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    INDEX

    SERIAL

    NO.PARTICULARS

    PAGE

    NO.

    1 GENERAL INFORMATION 2

    2 PRODUCTION DEPARTMENT 13

    3 HUMAN RESOURCE DEPARTMENT 28

    4 MARKETING DEPARTMENT 41

    5 FINANCE DEPARTMENT 54

    6 SWOT ANALYSIS 70

    7 SUGGETION 71

    8 CONCLUSION 72

    9 BIBLOGRAPHY 73

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    GENERAL

    INFORMATION

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    CONTENT

    Sr. No. PARTICULAR PAGE No.

    1 Company profile 4

    2 Vision & mission 7

    3 Milestone 8

    4 Size & form of the organisation 10

    5 Organisation structure 11

    6 Future plans & Achievement 12

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    COMPANY PROFILE

    Name of the unit : - Austin Engineering Company Ltd.

    Year of the

    Establishment : - 1973

    Form of

    Organization : - Medium Scale

    Registered Office : - Austin Engineering Co. Ltd.

    Dist.: Junagadh

    Tal. : Bhesan

    Patala 362 030

    Address of Junagadh

    Office : - 101, G.I.D.C. Estate,

    Vadal Road,

    Junagadh 362 003.

    Phone Numbers :- (91-285) 2660144, 2660069

    Fax Numbers :- (91-285) 2661505

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    E-mail Address :- [email protected]

    Auditors :- Dhirubhai Dand & Co.

    Chartered Accountants

    Gokul Chamber,

    Junagadh 362 001.

    Cost Auditors :- S.B. Parikh & Co.

    Cost Accountants,

    Vadodara.

    Bankers :- Bank of Baroda, Junagadh.

    Registrar & Transfer

    Agent :- Sharepro Services,

    Satam Estate,

    3rd floor,

    Above Bank of Baroda,

    Cardinal Gracious Road,

    Andheri (E)

    Mumbai 400 099

    mailto:[email protected]:[email protected]
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    BOARD OF DIRECTORS

    Mr. N.C.Vadgama : Chairman & Executive Director

    Mr. S.M.Thanki : Managing Director

    Mr. R.N.Bambhania : Joint Managing Director

    Mr. J.R.Bhogayta : Executive Director

    Mr. S.V.Vaishnav : Non Executive Director

    Mr. B.R.Sureja : Non Executive Director

    Mr. K.J.Mehta : Non Executive Director

    Mr. D.B.Nakum : Non Executive Director

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    VISION

    Always improve continuously Utilize resources in most efficient way

    Be versatile to adopt changes

    Serve society in most efficient manner

    MISSION

    To implement the ISO/ TS 16949 quality system

    To increase the marketing capability up to 2100 mm

    diameter

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    MILE STONE

    1973

    Partnership firm formed by five technocrats.

    Started manufacturing needle roller cage assemblies with the manpower of 10

    and the capital investment of 3500 US Dollars.

    1980

    Manufacturing capacity of all aforesaid bearings increased up to 150mm

    diameter.

    1982

    Started supplying bearings for gear box application to Premier Automobiles

    Limited (FIAT-Italy Collaboration) for passenger cars.

    1984

    Started supplying case carburized specially heat treated ground components

    (exclusive supplier) and King-pin bearings to TELCO for light and heavycommercial vehicles.

    1985

    Converted into Public Limited Company and offered shares to public.

    1986

    Started New Plant (Unit II) with installation of machinery and

    testing/measuring equipment imported from Germany. Started exporting

    bearings to developed countries such as UK, USA, and Italy.

    1987

    Started manufacturing import substitute bearings for military tanks and armed

    vehicles of Indian Defense Department.

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    1990

    Increased manufacturing capacity to 600mm diameter. Started manufacturing

    double row tapered and spherical roller bearings.

    1991

    Awarded indefinite rate contract with All India State Road Transport

    Undertakings (ASRTU) for 78 sizes of bearings for their passengers vehicles.

    1997

    Started manufacturing flush ground single row angular contact ball bearings

    for US and European Markets.

    1998

    Started production of four row tapered roller and mutli-row cylindrical roller

    bearings for roll-neck application in steel plants.

    2000

    Established AEC Europe S.R.L in Milan, Italy.

    2002

    Developed stainless steel (Grade 440C) bearings (for Atomic Energy Plant).

    2003

    Developed and supplied Screw Down bearing (equivalent to Torrington 202

    TTSX 942 EE2000).

    2004

    Developed Slim bearings (Constant Section Bearings) up to 18 inch.Established Accurate Engineering Inc. (WOS of AEC Ltd.) in USA.

    2006

    Awarded ISO/TS 16949:2002 Certification for design and manufacturing of all

    type of rolling bearings from TUV Rheinland.

    2008

    Developed crossed cylindrical and tapered roller bearings.

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    SIZE AND FORM OF THE ORGANIZATION

    On the basis of size, there are mainly three size of organization.

    1. Large Scale Organization

    2. Medium Scale Organization.

    3. Small Scale Organization

    AEC is a Medium Scale unit as it has 7 caroreS of equity equipment

    and machinery .And it has employed 655 workers.threfpre we can say that

    AEC is a LARGE scale unit. The form of organisation can be classified as

    under:

    FORM OF OWNERSHIP

    Sole proprietorship

    Partnership

    Co-operative society

    Company

    Pvt. Ltd

    Public Ltd.

    Government

    As far as the Austin Engineering Company Limited is a public

    limited company because it has element of public limited company. It is an

    incorporated association which is an artificial person created by law having a

    common seal, different capital ,transferable share, limited liability, wide

    distribution of risk and large membership etc.

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    ORGANIZATION STRUCTURE

    An organization is group of people working together towards to achieve

    one or more targeted Goals. A good organization structure is the basis of

    any successful organization for an effective system There are mainly following

    type of organization structure.

    Types of Organization Structure

    As far as AEC Co. Ltd. Is concern it has adopted Line & Staff

    organization Structure. In this type of structure line of authority &

    responsibility moves downward. Here individual & a group of specialists

    advise the line officer for the special aspects. It would be clear by following

    organization.

    LINE

    ORGANIZATION

    FUNCTIONAL

    ORGANIZATION

    STAFF

    ORGANIZATION

    DIVISIONAL

    ORGANIZATION

    LINE &

    STAFF ORG.

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    FUTURE PLANS

    Due to nature of confidentiality, it is obvious that an organization

    may not find it appropriate. Certain key plant, however the management of

    AEC ltd shared the following information.

    Development slewing rim bearings for heavy earth moving &

    construction equipment

    Increase adherence to the training calendar

    Reduce new development cycle time, machine idealness, electrical

    & mechanical breakdowns Etc.

    ACHIVEMENT

    Back up roller bearings for sendzimei cold strip mills

    Multi raw cylindrical roller bearings & for two tapered roller

    bearings for roll neck, application in rolling mills.

    Flush ground single row angular contact ball bearings.

    Precision class cylindrical roller bearings for machine tools

    spindle application.

    Flexible roller bearings

    Thin series ball bearings

    Large diameter, spherical roller thrust bearing

    Moreover, the co is having 9001: 2000 certificate

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    PART- 1

    PRODUCTION

    DEPARTMENT

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    CONTENT

    No. PARTICULAR PAGE No.

    1 Product 15

    2 Product Range 16

    3 Production capacity 17

    4 Production Process 19

    5 Material Handling System 25

    6 Quality Control 27

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    PRODUCT

    This company is mainly produced 4000 to 4500 types of bearings

    which are available in 20000 varieties or sizes. The main product is as

    under.

    1) Single Raw deep grove ball bearing

    2) Single Raw angular contact ball bearing

    3) Double Raw angular contact ball bearing

    4) Self aligning contact ball bearing

    5) Tharst ball bearing

    6) Spherical roller bearing

    7) Cylindrical roller bearing

    8) Needle roller bearing

    9) Cylindrical &needle roller bearing

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    PRODUCT RANGE

    There are varieties of bearings that are right now in existence. They can be classifiedaccording to the size and use of it. In the world market, 20,000 types of bearings are

    traded and used. Specifically AEC ltd. produces around 4,500 different types of bearings.

    It is produced following type of bearing are as under.

    1. Ball Bearing,

    2 . Roller Bearing.

    3. Spherical roller bearing (SRB)

    4. Taper roller bearing (TRB)

    5. Cylindrical roller bearing (CRB)

    6. Needle roller bearing (NRB)

    7. Flexible roller bearing (FRB)

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    PRODUCTION CAPACITY

    Production capacity of AEC. Ltd. As follow

    Installed Capacity: 3500 PER DAY

    Utilized Capacity : 3500 PER DAY

    Capacity: 10 mm ID to 1200 mm OD

    Current working at: 10mm ID to 900 mm OD

    SUPLLIERS

    1) Mahindra & Mahindra Ltd-steel bars

    2) Indian Seamless Metal type ltdsteel pipe

    3) Social steel ltd-Roller Material

    4) Needumeelbra Industries ltd.-steel rolls

    5) Sanjay udhyog-Brass Cages

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    PRODUCTION PROCESS

    Raw material purchase

    Testing of raw material

    Cutting & Turing of roller

    Assigning Hardness to races

    Grinding of Races

    Facing & lapping process

    Super Finishing

    Pressing

    Inspection & Grading

    Assembling, Cleaning & Branding

    Storage & Dispatch

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    1) Collection of Raw Material

    Accumulation of raw material is the first and for most stage in

    production. In raw material of Austin Engineering Co. Ltd. we can include

    following.

    Steel bars & tuber

    Steel wire

    Steel balls

    CRCA Sheets

    Rollers

    Tapers etc.,

    For ensuring the smooth production without break, enough stock of

    different raw material should be kept ensure starting from the steel bar to oil.

    2) Testing of Raw Material:

    The second stage of manufacturing process of Austin Engineering

    Co. Ltd. is the testing of raw materials, which have been purchased from the

    different suppliers. They are having total 68 machines as a measuring &

    testing instruments. But here the raw materials are tested whether there is

    any defect in the material or not quality of raw material is checked here & if

    there is any defect it is rejected at this stage only to avoid future accidents.

    Many workers are engaged in testing the raw materials with the use of various

    machines & hand meters.

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    Hardness Test :

    The hardness is assigned to the races. Now it is checked through

    hardness tester machine. The hardness range is 59 to 65 HRC.

    Softening :

    As the hardness test is made, with the help of Continuous Tempering

    Machine adequate & required softness is assigned to the races.

    5) Grinding of Races:

    At this stage hardness is already assigned to the races & rollers. Due

    to this process races are turned in to rough black materials. This operation is

    performed for the following reasons.

    Giving them a particular shape, if there is anydeviation.

    It assigns brightness to outer & inner.

    If is necessary to decrease the chances of crack in

    future.

    Here the races & rollers are kept in to a particular machine, which is

    imported from Germany. Races are passes through one kind of oil i.e.

    Cutting Oil A constant flow of this oil is there in the machine. In this process,

    water is also used. Constant rotation of water in this flow is there. This is

    known as Collant Flow.

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    6) Facing & Lapping Process:

    Here races are twisted round in the proper manner. This process is

    done manually. If there is any mistake found by skilled workers then finishing

    is given to minimize the chances of interior quality production. Here in

    Austin Engineering Co. Ltd. there is a particular machine shop for facing

    the races & rollers. It is necessary to find out any defect of formal operations.

    7) Super Finishing:

    Now the final material are given super finishing process in which the

    races & rollers passes through mto / kerosene rotation through machine.

    8) Pressing:

    In this department workers press the bearings with help of different

    machines. The department is having 3 or 4 machines for this process.

    9) Inspection & Grading:

    Now all the components of bearing are produce. The inspection

    department makes final inspection. So that quality of the bearings can be

    assured. For that Magnetic creak detection is done.

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    10) Assembling, Clearing & Branding :

    Now final inspection & grading is made to all the components of

    bearings. The next step is to assemble them in a proper way.

    Fixing the roller in cages.

    Fixing the cage in between inner & outer races.

    By this way finally bearings has been produced. This stage is totallyperformed manually through skilled workers only. After assembling properly

    the bearings are sent for clearing and final oiling is needed. Finally bearings

    are sent to the packing department. Packing is made according to the

    customer specification. If the product is made for export then wooden packing

    is made otherwise box packing is made. At last trade mark of the company

    AEC designed on the packing. Size and quality of the bearing are also written

    on it.

    11) Storage and Dispatch:

    The finished products are stored in to the go down. The storage is

    done in different package, plastic package or wooden package as per

    specification.

    Dispatching is made as per the order of marketing department.

    Bonded Store Room take the decisions regarding dispatch. As per the ISO

    and TS they check once or twice in a year that the material stored is

    displaceable in future or not. Bonded storeroom department inform the excise

    department about such audit made by them.

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    Storage & Material Handling:

    All the raw materials, which are received, shall be stored in stores

    before issuing them to the production department. Follow the procedure ofreceipt storage & issue of material. In process material movement & storage

    procedure should be followed. Store all the finished bearings at Bonded Store

    Room.

    Packing & Material Handling :

    All the finished bearings & components should be packed as per the

    specification given in the packing work instruction. This is responsibility of

    assembly supervisor. In RMS materials, which are to be packed, are

    inspected as per plan.

    Preservation & Material Handling :

    Rust preventive oil is applied to avoid rust formation in bearings. Then

    after it is wrapped sealed in pouch & put it in carton. Specified shelf life

    material shall be done on FIFO basis. Material beyond the specified limit

    should be use after approval of HOD.

    Delivery & Material Handling :

    AEC transports material or product to the customers premises

    through approved transporter. Approve transporter includes all the supplier

    of the company details of dispatch have been kept with the marketing

    department.

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    QUALITY CONTROL

    The maintenance of the quality is very important for a reputed firm.When the product of the company is proved qualitative, the company should

    maintain the same quality standard, because it is useful in creation of

    customers, to increase market share, to stay in competitive etc.

    Here, Austin Engineering Company Ltd. has given special attention

    on the quality of the product. It is also an ISO 9001:2000 awarded company

    because of its quality. Moreover, they have developed a QUALITY POLICY

    for better quality control. The company is also having certain testing

    instruments for testing the product at different levels. The product process

    includes five inspection stages which show the companys efforts to maintain

    its quality. Thus, there is a great attention given to quality control in the

    company.

    Testing instruments

    Spectrometer

    Micro handless tester

    Magna field crack detection

    Carbon-supper apparatus

    Surface roughness tester

    Roundness tester

    Electronic comparator

    Air gauge comparator

    Dial calibrators

    Redial clearance measuring instrument

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    PART-2

    HUMAN RESOURCE

    DEPARTMENT

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    CONTENT

    Sr. No. PARTICULAR PAGE No.

    1 Introduction 30

    2 Organisation of personnel 31

    3 Recruitment and selection 32

    4 Training and management development 35

    5 Promotion and transfer policy 36

    6 Performance appraisal system 38

    7 Wages and salary 39

    8 Grievance handling procedure 40

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    INTRODUCTION

    In any organization management of people plays an important role to

    be success in the competition. Personnel management refers to management

    of personnel. We know the important component of an organization is its

    human resources or personnel.

    It is important branch of knowledge, most of the progressive

    organization having separate department, and they are appointing the expertas personnel managers. The success of any organization depends upon

    workers and therefore it is considered as

    Mind your men and Men will mind all other things.

    This management of personnel is done by personnel department. In

    AEC LIMITED also there is one separate personnel department and it is

    handled by the personnel managers. Personnel manager manages the

    problem of personnel and also does activities of recruitment, selection,

    training, wages and administration etc. of personnel.

    Manpower is like a blood in the business. The management of men is

    very challenging job because it is a job not of managing a man but of

    administrating a social system. Personnel management has a vital importance

    in modern industrial organization. Personnel department is the part of

    management which is primary concerned with establishment and

    maintenance of personnel relations.

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    ORGANISATION OF PERSONNEL

    Personnel management is a very important and challenging job

    because it is a job only of managing men but also of administrating a social

    system. Each and every company needs faithful handling of personnel who

    cannot be operate like a machine.

    ORGANIZATION STRUCTURE

    Chairman

    Managing director

    General Manager

    Personnel Manager

    Personnel time public chief time

    Officer officer officer

    Assist. Personnel chief time

    keeper

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    RECRUITMENT AND SELECTION

    Recruitment and Selection

    To fill the vacancy in the organization recruitment and selection is

    done.

    RECRUITMENT:

    Recruitment is the process of searching for prospective

    employees and stimulating them to apply for the job.

    Recruitment is the positive process. There are mainly 3 methods of

    recruitment viz,

    Direct method

    Indirect method

    Third party method

    There are 2 sources of recruitment

    1) Internal sources

    2) External sources

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    If company adopts internal source of recruitment then recruitment is

    done within the organization, and if company adopts external source for

    recruitment then employees are recruited from outside.

    The best internal source is promotion and external sources are

    advertisement, trade unions, schools, colleges etc. In AEC Limited

    recruitment is done from colleges i.e. campus placement. And promotion is

    based on the performance not on the basis of seniority.

    In Austin Engineering Co. Ltd. the sources of general recruitment &

    selection is done for recruitment of top or executive level and theadvertisement is given in leading newspaper like The Times of India, Indian

    Express.

    This company adopted direct & indirect method both as per need.

    When recruitment procedure is completed, selection procedure started.

    Selection means appointment of a proper candidate for the right post.

    S ELECTION:

    After the ending of recruitment process the selection process start.

    According to Dale Yoder:-

    Selection is the process in which candidates for employment are

    divided into two classes.

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    Those who are to be offered employment.

    Those who are not.

    Thus the selection is hands of the management of differentiate the

    qualified and unqualified applicants by applying various techniques.

    In AEC LIMITED for different posts different applications forms are

    there with each application form are assessment sheet is there which is

    assessed by the interviewer at the time of interview. They adopt the simple

    policy for general post means there is no lengthy process for selection forselection of general post. After this, they issue an official form for

    selected persons. If the person wishing to work he will sign this offer by this

    way the person is selected.

    Procedure for selection :-

    1. To give advertisement2. To receive application

    3. Checking of reference

    4. Final selection

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    TRAINING AND MANAGEMENT DEVELOPMENT

    TRAINING:

    Every organization needs to have trained and experienced employees

    to perform the activity that have to be done. Employees training for

    development are not only an activity that an organization must it. Training and

    development of personnel is a follow up of selection. It is an improvement and

    enhancement of different type of skills so that employee can perform their

    jobs effectively. There are two types of training methods.

    On the job training

    Off the job training

    In on job training persons are trained during the working hours. no,

    extra time is given for that on the job training. In AEC LIMITED departmental

    head and welfare officer handle the training. Training is given whenever

    required at least once in a year training is given to each employee.

    The employees of AEC Limited gave training twice in a year. Training

    is related to their job profile, service to customers, and knowledge about new

    products. This training is given by senior officer of AEC LIMITED.

    DEVELOPMENT:

    Development is long term education process utilizing systematic and

    organized procedure by which managerial personnel learn conceptual and

    theoretical knowledge for general purpose Development is a process by

    which managers & executives acquire not only skills & competency in their

    present jobs, but also capabilities for future managerial tasks.

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    PROMOTION AND TRANSFER POLICY

    PROMOTION

    A promotion may be defined as

    An upward advancement of employees in an organization to

    another job, which commands better wages, better status and higher

    opportunities, responsibilities and authorities, better working

    environment hours of works and facilities etc.

    A promotion is a vertical move in rank and responsibilities while a

    transfer a horizontal movement of an employee from one job, section,

    department, to another at the another place where his salary, status,

    responsibilities are the same.

    The promotion means to do upliftment of an employee within the

    organization. At this stage employees wage & salary, status, prestige moves

    towards the top level. Their thinking is also increasing up in his duties &

    opportunities.

    A promotion is a vertical upward, movement in rank &

    responsibility.

    In AEC they give promotion on the basis of capability of employees

    with the purpose of proper candidate on proper post. Secondly on the basis of

    previous work, history & performance of the employees he will be promoted

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    PERFORMANCE APPRAISAL SYSTEM

    Performance appraisal is the process of evaluating the performance

    and qualification of the employees in terms of the requirement of the job for

    which he is employed, for purpose of administration including placement,

    promotion.

    There are so many methods to appraise the employees but AEC

    LIMITED system to appraised the employees are as under.

    Grading

    Graphing rating scales

    Critical incidents

    Group appraisal

    Field review method

    Accounting method

    They measure the skills, experience, ability, discipline, attendance,

    regularity, and give this report to the head and this report is useful in

    promotion etc. thus they determine the performance appraisal.

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    WAGE AND SALARY

    Wages usually refers to an hourly rate paid to such groups such as

    production and maintenance employees. On the other hand salary refers to

    the monthly rates paid to professional employees.

    Austin Engineering Co. Ltd. Administration is totally computerized and

    according to time keeping system, the wages and salary of the employees are

    paid. Wages and salary of the employees is fixed. Increment is given on thebasis of performance & efficiency.

    The wages & salary given to employees is Rs. 3, 46, 90,800 which

    includes directors remuneration Rs. 31, 63,200.

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    GRIEVANCE HANDLING PROCEDURE

    It is not always happens that all the workers working in the organization

    satisfied with the policies procedures of the company when there is room for

    upward communication. It is easy to know the grievance. Grievance is any

    dissatisfaction in connection with ones employments situation that is bought

    to the attention of the management.

    Grievance is written complaint filled by employees in respect of wages,

    allowances, job assignment, and transfer etc. that is dispute to employees.

    The steps of the grievance handing procedure are as follows.

    (1) Any dissatisfied employee can fearlessly approach his

    immediate boss with the reason for his dissatisfaction. The immediate boss

    then replies within a week.

    (2) If the employee feels that reply is not satisfying he could

    approach his department head who toot his best to solve the dissatisfaction

    mostly grievances are handled at his stage.

    (3) The worker can also approach the general manager directly or

    through the union. But it is hardly require in the process.

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    PART - 3

    MARKETING

    DEPARTMENT

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    CONTENT

    Sr.No.

    PARTICULARS PAGENo.

    1 Introduction 43

    2 Organisation of marketing

    department

    44

    3 Product Planning 46

    4 Production mix 47

    5 Price and distribution decision 48

    6 Production Related Strategies 49

    7 Market segmentation 50

    8 Advertising & Consumer behaviour 51

    9 Competition 52

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    INTRODUCTION

    Marketing is a social & managerial process by which individualsand groups obtain what they need and want through creating, offering and

    exchanging products of value with others.

    -PHILIP KOTLER

    Marketing is beating heart of any business organization.

    Marketing occupies an important position in the organization of any

    business unit. Marketing means working with markets to actualize potential

    exchanges for the purpose of satisfying human need & wants.

    MARKETING IS THE ANALYSIS, PLANNING, IMPLEMENTATION

    AND CONTROL OF PROGRAMMES DESIGNED TO BRING DESIRED

    EXCHANGES WITH TARGET AUDIENCE FOR PERSONAL & MUTUAL

    GAIN.

    Each and every organisation has to make marketing efforts so, all

    marketing decision has its own importance in the efficiency and source of

    any organisation.

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    ORGANISATION OF MARKETING DEPARTMENT

    An organisation is the rotation co-ordination of activity of number ofpeople for the achievement of some common objective. Marketing

    organisation is made up people activity, responsibilty, authority and

    relationship for the purpose of achieving marketing objective.

    The company has adopted mixture of line and staff organisation. It

    is vertical line of authority same as other department. Sales direction is on

    a top position who looks after all the activity of marketing department and

    also responsible for the result under him there is a general manager who

    guides and directs the sales department.

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    ORGANISATION CHART

    Chairman

    Marketing director

    Marketing Manager

    Asst. Marketing Manager

    Sales officer

    Dispatch clerk Sales man

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    PRODUCTION PLANNING

    The base of any product before launching into market is its marketing

    strategies, which depends on the analytical survey of the similar kind of

    product with the competitive companies.

    In AEC whether they want to take any decision regarding products,

    they always perform product research and accordingly they formulate

    strategies.

    A well planned product strategy depends on the analytical data from

    the market which in turn give the benefit to both the customer & the sellers

    along with the stock holder of the company, in consideration. Every product

    moves to lifecycle stages. it gives the sales revenue and profit margin history

    of product their stages are :

    1) Introduction

    2) Growth

    3) Maturity

    4) Decline

    This time companys products are passing through growth stage and

    bearing is heart of any vehicle and machine. So, there is no any substitute of

    bearing, we can say that demand may not be decline. It will increase so far as

    companys product life cycle is concerned. AEC gives 12 months guarantee

    for bearing.

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    PRODUCTION MIX

    Product mix refers to the set of items offered for the sale by a particular

    business house. It represents each & every product lines & products in each

    line separately. The product mix of Austin consists of 1800 items.

    The whole 1800 types of bearings are divided into two main product

    lines viz,

    1. Automobile bearings

    2. Industrial bearings

    This is the broad classification of the bearings on basis of the use to

    which they put on. If we consider the different industries the Austin produces

    for textile industries to the machine industries.

    Hence it can be said that Austin is having a unique product mix, which

    only proves profitable for the firm but also assist the country in the

    development process.

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    PRICING & DISTRIBUTION DECISION

    Pricing Decision

    Price is the exchange value of the product and services expressed in

    terms of money. Decision about pricing is considered important aspect for

    success of marketing of any product for an organization. Various factors are

    taken into consideration while pricing.

    Objective of the business

    Estimated demand

    Cost of production

    Competition

    Distribution policy

    Distribution Decisions:

    The production is centralized while the consumption decentralized this

    requires a particular channel which enable the consumers to obtain product

    from the producer.

    Distribution channel is such an organized channel consists of various

    middlemen. The distribution can be direct or indirect Austin sell its 40%

    product directly to the CEM50% of its production sold through the dealers &

    10% product is exported.

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    The foreign customers of AEC are mainly from following countries:-

    U.S.A.

    U.K.

    Italy

    Sudan

    Pakistan

    Shrilanka

    Nether land

    Bangladesh

    South Arabia

    The co. Export its 50% of its total production which earn valuable

    foreign exchange

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    CONTENT

    NO. PARTICULAR PAGE No.

    1 Introduction 56

    2 Organisation of financial department 57

    3 Financial planning 58

    4 Capital structure 59

    5 Capitalisation 60

    6 Management of fixed assets 61

    7 Ratio analysis 62

    8 Working capital Management 67

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    INTRODUCTION

    Financial management is the managerial activity, which is concerned

    with planning and controlling of firms financial resources. As we know that

    this discipline is on resent origin, financial management consist of two words

    mainly finance and management

    Finance may be defined as firm that important resources which are

    required at all the stage of different activity on the other hand management is

    process of planning, organizing, directing and controlling. IT is worth to note

    down that managerial functions are applied to the finance. It means planning

    & controlling activities of finance is major activity under the financial

    management.

    According to Hogard, Financial management is the application of

    planning & controlling functions to the finance functions.

    From above definition it is quite clear that effective utilization of funds

    iS major concerned from financial manager. Needless to mention that finance

    plays every vital role in any organization.

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    ORGANISATION OF FINANCIAL DEPARTMENT

    Organization of finance department means that division Tandclassification of various functions that are to be perform by the financial

    department. Because of importance of financial department it is necessary to

    setup sound & effective organization chart depends generally subject to

    change. Internal factor such, as size and nature of the business and external

    are tax policy etc.

    Austin Engineering co. Ltd. has following organization of financial

    department.

    FINANCE DEPARTMENT

    Chairman & Director

    General Manager

    Finance Manager

    Accountant Financial Officer

    Excise Clerk Accountant Clerk

    Organization of finance department means that division and

    classification of various functions that are to be perform by the financial

    department. Because of importance of financial department it is necessary to

    setup sound & effective organization chart depends generally subject to

    change. Internal factor such, as size and nature of the business and externalare tax policy etc.

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    FINANCIAL PLANNING

    Planning always plays an important role for arranging different activityof the organization. As planning determine future course of action in present.

    Financial planning relates with financial activities of the organization. More

    clearly Financial planning means deciding in advance, the financial activities

    to be carried on to achieve the basic objectives of the firm.

    Definition

    The process of estimating the funds requirements of a firm and

    determining the sources of funds is called financial planning.

    (I M PANDY.)

    Above definition simplifies that financial planning relates with

    determining the future course of action related with financial department.

    Financial planning or plan can be formulated for different period of as

    following.

    Long Term Planning

    Medium Term Planning

    Short Term Planning

    Austin Engineering Co. Ltd. has good financial planning. Bank of Baroda

    provides finance to the company. In long term planning this company think

    about expansion of business & modernization of company. They decide thefinancial activities from the following manners.

    G.S.I. Loan

    Cash Credit Facility

    Over Draft Facility etc.

    With the help of all these means plus the share capital packing facility,budget of all expanses are being settled.

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    CAPITAL STRUCTURE

    Capital structure is completely different from Capitalization capitalstructure refers to the make up of its Capitalization. Capital structure is the

    permanent financing of firm represented by long term debt, preferred stock

    and net worth. Capital structure is used to represent the proportionate

    relationship between debt & equity. Capital structure also includes loans,

    bonds, share issued, reserves etc.

    Capital structure of Austin Engineering Co. Ltd. is perfectly

    maintained. No shortage of capital is aroused because of enough capital. The

    company has enough capital resources whenever it is required. So, company

    has no problem about capital structure.

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    CAPITALISATION

    Capitalization means total among of long term funds available to the

    company which includes shares and debentures, issued by the company and

    also long term loans taken from financial institutions. As far as earned profits

    remained to be distributed are concerned or it is necessary to classify them as

    either capital surplus or revenue surplus. The amount of capitalization should

    be only that much which can be justified by the profits and by the normal rate

    of return for the industry.

    Over Capitalization:

    A company is said to be over capitalized if its earnings are less in

    relation to its capital investment. The company may be having a low earning

    capacity. Thus, it results in over capitalization.

    Under Capitalization:

    A company is said to be undercapitalized if its earnings are more in

    relation to its capital investment. Under capitalization is an indication of

    effective and proper utilization of funds employed in the business. Under

    capitalization indicates sound financial position and good management of the

    company.

    Austins earnings are Rs. 3, 73, 10,646 and investment is Rs. 12, 47,

    61,492. Thus, earnings are less than investment. So we can say that the

    company is over capitalized.

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    MANAGEMENT OF FIXED ASSETS

    Assets, representing economic resources, are the valuablepossessions owned by the firm. These possessions owned by the firm should

    be capable of being measured in monetary terms. Assets are of two types:

    TANGIBLE ASSETS:

    They are the assets which have physical existence and generate

    goods and services. It includes land, machinery, equipment, furniture etc.

    INTANGIBLE ASSETS:

    They are the assets, which do not generate goods and services directly

    and have no physical existence. It includes patents, copyrights, goodwill,

    trademarks etc.

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    RATIO ANALYSIS

    Financial Ratio is most frequently and widely used in practice to assess

    a firms financial performance and condition. Ratio analysis is a powerful tool

    of financial analysis. Ratio can be defined as the indicated quotient of two

    mathematical expression and as the relationship between two more things.

    In actual position there are many ratios, which can be found out. Here

    mainly 8 ratios are defined and found out from the data of Austin Engineering

    Co. Ltd

    CURRENT RATIO

    Meaning :

    Current ratio is the most common ratio for measuring liquidity. Being

    related to working capital analysis it is called the working capital ratio.

    Purpose:

    The current ratio of a firm measure short term current financial liquidity

    .

    PARTICULAR 2009 2010 2010 2011

    Current Assets

    Inventories 284664968 254321914

    Sundry Debtors 179198533 151569700

    Cash & Bank Balance 17883875 64391467

    Loan & Advances 63106942 54261808

    TOTAL 544854318 524544889

    Current Liability

    Liability 169730997 132349343

    Provision 45724425 43789818

    TOTAL 215455422 176139161

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    Current Ratio = Current liability

    Current Assets

    2009 -2010 = 534102425 = 2.6 :1

    215455422

    2010 -2011 = 524544889 = 2.98 :1

    176139161

    Interpritation :

    The ideal ratio considered to be 2:1.the above calculation shows that

    the current ratio of the company is 2.6:1 and 2.98:1, in the year march 2009

    and march 2010 Respectivly.Here Companys good position in all two years.

    QUICK RATIO

    Meaning:

    When liquidity is highly restricted in terms of cash and equipment, this

    ratio should be relationship between cash and near cash items on the one

    hand.

    Purpose:

    To measure more rigorous of a firms liquidity position.

    Quick Ratio = Quick assets

    Quick liability

    2009 2010 = 248586120 = 2.22 :1

    25455422

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    2010 2011 = 270222975 = 1.53: 1

    17613961

    Interpritation:

    A quick ratio 1: 1 is good for the company. Here in this company this

    ratio is greater than these norms. But last three years it is decreasing, yet it is

    not need to worry about it is because it is yet above norms.

    PROPRIETARY RATIO

    Meaning.

    This relates the shareholder fund to total assets. it is variant of the debt

    equity ratio. This ratio shows the long term or future solvency of the business.

    Purpose:

    It indicating available to creditor and general financial strength of the

    firm.

    PARTICULAR 2009-2010 2010 2011

    Shareholders Fund

    Capital 35112500 34778000

    Reserve 304198833 367104781

    Total 339311133 401882781

    Total Assets 698415831 678351780

    Proprietary ratio = shareholders fund

    Total assets

    2009 2010 = 339311133 = 0.44: 1

    698415831

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    2010 2011 = 401882781 = 0.59: 1

    678351780

    Interpretation:

    This ratio shows the general position of the company is very important

    to creditors as is help to find out the proportion of shareholder fund in the total

    assets used in business. Higher ratio indicates a secure position to creditor.

    DEBT EQUITY RATIO

    Meaning:

    Financing of total asset of business is concern is done by owners

    equity as well as outside debt. This ratio indicates d the relative proportions of

    debt and equity in the financial assets of the firm. It is known as external

    internal ratio. Debt equity ratio is determined to ascertain Soundness of long

    term financial policy of firms.

    PARTICULAR 2009 - 2010 2010 2011

    Long term Debt

    Secure loan 135446717 93064494

    Shareholders Fund 248586120 270222975

    Debt Equity Ratio = Long Term Debt

    Shareholders Fund

    2009 2010 = 135446717 = 0.54:1

    248586120

    2010 2011 = 93064494 =0.34:1

    270222975

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    Interpretation:

    It measures the ratio of long term or total debt to shareholder equity. A

    high ratio shows a large share of financing by the creditor of the firm.

    A low ratio implies smaller claim of creditor. If the debt equity ratio is

    high the owners are putting up relatively less money of their own. It is danger

    signal for the creditors. Here debt equity ratio 54% in 2009 and 34% in 2010,

    which is shows good financial position of the company.

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    WORKING CAPITAL MANAGEMENT

    Working capital is what makes a company work. It is just not

    possible to carry on the business with only fixed assets. Working capital is

    must. In adequacy of working capital chocks any business to death. Working

    capital is also called as "circulating capital" it is that pail of capital, which is

    require to purchase current assets i.e. to meet regular & recurring needs of a

    business firm like rent, advertising, power & so on.

    A sound working capital management policy is one which

    ensures "Higher profitability & proper liquidity." The goal of working capital

    management is to ensure that the firm is able to continue its operations and

    that it has sufficient cash flow to satisfy both "Maturing short term debt &

    upcoming operational expenses" In AEC ltd the position of current assets &

    current liabilities is as follow.

    Particular 2009-10 2010-11

    Current assets

    Inventories 285,516,305 254,321,914

    Sundry debtors 164,825,535 151,569,700

    Cash & bank

    balance

    19,178,538 64,391,467

    Loans & Advances 64,582,047 54,261,808

    534,102,425 524,544,889

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    Current liability

    Liabilities 169,730,997 132,349,343

    Provision 45,724,425 43,789,818

    Net working capital = Current assets - Current liabilities

    2009 10 = 534,102,425 215,455,422

    = 318,647,003

    2010 - 11 = 524,544,889 176,139,161

    = 348,405,728

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    OPPORTUNITIES

    The company can achieve the top place from the 4 th among the

    manufacturers of bearings by some improvement in the department.

    The company has great opportunity to expand for the business

    by taking benefit of its largest product range in the Asia.

    The company can increase their sale & can have wide market

    network.

    THREATS

    A serious threat is being faced from imports due to decline in

    duty rats.

    The manufacturers are facing a threats from the spurious partsmanufactured who manufacture duplicate parts & sell them in the name of

    popular brands I the replacement market at a very low price.

    Steel & alloy steel are basic raw material for bearing industry &

    their prices are expected the upward trend in coming future.

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    SUGGETION

    Reinforcement activities. I.e. share job related strengths and

    weakness.

    Goal setting, goal to each shift and duration to accomplish the

    same. Creation of healthy and competitive environment.

    Training program to motivate and improve their soft skills,

    problem solution skill, positive attitude, proper approach and behavior.

    Participative environment through team building and group work.

    Appreciation of accomplishment informally and frequently.

    Motivate employees to give their ideas and views by awarding

    them best suggestion awards.

    Arrange meeting once in a month to give chance to raise their

    voice to all the employees.

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    CONCLUSION

    An easy start, smooth drive fuel economy and minimum maintenanceis what a machinery owner wants. But all this is possible provided the right

    qualities of bearings are used. Having already given their customers the

    choice of the best branded bearings. AEC Limited has now come out with the

    best bearings with magic to keep their engines young forever!

    AEC Limited is giving constant training to all the employees. From the

    interaction, interview with all the employees. I have given some suggestions

    which have accepted by the company.

    I am really indebted to the staff of AUSTIN and all our professors who

    are our future builders in true sense.I think that the future of the company will

    bright.

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    BIBLIOGRAPHY

    Books refer:

    Finance Management

    1. Khan and Jain, Financial Management, 3rd edition, Wiley

    India

    2. I.M. Pandey, (2010) 11th edition, Vikas Pub.,New Delhi

    Marketing Management

    Philip Kotler, and Kevin Keller, 13 th edition, Pearson

    Education

    Human resource management

    Gupta, C.B. (2007). Human Resources Management,

    S. Chand & Sons, New Delhi pg. 9 -18

    K. Aswathappa, Human Resource Management, 5 th

    edition, Tata Mc Grow Hill

    Annual Report of Austin Engineering Co.Ltd.

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    Milestone last retrieved 01/07/2011 from

    http://www.aec-bearings.com/company.html

    Product Range last retrieved 01/07/2011 fromhttp://www.aec-bearings.com/products.html

    Journals published by the AEC Limited.

    Web Sites:

    http://www.aec-bearings.com

    http://www.aec-bearings.com/company.htmlhttp://www.aec-bearings.com/company.htmlhttp://www.aec-bearings.com/products.htmlhttp://www.aec-bearings.com/products.htmlhttp://www.aec-bearings.com/http://www.aec-bearings.com/http://www.aec-bearings.com/http://www.aec-bearings.com/products.htmlhttp://www.aec-bearings.com/company.html