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EXECUTIVE SUMMARY
In todays rapidly changing business environment, organizations have to
respond quickly to requirements for people. The Financial market has been
witnessing growth which is manifold for last few years. Many private players
have entered the economy thereby increasing the level of competition. In the
competitive scenario it has become a challenge for each company to adopt
practices that would help the organization stand out in the market. The
competitiveness of a company of an organization is measured through the
quality of products and services offered to customers that are unique from
others. Thus the best services offered to the consumers are result of the genius
brains working behind them. Human Resource in this regard has become an
important function in any organization. All practices of marketing and finances
can be easily emulated but the capability, the skills and talent of a person cannot
be emulated. Hence, it is important to have a well-defined recruitment policy in
place, which can be executed effectively to get the best fits for the vacant
positions. Selecting the wrong candidate or rejecting the right candidate could
turn out to be costly mistakes for the organization. Therefore a recruitment
practice in an organization must be effective and efficient in attracting the best
manpower.
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About Hindustan Tyres Ltd.
"Hindustan Cycles & Tubes Limited" is one of the most
reliable name in the field of Tyres and Tubes. The company wasestablished in 1968. Today, it has become one of the leading
manufacturer of Bicycle/ Automobile Tyres & Tubes. During it's
long existence it has created it's own niche both in the domestic
arena as well as in the export market because of its commitment
and adherence to high quality standards.
Today the company, apart from having a marked presence in
India is also exporting it's products to Latin America, Africa,
Middle Eastern, South Asian & Arab countries. The company
ensures high international quality of it's products by
implementing hi-tech quality checks right from the sourcing of
raw materials till the production and shipment of the finished
products.
The company has highly skilled and dedicated staff working under
the guidance of our respected Chairman Mr. B.C. Maini. The
Research & Development Department of the company has the
most latest equipments that ensures only the best quality of raw
material is to be used and the best quality of tyres and tubes areproduced. We are one of the very few distinguished companies
which are ISO 9001 certified in the Tyre Industry. Today
Hindustan tyres has carved out a space in the highly competitive
market through its thrust on providing quality products at
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affordable prices. The testimony to this fact lies in supply of our
tyres to corporate giants like Hero, Atlas, Avon and many other
payers both in domestic as well as in International arena.
The company made its foray into the Exports in the year 1991
which also saw policy of Liberalization & Globalization being
adopted by our government. The company has a full fledged
Export Department which is catering to the requirements of the
global market. The companys mantra "Think Global Act Local"
has yielded rich dividends in garnering a strong share in Bicycle/Automobile Tyres in the International Market.
Country Code Country CodeAFGHANISTAN
ARGENTINA
BANGLADESH
BAHRAIN
BOLIVIA
BRAZILBURKINA FASO
CHILE
COLOMBIA
EGYPT
FRANCE
GHANA
HONDURAS
HUNGARY
INDONESIA
IRAN
ITALY
IVORY COAST
JORDANKENYA
KUWAIT
LEBANON
MALAWI
MALDIVES
AF
AR
BDBHBO
BRBFGLGO
EGFRGH
HN
HUIDIR
ITGI
JOKEKWLB
MW
MV
MALI
MEXICO
MOROCCO
NIGERIA
PAKISTAN
PANAMAPARAGUAY
PORTUGAL
SAUDI ARABIA SENEGAL
SOUTH AFRICA SPAIN
SRI LANKA
SWEDEN
SYRIA
TANZANIA
TRINIDAD, TOBAGO
TUNISIA
TURKEY
UAE
UGANDAUNITED STATE
VENEZUELA ZIMBABWE
ML
MX
MANGPA
PAPYPTSA
SNLKSE
SY
TZTTTN
TRAE
UGUSVEZW
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AHMEDABAD
1949/2,First Floor,Opp. Purohit Hotel,
Khadia Char RastaAhmedabad 380 001Phone: 0792120898
CHENNAI
No.2 1st FloorKendappa Chetty Street
Phone No. 044-5244450
KOLKATA
R.No. 11 A, 9/12, "E" Block,11rd Floor, Lal Bazar Street,
Mercantile Building,Kolkata 700001Phone: 033 2435129, 2212129
PUNE
995, 2nd Floor,Raviwar Peth,
Pune - 411002Phone:020 4474983
AGRA
6/162, Pathak Surajbhan,Bellanganj
Phone No. 0562-622786
New DELHI
7/3, Adarsh NurseryShed No.16 Kirari Road,
Near Railway CrossingPhone No. 011-5479251
LUCKNOW
H-11-95,Sector-DL.D.A. Colony, KanpurRoad
Lucknow 226012Phone: 0522 432524
RANCHI
1231-D, Sahu Colony,Jalan Road,Upper BazarRanchi 834001
Phone: 0651 315537
ALLAHABAD
4/2 Bai-Ka-BaghNear Post officeKeyclganj
Allahabad 211003Phone: 0532 417086
GUWAHATI
A.k Azad RoadBeside Lords EnglishSchoolRehabari,
Guwahati 781008Phone 0361-513025
LUDHIANA
Jaspal Building,G.T Road Miller Ganj,Near Vishawkarma Chowkludhiana 141003
Phone 0161 534829
RAIPUR
327-328,Ward No4,Purana Mangal Bazar,Gudhiyari,Raipur-492009Phone: 0771 529735
AMBALA CANTT
11-K, Guru NanakpuraKuldeep Nagar,Ambala Cantt 133001
Phone 0171 2612193
GORAKHPUR
C 127/10&c 127/15,Dilezakpur,jatashnkerChowk,Gorakhpur 273001
Phone 0551 340840
MEERUT
6 JAWALAPURI,Lord Krishna market,opp. Transport Nagar,
delhi road Meerut-2Phone 0121 401473
ROHTAK
Plot No. 51-52I.D.C Hissar Road,
Rohtak 124001Phone 01262 78434
BANGALORE
Municipal No. 126/07/025th
Cross, Near Kalasipalyam
Extn. LayoutBangalore 560002Phone 080 2711446
INDORE
Plot No 21,Timber Scheme No 31,
Navlakha,Indore 451001Phone 0731 466284
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MUZAFFARPUR
B.B Ghosh LaneMotijheel,Muzaffrpur - 842001
Phone 0621 247416
SILIGURI
C/o Nisidh Bhosh Rai, 607/1Deshbandhupara Behindindoor stadium
Ward No.29 Post Stadium
BAEREILLY
6.A Hajiapur Pilibhit RoadNear Suhag Wedding HallBaereilly - 243005
Phone 0361-531856
Jaipur
645, 2ND Floor,kishore kunj,kishan Ploe Bazar,
jaipur - 302001Ph.no. 0141-2316909
MADURAI
2-F, Muthiah ChettiarPerulkar Layout Street,Sellur,
MaduariPhone: 0452-653393
VARANASI
C- 27/170, A-2, jagatgani,Varanasi- 221002Phone : 0542 - 204381
CHANDIGARH
8,Industries Area,Phase-1
Near new Kholi
Transport Co.Chandigarh - 160002
Phone: 0172-641703
KANPUR
109/375, R.K Nagar,G.T Road, Kanpur- 208012
Phone 0512-54407,5417280
NAGPUR
C/O Dr. Mishra's House,Near St Xavier School,
6-Parulkar Layout,
Near Ajni squareNagpur - 440015
Phone : 1712-240454
VIJAYWADA
D. No. 7-3-10, Beside
Marupilli Chitti School,Raghava Ready RoadMahanthipuram,
KothapetVijayawada - 520001
Phone : 0866-563729
CUTTACK
Plot No. 925, Jhanjir
Mangala,(Bastiz Colony)P.O Telanga Bazar
Cuttack - 753009Phone: 0671-617843
KASHIPUR
Opp. Dr single nursing Home,
C/O Vinay Kumar Vijay KumarMata mandhir Road,kashipur - 244713
Phone: 05947-72689
PATNA
New Area, KadamKuan,Anugrah Narian Road,Patna: 800003
Phone: 0612-685138
JABALPUR
1688/1 Behind Patel IceCream, Model Road, (L.B.Shastri Marg) Napier TownPhone No. 0761-564731
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PRODUCTS
Bicycle Tyres Automobile Tyers Agriculture Tyres
Bicycle Tubes & TubesValvesBicycle Components
Bicycle Tubes Box &
Packing & TubesValves
http://www.hindustantyres.com/tubes.htmhttp://www.hindustantyres.com/agriculturestyres.htmhttp://www.hindustantyres.com/four&twowheels.htmhttp://www.hindustantyres.com/bicyclestyres.htmhttp://www.hindustantyres.com/bicycles-tubes-box-pouch.htmhttp://www.hindustantyres.com/bicyclesparts.htmhttp://www.hindustantyres.com/tubes.htmhttp://www.hindustantyres.com/agriculturestyres.htmhttp://www.hindustantyres.com/four&twowheels.htmhttp://www.hindustantyres.com/bicyclestyres.htmhttp://www.hindustantyres.com/bicycles-tubes-box-pouch.htmhttp://www.hindustantyres.com/bicyclesparts.htmhttp://www.hindustantyres.com/tubes.htmhttp://www.hindustantyres.com/agriculturestyres.htmhttp://www.hindustantyres.com/four&twowheels.htmhttp://www.hindustantyres.com/bicyclestyres.htmhttp://www.hindustantyres.com/bicycles-tubes-box-pouch.htmhttp://www.hindustantyres.com/bicyclesparts.htmhttp://www.hindustantyres.com/tubes.htmhttp://www.hindustantyres.com/agriculturestyres.htmhttp://www.hindustantyres.com/four&twowheels.htmhttp://www.hindustantyres.com/bicyclestyres.htmhttp://www.hindustantyres.com/bicycles-tubes-box-pouch.htmhttp://www.hindustantyres.com/bicyclesparts.htmhttp://www.hindustantyres.com/tubes.htmhttp://www.hindustantyres.com/agriculturestyres.htmhttp://www.hindustantyres.com/four&twowheels.htmhttp://www.hindustantyres.com/bicyclestyres.htmhttp://www.hindustantyres.com/bicycles-tubes-box-pouch.htmhttp://www.hindustantyres.com/bicyclesparts.htmhttp://www.hindustantyres.com/tubes.htmhttp://www.hindustantyres.com/agriculturestyres.htmhttp://www.hindustantyres.com/four&twowheels.htmhttp://www.hindustantyres.com/bicyclestyres.htmhttp://www.hindustantyres.com/bicycles-tubes-box-pouch.htmhttp://www.hindustantyres.com/bicyclesparts.htm -
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A REVIEW
Hindustan Tyres Pvt. Ltd. vs Collector Of CentralExcise
1. Hindustan Tyres Pvt. Ltd., Bombay has filed an appeal being
aggrieved from order-in-appeal No. M-1350/B-I/381/85, dated
18.7.1975 passed by the Collector of Central Excise (Appeals), Bombay.
2. Briefly the facts of the case are that the appellant is holding L-4
licence in respect of Tariff Item 68 and are manufacturing Camel Back
falling under T.I. 16A(ii) [Should read T.I. 16A(2)]. The appellant isnot selling camel back but utilising for the retreading of old tyres and
have been paying duty on the said item on the assessable value on the
basis of costing. Accordingly, price list filed by them in proforma VIB
as laid down under Rule 6 of Central Excise Valuation Rules, 1975.
Alongwith the price list the appellant was furnishing the details of
costing, duly certified by their auditor. However, since the company'sbalance sheet for the year was not ready at the time of filing of price
lists, the company had been showing a notional margin of profit of 5%
or 10% as the case may be, over and above the cost of production. The
said price lists had been approved provisionally under Rule 9B of
Central Excise Rules pending verification of the costing details
furnished by the company as also verification of the company's grossprofit as reflected in their balance sheet for the relevant period. The
learned Assistant Collector had observed that the value of camel back
included the following expenses :
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(1) expenses incurred on strip cutting;
(2) staff salaries;
(3) all other overhead expenses as shown in Annexures A, B and C to
the adjudication order apart from the expenses already taken into
consideration by the company.
The appellant was accordingly directed to include such expenses while
working out the cost of production of camel back and file revised price
lists. The price lists Nos. 37/82, 306/82, 1A/83-84 and 339/84-85were also approved accordingly. The appellant had contended that
expenses incurred towards labour for cutting camel back into strips,
rent payable on the premises used for the manufacturing of sheets and
expenses incurred towards administration were not included in the
price list under reference submitted from time to time and approved
provisionally under Rule 9B and the duty was paid on camel backremoved for captive consumption in sheet form and not after they
were cut into strips. Camel back in strip form after debiting duty is cut
into strip to match the size of tyre to be treated. The appellant had
contended that the expenses incurred by the appellant were not to be
added back. The learned Assistant Collector did not accept the defence
of the appellants and had held that expenses incurred on (1) stripcutting; (2) staff salaries; and (3) all other overhead expenses as
shown in Annexures A, B and C to the adjudication order apart from
the expenses already taken into consideration by the company had to
be added back for working out the cost of production of camel back
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and file revised price list accordingly. Being aggrieved from the
aforesaid order the appellant had filed an appeal to the Collector of
Central Excise (Appeals). Before the Ld. Collector of Central Excise
(Appeals) the appellant had contended that the cost of production is to
be restricted to the following elements/ ingredients related to the
manufacturing excisable goods under costing:
(a) Cost of raw materials;
(b) Conversion cost upto the stage of excisability of the product;
(c) Manufacturing overheads based on conversion cost;
(d) Administration overheads based on manufacturing overheads.
The learned Collector of Central Excise (Appeals) had observed that
the Assistant Collector had rightly included the expenses incurred for
cutting sheets of Camel Back into strips, the rent payable for the area
occupied for such cutting, etc., in the cost of production of camel back.
He had also confirmed the findings of the Assistant Collector as to the
addition of administrative expenses. He had confirmed the findings of
the Assistant Collector and had rejected the appeal. Being aggrieved
from the aforesaid order the appellant has come in appeal before the
Tribunal.
3. Shri V. Lakshmikumaran, the learned Advocate, has appeared on
behalf of the appellant. He has reiterated the contentions made before
the lower authorities. He has stated that the cutting charges from
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sheet to strip and labour charges are not to be included in the
assessable value. He states that the appellant had duly furnished the
details as to the cost of production of camel back duly certified by their
auditor and arriving at assessable value after adding the cost of
production by a notional profit of 5 to 7% as the case may be. The
learned Assistant Collector had raised the cost of production to a
higher figure. Shri Lakshmikumaran has referred to a judgment of the
Hon'ble Supreme Court in the case ofP.C. Cheriyan v. Mst. Barfi Devi
reported in 1979 ELT (J-593) where the Hon'ble Supreme Court had
held that retreading of old tyres does not bring into existence a
commercially distinct or different entity as the old tyre retains its
original character or identity as a tyre. Nor does it completely
transform it into another commercial article although it improves its
performance and serviceability as a tyre. So from retreading no new or
commericaily distinct article emerges and, therefore, 'retreading is not
process of manufacture'. Shri Lakshmikumaran further states that
cutting expenses from sheet to strip are not to be added for computing
the cost of camel back. The value of the waste of the cutting sheet has
to be excluded from the manufacturing cost. Shri Lakshmikumaran
has pleaded for the acceptance of the appeal.
4. Shri P.K. Ajwani, Ld. S.D.R., who has appeared on behalf of therespondent, states that the appellant did not take this plea earlier on
account of deduction of the cost of waste of cutting sheets. It is a new
issue and the same should not be permitted to be raised at this stage
and in the price list the appellant has only mentioned the price of the
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camel back. Shri Ajwani has referred to the order-in-original and Rule
6(b) of the Central Excise (Valuation) Rules, 1975 where it is provided
that where excisable goods are not sold by the assessee but are used or
consumed by him or on his behalf in the production or manufacture of
other articles, the value shall be based :-
(i) on the value of the comparable goods produced or manufactured by
the assessee or by any other assessee:
Provided that in determining the value under this sub-clause the
proper officer shall make such adjustments as appear to him
reasonable, taking into consideration all relevant factors and, in
particular, the difference, if any, in the material characteristics of the
goods to be assessed and of the comparable goods;
(ii) If the value cannot be determined under the Sub-clause (i), on the
cost of production or manufacture, including profits, if any, which theassessee would have normally earned on the sale of such goods.
5. Shri Lakshmikumaran in reply states that the overhead expenses are
not to be added in the cost of production and has reiterated his earlier
arguments. He has pleaded for the acceptance of the appeal.
6. We have heard both the sides and have gone through the facts and
circumstances of the case. It is admitted fact that the appellant
manufactures camel back which is used for retreading of tyres. Came,
back so manufactured by the appellant is captively consumed by the
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appellant and the valuation for the purpose of assessment has to be
done on the basis of provisions of Section 4 of the Central Excises and
Salt Act, 1944 read with Rule 6(b) of the Central Excise (Valuation)
Rules, 1975. For proper appreciation of the legal position Section
4(l)(b) of Central Excises and Salt Act, 1944 and Rule 6(b) of the
Central Excise (Valuation) Rules, 1975 are reproduced below :-
"Section 4(1 )(b)
4(1)(b) Where under this Act, the duty of excise is chargeable on any
excisable goods with reference to value, such value shall, subject to the
other provisions of this section, be deemed to be - XXX XXX XXX
(b) where the normal price of such goods is not ascertainable for the
reason that such goods are not sold or for any other reason, the
nearest ascertainable equivalent thereof determined in such manner
as may be prescribed.
Rule 6(b)
Where the excisable goods are not sold by the assessee but are used or
consumed by him or on his behalf in the production or manufacture of
other articles, the values shall be based -
(i) On the value of the comparable goods produced or manufactured
by the assessee or by any other assessee :
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Provided that in determining the value under this sub-clause the
proper officer shall make 'such adjustments as appear to him
reasonable taking into consideration all relevant factors and, in
particular, the difference, if any, in the material characteristics of the
goods to be assessed and of the comparable goods;
(ii) If the value cannot be determined under the Sub-clause (i), on the
cost of production or manufacture, including profits, if any, which the
assessee would have normally earned on the sale of such goods";
A simple perusal of Section 4 and Rule 6(b) of the Central Excise Rules
clearly indicates that the normal profits have to be added to the cost of
production or manufacture. Hon'ble Supreme Court in the case of
Assistant Collector of Central Excise and Ors. v. Madras Rubber
Factory Ltd. and Ors. reported in 1987 (27) ELT 553 (SC) had held
that interest on finished goods until they are sold and delivered at the
factory gate is not deductible. The Hon'ble Supreme Court had based
the judgment on "an earlier judgment in the case of Union of India
and Ors. v. Bombay Tyre International Ltd. and Ors.etc. reported in
1983 (14) ELT 1896. Paras 4 and 14 from the judgment of. the Hon'ble
Supreme Court in the case ofAssistant Collector of Central Excise and
Ors. v. Madras Rubber Factory Ltd. and Ors. reported in 1987 (27)
ELT 553 (SC) are reproduced below :-
Para 4
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"The appeals further also raise the issue of whether the price to the
Defence Department Ex-factory gate (ex-factory is to be considered as
the wholesale cash price under old Section 4 as this was disallowed by
the Assistant Collector, and further the issue as to the method of
computation of assessable value where the selling price is a cu-duty
price. This issue involves the considerations as to how Excise Duty has
to be deducted, whether after deducting permissible deductions or
otherwise. We propose to deal with the issues as follows. For the
purpose of this judgment we are not repeating and setting out the text
of the unarnended Section 4 and the amended Section 4 as the same
are exensively quoted in our judgment in Union of India v. Bombay
Tyres International Ltd. [1983 (l4) ELT 1896]. Recapitulating our
judgment in Union of India & Ors v. Bombay Tyres International Ltd.
(Supra) we held that -
"broadly speaking both the old Section 4(a) and the new Section4(l)(a) speak of the price for sale in the course of wholesale trade of an
article for delivery at the time and place of removal, namely, the
factory gate. Where the price contemplated under old Section 4(a) or
under the new Section 4(l)(a) is not ascertainable, the price is
determined under the old Section 4(b) or the new Section 4(l)(b).
Now, the price of an article is related to its value (using this term in ageneral sense), and into that value are poured several components,
including those which have enriched its value and given to the article
its marketability in the trade. Therefore, the expenses incurred on
account of the several factors which have contributed to its value upto
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the, date of sale, which apparently would be the date of delivery, are
liable to be included. Consequently, where the sale is effected at the
factory gate, expenses incurred by the assessee upto the date of
delivery on account of storage charges, outward handling charges,
interest on inventories (stocks carried by the manufacturer after
clearance), charges for other services after delivery to the buyer,
namely after sales service and marketing and selling organisations
expenses including advertisement expenses cannot be deducted. It will
be noted that advertisement expenses, marketing and selling
organisation expenses and after sales service promote the
marketability of the whole and enter its value in the trade. Where the
sale in the course of wholesale trade is effected by the assessee through
its sales organisation at a place or places outside the factory gate, the
expenses incurred by the assessee up to the date of delivery under the
aforesaid heads cannot, on the same grounds, be deducted. But the
assessee will be entitled to a deduction on account of the cost of
transportation of the excisable article from the factory gate to the
places where it is sold. The cost of transportation will include the cost
of insurance on the freight for transportation of the goods from the
factory gate to the place or places of delivery."
Interest on finished goods from the date of the stocks are cleared tillthe date of the sale was disallowed by the Assistant Collector,
Kottayarn. This head has again been urged for our consideration as a
proper deduction for determination of the assessable value. As quoted
in our judgment in Union of India and Ors. v. Bombay Tyres
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International Ltd. (supra), we have held that expenses incurred on
account of several factors which have contributed to its value upto the
date of sale which apparently would be the date of delivery at the
factory gate are liable to be included. The interest on the finished
goods until the goods are sold and delivered at the factory gate would
therefore necessarily according to the judgment in Bombay Tyres
International case (supra) have to be included but interest on finished
goods from the date of delivery at the factory gate upto the date of
delivery ' from the sales depot would be an expense incurred after the
date of removal from the factory gate and it would therefore, according
to the judgment in Bombay Tyre International case (supra) not be
liable to be included since it would add to the value of the goods after
the date of removal from the factory gate. We would, therefore, have to
allow the claim of MRF Ltd. as above."
In the present matter before us, the appellant has captively consumedthe camel back and the expenses incurred for the manufacture of the
same with reasonable profit have to be added. The Learned advocate
had argued that there were some wastes while cutting the sheet into
strips and Shri Ajwani, SDR, had objected to the raising of this plea for
the first time before the Tribunal. Undoubtedly, a fresh plea can
always be taken before the Tribunal provided there is material alreadyon record. We do not find any force in the argument of the learned
SDR that this plea cannot be raised at this stage. The Hon'ble Kerala
High Court in the case of CAT v. India Sea Foods reported in 168 ITR
721 had held that the Tribunal was right in Law in allowing to raise for
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the first time before it, the ground pertaining to the correct previous
year in so far as the assessment of capital gains was concerned.
Accordingly we overrule the objection of the learned S.D.R. On coming
to the merits of the matter we would like to observe that the gross
profit of 9.0294% added to the cost of manufacture already includes
salaries and administrative expenses. Administrative overheads clearly
allocable to other two activities (manufacture of solid tyres and re-
treading of old tyres) cannot go into the costing of camel back. Since
the assessment was at sheet stage, post-assessment costs on cutting
strips out of sheets cannot be included. If the revenue want to shift the
assessment stage to strips, then logically the cutting wastage should
also be taken into account. Clearance of camel back from other
factories is generally in sheet form, however, Item 16A(2) covers both
sheets and strips whereas in the appellants' case the excise duty is
levied on the manufacture of camel back. As such we hold that there is
no justification for adding the cutting expenses from sheet to strip for
computing the cost of camel back. Accordingly we hold that the
administrative overhead expenses which are not connected with the
manufacture of camel back sheets cannot be included in computing
the cost of production. In the result the appeal is allowed in these
terms. Revenue authorities are directed to give consequential effect to
this order.
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Data Used
There were mainly two sources of data collection
Primary data:
Survey method
Personal interview with candidates
In depth conversation with the placement agency
Secondary data:
Study of recruitment policy
Websites
Published articles
Research methodology used
Study of recruitment and selection at Hindustan Tyre Ltd. by the manual
provided by the HR department;
Web sites
Journals
Magazines
Books
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Findings
Huge investment of time;
Huge recruitment cost;
To pursue these, I would be going through the recruitment policies of the
company. By active participation in the recruitment process, the areas where
improvement can be bought about can be identified.
Thus the whole research would be done under the guidance of external guide. It
will also involve recruitment and selection processes, reading the material
provide internally by the organization, information from the new employees.
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Recruitment & Selection Process
Every workplace is unique. It is important for you to understand and define the
values, goals, policies, and practices that describe your organization. If you can
clearly express who you are and what youre looking for, your recruitment efforts
will be more successful because prospective applicants can assess their fit with
your needs.
Use the unique characteristics of your organization to your advantage and promote
them as a selling point in your recruitment efforts. A solid recruitment plan, careful
attention to selection and ongoing commitment to retention mean that you will
need to spend less time, energy and money replacing staff.
Good recruitment begins with good planning. Before you get started, ask yourself
some important questions. Take the time to find out the answers before you place
that ad or post the help wanted sign. The following graphic highlights some of
the important topics you need to consider before moving ahead
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Know your organization
What is your organizational culture (norms, values, traditions) ?
What is your organizations vision ?
Why would someone want to work in your organization?
Know your hi r ing needs
Whats coming up that might create the need to hire new workers? For
example, increased sales or new product lines, new technology, anticipated
turnover.
Who or what can provide you with this information?
For example, strategic plans, sales reports, records of past hiring patterns,
line managers and others in the know.
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Know what you alr eady have
What skills and abilities do your current employees.
What members of your organization might be able to meet future skills need.
Know the work
What are the main tasks ?
What are the key responsibilities ?
What knowledge attitude & skills are required ?
What experience, special skills & qualification ?
Know the labor market
What skills are in short supply ?
What competitive salary for this kind of work
Know your talent sources
As you plan your talent search, be creative. Rather than targeting the same
workers and using the same strategies as everyone else, consider your
options. All of the following populations face barriers to employment and
may have a lot to offer your organization.
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Know your options
What recruitment strategies can you consider ?
What resources (time, value & money ) do you have to support for your
organization.
Measure & evaluate
This step might be as simple as adding the question. How do you hear about
us? record keeping using a chart like the following template will help you to
evaluate the strategies you choose. Having the flowchart ready at the onset
of your recruitment campaign will help you track costs and results from
dayone
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Rules and Regulations of Recrui tment & Selection
Process in Organization :
To provide clarification and detail of the core commitments laid down in the
organization code of Practice for Recruitment and Selection.
To offer step by step support to all those involved in the recruitment and
selection of organisation;
To ensure that there is a consistent and unbiased procedure for the
recruitment and selection in the organization.
To act as the basis of an informal contract between recruiters and
organization administration to make the recruitment process as speedy and
efficient as possible.
Recrui tment Process
Recruitment process of defining a job and attracting applicants for the vacant post.
It is the process of finding and attracting capable applicants for employment. the
process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants from which new applicants are
selected.
Selection Process :
Selection is the process of choosing the most appropriate candidate to fill the postfrom among all those who apply.
Selection is the pivot point between recruitment and retention. Hopefully your
efforts have gained you several qualified candidates. Now you have to decide who
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is the best fit for the job. You need to plan a process that is fair and objective and
results in choosing the best person for the job. Taking some time to plan ahead will
help you to find an individual whose skills and talents will be an asset to your
organization, a person who will want to keep you as an employer as well
The recruitment and selection process below are designed to withstand scrutiny
and to fulfill the legal obligations placed on all recruiters. Adherence to the
guidelines will provide protection for individuals involved in selection. Recruiters
represent the organisation and the organisation is liable for the actions of recruiters.
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OBJECTIVES OF THE PROJECT
Every task is undertaken with an objective. Without any objective a
task is rendered meaningless. The main objectives for undertaking this
project are:
To understand the internal Recruitment process at Hindustan Tyres Ltd.
To identify areas where there can be scope for improvement
To give suitable recommendation to streamline the hiring process
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SWOT ANALYSIS
Strengths
1. Wide product offering at different interest rates.
2. Large distribution network
Weakness
1. Lack of advertisement activities,
2. Focus only on middle class.
3. Limited products
Opportunity
1. Rise of Indian middle class and small cities.
2. A booming economy
Threats
1. Many players fighting for the same cake
2. Entry of new players
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TYREINDUSTRIES
The report elucidates facts about the Hindustan Tyre Industry, supplemented by
latest statistical data and comprehensive analysis.
Emphasis is laid on the following key subject matters to accomplish the report
The characteristics of the industry (raw material intensity, cyclicality,
competition, wide distribution network, capital intensity, low bargaining
power, branding, technology requirements, margins and duty structure) and
its demand drivers (vehicle production & population, regulatory norms,retreading of tyres etc.).
Category-wise tyre production and market-wise tyre offtake analysis for the
period FY 03-07.
Market competition and category-wise market share of players. Change in
category-wise market share of players in FY07 vis-a vie FY06.
Cost Analysis (raw material, power & fuel, employee and selling expense)
of the top players with specific focus on raw material costs.
Category-wise tonnage offtake growth projection for the tyre industry for a
five year horizon (FY 07-12) along with SWOT analysis of the industry.
Financial profi le, international forays, expansion plans of the top fi ve
players along with the details of corporate actions by other global and local
players in India.
The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tonnes)
garnering Rs. 19,000 crores in FY 07. MRF Ltd. was the market leader (22%
market share) followed closely by Apollo Tyres Ltd. (21%). The other major
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players were JK Tyre & Industries Ltd (18%) and Ceat Ltd. (13%). The industry
tonnage production registered a 5 year CAGR of 9.69% between FY 02-07.
Truck & Bus tyre category (accounting for 57% of the tonnage production)
recorded a 5 year CAGR of 7.85% (a rate slower than that of the industry) while
Light Commercial Vehicle (LCV), Motorcycle and Car tyre categories grew at
15%, 16% and 14% respectively (at rates faster than that of the industry). Off the
road (OTR) tyres (customized tyres which fetch a higher margin compared to other
tyres) category is growing at a fast pace. The OTR tyre category registered a 5 year
CAGR of over 20% in the last five years. Most of the top players are increasing
their capacity for the production of OTR tyres so as to improve their product mix,
for e.g. CEAT Ltd. is increasing its OTR capacity at its Nasik plant from 60,000 to
1,00,000 tyres by end 2008, JK Tyre & Industries is expanding its OTR capacity
from 25,000 tyres to 42,000 tyres by end 2008, even smaller player like Falcon
tyres is making its foray into the OTR category.
The exports from the country clocked a CAGR of 13% in unit terms and 18% in
value terms in the period FY 0207. Most of these tyres that are exported are of
cross ply design. With radialisation catching up in some of these markets, the
manufacturers will need to graduate to radial tyres so as to protect their share in the
export market. Radialisation of tyres is still minimal in India. Only the car tyre
market has moved to radial tyres (95%) but in all other categories cross ply tyres
are still preferred. Poor road conditions, overloading in trucks, higher initial cost of
radial tyres and poor awareness levels in tyre users are the main reasons for the non
transition of the domestic market to radial tyres. However, going ahead,
radialisation in truck & bus tyres may increase due to governments focus on
infrastructure development.
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CARE Research expects the tyre industry to register a tonnage growth of 910% in
the next five years (FY 0712). The truck & bus and LCV tyre category are
expected to register a CAGR of 8% and 14% respectively (FY 0712).
The report elucidates facts about the Indian Tyre Industry, supplemented by latest
statistical data and comprehensive analysis.Emphasis is laid on the following key
subject matters to accomplish the report.The characteristics of the industry (raw
material intensity, cyclicality, competition, wide distribution network, capital
intensity, low bargaining power, branding, technology requirements, margins and
duty structure) and its demand drivers (vehicle production & population, regulatory
norms, retreading of tyres etc.).Category-wise tyre production and market-wise
tyre offtake analysis for the period FY 03-07.Market competition and category-
wise market share of players. Change in category-wise market share of players in
FY07 vis-a vie FY06.Cost Analysis (raw material, power & fuel, employee and
selling expense) of the top players with specific focus on raw material
costs.Category-wise tonnage offtake growth projection for the tyre industry for a fi
ve year horizon (FY 07-12) along with SWOT analysis of the industry.Financial
profi le, international forays, expansion plans of the top fi ve players along with the
details of corporate actions by other global and local players in India.
The Hindustan Tyre Industry produced 736 lakh units of tyres (11 lakh tonnes)
garnering Rs. 19,000 crores in FY 07. MRF Ltd. was the market leader (22%
market share) followed closely by Apollo Tyres Ltd. (21%). The other major
players were JK Tyre & Industries Ltd (18%) and Ceat Ltd. (13%). The industry
tonnage production registered a 5 year CAGR of 9.69% between FY 02-07.
Truck & Bus tyre category (accounting for 57% of the tonnage production)
recorded a 5 year CAGR of 7.85% (a rate slower than that of the industry) while
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Light Commercial Vehicle (LCV), Motorcycle and Car tyre categories grew at
15%, 16% and 14% respectively (at rates faster than that of the industry). Off the
road (OTR) tyres (customized tyres which fetch a higher margin compared to other
tyres) category is growing at a fast pace. The OTR tyre category registered a 5 year
CAGR of over 20% in the last five years. Most of the top players are increasing
their capacity for the production of OTR tyres so as to improve their product mix,
for e.g. CEAT Ltd. is increasing its OTR capacity at its Nasik plant from 60,000 to
1,00,000 tyres by end 2008, JK Tyre & Industries is expanding its OTR capacity
from 25,000 tyres to 42,000 tyres by end 2008, even smaller player like Falcon
tyres is making its foray into the OTR category.
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RESEARCH METHODOLOGY
Research Methodology refers to the framework or plan according to which the
researcher has to carry out his activity.
Research can be defined as a "systematized effort to gain new knowledge."
Marketing Research is a systematic and objective process of identifying and
formulates the marketing problems; Setting research objectives and methods
for collecting, editing" coding, tabulating, evaluating, analyzing, interpreting
and presenting the various information does it 985 data in order to find
justified solutions for these problems.
Research Methodology is the procedure for conducting the research. It is a
way to systematically solve the problem. It may be understood as a science
of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher In studying his research
problem along with the logic behind them. If the researcher wants to claimobjectivity of His research and wishes to establish a truth and gain wide /*
acceptability than lot of attention has to be devoted to the procedure and
methodology of the research.
Market research involves the following steps:
Step 1: Define the problem and research objectives.
Step 2: Developing the research plan
Selection method
Questionnaire method
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Sampling method
Contact method
Step 3: Collect the information
Step 4: Analyze the information.
Step 5: Present the findings.
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Step 1: Define the research objective
After discussing with the external project guide the topic for the project was
selected as:
Financial analysis ofHindustan Tyres ltd.
Step 2: Developing the research plan
Questionnaire method
Marketing researchers have the best instrument in collecting primary data i.e. a
questionnaire to collect the data and to establish the view of the people from all
the sectors of the society.
Questionnaires are designed to elicit information that meets the studies
requirements.
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Questions should be:
o clear
o easy to understand
o directed towards meeting an objective.
Need to define objectives before designing the questionnaire. Must maintain
impartiality and be very careful with personal data. Four basic types of questions
are:
o Open ended
o Dichotomous
o Multiple choice.
o Scaled (lickert)
The questionnaire designed for this project contains open-ended questions. All the
questions are clearly defined. The questions are framed keeping in mind the
objective of research and kind of information required .Sampling method
To select representative units from a total population.
A population "universe", all elements, units or individuals that are of interest to
researchers for a specific study. IE all registered voters for an election.
Sampling procedures are used in studying the likelihood of events based on
assumptions about the future.
o Random sampling, equal chance for each member of the population
o Stratified sampling, population divided into groups re: a common
characteristic, random sample each group
o Area sampling, as above using areas
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o Quota sampling, judgmental, sampling error cannot be measured
statistically, mainly used in exploratory studies to develop a
hypotheses, non-probablistic.
Random sampling is selected as the sampling method for this project.
Selection Method
o Mail-wide area, limited funds, need incentive to return the
questionnaire Mail panels, consumer purchase diaries. Must include a
cover letter to explain survey!!
o Telephone-speed, immediate reaction is negative, WATS, computer
assisted telephone interviewing.
o Personal interviews-flexibilty, increased information, non-response
can be explored. Most favored method among those surveyed. Can be
conducted in shopping malls.
o In home (door-to-door) interview, get more information but it is
costly and getting harder to accomplish.
o Mall intercepts-interview a % of people passing a certain point.
Almost half of major consumer goods and services orgs. use this
technique as a major expenditure. Can use demonstration, gauge
visual reactions. Regarding social behavior, mall surveys get a more
honest response than telephone surveys. There is a bias toward those
that spend a lot of time in malls. Need to weight for this. On site
computer interviewing, respondents complete self administered
questionnaires conducted in shopping malls. Questions can be
adaptive depending on the responses.
o Focus groups-observe group interaction when members are exposed
to an idea or concept, informal, less structured. Consumer attitudes,
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behaviors, lifestyles, needs and desires can be explored in a flexible
and creative manner. Questions are open ended. Cadillac used this
method to determine that they should be promoting safety features.
A sample of 200 people was taken and judgement was done to select the right
prospects to secure accurate information. The sample consisted of people like
businessman, doctors, pvt. Company employees.
Contact/Observation method
Record overt behavior, note physical conditions and events. Can be combined
with interviews, i.e. get demographic variables.
Mechanical observation devices, IE cameras, eye movement recorders, scanner
technology, Nielsen techniques for media.
Observation avoids the central problem of survey methods, motivating
respondents to state their true feelings or opinions. If this is the only method,
then there is no data indicating the causal relationships.
Step 3: Collection of information
The information of the project was gathered in 2 forms:
Primary data
In primary data collection, you collect the data yourself using methods such as
interviews and questionnaires. The key point here is that the data you collect is
unique to you and your research and, until you publish, no one else has access to it.
There are many methods of collecting primary data and the main methods include:
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questionnaires
interviews
focus group interviews
observation
case-studies
diaries
critical incidents
portfolios.
Secondary data
Secondary data - collected by others to be "re-used" by the researcher
What Form Does Secondary Data Take?
o Qualitative Sources
o Sources for Qualitative Research:
Biographies - subjective interpretation involved
Diaries - more spontaneous, less distorted by memory lapses
Memoirs - benefit/problem of hindsight
Letters - reveal interactions
Newspapers - public interest & opinion
Novels & Literature In General Handbooks, Policy Statements,
Planning Documents, Reports, Historical & Official Documents
(Hansard, Royal Commission reports)
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o Quantitative Sources
Published Statistics:
National Government Sources
Local Government Sources
Other Sources
Non-Published / Electronic Sources
Data Archives eg the Data Archive At Essex
On-Line Access To National Computing Centres
International Sources on Internet & Web
For this project the secondary sources used are:
Journals
Company product brouchers
Internet
Market Research Design
Research : Descriptive type
Data Source : Primary & secondary
Research approach : Survey method
Research instrument : Questionnaire
Type of questions : Closed ended
Sample sizes : 100 samples
Mode of collecting data : Respondents to be
collection : chosen randomly.
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RESEARCH DESIGN
A research design is simply a framework for the study that is used as a guide for
collecting and analyzing the data. Decision regarding what, where when, how
much, by what means concerning an inquiry or a research study constitutes a
research design. This framework ensures collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. In fact, the research design is the conceptual structure within which
research is conducted. It constitutes the blue print for collection, measurement
analyses of data. Research design depends on the purpose of study. Research
purpose may be grouped into four categories:
a) EXPLORATORY RESEARCH: It is also termed as formulate research.
The main purpose of such research is to gain familiarity with a phenomenon
or discovery of ideas and insights.
b) DESCRIPTIVE RESEARCH: These are studies, which are concerned with
describing the characteristics of a particular individual, situation or a group.
c) DIAGNOSTIC RESEARCH STUDIES: These studies determine the
frequency with which something occurs or with which it is associated with
something else.
d) HYPOTHESIS TESTING RESEARCH STUDIES: These are concerned
with testing a hypothesis of a causal relationship between variables.
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TYPE OF RESEARCH
SAMPLE DESIGN
All items in any field of study constitute the UNIVERSE. In any study it is
almost impossible to examine the entire universe. The only alternative that is best,
suitable and economical is to resort to sample. 'This is absolute for present study.
The basic principle, which is followed is that the sample chosen should be
representative of the entire universe to be studied.
A SAMPLE DESIGN is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researchers would adopt
in selecting items for the sample. Sample design may as well lay down the number
of items to be included in the sample i.e. the size of sample and also the sampling
units. Sampling units implies the unit of sample considered and the unit of inquiry
There are different types of sample designs based on two factors viz.,
REPRES.ENTATION BASIS and, the ELEMENT SELECTION
TECHNIQUE.
On the REPRESENTATION BASIS, the sample may be PROBABILITY
SAMPLING or it may be NON PROBABILITY SAMPLING.
Probability sampling is based on random selection and in this every element
in the universe has an equal chance of being selection in sample.
Non-Probability is non-random sampling and it does not afford any basis for
estimating the probability that each item in the population has of being
included in the sample.
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On ELEMENT SELECTION BASIS, the sample may be either
RESTRICTED or UNRESTRICTED.
Unrestricted sampling is based when each sample element is drawn
individually from the population at large, then the sample so drawn is known
as 'unrestricted sampling'.
Restricted sampling includes all other forms of sampling like quota,
judgmental, stratified sampling etc.
TYPE OF SAMPLE
In the PRESENT STUDY non-probability sampling technique was applied,
where samples are selected RANDOMLY BASED ON CONVENIENCE AND
JUDGEMENTAL.
SAMPLE SIZE
A sample of 50 Dealers was selected.
TECHNIQUES USED IN THE RESEARCH
Various techniques were used for making and studying the report. These
are: -
Ratio analysis
Profitability ratio
Long-term solvency ratio
Short-term solvency ratio
Turnover ratio
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FINANCIAL ANALYSIS
INTRODUCTION
o Financial analysis is the process of determining the significant operating andfinancial characteristics of a firm from accounting data and financial
statements
o The goal of such analysis is to determine the efficiency and performance of
the firms management, as reflected in the financial records and reports.
o The analyst attempts to measure the firms liquidity, profitability and other
indication that business is conducted in a rational and orderly way.
o If a firm does not achieve financial norms for its industry or relationships
among data that seem reasonable, the analysts note the deviations. The
burden of explaining the apparent problems may then be placed upon
management.
Managers, shareholders, creditors, tax authorities and other interested groups seek
answers to the following important questions about the firm:
# What is the financial position of the firm at a given point of time?
# How did the firm perform financially over a given period of time?
The firm itself and outside providers of capital creditors and investors all
undertake financial statement analysis. The type of analysis varies according to the
specific interests of the party involved. Trade creditors (suppliers owed money for
goods and services) are primarily interested in the liquidity of the firm. Their
claims are short term, and the ability of the firm to quickly pay these claims is best
judged by the analysis of the firms liquidity. The long term lenders on the other
hand accordingly are more interested in the cash flow ability of the firm to service
debt over a long period of time. They evaluate this ability by analyzing the capital
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structure of the firm, the major sources and uses of funds, the firms profitability
over the time, and projections of future profitability. Investors in a companys
common stock are principally concerned with present and expected future earnings
as well as with the stability of these earnings about a trend line. As a result,
investors usually focus on analyzing the profitability of the firm. They would also
be concerned with the firms financial condition insofar as it affects the ability of
the firm to pay dividends continuously.
Al l the cases descri bed so far have involved suppl iers of capi tal. Therefore, the analysis has
taken an external point of view. Internall y, management also employs fi nancial analysis for
the purpose of i nternal control and to better provide what capital suppli ers seek in f inancial
conditi on and perf ormance fr om the fi rm. F rom an internal control standpoint, management
needs to undertake fi nancial analysis in order to plan and control effectively
FINANCIAL STATEMENTS
Financial analysis involves the use of various financial statements. A financial
statement is a collection of data organised according to logical and consistentaccounting procedures. Its purpose is to convey an understanding of some financial
aspects of a business firm. It may show a position at a moment in time, as in the
case of Balance Sheet (A summary of firms financial position on a given date that
shows total assets = total liabilities + owners equity ), or may reveal a series of
activities over a given period of time; as in the case of an Income Statement ( A
summary of the firms revenues and expenses, over a specified period ending with
net income or loss for the period ), or may show the sources and uses of funds, as
in the case of Fund Flow Statement (A summary of a firms changes in financial
position from one period to another).The Income statement, the statement or
retained earnings and the statement of changes of financial position report what has
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specific period of time, normally the same time period as the firms income statement. The
fi nancial manager makes decisions to ensure that the firm has suf fi cient funds to meet
f inancial obligations when they are due and to take advantage of f inancial opportuni ties. To
help the analyst appraise these decisions (made over a period of time), we need to study the
firms flow of funds.
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RATIO ANALYSIS-A TOOL
Ratio analysis is a very powerful analytical tool for measuring performance of an
organization. The ratio analysis concentrates on the inter-relationship among the
figures appearing in the aforementioned four financial statements. The ratio
analysishelps the management to analyze the past performance of the firm and to
make further projections. Ratio analysis allows interested parties like shareholders,
investors, creditors, Govt. and analyst to make an evaluation of certain aspects of a
firms performance.
Ratio analysis is a process of comparison of one figure against another, which
make a ratio, and the appraisal of the ratios to make proper analysis about the
strengths and weaknesses of the firms operations. The calculation of ratios is a
relati vely easy and simple task but onl y the ski l led analyst can make the proper
analysis and interpretation of the ratios. Whil e in terpreting the financial
in formation, the analyst has to be careful in limi tations imposed by the
accounti ng concepts and methods of valuation. Information of non-f inancial
natur e wil l also be taken in to consideration before a meaningful analysis is
made.
Ratio analysis is extremely helpful in providing valuable insight into a companys
financial picture. Ratios normally pinpoint a business strengths and weakness in
two ways:
1. Ratios provide an easy way to compare todays performance with past.
2.Ratio depict the areas in which a particular business is competitively
advantaged or disadvantaged through comparing ratios to those of other
businesses of the same size within the same industry.
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TYPES OF RATIOS
CLASSIFICATION OR TYPES OF RATIOS
The following classification is based on the financial statements on which ratios
are calculated. Thus these are:
Balance Sheet Ratios.
Current Ratio
Liquid Ratio
Proprietary Ratio
Debt Equity Ratio
Stock Working Capital Ratio
Profit and loss A/C Ratios
Gross Profit Ratio
Operating Profit Ratio
Net Profit Ratio
Combined or balance sheet and profit and loss ratio
Capital-turnover ratio
Fixed-assets turnover ratio
Net working capital-turnover ratio
Stock-working capital ratio Return on investment
Return on equity
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However, the above basis of classification is found to be too crude and unsuitable
because analysis of balance sheet and income statement cannot be done in
isolation. Therefore they are studied together in order to determine profitability
and solvency of the business.
In order that ratio serves a tool of financial analysis, they are now classified into
four important categories.
Liquidity ratios
Solvency/Financial/Leverage ratios
Activity ratios
Profitability ratios
LIQUIDITY RATIOS-AN ANALYSIS FOR SHORT TERM CREDITORS
Liquidity ratios measures the firm abilty to meet current obligations. These are of 2 types:
1) CURRENT RATIO:
The current ratio is calculated by dividing current assets by current liabilities.
CURRENT ASSETS= CURRENT ASSETS
CURRENT LIABILITIES
In a business, a 2:1 ratio is treated a satisfactory relationships.
2)Acid test ratio or quick ratio or liquid ratio:
Quick ratio establishes a relationship between quick, or liquid, assts and current liabilities.
Quick ratio= Total current assets-(stock in trade+prepaid expenses)
Current Liabilites
A ratio of 1:1 is considered favourable since for every rupee of current liabilities there is a rupee
of quick assets.
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SOLVENCY RATIO- AN ANALYSIS FOR LONG-TERM CREDITORS
Solvency ratios indicate ability of the company to meet its interest cost and repayment schedules
associated with its long term indebtedness.
1)Debt-Equity Ratio:
Debt equity ratio expresses the relationship of long term liability to net worth.
DEBT-EQUITY RATIO = Long term liabilities
Equity(or net worth)
The normally accepated debt-equity ratio is 2:1.
2)Interest-coverage ratio
The interest coverage ratio or debt services ratio indicate how much interest charges are covered
by operating profits by operating profits available to pay its interest charges.
INTEREST COVERAGE RATIO= Net income before charging interest and income tax
Periodic interest on long term debts
A higher ratio is desiarable.
3)Debt to total funds ratio
This ratio compares the total liabilities to total assets.
DEBT TO TOTAL FUNDS RATIO=Total liabilites
Total assets
The ratio indicates the percentage of assets financed through borrowings.
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ACTIVITY RATIOS-AN ANALYSIS FOR MEASURING THE MOVEMENT OF
ASSETS.
Activity ratio signifies the effective utilisation of a concern of its available resources. These are
es follows:
1) CAPITAL TURNOVER RATIO
This ratio measures the effectiveness with which a firm uses financial resources at its disposal.
CAPITAL TURNOVER RATIO=Net sales (or) cost of sales (or) cost of goods sold
Capital employed or owners equity
A low ratio may signify that the capital is lying idle or there is a fall in sales revenue.A high ratio
indicates that either the business firm is overtrading to an extent that its financial health is in risk
or danger or there is manipulation in the figures.
2)FIXED ASSETS TURNOVER RATIO
This ratio indicates the firms efficiency of utilising fixed assets.
FIXED ASSETS TURNOVER RATIO=Net sales
Fixed assets less depreciation
Higher the ratio, better it is because it indicates higher efficiency, i.e., every rupee invested in
fixed assets generates higher sales.
3)NET WORKING CAPITAL TURNOVER RATIO
This ratio computes the requirement of working capital for an expected increase in sales.NET WORKING CAPITAL TURNOVER RATIO=Net credit sales
Average debtors
A high ratio indicates efficient use of working capital and quick turnover of these current assets.
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4)STOCK TURNOVER RATIO
This ratio signifies the number of times on an average,the inventory or stock turnover or sold
during the period. It shows how the goods are kept in stores before being sold.
STOCK TURNOVER RATIO=Cost of goods sold
Average stock held during the year
A higher stock turnover ratio is desirable because it leads to higher liquidity. It indicates efficient
sales performance.
A low stock turnover ratio indicates that goods are not sell quickly and remains in the godown
for a long time. This will lead to excessive blocking up of working capital in inventories.
Moreover, slower stock turnover will reduce liquidity.
4)DEBTORS TURNOVER RATIO
This ratio establishes the relationshipof receivables to net credit sales. It indicates the number of
times debtors turnover each year.
DEBTORS TURNOVER RATIO=Net credit sales
Average debtors(Debtors + Bills Receivables)
Generally higher the value of debtors, the more efficient is the management of credit.
PROFITABILITY RATIOS-THESE RATIOS ARE CALCULATED TO ANALYSE THE
FINANCIAL RESULTS OF BUSINESS OPERATIONS FOR THE SAME FIRM OVER
SEVERAL YEARSOR OF THE SIMILAR FIRMS FOR THE SAME FIRM OR
SEVERAL YEARS. THESE ARE:
1) GROSS PROFIT RATIO
The gross profit ratio is also called the average markup ratio. This ratio expresses relationship
between gross profit and net sales. This ratio indicates the degree to which income per unit may
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decline without resulting in losses from operations to the firm. It also helps in ascertaining
whether the average percentage of mark up on the funds is maintained. It is calculated by
comparing the gross profit of the firm with the net sales as follows:
GP Ratio= Gross profit x 100
Net sales
Gross profit = Gross incomeInterest and other charges.
1)OPERATING PROFIT RATIO
The operating refers to the pure operating profit of the firm i.e. the profit generated by the
operation of the firm and hence is calculated before considering any financial charge (such as
interest payment), non operating income/ loss and tax liability etc. the operating profit is also
termed as the Earning Before Interest and Tax (EBIT). The Operating Profit ratio may be
calculated as follows:
Operating Profit Ratio = Operating cost x 100
. Net Sales
So, the Operating cost = Gross income
Interest and other charges
Staff expenses
Other expensesDepreciation
3)NET PROFIT RATIO
The NP ratio establishes the relationship between the net profit (after tax) of the firm and the net
sales. The NP ratio measures the efficiency of the management in generating additional revenue
over and above the total cost of operations. The NP ratio shows the overall efficiency in
manufacturing, administrative, selling and distributing the product.
It may be calculated as follows:
NP ratio = Profit (after tax) x 100
Net sales
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4)RETURN ON ASSETS (ROA)
The ROA measures the profitability of the firm in terms of assets employed in the firm. The
ROA is calculated by establishing the relationship between the profits and the assets employed to
earn that profit. Usually the profit of the firm is measured in terms of the net profit after tax and
the assets are measured in terms of total assets or total tangible assets or total fixed assets.
Conceptually, the ROA may be measured as follows:
ROA = Net profit after taxes x 100
Total assets
4)RETURN ON INVESTMENT (ROI)
The profitability of the firm can also be analyzed from the point of view of total funds employed
in the firm. The term funds employed or the capital employed refers to the total long-term
sources of funds.
Capital employed = shareholders funds plus long-term debts.
Alternatively, capital employed = fixed assets plus + working capital.
The ROI may be calculated as follows:
ROI = Net profit before interest and taxes x 100
Capital employed
RETURN ON EQUITY (ROE)
The ROE examines profitability from the perspective of equity investors by relating profits
available for the equity shareholders with the book value of equity investment. The return from
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the point of view of equity shareholders may be calculated by comparing the net profit less
preference dividend with their total contribution in the firm
ROE = Net Profit after tax x 100
Total shareholders fund
PROFITABILITY RATIO
In a business enterprise, profitability is the most important part for a financial institution
notwithstanding it is pre eminently a service oriented industry. It is fundamental truth that
revenue must exceed expenditure incurred in the process of earning that revenue. Profit provides
cushion to the financial institution to support its credit risks and withstand any unforeseeabledevelopments. A profitable financing organization has sufficient resources in its command to
finance its growth and diversification programmes in future.
Profitability ratios are measured with reference to sales, capital employed, total assets employed,
shareholders funds etc. the major profitability rates are as follows:
Gross profit margin
Operating profit ratio
Net profit margin
Return on assets
Return on investment
Return on equity
Earning per share.
Dividend per share
Dividend payout ratio
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FINDINGS
GROSS PROFIT RATIO
The gross profit ratio is also called the average markup ratio. This ratio expresses relationship
between gross profit and net sales. This ratio indicates the degree to which income per unit may
decline without resulting in losses from operations to the firm. It also helps in ascertaining
whether the average percentage of mark up on the funds is maintained. It is calculated by
comparing the gross profit of the firm with the net sales as follows:
GP Ratio= Gross profit x 100
Net sales
Gross profit = Gross income
Interest and other charges.
GP RATIO - 2010 ( Current Year)
= 50.13 x 100
718.43
= 6.97%
GP RATIP2011 (Previous Year)
= 40.85 x 100
320.67
= 12.73%
Hence, gross profit of year 2011 is better then 2010.
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GP RATIO
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2010 2011
6.97%
12.73%
% change
Years
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NET PROFIT RATIO
The NP ratio establishes the relationship between the net profit (after tax) of the firm and the net
sales. The NP ratio measures the efficiency of the management in generating additional revenue
over and above the total cost of operations. The NP ratio shows the overall efficiency in
manufacturing, administrative, selling and distributing the product.
It may be calculated as follows:
NP ratio = Profit (after tax) x 100
Net sales
Net Profit2011 (Current Year)
= 131.90 X 1 00
718.43
= 18.35%
Net Profit2010 (Previous Year)
= 40.56 X 100
320.67
= 12.64%
Hence, Net profit of year 2010 is better then 2011
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NET PROFIT RATIO
0.00%
5.00%
10.00%
15.00%
20.00%
2010 2011
18.35%
12.64%
%change
Years
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RETURN ON ASSETS (ROA)
The ROA measures the profitability of the firm in terms of assets employed in the firm. The
ROA is calculated by establishing the relationship between the profits and the assets employed to
earn that profit. Usually the profit of the firm is measured in terms of the net profit after tax and
the assets are measured in terms of total assets or total tangible assets or total fixed assets.
Conceptually, the ROA may be measured as follows:
ROA = Net profit after taxes x 100
Total assets
ROA
2011 (Current Year)= 131.90 X 100
1172.73
= 11.24%
ROA2010 (Previous Year)
= 40.56 X 100
241.79
= 16.77%
Hence, ROA of the year 2011 is better then 2010.
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RETURN ON ASSETS
0
0.05
0.1
0.15
0.2
2010 2011
11.24%
16.77%
% Change
Years
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RETURN ON INVESTMENT (ROI)
The profitability of the firm can also be analyzed from the point of view of total funds employed
in the firm. The term funds employed or the capital employed refers to the total long-term
sources of funds.
Capital employed = shareholders funds plus long-term debts.
Alternatively, capital employed = fixed assets plus + working capital.
The ROI may be calculated as follows:
ROI = Net profit before interest and taxes x 100
Capital employed
ROI2011 (Current Year)
= 197.63 X 10017.25
= 1145.68%
ROI2010 (Previous Year)
= 58.17 X 100
7.30
= 7.96%
Hence, ROI of the year 2011 is better then 2010
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RETURN ON INVESTMENT
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2010 2011
11.45%
7.96%
%change
Years
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RETURN ON EQUITY (ROE)
The ROE examines profitability from the perspective of equity investors by relating profits
available for the equity shareholders with the book value of equity investment. The return from
the point of view of equity shareholders may be calculated by comparing the net profit less
preference dividend with their total contribution in the firm
ROE = Net Profit after tax x 100
Total shareholders fund
ROE 2010 (Current Year)
= 131.90 x 100931.91
= 14.15%
ROE 2011 (Previous Year)
= 40.56 X 100
141.94
= 28.57%
Hence, the ROE of year 2010 is better then Year 2011
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RETURN ON EQUITY
0
0.05
0.1
0.15
0.2
0.25
0.3
2010 2011
14.15%
28.57%
%change
Years
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ANNEXURES
Profit & Loss A/C Of Hindustan Tyres Ltd
PARTICULARS 2011 2010
Sales Turnover 718.43 320.67
Other Income 47.72 34.51
Stock adjustments -6.59 3.73
Total Income 759.56 258.91
Raw Material 0.12 1.04
Excise Duty 0.00 0.00Power & Fuel Cost 0.49 0.29
Other manufacturing Expenses 469.46 241.86
Employee Cost 17.25 7.30
Selling & Administration Expenses 43.75 12.85
Miscellaneous Expenses 6.45 21.56
Less: Preoperative Expenditure
Capitalised
0.00 0.00
Profit before interest, Depreciation
& Tax
222.04 74.01
Interest & Financial Charges 21.30 13.71
Profit Befire Depreciation & Tax 200.74 60.30Depreciation 3.11 2.13
Profit before Tax 197.63 58.17
Tax 65.73 17.61
Profit after Tax 131.90 40.56
Adjustment below Net Profit 0.00 0.00
P & L Balance brought forward 23.46 16.89
Appropriations 86.49 33.99
P & L Balance carried down 68.87 23.46
Equity Dividend 9.93 3.50
Preference Dividend 0.00 0.00
Corporate Dividend Tax 1.56 0.49Equity Dividend (%) 25.00 20.00
Earning Per Share (Rs) 22.96 22.90
Book Value 163.31 78.11
Extraordinary Items 0.01 -10.14
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Balance sheet of HINDUSTAN TYRES LTD.
PARTICULARS 2011 2010
Share Capital 28.38 17.50Reserve & Surplus 903.53 124.44
Total Shareholders Fund 931.91 141.94
Secured Loans 191.81 89.31
Unsecured Loans 49.01 10.54
Total Debt 240.82 99.85
Total Liabilities 1,172.73 241.79
Gross Block 50.13 40.85
Less: Accum Depreciation 19.86 15.81
Net Block 30.27 25.04
Capital Work In process 0.00 0.00
Investments 11.22 9.03
Inventories 494.61 306.39
Sundry debtors 132.07 60.40
Cash and Bank Balance 224.79 24.64
Loans and Advances 915.40 311.30
Current Liabilities 614.95 475.17
Provisions 20.68 19.84
Net Current Assets 1,131.24 207.72
Miscellaneous Expenses not w/o 0.00 0.00
Total Assets 1,172.73 241.79
Contigent Liabilities 196.47 110.48
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BIBLOGRAPHY
WEBSITES:
www.wikipedia.com
www.yahoo.com
www.google.com
Hindustan Tyres Ltd.
BOOKS REFFERED:
Financial Management by I.M.Pandey
Cost accounting by S.N. Maheshwari
http://www.wikipedia.com/http://www.wikipedia.com/http://www.yahoo.com/http://www.yahoo.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.yahoo.com/http://www.wikipedia.com/ -
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SUMMER TRAINING REPORT
ON
SELECTION AND RECRUITMENTPROCESS & FINANCIAL ANALYSIS
OF
HINDUSTAN TYRES LTD.
Submitted to Panjab University, Chandigarh
In the partial fulfillment for the requirementof the degree of
MASTER OF COMMERCE
Submitted to: Submitted by:
Panjab University, Reetu JaggiChandigarh. M.Com
Enrol No.20989
UNIVERSITY SCHOOL OF OPEN LEARNING (USOL)
PANJAB UNIVERSITY, CHANDIGARH
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CERTIFICATE
Certified that Ms. Reetu Jaggi of class M.Com whose enrolment number is
20989 for the session 2011-12 has undertaken the Research/ Training under my
supervision. It is recommended that the report be placed before the examiner for
evaluation.
Date: Signature of Supervisor
Place:
Name ______________________
Designation_________________
Address ____________________
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ACKNOWLEDGEMENT
A project work is a combination of views, ideas, suggestions &
contributions of many people. Thus, one of the pleasant part of writing the report is the
opportunity to thank those who have contributed towards it fulfillment.
I am thankful to Shri R.S. Walia Manager of Hindustan Tyres who has
given me training under his great supervision.
I would like to communicate a deep sense of gratitude to all these people
without whom my project would have been such a great learning experience.
Reetu Jaggi
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PREFACE
People are a companys most important assets. They can make or break the
fortunes of a business. In todays highly competitive business environment
placing the right people in the right position is very critical for the success of
any organization
The recruitment and selection decision is of prime importance as it is the vehicle
for obtaining the best possible person-to-job fit that will, contribute significantly
towards the Company's effectiveness. It is also becoming increasingly
important, as the Company evolves and changes, that new recruits show a
willingness to learn, adaptability and ability to work as part of a team. The
Recruitment & Selection procedure ensures that these criteria are addressed
In this project report I have studied Recruitment and Selection process of
Hindustan Tyre Ltd. and attempted to provide some ways so as to make
recruitment more effective and to reduce the cost of hiring an employee.
I am privileged to be one of the students who got an opportunity to do my
training with Hindustan Tyre Ltd. My involvement in the project has been
very challenging and has provided me a platform to leverage my potential in the
most constructive way.
During the training period I have studied ofRecruitment & Selection Process
in Hindustan Tyre Ltd. and did a SWOT analysis of Hindustan Tyre Ltd. to
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