pragati sharma

A

SUMMER TRAINING

&

PROJECT REPORT

ON

“HUMAN RESOURCE AUDITING”

FOR

AARTI INDUSTRIES LIMITED

In the partial fulfillment of the requirement for M.B.A (Full Time)

Submitted By

SHARMA PRAGATI SUSHIL(M.B.A.) DIV AROLL NO 50

Submitted To

PROF. JAYSHRI TAYLOR (Internal Guide)MR. KIRIT SASHTRI (External Guide)

G.I.D.C. RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES, GRIMS, Vapi

AFFILIATED WITHVEER NARMADA SOUTH GUJARAT UNIVERSITY, SURAT

ACADEMIC YEAR 2007-08


DECLARATION

I, SHARMA PRAGATI SUSHIL hereby declare that the report on summer

training and project work entitled “HUMAN RESOURCE AUDITING”

submitted to ‘GIDC Rajju Shroff Rofel Institute of Management Studies” is a

result of my own work and my gratitude to other work publications if any, have

been duly acknowledged.

PLACE: VAPI

DATE: SHARMA PRAGATI

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ACKNOWLEDGEMENT

“Turning aspirations into realities is easier when quality people are support of

ones efforts”

I greatly concede the help provided by the company and the people working for

providing the much valuable information and also extend my thanks for the support

throughout the project report.

I am also thankful and acknowledge my depth gratitude to my teachers and the

director of GRIMS Dr. S.S.SHAH for his constant encouragement and direction in the

completion of this project report. I am obliged to him and express gratitude to him

for giving me a great opportunity for the preparation of the project report.

I would like to express my heartful of gratefulness to Mr. Kirit Shastri for having

given me this opportunity to do a project in this esteemed organization.

I am also thankful and concede my depth of gratitude to my professor guide

Mrs Jayshri Taylor for her constant encouragement and supervision in the

completion of this training and the project.

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CERTIFICATE

This is to certify that Ms. PRAGATI SHARMA has satisfactorily completed the work entitled, “SUMMER TRAINING PROJECT” specialization topic “HUMAN RESOURCE AUDITING”. Based on the declaration made by the candidate and my association as a guide for carrying out this work, I recommended this project report for evaluation as a part of the MBA Programme of Veer Narmad South Gujarat University.

Date: 09/08/2007

Place: Vapi ___________________ (Guided By: JAYSHRI TAYLOR)

__________________ (Director)

Dr. R. S. shah

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EXECUTIVE SUMMARY

The summer training report contains the detail of employees of AIL about their

living status and other problem faced by there in there day to day life.

Than what is CSR a small idea about that by theoretical as well as from

companies point of view.

The report starts with introduction of the Indian Chemical Industry with the

history of the AARTI INDUSTRIES LIMITES. The goals, mission and vision are also

added.

Than what is CSR a small idea about that by theoretical as well as from

companies point of view.

The finance department is covered every necessary information. The marketing

department of the company was in Mumbai so we were not able to get complete

information about the marketing department of the company.

The production department has in it all the production details with the

production process and the ETP plant which is situated in the company and owned

by the company.

The specialization project undertaken was in accordance to the Human

Resource Department of the organization to know the working of the department in

organization.

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The Human Resource Auditing was basically done to know the working,

systems policies and the procedures that are prevailing in the department of the

organization.

The methodology adopted for the completion of the project was to approach

the Human Resource manager with a set of questionnaire.

The data gathered shows that the AARTI INDUSTRIES LIMITED is having a

good human resource department.

The report contains the introduction of the Auditing. What does Audit

contains? Why should Auditing be conducted?

The analysis is done with the help of the questions asked and the response

from the Human Resource Manager of the AIL.

Then the findings are being shown. Lastly the suggestions are given to the

company after the interpretation of the response of the Human Resource Manager.

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INDEXPART 1 (ALL DEPARTMENT)

SR. NO TOPIC PAGE NO

1 THE STRUCTURE OF THE CHEMICAL INDUSTRY

1-2

2 AARTI INDUSTRIES LIMITED 3-15 CORPORATE INFORMATION 3-5

INTRODUCTION 6-10

THE COMPETITIVE ADVANTAGE OF AARTI INDUSTREIS LIMITED

11

3 HUMAN RESOURCE DEPARTMENT 16-60 RECRUITMENT 19-24

SELECTION 25-27

PROMOTION AND TRANSFER 28-30

TRAINING AND DEVELOPMENT 31-32

REMUNERATION 33-38

PERFORMANCE APPRAISAL 42-45

MEDICLAIM POLICY 48-49

SOCIAL RESPONSIBILITY 50-60

o (CSR) 56-60

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4 FINANCE DEPARTMENT 61-81 INTRODUCTION 61-64

STRUCTURE OF FINANCE DEPARTMENT 65

BALANCE SHEET 70

PROFIT & LOSS A/C 71

RATIO ANALYSIS 72-76

SHAREHOLDING PATTERN 77-78

CHARTS 79-81

5 MARKETING DEPARTMENT 82-122 INTRODUCTION 82-86

STRUCTURE OF MARKETING DEPARTMENT

87

THE HOLISTIC MARKETING APPROACH 88-90


THE MARKETING MIX 94-114

o PRODUCT 95-103

o PRICE 104-107

o PLACE 108-113

o PROMOTION 114

PACKAING, LABELLING, WARRANTIES AND GUARANTEES.

115-120

THE DISTRIBUTION CHANNEL 121

MODE OF TRANSPORTATION 122

6 DESPATCH DEPARTMENT 123-125

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7 PRODUCTION DEPARTMENT 126- INTRODUCTION 126-127 PLANT LAYOUT 128-129 PRODUCTION PROCESS 130-133 PRODUCTS 134-142 QUALITY CONTROL 143-147

8 RESEARCH & DEVELOPMENT DEPARTMENT 148-149

9 STORES DEPARTMENT 150

10 PLANT UTILITY DEPARTMENT 151-153

11 HEALTH AND SAFETY 154-156 AARTI HEALTH CARE 155-156 SAFETY DEPARTMENT 157-165 SHE POLICY 166-168

12 PROCESS OF HANDLING HAZARIOUS CHEMS 169-170

13 MAINTENANCE DEPARTMENT 171-172

14 EFFLUENT TREATMENT PLANT 173-177

15 SWOT ANALYSIS 178-179

16 ANNEXURE

17 BIBLIOGRAPHY

AARTI

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INDUSTRIESLIMITED

THE RIGHT CHEMESTRY FORA BRIGHTER TOMORROW

THE STRUCTURE OF THE CHEMICAL INDUSTRY

In tune with the fast changing economic environment in the country, the Indian

chemical industry too is on a steady growth path. Indian chemical industries has a

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strong and diversified base encompassing many areas such as organic and

inorganic chemicals, plastic, fibers, dye stuffs, paints, pesticides, insecticides,

speciality chemicals, drugs and pharmaceuticals. The growth in this sector has

constantly been increasing than the average growth rate of the manufacturing

sector in India.

The chemical industry is sometimes referred to as the "keystone" industry

because of the way the rest of the manufacturing sector relies on chemicals.

Chemicals are nearly a $1.5 trillion global enterprise, and the U.S. chemical industry

is the world's largest producer. The chemical industry is also the second largest

consumer of energy in manufacturing and spends over $5 billion annually on

pollution abatement. Chemical industry has 21% of total energy consumption.

The Indian economy is firmly on the path of the steady growth. Even during the

last decade when the other countries were in the grip of the massive slowdown,

India continued to enjoy a comfortable position. This recent spurt in the growth is

propelled by radical reforms such as the removal of the restrictions on foreign

investment and industrial delicensing. With substantial increase in the domestic

Gross Domestic Product (GDP) rate; the growth is also translated into increasing

the demand in the domestic sector in various chemicals. Simultaneously the

chemicals sector also shows growth in export.

THE INDIAN CHEMICAL INDUSTRY SIZE US $ 28 BILLION

Chemical Industry is an important constituent of the Indian economy.

Its size is estimated at around US $ 28 billion approx, which is equivalent

to about 7% of India’s GDP.

In terms of volume, it is 12th largest in the world, and 3rd largest in Asia.

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Within India, it constitutes about 15% of manufacturing capacity and 20%

of the Excise revenue to the Government of India.

Chemical industry has weight age of about 13% in the index of industrial

production.

The global chemical industry is valued at about US $ 1.7 trillion. Of

which, India’s chemical sector accounts for just 2%.

{The Indian chemical industry is the 12th largest in the World and 3rd largest in

Asia. The Indian chemical industry constitutes 12.5% of the country’s industrial

production and 15%of the manufacturing capacity of India. Also the chemical

industry constitutes 6.7% to India’s GDP.}

India’s Chemical Industry Export

India’s chemical exports have recorded growth rate of 9%.

For the year 2001-02, the chemical industry accounted for more than

16.20% of the total Indian exports.

For the year 2001-2002 exports of all chemicals and allied products were

US $ 4684 million.

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CORPORATE INFORMATION

Name of the Company : AARTI INDUSTRIES LIMITED

Type of Company: Public Limited

Established Year : 1984

Size of Company: Large Scale

Plants :

Plot no. 801,801/23,802,803/1-2-3, GIDC,Phase 3, Vapi-396195

Plot no. 902, GIDC ESTATE,PHASE 2, VAPI-396195,DIST: VALSAD, GUJARAT.

Plot no. 752-753-754SARIGAM, TAL: UMARGOAN,DIST: VALSAD, GUJARAT

Plot no.758/1, 758/2,GIDC ESTATE JHAGADIA,DIST: BHARUCH, GUJARAT

Plot no. K-18, MIDC,TARAPUR,DIST: THANE, MAHARASHTRA.

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Plot no. E-50, MIDC,TARAPUR,DIST: THANE,

REGISTERED OFFICE: Plot no.801, 801/23 GIDC ESTATE, PHASE-3, VAPI-396195, VALSAD

CORPORATE OFFICE : Udyog Kshetra, 2nd floor, L.B.S.Marg, Mulund-Goregaon Link Road,

Mulund (W), Mumbai-400 080

Man-Power Force

Board of DirectorsChandrakant V. Gogri ChairmanRajendra V. Gogri Vice-Chairman & Managing DirectorShantilal T. Shah Vice-Chairman

Independent Directors :Ramdas M. GandhiLaxmichand K. JainVijay H. PatilHaresh K. Chheda

Whole-time Directors :Parimal H. DesaiManoj M. ChhedaRashesh C.GogriHetal Gogri GalaKirit R. Mehta

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Company SecretaryMohan P. Sonar

AuditorsM/s. Parikh Joshi & Kothare,49/2341, M.H.B.Colony,Gandhi Nagar, Bandra (East), Mumbai-400 051

Registar & Transfer Agent :

Sharpro Services (India) Pvt.Ltd.,Satam Estate, 3rd floor, above Bank of Baroda,Cardinal Gracious Road, Chakala,Andheri (E), Mumbai-400 099

Bankers:

Bank of Baroda Union Bank of India State Bank of India ABN Amro Bank Standard Chartered Bank HDFC Bank Ltd. Export-Import Bank of India IDBI Bank Ltd. City Bank N.A. UTI Bank Ltd. ICICI BANK LTD

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In the business world, the only constant is change. Paradigms are remodelled,

visions and business strategies modified, and technologies upgraded in response

to the needs and challenges of a changing world. In other words, organizations have

to change to survive, to remain competitive and to succeed. AARTI INDUSTRIES

LIMITED (AIL) is a dynamic organization, continuously investing in innovative

products and processes, as well as cleaner technologies, to meet shareholder

aspirations and societal expectations.

AARTI was started in the year 1984. The first unit of AARTI group, ALCHEMIE

LABORATORIES, commenced commercial production of DIMETHYL SULPHATE

(DMS) in the year 1975. Today, AARTI has acquired world-class expertise in the

development and manufacturing of basic bulk chemicals, dyes & pigment

intermediates, pharmaceuticals & agrochemicals along with their intermediates,

rubber chemicals, surfactant intermediates and speciality chemicals. AARTI is

amongst the largest producers of Benzene based basic and intermediate chemicals in

India

At AIL, they believe that the pursuit of corporate goals and commitment to

social responsibilities have to go hand in hand. So, while the AIL are one of the

largest producers of benzene-based intermediates in India and are ranked among

the top five producers in the world, the AIL is also an organization alive to their

responsibilities as a good corporate citizen. The people at AIL believe that high

standards of business conduct are integral to earning the trust and respect of

stakeholders and therefore have zero tolerance towards unethical behaviour or

corruption in any of their business dealings.

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AIL is a multi-product, multi-location company manufacturing over 125

products at global-scale. AARTI has manufacturing sites at Gujarat, India (Vapi,

Sarigam & Jhagadia) and at Maharashtra, India (Tarapur & Dombivli). The Tarapur

facility of AIL’s API division.

AARTI has attained a total turnover of US $ 189 million in the year April 2003-

March 2004 with flagship companies AARTI INDUSTRIES LIMITED (AIL) &

AARTI DRUGS LIMITED (ADL) listed on Stock Exchanges. AARTI has a

Subsidiary AARTI HEALTHCARE LIMITED (AHCL), which is engaged in

manufacturing of Active pharma ingredients ranging from Ace Inhibitors,

Broncodialators to Steroids.Recognizing the importance of research, AARTI has

established three full-fledged DSIR (Dept. of Scientific & Industrial Research)-

Government of India recognized R & D centers, which carry innovative product and

process development work.

AARTI INDUSTRIES LTD. is an ISO 9002/GMP certified organization and a

flagship company of the USD 259 million strong Aarti Group. AARTI has the

privilege of catering to the requirements of leading manufacturers of dyes,

pigments, pharmaceuticals, agrochemicals and rubber chemicals in countries such

as USA, UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China,

Russia, etc. AARTI also has representatives in USA & a subsidiary company in UK

to provide better services to its Export Customer.

For the people at AIL, sustainable growth is not an end-point, but an ongoing

process and a life-time commitment. The dedication of AARTI INDUSTRIES

LIMITED to the principles of sustainability is best encapsulated in their company's

motto - "The right chemistry for a better tomorrow". A better tomorrow for our

children and future generation.

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AIL will always be a socially responsible company. The company AIL always

value the active involvement of their people their mission of achieving sustainable

growth. The company also thanks all of their shareholders, customers, business

partners, as also the media, financial institutions, industrial associations, NGOs,

government organizations, neighbouring industries and local communities for

placing their trust in the company i.e. The AARTI INDUSTRIES LIMITED and

being a part of this exciting journey of sustainable growth. At AIL, a sharp focus on

the three main constituents of the "Triple Bottom Line"- economy, society, and

environment – guides their activities towards greater sustainability. AARTI

INDUSTRIES commitment to corporate social responsibility is corroborated by the

company’s emphasis on creating a performance-based ambience for their people,

their respect for human rights and labour welfare, their commitment to high ethical

standards, their initiatives in the areas of health, education and environment

preservation, and their endeavors to create value for the company’s stakeholders.

Over the last two decades, we have acquired world-class expertise in the

development and manufacturing of basic bulk chemicals, dyes & pigment

intermediates, pharmaceuticals & agrochemicals along with their intermediates,

rubber chemicals, surfactant intermediates and speciality chemicals. AIL’s API

division, Aarti Healthcare, makes high-value lifestyle APIs which are used in

manufacturing cardiovascular, antiasthmatic, anti-cancer, anti-thalassaemic, anti-

hypertensive and anti-depressant drugs Exports account for over 40% of our total

sales. At present, AIL export to more than 40 countries worldwide including USA,

UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China and Russia.

Over 60% of AIL’s exports are to developed countries, with more than 40% going to

the EU.

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GOALS

AARTI group is strategically placed to exploit growth opportunities in the

Chemical Industry. In view of its technical expertise and broad base satisfied

clientele in India and abroad, AARTI is looking for global partners and strategic

alliances in areas of mutual interest viz.

o Development of International markets for AARTI's products.

o Toll manufacturing.

o Transfer of Technology / Technical know-how.

VISION STATEMENT

We will be a world-class organization that enhanced value to our customers

and other shareholders by

o Caring for employee to work as motivated terms in open and learning

environment.

o Setting challenge new standards of performance.

o Focusing on total quality, innovation and responsible care towards the

environment.

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MISSION STATEMENT

We are in the problem of manufacture and supply of crop production and

specialty chemicals worldwide providing solutions to optimize farm productivity for

the Indian farmer through out innovate and cost effective product to provide the

customer, better value of money.

Exceed the expectations of our valuable customer for quality of products

and services.

Strive to make continuous important and bring excellence in productivity,

safety, environment and hygiene in all the area of operation.

Emphasize on appropriate training to all the employees and be open to all

their suggestions through team participation.

Strive to make AARTI INDUSTRIES LIMITED of a world-class

organization.

THE COMPETITIVE ADVANTAGE OF AARTI INDUSTREIS LIMITED

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The AARTI INDUSTRIES LIMITED (AIL) considers that their R&D is

quite good which helps the industry in gaining the advantage compared

to their competitors.

The people in the AIL’s R&D department keep on doing the research

work continuously which helps them in gaining more advantage than that

of their competitors i.e. reduction of the cost or increasing the quality of

the product that are to be served to theirs customers.

POSITION OF AARTI INDUSTRIES LIMITED (AIL)

The manufacturing units of the AIL are of global scale and are mostly in the

States of Gujarat and Maharashtra. Both the units are ISO / GMP certified. The plants

are highly incorporated along with Cost-Efficient Manufacturing Process and Low

capital investment and manufacturing more than 100 products. The AARTI

INDUSTRIES LIMITED is ranked amongst top 5 Global manufacturers for their key

product and their continuous R&D support and process improvement is the key for

Company to remain competitive globally.

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SOME KEY FACTS ABOUT AIL

AARTI INDUSTRIES LIMITED is one of the largest producers of benzene-

based basic and intermediate chemicals in India and among the top five

globally.

AARTI INDUSTRIES LIMITED one of the top three producers of Dimethyl

Sulphate in the world.

The AARTI INDUSTRIES LIMITED has a fully backward integrated plant for

Dimethyl Sulphate, i.e., starting from Sulphur and Methanol.

AIL Rs.500 crore company manufacturing Organic chemical and Intermediates

for Vapi unit.

AIL derives about 90 per cent of its revenues from specialty and basic

chemicals.

Through its backward integration manufacturing, AARTI INDUSTRIES

LIMITED acquires the competitive advantage with respect to the availability

of raw materials and reduced cost.

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AIL has the largest installed capacity of chloro-benzene (ONBC and PNBC)

domestically.

The company is adding more fluorine based products in its portfolio.

The company has in recent times been focusing on specialty chemicals and

pharmaceuticals.

AARTI INDUSTRIES LIMITED doubled its sales turnover in the last four

years from Rs 345 crores in 2001-2002 to Rs 786 crores in 2005-2006 whereas

exports increased more than three times during that period from Rs 101

crores in 2001-2002 to Rs 342 crores in 2005-2006.

AARTI INDUSTRIES LIMITED carries out custom synthesis activities and

undertakes contract research & manufacturing.

AARTI INDUSTRIES LIMITED was been presented the star exporter award

for 2004-05 by "The Gujarat Dyestuffs Manufacturers' Association" for earning

the highest foreign exchange from direct export of self-manufactured dyes &

dyes intermediates. This was one of a biggest reward to the AARTI

INDUSTRIES LIMITED for their efficient effort.

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General Rules and Regulation

These are the rules and regulations that the employees of AARTI

INDUSTRIES LIMITED have to pursue stringently and the employees do follow all

these rules and regulations happily for the betterment of their lives as well as the

company.

The Employees cannot bring any kind of unnecessary resources like

matchboxes or cigarette, alcohol, tobacco, etc.

The employee after entering the premises of the AIL should always put on

his identity card with him.

During functioning hours the employees should not meander any where,

devoid of their work and wasting the time.

While entering and departing out of the AARTI’s premises each and every

employee should make an entry by means of purchasing card from the

security office at the main gate of the AIL.

Any employee of AIL should not remain missing or absent without former

informing to his department head and P & A. Dept. unless and until the

explanation of absent is bad health or any urgency that might have

occurred.

Every employee should be dressed in uniform that has been provided to

them by the company while entering the premises of the AIL with the

safety shoes, apron and safety helmet as per pre instructed to them.

Company’s shared value:

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o Global capacities

o Customer Satisfaction

o Quality and logistics

o Continuous cost control

o High value addiction

o Diversified product range

o Loyal work force

o In-house recognized R & D Centers.

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ORGANIZATION CHART

Chairman

Junior Director

Vice President

Mkt. Manager Director Work Personal Manager Excise Officer

Dep. Gen. Manager Prod. Manager Personal Assistant G. M.

Mkt. Officer Maint. Dept. Production Dept. Q.C. Dept. Dispatch Dept. Safety Dept. Security Dept. DGM Official A/c

DGM Organic Div. Acid Div. DGM Dispatch Officer G. M. Security Off. Fin. Exe A/c Asst.

Jun. Exe. GM GM Sen. Chemist Dispatch Assist. Safety Off. Security Asst.

Technician DGM DGM Chemist Safety Asst. Supervisor

Sen. Manager Sen. Manager Lab Assistant Engineer Security Guard Gun Man

Manager Manager Supervisor

SDM SDM Worker

Dep. Manager Dep. Manager

Worker Worker

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HUMAN RESOURCE DEPARTMENT

Human Resource Management is that management which is related with

decisions relating to planning organizing, directing and controlling of the

procurement, development, compensation, integration, maintenance and

separations of human resources to the end that individual, organization and

sociality objectives are accomplished. And the same is done in the AIL. The

objective of the AARTI INDUSTRIES LIMITED is the maintenance of those

relationships on the basis of which organization can get maximum personal

contribution from employees.

As we all know that work of the Human Resource Department is of acquiring,

retaining and maintaining the manpower. The same is in the case of the AARTI

INDUSRTRIES LIMITED the organization tries its best to procure maintain and

retain their employees in their organization.

The Human Resource is important to any labour or capital intensive industries.

So they should place an important position to an industry. The AARTI

INDUSTRIES LIMITED regular undertakes the training activities and other HR

initiatives. As the AIL does work for the societies, it also thinks about its

employees. The company has also continued its scheme for assistance to

employees with a view to ensure that their basic housing needs are fulfilled. The

company has been continuously focusing. On people and processes those to

encourage and realize their full potential through continuous on job learning and

through other HRD initiatives coordinal and harmonious relation with employees

continued to prevail through the year under assess.

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As it is aptly said that Human Resource is an asset for any organization for the

success of any organization human resource play a significant role. If any

company’s Human Resource is not up to the mark or efficient then it affects the

performance of an organization.

Each and every department is linked with another department. One department

forms a stair for the other department in the same way the Human Resource play a

vital role in each and every department whether it is finance department, marketing

department, production/operation department, R & D department or any other. The

manpower must be efficiently employed to get an effective result.

Functions of Human Resource Manager:

The following are main function of human resource manger in AARTI

INDUSTRIES LIMITED:

Application and control of company rules and organization policy.

Recruitment of manpower intended by HOD and approved by management

and top head.

Employee and trainees induction programmed arrangement.

Development of trainees by training and approvals

Transport arrangement for required by employees, guests & customer.

Booking and reservation as required by employees / guests.

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Safety of company material and employees.

Maintenance of first aid material.

Canteen administration

Assistance of meeting and conference

Company occasions arrangements like annual day, Picnic.

Labor welfare activities as decided by management.

Arrangement of uniform, shoes, seasonal wear, safety equipment.

House keeping of company premises.

Casual labor arrangement

Building maintenance and office maintenance

Public relation activities.

Salary wages and perks administration works and recorded keeping.

Telecom related activities

Appraisal assistant of employee for increments , training, promotions

Factory Act related activities

Stationary planning and arrangement.

RECRUITMENT

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Recruitment in simple terms is searching for capable applicants for the job.

Recruitment is attracting and obtaining the eligible candidates so that the right

people are selected for the job.

Recruiting of the individuals or the recruitment process is one of the most vital

and complicated part of an organization. If any error is made in the recruitment

process, then in a straight way it could be seen in the work performance of the

employees and the profits of the company as a single mistake will have an effect on

the result of the organization. As AARTI INDUSTRIES LIMITED is producing

some of the hazardous chemical so for them man power recruitment process is

hard-hitting job.

Recruitment is the generating of the application of applicants for specific

position through many of the sources from them the three common sources are the

advertisement, state employee exchange agencies or a private employment.

According to AARTI INDUSTRIES LIMITED they formulate a selection policy,

due consideration is to be given to organizational requirement as well as technical

and professional dimension of selection procedure adopted by AARTI

INDUSTRIES LIMITED and that it is tailor made to meet its particular needs.

The thoroughness of the procedure depends upon three factors.

Nature of selection.

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Policy of the company.

The length of the probability period or trial period.

The company has also continued their schemes for assistance to employees

with a view to ensure that there basic housing needs are fulfilled. The company has

been continuously focusing. So they should place an important position to

industries. The AIL company regular undertakes the training activities and other

Human Resource initiatives. The Human Resource is important not only to any labor

intensive but to the capital intensive industries also. On people and processes

those to encourage and realize their full potential through continuous on job

learning and through other HRD initiative cordial and harmonious relation with

employee continued to prevail through the year under review.

Human Resource plays a vital role in each and every department whether it is

finance department, marketing department, production/operation department, R&D

department or any other. In an organization the manpower must be efficiently used

to make out the best from them. Human Resource is asset for any organization for

the success of any organization. Human Resource plays an important role. If any

company’s Human Resource is not a standard or not efficient then it affects the

performance of an organization.

Source of Recruitment:

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The sources that are used for the recruitment purpose in AARTI INDUSTRIES

LIMITED are as follows:

Internal sources

Transfer

Promotion

External sources

Advertisement

Educational institution

Labor contractors

Recruitment agencies.

RECRUITMENT PROCEDURE:-

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THE RECRUITMENT PROCESS

The process of recruitment can be explained as under:

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NEWSPAPERAPPLICATION

RECEIVINGAPPLICATION

SORTINGOUT

APPLICATION

II INTERVIEW

FINALIZE

INTERVIEW

OFFERLETTER

JOINING THEORGANIZATION

APPOINTMENTLETTER

INTERVIEW

SORT TEST

WRITTEN TEST

OFFER LETTER

APPOINTMENT LETTER

JOINING THEORGANIZATION


NEWSPAPER APPLICATION:

Very firstly the AIL gives the advertisement in the newspaper so that the

applicants are attracted towards the advertisement and they apply in the company

for the required post. In that newspaper advertisement the AIL gives the required

qualification for the post. So that the applicants who are that qualified and capable

only they apply for the job.

RECEIVING APPLICATION:

After the advertisement placed in the newspapers the AIL receives the

application forms of those candidates who are willing for the job.

SORTING OUT APPLICATIONS:

After the applications being received by the AIL, they do the work of sorting

out the applications. A panel is selected and those people in the panel do the work

of sorting the received applications and then according to those panel members the

candidates who are capable to go a step further i.e. for the interview are being

selecte.

Before the interview the AIL goes for a test for the candidates which is a

written test in which the candidates are given a questionnaire in which the AIL ask

few questions which has to be answered in a written form. After the test the answers

are gone through and then the candidates whose answers are found to be

interesting are further being called out for the interview.

INTERVIEW:

Then the interview is held. Some employees of the AIL from the executive level

are being selected so that those people carry out the interview without any

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biasness. In the interview the employees of the AIL carries on with the question

answer sessions. By this interview the panel gets a clear picture of which people are

competent for the job and can go for the further process of the recruitment.

FINALIZE:

Finally the applicant who is found to be competent enough by the panel is

being finalized after the finalization the employee is asked to go under a physical

checkup under the doctors and submit the report in the AIL.

OFFER OR APPOINTMENT LETTER:

After all the procedures are completed and a clear chit given by the doctors the

employees are being given an offer or an appointment letter to join the organization

the candidate.

SELECTION PROCEDURE

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APPLICATIONFORM

INTERVIEWPHYSICAL

EXAMINATIONREFERENCEFINAL APPROVAL

EMPLOYMENT


THE SELECTION PROCESS

The selection is the process of making a choice or deciding on individuals from

among many. The selection process is of selecting a well deserving, capable and

competent candidate for the given job. The selection can be from within the

organization as well as fresh candidate. If the filling of the job is to be done

internally or from within the organization then it can be done by the promotion and

transfers of the employees but if the filling of the job is via externally then it can be

done through the recruitment and the selection procedure of the organization.

APPLICATION FORM:

The application form is given to the candidates and that the candidates are

asked to fill them. The AIL is very much careful while going on with the selection

process. The AIL not only selects the people from the external source but also from

the internal source.

INTERVIEW:

The AARTI INDUSTRIES LIMITED after the receiving of the application form

from the candidates the company goes for the interview. In the interview the AARTI

INDUSTRIES LIMITED top level management sees to it that the process is carried

out very properly and that the candidates are selected on the basis of their

experience, compatibility, competence, and qualifications. The AIL keeps in mind

that the candidates selected are experienced and that this is the most important

criteria the AIL look at before selecting any of the candidates for their company.

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PHYSICAL EXAMINATION:

The company after going on with the interview process some slot of candidates

are selected and also that the selected candidates are being asked to go for the

physical checkup as the physical checkup may help the AIL to know whether the

candidates are completely healthy or not. The candidates are asked to submit a

report of their fitness in the organization and then the further decisions are being

taken by the organization. As the physical checkup may help the AIL to avoid future

problems.

REFERENCE CHECK:

After the company carries out with the physical checkup of the selected

employees, the company cross checks the reference. For a company reference

check is one of the important criteria while selecting the candidate or while giving

the employment to the applicant.

FINAL APPROVAL:

After the reference check is been completed the next step is to give approval to

that candidate who has completely satisfied the AARTI INDUSTRIES LIMITED

requirement of an employee.

EMPLOYMENT:

After the company has completed all their procedures now is the time to give

the employment to the candidates who are selected by the organization for their

company.

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PROMOTION AND TRANSFER

PROMOTION

AARTI INDUSTRIES LIMITED gives progression to its employees with

enhanced pay, position and employment responsibility all the way through

encouragement by promoting them as per the responsibility and the work done by

the employees as one of the best way of expressing the employees excellent work is

by promotion or by increasing the employee’s remunerations.

PROMOTION CRITERIA

The AARTI INDUSTRIES LIMITED has a promotion policy that, the

promotion to the employees is given on the basis of seniority. AARTI

INDUSTRIES LIMITED has resolute to give promotion after every two years of the

working period of the employees. If an employee is not satisfied of the post he has,

the employee is then sent back to his position for the duration of his promotion

period. As per their resolution the AIL gives promotion to its employees by the way

of their seniority which is 40% and out of 60%, 20% by the way of personal interview

and 40% by performance appraisal so that none of the employees feel that they are

been deceived by the company authority and the well deserved employee is being

given the promotion.

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PROMOTION POLICY

AARTI INDUSTRIES LIMITED has espoused the promotion policy as per the

seniority as well as on the merit basis of the employees. The seniority of employee

is regarded grade wise as per character residence period on the particular grade.

Also the work done by the employees are given significance by the AIL.

TRANSFERS

As we all know that transfer is a cross shifting the employee as per the demand

or a requirement of the employee, causing a movement of an employee from his/her

one job, section, department shift, plant or position to another at some or another

place with that particular departmental salary status and responsibility, etc.

The Aarti Industries Limited follows a well define transfer policy to avoid

any grievances among the employees.

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Periodic Transfer

In the AARTI INDUSTRIES LIMITED periodic type of transfers is mainly for

those departments whose regional areas and sales department are located abroad

or out the country. For that reason the marketing department is the only department

which has the periodic transfer present in it.

The AARTI INDUSTRIES LIMITED has a policy according to that policy the

marketing personals are transferred every four year, so they can come back to the

native state. There are no frequent transfers that exist n the company and they are

avoided in company as the AIL are being concerned of the adverse effects of

transfer on heir employees which is seen in the work of the employees.

Internal Transfer

The internal and the departmental transfer are mostly avoided in the AARTI

INDUSTRIES LIMITED.

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TRAINING AND DEVELOPMENT

Training in AARTI INDUSTRIES LIMITED is given to those people who are

newly employed in the company so as to make them familiar with the industry and

the working condition prevailing in the company.

The trainings that exist in AIL:-

o Induction training

o Health and safety

o Discipline

o TQM

o ISO 9000

o Management development

o To increase productivity.

o To improve quality.

Induction training:

The induction training is given to those of the new employees to make them

familiar with the company as well as the working of the organization.

Discipline:

The discipline refers to the rules and the regulations that prevail in the AARTI

INDUSTRIES LIMITED. As the employees enter in the organization they are

thought and made aware with those rules and regulations so that the employees do

not violate those rules and that the discipline is maintained in the organization

properly.

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Health and safety:

The health and safety of the employees is of the utmost importance for the

company and for that purpose the AIL gives the employees the instruction for their

safety and the compulsory usage of the things which are used for the safety

purpose e.g. gumboots, caps etc. so that the accidents are avoided and health and

safety of people are more concentrated by the organization. So for that reason the

organization motivates the employees for the occupational health, safety and

environment, safety policy, philosophy, accident prevention techniques, safety

procedure etc.

The safety department conducts in plant safety training program on regular

basis.

Chemical emergency, prevention preparedness and response.

Importance and use of safety equipment (Explosive, oxygen, CL-2, HCN,

Monitors, SCBA, ESA, Fire Gas Tight Suit, First Aid-Box)

Total Quality Management: (improving quality)

Total Quality Management (TQM). The quality being the most important part of

the product and it’s selling so for that reason the employees are thought of the

quality management so that they understand the actual and good quality products

and they make a quality product. As the quality gives the clear picture of the

organization the AIL also believes in giving the bet quality products to their

employees.

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REMUNERATION

The remuneration that the AARTI INDUSTRIES LIMITED provides to each of

the employees is as follows

Salary:

The Board of Directors is to be provided with the Salary of Rs.85, 000/- per

month with power to make an annual increment area under discussion to a

maximum amount of Rs.1, 50,000/-per month in respect of salary and privilege up

to 100% of salary.

Commission:

In accumulation to the salary, the whole-time Directors of the AARTI

INDUSTRIES LIMITED shall also be entitled to be paid share in comprehensive

commission calculated at the rate of 1% of not profit of company computed under

section 349 of the companies act, 1956 payable to all company share of such

commission shall be payable after the annual accounts are adopted by the

shareholders.

Perquisites:

Apart from the salary and commission regularly paid, the whole-time

Director shall be permitted with the allowances:

o House rent allowance of Rs.15000/-per month.

o Bonus/ex-gratis: Rs.85000/-per annum.

o Compensation of Medical Expenses and/or Medical Insurance

premiums for self and family members as per company’s policy.

o Personal Accident Insurance as Per Company’s policy.

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The power of modifying any issue i.e. increase or decrease the amount of the

salary or any other and amount of perquisites to be provided by the company

subject to a maximum ceiling of 100% of the salary of the whole-time Director will be

in the hand of the Board of Directors, Whole-time Director shall also be entitled to

following perquisites which shall not include in the computation of the ceiling on

remuneration specified here in:

o Contribution to Provident fund. Contributions to super annulations fund or

annuity fund as per the rules of the company. These will not be included in

the computation of the ceiling on perquisites to the extent these either

singly or put together are not taxable under the Income Tax, 1961.

o Gratuity payable at rate not beyond half a month’s salary for each

completed year of service end.

o Encashment of leave at the end of the tenure.

o Provision of car for business of the company and telephone at residence

shall not be treated as perquisites. Use of car for personal purpose and

personal long distance calls on telephone shall be billed by the company.

The Salary Payments

Salary is usually paid in the first week of every month. Salary officer prepare

covers with the name and personal code No., of employees and the pay slip along

with cash or cheque as per grade.

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Mode of payment in cash or Bank Transfer

Staff- Cash option or Bank Transfer

Officer- Usually Bank Transfer.

The structure of the wages and the salaries

The Human Resource Department also deals with wages and salary system.

For the AIL the happiness and contentment of the employee’s is the main concern,

which is reflected by the health wage and salary structure design in the company.

The AARTI INDUSTRIES LIMITED pursues the minimum wage rate policy that is

fixed by the Government.

The salaries are also determined by the minimum wage rate policy which is

set by the government.

The Salary Diminution

The time office keeps the documentation of staff employees reporting at duty

i.e. the time of entering and the time of leaving. If employees report late on job, in

that case the company cuts the salary of that particular employee. The salary

diminution rules as per the minutes that are delayed by the employee in reporting

themselves to their respective departments are as follows:

o If late by 16 min to 35 min = Pay of half hrs

o If late by 35 min to 45 min = Pay of 45 min

o If late by 46 min to 60 min = Pay of 1 hrs

o If late by 2 hrs. to 3 hrs = Pay of half days

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Enlightenment :-

o For the purpose of this agreement, “Family” means the spouse, the

dependent children and dependent parents, if any, of the whole-time

Director.

o No sitting fee shall be payable to him for attending the meeting of the

Board of Directors or committee thereof.

o The other terms and condition of the agreement are such as are

customarily contained in agreement of similar nature.

The Compensation Packages

The compensation package includes:

Basic + Dearness Allowance + other financial pays like cash canteen

subsidies, washing allowance, shift allowance, contribution of provident fund,

gratuity, medical charges, personal pays, inconvenience allowance, chemical,

and hazardous allowance, etc.

Shift and Working Hours

Timing at AARTI INDUSTRIES LIMITED the shifts are as follows:

General shift 8:00 am to 5:00 pm on all working days.

Lunch time is from 12:00pm to 1:00 pm and 1:00 pm to 2:00 pm.

There are total 3 shifts in the company i.e. morning, evening, and night.

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(Production of AARTI INDUSTRIES LIMITED goes on non stop i.e. continue

round the clock.)

The Industrial Act.

The Industrial Acts that is applicable by Human Resource in the AARTI

INDUSTRIES LIMITED is as follows.

o Factory’s Act, 1948,

o Industrial dispute Act, 1947,

o Minimum Wages Act, 1948,

o Employees provident funds and miscellaneous Act, 1942,

o Payment of Bonus Act,1965,

o Payment of gratitude Act, 1972,

o Payment of wages Act, 1936,

o The Worker men’s compensation Act,1923,

o Apprentice Act,

o The employees State Insurance Act, 1948,

o Contract Labor Act,

o Payment of Gujarat labor welfare fund.

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FACILITIES PROVIDED TO THE WORKERS:

The workers in the AARTI INDUSTRIES LIMITED are considered as an

important part of the company and so the company sees that they provide their

workers with the sufficient amenities for the betterment of the workers of their

company.

Alter the work method so that there is a reduction in any of the possibilities

for straight handling of hazardous materials.

Provide prospect to the workers to talk among them while they are working

so that they can develop a healthy working relations among them.

Ensure the availability of a qualified person for the proper treatment the

workers and first aid equipment with all necessary ointments and medicines

for each kind of infection that may be caused in a chemical industry.

Performing of a regular fitness examination of the workers to notice whether

they are in shape and able-bodied without any illness and if any worker

found in such condition then provide them with ready contact treatment by a

physician or a nurse.

The company also tries to avoid the work of the workers which is in

separation or in a remote area of the unit so as to avoid any kind of mishap.

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SCHEMES

The schemes provided by AARTI INDUSTRIES LIMITED to their employees:

EDUCATION SCHEME

The Scheme decided by the AARTI INDUSTRIES LIMITED for the

Scholarship for education to the children of all their employees. This scheme is for

those children who have top score in their academic year. The scheme decides

scholarship to the children on the basis of their merit.

The applicability of the scheme is that the scheme will be applicable to all

employees of the company and their children studying in STD. 5th to 12th. This will be

free from any biasness from the AARTI’s side. And the deserving child will be

getting the benefits of the scholarship scheme.

After the submission of the concluding result by the children of their academic

year to the specified personnel of AARTI the decisions will be taken. The results

will be clustered as per the academic standard & the child who has topped will be

sponsored for next year school fees. The approximate budget amount already set

and given to the child will be Rs.32000 /-P.A. (Eight students every year x4000/-fees

of each.)

VOLUNTARY RETIREMENT SCHEME

The Human Resource Department has also implemented a special type of

policy for the employees named as Voluntary Retirement scheme. Under this

scheme, if an employee is above 40 years of age and retire voluntary. He will be

entitled to get the minimum 4 month salary excluding the benefit for the remaining

years. And not many but only two employees have gone for this scheme.

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MILK SCHEME

At present AARTI INDUSTRIES LIMITED is giving milk coupons to all of its

employees except some service department that are excluded from the scheme.

Along with the milk coupons, AIL is giving tea allowance to all of its employees @

Rs.4/- per attend.

FUNERAL SCHEME

The scheme is such that Rs. 2500/- to be given to all the employees on behalf of

the society and AARTI INDUSTRIES LIMITED on expiry of any of the dependent

family member. Company will compensate the amount to society. This is a small

way to show the gratitude and the company’s concern towards the employee and

their family.

WELFARE SCHEMES FOR EMPLOYEES

The AARTI INDUSTRIES LIMITED also provides some welfare schemes for

their employees so that they can help their employees in some or the other ways.

Med claim of employees,

Personal accident,

Employees D-link insurances scheme,

Group gratuity scheme,

School admission,

Housing admission,

Cycle loans,

L.I.C through salary.

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PERFORMANCE APPRAISAL

Performance Appraisal is the procedure of evaluating employee’s performance

of their employment in terms of their requirement for purpose of administration

including placement selection for promotion need for training, providing financial

rewards, etc. No firm has a choice as to whether it should or should not appraise

their employees. Just as training is required to be endowed after recruitment of the

employees, performance appraisal is also to be expected.

In AARTI INDUSTRIES LIMITED, Confidential Method is used for

performance appraisal of an employee. For the performance appraisal of the

employee, the superior or head of the department prepares questionnaires, which is

to be filled by their subordinates. In this report the employee describes his

strength, weakness, attitude to work, intelligence, attendance work efficiency, etc.

With the help of this report, the top level can get the complete idea regarding the

employee and his performance in the company. He can take decision regarding

promotion, financial rewards, increments, etc. with the help of the information in the

report. Whatever is the relation of the superior- subordinate they both have to asses

each others performance with complete purity and without any biasness. The

assessment of the executive done by their subordinates and that of the

subordinates or the non-executive done by their executives will be again assessed

by the superiors.

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OBJECTIVE OF PERFORMANCE APPRAISAL

The objective of performance appraisal of the AARTI INDUSTRIES LIMITED

is as follows

o To determine increments and provide a reliable guide for promotion and

transfer to positive of greater responsibility.

o To suggest ways of improving the employees performance when he is not

found to be up to the mark during the review period.

o To maintain individual as well as group development by informing the

employee of his performance standard.

There are two types of appraisal program in the company.

o Form A for the executive and

o Form B for the non- executive

There is no such procedure of the appraisal but the employees are assessed

every at the end of every year. At the end of the year the performance appraisal

program is conducted to know the performance of the employees over whole period

under review. This review states that which employees who are efficient in their

work and needs promotion and that the employees who are incompetent and who

needs training to become effective in the work done by them.

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SELF-APPRAISAL

(To be filled by Appraises)

?What are the responsibilities of your job?

?What do you consider the key areas of your present job?

? In your view what are the major contributions/improvement made by you to the

organization during the period under review

?What are the areas where you could not achieve your desire goal? What were

the reasons?

?What would you consider as your important achievement, Contribution or

improvements in the next 3 month, 6 months & one year?

?What will be the action plan do you decided to achieve the target?

? In order to achieve the specified targets that help do you need from the

organization?

?Are there any intimate problems (Personal or Organizational) which are likely to

come in your way in achieving the enhanced target?

?What co-ordination problems have you faced with your colleagues, other

department, etc. in the organization? Your suggestions to improve the same.

?What steps you have taken to improve the performance of your from donates?

What do your propose to do in the next 3 to 6 months?

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?What training you had in last 12 months?

?Do you have any suggestion for improvement in our organization?

?Are you satisfied with your job, working condition and organization?

?Do you think you need any training, Please specify?

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LEAVE STRUCTUREThe leave structures of AARTI INDUSTRIES LIMITED are as follows.

PAID HOLIDAY :

The employees are permitted to take 8 holidays in a year which are considered

to be the paid holidays, which are declared by the management in the month of

January.

WEEKLY OFF :

If an employee is working in a different branch then for them the weekly off is

on Sunday. This is for the Vapi branch and other branches also except for an

employee who is working at the head office (Mumbai), the weekly off for them is on

Saturday and Sunday.

SICK LEAVE :

As per previously decided by the AARTI INDUSTRIES LIMITED for the

employees 9 days sick leave per annum are on hand and that it is credited on 1st

January every year during the first year of employment, however this leave benefit

will be available on pro-rate basis accumulated. Sick leave can be at the time of

retirement and death of personals only which can be up to a maximum of 72 days.

PRIVILEGE LEAVE :

Privilege leave is available @ 30 days per calendar years, which is credited @

2.5 leave per month for new management staff, @ 2.5 leave per month ID credited

after completion of one month.

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CASUAL LEAVE:

Also the casual leaves are decided by the AARTI INDUSTRIES LIMITED 9

days casual leave per annum is available per and it is credited every year on 1st

Jan during the first year of employment, however this leaves benefit will be

available on pro-rate basis. Since casual leave benefit cannot be carried to the

next year, at the end of the calendar year the outstanding leave balance will

automatically be encased and included in the salary of the subsequent month.

SPECIAL LEAVE:

The managing director under exceptional circumstances will have the prudence

to grant any additional leave, termed as special leave to individuals. Such leave

will normally be leave without pay, except it is for the benefit of the company.

OTHER LEAVES:

The other leaves are as follows they are the Maternity leave, leave after

resignation compensatory leave unauthorized absence etc.

MEDICLAIM POLICY

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The AARTI INDUSTRIES LIMITED is among those fine companies for whom

their employees mean a lot to them. The company always notices that all the

facilities are properly made available to their employees or not. The AIL not only

cares for their employees but also for their family.

The scheme is such that the reimbursement of hospitalization expenses of

the family member i.e. spouse children and dependent parents of the

employee will be given the medclaim policy according to the policy of the

AARTI INDUSTRIES LIMITED.

The eligibility of this scheme is for all those who are voluntarily interested

in this scheme and also for the permanent employees of the company who

are not covered under ESIC scheme of AARTI INDUSTRIES LIMITED.

The contribution for this scheme is monthly deduction of Rs. 20 per family

member and per month from the salary of the employees and the same

amount is to be contributed to the company.

The conditions on this policy are as follows:

Employee should notify the name and relation of the employee with the

family member for which medical scheme is to be applied.

All types of hospitalization expenses (i.e. medicine, expenses excluding

food and convenience) are eligible for reimbursement.

The proof of hospitalization should be cross checked i.e. the

hospitalization and medications bills only.

Reimbursement claim should be supported with doctor’s report and

hospitalization and medications statement or bills only.

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The reimbursement or the Payment of entire amount alleged for the

parents mediclaim and any other will be paid after necessary enquiry

and confirmation of matter and documents.

The working of the department is that five members committee would be

formed among the employee for the scheme with sanction of majority,

for one year.

Out of the members of committee two personals are authorized to pay the

sum as per official mode. These members are having all the powers of

scrutinizing the matters and checking of documents before giving the

payment to employees.

All the contribution collected from employees as well as from company on

monthly basis is to be deposited in society in a separate bank account

maintained for the purpose. All the claims should be settled out of the

funds in decided bank account.

Nature of expenses and diseases should be modified as per consideration

of facts with the prior effects of six months from the date of amendments

done.

All the payments should be paid through cheque after authorization of all

the committee members.

Before finalizing the draft of the scheme, the scheme should be approved

by the senior HRD personal of the company.

SOCIAL RESPONSIBILITY

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AIL, Vapi seeks to fulfill its responsibility towards society through its CSR

activities which mainly cover the areas of health, education, housing, social &

cultural needs and disaster relief and can be broadly categorized into:

Labour & staff welfare

Community welfare

LABOUR & STAFF WELFARE

At AIL, the people believe in fostering an environment that promotes

innovation, rewards performance and provides opportunities to people for growth.

In addition, the company has a range of initiatives in place for attracting and

retaining a high performance work force. The AIL believes in taking care of its

people beyond the agreed terms. Some of their employee welfare programs are as

follows:

Medi-claim insurance policies for all of the employees of AARTI

INDUSTRTIES LIMITED have been obtained covering even hospitalization. The

expenditure on this account has been round about Rs.7, 00,000 per annum.

Recognizing the need for proper housing for all, the Company has disbursed

housing loans to the tune of Rs.1 Crore for its junior staff. These loans are partly

non-repayable and partly interest-free, with long repayment schedules. This has

helped many of the AIL employees to build houses for their families. As of

September 30, 2006, outstanding housing loan dues amounted to Rs 76, 15,540.

Over the last three years, the AARTI INDUSTRIES LIMITED has contributed

around Rs 28, 00,000 to the Aarti Employees Co-operative Fund. AIL provides

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monetary incentives to their employees to motivate them to opt for birth control and

also to cast their vote during local, Vidhan Sabha and Lok Sabha elections.

The Company also provides employees with:

Uniforms, safety shoes, rainy shoes, and raincoats;

Tea allowance, food allowance, and milk allowance;

Cycle and vehicle loans;

Marriage gifts, loans for pooja and festivals;

Financial assistance to cover disaster relief, funeral expenses,

and medical expenses including hospitalization for those not

Covered under the ESIS scheme.

EMPLOYEE WELFARE EXPENSESPeriod Labour Welfare taff Welfare Total Amount

PERIOD LABOUR WELFARE

STAFF WELFARE

TOTALAMOUNT

2004 - 05 Rs 2415729 Rs 917578 Rs 3333307

2005 - 06 Rs 2758586 Rs 547001 Rs 3305587

COMMUNITY WELFARE

The AARTI INDUSTRIES LIMITED has adopted a village in Gujarat inhabited

by Other Backward Castes (OBCs) and another village in Kutch for rehabilitating

earthquake affected people.

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The aim of AIL is to extend their support to a variety of recipients so that as

many as possible can benefit from the company’s financial contributions.

COMMUNITY WELFARE EXPENSES

Total donations in 2004 05: Rs 6,133,438

Total donations in 2005 06: Rs 13,023,500

From the scores of organizations the AIL have donated funds to, a few are

mentioned below:

EDUCATION AND RESEARCH RELATED:

Ashadham Seva Mandal

Hirji Bhojraj & Sons K.V.O. Jain Chhatralaya

Adivasi Education and Charitable Trust

Mumbai University Institute of Chemical Technology

Association for Research in Homeopathy

Rural Agro Research & Development Society

HEALTHCARE RELATED

Vishwas Hospital Trust

Shushrusha Charitable Trust

Bidada Sarvodaya Trust

Tibetan Medical and Astro Institute

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Hira-Mongi Navneet Hospital, Mulund

Parakh Hospital, Ghatkopar

SOCIAL WORK AND CULTURAL ACTIVITIES RELATED

Kalgad Sarvodaya Trust

Shri Wagad Sarvodaya Trust

Dhanvallabh Charitable Trust

Shri Vardhman Seva Sangh

Geetai Mission

Rovadan Trust

People's Trust

Child Relief and You (CRY) (working for underprivileged children)

Kutch Mahila Vikas Sanghatan (involved with social empowerment of

women)

Shri Mulund K.V.O. Samaj

Gandhi Labour Foundation

Lion's Club of Mulund

Giant's Group of Mandvi - Kutch

Gramin Vikas Samiti (involved with rural development)

Gram Swaraj Samiti (involved with rural development)

Kutch Yuvak Sangh (working for the development of rural youth)

Ankleshwar Industrial Development Society

Vapi Punjabi Charitable Foundation

DISASTER RELIEF WORK RELATED

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The Prime Minister's National Relief Fund (Tsunami relief)

The Gujarat Chief Minister's Relief Fund

Bhojay Sarvodaya Trust (Earthquake relief in Kashmir)

Kutch Navnirman Abhiyaan (Rehabilitation of earthquake affected people

in Kutch)

The village in KUTCH adopted by AARTI INDUSTRIES LIMITED

SUPPORTING ECONOMIC AND INDUSTRIAL DEVELOPMENT IN VAPI

At AIL, Vapi, they believe in actively co-operating with neighboring industries

to address common concerns and solve Business-related problems. The Director of

AIL, Mr. Kirit Mehta, is the President of the Vapi Industries Association (VIA).

He leads the association and takes the necessary initiative for getting basic

common facilities for the members. He also handles the task of making

representations to various bodies for problems related to roads, water supply,

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electricity, pollution control, etc. that obstruct the smooth conducting of business.

Mr. Mehta is well respected for his contributions towards the development of the

chemical industries in Vapi.

CORPORATE SOCIAL RESPONSIBILITY POLICY(CSR)

At AIL, the Corporate Sustainability Department, consisting of a team of senior

management headed by the company’s Managing Director, monitors the company’s

CSR & sustainability strategies and their implementation. The department meets

regularly to review compliance with the company's CSR policy across the different

units and to take informed decisions on related key issues.

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CORPORATE GOVERNANCE

At AIL, integrity, transparency and social responsibility form the core of their

corporate behaviour and characterize the way in which they interact with all those

who have a stake in the company’s success and with the world at large. For AIL,

corporate governance is not a discipline imposed by a Regulator, but something

that stems from the culture of an organization. The principles of corporate

governance guide the company’s Board of Directors, management and the AIL’s

people to create long term sustainable value for their stakeholders.

AIL's Board of Directors consists of a team of technocrats, engineers and

management graduates having rich experience of more than two decades in the

Industry. AIL’s 12-member Board of Directors has both Executive and Non-

executive Directors. The board also comprises of an environment consultant, a

solicitor, an advocate and a chartered accountant as Independent Directors.

The AIL has two Board committees - the Audit Committee and the

Shareholders Grievance Committee. The Board has laid down a Code of Conduct

(posted on our website (www.aartigroup.com) for all the directors and senior

management of the company.

AIL's Corporate Governance framework ensures:

PRAGATI SHARMA

http://www.aartigroup.com/


Sound corporate practices based on integrity, transparency,

accountability, fairness and professionalism - values that are important

for sustained growth, increased efficiency and stakeholder confidence.

Timely flow of information to the Board and its committees.

A sound system of internal control and supervision of business

operations.

Commitment to good HR policies

Independent verification of the Company's financial, and CSR &

sustainability reporting

Timely disclosure of information to all our stakeholders

Compliance with applicable laws, guidelines and regulations

The people at AARTI INDUSTRIES LIMITED commit themselves to Corporate

Social Responsibility (CSR) by conducting their business activities ethically through

a fair and balanced approach, and by being socially responsible and responding to

legal, social & ethical issues arising from their commercial activities.

The people therefore pledge to work towards continual progress in the

following areas:

Respecting their organization's philosophy and striving to be recognized

as a good and esteemed corporate citizen.

Complying with legal requirements, wherever they operate.

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Developing and supplying useful & safe products and improving the

quality of their products and services to be able to contribute to the

progress of society.

Conducting business transactions based on fair and free competition.

Striving to make their workplace vibrant to become an employer of choice

and focusing on acquiring advanced professional skills & expertise in their

field of responsibility.

Protecting the environment, optimizing resource consumption and

ensuring the safety of their people.

Supporting human rights, and actively communicating with the company’s

stakeholders to understand and respect their interests, thus serving and

contributing to their development.

Achieving sustained growth and profitability.

At AIL, the people shall strive to promote CSR activities to maintain a balanced

approach towards economic goals, safety, quality, the environment and the

interests of society, through an effective monitoring of the company’s performance

on key issues covered by the CSR programme.

AARTI INDUSTRIES believe that these initiatives will help them achieve

sustainable development and be recognized as a responsible corporate citizen,

consequently enabling our company to emerge as a modern and global company.

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STRATEGY FOR CSR

AARTI INDUSTRY has few strategies for embedding CSR & its sustainability

into their business activities. The AIL’s strategies for integrating CSR &

sustainability into their management processes and day to day activities are based

on our core values and the principles of the UN Global Compact. The company

people are aware that by making CSR & sustainability an integral part of their

business strategy they will be able to protect the quality of the company’s business

activities, their decision-making processes and their capacity to create value for

their own company and also their valuable stakeholders.

To reach out to AARTI INDUSTRY LIMITED employees, customers and

communities and show their concern for the environment, the AIL:

Emphasize that CSR is a shared responsibility for every member of the AIL

family.

Reward creativity and leadership skills and provide ample opportunities for

personal & professional growth.

Promote team spirit and learning of new skills.

Uphold human rights and the dignity of every employee.

Act promptly on matters related to the health and safety of their people.

Reduce operational costs through energy efficiency, recycling and

innovative use of by-products.

Focus on reducing our environmental footprint and greenhouse gas

emissions.

Invest in new technologies and produce innovative & sustainable products.

React proactively to customer needs.

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Customize solutions to meet customer requirements.

Improve our financial performance to ensure better returns.

Conduct business with transparency and share vital information with

stakeholders.

Encourage our employees to actively participate in community development

activities.

Respect the rights and needs of the communities we operate in.

At AIL; they believe that these strategies will strengthen their platform for

growth.

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FINANCE DEPARTMENT

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INTRODUCTION

“Financial Management is concern with the efficient use of an important

economic resource, namely, Capital funds.”

SCOPE FINANCE DEPARTMENT

In AARTI INDUSTRIES LIMITED the Finance Department deals with the

problems of rising funds and there effective utilization in the business. Various

decisions regarding:

Acquisition of assets.

Specific form of assets where money to be invested.

Composition of its liabilities.

Liabilities are covered under the scope of Finance Department. The three

functions covered all most all finance functions of an organization. And effect the

three major decisions they are:-

o Investment Division

o Finance Division

o Dividend Division

FINANCIAL FUNCTION

Find the cheapest source of finance.

Effective utilization of money.

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Capital is raised through issue of shares, debentures; interoperate

deposits, financial, institutions, commercial papers, etc.

Negotiations with suppliers.

RESPONSIBILITIES OF FINANCE MANAGER

He keeps all the data related to finance and sees that the funds

organization is utilized in the most efficient manner.

He is the most important person in shaping the future of the company

and has a vital role in decision of the allocation of capital.

Nowadays finance manager solves important management problem and

his role is becoming pervasive and significant.

FUNCTIONS OF FINANCE DEPARTMENT AT AIL

Overhead payment like salary, wages etc.

Cash management.

Calculation of interest payment.

Preparing bank reconciliation statement

Payment like PF, income tax.

Maintaining accounting record.

In AARTI INDUSTRIES LIMITED Procure finance from the following Banks

and finance Institutions:

BANK OF BARODA

UNION BANK OF INDIA

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STATE BANK OF INDIA

ICICI. ETC

Basis Of Acquiring Loans

Banks and institutions give loans on basis of net – worth. (Net – Worth =

Capital + Net Reserve)

ESP = profit / No. Of Shares (Earning Per Shares)

Current Ratio

Dept – Equity Ratio

Dividend Of Shares

Board Of director decides the percentage of dividend.

Percentage of dividend depends on profit.

Dividend is not an expense but profit distribution.

Short term sources

I. Internal

Depreciation funds

Provision for taxation

Accrued expenses

II. External

Bank credit

Managing director or directors

When a company is going to prepare any new project the company has to consider the following aspects.

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¤ cost of project

¤ Means of finance

¤ Financial highlights

¤ Product and capacity

Sources of funds

Use of funds

¤ Projected performance

¤ Existing term loan commitments

¤ Existing W.C. facilities

¤ Proposed financial assets

¤ Introduction of product

¤ Company background

¤ Technical aspects

¤ Industry description

¤ Product description and demand supply position.

STRUCTURE:-

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AARTI INDUSTRIES LIMITED had declared an interim dividend of 15%. The

directors of AIL now recommend a final dividend of 21% for the year ended 31st

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CHAIRMANCHAIRMAN

MANAGINGDIRECTOR

MANAGINGDIRECTOR

VICEPRESIDNT

VICEPRESIDNT

GENERALMANAGER

DEPUTYGENERALMANAGER

ACCOUNTOFFICER/CASHER

FINANCEEXECUTIVE

ACCOUNTASSISTANT


march 2002. Total dividend for the year would thus be 36 % and the total dividend

payment would be Rs. 418 lakhs subject to declaration of final dividend at Annual

General Meeting.

ACCOUNTING DIVISION:The books to be maintained in AARTI INDUSTRIES LIMITED are as follows:

Sales accounting

Purchasing accounting

Bank Transition

Cash Transition

Debit notes

Journal voucher

From the above all books, the only description of some books are given below.

RESPONSIBILITY OF FINANCE MANAGER

He keeps all the data related to finance and sees that the funds organization

is utilized in the most efficient manner.

He is the most important person in shaping the future of the company and

has a vital role in decision of the allocation of capital.

Nowadays finance manager solves important management problem and his

role becoming pervasive and significant.

SALES ACCOUNTING

Following is the sales procedure prevailing at the AARTI INDUSTRIES

LIMITED.

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Marketing department gets purchase order through negotiation.

a. Indent is sent the dispatch section. Indent consist of terms of

payment, party’s name, details regarding the goods rate, excise, sales

tax transaction, credit period discount (if applicable).

b. Dispatch section contract finish goods, stores so that they can supply

the necessary material.

c. Finished goods stores communication with excise department and

they carry on their necessary procedure.

d. Preparation of sales registers, ledger account, trail balance, etc. Sale

keeps management information system (MIS).

MIS contains information relating to receivable and sales-product wise and

quantity wise.

PURCHASE ACCOUNTING:

Flow and documents in purchase accounting is as follows:

Step 1

To receive all invoice from purchase department.

To receive all M.R.N. from stores department.

To receive all purchase order from purchase department.

Step 2

To match this document with each with each other.

To attach copy of P.O and MRN with invoices.

Step3

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To process the invoice after comparing the same with MRN and PO.

To forward the document to senior manager for management check.

Step 4

Executive to hire second check to ensure correctness and accuracy.

To put his/her initials on the rubber stamp at the place market for the

purpose.

To forward the document to senior manager for management check.

Step 5

Senior manager to check the document from various angles to ensure

total control.

To put his/her initials on the rubber stamp at the place marked for the

purpose.

To forward the document to account assistant for data entry.

Note:-

Dispatch section on receiving the purchase order co-order with

production department so that the production can be on line with the demand of

the products.

BANK TRANSACTION OPERATION OF BANK ACCOUNT:-AARTI’s major bankers are:

Bank of Baroda,

Punjab national bank,

Dena bank.

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Performs: Maintenance of current account

Maintenance of cash credit account over draft facility.

Preparation of BRS (bank reconciliation statement) every month.

CASH BOOKPerforms:

Petty cash book which petty cashier operates.

Main cash book which dose main cashier operator.

Note: According to the income tax act if the amount exceeds, rupees twenty

thousand then it must be paid by cheque.

OTHER INFORMATION:

Corporate dividend tax means tax on dividend payable by the corporate.

Percentage of transfer to general reserve is based on criteria decided by

company’s Act.

Deferred liability means liability, which is to be paid at later stage.

Rate of department according to income tax is different than that of

company act.

Department not the actual expense but hidden profit.

Balance sheet of AARTI INDUSTRIES LIMITED As on 31st march 2005.

Liabilities Amounts Assets AmountsSHAREHOLDERS’ FUND FIXED ASSETS

Share capital 364047120Gross Block

3772152761Equity share warrants 18456460 Less: Depreciation

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1476802108

Reserves and Surplus 2004085241 =Net Block 2295350653

Capital Work in progress 279752107

LOAN FUNDS

Secured loans 2883205497 INVESMENT 247421512

Unsecured loans 120956656

CURRENT ASSEST,

DEFERRED TAX LOANS AND ADVANCES

LIABILITY 260207942 4282512765LESS: CURRENTLIABILITIES

AND PROVISIONS 1469337743

Net Working Capital 2813175022

MISCELLANEOUS

EXPENDITURE

(To the extent not written off or

adjusted)

Pre-operative Expenses NIL

Deferred Revenue Expenditure 15259622

TOTAL 5650958916 TOTAL 5650958916

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Profit & Loss Account for the year ended 31st March, 2006

INCOMEIncome from operation 7,861,750,467other income 47,810,802Increase in inventory 220,512,506

TOTAL 8,130,073,775

EXPENDITUREManufacturing Expenses 5,765,521,854Purchase of Goods Traded In 601,311,395Office and administration Expenses 86,832,124Selling and Distribution Expenses 518,133,693Interest and financial Charges 204,004,164Non-Operating Expenses and losses 16,244,538

TOTAL 7,192,047,768

Profit Before Depreciation 938,026,007Less: Depreciation 221,869,002Profit Before Tax 716,157,005Less:Provision for taxation(including fringe benefit tax) 162,300,000Profit After Tax 553,857,005Less: Provision for Deffered Tax 63,213,480Profit After deffered Tax 490,643,525Add: Balance of Profit and Loss Account Brought Forward 1,537,363,110Add: Provision for Diminution in the value of Investments-Quoted NILLess: Prior Years' adjustment for others 18,520,032

2,009,486,603less:Transfer to General Resereve 50,000,000

1,959,486,603Less:Dividend 61,888,011Less:Dividend 50,966,597Less:Proposed Dividend 29,123,770Less:Tax On Dividend 19,912,468

Balance Carried Forward To Balance Sheet 1,797,595,757

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Earning Per Share 6.74

RATIO ANALYSIS

A Ratio is simply one number expressed in terms of another, it is an expression

of relationship spelt out by dividing one figure by another. The ratio analyses of the

AARTI INDUSTRIES LIMITED are as follows:

¥ CURRENT RATIO:-

Current Ratio = Current Assets / Current Liabilities

2005 = 3,357,688,435 / 1,162,972,259 = 2.887

2006 = 4,282,512,765 / 1,469,337,743 = 2.914

INTERPRETATION:

A current ratio establishes the relationship between total current assets and

current liabilities. A current ratio of 2:1 is considered ideal as a rule of thumb. The

ratio of AIL is 2.914: 1, indicating a very comfortable liquid position.

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¥ Liquid Ratio:-

Liquid Ratio = Liquid Assets / Liquid Liabilities

Liquid Assets = current Assets – stock

Liquid Liabilities = current Liabilities – Bank overdraft

2005 = 3,357,688,435 – 950,823,968 / 1,162,972,259

= 2,406,864,467 / 1,162,972,259 = 2.069

2006 = 4,282,512,765 – 1,216,471,792 / 1,469,337,743

= 3,066,040,973 / 1,469,337,743 = 2.086

INTERPRETATION:

This ratio is establishes a relation between absolute liquid assets to liquid

liabilities. The ideal ratio is 2:1 and liquid ratio is 2.086:1. It is means the liquidity

position of the company is satisfactory.

¥ Net profit Ratio:-

Net profit Ratio = Net profit *100 / Sales

2005= 472,267,814 *100 / 6,854,771,081 = 6.889

2006=553,857,005 *100 / 7,861,750,467 = 7.04

INTERPRETATION:

It expresses the relationship between net profit and sales. This ratio shows a

better profitability of the firm as compared to the whole industry. This suggests a

satisfactory position.

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¥ Return on capital employed:-

Return on capital employed = Net profit *100 / Share capital +Reserves & Surplus + Long term loan

2005 = 472,267,814 *100 / 2,249,124,783 = 20.997 2006 = 553,857,005 *100 / 3,004,162,153 = 18.436

INTERPRETATION:

The standard return on capital employed is about 15%. Return on capital

employed ratio is 18.436%. These indicate the higher productivity of the capital

employed.

¥ Debt Equity Ratio:-

Debt Equity Ratio = Long term debt / Shareholder’s fund

2005 = 2,249,124,783 / 2,057,899,714 = 1.092

2006 = 3,004,162,153 / 2,386,588,821 = 1.258

INTERPRETATION:

It expresses the relationship between debt and equity. The standard debt-

equity ratio is 2:1. It means for every 2 share there is 1 debt. The debt-equity ratio is

125.8%, this indicates that the states of long-term creditor are move and indicates

week financial structure.

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¥ Capital Turnover ratio:-

Capital Turnover ratio = Net sales / Total Capital Employed

2005 = 6,854,771,081 / 4,504,018,959 = 1.521

2006 = 7,861,750,467 / 5,650,958,916 = 1.391

¥ Return on Share holder’s fund:-

Return on Share holder’s fund = Earning after tax *100 /

Share holder’s fund

2005 = 472,267,814 *100 / 2,057,899,714 =22.95%

2006 = 553,857,005 *100 / 2,386,588,821 =23.20%

¥ Fixed Assets Turnover ratio:-

Fixed Assets Turnover ratio = Net sales / Net Block

2005 = 6,854,771,081 / 1,861,448,777 = 3.682

2006 = 7,861,750,467 / 2,295,350,653 = 3.425

INTERPRETATION:

The ratio establishes a relationship between the fixed assets and sales. The

standard fixed turnover ratio is 5 times. A high ratio indicates better utilization of

fixed assets. A low ratio indicated under utilization of fixed assets. So the

company’s ratio indicates under-utilization of fixed assets.

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¥ Net Working Capital Turnover Ratio:-

Net Working Capital Turnover Ratio = Net sales / Net Working Capital

2005 = 6,854,771,081 / 2,194,716,176 = 3.123

2006 = 7,861,750,467 / 2,813,175,022 = 2.794

INTERPRETATION:

The term working capital refers to excess of current assets over current

liabilities. This ratio establishes a relationship between working capital and sales.

This ratio enables to know efficient utilization of working capital of an organization.

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Shareholding Pattern of AARTI INDUSTRIES LTD as On 31st March 2006

AUTHORIZED CAPITAL:-

9, 00, 00,000 Equity Shares of Rs. 5/- Each

ISSUED, SUBSCRIBED & PAID-UP:-

7, 28, 09,424 Equity Shares of Rs. 5/- Each fully paid up

MARKET PRICE DATA:-

Month Bombay Stock Exchange National Stock Exchange

High(Rs.) Low(Rs.) Volume High(Rs.) Low(Rs.) Volume

Jan 2006 165.80 76.50 513468 165.90 78.55 1029720

Feb 2006 82.20 72.05 538856 82.25 73.50 579879

Mar 2006 85.00 73.00 1422548 86.00 74.00 1098204

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SHAREHOLDING PATTERN AS ON 31ST MARCH 2006

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Category No. of Shares %Promoters – Indian 32724612 44.95Bodies Corporate 1788669 2.45NRIs/OCBs 389064 0.53Banks, Financial Institution 7500 0.01Mutual Funds 8223662 11.29FII 3665654 5.03Public 26010263 35.74Total 72809424 100.00


DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH

2006

No. ofShares

Shareholders Share Held

Number % Number %

Less then 500 8713 54.06 1619101 2.22

501-1000 3519 21.83 2355917 3.24

1001-2000 2726 16.91 3539829 4.86

2001-3000 321 1.99 845174 1.16

3001-4000 152 0.94 554790 0.76

4001-5000 84 0.52 381802 0.52

5001-10000 232 1.44 1655480 2.27

Above 10000 370 2.30 61857331 84.96

Total 16117 100.00 72809424 100.00

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CHARTS

€ TOTAL INCOME

€ EARNING PER SHARE

PRAGATI SHARMA

23.0624.39

30.02

12.78*

6.74#

0

5

10

15

20

25

30

35

(Amount in Rupees)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Earning Per share

345.85

474.32511.59

688.06

790.96

0

100

200

300

400

500

600

700

800

(Rupees in Crores)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Total Income

Series1


€ PROFIT BEFORE & AFTER TAX

€ DIVIDEND PAYOUT

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32.87

29.12

41.05

31.55

50.06

39.56

58.23

47.23

71.62

55.39

0

10

20

30

40

50

60

70

80

(Rupees in Crores)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Profit Before & After Tax

2.43

8.33 7.89

25.00

9.10

23.00

12.26

25.95

14.2

25.64

0

5

10

15

20

25

30

Payout (%)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Dividend Payout


€ NET WORTH

€ BOOK VALUE

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123.75144.56

172.29

203.95

235.29

0

50

100

150

200

250

(Rupees in Crores)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Net worth

101.98

119.13

141.97

56.03*

32.32#

0

20

40

60

80

100

120

140

160

(Amount in Rupees)

2001-02 2002-03 2003-04 2004-05 2005-06

Years

Book Value


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MARKETING DEPARTMENT

INTRODUCTION OF MARKETING

The dictionary definition of Marketing is selling, advertising, promotion, etc.

Marketing affects our day to day life in whatever we do right from buying vegetables

clothes or grocery items. The most eye-catching and best quality is that towards

which everyone is attracted. And to make the product eye-catching and sell your

product in the market what you need to do is marketing of your product.

Marketing is nothing but a consequence of a cautious planning which is to be

done by the people of the company for making their product a success and that to

sell or market their product in the market. Things done with awareness and

complete homework with all the right calculations and complete knowledge the new

developments and happenings in the market would result in the excellent marketing.

Nowadays the organizations have started concentrating on the different ways in

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which they can cater a maximum number of the customers and also how they can

promote their products.

The same is in the case AARTI INDUSTRIES LIMITED. The AIL tries its best

to satisfy their customers by providing with the best quality products. AIL considers

quality of its products as the company’s biggest strength. The AIL by giving the

proper amount of pricing of its products is able to cater a good amount of

customers for the company.

The consumers are at the present time are becoming more and more aware of

the products availability. The customers are becoming choosy and not only

concentrate on the products quality but also on how the companies present their

products in front of them. The customers very carefully observe the features,

design, pricing, and others. By observing each of the details of the product the

customers tries to make perception of the product and then try the product. In

todays competitive world satisfaction of the customer is the most important job of

the companies. So in today’s time the marketing is done according to the needs

wants and the demands of the customers so that whatever the customers needs

that is produced to make the customers satisfied.

AARTI chemical is basically manufacturer of chemical products and the

company has a number of chemicals that are manufactured in the company. Being a

chemical company, consumers may not be directly using AIL's products, and it may

be difficult to see how the chemicals the AIL produce enrich the lives of people. But

the AARTI INDUSTRIES do contribute towards improving their quality of life since

the end users of their products are industries ranging from agrochemicals and dyes

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to speciality chemicals and pharmaceuticals - markets that are critical to long-term

sustainability. By supplying high quality and good value products to their

customers, the AARTI INDUSTRIES LIMITED indirectly help people to have

access to better medicines, fertilizers and diverse items of daily use. In other words,

greening the supply chain management plays a significant role in AIL’s business

strategy.

AIL`s prime activity is to manufacture organic chemicals, mainly benzene-

based intermediates. They also manufacture sulphuric acid and allied products,

which provide basic building blocks to most sectors of the chemical industry.

As the companies seeks for the company who provide quality products and

that the quality products are been produced by the AIL. AARTI INDUSTRIES being

a chemical manufacturing company manufactures benzene based products and that

the distribution of the products of the company is as follows:

o 50% exported

o 30% for sister concern

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o 20% other companies

50% of the manufacturing of AIL’s products is exported to the foreign

countries.

30% of the AIL’s products is used by the sister concern of the AIL.

20% of the manufacturing of the AIL is being sent to the Indian market.

THE COMPETITORS OF AARTI INDUSTRIES LIMITED.

The competitors of AARTI INDUSTRIES LIMITED are as follows:

Alankar Industries

Anami Organics

Apurva chemical

Chirag Organics Pvt Ltd

Kamala Intermediates

Nascent Chemical Ind. Ltd

Micro Fine

Shanti Intermediates Pvt Ltd.

Vapi Acid & chemicals

Vapi Organic Chemical Pvt Ltd

THE CUSTOMERS OF AIL

The customers of the AIL are many in India as well as in the abroad.

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NAME OF THE COMPANY PRODUCTDr Reddy DMS

Bharat chemicals PNCP

Sister concern Drugs & Organics

While trading abroad the AARTI INDUSTRIES LIMITED markets its product to

the European countries the most.

During the year under review, the company has achieved Sales turnover of Rs.

786.18 crores. While in the previous year the sales turnover was Rs. 685.47 crores,

registering a growth of 14.69%.

THE SUPPLIERS OF AIL

There are many companies in the suppliers list of the AIL but some of them

companies that supply chemical raw materials to AIL are as follows:

NAME OF THE COMPANY PRODUCT

Standard Alkaline GSC Chlorine

Reliance Jamnagar & Hajare Benzene

Deepak nitrite nitric Acid

Udaipur rock phospect

Reliance Industries Ltd.

Bharat Petroleum Corporation Ltd.

National Organic Chemical Industries Ltd.

Standard Albalies Ltd.

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National Rayon Corporation Ltd.

Grasim Industries.

Gujarat Narmada Valley Industries Corporation.

Deepak Nitrate ltd.

Transport ltd Dubai.

Helm Chemicals Germany

Universal Chemical Bahrain.

THE STRUCTURE OF AARTI INDUSTRIES LIMITED (AIL) OF MARKETING DEPARTMENT

THE MARKETING OBJECTIVE OF AIL

The marketing objective of the AIL are

PRAGATI SHARMA

MARKETING MANAGER

THE MANAGING DIRECTOR

BOARD OF DIRECTORS

SALES MENS


To make awareness of their product.

To become the leader of chemical manufacturing products.

To earn profit.

To have maximum sales of their product with maximum customers.

Enhancing economic growth

Strengthening social responsibility

Intensifying environmental commitment

Ensuring a better tomorrow

THE HOLISTIC MARKETING APPROACH OF AIL

The traditional way of thinking of the people was marketing is to sell their

product in the market. But with the passage of time the companies have started

thinking in a broad manner now the most important thing for them is to retain their

customer and make a different and a good position of their company in the market.

For that the companies have started adopting the holistic marketing concept.

The holistic marketing concept takes in view not only the customers but also

the relationship of the company with their customers, stakeholders, their

management and the department and each of their other links prevailing in the

market. With all of these maintaining a position in the society is also one of the

important matters.

The AARTI INDUSTRIES LIMITED has maintained a very good relation with

their employees, customers, stakeholders, as well as the society which can be seen

in the welfare done by the AIL.

THE HOLISTIC MARKETING MODEL

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INTERNAL INTEGRATED


We can say that AARTI INDUSTRIES LIMITED also follow the holistic

marketing concept is by the following reasons.

INTERNAL:

The AIL takes care of their employees in a proper way. Right from their senior

management to their employees and staff. Everyone is treated as if a family. The AIL

takes care of the needs and the wants of the employees and that the employees in

return work efficiently and effectively. Also the strategies, principles, recruitment,

selection, and motivation to the employees are done very carefully of each and

every department.

INTEGRATED:

The integrated marketing is the marketing where the task of the marketing of

the products is done. The marketing mix is an essential part of marketing and the 4

P’s is well considered here (Marketing Mix explained in the later part). So the AIL

tries its best to develop its marketing mix.

SOCIALLY RESPONSIBLE:

PRAGATI SHARMA

SOCIALLYRESPONSIBLE

HOLISTICMARKETING

RELATIONSHIP


In today’s world being socially responsible is very important. The AIL has tried

its best to be a socially responsible company by maintaining the ethics and moving

on with the environment al, legal and the community trends of the place it is

situated.

RELATIONSHIP MARKETING:

The relationship marketing is maintaining the relationship with the customers

stakeholders, suppliers distributors etc, and being loyal to each of them. The AIL is

among those companies who does the relationship marketing as the AIL not only

maintains the relationship with each of them but also treat them as their family

whether the customers suppliers distributors are oft the local market or of the

foreign market.

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THE ENVIRONMENT THAT AFFECT THECOMPANY

The company is to be found facing many different environment that affect the

company adversely these environments are the classified under the two

environments they are:

The internal environment and

The external environment.

The internal environments that affect the company are as under

The customers

The public and the customers are the key factor which may prove fruitful

as well as harmful. The customers if properly satisfied would demand

more products and make the company reach at the top but if they are not

satisfied then the company may even shut down. In AIL the customers

are seen as the key part so if they are not satisfied then the company will

have to face problems.

The suppliers

The suppliers are also an important part as the suppliers are the people

who provide us with the basic raw materials so if they are not with the

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company then the company will face problems. If these people are not

satisfied on time then the company would face many problems.

The competitors

Competitors are that part of the company which would affect the

company adversely. As the competitors increase or decrease the price

range or any sort of new innovation that the competitors company does

will have a direct effect on the company itself. (AARTI INDUSTRIES

LIMITED)

The external environments that affect the company are as under

The technological environment

The technology plays a vital role for a company as if the technology

adopted by the company is old and that the competitor has the

technology which is new and involves less amount of money and so the

competitors if they gain the advantage before the company itself then the

competitors will gain a competitive advantage and the will not be able to

achieve the position which the company desires.

The political / legal environment

The political environment is pertaining to the government. If he

government makes any policy which is not in the favor of the company

like increasing the tax rate, increase the export-import duties, or put

more duties on the goods so the company will have to spend more and

this will affect the company adversely.

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CORE COMPETENCIES

The core competencies of AIL are as follows:

Quality and Logistics,

Continuous Cost Control,

High Value Addition,

Diversified Product Range,

Loyal Work Force,

In - House R&D,

Customer Satisfaction.

AARTI INDUSTRIES LIMITED’S CORPORATE VISION

To retain leadership in the domestic market.

To attain a significant presence in global markets.

To become suppliers of choice to leading customers.

To be always committed to employees, customers, shareholders, and

society at large.

AARTI INDUSTRIES SUSTAINABLE GROWTH MISSION

To become one of the most respected organizations in the chemical

industry and a name people trust through quality products and sound

corporate values.

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To grow into a large corporate entity by increasing the company’s reach to

newer global markets, and expanding the company’s product line up

through new product developments.

To use cost-effective and innovative manufacturing methods supported by

proven, eco-friendly and safe technologies.

To become a customer-driven company by providing customized solutions

and services to meet changing customer requirements.

To encourage and nurture a winning organizational culture by focusing on

providing their people opportunities for personal and professional growth.

To maintain a balance between the company’s corporate goals and social

responsibilities.

To create long-term, sustainable growth for all the company’s stake-

holders.

THE MARKETING MIX OF AARTI INDUSTRIES LIMITED

The marketing mix is made up of four elements namely the

Product,

Price,

Place, and

Promotion.

Let us see the marketing mix of AARTI INDUSTRIES LIMITED one by one.

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PRODUCT:-

Product is anything that is offered to a market to satisfy a want or their needs.

The product having nearly all quality, performance, or innovative features are

generally easily accepted by the customers. So a product should possess all of

these qualities so as to retain their customers for an extended time. The products of

the AARTI INDUSTRIES are in the maturity stage of the product life cycle. As in

the maturity stage sales of the product is not too high and not low so the same is in

the case of the AARTI INDUSTRIES product the products sales are not too high

and not too low.

The product portfolio of AARTI CHEMICALS LIMITED portfolio consists of:

1) BENZENE-BASED INTERMEDIATES

2) SULPHURIC ACID & ITS ALLIED PRODUCTS.

3) AGROCHEMICALS & FERTILIZERS

4) ACTIVE PHARMACEUTICAL INGREDIENTS (APIs)

5) OTHER INTERMEDIATES & SPECIALITY CHEMICALS

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THE PRODUCT LINE AND PRODUCT DEPTH

Para Nitro Chloro Benzene (PNCB)

4 - Chloro Nitro Benzene (Para Nitro Chloro Benzene) (100-00-5)

4 - Nitro Aniline (Para Nitro Aniline)-100-01-6

4 - Nitro 1 - Chloro Benzene 2 - Sulphonic Acid (Para Nitro Chloro Benzene Ortho Sulphonic Acid)

4 - Methoxy Aniline (Para Anisidine) (104-94-9)

4 - Amino 4' - Amino Diphenyl Amine 2 - Sulfonic Acid (F.C.Acid (4:4' Diamino D.P.A. 2 S.A.) (119-70-0)

4 - Nitro 4' - Amino Diphenyl Amine 2 - Sulfonic Acid ( Pre. F.C. Acid) (91-29-2)

2,6 Dichloro 4-Nitro Aniline (99-30-9)

2 - Nitro 4 - Methoxy Aniline (Fast Bordeaux GP Base ) (96-96-8)

4, 4 Di Amino Benz Sulphanilide (4,4 D.A.S.A.) (16803-97-7)

4 Nitro 2 Amino Phenol 6 Sulphonic Acid (96-67-3)

Para Phenylene Diamine (PPDA) (106-50-31)

Para Nitro Phenol (100-0-7)

Para Anisidine Meta Sulphonic Acid (13244-33-2)

Para Chloro Aniline (106-47-8)

6 Chloro Para Nitro Aniline (121-87-9)

Para Amino Phenol (123-30-8)

Ortho Nitro Chloro Benzne (ONCB)

3:3 Di Chloro Benzidine Dihydro Chloride

4-Nitro 2-Methoxy Aniline (Para Nitro Ortho Anisidine) (97-52-9)

Ortho Chloro Aniline (95-51-2)

2- Nitro Aniline (Ortho Nitro Aniline ) (88-74-4)

2- Nitro 1- Chloro Benzene 4- Sulphonic Acid (Ortho Nitro Chloro Benzene Para Sulphonic Acid) (121-18-6)

Ortho Amino Phenol Para Sulphonic Acid (98-37-3)

Ortho Anisidine Para Sulphonic Acid (6472-58-8)

2:4 Nitro Amino Diphenylamine Sulphonic Acid

Ortho Chloro Sulpho Phenyl 3- Methyl 5- Parazolone (14580-22-4)

2- Mercapto Benzimidiazole (583-39-1)

2- Chloro Nitro Benzene (Ortho Nitro Chloro Benzene) (88-73-3)

Ortho Anisidine (90-04-0)

Ortho Nitro Anisole (91-23-6)

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Ortho Nitro Aniline Para Sulphonic Acid (616-84-2)

Ortho Phenylene Diamine (95-54-5)

Ortho Nitro Chloro Benzene Sulphonyl Chloride

Dinitro Chloro Benzene (DNCB)

2,4 Dinitro Chloro Benzene (97-00-7)

2,4 Dinitro Aniline (97-02-9)

4- Nitro 2- Amino Phenol (4 NAP) (99-57-0)

2:4 Di Nitro Chloro Benzene Sulphonic Acid (4515-26-8)

Meta Phenylene Diamine 4- Sulphonic Acid(Free Acid)(MPDSA) & Sodium Salt (88-63-1)

Para Dichloro Benzene (PDCB)

1,4 Dichloro Benzene (Para Dichloro Benzene) (106-46-7)

2,5 Dichloro Nitro Benzene (2,5 DCNB) (89-61-2)

4- Chloro 2- Nitro Aniline (Para Chloro Ortho Nitro Aniline) (89-63-4)

2,5 Dichloro Aniline (2,5 DCA) (95-82-9)

2:5 Dichloro 1-(4- Sulphophenyl)-3- Methyl 5- Pyrazolone (84-57-1)

Para Chloro Ortho Anisidine (93-50-5)

4 Chloro Ortho Phenylene Diamine (95-83-0)

4- Chloro 2- Amino Phenol (95-85-2)

2:5 Dichloro Para Nitro Aniline (2,5 DCPNA) (6627-34-5)

4 Chloro 2 Amino Phenol 6 Sulphonic Acid (4 CAPSA) (88-23-3)

2:5 Dichloro Aniline 4 Sulphonic Acid

Ortho Dichloro Benzene (ODCB)

1,2 Dichloro Benzene (Ortho Dichloro Benzene) (95-50-1)

Ortho Chloro Para Anisidine (5345-54-0)

3:4 Dichloro Nitro Benzene (3:4 DCNB) (99-54-7)

3:4 Dichloro Aniline (3:4 DCA) (95-76-1)

2- Chloro 4-Nitro Aniline (Ortho Chloro Para Nitro Aniline) (121-87-9)

6 Bromo 2 Chloro 4 Nitro Aniline (99-29-6)

2:3 Di Chloro Nitro Benzene (3209-22-1)

2:3 Dichloro Aniline (2:3 DCA)

2 Chloro PPDA (615-66-7

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Nitro Benzene

1:4 Sulpho Phenyl 3 Methyl 5 Pyrazolone (1:4 SPMP)

Nitro Benzene (98-95-3)

Meta Nitro Chloro Benzene (MNCB) (121-73-3)

Meta Chloro Aniline (MCA) (108-42-9)

N,N Dihydroxy Ethyl Meta Chloro Aniline (NNDHEMCA) (92-00-2)

Sulfanilic Acid (121-57-3)

1,3 - Dinitro Benzene (Meta Di Nitro Benzene)

Meta Phenylene Di Amine

Meta Uredo Aniline

3- Nitro Aniline (Meta Nitro Aniline)

3- Amino Acetanilide (Meta Amino Acetanilide)

N:N Bis (2 Hydroxyethyl Meta Amino Acetanilide)

Alkylated Anilines & Toluidines

N,N Di Methyl Aniline (DMA)

N,N Di Ethyl Aniline (DEA)

N,N Di Ethyl Meta Toluidine (DEMT)

N-Ethyl Aniline (MEA)

Ethyl Benzyl Aniline (EBA)

Ethyl Benzyl Aniline Sulphonic Acid (EBASA)

N-Ethyl Meta Toluidine (MEMT)

N,N Dimethyl Meta Touldine (DMMT)

N-Ethyl-N-2-Hydroxyethyl-m-Toluidine

N,N - Dimethyl Para-Toluidine (DMPT)

N Ethyl N Benzyl Meta Toluidine (EBMT)

N- Methyl Aniline (MMA)

N Methyl N Benzyl Aniline (MBA)

N Methyl meta Toluidine (MMMT)

N Ethyl Ortho Toluidine (NEOT)

Ethyl Benzyl Meta Toluidine Sulphonic Acid

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Chloro Phenols

2,5 Di Chloro Phenol

4-Chloro Phenol (PCP)

2- Chloro Phenol ( Ortho Chloro Phenol)



2,4,6 Tri Chloro Phenol


3:5 Di Chloro Phenol

3:4 Di Chloro Phenol

Fluoro Compounds

Para Fluoro Nitro Benzene Ortho Fluoro Nitro Benzene Para Fluoro Aniline (4-Fluoro Aniline) Ortho Fluoro Aniline (2-Fluoro Aniline) 3:5 Di Fluoro Nitro Benzene 2:4 Di Fluoro Nitro Benzene 3:5 Di Fluoro Aniline 2:4 Di Fluoro Aniline 1,3 Di Fluoro Benzene 3 Chloro 4 Fluoro Aniline 2:4 Di Chloro Fluoro Benzene 2:4 Di Chloro Acetophenone Para Fluoro Phenol Ortho Fluoro Phenol

Agrochemicals

O,O-Diethyl Quinoxalin 2-YL Phosphorothioate (Quinalphos)

Methyl –2-Benzimidazole Carbamate (Carbendazim)

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Other Major Products

Bulk Drug Intermediates / Speciality Chemicals

4 - Nitro Aniline (Para Nitro Aniline)-100-01-6 Ortho Chloro Aniline (95-51-2) 2- Chloro Nitro Benzene (Ortho Nitro Chloro Benzene) (88-73-3) Ortho Anisidine (90-04-0) Ortho Phenylene Diamine (95-54-5) Di Methyl Sulphate (DMS) 2,5 Dichloro Nitro Benzene (2,5 DCNB) (89-61-2) 4- Chloro 2- Nitro Aniline (Para Chloro Ortho Nitro Aniline) (89-63-4) Para Chloro Ortho Anisidine (93-50-5) 1,2 Dichloro Benzene (Ortho Dichloro Benzene) (95-50-1)

1,3 - Dinitro Benzene (Meta Di Nitro Benzene) Meta Phenylene Di Amine N,N Di Ethyl Meta Toluidine (DEMT) 4-Chloro Phenol (PCP) 2,3 Di Chloro Phenol 3:4 Di Chloro Phenol Mono Chloro Benzene (MCB) Meta Di Chloro Benzene

Mono Chloro Benzene Para Sulphonic Acid

Bulk Pharmaceuticals

DYES

DYES AVAILABLE IN LIQUID FORM

ACID BLUE 15

ACID VIOLET 17 ACID VIOLET 49 ACID BLACK 194 BASIC YELLOW 2 BASIC VIOLET 1 BASIC VIOLET 3 BASIC GREEN 4 BASIC GREEN 1

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Bulk Drugs under R & D

Anti-HypertensivesPerindoprilTrandolaprilCilazepril BronchodilatorsLoteprednolMometasoneCiclesonideFlumethasoneDesonide

Anti-CancerImatinib MesylateCapcetabineIrenotican Anti-DiabeticGlimepiride Anti-DeprresentsZiprasidoneAripiprazoleZaleplonParoxetine HCL

Dyes

DYE CLASS

HUES ACID BASIC DIRECT REACTIVE SOLVENT

YELLOW

17, 23, 3642, 96, 99, 100194, 204,241

2 11, 12, 4450, 111

7, 17, 18, 22 42, 81, 84,145A, 160A

2, 14, 16, 3382

ORANGE

3, 7, 10, 56, 75116, 142162

1, 2 34, 39 4, 12, 13,14, 84

2, 62

BROWN75, 160165, 355365

1 9

RED

18, 52, 73,81, 88, 97,119, 131, 151, 186195, 283357, 362

23, 80, 81 11, 35, 49, 141152, 180A195A, 196

1, 23, 24, 49

VIOLET7, 17, 4985, 90, 92

1, 2, 3, 4,10, 14

9, 51 1, 12 8, 9

BLUE1, 3, 7, 915, 92,158, 193

7, 9, 11, 26

71, 86,199

4, 13, 21, 25,77, 171, 194,203, 250

4, 5, 6

GREEN1, 9, 16, 2550, 68:1,104

1, 4

BLACK

1, 52, 172194, 210234

22, 56, 80160

5, 8, HFGR 27

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QUALITY

Quality is one of the important and basic aspects of marketing. Being a

chemical company, consumers may not be directly using AIL's products, and it may

be difficult to see how the chemicals they produce enrich the lives of people. But

the AIL do contribute towards improving the people’s quality of life since the end

users of their products are industries ranging from agrochemicals and dyes to

speciality chemicals and pharmaceuticals - markets that are critical to long-term

sustainability. By supplying high quality and good value products to their

customers, AIL indirectly help people to have access to better medicines, fertilizers

and diverse items of daily use. In other words, greening the supply chain

management plays a significant role in their business strategy.

DESIGN AND FEATURES

As the product is chemical the design and the features is not possible. The

products (chemicals) in the AIL are either in the powdered form or in the liquid

form.

SIZES

For the solid form, the plastic gunny bags have the minimum size of about 50

kg and the maximum above 450 and this is mostly used for the local market

packaging and the demand of the customers. For the export purpose he plastic

gunny bags are only used but the size of the gunny bag differs. The size turns to be

500 kg when it is sent to the foreign customers.

For the liquid form the containers are used. These containers are packed in

such a way that the chemical does not react with the drums. These drums are of

different sizes

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BRAND NAME

The product i.e. the chemical is marketed in the market in the brand name of

AARTI INDUSTRIES LIMITED (AIL) in INDIA as well as in the foreign markets

SERVICES

The services offered by the AARTI INDUSTRIES to its customers after their

customers receive the order are as follows:

o Product information,

o Safety data sheets,

o Instructions for the of the product if facing any problem,

o Product handling guidance.

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PRICE:-

In what ever we do we do pay price for it. When we purchase certain things, we

make certain things and also that ethically when we are wrong and do anything bad

we pay price for that.

Previously the pricing used to be set with the negotiations of the buyers and

the sellers. The price for which both of them agree used to be the price of the

product. Though at that time also bargaining prevailed but coming up to a price with

both parties agreement was there. In the traditional times the people used to believe

that the things that are of high prices are of very good quality where as in today’s

time the quality is seen first and then the pricing. The customers needs are as kept

in mind while making the product in the same way the pricing of the product are

also kept by keeping in mind the customers and so different segments are been

targeted for the different price and according to them the pricing are kept by the

companies.

The pricing along with the product also plays a significant role in attracting the

customers and some times gaining competitive advantage also. A price if properly

set with a quality product then it would tend the customers to purchase the product.

As many times the customers are ready to pay a good amount of price for the

product but with the expectation of providing quality products to them.

The buyers force the sellers to reduce the prices of their product and that is the

reason for which the discounting system has been emerged so that the buyers get

due benefits of the price reduction and the manufacturers are also in advantage.

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METHOD OF SETTING PRICE BYAARTI INDUSTRIES LIMITED:-

The pricing in the AARTI INDUSTRIES LIMITED are set by the board of

directors with the marketing managers.

The companies also set their pricing in many of the ways. As in small

companies the pricing is set by the boss. Whereas in the big industries the pricing

policies, pricing objectives are set by the product or the department managers and

later on it is approved by the top level management of the industries. Even in AARTI

INDUSTRIES LIMITED the prices are firstly been set by the managers an then it is

given to the top level management with the complete report with reasons of the set

prices and after analyzing the whole report the top level management approves it (if

the prices that are set are proper then the price is finalized and if not it is again

reviewed and then by discussions the prices are set)

And also in some industries where there are different department s like the

finance department, marketing department, human resource department, production

department, research and development, stores department health and safety

department etc. the pricing is the key important area there is a separate pricing

division which determines the appropriate price. And this pricing department

reports to the marketing department, finance department and also the op level

management.

Previously companies used to think that pricing means profitability but now

days with profitability it is getting more customers.

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The following method is followed in setting the pricing of the products.

The prices the chemicals of AARTI INDUSTRIES LIMITED are set in the

following way:

o Firstly the material cost is taken into consideration and counted. He 60% of

the set price is the cost of the raw material involved in the making of the

product.

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EXPENSES(Electricity + water + Wages + salary)

MATERIAL COST

OVERHEAD EXPENSES

PERCENT OF PROFIT

THE PRICE(SELLING PRICE)


o Then the expenses are being calculated that is used or spent in the making

of the product. These expenses are the electricity (power), water expense

(pani) and the salary & wages (pagar) that are considered. These expenses

involve 20% weightage.

o After the expenses the overhead expenses are been considered. These

overhead expenses may be the individual overhead cost. This expense has

20 %of weightage.

o Lastly the percentage of profit is been kept by the company.

o Then finally the selling price of the products is been decided or finalized

by the AIL.

While AARTI INDUSTRIES LIMITED sets its price of a product at that time

the company keeps in mind the following things:

o Prices of that particular product for which the prices are to be set by the

company, with the prices that are kept by the competitors of AIL

o The quality of the product that are to be given to their customers. If the

quality is very high than the prices are charged according to it by the AIL.

PAYMENT PERIOD

The payment period is as such not fixed by the AARTI INDUSTRIES

LIMITED. Sometimes the company takes advance money from the parties

(consumers). It depends upon the consumer/ customer if the customer is old and

important then the maximum period for the payment given to them will be 15 days.

There is as such no policy fixed or decided for the company for the payment.

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PLACE:-

DOMESTIC MARKET OF AIL

AARTI INDUSTRIES LIMITED can be said as one of he largest producer of

benzene based chemical product and intermediary chemicals in India and the

products manufactured by the AARTI INDUSTRIES LIMITED are use in financial

transactions without working with an agent or a broker. By using the internet, the

most used media nowadays. The purchasing agents can search for the best vendors

and also the values.

Nowadays companies are trying to identify the customers who are more

profitable to the company and most importantly who possesses values that are

matching the company’s values in addition. This will help in developing quite a

excellent amount of rapo between the company and its customers / consumers to

carry out a long lasting relationship. As value helps in building relationships so

does the service helps as it is the key point to be considered by the company as by

providing the proper amount of service the company can win the heart of their

customers.

The companies are basing their decision on customer’s lifetime value rather

than on intermediate profit maximization. Each company’s set up of belief and

practice are under going challenges and change. These days all the business

organization tries to do this type of marketing activities and they give main concern

to marketing department because without the marketing tricks the organization will

not exist.

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The chemicals that are mostly sent in Indian markets are the

1) benzene-based intermediates

2) Sulphuric acid & its allied products.

3) Agrochemicals & fertilizers

4) Active pharmaceutical ingredients (apis)

5) Other intermediates & speciality chemicals.

The states in which the AARTI INDUSTRIES LIMITED markets its goods are

as follows:

Gujarat,

Maharashtra,

Hariyana

Himachal Pradesh,

Punjab. And others

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EXPORTS OF THE AARTI INDUSTRIES LIMITED

When the AARTI INDUSTRIES LIMITED realized the fact that the industry

can cope up with their competitors and can also export their products in the foreign

countries they begin exporting their products to the different countries. At that very

time the AARTI INDUSTRIES LIMITED registered itself in the exports of Rs. 684

million which is equivalent to US $16.10 million. Over a year the company has

registered a compounded average annual growth rate of more than 65 per cent.

Each year the AARTI INDUSTRIES LIMITED has seen a favorable rise in the

volume of the exports. The quality then became the focus point of the company as

soon as they realized their growth rate of the company in the foreign market.

Superior quality and international standard generate an ever-rising demand for the

company’s product in the foreign market. As the customers need more and more

quality products so the company produced the products according to the needs of

their customers. This was helping the company in holding a firm grip in the foreign

export market.

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This year the exports of AARTI INDUSTRIES LIMITED has increased from

Rs. 255.04 crores to Rs. 341.61 crores (inclusive of export through trading house

and relevant export benefits) registering the growth of 33.94%. The constant effort is

being made to increase the exports.

The AARTI INDUSTRIES LIMITED has been awarded “STAR EXPORTER

AWARD” for the year 2004-05 by the “Gujarat Dyestuffs Manufacturers Association”

for the highest foreign exchange from Direct Export of self Manufactured Dyes and

Dyes Intermediates.

AARTI’S exports are represented by way of the following chart.

As we can see in the above graph that AARTI INDUSTRIES LIMITED is

exporting most of its goods to Europe. It is because European countries have

stopped the production of the chemical products in most of the parts of the country

due to the environmental reasons. As even they need chemical in make of certain

products and that the chemical production is banned in the country for this reason

AARTI INDUSTRIES LIMITED is going for most or major export of its products in

the European and the African countries.

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The AARTI INDUSTRIES have associated with a subsidiary company,

Alchemie Europe, in the UK, and have representation in the USA to provide better

services to our overseas customers.

ALCHEMIE EUREOPE LIMITED7-9, ST. MARY’S PALACE,BURY LANES, BL9 ODZ,ENGLAND.TEL: + 44-161-763-1624FAX: +44-161-763-1621

Now AARTI INDUSTRIES LIMITED is inexorably working towards the setting

up of the delivery points in their strategic location so as to cater its customer with

all the quality products, services, comforts etc. by reaching to the customers and

provide them with what ever they need and satisfy them in the shortest possible

time to reduce the wastage of time and cost involved. The products that are to be

exported to the different countries are as follows.

Name of the products that are exported by the AIL. (These products are similar

products that are marketed in India)

Para Nitro Chloro Benzene (PNCB)

Ortho Nitro Chloro Benzne (ONCB)

2:4 Dinitro Chloro Benzene (DNCB)

Para Dichloro Benzene (PDCB)

Ortho Dichloro Benzene (ODCB)

Nitro Benzene

Alkylated Anilines & Toluidines

Chloro Phenols

Fluoro Compounds

Agrochemicals

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Other Major Products

o Bulk Drug Intermediates / Speciality Chemicals

o Bulk Pharmaceuticals

o Bulk Drugs under R & D

o Dyes

These are the above chemical products which are exported by the AIL to the

different countries these countries are as follows:-

United States of America,

Germany,

Italy,

Belgium,

Japan,

United Kingdom,

Spain,

Switzerland and

Korea.

The AIL has set up its own Alchemic plant in United Stated of America and

United Kingdom also so as to endow with better service to its North American and

European Markets also that the manufactured goods is delivered to their customers

on time and they do not have to linger too long for the delivery of the product and

also the expenditure and time is not worn out.

With the increasing globalization and the trade among the countries, the

company i.e. the AARTI INDUSTRIES LIMITED is well geared to make its way into

the worlds market and establish its presence among them all.

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PROMOTION:

The AARTI INDUSTRIES LIMITED has no promotion policy. The AARTI

INDUSTRIES LIMITED does not go for any promotion of their chemical

products. The AIL is a specialty chemical manufacturer so the consumers know

that where and whom to contact directly. And the consumers directly contact the

AIL. The advertisement is given just for the complement purpose not for the

promotion purpose. Few ways of promotion done by the AARTI INDUSTRIES

LIMITED is by the following ways.

The AIL gives promotion in the business magazines. E.g. the

publishing directory of VIA (Vapi Industrial Association). The

complementary advertisement is also for some Educational

Institutions if needed or necessary.

The AIL gives the newspapers. If the newspaper people approach

them personally asking for the advertisements then only the AIL

gives the advertisement that too complementary

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PACKAING, LABELLING, WARRANTIES AND GUARANTEES.

PACKAGING

The packaging is considered as the “fifth P” along with the product, price,

place and promotion. How you present the product is felt to be of more importance.

If a product has a good packaging then the customers would be attracted towards

the product as sometimes the outer looks of the product also matters. As now days

the world has become a show business if the thing you present is in a systematic

and attractive way then it will be accepted with open hand and there is no doubt in

this stanza.

When we talk about the product packaging of the AARTI INDUSTRIES

LIMITED, are of two forms they are

Solid form (powder form) and

Liquid form.

So for both of these forms different kind of packaging is required. AARTI

INDUSTRIES LIMITED does the packaging according to the need and the demand

of the customers. The company manages to give the products (chemicals) the kind

of packaging that matches the products characteristic and its adjustability with the

plastic as most of the chemicals are packaged with the plastic. And if the chemical

does not meet the characteristic of the plastic then the packaging material is coated

with something else that can adjust the chemical concentration e.g. Tanker.

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AIL is transporting its liquid chemical in the local market in the tankers. But if

the tanker has the features and the characteristic that does not match with some

chemicals so for that reason the company has come up with solutions that the

tanker is coated with the glass inside so that the chemical concentration does not

react with the tanker and cause any hazard.

Solid form (powder form)

In AARTI INDUSTRIES LIMITED the chemicals are also in the solid form

which is then converted in the small crystals like sugar for the customers. These

solid crystals are mostly packaged in the white plastic gunny bags. These bags are

for the local market as well as for the export purpose also. The plastic gunny bags

minimum size is 50 kg and this is mostly used for the local market packaging and

the demand of the customers.

For the export purpose he plastic gunny bags are only used but the size of the

gunny bag differs. The size turns to be 500 kg when it is sent to the foreign

customers. This bag has such characteristic which matches the chemicals that are

filled in the bags.

Liquid form

In AARTI INDUSTRIES LIMITED the liquid chemicals are mostly sent in big

containers. These containers are packed in such a way that the chemical does not

react with the drums. These drums are of different sizes and he drums are made of

such material which can bear the highly chemical characteristic so that there is no

hazard caused and the chemical reaches the customers safely.

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Even the drums might be of that characteristic which does not match the

characteristic of the chemical so in that case the drums are covered with the metal

of construction according to the physical characteristic of the chemical. So the

plastic containers are coated inside it with the material which does not react with

the chemicals. The transport people keep it when the truck-tanker is used for

sending the chemicals in the local market.

LABELING

The labeling is done by the company in a most simplest and understandable

way. As the labeling is simple the workers also understand it properly and so the

chances of damage of any hazard is reduced and the danger is reduced.

Format of the labeling that is done on the gunny bags which are sent to the

customers by the company. The format of labeling of the domestic and the foreign

market that are on the gunny bags are the same with few more additions done in the

foreign bags format.

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In AARTI INDUSTRIES LIMITED the labeling which is done on the gunny

bags are also done on the drums in which the liquid chemical is being filled or

sending it to the customers.

PRAGATI SHARMA

PARA NITRO CHLORO BENZENE

LOT NO: _____________________________________________

GROSS WEIGHT: _____________________________________

TARE WEIGHT: ______________________________________

NET WEIGHT: ________________________________________

BAG NO: ______________________________________________


MADE IN INDIA

USE NO HOOKS


The above diagram is of the drum for the liquid chemical where in such

information are written such as:

PRAGATI SHARMA

NAME OF THE CHEMICAL

LOT NO: ____________________

GROSS WEIGHT: ____________

TARE WEIGHT: _____________

NET WEIGHT: _______________

BAG NO: ____________________


MADE IN INDIA

HIGHLY POISONOUS


The lot number:

The lot number is there which means that the drum is containing the chemical whose lot number is suppose 56 so that if there is any problem in the chemical than the lot number will help in knowing that whether the whole lot is spoiled or only that particular drum is spoiled.

Gross weight:

Gross weight means the weight of the chemical, whether in solid or liquid forms that is kept in the gunny bags or the drums.

Tare weight:

Tare weight is the weight of the gunny bag or the drum in which the chemical is being filled for transportation.

Net weight:

Net weight is the sum of the gross weight and the tare weight.

Bag number:

The bag number is given to each and every bag. If the lot of the chemical is spoiled then for knowing that in a particular lot which bag is spoiled and easy to see that whether the whole lot is spoiled or only that particular bag or drum is spoiled

WARRENTIES & GUARANTEES:

As AARTI INDUSTRIES LIMITED is a chemical producing company they do not give any warranties and the guarantees as the chemicals of AIL are of the finest quality produced and offered to the customers.

PRAGATI SHARMA


THE DISTRIBUTION CHANNEL OF AIL

The distribution channel of AARTI INDUSTRIES LIMITED is very short and

simple. The VAPI plant manufactures the product. The marketing department

MUMBAI gives the order that they have receive to the VAPI branch. The VAPI

branch then sends the product i.e. the chemicals to the customers as per the orders

given by the marketing department MUMBAI about the customers who have given

orders and are located in the different parts of the country.

The AARTI INDUSTRIES LIMITED make the chemical which are specialty

manufactured so there is no third party the customers directly contact AARTI

INDUSTRIES LIMITED. The distribution channel of AIL also consist of the sales

man’s who move on to the different parts of the country and they give samples of

their product to the companies and the companies they use those products

(chemical) and observe that the product is having all the things which they want

also with excellent quality and if they get it, they do purchase the products. There is

no third party, agent or any distributors of the company.

PRAGATI SHARMA

MANUFACTURER

CUSTOMERS

SALES MENS


MODE OF TRANSPORTATION

The mode of transportation of the Aarti Industries Limited, differ for the local as

well as the foreign market.

The Local Market

The transportation mode in the local or home

market is basically roadways as the means i.e. trucks

and attached tankers on them. The chemical in the

liquid form is sent by tankers in the local market. Also

sometimes the liquid chemicals are transported in the drums. Whereas for the

solid form the company uses normal trucks in which the chemicals are stored in

the gunny bags.

The Export Market

For the export market the big containers are used and in those containers

the chemicals are stored. The solid chemicals are kept in the gunny bags and the

liquid chemicals are stored in the drums and the solid and the liquid chemicals

are kept in the big rectangle containers and they are set for the exporting the

chemicals. The mode of transport while exporting is the sea ways i.e. shipping.

The chemicals from the company move on in a truck till the dock and from the

dock it is shipped.

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GunnyBags


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DISPATCH DEPARTMENT

The AARTI CHEMICALS have a systematic dispatch department. The total

numbers of people working in the department are 8 and all are in the same post. The

marketing department MUMBAI gives the order to the dispatch department VAPI.

The channel flow of the Dispatch Department.

PRAGATI SHARMA

MUMBAI OFFICE


The Mumbai office gives the order to the Dispatch department Vapi.

The Mumbai office gives the order to the dispatch department which is in Vapi.

The dispatch department then confirms the production department whether they

have the products already made in the stocks or not.

If the product is ready (produced previously and kept) then the dispatch

department takes the ready products from the department and directly dispatches

the products i.e. chemicals on the very same day is sent. The dispatch department

gives the order which is to be sent to the customers, to the production department

so that the chemicals are produced before 5 days of the date of dispatching the

order so that there is no delay in the sending of the order and that the company’s

reputation of delivering the products on time is saved and maintained.

Such are the containers which are used for the export purpose these

containers contain the drums in such a way there is no space left and the drums in

PRAGATI SHARMA

DISPATCH DEPARTMENT

PRODUCTION DEPARTMENT

DISPATCH DEPARTMENT


the containers cannot move accidents are so the chances of accidents are reduced.

The same is in the case of the gunny bags.

When the product is sent to the customers for the delivery at that time the

company i.e. the dispatch department gives the truck driver a memo. In that memo

there are some information’s which are to be feeded by the company as well as the

customers to which the product is been sent for the delivery purpose.

The memo consists of the information’s such as:

The date of delivery.

The customers name and address, (To whom the product is being

delivered)

What the product is?

The quantity of the product.

PRAGATI SHARMA


Memo number.

Number of the truck on which the product is sent.

The sign of the person who has taken the product.

Sign of the person who has received the product.

These information’s help when there is any problem or misunderstanding that

has arise due to anything for that purpose he company keeps an account of such

kind of information’s. The memo which is sent has minimum 4 copies. These copies

are issued by the company itself and for the people like:

The main copy for the company itself

Other copy for the customer

Other for the tax and excise department and

Office use i.e. dispatch department.

(As per the company’s rule)

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PRAGATI SHARMA


PRODUCTION DEPARTMENT

MANUFACTURING FACILITIES

AARTI has two API manufacturing plants located at Dombivli and Tarapur in

Maharashtra with total area of about 15000 sq mts, and a reactor volume of more

than 70 M3. The production facility at Dombivli has been designed to meet WHO

GMP standards and Tarapur facility to be commissioned in January of 2005 will be

US FDA compliant.

AARTI INDUSTRIES plants have Stainless Steel and Glass-lined Reactors

ranging from 50L to 3000L capacity. The finishing areas have appropriate air

handling system with terminal filters as required. The process water is designed to

meet USP requirements. Our plant facilities are equipped with multi-mills,

micromeshes etc. that provide products with particle size and bulk density as

required by customers.

ANTI-HYPERTENSIVE

CILAZAPRIL

MOEXIPRIL

ISRADIPINE

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ANTI-PARKINSONIAN

PRAMIPEXOLE

ROPINIROLE

ENTACAPONE

ANTI-ASTHMATIC

MOMETASONE

ANTI-ACNE

ADAPALENE

MACHINE AND EQUIPMENTS

The following are the machine and equipments which are used in the AIL:

Storage tanks Reactors vessel Distillation columns Condensers Pumps Absorber Scrubber Boiler

Boiler is equipment in which steam is produced from water in an economical way i.e. by using cheap but high calorific value fuel.

Steam is required in most of the chemical manufacturing processes.

Types of Boiler:

PRAGATI SHARMA


Depending upon the type of fuel used for steam generation the boilers are divided into different types.

Coal fired boiler Oil fired boiler Agro waste fired boiler

In AIL the steam of 24 kg/cm^2 is generated from oil and coal fired boiler. There are two (18 and 13TPH) coal fired boiler and one (10 TPH) oil fired boiler.

PLANT LAYOUT

Layout:-

Layout refers to the systematic arrangement of facilities in a particular work.

As plant layout is an overall arrangement of the

production process. Store room, stock room, material

handling equipment, employee services & all other

accessories required for facilitating the production in

the factory. It is a Master Blue Print for co-

coordinating all operation performed inside the

factory. The same is we will see of he AARTI

INDUSTRIES LIMITED. How AARTI INDUSTRIES

has managed to arrange the layout of their company

and their company’s layout has helped them to make

their work very efficient while doing.

OBJECTIVES OF PLANT LAYOUT

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To minimize handling and transportation of material

To ensure economic utilization of available floor space.

To ensure efficient control over the various processes of

production.

To minimize cost of production.

To maximize convenience and safety of the workers.

PLANT LAYOUT

PRAGATI SHARMA

SSP

Boiler

Back Security

ACID PLANT SECTION

Fire Fighting

Pump House

AmmoniaStorageTank

Water Reservoir

ETP

3.4 DCNBDistillation

Section

HCL Storage

Acid Storage

DG Section

Safety Dept.

MCBStorageTanks

DMSPlant

PNCBFlaking Section

MCB Plant

Acid Storage

2, 5-DCNB

OPDAPlant

CNSection

DistillationSection

3, 4-DCNB

95% PNCB Crystallization

Crystallization Section

NCB Plant


Types of plant layout

Mainly there are few types of layout that are given below.

Process layout

Product layout

Fixed Position layout

Combined layout

In AARTI INDUSTRY the company follows a combined layout. The combined

layout is relevance of the product layout, process layout or fixed location layout and

their firm meaning is difficult to know. As in the most of the industries and the

companies the combination of the product layout and process layout is noticed. It is

possible to have both types of layout in an efficiently combined form.

PRAGATI SHARMA

BicycleParking

Security

Canteen Administration Bldg.

OHC

Inst.Section

Liq. PNCBStorage

CarParkin

g

Garden

GIDC ROAD


As AARTI INDUSTRY is producing chemical product, they are applying

combination of both product layout and process layout because the machineries

from which they are producing chemical are arranged in accordance to their product

and the way it is to be processed.

MATERIAL HANDELING SYSTEM

It involves the movement of material from one place to another for the purpose

of processing. The material handling equipments are as follows

Cranes

Industrial trucks

Pipe lines.

Pallet.

Fork lifts truck.

PRODUCTION PROCESS

Raw material

The company manufacture its products from the basic raw material-benzene

and sulphuric. The other major raw materials are chlorine nitric acid, ammonia,

caustic soda, and methanol. All these raw material are available freely in sufficient

quantity in the local and international markets. The major suppliers of this raw

material are:-

Reliance industries ltd.

Bharat petroleum corporation ltd.

National organic chemical Industries ltd.

Standard albalies ltd.

PRAGATI SHARMA


National rayon corporation ltd.

Grasim industries.

Gujarat Narmada Valley Industries corporation.

Deepak Nitrate ltd.

Transport ltd Dubai.

Helm chemicals Germany

Universal chemical Bahrain.

Raw material Purity

Mono chlorobenzene 99.99%

Nitric acid 98%

Sulphuric acid 98%

Spent Acid 72%

(Part of sulphuric acid)

PRODUCTION PROCESS:

PRAGATI SHARMA

NITRATOR

NCB

SPENTACID

SEPARATORWASHER

STORAGETANK

P CUT

ETPDRYER

SEPARATOR

MCB,MIX ACID,

NITRIC ACID

WATER


PRODUCTION PROCESS:

Raw material like monochloro benzene, nitric

acid, Sulphuric acid, spent acid (part of Sulphuric

acid) are brought in the plant and before they get

into further process there is tight quality check on

it, it eh material is in proper form then it is sent to

the plant for further proper form then it is sent to

the plant for further processing.

In the plant the raw materials are brought together in a nitrator, in the nitrator

mono chloro benzene is then mixed acid and nitric acid. Then this mixture is further

sent to the separator through pipes as it is in liquid form. Through separator NCB is

obtained which floats above spent acid sediment down. The NCB is now sent to

PRAGATI SHARMA

DISTILLATION STORAGE TANKNCB

CRYSTALLIZATION

ML

PUREONCB

PUREPNCB


washer and spent acid is sent to storage tank. The washer machine is filled with

water in which NCB is washer and separated.

From this the water is sent to ETP. NCB is sent to dryer machine for drying the

remaining water. From dryer machine NCB is sent to storage tank. NCB is now ready

for crystallization process. Through crystallization process pure PNCB is obtained.

ML is also obtained which is sent for distillation process. Through this pure ONCB

is obtained. P-cut is also obtained which is again sent for crystallization process.

From the above process NCB, PNCB, ONCB are obtained. These are in liquid

form when produced. According to customer’s preference they are converted into

flake form or powder form as a required.

Acid section

In turbine there is Sulphate acid which is pumped with dry air latter it is burning

up to 90 c along with putting SO2 it then moved to WHB and putting water in it and it

is converted in to 420c and go in the form of stem to the converter 1 bed. After this

process we get SO3. Remaining portion is moving in to SH for the purpose of

heating and it shift to converter 2nd bed and finally moved into HHE for the purpose

of making cooling and some potion Goggles back to HHE and remaining portion

shifted into SO3 generator 1st and 2nd. Then it is moving into OT 1st and 2nd for the

purpose of mixing and during this process we get some portion of 23% and

remaining portion shifted into absorption tower and during this process some

portion is go back to CHE. In absorption tower sufficient arrangement so that 98%

H2sO4. We can procure and it shifted into converter 4th bed. In this converter some

portion of H2so4 coming from HHE and further it moved into economizer and we get

finish product SO3 and remain portion in the form of gas moved into final

PRAGATI SHARMA


absorption tower for purpose of making 98% H2SO4. Then it further moved into mix

exchanger in form of gas and finally in the form of gas gone out by chimney.

USES

Manufacturing of fertilizer, heavy chemical, coal tar product, dyes,

plastic, paints, and pigment.

Explosive, textile, inorganic fertilizer like super phosphate, sulphates,

etc.

In metal processing use for pickling of steel, in purification of petroleum

product.

Pharmaceuticals, making of alcohols, detergent, insecticides, and

herbicides.

In food industry in manufacturing of starch syrups and other products.

In transfer of lead accumulators or batteries are used.

PRODUCT PROFILE

1) BENZENE BASED INTERMEDIATES

AARTI is amongst the largest manufacturer of Benzene based intermediates in

India with products classified into the following categories:

CHLORINATION of Benzene into MCB, ODCB, PDCB & TCB. AARTI

presently has a chlorination capacity of 70,000 tons per annum - Largest in

India.

NITRATION of MCB into PNCB, ONCB and Dinitration to 2:4 Dinitro

Chloro Benzene with a capacity of 90,000 tons per annum - Largest in

India.

PRAGATI SHARMA


AMMONOLYSIS of Nitro Chloro compounds such as PNCB, ONCB, 2:5

DCNB and 3:4 DCNB in a high pressure batch (autoclave) process. AARTI

is the largest manufacturer of Amination products in India and is making

various amino compounds such as PNA, ONA, OCPNA, PCONA, etc.

REDUCTION of various Nitro compounds such as PNCB, ONCB, MNCB,

ONA, PNA, MDNB, 2:5 DCNB and 3:4 DCNB mainly by catalytic

Hydrogenation to PCA, OCA, MCA, OPDA, PPDA, MPDA, 2:5 DCA & 3:4

DCA respectively. AARTI presently has a reduction capacity of 20,000 tons

per annum

SULPHONATION, METHOXYLATION, CONDENSATION & FLUORINATION

products are also a part of AARTI's range.

ACETYLATION & other chemical reaction facilities to manufacture various

derivatives which are mainly used in Dyes & Pigments.

2) SULPHURIC ACID & IT'S ALLIED PRODUCTS.

AARTI's SULPHURIC ACID PLANT has a capacity of 1, 75,000 tons per

annum where, in addition of 98% Sulphuric Acid, AARTI also manufactures

OLEUMS, SULPHUR TRIOXIDE & CHLORO SULPHONIC ACID.

AARTI has most backward integrated plant for DIMETHYL SULPHATE (the

key methylating agent) i.e. starting from Sulphur & Methanol.

PRAGATI SHARMA


3) BULK PHARMACEUTICALS:

AARTI is making various Bulk Pharmaceuticals in the range of Antidiarrhoeals,

Antiinflammatory, Vitamins, Antiasthama, Anti HIV, Antijetlag / Sleep Disorder, Ace

Inhibitor, Antibiotics & Antidiabetics.

4) AGROCHEMICALS:

These comprise of Quinalphos & Carbendazim.

5) DYES:

AARTI has started getting dyes manufactured on contract basis from the

local manufacturers exclusively for exports.

The AIL have a well equipped quality control laboratory at MUMBAI with

sophisticated equipments like:

o Gas Chromatography Machine, UV/LR Spectrophotometer,

Potentiometric Titration equipments, HPTLC, High Pressure Rotta

Dyer.

o We are now able to supply chromium free dyes in powder & liquid

form for Swimming Pool & Spa applications.

o We supply liquid dyes in Eco friendly packing of IBC Tunner &

powder in biodegradable corrugated boxes.

PRAGATI SHARMA


6) OTHER INTERMEDIATES & SPECIALITY CHEMICALS:

Alkylated Amines and toluidiness,

Chlorophenols,

Fluoro Compounds,

Other specialty chemicals.

ORTHO NITRO CHLORO BENZENE

Product Details

Chemical Name2- Chloro Nitro Benzene (Ortho Nitro Chloro Benzene) (88-73-3)

Chemical Formula C6H4NO2CL

Molecular Formula

CAS No. 88-73-3

PRAGATI SHARMA


Molecular Weight 157.5 Appearence LIGHT YELLOW LIQUID Moisture 1000 PPM MAX. Set point 31.7°C MIN Purity by GC 99.65 % Min.

End Use

DYESTUFF & DYESTUFF INTERMEDIATESPHARMA & PHARMA INTERMEDIATESAGROCHEMICAL INTERMEDIATESSPECIALITY CHEMICALS

DINITRO CHLORO BENZENE

Product Details

Chemical Name 2,4 Dinitro Chloro Benzene (97-00-7)

Chemical Formula C6H3(NO2)2Cl

PRAGATI SHARMA


Molecular Formula

CAS No. 97-00-7

Molecular Weight 202.5

Appearence Pale Yellow to Reddish

PH 6.5 to 8.0

Typical impuriy Insolubles: 0.2 % Max.

Moisture 0.2 % Max.

Set point 48.5 oC to 49.5 oC

Purity by GC 99.0 % Min.

End Use DYESTUFF & DYESTUFF INTERMEDIATES

PARA DICHLORO BENZENE

Product Details

Chemical Name1,4 Dichloro Benzene (Para Dichloro Benzene) (106-46-7)

Chemical Formula C6H4Cl2

PRAGATI SHARMA


Molecular Formula

CAS No. 106-46-7

Molecular Weight 147

Appearence Colourless liquid

Moisture 1000 ppm Max.

Set point 52.5 °C MIN


End Use DYESTUFF & DYESTUFF INTERMEDIATESPHARMA & PHARMA

ORTHO DICHLORO BENZENE

Product details

Chemical Name 1,2 Dichloro Benzene (Ortho Dichloro Benzene) (95-50-1)

Chemical Formula C6H4Cl2

PRAGATI SHARMA


Molecular Formula

CAS No. 95-50-1

Molecular Weight 147

Appearence Colourless liquid


End Use

DYESTUFF & DYESTUFF INTERMEDIATES AGROCHEMICAL INTERMEDIATES SPECIALITY CHEMICALS

NITRO BENZEN

Product details

Chemical Name Nitro Benzene (98-95-3) Chemical Formula C6H5NO2

Molecular Formula

PRAGATI SHARMA


CAS No. 98-95-3 Specification IBP : 208 oC to 210 oC Molecular Weight 123.11 Appearence Colourless liquid in Aniline Melting Point 5.2 oC Boiling Point 210 oC to 211 oC

Typical impuriy DNB content : 0.02 % to 0.03 % Max.,Others : 0.67 % to 0.68 %

Form and Net Weight Tanker load End Use DYESTUFF & DYESTUFF INTERMEDIATES

AGROCHEMICAL INTERMEDIATESProduct DetailsChemical Name 4-Chloro Phenol (PCP) Chemical Formula C6H5ClO

Molecular Formula

CAS No. 106-48-9 Molecular Weight 128.5 Appearence White Yellowish crystalline / fused Odour Phenolic odour

Typical impuriy Di Chloro Phenol, Phenol,2-Chloro Phenol & Others :Less than 1 %

Form and Net Weight 250 kgs. : M.S. Drums

End Use DYESTUFF & DYESTUFF INTERMEDIATES AGROCHEMICAL INTERMEDIATES SPECIALITY CHEMICALS

PARA NITRO CHLORO BENZENE

Product Detail

Chemical Name 4 - Chloro Nitro Benzene (Para Nitro Chloro Benzene) (100-00-5)

Chemical Formula C6H4ClNO2

PRAGATI SHARMA


Molecular Formula

CAS No. 100-00-5.

Molecular Weight 157.5

Appearance Light yellow to yellow flakes

Typical impuriy ONCB:0.50% MAX

Moisture1000 ppm Max.(Flakes) & 1500 ppm Max (Liquid)

Set point 82.2 °C Min. (Flakes) & 81.0 °C (Liquid)

Purity by GC 99.50% Min.

Packaging 250 kg Steel Drum / 18 MT FCL

End Use

DYESTUFF & DYESTUFF INTERMEDIATES PHARMA & PHARMA INTERMEDIATES PIGMENT INTERMEDIATESAGROCHEMICAL INTERMEDIATES

PRAGATI SHARMA


PRAGATI SHARMA


QUALITY CONTROL AND RESEARCH & DEVELOPMENT

Quality:-

Quality is the totality of the features and the

characteristics of a product or services that bear on its

ability to satisfy the stated or implied needs of the

customer. Quality is the sum of the attributes that

describes the product. According to the AIL, the

objectives of quality are listed below.

Being a chemical company, consumers may not be directly using AIL's

products, and it may be difficult to see how the chemicals they produce enrich the

lives of people. But the AIL do contribute towards improving the people’s quality of

life since the end users of our products are industries ranging from agrochemicals

PRAGATI SHARMA


and dyes to speciality chemicals and pharmaceuticals - markets that are critical to

long-term sustainability. By supplying high quality and good value products to our

customers, we indirectly help people to have access to better medicines, fertilizers

and diverse items of daily use. In other words, greening the supply chain

management plays a significant role in our business strategy.

Objective of Quality

AARTI INDUSTRIES is expert in producing (chemicals) a product with a world

class quality. As for AIL their customers play a significant role in their development

in the same way for their customers the quality plays a significant role so the AIL

observes that their product is of the most excellent quality and that their customers

are greatest satisfied with the quality of their product (chemicals).

The objectives of AIL are as follows.

To satisfy the consumer.

To reduce the cost.

To improve the income.

To increase the productivity.

AARTI INDUSTRIES LIMITED has proficiency in developing or innovating

new products & processes that have world class quality. AARTI INDUSTRIES

LIMITED carries on research in various areas and that too with a special emphasis

on pharmaceutical intermediates, Agro intermediates, pharmaceuticals,

Agrochemicals & specialty chemicals.

PRAGATI SHARMA


QUALITY POLICY

Good health cannot be achieved without quality products and quality

manufacturing facilities. We meet all the pharmacopoeias requirements, industry

standards and laws that govern manufacture of APIs & Intermediates. Our Research

facilities and plants are designed to meet world-class standards. Our processes are

will established and have properly documented quality management systems as per

c-GMP guidelines. Our Quality Assurance ensures quality requirements, systems

and procedures to meet c-GMP norms.

A periodic training facility to people ensures compliance of GMP needs.

QUALITY CONTROL

The products quality is influenced at various stages of design, production,

storage, sale, use etc and as design is not in consideration in the AARTI

INDUSTRIES so for them this is excluded from the rest and the rest should be

considered very carefully. For quality control the AARTI INDUSTRIES are checking

the quality of the product in the following ways.

The AARTI INDUSTRIES LIMITED checks the quality of the raw-material

before receiving that raw-material from their suppliers.

The AARTI INDUSTRIES LIMITED verifies the raw-material received from

their suppliers in the laboratory whether that material is of quality or not.

PRAGATI SHARMA


The AARTI INDUSTRIES LIMITED also inspects the quality of the product

in between of the production process to confirm the quality of the product.

The AARTI INDUSTRIES LIMITED examines the product’s quality at the

end of the production process to ensure the best quality of their product

(chemicals).

Thus in this way the AARTI INDUSTRIES LIMITED is controlling the quality

of their product. They are examining that whether the quality of their product is

meeting the customer’s essential criteria and needs or not.

QUALITY MANAGEMENT SYSTEMS:-

AARTI INDUSTRIES LIMITED is and ISO 9001-2000.

Quality assurance:

The AIL is a company which is able to provide a mass goods of uniform

quality. AIL also follows the quality policy according to which it had obtained ISO-

9001, 2000 version certificate (obtained from TUV).

Quality policy:-

AIL leading manufacturer of intermediates and specialty chemicals is

committed to provide quality products and services leading to total customer

satisfaction while conducting business. We shall strive to continually improve

PRAGATI SHARMA


performance, process and system with and aim to be world class in terms of

productivity, safety, occupational health and environmental performance by

harnessing the competence of employees and ensuring their involvement.

Tools used to maintain the quality:

AIL is using various tools to control the quality standards. These are

HPLC: High pressure liquid chromatography

GLC: Gas liquid chromatography

DCS: Digital Control System scrapin

AARTI INDUSTRIES LIMITED has an expertise in developing or innovating

new products and processes that have world-class quality. AARTI INDUSTRIES

LIMITED is doing Research in their own unit, in various areas with special

emphasis on Pharmaceutical Intermediates, Agro Intermediates, Pharmaceuticals,

Agrochemicals and Specialty Chemicals.

AARTI INDUSTRIES LIMITED has fully equipped laboratory with high-tech

advanced instruments and highly qualified technical personnel at their R & D

centers. AARTI’s advanced Analytical Instruments includes the following:

Gas Chromatograph & HPLC Digital Polarimeter

Auto Titrator Digital Melting Point Instrument

UV Visible Spectrophotometer FTIR Spectrophotometer

AARTI at its Pilot Plant facility has R & D Process Equipments like:

PRAGATI SHARMA


Glass Reaction Equipment Glass Lined Reactors

High Pressure Autoclave SS 316 Reactors

Distillation Equipment Centrifuges

Sparkler Filter Air Handling Systems

AARTI's pharmaceutical plants are GMP (goods manufacturing practices)

approved and some of the plants have got ISO 9002 Certification also.

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RESEARCH & DEVELOPMENT

AARTI INUSTRIES LIMITED has fully equipped laboratory with high-tech

advanced instruments & highly qualified technical personnel at its R&D centers that

help the AIL to make the product which is of the paramount quality which also helps

the AIL to cater the number of customers for themselves with the maximum number

of the market share and place the AARTI INDUSTRIES LIMITED among the top

most chemical manufacturing products in the world.

The AARTI INDUSTRIES LIMITED has four state-of-the-art R & D centers,

recognized by DSIR (Dept. of Scientific & Industrial Research), Government of India,

which carry out innovative product and process development work with special

emphasis on pharmaceuticals and speciality chemicals.

The advanced Analytical instruments of AARTI INDUSTRIES LIMITED include:

Centrifuges

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Gas chromatograph & HPLC

Distillation equipment

4Digital Polarimeter

Glass Reaction equipment

Sparkler filter

Air handling system

Auto Titrator

FTIR spectrophotometer

Glasslined Reactors

Uv visible spectrophotometer

High pressure Auticlave

Digital melting point instrument

AARTI`s pharmaceutical plant are GMP approved & some of the plants have

got ISO 9002 certificate.

Areas in which R&D carried out by the company:

The R&D activities are carried out by the company in the areas of

Bulk and pharmaceuticals formulations,

Specialty chemicals and

Intermediate chemicals.

Advantage from R&D:

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The R&D centers of AARTI INDUSTRIES LIMITED at Vapi are showing

satisfactory progress in their development of new products and improvement

in existing product efficiencies.

Future plan of action:

The AARTI INDUSTRIES LIMITED will maintain its R&D activities and

the innovation and development of new products and improvements in existing

product efficiencies.

The company has incurred the following expenditure in research and

development. In the areas of new products and improvement in existing

products efficiencies.

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Expenditure on R&D (Rs. In lakhs) Capital Recurring Total Total R&D expenditure as a percentage of

total turn over -0.27%

131.9156.51188.42


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STORES DEPARTMENT Engineering goods

Small parts

In alphabetical order

Given the code to each part

LIFO method for engineering goods.

Raw material of the chemicals

Chlorine

Nitric acid

Benzene

Methane

Controlling of waste:

Resale in the market

As a fertilizer

NCB

MCB

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PNCB

ONCB Refinery process

COMPONENTS IN THE ENGINEERING STORE

Nut and Bolt Hose Nipple V belt Hex Nipple Gland Thread Pump Flange Copper Tube Needle Valve Impeller Pump Ss Valve short/long Compressor Blend Stainless Steel Pipe Steam Trap IVR Float Valve Shed Glass Siphon Tube Cf bag Metallic Hose Pipe Filter Bag Compressor Joining Gasket Oil seal for gear box in Reactor Rex Rubber PVC Star butch Bush Bolt Sheet Pulley Chalk Gear Box Cotton Mask Motor Reactor Spoon Coupler Disposable cap/Gloves Teflon Gasket Muff Ear Mask SPO Pump Teflon Tape Motor Gumboots Valve Goggles HDP Fitting Rubber/PVC Hand Butterfly Valve Gloves Esteem Valve NRV Wire Brush Tool kit Pump Spares Welding Rod Ball Bearing Pressure Gauge Vacuum

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Water Line Boiler/Electrical Spares

STRUCTURE OF STORE DEPARTMENT

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STORE DEPARTMENT

Raw MaterialStore

PackingMaterial Store

EngineeringMaterial Store


FLOW DIAGRAM OF RECIEPT OF STORE MATERIAL

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Receipt of material and inward entry

PREPARATION OF RMR

Stacking at under Physical inspection by Expert’s Person

Getting Quality report in terms of approved or rejected

Unloading of material in proper pattern at unloading point and verification with vendors challan

Rejected material are returned to concerned vendors

Approved material are kept in proper stacking for consumption as per daily requirement


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OPERETION PROCESS OF STORE DEPARTMENT

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GRR prepared

PurchaseOrder

STORE DEPARTMENT

Material

ACCOUNT DEPARTMENT

Modvat

Invoice

GRN

VENDORS PURCHASE

PurchaseRequisition

EXCISE

Issue of material to plant

Payment


FLOW DIAGRAM FOR GENERATION OF REQUIREMENT OF STORE MATERIAL

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PLANT UTILITY DEPARTMENT

Every plant or industry or human being requires certain basic necessities

without which it would be impossible to function. Necessities like water, air, energy

(power) etc are just these and fall under the category called utilities. It is no wonder

that the utility section is called the heart of the plant.

At AARTI INDUSTRIES LIMITED, the following utilities are created and

consumed such that various other plants producing various products are the major

consumer of this utility. These utilities are mainly:

STEAM High pressure

Low pressure

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Medium pressure

AIR

Process air

Instrumentation air

RAW WATER

POWER

CHILLING WATER

Brine water

Steam

This basic utility is created in bulk at Sulphuric acid plant and Boilers. Advantage of steam

o Easily availableo Relatively cheap to make o Provide a good heat transfer medium

Air

A very important utility for any plant, air is basically used for two main

purposes. Air used is mainly as compressed air which is created by using air

compressor. The end product that is compressed air is then sent for various

purposes depending on its main use. When it is used in the process it is called

process air. When the compressed air is used for pneumatic purpose like Rota

meters, pneumatic valves, which are directly linked to the main digital control room,

it is called instrumentation air.

At AIL Reciprocating air compressor is used. At AIL 350 CFM (cubic feet per

minute) and 320 CFM AC is used, which are in stand by to each other. These are

used for instrumentation air. There are three 100 CFM AC, out of this three, two are

used for process air while the third one is used for making nitrogen gas.

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Power

This utility is required and is often considered as the bloodline of the plant.

3 Phases

The turbine rotates at RPM of 9720. While AIL supply frequency of 50 hertz.

Exposing the generator to such high RPM would lead to damaging of the generator,

so for this introduce a gearbox whose primary aim is to lower the RPM. Here the

gearbox used is specified in terms of the ratio of the turbine blade RPM to generator

RPM. In order to give out power at 50 hertz, the generator must rotate at 1500 RPM.

The gearbox is operated at a ratio of 6:4

In the event that any of the major computer system fail, AIL have a back

up system. The most important feature of the acid plant is revealed here. AIL

operates the back up system in such a manner that the acid plant get top most

priority this is done because the plant I is primarily steam producing unit which

produces acid also using this steam AIL can run the diesel generator. AIL last

option is to lower the load in the power plant, failing which the plant is asked to

shutdown.

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EXTRATION

DE AERATOR CONDENSOR

TRIPPER

GENERATOR

TRANSFORMER

TURBINE GEARBOXBOILER


Raw water

This utility is used mainly for the purpose of being made into steam. The

largest supplier of this is the Gujarat board.

Chilled water

At AIL, two kinds of chillers are used. Thus AIL have ammonia based as well as

Freon-22 as refrigerant. The cooling effect is measured in terms of “tones of

refrigeration”

Ammonia is used as a refrigerant because of particular thermodynamic

properties which enable it to move heat far more efficiently than other refrigerant

gases. It is particular suited to working to in the range approximately 0-15c and

hence widely used in the chemical industries as well as other industries like food

preservation and chilling of milk, dairy product, beer and cold drinks.

Freon22 is used when AIL need temperature of -17c. The working principle

remains same.

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HEALTH AND SAFETY

It is policy of AIL, Vapi to provide more suitable and endangers work to its

workers. It’s also provided safety to visitor, as well as any other people.

Occupational health and safety program are regularly conducted to achieve our

common goal i.e. safety which has been as control of accidental loss.

Emergency Exit:

Provide at least two escape exit with clearly visible emergency sigh on every

floor or in every room.

Keep all the escape ways leading to emergency exit free from obstacles.

Provide enough fire extinguisher of the appropriate type within every reach.

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Safety Audit

The purpose of this exercise is to review all plant and their process and

operation of safety requirement to identify unsafe condition and practices improve

safety and health at work place to prevent accident loss.

Any safety officer or team of management carries out plant wise safety audit

shell at least once in month.

AARTI HEALTH CARE

Aarti Healthcare is US-FDA compliant.

API Division of AARTI INDUSTRIES LTD., Flagship Company of USD 189

Million “AARTI GROUP”, since 1976, exporting to more than 65 countries,

including Developed and developing Markets.

API Division manufacturing APIs, in niche segments Viz: Anti – Hypertensive,

Anti –Asthamatic, Anti-Cancer, Anti- Inflammatory / Anti- Allergic, Anti-

Diabetic, Anti- Depressants, Anti- Thalassaemic. (Please refer to Product List).

Manufacturing Units at Dombivali & Tarapur, in Maharashtra State of India, will

be WHO GMP Approved facilities by End Dec.2003.

Brand New facility upcoming at Tarapur & Vapi, per US-FDA Standard.

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In house R & D Center, with Ultra modern, sophisticated Instruments, equipped

with a Team of Highly skilled scientists, working round the clock on New

Products and Process Improvements.

Expected to receive CoS for Ramipril, Budesonide, Venlafaxine, in year 2004,

for marketing products in Western Europe.

E-DMFs in CTD Formats available for most of the commercialized molecules.

All products match specifications of BP / USP / EP, as applicable.

Esteemed clients in Domestic Market, serviced by us are, Ranbaxy, Sun

Pharma, Cipla, Aristo , Astra- Zeneca Pharma India, Maral Labs., Cadila

Healthcare, German Remedies, Intas, Biotrans, Dr. Reddys Laboratory (DRL)

Per individual client’s need, can also provide “Tailor Made Products” for

physical parameters viz: Particle size (micronised material), Bulk Density etc.,

as well Impurity profile, Methods for Testing etc.

We also offer Intermediates of most of our APIs (Pl. refer to Product List).

Products under Patent will not be sold until Patent expiration in Buyer’s

Country. Purchase of Patented Product will be sole responsibility of the

Buyer.

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SAFETY DEPARTMENT

Safety is essentially meant for protecting human life and property. Elimination

of unsafe condition in all the operating area and prevention of unsafe practices are

given importance by the top management of AIL.

Structure of Safety department

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SAFETYINCHARGE

SAFETYOFFICER

SAFETYASSISTANT

ASSISTANTDEPUTY

MANAGER


Safety slogan:Some of the safety slogans of AIL are as follows:

“What is safety”?

Safety means freedom from danger, security of life.

“Safety begins with me”

“Our aim zero accident.”

“Safety saves sorrow/ it offer security and beings efficiency”

“No safety know pain / know safety no pain”

“Safety needs involvement”

“Alert today tomorrow”

“Accident brings tears/safety brings cheers”

“With accident you gain / sorrow, sufficiency and pain”

“A safety rules breaker is an accident maker”

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SAFETYSUPERVISOR

ENGINEER


“Love is the soul of life, fragrance is the soul of flowers, and energy is the

soul of flower, sage productivity.”

“No job is so important and no service is so urgent that we cannot take

time, to perform or work safety, this time to do things safety can be the

most important, time in our lives”

“Working to gather works, magic may be everywhere but there is no magic

in safety. Just common sense.”

“Care builds carelessness burns.”

Goals of safety, health and environment are:

To prevent injuries and personnel illness.

To maintain work place and surrounding area safe and healthy.

To eliminate any foreseeable occupational and environmental hazard that

may result in fire and damage to property.

To ensure that the ministry of labor, health, safety and welfare regulation

are fully met with.

General safety awareness:

Smoking and consumption of tobacco is strictly prohibited.

Do not run or jump on ladder.

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Wash hands and rinse mouth properly before eating, take bath before going

home.

Don’t eat anywhere in the plant except in canteen.

All employees should wear helmet and shoes in the plant.

Don’t spill any oily substance on the floor.

Use safety belts while working on high altitudes.

Don’t repair any machine/equipments when it is operating condition.

Use flame proof lamp near M.C.B, benzene, ammonia and methanol.

AIL has many “Safe Assembly Point” and under ground tank for preserving the

liquid acid. AIL has 71 boundary point of fire fighting points.

The safety department conducts in plant safety training program on regular

basis.

Chemical emergency, prevention preparedness and response.

Importance and use of safety equipment (Explosive, oxygen, CL-2, HCN,

Monitors, SCBA, ESA, Fire Gas Tight Suit, First Aid-Box)

Use of Personal Protective Equipment.

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There are two type of PPE. They are

Respiratory PPEs

Non-Respiratory PPEs

Respiratory PPE

öö Breathing Apparatus set used while handling gas leakages.

öö Canister mask used while cleaning vessels or reactor internally.

öö Air supply mask used while internal cleaning of vessels

öö Dust mask of protection against dust.

Non-Respiratory PPE

ëë Helmet for protection of head.

ëë Ear plug/ear muff for protection against noise.

ëë Face seal for protection of face.

ëë Safety goggles for protection of eyes.

ëë PVC suit for protection of body and clothes.

ëë Hand gloves for protection of hands.

ëë Apron for protection of clothes.

ëë Welding shoes / safety shoes / gum boots for protection of legs.

ëë Safety belts used while working on height.

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Gas Leakage

Wind direction is observed by seeing wind direction indicator. It is advised

to go into the transverse (90 degree) or opposite direction and reach the

safe assembly point.

Only trained and persons equipped with Breathing apparatus set should

go to the place of emergency.

Make way for the rescue team or first aid team or emergency vehicle.

If a person inhales gas take him to open place. Loose his clothes. Remove

shoes and helmet. If he becomes unconscious, send him immediately to

hospital.

Chemical spillage

If there is contact with face or eyes immediately wash below safety shower

for at least 15 minutes.

If chemical goes in mouth rinse properly with water.

Contact the safety department for treatment.

Emergency preparedness

Water should be readily available at every point by means of fire hydrant.

Fire extinguisher should be easily accessible in every plant.

There should be wind direction indicator and siren.

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Accident occurrences reporting system

In case of fire a siren is blown twice at an interval of 15 seconds.

In case of gas leakage a siren is blown continuously four times for 15

seconds duration.

When situation comes under control a siren is blown for 1 minute.

First aidFirst aid for some common accidents is as follows:

Burn

Shock

Injury or cut

Suffocation

Eye injury

Poisoning

Fracture

Housekeeping

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Accident because of inferior housekeeping.

Scattered thing at work place.

Things falling from above.

Wet or oily floor.

Tumbling over substances nearby.

Fire because of inflammable things and loosely connected electrical

wires.

Sign of inferior housekeeping.

Heaps of garbage and waste.

Uncovered manholes.

Improper hygiene at resting place

Inadequate lighting

Oily and wet floor.

The machine with high speed is uncovered.

Basis of housekeeping

The management should inculcate housekeeping in every worker by

impressing that with superior housekeeping the quality of the product can be

improved and the factory as well as worker will progress.

Inspection list for housekeeping

a) Floor

b) Lighting arrangement

c) Ladders

d) Fire extinguisher

e) Surrounding bushes and plants.

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Advantage of housekeeping

a) Work will be fast and safe

b) Health of worker will be good.

c) Workers will feel secure.

d) Relation between worker and management is improved

e) Quality for the product is enhanced

f) Everyone will be disciplined.

Runway reaction(thermal explosion):

It’s the consequences of the loss of control of the temperature of chemical

compound or a reaction mixture in an enclosure.

Consequences of runway reaction:-

i. It results in the emission of a two phase mixture of gas and liquid to the

atmosphere giving an aerosol.

ii. In open air aerosol can ignite due to oxidation of hot gases and droplets

with air of possibly to the occurrences of electric sparks.

iii. The emission of reaction mixture in housing area can cause serious

problems.

Causes of runway reaction:-

i. Any deviation from process condition.

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ii. Lack of experimental information necessary for risk assessment, choice

of safe choices.

iii. Lack of consequence of runway reactions.

Types of thermal explosions:-

a) Homogenous thermal explosion :- it includes

Reactor under heating condition.

Reactor under cooling condition.

Reactor under heating condition with high heat flux applied.

Other initiating agent.

b) Heterogeneous thermal explosion:- it includes

Storage vessel hazards

Process deviation parameters

Fast propagating reactions

SAFETY HEALTH AND ENVIRONMENT POLICY (SHE POLICY)

"As a responsible organization engaged in the business of manufacturing

chemicals, we, at AARTI INDUSTRIES LIMITED, Vapi, shall strive to ensure

improvement in all aspects of our Safety, Health and Environment (SHE)

performance related to our activities, products and services, through an effective

implementation, monitoring and periodic review of the designed SHE Management

System."

With respect to the above, we pledge to:

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Ensure continual improvement in the SHE Management System

Comply with applicable SHE legal requirements

Institutionalize effective resource management, with a specific

focus on energy, water and basic raw materials

Strengthen pollution prevention & waste reduction practices

and strive to provide a safe and healthy environment

Enhance SHE Management System awareness about the

desirable practices to be followed by employees and other concerned

stakeholders, through proper communication.

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SHE INITIATIVES FOR THE YEAR 2005-2006

Three new flame-proof safety torches procured.

Non-sparking tools procured.

Serial numbers provided to all welding machines.

HAZOP study and risk assessment being carried out.

Recommonded for ISO 14001 & OHSAS 18001 certification.

Specific focus on conservation and reduction in consumption of primary

raw materials, energy and water.

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Scrubber system for NOx & HCl modified for better efficiency.

Online Benzene sensor installed in MCB Plant.

Implemented the new hot work permit system. Started providing fire

extinguisher from safety dept. to avoid misuse of plant fire extinguishers.

Air moisture removal filter installed in fresh air line in chlorine shed.

Implemented the safety work permit system for CNA and Methanol tanker

unloading.

Acid spillage transfer arrangement made during emergency in Acid plant.

Emergency training imparted for dealing with cyclones.

Special training sessions organized on skin diseases, AIDS, First Aid and

M.S.D.S. by inviting external experts.

Leaflets in Hindi & Gujarati language for emergency preparedness

distributed to all employees.

Formulated fire-fighting and rescue squad and trained them to be ready for

tackling any emergency.

Hepatitis 'B' injection given to all employees and family members.

Pre-employment medical check-up & yearly medical check-up of existing

employees carried out.

Eye test of all DMS employees done. Power with photo chromic/without

photo chromic lens provided to all DMS employees.

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Conferring of the Best Housekeeping Award started.

World Environment Day celebrated on 5th June. GPCB members were

present on this occasion.

Complied with all legal requirements.

AARTI IN THE PROCESS OF HANDLING HAZARIOUS CHEMICALS

AARTI has developed considerable expertise in the reactions mentioned below

& in handling the hazardous chemical involved therein. AARTI also has wealth of

experience in unit operations such as DISTILLATION & CRYSTALLISATION. Based

on these experiences, AARTI is strategically placed to undertake customized

synthesis of organic chemical products.

CUSTOM SYNTHESIS IN FOLLOWING REACTIONS

Nitration Reduction

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Condensation Oxidation Sulphonation Methoxylation Acetylation Grignard Reaction Aldol Condensation Acylation Alkylation Michael Addtion Esterification (Including Asymmetric Esterification) Meerwin - Pondorf - Verley Reduction Cyclocondensation Epoxidation (Chiral & Achiral) Dehalohydrogenation Noble Metal Hydrogenation (Catalytic Reduction) Fischer Indolization Ammonolysis (Amidation) Balz - Schiemann (Halex)

Halogenation (Cl, Br, I)

Hydroxylation

Vilsmeier - Haack Formulation

Ullmann Substitutions

Kolbe - Schmidt Carboxylation

Diazotization & Related Chemistry

Oppenauer Oxidation

Friedel Craft

Japp - Klingemann

Sharples Oxidation

Birch Reduction

Cyanation

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EXPERTISE IN HANDLING HAZARDOUS CHEMICALS

Benzene

Liquid Chlorine

Hydrogen

Liquid Ammonia

Thionyl Chloride

Sulphur Trioxide

Sulphur

Dimethyl Sulphate

Chloro Sulphonic Acid

Potassium Fluoride

Concentrated Nitric Acid

Hydrogen Fluoride

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MAINTENANCE DEPARTMENT

The maintenance of plant is important for the smooth running of any company.

AIL following three types of maintenance are done. They are as follows

Electrical maintenance

Civil maintenance

Mechanical maintenance

Electrical maintenanceThe electrical maintenance includes the maintenance of the following factor:

a. Motors

b. Telephone system

c. Electrical installation

d. Switch gears

e. Meters

f. Generators

g. Lighting

h. Fans

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Civil maintenanceThe civil maintenance mainly includes the maintenance of the following. They

are as follows:

a. Building construction

b. Service facilities (water, A/C, ventilation)

c. Fire fighting

d. House keeping

e. Scrap disposal

f. Janitor

g. Gardening

h. Drainage

Mechanical maintenance

The mechanical maintenance mainly includes the following factors:

a. Machine and equipments

b. Transport vehicles

c. Material handling equipment

d. Steam turbine and electricity.

Type of maintenances used in AIL:

Reactive maintenances.

Preventive maintenance.

Benefits of locations

It is an GIDC area

Convenient in infrastructure.

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Easy availability of local employment.

Convenience in transportation through rail and road

Good earnings.

Availability of market

Better communication system

Availability of water and electricity supply

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EFFLUENT TREATMENT PLANT

All the AARTI’s large scale manufacturing units have their own Effluent

Treatment Plant (ETP) with facilities for Primary, Secondary and Tertiary treatment

of effluent. In Sarigam, Gujarat, under the initiative of AIL, all the small units have

formed a new company named "Perfect Enviro Control Systems Pvt. Ltd." and have

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set up a Common Effluent Treatment Plant, which is the first private ETP facility.

This effort has been well appreciated by the World Bank. Our other small

manufacturing units are the members of the Common Effluent Treatment Plants in

their respective regions.

ETP section play very important role in AIL. In this section there is only two

person’s working. The HOD of this section is Mr. Maruti Patil.

Responsibility

The following are main responsibility of ETP section:

They control total area of south Gujarat.

They provide training to employees about function of computer.

All the maintenance and repairs of computers.

They provide software program as well as hardware function to other

department of the organization as per requirement.

Proper watch the user about their proper function.

It after training also, employee is not proper working inform to General

Manager.

If there is any break down of system, it is their responsibility to provide

and make workable as soon as possible.

They provide new developed programmers to required department

Purchase of system is also the responsibility of ETP section.

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Effluent is any waste material produced during the course of various

manufacturing process in any industry or for that matter chemical industry. Waste

water can be classified as:

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OLD NEUTRALIZER

PRIMARY CLARIFIER

DECANTER CENTRIFUGE

BIOREACTOREQUALIZATION TANKSTORE

WATER PIT

SLUDGE COLLECTOR

REFINEMENT TANK

SECONDARYCLARIFIER

V-NUTCH CHAMBER

ACTIVATED CARBON COLUMN

FINAL OUTLET CHAMBER SLUDGE DRYING

BED


Domestic waste water.

Process waste water.

Cooling waste water.

To treat this waste water before letting it anywhere is mandatory and requires a

series of stepwise systematic processing called as “Effluent treatment plant”.

It is also very important to meet the ever increasing stringent emission norms

of Pollution control boards; AIL is controlled by G.P.C.B. (GUJRAT POLLUTION

CONTROL BOARD), which is the controlling authority; hence the need for studying

ETP.

The stepwise working of the ETP here can be explained as follows:-

1)STORE WATER PIT:-

The effluent from various plants first comes to a holding tank where oil, Grease

and solids are separated. The remaining stream goes to the equalization cum

neutralization unit via 3 pumps of 5 HP, 10 HP, and 10 HP and flow rate of 8m/hr.

2)EQUALIZATION TANK:-

It’s the heart of ETP, because all the variations occurring in the plant is stabilized here. It’s a simple tank with a capacity provided 15% extra considering

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emergency situations. Here we have two equalization tanks. Here we can add some neutralizing, coagulating and flocculating agents.

The tiles of the equalization tank are made of a resin called as C.N.S.S.L. and are acid proof. The mastic work consist of lining of brick tiles

3)DECANTER CENTRIFUGE:-

After neutralizing by caustic, we send it to flash mixer where we add

polyelectrolyte (heavy resins) to flocculate the small particles to from bigger

particles. Then the stream is sent to primary clarifier. The input stream is sent to

primary clarifier. The input stream of slurry to the decanter centrifuge should be

maintained below 20%.

4)PRIMARY CLARIFIER:-

Basically it is like a sedimentation process where smaller particles are

coalesced and then separated. For this an agitator where a proper RPM is

maintained is required, so that the particles are coalesced and not broken and our

objective is achieved. The heavy particles settle down and removed as sludge

drying bed. About 80% treatment is done in primary clarifier.

5)BIO-REACTOR:-

The overflow of the primary clarifier goes to the bioreactor where bacteria are

fed with food and nutrients like jaggery, diammonium phosphate (DAP), etc. the

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bacteria averages 0.5 to 1 micrometer in diameter. Some standard conditions are

required to be maintained which are as follows:-

PH: It is maintained between 5.5 to 6.5 for minimum impact on the

environment. Bicarbonate alkalinity is required to keep this pH at

right levels.

Temperature: It normally ranges from 25 to 30 C.

Dissolved oxygen: The bacterium requires some additional oxygen

for their survival. The minimum value to be maintained is around 5

mg/L. for this an agitator is used.

We use Activated Sludge Process (ASP) with recycle.

The outlet of bioreactor goes to secondary clarifier. It works on similar lines

as of primary clarifier.

6)ACTIVATED CARBON COLUMN :

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The overflow of the secondary clarifier goes to activated carbon column via a

polishing tank and V-nutch chamber. Here we have a sand column followed by

activated carbon column where the remaining effluents are absorbed.

The column is regenerative type of column.

7)SLUDGE DRYING BEDS:-

The bottom of the primary and secondary clarifier goes to sludge drying beds,

which are two in number and are essentially sands beds. The water from this along

with the activated carbon bed outlet is to equalization vessel.

The sludge is packed in gunny bags and sent to sludge waste management

company ltd. (S.W.M.C.L.).

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SWOT ANALYSIS

STRENGTHS

It had strong technical base with the core whole time director being

technocrats with sound entrepreneur skills.

The company being a multi location, multi product entity has

manufacturing abilities for a large number of products which enables them

to change of product mix as per market demands.

In house research and development centers recognized by the department

of scientific and industrial research enables continuous research for new

products process improvements, energy consumption reduction etc.

The company has a large customer both local and international. The

company has strived to serve them with loyalty since inception. It is the

support of these customers as well as that of its supplier that has enabled

the company to sustain its growth.

The company has always given priority to environment, health and safety.

It has technologically upgraded efficient treatment facilities at all its units.

The company is having an additional advantage which includes stocking

points in US, Europe, Japan and Logistics Advantage.

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WEAKNESS

House keeping is not up to the mark.

Centralized decision making which many a times hinders the functioning of

different departments.

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OPPORTUNITIES

The company is stream lining its new units at Vapi and Tarapur for custom

synthesis and USFDA approved pharmaceutical manufacturing.

The company is also working out marketing tie-ups with multinational for its

existing and new range of product.

The company has a large customer base comprising multinational and

global majors. This fact coupled with the in house, competent R&D team

gives opportunities to increase volumes in existing products and to

introduce new products.

THREATS

The company’s threat perception is the shifting of some of its end usage

product to china. Accordingly the company is making continuous efforts

to increase its presence in china.

The company’s ability to change its product mix quickly, its vast range of

products numbering about 75% and its foray into specialty chemical and

pharmaceuticals also makes the company confident of countering this

threat effectively.

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INDEX

PART 2 (SPECILIZATION)


1 HUMAN RESOURCE AUDIT 1-13

INTRODUCTION 1-2 CONDUCTING A HUMAN RESOURC AUDIT 3 GOALS OF THE AUDIT 3 FOCUS OF AUDIT 4 WHY DO AN AUDIT 4 PRELIMINARY STEPS 5 WHAT DOES AN HR AUDIT COVER 5-6 DATA COLLECTION METHODS 7 CODES OF CONDUCT 8-13o CODE OF CONDUCT OF AIL 8-13

2 HR AUDITING OF AARTI INDUSTRIES LIMITED 14-45

INTRODUCTION 14-18 HUMAN RESOURCES PLANNING 19 RECRUITMENT AND SELECTION 20-22 EDUCATION, TRAINING, AND

DEVELOPMENT23-26

o EDUCATION AND TRAINING 23-24o EMPLOYEE DEVELOPMENT 25-26

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LEAVES OR EMPLOYEE ENTITLEMENTS 26 PERFORMANCE MANAGEMENT 27-28 COMPENSATION 29-32 LABOR RELATIONS & EMPLOYEE

RELATIONS33-34

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITY

35-37

SAFETY AND ENVIRONMENT 38-41 DOCUMENTATION & INFORMATION

SYSTEMS 42

3 FORMS 43

4 LIMITATIONS 44


5 FINDINGS 45-46

6 RECOMMENDATIONS 47

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HUMAN RESOURCE AUDIT

An Audit is a means by which an organization can measure where it currently

stands and determine what it has to accomplish to improve its human resources

function. It involves systematically reviewing all aspects of human resources,

usually in a checklist, ensuring that government regulations and company policies

are being adhered to. The key to an audit is to remember it is a learning or discovery

tool, not a test. There will always be room for improvement in every organization

Audits help determine the effectiveness of an HR department and/or HR

systems. They are a systematic, objective tool to assess regulatory or policy

compliance in the workplace.

Often in assessing a company’s business practices and legal compliance, the

emphasis is on the company’s financial records. It is equally important, however, to

assess HR policies and practices, including the less concrete and less tangible

areas that deal with employee dignity and well-being. These are harder to measure,

but their impact on productivity can be significant. Additionally, poor business

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practices can lead to very expensive legal sanctions. Just Audits help determine the

effectiveness of an HR department and/or HR systems, audits can be valuable tools

in assessing HR policies and practices and ensuring that the company maintains a

safe and respectful work environment.

Human resources and the HR department perform a wide variety of activities.

The audit works best when the focus is on analyzing and improving the Human

Resource function in the organization.

The Human Resources (HR) Audit is a process of examining policies,

procedures, documentation, systems, and practices with respect to an

organization’s Human Resource functions. The purpose of the audit is to reveal the

strengths and weaknesses in the organization’s human resources system, and any

issues needing resolution.

The audit itself is a diagnostic tool, not a prescriptive instrument. It will helps to

identify what you are missing or need to improve, and it may even tell you what you

need to do to address these issues. It is most useful when an organization is ready

to act on the findings, and to evolve its HR function to a level where it’s full potential

to support the organization’s mission and objectives can be realized.

HR audits typically are conducted in the workplace itself, with the HR

department using a multipoint checklist defining those "must haves" to ensure that

a company is legally compliant under both state and national government

regulations. The audit specifies conditions that should be met and then determines

whether they are or are not. Often, interviews are conducted randomly with

employees and managers to determine the culture or climate with regard to

acceptable/unacceptable behaviors in the workplace. Once an HR audit is

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conducted, a company will know exactly what needs to be done to ensure its legal

compliance.

Depending on the size of the organization, the number of workplace facilities

and other complexities, an audit can take anywhere from a half a day to several days

to conduct.

CONDUCTING A HUMAN RESOURCES AUDIT.

As the Employment law is an ever-changing field. The company’s policies and

procedures must change with the laws if the company hopes to avoid litigation.

Employers are aware that one of the best ways to avoid employee lawsuits is to

have a comprehensive policy manual. That’s good advice, but it’s not enough. So all

the companies must regularly conduct human resources audit.

GOALS OF THE AUDIT.

The goals of conducting audit’s are

o To determine whether company’s policies are being applied consistently and

whether they are consistently communicated to all employees.

o Are the mission and strategy of the human resource organization designed to

match the business strategy of the organization?

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o Are the kinds of people who run the human resource function good choices

for the ongoing tasks?

o It should distinguish between policies that are applicable to nonunion

employees, and the terms and conditions of employment for employees who

are represented by a labour organization.

o Finally, the review process should provide answers to several important

questions regarding the application of company’s policies.

FOCUS OF AUDIT.

The focus while conducting an Audit will be on:

What unit is to be analyzed?

In large corporations, the focus of the audit can be the total corporate

personnel / human resource management function, or it can be the divisional or

subsidiary level. Whatever the focus, the audit's boundaries must be specified from

the start.

My focus of auditing was human resource department manager.

WHY DO AN AUDIT

To insure the effective utilization of an organization’s human resources.

To review compliance with a myriad of administrative regulations.

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To instill a sense of confidence in management and the human resources

function that it is well managed and prepared to meet potential

challenges.

To maintain or enhance the organization’s and the department’s

reputation in the community.

PRELIMINARY STEPS

There are two issues that must be considered before implementing an

employment law Audit:-

ö When should the audit take place?

ö Who should conduct the audit?

Since the Municipality already utilizes a variety of employment-related

practices and procedures, the audit should be conducted as soon as possible, if

you have never audited such procedures before. After the initial audit, follow-up

audits should be conducted annually. When putting together an audit team, include

either in-house or outside legal counsel, a representative from Human Resources,

or any other individuals needed to represent a cross-section of staff functions. All

team members should be warned ahead of time regarding the handling of

confidential information.

WHAT DOES AN HR AUDIT COVER?

The HR audit is broken into areas of evaluation that include what is needed

before a company hires any employees all the way through the process of recruiting

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new employees, bringing them aboard, enrolling them in benefits programs,

safeguarding their confidential information, managing and supporting them, and

participating in their exit from the company, if necessary, either voluntarily or

otherwise

While conducting the auditing in AARTI INDUSTRIES LIMITED I tried to cover

each and every point among them are the HR planning, recruitment & selection,

leaves, training and development, benefits, compensation, diversity and equal

employment opportunity, performance appraisal, employee relations, safety and

environment, documentation and information system and also the forms that are

available on the spot while conducting the auditing in the AIL.

What does a full HR Audit entail"?

Generally the HR audit involves the following things in it:

Legal compliance

Compensation/Salary Administration

Employment/Recruiting

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Terminations

Training and Development

Employee Relations

Communications

Files/Record Maintenance/Technology

Policies and procedures (including employee handbook)

DATA COLLECTION METHODS

The sources of collection of data are the

Primary source

Secondary source

The primary sources of data are:

The sources from where the data can be collected are as follows

Interviews with Senior Management: Focus on strategy and a definition

of the current state of the organization and the desired future state.

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Interviews and Questionnaires with Line Management: Focus on their

interactions with the HR function, their human resource problems, and

the role they envision for the HR organization.

In-Depth Questionnaires from the Human Resource Staff: Diagnose the

jobs, activities, conflicts, and internal strengths and weaknesses of the

function.

Archival Information and Documents: Describe job histories, past

evaluations, formal structures, and general background on the

organization as a whole and the HR function in particular.

The primary source of data was used to collect the information that consisted

of in-depth Questionnaire: to the Human Resource Manager covering almost all

points that a human Resource Audit should involve.

Secondary source of data are:

The secondary source is where the data are readily available. The secondary

source was not used / considered.

CODES OF CONDUCT

Codes of conduct detail issues that are not regulated by law but are the

standards, behaviours and expectations set by the employer in the workplace.

Policies associated with codes of conduct may cover matters such as: fighting,

language, dress standards, alcohol, drugs, smoking, and confidentiality, other

employment, maintaining the workplace, taking care of organization property, theft,

and statements to media.

CODE OF CONDUCT FOR THE BOARD MEMBERS

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AND SENIOR MANAGEMENT OF AIL

INTRODUCTION

As required under Clause 49 of the Listing Agreement as amended up to date,

AARTI Industries Limited (herein referred to as “the Company”), hereby notifies the

“Code of Conduct for the Board Members and Senior Management of AARTI

INDUSTRIES LIMITED” (hereinafter referred to as “the Code”).

All the Directors and members of the Senior Management are mandatorily

required to understand and adhere to the code/standards prescribed herein,

including any amendments /modifications/ replacements thereof as may be notified

by the Board of Directors of the Company from time to time, in the course of their

dealings, exercise of powers and discharge of their duties, responsibilities and

obligations in relation to the Company and its transactions.

Nothing in this Code of Conduct or related communications creates or implies

an employment contract or term of employment.

VIOLATIONS OF LAW

Violations of law, this Code of Conduct or other Company policies or

procedures should be reported immediately to the Managing Director

and/or the Compliance Officer in writing.

Violations of law, this Code of Conduct or other Company policies or

procedure can lead to disciplinary action up to and including

termination/vacation of office.

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APPLICABILITY

This code shall be applicable to all the Board Members (referred to as

`Directors’) and Senior Management of the Company.

PART A – DEFINITIONS

'COMPANY’

Means AARTI INDUSTRIES LIMITED

'BOARD MEMBERS’

Means Board of Directors of AARTI INDUSTRIES LIMITED

'SENIOR MANAGEMENT’

Means, personnel of the company who are members of its core management

team excluding Board of Directors (BOD). This would comprise of all members of

management one level below the executive directors, including all functional heads.

'COMPLIANCE OFFICER’

Means the office appointed by the BOD for the purpose of this code from time

to time.

PART B – COMPLIANCE

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COMPLIANCE OFFICER

The Company has appointed Mr. Mohan P. Sonar, Company Secretary as

Compliance officer for the purpose of this Code and he shall report to the Managing

Director of the Company.

AFFIRMATION OF COMPLIANCE

All Board members and senior management personnel of the Company shall

affirm compliance with this Code on annual basis in such form as may be

prescribed and send it to the Compliance Officer by 30th April each year. The

Annual report of the company shall contain a declaration to this effect.

PART C - CODE OF CONDUCT

The Directors and Senior Management personnel of the Company shall adhere to the following:

1. Shall act in accordance with the highest standards of personal and

professional integrity, honesty and ethical conduct

2. Shall be independent in their judgment and actions.

3. Shall exercise due care and diligence in performance of their duties.

4. Shall comply with all applicable laws, rules, and regulations.

5. Shall not engage in any business, relationship or activity, which may be in

conflict of interest of the Company without prior approval of the Board.

6. Shall intimate the Company’s Board of Directors before accepting outside

directorships.

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7. Shall maintain the confidentiality of the information about of the Company

received/obtained by them in the course of their position as Director

/employee of the Company, except when disclosure is authorized by the

Chairman and/or Vice Chairman and Managing Director of the Company or

legally mandated and shall not use confidential information for their own

advantage or profit.

8. Shall use best endeavors to protect Company’s assets and property and

ensure its efficient use.

9. Shall not derive any personal benefit (including without Limitation through

the use of Company’s property, assets, information, or position) except that

which they are lawfully entitled to

10. Shall refer all inquiries or calls from the press and financial analysts to the

Company’s Managing Director. The Company has designated its Chairman,

Vice Chairman and Managing Director, Vice Chairman, as official Company

spokespeople for any company related matters.

11. Shall abide by AARTI’S internal code for prevention of Insider Trading.

12. Shall not, directly or indirectly, short sell any equity/security, of the Company

so as to make gain out of such sale or otherwise. A short sale means any

transaction whereby one may benefit from a decline in the Company’s

share/security price.

13. Shall not derive any benefit (directly or indirectly) or assist others to derive

any benefit by giving advice from the access to and possession of price

sensitive information about the Company, which are not in public domain.

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14. Shall not exploit for their personal benefit, opportunities that are discovered

through Company’s business, information or position, unless the same is

disclosed fully to the Managing Director and permitted by him.

15. Shall not compete directly or indirectly with the business of the Company or

with any business that the Company is considering to establish.

16. Shall treat women employees equally and eliminate any gender

discrimination and shall avoid harassment/threatening based on race, color,

religion, age, gender, national origin, disability or any other basis.

17. Shall not misuse the Company’s facilities, except where such facilities have

been provided for personal use either by policy or by permission or

authority or in the normal course of business. The Company’s facilities

shall not be used for personal use and even when used with prior approval,

care shall be exercised / taken to ensure that costs are reasonable.

18. Shall not (directly or indirectly) accept or retain any gift, entertainment or

other benefits from any organization or person doing business or competing

with the Company. However, they may accept and offer nominal

gifts/hospitality which are not of material value and are customarily given on

accessions or are of commemorative nature for special events.

19. Shall affirm compliance with this Code to the Company on an annual basis.

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(THIS CODE IS SUBJECT TO REVISION. SUCH REVISION SHALL BE WITH THE APPROVAL OF THE BOARD)

THE HR AUDITING OF AARTI INDUSTRIES LIMITED

Information of the company & person, where auditing was conducted.

COMPANY NAME–

The company in which the auditing is to be conducted is to be properly known

that what are the name in which the company has registered itself and the name in

which the company is trading.

REGISTERED AS: M/S AARTI INDUSTRIES LIMITED

TRADING AS: M/S AARTI INDUSTRIES LIMITED

COMPANY’S URL–

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The URL of the company helps to gain information about the company. The

information can be about the products, their company, and if anything new is

happening.

The URL of AIL is www.aartigroup.com

NAME OF THE PERSON –

Name of the person was Mr. Kirit G Sashtri.

DESIGNATION–

The designation of the person was HR Manager.

CONTACT–

Contact of Mr. Kirit Sashtri is

CELL NO: 9377804595

ADDRESS OF THE COMPANY–

The address of AIL is as follows.

REGISTERED OFFICE CORPORATE OFFICEPlot No. 801,802/23, Udyog Kshetra,GIDC Estate, phase III, 2nd floor, L.B.S. Marg,VAPI_ 396195, Mulund-Goregaon link road,DIST. Valsad, Gujarat. Mulund (W), Mumbai 400 080.

TYPE OF COMPANY–

The company is a Chemical Company.

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TOTAL NO OF EMPLOYEES –

The total numbers of employees working in the AIL is 503.

Among them 180 are in staff.

There are no casual employees.

323 employees are doing the job of operators and

There are 250 contract workers.

DEPARTMENT MISSION –

Firstly the overall objective or purpose of the human resources department

within the Organization and its relationship to the Organization's overall mission is

to be known.

The mission of the human resource department of AIL is as follow:

Taking care of employee welfare,

Emphasize on appropriate training to all the employees and be open to all

their suggestions through team participation.

Maintaining health care system in the company.

The further questions asked were:

The overall objective or purpose of the human resources department within the

organization to the organization's overall mission is linked or not?

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YES ( ) NO ( )

ANS: The department’s mission and that the organization’s mission is

linked to each other or not is also important to glimpse.

And it was found that the organization purpose was matching with

the human resource department objective.

Does the company have formal HR manual?

YES ( ) NO ( )

ANS: AIL does not have any HR Manual or any manual for their employee.

Are all he key policies covered in the manual?

YES ( ) NO ( )

ANS: As there is no employee manual the policies also does not exist at

AIL.

Working hours of the employees?

ANS: The working hour of employees is 8 hrs. There are 3 shifts in 24

hours.

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Overtime hours?

ANS: The over time is usually not there but if there is some urgent order

which is to be prepared for that the company asks the

employees/workers to do overtime for which they are paid

separately.

What is the official retirement age?

ANS: The retirement age decided and specified by the AIL to its

employees is 58 years.

Does the company offer education assistance to the employees children?

YES ( ) NO ( )

ANS: The children of the employees are given education assistance by

the AIL. Education assistance is on the merit of the students. The

student who scores good marks is given education assistance.

Does any employee work from home?

YES ( ) NO ( )

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ANS: There is no policy as such in AIL according to which any employee

can work from home.

Is the turnover rate high than expectation?

YES ( ) NO ( )

ANS: The turnover ratio of AIL is not too high if truth be told not many

people leave the company and go.

HUMAN RESOURCES PLANNING –

The Human Resource Planning means the prior planning of the human

resource. How the company pre plans for the people to recruit and select in the

organization is to be known.

Do you know your employment needs beyond the current year?

YES ( ) NO ( )

ANS: According to the employee turnover. Also that now the company is

expanding itself, the company needs human resource.

Have you engaged in a strategic planning process to clarify your

employment needs?

YES ( ) NO ( )

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ANS: The department heads if they need more employees under it, gives a

written letter demanding employees under them and the reason why

they require more employees.

RECRUITMENT AND SELECTION –

Recruitment and selection is obtaining and evaluating qualified candidates

from internal and external sources for positions throughout the Organization.

The Human Resource Manager of AIL was asked these questions on the

recruitment and selection topic.

Is the selection process transparent, equitable, based on merit, and

appropriate?

YES ( ) NO ( )

ANS: The AIL has a recruitment process in which every candidate is equal and

there is no biasness which can take place. The recruitment is done with

complete honesty and the process is completely based on the merit

and the performance of the candidate in the interview, recruitment and

the selection process.

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Are new employees provided with a comprehensive induction?

YES ( ) NO ( )

ANS: The new employee in the AIL is given a formal introduction and then

made familiar with the people whom he is going to work with. This is to

make him aware of the company, people and the environment in which

he is going to work with.

Before filling a position do you identify the skills, qualifications and

behaviours of candidate, needed to meet your objectives?

YES ( ) NO ( )

ANS: The AIL while conducting the recruitment and the selection process

notice the attitude and the behaviour of the candidates. Through the

response or the answers of the question asked to the candidates the

AIL (people conducting the recruitment process) come to know

whether the candidate is competent for the job or not.

Do job descriptions exist?

YES ( ) NO ( )

ANS: While recruiting the candidate to his post the company gives a complete

description about

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1. What is his job?

2. What he is going to do?

3. What duties and responsibilities that he is going to perform?

Etc...

Are job descriptions up to date?

YES ( ) NO ( )

ANS: In AIL the job description exists in the AIL but it is not reviewed or

updated by the company.

Are applicant references checked?

YES ( ) NO ( )

ANS: The AIL checks the reference of their newly if they find it necessary.

Normally employee reference is not checked.

Are turnover rates monitored?

YES ( ) NO ( )

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ANS: The AIL does not monitors the employee turnover rate.

Is the selection procedure clearly told to the candidates?

YES ( ) NO ( )

ANS: The Company informs the candidates previously itself about the

procedure of the selection so that there is no confusion in the mind of

the candidates regarding the procedure.

EDUCATION, TRAINING, AND DEVELOPMENT –

Providing performance skills training and career development to employees,

utilizing both internal and external resources, includes providing expertise in

assessing education, training, and development needs and identification of high-

potential employees.

The AIL was asked these questions on the education, training and the

development of their employees.

EDUCATION, TRAINING, AND DEVELOPMENT

Do you provide performance or skills improvement training?

YES ( ) NO ( )

ANS: If any employee is not that competent and needs training then that

employee is given training to improve his skills, performance and work

quality.

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Do you utilize both internal and external resources for training?

YES ( ) NO ( )

ANS: The AIL uses both internal as well as external sources for the training.

The internal training is where the trainer from the company itself. And

in the external training the company asks the institutes to give training

to their employees.

Does the training include expertise in assessing education, and

development needs?

YES ( ) NO ( )

ANS: Suppose if there is any safety training then a safety expert is being

called and asked to give the training so that if there is any technical

problem which is not understood by the employee then it is being

solved by the experts.

Are seminars held in the company?

YES ( ) NO ( )

ANS: The Company some times conducts seminars for their employees and

for their benefits.

Do you offer employee in house training by the companies employees

only?

YES ( ) NO ( )

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ANS: The Company also gives the employees training from the senior

employees working in the company.

Do you offer external training source?

YES ( ) NO ( )

ANS: The AIL does offer external training more than the internal training as the

experts are being called for giving training to their employees.

EMPLOYEE DEVELOPMENT

Do you have a way to identify the employees development needs of your

employees? ( e.g. surveys, reviews, performance management)

YES ( ) NO ( )

ANS: The AIL identifies the employees development needs as the AIL gives

training to their employees and if any of the employees work or

performance is not good they come to know that the employee is not

developing. The company goes for the performance management as

away to know the development need of an employee which is

conducted at the year ending.

Do employees in your work area get the development they need to do

their jobs effectively?

YES ( ) NO ( )

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ANS: The development is through the training that are given at regular period

to all the employees and motivated for good work.

Do you monitor the results of employees’ development activities in order

to assess their effectiveness?

YES ( ) NO ( )

ANS: The AIL once in the end of the year sees that which are the employees

who are to be given a promotion and development. The employee who performs well is been promoted.

Are new employees offered mentoring support?

YES ( ) NO ( )

ANS: The AIL does give mentors support to its new employee so that the

mentor helps the employee in understanding the work and help the employee if he faces any problem while working.

LEAVES OR EMPLOYEE ENTITLEMENTS

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The leaves given to the employees also do matter that how many days in a year

they have leaves and how many days they get leaves with no harm in their pay.

Total annual leaves: given by the AIL to its employees is 7 days.

Total sick leaves: is 9 days leave annually.

Privilege leave: Are 26 days annually.

PERFORMANCE MANAGEMENT

Are employees clear about what is expected of them in their work roles?

YES ( ) NO ( )

ANS: When the employees are recruited in the company at the very same time

they are told and informed about what are their duties, responsibilities,

the working environments prevailing and the expectations of the

organization at which they have to stand.


YES ( ) NO ( )

ANS: When the employees are recruited in the company at the very same time

they are told and informed about what are their duties, responsibilities,

the working environments prevailing and the expectations of the

organization at which they have to stand.

Is quality and quantity of work evaluated?

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YES ( ) NO ( )

ANS: The work fulfillment, whether the employee is completing his work on

time and effectively is observed. There is no formal method of

evaluation.

Is there a system for performance evaluation?

YES ( ) NO ( )

ANS: For performance evaluation there is no such specific method. Performance appraisal of employee is done once at the year ending and that the subordinates rates their superior and the superior rates their subordinated and both of their rating s are reviewed by the superior of their both.

Is performance tied to compensation?

YES ( ) NO ( )

ANS: If the performance of the employee is up to the mark then the AIL gives the employee an increment and also sometimes awards are given for good performance to motivate the employees.

Is there any poor work performance policy in the company?

YES ( ) NO ( )

ANS: There is no such policy in the AIL for the poor work performance of the employee in the company.

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Is there any performance appraisal policy and procedure?

YES ( ) NO ( )

ANS: There is no performance appraisal policy in the company but the company does have a procedure of the performance appraisal. The performance appraisal takes place once at the end of the year.

COMPENSATION –

All cash payments to employees and also the systems by which positions are

evaluated, salary and wage ranges and bands are determined, and adjustments are

made, including commissions, lump sum payments, incentive payments, and

bonuses.

Is there a formal pay structure?

YES ( ) NO ( )

ANS: The Board of Directors are to be provided with the Salary of Rs.85,000/-

per month with power to make an annual increment area under

discussion to a maximum amount of Rs.1,50,000/-per month in respect

of salary and privilege up to 100% of salary. For the employees the pay

structure is decided when they are recruited that what will be their pay.

Salary is usually paid in the first week of every month. Salary officer

prepare covers with the name and personal code No., of employees and

the pay slip along with cash or cheque as per grade.

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Are compensation levels monitored and reviewed?

YES ( ) NO ( )

ANS: In AIL the compensation structure is not reviewed regularly. The

compensation structure is reviewed once in a year.

Is working time documented?

YES ( ) NO ( )

ANS: When an employee whether he is manager or an employee or a contract

employee they have to fill up the register, where the timing of their entrance and exit is noticed.

Are paid time off (vacation, holidays, etc) structures developed?

YES ( ) NO ( )

ANS: The Paid Holiday, Sick Leave, Casual Leave, Privilege Leave all these

leaves and holidays are calculated by the company and records of these leaves/holidays of each and every employee is recorded and

maintained.

Is the compensation plan communicated to all employees?

YES ( ) NO ( )

ANS: The Company does not communicate the compensation plan to its

employees.

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Is contact made with medical providers?

YES ( ) NO ( )

ANS: Whenever and wherever necessary the company contacts the hospitals

or medical providers if any emergency.

Are injuries/incidents investigated?

YES ( ) NO ( )

ANS: If any accident is occurred in the AIL and the employee is injured then

there is a complete investigation done of the incident held and then according to the injuries caused to the employee the employee is given compensation.

Is follow-up remediation performed where appropriate?

YES ( ) NO ( )

ANS: Whether the incident is small or big the employee who is injured is

rushed for the First Aid to ensure employees safety. There is an emergency Van in the company which is kept for any emergency purpose also the First Aid is kept in the company.

Are insurance premiums reviewed on a periodic basis?

YES ( ) NO ( )

ANS: The AIL gives insurance to each and every employee except to those

employees who come under ESIC. Those employees are insured by the government. As the employees under ESIC gets all kind of benefits.

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Is the workplace environment maintained with safety in mind?

YES ( ) NO ( )

ANS: The Company has kept in mind the safety of the employees. So there is

71 points to avoid fire hazard and emergency exit also.

Are compensatory administrative costs included in the budget?

YES ( ) NO ( )

ANS: There is no compensatory cost included in the budget by the company

as there is no compensatory policy decided by the company.

LABOR RELATIONS & EMPLOYEE RELATIONS –

The role of the human resources role in the relationship between the

Organization and any bargaining unit of an employee-organized labor group,

including labor-organizing campaigns. The formal policies and procedures

governing all conditions of employment, including specific human resources

activities not otherwise categorized.

Is there a positive climate in your work area where employees are

motivated in their work?

YES ( ) NO ( )

ANS: In AIL each and every employee in every department is of friendly nature.

Some likes and dislikes exist but still everyone work together and enjoy

their work and creates positive environment around them.

PRAGATI SHARMA


Does the company have union?

YES ( ) NO ( )

ANS: The AARTI INDUSTRIES do not have any union.

Is there any grievances solving procedure?

YES ( ) NO ( )

ANS: The AIL has a unique way for solving the grievance. If any of the

employees has any grievances then they can straight away meet the

Managing Director of the company and tell him the problems and the

Managing Director will try to solve the problem.

Are the communication channels between management and employees

in your work area sufficiently consultative so that disputes are avoided

and effective problem solving is fostered?

YES ( ) NO ( )

ANS: Whether the dispute is small or big the employee can go to the Managing

Director with their disputes and he will help in solving the disputes.

Are you comfortable working with the companies disciplinary measures

and grievance procedures?

YES ( ) NO ( )

PRAGATI SHARMA


ANS: When asked this question to the Human Resource manger he said that

the employees in the company including him all are satisfied with this

type of Grievance solving procedure as the Managing Director is very

cooperative.

Are workplace policies flexible?

YES ( ) NO ( )

ANS: There is no as work place policy exist in AIL. Except the objectives, rules

and regulations of the company which have to be maintained with proper discipline by each and every employee of the company.

Are disciplinary actions for violating workplace policies flexible?

YES ( ) NO ( )

ANS: There is no such kind of policy so no disciplinary actions are taken.

Is there a process for employees to lodge complaints?

YES ( ) NO ( )

ANS: The employee can either complain to their department head or can meet

the Managing Directors for their problems and complaints.

Are there a variety of individuals to whom employees may lodge complaints (supervisor, HR representative)?

YES ( ) NO ( )

PRAGATI SHARMA


ANS: There is no such procedure where the employee may lodge complaints

to their superior, supervisor, or HR manager. The Managing Director is contacted directly by the employees.

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITY

Developing and implementing workforce programs to maximize employment of

productive people with different characteristics, qualifications, and talents while

recognizing the legal requirements and social responsibilities of equal treatment for

all employees and the actions necessary to ensure those requirements are met.

Do all your employees receive fair and equitable treatment?

YES ( ) NO ( )

ANS: Yes each and every employee in the company is fairly treated whether

the employee is the worker or the manager.

Are supervisors and managers trained in anti-discriminatory practices?

YES ( ) NO ( )

ANS: The employees are given seminars and lectures where they are made

understood that what should be their behaviour towards the other

employees in the company and that do not discriminate among worker

or a manager. Every one in the company should be equally treated.

PRAGATI SHARMA


Are employment practices in line with the various anti-discrimination

laws?

YES ( ) NO ( )

ANS: There is no discrimination done in AIL among anyone. And there a notice

kept that the anti-discriminative laws are not violated by any of the

employees.

EMPLOYEE BENEFITS

Some organizations provide a range of employee benefits not prescribed by

legislation or awards. These can relate to such matters as employee health, or

assisting employees to balance work and family responsibilities. It is important to

clarify how such benefits are awarded to employees in an organization policy in

order to ensure that all employees know of their availability, they are distributed

fairly, and that any conditions applying are understood.

Employee benefits, which fall into this category, may include: company cars,

mobile phones, employee assistance programs, salary packaging, career breaks,

and working from home and study assistance.

PRAGATI SHARMA


The noncash compensation provided to employees of the Organization

including, but not limited to, such components as insurances, retirement saving

plans, and paid time off, and the systems, support services, and communications to

successfully deliver the benefits.

Does the company provide the employees with Insurance benefits?

YES ( ) NO ( )

ANS: Yes. AIL being a chemical company provides each and every employees

with the insurance benefits. The employees coming under ESIC are not

given insurance benefits.

Does the company provide the employees retirement saving plans?

YES ( ) NO ( )

ANS: The aged employees who are working in AIL since years and are to be

retired in few years are given retirement saving plan.

Does the company provide the employees with the loan facilities?

YES ( ) NO ( )

ANS: The Company gives loans to its employees. There is no limit of loan

provided to the employees. If the employee need loan to build own

house, car etc. also for the employee’s parents the loan is given to

PRAGATI SHARMA


build house, education loans for the employee’s children are also

given.

SAFETY AND ENVIRONMENT –

Audit practices will vary considerably among companies when considering

factors that contribute to a safe work environment. A company may choose to

develop an audit sheet tailored to a particular issue, such as the company’s zero-

tolerance policy for harassment. In truly safe work environments, employees feel

confident that they have a place to go when they have work-related problems. They

model the behavior and communicate relevant procedures and resources so that

everyone feels comfort-able and safe. An open-door policy is well worth the effort of

writing and then providing training to managers and supervisors regarding how to

deal with employees who may come to them with concerns The training,

communication, and leadership required to provide a safe working environment; to

provide an appropriate level of employee involvement and responsibility for

implementing safe practices, using safety equipment, and complying with

Organization safety rules and practices; and to ensure that federal, state, and local

safety and environmental requirements are met.

Is there any non-smoking policy?

YES ( ) NO ( )

ANS: There is a non smoking policy for all the employees and no employees

should smoke in the premises of the organization and anyone found

violating those rules will be punished and severe actions will be taken

on them.

PRAGATI SHARMA


Do employees participate in regular safety and health training programs?

YES ( ) NO ( )

ANS: All the employees are previously informed about the date and time at

which training is to be held. Every employee has to participate in the

training it is held every week. The schedule is listed every month.

Are workplace accidents, near-misses, injuries, and illnesses reported

and investigated?

YES ( ) NO ( )

ANS: Yes if there are any mishaps then they are to be straight away reported

to the senior management and they investigate the accident properly

and the employee is rushed to the hospital without delay.

Are measures in place to prevent thieves from entering the grounds or

buildings?

YES ( ) NO ( )

ANS: There is a tight security in the premises of the AIL. The security in charge

takes care that there is no theft or robbery that takes place in the

company and there are 6-7 security in charge (people) remain at night

in the company premises.

PRAGATI SHARMA


Is bright, effective lighting installed indoors and outdoors?

YES ( ) NO ( )

ANS: The AIL has set up good lighting facility in the premises. There is

lighting at each place and there is no dark place this is to avoid working

accidents of employee working at the night time.

Are measures in place (access badges, traffic control, etc.) to keep

unauthorized persons from entering the facility through normal

entrances?

YES ( ) NO ( )

ANS: Through the normal entrance only authorized people are allowed to

enter. The truck drivers have to show the identity card given by the

company at the entrance. The visitors are asked the person to meet and

then conformation is done from that employee and then the visitor is

allowed in the company.

Is there a reliable response system in place in the event an alarm is triggered?

YES ( ) NO ( )

ANS: In the situation of an emergency an alarms is rung and then all the

employees are asked to vacate that particular area and reach at a safer place. If there is a fire then the nearest fire point is switched on.

PRAGATI SHARMA


Are employees encouraged to promptly report incidents, and suggest

ways to reduce or eliminate risks?

YES ( ) NO ( )

ANS: The employees are previously educated that they should be careful while

working with the chemicals and that they should wear proper safety

equipment like gumboots, helmet and gloves (if necessary). All this

things can avoid accidents in the company.

Do you maintain OSHA?

YES ( ) NO ( )

ANS: The Company does maintain OSHA. This is for the safety of the

organization as well as of the employees.

From how many years?

ANS: OSHA is maintained in AIL since its commencement of the company.

PRAGATI SHARMA


DOCUMENTATION AND INFORMATION SYSTEMS –

Preparing, storing, and maintaining employee records and information,

including computerized human resources information systems, and meeting federal,

state, and local requirements

When operational changes are introduced into your work area do you

take into consideration the impact on employees?

YES ( ) NO ( )

ANS: As AIL is very much concerned about its employees the company while

making any policy or decisions keep in mind their employees safety

and employee welfare.

Are documents regarding employees kept for their required duration?

YES ( ) NO ( )

ANS: The AIL keeps and maintains each and every legal documents with them

regarding their employees and the company itself. As whenever it may

be needed they can show them (auditor’s visits).

PRAGATI SHARMA


FORMS

Factory act half yearly returns.

Annual return

Renual of LIC

Notice of accident

Report on accident

Minimum wage act annual returns

Payment of wage act annual

ESIC reports

Bonus act annual returns

Provident fund monthly returns

All these are the list of forms which the AIL always keep with them and they are

properly maintained. As these forms are required any time and asked by the

auditors of the company.

PRAGATI SHARMA


LIMITATIONS The limitations are as follows:

I did not have complete knowledge about the different policies of the

government that are set for the betterment of the employees which the

companies should follow.

There was some biasness in response of the HR manager towards his

company.

The company could not disclose much of the confidential matters of their

policies and procedures.

PRAGATI SHARMA


FINDINGSThe findings are as follows.

The objective and purpose of the department and the organization should

match and in case of AIL also it matches.

As per the company’s act the companies should have an HR manual which

the AIL does not have.

The employee turnover ratio in the company is high. Which the company

should take in notice and keep a proper record of it.

The company has good recruitment and selection procedures for the

selection of the candidates.

The training given as per schedule to the employees.

As per the company’s act the company should have a job description of each

and every employees which is not proper in the AIL.

Employee development is only by training and not by transfers.

The performance management system is not properly managed. The

employees are appraised once in a year.

The company is committed to ensure sound safety, health and environment

(SHE) performance related to its activities, products and services. The

company is taking continuous steps and also developing environment

friendly processes for the effective resource management with specific focus

to energy, water and basic raw materials.

PRAGATI SHARMA


The company is committed to strengthen, pollution prevention and waste

abatement practices and strives to provide a safe and healthy environment.

The employee safety is the biggest importance for AIL which is given most

preference and they do very satisfactorily. AIL has ensured safety and health

of its employees.

The relationship between the management and the employees are good as the

directors record their appreciation of the support and co-operation of all

employees and count them for the growth of the company.

The documents and forms are available in AIL and they are properly

maintained by the company.

PRAGATI SHARMA


RECOMMENDATIONS

The AIL does not have any HR employee manual. So AIL should maintain

manuals covering all policies

Job descriptions exists in AIL but they are not reviewed regularly. AIL should

concentrate on reviewing those policies as for a new positions job descriptions

should be readily available at the time of induction training given to the new

employees.

Though the turnover rates of employee are not high the company should

monitor and keep a proper record of the turnover of employees.

AIL should set up an appropriate performance appraisal policy and procedure

once in 3-4 months to ensure that all employees understand their job

responsibilities and objectives.

The compensation levels should be monitored and reviewed regularly by the

AIL. AS PER THE COMPENSATION ACT 1956 the company should review their

compensation levels regularly

AIL does not have any policy for the employee violating the regulations and

policies of the company. So the company should develop some disciplinary

policy to avoid violation of rules & regulations.

There should be a grievance solving procedure in which the employees can

lodge complain or grievance to their superior or HR Manager.

The AIL should provide the employees with transportation facilities. For the

employees convenience.

PRAGATI SHARMA


PRAGATI SHARMA


BIBLIOGRAPHY

KOTLER KELLER, MARKETING MANAGEMENTPRENTICE HALL, NEW DELHI, 12TH EDITION 2006

ANNUAL REPORT OF THE COMPANY 2005-2006

HUMAN RESOURCE MANAGEMENT K ASHWATHAPPA - 4TH EDITION

WEB SITES

o http:// www.hraudit.inc

o http://www.amanet.org/books

o http:// www.e-hresources.com

o http://www.hr.uwa.edu.au

o http://www.explorehr.org

o http://www.jjkeller.com/ resourcecenter s/hr/home.htm

o www.aartigroup.com

PRAGATI SHARMA

http://www.aartigroup.com/

http://www.jjkeller.com/resourcecenters/hr/home.htm?action_code=71093

http://www.explorehr.org/

http://www.hr.uwa.edu.au/page/14460

http://www.e-hresources.com/

http://www.amanet.org/books

http://www.hraudit.inc/


PRAGATI SHARMA


AARTI INDUSTRIES LIMITED (HUMAN RESOURCE AUDIT)

COMPANY NAME- REGISERED AS: _________________________________________

TRADING AS: ___________________________________________

COMPANIES URL- _____________________________________________________

NAME OF THE PERSON- _______________________________________________

DESIGNATION-_______________________________________________________

CONTACT- CELL NO: __________________________________________________

EMAIL ID: ________________________________________________

ADDRESS OF THE COMPANY- _________________________________________

PRAGATI SHARMA


___________________________________________

TYPE OF COMPANY- __________________________________________________

TOTAL NO OF EMPLOYEES- ___________________________________________

STAFF (_______________)

OPERATOR (___________)

CASUAL (______________)

CONTRACTOR (_________)

DEPARTMENT MISSION –

______________________________________________________________________

______________________________________________________________________

The overall objective or purpose of the human resources department within the organization to the organization's overall mission is linked or not?

YES ( ) NO ( )

Does the company have formal HR manual?

YES ( ) NO ( )

Are all he key policies covered in the manual?

YES ( ) NO ( )

Working hours of the employees? ____________________

Overtime hours? ____________________

What is the official retirement age? ________________

Does the company offer education assistance to the employees children?

PRAGATI SHARMA


YES ( ) NO ( )

Does any employee work from home?

YES ( ) NO ( )

Is the turnover rate high than expectation?

YES ( ) NO ( )

PLANNING-

Do you know your employment needs beyond the current year?

YES ( ) NO ( )

Have you engaged in a strategic planning process to clarify your staffing needs?

YES ( ) NO ( )

STAFF DEVELOPMENT

Do you have a way to identify the employees development needs of your employees? ( e.g. surveys, reviews, performance management)

YES ( ) NO ( )

Do employees in your work area get the development they need to do their jobs effectively?

YES ( ) NO ( )

Do you monitor the results of employees’ development activities in order to assess their effectiveness?

YES ( ) NO ( )

Are new employees offered mentoring support?

YES ( ) NO ( )

PRAGATI SHARMA


RECRUITMENT AND SELECTION-

Is the selection process transparent, equitable, based on merit, and appropriate?

YES ( ) NO ( )

Before filling a position do you identify the skills, qualifications and behaviours needed to meet your objectives?

YES ( ) NO ( )

Are new employees provided with a comprehensive induction?

YES ( ) NO ( )

Do job descriptions exist?

YES ( ) NO ( )

Are job descriptions up to date?

YES ( ) NO ( )

Are applicant references checked?

YES ( ) NO ( )

Are turnover rates monitored?

YES ( ) NO ( )

Is the selection procedure clearly told to the candidates?

YES ( ) NO ( )

LEAVES -

Total annual leaves _________________________

PRAGATI SHARMA


Total sick leaves ____________________________

Privilege leave __________________________________

EDUCATION, TRAINING, AND DEVELOPMENT –

Do you provide performance or skills improvement training?

YES ( ) NO ( )

Do you utilize both internal and external resources for training?

YES ( ) NO ( )

Does the training include expertise in assessing education, and development needs?

YES ( ) NO ( )

Are seminars held in the company?

YES ( ) NO ( )

Do you offer employee in house training by the companies employees only?

YES ( ) NO ( )

Do you offer external training source?

YES ( ) NO ( )

Benefits –

Does the company provide the employees with Insurance benefits?

YES ( ) NO ( )

Does the company provide the employees retirement saving plans?

PRAGATI SHARMA


YES ( ) NO ( )

Dos the company provides the employees with the loan facilities?

YES ( ) NO ( )

Compensation –

Are compensation levels monitored and reviewed?

YES ( ) NO ( )

Is there a formal pay structure?

YES ( ) NO ( )

Is the compensation structured reviewed regularly?

YES ( ) NO ( )

Is working time documented?

YES ( ) NO ( )

Are paid time off (vacation, holidays, etc) structures developed?

YES ( ) NO ( )

Is the compensation plan communicated to all employees?

YES ( ) NO ( )

Are appropriate payroll withholdings performed?

YES ( ) NO ( )

Are injuries/incidents investigated?

YES ( ) NO ( )

Is follow-up remediation performed where appropriate?

PRAGATI SHARMA


YES ( ) NO ( )

Is contact made with medical providers?

YES ( ) NO ( )

Are insurance premiums and competitive quotes reviewed on a periodic basis?

YES ( ) NO ( )

Is the workplace environment maintained with safety in mind?

YES ( ) NO ( )

Is bonus given annually?

YES ( ) NO ( )

Are compensatory administrative costs included in the budget?

YES ( ) NO ( )

DIVERSITY AND EQUAL EMPLOYMENT OPPORTUNITY –

Do all your employees receive fair and equitable treatment?

YES ( ) NO ( )

Are supervisors and managers trained in anti-discriminatory practices?

YES ( ) NO ( )

Are employment practices in line with the various anti-discrimination laws?

YES ( ) NO ( )

PERFORMANCE MANAGEMENT

Are probationary employees appraised regularly?

YES ( ) NO ( )

PRAGATI SHARMA



YES ( ) NO ( )

Do employees have access to support and assistance for improvement if their performance is less than expected?

YES ( ) NO ( )

Is there a system for performance evaluation?

YES ( ) NO ( )

Does the system check for effectiveness of the evaluation?

YES ( ) NO ( )

Is quality and quantity of work evaluated?

YES ( ) NO ( )

Is performance tied to compensation?

YES ( ) NO ( )

Is there any poor work performance policy in the company?

YES ( ) NO ( )

Is there any performance appraisal policy and procedure?

YES ( ) NO ( )

EMPLOYEE RELATIONS

Is there a positive climate in your work area where employees are motivated in their work?

YES ( ) NO ( )

Does the company have union?

YES ( ) NO ( )

PRAGATI SHARMA


Is there any grievances solving procedure?

YES ( ) NO ( )

Are the communication channels between management and employees in your work area sufficiently consultative so that disputes are avoided and effective problem solving is fostered?

YES ( ) NO ( )

Are you comfortable working with the companies disciplinary measures and grievance procedures?

YES ( ) NO ( )

Are workplace policies flexible?

YES ( ) NO ( )

Are disciplinary actions for violating workplace policies flexible?

YES ( ) NO ( )

Is there a process for employees to lodge complaints?

YES ( ) NO ( )

Are there a variety of individuals to whom employees may lodge complaints (supervisor, HR representative)?

YES ( ) NO ( )

SAFETY AND ENVIRONMENT –

Is there any non-smoking policy?

YES ( ) NO ( )

Do employees participate in regular safety and health training programs?

PRAGATI SHARMA


YES ( ) NO ( )

Are workplace accidents, near-misses, injuries, and illnesses reported and investigated?

YES ( ) NO ( )

Are measures in place to prevent thieves from entering the grounds or buildings?

YES ( ) NO ( )

Is bright, effective lighting installed indoors and outdoors?

YES ( ) NO ( )

Are measures in place (access badges, traffic control, etc.) to keep unauthorized persons from entering the facility through normal entrances?

YES ( ) NO ( )

Is there a reliable response system in place in the event an alarm is triggered?

YES ( ) NO ( )

Are employees encouraged to promptly report incidents, and suggest ways to reduce or eliminate risks?

YES ( ) NO ( )

Do you maintain OSHA?

YES ( ) NO ( )

From how many years?

YES ( ) NO ( )

DOCUMENTATION AND INFORMATION SYSTEMS -

PRAGATI SHARMA


When operational changes are introduced into your work area do you take into consideration the impact on employees?

YES ( ) NO ( )

Are documents regarding employees kept for their required duration?

YES ( ) NO ( )

LIST OF DOCUMENTS AND FORMS YOU KEEP WITH YOU ALWAYS FOR HE REVIEWING AND TO SHOW THE AUDITORS

PRAGATI SHARMA

pragati sharma

Business

sharma pragati pragati

pragati sharma pragati

project work

shah pragati sharma

aarti industries limitedin

aarti industries limites

marketing department

specialization project