Final

A

Project Report On

“Working Capital Management”

Pragati Electrocom (P) Ltd

Submitted In the partial fulfilment of requirements for the award of

degree of

Master of Business Administration

Session [2014-16]

Submitted to: Submitted by: Ms. Shipra Sukhija Naveen

Assistant professor 14007532005 (MBA Deptt.) DITM

DEENBANDHU CHHOTU RAM UNIVERSITY OF SCIENCE &

TECHNOLOGY MURTHAL, SONIPAT

DECLARATION

I, Naveen, certify that the Project Report entitled “A Study on Working Capital

Management” is an original one and has not been submitted to any other Institution for

the fulfillment of the requirement of a course of Management Programme (MBA).

Certificate

This is to certify that Naveen bhardwaj, of 20014-16 batch of Delhi Institute of

Technology and Management has worked with our company for her summer

internship from 1-June-2015 to 1-August-2015 and has worked on Working Capital

Management .The work carried out by her and performance shown by her during the

period was found excellent/very good/good/average.This certificate is being issued to meet the requirement of the university.

Signature of Supervisor

Date:

Name and Designation of signatory

Seal/stamp of the Organisatio

A collaborative project like this does not exist in a vaccum. In order to keep this project running, one need support and help. Project “Working Capital Management of Pragati

electrocom Pvt Ltd.” has been fortunate to have the support the following.

I wish to express my sincere gratitude to all of those who helped me directly or indirectly in conducting this work and encouraged, inspired me all through the study.

It is my privilege to express my in debtness to Mr. GIRISH SHARMA, General Manager of Finance Department without whose help this project could not have been completed. His guidance, encouragement & valuable suggestion lead my way through most difficult period during the project.

At this juncture, I am grateful to my Faculty members Mrs.Pooja Arora and Ms.Shipra Sukhija (Asst.Professor) who have provided me important ideas, support and assistance all through the project.

I am immensely grateful to my friends for their constant support and encouragement. I would also like to express my sincere thanks to all respondents, who may go as unnamed. Their co-operation despite the time, work constraints and their valuable opinion has been of immense help to me.

Executive Summary

Building on ideas and structure is the first requirement of the project. It stresses the ideas of contemporary structure analysis and uses modeling technique to describe system.

It also distinguishes between physical and logical design and emphasis the structure way of moving from a description of user needs to a working system.

Most of the changes concentrated on improving and expanding the explanation of some principle. The underlying philosophy of the project remains the same.

To introduce the technical in the sequence required in the practice. One important set of technique is known as structured system analysis, which concentrates on data, developing data models and using data analysis models.

Process flows are then defined around the data models, data analysis techniques. A further set of techniques concentrates on functional analysis to describe in the system. I also took the help of ratio analysis in my study to know about the financial position of the company. The first section includes introduction to Pragatielectrocom. The successive chapter introduces us with the project, gives proper definition to the problem, objectives of the study, significance of undertaking this project and defines the limitations and scope of the study. The third section briefs us about the way of carrying out the research methodology, which in turns tells about the sampling, data collection methods, field work, analysis and interpretation etc then is given the results and findings devised out of the research project.

Financial Statement Analysis is the process of identifying the financial strength and weakness of the organization from the available accounting data and Financial Statement. The analysis is done by properly establishing the relationship between the items of balance sheet and Income and Expenditure accounts the first task of financial analyst is to determine the information relevant to the decision under consideration from the total information contained in the financial statement. The second step is to arrange

Chapter No

1

2

3

3.1 Methods of Data Collection 3.2 Sampling

3.3Hypothesis and About Questionnaire

4

5

Annexure

CHAPTER 1

AIM AND ESTABLISHMENT OF THE COMPANY

Pragatielectrocomestablished in the year 2001, Pragatielectrocom has worked with clients from different industries and has gained rich experience. Maintaining international standards the organization takes pride in its accomplishment. It would be worthwhile to mention that Pragatielectrocom has always been a focused company and has served the industry with diligence.

The organization has come up with innovative products from time to time to serve its clients in the best possible manner. Pragatielectrocom promises unparalleled customer satisfaction through excellent quality of both products and services. The company is focused on developing cost effective, efficient solutions that are not only profitable for its clients but also environment friendly. Commitment to customer, ethical business practices, R&D oriented products and timely assistance to client's need makes Pragatielectrocom a preferred business partner.

Pragatielectrocom has a modern design & development center equipped with fully automated manufacturing facility. The facility sprawls across an area of 20000sq. meter and has two shops of 6000sq. feet each for Fabrication and 6500sq feet for Galvanization. The production capacity of the plant has increased from 1500 tons to 2500 tons, with the up-gradation of existing facility and with installation of new machinery. The infrastructure is upgraded on time to time keeping in mind the present day's requirements thus enhancing the productivity and maximizing customer satisfaction. The infrastructure is manned by a well trained& experienced team of technicians, which form an essential element of our manpower.

A team of 120 experienced technical & non-technical professionals form the backbone of Pragati's infrastructure. The teams work in tandem to analyze, evaluate and develop

products that meet customer requirements. The manpower is carefully selected by our experienced recruitment panel and the management team who ensure quality of the human resource. In an endeavor to enhance their productivity regular in-house sessions are conducted that gives a new vision to the employees to refreshes their knowledge.

History

86.924: This was the register number in the Trademark Directory, the start of an exciting story in the history of Indian industry. Who would have thought 21 years ago that one day PRAGATI ELECTROCOM will produce with more than 38000 employees worldwide in about 49 production facilities in 19 countries sales of 4.3 billion Euros?

Our Vision, Mission and Values

-The expectations and targets of company are reflected in its policy and continuous efforts for expanding its share in the market. The PRAGATI ELECTROCOM Vision 2005 proves to be the statement of its goals and would shape its future in India. The high connectors of PRAGATI ELECTROCOM Vision 2005 are:

- Pragatielectrocom sales over INR 3 billion.

- Pragatielectrocom leader in CFL, FO and ECG.

- Pragatielectrocom the most respected brand name in the country.

- Pragatielectrocom products available in all parts of India.

Mission:-- Better Technology - Better Quality - Better Tomorrow

- Optimum Power and Tower Solutions for an energized world.

Vision:-

- Customer Satisfaction.

- End to end novel solutions for energy conservations. - Commitment to Total Quality.

- Cost and Time consciousness. - Innovation and Creativity. - Trust and Team Spirit

Pragatielectrocom is one of the two leading connect ring manufacturers in the world. Connector from Pragatielectrocom shines in about 150 countries. With sales outside Indian accounting for 88 % of total turnover and a sales presence on every continent, we are a true global player. In the 2006 fiscal year, Pragatielectrocom more than 40000 employees produced sales of Euro 4.6 billion.

New markets and innovations New Markets

:-In addition to Europe and North America, two bases where PRAGATI ELECTROCOM is particularly strong, Asia is one of the most important growth markets for PRAGATI ELECTROCOM innovative products. In 1994 the Indian sub-continent became a potential growth center for the energy efficient conjecturing products.

PRAGATI ELECTROCOM Pvt. Ltd. became quite strong and with the acquisition of E.C.E. Terminals, division the projected sale was projected to be in excess of Rs.100 crore. Pragatielectrocom continually improves its market presence in Eastern Europe.

Management Policy towards quality: -

- To fulfill the requirement of our & external customer.

- To optimize and harmonize interrelated process rather than individual functions. - To prevent the mistakes to happen.

Quality

Objectives:-- To achieve customer satisfaction index of 60% within 3 years.

- To conform to the budgetary plan for production, shrinkage and efficiency. - To confirm with “annual PPM plan ".

- To upgrade three raw & packing material supplies each year to a quality score 57/60.

- To bring down number of accidents by 20% every year by following the safety norms.

Corporate Citizenship

UN Global Compact: -PRAGATI ELECTROCOM is committed to behaving responsibly

towards people and the environment.

Social commitment: -As a global company we do business in many cultures and

societies and are involved in local activities. For example, around 60 percent of the employees at our factory in India and 40 percent employees work out off India.

Development projects:

-Pragatielectrocom works together with NGOs (Non-Governmental Organizations) for projects in developing countries. These projects include connect ring for regions without a permanent power supply, and technology for mobile water purification.

Education:

-Pragatielectrocom provides support to poor families so that their children can go to school. Pragatielectrocomemployees provide the children with financial help for day-to-day living.

Environmental Management

Definition of environmental management :-The environmental management system

includes all employees and departments who are responsible for improving the company's environmental protection. This also comprises all environmental planning and organizational activities and applied processes and methods to develop, implement, maintain and evaluate the company's environmental policies.

Pragati electrocom environmental Guide lines :-The Pragati electrocom

environmental guidelines were introduced in 1998. We hereby commit ourselves to respect the environment, assume responsibility for it, deal with resources economically and avoid any negative impact on the environment. We underline our commitment to active environmental protection with these environmental guidelines.

Production and the environment: - All pragati electrocom products are made using

environmentally friendly methods of production. Around the world, pragati electrocom continually monitors its production techniques for environmental compatibility and develops new manufacturing processes. Ornament, Health and Safety Officers support our management and employees in all plants. Our systematic meets the international standard for environmental management systems ISO 14001:2004 and creates legal certainty as well as a continuous improvement of our environmental performance. Though the company leads in the telecom sector, it provides technical support to many other industries. The company provides solutions to all aspects of power protection. Pragati Electrocom maintains a steady growth rate and has continuously expanded its profile. Today it excels not only as an OEM and solution provider but also as a turnkey solutions provider and technical consultant.

Work Methodology

Pragati has a large team of trained professionals that work according to set standards, constantly upgrading their work techniques, that assures meeting customer requirements timely and as per defined quality standards. The company follows a well defined work methodology for organized working, which leads to zero-errors and higher efficiency. The Work Methodology includes:

 Understanding and Developing clients requirement

 Project planning & System design

 Product manufacturing / fabrication

 Assembly / integration

 Product testing

 Installation and implementation at clients site

TSP (Total Solution Provider)

We as an experienced Total Solution Provider offer services encompassing Site Survey, Soil Testing, Lease and other document collection from concerned authority, Statutory approval, Drawing approval from concerned authority, Tower and its foundation work, DG & its foundation work, Shelter & its foundation work, Outdoor electrification and earthing work, EB connection. We are the most preferred total solution provider in the industry as we develop, deploy, supply and train our clients for the existing process.

EPC (Engineering Product Consultancy)

We are a Technical Consultancy for Network Infrastructure, Services, Design and Development of software/hardware and customized products. We offer services for complete design, product selection and execution of Telecom, Railways and power related projects. We cater to all the requirements of our clients in unbiased, ethical and opinions that are backed by education, experience and innovation. We also provide consultation and review of the factual information and give optimum solution in most cost-effective way.

Turnkey Projects

PragatiElectocom has the expertize in executing Turnkey Projects for Telecom, Railways and Power projects. Our technical team consists of skilled and experienced professionals who have undertaken and commissioned various such projects successfully. Complete design, product selection & execution of projects is conducted by us in most efficient and cost effective manner. Our technical knowledge and extensive experience across industry verticals have leveraged our capabilities to meet most demanding requirements of turnkey projects.

SWOT ANALYSIS

STRENGTHS:

PragatielectrocomPvt. Ltd. is Strong Brand Equity in the market of the products.

2. Its products are ISO marked which means that the products are standardized products.

3. The company provides after sale services to its customers, which make them, satisfy in all respects.

4. The company uses better and advance technology for manufacturing goods.

5. The company makes available better quality products, which has increased its goodwill in the market very much.

6. PragatielectrocomPvt. Ltd. is having very strong Distribution Network, which make available its product in every part of the world.

WEAKNESS:

1) There is lack of complete automation.

2) Product range is not speedily increasing as compared to that of competitors.

3) Lack of professionalism is also its weakness. OPPORTUNITIES:

1) Power has been accorded a “Priority Status” by the Govt. of India.

2) Good demand from developing countries resulting in high capacity utilization.

3) Increasing bulbs and tubes market due to huge investment planned in power generation by the Government.

4) Increased emphasis on energy is saving and environment friendly connectoring products by all segments all over the world.

5) Huge unexplored export market. THREATS:

1. Freeing up imports and reduction of import tariff barriers resulting increase in imports and consequent lowering of capacity utilization and dumping of low quality and cheap products into India.

2. Unchecked import shrinking of sales and profits due to increase in the number of company.

3. Market expansion rate is 10% and entering of competitors is at the rate of 30% which results in Supply > Demand

Research and development

Since the beginning, PragatiElectrocom has kept its focus on future challenges & demands of the market and hence, has been developing several innovative products & solutions for clients and industries. In-house R&D team that has graduate and post graduate engineers from IITs, RECs etc., who diligently work to meet challenges posed by the markets. Focused R&D initiatives and in-house facilities have been instrumental in Pragati's quest for new products & innovative solutions. The R&D unit has modern instruments such as latest micro-controller development systems; DSP based digital and analog based controller development systems etc., related software development capability also enables Pragati to refine the process of research & development

Description Of Product

PragatiElectrocomPvt. Ltd. has taken over terminal, connectors, coupler, wiring harness division of ECE industries limited satiated at imtManesarGurgaon in 2001. PragatiElectrocomPvt. Limited is now owner of the factory. Here different luminary products are manufactured in the following plants:

PRODUCT OF PRAGATI ELECTROCOM

:- Power Conditioning, Automation and Energy Saving Products

 Power Protection Products

 Telecom and Transmission Towers

 Shelters

 Free Cooling System

 NMS (Network Management Systems)

 Solar Based Solutions

 Maintenance Free Chemical Earthing

 Lightning Arrestors

Development:-We systematically research innovative applications for new

environmentally compatible raw materials and further develop our products to meet or exceed today's environmental standards. PRAGATI ELECTROCOM researchers work continually to increase the service life of our products and enhance their operating efficiency. We strive to use as many environmentally friendly materials as possible during the production process and constantly search to find replacements for

Product use:-During product development we place special emphasis on the operating

efficiency of our terminal, connectors, coupler, wiring harness. Our research and development also focuses on eliminating as many toxic materials as possible and replacing them with environmentally compatible substances.

Legal regulations:-It goes without saying that we respect all legal standards and

regulations. We closely follow current and expected developments in environmental standards and work hand in hand with environmental agencies and institutions. Our guiding principle in everything that we do is to limit our impact on the environment by continually improving our processes.

Customers:- PRAGATI ELECTROCOM products unavoidably contain environmentally

hazardous materials. Our researchers continue to develop our products to reduce the amounts of toxic substances in PRAGATI ELECTROCOM. The objective is to replace all environmentally harmful substances with environmentally friendly materials.

Responsibility at Pragatielectrocompvt ltd-To achieve its environmental objectives,

PRAGATI ELECTROCOM has created the necessary organization with clearly defined areas of responsibility and a management system to produce continual improvements.

Pragatielectrocom provides power conditioning, automation and energy saving products for usage across industrial & commercial establishments. Our array of products includes Power Management System (PMS), Static /Servo Voltage Stabilizer, Power Distribution Frame, Phase & Neutral Balancing System (PNBS) etc. These products are based on extensive research and the use of latest technologies ensures efficient performance in different environment. Our highly efficient Power Conditioning, Automation and Energy Saving Products are available at most competitive prices.

Power Management System (PMS)

A Power Management System is a modular unit, which combines Static Voltage Regulator, Isolation Transformer, Best Phase Selector, Auto Mains Failure, AC Distribution Panel, Lightning and Surge protection and Alarm systems to provide the Power Management Solution for Telecom BTS sites. PMS has utility for other applications as well where a controlled power is required for electrical appliances at industrial sites, manufacturing facilities.

Features

 Stabilizes single and three phase supplies

 Wide range of inputs 155 to 495V Line to Line

 Output voltage Stabilized to +/- 5%

 Power rating from 5 KVA to 50 KVA

 Lightning and Surge protection is built-in

 Auto Main Failure panel ensures un-interrupted supply to load

 Fuel saver logic for energy efficient operation.

 AC controller logic for long and efficient AC operation

 Fire alarm system

 Aviation lamp power supply with controller

 Potential free contacts for remote transmission

 Remote monitoring facility through GSM

Static/Servo Voltage Stabilizers have been specifically designed to safeguard large electric equipments against voltage fluctuations. It provides complete power protection to sensitive electronic appliances like industrial refrigerator, air conditioners, computerized sewing machines, sensitive medical equipments etc., against large main voltage supply variation. It is advantageous as it is an energy saver, protects electric equipments at both low and high voltage and protects them from overload. This system keeps check on voltage variations by quick rate of correction which completely protects the appliance.

Features:

 Variable voltage regulator

 Very wide input range (155 to 500 V L-L)  Output regulation within +/- 1%

 Power rating from 5 KVA to 500 KVA  Automatic Voltage Correction

 Automatic Power Protection & Surge  Electronic Control Circuit and meter panel  Synchronous motor controlled by thyristors

 Special radiators are provided for effective cooling of the system.

 Incorporated with core of high grade Electrical Silicon Steel

Power Distribution Frame (PDF)

A Power Distribution Frame (PDF) is a system designed to provide telecommunication equipment with direct current through protective device. PDF distributes DC voltage of battery to the various circuits in RBSC and MSC Telecom installation sites. The equipment is generally used in applications where a power plant is with low distribution. It is used to supply power to transient sensitive electronic telecom equipment. The frame is advantageous as it limits the current during a short circuit at any of the distributed outputs without disturbing operation of other circuits. In case of short circuit at any of the output, the voltage at all other outputs will remain unchanged. The equipment has cabinets, distribution unit, distribution circuit breaker filter module and central supervisory unit. It supports 132 distribution outputs of -48 V, which can be taken out for different loads.

Features

Operation with 48 V Battery supply of the Power Plant at Telecom sites

 Two filter units (one hot stand-by) to give extra filtering to 48V supply

 Isolation and fuse protection provided in 48V path

 The system can be equipped with maximum 6 distribution units

 Each distribution unit has a capacity of 22 distribution circuit breakers

 Circuit breakers can be of capacity 10A, 30A and 50A

 132 (22 x 6) distribution outputs of -48 V can be taken out for different loads

 Internal wiring & connections are made for ease of unit exchange

Automatic Voltage Regulator (AVR)

Phase & Neutral Balancing System (PNBS)

Phase and Neutral balancing systems is specially designed by Pragatielectrocom for managing uneven load distribution in a three phase system. A three phase power system, when unevenly loaded, causes different phase-neutral voltages and heavy unbalance current flows in a phase-neutral conductor. This results in huge power loss. PNBS when connected across the mains input equalizes the three phase voltages there by reducing the neutral and the power loss. PNBS also generates virtual neutral or phase for the load if the same is not available in mains supply. The use of this system reduces power bill as it equalizes voltage and cable losses are also reduced.

Pragatielectrocom offers reliable protection against large mains voltage fluctuations to air conditioners. They are available in 4/5 KVA 1PH & 3PH. These products are specially designed for the telecom industry. The prime advantage of AVR is that it protects the appliances from being damaged due to the voltage fluctuations. Features:

 High efficiency  Light weight  Wall mounting

 Digital display of voltages and currents.  Quick corrections

 Works on a single as well as three phase AC supply  Accurate

Features:

 Reduction of Neutral Current

 Energy Saving

 Better Quality of Power

 Equalized Three Phase Voltages

 Availability of Three Phases even in case of Phase Failure In Supply

 Equalize Phase Angle of each phase at 1200

 Reduction of DG running

 Diesel Saving in Urban areas of around 15-20%

SMPS - Power Plant

A switch mode power supply plant ensures that there is an uninterrupted supply of DC current to DC equipment when they are connected to batteries. The rectifier modules convert the sinusoidal alternating current from the main supply into direct current and deliver it to the equipment. Batteries connected to the plant store energy, so that they are able to deliver it back to the equipment in case primary mains supply become unavailable. The power systems are designed integrating the microprocessor controller, DC Distribution Board and the modules of suitable capacity. The main advantage of this plant is that despite its small size and light weight it is highly efficient.

Features:

 Micro- controller based monitor card  One outlet for battery

 A wired mechanical cabinet for sixrectifier module  Switch mode rectifier module

 Customized DC distribution protected by MCB's  Outlet for batteries

Transformers have capacitance from a winding to any nearby Conductor. They can couple high frequency signals and noise to these near-by conductors. This mechanism can carry high frequency noise. They work between the input primary to the output secondary winding or vice versa An isolation transformer eliminates common mode noise providing an isolated neutral-ground reference for sensitive equipment. Isolation transformers are generally with symmetrical windings. An isolation transformer transfers an AC signal from one device to another without electrically connecting the two circuits. These remove EMI/RFI noise, utility switching transients, and harmonics generated by other on-site loads utility or lightning related surge conditions. Features:

 Very High impedance between input and output  Isolation levels up to 90 db

 Conforms to IS standards  Compact and modular design

Class B Protection

Class B protection at building entry point are made for easy lighting arrestors which operate on RADAX technology. They have 100KA at 10/350 micro seconds pulse handling capacity.

Class C Protection is capable of handling surges of the order 20KA at8/20 micro second with the help of fuse less surge arrestors. The multi-strike handling system operation is regulated by using an energy coordinated coil.

Telephone Line Protection

These are plug-in surge arrestors that protect communication network using line systems. These are designed using insulation pierced connections that have built- in fail-safe overload protection and surges up to 10 KA (average) at 8/20 microseconds.

The device provides four stage protections with combinations of GD Tube, MOV's, PTC and Surge suppressor diodes. The device operates in a fraction of a second with operating temperature range of 25C to + 80 C. It provides protection in four areas:- Radio Frequency Interface Protection, Computer Network Protection, Coaxial Cable Line protection and Data Line and server Protection.

Balanced Telephone Line Protection

Plug-in surge arrestors for protecting communication network using line systems have been designed using insulation pierced connections with built in-fail safe- overload protection and surges up to 10 KA (average) at 8/20 microseconds.

The device has been designed with four-stage protection extended with the combination of GD Tube, PTC, MOVs and Surge suppressor diodes. The devices are capable of operating in < 1 n sec. With operating temperature range of -25 C to +80C.

Stage-I : The GD Tube placed across the line at the subscriber end, as well

across the earth, small extend total protection between line to earth, return to earth, live to return path. The fuse installed at the Telephone Exchange side shall blow-off to protect the Exchange.

Stage-II : The combination of two PTC's and three MOVs shall protect the

Telephone Exchange in case of surge on the line if GD Tube fails to function, on all three routes i.e. line to earth, return to earth, and line to return path.

Stage-III :In case of non-functioning of first two stages the surge suppressor

diode (Clamp Diode) shall clamp the surge signals resulting in the fuse blow-off thus extending protection to Telephone Exchange.

Stage-IV : The PTC is provided prior to MOV to create line impedance for

safeguard of the MOV from blast in case of surges. The coordination coil before the surge suppressor diode, provide line impedance for safeguard of suppressor diode. The LED in CCT indicates the healthy and proper polarity of the line. In case of short CCT at subscriber end, sufficient line impedance is maintained with the help of PTC and coordination coil for over-load protection

of Telephone Exchange. Technically the GD Tube, MOV's and Surge Suppressor Diodes are voltage protection devices and PTC and Coordination Coil are current protection devices.

Plug-in surge arrestors for protecting communication network using line systems, have been designed using insulation pierced connections with built in-fail safe- overload protection and surges up to 10 KA (average) at 8/20 microseconds.

The device has been designed with four-stage protection extended with the combination of GD Tube, PTC, MOVs and Surge suppressor diodes. The devices are capable of operating in < 1 n sec. With operating temperature range of -25 C to +80C.

Coaxial Cable Surge Protectors

All the receivers and emitters of radio signals are very sensitive to surge voltages since they are highly electronic equipments. A typical weak point of these devices is the input of the coax cable, which may become the conductor for the surge voltage. Both radio and TV antennas are very exposed to receive the effects of surge voltages from atmospheric origin since they are located in the highest parts of buildings or structures. The surge voltages can be conducted by a direct strike of lightning to the antenna or the electro-magnetic field when lightning strikes in the proximities can induce them.

POLICY OF THE COMPANY

RESEARCH AND DEVELOPMENT

One of the key strengths of the company is R&D. Over the years it has made major investments in its R&D division. Most importantly, the senior management is taking keen direct interest in various development projects.

The backbone of pragatielectrocom is its corporate R&D center, established with an investment of Rs. 100 million and has distinction as a approved lab by govt. of India, capable of conducting tests as per Japanese standards, European Homologation. EEC/ECE, JASO & JIS. ISO 14001, environment certificate serves to show that Pragatielectrocom is committed to being a responsible corporate citizen by ensuring that we take heed to minimize and where possible eliminate environment unfriendly substance.

Corporate Social Responsibility

Pragatielectrocom corporate philosophy is "RESPECT FOR INDIVIDUAL". Their employees are their greatest assets. Their future growth depends greatly upon excellence in human resource management and development.Their offer equal growth opportunities across the Organization. Company provides conducive environment for employee's growth, by providing training and exposure for overall development with a view to make them able to shoulder added responsibilities. We are commitment to Corporate Social Responsibility & pledged to dedicate some part of its profit, on a continuous basis towards Corporate Social Responsibility

Quality

PragatiElectrocom is an ISO 9001:2008, 14001:2004, OHSAS 18001:2007 certified company working in compliance with defined norms to offer superior quality products and best services. It works towards pushing its benchmarks and always adheres to its commitments. The organization makes no compromise on the quality of the products and ensures that its products conform to industry defined standards of performance & safety. The products comply with UL, CSA, EN, TEC and RDSO standards. The in-house quality audit & controlling unit is equipped to undertake all required tests &

Quality assurance is not merely a practice at PragatiElectrocom; it is an integral part of material procurement, manufacturing processes, product delivery and all subsequent procedures. We, Pragati strongly believe in providing total customer satisfaction by adhering to global quality standards and following best practices such as:

 Excellence in product & process development

 Constantly adhering to systems & procedures

 Carrying out constant improvement through committed vendors and employees

We manufacture the most genuine components as quality and commitment are the paramount concerns at Pragati. Our relentless support, adherence to quality specifications and compliance with the latest automotive quality system standards makes us the preferred choice of global OEMs and international partners.

The team at Pragatielectrocom strives to improve the levels of quality, efficiency and delivery thereby providing flawless service to our clients. We make all possible efforts to

meet the requirements of our clients and produce products that are at par with the emerging automotive technology.

Apart from this, the company is also practicing TPM for better utilization of maintenance and production resources.

As a part of our responsibility as a corporate citizen, we ensure that the processes a Pragati premises cause minimal harm to the environment and we undertake several steps to eliminate this effect. It has been awarded the ISO 14001, environment certificate for the initiatives taken by the company in this regard.

Our efforts to bring in world-class quality practices with zero defect approach insist on the fact that we want to be fully committed to quality & customer satisfaction, and to become a world-class organization as we move ahead.

Testing

The facility is equipped with the following testing apparatus:  Environment Test Chamber of

Size 2.5 M X 1.5 M

 Inspection Fixtures

 Hardness Tester

 Tensile Testing M/C

 Color Checking Booth

 Minolta Color Comparator

ORGANISATIONAL STRUCTURE OF THE COMPANY

A brief introduction to Divisional / Departmental heads.

CHAIRMAN

CMD holds to most position in the organization. He is the owner of the Company. Heguides the functional heads to smoothen their activities. It is the key position in the organization.

EXECUTIVE DIRECTOR OPERATIONS:

He is the overall in charge of P&A, HRD, Systems, TQM and Critical Issues.

PRODUCTION HEAD:

He is the overall in charge of works. He is directly involved in production planning. He formulates various policies for betterment of the product. He issues guidelines to Production Department and Quality Control Department for implementation of the policies.

FINANCE HEAD:

He is directly involved in finance matters and finance policy. He is also involved with personnel department for wages compensation, salaries and other financial benefits.

HR HEAD

:-HRD Department is responsible for better utilization of manpower through Recruitment’s, Selections, Training, Development, Retention and Welfare of the group. It is involved in policy formation and its implementation.

SR.GENERAL MANAGER

He is responsible for marketing, Design, Estimation and Projects Management

PERSONNEL

 A.K.Khurana ( Executive Director )

 R.K.Girish (Finance Head)

 K.Murly (Business Head)

 Rohit Mehta(Marketing Head)

 Kalyan Singh (HR Head)

 D.S.Chawla (R&D Head)

CHAPTER 2

LITERATURE REVIEW

REVIEW OF LITERATURE

Edwin Flippo defines Recruitment and selection process as "A process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization."

In simpler terms, recruitment and selection are concurrent processes and are void without each other. They significantly differ from each other and are essential constituents of the organization. It helps in discovering the potential and capabilities of applicants for expected or actual organizational vacancies. It is a link between the jobs and those seeking jobs.

According to Korsten (2003) and Jones et al. (2006), Human Resource Management theories emphasize on techniques of recruitment and selection and outline the benefits of interviews, assessment and psychometric examinations as employee selection process. (Korsten 2003).

Jones et al. (2006) suggested that examples of recruitment policies in the healthcare, business

or industrial sector may offer insights into the processes involved in establishing recruitment policies and defining managerial objectives.

Price (2007), in his work Human Resource Management in a Business Context, formally

defines recruitment and selection as the process of retrieving and attracting able applications for the purpose of employment. (Price 2007).

Hiltrop (1996) was successful in demonstrating the relationship between the HRM practices, HRM-organizational strategies as well as organizational performance. He conducted his research on HR manager and company officials of 319 companies in Europe regarding HR practices and policies of their respective companies and discovered that employment security, training and development programs, recruitment and selection, teamwork, employee participation, and lastly, personnel planning are the most essential practices (Hiltrop 1999).

As discussed by Jackson et al. (2009), Human resource management approaches in any business organization are developed to meet corporate objectives and materialization of strategic plans via training and development of personnel to attain the ultimate goal of improving organizational performance as well as profits.

Organizations are now developing models of the kind of employees they desire to recruit, and to recognize how far applicants correspond to their models by means of reliable and valid techniques of selection. Nonetheless, the researchers have also seen that such models, largely

derived from competency frameworks, foster strength in companies by generating the appropriate knowledge against which the job seekers can be assessedBratton & Gold (1999)

However, the process of recruitment does not cease with application of candidature and selection of the appropriate candidates, but involves sustaining and retaining the employees that are selected, as stated by Silzer et al. (2010).

According to Silzer et al (2010), that was a core challenge in designing talent systems, facing the organization and among the senior management. The only solution to resolve the concern of attaining efficient talent management was by adopting fully-executable recruitment techniques

organizational contexts.

Toward that end Taher et al. (2000) carried out a study to critique the value-added and non-value activities in a recruitment and selection process. The strategic manpower planning of a company, training and development programme, performance appraisal, reward system and industrial relations, was also appropriately outlined in the study After careful consideration of similar problems in the BOU.

Conclusion

It can be clearly concluded that for a company to succeed all it takes is the proper recruitment and selection strategies which also shapes the overall manpower management of the company. By conclude this literature review, the study emphasizes on the fact that the recruitment and selection process is integrated with other processes such as strategic plan of the company, training and development schemes, compensation, rewarding/incentive system, performance appraisal, and lastly, industrial relations. Furthermore, according to Silzer et al (2010), there exist several reasons why the most apparent information have been more promising; including the well-structured nature of interviews, the use of questionnaires based on a job analysis, inclusion of panel of interviewers, the practice of note-making during the interview, and the use of rating scale based on behavioural factors to gauge the interviewee's answers all play an integral part in the improvement of the recruitment validity.

Therefore, the study has offered an incisive review of literature of as many as six authors based on their individual studies and research on recruitment and selection processes.

It give me an honour to work in the PHOENIXX SOLUTIONS in which I have being worked as HR trainee executive. As a trainee, I have been given various task ranges from business development to candidate selection. As a part of candidate selection process I worked in a particular framework(mainly for BPO sector) as formulated by the concerned organization. I used to take help from some websites like naukiri and monster.com for getting the information of the candidate. I took telephonic interview, at first ,for checking there communication skills as desired and further call them on for face to face interviews with the HR of the companies. Under my training period I also came to know how to handle the candidates and how to deal with the companies to satify their demands. I promoted the brand value of the organization through the regular follow-up of the clients and explained the profile and what did my organization achieve in past years.

DESCRIPTION OF LIVE EXPERIENCES

 Each client is unique and all are not alike in all respects. each individual have a separate set of personal characteristic.

 Before going in front of the client we must have the detailed knowledge of product, company profile, market price and competitors.

 In each meeting ,we must have on time.

Finally we have to make the good relation to the company as well as personal for the good network in the society

From this job I got the experience in the field of recruitment. I was trained to under to understand the behaviors of the candidates & other competing firms. I also got to know about business development and how to generate leads. It makes me more responsible towards my job. I got some good tips regarding leadership quality from my senior colleagues. I got to the know about the pattern of the ITES sector scripts-how they move in correspondence to the market movement and also the economy.

In BPOs there are two main divisions:

1.Domestic

2.International

Role and responsibilities

 The first task was to understand the various job profiles for which recruitment is to be done.

 The next step was to explore the various job portals to search for suitable candidates for the job profile.

 Once the search criteria were put, candidates go through a telephonic interview to validate the information mentioned in their resume.

 A candidates matching the desired profile was lined for the first round of face to face interview in their respective cities.

 Firstly the candidates had filled up the personal data form (pdf).

 Then the candidates INTERVIEW EVALUATION SHEET which is provided by interviewer was crossed checked by the HR team. If they think that the candidates was good to hire or not.

 When a candidates clears his first round, he is then made to take an online aptitude test. We created the online aptitude test .It is the HR department, which has the exclusive rights to assign test, codes to the candidates. Each code was unique and could be used only once by a candidates.

 I was involved in assigning codes administering the test.

 Once the candidate completed his first assessment, his scores were checked. If he cleared his cut-off he was given another test.

 I had the responsibility to make sure that candidates complete all formalities and had to regularly follow up with them.

KEY LEARNINGS

 How to use job portals like Naukri, Monster, Timesjob and Shine.

 To establish a match between job description and job specification.

 To communicate a job opening to a candidate in the right way so as to attract the desired candidate.

 To understand a candidates requirement of the job for a long term or a short term bas

CHAPTER 3. RESEARCH METHODOLOGY

Research is a method through which we get best and suitable suggestion for growth and development of organization. Our objective is to analyze “comparative study between

PHOENIXX SOLUTIONS with other consultancies”. While searching for the company profile it

was hard to get the accurate details, but was possible though the help of seniors and questioners.

STATEMENT OF RESEARCH OBJECTIVE

The main aim of research is to find out the truth which is hidden and which has not been discovered as yet.

1 To study the corporate profile with some light on their future plans. 2 To study in detail about the charges existing in the market.

3 To identify the shortcomings and strength of PHOENIXX SOLUTIONS.

4 To conduct an analysis on satisfaction from services of PHOENIXX SOLUTIONS. 5 To outline the suggestions for growth and development of company .

6 To know about the effectiveness of employee of PHOENIXX SOLUTIONS To gain the familiarity with the other organization .

7 Area in which our company leads in the market and area where we lack.

RESEARCH DESIGN AND METHODOLOGY

Collection of data:

1 Primary Sources 2 Secondary Source

b) Questionnaire.

c) Detail given by our senior.

Secondary data

Research Problem

Recruitment forms the first stage in the process which continues with selection. Various sources of recruitment which is used by the organization is able to attract the best applicant but sometimes due to wrong selection of recruitment sources and personal biases which create liability for organization.

Problem Formulation

“The study of Recruitment & Selection process at PHOENIXX

SOLUTIONS

Research Objectives

 To know the effectiveness of recruitment & selection at PHOENIXX from employees’ perception.

 To see its linkage with other HR functions.  To know the sources of Recruitment & Selection.  To suggest ways to make it more effective.

Research Design

The design is descriptive in nature. It is concerned with describing the characteristics of a particular individual or a group.

SOURCES OF DATA

With the help of primary and secondary sources to achieve the objective of my project, which includes: PRIMARY SOURCE  QUESTIONNAIRE  INTERVIEWS  OBSERVATIONS SECONDARY SOURCE  Profile of Sahara  Magazines

 Manuals

 Brochures

SAMPLE DESIGN

In this study convenient sampling has been done for all the employees of PHOENIXX.

Sample size - 40 employees

Sample Unit :- E0 to E8

Geographical Location :- DELHI, PHOENIXX,Telbhavan

.

Method Tools of Research

Knowledge of the procedures involved in research is perhaps the most important tool. Without this, the best computers and most reliable tests would be useless. For the researcher, there are several important areas that must be mastered, including the knowledge of scientific methods, the use of statistical software, the practical application of statistical formulas, knowledge of writing style, and the ability to gather information and critically review the research of others. For this reason, this text would be considered a method tool in that it is designed to provide knowledge of research methods and assist you in the process of performing and evaluating the research of others.

LIMITATION OF THE

STUDY- The problem discussed was more is technical terms, thus was difficult to comprehend.

 Views of only few members could be included because of time limitation.

 Collecting data properly from employees become difficulty due to the time constraint.

 Busy schedule of the employees also effected to some extent.

DESCRIPTION OF THE WORK AREA

Layout of the office

The layout of the finance department is approximate “145 square yards” in size in which consists 48 chairs, 36 computers connected with multiple servers, 13 printers, three photocopy machines, eight personal cabins for top workers, fully air-conditioner, and well furnished wooden office tables and etc.

 Location of stores: The stores in a plant must be located in such a place from

where raw materials, tools, equipment and other materials may be supplied to the department concerned, without and delay.

 Facilities supervision and control:- The position of workers must be arranged in

such a way that if facilities supervision, coordination and control.

 Provision of safety:- There must be complete safety for workers engaged on a

machine. Necessary instructions must be given to them about the risks involved while working in certain type of machines. Provisions of factories Act must be followed in real spirit

 Co-ordination and integration:- There must be an effective co-ordination and

integration among men, materials and machines so that their maximum could become a possibility.

A decision to manufacture some new (or) modified products may necessitate a reorganization of the existing plant (or) provision of additional facilities. The reasons for change are due to variation in the level of demand, change in the location of product markets, change in style and obsolescence (or) failure of exiting equipment.

Description of the department

 Department of Training = Finance Department.  Total number of employees = 38 employees.

 Software used = BuzyWin (accounts software), MS office, Internet with Wi-Fi facility.

 No. of Computers = 36

 Formal relationships between employees in an every work field  Fully air conditioner.

Job Description

Description of work: - Trainee (Finance Department)

Job Purpose: Supports accounting operations by maintain records; filing documents;

EXPERIENCE GAINED AND PROBLEMS FACED

What did you learn and how will this experience help you in the

future?

The two months have taught me that it is very important to make use of every moment you get at prestigious places, may it be at the college or the places where you work. These moments are for a very short period of time. I have made this my philosophy of life after my internship experience. Summer training provides great opportunities .To summarize my internship experience in three words, it was veritably ‘sweet hard work’ by all standards. The summer internship experience has bolstered my desire to pursue a career in human resource. I learned how to do performance appraisal, how the processing of HR department is done. This experience will be very helpful when I will be working with an organization as a human resource management.

What were the problems faced and what was lacking?

The problems I faced during training were that as I was a trainee in the office, the seniors did not show much interest in giving me knowledge about the company and my work. The research was confined to the manesar (Gurgaon) only. I was given to do more paper work. Sometimes I faced problems in interacting with the people of other departments. My seniors did not give me much time and my table was not equipped with the computer and to do my work I used go to other places for doing my work; otherwise I would have learned more things.

How could you have done your work better?

I could have done better during training if I would have given some more time for training. If the training would have been for some more days, then I would have learned some more things about financial position of the company, I know my seniors were busy in handling their work but I were given some more attention by the ,then I would have made my training more effective.

I could have gained more experience if I was given an opportunity to participate in the meetings of the company and also learn more about the different processes of fund allocation and profit management, and working capital management. It could have been better if was given more time and money. And even the people in the company were not willing to reveal their secrets.

CHAPTER-4

DATA ANALYSIS AND INTREPRETATION

 Research simply means a search for facts – answers to questions and solutions to problems. It is a purposive investigation. It is an organized enquiry.

 In other words research means search for knowledge and research

methodology is a systematic way to solve he research problem. It is a science of study how the search is actually done.

 It presents the source of data collection, the sampling procedures and tools of investigation and limitations of the study. My research project has a specified framework for collecting the data in an effective manner. The main significance of the project is to understand the impact of debt on the liquidity and profitability of the firm.

MANAGERIAL USEFULNESS OF THE STUDY

 The effectiveness of the debt can be established through this study.

 This study helps to understand, analyze& apply the core concepts of financial ratios in an organization.

 Managers would be able to identify the need of debts for company.

OBJECTIVES OF THE STUDY

The first & foremost step in any research work is to identify the problems or objectives on which the researcher has to work on. There are two types of objectives met in this study, as explained below:

 To study the impact of debt (bifercated into secured and unsecured debt) raised during 2010-2013 on “profitability of the firm”.

 To study the impact of debt (bifercated into secured and unsecured debt) raised during 2010-2013 on “liquidity of the firm”.

Secondary objectives :

 To study the financial position of the company.

 To study the various ratios of the company in the year 2010 to 2013.

Classification of Working Capital

Working capital may be classified in to ways:

 On the basis of concept.

 On the basis of time.

On the basis of concept working capital can be classified as gross working capital and net working capital. On the basis of time, working capital may be classified as:

 Permanent or fixed working capital.

Amount of Working

Capital Temporary capital

Permanent Capital

Time

Permanent Or Fixed Working Capital

Permanent or fixed working capital is minimum amount which is required to ensure effective utilization of fixed facilities and for maintaining the circulation of current assets. Every firm has to maintain a minimum level of raw material, work- in-process, finished goods and cash balance. This minimum level of current assets is called permanent or fixed working capital as this part of working is permanently blocked in current assets. As the business grow the requirements of working capital also increases due to increase in current assets.

TEMPORARY OR VARIABLE WORKING CAPITAL

Temporary or variable working capital is the amount of working capital which is required to meet the seasonal demands and some special exigencies. Variable working capital can further be classified as seasonal working capital and special working capital. The capital required to meet the seasonal need of the enterprise is called seasonal working capital. Special working capital is that part of working capital which is required to meet special exigencies such as launching of extensive marketing for conducting research, etc. Temporary working capital differs from permanent working capital in the sense that is required for short periods and cannot be permanently employed gainfully in the b

 SOLVENCY OF THE BUSINESS:

Adequate working capital helps in maintaining the solvency of the business by providing uninterrupted of

production.  Goodwill:

Sufficient amount of working capital enables a firm to make prompt payments and makes and maintain the goodwill.

 Easy loans:

Adequate working capital leads to high solvency and credit standing can arrange loans from banks and other on easy and favorable terms.

 Cash Discounts:

Adequate working capital also enables a concern to avail cash discounts on the purchases and hence reduces cost.

 Regular Supply of Raw Material:

Sufficient working capital ensures regular supply of raw material and continuous production.

 Regular Payment Of Salaries, Wages And Other Day TO Day Commitments:

It leads to the satisfaction of the employees and raises the morale of its employees, increases their efficiency, reduces wastage and costs and enhances production and profits.

 Ability to Face Crises

 A concern can face the situation during the depression.

FACTORS DETERMINING THE WORKING CAPITAL REQUIREMENTS 1. Nature of business:

The requirements of working is very limited in public utility undertakings such as electricity, water supply and railways because they offer cash sale only and supply services not products, and no funds are tied up in inventories and receivables. On the other hand the trading and financial firms requires less investment in fixed assets but have to invest large amt. of working capital along with fixed investments.

2. Size of the business:

Greater the size of the business, greater is the requirement of working capital.

3. Production policy:

If the policy is to keep production steady by accumulating inventories it will require higher working capital.

4. Length of production cycle:

The longer the manufacturing time the raw material and other supplies have to be carried for a longer in the process with progressive increment of labor and service costs before the final product is obtained. So working capital is directly proportional to the length of the manufacturing process.

Sources of working capital

The company can choose to finance its current assets by 1. Long term sources

2. Short term sources 3. A combination of them.

Long term sources of permanent working capital include equity and preference

and financial institution. The long term working capital needs should meet through long term means of financing. Financing through long term means provides stability, reduces risk or payment and increases liquidity of the business concern. Various types of long term sources of working capital are summarized as follow:

1. Issue of shares:

It is the primary and most important sources of regular or permanent working capital. Issuing equity shares as it does not create and burden on the income of the concern. Nor the concern is obliged to refund capital should preferably raise permanent working capital.

2. Retained earnings:

Retain earning accumulated profits are a permanent sources of regular working capital. It is regular and cheapest. It creates not charge on future profits of the enterprises.

3. Issue of debentures:

It crates a fixed charge on future earnings of the company. Company is obliged to pay interest. Management should make wise choice in procuring funds by issue of debentures.

Short term sources of temporary working capital

Temporary working capital is required to meet the day to day business expenditures. The variable working capital would finance from short term sources of funds. And only the period needed. It has the benefits of, low cost and establishes closer relationships with banker.

Some sources of temporary working capital are given below:

1. Commercial bank:

A commercial bank constitutes significant sources for short term or temporary working capital. This will be in the form of short term loans, cash credit, and overdraft and though discounting the bills of exchanges.

2. Public deposits:

Most of the companies in recent years depend on this source to meet their short term working capital requirements ranging fro six month to three years.

Trade credit, business credit papers and customer credit are other sources of short term working capital. Credit from suppliers, advances from customers, bills of exchanges, etc helps to raise temporary working capital

4. Reserves and other funds:

Various funds of the company like depreciation fund. Provision for tax and other provisions kept with the company can be used as temporary working capital. The company should meet its working capital needs through both long term and short term funds. It will be appropriate to meet at least 2/3 of the permanent working capital equipments form long term sources, whereas the variables working capital should be financed from short term sources. The working capital financing mix should be designed in such a way that the overall cost of working capital is the lowest, and the funds are available on time and for the period they are really required.

SOURCES OF ADDITIONAL WORKING CAPITAL

Sources of additional working capital include the following-1. Existing cash reserves

2. Profits (when you secure it as cash) 3. Payables (credit from suppliers) 4. New equity or loans from shareholder 5. Bank overdrafts line of credit

6. Long term loans

If we have insufficient working capital and try to increase sales, we can easily over stretch the financial resources of the business. This is called overtrading. Early warning signs include

1. Pressure on existing cash

2. Exceptional cash generating activities. Offering high discounts for clear cash payment

3. Bank overdraft exceeds authorized limit 4. Seeking greater overdrafts or lines of credit 5. Part paying suppliers or there creditor.

6. Management pre occupation with surviving rather than managing.

Different Aspects of Working Capital Management

 Management of Inventory

 Management of Receivables/Debtors  Management of Cash

 Management of Payables/Creditors

Inventories constitute the most significant part of current assets of a large majority of companies. On an average, inventories are approximately 60% of current assets. Because of large size, it requires a considerable amount of fund. The inventory means and includes the goods and services being sold by the firm and the raw material or other components being used in the manufacturing of such goods and services.

Nature of Inventory:

The common type of inventories for most of the business firms may be classified as raw-material, work-in-progress, finished goods.

Raw material:

It is basic inputs that are converted into finished products through the manufacturing process. Raw materials inventories are those units which have been purchased and stored for future productions.

Work–in–process:

Work-in-process is semi-manufactured products. They represent products that need more work before them become finished products for sale.

Finished goods:

These are completely manufactured products which areready for sale. Stocks of raw materials and work-in-process facilitate production, while stock of finished goods is required for smooth marketing operations. Thus inventories serve as a link between the production and consumption of goods.The levels of three kinds of inventories for a firm depend on the nature of business. A manufacturing firm will have substantially high levels of all the three kinds of inventories. While retail or wholesale firm will have a very high level of finished goods inventories and no raw material and work-in-process inventories.

So operating cycle can be known as

Sales 51 Raw Material Work in Progress Cash Collection from Finished Goods

Need to hold inventories

Maintaining inventories involves trying up of the company’s funds and incurrence of storage and holding costs. There are three general motives for holding

inventories:

Transactions Motive:

IT emphasizes the need to maintain inventories to facilitate smooth production and sales operation.

Precautionary Motive:

It necessitates holding of inventories to guard against the risk of unpredictable changes in demand and supply forces and other factors.

Speculative Motive:

It influences the decision to increase or reduce inventory levels to take advantage of price fluctuations.

Management of Receivables/Debtors

The Receivables (including the debtors and the bills) constitute a significant portion of the working capital. The receivables emerge whenever goods are sold on credit and payments are deferred by customers. A promise is made by the customer to pay cash within a specified period. The customers from whom receivable or book debts have to