Project Report Aarti Vapi

8/17/2019 Project Report Aarti Vapi

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AARTI INDUSTRIES LIMITED

ACADEMIC YEAR 2007-0

DECLARATION

I, SHARMA PRAGATI SUSHIL !"#"$% &"'(a#" )!a) )!" #"p*#) *+ "#

)#ai+i+/ a+& p#*"') 1*# "+)i)("& 3HUMAN RESOURCE AUDITING4

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PLACE8 VAPI

DATE8 SHARMA PRAGATI

PRAGATI SHARMA


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ACKNOWLEDGEMENT

3Turning aspirations into realities is easier when quality people are support of

ones efforts”

I greatly concede the help provided by the company and the people working for

providing the much valuable information and also extend my thanks for the support

throughout the project report.

I am also thankful and acknowledge my depth gratitude to my teachers and the

director of GI!" #r. "."."$%$ for his constant encouragement and direction in the

completion of this project report. I am obliged to him and express gratitude to him

for giving me a great opportunity for the preparation of the project report.

I would like to express my heartful of gratefulness to !r. &irit "hastri for having

given me this opportunity to do a project in this esteemed organi'ation.

I am also thankful and concede my depth of gratitude to my professor guide

!rs (ayshri Taylor for her constant encouragement and supervision in the

completion of this training and the project.

PRAGATI SHARMA

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CERTIFICATE

This is to certify that !s. )%G%TI "$%!% has satisfactorily completed the workentitled* +",!!- T%IIG )/(-0T” speciali'ation topic +$,!% -"/,0-%,#ITIG”. 1ased on the declaration made by the candidate and my association as aguide for carrying out this work* I recommended this project report for evaluation as apart of the !1% )rogramme of 2eer armad "outh Gujarat ,niversity.

#ate3 4564768449

)lace3 2api ::::::::::::::::::: ;Guided 1y3 (%


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EXECUTIVE SUMMARY

The summer training report contains the detail of employees of %I= about their

living status and other problem faced by there in there day to day life.

Than what is 0" a small idea about that by theoretical as well as from

companies point of view.

The report starts with introduction of the Indian 0hemical Industry with the

history of the %%TI I#,"TI-" =I!IT-". The goals* mission and vision are also

added.

Than what is 0" a small idea about that by theoretical as well as from

companies point of view.

The finance department is covered every necessary information. The marketing

department of the company was in !umbai so we were not able to get complete

information about the marketing department of the company.

The production department has in it all the production details with the

production process and the -T) plant which is situated in the company and owned

by the company.

The speciali'ation project undertaken was in accordance to the $uman

esource #epartment of the organi'ation to know the working of the department in

organi'ation.

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The $uman esource %uditing was basically done to know the working*

systems policies and the procedures that are prevailing in the department of the

organi'ation.

The methodology adopted for the completion of the project was to approach

the $uman esource manager with a set of questionnaire.

The data gathered shows that the %%TI I#,"TI-" =I!IT-# is having a

good human resource department.

The report contains the introduction of the %uditing. ?hat does %udit contains@

?hy should %uditing be conducted@

The analysis is done with the help of the questions asked and the response

from the $uman esource !anager of the %I=.

Then the findings are being shown. =astly the suggestions are given to the

company after the interpretation of the response of the $uman esource !anager.

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INDEXPART 1 (ALL DEPARTMENT)

SR. NO TOPIC PAGE NO

9 THE STRUCTURE OF THE CHEMICAL INDUSTRY 9-2

2 AARTI INDUSTRIES LIMITED :-9;

CORPORATE INFORMATION :-;

INTRODUCTION ;

MEDICLAIM POLICY >->=

SOCIAL RESPONSI?ILITY ;0-


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o @CSR ;

PACAING, LA?ELLING, WARRANTIES

AND GUARANTEES.

99;-920

THE DISTRI?UTION CHANNEL 929

MODE OF TRANSPORTATION 922

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< DESPATCH DEPARTMENT 92:-92;

7 PRODUCTION DEPARTMENT 922

UALITY CONTROL 9>:-9>7

RESEARCH B DEVELOPMENT DEPARTMENT 9>-9>=

= STORES DEPARTMENT 9;0

90 PLANT UTILITY DEPARTMENT 9;9-9;:

99 HEALTH AND SAFETY 9;>-9;<

AARTI HEALTH CARE 9;;-9;<

SAFETY DEPARTMENT 9;7-9


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INDUSTRIES

LIMITED

THE RIGHT CHEMESTRY FORA BRIGHTER TOMORROW

THE STRUCTURE OF THE CHEMICAL INDUSTRY

In tune with the fast changing economic environment in the country* the Indian

chemical industry too is on a steady growth path. Indian chemical industries has a

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strong and diversified base encompassing many areas such as organic and

inorganic chemicals* plastic* fibers* dye stuffs* paints* pesticides* insecticides*

speciality chemicals* drugs and pharmaceuticals. The growth in this sector has

constantly been increasing than the average growth rate of the manufacturing

sector in India.

The chemical industry is sometimes referred to as the AkeystoneA industry

because of the way the rest of the manufacturing sector relies on chemicals.

0hemicals are nearly a BC.D trillion global enterprise* and the ,.". chemical industry

is the worldEs largest producer. The chemical industry is also the second largest

consumer of energy in manufacturing and spends over BD billion annually on

pollution abatement. 0hemical industry has 8CF of total energy consumption.

The Indian economy is firmly on the path of the steady growth. -ven during the

last decade when the other countries were in the grip of the massive slowdown*

India continued to enjoy a comfortable position. This recent spurt in the growth is

propelled by radical reforms such as the removal of the restrictions on foreign

investment and industrial delicensing. ?ith substantial increase in the domestic

Gross #omestic )roduct ;G#)> rate the growth is also translated into increasing

the demand in the domestic sector in various chemicals. "imultaneously the

chemicals sector also shows growth in export.

THE INDIAN CHEMICAL INDUSTRY SIZE US $ 28 BILLION

0hemical Industry is an important constituent of the Indian economy.

Its si'e is estimated at around ," B 87 billion approx* which is equivalent

to about 9F of IndiaHs G#).

In terms of volume* it is C8th largest in the world* and rd largest in %sia.

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?ithin India* it constitutes about CDF of manufacturing capacity and 84F

of the -xcise revenue to the Government of India.

0hemical industry has weight age of about CF in the index of industrial

production.

The global chemical industry is valued at about ," B C.9 trillion. /f

which* IndiaHs chemical sector accounts for just 8F.

JThe Indian chemical industry is the C8th largest in the ?orld and rd largest in

%sia. The Indian chemical industry constitutes C8.DF of the countryHs industrial

production and CDFof the manufacturing capacity of India. %lso the chemical

industry constitutes K.9F to IndiaHs G#).L

I!"#% C&'"#* I!+%,-. E/0-,

IndiaHs chemical exports have recorded growth rate of 5F.

Mor the year 844CN48* the chemical industry accounted for more than

CK.84F of the total Indian exports.

Mor the year 844CN8448 exports of all chemicals and allied products were

," B OK7O million.

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CORPORATE INFORMATION

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In the business world* the only constant is change. )aradigms are remodelled*

visions and business strategies modified* and technologies upgraded in response

to the needs and challenges of a changing world. In other words* organi'ations have

to change to survive* to remain competitive and to succeed. AARTI INDUSTRIES

LIMITED (AIL) is a dynamic organi'ation* continuously investing in innovative

products and processes* as well as cleaner technologies* to meet shareholder

aspirations and societal expectations.

AARTI was started in the year C57O. The first unit of AARTI group* %=0$-!I-

=%1/%T/I-"* commenced commercial production of #I!-T$ in the year C59D. Today* AARTI has acquired worldNclass expertise in the

development and manufacturing of basic bulk chemicals* dyes P pigment

intermediates* pharmaceuticals P agrochemicals along with their intermediates*

rubber chemicals* surfactant intermediates and speciality chemicals. AARTI is

amongst the largest producers of ?"+"+" based basic and intermediate '!"i'a( in

India

%t AIL* they believe that the pursuit of corporate goals and commitment to

social responsibilities have to go hand in hand. "o* while the AIL are one of the

largest producers of ben'eneNbased intermediates in India and are ranked among

the top five producers in the world* the AIL is also an organi'ation alive to their

responsibilities as a good corporate citi'en. The people at AIL believe that high

standards of business conduct are integral to earning the trust and respect of

stakeholders and therefore have 'ero tolerance towards unethical behaviour or

corruption in any of their business dealings.

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AIL is a multiNproduct* multiNlocation company manufacturing over C8D

products at globalNscale. AARTI has manufacturing sites at Gujarat* India @2api*

"arigam P (hagadia> and at !aharashtra* India ;Tarapur P #ombivli>. The Tarapur

facility of AIL% %)I division.

AARTI has attained a total turnover of ," B C75 million in the year %pril 844N

!arch 844O with flagship companies AARTI INDUSTRIES LIMITED (AIL)

AARTI DRUGS LIMITED (ADL) listed on "tock -xchanges. AARTI has a

"ubsidiary AARTI HEALTHCARE LIMITED ;AHCL>* which is engaged inmanufacturing of %ctive pharma ingredients ranging from %ce Inhibitors*

1roncodialators to "teroids.ecogni'ing the importance of research* AARTI has

established three fullNfledged #"I ;#ept. of "cientific P Industrial esearch>N

Government of India recogni'ed P # centers* which carry innovative product and

process development work.

AARTI INDUSTRIES LTD. is an I"/ 54486G!) certified organi'ation and a

flagship company of the ,"# 8D5 million strong %arti Group. AARTI has the

privilege of catering to the requirements of leading manufacturers of dyes*

pigments* pharmaceuticals* agrochemicals and rubber chemicals in countries such

as ,"%* ,&* Germany* "pain* Italy* "wit'erland* 1elgium* (apan* &orea* 0hina*

ussia* etc. AARTI also has representatives in ,"% P a subsidiary company in ,&

to provide better services to its -xport 0ustomer.

Mor the people at AIL* sustainable growth is not an endNpoint* but an ongoing

process and a lifeNtime commitment. The dedication of AARTI INDUSTRIES

LIMITED to the principles of sustainability is best encapsulated in their companyEs

motto N AThe right chemistry for a better tomorrowA. % better tomorrow for our

children and future generation.

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AIL will always be a socially responsible company. The company AIL always

value the active involvement of their people their mission of achieving sustainablegrowth. The company also thanks all of their shareholders* customers* business

partners* as also the media* financial institutions* industrial associations* G/s*

government organi'ations* neighbouring industries and local communities for

placing their trust in the company i.e. The AARTI INDUSTRIES LIMITED and

being a part of this exciting journey of sustainable growth. %t AIL* a sharp focus on

the three main constituents of the ATriple 1ottom =ineAN economy* society* and

environment Q guides their activities towards greater sustainability. AARTI

INDUSTRIES commitment to corporate social responsibility is corroborated by the

companyHs emphasis on creating a performanceNbased ambience for their people*

their respect for human rights and labour welfare* their commitment to high ethical

standards* their initiatives in the areas of health* education and environment

preservation* and their endeavors to create value for the companyHs stakeholders.

/ver the last two decades* we have acquired worldNclass expertise in the

development and manufacturing of basic bulk chemicals* dyes P pigment

intermediates* pharmaceuticals P agrochemicals along with their intermediates*

rubber chemicals* surfactant intermediates and speciality chemicals. AIL% %)I

division* %arti $ealthcare* makes highNvalue lifestyle %)Is which are used in

manufacturing cardiovascular* antiasthmatic* antiNcancer* antiNthalassaemic* antiN

hypertensive and antiNdepressant drugs -xports account for over O4F of our total

sales. %t present* AIL export to more than O4 countries worldwide including ,"%*,&* Germany* "pain* Italy* "wit'erland* 1elgium* (apan* &orea* 0hina and ussia.

/ver K4F of AIL% exports are to developed countries* with more than O4F going to

the -,.

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GOALS

AARTI group is strategically placed to exploit growth opportunities in the

0hemical Industry. In view of its technical expertise and broad base satisfied

clientele in India and abroad* AARTI is looking for global partners and strategic

alliances in areas of mutual interest vi'.

o #evelopment of International markets for AARTI3% products.

o Toll manufacturing.

o Transfer of Technology 6 Technical knowNhow.

VISION STATEMENT

?e will be a worldNclass organi'ation that enhanced value to our customers

and other shareholders by

o 0aring for employee to work as motivated terms in open and learning

environment.

o "etting challenge new standards of performance.

o Mocusing on total quality* innovation and responsible care towards the

environment.

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MISSION STATEMENT?e are in the problem of manufacture and supply of crop production and

specialty chemicals worldwide providing solutions to optimi'e farm productivity for

the Indian farmer through out innovate and cost effective product to provide the

customer* better value of money.

♦-xceed the expectations of our valuable customer for quality of products

and services.

♦"trive to make continuous important and bring excellence in productivity*

safety* environment and hygiene in all the area of operation.

♦-mphasi'e on appropriate training to all the employees and be open to all

their suggestions through team participation.

♦"trive to make AARTI INDUSTRIES LIMITED of a worldNclass

organi'ation.

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THE COMPETITIVE ADVANTAGE OF AARTI

INDUSTREIS LIMITED

• The AARTI INDUSTRIES LIMITED (AIL) considers that their P# is

quite good which helps the industry in gaining the advantage compared

to their competitors.

• The people in the AIL% P# department keep on doing the research

work continuously which helps them in gaining more advantage than that

of their competitors i.e. reduction of the cost or increasing the quality of

the product that are to be served to theirs customers.

POSITION OF AARTI INDUSTRIES LIMITED (AIL)

The manufacturing units of the AIL are of global scale and are mostly in the

"tates of Gujarat and !aharashtra. 1oth the units are I"/ 6 G!) certified. The plants

are highly incorporated along with 0ostN-fficient !anufacturing )rocess and =ow

capital investment and manufacturing more than C44 products. The AARTI

INDUSTRIES LIMITED is ranked amongst top D Global manufacturers for their key

product and their continuous P# support and process improvement is the key for

0ompany to remain competitive globally.

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SOME EY FACTS A?OUT AIL

• AARTI INDUSTRIES LIMITED is one of the largest producers of ben'eneN

based basic and intermediate chemicals in India and among the top five

globally.

• AARTI INDUSTRIES LIMITED one of the top three producers of #imethyl

"ulphate in the world.

• The AARTI INDUSTRIES LIMITED has a fully backward integrated plant for

#imethyl "ulphate* i.e.* starting from "ulphur and !ethanol.

• AIL s.D44 crore company manufacturing /rganic chemical and Intermediates

for 2api unit.

• AIL derives about 54 per cent of its revenues from specialty and basic

chemicals.

• Through its backward integration manufacturing* AARTI INDUSTRIES

LIMITED acquires the competitive advantage with respect to the availability

of raw materials and reduced cost.

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• AIL has the largest installed capacity of chloroNben'ene ;/10 and )10>

domestically.

• The company is adding more fluorine based products in its portfolio.

• The company has in recent times been focusing on specialty chemicals and

pharmaceuticals.

• AARTI INDUSTRIES LIMITED doubled its sales turnover in the last four

years from s OD crores in 844CN8448 to s 97K crores in 844DN844K whereas

exports increased more than three times during that period from s C4C

crores in 844CN8448 to s O8 crores in 844DN844K.

• AARTI INDUSTRIES LIMITED carries out custom synthesis activities and

undertakes contract research P manufacturing.

• AARTI INDUSTRIES LIMITED was been presented the star exporter award

for 844ON4D by AThe Gujarat #yestuffs !anufacturersE %ssociationA for earning

the highest foreign exchange from direct export of selfNmanufactured dyes P

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dyes intermediates. This was one of a biggest reward to the AARTI

INDUSTRIES LIMITED for their efficient effort.

G''-#* R+*'% #! R'4+*#,"

These are the rules and regulations that the employees of AARTI

INDUSTRIES LIMITED have to pursue stringently and the employees do follow allthese rules and regulations happily for the betterment of their lives as well as the

company.

♦ The -mployees cannot bring any kind of unnecessary resources like

matchboxes or cigarette* alcohol* tobacco* etc.

♦ The employee after entering the premises of the AIL should always put on

his identity card with him.

♦ #uring functioning hours the employees should not meander any where*

devoid of their work and wasting the time.

♦ ?hile entering and departing out of the AARTI% premises each and every

employee should make an entry by means of purchasing card from the

security office at the main gate of the AIL.

♦ %ny employee of AIL should not remain missing or absent without former

informing to his department head and ) P %. #ept. unless and until the

explanation of absent is bad health or any urgency that might have

occurred.

♦ -very employee should be dressed in uniform that has been provided to

them by the company while entering the premises of the AIL with the

safety shoes* apron and safety helmet as per pre instructed to them.

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C0#.% %-'! 5#*+'6

o Global capacities

o 0ustomer "atisfaction

o Ruality and logistics

o 0ontinuous cost control

o $igh value addiction

o #iversified product range

o

=oyal work forceo InNhouse recogni'ed P # 0enters.

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ORGANIATION CHART

Chairman

Junior Director

Vice President

Mkt. Manager Director Work Personal Manager Excise Officer

Dep. Gen. Manager Prod. Manager Personal ssistant G. M.

Mkt. Officer Maint. Dept. Production Dept. !.C. Dept. Dispatch Dept. "afet# Dept. "ecurit# Dept. DGM Official $c

DGM Organic Di%. cid Di%. DGM Dispatch Officer G. M. "ecurit# Off. &in. Exe $c sst.

Jun. Exe. GM GM "en. Chemist Dispatch ssist. "afet# Off. "ecurit# sst.

'echnician DGM DGM Chemist "afet# sst. "uper%isor

"en. Manager "en. Manager (a) ssistant Engineer "ecurit# Guard Gun Man

Manager Manager "uper%isor

"DM "DM Worker

Dep. Manager Dep. Manager

Worker Worker

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HUMAN RESOURCE DEPARTMENT

Human R esource Management is that management which is related with

decisions relating to planning organi'ing* directing and controlling of the

procurement* development* compensation* integration* maintenance and

separations of human resources to the end that individual* organi'ation and

sociality objectives are accomplished. %nd the same is done in the AIL. The

objective of the AARTI INDUSTRIES LIMITED is the maintenance of those

relationships on the basis of which organi'ation can get maximum personal

contribution from employees.

%s we all know that work of the Human R esource Department is of acquiring*

retaining and maintaining the manpower. The same is in the case of the AARTI

INDUSRTRIES LIMITED the organi'ation tries its best to procure maintain and

retain their employees in their organi'ation.

The $uman esource is important to any labour or capital intensive industries.

"o they should place an important position to an industry. The AARTI

INDUSTRIES LIMITED regular undertakes the training activities and other $

initiatives. %s the AIL does work for the societies* it also thinks about its

employees. The company has also continued its scheme for assistance to

employees with a view to ensure that their basic housing needs are fulfilled. The

company has been continuously focusing. /n people and processes those to

encourage and reali'e their full potential through continuous on job learning and

through other $# initiatives coordinal and harmonious relation with employees

continued to prevail through the year under assess.

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%s it is aptly said that Human R esource is an asset for any organi'ation for the

success of any organi'ation human resource play a significant role. If any

companyHs Human R esource is not up to the mark or efficient then it affects the

performance of an organi'ation.

-ach and every department is linked with another department. /ne department

forms a stair for the other department in the same way the Human R esource play a

vital role in each and every department whether it is finance department* marketing

department* production6operation department* P # department or any other. The

manpower must be efficiently employed to get an effective result.

F+,"% 7 H+# R'%+-' M##4'-6

The following are main function of human resource manger in AARTI

INDUSTRIES LIMITED8

∗ %pplication and control of company rules and organi'ation policy.

∗ ecruitment of manpower intended by $/# and approved by management

and top head.

∗ -mployee and trainees induction programmed arrangement.

∗ #evelopment of trainees by training and approvals

∗ Transport arrangement for required by employees* guests P customer.

∗ 1ooking and reservation as required by employees 6 guests.

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∗ "afety of company material and employees.

∗ !aintenance of first aid material.

∗ 0anteen administration

∗ %ssistance of meeting and conference

∗ 0ompany occasions arrangements like annual day* )icnic.

∗ =abor welfare activities as decided by management.

∗ %rrangement of uniform* shoes* seasonal wear* safety equipment.

∗ $ouse keeping of company premises.

∗ 0asual labor arrangement

∗ 1uilding maintenance and office maintenance

∗ )ublic relation activities.

∗ "alary wages and perks administration works and recorded keeping.

∗ Telecom related activities

∗ %ppraisal assistant of employee for increments * training* promotions

∗ Mactory %ct related activities

∗ "tationary planning and arrangement.

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RECRUITMENT

ecruitment in simple terms is searching for capable applicants for the job.

ecruitment is attracting and obtaining the eligible candidates so that the right

people are selected for the job.

ecruiting of the individuals or the recruitment process is one of the most vital

and complicated part of an organi'ation. If any error is made in the recruitment

process* then in a straight way it could be seen in the work performance of the

employees and the profits of the company as a single mistake will have an effect on

the result of the organi'ation. %s AARTI INDUSTRIES LIMITED is producing

some of the ha'ardous chemical so for them man power recruitment process is

hardNhitting job.

ecruitment is the generating of the application of applicants for specific

position through many of the sources from them the three common sources are the

advertisement* state employee exchange agencies or a private employment.

%ccording to AARTI INDUSTRIES LIMITED they formulate a selection policy*

due consideration is to be given to organi'ational requirement as well as technical

and professional dimension of selection procedure adopted by AARTI

INDUSTRIES LIMITED and that it is tailor made to meet its particular needs.

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The thoroughness of the procedure depends upon three factors.

ature of selection.

)olicy of the company.

The length of the probability period or trial period.

The company has also continued their schemes for assistance to employees

with a view to ensure that there basic housing needs are fulfilled. The company has

been continuously focusing. "o they should place an important position to

industries. The AIL company regular undertakes the training activities and other

Human R esource initiatives. The Human R esource is important not only to any labor

intensive but to the capital intensive industries also. /n people and processes

those to encourage and reali'e their full potential through continuous on job

learning and through other HRD initiative cordial and harmonious relation with

employee continued to prevail through the year under review.

Human R esource plays a vital role in each and every department whether it is

finance department* marketing department* production6operation department* RBD

department or any other. In an organi'ation the manpower must be efficiently used

to make out the best from them. Human R esource is asset for any organi'ation for

the success of any organi'ation. Human R esource plays an important role. If any

companyHs Human R esource is not a standard or not efficient then it affects the

performance of an organi'ation.

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S+-' 7 R'-+",',6

The sources that are used for the recruitment purpose in AARTI INDUSTRIES

LIMITED are as follows3

• I,'-#* %+-'%

∗ Transfer

∗ )romotion

• E/,'-#* %+-'%

∗ %dvertisement

∗ -ducational institution

∗ =abor contractors

∗ ecruitment agencies.

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RECRUITMENT PROCEDURE6

PRAGATI SHARMA

NEWSPAPER

APPLICATION

RECEIVING

APPLICATION

SORTING

OUT

APPLICATION

II INTERVIEW

FINALIE

INTERVIEW

OFFER

LETTER

JOINING THE

ORGANIATION

APPOINTMENT

LETTER

INTERVIEW

SORT TEST

WRITTEN TEST

OFFER LETTER

APPOINTMENT

LETTER

JOINING THE

ORGANIATION


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INTERVIEW6

Then the interview is held. "ome employees of the AIL from the executive levelare being selected so that those people carry out the interview without any

biasness. In the interview the employees of the AIL carries on with the question

answer sessions. 1y this interview the panel gets a clear picture of which people are

competent for the job and can go for the further process of the recruitment.

FINALIZE6

Minally the applicant who is found to be competent enough by the panel is

being finali'ed after the finali'ation the employee is asked to go under a physical

checkup under the doctors and submit the report in the AIL.

OFFER OR APPOINTMENT LETTER6

%fter all the procedures are completed and a clear chit given by the doctors the

employees are being given an offer or an appointment letter to join the organi'ation

the candidate.

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SELECTION PROCEDURE

PRAGATI SHARMA

APPLICATION

FORM

INTERVIEW

PHYSICAL

EAMINATION

REFERENCE

FINAL APPROVAL

EMPLOYMENT


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PROMOTION AND TRANSFER

PROMOTION

AARTI INDUSTRIES LIMITED gives progression to its employees with

enhanced pay* position and employment responsibility all the way through

encouragement by promoting them as per the responsibility and the work done by

the employees as one of the best way of expressing the employees excellent work is

by promotion or by increasing the employeeHs remunerations.

PROMOTION CRITERIA

The AARTI INDUSTRIES LIMITED has a promotion policy that* the

promotion to the employees is given on the basis of seniority. AARTI INDUSTRIES

LIMITED has resolute to give promotion after every two years of the working period

of the employees. If an employee is not satisfied of the post he has* the employee is

then sent back to his position for the duration of his promotion period. %s per their

resolution the AIL gives promotion to its employees by the way of their seniority

which is O4F and out of K4F* 84F by the way of personal interview and O4F by

performance appraisal so that none of the employees feel that they are been

deceived by the company authority and the well deserved employee is being given

the promotion.

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PROMOTION POLICY

AARTI INDUSTRIES LIMITED has espoused the promotion policy as per the

seniority as well as on the merit basis of the employees. The seniority of employee

is regarded grade wise as per character residence period on the particular grade.

%lso the work done by the employees are given significance by the AIL.

TRANSFERS

%s we all know that transfer is a cross shifting the employee as per the demand

or a requirement of the employee* causing a movement of an employee from his6her

one job* section* department shift* plant or position to another at some or another

place with that particular departmental salary status and responsibility* etc.

The A#-," I!+%,-"'% L"",'! follows a well define transfer policy to avoid

any grievances among the employees.

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• P"#i*&i' T#a+6"#

In the AARTI INDUSTRIES LIMITED periodic type of transfers is mainly for

those departments whose regional areas and sales department are located abroad

or out the country. Mor that reason the marketing department is the only department

which has the periodic transfer present in it.

The AARTI INDUSTRIES LIMITED has a policy according to that policy the

marketing personals are transferred every four year* so they can come back to the

native state. There are no frequent transfers that exist n the company and they areavoided in company as the AIL are being concerned of the adverse effects of

transfer on heir employees which is seen in the work of the employees.

• I+)"#+a( T#a+6"#

The internal and the departmental transfer are mostly avoided in the AARTI

INDUSTRIES LIMITED.

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TRAINING AND DEVELOPMENT

Training in AARTI INDUSTRIES LIMITED is given to those people who are

newly employed in the company so as to make them familiar with the industry and

the working condition prevailing in the company.

The trainings that exist in AIL3N

o Induction training

o

$ealth and safetyo #iscipline

o TR!

o I"/ 5444

o !anagement development

o To increase productivity.

o To improve quality.

I+&')i*+ )#ai+i+/8

The induction training is given to those of the new employees to make them

familiar with the company as well as the working of the organi'ation.

Di'ip(i+"8

The discipline refers to the rules and the regulations that prevail in the AARTI

INDUSTRIES LIMITED. %s the employees enter in the organi'ation they are

thought and made aware with those rules and regulations so that the employees do

not violate those rules and that the discipline is maintained in the organi'ation

properly.

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REMUNERATION

The remuneration that the AARTI INDUSTRIES LIMITED provides to each of

the employees is as follows

Sa(a#%8

The 1oard of #irectors is to be provided with the "alary of s.7D* 4446N per

month with power to make an annual increment area under discussion to a

maximum amount of s.C* D4*4446Nper month in respect of salary and privilege up

to C44F of salary.

C*ii*+8

In accumulation to the salary* the wholeNtime #irectors of the %%TI

I#,"TI-" =I!IT-# shall also be entitled to be paid share in comprehensive

commission calculated at the rate of CF of not profit of company computed under

section O5 of the companies act* C5DK payable to all company share of such

commission shall be payable after the annual accounts are adopted by the

shareholders.

P"#ii)"8

%part from the salary and commission regularly paid* the wholeNtime

#irector shall be permitted with the allowances3

o $ouse rent allowance of s.CD4446Nper month.

o 1onus6exNgratis3 s.7D4446Nper annum.

o 0ompensation of !edical -xpenses and6or !edical Insurance

premiums for self and family members as per companyHs policy.

o )ersonal %ccident Insurance as )er 0ompanyHs policy.

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The power of modifying any issue i.e. increase or decrease the amount of the

salary or any other and amount of perquisites to be provided by the company

subject to a maximum ceiling of C44F of the salary of the wholeNtime #irector will be

in the hand of the 1oard of #irectors* ?holeNtime #irector shall also be entitled to

following perquisites which shall not include in the computation of the ceiling on

remuneration specified here in3

o 0ontribution to )rovident fund. 0ontributions to super annulations fund or

annuity fund as per the rules of the company. These will not be included in

the computation of the ceiling on perquisites to the extent these either

singly or put together are not taxable under the Income Tax* C5KC.

o Gratuity payable at rate not beyond half a monthHs salary for each

completed year of service end.

o -ncashment of leave at the end of the tenure.

o )rovision of car for business of the company and telephone at residence

shall not be treated as perquisites. ,se of car for personal purpose and

personal long distance calls on telephone shall be billed by the company.

T!" Sa(a#% Pa%"+)

"alary is usually paid in the first week of every month. "alary officer prepare

covers with the name and personal code o.* of employees and the pay slip along

with cash or cheque as per grade.

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• E+(i/!)"+"+) 8-

o Mor the purpose of this agreement* +Mamily” means the spouse* the

dependent children and dependent parents* if any* of the wholeNtime

#irector.

o o sitting fee shall be payable to him for attending the meeting of the

1oard of #irectors or committee thereof.

o The other terms and condition of the agreement are such as are

customarily contained in agreement of similar nature.

• T!" C*p"+a)i*+ Pa'a/"

The compensation package includes3

1asic S #earness %llowance S other financial pays like cash canteen

subsidies* washing allowance* shift allowance* contribution of provident fund*

gratuity* medical charges* personal pays* inconvenience allowance* chemical*

and ha'ardous allowance* etc.

• S!i6) a+& W*#i+/ H*#

Timing at AARTI INDUSTRIES LIMITED the shifts are as follows3

General shift 7344 am to D344 pm on all working days.

=unch time is from C8344pm to C344 pm and C344 pm to 8344 pm.

There are total shifts in the company i.e. morning* evening* and night.

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;)roduction of AARTI INDUSTRIES LIMITED goes on non stop i.e. continue

round the clock.>

• T!" I+&)#ia( A').

The Industrial %cts that is applicable by Human R esource in the AARTI

INDUSTRIES LIMITED is as follows.

o MactoryHs %ct* C5O7*

o Industrial dispute %ct* C5O9*

o !inimum ?ages %ct* C5O7*

o -mployees provident funds and miscellaneous %ct* C5O8*

o )ayment of 1onus %ct*C5KD*

o )ayment of gratitude %ct* C598*

o )ayment of wages %ct* C5K*

o The ?orker menHs compensation %ct*C58*

o %pprentice %ct*

o The employees "tate Insurance %ct* C5O7*

o 0ontract =abor %ct*

o )ayment of Gujarat labor welfare fund.

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FACILITIES PROVIDED TO THE WORKERS6

The workers in the AARTI INDUSTRIES LIMITED are considered as an

important part of the company and so the company sees that they provide their

workers with the sufficient amenities for the betterment of the workers of their

company.

%lter the work method so that there is a reduction in any of the possibilities

for straight handling of ha'ardous materials.

)rovide prospect to the workers to talk among them while they are working

so that they can develop a healthy working relations among them.

-nsure the availability of a qualified person for the proper treatment the

workers and first aid equipment with all necessary ointments and medicines

for each kind of infection that may be caused in a chemical industry.

)erforming of a regular fitness examination of the workers to notice whether

they are in shape and ableNbodied without any illness and if any worker

found in such condition then provide them with ready contact treatment by a

physician or a nurse.

The company also tries to avoid the work of the workers which is in

separation or in a remote area of the unit so as to avoid any kind of mishap.

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SCHEMES

The schemes provided by AARTI INDUSTRIES LIMITED to their employees3

EDUCATION SCHEME

The "cheme decided by the AARTI INDUSTRIES LIMITED for the

"cholarship for education to the children of all their employees. This scheme is for

those children who have top score in their academic year. The scheme decides

scholarship to the children on the basis of their merit.

The applicability of the cheme is that the scheme will be applicable to all

employees of the company and their children studying in "T#. D th to C8th. This will be

free from any biasness from the AARTI% side. %nd the deserving child will be

getting the benefits of the scholarship scheme.

%fter the submission of the concluding result by the children of their academic

year to the specified personnel of AARTI the decisions will be taken. The results

will be clustered as per the academic standard P the child who has topped will be

sponsored for next year school fees. The approximate budget amount already set

and given to the child will be s.8444 6N).%. ;-ight students every year xO4446Nfees

of each.>

VOLUNTARY RETIREMENT SCHEME

The Human R esource Department has also implemented a special type of

policy for the employees named as 2oluntary etirement scheme. ,nder thisscheme* if an employee is above O4 years of age and retire voluntary. $e will be

entitled to get the minimum O month salary excluding the benefit for the remaining

years. %nd not many but only two employees have gone for this scheme.

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MILK SCHEME

%t present AARTI INDUSTRIES LIMITED is giving milk coupons to all of its

employees except some service department that are excluded from the scheme.

%long with the milk coupons* %I= is giving tea allowance to all of its employees

s.O6N per attend.

FUNERAL SCHEME

The scheme is such that s. 8D446N to be given to all the employees on behalf of

the society and AARTI INDUSTRIES LIMITED on expiry of any of the dependent

family member. 0ompany will compensate the amount to society. This is a small way

to show the gratitude and the companyHs concern towards the employee and their

family.

WELFARE SCHEMES FOR EMPLOYEES

The AARTI INDUSTRIES LIMITED also provides some welfare schemes for

their employees so that they can help their employees in some or the other ways.

!ed claim of employees*

)ersonal accident*

-mployees #Nlink insurances scheme*

Group gratuity scheme*

"chool admission*

$ousing admission*

0ycle loans*

=.I.0 through salary.

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PERFORMANCE APPRAISAL

)erformance %ppraisal is the procedure of evaluating employeeHs performance

of their employment in terms of their requirement for purpose of administration

including placement selection for promotion need for training* providing financial

rewards* etc. o firm has a choice as to whether it should or should not appraise

their employees. (ust as training is required to be endowed after recruitment of the

employees* performance appraisal is also to be expected.

In AARTI INDUSTRIES LIMITED* 0onfidential !ethod is used for

performance appraisal of an employee. Mor the performance appraisal of the

employee* the superior or head of the department prepares questionnaires* which is

to be filled by their subordinates. In this report the employee describes his

strength* weakness* attitude to work* intelligence* attendance work efficiency* etc.

?ith the help of this report* the top level can get the complete idea regarding the

employee and his performance in the company. $e can take decision regarding

promotion* financial rewards* increments* etc. with the help of the information in the

report. ?hatever is the relation of the superiorN subordinate they both have to asses

each others performance with complete purity and without any biasness. The

assessment of the executive done by their subordinates and that of the

subordinates or the nonNexecutive done by their executives will be again assessed

by the superiors.

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OB9ECTIVE OF PERFORMANCE APPRAISAL

The objective of performance appraisal of the AARTI INDUSTRIES LIMITED

is as follows

o To determine increments and provide a reliable guide for promotion and

transfer to positive of greater responsibility.

o To suggest ways of improving the employees performance when he is not

found to be up to the mark during the review period.

o To maintain individual as well as group development by informing the

employee of his performance standard.

There are two types of appraisal program in the company.

o Morm % for the executive and

o Morm 1 for the nonN executive

There is no such procedure of the appraisal but the employees are assessed

every at the end of every year. %t the end of the year the performance appraisal

program is conducted to know the performance of the employees over whole period

under review. This review states that which employees who are efficient in their

work and needs promotion and that the employees who are incompetent and who

needs training to become effective in the work done by them.

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SELFAPPRAISAL

@T* $" 6i(("& $% App#ai"

:?hat are the responsibilities of your job@

:?hat do you consider the key areas of your present job@

: In your view what are the major contributions6improvement made by you to the

organi'ation during the period under review

:?hat are the areas where you could not achieve your desire goal@ ?hat were

the reasons@

:?hat would you consider as your important achievement* 0ontribution or

improvements in the next month* K months P one year@

:?hat will be the action plan do you decided to achieve the target@

: In order to achieve the specified targets that help do you need from the

organi'ation@

:%re there any intimate problems ;)ersonal or /rgani'ational> which are likely to

come in your way in achieving the enhanced target@

:?hat coNordination problems have you faced with your colleagues* other

department* etc. in the organi'ation@


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:?hat training you had in last C8 months@

:#o you have any suggestion for improvement in our organi'ation@

:%re you satisfied with your job* working condition and organi'ation@

:#o you think you need any training* )lease specify@

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• The reimbursement or the )ayment of entire amount alleged for the

parents mediclaim and any other will be paid after necessary enquiry

and confirmation of matter and documents.

• The working of the department is that five members committee would be

formed among the employee for the scheme with sanction of majority*

for one year.

/ut of the members of committee two personals are authori'ed to pay the

sum as per official mode. These members are having all the powers of

scrutini'ing the matters and checking of documents before giving the

payment to employees.

%ll the contribution collected from employees as well as from company onmonthly basis is to be deposited in society in a separate bank account

maintained for the purpose. %ll the claims should be settled out of the

funds in decided bank account.

ature of expenses and diseases should be modified as per consideration

of facts with the prior effects of six months from the date of amendments

done.

%ll the payments should be paid through cheque after authori'ation of all

the committee members.

1efore finali'ing the draft of the scheme* the scheme should be approved

by the senior $# personal of the company.

SOCIAL RESPONSIBILITY

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monetary incentives to their employees to motivate them to opt for birth control and

also to cast their vote during local* 2idhan "abha and =ok "abha elections.

The 0ompany also provides employees with3

• ,niforms* safety shoes* rainy shoes* and raincoats

• Tea allowance* food allowance* and milk allowance

• 0ycle and vehicle loans

• !arriage gifts* loans for pooja and festivals

• Minancial assistance to cover disaster relief* funeral expenses*

• and medical expenses including hospitali'ation for those not• 0overed under the -"I" scheme.

EMPLOYEE WELFARE EXPENSESP'-"! L#


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The aim of %I= is to extend their support to a variety of recipients so that as

many as possible can benefit from the companyHs financial contributions.

COMMUNITY WELFARE EXPENSES

Total donations in 844O 4D3 s K*C*O7

Total donations in 844D 4K3 s C*48*D44

Mrom the scores of organi'ations the AIL have donated funds to* a few are

mentioned below3

EDUCATION AND RESEARCH RELATED6

• %shadham "eva !andal

• $irji 1hojraj P "ons &.2./. (ain 0hhatralaya

• %divasi -ducation and 0haritable Trust

• !umbai ,niversity Institute of 0hemical Technology

• %ssociation for esearch in $omeopathy

• ural %gro esearch P #evelopment "ociety

HEALTHCARE RELATED

• 2ishwas $ospital Trust

• "hushrusha 0haritable Trust

• 1idada "arvodaya Trust

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• Tibetan !edical and %stro Institute

• $iraN!ongi avneet $ospital* !ulund

• )arakh $ospital* Ghatkopar

SOCIAL WORK AND CULTURAL ACTIVITIES RELATED

• &algad "arvodaya Trust

• "hri ?agad "arvodaya Trust

• #hanvallabh 0haritable Trust

• "hri 2ardhman "eva "angh

• Geetai !ission

• ovadan Trust

• )eopleEs Trust

• 0hild elief and

•

&utch !ahila 2ikas "anghatan ;involved with social empowerment of women>

• "hri !ulund &.2./. "amaj

• Gandhi =abour Moundation

• =ionEs 0lub of !ulund

• GiantEs Group of !andvi N &utch

• Gramin 2ikas "amiti ;involved with rural development>

• Gram "waraj "amiti ;involved with rural development>

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• &utch

• The Gujarat 0hief !inisterEs elief Mund

• 1hojay "arvodaya Trust ;-arthquake relief in &ashmir>

• &utch avnirman %bhiyaan ;ehabilitation of earthquake affected people

in &utch>

T!" i((a/" i+ UTCH a&*p)"& $% AARTI INDUSTRIES LIMITED

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SUPPORTING ECONOMIC AND INDUSTRIALDEVELOPMENT IN VAPI

%t AIL* 2api* they believe in actively coNoperating with neighboring industries

to address common concerns and solve 1usinessNrelated problems. The #irector of

AIL* !r. &irit !ehta* is the )resident of the V#0" I!+%,-"'% A%%"#," (VIA>.

$e leads the association and takes the necessary initiative for getting basic

common facilities for the members. $e also handles the task of making

representations to various bodies for problems related to roads* water supply*

electricity* pollution control* etc. that obstruct the smooth conducting of business.

!r. !ehta is well respected for his contributions towards the development of the

chemical industries in 2api.

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CORPORATE SOCIAL RESPONSIBILITY POLICY (CSR)

%t AIL* the 0orporate "ustainability #epartment* consisting of a team of senior

management headed by the companyHs !anaging #irector* monitors the companyHs

0" P sustainability strategies and their implementation. The department meets

regularly to review compliance with the companyEs 0" policy across the different

units and to take informed decisions on related key issues.

CORPORATE GOVERNANCE

%t AIL* integrity* transparency and social responsibility form the core of their

corporate behaviour and characteri'e the way in which they interact with all those

who have a stake in the companyHs success and with the world at large. Mor AIL*

corporate governance is not a discipline imposed by a egulator* but something

that stems from the culture of an organi'ation. The principles of corporate

governance guide the companyHs 1oard of #irectors* management and the AIL%

people to create long term sustainable value for their stakeholders.

AIL3% 1oard of #irectors consists of a team of technocrats* engineers and

management graduates having rich experience of more than two decades in the

Industry. AIL% C8Nmember 1oard of #irectors has both -xecutive and onNexecutive

#irectors. The board also comprises of an environment consultant* a solicitor* an

advocate and a chartered accountant as Independent #irectors.

The AIL has two 1oard committees N the %udit 0ommittee and the "hareholders

Grievance 0ommittee. The 1oard has laid down a 0ode of 0onduct ;posted on our

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website ;111.aa#)i/#*p.'*> for all the directors and senior management of the

company.

AIL3% 0orporate Governance framework ensures3

• "ound corporate practices based on integrity* transparency*

accountability* fairness and professionalism N values that are important

for sustained growth* increased efficiency and stakeholder confidence.

• Timely flow of information to the 1oard and its committees.

• % sound system of internal control and supervision of business

operations.

• 0ommitment to good $ policies

• Independent verification of the 0ompanyEs financial* and 0" P

sustainability reporting

• Timely disclosure of information to all our stakeholders

• 0ompliance with applicable laws* guidelines and regulations

The people at AARTI INDUSTRIES LIMITED commit themselves to 0orporate

"ocial esponsibility ;0"> by conducting their business activities ethically through

a fair and balanced approach* and by being socially responsible and responding to

legal* social P ethical issues arising from their commercial activities.

The people therefore pledge to work towards continual progress in the

following areas3

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• especting their organi'ationEs philosophy and striving to be recogni'ed

as a good and esteemed corporate citi'en.

• 0omplying with legal requirements* wherever they operate.

• #eveloping and supplying useful P safe products and improving the

quality of their products and services to be able to contribute to the

progress of society.

• 0onducting business transactions based on fair and free competition.

• "triving to make their workplace vibrant to become an employer of choice

and focusing on acquiring advanced professional skills P expertise in their

field of responsibility.

• )rotecting the environment* optimi'ing resource consumption and

ensuring the safety of their people.

• "upporting human rights* and actively communicating with the companyHs

stakeholders to understand and respect their interests* thus serving and

contributing to their development.

• %chieving sustained growth and profitability.

%t AIL* the people shall strive to promote 0" activities to maintain a balanced

approach towards economic goals* safety* quality* the environment and the interests

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of society* through an effective monitoring of the companyHs performance on key

issues covered by the 0" programme.

AARTI INDUSTRIES believe that these initiatives will help them achieve

sustainable development and be recogni'ed as a responsible corporate citi'en*

consequently enabling our company to emerge as a modern and global company.

STRATEGY FOR CSR

AARTI INDUSTRY has few strategies for embedding 0" P its sustainability

into their business activities. The AIL% strategies for integrating 0" P

sustainability into their management processes and day to day activities are based

on our core values and the principles of the , Global 0ompact. The company

people are aware that by making 0" P sustainability an integral part of their

business strategy they will be able to protect the quality of the companyHs business

activities* their decisionNmaking processes and their capacity to create value for

their own company and also their valuable stakeholders.

To reach out to AARTI INDUSTRY LIMITED employees* customers and

communities and show their concern for the environment* the AIL3

• -mphasi'e that 0" is a shared responsibility for every member of the AIL

family.

• eward creativity and leadership skills and provide ample opportunities for

personal P professional growth.

• )romote team spirit and learning of new skills.

• ,phold human rights and the dignity of every employee.

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FINANCE DEPARTMENT

INTRODUCTION

+Financial Management is concern with the efficient use of an important

economic resource* namely* 0apital funds.”

SCOPE FINANCE DEPARTMENT

In AARTI INDUSTRIES LIMITED the Finance Department deals with the

problems of rising funds and there effective utili'ation in the business. 2arious

decisions regarding3

• %cquisition of assets.

• "pecific form of assets where money to be invested.

• 0omposition of its liabilities.

=iabilities are covered under the scope of Finance Department. The three

functions covered all most all finance functions of an organi'ation. %nd effect the

three major decisions they are3N

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o Investment #ivision

o Minance #ivision

o #ividend #ivision

FINANCIAL FUNCTION

Mind the cheapest source of finance.

-ffective utili'ation of money.

0apital is raised through issue of shares* debentures interoperate

deposits* financial* institutions* commercial papers* etc.

egotiations with suppliers.

RESPONSIBILITIES OF FINANCE MANAGER

$e keeps all the data related to finance and sees that the fundsorgani'ation is utili'ed in the most efficient manner.

$e is the most important person in shaping the future of the company

and has a vital role in decision of the allocation of capital.

owadays finance manager solves important managementproblem and his role is becoming pervasive and significant;

FUNCTIONS OF FINANCE DEPARTMENT AT AIL

/verhead payment like salary* wages etc.

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0ash management.

0alculation of interest payment.

)reparing bank reconciliation statement

)ayment like )M* income tax.

!aintaining accounting record.

In AARTI INDUSTRIES LIMITED )rocure finance from the following 1anks

and finance Institutions3

1%& /M 1%/#%

,I/ 1%& /M I#I%

"T%T- 1%& /M I#I%

I0I0I. -T0

B#%"% O7 A>+"-"4 L#%

1anks and institutions give loans on basis of net Q worth. ;et Q ?orth U

0apital S et eserve>

-") U profit 6 o. /f "hares ;-arning )er "hares>

0urrent atio

#ept Q -quity atio

D"5"!'! O7 S-'%

1oard /f director decides the percentage of dividend.

)ercentage of dividend depends on profit.

#ividend is not an expense but profit distribution.

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S&-, ,'- %+-'%

I. Internal

#epreciation funds )rovision for taxation

%ccrued expenses

II. -xternal

1ank credit

!anaging director or directors

?hen a company is going to prepare any new project the company has toconsider the following aspects.

? cost of project

? !eans of finance

? Minancial highlights

? )roduct and capacity

"ources of funds

,se of funds

? )rojected performance

? -xisting term loan commitments

? -xisting ?.0. facilities

? )roposed financial assets? Introduction of product

? 0ompany background

? Technical aspects

? Industry description

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? )roduct description and demand supply position.

STRUCTURE -

PRAGATI SHARMA

CHAIRMANCHAIRMAN

MANAGING

DIRECTOR

MANAGING

DIRECTOR

VICE

PRESIDNTVICE

PRESIDNT

GENERAL

MANAGER

DEPUTY

GENERAL

MANAGER

ACCOUNT

OFFICER

CASHER


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AARTI INDUSTRIES LIMITED had declared an interim dividend of CDF. The

directors of AIL now recommend a final dividend of 8CF for the year ended Cstmarch 8448. Total dividend for the year would thus be K F and the total dividend

payment would be s. OC7 lakhs subject to declaration of final dividend at %nnual

General !eeting.

ACCOUNTING DIVISION8The books to be maintained in AARTI INDUSTRIES LIMITED are as follows3

"ales accounting

)urchasing accounting

1ank Transition

0ash Transition

#ebit notes

(ournal voucher

Mrom the above all books* the only description of some books are given below.

RESPONSIBILITY OF FINANCE MANAGER

PRAGATI SHARMA

FINANCEEECUTIVE

ACCOUNTASSISTANT


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$e keeps all the data related to finance and sees that the funds organi'ation

is utili'ed in the most efficient manner.

$e is the most important person in shaping the future of the company and

has a vital role in decision of the allocation of capital.

owadays finance manager solves important management problem and his

role becoming pervasive and significant.

SALES ACCOUNTING

Mollowing is the sales procedure prevailing at the AARTI INDUSTRIES

LIMITED;

!arketing department gets purchase order through negotiation.

a. Indent is sent the dispatch section. Indent consist of terms of

payment* partyHs name* details regarding the goods rate* excise* sales

tax transaction* credit period discount ;if applicable>.b. #ispatch section contract finish goods* stores so that they can supply

the necessary material.

c. Minished goods stores communication with excise department and

they carry on their necessary procedure.

d. )reparation of sales registers* ledger account* trail balance* etc. "ale

keeps management information system ;!I">.

!I" contains information relating to receivable and salesNproduct wise and

quantity wise.

PURCHASE ACCOUNTING6

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Mlow and documents in purchase accounting is as follows3

S,'0 1

To receive all invoice from purchase department.

To receive all !... from stores department.

To receive all purchase order from purchase department.

S,'0 2

To match this document with each with each other.

To attach copy of )./ and ! with invoices.

S,'0@

To process the invoice after comparing the same with ! and )/.

To forward the document to senior manager for management check.

S,'0

-xecutive to hire second check to ensure correctness and accuracy.

To put his6her initials on the rubber stamp at the place market for the

purpose.

To forward the document to senior manager for management check.

S,'0

"enior manager to check the document from various angles to ensure

total control.

To put his6her initials on the rubber stamp at the place marked for the

purpose.

To forward the document to account assistant for data entry.

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OTHER INFORMATION6

0orporate dividend tax means tax on dividend payable by the corporate.

)ercentage of transfer to general reserve is based on criteria decided by

companyHs %ct.

#eferred liability means liability* which is to be paid at later stage.

ate of department according to income tax is different than that of

company act.

#epartment not the actual expense but hidden profit.

?a(a+'" !"") *6 AARTI INDUSTRIES LIMITED

A *+ :9) a#'! 200;.

Lia$i(i)i" A*+) A") A*+)

SHAREHOLDERS

FUND FIED ASSETS

S!a#" 'api)a( :0>7920

G#* ?(*'

:7729;27


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N") W*#i+/ Capi)a( 29:97;022

MISCELLANEOUS

EPENDITURE

@T* )!" ")"+) +*) 1#i))"+ *66 *#

a&)"&

P#"-*p"#a)i" Ep"+" NIL

D"6"##"& R""+" Ep"+&i)#" 9;2;=


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P-, L%% A+, 7- ,&' .'#- '!'! @1%, M#-& 2

I0/!-

I+'*" 6#* *p"#a)i*+ 7,7,90,02

I+'#"a" i+ i+"+)*#% 220,;92,;0<

TOTAL ,9:0,07:,77;

-V)-#IT,-Ma+6a')#i+/ Ep"+" ;,7

P#'!a" *6 G**& T#a&"& I+ =0,:,;2;

A&&8 ?a(a+'" *6 P#*6i) a+& L* A''*+) ?#*/!) F*#1a#& 9,;:7,:


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Ea#+i+/ P"# S!a#"

RATIO ANALYSIS

% atio is simply one number expressed in terms of another* it is an expression

of relationship spelt out by dividing one figure by another. The ratio analyses of the

AARTI INDUSTRIES LIMITED are as follows3

CURRENT RATIO6

0urrent atio U 0urrent %ssets 6 0urrent =iabilities

844D U *D9*K77*OD 6 C*CK8*598*8D5 U 8.779

844K U O*878*DC8*9KD 6 C*OK5*9*9O U 8.5CO

INTERPRETATION3

% current ratio establishes the relationship between total current assets and

current liabilities. % current ratio of 83C is considered ideal as a rule of thumb. The

ratio of %I= is 8.5CO3 C* indicating a very comfortable liquid position.

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L">+"! R#,"6

=iquid atio U =iquid %ssets 6 =iquid =iabilities

=iquid %ssets U current %ssets Q stock

=iquid =iabilities U current =iabilities Q 1ank overdraft

844D U *D9*K77*OD Q 5D4*78*5K7 6 C*CK8*598*8D5

U 8*O4K*7KO*OK9 6 C*CK8*598*8D5 U 8.4K5

844K U O*878*DC8*9KD Q C*8CK*O9C*958 6 C*OK5*9*9O

U *4KK*4O4*59 6 C*OK5*9*9O U 8.47K

INTERPRETATION3

This ratio is establishes a relation between absolute liquid assets to liquid

liabilities. The ideal ratio is 83C and liquid ratio is 8.47K3C. It is means the liquidity

position of the company is satisfactory.

N', 0-, R#,"6

et profit atio U et profit WC44 6 "ales

844DU O98*8K9*7CO WC44 6 K*7DO*99C*47C U K.775

844KUDD*7D9*44D WC44 6 9*7KC*9D4*OK9 U 9.4O

INTERPRETATION3

It expresses the relationship between net profit and sales. This ratio shows a

better profitability of the firm as compared to the whole industry. This suggests a

satisfactory position.

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R',+- #0",#* '0*.'!6

eturn on capital employed U et profit WC44 6 "hare capital S

eserves P "urplus S =ong term loan

844D U O98*8K9*7CO WC44 6 8*8O5*C8O*97

U 84.559

844K U DD*7D9*44D WC44 6 *44O*CK8*CD

U C7.OK

INTERPRETATION3

The standard return on capital employed is about CDF. eturn on capital

employed ratio is C7.OKF. These indicate the higher productivity of the capital

employed.

D'+",. R#,"6

#ebt -quity atio U =ong term debt 6 "hareholderHs fund

844D U 8*8O5*C8O*97 6 8*4D9*755*9CO U C.458

844K U *44O*CK8*CD 6 8*7K*D77*78C U C.8D7

INTERPRETATION3

It expresses the relationship between debt and equity. The standard debtNequity

ratio is 83C. It means for every 8 share there is C debt. The debtNequity ratio is

C8D.7F* this indicates that the states of longNterm creditor are move and indicates

week financial structure.

PRAGATI SHARMA


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C#0",#* T+-5'- -#,"6

0apital Turnover ratio U et sales 6 Total 0apital -mployed

844D U K*7DO*99C*47C 6 O*D4O*4C7*5D5 U C.D8C

844K U 9*7KC*9D4*OK9 6 D*KD4*5D7*5CK U C.5C

R',+- S-' &*!'-% 7+!6

eturn on "hare holderHs fund U -arning after tax WC44 6

"hare holderHs fund

844D U O98*8K9*7CO WC44 6 8*4D9*755*9CO U88.5DF

844K U DD*7D9*44D WC44 6 8*7K*D77*78C U8.84F

F"/'! A%%',% T+-5'- -#,"6

Mixed %ssets Turnover ratio U et sales 6 et 1lock

844D U K*7DO*99C*47C 6 C*7KC*OO7*999 U .K78

844K U 9*7KC*9D4*OK9 6 8*85D*D4*KD U .O8D

INTERPRETATION3

The ratio establishes a relationship between the fixed assets and sales. The

standard fixed turnover ratio is D times. % high ratio indicates better utili'ation of

fixed assets. % low ratio indicated under utili'ation of fixed assets. "o the

companyHs ratio indicates underNutili'ation of fixed assets.

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N', W-"4 C#0",#* T+-5'- R#,"6

et ?orking 0apital Turnover atio U et sales 6 et ?orking 0apital

844D U K*7DO*99C*47C 6 8*C5O*9CK*C9K U .C8

844K U 9*7KC*9D4*OK9 6 8*7C*C9D*488 U 8.95O

INTERPRETATION3

The term working capital refers to excess of current assets over current

liabilities. This ratio establishes a relationship between working capital and sales.

This ratio enables to know efficient utili'ation of working capital of an organi'ation.

PRAGATI SHARMA


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S!a#"!*(&i+/ Pa))"#+ *6 AARTI INDUSTRIES LTD a O+

:9) Ma#'! 200<

AUTHORIZED CAPITAL6

5* 44* 44*444 -quity "hares of s. D6N -ach

ISSUED SUBSCRIBED PAIDUP6

9* 87* 45*O8O -quity "hares of s. D6N -ach fully paid up

MARKET PRICE DATA6

PRAGATI SHARMA

M*+)! ?*$a% S)*' E'!a+/" Na)i*+a( S)*' E'!a+/"

Hi/!@R. L*1@R. V*(" Hi/!@R. L*1@R. V*("

Ja+ 200< 9


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SHAREHOLDING PATTERN AS ON @1ST MARCH 2

DISTRIBUTION OF SHAREHOLDING AS ON @1ST MARCH

2

PRAGATI SHARMA

Ca)"/*#% N*. *6 S!a#"

P#**)"# I+&ia+ :272>>.=;

?*&i" C*#p*#a)" 97 900.00


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CHARTS

TOTAL INCOME

EARNING PER SHARE

PRAGATI SHARMA

2:.0<8O.5

4.48

C8.97W

K.9OX

4

D

C4

CD

84

8D

4

D

; % m o u n t i n u p e e s >

844CN48 8448N4 844N4O 844ON4D 844DN4K

844CN48 8448N4 844N4O 844ON4D 844DN4K


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PROFIT BEFORE AFTER TAX

DIVIDEND PAYOUT

PRAGATI SHARMA

8.79

85.C8

OC.4D

C.DD

D4.4K

5.DK

D7.8

O9.8

9C.K8

DD.5

4

C4

84

4

O4

D4

K4

94

74

; u p e e s i n 0 r o r e s >

844CN48 8448N4 844N4O 844ON4D 844DN4K

844CN48 8448N4 844N4O 844ON4D 844DN4K


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NET WORTH

BOOK VALUE

PRAGATI SHARMA

C8.9D

COO.DK

C98.85

84.5D

8D.85

4

D4

C44

CD4

844

8D4

; u p e e s i n 0 r o r e s >

844CN48 8448N4 844N4O 844ON4D 844DN4K

844CN48 8448N4 844N4O 844ON4D 844DN4K


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PRAGATI SHARMA


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MARKETING DEPARTMENT

IT/#,0TI/ /M !%&-TIG

The dictionary definition of !arketing is selling* advertising* promotion* etc.

!arketing affects our day to day life in whatever we do right from buying vegetables

clothes or grocery items. The most eyeNcatching and best quality is that towards

which everyone is attracted. %nd to make the product eyeNcatching and sell your

product in the market what you need to do is marketing of your product.

!arketing is nothing but a consequence of a cautious planning which is to be

done by the people of the company for making their product a success and that to

sell or market their product in the market. Things done with awareness and

complete homework with all the right calculations and complete knowledge the new

developments and happenings in the market would result in the excellent marketing.

owadays the organi'ations have started concentrating on the different ways inwhich they can cater a maximum number of the customers and also how they can

promote their products.

The same is in the case AARTI INDUSTRIES LIMITED. The AIL tries its best

to satisfy their customers by providing with the best quality products. AIL considers

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quality of its products as the companyHs biggest strength. The AIL by giving the

proper amount of pricing of its products is able to cater a good amount of

customers for the company.

The consumers are at the present time are becoming more and more aware of

the products availability. The customers are becoming choosy and not only

concentrate on the products quality but also on how the companies present their

products in front of them. The customers very carefully observe the features*

design* pricing* and others. 1y observing each of the details of the product the

customers tries to make perception of the product and then try the product. In

todays competitive world satisfaction of the customer is the most important job of

the companies. "o in todayHs time the marketing is done according to the needs

wants and the demands of the customers so that whatever the customers needs

that is produced to make the customers satisfied.

AARTI chemical is basically manufacturer of chemical products and the

company has a number of chemicals that are manufactured in the company. 1eing a

chemical company* consumers may not be directly using AIL3% products* and it may

be difficult to see how the chemicals the AIL produce enrich the lives of people. 1ut

the AARTI INDUSTRIES do contribute towards improving their quality of life since

the end users of their products are industries ranging from agrochemicals and dyes

to speciality chemicals and pharmaceuticals N markets that are critical to longNterm

sustainability. 1y supplying high quality and good value products to their

customers* the AARTI INDUSTRIES LIMITED indirectly help people to have

access to better medicines* fertili'ers and diverse items of daily use. In other words*

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greening the supply chain management plays a significant role in AIL% business

strategy.

AIL% prime activity is to manufacture organic chemicals* mainly ben'eneN

based intermediates. They also manufacture sulphuric acid and allied products*

which provide basic building blocks to most sectors of the chemical industry.

%s the companies seeks for the company who provide quality products and

that the quality products are been produced by the AIL. AARTI INDUSTRIES being

a chemical manufacturing company manufactures ben'ene based products and that

the distribution of the products of the company is as follows3

o D4F exported

o 4F for sister concern

o 84F other companies

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D4F of the manufacturing of AIL% products is exported to the foreign

countries.

4F of the AIL% products is used by the sister concern of the AIL.

84F of the manufacturing of the AIL is being sent to the Indian market.

THE COMPETITORS OF AARTI INDUSTRIES LIMITED.

The competitors of AARTI INDUSTRIES LIMITED are as follows3

%lankar Industries

%nami /rganics

%purva chemical

0hirag /rganics )vt =td

&amala Intermediates

ascent 0hemical Ind. =td

!icro Mine

"hanti Intermediates )vt =td.

2api %cid P chemicals

2api /rganic 0hemical )vt =td

THE CUSTOMERS OF AIL

The customers of the AIL are many in India as well as in the abroad.

NAME OF THE COMPANY PRODUCT#r eddy #!"

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1harat chemicals )0)

"ister concern #rugs P /rganics

?hile trading abroad the AARTI INDUSTRIES LIMITED markets its product tothe -uropean countries the most.

#uring the year under review* the company has achieved "ales turnover of s.

97K.C7 crores. ?hile in the previous year the sales turnover was s. K7D.O9 crores*

registering a growth of CO.K5F.

THE SUPPLIERS OF AIL

There are many companies in the suppliers list of the %I= but some of them

companies that supply chemical raw materials to %I= are as follows3

NAME OF THE COMPANY PRODUCT

"tandard %lkaline G"0 0hlorine

eliance (amnagar P $ajare 1en'ene

#eepak nitrite nitric %cid

,daipur rock phospect

•

eliance Industries =td.• 1harat )etroleum 0orporation =td.

• ational /rganic 0hemical Industries =td.

• "tandard %lbalies =td.

• ational ayon 0orporation =td.

P

Project Report Aarti Vapi

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