A EFFECTIVENESS OF FAMILY BUSINESS SUCCESSION IN

ANBOLI FABRICS KARUR

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 CONTENTS

CHAPTER TITLE PAGE

NO. NO.
List of Tables Iii
List of Charts 1v
Abstract v
1 INTRODUCTION
1.1 Introduction of the study 1
1.1.1 Objectives of the study 6
1.1.2 Scope of the study 7
1.1.3 limitations of the study 8
1.2 Industry Profile 9
1.3 Company Profile 12
1.4 Review of Literature 15
2 METHODOLOGY
2.1 Research Design 17
2.2 Data Collection 17
2.3 Tools Applied 17
3 DATA ANALYSIS AND INTERPRETATION
3(A)Comparative Balance Sheet 21
3(B)Ratio Analysis 31

4 RESULTS AND DISCUSSION

4.1 Findings 64
4.2 Suggestions 66
4.3 Conclusion 67

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 LIST OF TABLES

Table No Title Page No

1 Age wise classification 18

2 Gender wise classification 19

3 Marital Status of the respondents 20
4 Department wise classification 21
5 Education qualification of the respondents 22
6 Work time flexibility 23
7 Working schedule 25
8 Extra working time 27
9 Nature of the job 29
10 Opinion regarding the employees recruitment, 31
promotion &transfer policies
11 Using ability and skills 33

12 Opinion about wages and incentives 35

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 13 Opinion about working condition 37
14 Opinion about quality of training program 39
15 Opinion about performance appraisal and training 41
need

LIST OF CHART

Chart Title Page

No No
1 Work time flexibility 24

2 Working schedule 26
3 Extra working time 28
4 Nature of the job 30
5 Opinion regarding the employees recruitment, 32
promotion &transfer policies
6 Using ability and skills 34
7 Opinion about wages and incentives 36
8 Opinion about working condition 38
9 Opinion about quality of training program 40
10 Opinion about performance appraisal and training need 42
11 Opinion about uniform and canteen facility 44
12 Opinion about inter personal communication between 46
the management and employee
13 Opinion about worker and work relation 48
14 Opinion about work stress 50
15 Opinion about over all satisfaction 52

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ABSTRACT

The most significant resource of an organization is often said to be its people

organizations exist because of individuals without whom it cannot function. In fact, the
challenges, the opportunity, and also the frustration, of creating and managing
organizations very often originate from the people related problems that arise within them
people-related problems often stem from the mistaken belief that people are alike that
they may be treated identically. There would be a lot of variability in psychological
features which demand attention.

The present study is designed as “Quality Of business plan ” is undertaken at

Anboli fabrics to know how for the employees are satisfied with working conditions,
fringe benefits, job security, training and development, salary and level of involvement
and commitment and to assess the level of Quality Of business plan

INTRODUCTION TO THE STUDY

“QBP, in short, refers to the level of satisfaction, motivation, involvement and

commitment of individual experience with respect to their lines at work” – Brenardin.
Quality Of business plan (QBP) is a prescriptive concept; it attempts to design work
environments so as to maximize concern for human welfare. It is a goal, as well as a process.

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The goal is the creation of more involving, satisfying and effective jobs and work environment
for people at all levels of the organization as a process, QBP involves efforts to realize this goal
through active participation.
According to Llyd Suttle “QBP is the degree to which members of a work organization
are able to satisfy important personal needs through their experiences in the organization”.
QBP denotes direct participation by workers in day-to-day decision making on the job.
Most often, employees get a voice in work scheduling, quality control, compensation, a
determination of the job environment itself and/or other significant working factors and the goal
is a twofold one: increased productivity and improved union – management relations.
There are two ways of looking at what we mean by QBP.One way equates QBP with a
set of objective organizational conditions and practices. The other way equates QBP with
employees perceptions that they are safe, relatively well satisfied, and are able to grow and
develop as human beings. This way relates QBP to the degree to which the full range of human
needs is met.
In many cases these two views merge: a worker who likes his organization and the way
his job is structured will feel that his work fulfills him. In such cases, either approach will lead to
a common determination of whether a good QBP exists. However, because of the differences
among people and because of the second view is quite subjective – it allows, for example. That
not everyone finds such things as democratic decision making and enriched jobs to be an
important component of a good QBP – we will define in terms of employee’s perception of their
physical and mental well – being at work.
It is worth noting that often the conditions that contribute to motivation (equitable
salaries, financial incentives, effective employee selection, etc) will also contribute to QBP.
Some of these activities like job enrichment might contribute indirectly to QBP by tapping the
workers higher order needs and motivating them. Still, other activities may contribute directly to
QBP providing for a safer workplace, less discrimination on the job and so forth.
A growing number of companies recognize that employees are more likely to choose
a firm and stay there if they believe that it offers a high QBP.A high QBP is related to job
satisfaction, which in turn is a strong predictor of absenteeism and turnover. A firm’s investment
in improving the QBP also pays off in the form of better customer service.

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 The goal of QBP is the creation of organizational conditions that foster individual
learning and development, that provide individuals with substantial influence and control over
what they do and how they are o do it and that provide individuals and meaningful work that
serves a source of personal satisfaction and a means to valued personal rewards.
It focuses on the problem of creating a human working environment where employees
work cooperatively and achieve results collectively. QBP includes four essential elements:
 The program seeks to promote human dignity and growth.
 Employees work collaborates.
 They determine work changes participative.
 The programmes assume compatibility of people and organizational goals.
The major factors that affect the QBP are:

 Pay: QBP is basically built around the concept of equitable pay. In the days ahead,
employees may want to participate in the profits of the firm as well. Employees must
be paid their due share in the progress and prosperity of the firm.
 Benefits: Workers throughout the globe raised their expectations over the years and
now feel entitled to benefits that were once considered a part of the bargaining
process. Apart from safe and healthy working conditions they would love to have
benefits of all kinds from the employers.
 Job security: Employees want stability of employment. They do not like to be the
victims of whimsical personnel policies and stay at the mercy of the employers. The
workplace should offer security of employment and the question of layoffs is opposed
tooth and nail by all categories of employees these days.
 Alternative work schedules: Employees demand more freedom at the workplace
especially in scheduling their work. Some of the alternative work schedules capable
of enhancing the Quality Of business plan are :
 Flextime : A system flexible working hours.
 Staggered hours: Here groups of employees begin and end work at
different intervals.
 Compressed workweek : It involves more hours of work per day for
fewer days per week

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  Job enrichment: It attempts to increase a person’s level of output by
providing that person with exciting, interesting, stimulating or
challenging work.
 Autonomous work groups (AWGs): Here a group of workers will be given some
controlled decision – making authority on production methods, distribution of
tasks, recruitment of team members, selection of team leaders, work schedules and
so on.
 Occupation stress: Obviously, an individual suffering from an uncomfortable
amount of job related stress cannot enjoy a high quality of worklife.To this end,
the personnel managers will have to look in to the working conditions, nature of
work, workers abilities, etc...To reduce job – related stress, the organization must
ensure the best fit between employee capabilities and the organizational
requirements and thereby ensure continued development of people at all levels.
 Worker participation: Employees have a genuine hunger for participation in
organizational issues affecting their lives.Naturely, they demand for more
participation in the decision making process at the workplace.
 Social Integration: the work environment should provide opportunities for
preserving an employee’s personal identity and self esteem through freedom from
prejudice, a sense of community, interpersonal openness and absence of
stratification in the organization. There should be equal treatment in the
workplace.
 Work and total life space: An individual’s work should not overbalance his life.
Ideally speaking, work schedules, career demands and other job requirements
should not take up too much of a person’s leisure time and family life.

The difficulties in sustaining or expanding the process of the QBP projects include
changes in union leadership, expectations that were too high, efforts aimed at production and
clerical levels with insufficient attention to changes at the managerial and professional levels
with insufficient attention to changes at the managerial and professional levels, and too little
attention to long term financial rewards for the participants. Major resistances from supervisors

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 have frequently occurred when the top management has paid insufficient attention to issues of
job security and role definition for people at this level.

INDUSTRY PROFILE

Textile Industry in India is the second largest employment generator after agriculture. It
holds significant status in India as it provides one of the most fundamental necessities of the people.
Textile industry was one of the earliest industries to come into existence in India and it accounts for
more than 30% of the total exports. In fact Indian textile industry is the second largest in the world,
second only to China.

Textile Industry is unique in the terms that it is an independent industry, from the basic

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requirement of raw materials to the final products, with huge value-addition at every stage of
processing. Textile industry in India has vast potential for creation of employment opportunities in
the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly
for women and the disadvantaged. Indian textile industry is constituted of the following segments:
Readymade Garments, Cotton Textiles including Handlooms, Man-made Textiles, Silk Textiles,
Woolen Textiles, Handicrafts, Coir, and Jute.

Till the year 1985, development of textile sector in India took place in terms of general
policies. In 1985, for the first time the importance of textile sector was recognized and a separate
policy statement was announced with regard to development of textile sector. In the year 2000,
National Textile Policy was announced. Its main objective was: to provide cloth of acceptable
quality at reasonable prices for the vast majority of the population of the country, to increasingly
contribute to the provision of sustainable employment and the economic growth of the nation; and to
compete with confidence for an increasing share of the global market. The policy also aimed at
achieving the target of textile and apparel exports of US $ 50 billion by 2010.

India has rich resources of raw materials of textile industry. It is one of the largest
producers of cotton in the world and is also rich in resources of fibers like polyester, silk, viscose etc.
India is rich in highly trained manpower. The country has a huge advantage due to lower wage rates.
Because of low labor rates the manufacturing cost in textile automatically comes down to very
reasonable rates. India is highly competitive in spinning sector and has presence in almost all
processes of the value chain. Indian garment industry is very diverse in size, manufacturing facility,
type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises
suppliers of ready-made garments for both, domestic or export markets.

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 The outlook for textile industry in India is very optimistic. It is expected that Indian textile
industry would continue to grow at an impressive rate. Textile industry is being modernized by an
exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. India can
also grab opportunities in the export market. The textile industry is anticipated to generate 12mn new
jobs in various sectors

COMPANY PROFILE

Anboli fabricsare situated at S.F. No.149/4, kovil karur. the company undergoes the
manufacturing of waste cotton into yarn. The city boasts of excellent transport facilities for floating
labour population and some world class manufacturing units with exceptional facilities of
international standard. Unit II is situated at Kurubapalayam (po), S.S.Kulam, and Coimbatore-48.

Anboli fabricscommenced its operation in 2003. Mr.M.Rama Kutty and

Mr.R.Sounderarajan are the managing partners vested with managerial power of the company. They
have started the company with the capital of 1 crore and the turn over was 60 lakhs and the
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production capacity was 40,000 kgs of yarn. Today the company achieved the turnover of 1.5 crores
and planning production of 1, 00,000 kgs for the current year. It also established a strong marketing
network that links on various places.

There are nearly 150 blue collar labours and 10 white collar labours were working on the
shift basis 50 labours for each shift. The salary is calculated on the basis of kgs produced by the
labour.

OBJECTIVES OF THE STUDY

The main objective is to study the Quality Of business plan of the employees in the
organization.

 To analyze the level of satisfaction with work environment this includes

relationship of workers with their superiors and colleagues.
 To study the level of autonomy and work speed routine that gives control of work
to the employees.

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  To study the level of Work complexity and personal growth opportunity that
gives meaningfulness of work to the employees.
 To study the existing Task Related Interaction on the job in the organization.
 To rank the departments in terms of Autonomy, Work speed Routine, Work
Complexity, Personal growth Opportunity and Task Related Interaction.

SCOPE OF THE STUDY

The study aims at finding out the Quality of the Work Life (QBP) of the employees at K.M.R
textiles.

The study is based on the major factors that effect the QBP namely pay, employees benefits, job
security, alternative work schedules, occupational stress, worker participation, social integration
and work and total life space.

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The study expresses the opinion of workers on their satisfaction, motivational factors, and
commitment and involvement levels in K.M.R textiles. The response of employees could be
biased. The study can be carried out for other industries and services with a few modifications.

LIMITATION OF THE STUDY

The results of the study are bound to be affected to a certain extent by the following limitations.
However these are marginal and do not substantially affect the analysis and suggestions. The
limitations are;
 The study was restricted to employees of one company and so the results cannot be
generalized.
 Though the results are unbiased, there may exist some biased response during filling the
questionnaire.

RESEARCH METHODOLOGY
Meaning for research:
Research in common parlance refers to search foe knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
The advanced learner’s dictionary of current English lays down the meaning of research
as “a careful investigation or inquiry especially through search for new facts in any
branch of knowledge.

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Meaning for research methodology:
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically. In it we
study the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them.

Research design:
Research design is the blue print of the proposed study. It represents the overall
scheme of the study. “All research design is a logical and systematic planning and it helps
directing piece of research” the research design select for the particular study is
descriptive research studies.

A) Descriptive research design:

Descriptive research studies are those studies concerned with describing the
characteristics of a particular group. Such studies are concerned with specific predictions,
with narration of facts and characteristics concerning group or situation.

SAMPLING TECHINIQUES:
a) The location:
The survey was conducted in Coimbatore city.

b)Determination of sample size:

The size of sample was 25. It was decided arbitrarily. The target groups of
the respondents are the employees of K.M.R textiles.

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c) Sampling techniques:
The survey is based on random as convenience method of sampling.

REVIEW OF LITERATURE

Quality Of business plan gained importance between 1969 and 1974 when
broad group of researchers,scholars,union leaders and government personnel developed interest
in how to improve the quality of an individual through on-the job experience. A series of
attitudinal surveys conducted at the University of Michigan between 1969 and 1973 attracted
attention towards the quality of employment. Thus Department of health, Education and welfare
sponsored a study on this issue which led to population of work in America simultaneously, the
pressures of inflation prompted the US government to address some of these issues. Accordingly

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a federal productivity commission was established. These were jointly conducted by the
University Of Michigan Quality Of Work Programme and newly evolved national quality of
work centre.

Fleishman(1953) has studied the relationship of supervisory behaviour

With the productivity and morale of the sub ordinates , superiors create climate in their
department and high consideration results in high productivity and moralre

Ganguli (1964) : has argued that the factors that determine performance of the
workers in an industrial job can be classified under three heads.
1. personal factors.
2. work factors.
3. environmental (physical and social) factors.
Personal factors refer to skills of the workers and the degree of motivation that determine the
extent to which he wil apply his skill to the job. Work factor refers to tools and equipment,
method of work and materials used. Examples environmental factors are (a) physical lightening,
ventilation, etc.. (b) Social and psychological nature of leadership (supervisory and managerial),
social climate in shop, nature of the group formation amongst members , etc.. And (c) nature of
organizational controls, communication patterns , etc..

According to vroom (1964) , productivity depends upon two major variables viz.,
employees’ job performance and resources utilized. In most organizational performance of the
employees is relatively more important than the equipments and raw materials. Even in
automated operations, productivity in strategic and co ordinate systems largely depends up on the
human performance. Performance of a worker on a task or job is a direct function of his
motivation.

According to hark mentel (1971) , the nature of the relationship between job
characteristics and employee reactions to their work (including satisfaction , performance , and
absenteeism) will depend upon the need status of the employees.

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 Walton (1974) : One of the major interprets of the Quality Of business plan
movement have proposed eight major conceptual areas for understanding , development of
human capacities growth and security , social integration , the total life space and social
relevance.
Gazakerly (1975): worker wants from their employment challenges they can meet.
some immediacy in knowing how well they are doing , interesting work , congenial social
climate and degree of security , which enable them to work in co-operative rather than conflict-
ridden situation.

Johnson (1975): View that workers often value such as job interest and good
working conditions above pay. The author concluded that the pay becomes the most important
factor in job satisfaction only when it to seen as compensation for dissatisfying and alienating
job satisfaction.

Chris Arg Ysis (1975): Quality Of business plan is most conventionally defined
as those perceived input personal needs, which an individual tries to satisfy by working in an
organization, its conceptual foundations, though lay by behavioral scientists.

Westly (1979): Found the utility of the job enrichment programmes as remedies to
political, economic, psychological and sociological problems faced by human beings in
organization.

Nillakant and Tendon (1982): Management can initiate a number of changes in

work procedures; rationalize wage structures and bring about improvements in worker amenities
& working conditions – all these would lead to improvement in Quality Of business plan .

Hallowell and Miller(1985) : Employment based on emergent of new values ,

which does not discriminate against those with carrying or other non-work responsibilities and
which provides an opportunity for people to realize their full potential “Humanizing the work
place” is a goal in its own right , one that has been spurred by changing values of the work force.

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 One major concern has been to humanize the work place by improving worker
satisfaction and working conditions.

Robbins – (1986): Jobs with autonomy give workers a sense of responsibility. Jobs
that yield feedback gives incumbents a means to evaluate their own performance and take
corrective action.
The relative importance of these characteristic differs by individuals. Some people
have stronger needs than for others.” this means that individual with a high growth need are
more likely to experience the psychological states when their jobs are enriched than are their
counter parts with a low growth need.

Mr.Vijayanand, (1999): had done a project on “Job satisfaction”, among the

employees in “Sakthi Sugars” and he suggested that the organization has to concentrate more on
labour measures and also with regard to the maintenance of buildings.

Mr.Vasudevan.c, (1999), : had done a project on “job satisfaction”, among the

workers in “ELGI Electric and Industries Limited “ and he suggested that the organization may
provide better working conditions, can reduce the hours of work and provide more career
advancement opportunities.

Ms smitha G paniker june 2005 had done project on INDIAN AIRLINES ,

Bangalore she suggested that HR department should be modern in the outlook and try to
identify the needs to the employees at the right. If the employees are encouraged and given
opportunity to take part in planning and decision making of the organization , they wil get more
involved in their work which increases their efficiency participative management . the working
conditions and physical needs such as restrooms hygiene work , hours of work , ventilation and
adequate light are the features to introduced in the organization which are important attributes of
satisfaction.

Ms Kirpa, (2006): had done a project on “Quality Of business plan ” at Malabar

Institute of Medical Science Ltd and she suggested that among the welfare activities, canteen

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stands at a dissatisfactory level and provision for drinking water are not kept as per the needs.
Though most of the employees are satisfied with the work. Moreover they except a well balanced
pay structure with regard to the incentives and increments provided. The researches hope that the
suggestions brought forward may implemented by the institute to improve the Quality Of
business plan of their employees.

Ms Aswathy, (2006) had done a project on Britannia Industries Limited, Chennai

and her study considered mainly five factors of Quality Of business plan –Working
Environment, Autonomy, Regulations and competiveness, career prospects and rewards and
benefits. It was found that some of the above factors are not satisfactory for the employees at
Britannia Industries Ltd to ensure good Quality Of business plan ; all the factors should be
equally satisfied. A combined effect of all the factors in effective manner will increase the
Quality Of business plan , which increases the productivity which ultimately results in good
return.

Ms Mary Veronica (2006) had done a project on Life Insurance Corporations of

India(Tat bad Branch) she suggested for a recreation club by which Management can organize
family get together once in three months or six months which definitely help to improve the
organization mortality, good co-coordination and team spirint in a best way.

Ms Babitha George, (2006): had done a project on Hindustan Newsprint LTD,

Kottayam she the following:
 Step must be taken to improve the welfare amenities.
 Communication system should be made effective among the workers.
 Night shift allowance should be increased. The amounts of group insurance
scheme have to be increased.
 Quarters facilities should be improved and maintenance should be done at
proper time.
 Canteen facilities should be improved by providing quality food to the work.
It can be noted that the company running at profit since its inception. Hence the company
can undertake the suggestions without much financial strain. Before implementations the

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recommendation, It is also desirable to consult the trade unions, to get better result, which will
help to resolve better employee employer relationship and industrial harmony.

Ms Anu Johnson, june-2006: had done a project on MRF tyre ltd Kottayam the
study reveals that satisfied workers can work effectively. It really affects the production process
and thus the industry. So the satisfaction level of employees is very important in the modern
industry. A psychological approach is necessary to influence the level of satisfaction.
Management may organize counseling programmes and training with emphasis on general health
are education and towards good relationship between employees and supervisors and thus
satisfaction level of the employees may be proved.

Mr Ronald , June 2006 , had done project on Hindustan photo films , co , LTD
OOty he suggested the following
 Company can represent the government to increase the wages and benefits.
 Company may oblige the employees to maintain a code of discipline to follow
the organizations rules and regulation.
 Company shall insist trade unions to work for the facilities of the employees and
their needs.

TABLE-1

AGE WISE CLASSSIFICATION

No of
S.No Age Percent
respondents
1 20-25 5 20

21
 2 25-30 2 8

3 30-35 8 32

4 35-40 6 24

5 Above 40 4 16

Total 25 100

Source: primary data

Inference
The above table shows that out of 25 respondents 20% respondents are between the age
of 20-25, 8% respondents are between the age of 25-30, 32% respondents are between the age of
30-35, 24% respondents are between the age of 35-40 and 16% respondents are above the age of
40.

Hence, it is concluded that majority of respondent are between the age group of 30-35.

TABLE-2

GENDER WISE CLASSIFICATION

No of
S.No Sex Percent
respondents
1 Male 15 60

22
 2 Female 10 40

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 60% respondents are male and
40% respondents are female.

Hence, it is concluded that majority respondents are male

TABLE-3

MARITAL STATUS OF THE RESPONDENTS

S.No Marital Status No of respondents Percent

1 Married 18 72

23
 2 Un Married 7 28

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondent 72% are married and 28% are unmarried.

Hence, it is concluded that the majority of the married respondents are working in the
company.

TABLE-4

DEPARTMENT WISE CLASSIFICATION

No Of
S.no Department Percent
respondents
1 Finance 5 20

2 Production 7 28

24
 3 Marketing 9 36

4 Quality Control 4 16

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondent 20% of respondents are from finance, 28%
respondents are from production, 36% respondents are from marketing and 16% respondent are
from quality control.

Hence, it is concluded that majority of respondent are from the marketing department

TABLE-5

EDUCATION QUALIFICATION OF THE RESPONDENTS

Education
S.No No of respondents Percent
qualification
Illiterate
1 5 20

25
 2 School Level 11 44

3 Graduate 9 36

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 20% respondents are illiterate, 44%
respondents are school level and 36% respondents are graduates.

Hence, it is concluded that the majority of respondents working in the company are
school level.

TABLE-6

WORKING TIME FLEXIBILITY

S.No Flexible No of respondents Percent

26
 1 Yes 22 88

2 No 3 12

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents about work time flexibility 88%
respondents says yes and 12% respondents says no.

Hence, it is concluded that the majority of respondents are working with time flexibility.

CHART NO: 1
WORKING TIME FLEXIBILITY

27
 100
90
80
PERCENTAGE

70
60
50
No of respondents
40
Percent
30
20
10
0
Yes No Total
TIME FLEXIBILITY

TABLE-7

WORKING SCHEDULE
28
 S.No Schedule No of respondents Percent

Day shift
1 16 64
Afternoon shifts
2 4 16

3 Night shifts 1 4

Split shift
4 2 8

Irregular shift/on-
5 call 1 4

6 Rotating shifts 1 4

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 64% respondent are comfortable with
day shifts, 16% respondents are comfortable with afternoon shifts, 4% respondent are
comfortable with night shift, 8% respondents are comfortable with split shift, 4% respondent are
comfortable with irregular shifts/on-call, 4% respondents are comfortable with rotating shifts.

Hence, it is concluded that majority respondents are comfortable with day shift.

CHART NO: 2

WORKING SCHEDULE

29
 100
90
80
Day shift
70
PERCENTAGE

Afternoon shifts
60
Night shifts
50
Split shift
40 Irregular shift/on-call
30 Rotating shifts
20 Total
10
0
No of respondents Percent

TABLE-8

EXTRA WORKING TIME

30
 S.No Hours No of respondents Percent

1 1-2 9 36

2 2-3 7 28

3 3-4 6 24

4 Above 4 3 12

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 36% respondents are working 1-2 hours
extra, 28% respondents are working 2-3 hours extra, 24% respondents are working 3-4 hours and
12% respondents are working above 4 hours in a month.

Hence, it is concluded that majority of the respondents are working 1-2 hours extra time
in a month.

CHART NO: 3

EXTRA WORKING TIME

31
 100
90
80
PERCENTAGE

70
60
50
No of respondents
40
Percent
30
20
10
0
1 to 2 2 to 3 3 to 4 Above 4 Total
HOURS

TABLE-9

NATURE OF THE JOB

32
 Lifting , Pulling
S.No No of respondents Percent
and Bending

1 Yes 17 68

2 No 8 32

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents about their nature of the job 68% respondents
say yes and 32% respondents say no.

Hence, it is concluded that majority of the job requires lifting, pulling and bending in the
company.

CHART NO: 4

NATURE OF JOB

33
 100
90
80
70
PERCNTAGE

60
50
No of respondents
40
Percent
30
20
10
0
Yes No Total
NATURE OF JOB

TABLE-10

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RESPONDENTS OPINION ABOUT RECRUITMENT, PROMOTION &
TRANSFER POLICES

No of
S.No Opinion percent
respondents
1 Highly satisfied 6 24

2 Satisfied 15 60

3 Dissatisfied 2 8

4 Highly Dissatisfied 1 4

5 Neutral 1 4

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 24% respondents are highly satisfied
about the recruitment, promotion and transfer policies, 60% respondents are satisfied about the
recruitment, promotion and transfer policies , 8% respondents are dissatisfied about the
recruitment, promotion and transfer policies, 4% respondents are highly dissatisfied about the
recruitment, promotion and transfer policies and 4% respondents are neutral about the
recruitment, promotion and transfer policies.

Hence, it is concluded that majority respondents are satisfied about the recruitment,
promotion and training policy of the company.

CHART NO: 5

RESPONDENTS OPINION ABOUT RECRUITMENT, PROMOTION &

TRANSFER POLICES
35
 100
90
80
70 Highly satisfied
PERCENTAGE

60 Satisfied
50 Dissatisfied
40 Highly Dissatisfied
Neutral
30
Total
20
10
0
No of respondents percent

TABLE-11

USING ABILITY AND SKILLS

36
 S.No Skills and ability No of respondents Percent

1 Yes 20 80

2 No 5 20

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents about using their skills and ability in their
80% respondents say yes and 20% say no.

Hence, it is concluded that majority of the respondents say yes for using their ability and
skill in their job.

CHART NO: 6

37
 RESPONDENTS USING ABILITY AND SKILLS

100
90
80
70 90
PERCENTAGE 80
60 70
60
50 50 East
No of respondents
40 West
40
30 North Percent
30 20
10
20 0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
10
0
Yes No Total
USING SKILLS AND ABILITY

TABLE-12

38
RESPONDENTS OPINION ABOUT WAGES AND INCENTIVES

No of
S.No Opinion percent
respondents
1 Highly satisfied 2 8

2 Satisfied 10 40

3 Dissatisfied 8 32

4 Highly Dissatisfied 3 12

5 Neutral 2 8

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 8% respondents are highly satisfied
about the wages and incentives, 40% respondents are satisfied about the wages and incentives,
32% respondents are dissatisfied about the wages and incentives, 12% respondents are highly
dissatisfied about the wages and incentives and 8% respondents are neutral about the wages and
incentives.
Hence, it is con concluded that majority of the respondent are satisfied about the wages
and incentives.

CHART NO: 7

39
RESPONDENTS OPINION ABOUT WAGES AND INCENTIVES

100
90
80
70 Highly satisfied
PERCENTAGE

60 Satisfied
50 Dissatisfied
40 Highly Dissatisfied
Neutral
30
Total
20
10
0
No of respondents percent

TABLE-13

40
 RESPONDENTS OPINION ABOUT WORKING CONDITION

No of
S.No Opinion percent
respondents
1 Highly satisfied 10 40

2 Satisfied 9 36

3 Dissatisfied 2 8

4 Highly Dissatisfied 1 4

5 Neutral 2 8

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 40% respondents are highly satisfied
about the working condition, 36% respondents are satisfied about the working condition, 8%
respondents are dissatisfied about the working condition, 4% respondents are highly dissatisfied
about the working condition and 8% respondents are neutral about the working condition.
Hence, it is concluded that majority of the respondents are highly satisfied about their
working condition.

CHART NO: 8

RESPONDENTS OPINION ABOUT WORKING CONDITION

41
 100
90
80
70 Highly satisfied
PERCENTAGE

60 Satisfied
50 Dissatisfied

40 Highly Dissatisfied

30 Neutral

20 Total

10
0
No of respondents percent

TABLE-14

42
RESPONDENTS OPINION ABOUT QUALITY OF TRAINING PROGRAM

No of
S.No Opinion percent
respondents
1 Highly agree 7 28
2 Agree 14 56

3 Disagree 2 8

4 Highly Disagree 2 8

5 Neutral 0 0

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 28% respondents are highly agree with
the quality of training program, 56% respondents are agree with the quality of training program,
8% respondents are disagree with the quality of training program, 8% respondents are highly
disagree with the quality of training program and 0% respondents are neutral with the quality of
training program.

Hence, it is concluded that majority of the respondent are agree with the quality of
training program.

CHART NO: 9

43
RESPONDENTS OPINION ABOUT QUALITY OF TRAINING
PROGRAM

100
90
80
70 Highly agree
PERCENTAGE

60 Agree
50 Disagree
Highly Disagree
40
Neutral
30
Total
20
10
0
No of respondents percent

TABLE-15

44
RESPONDENTS OPINION ABOUT PERFORMANCE APPRASIAL AND
TRAINING NEEDS

No of
S.No Opinion percent
respondents
1 Highly agree 13 52

2 Agree 8 32

3 Disagree 1 4

4 Highly Disagree 1 4

5 Neutral 2 8

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 52% respondents are highly agree with
the performance appraisal and training needs, 32% % respondents are agree with the
performance appraisal and training needs, 4% % respondents are disagree with the performance
appraisal and training needs, 4% % respondents are highly disagree with the performance
appraisal and training needs and 8% % respondents are neutral with the performance appraisal
and training needs.

Hence, it is concluded that majority of the respondent are highly agree with the
performance appraisal and training needs of the company.

CHART NO: 10

45
RESPONDENTS OPINION ABOUT PERFORMANCE APPRASIAL AND
TRAINING NEEDS

100
90
80
70 Highly agree
PERCENTAGE

60 Agree
50 Disagree
Highly Disagree
40
Neutral
30
Total
20
10
0
No of respondents percent

TABLE-16

46
RESPONDENTS OPINION ABOUT CANTEEN FACITLITY
AND UNIFORM

No of
S.No Opinion Percent
respondents
1 Highly satisfied 6 24

2 Satisfied 11 44

3 Dissatisfied 4 16

4 Highly Dissatisfied 2 8

5 Neutral 2 8

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 24% respondents are highly satisfied
with the canteen facility and uniform, 44% respondents are satisfied with the canteen facility and
uniform, 16% respondents are dissatisfied with the canteen facility and uniform, 8% respondents
are highly dissatisfied with the canteen facility and uniform, 8% respondents are neutral with the
canteen facility and uniform.

Hence, it is concluded that majority of the respondents are satisfied with the canteen and
uniform facility.

CHART NO: 11

47
RESPONDENTS OPINION ABOUT CANTEEN FACITLITYAND
UNIFORM

100
90
80
70 Highly satisfied
PERCENTAGE

60 Satisfied
50 Dissatisfied

40 Highly Dissatisfied

30 Neutral

20 Total

10
0
No of respondents percent

TABLE-17

48
RESPONDENTS OPINION ABOUT INTERPERSONAL
COMMUNICATION BETWEEN MANAGEMENT AND EMPLOYEE

No of
S.No Opinion Percent
respondents
1 Highly satisfied 12 48

2 Satisfied 7 28

3 Dissatisfied 3 12

4 Highly Dissatisfied 1 4

5 Neutral 2 8

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 48% respondents are highly satisfied
with the interpersonal communication between management and employee, 28% respondents
48% respondents are satisfied with the interpersonal communication between management and
employee, 12% respondents 48% respondents are dissatisfied with the interpersonal
communication between management and employee, 4% respondents 48% respondents are
highly dissatisfied with the interpersonal communication between management and employee,
8% respondents 48% respondents are neutral with the interpersonal communication between
management and employee.

Hence, it is concluded that majority respondents are highly satisfied with the
interpersonal communication between management and employee.

CHART NO: 12

49
SHOWING RESPONDENTS OPINION ABOUT INTERPERSONAL
COMMUNICATION BETWEEN MANAGEMENT AND EMPLOYEE

100
90
80
70 Highly satisfied
PERCENTEGE

60 Satisfied
50 Dissatisfied

40 Highly Dissatisfied

30 Neutral

20 Total

10
0
No of respondents percent

TABLE-18

50
RESPONDENTS OPINION ABOUT WORKER AND WORK RELATION

No of
S.No Opinion percent
respondents
1 Highly satisfied 7 28

2 Satisfied 13 52

3 Dissatisfied 1 4

4 Highly Dissatisfied 3 12

5 Neutral 1 4

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 28% respondents are highly satisfied
with the worker and work relation, 52% respondents are satisfied with the worker and work
relation, 4% respondents are dissatisfied with the worker and work relation, 12% respondents are
highly dissatisfied with the worker and work relation, 4% respondents are neutral with the
worker and work relation.

Hence, it is concluded the majority of the respondents are satisfied with the work and
work relation.

CHART NO: 13

RESPONDENTS OPINION ABOUT WORKER AND WORK RELATION

51
 100
90
80
70 Highly satisfied
PERCENTAGE

60 Satisfied
50 Dissatisfied
40 Highly Dissatisfied

30 Neutral
Total
20
10
0
No of respondents percent

TABLE-19

52
 RESPONDENTS OPINION ABOUT WORKSTRESS

No of
S.No Opinion percent
respondents
1 Always 7 28

2 Often 8 32

3 Sometimes 3 12

4 Hardly Ever 4 16

5 Never 3 12

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 28% respondent are feels that there is always
stress in their work, 32% respondent are feels that there is often stress in their work, 12%
respondent are feels that there is sometimes stress in their work, 16% respondent are feels that
there is hardly ever stress in their work, 12% respondent are feels that there is no stress in their
work

Hence, it is concluded that majority of the respondents are feel stress often in their work.

CHART NO: 14

RESPONDENTS OPINION ABOUT WORKSTRESS

53
 100
90
80
70 Always
PERCENTAGE

60 Often
50 Sometimes

40 Hardly Ever
Never
30
Total
20
10
0
No of respondents percent

TABLE-20

54
 RESPONDENTS OPINION ABOUT OVER ALL SATISFACTION

No of
S.No Opinion percent
respondents
1 Very Satisfied 17 68

2 Somewhat satisfied 4 16

3 Not too satisfied 3 12

4 Not at all satisfied 1 4

Total 25 100

Source: primary data

Inference

The above table shows that out of 25 respondents 68% respondents are very satisfied with the
Quality Of business plan , 16% respondents are somewhat satisfied with the Quality Of business
plan , 12% respondents are not too satisfied with the Quality Of business plan , 4% respondents
are not at all satisfied with the Quality Of business plan

Hence it is concluded that most of the respondents in the company were satisfied with the
Quality Of business plan

CHART NO: 15

55
RESPONDENTS OPINION ABOUT OVER ALL SATISFACTION

100
90
Very Satisfied
80
PERCENTAGE

70 Somewhat satisfied
60
50 Not too satisfied
40
Not at all satisfied
30
20
Total
10
0
No of respondents percent

RATIO ANALYSIS

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as

“relationship between two or more variables”. In financial analysis a ratio is used

56
as a benchmark for evaluating the financial position and performance of the firm.
The absolute accounting figures reported in the financial statement do not provide
a meaningful understanding of the performance and financial position of the firm.
The relationship between two accounting figures expressed mathematically is
known as a financial ratio. The ratio reveals the company’s ability to meet its
current obligations. It measures the company’s liquidity position and vice-versa.
The ratio indicates the quantitative relationship, which can be in turn, used to make
a qualitative judgment.

Definition
According to Kennedy, ratio may be defined as “the indicated quotient of
two mathematical expressions and as the relationship between two or more things”
According to Wixon, Kell and Bedford, a ratio is defined as “an expression
of the quantitative relationship between two numbers”.

LIQU
IDITY ANALYSIS
20
The short-term creditors of a company like suppliers of goods of credit and
commercial banks providing short-term loans, arc primarily interested in knowing
the company's ability to meet its current or short-term obligations as and when
these become due. At the short-term obligations of a firm can be met only when
there are sufficient liquid assets. Therefore, a firm must ensure that it docs suffer
from lack of liquidity or the capacity to pay its current obligations. If a firm fails lo

57
 meet such current obligations due to lack of good liquidity position, its
goodwill in the market is likely lo be affected beyond repair. It will result in a loss
of creditors confidence in the firm and may cause even closure of the firm, liven as
very high degree of liquidity is not good for a firm because such a situation
represents unnecessarily excessive funds of the firm being tied-up in current assets.
Therefore, it is very important lo have a proper balance in regard to the liquidity of
the firm. Two types of ratios can be calculated for measuring short-term financial
position or short-term solvency of a firm.

(A) Liquidity Ratios

(B) Current Assets Movement or Activity Ratios.

(A). Liquidity Ratio

21
This refers to the ability of a concern to meet its current obligations as and
when these become due. The short-term obligations are met by
realizing amounts from current, floating or circulating assets. The current
assets should cither be liquid or near liquidity. These should be convertible into
cash for paying obligations of short-term nature. The sufficiency or insufficiency
of current assets should be assessed by comparing them with short-term (current)
liabilities. If current assets can pay off current liabilities, then liquidity position
will be satisfactory. On the other hand, if current liabilities may not be easily met
58
out of current assets then liquidity position will be bad. The bankers, suppliers of
goods
21
and other short-term creditors are interested in the liquidity of the concern.
They will extend credit only if they are sure that current assets are enough to pay
out the obligations. To measure the liquidity of a firm, the following ratios can be
calculated:

(i) Current Ratio

(ii) Quick Ratio or Liquid Ratio
(iii) Absolute Liquid Ratio

CURRENT RATIO

Current ratio also called as working capital ratio, is the most widely used of
all financial devices based on the Balance Sheet. It matches the total current assets
to its total current liabilities. A ratio of 2:1
22
is normally regarded as a standard norm in ensuring adequate liquidity for
the business. Current ratio normally includes cash in hand and at bank, marketable
securities, other short-term high quality investments. Bills receivable, prepaid
expenses, work in progress, sundry debtors and inventories, while current liabilities
are composed of sundry creditors, bills payable outstanding and accrued expenses
and income tax payable. A relatively high value of the current ratio is considered
59
as a high indication that the firm is liquid and has the ability to pay its bills, on the
other hand, a relatively low current ratio is considered as an indication that the firm
will find difficulty in paying its bills. Current Ratio is calculated with the following
formula:-

Current Assets
Current Ratio = -------------------------
Current Liabilities

24
TABLE NO. 1
CURRENT RATIO
(Rs. in crores)
Year Current Asset Current Liabilities Ratio
2000-01 4395.44 2391.06 1.84

60
 2001-02 4725.06 2286.8 2.07
2002-03 5206.49 2471.66 2.11
2003-04 5387.04 2974.12 1.81
2004-05 6278.05 3977.68 1.58
2005-06 6799.72 4615.42 1.47
2006-07 8795.41 5556.57 1.58
2007-08 9536.52 6911.62 1.38

The Average current ratio during the study period is 1.73 which is below the
standard norms of 2:1, so the company has to improve its current ratio by
increasing its current assets. The maximum current ratio in the year of 2002-2003
is 2.11 and the minimum ratio in the year of 2007-2008 is 1.38. Therefore, there is
a fluctuating trend in current ratio.

61
 25
EXHIBIT NO. 1

CURRENT RATIO

2.5

1.5
RATIOS
1

0.5

0
2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007-
01 02 03 04 05 06 07 08
YEARS

LIQUID RATIO

62
 Liquid Ratio is the ratio of liquid assets to current liabilities. Those current
assets, which can readily be converted into cash, are known as liquid assets, or
quick assets. Usually inventories and prepaid expenses
26
are excluded from current assets because it takes time to sell finished goods,
and convert raw materials and work-in-progress into finished goods, and prepaid
expenses cannot be converted into cash. Liquid assets include cash, debtors after
providing for bad and doubtful debts and securities which can be realized without
difficulty. Liquid or quick liabilities are creditors, Bills payable and outstanding
less bank or assumed expenses.

Liquid Assets
Liquid Ratio = -----------------------------
Current Liabilities

Liquid Assets = Current Assets – (Stock + Prepaid Expenses)

63
 27
TABLE NO. 2
LIQUID RATIO

(Rs. in crores)
Year Liquid Asset Current Liabilities Ratio
2000-01 2396.81 2391.06 1.00
2001-02 2613.71 2286.8 1.14
2002-03 2779.14 2471.66 1.12
2003-04 2865.01 2974.12 0.96
2004-05 4762.23 3977.68 1.19
2005-06 4987.42 4615.42 1.08
2006-07 6534.15 5556.57 1.18
2007-08 7326.25 6911.62 1.06

Interpretation
Usually a high acid test ratio is an indication that the firm is liquid and has
the ability to meet its current liabilities in time and vice versa. It is inferred from
the table, the liquidity position of the Larsen & Toubro is stable during the period
of study. It has sufficient amount of liquid assets to pay off its current liabilities.
The minimum ratio is 0.96 in the year 2003-2004 and the maximum is 1.19 in the
year 2004-2005. The average ratio is 1.09. The liquid ratio goes in hand with the
standard norms of 1:1.

64
 28
EXHIBIT NO. 2

LIQUID RATIO

1.2
1
0.8
RATIOS 0.6
0.4
0.2
0
2000- 2008- 2002- 2003- 2004- 2005- 2006- 2007-
01 02 03 04 05 06 07 08
YEARS

65
 29
ABSOLUTE LIQUID RATIO

Although receivables, debtors and bills receivable are generally more liquid
than inventories, yet there may be doubts regarding their realization into cash
immediately or in time. Hence company authorities
are of the opinion that absolute liquid ratio should also be calculated
together with current ratio and acid test ratio so as to exclude even receivables
from the current assets and find out the absolute liquid assets. Absolute liquid
assets include cash in hand, bank balance, short term securities and temporary
investments. The acceptable norm for this ratio is 50% or 1:2

Absolute liquid assets

Absolute Liquid Ratio = ---------------------------------
Current Liabilities

66
 Absolute Liquid Assets = Cash in Hand + Bank balance + Short term
securities + Temporary Investments

29
TABLE NO. 3
ABSOLUTE LIQUID RATIO
(Rs. in crores)
Absolute Liquid Current
Year Ratio
Asset Liabilities
2000-01 271.62 2391.06 0.11
2001-02 220.83 2286.8 0.10
2002-03 138.9 2471.66 0.06
2003-04 204.48 2974.12 0.07
2004-05 320.53 3977.68 0.08
2005-06 375.27 4615.42 0.08
2006-07 828.02 5556.57 0.15
2007-08 583.2 6911.62 0.08

Interpretation
It is derived from the table, that the absolute liquid ratio of the company
shows a fluctuating trend. The ratio is higher during the period 2006-2007 as 0.15.

67
 It is less in the year 2002-2003 as 0.06 due to increase in current liabilities. The
liquid ratio is not accordance with the thumb rule of 0.5:1. Hence the company
should increase its cash position

TABLE NO. 26
CORRELATION BETWEEN AVERAGE COLLECTION PERIOD AND
AVERAGE PAYMENT PERIOD

(In Days)

x=X- y=Y-
x2
Year X Mean Y Mean y2 xy

2000- 53 -38.38 1473.02 149 -48.38 2340.62 1856.82

01
2001- 67 -24.38 594.38 201 3.62 13.10 -88.26
02
2002- 68 -23.38 546.62 203 5.62 31.58 -131.40
03
2003- 68 -23.38 546.62 248 50.62 2562.35 -1183.50
04
2004- 118 26.62 708.62 218 20.62 425.18 548.90
05
2005- 126 34.62 1198.54 195 -2.38 5.66 -82.40
06
2006- 112 20.62 425.18 169 -28.38 805.42 -585.20
07
2007- 119 27.63 762.86 196 -1.38 1.90 -38.12

68
 08
Total 6255.88 6185.88 296.83

∑XY
r =
√ ∑X2 x ∑Y2

97
296.83
=
√ 6255.88 X 6185.88
r = 0.05

Where

X = Average Collection Period

Y= Average Payment Period

Hypothesis test of significance

Hypothesis: There exists relationship between average collection period and

average payment period.

√ n-2
t = r --------------
1 – r2

√ 6
= 0.05 ----------
1.0

= 0.05 x 2.45

69
 t = 0.12

Interpretation

The correlation between average collection period and average payment

period shows very low positive correlation as the value of ‘r’ is (0.05) is highly
positive and also the calculated value of t (0.12) is less than the table values of t
(2.447) at 5% level of significance hence the
98
hypothesis is accepted and there exists a relationship between average collection
period and average payment period.
TABLE NO. 27
CORRELATION BETWEEN SALES AND GROSS PROFIT

(Rs. in crores)

x=X- Gross y=Y-

Sales x2
Year Mean Profit Mean y2 xy
(X)
(Y)
2000- 6882.77 -2597.56 6747317 789.63 -129.43 16752.1 336202.19
.9 3
01
2001- 6956.09 -2524.24 6371787 674.56 -244.5 59780.2 617176.68
.6 5
02
2002- 7379.1 -2101.32 4415545 651.83 -267.23 71411.8 561535.74
.7 7
03
2003- 7699.01 -1781.32 3173100 725.65 -193.51 37446.1 344703.23
.9 2
04
2004- 9422.13 -58.2 3387.24 800.51 -118.55 14054.1 6899.61
0
05

70
 2005- 9616.68 136.35 18591.3 847.11 -71.95 5176.80 -9810.38
2
06
2006- 13146.9 3666.61 1344402 1373.49 454.43 206506. 1666217.58
9 62
07 4
2007- 14739.9 5259.65 2766391 1489.77 570.71 325709. 3001734.85
8 9
08 8
Total 6183767 736837. 6524659.51
8 8

99
∑XY
r =
√ ∑X2 x ∑Y2

6524659.51
=
√ 61837678 X 736837.8

r = 0.97

Hypothesis test of significance

Hypothesis: There is no relationship between sales and gross profit.

√ n-2
t = r --------------
1 – r2

√ 6
= 0.97 ---------------------
0.06

= 0.97 x 10

71
 t = 9.7

Interpretation
The correlation between sales and gross profit shows that the value of
‘r’ (0.97) is highly positive and also the calculated value of t (9.7) is more than the
table values of t (2.447) at 5% level of significance hence the hypothesis is rejected
and there exists a relationship between sales and gross profit.

100

TABLE NO. 28
CORRELATION BETWEEN LONG-TERM DEBTS TO SHAREHOLDERS
FUND

(Rs. in crores)

x=X- y=Y-
X2
Year X Mean Y Mean y2 xy

2000- 3358.78 499.85 249850.02 3706.1 48.67 2368.77 24327.70

01 9
2001- 3973.74 1114.81 1242801.3 3864.1 206.66 42708.77 230386.63
4
02 8
2002- 4263.39 1404.46 1972507.8 3999.4 341.89 116888.77 480170.83
9
03 1
2003- 3462.57 603.64 364381.25 3343.4 -314.06 98633.68 -
189484.96
04 6

72
2004- 3176 317.07 100533.38 3562.5 -94.98 9021.20 -30115.31
05 4
2005- 1324.35 -1534.58 2354935.7 2775.0 -882.48 778770.95 1354236.1
8 6
06 4
2006- 1859.06 -999.87 999740.02 3369.1 -288.39 83168.79 288352.51
07 3
2007- 1453.57 -1405.36 1975036.7 4640.1 982.65 965601.02 -1380977
3
08 7
Total 9259786.4 2097161.5 776902.55
1 4

101
∑XY
r =
√ ∑X2 x ∑Y2

776902.55
=
√ 9259786.41 X 2097161.54

r = 0.18

Where

X = Long-term Debt
Y = Share Holders Fund

Hypothesis test of significance

Hypothesis: There exists no relationship between long-term debt and shareholders

funds.

73
 √ n-2
t = r --------------
1 – r2

√ 6
= 0.18 ----------------------
0.97

= 0.18 x 5.03

t = 0.91

Interpretation
102
The correlation between long term debt and share holders fund shows a
low positive correlation as the value of ‘r’ is (0.18) and the calculated value of t
(0.91) is less than the table values of t (2.447) at 5% level of significance hence the
hypothesis is accepted and there exists no relationship between long-term debt and
shareholder funds.
TREND ANALYSIS

A series of financial statements may be analyzed by determining and

studying the trends of the data shown in the statements. This method of analysis is
one of direction-upward or down ward. The information for a number of years is
taken up and one year generally the first year is taken as a base year. The base
period should be carefully selected. It should be a normal period. The price level
changes in subsequent years may reduce the utility of trend ratios. One way to
describe the trend component is to fit a line visually to a set of points on a graph.

74
 103
TABLE NO. 29
TREND ANALYSIS OF FUTURE SALES

X2
Year Sales (Y) X XY

2001-2002 6569.09 -3 9 -19707.27

2002-2003 7679.10 -2 4 -15358.2
2003-2004 7699.12 -1 1 -7699.12
2004-2005 9422.13 0 0 0
2005-2006 9616.68 1 1 9616.68
2006-2007 13146.94 2 4 26293.88
2007-2008 14739.98 3 9 44219.94
Total 68873.04 28 37365.91

75
Estimation

∑Y
A = = 9839
N
∑XY
B = = 1334.50
∑X 2

Table Showing Sales Forecast for the year 2008 to 2013

Years Sales
2008-2009 15177
2009-2010 16511.5
2010-2011 17846

2011-2012 19180.5
2012-2013 20515

104
Inference

The above table shows the forecasted Sales for the company which is based
on the prevailing trend is projected to future years from 2008-2009 to 2012-2013.

EXHIBIT NO. 24

76
 TREND ANALYSIS SHOWING FUTURE PROFITS

25000

PROFIT (IN CRORES)

20000

15000
Sales
10000

5000

0
2006-07 2007-08 2008-09 2009-10 2010-11
YEARS

77
 PROFIT AND LOSS ACCOUNT

1 INCOME 2015-16 2016-17 2017-18

Gross income from domestic sales & 464744623 377479963 316083232
services
Less: Excise duty & Educationcess on 60194275 51168217 42931292
domestic sales
Net income from Domestic sales & services 404550348 326311746 273151940

Export sales 11278476 15233777 2197196

Export Benefit as per DEPB scheme 458384 1054462 275097

Total income from sales & services 416287208 342599985 275624233

Other income 1185071 2720793 3434866

Increase / (Decrease) in inventory 0 30323897 735832

TOTAL 1 417472279 375644675 279794931

2 EXPENDITURE

Decrease / (Increase) in inventory 9149624 0 0

Raw material consumed 195746208 193791727 141018376

Manufacturing, Selling, Administrative & 166907143 142032866 113560845

Other expenses
SUB TOTAL 2 371802975 335824593 254579221

Operating income (1-2) 45669304 39820082 25215710

78
Financial charges 6146551 5442886 5336890

Depreciation 3748252 4184731 5320569

3 Profit before exceptional items 35774501 30192465 14558251

4 Amounts written off on asset held for 1500000 3516216 1503245

sales
5 Profit before tax 34274501 26676249 13055006

6 Income tax for the year

Current tax 12354553 9521018 5127341

Deferred tax – Income / Expense 1375400 535908 657114

7 Fringe benefit tax for the year 278347 248873 0

8 Excess / (Short) Provision for taxation (938525) 0 76324

in earlier years written back / Provided
9 Net profit after tax 22078476 17442266 8661103

10 Prior period Income / (Expense) 113072 39356 0

11 Balance of Profit / (Loss) as per last 19785299 2303677 (6357426)

accounts
12 Balance of Profit / (Loss) transferred 41976847 19785299 2303677
to Balance sheet

79
 PROFIT AND LOSS ACCOUNT

1 INCOME 2016-17 2017-18

Gross income from Domestic sales and services 231196770 198850356

Less: Excise duty on Domestic sales 30569093 26603580

Net income from Domestic sales and services 200627677 172246776

Export sales 5564725 3131333

Export benefit as per DEPB scheme 841833 613683

Total income from sales and services 207034235 175991792

Other income 1123657 2742807

Increase / Decrease in inventory 8229760 (510394)

TOTAL 1 216387652 178224205

2 EXPENDITURE
Raw material consumed 93436460 68414655

Manufacturing, Selling, Administrative, and other 102757538 95434068

expenses
SUB TOTAL 2 196193998 163848723

Operating income (1-2) 20193654 14375482

Financial charges 3730866 2990202

Depreciation 5368011 5244323

80
3 Profit for the year before tax 11094777 6140957

4 Income tax for the year 4369690 1993809

5 Deferred tax for the year – Income / (Expense) (813256) 580094

6 Profit after tax 5911831 4727242

7 MAT set off credit availed 428827 1307042

8 Net profit for the year after tax 6340658 6034284

9 Prior period Income / (Expense) (51551) 1632779

10 Net deferred tax (Debit) for earlier years (30905) (6547569)

11 Balance of Profit / (Loss) as per last accounts (12615628) (13735122)

12 Balance of Profit / (Loss) transferred to (6357426) (12615628)

Balance sheet

81
 BALANCE SHEET
1 SOURCES OF 2013-014 2014-15 2015-16 2016-17 2017-018
FUNDS
1. Shareholders fund

(a) Capital 104006000 104006000 104006000 104006000 104006000

(b) Reserves & 43171637 20980089 3498467 1194790 1194790

Surplus
SUB TOTAL 147177637 124986089 107504467 105200790 105200790

2. Loan funds

(a)Secured loans 19364552 36145126 37381137 25485888 29951332

(b)Unsecured loans 42075242 42075242 42075242 42075242 42075242

SUB TOTAL 61439794 78220368 79456379 67561130 72026574

Net deferred tax 4243214 5618614 6154522 6811636 5967475

liability
TOTAL 212860645 208825071 193115368 179573556 183194839

2 APPLICATION OF FUNDS

1. Fixed assets

(a)Gross block 122405628 116851003 110146389

(b)Less: 87600095 84000049 80230427

Depreciation
(c)Net block 34805533 32850954 29915962 42487675 47684002

(d)Capital work in 4499762 109901 1500311

progress

82
 (e)Other asset held 2500000 4000000 7516216
for disposal
2. Current assets, Loans & Advances

(a)Inventories 150959941 141018972 119119042

(b)Sundry debtors 114155107 98270246 90006837

(c)Cash & Bank 5614101 10102423 5679125

balances
(d)Other current 923292 342266 923724
assets
(e)Loans & 23953094 20573821 15589735
Advances
SUB TOTAL 295605535 270307728 231318463 183566769 165469545

Less: Current liabilities & provisions

(a)Liabilities 119310181 95902027 75057266

(b)Provisions 5240004 2541485 2078318

SUB TOTAL 124550185 98443512 77135584 52838314 42604336

Net current assets 171055350 171864216 154182879 130728455 122865209

3. Misc. expenditure 0 30000

(Adjusted)
4. Profit & Loss 6357426 12615628
account
TOTAL 212860645 208825071 193115368 179573556 183194839

83
 FINDINGS

 32% of the respondents are falls under the age group of 30-35 years.
 60% of the respondents are male.
 72% of the respondents are married.
 36% of the respondents are working in marketing department.
 44% of the respondents have completed their school.
 88% of the respondents are satisfied with their working time flexibility.
 64% of the respondents are willing to work in day shifts.
 36% of the respondents are working 1-2 hours extra in a month.
 68% of the respondents say that their job requires lifting, pulling and bending.
 60% of the respondents are satisfied with the recruitment, promotion and transfer policy.
 80% of the respondents are satisfied about using the skills and ability in their work.
 40% of the respondents are satisfied with the wages and incentives.
 40% of the respondents are highly satisfied with the working condition.
 56% of the respondents are agree with the quality of training program
 52% of the respondents are highly agree with the performance appraisal and training
needs.
 44% of the respondents are satisfied with canteen facility and uniform.
 48% of the respondents are highly satisfied with the interpersonal communication
between management and employee.
 52% of the respondents are satisfied with worker and work relation.
 32% of the respondents feels stress often in their work.
 68% of the respondents are very satisfied with the Quality Of business plan .

84
 SUGGESTIONS

 Regarding Wages, Increments and Incentives most of the respondents are not
satisfied, Therefore management should give Wages to the employees.
 Regarding canteen facility and uniform most of the respondents are not satisfied,
Therefore management should provide a good canteen facility and uniforms to
the employees.
 Regarding workers and work relation most of the respondents are not satisfied,
therefore management should give suitable nature of job to the employes.
 Regarding the work stress most of the respondents feels often stress in their
work, therefore management should provide some refreshment trips and
counseling to the employees.

85
 CONCLUSION

The project is carried out with objectives to find out the Quality Of business plan
of employees and to find out the factor that can improve their quality work of life.

Quality Of business plan is one of the main factors that have to be identified by
organization. Quality Of business plan mainly consist of five factors namely employment
conditions, working conditions, welfare facilities, interpersonal relations and career prospects for
individuals. Among the welfare activities, canteen stands at a dissatisfactory level and provisions
for drinking water are not kept as per the needs. Though most of the employees are satisfied with
the working hours, they are not free from the stress at work. Moreover they except a well
balanced pay structure with regard to the incentives and increments provided. A combined effect
of Quality Of business plan will increase productivity which ultimately results in good return.

86
 APPENDICES

QUESTIONNAIRE

1. Age : a.20-25 b. 25-30

c.30-35 d.35-40
e. Above 40

2. Sex : a. Male b. Female

3. Marital status : a. Married b. Unmarried

4. Department : a. Finance b. Production

d. Marketing e. Quality control

5. Educational qualification: a. Illiterate b. School Level

c. Graduate d. Professional

6. Is your working hour is flexible for you?

a. YES
b. NO

7. Which of the following best describes your usual work schedule?

a. Day shift
b. Afternoon shifts
c. Night shifts
87
 d. Split shift
e. Irregular shift/on-call
f. Rotating shifts

8. How many days per month do you work extra hours beyond your usual
schedule?
a. 1-2 days b. 2-3 days
c.3-4 d. more than 4 days

9. Does your job require you to do repeated lifting, pushing, pulling or

bending?
a. YES
b. NO

10. How do you feel about the recruitment procedure, promotion and grade policy
and transfer policy of the company?

a. Highly satisfied
b. Satisfied
c. Dissatisfied
d. Highly Dissatisfied
e. Neither satisfied nor dissatisfied

11. Is your job let you to use your ability and skills?

a. YES
b. NO

12. What is your level of satisfaction about wages and incentives?

a. Highly satisfied
b. Satisfied
c. Dissatisfied
d. Highly Dissatisfied
e. Neither satisfied nor dissatisfied

13. State your opinion about the working condition?

88
 a. Highly satisfied
b. Satisfied
c. Dissatisfied
d. Highly Dissatisfied
e. Neither satisfied nor dissatisfied

14. The company were I am working provides me high quality of training

program?

a. Highly agree
b. Agree
c. Disagree
d. Highly disagree
e. Neither agree nor disagree

15. Performance appraisal system and training needs are excellent in my company?

a. Highly agree
b. Agree
c. Disagree
d. Highly disagree
e. Neither agree nor disagree

89
 Bibliography

Website:
www.findarticles.com
www.acrobatplanet.com
www.docstoc.com
Books:
 “Human Resource Management – An Experimental approach – H.JOHN
BERNARDIN.

 Principles and Practice of Management – L.M.PRASAD.

 Human Resource Development – DR.P.C.TRIPATHI.

 Human Resource Management – DR.C.B.GUPTA.

 Business Organization and Management – Y.K.BHUSHAN

 Performance Management - A Briefcase Book – R.BACAL.

 101 Sample write-ups for documenting employee performance problems – P.FALCONE

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