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INDEX

Sr

no.

Particulars Page

no.

1 Introduction 72

2 Organization chart 733 Financing planning 74

4 Capital structure 75

5 Capitalization 76

6 Capital budgeting 77

7 Management of fixed assets 78

8 Management of working capital 79

9 Management of inventory 80

10 Management of receivables 81

11 Cash flow 8212 Leverage 85

13 Ratio analysis 87

14 Distribution of earning 89

15 Profit and loss account 90

16 Balance sheet 91

T.N.RAO COLLEGE OF MANAGEMENT STUDIES 71

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INTRODUCTION

Finance is the life blood of any business. Without finance any business of

company cannot exist .Finance is the obviously one of the foundation of

economic activities of mankind. Financial management is that managerial

activity which is concerned with the planning and controlling of the firms

financial resources. A firm requires a number of real assets to carry on its

business. IRIL has also different department of financial manager provides us

the following information of finance department.

There it is said if you have money and you manage it properly , you will

make more money.


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ORGANIZATIONAL STRUCTURE


Senior Vice

President

Manager

A/C. OfficerChief A/C. ManagerDy. Manager

Account Officer A/C. OfficerChief A/C. Manager

Assistant

Officer

Assistants

Share A/C. Officer

Assistants

Assistants

A/C. Officer

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FINANCIAL PLANNING

The financial planning is the responsibility of the top management. It is also

essential that each financial planned before any action as the success or future

of firm depends totally on it.

IRIL the task of financial planning is divided into three levels:-

Top Level

Middle Level

Lower Middle Level

In any field of business, planning is a primary function of financial

management is that of the financial has to make a plan for capital investment

and also for working capital for the ensuring year. The cash budget being anintegral part of the working capital plan has to be prepared in detail.

The company IRIL has also adopted the same traditional procedure for the

financial management of company evaluates the various proposals of

investment. It also calculates the total investment required for various

proposals. The cash in flow return on capital employed , etc. in the contact of

planning for working capital. The financial management of company also

prepares a cash budget of the beginning of the financial year laying down the

estimates or inflow and outflow of cash per week, per month and for the

whole year.


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CAPITAL STRUCTURE

Capital structure refers to the composition of capital in other words capital

structure of the company refers to make up of capitalization.

Thus, capital structure of company shows how or through which sources its

capital has been raised by issuing equity shares, preference shares and

debentures. Any two of these through a mixture of all these three securities.

The capital structure of IRIL as on 31st March 2006 is as follows:-

SR

NO.

Particulars Amount

1 Shares capital 83.50

2 Reserve & surplus 2,124.11

3 Secured loan 1,084.214 Unsecured loan 479.36

5 Debenture ------


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CAPITALIZATION

Capitalization is the sum or per value of outstanding stocks and bonds. The

capitalization means the firm refers to way in which its long form obligations

are distributed between different classes of owner and creditors. There are two

types of capitalization. They are:-

Over Capitalization:

Over capitalization arises when the earning of the company are not adequate

to give a fair return on shares and debentures issued by it.

Under Capitalization:

Under capitalization arises when it too little capital with which company

conducts its business.

Book value = (Equity shares + capital reserve +) / No. of Equity shares

= (83.50 +2124.11) / 8.350

= 264.38


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CAPITAL BUDGETING

Capital budgeting decision is a firms decision to invest its current funds

more effectively in long term activities in anticipation of an expected flow of

future benefit over a series of years

At the end of each year, company make capital budgeting at every year by

taking services of experts and financial department.

This company always aims to increase and expand the installed capacity of

Rayon. For calculation there are various methods:-

IRR

Profitability

Pay back

ARR

At this present the main objective of capital budgeting in IRIL is mainly

replacement and modernization of machines And fixed assets and business

expansion by adding new machinery, technology and fixed assets. This type

of decisions is taken by main head office, Mumbai.

Company use ARR for the purpose of capital budgeting. ARR is

calculated as

ARR = Average Annual Income / Average Investment


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MANAGING OF FIXED ASSETS

There are two types of assets in every firm i.e. fixed assets in every firm. To

manage fixed assets in the most important task facing management totally

because of risk & investment factor. Fixed assets this type of assets which can

use for long time. The age of assets is very long. The fixed assets cant be

converted into cash easily. There is a great risk in fixed assets. The financial

manager must be careful to invest in these assets.

IRIL maintains a plan register in which cash and every detail of every fixed

assets are entered . Moreover it has also appointed CA and investment

experts. At least once a year they physically verify and check all the asset

standing on the main of the company and then calrify them as per their

condition.

Investment of fixed assets of IRIL as on 31st March 2006:-

Sr

no

Particulars Amount

1 Goodwill on consolidations 128.06

2 Freehold 1.01

3 Leasehold 18.59

4 Buildings 114.57

5 Plant & machineries 477.25

6 Furniture 19.31

7 Vehicles 8.54

8 Trade marks 94.53


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MANAGEMENT OF WORKING CAPITAL

Working capital is that capital, which is required to maintain the daily

expenses of the business management of a firm. Working capital refers to the

fine investment in current assets. Current assets are assets, which are

converted into cash with in operating year of operating circle. Current assets

include cash, short term securities, and debtors bill. Receivables and stock.

Gross working capital:

Gross working capital means total current assets.

Net working capital:

Net working capital means differences between the current assets and current

liabilities.

Cash work in progress

Debtors semi finished good

Sales finished good

Working Capital = Current assets Current liabilities

= 664.18-498.70 =165.48


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MANAGEMENT OF INVENTORY

Inventory means have to manage raw material and supply of goods required

for the production, which will incur minimum cost of product.

Management of inventory management is to provide continuous surplus of

raw materials, other goods which are required for production. The inventory

of current year is Rs.526.33 Crores.

There are five types of inventories in IRIL.

Raw material

Stores & spares

Material in progress

Contract job in process

Finished Goods

In IRIL there is special storage department and separate inventory

management force which perform certain function for efficient management

of inventory in the company.

Value of material consumed

=inventory turnover ration / average inventory held=1551.35 / 232.2

= 6.68 times.


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MANAGEMENT OF RECEIVABLES

The management of receivables is basically concerned with the old customer

and wining the new ones by collecting a regulating the cost management of

receivables also known as trade receivables or customer or debtors

receivables.

It means when firm make ordinary sales on credit and payment has not beenreceived yet. Such management of receivables IRIL grants the credit term to

its customer for 15 days. However, in exceptional cases it is increased to

certain extent. The purchaser sends bank drafts on expiry of credit period.

The receivables arise out of three features:-

It involves an element of risk, which should be carefully analyzed

It is based on economic value

It implies future management of receivables

Management of receivables concerned with retaining the old customers and

new by controlling and regulating the costs. IRIL grants the credit from to its

customers for 15 days.

Debtors turnover ration = Debtors / Average daily credit sales

= 415.44 / 1551.35 * 365

= 97.74


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CASH FLOWcash flow statement

(Rs Crore) 2007-08 2006-07 2005-06 2004-05 2003-04

A Cash flow from operating activities

Net profit

before tax314.56 311.08 271.75 155.16 161.48

Add:

Adjustments

for

Depreciation 141.20 120.43 111.91 77.84 77.67

Marketingand technical

know-how

written-off

- - - 2.95 3.93

Interest

expenses

(net)

179.02 171.16 55.80 18.73 14.82

(Profit) / loss

on fixed

assets sold

(7.18) (2.66) 0.34 (0.36) 0.16

(Profit) / loss

on sale of

investments

(1.19) (6.76) (2.54) (0.60) (1.19)

Dividend

income(4.23) (23.73) (16.54) (6.41) (8.74)

(Gain) / loss

on sale ofcontract

exports

division

- (0.20) - - -

(Gain) / loss

on sale of

Rajshree

Syntex unit

(0.73) - - - -

Employees

stock options

outstanding

0.71 - - - -

307.60 258.24 148.97 92.15 86.65

Operating

profit before

working

capitalchanges

622.16 569.32 420.72 247.31 248.13

Add:

Adjustments

for

Decrease /

(increase) in

trade and

other

receivables

(141.39) (7.60) 231.47 (87.18) 21.53

Decrease /

(increase) in

inventories

(258.47) 28.00 (118.66) (78.33) (31.49)

Increase /

(decrease) in

trade and

otherpayables

102.52 (32.71) (275.57) 17.77 24.65


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(297.34) (12.31) (162.76) (147.74) 14.69

Cash

generated

from

operations

324.82 557.01 257.96 99.57 262.82

Income taxes

refund (paid)

(net)

(46.11) (60.66) (81.00) (48.23) (48.12)

Net cash

from

operating

activities

278.71 496.35 176.96 51.34 214.70

B

Cash flow

from

investing

activities

Proceeds

from sale of

fixed assets

13.29 8.82 2.19 2.81 2.99

Capitalsubsidy

received

- - - - 1.16

Proceeds

from transfer

of global

exports and

marketing

division

- - - 5.40 -

Sale /

redemption /

(purchase) of

investments

(net)

212.28 (116.08) 257.44 84.87 (48.01)

Sale of

investments

insubsidiaries

and joint

ventures

- 10.96 - - -

Proceeds

from sale of

Rajashree

Syntex unit

5.06 34.50 - - -

Interest

received24.78 24.29 13.15 4.34 9.17

Dividend

received4.23 23.73 16.54 6.41 8.74

Increase /

decrease in

corporate

deposit

(89.76) 132.50 (184.63) - -

Purchase offixed assets

(238.05) (302.72) (199.97) (153.66) (105.13)

Investment

in equity of

joint

ventures

- (1597.89) (661.09) - (8.00)

Investment

in equity of

subsidiaries

(504.59) (463.83) (91.40) (44.42) (150.18)

Acquisitions - - - - (42.54)

Net cash

(used in) /

from

investing

activities

(572.76) (2245.72) (847.77) (94.25) (331.80)

C Cash flowfrom

financing


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activities

Proceeds

from issue of

share capital

(includingshare

premium)

1.70 9.81 0.01 0.00 0.01

Security

premium

received

339.70 759.93 0.06 0.04 0.06

Proceeds

from issue of

share

warrants (net

of

conversion)

377.41 - - - -

Proceeds

from /

(repayment

of)

borrowings

(net)

(157.81) 1272.87 764.86 88.00 138.31

Dividends

paid

(including

tax thereon)

- (106.13) (27.31) (27.08) (25.33)

Interest and

finance

charges paid

(194.55) (184.69) (62.06) (21.92) (23.97)

Net cash

(used in) /

from

financing

activities

366.45 1751.79 675.56 39.05 89.07

Net increase

in cash and

equivalents

72.40 2.42 4.75 (3.86) (28.03)

Cash and

cash

equivalents

(opening

balance)

22.74 20.32 9.41 13.27 41.30

Cash of

IGFL and

BGFL

- - 6.16

Cash

acquired on

merger of

ABIL

2.02 - - - -

Cash outflow

on sale of

RST unit

(0.01) - - - -

Cash andcash

equivalents

(closing

balance)

97.15 22.74 20.32 9.41 13.27

LEVERAGE


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The term leverage is generally used to utilize the fixed cost assets to increase

the return to the owners of the firm. Leverage analysis is the important tool of

management. Thus, leverage calculation in sales volume or the level ofincome.Finance Leverage:

Finance leverage is known as trade on equity. The preliminary motive of the

company is to magnify the shareholders return under favorable condition by

using financial leverage. The under capitalized company has issued the

debenture at lower rate of interest than its earning rate.

Thus, the company can pay a higher rate of dividend. Therefore, as a resultthe company has paid 50% dividend to its shareholders.

It is ratio of net rate of return on shareholders equity and the net rate of return

on the total capitalization.

Financial Leverage = EBIT/ EBT

= 275.79 / 271.75

= 1.015


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Operating Leverage:

Operating leverage means ratio of consumption and operating profits in a

business concern. Operative leverage is the ability to the firm to use fixed

operating cost, to magnify the effect of change in profit due to change in sales

on its profit. It is a relative change in profit due to change in sales with fixed

cost.

The operative leverage of Rayon division is as follows:-

Operating Leverage = Contribution / Operating profit

Here, contribution = sales- variable cost

= 2,642.1- 2277.83

= 364.27

Therefore, operating Leverage = 364.27/186.93

= 1.95

Combined Leverage:

Operating leverage affects a firms operating profit while financial leverage

effects profit after tax or the earning per share. The combined effects of 2

leverages can be quite significant for the earning available to the quality

shareholders.

Combined leverage = Operating leverage * Financial leverage

= 1.95 * 1.015

= 1.98


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RATIO ANALYSIS

Financial information is content in three basic financial statements that are

Balance Sheet, Profit & Loss Account and Manufacturing Account.

But the information given in the basic financial statement servers no useful

purpose unless it is interpret and analyzed in some comparable terms and term

ratios is the relationship between the two accounting figures.

Ratio analysis furnished entire liquidity and profitability position in thecompany. There are three ratio analyses.

Gross profit ratio:

= gross profit / net profit * 100

= 387.60 /2, 642.1 * 100

= 14.67

Net profit ratio:

= net profit / net sales

= 186.93/ 2,642.1 * 100

= 7.08

Sales Turnover Ratio:

= 2,642.1/ 415.44

= 6.36


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Current Assets:

= current assets / current liabilities

= 1,626.27 / 498.70

= 3.26

Inventory Turnover Ratio:

= net sales/ inventory

= 2,642.1/ 526.33

= 5.02 times

Fixed Assets Turnover:

= Sales / Fixed Assets

= 2,642.1/ 1,135.52

= 2.33

Liquid Ratio:

= Liquid Assets / Liquid Liabilities

= 821.51 / 424.78

= 1.93


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DISTRIBUTION OF EARNING

The main goal of any firm is to get maximum profit. This profit is measure of

efficiency and the search for it provides an incentive to achieve efficiency.

Profitability also indicates the products and shows that the firm can provide

competitively.

Any company can give dividend to all shareholders if the profit of company is

sufficient. The shareholders always want to get dividend.

IRIL being a well running unit with the excellent success under Birla Group.

Total rs.20.00 Crores

Dividend 24 (1%)

Retained earning 86% (4%)

Taxes and duties 179 (9%)

Materials 985 (49%)

Staff cost 135 (7%)

Operating & other expenses 429 (25%)

Depreciation 112 (39%)

Interest 56 (198%)


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Profit & Loss Account

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03

Income:

Operating income 3,420.76 2,645.79 1,865.88 1,573.84 1,443.82

Expenses

Material consumed 1,871.94 1,467.53 1,038.23 833.10 730.21

Manufacturing expenses 437.21 291.62 196.80 170.12 155.38

Personnel expenses 193.22 164.03 125.16 117.81 123.12

Selling expenses 219.58 199.03 172.51 149.23 144.16

Adminstrative expenses 154.52 113.28 83.49 69.95 64.60

Expenses capitalised - - - - -

Cost of sales 2,876.47 2,235.49 1,616.19 1,340.21 1,217.47

Operating profit 544.29 410.30 249.69 233.63 226.35

Other recurring income 61.99 33.59 13.81 22.25 31.30

Adjusted PBDIT 606.28 443.89 263.50 255.88 257.65

Financial expenses 195.40 68.55 22.94 23.99 43.66

Depreciation 120.32 111.81 77.74 77.59 67.81

Other write offs - - 2.95 3.93 3.93

Adjusted PBT 290.56 263.53 159.87 150.37 142.25

Tax charges 117.37 90.31 43.36 50.15 34.22

Adjusted PAT 173.19 173.22 116.51 100.22 108.03

Non recurring items 11.16 -2.28 -8.08 26.40 -16.37

Other non cash adjustments 40.62 15.99 5.29 4.66 13.67

Reported net profit 224.97 186.93 113.72 131.28 105.33

Earnigs before appropriation 225.42 773.06 380.93 340.92 185.01

Equity dividend 51.32 41.75 23.95 23.95 22.45

Preference dividend - - - - -

Dividend tax 7.20 5.86 3.42 3.07 2.88

Retained earnings 166.90 725.45 353.56 313.90 159.68

Balance sheet (Rs crore)Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03


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(Lacs)


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INDEX

Srno.

Particulars Pageno.

1 Introduction 95

2 Market research 96

3 Organization structure 97

4 Product planning 98

5 Market segmentations 100

6 Pricing policy 1017 Channels of distribution 102

8 Sales promotion 103

9 Advertisement 104

10 International marketing 105

11 Objectives of marketing 106

12 Customers satisfaction 107

13 Dealing with competition 108

14 Quality policy 109


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INTRODUCTION

A market may be considered as a convenient meeting place where buyers

and sellers gather together for exchange of good and services.

Marketing is a comprehensive term and it includes all resources and a set of

activities necessary to direct and facilities the flow of goods and services from

producers to customers in process of the distribution. Business regardsmarketing as a management function to plan promote and deliver product to

the clients or customers. Human efforts finance and management constitute

the primary resources in marketing.

A market consist of all the potential customer sharing a particular need or

want who might be willing able to engage in exchange to satisfy the need or

want. The concept of market brings us full circle to the concept of marketing.

Marketing means working with the markets to actualize potential exchange

for the purpose of exchange human needs & wants.

The IRIL have a very efficient and excellent marketing department, which

tries to provides maximum satisfaction to the customer while having

reasonable profits on the other hand.


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MARKETING RESERCH

To manage a business well its future and to manage its future is to manage its

information. Beside managing man, money, materials, machines, modern

business has to manage information too carefully.

At some period chemists, techniques and president visits to the markets.

Sometimes some persons are employed by the company for research and theygo to customer to take opinions about the product of the company. Besides ,

the following are also required:-

Market survey

A product performance research

A sales forecasts segment wise.

For, market research telephone service, mail service is also used.


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ORGNAIZATIONAL STRUCTURE

Organizational is a form of co-operative efforts. It can be said that marketing

organization consists of numbers of position with number of persons.

Marketing organization is important to the firm of single person cant handle

every marketing activities.


Marketing

Vice president General Manager

Amrutsar

Office

Mumbai Office Mumbai Office

Regional

Manager

Manager Sr. Manager

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PRODUCT PLANNING & DEVELOPMENT

The product is any thing that can be offered to satisfy the need or want.

Product is the most important and tangible component of marketing program.

Product decision means what in the product is to be prejudiced or requirement

in the product is to be satisfied and for whom the product is meant. Product

decision involves three important considerations.

The development and introduction of product

The modification of the existing product.

The elimination of unprofitable product

product planning determines the features of the product best meeting the

consumers numerous desires, features that add stability, to product and

incorporates these features into the finished product.

JOHNSON.

IRIL makes product planning according to the demand of industries and

situation and price of products.

PRODUCT LINE

To make new product development the company brings modernization in the

product according to the international tread. New products development is

brought by the experienced engineers IRIL use of ECOLABEL DYES and

auxiliaries and also use of cellule cellulose work.


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PRODUCT LIFE CYCLE

The life cycle of the product is similar to the life cycle of the human being.

The product life cycle is an attempt to recording distinct stage on the sales

history of the product.

IRIL is passing from the maturity stage. So this company cans make changes

in product and its technology as adopting horizontal spinning machine forsame deniers. Development of coning machine including better design and

efforts to enable up graduation in product quality and quantity control system.


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MARKET SEGMENTATION

Market segmentation is a meaningful buy or group having similar needs.

Segmentation gives formal reorganization to the fact that needs and desire of

all customers are diverse and we can formulate a special market offering to

specific category or segment of the market. So that supply will have best

correlation with demand.

The company Indian Rayon & Industries Ltd. has entered many market

segments under differentiated marketing strategies but it has a unique

marketing mix. Appropriate for each product makes the business successfully

in several segments.

IRIL has its branch at Ahmedabad, Surat ,Banglore , Chennai, and its head

office is at Mumbai , which takes major decisions about all product.

Branch in India

Delhi, varanasi, Surat, Mumbai ,Bangalore, Kolkata.

Branch in Abroad

Korea, Italy, Africa, Bangladesh


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PRICING POLICY

Pricing determines the utility aspect and quality of the product. There is

general tendency of consumer that they measure the quality of product from

its price. price is the exchange value of product or service which is always

expressed in terms of money. Right price can be determined through pricing

research and by adopting the test market techniques.

All the company fixes prices on the bases of the cost production and charge of

distribution, packing, etc.

The pricing objectives of company are as follows:-

Return on investment

To maintain its market

Price stability

Indian Rayon & Industries Ltd has not adopt any clear pricing policy but we

may say that the mixed policies of the following policies exist in the

company.

Cost oriented pricing policy

Demand oriented pring policy

Competition oriented pricing policy


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CHANNELS OF DISTRIBUTION

Distribution refers to the ways by which a product is reached to the

customers. Thus, distribution channels indirectly customer and also this help

in achieving goal.

Rayon division has its sales centers at major cities of India as Delhi, Bombay,

Amritsar, Banglore, Belgaum, Jaipur, Ahmedabad, Varanasi, Panipat,Madras, Surat, and also agent. Each adopt has its warehousing for the stock of

product.

Rayon division adopts some time zero level distribution and some time one

level distribution.

CHANNELS OF DISTRIBUTION

For Rayon Yarn

Company sales office( or agent )

One level

For chemical ( by product )

Company customers

company dealercustomer

Rayon division does not fix any channels due to following reasons:-

Product features

Company features

Big investment


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SALES PROMOTION

Promotion consists of those activities that are designed to begin a company

good or service to the favorable attention of customer.

In this method following tools have been used:-

Buying allowance discount

Display allowance

Dealers contest

Concession on net sales(2%)

Free gift

In IRIL, there is no separates department for sales promotion but it is

followed by sales department of Rayon division , veraval. Sales promotion

affect in sales of the company. Most of the company does sales promotion toimprove market. Sales promotion activities do not relate only with

distribution but also to dealers and members of sales force.

Recently, the company gives key chains, diary, calendar, wallets, decorative,

items, etc. to the customers a gift. Following programs are conducted IRIL for

promoting sales

Dealers meet each other

Dealers visit to factory

Price distribution to dealers


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ADVERTISING

Any paid form of non-personnel communication of ideas, goods or services

by business firms identified in the advertising message intended to lead to sale

immediately or eventually.

Advertising is a contract with personnel selling seeks to convey the market

manage to message of potential buyers achieving advertising effectivenessthrough skilled planning and management of advertising efforts is a key

responsibilities of marketing management.

Indian Rayon & Industries Ltd is very sound company producing the

industries product and major factories producing rayon yarn in India are in

handle of one management. Thus, there is no question of advertising.

The magafied man made fed ness gives the data of factories

manufacturing flashes their exports pricing policies, etc thus, in this way we

can say direct advertising.


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INTERNATIONAL MARKETING

A market defines by demand essentially. It is demand which creates which

creates the supply. International market deals with the trade pattern among of

the various countries in the world. It also considers the trade policies and

trade practicing of various countries as there governs the buyers-seller

relationship in the international market.

The company IRIL exports 2.6% of the annual production to the various

through its main offices in abroad companies being well diversified. The birla

management group and its company in most of the countries have its own

office. The company IRIL exports the product of Rayon Yarn in Morocco,

UK, USA, Turkey, Korea, Saudi Arabia, Spin, Philippines, Indonesia, Italy,

and South Africa.

The company also import the raw materials required for rayon yarn like pulps

from South Africa and Canada.


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OBJECTIVES OF MARKETING

The following are objectives of Rayon Industries Ltd.

To find new and new customer to sell then more and more of

companies product.

Try to make better and quality product.

To provides a successful distribution of consumer product.

To study the market problem according to the circumstances and

suggest the solution.

To sell their products in new areas to make new customers and

satisfy old customer.

To encourage the customer and know the fault in their products and

then try to make quality of product.


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CUSTOMER SATISFACTION

Due to cut throat competition in market, importance of customers has

increased. Now a days sellers are more in numbers while users or consumers

are less in number.

Therefore, it is essential for producers to know the satisfaction level of this

product. The promoters for customers satisfaction are new products andservices coupled with delivery schedule, high quality, right price and

maintaining customer relation.

In Indian Rayon & Industries Ltd. The level of customer satisfaction is very

good. It is due to reason that the product is high quality.


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DEALING WITH COMPETITION

The IRIL have monopoly in the market because of its total market of Rayon

yarn Industry. The IR have 25% market and Aditya Birla Group have also

other two unit of Rayon Yarn so all the three units cover the 755 have

competitors is as follows:-

Keshavaram Birla Rayon

Century Rayon

National Rayon


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QUALITY POLICY

We are committed to:-

Meet customers expectation of quality and service in premium

Maintain high morale of employees

Use eco-friendly technology and maintain pollution freeenvironment.


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SWOT ANALYSIS

STRENGTH

High quality of yarn produces. Wastes are being sold. Good after sales services. Equipment with all modern machineries, better packing, carriage &transportation system. Regular meetings & seminars are conducted & the loopholes tracesand solution is unearthed for it.

Internet marketing Sophisticated German machinery helps in the continues spinningyarn department.

Division has WCM, look out for better manufacturing ways. For better quality of production, certified with ISO 9001 For good environment management system, certificate of ISO14001

Effective security system for identified unwanted problems According to the need of the company, employees at each level aregiven training.

A state of ART laboratory were new & effective chemicals areexplore.

WEAKNESSES

Heavy cost of production due to old technology in certain

department

Long process steps

Far from market

Long process cycle

Certain loopholes in information system


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OPPORTUNITIES

New market should be unearthed for its production & chemicals

Lucrative export market

Cost control & lean consumption should be worked on

Globalization has made world a village

Find ways to penetrate deeper into the worlds biggest textile markets

EUROPE & USA

THREATS

Government policies

Changing fashion

The viscose process is highly polluting

Emergency of cotton threats made the market share of Rayon Yarn

low

ANALYSIS

The company should work on cost reduction programme by having a

multi dimensional attack on cost

The overseas market should properly traced out(by an efficient is system

The company should work on value addition

The company should concentrates on lean consumption

The company should trace down the loopholes in its &system & to fill itas it would help in lowering the work burden & would increase productivity

The management of Aditya Birla Nuvo Ltd should establish themselves

as a quality based, high speed, high performance, cost effective

organization.

The company should have excellent management relationship with

transparent and adaptive management approach.


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CONCLUSION

IRIL is a heavy industry having sound facility of manpower, finance,

machinery and organization

Company has well established marketing and personnel department and the

financial condition is very strong.

At least , I would like to give my best wishes to the company and I also wish

company make splendid success and achieve glorious moments.


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BIBLIOGRAPHY

We referred following books preparing our project report.

Principal & practice of management

- L.M. Prasad

Personnel management - C.B. Mamiria

- S.V. Ganker

Human resources management

- P. Subba Rao

Marketing management

- Philip kotler

- J.C. Gandhi

Finance management

- Khan & I.M. Pandey

- James C. van Horne

rita 2

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