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 A
ROLL 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 WITH
VEER 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

PRAGATI SHARMA


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.

PRAGATI SHARMA

PRAGATI SHARMA


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

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


INDEX
PART 1 (ALL DEPARTMENT)

SR. NO TOPIC PAGE NO

1 THE STRUCTURE OF THE CHEMICAL 1-2
INDUSTRY

2 AARTI INDUSTRIES LIMITED 3-15
 CORPORATE INFORMATION 3-5
 INTRODUCTION 6-10
 THE COMPETITIVE ADVANTAGE OF 11
AARTI INDUSTREIS LIMITED

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

PRAGATI SHARMA


4 FINANCE DEPARTMENT 61-81

 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

 STRUCTURE OF MARKETING 87
DEPARTMENT
 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 115-120
AND GUARANTEES.
 THE DISTRIBUTION CHANNEL 121
 MODE OF TRANSPORTATION 122

6 DESPATCH DEPARTMENT 123-125

PRAGATI SHARMA


7 PRODUCTION DEPARTMENT 126-
 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
PRAGATI SHARMA


INDUSTRIES
LIMITED

THE RIGHT CHEMESTRY FOR
A BRIGHTER TOMORROW

THE STRUCTURE OF THE CHEMICAL INDUSTRY

PRAGATI SHARMA


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
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

Knowledge
18%
Basic
Speciality 57%
25%

 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.

PRAGATI SHARMA


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

PRAGATI SHARMA


CORPORATE INFORMATION

∗ Name of the Company :

∗ 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. 752-753-754
SARIGAM, 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.

PRAGATI SHARMA


 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 Directors
Chandrakant V. Gogri Chairman
Rajendra V. Gogri Vice-Chairman & Managing Director
Shantilal T. Shah Vice-Chairman

∗ Independent Directors :
Ramdas M. Gandhi
Laxmichand K. Jain
Vijay H. Patil
Haresh K. Chheda

∗ Whole-time Directors :
Parimal H. Desai
Manoj M. Chheda
Rashesh C.Gogri
Hetal Gogri Gala
Kirit R. Mehta

PRAGATI SHARMA


∗ Company Secretary
Mohan P. Sonar

∗ Auditors
M/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

PRAGATI SHARMA


PRAGATI SHARMA



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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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

PRAGATI SHARMA


• 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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


• 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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


Company’s shared value:
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.

PRAGATI SHARMA


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

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


∗ 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.

PRAGATI SHARMA


RECRUITMENT

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.

PRAGATI SHARMA


The thoroughness of the procedure depends upon three factors.

 Nature of selection.

 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.

PRAGATI SHARMA


Source of Recruitment :

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.

PRAGATI SHARMA


RECRUITMENT PROCEDURE:-
NEWSPAPER
APPLICATION

RECEIVING
APPLICATION

SORTING
OUT
APPLICATION

WRITTEN TEST

INTERVIEW

SORT TEST

FINALIZE

INTERVIEW

II INTERVIEW

OFFER LETTER

OFFER
LETTER
JOINING THE
ORGANIZATION
JOINING THE
ORGANIZATION
APPOINTMENT
LETTER
APPOINTMENT
LETTER

PRAGATI SHARMA


THE RECRUITMENT PROCESS

The process of recruitment can be explained as under:

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.

PRAGATI SHARMA


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
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.

PRAGATI SHARMA


SELECTION PROCEDURE

APPLICATION
FORM

INTERVIEW

PHYSICAL
EXAMINATION

REFERENCE

FINAL APPROVAL

EMPLOYMENT

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


• 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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


• 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

PRAGATI SHARMA


• 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.

PRAGATI SHARMA


(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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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,

PRAGATI SHARMA


∗ Cycle loans,
∗ L.I.C through salary.

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

PRAGATI SHARMA


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

by the superiors.

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.

PRAGATI SHARMA


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?

PRAGATI SHARMA


? 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?

PRAGATI SHARMA


LEAVE STRUCTURE
The 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.

PRAGATI SHARMA


 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.

PRAGATI SHARMA


MEDICLAIM POLICY
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.

PRAGATI SHARMA


• 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.

PRAGATI SHARMA


SOCIAL RESPONSIBILITY

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.

PRAGATI SHARMA


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 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 EXPENSES
Period Labour Welfare taff Welfare Total
Amount
PERIOD LABOUR STAFF TOTAL
WELFARE WELFARE AMOUNT

2004 - 05 Rs 2415729 Rs 917578 Rs 3333307

2005 - 06 Rs 2758586 Rs 547001 Rs 3305587

PRAGATI SHARMA


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.

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

PRAGATI SHARMA


HEALTHCARE RELATED

• Vishwas Hospital Trust
• Shushrusha Charitable Trust
• Bidada Sarvodaya Trust
• Tibetan Medical and Astro Institute
• 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)

PRAGATI SHARMA


• 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

• 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

PRAGATI SHARMA


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,
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.

PRAGATI SHARMA


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.

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.

PRAGATI SHARMA


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:

• 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.

PRAGATI SHARMA


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.

• 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.

PRAGATI SHARMA


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.

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.

PRAGATI SHARMA


• 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.
• 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.

PRAGATI SHARMA


FINANCE DEPARTMENT

 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.

PRAGATI SHARMA


• 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.
 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.

PRAGATI SHARMA


 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
 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

PRAGATI SHARMA


∗ 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.

¤ cost of project
¤ Means of finance
¤ Financial highlights
¤ Product and capacity
 Sources of funds
 Use of funds

¤ Projected performance

PRAGATI SHARMA


¤ 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:-

PRAGATI SHARMA


CHAIRMAN

MANAGING
DIRECTOR

VICE
PRESIDNT

GENERAL
MANAGER

DEPUTY ACCOUNT
GENERAL OFFICER/
MANAGER CASHER

FINANCE ACCOUNT
EXECUTIVE ASSISTANT

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

PRAGATI SHARMA


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

PRAGATI SHARMA


Following is the sales procedure prevailing at the AARTI INDUSTRIES
LIMITED.

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.

PRAGATI SHARMA


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

Step3
 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,

PRAGATI SHARMA


∗ Punjab national bank,
∗ Dena bank.

Performs:
 Maintenance of current account
 Maintenance of cash credit account over draft facility.
 Preparation of BRS (bank reconciliation statement) every month.

 CASH BOOK
Performs:
 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 Amounts
SHAREHOLDERS’ FIXED ASSETS

PRAGATI SHARMA


FUND
Gross Block
Share capital 364047120 3772152761
Less: Depreciation
Equity share warrants 18456460 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 4282512765
LESS:
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

PRAGATI SHARMA


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

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

TOTAL 8,130,073,775

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

TOTAL 7,192,047,768

Profit Before Depreciation 938,026,007
Less: Depreciation 221,869,002
Profit Before Tax 716,157,005
Less:Provision for taxation(including fringe benefit tax) 162,300,000
Profit After Tax 553,857,005
Less: Provision for Deffered Tax 63,213,480
Profit After deffered Tax 490,643,525
Add: Balance of Profit and Loss Account Brought Forward 1,537,363,110
Add: Provision for Diminution in the value of Investments-
Quoted NIL
Less: Prior Years' adjustment for others 18,520,032
2,009,486,603
less:Transfer to General Resereve 50,000,000
1,959,486,603
Less:Dividend 61,888,011
Less:Dividend 50,966,597
Less:Proposed Dividend 29,123,770
Less:Tax On Dividend 19,912,468

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

PRAGATI SHARMA


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.

PRAGATI SHARMA


¥ 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.

PRAGATI SHARMA


¥ 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.

PRAGATI SHARMA


¥ 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.

PRAGATI SHARMA


¥ 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.

PRAGATI SHARMA


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

PRAGATI SHARMA


 SHAREHOLDING PATTERN AS ON 31ST MARCH
2006

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

 DISTRIBUTION OF SHAREHOLDING AS ON 31ST
MARCH 2006

PRAGATI SHARMA


No. of Shareholders Share Held
Shares
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

PRAGATI SHARMA


CHARTS

€ TOTAL INCOME

Total Income
)
790.96
es
or 800 688.06

Cr 700
511.59
600
in 474.32 Series1
es 500 345.85
pe 400
u 300
200
(R
100
0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

€ EARNING PER SHARE

Earning Per share

35 30.02
30 24.39
23.06
25
20
(Amount in Rupees)
12.78*
15
10 6.74#

5
0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

PRAGATI SHARMA


€ PROFIT BEFORE & AFTER TAX

Profit Before & After Tax

80 71.62
70
58.23 55.39
60 50.06 47.23
50 41.05 39.56
(Rupees in Crores) 32.87
40 31.55
29.12
30
20
10
0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

€ DIVIDEND PAYOUT

Dividend Payout

30 25.95
25.00 25.64
25 23.00

20
Payout (%) 14.2
15 12.26
8.33 9.10
10 7.89

5 2.43

0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

PRAGATI SHARMA


€ NET WORTH

Net worth
235.29
250
203.95
200 172.29

144.56
150
(Rupees in Crores) 123.75

100

50

0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

€ BOOK VALUE

Book Value

160 141.97
140 119.13
120 101.98
100
(Amount in Rupees)
80 56.03*
60
32.32#
40
20
0
2001-02 2002-03 2003-04 2004-05 2005-06

Years

PRAGATI SHARMA


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
which they can cater a maximum number of the customers and also how they can
promote their products.

PRAGATI SHARMA


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 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

PRAGATI SHARMA


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
o 20% other companies

PRAGATI SHARMA


 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.

NAME OF THE COMPANY PRODUCT

PRAGATI SHARMA


Dr 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.

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.

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

THE MANAGING DIRECTOR

BOARD OF DIRECTORS

MARKETING MANAGER

SALES MENS

THE MARKETING OBJECTIVE OF AIL
The marketing objective of the AIL are

PRAGATI SHARMA


• 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
INTERNAL INTEGRATED

PRAGATI SHARMA


HOLISTIC
MARKETING

SOCIALLY RELATIONSHIP
RESPONSIBLE

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.

PRAGATI SHARMA


SOCIALLY RESPONSIBLE:

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.

PRAGATI SHARMA


THE ENVIRONMENT THAT AFFECT THE
COMPANY
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

PRAGATI SHARMA


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
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

PRAGATI SHARMA


more duties on the goods so the company will have to spend more and
this will affect the company adversely.

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

PRAGATI SHARMA


• To become one of the most respected organizations in the chemical
industry and a name people trust through quality products and sound
corporate values.
• 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

PRAGATI SHARMA


• Promotion.

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

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

PRAGATI SHARMA


THE PRODUCT LINE AND PRODUCT DEPTH

Para Nitro Chloro Benzene (PNCB)

PRAGATI SHARMA


•

•

•

•

•

•

•

•

•

•

•

•

•

•

PRAGATI SHARMA


Ortho Nitro Chloro Benzne (ONCB)

PRAGATI SHARMA


Dinitro Chloro Benzene (DNCB)

•

•

•

•

•

Para Dichloro Benzene (PDCB)

PRAGATI SHARMA


•

•

•

•

•

•

•

•

•

•

•

PRAGATI SHARMA


Ortho Dichloro Benzene (ODCB)

•

•

•

•

•

•

•

•

•

PRAGATI SHARMA


Nitro Benzene

PRAGATI SHARMA


•

•

•

•

•

•

•

•

•

•

•

•

PRAGATI SHARMA


Alkylated Anilines & Toluidines

PRAGATI SHARMA


Chloro Phenols

PRAGATI SHARMA


•

•

•

•

•

•

•

•

•

Fluoro Compounds

PRAGATI SHARMA


Agrochemicals

•

•

• Other Major Products

Bulk Drug Intermediates / Speciality Chemicals

PRAGATI SHARMA


• 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

PRAGATI SHARMA


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

Bulk Drugs under R & D
Anti-Hypertensives Anti-Cancer

Perindopril Imatinib Mesylate
Trandolapril Capcetabine
Cilazepril Irenotican

Bronchodilators Anti-Diabetic

Loteprednol Glimepiride
Mometasone
Ciclesonide
Flumethasone Anti-Deprresents
Desonide
Ziprasidone
Aripiprazole
Zaleplon
Paroxetine HCL

PRAGATI SHARMA


Dyes

PRAGATI SHARMA


DYE
CLASS

HUES
ACID
BASIC
DIRECT
REACTIVE
SOLVENT

YELLOW
17, 23, 36
42, 96,
99, 100
194, 204,
241
2
11, 12, 44
50, 111
7, 17, 18, 22

42, 81, 84,
145A, 160A
2, 14, 16, 33
82

ORANGE
3, 7, 10,
56, 75
116, 142
162
1, 2
34, 39
4, 12, 13,
14, 84
2, 62

BROWN
75, 160
165, 355
365
1

9

RED
18, 52, 73,
81, 88, 97,
119, 131,
151, 186
195, 283
357, 362

23, 80, 81
11, 35, 49,
141
152, 180A
195A, 196
1, 23, 24, 49

VIOLET
7, 17, 49
85, 90, 92
1, 2, 3, 4,
10, 14
9, 51
1, 12

PRAGATI SHARMA


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

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


METHOD OF SETTING PRICE BY
AARTI 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.

PRAGATI SHARMA


The following method is followed in setting the pricing of the products.

MATERIAL COST

EXPENSES
(Electricity + water + Wages + salary)

OVERHEAD EXPENSES

PERCENT OF PROFIT

THE PRICE
(SELLING PRICE)

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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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 LIMITED
7-9, ST. MARY’S PALACE,
BURY LANES, BL9 ODZ,
ENGLAND.
TEL: + 44-161-763-1624
FAX: +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

PRAGATI SHARMA


• Agrochemicals

• 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.

PRAGATI SHARMA


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.

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

PRAGATI SHARMA


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.

PRAGATI SHARMA


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

PRAGATI SHARMA


of such material which can bear the highly chemical characteristic so that there is
no hazard caused and the chemical reaches the customers safely.

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.

PRAGATI SHARMA


PARA NITRO CHLORO BENZENE

LOT NO: _____________________________________________

GROSS WEIGHT: _____________________________________

TARE WEIGHT: ______________________________________

NET WEIGHT: ________________________________________

BAG NO: ______________________________________________


MADE IN INDIA

USE NO HOOKS

PRAGATI SHARMA


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.

NAME OF THE CHEMICAL

LOT NO: ____________________

GROSS WEIGHT: ____________

TARE WEIGHT: _____________

NET WEIGHT: _______________

BAG NO: ____________________


MADE IN INDIA

HIGHLY POISONOUS

PRAGATI SHARMA


The above diagram is of the drum for the liquid chemical where in such
information are written such as:

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:

PRAGATI SHARMA


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.

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.

MANUFACTURER

SALES MENS

CUSTOMERS

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

PRAGATI SHARMA


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.

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.

PRAGATI SHARMA


The chemicals from the company move on in a truck till the dock and from the
dock it is shipped.

Gunny
Bags

PRAGATI SHARMA


DISPATCH DEPARTMENT

PRAGATI SHARMA


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.

MUMBAI OFFICE

The Mumbai office gives the order to the
Dispatch department Vapi.
DISPATCH DEPARTMENT

PRODUCTION
DEPARTMENT

DISPATCH DEPARTMENT

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

PRAGATI SHARMA


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
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.

PRAGATI SHARMA


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.
• 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)

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

PRAGATI SHARMA


 MOEXIPRIL
 ISRADIPINE

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.

PRAGATI SHARMA


Types of Boiler:

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.

PRAGATI SHARMA


OBJECTIVES OF PLANT LAYOUT

 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

SSP Back Security
Fire
Fighting
Boiler
Pump Water
ACID PLANT House Reservoir
DMS SECTION
Plant Ammonia
Storage
3.4 DCNB PNCB Tank
Distillation Flaking
ETP
Section Section

HCL Storage 2, 5- 3, 4- OPDA
Safety DCNB DCNB Plant
Dept.
MCB Plant 95% PNCB
DG Crystallization
Section CN Crystallizatio Distillation
Acid Storage Section n Section Section
MCB Acid
Storage
PRAGATI SHARMA Storage
Tanks NCB Plant


Canteen Administratio Inst. Liq. PNCB
n Bldg. Secti Storage
on

OHC

Car Garden
Security Parkin
g
Bicycle
Parking

GIDC ROAD

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


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:

NITRATOR SEPARATOR WASHER SEPARATOR

SPENT WATER
ACID NCB
MCB,
MIX ACID, STORAGE
NITRIC ACID TANK
DRYER ETP

P CUT

PRAGATI SHARMA


DISTILLATION CRYSTALLIZATION STORAGE TANK
NCB

ML

PURE PURE
ONCB PNCB

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


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

2- Chloro Nitro Benzene (Ortho Nitro Chloro
Chemical Name
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.

DYESTUFF & DYESTUFF
INTERMEDIATES
End Use PHARMA & PHARMA INTERMEDIATES
AGROCHEMICAL INTERMEDIATES
SPECIALITY 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
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

End Use
DYESTUFF & DYESTUFF INTERMEDIATES

PARA DICHLORO BENZENE
Product Details

1,4 Dichloro Benzene (Para Dichloro Benzene)
Chemical Name
(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 INTERMEDIATES
PHARMA & PHARMA

ORTHO DICHLORO BENZENE
Product details

1,2 Dichloro Benzene (Ortho Dichloro Benzene)
Chemical Name
(95-50-1)
Chemical Formula C6H4Cl2

PRAGATI SHARMA


Molecular Formula

CAS No. 95-50-1
Molecular Weight 147
Appearence Colourless liquid

DYESTUFF & DYESTUFF
End Use 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
Appearence Colourless liquid in Aniline
Melting Point 5.2 oC
Boiling Point 210 oC to 211 oC
DNB content : 0.02 % to 0.03 % Max.,Others :
Typical impuriy
0.67 % to 0.68 %
Form and Net Weight Tanker load
End Use DYESTUFF & DYESTUFF INTERMEDIATES
Product Details
Chemical Name 4-Chloro Phenol (PCP)
Chemical Formula C6H5ClO

Molecular Formula

CAS No. 106-48-9
Appearence White Yellowish crystalline / fused
Odour Phenolic odour
Di Chloro Phenol, Phenol,2-Chloro Phenol &
Typical impuriy
Others :Less than 1 %
Form and Net Weight 250 kgs. : M.S. Drums
DYESTUFF & DYESTUFF INTERMEDIATES
End Use 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.


Appearance Light yellow to yellow flakes

Typical impuriy ONCB:0.50% MAX

1000 ppm Max.(Flakes) & 1500 ppm
Moisture 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

DYESTUFF & DYESTUFF
INTERMEDIATES PHARMA &
End Use PHARMA INTERMEDIATES
PIGMENT INTERMEDIATES

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
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

PRAGATI SHARMA


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.

QUALITY POLICY

PRAGATI SHARMA


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.

PRAGATI SHARMA


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:

PRAGATI SHARMA


Centrifuges
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:

PRAGATI SHARMA


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.

Expenditure on R&D (Rs. In lakhs)
• Capital 131.91
• Recurring 56.51
• Total 188.42
• Total R&D expenditure as a percentage of
total turn over -0.27%

PRAGATI SHARMA


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

PNCB

PRAGATI SHARMA


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
• Water Line • Boiler/Electrical Spares

PRAGATI SHARMA


STRUCTURE OF STORE DEPARTMENT

STORE DEPARTMENT

Raw Material Packing Engineering
Store Material Store Material Store

PRAGATI SHARMA


FLOW DIAGRAM OF RECIEPT OF STORE
MATERIAL

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

GRR prepared
PRAGATI SHARMA


OPERETION PROCESS OF STORE
DEPARTMENT

VENDORS PURCHASE

Purchase
Order Purchase
Material Requisition

STORE DEPARTMENT

Issue of material to plant

EXCISE

Modvat
GRN

ACCOUNT DEPARTMENT

Invoice

Payment

PRAGATI SHARMA


FLOW DIAGRAM FOR GENERATION OF
REQUIREMENT OF STORE MATERIAL

Monthly Requirement of store
material by the user

Generation of purchase
requisition

Release of purchase order by
the purchase department

Verification of released
purchase orders by store in
terms of monthly requirement of
user department

PRAGATI SHARMA


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

PRAGATI SHARMA


 High pressure
 Low pressure
 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 available
o 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

PRAGATI SHARMA


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.

 Power
This utility is required and is often considered as the bloodline of the plant.

EXTRATION

BOILER TURBINE GEARBOX GENERATOR

TRANSFORMER
DE AERATOR CONDENSOR

TRIPPER

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.

PRAGATI SHARMA


 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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


 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.

PRAGATI SHARMA


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

ASSISTANT
DEPUTY
MANAGER

SAFETY SAFETY SAFETY
ASSISTANT OFFICER INCHARGE

PRAGATI SHARMA


ENGINEER SAFETY
SUPERVISOR

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”

PRAGATI SHARMA


 “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.

PRAGATI SHARMA


 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.

PRAGATI SHARMA


There are two type of PPE. They are

 Respiratory PPEs
 Non-Respiratory PPEs

Respiratory PPE

ö Breathing Apparatus set used while handling gas leakages.

ö Canister mask used while cleaning vessels or reactor internally.

ö Air supply mask used while internal cleaning of vessels

ö Dust mask of protection against dust.

Non-Respiratory PPE

ë Helmet for protection of head.

ë Ear plug/ear muff for protection against noise.

ë Face seal for protection of face.

ë Safety goggles for protection of eyes.

ë PVC suit for protection of body and clothes.

ë Hand gloves for protection of hands.

ë Apron for protection of clothes.

ë Welding shoes / safety shoes / gum boots for protection of legs.

PRAGATI SHARMA


ë Safety belts used while working on height.

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.

PRAGATI SHARMA


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 aid
First aid for some common accidents is as follows:

 Burn
 Shock
 Injury or cut
 Suffocation
 Eye injury
 Poisoning
 Fracture

PRAGATI SHARMA


Housekeeping
 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

PRAGATI SHARMA


d) Fire extinguisher
e) Surrounding bushes and plants.

 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:-

PRAGATI SHARMA


i. Any deviation from process condition.
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."

PRAGATI SHARMA


With respect to the above, we pledge to:

 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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


 Specific focus on conservation and reduction in consumption of primary

raw materials, energy and water.

 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.

PRAGATI SHARMA


 Eye test of all DMS employees done. Power with photo chromic/without

photo chromic lens provided to all DMS employees.

 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

PRAGATI SHARMA


• Nitration
• Reduction
• 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

PRAGATI SHARMA


• Birch Reduction
• Cyanation

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

PRAGATI SHARMA


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 maintenance
The 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

PRAGATI SHARMA


Civil maintenance
The 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.

PRAGATI SHARMA


 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

PRAGATI SHARMA


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

PRAGATI SHARMA


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.

PRAGATI SHARMA


DECANTER
OLD NEUTRALIZER
CENTRIFUGE

STORE
PRIMARY
WATER PIT EQUALIZATION TANK BIOREACTOR
CLARIFIER

SLUDGE
COLLECTOR

ACTIVATED
CARBON V-NUTCH REFINEMENT SECONDARY
COLUMN CHAMBER TANK CLARIFIER

FINAL OUTLET
SLUDGE DRYING
CHAMBER
BED

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:

PRAGATI SHARMA


 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

PRAGATI SHARMA


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

PRAGATI SHARMA


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 :

PRAGATI SHARMA


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.).

PRAGATI SHARMA


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.

WEAKNESS

PRAGATI SHARMA


 House keeping is not up to the mark.
 Centralized decision making which many a times hinders the functioning
of different departments.

PRAGATI SHARMA


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.

PRAGATI SHARMA


INDEX
PART 2 (SPECILIZATION)


1 HUMAN RESOURCE AUDIT 1-13

 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 8-13
o CODE OF CONDUCT OF AIL 8-13

2 HR AUDITING OF AARTI INDUSTRIES LIMITED 14-45

 HUMAN RESOURCES PLANNING 19
 RECRUITMENT AND SELECTION 20-22
 EDUCATION, TRAINING, AND 23-26
DEVELOPMENT
o EDUCATION AND TRAINING 23-24
o EMPLOYEE DEVELOPMENT 25-26
 LEAVES OR EMPLOYEE ENTITLEMENTS 26

PRAGATI SHARMA


 PERFORMANCE MANAGEMENT 27-28
 COMPENSATION 29-32
 LABOR RELATIONS & EMPLOYEE 33-34
RELATIONS
 DIVERSITY AND EQUAL EMPLOYMENT 35-37
OPPORTUNITY
 SAFETY AND ENVIRONMENT 38-41
 DOCUMENTATION & INFORMATION 42
SYSTEMS

3 FORMS 43

4 LIMITATIONS 44


5 FINDINGS 45-46

6 RECOMMENDATIONS 47

PRAGATI SHARMA


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
practices can lead to very expensive legal sanctions. Just Audits help determine the

PRAGATI SHARMA


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
conducted, a company will know exactly what needs to be done to ensure its legal
compliance.

PRAGATI SHARMA


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?

o Are the kinds of people who run the human resource function good choices
for the ongoing tasks?

PRAGATI SHARMA


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.

 To instill a sense of confidence in management and the human resources
function that it is well managed and prepared to meet potential challenges.

PRAGATI SHARMA


 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
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

PRAGATI SHARMA


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

 Terminations

 Training and Development

 Employee Relations

PRAGATI SHARMA


 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.
 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.

PRAGATI SHARMA


 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
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

PRAGATI SHARMA


“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.

APPLICABILITY
This code shall be applicable to all the Board Members (referred to as
`Directors’) and Senior Management of the Company.

PRAGATI SHARMA


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

COMPLIANCE OFFICER

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

PRAGATI SHARMA


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.

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.

PRAGATI SHARMA


19. Shall affirm compliance with this Code to the Company on an annual basis.

(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–

PRAGATI SHARMA


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 OFFICE
Plot 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–

PRAGATI SHARMA


The company is a Chemical Company.

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:

PRAGATI SHARMA


 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 ( )

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?

PRAGATI SHARMA


ANS: The working hour of employees is 8 hrs. There are 3 shifts in 24
hours.

 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?

PRAGATI SHARMA


YES ( ) NO (  )

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?

PRAGATI SHARMA


YES (  ) NO ( )

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

PRAGATI SHARMA


and the performance of the candidate in the interview, recruitment and
the selection process.

 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 ( )

PRAGATI SHARMA


ANS: While recruiting the candidate to his post the company gives a complete
description about

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?

PRAGATI SHARMA


YES ( ) NO (  )

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 ( )

PRAGATI SHARMA


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.

 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.

PRAGATI SHARMA


 Do you offer employee in house training by the companies employees
only?

YES (  ) NO ( )

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.

PRAGATI SHARMA


 Do employees in your work area get the development they need to do
their jobs effectively?

YES (  ) NO ( )

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.

PRAGATI SHARMA


LEAVES OR EMPLOYEE ENTITLEMENTS

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.

 Are employees clear about what is expected of them in their work
roles?

YES (  ) NO ( )

PRAGATI SHARMA


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?

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.

PRAGATI SHARMA


 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.

 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

PRAGATI SHARMA


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.

 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.

PRAGATI SHARMA


 Is the compensation plan communicated to all employees?

YES ( ) NO (  )

ANS: The Company does not communicate the compensation plan to its
employees.

 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.

PRAGATI SHARMA


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.

 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?

PRAGATI SHARMA


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.

 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.

PRAGATI SHARMA


 Are you comfortable working with the companies disciplinary measures
and grievance procedures?

YES (  ) NO ( )

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.

PRAGATI SHARMA


 Are there a variety of individuals to whom employees may lodge
complaints (supervisor, HR representative)?

YES ( ) NO (  )

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 ( )

PRAGATI SHARMA


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.

 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.

PRAGATI SHARMA


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.

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?

PRAGATI SHARMA


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
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 ( )

PRAGATI SHARMA


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.

 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 ( )

PRAGATI SHARMA


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.

 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?

PRAGATI SHARMA


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.

 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?

PRAGATI SHARMA


ANS: OSHA is maintained in AIL since its commencement of the company.

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 ( )

PRAGATI SHARMA


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).

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


FINDINGS
The 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.

PRAGATI SHARMA


 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.

 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.

PRAGATI SHARMA


 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


BIBLIOGRAPHY
• KOTLER KELLER, MARKETING MANAGEMENT
PRENTICE 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

PRAGATI SHARMA


o http://www.explorehr.org

o http://www.jjkeller.com/resourcecenters/hr/home.htm

o www.aartigroup.com

PRAGATI SHARMA


AARTI INDUSTRIES LIMITED (HUMAN RESOURCE AUDIT)

PRAGATI SHARMA


COMPANY NAME- REGISERED AS: _________________________________________

TRADING AS: ___________________________________________

COMPANIES URL- _____________________________________________________

NAME OF THE PERSON- _______________________________________________

DESIGNATION-_______________________________________________________

CONTACT- CELL NO: __________________________________________________

EMAIL ID: ________________________________________________

ADDRESS OF THE COMPANY- _________________________________________

___________________________________________

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?

PRAGATI SHARMA


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?

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)

PRAGATI SHARMA


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 ( )

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 ( )

PRAGATI SHARMA


 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 _________________________

 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 ( )

PRAGATI SHARMA


 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?

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 ( )

PRAGATI SHARMA


 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?

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?

PRAGATI SHARMA


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 ( )

 Are employees clear about what is expected of them in their work roles?

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 ( )

PRAGATI SHARMA


 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 ( )

 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 ( )

PRAGATI SHARMA


 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?

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 ( )

PRAGATI SHARMA


 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 -

 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

More Related Content

What's hot (20)

Similar to Pragati sharma (20)

Recently uploaded (20)

Pragati sharma