top management .docx1

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PART (A)

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INDEX

NO. TOPIC PAGE NO.

1 ORGANIZATIONAL

DESIGN

3

2. PRODUCTION 11

3. MARKETING 16

4. FINANCE 28

5. PERSSONEL 34

5. SOCIAL

RESPONSABILITY

39

6. AWARDS AND

ACHIVEMENT

41

7 BIBLIOGRAPHY 43

8 SOURCES OF

INFORMATION

44

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(A)ORGANIZATIONAL

DESIGN

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1. TOP MANAGEMENT

Managers at or near the upper levels of the organization structure who areresponsible for making organization wide decisions and establishing the

goals and plans that affect the entire organization.

1

(Stephen P. Robbins,2008)

Highest ranking executives responsible for the entire enterprise. These arethose people who are translates the policy into goals, objectives, and sharesprojects which will make the industries future bright. They are the one whotake key steps in every organization. They are the one who are solelyresponsible for every good and bad thing that organization faces2().

It means that if the company earns profit or loss the top management is the

one who are responsible for it.

Main Function of Managements:-

1 Stephen P. Robbins, Mary Coulter, Management(Pearson Education),Page no. 7

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Frames policy

Decide the goal of the industries

Decide future projects

Does planning, organizing and other management functions

These are the main steps the top management does.

1. HIERARCHY

DEFINATIONOF HIERARCHY

A body of officials disposed organically in ranks and orders eachsubordinate to the one above it; a body of ecclesiastical rulers.3()

In simple term we can say that hierarchy is going from lower level tothe upper level or from upper level to the lower level within theorganization and within the department.

IT IS IMPORTANT FOR ORGANIZATION?

It is important because of the following two reasons:-

i. As there are lots of people within an organization so to control themand make them do their work with unity for achieving the overallobjective of the people.

ii. The work is divided into small parts so to make it economic part with

view to pursuing the ideal of task specialization so essential tomanagerial policy.

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1.1 FIGURE SHOWING GENERAL HIERARCHY IN THEORGANIZATION4(Stephen P. Robbins, 2008)

1. ORGANISATIONAL STRUCTURE

Formal and informal framework of policies and rules, within which anorganization arranges its lines of authority and communications, andallocates rights and duties. This structure depends entirely on theorganization's objectives and the strategy chosen to achieve them.

In a centralized structure, the decision making power is concentratedin the top layer of the management and tight control is exercised overdepartments and divisions.

In a decentralized structure, the decision making power is distributedand the departments and divisions have varying degrees of autonomy.An organization chart illustrates the organizational structure5().

FOUR MAIN ORGANISATIONAL STRUCTURES :-

I. Functional Structure :-

Under this structure the employees are grouped under certain divisions. Forexample all engineers are grouped under engineers. This leads efficiencies inthat type of work because there are lots of expertises available to you.

II. Geographical Structure

4 Stephen P. Robbins,Mary Coulter,Management(Pearson Education),Page no. 6

5www.businessdictionary.com/definition/organizational-structure.html. accesed on 7-02-10

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It means that according to the geographical location we divide our work orcompany take for e.g. we divide on the basis of direction: - then we can

have North, East, West, South or according to region Northern region,Eastern region, Western region, and Southern region.

III.Product structure :-

The company divides its work according to the different products theymanufacture like take Tata industries can be divided into Tata tea, Tata salt,Tata nano, Tata steel. Accordingly the whole industries can be dividing.

IV.Matrix Structure

This structure is a combination of both the functional and the productfunction which makes the employee more efficient and also helps them tolearn some management skills. It helps the organization to eradicate thedemerits of both the structure. And make it more efficient.

4. DEPARTMANTALIZATION

It means that certain works which are of similar nature are groupedunder one roof. It means that they form a department of similar function.The organization is divided into certain divisions like finance, HR,Marketing etc are example of department6().

Different types of departmentalization are :-

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Functional departmentalization :-

In this type of departments the persons which have similar types of skillsand knowledge are grouped together. Example those who are good in ITare grouped together.

Product Departmentalization :-

Grouping activities by product line. It means that those product which areof similar nature are grouped under one manager. For Example in

footwear shop their ladies, gents, and children footwear but each areseparately shown.

Customer Departmentalization :-

Grouping activities on the basis of customer like you may divide customerinto frequent customer, upper level customer (richer), middle level

customer.

Geographic Departmentalization :-

Grouping activities on the basis of territory. If an organization's

customers are geographically dispersed, it can group jobs based on

geography. Like, customer more of them are situated in north so you

need to capture them so you may have a small plant there.

Process departmentalization :-

Grouping activities on the basis of product or service or customer flow.

Because each process requires different skills, process

departmentalization allows homogenous activities to be categorized.

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PRODUCTION

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DEFINATION OF PRODUCTION

Production can be defined as process and transformation of raw inputsinto finished good.

1. PLANT LOCATION :-

It is a particular location at which your plant will be set up. This place isdecided after lots of research and finding as once the place is decided andthen to place it somewhere else will leads to lots of loss for the companyor the organization.

There are certain criteria on which an ideal location is set up :-

1. Easy availability of worabour y tion is whic f loss for the companyor the organization.ecided and then to place it somwhere ker andalso cheap.

2. Easy availability of raw material.3. Market should be nearby so less transport charges.4. At least price best product can be made or available to the

customer.

1. PRODUCT PORTFOLIO :-

The variety of products manufactured or supplied by an organization7().

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It means that for a company which have lots of manufacturing products

so in that case than make an portfolio of one product of similar nature

like a stock market a individual have portfolio of stocks of different stocks

of high risk grouped under one and low risk under one.

Importance of having Product Portfolio:-

It becomes easy for the company to reduce the risk.

Having product in different sector make the company to have lots of

profit from different products.

1. PLANT OPERATION :-

It means that how a plant actually performs his work or how actually thedifferent process can be combined, through which a raw material getsconverted into finished goods.

1.2 FIGURE OF GENERAL PLANT OPERATION

2. QUALITY CONTROL :-

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Quality Control (QC) is a system of routine technical activities, to measure

and control the quality of the inventory as it is being developed. The QC

system is designed to:

(i) Provide routine and consistent checks to ensure data integrity,

correctness, and completeness;

(ii) Identify and address errors and omissions;

(iii) Document and archive inventory material and record all QC activities.8()

Quality control is a process employed to ensure a certain level of quality in aproduct or service. The basic goal of quality control is to ensure that theproducts, services, or processes provided meet specific requirements and

are dependable, satisfactory, and fiscally sound.

DIFFERENT TYPES OF ISO (International Organization for

Standardization) are:-

ISO 9004-1: General quality guidelines to implement a quality system.ISO 9004-4: Guidelines for implementing continuous quality improvementwithin the organization, using tools and techniques based on data collection

and analysis.ISO 10005: Guidance on how to prepare quality plans for the control ofspecific projects.ISO 10011-1: Guidelines for auditing a quality system.ISO 10011-2: Guidance on the qualification criteria for quality systemsauditors.ISO 10011-3: Guidelines for managing quality system audit programmes.ISO 10012: Guidelines on calibration systems and statistical controls toensure that measurements are made with the intended accuracy.ISO 10013: Guidelines for developing quality manuals to meet specific

needs.9

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8http://www.ipcc-nggip.iges.or.jp/public/gp/english/8_QA-QC.pdfAccessed 23-02-11

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MARKETING

DEFINATION OF MARKETING

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Marketing (or advertising) is the process by which companies advertiseproducts or services to potential customers. It is an integrated processthrough which companies create value for customers and build strongcustomer relationships.

So in a simple term we can say that if a company wants to grow in todaysworld they need to have a good marketing concepts in their mind.

1.3 Figure of Marketing Pix

1. 4 Ps of MARKETING

The 4 Ps of marketing are :-

i. Product

ii. Price

iii.Place

iv.Promotion

Product

The product aspects of marketing deal with the specifications of the actualgoods or services, and how it relates to the end-user's needs and wants. Thescope of a product generally includes supporting elements such as

warranties, guarantees, and support.

It also includes that the product you are preparing should have somesuperiority over the goods of your competitor so that your product is verywell recognize by the customer. And if you do not have it than you have tothink about what the competitor product is giving is there something that he

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is not giving than that thing have to be find out and should be included inyour product to make it successful.

Price

It is a very important from the company or industries point of view becausethe profits of a company depends upon it. The pricing of the products shouldbe fare so as to survive in this type of market. Because if you hike the pricesa little bit your competitor will have low prices due to which you will lose thecustomer. And your competitor will gain so it is important to have fair pricesbut say for a particular period of time you may hike the prices to earncertain amount of profit.

Then there are certain discounts or free items you give so as to attract thecustomer due to which you can earn more and your inventory also getcleared quickly. In this way you can increase your customer and also theprofit that you generate will shoot up.

Place

Develop the habit of reviewing and reflecting upon the exact location wherethe customer meets the salesperson. Sometimes a change in place can lead

to a rapid increase in sales.

You can sell your product in many different places. Some companies usedirect selling, sending their salespeople out to personally meet and talk withthe prospect. Some sell by telemarketing. Some sell through catalogs ormail order. Some sell at trade shows or in retail establishments. Some sell injoint ventures with other similar products or services. Some companies use

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manufacturers' representatives or distributors. Many companies use acombination of one or more of these methods.

For selecting the best method you need to see where there are morecustomer and set a place near to them so that you may able to increase

your customer and also the sales and profit for providing these type ofservices.

Promotion

Promotion includes all the ways you tell your customers about your productsor services and how you then market and sell to them. Small changes in theway you promote and sell your products can lead to dramatic changes inyour results. Even small changes in your advertising can lead immediately tohigher sales.

In todays world the companies whether large or small does the promotionwork and also keeps on changing the ways of promotion and try toexperiments with new things as the environment is dynamic certain thingwhich are working good right now may not work good in future due tocertain reasons that you will know but sometime there is no reason but hasnot clicked in the minds of customers. So to increase your sales you have totry or say adapt to new advertisement or ways of promotion.

1. TARGET CUSTOMER

Every organization prepares certain type of things. Which he will sell it to thecustomer but there are certain customer who like the product and willing toby that product regularly. Such type of customer are called the target

customer.

Through this you can know whether the brand has been approved by thecustomer or not from this way you can decide who are your target customer.Sometime you can also decide it by seeing that where your brand is loved inwhich region of Ahmedabad and their you will find your customer or targetcustomer.

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Importance of having target customer are:-

It is essential to become familiar with your target market, their habits,

behaviors, likes, and dislikes.

Markets differ in size, assortment, geographic scale, locality, types of

communities, and in the different types of merchandise sold and

because of the many variations included in a market it is essential,

since you cannot accommodate everyones preferences, to know

exactly who you are marketing to and the specific fondness of that

market.

To better become acquainted with the ins and outs of your designated

target market legend a market analysis must be completed.

A market analysis is a documented examination of a market that is

used to enlighten a businesss preparation activities surrounding

decisions of inventory, purchase, work force expansion/contraction,

facility expansion, purchases of capital equipment, promotional

activities.

1. PLACE :DISTRIBUTION NETWORK

Place, more commonly called distribution , includes the organizations,locations, and processes that support the creation and fulfillment of

customer demand, and provide any required post-purchase service. Effectivedistribution provides customers with convenience in the form of availability,access, and support .

Distribution decisions have both strategic and logistical dimensions:

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Strategic distribution is a competitive advantage that accrues generallyfrom the configuration of a distribution network and, more specifically, fromthe selection of partners who intermediate between the company and thecustomer by performing necessary fulfillment and service activities.

Logistical distribution , which is geared to efficiently supporting thestrategic objectives, refers to the storage and movement of goods,information, and money between the manufacturer and the final customer.Logistics is sometimes inappropriately viewed as an exclusive operations

function. In reality, marketing often has a major role in the day-to-daylogistics process with responsibilities ranging from sales forecasting anddemand management to inventory planning and the allocation of shortsupplies.

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Fig 1.3 GENERAL FLOW OF DISTRIBUTION

2. PRICES

Market value, or agreed exchange value, that will purchase a definite

quantity, weight, or other measure of a good or service. As the consideration

given in exchange for transfer of ownership, price forms the essential basis

of commercial transactions. It may be fixed by a contract, left to be

determined by an agreed upon formula at a future date, or discovered or

negotiated during the course of dealings between the parties involved. In

commerce, it boils down to what

(1) a buyer is willing to pay

(2) a seller is willing to accept, and

(3) the competition is allowing to be charged.

With product, promotion, and place of marketing mix, it is one of the

business variables over which a firm can exercise some degree ofcontrol. Itis a criminal offense to manipulate prices in collusion with other suppliers,

and to give a misleading indication of price such as charging for items that

are reasonably expected to be included in the advertised, list, or quoted

price. Called also sale price and selling price10().

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Different type of Pricing are :-

i. Competition-based pricingii. Cost-plus pricingiii. Creaming or skimming

iv. Limit pricingv. Loss leadervi. Market-oriented pricingvii.Penetration pricingviii.Price discriminationix. Premium pricingx. Predatory pricingxi. Contribution margin-based pricingxii.Psychological pricingxiii.Dynamic pricing

xiv.Price leadershipxv.Target pricingxvi.Absorption pricingxvii.Marginal-cost pricing11()

1. PROMOTION AND ADVERTISMENT CAMPAIGN

Promotion is communicating with the public in an attempt to influence themtoward buying your products and/or services.

Advertising is a form of communication intended to persuade its viewers,readers or listeners to take some action. It usually includes the name of aproduct or service and how that product or service could benefit theconsumer, to persuade potential customers to purchase or to consume thatparticular brand.

Different types of media can be used to deliver these messages, including

traditional media such as newspapers, magazines, television, radio, outdoor

or direct mail. Advertising may be placed by an advertising agency on behalf

of a company or other organization.

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Importnace of Promotion

i.it helps to increase sales in a competitive market and thus, increasesprofits;

ii. it helps to introduce new products in the market by drawing the attentionofpotential customers;

iii. when a new product is introduced or there is a change of fashion or tasteofconsumers, existing stocks can be quickly disposed off;

iv. it stabilizes sales volume by keeping its customers with them. In the ageof competition it isquite much possible that a customer may change his/hermind and try other brands. Various incentives under sales promotionschemes help to retain the customers.

2. COMPETITORS

Any person or entity which is a rival against another. In business, a

company in the same industry or a similar industry which offers a similar

product or service. The presence of one or more competitors can reduce the

prices of goods and services as the companies attempt to gain a larger

market share. Competition also requires companies to become more efficient

in order to reduce costs.

We can know our competitor by a competiton analysis:-

Competitor analysis in marketing and strategic management is an

assessment of the strengths and weaknesses of current and potential

competitors. This analysis provides both an offensive and defensive strategic

context through which to identify opportunities and threats.12()

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3. EXPORTS

These are nothing but, which are the different product that the company isproducing and sending to different countries outside India. In this way they

can earn lots of money or we can say that business will have lots of foreign

money with them.

It generally mean that when you send product of your company outside

India.

FINANCE

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DEFINATION OF FINANACE

It is a very important part for the business because of this the company orindustries cannot operate very well. For performing our day to day work werequire money. Even to perform any business activity we require money.Without money the business cannot run.

1) SOURCES OF FINANCE

A company would choose from among various sources of finance dependingon the amount of capital required and the term for which it is needed. Thereare two ways they can take money

They can issue share or IPO

They can sell their assets

They can take loan or take money on credit

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In the first we can also call it as ownership capital. In this you give yourcompany shares to the people who in return give you money, and you givethem the shares these are of two types :-

Ordinary shares: These are also known as equity shares and give the

owner the right to share the companys profits and vote at the firmsgeneral meetings.

Preference shares: The owners of these shares may be entitled to afixed dividend, but usually do not have the right to vote.

In the second step we have to just sell our assets and at high price. So thatyou can earn enough profit or enough money from that sale.

In the third step, we can also call it as non-ownership capital. Non-ownership capital includes funds raised from lenders, such as banks andcreditors. Companies typically borrow a fixed amount from a bank, at apredetermined interest rate and with a fixed repayment schedule. Certainbank accounts offer overdraft facilities. This is used by companies to meettheir short-term fund requirements, as they usually come at a very highinterest rate.

Sources of Finance: Duration

Depending on the date of maturity, sources of finance can be clubbed intothe following:

Long-term sources of finance: Long-term financing can be raised from thefollowing sources:

Share capital or equity share

Preference shares Debentures/Bonds of different types Loans from financial institutions

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Medium-term sources of finance: Medium-term financing can be raisedfrom the following sources:

Debentures/bonds Public deposits/fixed deposits for duration of three years Commercial banks Lease financing / hire purchase financing

Short term sources of finance: Short-term finances can be raised fromthe following sources :-

Trade credit Commercial banks Fixed deposits for a period of 1 year or less Advances received from customers Various short-term provisions

1) CAPITAL STRUCTURE

A mix of a company's long-term debt, specific short-term debt, common

equity and preferred equity. The capital structure is how a firm finances its

overall operations and growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while

equity is classified as common stock, preferred stock or retained earnings.

Short-term debt such as working capital requirements is also considered to

be part of the capital structure.

We can also say it in more different ways

A company's proportion of short and long-term debt is considered whenanalyzing capital structure. When people refer to capital structure they aremost likely referring to a firm's debt-to-equity ratio, which provides insight

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into how risky a company is. Usually a company more heavily financed bydebt poses greater risk, as this firm is relatively highly levered13().

COMPONENTS OF CAPITAL STRUCTURE

Various type of debts

Preference and ordinary shares

Retained earnings

i.e. liability and equity compose the capital structure.

FACTORS AFFECTING CAPITAL STRUCTURE:-

The three effects of leverage: expected ROE tends to increase, thevariability of the ROE increases, and the risk of financial distressincreases.

The major determinants of the firms capital structure decision are itsimpact on profits, risk and cash flows.

Impacts can be assessed by profit planning charts, financial break-evenanalysis and use of standard ratios

Debt creates value because interest on debt is tax-deductible

The tax incentive to use debt is offset by the resulting financial distressand bankruptcy costs

In a dynamic world, firms depart from the static trade-off optimal debtratio over time, then refinance to bring it back in line with the targetdebt ratio.

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Actual capital structures are constantly changing as firms takeadvantage of market conditions.14

1. BASIC RATIOS

These are the ratios which are useful in calculating ratios which will help

in computing the performance of the company. Financial ratios can be

classified into :-

Liquidity ratios

Financial leverage ratios

Profitability ratios

Equity valuation ratio

Personnel

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1. STRENGTH OF PERSONNEL DEVELOPMENT

It plays a very important part of the organization as the industries has

understand that to increase your production you need to make your

employee happy. Also came to know that their most important assets are

their employees. To make them happy you need to understand their goals,

needs. Try to make such organizational goals which in the end matches the

needs of the employee which will motivate them to do work.

These are some of the other strengths:-

Also helps the organization to low their employee turnover.

Will help them to retain more of employees.

To contribute to the employee development.

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On the other hand, challenges do not cease for the HRM. Modernorganizations can survive in the dynamic, competitive environment of todayonly if they capitalize on the full potential of each employee. Unfortunately,many companies have not understood the importance of the human capitalin successful operations.

1. RECRUITMENT POLICY

In todays competitive world we need to have a good recruitment policy. As

it is important to have best people at the best place or we can say that these

people are very talented people. It will also help the organization to recruitthe people at the time when these people are really required. Your objective

of recruitment must be very clear in the mind of the organization and select

the best qualified people.

A recruitment policy of an organisation should be such that:

It should focus on recruiting the best potential people.

To ensure that every applicant and employee is treated equally with

dignity and respect.

Unbiased policy.

To aid and encourage employees in realizing their full potential.

Transparent, task oriented and merit based selection.

Weight age during selection given to factors that suit organization

needs.

Optimization of manpower at the time of selection process.

Defining the competent authority to approve each selection.

Abides by relevant public policy and legislation on hiring and

employment relationship. Integrates employee needs with the organisational needs.

FACTORS AFFECTING RECRUITMENT POLICY

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Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Need of the organization. Recruitment costs and financial implications.

1. TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures

that randomness is reduced and learning or behavioral change takes place instructured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT

Traditional Approach Most of the organizations before never used to

believe in training. They were holding the traditional view that managers are

born and not made. There were also some views that training is a very

costly affair and not worth.

The modern approach of training and development is that Indian

Organizations have realized the importance of corporate training. Training is

now considered as more of retention tool than a cost. The training system in

Indian Industry has been changed to create a smarter workforce and yield

the best results.

2. REWARD SYSTEM :-

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Employee reward systems refer to programs set up by a company to rewardperformance and motivate employees on individual and/or group levels.They are normally considered separate from salary but may be monetary innature or otherwise have a cost to the company. While previously consideredthe domain of large companies, small businesses have also begun employing

them as a tool to lure top employees in a competitive job market as well asto increase employee performance.

These can be of two types :-

MONETARY:- These are rewards in which you get money as an reward ofyour best work. There can be money or any other incentive but in form ofmoney.

NON-MONITERARY:- These are rewards which are not monetary but can bea incentive in the form of house or any other form of non-monetaryincentive.

SOCIAL

RESPONSIBILITY AND

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PROTECTION

MEASURES

Social responsibility is an ethical or ideological theory that an entity

whether it is a government, corporation, organization or individual has a

responsibility to society at large. This responsibility can be "negative",

meaning there is exemption from blame or liability, or it can be "positive,"

meaning there is a responsibility to act beneficently (proactive stance)15.

ENVIRONMENTAL PROTECTION MEASURES:-

As the global warming is increasing regularly and as the atmosphere is

degrading so there is need to have some protection measures. So that wecan make a healthy environment for our future generation and also saving

us. So there are certain measures which are taken by the government like

pollution control act in which they have charge according to the pollution

which they create. There are certain things that a industry can do like they

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could clean the waste water which they sent directly into the water reservoir

which will save marine life.

AWARDS AND

ACHIEVEMENTS

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AWARDS AND ACHIEVEMENT

Every company has some good things that are very different from the other

industries for which they are been nominate and get some award.

Similarly there are achievements for the organization like for the quality of

goods you make you may be given ISO199 which can be stand for the

achievement for the industries.

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.

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PART(B)

INDEX

Contents

INTRODUCTION OF THE INDUSTRIES........................................................................40

GENERAL..................................................................................................................46

(A)ORGANISATIONL DESIGN.....................................................................................47

(B)PRODUCTION.......................................................................................................53

(C) MARKETING.........................................................................................................73

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(D)FINANCE..............................................................................................................79

(E)PERSONNEL..........................................................................................................89

(F)SOCIAL RESPONSIBILITY AND ENVIRONMENT PROTECTION MEASURE.................93

(G)AWARDS..............................................................................................................95

AND ACHIEVEMENT..................................................................................................95

Bibliography...........................................................................................................100

SOURCES OF INFORMATIONS.................................................................................101

SOURCES OF INFORMATIONS

CONTENT PAGE

SR.NO NAME OF THE TOPIC

1 INTRODUCTION TO THE INDUSTRIES

i. Brief overview of the industries

ii. History of the company

iii. Introduction to the founding members

iv. Objective of the company

2 GENERAL

a ORGANISATIONAL DESIGN

I. top management

II. Hierarchy

III. Organisational Structure and charts

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IV. Departmentalization and its basis

b PRODUCTION

i. Plant Location

ii. Product Portfolio

iii. Plant Operation

iv. Quality Control

c MARKETINGS

I. 4Ps of Marketing

II. Target Customer

III. Place: Distribution network

IV. Price

V. Promotion and Advertising CampaignVI. Competitors

VII. Exports

d FINANCE

i. Sources of Finanace

ii. Capital Structure

iii. Basic Ratios

e PERSONNEL

I. Strength of the Personnel Development

II. Recruitment Policy

III. Training and Development

IV. Reward System

f SOCIAL RESPONSIBILITY AND ENVIRONMENT MEASURE

g ACHIEVEMENT AND REWARDS

h CONCLUSION

i. Objective of the Industrial Visit

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ii. Student perception about the Company

BIBLIOGRAPHY

SOURCES OF INFORMATION

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INTRODUCTION

OF THEINDUSTRIES

(A) BRIEF OVERVIEW OF THE INDUSTRY :-

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PLASTIC INDUSTRY16(Broking, 2008)

Plastic as a product has come up as a strong substitute for commodities likecement, steel & other metals. This has resulted in the possibility of buildingstructures & products which are not only cheaper but are also built in lesser

time compared to those build by conventional method. Demand for thecompany's products is poised to increase with the ongoing capex in

infrastructure-build up happening in India currently. This includes capex onpower transmission and distribution/ utilities (electrical accessories),telecommunication infrastructure (BT shelters), small cars/ componentsmanufacturing (auto accessories), oil drilling (pre-fabricated structures); aswell as government and corporate spend on education/ sanitation/healthcare/ housing etc.

(B) HISTORY OF THE COMPANY17(Broking, 2008):-

1931-74

1931: Incorporated as The Bharat Vijay Mills in June Established composite mill in Kalol, Gujarat

1975-90

Commenced plastic molded polyethylene liquid storage tanksmanufacturing

Introduced new plastic products like doors, windows, frames andpallets

Introduced quality corduroy fabric in India

1991-2000

16 Company, Angel Research

17 Company, Angel Research

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1995: Name changed to Sintex Industries Commenced manufacture of SMC molded products, pultruded

products, resin transfer molded products and injection molded products Modernisation and expansion of its Textile unit

Commenced structured yarn dyed business

2000 - Present

Alliance with European design houses and a UK based textilemarketing company

Commenced production of pre-fabricated structures for classrooms,booths, kiosks

and office rooms Entered Housing sector with monolithic construction

Acquisition of 74% stake in Zeppelin Mobile Systems First international acquisition - acquired 81% stake in Wasaukee

Composites Inc, USA. Acquired 100% stake in Nief Plastic SA, a French company Acquired automotive business division of Bright Brothers Wausaukee acquired 100% stake of its competitor, Nero Plastic Inc.,

USA.

(A)INTRODUCTION TO THE FOUNDING MEMBERS18() :-

Dinesh Patel

Chairman B.Sc From Bombay UniversityMore than 5 Decades of experience

18 Annual Report 2008-09 Accessed on 02-03-10

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Arun P.PatelVice-Chairman B.Sc From Bombay University More than 5 Decades of experience

Rahul A Patel

Managing Director Bachelors degree in Communications. MBA from USA. More than 24 years experience in textile and plastic

Amit D PatelManaging Director Bachelors degree in commerce

MT from USA 18 years of experience in textile, chemical and plastic

S B Dangayach

Managing Director B.Sc (Hons). P.G.D.B.A from IIM Ahmedabad 3 decades of experience in plastics

L.M. Rathod

Group CFO & CS Graduate in commerce and law, MBA and FCS 2 decades of experience in corporate finance, company law and taxation

Sunil KanojiaGroup President Graduate in Engineering and MBA from IIM-A 23 years of domestic and international experience, across industries

Sintex Group companies are managed by independent professionals

David Lisle

President CEOWausaukee Composites Inc., USA. BS and MS degree in Geology and Geophysics respectively and MBA. 18 years of wide and entrepreneurial management experience acrossindustries

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Executive committee member, American composites manufacturersAssociation

Gilles NiefPresident CEONief Plastic SAS, France. Graduate from IAE University, Lyon Managed family business since 1973 President of Regional French Plastic industry

Indru G AdvaniPresident CEOBright AutoPlast.Pvt.Ltd, India.

Mechanical Engineer and Management Graduate Managing Bright Auto Plastic business since 1970

Sandeep HarshCEOZeppelin Mobile System, India. Masters degree in commerce and MBA. Two decadexs of wide experience across construction, building materialand telecom industry

Neelesh JainCEOZeppelin Mobile System India, Digvijay division Bachelor of Engineering in Electronics

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(B) OBJECTIVE OF THE COMPANY19()

Your Company firmly believes that good Corporate Governance practices will

allow your Company to sustain its competitive strength and take a road tohigh performance achievements. Sintex Industries Limited constantly strivesfor overall development of the Company in line with its objective andthereby ensuring the compliance with its corporate governance policieswhich it has adopted over a number of years. The management andemployees of the Company are bound by the code of conduct and businessethics that leads Sintex to an aspiring future. Your Company has alwaysemphasized on high integrity, moral business values and strong businessprinciples. Through this report Sintex grabs an opportunity to allow itsshareholder's to have an understanding about the modus operandi of theCompany.

MOOTO OF THE COMPANY IS

Innovations for a better tomorrow20()

PHILOSOPHY:-

The philosophy of the Company is to make product which are innovative and

also which are not in demand or their demand is less and try to promote

them. That why they Call them the Active Thinkers who always think

before doing any work and also are the innovative thinker.

19 Annual Report 2008-09 Accessed on 02-03-10

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GENERAL

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(A)ORGANISATIO

NL DESIGN

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(I) TOP MANAGEMENT21

Mr. Dinesh B. Patel Chairman

Mr. Arun P. Patel Vice Chairman

Mr. Rahul A. Patel Managing Director

Mr. Amit D. Patel Managing Director

Mr. S.B. Dangayach Managing Director

Mr. L.M. Rathod Group C.F.O. & Company Secretary

Mr. Sunilkumar Kanojia Group President (Corporate)

Mr. Sanjib Roy Senior President SBU-I (Plastic Div.)

Mr. S. Venkatachalam President SBU-II (Plastic Div.)Mr. B.R. Jayswal President Fin. & Acc. (Plastic Div.)

Mr. Rajan Gulabani Vice President Marketing (Plastic Div.

Mr. S.M. Anerao Vice President Marketing (Plastic Div.

Mr. A.C. Saxena Vice President Marketing (Plastic Div.

Mr. Balakumar Rajgopalan Vice President Housing (Plastic Div.)

Mr. Shashidhar B.C President Marketing. (Textile Div.)

Mr. Ashoke Maitra President Opr. (Textile Div.)

Mr. R.A. Sharma President Proc. (Textile Div.)

Mr. Manven Dubey Vice President MIS

Mr. Siddhartha Jha Vice President Tech. (Textile Div.)

Mr. Rajiv Naidu Head - IR & PR

21 Annual Report

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(II) HIERARCHY

They follow the general hierarchy in their organisation. That is :-

Fig the flow of their General Hiererchy22(, 2010)

IMPORTNCE OF HAVING SUCH HIERARCHY :-

1. It serve as a channel of communication. It makes clear to every officer

as to whom he is to deal with.

2. It enable us to fix responsibility at each level and at each post in the

organization.

3. The scale of through proper channel created by the, principal of

hierarchy ensures strict adherence to procedures and avoid short-

cutting.

22 Mr. Sanjib Roy, President SUB-II, class room discussion

49

Mr. DINESH B. PATEL

CHAIRMAN

Mr. ARUN B.PATEL

VICE-CHAIRMAN

Mr. Rahul A. Patel

MANAGING DIRECTOR

Mr. Amit D. Patel

MANAGING DIRECTOR

Mr. S.B. Dangayach

MANAGING DIRECTOR


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4. It lessens, the work at the higher level and decentralizes the decision

making.

BUT THERE ARE CERTAIN THINGS ON WHICH THEY CAN

IMPROVE UPON :-

1. In this direction flows from top to bottom. So, the lower level manager

has to accept the decision of top level management.

2. It is a very rigid structure and it will not properly work in the

dynamic situations.

3. Delay in disposal of work.

(I) ORGANISATIONAL STRUCTURE AND CHARTS :-

Fig the flow of their Organizational Structure23(, 2010)

They have made their own organisational structure which is based on SBU

that is Strategic Business Units, generally every business unit would have

specific criteria. SBU for example must have

23 Mr. Sanjib Roy, President SUB-II, Live discussion

50

Mr. S.B.

Dangayach

MANAGING

Mr. Sanjib Roy

SENIOR

PRESIDENT

Mr.

Venkatachalam

President


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i. Have its own mission, different from the missions of other SBUs.

ii. Have definable group of competitors.

iii. Prepare its own integrative plan.

Advantages of having SBUs :

1. They can differentiate their products from the large product portfolio.

2. They can preserve the energies and attention of manger and staff as

they both have to concentrate on that product.

3. It is a way you can promote entrepreneurship.

(I) DEPARTMANTALIZATION AND ITS BASIS :-

It is both process and product departmentalization as the organization

is divided into (i) SBU that is on process basis

(ii) each SBU has given certain products like:-

SBU I deals in prefabs products

SBUII deals in electrical and industrial products

Advantage of having together are:-

i. As they can specialize in their own product and also will be able to

give the customer what they like.

ii. As they will be dealing with certain products the work load will

reduce.

iii. As both can easily do their customized contract very easily.

But there are certain things were the industries can improve upon:

i. Instead of having both they can have it separate so that the work

load of manager is less.

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ii. If they do this they will require labour and due to which they can

employ more people which will be good for the economy.

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(B)PRODUCTION

I. PLANT LOCATION

Company Name: SINTEX INDUSTRIES LTD

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Business Type: Manufacturer

Product/Service

(We Sell): Water Storage Tanks, Panel Tanks etc.

Brands: Sintex

Number of Employees: 501 - 1000 People

Factory Size (Sq.meters): Above 100,000 square meters

Factory Location: Nr. Seven Garnala, Kalol (NG) 382721

Number of Employees: 501 - 1000 People

BUSINESS UNIT: Plastic Division

Advantage of the location are:-

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1) As the Plant is near to the Railway Station. It becomes easy for the

company for transportation of the raw material and the sending of

Finished goods at cheaper rate of transport.

2) As the Factory is located at the outskirt the labour there will be easily

available and also at cheap rate.

I. PRODUCT PORTFOLIO

The industries deal in lots of products but we have taken only the plastic

section products as we have to do specialization in those products only.

PRODUCTS

BUILDING INTERIORS INDUSTRIAL ELECTRICAL COUNSUMER CUSTOM

MOULDING

A) BUILDINGS AND CONSTRUCTION

I Sintex Water Tanks

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Advantages:

Rust proof

Light weight and durable

Hygienic

Maintenance-free

Tested and approved by leading laboratories, industries andinstitutions

Available in various capacities from 200 litres to 25,000 litres or evenmore

II Reno Water Tanks

Unique Features:

One-piece moulded without seams or joints and hence leak-proof

Hygienic

Maintenance-free

Light weight and hence easy to carry and install

Removable lids with clamping device

Computerised ribbed design for better strength

Versatile

Aesthetically appealing

Optimum design for economy

III Underground Water storage Tanks (SUMPS)

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Unique Features:

One piece moulded without any joints, seams or welds

Impermeable to roots of trees

Rust proof and leak proof

Hygienic and suitable for potable water

Computerized design for excellent strength

Non-porous and does not allow contamination of water kept in thetank

Lightweight and easy to transport

Easy to install

Durable and economical

IV Septic Tanks24()

Unique Features:

Eco-friendly

Rust proof and Leak proof

Durable

Light weight and easy to transport

Easy to install

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Economical than conventional septic system

Excellent performance on reduction of BOD

V FRP Underground Water Stroge Tanks

Unique Features:

Compliance to FDA grades

Impermeable to roots of trees

Rust proof and leak proof

Hygienic and suitable for potable water

Structurally strong Computerized design for excellent strength

Non-porous and does not allow contamination of water kept in thetank

Lightweight and easy to install / transportDurable and Cost effective

VI PVC Pipes

Unique Features:

Non Toxic

Smooth Inside Bore

Low Installation Cost

Chemical Resistance

Non Bio Degradable

Flexible

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VII FMD Doors

Unique Features:

Reinforced with excellent polymeric reinforcement to avoid weathereffects

Suitable for toilet, bathroom and kitchen door

Options of single & multi panel door

Available in all standard shades of SINTEX

VIII Royal Doors

Unique Features:

Extremely Elegant

Beauty with Durability

Perfectly designed for stability & versatility

100% Water Proof & Weather Proof

Rot Proof & Termite Proof

100% Maintenances Free

IX Solidor Doors

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Unique Features:

Made out of 5 mm thick PVC foam sheet

Reinforced with suitable MS tube

Suitable for toilet and bathroom door

A)INTERIORS

i. Sintex Plastic Section

Unique Features:

No painting or varnishing

Light-in-weight

Consistency in quality

Easy to install

Time and labour saving

High durability

Wide colour range

High aesthetic appeal

Reusable

Available with Polyurethane Foam or glasswool for improved thermaland sound insulation properties in selected sizes

i. Reno Plastic Section

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Unique Features:

No painting or varnishing

Light-in-weight

Consistency in quality

Easy to install

Time and labour saving

High durability

Wide colour range

High aesthetic appeal

Reusable

Available with Polyurethane Foam or glasswool for improved thermaland sound insulation properties in selected sizes

A) INDUSTRIAL

I Pallets

Unique Features:

Cost effective

Compatible with all existing lifting systems

Easy to clean & wash Excellent resistance to most chemicals

Maintenance-free

Rot proof

Extensive testing to ensures quality standards

Secure

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Robust design to render long service

Meets all GMP requirements

Hygienic

Water proof

High impact strength and rigidity

II Chemical / Acid Storage Tanks (Cylindrical Vertical)

Unique Features:

Best raw material base

Seamless construction

Reasonable cost

Excellent after-sales-service

Latest manufacturing technique

Immunity to maintenance

Long life

III Injection Moulded Pallets

Unique Features:

Cost effective

Compatible with all existing lifting systems

Easy to clean & wash

Excellent resistance to most chemicals

Maintenance-free

Rot proof

Extensive testing to ensures quality standards

Secure

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Robust design to render long service

Meets all GMP requirements

Hygienic

Water proof

High impact strength and rigidity

A)ELECTRICAL

SMC Meter Boxes

Unique Features:

Single piece moulded without any joints

Concealed metal hinges

Mounting screws fitted from inside

Metal hardware for wire seal

Adequate space for meter and cut-outs

Light weight, yet strong

Wide range for different applications Excellent weatherability

Safe for consumers

Prices matching with conventional meter boxes

SMC Distribution Boxes

Unique Features:

High heat distortion temperature (2000C) as per IS: 10192)

Fire retardant-Class FV as per IS:11731 Part II or V as per UL 94

Non-fusing

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Shock-proof & rust-proof

Rot-proof and termite resistant

100% weatherable-ideal for use both indoors and outdoorsElegant appearance.

SMC Danger Notice Plates

Unique Features: Excellent finish and dimensional consistency

Excellent outdoor weather ability

Rust proof

Withstands solar radiation and heavy rains

Maintenance free: Base material SMC does not corrode. Hence, paintingremains in place for longer duration

Transparent coating over the printed matter is also weather resistant

Pilfer proof: Zero resale value in scrap market No fear of vandalism

A)COUNSUMER

Waste Bins & Containers

Unique Features:

Moulded from special UV stabilized grades of polyethylene

Rust-free and maintenance-free

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Colourful and elegant

Light weight and easy to handle

Hygienic and easy to clean

Strong and durable

Can be provided with fittings for locking bins to posts or walls or otherpermanent members of a building.

Multi Bins

Unique Features:

Made from virgin HMHDPE material

High impact strength

Nestable

With twisting lock lid

Hygienic and easy to clean

Light weight and easy to handle

Colourful and elegant Washable

Specially designed for more versatility

Solar Water Heating System

Unique Features:

Safe & Hygienic

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Low maintenance and operating cost

Easy to install

With improved PUF design

Plastic based materials used hence no problems of corrosion/rust

Top cover of glass not required

Ideal for bungalows, flats, hospitals, hotels, hostels, canteens,industries, govt. Houses.

Floating Type Bio Gas Plants

Unique Features:

Moulded in One Piece

Ready to use, install, dismantle & maintain

Supplied in knock down condition

Easy to assemble at site by the way of bolts

No problems of leakage

Can be used over ground or under ground

No hassle for cleaning

Easy to relocate, if required

Milk Cans

Unique Features:

Manufactured from FDA grade of polyethylene materials hence absolutely non-toxicand odour free

Seamless & smooth inside surface for prevention of bacterial contamination

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Inherent non-stick property prevents from accumulation of fats in the inner surface

Economical alternative to the conventional Milk Cans

Easy to clean.

Road Dividers

Unique Features:

One piece moulded

UV Stabilized

Can be made available in different colors & shapes as per customersdesign

Self supporting

Ideal supplement to conventional dividers as maintenance free,corrosion free & all weather proof

Planters

Unique Features:

No bleeding, flaking or chipping

Does not spoil carpet or floor as available with collecting trays

Available with holes for water drainage

100% simulation of terra cotta finish

A special formulation that does not stunt growth of the plants

Enhances the get-up of the inner decor

Light weight and hence can be shifted easily

Remains elegant for years

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I. PLANT OPERATION

These are the 12 main process that are been performed within a singleplant. And it is Asias most integrated plastic processing industry.

*Rotational Moulding*Extrusion*Compression Moulding*Blow Moulding*Injection Moulding*Pultrusion*Reaction Injection Moulding

*Resin Transfer Moulding*Twin Sheet Thermoforming*Single Sheet Thermoforming*Light RTM And Vacuum Bag Infusion Molding*Liquid Composite Molding

The whole processes is not discussed with us but only on two process we

have some primary dat. They are only two processes on which we are doing

specialization

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PROCESS

ROTO MOULDING EXTRUSION

PRE MOULDING ROCK ANDDEPT ROLL

EXTRUDER CALIBRATION HAWLON PART CUTTER UNIT TILLING

Roto moulding(, 2010)

Raw material is LLDPE- linear low density Poly Ethylene

PRE MOULDING DEPT

It is that department in which the LLDPE is Moulded before sending it to the

Rock and Roll Machine.

There is one rock and roll machine in which this LLDPE is heated with the

help of natural gas. In this Machine the raw material is heated for 9min.

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And then there is cooling station just opposite of rock and roll machine

where it is been cooled. There are 4 tanks in which heating is done and

there are 2 shifts in this process 7 to 4 and 4 to 11.

Extrusion Process(, 2010)

Parts involve in it are:-

1. Extruder

2. Calibrations part

3. Haulon part

4. Cutter unit

5. Tilling or collection unit

Raw material- PVC (polyvaride carbonate)

This is use as a material because the other material like cement and iron can

get effected by the environment like iron get rusted. So as this is of plastic

its durability is more and it does not get rusted also.

1. Extruder

In this part the profile is being heated and various heat stabilizers are being

added to the profile to heat it well then the profile is push ahead in that

machine the whole profile is being shaped properly then again pushed ahead

for next process.

2. Calibration Part:-

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In this the profile is being cooled and the shape of this profile is maintained

and the profile is been cooled with vacuum chillers being installed at the

machine.

3. Haulon part.

The profile is been kept and it is been further cooled and dyes are applied on

the profile.

4. Cutter unit

In this part now the profile is been cut into different length which is been

given by the customer and accordingly that shaped the profile is been

cutted.

5. Collection part

This the part in which the ultimate result is been shown. The output is

65kg/h to 70kg/h. For single door shutter 150kg/h

The extrusion process is a continues process.

The next process is the ahead process after the collection part that is

Lamination department

Raw material is the profile that we collected from the extrusion process

In this we can find profile in glossy finish or in matt finish.

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There are basically 3 parts

i. Rolling- in this rollers are been moved on the profile in which

certain chemical solvent are used.

ii. In the second part the profile is been given either the glossy ormatt finished are been done according to the customer demand.

iii. UV chamber- this is an ultra violet chamber where the profile is

been dried completely.

We can find the glossy finish which can find it with D and M for matt

finish.

I. QUALITY CONROL.

There is in-house quality departments and there are 3rd party which does the

quality checks if they are very technical products. They also have certificate

like ISO 9000 which itself says that the product have that quality with that

product. The other are ISO 9000/9001/9004/19011: 2000

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(C) MARKETING

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I. 4Ps OF MARKETING :

1 Price

They have their own pricing policy. They have set their own policy. They

provide discounts only when the order is very bulky. They are facing lots of

problem in the regional area to fix the prices, as they are facing tough

competition from these regional players.

2 Product :-

They have lots of products in their bank which help them to cover the risk of

the other products and also they are a national player and there is no one

who can touch them as they are pioneer in the plastic tanks of all size. They

have their branch and also which help them to send their product in different

which also help in reducing their risk and make them ahead of the other

player.

3 Place :-

They do not have special place they send to their near branch and the

customer can go and take from that near branch where they have send the

product. They have a station just near to place where they can transfer the

product from one place to another very easily.

4 Promotion :-

They not do so much of advertising as they are pioneer in some of the

product but they have started their new product that is Reno for which

they have done its promotion activity but not on the large scale. They have

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only have hoarding which is more in the Kalol where they have the company

situated.

II TARGET CUSTOMER :-

Our enviable position in the market, client centric approach, quality productsand innovation driven ideas have enabled us to garner a huge client base inEuropean, American, African, and Asian markets including countries likeFrance, Germany and USA. We are proud to have Siemens, Eicher, RelianceEnergy, Reliance Infocomm, Larsen & Toubro, UNICEF, WHO and CARE asour major clients.

Our commitment towards quality, client centric approach and innovationdriven ideas have enabled us to garner a huge client base in European,

American, African, and Asian markets including countries like France,

Germany and USA.

Our major clients in INDIA are:

ABB

Siemens

Eicher Reliance Energy

Reliance Infocomm

Larsen & Toubro

MK Electric

UNICEF

WHO

CARE

Torrent Pharma

Cipla Ranbaxy

GE Motors

III PLACE : DISTRIBUTION NETWORK :-

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This is the way they generally distribute their product to the customer. They

send some of the sale in head office and some they kept with them and

customer can take from any one of them, in the way the customer feel

convenient.

IV PRICE :-

They have normal pricing system that is what the market sets they follow

that price they do not have any pricing strategy. They only change the price

when suddenly the price of the raw material has increased so it may happen

that they will charge so that the profit of the company should not getaffected.

V PROMOTION AND ADVERTISING CAMPAIGN :-

They not do so much of advertising on TV as they have given only one AD

after which they have not given but they do give some AD in paper but not

on regular basis occasionally and also the use less of radio and othermedium of the promotion to increase their sale as they are having little

monopoly in some of the product which so do not required but now they do

will require the promotion so to create awareness for the usage of more of

green-product so that we will be able to see a bright future ahead. So, to

76

HEAD

OFFICE

BRANCH

OFFICE

SALES

SALES

CUSTOME

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see a good sale in their green-products they will have to do some promotion

work, so as to increase the sales.

VI COMPETITORS :-

They have many competitors which do affect the work of industries and they

also sometime have to bear loss because of the competitors. Though they

are a national player. Their major part of income come from the southern

and western region. And in north Delhi is a big market. Some of their

competitors are:

SupremInd VIP Inds Finolex Inds INEOS ABS SRF Polymers Kalpena Inds Wim Plast TPL Plastech

EPC Inds Xpro India-PMS Bright Brothers Mold-tek Packaging

VII EXPORTS

Textile exports that were growing moderately till 2004-05, registered a

sharp growth of 21.7 per cent from USD 14,000 million in 2004-05 to USD

17,000 million in 2005-06 (following the scrapping of quotas) and USD

19,620 million in 2006-07. Currently, India has a 3.5-4% share in global

textile exports and 3% in clothing exports. While Europe continues to be

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India's largest export market with a 22% share in textiles and 43% in

apparels, the US remains the single largest buyer of Indian textiles and

apparels with 10% and 32.6% shares. The other countries on India's export

map include the UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and

Japan.

Readymade garments constituted the largest export segment accounting for

45% of textile exports and 8.2% of India's total exports. This segment

benefited significantly following the termination of the multi-fibre

arrangement in January 2005. The export of readymade garments from

India is expected to touch USD 14,500 million by 2009-10 with a cumulative

annual growth of 18 to 20%, according to the Apparel Export Promotion

Council.

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(D)FINANCE

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I. SOURCES OF FINANCE

Rs. In Crores

SOURCES OF FUNDS 2009 2008

Share Capital 27.10 27.10

Convertible Share

Warrants

- 47.80

Reserve and Surplus 1,667.82 1464.28

Secured Loan 1,052.65 938.16

Unsecured Loan 1,243.77 988.10

FIG Sources of Finance25

25 Annual Report Accessed On 02-03-10

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II. CAPITAL STRUCTURE :-

Non-convertible debentures

On February 18, 2009, the Company issued 11.50% secured redeemablenon-convertible debentures aggregating to Rs. 250 crores to LIC of India on

a private placement basis for financing capital expenditure on existing

operations, general corporate purpose and to meet long term working capital

purpose as well as other expenditures as permitted by the investors.

The debentures would be redeemable in three annual equal installments at

the end of the seventh, eighth and ninth year from the date of allotment.

Preferential warrants allotment

During the last year, the Company allotted 1,32,00,000 warrants at a price

of Rs. 454.74 per warrant (10% of the consideration received upfront) to the

Promoters Group on preferential allotment basis and the warrants are

optionally convertible into equity shares of Rs. 2 each within 18 months of

allotment date.

During the year under review, the promoter group to whom the warrants

were allotted informed the Company of not exercising the balance warrants

of 1,05,12,000 and the Company, thereby, forfeits the 10% upfront amount

of Rs. 47.80 crores as per the SEBI Guidelines and credited the amount to

capital reserve.

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Rs. In Crores

SOURCES OF FUNDS 2009 2008

Share Capital 27.10 27.10

Convertible Share

Warrants

- 47.80

Reserve and Surplus 1,667.82 1464.28

Secured loan 1052.65 938.16

Unsecured Loan 1243.77 988.10

Fig- capital structure26

26 Annual Report Accessed on 02-03-10

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III. BASIC RATIO :-

A. LIQUIDITY RATIO-

i. CURREN RATIO-

Rs. In Crores

2009 2008

Current Assets

2722.58 2628.72

Current Liabilities

934.76 1004.58

CR=CURRENT ASSETS/CURRENT LIABILITIES

2007-08 = 2722.58/934.76= 2.91

2008-09 = 2628.72/1004.58= 2.62

ii. Quick ratio=LIQUID ASSETS/CURRENT LIABILITIES

(Net C.A= TOTAL CURRENT ASSETS-INVENTORIES)

2007-08= 2345.48/934.76= 2.51

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2008-09= 2326.5/1004.58= 2.32

Rs. In Crores

2009 2008

Net Current Assets

2345.48 2326.5

Current Liabilities

934.76 1004.58

A. LEVERAGE RATIO

I. DEBT RATIO-

i. DEBT TO EQUITY RATIO = Debt/equityRs. In Crores

2009 2008

Debt

2,296.42 1,926.26

Equity

1,704.92 1,539.18

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2007-08= 1926.26/1539.18= 1.25:1

2008-09= 2296.42/1704.92= 1.35:1

I. Interest Coverage Ratio:-

INTEREST COVERAGE RATIO=EBIT/INTERST

EBIT=PROFIT BEFOR TAX +INTEREST

Rs. In Crores

2009 2008

EBIT

491.93 366.26

Interest

81.95 64.32

2007-08= 366.26/64.32= 5.69 times

2008-09= 491.93/81.95= 6 times

A. VALUATION RATIO

i. EPS(Earning Per Share)= PAT-PREFERNCE DIVIDEND/

NO of equity share

Rs. In Crores

2009 2008

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Pat-Preference

Dividend 325.12 230.32

No of Equity Share

135495433 117872309

2007-08= 325.12/135495433= 24

2007-08=230.32/117872309= 19.54

ii. DPS(Dividend Per Share)= TOTAL DIVIDEND PAID/NO OF

SHARES

2007-08=13.65/117872309= 1.10

2008-09=15.02/135495433= 1.01

Rs. In Crores

2009 2008

Total Dividend Paid

15.02 13.65

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No of Equity Share

135495433 117872309

A. PROFITABILITY RATIO

i. NET PROFIT RATIO= PAT/NET SALES*100

NET SALES= SALES OF RETURN-EXCISE DUTY

Rs. In

Crores

2009 2008

Profit After Tax(PAT)325.12 230.32

Net Sales

3063.88 2274.23

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2007-08= 230.32/2274.23*100=10.13%

2008-09= 325.12/3063.88*100=10.61%

ii. ROCE RATIO

RETURN ON CAPITAL EMPLOYED= PAT/CAPITAL *100

EMPLOYED

CAPITAL EMPLOYED= (EQUITY CAPITAL+PREF CAPITAL+LONG

TERM DEBT-MISCELLANEOUS EXP)

Rs. In Crores

2009 2008

Profit After Tax(PAT)

325.12 230.32

Capital Employed

4174.47 3584.55

2007-08= 230.32/3584.55*100= 6.43%

2008-09= 325.12/4174.47*100= 7.79%

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(E)PERSONNEL

I. STRENGHT OF PERSONNEL DEVELOPMENT :-

Their strength lies in our people the employees of Sintex group, in India

and abroad, are the organisations greatest assets. In addition to that, we

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cherish the companys values that are ingrained in us.

Their People: Our strength lies in our people the employees of Sintex

group, in India and abroad, is the organizations greatest assets. In addition

to that, we cherish the companys values that are ingrained in us.

Innovation Driven Ideas: The key to Sintex Groups growth is the

continuous innovation. The spirit of Active Thinking drives the organization

on its path. The innovative ideas are not just limited to the products but

they are also implemented in the manufacturing processes, markets and

management policies.

Focus: The groups focus all these years has been to align its businesses

with the growing sectors of economy. Be it health, education or telecom,

Sintex is present in all these growing sectors, hence ensuring growth even in

the hard times.

Global footprint: From a Kalol based Indian company, Sintex has become

a global group with its presence in 9 countries across 4 continents. Sintex

group serves its clients across the globe and most of them are part of the

Fortune 500 Companies list.

Sintex encourages a continuous learning environment, promoting

meritocracy. During the year under review, the Companys employee

strength touched 3,427 people. The Company was actively engaged in

imparting functional and attitudinal training to employees for maximum

productivity; other initiatives comprised a regularized recruitment process as

well as a fair and unbiased performance appraisal system with an inbuilt

feedback system. During the year under review, the Company created a

compensation structure that provided members with tangible and intangible

benefits.

II. RECRUITMENT POLICY:-

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They goes for the placement of new people to different colleges and different

job institutes and select them after they pass the different exam they give

and from the overall criterias and then they will select the best employee.

They do selection in this manner:-

RECRUITMENT

Different colleges Different Job institutes

This way they do the recruitment and then they also take exam of all of

these people and then on the overall criterias they select the best

employees.

III. TRAINING AND DEVELOPMENT :-

They do provide training to the new persons who come to join the firm andalso to the labour who is going to do some technical work these are only for

2-3 months and after they comes to the site and starts working.

IV. REWARD SYSTEM:-

They do provide reward to the in both non-monitery and monitery.

According to their work and the way the person handle the responsibility and

does the work and the end result would be seen and if it is fruitful for the

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company then he would get the inventive. Which could be in money terms

and may not be in money term but in terms of tangible things.

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(F)SOCIAL

RESPONSIBILITY AND

ENVIRONMENT

PROTECTION MEASURE

There lots of work being done in the field of social responsibility as the

chairman of Sintex has itself started a training institute where they will train

the people how the will use the green product efficient. And also for saving

the environment they are the one who have started green products. In this

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the company will manufacture solar cookers, solar water heater, bio-gas

panel etc. These type of work if continued will surely be accepted by any

person and will buy these environmental friendly product for sure and in

future their need would definitely rise.

They are also making houses from the PVC which will be much economical to

buy and also to use them which will not only give you shelter but also want

that every people should have so that there would be no people who do not

have a house to live.

They also have grown lots of trees within their plant and many to get fresh

of air as the people work who work for the whole day and after finishing the

work they will enjoy the beauty of the nature.

So for every industry should try to not provide only environment of working

condition place but also the surrounding areas so that the worker would also

feel more good.

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(G)AWARDS

AND ACHIEVEMENT

I. ACHIEVEMENTS27()

1975

27 http://sintex-plastics.com/about%20us.htmAccesses on 03-02-10

96
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Moulded Polyethylene Industrial Containers and Tanks of sizes up to 10,000liters

1977

Material Handling Containers for Industries and Institutions

1978

Water Tank

1985

Plastic Sections for Conversion into Partitions, False Ceilings, Wall Panellings,Cabins, Cabinets, Furniture etc.

1988

Plastic Doors, Windows and Frames

1989

Insulated Containers, Sandwich Panels, Agri Containers and Biogas Holders

1990

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SMC and SMC Moulded Products, Pultruded Products, Resin Transfer Moulded(RTM) Products, Blow Moulded Products, Injection Moulded Products etc.

1995

Water Filters cum Purifiers

2000

Solar Water Heaters

2001

Prefabs production was started

2002

Turnkey Blow Moulding & Profile Extrusion Plants

2004

FRP Underground Storage Tanks

2005

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ISO 9001 CertificationMonolithic Concrete Construction Technology

2006

UL Listed for FRP Underground Petroleum Tanks

A. AWARDS

SINTEX now a Superbrands

The name is now a superbrands, as per the second Business Superbrands

series issued by the Superbrands Council of India.

Bright AutoPlast Awarded by Maruti Suzuki

OBJECTIVE OF INDUSTRIAL VISIT

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As we are the future managers of our country and to take our country to the

top position we should have both the practical as well as theoretical

knowledge. As we have studied all the theories so to give us that practical

knowledge was the main objective of the industrial visit.

The objective of industrial visit was to make us feel that how an industries

work and how it is been managed by any person, different things that are

been manufactured and how the company finance such a big plant and the

different way they are worked. How and different way every goods are been

distributed to the consumer, how we recruit the people and also we can say

that what we have studied in theory were been implemented in the industry

but in a innovative way.

MY PERCEPTION ABOUT THE COMPANY

I feel that if I was a chairman of such a big industry I would not be able to

handle such a work with such a responsible way and would not have made

the company to reach such a height. So we should all salute the M.D of this

company Mr. S.B Dangayach. The industry has very bright future if such

types of persons are given jobs. And also though the company had the bad

face of recession as every company does but is now gaining the momentumback and the way they think make them different from any other industry as

they are not only in textiles but are a good player in plastic segment to

specially their GREEN PRODUCT idea is very good and will help the company

to grow more.

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