Final Draft

BEMCO HYDRAULICS LTD. BELGAUM

EXECUTIVE SUMMARY

The Bemco Hydraulics Limited was established in the year 1957. This company

is well known throughout India. It is pioneer in the field of Hydraulics Presses. Since it's

inception it has a well planned adequately equipped manufacturing set up where every

infrastructure is available to design, develop and produce a mega range of Hydraulics

Presses and Equipments. It has a wide volume of standard as well as non-standard press

manufacturing facilities.

Bemco is collaboration with Vogel of Germany and Towler Brothers of U.K. who

was the first manufacturer of Hydraulic presses of its unique kind.

The project is done based on the information provided by* the company's well

project guide, company manuals etc. A great amount of care has been taken to furnish

accurate data in the report. If there are any mistakes in the facts, the student apologies for

the same.

The report initiates with brief introduction of the company. It covers many aspects

of the Bemco Hydraulics Limited like Company profile, Product profile, Objectives,

History, Organization structure and departmental study etc.

BAPUJI ACADEMY OF MANAGEMENT & RESEARCH, DAVANGERE 1


INDUSTRY PROFILE

The Indian hydraulic industry started in the early sixties primarily with an

objective of import substitution of some of the hydraulic products being used by the

industry in various applications. Since most of the Indian industries are being set up

based upon the variety of technological sources, the range of their specification is very

wide. Due to this range of product in the hydraulic industry is also quite wide resulting in

a very small batch for every product.

It is therefore, difficult to specify minimum economically viable capacity for the

industry. While there has been a continued overall growth in the oil hydraulic products to

meet specific individual applications, volume growth in individual products has been

very low. With low volume and high development cost concerning tooling, casting and

forging, the industry has not been able to adopt modern production methods. Current

production is largely dictated by production of large volumes, quality requirements and

cost.

Since the industry has to manufacture a large variety of products with low

volumes, the industry is not able to use the modern high production lines. Most of the

manufacturers with exception to some are currently using general purpose machines with

special tooling and some special purpose machines for specialized metal-cutting

operations.

Although the industry has shown a reasonable growth over the years, but it is still

far away from volumes, which would lead to adopting modern production methods, also

the limited demand is being shared by over 20 firms resulting in uneconomical volumes

for most of them. It is unlikely that the situation would change drastically in the coming

decade due to variety of factors mentioned above.

Almost all the major manufacturers of hydraulic equipment have collaboration with

foreign companies. Only two companies viz. Polyhydron and Oscar Equipment are

manufacturing products based on indigenous developments. There has been very little



attempt to developing indigenous technology for these products, although barring few

items, all other equipment have been indigenized.

Applications Of Hydraulic Components And System

Broadly, the hydraulic products from application angle have been classified

under:

Industrial

Mobile

Marine

Aerospace

The above major segments can be further subdivided in the specific categories as:

Plastic processing machinery

Steel making and primarily metal extraction industry

Machine tool industry

Others: Cover in general, furnace equipment, rubber machinery, textile

machinery, general mechanical industry, etc.

Mobile hydraulics

Agricultural tractors

Earth moving equipment

Material handling equipment

Others: Cover general areas such as rail equipment, road

building and construction and machinery, drilling rigs,

commercial vehicles, industrial tractors, etc.

Marine application: These cover oceanic vehicles, fishing boats and naval

equipment.

Aerospace applications: These include equipment and systems e.g. transmission, rudder

control, which is used in airplanes, rockets and space ships

.



IMPORTS AND EXPORTS

The major raw material equipment for the hydraulic industry area CDC tubes,

casting, forging, alloy steel, nonferrous metals such as aluminum, copper, brass, some of

the mentioned materials are imported and other are available indigenously. Also, the

hydraulic industry is dependent on imported components for their production. The major

components import requirement of the industry is in respect of oil seals, spring vane

blanks, bearings, etc. Rotating block axial piston pumps/motors, special bearings etc.

The requirement for each type is so small that it has not been possible to develop and

good quality from indigenous sources. The total requirement of imported raw materials

and components for current level of production are estimated to be:

Imported raw materials: Rs. 4000 lacs

Imported components: Rs. 3200 lacs

The bulk of the exports of the oil hydraulic products are taken as indirect exports,

namely, as components of larger plant and machinery being exported. By large direct

exports by individual companies are minimal. It is also to be recognized that to be able to

export these products, it is necessary to have a high technical marketing and after sales

service set up in the countries, in which exports to have be made

INTERNATIONAL SCENARIO

In connection with oil hydraulic technology, it is widely acknowledged that it is

undergoing changes mostly determined by the user sector that have undergone

revolutionary changes in the in their product designs in the recent years. According to

present indications some of the changes in technology in respect of design, materials and

manufacturing will be as under:

Increased power/weight ratio

Increase system pressures

Extensive use of manifold system avoiding extensive piping and relative leakage

problems

Reduced noise levels



Increased use of proportional valve technology interfacing with electronics and

microprocessor systems.

Improved sealing technology suitable for varying operating conditions.

Increased use of load sensing and saving technologies.

BEMCO HYDRAULIC LMT.BELGAUM

SLOGAN

"Quality movement is life improvement"



COMPANY PROFILE

Name of the Company : BEMCO Hydraulics Ltd

Registered Office : Kahanpur Road, Udyambag,Belgaum.

System Effective Data : 1957

Origin of the Company : Since 1939

Size & Nature : Medium scale & Public Ltd

Total Area : 30000 sq. mtrs

Total Area Build up : 10000 sq. mtrs.

Phone No. : 0831 2441980, 2440173, 2440270

Fax No. : 91-831-2441263

E-mail : [email protected]

Website : www.bemcohydraulic.net

Constitution : Public Ltd

Date of Incorporation : Originally incorporated on 14/03/1957 as Private Ltd

& subsequently incorporated on 18/03/1972

Registration : Registered with DGTD on 15/03/1973

Bankers : Bank of Maharashtra

Main Branch, Kirloskar Road,Belgaum.

: State Bank of India

Commercial Branch, Belgaum.

Product Mix : Custom built hydraulic presses,

Hydraulic cylinders,

Pumping units,

Valves pumps,

Products and sub assemblies



BRANCHES :

1. NEW DELHI : 907, Padma Towers I,

Rajendra Palace,

New Delhi-110008

2. KOLKATA : Dakshini Para Road,

P.O. Thakurpukar,

Kolkata-700063

3. CHENNAI : Flat-3, Education J.D. Towers,

Nungambakkam High Road,

Chennai- 600034

4. Head Office : Khanapur Road,

Udyambag,

Belgaum

Auditor : M/s A. C. Bhuteria & Company (C.A.)

2, India Exchange Place

Kolkata- 700001

Compliance Officer : R. B. Patil, Finance Manager

Since 1957 Bemco Hydraulic limited, have been in the hydraulics field pioneering

various development in respect of Machine Tools. The company started manufacturing

presses initially with the collaboration of “M/S VOGEL & COMPANY” GERMANY,

and subsequently developed innumerable types of standard range of hydraulic presses

and special purpose Hydro-Pneumatic Machine.

To give more effectiveness to the products, BEMCO entered into collaboration

with “M/S TOWLER HYDRAULICS LTD” ENGLAND, for item, which were earlier

being imported into India have been successfully developed and commissioned for

reputed government and private sector industries in India. BEMCO has already recently



developed “SERVO STROKE CONTROLLED STRAIGHTENING PRESS” with

worldwide leader in SERVO Technology.

BEMCO has an exclusive research and development department, working

continuously on improving the efficiency and increasing the productivity of their

machines, as well as diversity in the product range.

BEMCO Hydraulic Ltd is situated at Belgaum in the state of Karnataka, which is

easily accessible to the commercial nerve centre of India i.e. Mumbai by land and air.

The excellence of workmanship and quality has been hallmarks of recognition of

the industrial map of India, wherever machine tools have been installed. They have the

capacity to develop highly stylish items for particular requirements of our customer have

also enhanced company’s prestige.

The company has also exported with repeat orders to the various countries in

Southeast Asia, African and middle eastern countries.

The Shop-Floor of BEMCO Hydraulics Ltd, is equipped with sophisticated and

precision machines including “160 mm Spindle Dia Horizontal,” etc, and minute checks

and carried out right from the component stage up to the time of dispatch.

BEMCO has branches in almost all the major cities of India and to follow up the

dispatches, BEMCO has got an excellent after-sale services, which takes care of any

minor jobs that should be necessary afterwards.

Since its inception, BEMCO has been playing a crucial role in the development of

India’s core industries by providing sophisticated hydraulic Presses and Equipment for

innumerable applications. Collaboration and Technical know-how from the world leader

like “PINNETTE EMIDICAU INDUSTRIES,” France have been enabled BEMCO to

produce machines of international standards.At present the company is under finalizing

the Technology license agreement with “DUNKES INDUSTRIES,” Germany for the

technology required “WHEEL FITTING PRESSES.”



HISTORY AND DEVELOPMENT OF THE COMPANY

BEMCO is the first company in India to produce hydraulic presses. BEMCO

originally an engineering craftsman’s shop in the late thirties has risen to be premier

producer of hydraulic presses and equipments. BEMCO Hydraulic Company started

manufacturing presses initially collaboration with M/S “VOGEL & COMPANY”

GERMANY, in the year, 1957 and subsequently developed innumerable types of

standard and nonstandard range of hydraulic presses and special purpose hydraulic

pneumatic machine.

VISION MISSION AND QUALITY POLICY

VISION

The vision of BEMCO is to be highly visible company known for its highest

technology driven products, superior training and exceptional services in the engineering

field. The company’s products are being marked worldwide and they are looked at as

leader in custom made machines. BEMCO will maket the world class prestigious

products through their distribution network manned by well trained and experienced

personnel in the country and world at large.

MISSION

Continuous technological improvement.

Rapid growth of business.

To provide innovative products.

To be able as a global supplier of hydraulic products.

To develop technology of machineries of various components of the company.

Mohta says – we believe that our first responsibility is to satisfy our customers

who use our products. Our position in the industry will enable us to expand and offer

economic solutions to today’s industry’s requirements.



QUALITY STATEMENT

Slogan of BEMCO – “Quality Improvement is Life Improvement.”

We at “BEMCO Hydraulics Limited” designers and manufacturers of hydraulic

presses and equipment are committed to enhance customer satisfaction by consistently

providing quality products and services to our customers through adherence to establish

quality management system and a commitment towards continuous improvement in all

functions of our organization.

We shall constantly acquire, adopt, innovate and refine our technological strength

in line with globally acceptable standards to maintain credibility, dependability and

leadership on our field.

ENVIRONMENTAL POLICY

BEMCO is committed to company with all the environmental restrictions laid

down by the local authorities. The company strives to minimize pollution during

production. The company is aware and converted with the impact of pollution on the

quality of air, water and the impact on noise and has taken preventive measures to reduce

the contamination and pollution in the environment. The company tries to achieve this

by regularly conducting environmental monitoring tests on the quality of air, water and

noise levels and to prepare test reports regularly and submit them to the environmental

authorities. The company increased the height of the chimneys to reduce air pollution.

Gardening is being done in the interest of the factory to improve quality of the air.



LABOUR POLICY

BEMCO is committed to provide the best working condition to labours. They

provide safety to manpower and equipment and other aspects within the scope of work.

They develop safety consciousness among workers through proper orientation, induction

and training programs. They provide team spirit in them and provide leadership qualities

to curb out hidden talent among workforce and compensate them by providing fair wages

and incentives

OBJECTIVES OF BEMCO

To develop and produce hydraulic cylinders of high quality in compliance with

the requirements of our customers to provide them with efficient solution and

satisfy their needs.

To maintain customer satisfaction.

To seek continuous improvement in the quality management process.

Monitoring and improving the product performance.

To offer the necessary resources to the customers.

To utilize the resources in a better manner rather than wasting the same.

To provide the necessary qualification to the collaborators.

To make continuous efforts to improve quality by continuous training.

To contribute high productivity through team work.

To offer flawless service to the customers.

To provide wide range of presses for various applications in metal working,

rubber, electronic, plastic and electrical industries.



HUMAN RESOURCE INFORMATION

MANPOWER DETAILS

Managers 12

Engineers 40

Supervisors 20

Workers 106

Clerical Staff & Other Staff Members 42

Total Manpower 220

GROWTH RATE OF THE COMPANY

YEAR GROWTH RATE

2001-2002 687.98

2002-2003 567.83

2003-2004 889.78

2004-2005 1336.02

2005-06 1325.59

2006-07 2070.28

2007-08 2200.28

2008-09 2414.72



Chart Showing the Growth rate of the Company

ORGANIZATION PROCESS

SHIFT TIMING

1ST 7:30 am to 4:00 pm

2nd 4:00 am to 12:00 pm

General 8:30 am to 5:00 pm

UNIQUE STYLE OF WORKING

Focus on Research and Development with in-house facilities :

The company is a Technology-driven company and focus on the development and

manufacturing of Hydraulic Equipments for the Automobile, Railways, Aviation and

Defense sectors. A continued on Research and Development will enable the company to

further develop new products, processes and innovative products and applications

possibly help the company enter new lines of possible.



Technical Collaboration with PINETTE EMIDACAU INDUSTRIES:

BEMCO has entered into a technical collaboration with PENETTE EMIDACAU

INDUTRIES of FRANCE for manufacture of SMC moulding machines of high ranges.

This would help the company in adding new customers and industries in its portfolio.

Strong Management and Technical Team :

The company has a very strong management and technical team who have

developed products and executed projects. The company is managed by a team of

experienced and professional managers, exclusively focused on different aspects of the

Automobile industry including Research and Development, Manufacturing, Marketing

and Quality Control and Finance. The management has substantial experience in this

industry and its ancillary activities.

Quality Control:

The company follows through quality standards and products. The finished

products are not only inspected internally by the company's technical personnel but also

by the technical teams of its customers before the products leave the factory premises.

BEMCO OFFERS:

❖ Selection of machinery

❖ Design & Development

❖ Installation & Commissioning

❖ Supply of component and spares

❖ Prompt after sales services



MARKETING INFORMATION:

1) CUSTOMERS:

AUTOMOBILE:

■ Tata Locomotive company Ltd

■ Bajaj Ltd

■ Daewoo Motors

■ Escort Ltd

■ Ashok Leyland Ltd

■ Hindustan Motor Ltd

■ Kinetic Engineers Ltd

■ Kirloskar system Ltd

HEAVY ENGINEERING AND ELECTRICAL:

■ Hindustan Aeronautics Ltd

■ L & T Ltd

■ Bharat Forge Ltd

INDIAN RAILWAYS:

■ All Zonal Work Shops

■ ART

■ HRD

2) COMPETITORS OF BEMCO:

Siddhartha industries

Hydro pack(lndia) Pvt. Ltd

S. P. M Control

Plus-one Hydraulics

NATIONAL LEVEL COMPETITTORS

H.M.T. - Hydrabad

Electrometic - Mumbai

Isget -Delhi



3) SUPPLIERS OF THE BEMCO:

RAW MATERIALS COMPANY'S

M.S. Plate Geeta Vanijya

Pipes Mahaveer Hydraulics pvt. Ltd. Mumbai

Round Bar Mitco Vires pvt. Ltd. Bangalore

Other Casting Prime Industry, Kolhapur

EN-19 Plate, EN-24 Round Bar Rukmini Forgings Pvt, ltd. Bangalore

M.S Pipes Shah Trading Company, Mumbai

C.I. Casting M.S.M. Hydro pneumatic Engineers

C.I. Casting Omkar Metal Industries

C.I. Casting Sudha Metals

M.S. Plate D. Khandelwala

Round Bar Steel Corporation

QUALITY CONTROL INFORMATION:

BEMCO quality control centre have been most carefully planned be equipped

with the most modern quality testing Instrument and Equipment. Quality starts from

vendors and Continues through the various stages of manufacturing right up to the final

testing and Painting of Product.

Stringent inspection of material and component at every stage of production is way of life

at BEMCO. Extensive and specialized quality control facilities backed by skilled and

experienced personnel ensure that only the best products reach our customers.



D. BENEFITS AND FACILITIES TO EMPLOYEES INFORMATION:

■ Canteen Facilities

■ Medical Facilities

■ Retirement Facilities

■ Tour programmes once in a year

BREAK THROUGHS FOR FUTURE:

■ BEMCO SAND MOULDING MACHINE, a process which gives incredible

increase in production, reduced rejection, low man power and excellence finish.

■ Design and development indigenously by BEMCO.

■ High speed presses with cartridge valves, logic systems...presses for the new age.

■ To offer flawless service to customer.

PRODUCT PROFILE



Hydraulic Re-Railing Equipments

BEMCO has designed and developed re-railing equipments for Indian Railways

and for other western countries.

Detailed descriptions of various products manufactured by BEMCO hydraulics are

as follows

1) Open throat-Gap frame type Vertical and horizontal Presses

2) Open throat Servo Stroke Controlled Straightening Presses

3) Column / Pillar / "H" Frame type Hydraulics Presses

4) CNC / PLC / conventional Powder Compacting Presses

5) CNC / PLC / Conventional Hydraulic Mounding Presses

6) Briquetting - Ferrous / Non - ferrous

7) Bailing

8) Die Spotting & Try-out Presses

9) Special Purpose Machines

10) Horizontal Forcing Presses

11) Light weight Hydraulic Re-railing Equipment

12) Presses for LPG Cylinder manufacturing plant

13) Cylinder & Power Pack

14) Machine Tools

15) Electromechanical lifting jacksBAPUJI ACADEMY OF MANAGEMENT & RESEARCH, DAVANGERE 19


16) Oil Expeller and Refinery

17) Telescopic Cylinders

18) Hand Pumps

BEMCO PRODUCTS ARE EXPORTED TO :

Saudi Arabia Ethiopia

Iraq Nepal

Philippines Malaysia

Russia Israel

Srilanka Singapor

A) PROFILE OF THE BOARD OF DIRECTOR'S

Name Designation

Shri. M.M. Mohta Chairman & Managing Director

Shri.Aniruda Mohta Joint Managing Director

Smt. Urmiladevi Mohta Director

Shri. R.M. Shah Director

Shri. Dilip Chandak Director

B) DETAILS OF SHARE HOLDNG;

S. No Category No.of share

held % Shareholding

1. Promoters/persons acting in concert 10,84,800 74.98

2. Financial Institution, Banks Mutual Funds 93 0.01

3 NRIs, Foreign Nationals, OCBs and FHs 500 0.03

4. Private Corporate Bodies 21,032 1.45

5. Indian Public 3,40,275 23.53

Total 14,46,700 100.00



D) CAPACITY AND PRODUCTION FOR THE YEAR END 31 MARCH 2009:

Particulars Units Installed capacity Production

Hydraulic Presses Nos. 1000(1000) 79(88)

Axial Piston pumps Nos. 300(300) 89(88)

Hydraulic Equipment’s Nos. 800(800) 529(501)

Hydraulic Jacks Nos. 100(100) NIL (Nil)

SALES ANALYSIS

YEARS SALES (Lacks.)

2005-06 1336.02674

2006-07 1325.58544

2007-08 2070.15340

2008-09 2215.28044

2009-10 2414.71964



BEMCO WORKING CAPITAL REQUIREMENT

PARTICULARS 2005 2006 2007 2008 2009

CURRENT ASSETS

Inventories 5,83,69,425 8,99,94,661 9,93,06,575 13,17,42,137 1,23,221,007

Sundry Debtors 3,41,37,970 2,89,58,207 5,85,97,160 6,22,30,657 5,07,13,758

Cash & Bank Balance 41,03,713 42,85,202 97,27,904 1,49,82,633 1,69,17,678

Loan & Advances 47,41,583 75,99,490 1,21,56,229 99,50,526 1,45,13,798

TOTACURRENTASSETS (A)

10,13,52,691 13,08,37,560 17,97,87,868 21,89,05,953 20,53,66,241

CURRENT LIABILITIES

Liabilities 5,48,63,690 66740781 14,31,43,302 14,30,00,161 12,02,85,500

Provision 4361261 85,60,793 99,31,880 84,64,189 55,83,967

TOTAL CURRENT

LIABILITIES(B)

5,92,24,951 7,53,01,574 15,30,75,182 15,14,64,350 12,58,69,467

NET WORKING

CAPITAL (A -B)

4,21,27,40 5,55,35,986 2,67,12,686 6,74,41,603 7,94,96,774

INCREASE OR

DECREASE IN

WORKING CAPITAL

1,34,08,246 - 2,88,23,300 4,07,28,917 1,20,55,171

TABLE -1

YEARS 2005 2006 2007 2008 2009NetWorking Capital 4,21,27,740 5,55,35,986 2,67,12,686 6,74,41,603 7,94,96,774



PORTER FIVE FORCES ANALYSIS OF BEMCO HYDRAULICS LTD.

A graphical representation of Porter's Five Forces

Porter's five forces analysis is a framework for the industry analysis and business

strategy development developed by Michael E. Porter of Harvard Business School in

1979. It uses concepts developed in Industrial Organization (IO) economics to derive

five forces which determine the competitive intensity and therefore attractiveness of a

market. Attractiveness in this context refers to the overall industry profitability. An

"unattractive" industry is one where the combination of forces acts to drive down overall

profitability. A very unattractive industry would be one approaching "pure competition".

Porter referred to these forces as the micro environment, to contrast it with the

more general term macro environment. They consist of those forces close to a company

that affect its ability to serve its customers and make a profit. A change in any of the


http://en.wikipedia.org/wiki/Environmental_scanning

http://en.wikipedia.org/wiki/Industrial_organization

http://en.wikipedia.org/wiki/1979

http://en.wikipedia.org/wiki/Harvard_Business_School

http://en.wikipedia.org/wiki/Michael_Porter


forces normally requires a company to re-assess the marketplace. The overall industry

attractiveness does not imply that every firm in the industry will return the same

profitability. Firms are able to apply their core competences, business model or network

to achieve a profit above the industry average. A clear example of this is the airline

industry. As an industry, profitability is low and yet individual companies, by applying

unique business models have been able to make a return in excess of the industry average

The Five Forces

The threat of substitute products

The threat of the entry of new competitors

The intensity of competitive rivalry

The bargaining power of customers

The bargaining power of suppliers

The Five Forces

The threat of substitute products

The existence of close substitute products increases the propensity of customers to

switch From BEMCO HYDRAULICS LIMITED other alternatives in response to price

increases (high elasticity of demand)

There is no close substitute product for BEMCO’s HYDRAULIC PRODUCTS,

products manufacturing by BEMCO are mostly customized products according to

customer’s requirement therefore no threat of substitute products.

The threat of the entry of new competitors:

Profitable markets that yield high returns will draw firms. This results in many

new entrants, which will effectively decrease profitability. Unless the entry of new firms

can be blocked by incumbents, the profit rate will fall towards a competitive level.


http://en.wikipedia.org/wiki/Core_competences

http://en.wikipedia.org/wiki/Porter_five_forces_analysis#The_bargaining_power_of_suppliers%23The_bargaining_power_of_suppliers

http://en.wikipedia.org/wiki/Porter_five_forces_analysis#The_bargaining_power_of_customers%23The_bargaining_power_of_customers

http://en.wikipedia.org/wiki/Porter_five_forces_analysis#The_intensity_of_competitive_rivalry%23The_intensity_of_competitive_rivalry

http://en.wikipedia.org/wiki/Porter_five_forces_analysis#The_Five_Forces%23The_Five_Forces

http://en.wikipedia.org/wiki/Elasticity_of_demand

http://en.wikipedia.org/wiki/Porter_five_forces_analysis#The_threat_of_the_entry_of_new_competitors%23The_threat_of_the_entry_of_new_competitors

http://en.wikipedia.org/wiki/Porter_five_forces_analysis#The_threat_of_substitute_products%23The_threat_of_substitute_products


The ELECTOMETIC-MUMBAY and ISGET-DELHI, these are the major

competitor of the Bemco in national level and SIDDHARTH INDUSTRIES is one of the

local level competitor. If they increase their product price BEMCO also increase our

product price, if they decrease their product price BEMCO also decrease our product

price in the market. So it will directly affect to our business process.

The intensity of competitive rivalry

For most industries this is the major determinant of the competitiveness of the

industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-

price dimensions such as innovation, marketing, etc.

But BEMCO has an advantage of its brand name as a market leader, it is known

for its standard quality product and services and huge production capacity.

Bemco’s R&D department is also very strong, it has recently invented a new

product called Re-Railing Machine first in india and third in the world.

The Shop-Floor of BEMCO Hydraulics Ltd, is equipped with sophisticated and

precision machines including “160 mm Spindle Dia Horizontal,” etc, and minute checks

and carried out right from the component stage up to the time of dispatch.

BEMCO has branches in almost all the major cities of India and to follow up the

dispatches, BEMCO has got an excellent after-sale services, which takes care of any

minor jobs that should be necessary afterwards.

The bargaining power of customers

Following are the Customers of the BEMCO hydraulics limited. The

BEMCO provide good service to their customer on time at the sufficient price to

maintain the good relationship with their customer.

Also described as the market of outputs The ability of customers to put the firm

under pressure and it also affects the customer's sensitivity to price changes.



• Buyer concentration to firm concentration ratio

• Degree of dependency upon existing channels of distribution

• Bargaining leverage, particularly in industries with high fixed costs

• Buyer volume

• Buyer switching costs relative to firm switching costs

• Buyer information availability

• Ability to backward integrate

• Buyer price sensitivity

Bargaining power of suppliers

Described as market of inputs. Suppliers of raw materials, components,

labor, and services (such as expertise) to the firm can be a source of power over

the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively

high prices for unique resources.

The purchase department at BEMCO will request the supplier to register

with the company. BEMCO purchase required materials by calling tenders from

only registered suppliers. The purchase negotiations committee will take care of

this task.

Selection from alternatives

The BEMCO calls for applications on the open tender basis in that they

select three least bidding suppliers they are called for negotiation with previously

supplied suppliers. After negotiations, which are selected for supplying goods,

they will get the order for one year.



DEPARTMENTAL FUNCTIONS

BEMCO Hydraulics Limited is a big organization and producing a wide range of

products. It has a several departments to take care of the smooth functioning of its day-to-

day activities of different kinds. The different departments of BEMCO are as follows :

a) Production Department

b) Personnel Department

c) Finance Department

d) Marketing Department

e) Engineering Department

f) Purchase Department

g) Planning Department

h) Stores Department

i) Dispatching and Packing Department



PRODUCTION DEPARTMENT



Production Planning Control (PPC):

This department plays a major role in Planning, Coordinating and Controlling of

the production related activities. They undertake the estimation of the materials and

equipments that will be required in producing a particular product and also scheduling of

production process. They also estimate the time required to produce each of the products

of particular machine.

The PPC department receives the drawing designs of the product from the

Engineering Design Department. After making analysis on such drawing of the product,

they decide on the particular kind and quality of materials required to undertake the

production. And based on the list of materials required, they place the order to the

purchase department to produce the material.

The design is also sent to the Assembly, Dispatch and the Fabrication department

to assess the requirement. The PPC department assist Production department in its overall

aspects regarding the production of the product procurement of raw materials to

assembling and till the product is dispatched.

Cutting Department:

The amount of raw material cutting required of the production will be cutted here

and sent for the production. Cutting section has 3 types of the iron bars and plates, like

big, medium, small size cutting according to the size and weight of iron required to

produce the components.

Hydraulic Equipment System-Machine Shop Section :

In this section of Machine shop various kind of Hydraulic Equipments are

produced required for the Hydraulic Presses, Pumps, Machine, some standardized

equipments are also produced which are supplied to the Defense sector, Hindustan

Aeronautics Limited, Indian Army, etc; the products supplemented for the Helicopters,

Tankers etc This section has 13 machines of Milling, Boring, Grinding, Lathe Machine,

CNC Lathe Machines, Jig boring etc.



Hydraulic Presses, Pumps Machine Shop:

In this machine shop various components and parts required for building

Hydraulic Presses, Pumps, Power Packs, Cylinders are produced and machined through

the sequential process, there are different sections for machining and producing different

parts and components. There are 30 machines in this machine shop for Milling, Drilling,

Boaring, Taping, Chilling, Howning, Lathe, Grinding, CNC Machines etc.

Fabrication:

In this section of production department the mainframe body of the Presses is

build by wielding the different parts.

Assembling :

Once the framework of the machine and components are ready, then the

components and the parts are assembled in the frame body.

Electrical:

The Electrical Engineers install the electrical equipment and inbuilt the electronic

components such as Microchips, Transistors, Circuits, Devices. And inbuilt the particular

program in machine to perform the specific operation.



PERSONNEL DEPARTMENT

ORGANISATION CHART OF PERSONNEL DEPARTMENT


Chairman and MD

Joint MD

Personnel and Factory Manager

Assistant Manager

Clerical Staff

Security


FUNCTIONS OF PERSONNEL DEPARTMENT

After assessment of Manpower requirements sent by the departmental heads the

final list of employees required by each department will be submitted to the President or

Vice-president for their approval. On their approval the list will be sent to respective

departmental heads, which will be sanctioned strength.

Requirements of employees by way of replacement against retirement should be

sent at least 6 months in advance of the retirement.

Requirement for replacements against resignations, termination should be sent to

personnel department within a week of a resignation or termination of service.

Requirement of additional employees should be fully justified by the departmental

heads before advising the personnel to recruit.

Recruitment:

It is the process of attracting individuals on timely bases on sufficient numbers

and with appropriate qualification to work in the organization.

Recruitment to all categories of employees in the company is based purely on

Qualifications, Merit and Experience.

Sources of Recruitment:

Recruitment are normally been made through application blanks received from

the candidates through : Advertisement

Employment Agencies

• Industrial Training Institutions

• Engineering Colleges

• Polytechnics

Performance Appraisal:

Appraisal forms are sent to concerned departmental authorities periodically in

respect of employees whose performance is to be assessed.

The performance of the employee is rated on trait wise point system. On the basis

of rated points shown in the appraisal, the company will decide granting of Confirmation,

Increments, Promotions etc. This will be duly intimated to the concerned individual

through his head of department.



On the basis of assessment made in the appraisal forms, developmental need of

the employees will be studied and the recommendation made to the company for drafting

the concerned employee to undergo suitable training and developmental programs.

All appraisal forms received by the departmental heads should be returned to the

personnel department as early as possible but not later than 15 days, with all particulars

duly filled.

Human Resource Maintenance :

• Welfare Facilities :

a) Non-Statutory Welfare Facilities :

• Canteen:

The company has well furnished and adequately staffed Canteen, which supplies

Snacks, Tea and Coffee at very normal rates i.e. 40 paise.

• Sport Activities :

Sports Activities are conducted for every year to all the employees. And the

winning teams or individuals are awarded with cash prizes and trophies.

• Tour Facilities :

Tours are conducted for the employees to the different tourism places across India

every year.

• Medical Facilities :

Various Medical facilities are given to the employees. There is a Medical Officer

who takes care of the health of employees. Medical facilities are also given for the family

members of the employees.

• Welfare Fund :

Each employee contributes Two rupees per month and the employers contributes

Four rupees towards Welfare fund.

b) Statutory Welfare Facilities :

• ESI - Employees State Insurance Policy :

Under this policy the employee's accidents, death and other uncertainties are

covered. In case of accidents occurred in the plant, 4.75% of compensation is covered by

the Employer And the rest is covered under ESI policy.



• Safety Procedures :

The company believes in the policy of "Safety First" in all industrial activities.

The employees are provided with various safety equipments like:

Hand Gloves Safety Belts Goggles, etc.

The employees are advised to scrupulously follow all safety instructions and

safety working methods. Whenever unsafe working conditions are notified, employees

should immediately bring it to the notice of the supervisor or management.

First-aid kits with necessary medicines are provided in each department and

sufficient numbers of supervisory and managerial personnel are trained in rendering

First-aid treatment.

Human Resource Relationship :

General observation of human relation and industrial relation :

There exists a harmonious relation between the people within the organization.

The Human Resource Manager personally takes care of the workmen's problems and

dealing with other things. Every departmental staffs are very co-operative and friendly in

their nature. The company also has maintained a good relationship with other local

neighboring industries like- Ashok Iron Works, Polyhedrons etc.

Separation :

❖ Exit Policy:

Employees are required to enter and exit the factory in an orderly manner, at the

commencement and the close of their shifts. While going out in order to facilitate the

security men to conduct the check, employees are required to pass through the exit gate

only one by one. While doing so employees shall keep open their Tiffin carriers, Lunch

boxes, Brief cases etc. for the security staff to check.

❖ Exit Interviews :

It is an interview taken for the employees who are leaving the organization.

BEMCO Conducts such interviews for the employees who are leaving the organization

for any reason. The main purpose of conducting this interview is to know the reason for



their recruitment like whether they have any problems with their co-workers or

supervisors or they are not happy with the policy of the organization or they want to go

for some higher jobs.

❖ Compensation :

The compensation is covered under Two acts. They are : Employees State

Insurance Policy Act (ESI) Employees Compensation Act (ECA)

If any accident occurs within the plant by which the worker gets injured and if the

amount comes under Rs. 7500, then it is covered under ESI or if above, then it is covered

under ECA. On such leave given to recovery with the injury, the management gives 50%

of the wages to the employees. And in case, if the employee loses his limbs in the

accident, then the management provides him with an artificial limbs. In case of death the

family of the employee is given 2-3 lakhs, which may covered under the LIC policy or

under ESI Act and also the management gives Rs. 2500 for the funeral and apart from

this Rs. 1000 is contributed by each of the staff members and given to the insolvent

employee or employee's family.

FINANCE DEPARTMENT

This department is concerned with the maintenance of account of the company.

The department is controlled by Mr. R. B. Patil, Finance Manger of BEMCO. Finance

department helps in the development of the company the main work of Finance

department is not only to provide the monetary supply but also to cut the expenses

through cost cutting as this department controls the expenses, it plays the role of the

auditor.



Organizational Chart of Finance Department:

The functions of Finance Department :

Main Functions:

The Main Functions of Finance department are as follows :

• Arranging of Funds

• Proper allocation of Funds

• Compiling with all statutory responsibilities such as Sales Tax, Income Tax etc.

• Administration responsibility such as monthly P&L A/c, Cash flow and Fund

flow statement, Operating performance report, Final A/c's etc.

• Maintaining and controlling the expenditure.

• Preparation of Cash Budget.



MARKETING DEPARTMENT

Organizational Chart of Marketing Department

Quality System Policy for Marketing and Servicing : Scope :

Receiving of enquiry, preparation and submission, reviewing the order from the

customer, handling the amendments to the contracts. The procedure also covers the

execution and after sales services.



Responsibilities:

• Deputy General Manager shall review the specifications received from the

customer's for completeness and technical feasibility.

• GM/Deputy Manager shall nominate a Sales Engineer for each enquiry.

• Price to be quoted shall be indicated in the cost estimation sheet by GM/Deputy

Manager in consultation with Joint Managing Director.

• The Sales Manager based on the cost estimation sheet shall prepare proposal.

• Proposal contains the complete details of product provided, i.e. the specification of

the product, commercial aspects, delivery schedules and details of any other

contractual requirement if found necessary.

• Follow up with customer for the order, shall be done by Sales Engineers or General

Manager or Deputy General Manager, concerned branch office.

• On the receipt of an order or letter of indent or verbal order, Senior General

Manager, Deputy General Manager of Sales and Services shall review the

requirements with respect to :

Adequacy of the requirements in terms of information and specification.

Capability of the organization to meet the customer's requirements.

Distribution Channel:

As the products are directly sold to the customers, there doesn't exists any specific

distribution channel such as the middle men's like whole-sellers, retailers etc. There are

some representatives of the company who directly deals and negotiated with customer

and arrive at a particular resolution and decide on the mode of transport.

The Main Functions of Marketing Department:

• Interacting with defense customers for defense development items.

• Approval of technical aspects and cost estimation.

• Timely submission of tenders.

• Issue of order acceptance.

• Preparation of cost estimation.

• Responsible for preparation of proposals.



ENGINEERING DEPARTMENT

Organizational Chart of Engineering Department:

The Main Functions of Engineering Department:

• Prepare drawing for a proposal

• Prepare manufacturing drawing.

• Technical specification of machine.

• Detail designing of presses.

• Detail designing of major assemblies such as General Assembly Layout, Sub-

Assemblies, Hydraulic Circuit Diagrams, Detailed Circuit Diagram, Sequence of

Processes.

• Preparation of blueprint and a soft copy of detailed design of presses is to give to

the customer.

• Preparation of bill of material.



PURCHASE DEPARTMENT

After the blueprint is prepared and approved by the customer, then a copy of that

is sent to Purchase Department.

Organizational Chart of Purchase Department:

Functions of Purchase Department:

• Here the standard items are quoted for enquiry, which is the lowest quotations it

goes for supply.

• Here procurement of materials takes place.

• Negotiation for purchase of materials takes place.

• For materials default this department will be responsible.



PLANNING DEPARTMENT

Organizational Chart of Planning Department:

The Main Functions of Planning Department:

• Specification list is prepared i.e. raw materials required for manufacturing a

product.

• Date of scheduling the product to Engineering customer is finalized and sent to

Engineering department which acts as base for designing a product.

• This department actually feeds the assembly i.e. the assembly of parts at workshop.

• If any order is received in between, then order will be subcontracte



STORE DEPARTMENT

Organizational Chart of Store Department:

The Main functions of Store Department:

This department looks after the packing respects and the assembly of the finished

products.

Keeping record of finished goods in respective bins.

As when customer requirement comes dispatching the products.

Store Department can even reject the material when the goods are

not accordance.

Issues are of Three types are :

o Inward:- materials comes from outside for pricing within its office hours.

o Outward:- rejection dispatch and issues.

Stock:- left out materials is stored.



DISPATCHING AND PACKING

Organizational Chart of Dispatching & Packing Department:

The Main Functions of this Department:

• Materials are been packed as per instructions. If there are huge machines then they

are dismantled and packed in pieces.

This department takes care of Central Excise Duty to be paid if goods are

transported outside Karnataka and Karnataka state duty to be paid if goods are

transported within Karnataka



SWOT ANALYSIS

Strength

It has achieved international standard.

Economies of scale.

State of the art technology.

High qualified trained workers.

Efficient input sourcing.

Efficient inventory management.

Strong research and development support.

It has satisfied the customer.

weakness

by change in technology.

Transportation difficulties.

Depending on the customers wants.

Opportunities

Larger number of customers.

Diversification.

Threat

High market competition.

Political instability.



RATIO ANALYSIS

MEANING:

Ratio is the numerical relationship between two members. It may be expressed in

quotients, rate or in percentage. The ratio analysis of working capital helps the

management in checking upon the efficiency with which working capital is been used in

the business.

Ratio analysis is widely used tool of financial analysis. It is defined as the

systematic use of ratios to interpret financial statement so that the strengths and

weaknesses of a firm, as well as its historical performance and current financial

conditions can be determined.

Ratio makes related information comparable. A single figure by itself has no

meaning. But when expressed in the terms of the related figure, it yields sufficient

inferences. Thus, ratios are relative figures reflecting the relationship between related

variables. They are used as tools of financial analysis, which involves their comparison as

single ratios which like absolute figures are not use.

IMPORTANCE OF RATIO ANALYSIS:

The following are the main point of importance of ratio analysis:

1. Useful in Financial position analysis.

2. Useful in simplifying accounting figure.

3. Useful financial in assessing the operational figure.

4. Useful in assessing purpose.

5. Useful in forecasting purpose.

6. Useful in comparison of performance.



CLASSIFICATION OF RATIOS:

1) Financial Ratio

2) Profitability Ratio

3) Turnover Ratio

4) Leverage Ratio

5) Coverage Ratio

THEORY AND DATA REPRESENTATION

FINANCIAL RATIOS:

Financial Ratio can be divided into two broad categories:

(A) Liquidity Ratios

(B) Stability Ratios

(A) LIQUIDITY RATIOS:

Liquidity ratios are used to measure the firm's ability to meet short term

obligations. They compare short term obligation to short term (current) resource available

to meet these obligations. From these ratios, obtained into the present cash solvency of

the firm and the firms ability to remain solvent in the event of adversity. The important

Liquidity ratios are:

CURRENT RATIOS OR CAPITAL RATIO:

This is most widely used ratio. It is the ratio of current assets to current liabilities.

It shows firms ability to current liabilities with its current assets.

Generally 2:1 is considered ideal for concern 1 .e. current assets should be twice of the

current liabilities. If current assets are two times of the current liabilities, there will be no

adverse effect on business when the payment of current liabilities is made. If the ratio is

less than 2, difficulty may be experienced in the payment of current liabilities and the day

to day operations of the business may suffer. It is experienced as follows.



Current Ratio = Total Current Assets/ Total Current Liabilities

Year 2009 = 205.366.241/ 125,869,467

= 1.63:1

Interpretation: - As Conventional rule, current ratio of 2:1 is satisfactorily. The current

ratio 2009 is less than 2:1 so the current ratio is not that strong but it is more than 1.17, it

is considered as good.

LIQUID OR ACID TEST OR QUICK RATIO:

This is the ratio of liquid assets to liquid liabilities. It shows a firms ability to meet

current liabilities with its most liquid (quick) assets. Liquid assets are those assets which

are readily converted into cash and which includes bills receivable, sundry debtors and

short term investments. Inventories and prepaid expenses are not included because the

emphasis is on the ready availability of cash in cash of liquid assets.

Liquid liabilities include all items except bank overdraft. Generally 1:1 ratio is

considered ideal ratio for a concern because it is wise to keep the liquid assets at least

equal to liquid liabilities at all times. It is calculated as follows:

Liquid ratio = Liquid Assets/ Current (or liquid) liabilities

Year 2009 = 82.145,234 / 125,869,467

= 0.65:1

Interpretation: the actual quick ratio has to be compared with the standard quick ratio of

1:1. If the actual quick ratio is equal to or more than the standard ratio of 1:1, the

conclusion can be that the concern is liquid and so that it can pay off its short term

liabilities out of its quickly realizable assets without any difficulty. But, BEMCO’s quick

ratio not up to the mark of standard quick ratio of 1:1. So, it is not possible to BEMCO to

meet the short term obligation.



ABSOLUTE LIQUIDITY OR SUPER QUICK RATIO :

It considers only the absolute liquidity available with the firm. Here only cash +

bank balance + marketable securities are taken into account consideration. The desirable

norm for this ratio is 1 : 2 i.e. Re. 1 worth of absolute liquid assets are sufficient for Re. 2

worth of current liabilities. Absolute liquidity ratio is calculated as follows

Absolute Liquidity = Cash in hand + Bank Balance + Short term marketable securities

Current Liability

Year 2009 = 1.69,17.678 /12,58,69,467

= 0.13

Interpretation: This ratio indicates the availability of cash on every one rupee of current

liabilities. The the company is said to be having a sufficient amount of cash to pay

liabilities. The amount is highest in 2009 i.e.Rs.1,69,17,678.

FIXED ASSET RATIO:

These ratios explain whether the firm has raised adequate long term funds to meet

its fixed assets requirement and is calculated as under. If the ratio is less than 1, it is good

for the concern.

Fixed Asset Ratio = Fixed Assets/ Capital Employed

Capital Employed: (shareholder's fund + Long term liabilities)

Year 2009 = 5.76.52.68/ 13,71,39,314.88

= 0.42:1

Interpretation:-The fixed assets turnover ratio is calculated to know the companies ratio

of investment of company in fixed assets. The ratio of capital employed in the fixed

assets is 0.42 to 1. Nearly it is 50% of the company



RATIO OF CURRENT ASSETS TO TOTAL ASSET RATIO :

= Current Assets / Total Assets

Year 2009 = 8.21.45.234 / 20,53,66,241

= 0.40

Interpretation: - The current asset ratio to total asset it shows the current asset blocked

in total assets. The total block of current assets in total assets is 0.40.

DEBT EQUITY RATIO

This ratio is calculated to measure the relative proportion of outsiders funds

invested in the company. This ratio is determined to ascertain the soundness of long term

financial policies of that company and is also known as external - internal equity ratio.

Generally debt equity ratio 2:1 and 2:3 is acceptable. It is calculated as follows

Debt Equity Ratio = Long Term Funds/ Share Holder's Funds

Year 2009 =7.92.46.130/ 5,78,93,185S

= 1.37

Interpretation: -The Debt equity ratio is higher in the year 2009 i.e. 1.37.

PROFITABILITY RATIOS:

Profitability is the overall measure of the companies with regard to efficient and

effective utilization of resource at their command. These ratios are calculated to enlighten

the end results of the business activities which are role criterion of the overall efficiency

of a business concern. The following are the important profitability ratios.

OPERATING PROFIT RATIO:

The operating profit ratio establishes the relationship between operating profit and sales and is calculated as follows

=PBIT/ Net Sales



Year 2009 = 1,70,00,021 / 22,50,48,379* 100 = 0.08 or 7.55%

Interpretation: - The Operating profit ratio in recent years it will be decreasing.

NET PROFIT RATIO:

The Net Profit Ratio establishes the relationship between the net profit (After Tax)

of the firm and net sales and may be calculated as follows

Net Profit Ratio = Net Profit after Tax/ Net Sales * 100

Year 2009 =33,22.462/ 22,50,48,379 * 100

= 0.014 or 1.48%

Interpretation:-The NP ratio measures the efficiency of the management in generating

additional revenue over and above the total cost of operations. This ratio also shows the

net contribution made by every 1 rupee of sales to the owner funds.

RETURN ON CAPITAL EMPLOYED RATIO:

Return on capital employed ratio is an indicator of the earning capacity of the

capital employed in the business. This is considered to be most important ratio because

it reflects the overall efficiency with which capital employed. This ratio is calculated as

follows

Return on capital Employed = PBIT/Capital Employed*100

---------------------------------------------------------

Year 2009 = 1.70.00.021/ 1,37,139,315 * 100

= 12.40%

Interpretation: - The ratio indicates that how much profit that the company has earned

on its investment. The analysis of the year it is 12.40%

RETURN ON SHAREHOLDERS FUND:

Return on Shareholders Fund shows the extent to which profitability objective is

being achieved. Higher the ratio, the better it is



Return on Equity = Profit after Interest and Tax/ Shareholder's Fund* 100

Year 2009 = 33.22,462/ 5,78,93,185 * 100

= 5.74%

Interpretation: -The Return on equity is 5.74%. In recent years it is decreasing

EARNING PER SHARE :

This help in determining the market price of equity share of the company and in

estimating the company's capacity to pay dividend to its equity shareholders. It is

calculated as follows

Earning per share =Net Profit after Tax/ Number of Equity Shares

Year 2009 = 33.22.462/14,46,700

= 2.30Interpretation: - It reflects the shareholders return on their amount invested in the

company, the returns on share value is satisfactory in recent years .

RETURN ON TOTAL ASSETS:

This ratio is calculated to measure the profit after tax against the amount invested

in total assets to assets are being utilized properly or not, it is calculated as under

Return on Total Assets = Ntet Profit after Tax / Total Assets* 100

Year 2009 = 33,22,462/26,30,70,782 * 100

= 1.26%

Interpretation: - This ratio is very important from shareholders’ point of view in

assessing whether their investment in the firm generates a reasonable return or not. It

should be higher than the return on investment otherwise it would imply that company’s

funds have not been employed profitably.

TURNOVER RATIO

These are ratio very important for a concern to judge how well facilitate the

disposal of a concern are being used or to measure the effectiveness with which a concern

uses its resources at its disposal. In short these will indicate the position of assets usage.



These ratios are usually calculated on the basis of sales. The following are the important

turnover ratio usually calculated by the concern.

SALE TO CAPITAL EMPLOYED:

This ratio shows the efficiency of capital employed in the business by computing

how many times capitals employed is turned over in a stated period. The ratio is

ascertained as follows

Sale to Capital Employed = Sales/Capital Employed

Year 2009 = 2.25.048.379 / 13,71,39,315

= 1.64

Interpretation: - The higher the ratio, the greater are the profits. A low capital turnover

ratio should be taken to mean that sufficient sales are not being made and profit is lower.

FIXED ASSETS TURNOVER RATIO:

This ratio measures the efficiency of the assets used. The efficient use of asset will

generate sales per rupee invested in all the assets of a concern. The inefficient use of asset

s will result in low sales volume coupled with higher overhead charge and under

utilization of the capacity. It is calculated as under

Fixed Asset Turnover Ratio = Sales/ Fixed Assets

Year 2009 = 2.25.048.379/5,76,52,681

= 3.90 Interpretation: High turnover, capital employed, working capital and fixed assets

is a good sign and implies efficient utilization of resources. Utilization of capital

employed or, for that matter, any of its components is revealed by the turnover ratios.

Higher turnover reflects efficient utilization resulting in higher liquidity and profitability

in the business



LEARNING EXPERIENCE GAINED DURING IN-

PLANT TRAINING

The in-plant training has created a sense of practical exposure and

enlightened my mind as to what actually an organization is and how theoretical

concepts are practiced in BEMCO HYDRAULIC’S LTD.

Importance of different management functions such as planning,

organizing, staffing, directing and controlling was known, which guide the

organization in facing competition. I have come to how different work and things

are got done through others and with others in a decentralized structure. I now

know how a work flow model helps in organizing the work, by determining

authority and responsibility for staff. In-plant training also helped me in knowing

the importance of group effort when compared to individual effort in an

organization. Also, importance of human relations was realized which helps in

getting the things done through and with others. I also came to know how

different employees/workers’ have different skills, talents, abilities, attitudes etc

and how they are coordinated and utilized in an optimum manner in achieving

organization goals. Also, I understood the importance of leadership traits, which

guide in achieving personal as well as organization goals. I have also come to

know how dynamic an individual should be in a cooperative sector, which will

guide me in my career planning and development. I also came to know how

information technology and various systems have reduced the activity and

documentation time.

I also came to know how marketing department bridges the gap

between organization and customers by various promotion tools as well as regular

feedback from customers. Also, I have recognized the importance of time

management, which helps an organization in meeting delivery dates of customers.



I have come to how quality control and assurance guides an organization in

providing quality product to customer, thereby improving loyalty from customer

side.

Important things observed and learnt in SIS:

I learned how to save time in production department and in which situation

to take correct decision.

How to work as a team.

How to utilize mechanics better.

Self discipline.

Time management.

Good work culture.

Self confidence.

Group communication in the organization.

How to implement plant to work so fast.

How to identify waste and reuse for production.



BEMCO HYDRAULICS LIMITED (Balance Sheet)ITEMS 2005-2006 2006-2007 2007-2008 2008-09 2009-10

SOURCES OF FUNDSShareholders FundsShare Capital 9806700 11806700 11806700 19806700 19806700

Reserve & Surplus 29594803 27157996 29884689 35958539 38086485

Shared Application Money 0000 0000 12200000 0000 0000

Total(1) 39401503 38964696 53891389 55765239 57893185

Loan FundsSecured Loans 25990715 36618665 33989057 58347939 57163020

Unsecured Loans 15997483 14947724 10713337 17262355 22083110

Total{2) 41988198 51566379 44702394 75610294 79246130

Deferred Tax Liability 0000 0000 440000 152000 62000

TOTAL(1+2) 8,13,89,701 9,05,31,075 99,03,37,883 13,15,27,534 13,72,01,315

APPLICATION OF FUNDSFixed assets (3)Gross block assets 79676949 82892540 125451882 126732888 129350627

Less: Depreciation 46178864 49338310 53182646 62698817 71697946

Net Block Assets 33498085 33554230 72269236 64034071 57652681

Investment (4) 51860 51860 51860 51860 51860

Deferred Tax (5) 1261000 1389000 0000 0000 0000

Current Assets, Loan AdvanceInventories 58369425 89994661 99306575 131742137 123221007

Sundry Debtors 34137970 28958207 58597160 62230657 5071375827

Cash & Bank Balance 4103713 4285202 9727904 14982633 1691767799

Loan & Advances 4741583 7599490 12156229 9950526 1451379775

Total (A) 101352691 130837560 179787868 218905954 205366241

Less : Current Liabilities provisionLiabilities 54863690 66740781 143143302 143000161 120285500

Provision 4361261 8560793 9931880 8464189 5583967

Total (B) 59224951 75301574 153075182 151464350 125869467

Net Current Assets (6) [A-B] 4,21,27,740 5,55,35,986 2,67,12,687 6,74,41,603 7,94,96,774

Profit & Loss (7) 4451016 0000 0000 0000 0000

TOTAL (1+2+3+6+7) 8,13,89,701 9,05,31,075 9,90,33,783 13,15,27,535 13,72,01,315



PROFIT AND LOSS ACCOUNTItems 2005-06 2006-07 2007-08 2008-09 2009-10

A. INCOMESales 13360267

413255854

420701534

022152804

424147196

4Less: Excise Duty 16243415 16656569 18075930 25852646 16423586Net Sales 11735925

911590197

518893941

019567539

822504837

9Other income 4589275 4600426 5506004 9824027 9259677Increase / (decrease) in WIP & F/G 8772367 20454420 10158968 22295690 (6927405)Total Income 13072090

114095682

120460438

222779511

622738651

B. EXPENDITUREMaterial consumed 71477831 74130056 11854515

612776628

112056137

8Employee Emoluments & Benefits 22241416 25676822 28680662 34123499 33350058

Manufacturing & other Expenses 27407659 26958298 38815786 42023793 47445311Interest 5078375 5514396 6869006 7753750 10852043Depreciation 889099 729741 3062053 10404352 9023883

TaxesTotal Expenditure 12709438

013300931

519597266

322207167

522123267

2Profit Before Taxation 3626521 7947506 8631719 5723441 6147978Provision for Taxation

Current Tax 413000 (2704000) (106300) (2776000) (2709500)Deferred Tax 1023000 128000 (1829000) 288000 96000Fringe Benefit Tax (602000) (550000) (631600) (729500)

Income tax earlier years 28522 5243 0000 0000 523484Profit after Tax 2161999 4774749 5189719 2603841 3322462Surplus/Deficit Brought forward 6613015 (4451015) 323733 3332709 3504682Total 4451016 323733 5513452 5936550 6827144Less: Adj. For Employee benefits as per transitional provision

0000 0000 0000 753236 0000

Total 4451016 323733 5513452 5183314 6827144Appropriation:

Transfer to General Reserve 0000 0000 500000 1000000 1000000

Proposed Dividend on Pref. Shares 0000 0000 1455819 580052 580052

Tax on proposed Dividend 0000 0000 224924 98580 98580Balance carried forward 4451016 323733 332709 3504682 5148512

Basic/Diluted Earning per share 3.34 6.55 6.99 1.54 1.83



SUMMERY OF FINDINGS

1. BEMCO hydraulics limited is the first ever company to make hydraulic Presses.

2. Company has invented re-railing machine first time in india and third in the

World.

3. Company is importing some amount of row material from foreign countries

which is costing more.

4. The company is also having good credit facility from its supplier that reduces its

working capital requirement.

5. This company is having a practice of receiving 20% of the advance from its

customers with order which also reduces its working capital requirement.

6. The various current assets turnover ratio and net working capital ratio having

positive association with the return on investment ratio of the company.

7. Current assets to sales ratio having negative association with the return on

investment, which indicates proportion decline in current assets to sales, will

cause to increase in profitability of the company in less proportion.

8. The company is providing an excellent pre-sales and after sales services to the

customers.

9. The overall liquidity position of the company is good.

10. The BEMCO has a good image in the market for its better service and quality

products.

11. The company is has experienced staff which reduce the default in the work.

12.The company’s main policy is very good i.e.

“quality movement is life improvement”



SUGGESTIONS

1. Company can introduce very highly qualified and productive management.

2. Try to procure row material domestically rather than procuring from rest of the world if it

is available, from which the row material cost is reduced.

3. Company can borrow Bank finance to meet working capital requirement.

4. The BEMCO must reduce the debtors holding period, from which the investment in

debtors can be reduced.

5. Bemco should concentrate on marketing and promotional activity in the market to

increase its business operation.



CONCLUSION

BEMCO hydraulics company is public limited company. It is in the

field of hydraulic presses and equipments, since from 1957, and having good

sales record. It indicates the management’s effectiveness and efficiency.

The world is very competitive and BEMCO HYDRAULICS

LIMITED the manufacturing industry can face the competition if they

maintain the quality standard and services, keeping in view he changing

scenario of business. The customer opinion about BEMCO is good.

To conclude we can say that BEMCO HYDRAULICS LIMITED has

been in the hydraulic field pioneering various developments in respect of

Machine tools. They are developing the company by maintaining the quality

and they are coming with new models.



BIBLIOGRAPHY

INTERNET

WWW.bemcohydraulics.net.

WWW.Bemcoworld.com.

BOOKS

Marketing management- 13TH EDITION, Author-Philip kotler

Companies past record.

BEMCO’S Annual report.


http://WWW.Bemcoworld.com/

http://WWW.bemcohydraulics.net/

Final Draft

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