Professional Documents
Culture Documents
Engineering REPORT
Engineering REPORT
PROJECT REPORT
ON
SIEMENS INDUSTRIES
PROJECT GUIDE: TEJAS PAREKH
(MBAGJ0042)
PAREPARED BY: MAULIK PARMAR
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
DECLARATION
I hereby declare that the project entitle TIME A& MOTION STUDY
Submitted in partial fulfillment of the requirements for award of the
degree of MBA at BARODA Institute of Technology, affiliated to Sikkim
Manipal University, Sikkim, is an authentic work and has not been
submitted
to
any
other
University/Institute
for
award
degree/diploma.
MAULIK PARMAR
(140202869)
MBA, BARODA INSTITUTE OF TECHNOLOGY
Sikkim Manipal University
VADODARA, GUJARAT
ACKNOWLEDGEMENT
of
any
INDEX
SR. NO.
PARTICULER
PAGE NO.
DECLARATION
ACKNOWLEDGEMENT
REVIEW OF LITERATURE
13
28
COMPANY PROFILE
30
34
DIRECTORS REPORT
36
MANAGEMENTS DISCUSSION
39
10
AUDITORS REPORT
55
11
57
12
RATIO ANALYSIS
66
13
FINDINGS
95
14
FINDINGS
96
15
RECOMMENDATIONS
97
16
SUGGESTIONS
98
17
BIBLIOGRAPHY
99
18
FINANCIAL HIGHLIGHTS
100
INTRODUCTION TO
THE TOPIC
Introduction
Objective of Productivity
To bring technological change
Efficiency
Cost Saving
Improving process
Living standard
The communication
between
workers and
management influences workers morale and
productivity. Workers are motivated through a
good working relationship with management.
Title Justification
The topic study of workers productivity shows the
productivity of workers during their work time. The topic
suggest about the per unit wages of workers means it
defines their idle hour and working hours. Time and
motion study is one of the methods for study the
productivity of workers in industry. This project helps
workers as well as employer to increase productivity in
their organizations. Hawthorne experiments also give
methods to study productivity by its experiments. The
study of workers productivity mainly depends upon the
output which he provides to the organization by his
efforts.
&
Motion
Study
and
COMPAN
Y
PROFILE
ABOUT COMPANY
Indias progress as a nation involves finding sustainable
solutions to challenges such as ever-growing demand
for energy, higher industrial productivity, modern urban
infrastructure and high-quality healthcare.
Siemens
Sheet
Employees
Fact
19,000
12
Existing factories
22
Sales offices
56
Centers of competence
R&D centers
11
SMART products
31
SIEMENS in India
Siemens heritage in India dates right back to 1867
when it began laying the worlds first undersea cable
from London to Kolkata.
Timeline
1867
Laying of the first trans-continental Indo-European
telegraph line between London and Kolkata, personally
supervised by Siemens founder Werner von Siemens.
1922
Siemens India founded with headquarters in Kolkata.
1956
Sets up assembly and
Mahalaxmi Bridge, Mumbai.
repair
workshop
under
1957
Sets up a full-fledged manufacturing unit at Worli,
Mumbai, for switchboards. Incorporated as Siemens
Engineering and Manufacturing Company of India
Private Limited
1959
Healthcare equipment manufacturing commences at
Worli, Mumbai.
1960
Switchboard production at Kolkata (later shifted to
Andheri in 1963)
1962
Commences railway signaling equipment at Worli,
Mumbai.
1964
New complex at Kalwa founded for switchboard,
switchgear and motor factories (expanded in 1973-75)
1966
Manufacture of motors commences at Kalwa.
1967
1971
Lists on the stock exchanges.
1977
Manufacture of industrial
commences at Worli.
electronics
equipment
1980
Manufacturing of switchboards at Joka
1981
Assembly of switchboards starts at Nashik.
1987
Modern
Nashik.
industrial
electronics
production
starts
at
1991
New switchgear
Aurangabad.
1995
(low-voltage)
factory
set
up
at
1994
Sets up facilities for manufacture of optical fiber cable
and solar photovoltaic systems at Aurangabad.
1998
High-voltage
switchgear
production
starts
at
Aurangabad. Siemens Hearing Instruments Pvt. Ltd
formed.
2004
Corporate Technology Center, a hub for technology R&D
for Siemens worldwide, set up in Bangalore
2005
Small turbines production starts at Vadodara.
2006
50th year of manufacturing in India
2009
Produces first 145kV gas insulated switchgear (GIS)
from
the
recently-inaugurated
GIS
factory
at
Aurangabad. Starts gas-insulated switchgear unit in
Aurangabad. Merges Siemens Building Technologies
with itself.
2011
Rolls out worlds first 1200 kV SF6 circuit breaker from
Aurangabad factory. Crosses Rs 100 billion in revenues.
Announces amalgamation of Siemens VAI Metals
Technologies Pvt. Ltd. and Morgan Construction
Company Pvt. Ltd. Merges Siemens Healthcare
Diagnostics with itself.
2012
Twin-factories in Goa for energy automation and
medium voltage. Announces amalgamation of Siemens
Power Engineering Pvt. Ltd.
Businesses of
company
Electrification, automation and digitalization are the
long-term growth fields of Siemens. In order to take full
advantage of the market potential in these fields, our
businesses are bundled into nine divisions and
healthcare as a separately managed business.
Mobility
Efficient and integrated transportation of people and
goods by rail and road all products, solutions and
services regarding mobility are handled by the Mobility
Division.
What we do
Maintenance
infrastructure
and
service
of
vehicles
and
What we do
Wind Power
Energy Management
The Energy Management Division is one of the leading
global suppliers of products, systems, solutions, and
services for the economical, reliable, and intelligent
transmission and distribution of electrical power.
What we do
What we do
Building Technologies
Building Technologies is the world market leader for
safe, energy efficient and environmentally friendly
buildings and infrastructure. As a technology partner,
consultant, service provider, system integrator and
product supplier, Building Technologies offers fire
safety,
security,
building
automation,
heating,
ventilation and air conditioning (HVAC) as well as
energy management products and services.
What we do
Digital Factory
The Digital Factory (DF) Division offers a comprehensive
portfolio of seamlessly integrated hardware, software
and technology-based services in order to support
manufacturing companies worldwide in enhancing the
flexibility and efficiency of their manufacturing
processes and reducing the time to market of their
products.
What we do
What we do
Corporate Management
Christian Rummel
Mr. Christian Rummel earned his German High school degree and
graduated in Business Management (Industriekaufmann). He has been
with Siemens for over 24 years during which he has held various
management positions. Mr. Rummel began his career in Siemens AG as
a Commercial Apprentice in 1989 and soon thereafter took over the
role of Finance Manager Sales (Power Transmission & Distribution),
Mannheim, Germany. In 2004, he was appointed as Vice President Finance & Business Administration, Energy Sector, Germany and in
2006 as Managing Director & Chief Financial Officer, Audiology
Solutions Business Unit, Healthcare Sector, Germany. Mr. Rummel was
till recently the Senior Vice President & Chief Financial Officer,
Molecular Imaging, Healthcare Sector since 2009 based in USA.
Innovations
Innovation has always been the key to our success. Building on our
strength of innovative strength, we have 32,300 researchers working
on new solutions for energy, industry and healthcare and more than
1,000 research partnerships with universities, research institutes and
industrial companies around the world.
Innovations for the Environment - Protecting the world climate with a
green portfolio
Drive systems
Energy Management and consulting
Mobility solutions Parking and Traffic management systems, Rail
automation and electrification, High-speed trains etc.
Building Technologies Energy-saving performance contracting,
Building modernization, components for heating, ventilation and airconditioning
Lighting Energy saving lamps, Light emitting diodes, etc.
Refurbished systems
CT Scanners
Magnetic resonance imaging
Environmental Sustainability
Economic Sustainability
Social Sustainability
Our Values
Our Vision 2020 is paving the way to a successful future. And to make
it happen, were focusing on three topics:
A clear mission
A consistent strategy
Even the best strategy cant succeed unless its supported by a strong
culture. Thats why we at Siemens live and foster an ownership culture
a culture that encourages every individual in our Company to give his
or her best in his or her position in order to help build Siemens longterm success. The foundation of this ownership culture is based on our
company values- Responsible, Excellence & Innovative.
Responsible
Excellence
Innovative
Our path
Vision 2020 defines an entrepreneurial concept that will enable our
company to consistently occupy attractive growth fields, sustainably
strengthen our core business and outpace our competitors in efficiency
and performance.icon link
Our culture
Our strategy
With our positioning along the electrification value chain, we have
knowhow that extends from power generation to power transmission,
power distribution and smart grid to the efficient application of
electrical energy.
Working hard to meet this demand are the thousands of milk farmers /
producers and milk of India. While close to 80 percent of these milk
farmers are located in the interiors of India, the biggest markets for
milk exist in towns and cities.
Over the years, Siemens has been a partner to the white revolution
that has transformed India. Its wide range of sustainable technologies
has helped dairy plants, milk processing units and milk cooperatives
build capacities, improve quality and help meet the rising demand of
milk in India. In turn, it has helped the cooperatives sustain the
incomes of milk farmers across the country. The dairies could now
transfer benefits from reduced operating costs, more consistent
product quality, and flexible expansion capabilities to both the
consumers and its legion of suppliers.
Siemens has been the backbone of the Indian dairy industry through its
automation systems that are widely used for dairy processing across
the country. This mainly involves the production of packaged milk, milk
powder, ice cream and other milk based products.
RESEARCH
METHODOLOG
Y
CHAPTER 4
STOP WATCH TIME STUDY AND MOST:
WORK MEASUREMENT TECHNIQUES
Sr.No
Title
Page
No.
4.1
Introduction
98
4.2
98
4.2.1
98
4.2.2
99
4.2.3
100
101
103
103
106
106
107
4.3
108
4.3.1
108
4.3.2
110
4.3.3
112
4.3.4
113
4.3.5
115
116
116
117
117
4.3.5.5
118
119
119
due allowance for fatigue and personal and unavoidable delays . ILO defines time
study as a work measurement technique for recording the times and rates of working
for the elements of specified job carried out under specified conditions, and for
analyzing the data so as to obtain the time necessary for carrying out the job at a
defined level of performance. According to Meyers (2002), time standards can be
defined as the time required to produce a product at a work station with the three
conditions: (1) a qualified, well-trained operator, (2) working at a normal pace, and
(3) doing a specific task.
Time Study Techniques/Types:
Time study is usually referred to as work measurement and it involves the technique
of establishing an allowed time standard to perform a given task, based on
measurement of the work content of the prescribed method and with due allowance
for fatigue, personal or unavoidable delays. Establishes time values are a step in
systematic procedure of developing new work centers and improving methods in
existing work centers. Chart 4.1 presents time study techniques.
Chart Time Study Techniques by Source
Sr.No
Source
Barnes, (1980)
Niebel, (1993)
Lawrences, (2000)
To do time study various experts provided with the various techniques of time study
which are summarized in chart 4.1. The time technique is discussed by five different
sources. Most of the technique had a same method but differ by name. The detail
descriptions on the techniques are shown as below:
Stopwatch Time Study Method:
Work study is divided in two groups in order to gain higher productivity. First group
is a group of method studies which are used to simplify the job and develop more
ergonomic methods of doing it. Second group is a group of work measurements which
are used to find the time required to carry out the operation at a defined level of
activity (Russell, Taylor, 2005a) .
Stopwatch time study measures how long it takes an average worker to complete a
task at a normal pace. A normal operator is defined as a qualified, thoroughly
experienced operator who is working under conditions as they customarily prevail at
the work station, at a pace that is neither fast nor slow, but representative of an
average. The actual time taken by the above-average operation must be increased, and
the time taken by the below-average must be reduced to the value representative of
normal performance. Performance rating is a technique for equitably determining the
time required to perform a task by the normal operator after the observed values of the
operation under study have been recorded (Nakayama, 2002). Hence, when a work is
measured with the stop watch device it is known as stop watch time study method.
Stop watch time study method is a technique of establishing an allowed time standard
to perform a given task with the help of stop watch along with due allowance. When a
stop watch is used as a work measurement technique to record times and rates of
working for the element of specified job carried out under specified conditions and for
analyzing the data so as to obtain the time necessary to carry a specified job at
specified level of performance is referred to as stop watch time study method.
Frederick W. Taylor started to develop time study in 1881 when he started measuring
time at a machine shop at home with stopwatch and clipboard. That was the beginning
of time study. Even Taylor used stopwatch, as basic tool for recording time, present
tools hasnt changed much. Today besides standard tools of time study, stopwatch and
clipboard, we use digital stopwatches, computers, barcodes and accustudy software
(Izetbegovic, 2007).
Evolution of Stop Watch Time Study Method:
The Chart showed the major evolution milestone of time study in the industry. This is
given according to year and the person that contribute to the evolution of the time
study technique.
Chart
Major Evolution Milestones of Time Study
Sr.No
Year
Person
Contribution
1760
Jean Rodolphe Perronet- Extensive time studies on the manufacture of No. 6 common
French engineer
pins and arrived at a standard of 494 per hour (2.0243 hrs/1000).
1820
Charles W. Babbage- an
English economist
1900-1984 Ralph M.
Barnes
(ii)
(iii) Estimating the costs of a product before manufacturing it. Such information is of
value in preparing bids and determining selling price.
(iv) Determining machine effectiveness, the number of machines which one person
can operate, and as an aid in balancing assembly lines and work done on a
conveyor.
(v)
(vi) Helps to know the Labour productivity, Labour efficiency, Labour Performance
and overall time required to perform the task.
(vii) Helps to improve the process of operation.
Procedure for conducting stop watch time study:
Generally, the following procedure is followed in conducting stop watch time study:
1. Selection of task to be timed:
Select the task or job that needs to be timed for study purpose. There are various
priorities on the basis of which task or job to be studied is selected such as bottleneck
or repetitive jobs, jobs with longer cycle time, to check correctness of existing time,
comparison of two methods etc.
2. Standardize the Method of Working:
To achieve performance standard accuracy it is necessary to record the correct
method of working.
3. Select the operator for study:
Select the consistent worker whose performance should be average or close to
average so that observed times are close to normal times.
4. Record the details:
The following information is recorded on observation sheet: Name of labour,
task/job performed, department, section of work activity, general information
about activity performed etc.
5. Break the task into element:
Each operation is divided into a number of elements. This is done for easy
observation and accurate measurement.
6. Determine number of cycles to be measured:
It is important to determine and measure the number of cycles that needs to be
observed to arrive at accurate average time. A guide for the number of cycles to be
timed based on total number of minutes per cycle is shown below in Chart 4.3.
Chart 4.3
Number of recommended cycles for time study
Minutes Per
Cycle
Number of
Cycles
Recommended
To
To
To
To
To
0.10 0.25 0.50 0.75 1.0
200
100
60
40
30
To
2.0
To
5.0
20
15
To
To
To Over
10.0 20.0 40.0
40
10
8.
9.
tool breakage etc. So some extra time is added to the normal time. The extra time
Chart 4.4
List of Major Companies using Stop Watch time study Method
List of Major Companies using Stop Watch Time
Sr.No
Study method
General Motors
Source: www.wikipedia.com
The above list is indicative and not exhaustive.
7 a, b, c
After understanding stop watch time study method section introduces MOST
work measurement technique in this section.
Concept of MOST Work Measurement technique:
MOST stands for Maynard operation Sequence technique. It is one of the
important work measurement technique used for management decisions. Work
measurement is a tool used as a basis for planning, scheduling, estimation of costs and
evaluation of performance. Motion Time Analysis (MTA) was developed in 1920.
Method Time Measurement (MTM) published in 1948 was one of the base methods
for many simplified and more efficient techniques. MOST is one of the recent MTM
based techniques that is used for work measurement. MOST is the activity based work
measurement system that enables us to calculate the length of time required to
perform a task i.e. a system to measure work. The concept of MOST was developed in
1967 and Basic MOST system was introduced in Sweden in 1972 and in the United
States in 1974. MOST is easy and faster action based system known as user friendly
work predetermined motion time system. It is a breakthrough work measurement
technique that allows a greater variety of work (both repetitive and non-repetitive) for
manufacturing, engineering to administrative service activities to be measured quickly
with ease and accuracy.
Work means exerting energy to accomplish some task or to perform some
useful activity. Physics defines work as the product of force times distance (W = f x
d), or simply work is the displacement of a mass or object. This definition applies
quite well to the largest portion of the work accomplished every day (e.g. pushing
pencil, lifting a heavy box, or moving the controls on a machine). For the
overwhelming majority of work, however, there is a common denominator from
which work can be studied, the displacement of objects. All basic units of work are
organized for the purpose of accomplishing some useful result by simply moving
objects. That is what work is. MOST is a system to measure work; therefore, MOST
concentrates on the movement of objects. Efficient, smooth, productive work is
performed when the basic motion patterns are tactically arranged and smoothly
choreographed commonly known as methods engineering. It was noticed that the
movement of objects follows certain consistently repeating patterns, such as reach,
grasp, move, and position the object. These patterns were identified and arranged as a
sequence of events (or sub activities) followed in moving an object. A model of this
sequence is made and acts as a standard guide in analyzing the movement of an
object. In other words, to move an object, a standard sequence of events occurs.
Consequently, the basic pattern of an objects movement is described by a universal
sequence model instead of random, detailed basic motions. For each type of move,
different sequence models of events occur; therefore a separate MOST activity
sequence model applies. The use of tool is analyzed through a separate activity
sequence model that allows the analyst the opportunity to follow the movement of a
hand tool through a standard sequence event which is a combination of two basic
sequence models. The technique helps in benchmarking the methods and activities
followed in various operations in the industry with world class standards. It eliminates
the subjective performance rating and has a much better acceptance of
workmen/unions because it is totally transparent and easy to demonstrate.
This concept provides the basis for MOST sequence models. The primary
work units are no longer basic motions as in MTM, but fundamental activities dealing
with moving objects. These activities are described in terms of sub activities fixed in
sequence. Therefore, it is a powerful analytical tool that helps to increase productivity,
improve methods, facilitate planning, establish workloads, estimate labor costs,
improve safety and maximize resources.
Thus a MOST work measurement technique is a complete study of an
operation or a sub operation consisting of one or several method steps and
corresponding sequence model, parameter time values and normal time values for the
operation or sub operation. It also includes the Basic, Mini, and Maxi versions; it
makes the measurement of work a practical, efficient, and inexpensive task for
manufacturing industry.
Figure
Evolutionary stages of MOST work measurement technique
Time Study
Motion Study
Time and Motion Study
Most Work
Measurement
Systems
Most Application
Systems
Most Computer
Systems
- Basic MOST
- Mini MOST
- Maxi MOST
- Clerical MOST
Source: Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.
MOST Work
Measurement
Most Application
Systems
Most Computer
Systems
Systems
------ Basic MOST (General Operations)
------ Mini MOST (Repetitive Operations)
Source: Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.
Mini MOST, within reach or a few steps with Basic MOST, and more than two steps
with Maxi MOST.
(a) Maxi MOST
At the highest level Maxi MOST is used to analyze operations that are likely
to be performed fewer than 150 times per week. An operation in this category may be
less than 2 minutes to more than several hours in length. Maxi MOST index ranges
accommodate the wide cycle-to-cycle variations that are typical in such work as
setups or heavy assembly. Even at this level, the method descriptions resulting from
Maxi MOST are very practical for instructional purposes.
(b) Basic MOST
At the intermediate level, operations that are likely to be performed more than
150 but less than 1500 times per week should be analyzed with Basic MOST. An
operation in this category may range from a few seconds to 10 minutes in length,
(Operations longer than 10 minutes may be analyzed with Basic MOST, with 0.5-3
minutes being typical cycle time for Basic MOST). The majority of operations in most
industries fall into this category. Basic MOST index ranges readily accommodate the
cycle-to-cycle variations typical at this level. The method descriptions that result from
Basic MOST analyses are sufficiently detailed for use as operator instructions.
Regardless of the cycle length, Mini MOST should also be used to analyze any
operation in which nearly all reach and move distances for an operation are less than
10 inches (25 cm). However, since its focus is on highly repetitive work within reach
of the operator, Mini MOST was not designed for analyzing operations in which the
operator action distances exceed two steps, body motions other than Bend and Arise
occur, or the weight or resistance per hand exceeds 10 pounds (5 kg). Basic MOST
would normally be used to analyze these situations.
(2) MOST Application Systems
MOST Applications assures that MOST work measurement data are obtained
and used in the most efficient and effective manner. This expertise has been applied to
a large variety of work measurement projects leading to reduced resources and
increase the immediate usefulness and long-term integrity of the data. MOST
Application Systems training is usually provided at the beginning of a data
development project.
(3) MOST Computer Systems
MOST Computer Systems can be considered a remarkable development in the
field of industrial engineering. MOST Computer systems is used to convert commonlanguage method descriptions into Completed MOST analyses. It utilizes the power of
computer in the development, application, and maintenance of both small and
extremely large collections of work measurement data.
Basic MOST Method:
The Basic MOST system is the most common and practical work measurement
system used in industries. Since the objects or materials follows General move
sequence model of Basic MOST system is used by the researcher to measure the time
required to perform activities by all the selected respondents in their respective
sections.
Sr.No
Activity
Sequence
Model
General Move A B G A B P A
Controlled
Move
Tool Use
ABGMXIA
AB G AB P _
AB PA
Sub-Activity/ Parameter
A- Action Distance
B- Body Motion
G- Gain Control
P Placement
A- Action Distance
B- Body Motion
G- Gain Control
M - Move Control
X - Process Time
I - Alignment
A- Action Distance
B- Body Motion
G- Gain Control
P - Placement
Blank Space (_) is filled with
below tool use parameter:
F-Fasten
L - Loosen
S - Surface Treatment
M - Measure
R - Record
T Think
Source: Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.
Selection of Basic MOST General Move sequence Model:
If the objects or material displacement follows spatial displacement or
unrestricted path through the air under manual control general move sequence model
is used.
Chart
Phases of Object Movements for Basic MOST general Move Sequence Model
Get
A
1.
PUT
G
Return
P
Chart 4.7
List of Major Companies using MOST
Sr. List of Major Companies using
Sr.
No MOST
No
MOST
Mahindra and Mahindra
1 Areva (Switchgear)
Bharat Forge (Crank
11 (Automobile)
Menon and Menon
2 Shaft/Axles)
12 (Foundry/Machining)
3 Bilt (Paper)
14 Siemens (Electrical)
5 Cummins (Engines)
17 Techumseh (Compressors)
8 Honda (Automobile)
9 IPCA (Pharmaceutical)
19 Whirlpool (Refrigerators)
10 JCB (Excavators)
Source: www.hbmayanrd.com
Reference
1. Niebel, B. W, Motion and Time Study, Richard D. Irwin, Inc., Homewood,
Illinois, 1962.
2. International Labour Organisation (ILO), Introduction to Work Study, Universal
Publishing Corp., India. , Third Revised Edition, 1986.
3. Meyers, 2002, in Time Study Method Implementation in Manufacturing Industry, A B.E
Report, Universiti Technikal Malaysia, Melaka, 2008, PP. 6.
4. Russell, R.R., Taylor, B.W., Operations Management: Quality and
Competitiveness in a Global Environment, 5th Edition, J. Wiley, New York, 2005.
5. Nakayama, S., A study on setting standard time using work achievement quotient,
International Journal of Production Research, Vol. 40, No. 15, 2002, PP 3945-53.
6. Izetbegovic, J., Proucavanje Graditeljske Proizvodnje, Elektronicki
Udzbenik, Zagreb, Faculty of Civil Engineering, 2007.
7a. Zandin, K.B., MOST Work Measurement Systems, H.B. Maynard and
Company Inc, New York: Marcel Dekker, Second Edition, 1980.
7b. Malik, M.R., Improve the productivity using MOST, A B.E project Report,
VJTI, Mumbai, 2004.
7c. Sanjay Kumar, Optimization of Resources in Service as well as manufacturing industries,
Ph.D. thesis, University of Mumbai, 2010.
77 | P a g e
121
FINDINGS
1. There has been a remarkable increase Gross Sales and with the performance of
All the department and has narrowed and contributing to the EBIT. The Gross Profit
Has considerably increased 1600 Crore from in Last year. The interest payment has
increased by 170 Cr in the Current year and the Profit before Tax at 27,818 Crore
when compared to 26,284 Crore in Last year.
2. The profit After Tax has came 21,984 Crore to 21,003 Crore
in Current year
78 | P a g e
CONCLUSIONS
1) Sales in 2013-2014 is at 4, 01,200 Crore and in 2012-2013 3, 71,021 Crore those
in a increase trend to the extent of 10% every year. On the other hand
manufacturing expenses are at 3, 29,313 from 2013-2014. There has been
significant increase in cost of production during 2012-2013 because of increase in
Royalty.
2) The interest charges were 4053 Crore in 2014 and 3505 Crore in 2013
respectively shows that the company redeemed fixed interest bearing funds from
time to time out of profit from 2012-2013.Debantures were partly redeemed with
the help of debenture redemption reserve and other references.
3) The PAT (Profit After Tax) in 2013-2014 is at 21984 Crore. The PAT has increased
in prices in during the above period. The profit has increased almost 15% during the
period 2013-2014.
4) Debentures were redeemed by transfers to D.R.R. in 2012-2013.
5) A steady transfer for dividend during 2008-2009 from P&L appropriation but in
2008 there is no adequate dividend equity Shareholders.
79 | P a g e
6) The share capital of the company remained in unchanged during the three-year
period because of no public issues made by the company.
7) The secured loans have decreased consistently from 2012-2013 and slight
increase in 2013-14.
RECOMMENDATIONS ON RELIANCE INDUSTRIES LTD
The Board recognizes the importance of two-way communication with
shareholders and giving a balanced report of results and progress and
responding to questions and issues raised in a timely and consistent manner.
The Company Secretary plays a key role in ensuring that the Board
procedures are followed and regularly reviewed. The Company Secretary
ensures that all relevant information, details and documents are made
available to the Directors and senior management for effective decisionmaking at the meetings.
Significant changes in accounting policies and internal controls
Takeover of a company or acquisition of a controlling or substantial stake in
another company
Statement of significant transactions, related party transactions and
arrangements entered by unlisted subsidiary companies
Issue of securities including debentures
Appointment of and fixing of remuneration of the Auditors as recommended
by the Audit Committee
Internal Audit findings and External Audit Reports (through the Audit
Committee)
Proposals for major investments, mergers, amalgamations and
reconstructions
Status of business risk exposures, its management and related action plans
Making of loans and investment of surplus funds
Borrowing of monies, giving guarantees or providing security in respect of
loans
Buyback of securities by the Company
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SUGGESTIONS:
1. The company has to maintain the optimal capital structure and leverage so that
in coming years it can contribute to the wealth of the shareholders.
2. The mining loyalty contracts should be revised so that it will decrease the direct
in the production
3. The company has to exercise control over its outside purchases and overheads
which have effect on the profitability of the company.
4. As the interest rates in pubic Financial institutions are in a decreasing trend after
globalization the company going on searching for loan funds at a less rate of
interest as in the case of international fund.
5. Efficiency and competency in managing the affairs of the company should be
maintained.
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BIBLIOGRAPHY
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