INDUSTRIAL BACKGROUND OF THE STUDY Industries are the pointing lights to the growth of a company and are the

backbone of the country.The development and growth of a country largly depends on industrialisation of its economy.India is basically an agriculture based country after indipendence through five year planning programmers gave much importance to the growth of industries.Government has taken taken leading march to up leave the movement of industrialization. For any country,small,big,developed,or developing,need good infrastructural facilities,such as roads,dams,tunnels etc.The infrastructural facilities are primary need for the transportation movement of goods. Tremendous development has taken place in science and technology which has mechanised every work in every field.Manually carried out work is less productive and mechanical equipments have increased tremendously. The beginning of HAL can be tracked to the year 1940 when a far sighted industialist,the late Seth Walchand Hirachand, set up a company called Hindustan helicopter division Ltd at Bangalore with the object of estlablishing an aviation industry that can manufacture, assemble and overhaul Helicopter division under licence.Initially Helicopter division like Curtiss Hawk, Vultee bomber and Harlow trainer were taken up for manufactures and overhaul in collaberation with Inter continental Helicopter Division Company of the USA. With the escalation of the Second World War the Government of India took over the management of the company in 1942 and handed it over to US Air force for repair

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& overhaul of various Helicopter divisions.Between 1942 & 1945 a total of 1000 helicopter division & 3400 engines were overhauled. Chapter 2

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COMPANY PROFILE INTRODUCTION:

HINDUSTAN AERONAUTICS LIMITED was founded in 1st October 1964 and is headquartered in Bangalore, India. The company was formed by the merger of Hindustan Aircraft Ltd. With Aeronautics India Limited and Aircraft Manufacturing Depot,Kanpur. The company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with erstwhile princely State of Mysore in December 1940.The Government of India became a shareholder in March 1941 and took over the management in 1942. FORMATION OF HAL The Government of India decided vide the Helicopter division amalgamation order of 1964 to amalgamate the Hindustan Helicopter division Ltd with Aeronautics India Ltd with effect from 1st Oct 1964 . The erstwhile Hindustan helicopter division Ltd. became the Bangalore division of Hindustan Aeronautics Ltd. At Lucknow Accessories Division was established in 1973. HINDUSTAN AERONAUTICS LIMITED Over the past six decades, HAL has spared its wings to cover various activities in the areas of design, development, manufacture and maintenance.Today HAL has 16 production divisions spread over at Bangslore, Nasik, Koraput, Kanpur, Lucknow,

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Korea, Hyderabad and Barackpur. These divisions are fully backed by nine design centres which are co-located with the production divisions. These centres are engaged in the designs & development of combat Helicopter division, Helicopter and aero-engine, engine test beds, Helicopter division communication and navigation system & Accessories of mechanical & systems and instruments.The company has successfully met the production and overhaul targets of the year 2006-2007.The company recorded excellent financial results with a turnover of Rs.3800 Crores, exports of Rs.215 Crores and profit before tax of Rs.599 Crores. HAL has declared highest ever dividend payment of Rs.81.96 Crores, which is 68% of the paid-up share capital for the fiscal year 2006-07 against the divident of 64.72 % for the previous year 2005-06.In addition provision has been made for payments of Rs 10.50 Crores as dividend tax. The company continues to enjoy the highest credit rating by CRISIL and ICRA for short and long-term debt programmes.

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AN OVERVIEW:

With the dynamics including power plant of the LaTourette ill was specifically developed to meet the Indian Army's stringent requirement and was christened Lama by the French (and Cheetah by the Indians). The SA-315B licence-agreement was signed in September 1970. First Cheetah manufactured from raw materials was delivered in 1976-77. In the initial stages of helicopter manufacturing, except for the Assam HAL'S involvement with rotary-winged aircraft dates back to June 1962 when, to meet the Indian Air Force's requirement for light helicopters, the Government of India signed a licence agreement with M/s SUD-AVIATION (Presently M/s EUROCOPTER, France).The Alouette ill, later named Chetak with firm orders having been placed in January 1965, the "raw material" production phase beginning in 1969-70. The Alouette II bly departments, all other shops were common with those of Aircraft Division. Consequent to the re-organisation of the Bangalore Complex, a separate division was evolved for the manufacture of helicopters, established in July 1970 and the new buildings of the Helicopter Division inaugurated by the then President of India, V.V.Giri on 17 July 1974. Licence agreement for the manufacture of CHEETAH (SA-315- LAMA) was signed with M/s SNIAS, France (Presently M/s EUROCOPTER, France) in September 1970

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and the first Cheetah helicopter manufactured from raw materials was delivered during 1976-77. Over the next twenty years, HAL's Helicopter Division produced hundreds of Chetak and Cheetah helicopters for the Indian Air Force, Navy, Army and Coast Guard as also for a number of civilian customers, including State Governments while a score or more were exported. The Division has produced 336 Chetak and 246 Cheetah Helicopters so far and overhauled more than 200 helicopters of both the types. It has also undertaken the Cat 'B' repairs of more than 75 helicopters and put them back into operation. The Helicopter Division, to which is adjoined the Helicopter Design Bureau (now Rotary Wing R&D Centre) and Advanced Light Helicopter (ALH) prototype hangers, has 42,000 sq.metres of factory buildings in which the manufacturing, assembly and testing facilities are established. The Division employs 1100 persons, including engineers, and is set to expand with the envisaged series production of the ALH.

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OBJECTIVES OF HAL
Basic Objectives: i. To serve as an instrument of the national policy to achieve self reliance in the design, development and production of aircraft and aeronautical equipment, to meet the countrys changing and growing needs with special emphasis on military requirement.

ii. In fulfilment of these objectives, the company shall regard itself fundamentally responsible for design and developments relying, however, upon such relevant facilities as are available in other national institutions but always holding itself basically responsible for the growth and furtherance of the countrys aeronautical capability.

iii. To so conduct its business economically and efficiently that it can contribute its due share to national efforts to achieve self reliant and self generating economy.

iv. To develop and maintain an organisation which will readily respond to and adopt the changing matrix of socio-techno-economic relationships and wherein a climate of growing professional competence, self discipline, mutual understanding, deep commitment and a sense of belonging will be fosters and each employee will be encouraged to grow in accordance with his potential for the furtherance of the organisational goals.

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Specific objectives:

i. Ensure quality of personnel at all levels and provide them the right work environment, job satisfaction and profession challenge.

ii. Provide a healthy blend of employees who have growth with the organisation and those selected from outside.

iii. Ensure employment of minimum number of personnel and avoid surplus.

iv. Provide adequate opportunities for personnel to improve the level of their professional knowledge.

v. Personnel with talent and potential for growth to be developed to shoulder higher responsibilities.

vi. Progressively introduce participative style of management.

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vii. Ensure uniformity in principal conditions of service.

VALUES OF HAL:

1.

Customer Satisfaction: They are dedicated to building a relationship with our customers where they

become partners in fulfilling their mission. They strive to understand our customers needs and to deliver products and services that fulfil and exceed all their needs. 2. Commitment to Total Quality: They are committed to continuous improvement of all our activities. They will supply products and services that confirm to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers. 3. Cost and Time Consciousness They believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. They will achieve

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this by eliminating waste in all activities and continuously improving all processes in every area of our work. 4. Innovation and Creativity They believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness. 5. Trust and Team Spirit They believe in achieving harmony in work life through mutual trust, transparency, co-operation and sense of belonging. They still strive for building empowered teams to work towards achieving organizational goals.

6.

Respect for the individuals They value people. They will treat each other with dignity and respect and

strive for individual growth and realization of everyones full potential.

7.

Integrity

They believe in a commitment to be honest, trustworthy and fair in all our dealings. They commit to be loyal and devoted to our organization. They will practice self discipline and own responsibility for our actions. They will comply with all requirements so as to ensure that our organization is always worthy of trust.

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STRATEGY:

To be in total alignment with Corporate Strategy

Maintain Human Resource at optimum level to meet the objectives and goals of the company.

Competence mapping, analysis and up gradation of knowledge and skills including training, retraining, multi skilling etc.

Create leadership with shared vision at various levels in the organization.

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 Focused development of core competence in high-tech areas.

Building cross functional teams.

Bring companywide awareness of Mission, Values, and organisational goals.

Personnel policies on performance based criteria, ensuring growth, rewards, recognition and motivation.

ORGANISATIONAL GROWTH

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MISSION AND VISION:

MISSION: TO BECOME A GLOBALLY COMPETATIVE AEROSPACE INDUSTRY WHILE WORKING AS AN INSTRUMENT FOR ACHIEVING SELF RELIANCE IN DESIGN, MANUFACTURE AND MAINTENANCE OF AEROSPACE DEFENCE EQUIPMENT AND DIVERSIFYING TO RELATED AREAS, MANAGING THE BUISNESS ON COMMERCIAL LINES IN CLIMATE OF GROWING PROFESSIONAL COMPETENCE.

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VISION: TO MAKE HAL A DYNAMIC, VIBRANT, VALUE BASED LEARNING ORGANISATION WITH HUMAN RESOURCES EXCEPTIONALLY SKILLED, HIGHLY MOTIVATED AND COMMITTED TO MEET THE CURRENT AND FUTURE CHALLENGES. THIS WILL BE DRIVEN BY CORE VALUES OF THE COMPANY FULLY EMBEDDED IN THE CULTURE OF ORGANIATION.

PRODUCT PROFILE: DHRUV:

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Basic Data Length Main Rotor Diameter Height 15.87 meters 13.20 meters 4.98 meters

Performance Cruising Speed Max Continuous Speed Never Exceeded Speed Range Endurance Max. Oblique Rate of Climb Service Ceiling 4500 m 660 km 3.5 Hrs 620 m/min 300 kph 250 kmph 270 kmph

Max. Take-off Weight 5500 kg Useful Load Cabin Volume Fuel Capacity 2600 kg 7.33 m3 1100 kg

Chetak

The Helicopter the versatile and Helicopters for applications both International

Division manufactures multi-purpose Chetak Civil and Military for Domestic and customers.

Major Features

Multi-role, seven seated Helicopter

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Spacious and simple in design

Highly manoeuvrable and well suited to flying over sea, tropical and desert conditions

Can be effectively deployed for a variety of civil and military roles that include communication, rescue, aerial survey, cargo and passenger transport and combat

Armed with missiles and torpedoes, it also caters to the exacting requirements of

anti-submarine and anti-tank warfare

The automatic starting system gives the Chetak an uncommon instant start capability cutting down the time from start to take-off to less than a minute

With an all up weight of 2200 kg, it can cruise at 185 kmph covering a range of 500 km and has endurance of 3.40 hour

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Basic Data Empty Weight Total AUW Rate of Firing Max. Range (Gun) Max. Range (Rockets) Performance Max. Speed Service Ceiling Range Endurance Rate of Climb (SL) 210 kmph 5400 m 290 km 2 hrs 30 min 5.5 m/sec 1230 kg 970 kg 11.020 meters 12.897 meters 2.602 meters

Cheetah

The Helicopter Division manufactures the versatile and multi-purpose Cheetah

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Helicopters for Civil and Military applications both for Domestic and International customers.

Major Features HAL version of Aerospatiale Lama SA 315

Lightweight high performance helicopter

Specially designed for operation over a wide range of weights, centers of gravity and altitude conditions

Simple in concept and rugged in construction

Powered by the tried and trusted. Artouste-IIIB engine

The turbo-shaft engine produces 550 S.H.P. at 33500 rpm.

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Incorporates the latest technologies viz., hydraulic servo controls, ultra

sensitive constant speed governor and an automatic starting system facilitating starting and take-off in less than a minute

With minimal adaptation it can be transformed into an excellent sprayer

Agile and highly manoeuvrable, the Cheetah can carry external cargo up

to 1 MT

Excels in observation, surveillance, logistics support, earth resource

survey and rescue operations

Comfortably seats five

Can operate in unfavourable environmental conditions

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Basic Data Empty Weight 1100 kg Performance Max speed (Vne) Cruising Speed Service Ceiling Range Endurance . 192 kmph 5400 m 560 km 4.1 hrs 210 kmph

Max. All Up Wt. 1950 kg Main Rotor Diameter Overall Length (Rotor Rotating) Overall Width (Blade folded) Overall Height 11.020 meters 12.910 meters 2.380 meters 3.090 meters Fuel Capacity 575 litres

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The Lancer helicopter developed Limited as a costand proven Cheetah Helicopter.

Helicopter is a light attack by Hindustan Aeronautics effective airmobile area

weapon system. The basic structure of the Lancer is derived from the reliable

Major Features

Optimized for anti-insurgency operations, close air support, suppression

of enemy fire, attack on vehicular convoys, destruction of enemy machine gun positions and anti-armour applications.

Carries two jettisonable combination gun-cum-rocket pods, one each on

right and left side on suspension points located on the armament pylon.

A gun sight is provided for accurate aiming and firing by the pilot.

Each pad carries one 12.7 mm gun and three 70 mm rockets.

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Basic Data Empty Weight Total AUW Rate of firing 1350 kg 1950 kg 1100 rounds per minute Max. Range (Gun) Max. Range (Rockets) 6 km 3 km

Performance Max Speed (Vne) Service Ceiling Range Endurance 210 kmph 5400 m 290 km 2 hrs 30 min Rate of Climb (SL) 5.5 m/sec

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Manpower and Infrastructure:

Helicopter Division employs 1100 highly skilled persons, direct, indirect and officers and is housed in 42000 sq. meters. of factory buildings in which the manufacturing, assembly and other facilities have been established

Manufacturing Shops: Besides the conventional turning, milling, drilling and grinding machines, Jig Grinding machine is available for manufacturing parts with close tolerances. For manufacturing the various gears and components gear shapers, gear hobbers, gear grinding, broaching and copy milling machines are used. Structural components are welded byoxy-acetylene, argon arc welding and spot

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welding in the welding shop.

Special machines: NC drilling and boring machines, jig boring machine, CNC lathe and gear grinder are some of the special machines for which a large number of programmes have been developed. In addition Spiral Bevel Gear generator, Hypoid generator and tester and cutter sharpeners supplied by MI s Gleason Gear Machines are extensively used in the manufacture of ALH gears.

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Assembly Shops: In the final and structural assemblies, equipping of the helicopter and assemblies and sub-assemblies of components are carried out with aid of jigs. T transmission components are assembled in the transmissions assembly which is provided with all the necessary testing facilities for clearing the components. The blade assembly shop for fabricating main and tail rotor blades is equipped with bonding fixtures and balancing aids. Composite shop is equipped with bonding fixtures and balancing aids. Composite shop is equipped with facilities for lay-up of composites and autoclave for curing fabricated components.

Welding Shop: The welding Shop carries out precision welding of body structures, tail boom, fuel tank, canopy, doors, seats and so on. Tubular structures of thickness 0.8 mm to 3 mm are welded. Range of jigs & fixtures ensure complete interchange ability. NDT methodology is used to ensure integrity of weld.

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Facilities also include: metalizing and 'Rilson spray' for improved corrosion and wear resistance and bonding properties.

Process Shop:

In the Process Shop the finishing processes undertaken are: cad-plating, chrome-plating, silver plating, phosphating (bondorite & parcolubrite), surface conversion coating on aluminium (alochrome) & normal anodizing both in sulphuric acid and chromic acid. The painting scheme undertaken includes the normal DTD-868 process, finishing on glass & painting byanticollusion paints. Reclamation by nickel plating in nickel sulphate bath gives a very high rate of metal deposition,

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reducing surface fatigue. The process shop has also facilities for chemical milling of aluminium alloys including taper milling.

Different Views Of Helicopters

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DEPARTMENTS:

1. FINANCE:

a. PAY ROLL SECTION:

Purpose of Payroll section: The main purpose of Pay roll section to settle employees salary & claims. For this purpose it has to collect and consolidate data from different sections of the division. Salary settlement process: For this purpose payroll section collects attendance data from I.T dept. It is generated by Time Keeping machine. It is collected at three intervals in a month. From 17th to 30th of the month From 1st to 10th of the next month From 11th to 16th of the next month

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Then the salary punch sheet record is updated to green sheet

manually. The number

of days worked is arrived at in the Green Sheet. The total number of days worked is fed into the system department wise by I.T. dept. Payroll will get two copies of attendance sheet with dept wise details. One copy will be sent to the dept concerned and the other copy is meant for payroll section. All employees will get salary at the end of the month through bank. Salary slip is prepared by 28th or 29th of the month. Leave Encashment: There are two types of leaves: 1. 2. Casual leave Vacation leave

Casual leave (CL): Twelve CLs are available in a year. CLs of officers lapse if they are not utilized within the year. In case of workers the unused CLs can be claimed as attendance bonus which can be en-cashed. It is calculated on Basic salary,( i. e. (Basic salary * No. Of CLs) / 26 days ). One cannot avail more than 8 CLs at a time. Vacation Leave (VL): An employee is eligible for 2.5 days of VL for each completed month of service. This leave can be utilized from second month of February. The VL not used in the year can be carried to the next year. An employee cannot accumulate more 300 days of VL during service. Accumulated VL can be en-cashed by employee on satisfaction of following conditions. 1. Completion of one year of service in the company. 2. Must have a minimum 20 days of leave credited in the account. 3. Leave can be en-cashed only once in a calendar year.

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Only 50% of leave balance in the account can be en-cashed. Leave record book is maintained by the payroll department on calendar basis. Travelling allowance / Dearness Allowance (TA/DA) settlement: TA/DA claims are settled as per Travelling Allowances Rules (Inland), 2007 of HAL. For this purpose employees are classified into categories A to F.

Travelling Allowance: Following expenses are reimbursed3. Fair charges (officers in grade 4 & above are entitled to travel by air) 4. Hotel / Lodge expenses 5. Food 6. Conveyance (Rs 7/km for employees and Rs 8/km for officers, subject to certain limit.) Dearness Allowance: DA is fixed. No separate food expenses will be provided. Following is the DA rate

Journey Hours Less than 6 hrs 6 to 12 hrs More than 12 hrs

Rate applicable 30% of normal DA 50% of normal DA 100% of normal DA

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Composite DA is paid for food and lodging when employee stay in their own house and takes food at home during travelling period. DA will be paid as applicable to stay in guest house.

Medical Reimbursement: Employees can avail free medical facilities at the HAL hospital. When medicines are not in stock, it can be bought from outside with hospitals prescription and approval of doctor. This medicine expenditure will be reimbursed on submission of the bills in payroll section. Bills should be produced within three months of doctors prescription. Medical reimbursement is available for expenditure self, spouse, children and dependant parents.

Reimbursement of conveyance expensed for official work: Bills are not required for this purpose, but it must be certified by the head of the concerned department. It is also subject to certain limit fixed by the management. Employees Master File updating:

Master file of an employee is created by P&A dept. when an employee is inducted into the company. It contains all his details, personal and other information. The updating is done in the following situations: 7. Addition or deletion of an employee. 8. Final settlement in case of superannuation, Voluntary Retirement, Resignation, Transfer etc. 9. Promotion, Confirmation, Deputation

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10.Others (any correspondence from other sections/depts..)

Final Settlement i.e. Superannuation, Voluntary retirement, Resignation, Transfer etc.:

In case of superannuation, employee gets his/her dues. Provident fund contribution is not deducted in the month of superannuation. In case of transfer of employee to other divisions payroll dept. sends Last Pay Certificate (LPC) along with other details to the division concerned. This LPC will help employee in regularizing his/her salary payment in the new division. Others Information:

11.Total number of employees in Helicopter division is approx 2600. 12.Total no of sections are 52. 13.CL and VL cannot be merged and availed.
14. Memo

from department head is required for change in In and Out punch timings

on a regular basis.

COSTING SECTION Principal Objective: Costing Department ascertains the cost of a product with a view to determine the selling price in short term and long term and accounting it. Other functions are:

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15.Cost control 16.Cost reduction 17.Assisting management in decision making like make or buy 18.Preparation of fixed price quotation 19.Pricing products etc... Methods of Costing: In HAL job costing (batch/contract costing) is followed. Costs are accumulated for different components making the final product and then totalled to ascertain total cost of product. Parts costed by batch costing & cost of assembling will computed by single or output method e.g., 15 ALH in one batch of production. Work Order system: Any job in HAL will start from work order. This is issued by Scheduling Department based on sales order issued by Customer Service Dept. It is authority for starting manufacturing activities. Based on work order job cards are issued to shops to carry out manufacturing activities in respective jobs. This is guided by route cards prepared by Methods Dept. Material Costing: Material cost comprises of Raw Materials, Bought out items, Forgings, Standard parts, consumables, Air Turbine Fuel, Tools etc. These are from Indigenous and overseas sources project and non project materials. Materials are issued against work orders. The document for drawing materials is called Material Requisition (M.R.). This is raised by Production Engineering Department for project materials and respective departments for non project materials. Details of materials are entered in ERP system and M.R is auto generated. Materials issued are

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priced in the system on weighted average basis. Material accounting section extracts Material Issue Journal monthly and passes accounting entries and costing section prepares costing entries. Labour costing: The computer every month and posting is done in cost ledger. For labour costing time docket is used. It is basic document for labour hours. It is prepared for each direct worker. All the direct workers record time spent by them on various jobs during the attendance for each day in a work order like cutting work order, painting work order etc. Time dockets are collected by the folder group of costing dept. placed in shops. They sort it department wise and give it to I.T.dept which will be fed into the system. These are processed and a monthly labour summary is given department wise, work order wise, expenses account wise etc. Labour Cost (LC) is calculated as, LC = Labour hours booked * Composite Man Hour Rate Man Hour Rate = Total Expenditure of Labour & Overhead / Total No. Of Direct Labour Hours Other Costs: The derived cost is increased by following additional costs: Customs duty where applicable, freight, fixed percentage of insurance, Customs handling charges, Escalation price, Exchange Rate variation etc. Fixed Price Quotation Policy (FPQ): Earlier as a protection policy the pricing was on Cost Plus basis with increased learning, Experience, Stability in production, policy was changed to fixed cost quotation in 1994.With effect in FCQ policy shifted to Fixed Price Quotation (FPQ).

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FPQ leaned more towards commercial lines of working. It provides for warranty, penalty for delay, escalation formula etc. In this policy, price mutually agreed is fixed for a batch of product for a period of time. Price is escalated on previously mutually agreed formula, e.g., the latest contract of 159 ALH over 7 years to Army is priced at around Rs.13781 Crore.

BOOK KEEPING SECTION Main functions of Book keeping Sections are:

Finalisation of Accounts Capitalisation of Fixed Assets Preparation of draft Tax Audit Report Preparation of Performance Budget Replying to System Audit Report Co-ordinating with Government audit MIS Inter Divisional Control Account

BILLS PAYABLE (LOCAL) SECTION:

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The activities of the BP local section is to make payment for the following: 1. Purchase of materials or supplies 2. Service provided by - Works labour contract - Job contract labour - Annual maintenance work 3. Work done by sub contractors on materials 4. Imprest payments and payment on note sheets 5. Other payments 6. Accounting of the events and BRS of Helicopter division

Accounting:
-

Any cash payment for imprest and other emergency B.P gives a voucher and cash disbursement is done only in payroll section. Cash is to be drawn on same day if not invalid. So cash book and physical cash tallies everyday end.

All cheque payments for the whole division are done in this section. So BRS is done in this section in IFS system. The soft copy of bank passbook is loaded into system in CVS format for the purpose of BRS.

- After all the data entry, the review is done by the officer of the accounts like advances, creditors, security deposit and earnest money deposit, suppliers, sub contractors, payment of VAT, TDS and other taxes.

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- Reports and schedules of accounts dealt are maintained like monthly MIS report, VAT report for the money to be remitted to LVO of VAT and inter divisional control accounts.

BILLS PAYABLE FOREIGN This department handles the input payments of foreign vendors for materials, capital items imported. About 80% of payment of Helicopter division is Foreign bills. Laws like FEMA, RBI guidelines, Income tax, UCPDC Uniform Code of Practices Documentary Credit, Letter Of Credit rules are to be followed correctly. Regular processer of either limited or open tenders is followed. Once vendor is decided Purchase Order (PO) is raised. It summarises terms and special agreements which is important for payment. Job of Bills Payable Foreign (BPF) starts on receiving the PO.

Terms of Payment in PO:

Inco Terms International terms for delivery

2. Payment Terms a) Direct payment through wire transfer b) Letter of Credit c) Sight draft payment

Accounting:

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- BRS is to be prepared monthly

Bank gives advice of payments. It should be entered into the system. So entries of payment done only when we get advice.

- When we get the bank statement we reconcile with the system and corporate office advice.
-

Safe custody of Bank guarantee received by supplier in payroll dept safe locker. Register is maintained in excel sheet and periodically checked for expiry date. Once the advance is exhausted BG is send to the purchase department and to vendor. When it expires amendment document is received from foreign bank.

Register of LC is maintained with details of value, utilization, expiry date and these are send to corporate office every month.

BILLS RECIEVABLE SECTION: This section is responsible for preparation and submission of invoices to customers for the supply of products, spares and services rendered and follow up for realization and accounting. Basic Functions: - Preparation of invoice as per pricing policy - Liasoning with DCDA / AO (DAD) for collection - Recording of invoice and accounting of sale of equipment and services.
-

Compilation of sales tax, VAT, service tax returns and payments and liason with tax consultants and tax authorities.

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- Collection of tax at source on sale of scrap - Arrangement of bank guarantees for customers - Maintenance of registers MATERIAL ACCOUNT SECTION: Objective of Inventory Management:
I.

To minimize the idle time caused by shortage of raw material and spare parts and to maximize the production.

II.

To keep down capital investment in inventories, inventory carrying cost and obsolescence losses.

The inventory is maintained in store ledger-project wise and store wise and assigned code for identification purpose, e.g. 0202-49, here 0202 means project ALH and 49 means Bought Out Items. Main Functions of Material Accounts:
I.

Maintenance of Material Ledger Cards for all materials held in stores. Accounting of receipts of all materials and issues of all materials. Quantity reconciliation of Bin Card balance with Material Ledger balance. Bin Card: It shows description of materials with no. Of quantity received and issued, rate per quantity and balance on particular date.

II. III.

IV. V.

Accounting of Inter Division transfers of materials and reconciliation. Raising debit devices against contractors and others for material issued / sold and accounting thereof.

VI.

Scrutiny of slow, non-moving and redundant inventories.

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Documentation:
I.

Receiving Report: Material account section receives RR from Bills Payable section. This helps the section in verifying and reviewing the entries already made in the system through IFS.

II.

Material Requisition: Material Requisition issued by shop is sent to the store for drawal of material which is punched on line by store against specific work order, IFS gives the material issue summary containing activity-wise and jobwise details on which monthly consumption entries are passed.

III.

Store Credit Notes: It is prepared by stores in respect of return of excess material drawn and sends it to the material account section for control purpose. Material account section compares the store notes with entry in the system.

IV.

Stock Transfer / Stock Re-classification: Stock transfer / Stock re-classification advices are received by store from shops are punched online by stores and the same is priced at weighted average rates. In case of stock re-classification, stock is classified into moving and non-moving stock. Moving stock: These are stocks which are utilized continuously for project purpose. Non moving stock: Those items of inventory which have not moved for five years are classified as non moving stock.

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Provision for Accounting Purpose: Moving Stock Non moving Stock - 1.5% of the stock value - 100% of the stock value

V. Stock Verification Notes: It is received from store departments together with comments for shortage or excess, which are helpful for stock control. The excess or shortage stocks are charged at weighted average rate. Weighted average rate (WAR): Each time whenever stocks are received or issued new rate is calculated based on total stock value and total quantity. e.g. WAR = Total stock value / Total stock quantity

2. MARKETING DEPARTMENT

Objectives of marketing department: To research into the market and obtain market trends, study future customer's requirements. To ensure that customer enquiry is effectively converted to a contract or order with proper identification of customer satisfaction is achieved by ultimately customer satisfaction is achieved, by regular correspondence with customers.

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To execute the order well within time cost at the designed

performance/technology level while efficiently, co-ordinating with various functional groups, making various analysis related to customer order and preparing various reports. Scope of marketing department: Market study undertaken concerning engines required for aircrafts and helicopters and interactions made with potential customers. Receipts and screening of all verbal enquiries telephonic enquiries and orders, written enquiries contracts and projects from the customers. Obtaining estimates of the proposals and submitting quotations. Receipts of orders and issue of sales order.

Closure of sales orders after restorations of invoice.

The main motives behind the functioning of market department are: Customer satisfaction : The department is concerned with building with long term relationship with the customers by understanding their needs and delivering products and services that fulfil and exceed all their requirements. Commitment to total quality The department is committed to supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by the customers.

Cost and time consciousness :

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The department is concerned with continually reducing the cost and shorten the delivery period for the supply of products and services. Innovation and creativity The department has a concern for improvement in every activity involved in business by pursuing and encouraging risk taking, experimentation and learning at all levels within the company with a view to achieve excellence and competitiveness.

The main functions of the marketing department are :-

1. Exploring new customers : One of the important functions of the marketing department is to find new and prospective customers for the products. This is mainly done through browsing the net. Through internet the department tries to identify new customer who are interested in the company products. The other telephones or fax and also through answering verbal enquiries from the prospective customers. 2. Expansion of the business : The company widening its scale of operation with its new and prospective customers for democratic as well as export business. It is also finding a new means to expand a business by diversifying into different fields in recent years. The main area in which it has diversified is the software field. It is a software company in collaboration with British aerospace in the year 1999-2000 to take advantage of the oppturnities available for the software companies in aeronautics. It has also diversified into industries and marine gas turbine market.

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3. Receipt and screening of enquiries from the customers :The activities involved in receipt and screening of enquiries from the customers include the following:

Marketing department receives the tenders over enquiries issued by the customers and the details of defence civil and export customers are recorded separately.

The prices are prepared as per the approved guidelines in case of items covered in the approved price list. But delivery/ separatability of the items shall be verified from production engineering before sending the quotation.

If items are not covered in the approved price list. The enquiry is forwarded to the respective production engineering to conform that the requirements are adequately defined and also ensure that they are within the capability of division.

4. Preparation of Estimates and submission of quotations A. Preparation of estimates: supply of spares

The production engineering furnishes the raw-material required for fabrication and also the lead time. In case of items that could be spared from stock/work-in progress, the same will be indicated.

ii)

The materials planning group of IMM indicates the cost of raw materials. HAL fabricated items are given by the management service section.

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 Repair/overhaul of engines and ratable : The production-engineering department furnishes estimated work content (material requirement and labour work) which is generally done after receipt of the item and its strip examination. supply of tooling items : The tool planning department furnishes the standard man-hours required for fabrication and the delivery lead times. Miscellaneous services : The respective departments furnishes the estimated work content in terms of material and standard services. B. Submission of Quotations: The procedures involved in case of submission of quotations are:

man hours including man days in case of field

The marketing section computes the price based on the above inputs and the standard man-hour rate in accordance with the approved formula.

The price proposal is then put to the competent authority for approval and the quotation is forwarded to the customers. Quotations are normally sent by registered post. The other are through modes or hand delivery, speed post, courier service. In case it is not mandatory to submit sealed quotations, it is sent by fax followed by original post. For items not within the range, it is communicated to the customer by way of regret letter.

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5. Follow up on quotations and Negotiation for orders : The marketing department after the submission of quotations deeps contract with customers so as to influence them to place orders with the company. The department therefore responds to any further queries placed by the customer and makes sure that the customer is satisfied with the information provided and explains him about the details furnished if he needs more clarification. Thus the department tries to negotiate with the customers to contact with the company. the company also participates in the negotiation meeting held by the customers to clarify terms to get the orders. 6. Receipt of orders and vetting of orders (contract view) Once the formal order is received the manager scrutinizes the order to check whether it confirms to the terms and conditions of the quotations submitted. The procedures involved in contract review are: the review is documented in contract review form If there are any deviations, it is brought to the notice of the customers for remedial action and issue of amended sales orders. If there are no deviations the order is acknowledged constituting a contract. In case of orders received without quotations the same is scrutinized as in case of enquiry.

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In case of RMS orders placed by IAF, Navy and Army, it is governed by the government of India and ministry of defence.

7. Issue of sales order :The authority for approving the various sales proposals is governed by the delegation of powers approved by the Board of directors and circulated by corporate office. At divisional level, general manager has sub-delegated the powers to approve price proposals. A sales order register and the date of entry is maintained. A sales order is issued in the sales order format. The sales order is addressed to the production engineering agencies including: concerned shop manager quality department materials planning stores costing bills receivable section customers service department 8. Execution of order in co-ordination with the progress department: The procedures involved in the execution of order are;

The items are manufactured as per the specification in the sales order and are than sent to inspection section.

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After the final clearance by the inspection section, the items are delivered to the stores section by the production-engineering department along with dispatch route card and inspection certificate.

The stores department (shipping) checks the correctness of the physical materials and packs the materials, prepared the dispatch advice and arranges for dispatch by road/ sail/air etc as per the stipulated delivery instructions.

The shipping department then endorses the dispatch advise format and forward the dispatch document to the customer under a covering note, a copy of which is endorsed to the production engineering, accounts and marketing department.

9. Attending customers complaints:The marketing department after executing sales order receives feedback from the customer regarding the items supplied, queries or complaints if any. In case of complaints from the customers, it verifies as to in what aspect the customer is dissatisfied and tries to take suitable corrective action and assures the customer that he will be supplied with items as expected by him. If there are any deviations in the quantity supplied or delivery schedule as the case may be. It tries to rectify the mistake by supplying the right quantity items at the specified date. In case of any discrepancies it sends a regret letter for the inconvenience caused to the customers stating the reasons for the delay.

10. Providing after sales service:The marketing department with the co-ordination of the customer support department provides after sales services to the customers so as to retain them and to maintain the company's image and also to build their confidence in the company. The after sales service includes:

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Supply of spares, technical snag rectification, repair party arrangement etc...

Providing bulletins or technical letters issued by the original designers or manufactures. Providing technical advice to the customers.

Providing for inspection, overhaul of engines after certain schedules. Sending technical expert teams to the war fields for providing necessary repair and other help during the war times.

Providing training to the technicians of the customers.

11. Follow-up for payments: The marketing department should see that the customer to whom the items are supplied makes payments within the stipulated time. It should deep contract with the customers and send reminder letters to those customers who fail to pay the amount in co-ordination with the finance and customer support department. Secondary functions of marketing departments are: Disposal of surplus and snap materials (if not handled by central salvage) Issue of sales order for deputation of HAL teams for defeat rectification at customer bases and also to facilitate drawl and of necessary items. Obtain advance CCPS/ licenses for duty free importing of raw-materials against export orders and discharge of export obligations. Customers of HAL : The major customers of HAL are broadly classified into

Defence customers

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 Civil customers Export customers I Defence Customers The defence customers of HAL are

Indian Air force (IAF)

Indian Army Indian Navy Coast Guard Border security force (BSF) II Civil customers:The civil customers of HAL are Gas turbine Research establishment [GTRE] Aeronautical development establishment [ADE] Aviation research centre [ARC]

Defence metallurgical research laboratory [DMRL] Defence research and development laboratory [DRDL]

National aerospace laboratory [NAL] Indian Space Research organisation [ISRO]

Vikram sarabai space centre [VSSC]

Bharath dynamic limited [BDL]

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 Gas authority of India limited [GAIL] Aeronautics development agency [ADA] Radar development establishment[LRDE] Bharath Heavy electrical limited [BHEL] Oil and natural gas corporation[ONGC] Steel Authority of India limited [SAIL]

Air works India limited [AWI]

United breweries [UB] Jagson airlines limited [ JAL] Cons India limited[CIL] Defence Research Development Organisation [DRDO] Indian Airlines Reliance Airport Authority of India [AAL] Summit Aviation private limited Taneja Aerospace and aviation limited East India hostels limited LakshmiAuto limited Goa ship yard

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 Other

state government which include :

Governments of Karnataka, Andhrapradesh, Madhya Pradesh, Uttarpradesh Maharasthra.

Marketing management process : The strategic plan defines the companies overall mission and objectives.

Marketing plays a role in helping to accomplish to overall strategic objectives. The steps involved in the marketing process are:Analyzing marketing opportunities

Researching and selecting target markets

Designing marketing strategies

Organizing, implementing and controlling marketing effort Marketing Strategy :Marketing strategy is the heart of a marketing plan. Marketing strategy is related to marketing as one functions area of business. Philip Kotler designs marketing strategy as a consistent, appropriate and feasible set of principals through which a

Planning marketing program

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particular company hopes to achieve its long-term customer satisfaction and profitability objectives in a particular competitive environment. It is based on corporate marketing objectives and a co-ordinated marketing action program implements it through marketing mix. The ideas marketing strategy would achieve optimum utilization of all resources of the firm. A successful marketing strategy must have a marketing mix. It is the combination of 4'ps of marketing-product mix, price mix, place of distribution and promotion mix. These are controllable factors, producer should also be aware of uncontrollable factors i.e., consumer behaviour, government policy etc .. For each component of marketing mix, we have a distinctive strategy ex : product strategy price strategy, distribution strategy, promotion strategy.

1.

PRODUCT STRATEGY :Product strategy is a company's plan for marketing its products. It starts with product objective. Product strategy must be fitted into overall marketing plan and integrated with other elements of marketing mix. The physical product is only a part of the product image. It could not stand alone, before the potential buyer. There are four elements that surround the product to give us a complete product concept. These are branding, packing and labelling, product guarantee, warranty and service.

Brand strategies and policy :Branding strategies indicated how the firm chooses to use branding as an integral part of its overall marketing strategy. A brand is a name, term symbol or design or a combination of them which is intended to identify the goods or service.

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Packing and labelling : A package is a wrapper or container in which a product is enclosed, encased or sealed. Packing therefore, may be defined as an act of designing and protecting the package for a product. A label is anything, a price of a paper statement etc.. say the place of production, the name of the producer, contents of the product , value of the product, price etc...

Product warranty :A warranty is an obligation of the producer and seller to stand behind the product and assure the buyer that he will derive certain services and satisfaction from the product.

After sales service It refers to servicing the products after it has been sold, if there is any disorder in it. It covers repairs, pone parts and maintenance. After sales service is an important selling paint helping the customer to take a quick decision to purchase durable and costly goods. ii. Pricing strategies Price may be defined as the value of the product attribute expressed in monetary terms which a consumer pays or is expected to pay in exchange and anticipation of the expected or offered utility, money (price)= bundle of expectations or satisfactions. Include in the bundle of expectations may be physical product plans other attributed such as delivery installation, credit privileges, after sales servicing and so on. Pricing policies: market penetration policy

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 market skimming policy early cash recovery policy satisfy price policy III Distribution Mix/Channels of Distribution:Channel of distribution refers to the pathway, path or route taken by goods as they flow or move from the point of production to point of consumption or user. In short it is the route through which the title to the product passes from the producer, the first owner to the ultimate consumer or user, to the owner. Channel decision and physical distribution plan are the components of distribution strategy. These decisions should be evaluated against the rest of the marketing mix and fitted into overall marketing plan. The most common routed used for bringing the product is the market from producer to consumer are as follows:1. Manufacturer consumer (direct channel) 2. Manufacturer retailer-ultimate consumer 3. manufacturer-whole seller-retailer-consumer IV Promotion strategy Promotion strategy aims at communicating, convening and competing against rivals. It is evaluated against company objectives, promotion objective and the rest of the marketing mix. Promotion strategy deals with the following decisions. 1. The blend of promotional activities (advertising),publicity, personnel selling and sales promotion)

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2. The amount allocated for the various forms of promotion particularly to the advertising media such as press, radio, television etc.. 3. The kind of promotion to be used.

sales promotion : It is an important instrument in marketing to lubricate marketing efforts. Today sales promotion is a necessity and not merely a luxury or fashion. It is not expenditure. It is an investment, which can play rich dividends, sales promotion is refers to activities other than personal salesmanship, advertising and publicity which stimulate consumer purchasing and dealer effectiveness e.g. : displays, exhibition and showrooms, free samples, coupons, premiums and various other non recurrent selling efforts not in the ordinary routine.

Publicity : It is also called marketing public relations. Publicity is not paid for by the organization. It comes to the receiver as the truth rather than as a commercial. Every firm tries to create good public relating so as to give publicity. Under the social marketing concept, publicity and public relations are assuming unique importance in the forms promotion mix. the firms having a poor public image will have lower sales and lower profits.

Advertising :

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It means informing the people of the availability of a particular product or service or idea sponsored by a person (i.e. the advertiser) at his expense to create demand for their goods.

Advertising helps to create demand for the new product introduced in the market helps the producers in maintaining the existing market for their goods and to expand the market for their goods. It popularised a product and builds reputation and goodwill for the producers.

Personal selling:-It refers to oral presentation in conversation (by a sales representative) with one or more prospective customer for the purpose of making sales. Personal selling is highly distinctive and the only forms of promotion involving face to face relationship or interpersonal interaction or communication between a salesperson and one or more prospective customer. Due to seller, buyer interaction personal selling alone can provide immediate feedback of information, which enables a salesman to understand properly the buyer's mind, his problems, his needs and preference.

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RESEARCH DESIGN

TITLE OF THE STUDY The title of the study is A study on the working of finance and marketing department at HAL"

STATEMENT OF THE PROBLEM: As the study is related to marketing and finance activities. The problem is related to the modes and methods followed by HAL

Objectives of the study:

To study the activities of the division and its product portfolio in details

To study the marketing mix of the company

To study the marketing challenges faced by HAL, Helicopter Division. To study the techniques used by the company to sustain the competitive advantage in complex and changing environment.

To analyze the performance of the company To do swot analysis of the company.

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 SCOPE OF THE STUDY : Marketing study undertaken concerning engines should require for aircraft and helicopters and interactions made with potential customer. Receipt and screening of all verbal enquiries and orders and projects from the customers. Obtaining estimates of the proposals and submitting quotations. Receipt of orders and issues of sales orders

Closure of sales orders after restorations of invoice.

REVIEW OF LITERATURE :

The Literature regarding origin of the organization and organization growth and development was reviewed from

Literature available in books.

Literature available in reports.

Companies past records and journals.

HYPOTHESIS : Primary data: observation method Secondary data: Catalogs, magazines, Journals, past records of company.

SAMPLING : In this study, data or information are collected by visiting to various locations (which are related to the main topic) which are convenient where information are collected easily and also by the secondary data collected by the employees.

METHODOLOGY OF THE STUDY :

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Methodology of the study: Methodology is defined as A particular or set of producers analysis of the principles or procedure of enquiries in a particular field ". This chapter gives clear picture of how the study been carried on? It summarizes the producers followed in study objectives of the study, the basics for method of data collection that lies in methodology. DATA COLLECTION METHOD : A data collection refers to the sources from which information can be collected. The data can be collected from 2 sources: primary source secondary source The primary source pertaining to the study is collected through: a) personnel interaction with departmental heads
b)

Personnel observation drawn from visiting the concerned departments.

The secondary source is collected from the following sources:

Related literature like test books, articles, in newspaper and journals. Records maintained by the company departmental manuals and annual reports. Financial statements maintained by the company Browsing the internet.

PLAN OF ANALYSIS :

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Analysis means a critical examination of the assembled and grouped data for studying the characteristic of the object under study and for determining the patterns of relations among the variables relating to it. Both quantitative and non-quantitative methods are used.

Types of analysis: There are two types of analysis. a) descriptive analysis b) inferential analysis This study is depends upon the descriptive analysis. Descriptive analysis: Descriptive analysis describes the nature of an object or phenomenon under study. This analysis provides with profile of organisation work groups, persons and other subjects on any of a multitude of characteristics such as size, compositions, efficiency etc... As the information for this study is collected through various manuals. as this provides the profile of organisation and other information we can conclude that this study is depends upon descriptive analysis.

LIMITATIONS OF THE STUDY :

The study is limited to finance, marketing and customer support department of the company.

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HAL being the defence industry access to may data is restricted due to some confidential nature of business.

The study is limited to the information gathered through interviews and discussion with the company officials. The comparative study of other divisions of HAL is not made.

There was a time constraints.

SWOT ANALYSIS :

1) STRENGTHS: It is a premier defence production industry of the country catering to the needs of IAF, Army, Navy and other civil customers Has diversified into industrial and marine gas turbines business. Has a well equipped engine and test bed R & D centres. Has acquired the state of art technologies for manufacture, repair and overhaul of engines. Has been credited with ISO 9002 certificate and is tanked as one of the top public sector undertakings for sustained excellent performance and figure in the first 50 global defence companies.

2) WEAKNESSES: As HAL is a public sector undertaking, it cannot carry out its business on competitive lines.

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Largely dependent on its licenses in international business transactions. Investments made in R&D are inadequate divisions need to be updated to present

Infrastructure facilities in the technologies.

Huge number of manpower available needs better utilization.

3) OPPORTUNITIES: New initiatives in R&D like ALH (Advanced Light Helicopter), LCA (Light Combat Aircraft) and Jaguar update programmes provide scope for further expansion of the business. Has scope for expanding its export business as it new projects coming up. Have new projects like Kaveri engines, unnamed target aircraft engines, Shakti etc developed by companies own ETBR & DC. Have new licensed projects like Adour MK 871, TM 333-2 B2 etc.

4) THREATS: The agreement with competitors like Rolls Royce, Turbomeca and Honeywell has put certain restrictions on the company in dealing with its customers in international business. A fluctuation in foreign exchange has resulted in an increased expenditure on its imports and thereby has increased the cost of production.

The company has to take approval to make changes in the engines designed by its licenses which involve huge expenditure.

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The company cannot take independent decision on strategic business issues.

The license agreement has restricted the company to enter into business with other countries without the approval of its licenses.

ANALYSIS AND INTERPRETATION

Analysis was made with the help of tables and graphs. The tables and graphs are formed on the basis of information collected in HAL. The following are the tables and graphs.

1. Sales Analysis: This Analysis provides Receipt & Screening of Enquiry from customers, obtaining estimates & submitting quotations, Receipt of order & issue of sales orders, Closure of sales order after restoration of invoice. Tables showing the sales analysis in terms of percentages:

YEAR 2000-2001 2001-2002 2002-2003 2003-2004

TOTAL SALES 353.5 321.1 307.1 405.6

PERCENTAGE 0% 10% 5% 25%

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2004-2005 2005-2006

412.5 263.6

2% 0%

INTERPRETATION: The total sales has been decreased to 30% in the year 2001-2002.It has been decreased to 14% in the year 2002-2003 again it is a tremendous profit about 98% in the year 2003-2004 and decreased to 7% in the year 2004-2005 . In the year 2005-06 it has been decreased to 153%.

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2. PROFIT ANALYSIS: Tables showing the Profit analysis in terms of percentages:

YEAR 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

PERCENTAGE 20% 36% 0 -0.69% 10%

INTERPRETATION: The total profit has been increased to 30% in the year 2001-2002.It has been increased to 14% in the year 2002-2003 again it is a tremendous Decreased about 0.69% in the year 2004-2005 and decreased In the year 2005-06 the profit has been increased to 10%.

Graph showing the Profit analysis in terms of percentages

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2. EXPENDITURE ANALYSIS:

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Table showing the Expenditure analysis in terms of percentages: YEAR 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 TOTAL EXPENDITURE 3092 3223 4513 2691 2368

Graph showing the Expenditure analysis in terms of percentages

SUMMARY OF FINDINGS AND CONCLUSION

FINDINGS:

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The company is operating under controlled economy. It is a monopoly in India as there are no other competitors for the company in this field.

HAL products are mainly licensed from big giants in the international market to expand its scale of operation such as Honeywell, Rolls Royce and turbomeca. But HAL has attained the capability of indigenously developing gas turbine engines. Under the liberalized economy, the division has more scope for diversifying to civil and other international customers.

Division has many new projects under design/production stage. HAL has updated itself with the modern technologies and management tools like ERP, LEAN, and CRM.

CONCLUSION:Every report has its own conclusion and theme so also is the same here it has always been the practice in academic work of this nature to analysis and come out with some conclusion that tend to pass judgment on the efficiency and effectiveness of an enterprise under study.

HAL is indeed a very huge organisation and is one of the main pillars of the nations security.

In India, the achievement can well be claimed by HAL. The company's commitment towards its customers, employees, other shareholders and the society in general are tremendous.

There have been good initiating measures undertaken by the company to upgrade the quality and efficiency of its products and machinery.

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 The firm's commitment towards quality is worth appreciation. The financial position of the company is good though there are some indirect looses. There has been good co-ordination among all the department of the company.

Recommendations and Suggestions:1. The management can design and install a marketing decision support system in order to help the management in making better marketing decisions. 2. With the implementation of CRM, the division can further enhance the customer satisfaction level.
3.

HAL Helicopter division has enough of manpower; this can be utilized in the most effective way by bringing out the ideas of each person that would help the division to progress.

4.

With the help of EDP the division can reduce its lead time involved in the manufacturing/repair/overhaul of helicopters and spares at all levels.

5.

New management techniques such as JIT and SCM can be introduced in order to make the customers happier of the service that is rendered to them by the division.

6.

The division can make prospective international customers if it not restricted by its foreign licenses, who restrict its operations with other customers.

7. Investment made in R & D activities must be increased to carryout new innovation and significant product development.

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8.

HAL, Helicopter division and marketing department can conduct annual meetings with its customers so that it can explain to them about its product features, technology up gradation and new innovations in the field of aviation.

9.

HAL should set up its service centres/team abroad to provide comprehensive maintenance support to the customers and to enhance its export Business.

10.HAL can enter joint venture project with other global Honeywell players like Pratt and Whitney, general electric and others to gain technical excellence in the field of aviation to become a global player. 11.Supply chain management must be introduced in domestic as well as international business to easy the customers to get the services in time.
12. It

should make use of online business transactions and other MIS tools like EIS,

TPS and ESS etc... For ordering, processing raw materials and also for transacting which help in reducing the cost and time involved.

BIBLIOGRAPHY

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 Marketing Management by Philip Kotler

Annual Reports of HAL (Helicopter Division)

Departmental procedure manual

website of Helicopter division www.hal_india.com

Internet

Financial reports of different department.

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