous year.

➢

The reason for the increase in the value of Co. Is Increase in sales and profit. Increase in price of yarn.

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LEVERAGE: The employment of and asset or source of funds for which the firm has to pay a fixed cost or fixed return is termed as Leverage. There are two types of leverages: •

Operating Leverage

•

Financial Leverage.

➢ Financial leverage: The leverage associated with financial activities is called Financial Leverage. It represents the relationship between the firms’ earnings before interest and taxes and the earning available for ordinary shareholders.

It is defined as “the ability of firm to use fixed financial charges to magnify the effects of change in EBIT on EPS.” Aditya Birla Nuvo Ltd. has posted a superior financial performance during the year 2008-09. The revenue has grown to 4786.18 Corers against 3953.06 Cores in the previous year.

Financial Leverage =

EBIT EBT

=

408.26 162.30

=

2.52 %

➢ Operating leverage:

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The leverage associated with the investment (asset acquisition) activities is referred to as Operating Leverage. It is determined by the relationship between the firm’s sales revenue and its earnings before interest and tax (EBIT).

Operating leverage results from the existence of fixed operating expenses in the firm’s income stream.

With fixed cost the percentage change in profit

accompanying a change in volume is greater than percentage change in fixed asset.

CAPITAL BUDGETING: The system of Capital Budgeting is employee to evaluate expenditure decision, which involve current outlays but are likely to product benefits over a period of time longer than one year.

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These benefits may be either in the form of increased revenue or decreased cost.



There is various method of Capital Budgeting:

➢ Internal rate of return ➢ Average rate of return ➢ Profitability index ➢ Payback period ➢ Net present value

Aditya Birla Nuvo Ltd. undertakes Capital Budgeting every year with the help of financial experts of financial dept on basis of payback period method.

The Co. always aims at increasing and expanding the installed capacity of Rayon Yarn production. It constantly tries for its success. At present the installed capacity of plant is 16000 tons/ annum. At present the main objective of Company is replacement and modernization of machine and fixed assets and business expansion by adding new machineries and technology. The unit base takes this decision on payback period.

WORKING CAPITAL MANAGEMENT:

Working Capital is concerned with management of current asset. It is and important and integral part of financial management as short-term survival is prerequisite for long-term success.

The divisional management of INDIAN RAY ONE (A Unit of Aditya Birla Nuvo Ltd.) manages the working capital within the broad framework laid by and with

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consultation of Corporation Finance Division (CFD).

Decision regarding the

utilization of the current assets is made in accordance with the policy of company.

The operating cycle can be said to be at eh heart of the need for working capital.

 Need of working capital: The ray one industries are manufacturing concern it needs a large amount of fund for smoothing day-to-day operation. This working capital can be classified in terms of cash, inventory, loans & advances and debtors or it can be said a current assets of the organization. This is very significant part of the total asset. The current assets of the year 2006-2007 are given below.

Current assets: Financial year 2008-09 (Rs. crore) Current Assets

Amount

% of

Inventories

834.80

14.8

Debtors

1343.60

23.82

Cash and Bank balance

1534.40

27.21

Interest

19.60

o.35

1907.70

33.82

accrued

on

Investments Loan and advances

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Gross Working Capital

5640.10

100.00

 Focusing on liquidity management: Suggests the extent to which working capital needs may be financed by permanent sources of funds. Current assets should be sufficiently in excess of current liability to constitute a margin or buffer for maturing obligation within the ordinary operating cycle of a business.

In order to protect their interest, short-term creditors always like a company to maintain current assets at a higher level than current liabilities. However, the quality of current assets should be considered in determining the level of current assets vis-à-vis current liabilities.

A weak liquidity position poses of threat to solvency of the company and makes it unsafe and unsound. A negative working capital means a negative liquidity, and may prove to be harmful for the company. Excessive liquidity is also bad. It may be due to mismanagement of current assets. Therefore, prompt and timely action should be taken by management to improve and current the imbalance in the liquidity position of the firm.

Net working capital concept also covers the question of judicious mix of long-term and short-term funds for financing current assets. For every firm, there is a minimum amount of net working capital, which is permanent. Therefore, a portion of the working capital.



Determinant of working capital:

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The credit policy of the firm affects working capital by influencing the level of book debts. The credit terms to be granted to customers may depend upon norms of the industry to which the firm belongs. But a firm has the flexibility of shaping its credit policy within the constraint of industry norms and practices. The firm should be discretionary in granting credit terms to its customers. Depending upon the individual case, different terms may be given to different customers, will be detrimental to the firm and will create a problem of collecting funds later on. The firm should be prompt in making collections. A high collection period will mean tie – up of funds in book debts. Slack collection procedures can increase the chance of bad debts.

In order to ensure the unnecessary funds are tied up in book debts, the firm should follow a rationalized credit policy based on the credit standing of customers and other relevant factors. The firm should evaluate the credit standing of new customers and periodically reviews credit – worthiness’ of the existing customers. The case of delayed payment should be thoroughly investigated.

 Why Ray one Division Grants Credit? ➢ Competition: Ray one division has to face the competition from companies like Mumbai based Century Ray one, National Ray one, Kesoram Ray one. So it grants a nominal credit period of 3 days.

➢ Company’s brand image: The ray one division is a part of Aditya Birla Group. So it carries a huge brand image and its position in the market is that of market follower. So it has higher bargaining power vice versa. So it allow a very short period of credit.

➢ Marketing tool: To beat the competitors and to attract the potential customers, Ray one division offers nominal credit period as marketing tool

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. ➢

Transit delay: Indian Ray one division has the market throughout the country so it takes time for the goods to reach from one place to another. So transit delay is one of factor for which the company has to allow the credit period as the days of grace. Days of grace vary from place to place depending upon the distance.

➢ Industrial practice: Ray one division is the industrial commodity seller the output of which is the input of other industry. So it sell the product it has to allow the credit period to these buyers.

➢ Buyer requirement: In some cases the buyers having the good payment track record are no interested to operate without credit period.

Issue in working capital management: Working capital refers to the administration of all components of working capital – cash, marketable securities, debtors (receivable (Ugarit)) and stock (inventories) and creditors (payables). The financial must determine levels and composition of current assets. They must see that right sources are tapped to finance current assets and that current liabilities are paid in time.

There are many aspects of working capital management, which make it an important function of the financial manager.

➢

Time: -Working capital management requires much of the financial manager time.

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Indian Rayon

➢

Investment: -Working capital represents a large portion of the total investment in assets

➢

Criticality: - Working capital management has great significance for all firms but it is very critical for small firms.

➢

Growth: - The need for working capital is directly related to the firm’s growth.

Empirical observation show that the financial managers have to spend much of their time to the daily internal operations, relating to current assets and current liabilities of the firms. As the largest portion of the financial manager’s valuable time devoted to working capital problems, it is necessary to manage working capital in the best possible way to get the maximum benefit.

 Concept of working capital :

(1)

Gross working capital : It refers to the firm’s investment in current assets. Current assets are the assets

which can be converted into cash within an accounting year or operating cycle.

(2) Net working capital :

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Indian Rayon

It refers to the difference between current assets and current liabilities. Positive new working capitals arise when current assets exceed current liabilities. It is negative in case of current liabilities are in excess of current assets.



Working capital management consists of three main aspects : (1) Inventory Management. (2) Receivable Management. (1) Cash Management.

INVENTORY MANAGEMENT : “Inventory refers to the stockpile of the products a firm is offering for sale and the components that make up the product.”

The IR Co.is the manufacturing organization, so being manufacturing organization it needs a large among of the inventories for the smoothing of business operation. The Co. invests nearly 48 to 50 percent of total current assets in the inventories. In the IR Co.the inventory is maintain by finding the actual requirement and the analyzing material, which is scared or not easily meet at the proper time. Then after the Co. decides the optimum level for each inventory based on the requirement. But because Co. has a good image to the supplier, it maintains the three days stock inventories for most of the goods even though the industry standard is seven days. In IR Co.there is a special storage dept. and separate inventory management force which perform certain functions for efficient management of inventories in the company. It maintains sufficient stock of raw materials in period of short supply and anticipates price change. It helps sales dept. by maintaining sufficient finished goods inventories for smooth sales operation.

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Indian Rayon

Inventory Turnover Ratio

=

Net Sales Inventory

=

14200.44 834.80

=

17.01 times

Cost of inventory is compared on a weighted average or FIFO basis.

RECEIVABLE MANAGEMENT: The management of receivable is basically concerned with the old customers and wining the new ones by collecting a regulating the cost management of receivables also known as trade receivables or customers or debtors receivables.

It means when firm make ordinary sales on credit and payment has not been received yet. Such management of receivables Aditya Birla Nuvo Ltd. grants the credit term to its customers for 15 days. However, in exceptional cases it is increased to certain extent. The purchaser sends bank drafts on expiry of credit period.



The receivables arise out of three features: ➢ It involves an element of risk, which should be carefully analyzes.

➢ It is based on economic value. ➢ It implies future management of receivable. Management of receivables concerned with retaining the old customers and wining new by controlling and regulating the costs. Aditya Birla Nuvo Ltd. grants the credit form to its customers for 15 days.

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Indian Rayon

CREDIT STANDARDS: As per the industrial standard for rayon, the organization runs well on the track of Average collection period. But because of the core competition in the chemical market the avg. collection period increased and reach near to the 25 to 30 days, so it can conclude that organization investment in receivables is not very high. The customers are paying its obligation to the organization in time. The default rate is nearly zero in the organization. CREDIT TERM VFY = 15 days Chemical = 45 days The collection of the fund is done by HDFC Bank, which plays and agent role. The avg. collection period for the account receivables between 21 to 27 days.

Total debt of company as on 31st March, 2005 is 260.90 corers which have increased as compare to that of the last year’s debt. i.e. 31stMarch, 2004 was 186.14 crores. So, it can be said that debtors are up by Rs. 74.72 cores. Major addition was on account of insulator domestic marketing. As a result of the above mention, there is an increase in the Net Sales of the company by 9% as compare to that of last year’s sales.

Receivables Turnover Ratio =

Net Sales S. Debtors

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Indian Rayon

=

14200.44 1343.60

=

10.57

CASH MANAGEMENT: 

Generally any organization holds the cash for ; ➢ Transaction motive. ➢ Precaution motive. ➢ Speculative motive. ➢ Compensating motive. INDIAN RAY ONE holdsthe cash only for the transaction motive. It holds the

cash for smoothing the day-to-day operation only. If there is surplus of cash in the Co., it is transferred to the CFD while if there is deficit of the cash in the organization, it borrows it from the CFD and also decision regarding the investment of cash in to Marketable Security is done through the CFD only.



Cash collection; INDIAN RAY ONE operating in variousgeographical area of the country. It tries to

speed up the cash collection by decentralization with the help of ten ash collection centers all over the India.



Cash Disbursements; The disbursement is one through centralized system by the organization. The payment of the bill will be made from the central account (at division place) and form the head office. So the Co. can enjoy the transit time delay using the factoring. 

Optimum Cash Balance;

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Indian Rayon

INDIAN RAY ONE keeps a maximum level of cash balance worth and average

payment for three days. If cash is more than its maximum level than the cash if transferred to the CFD and if cash is less than the level than the requirement of the cash is borrowed from the CFD.

DIVIDEND DISTRIBUTION : Dividend refers to that portion of a firm’s Net Earnings which are paid out to the Shareholders. A major decision of financial management is the dividend decision in the sense that the firm has to choose between distributing the profits to the shareholders and plugging them back into the business.

In IR Co. the board proposed the dividend of Rs. 4.00 per share for the year 2005-06. It is same as compared to previous year. Dividend payout ratio on of 200506 is increase 3.44% as compared to previous year.

Source: FINANCIAL YEAR 2008-09

PROFITABILITY RATIO : The profitability ratios are calculated to measure the operation efficiency of the company. Besides Management of the company, creditors and owners are interested in the profitability of the firm creditors want to get interest and payment of principal regularly. Owners want to get a required rate of return on their investment. This is possible when company earn enough profit.

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Indian Rayon

Generally two major types of profitability ratios are:



(1) Profitability in relation to sales. (2) Profitability in relation to investment. (1) ROI (Return on Investment)

EBIT ROI=

* 100 Capital Employed Financial year 2008-09 (Rs. corer)

YEAR 2008-09 2007-08

EBIT

CAPITAL

RATIO (%)

408.26 510.15

EMPLOYED 8521.46 6686.16

4.79 7.63

(2) ROE (Return on Equity)

EBIT ROE =

* 100 Equity Funds Financial year 2008-09 (Rs. crore)

YEAR

EBIT

EQUITY FUNDS

RATIO (%)

2008-09 2007-08

408.26 510.15

4121.70 4023.70

9.91 12.68

➢

Net Profit Ratio :

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Indian Rayon

PBT NPR

=

* 100 NET SALES Financial year 2008-09 (Rs. crore)

YEAR 2008-09 2007-08

PBT 162.30 314.56

NET SALES 14200.44 11249.60

RATIO (IN % ) 1.14 2.80

➢ CURRENT RATIO : CURRENT ASSETS CURRENT RATIO

= CURRENT LIABILITIES

Financial year 2008-09 (Rs. crore) YEAR 2008-09 2007-08

C.A 5640.10 3050.30

C.L. 3050.30 2442.90

Tolani Institute of Management Studies

RATIO 1.85 1.25

Indian Rayon

AWARDS & ACHIEVEMENTS: Awards:

➢ Rayon division has begged “ Gold Trophy” for highest export from synthetic and Rayon Textile Export Promotion Council. ➢ The “ Certificate of merit – 2003 “ of national energy Conservation of VFY. ➢ “First Prize” of National Energy Conservation Award -2003 for chlor – Alkali sector both from ministry of power , New Delhi. ➢ The prestigious “ Genentech Environment Excellence Silver Award 2002-03”. ➢ In chlor-Alkali sector for outstanding achievement in the field of environment

from Genentech foundation, New Delhi. ➢ The Gujarat safety Council has conferred upon the “Certificate of Honor

2002” upon the division base on its safety record and performance. ➢ The caustic division has achieved the Genentech award in 2004.

Achievements: ➢ The prime minister, Dr. Man Mohan Singh conferred the national energy conservation award on Indian Rayon.

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Indian Rayon

➢ Mr. S. P. Singh had the privilege of receiving the award on behalf of Rayon Division, Veraval.

FUTURE PLAN OF ACTION: ➢ Development of spatiality yarn. ➢ Eco and energy auditing. ➢ Improvement in intrinsic quality of yarn. ➢ Developing new shades of spun ye yarn.

➢ Development in the quality of existing range.

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Indian Rayon

RECOMMENDATIONS: The process of improvement is an unending journey. World class performance is a moving target that requires constant attention and efforts.

Tolani Institute of Management Studies

Indian Rayon

The management of INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) is well organized and has established INDIAN RAYON (A Unit of Aditya Birla Nuvo Ltd ) as a quality based, High speed, High performance, cost effective organization.

The co. is having an excellent management –worker relationship with transparent and adaptive management approach.

This experience from my organization study it can be said that the co. is constantly hardworking for the improvement of its product quality through the adoption of world class manufacturing policy.

Thus it is a truly highly bench marked company. It does not require any recommendation. Only one thing the co. should pay more attention towards its human assets and technology.

CONCLUSION: After going through the five days training program, functioning of the organization which I observed fro that it can be concluded that Indian Rayon & Industries Ltd. is the large scale manufacturing organization and successful player in the VFY and chemical products. The company has the strong financial structure and has a food reputation in the market.

Tolani Institute of Management Studies

Indian Rayon

However y conclusion regarding various department of the company is as follows.



Personnel department: At concerned with personnel department, if there are certain problems as they are solve by mutual understanding between the personnel and the management. Manpower planning and human assets are well organized. We can say that a present situation of this unit is very good because of its efficient management and staff.



Marketing department: Here, we can conclude that main marketing officer of this unit is at Bombay it is very effective at veraval also because they are trying their best to promote sales by the way of marketing research.



Financial department: This company has enough sources and proper allocation of fund and defect financial position of the company is good enough.

The company is also doing its business with the global market. In India, the share of Indian Rayon and the total export of the VFY are highest.

The total turnover, export, profit and the Co.’s history and development all reveals that it is highly reputed and progressive company. It is on path of success

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Indian Rayon

APPENDIX: Production & Sales quantity: Unit 2008-

2007- 2006-

2005- 2004- 2003- 2002- 2001 2000 1999-

s 09 08 07 06 05 04 03 -02 -01 00 Production (Quantity) Viscose MT 16,625 17,00 17,669 17,23 16,42 16,06 15,87 12,2 15,4 12,62 filament

0

3

0

0

3

53

96

1

rayon yarn Caustic MT 78,574 74,46 67,663 57,05 45,45 39,30 34,87 23,9 30,6 27,41 soda Spun

MT 9,185

8 1 7 5 5 76 20 9 11,26 17,720 19,19 15,44 14,42 13,78 12,7 13,4 14,11

yarns Fabric

000 3,646

1 4,792 5,088

Urea

MT MT 1,069,6 880,9 1,028,0 575,6 -

(merged

91

91

64

0 5 1 1 17 90 3 4,646 3,751 2,734 3,627 3,90 5,30 5,902 -

-

46

Tolani Institute of Management Studies

6 -

7 -

-

Indian Rayon

w.e.f. 1 Septem ber 2005) Carbon MT 202,07 215,1 182,66 175,0 164,0 118,7 112,5 93,6 89,7 95,82 black 6 03 8 Insulato MT 32,904 32,92 -

80 -

rs @

77 65 3 2005- 2004- 2003- 2002- 2001 2000 1999-

Unit 2008-

1 2007- 2006-

25 -

07 -

63 34 39 8 7,673 25,2 25,6 24,35

s 09 08 07 06 05 04 03 -02 -01 00 Sales (Quantity) Garmen '000 11,754 10,96 10,709 11,10 8,332 7,552 6,173 7,06 5,88 1,130 ts

Nos.

6

4

8

4

(acquire d w.e.f. 1st January 2000) Viscose MT 16,792 17,92 17,039 17,38 16,44 15,69 15,42 12,8 15,3 13,50 filament

3

0

5

4

2

12

26

7

rayon yarn Caustic MT 77,590 74,44 67,226 56,95 45,92 39,34 34,20 24,11 31,1 27,51 soda Spun

MT 9,271

1 4 0 4 7 1 04 6 11,34 18,357 18,86 15,68 14,59 13,88 13,1 13,2 14,64

yarns Fabric

000 4,049

9 4,710 4,645

Urea

Mtr MT 1,072,8 870,3 1,043,5 563,9 -

6 6 4 2 88 58 1 4,418 3,593 2,798 3,614 3,78 5,64 6,351 -

-

8 -

6 -

-

91 05 65 14 Carbon MT 203,82 214,6 180,89 175,9 165,0 118,1 114,2 94,5 91,7 94,65 black 7 17 3 Insulato MT 32,561 32,30 7,776

44 95 82 32 04 35 6 16,24 9,219 6,813 7,596 25,1 25,6 23,70

rs

5

4

Tolani Institute of Management Studies

84

91

1

Indian Rayon

(domest ic sales since 02-03) @ @ Insulator manufacturing unit earlier demerged w.e.f 1 August 2002, merged with Aditya Birla Nuvo Limited w.e.f. 1 April 2007

Balance sheet:

2008- 2007- 2006- 2005- 2004-

2003- 2002- 2001- 2000- 1999-

09

04

08

07

06

05

03

02

01

00

(Rs. crore) Net fixed 1,605. 1,501. 1,308. 1,135. 810.28 737.5 684.1 775.3 814.0 885.9

Tolani Institute of Management Studies

Indian Rayon

assets 0 Investment

6

1

5

s Long-term 4,982. 3,909. 3,477. 1,415. 618.3

581.6 415.9 438.8 312.6 229.8

investments 4 8 Current 730.0 97.5

160.0 98.4

6 3 371.8 260.5 81.3

investments Total 5,712. 4,007. 3,849. 1,675. 699.7 investment 4

3

4

31.2

114.3

741.6 514.3 439.8 343.8 344.2

8

s Net current 1,483. 1,458. 972.9 1,127. 462.7 assets Capital

1.0

318.9 359.8 425.2 438.1 441.4

7 5 6 8,801. 6,967. 6,130. 3,938. 1,972.6 1,798. 1,558. 1,640. 1,595. 1,671.

employed 1 5 5 Net worth represented by: Equity 95.0 95.0 93.3

9

1

0

2

3

9

4

83.5

59.9

59.9

59.9

59.9

59.9

59.9

-

-

-

-

-

-

-

share capital # Share

377.4 377.4 -

warrants $ Reserves

3,649. 3,551. 3,031. 2,124. 1,294.2 1,204. 1,104. 1,020. 1,068. 1,015.

and surplus 2 (net

3

2

1

8

0

1

1

4

of

miscellaneo us expenditure not written off) Net worth 4,121. 4,023. 3,124. 2,207. 1,354.1 1,264. 1,163. 1,080. 1,128. 1,075. Long

7 7 5 6 term 2,651. 1,841. 1,869. 972.5 285.3

loans 2 2 2 Short term 1,848. 902.2 962.7 591.1 207.7 loans

7 9 0 0 3 211.5 197.8 282.7 317.3 320.4 194.3 70.1

176.4 150.6 275.7

0

Tolani Institute of Management Studies

Indian Rayon

Total loan 4,499. 2,743. 2,831. 1,563. 493.0

405.8 267.9 459.1 467.9 596.2

funds Deferred

127.5 126.4 101.2 -

2 4 8 6 180.2 200.3 174.1 167.7 125.5

-

tax liability Capital 8,801. 6,967. 6,130. 3,938. 1,972.6 1,798. 1,558. 1,640. 1,595. 1,671. employed

1

5

5

9

0

2

3

9

4

Cash flow:

(Rs. crore)

2008-09

A Cash flow from operating activities Net profit before tax 162.3 Add: adjustments for Depreciation 166.1 Marketing and technical know-how written-off Interest expenses (net) 257.4 (Profit) / loss on fixed assets sold (0.6) (Profit) / loss on sale of investments (6.9) Dividend income (16.8) (Gain) / loss on long term strategic investments / transfer of business (net) Employees stock

options

outstanding Operating profit before working capital changes Add: adjustments for Decrease / (increase) in trade and other receivables

200708

2006-07

2005- 200406

05

314.6

311.1

271.8

157.1

141.2

120.4

111.9

77.8

-

-

-

3.0

179.0 (7.2) (1.2) (4.2)

171.2 (2.7) (6.8) (23.7)

55.8 0.3 (2.5) (16.5)

18.7 (0.4) (0.6) (6.4)

0.0

(0.7)

(0.2)

-

(1.9)

1.3

0.7

-

-

-

400.5

307.6

258.2

148.9

90.3

562.8

622.2

569.3

420.7

247.3

(149.8)

(141.4) (7.6)

231.5

(89.2)

Tolani Institute of Management Studies

Indian Rayon

Decrease / (increase) in inventories 29.0 Increase / (decrease) in trade and 85.4 other payables (35.4) Cash generated from operations 527.4 Income taxes refund (paid) (net) (82.7) Net cash from operating activities 444.6 B Cash flow from investing activities Proceeds from sale of fixed assets 6.9 Capital subsidy received 0.0 Sale / redemption / (purchase) of (749.5) investments (net) Proceeds from transfer of business 0.0 (net) Interest received 33.4 Dividend received 16.8 Capital subsidy received 1.6 Increase / decrease in corporate 25.9 deposit Purchase of fixed assets (275.7) Investment in equity of joint 0.0 ventures Investment in equity of subsidiaries 948.7 Acquisitions 0.0 Net cash (used in) / from investing (1,889.3) activities Cash flow from financing C activities Proceeds from issue of share capital 0.0 (including share premium) Security premium received 0.0 Proceeds from issue of share 0.0 warrants (net of conversion) Proceeds from / (repayment of) 1,755.8 borrowings (net) Dividends paid (including tax (63.9)

(258.5) 28.0

(118.7) (78.3)

102.5

(32.7)

(275.6) 17.8

(297.3) 342.8 (46.1) 278.7

(12.3) 557.0 (60.7) 496.4

(162.8) 258.0 (81.0) 177.0

(149.7) 97.6 (48.2) 49.4

13.3 -

8.8 -

2.2 -

2.8 0.00

212.3

(116.1)

257.4

84.9

5.1

34.5

-

5.4

24.8 4.2 -

24.3 23.7 -

13.2 16.5 -

4.3 6.4 -

(89.8) 132.5

(184.6) 2.00

(238.1) (302.7)

(200.0) (153.7)

-

(1,596.9) (661.1) 0.0

(504.6) (453.8) -

(91.4) (44.4) -

(572.8) (2,245.7) (847.8) (92.3)

1.7

9.8

0.0

0.0

339.7

759.9

0.1

0.0

377.4

-

-

-

(157.8) 1,272.9

764.9

88.0

-

(27.3) (27.1)

(106.1)

Tolani Institute of Management Studies

Indian Rayon

thereon) Interest and finance charges paid (254.6) Net cash (used in) / from financing 1,437.3 activities Net increase in cash and equivalents (7.3) Cash and cash equivalents (opening 97.2 balance) Cash of IGFL and BGFL Cash acquired on merger of ABIL Cash outflow on sale of RST unit Cash and cash equivalents (closing 89.8 balance)

(194.6) (184.7)

(62.1) (21.9)

366.5

1,751.8

675.6

39.1

72.4

2.4

4.8

(3.9)

22.7

20.3

9.4

13.3

2.0 (0.0)

-

6.2 -

-

97.2

22.7

20.3

9.4

Ratio analysis:

Unit 08-09 07-08 06-07 05s Ratios and statistics Operating % 11.6

06 15.7

16.5

04-

03-04 02-03 01-02 00-01 99-00

05

15.9 13.7 15.4

16.0

13.0

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13.8

14.4

Indian Rayon

margin Gross

%

6.9

11.5

12.6

14.7 13.2 15.4

15.1

10.4

10.4

12.1

margin Net profit %

2.9

6.1

6.6

7.1

6.1

8.3

7.3

3.1

4.8

5.4

margin Net sales/ X

0.6

0.6

0.7

0.9

1.0

0.9

0.9

0.9

0.9

0.6

2.0

3.1

3.1

6.5

11.4 10.7

5.5

3.1

2.8

2.5

X

1.2

1.2

1.2

2.9

6.8

1.7

2.0

2.0

1.0

0.6

%

5.3

7.5

9.6

11.2 9.7

11.4

11.3

7.6

8.3

5.9

employed) ROAE %

3.4

6.8

8.4

10.5 8.7

10.8

9.4

3.9

6.2

4.6

net worth) Current X

2.9

3.1

3.1

3.3

2.7

2.3

2.6

3.0

3.5

3.3

ratio Debt

1.1

0.7

0.9

0.7

0.4

0.3

0.2

0.4

0.4

0.6

profit

average capital employed Interest X cover (EBITDA/ gross interest) Debt Service Coverage Ratio ROACE (PBIT/ average capital

(net profit / average

X

equity ratio (total

Tolani Institute of Management Studies

Indian Rayon

debt / net worth) Debt

X

0.6

0.5

0.6

0.4

0.2

0.2

0.2

0.3

0.3

0.3

worth) Dividend Rs. 4.0

5.8

5.5

5.0

4.0

4.0

3.8

3.3

3.0

1.0

per share Dividend %

30.9

26.3

26.0

25.5 24.1 20.6

24.0

45.5

28.9

11.5

Rs. 14.5

26.1

25.6

24.5 18.3 21.1

17.0

7.0

11.0

9.3

Rs. 29.7

43.9

41.0

38.2 31.0 35.2

32.6

23.0

22.8

20.9

Rs. 433.8 424

335

264 226 211

194

180

188

180

equity ratio (long term debt /

net

incl. dividend tax (as % to

net

profit) EPS (weighted average) CEPS (weighted average) Book value per share No.

of Nos. 155,4 155,0 164,6 89,2 94,1 102,4 117,8 124,1 127,2 133,8

equity

97

28

03

87

37

88

69

53

57

05

71.1

80.4

56.3

sharehold ers Closing price on March

Rs. 445.0 1,396. 1,070. 748. 402. 188.5 75.3 as

2

9

0

3

31st –

Tolani Institute of Management Studies

Indian Rayon

NSE Market

Rs

4,227. 13,26 9,992 6,24 2,40 1,128 451 6

426

481

337

capitalizat cror 4

5

9

ion (NSE) e Price x

30.8

53.6

41.8

30.6 22.0 8.9

4.4

10.2

7.3

6.1

1.0

3.3

3.2

2.8

0.4

0.4

0.4

0.3

earning ratio (NSE) Price

/x

1.8

0.9

book value ratio (NSE) Exports

Rs. 636.2 624.3 482.6 460. 447. 383.5 372.8 388.3 397.3 296.0

(FOB)

cror

Capital

e Rs. 268.8 224.8 293.9 199. 153. 147.6 33.0

1

expenditur cror e (net) Strategic

9

38.9

23.7

6

185.3

7

e Rs. 1,073. 435.4 2,063. 791. 36.7 165.8 (22.9) 126.2 82.8

investmen cror 1 ts

4

9

(net e

additions) * before exceptional items

QUSTIONNAIRE: 1) Is company providing accommodation?

Tolani Institute of Management Studies

5.2

Indian Rayon

Yes

No

2) Are you satisfied with working environment? Yes

No

3) Are you feeling secured by working in this company? Yes

No

4) Are you satisfied with your superiors? Yes

No

5) Are you satisfied with the recreational facilities provided by the company? Yes

No

6) Are you satisfied with the wages / salary given by the company? Yes

No

7) Are you provided with the loan facility by the company if required? Yes

No

8) Is company providing sufficient compensation to those workers the time of Accidents? Yes

No

9) Would you like to do job rotation? Yes

No

10) Give parameters for job satisfaction?

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Indian Rayon

Yes

No

11) Which kind of welfare facilities you would like to add in the list of facilities provided by the company?



PERSONAL INFORMATION: Name:

Age: -

20 to 3o

30 t0 40

40 to 50

Graduation

Post

Above 50

Education: -

Schooling

Position of Job: -

Permanent

Temporary

Years of Experience: -

Monthly Income: -

less then 5000

5001 to 10000

10001 to 15000

Above 15000

BIBLIOGRAPHY:

 Literature:

➢

financial Reports of the Financial year 2008-2009

➢

Financial management By I.M. Pandey 4th edition

Tolani Institute of Management Studies

Indian Rayon



➢

Fact and Figures of Birla Group Publication

➢

Financial statement of Ray one Division, ABNL.

➢

Financial management -Khan &Jain 5th edition

➢

Human remorse management -Aswathappaa

➢

Marketing Management- Philip Kotler

Web sites: ➢

www. Adityabirla.com

➢

www.indianray one.com

➢

www.adityabirlanuvo.co.in.

➢

www.adityabirla.com/the _group/heritage.htm

➢

www.fabriclink.com/History.html

➢

www.google.com

Tolani Institute of Management Studies